Executive Summary
– Mixue Ice City (蜜雪冰城) acquires 53% stake in Fulu Home (福鹿家) for 2.97 billion yuan, its first major post-IPO move.– The deal involves CEO Zhang Hongfu’s wife, Tian Haixia (田海霞), raising related-party transaction questions.– High valuation metrics: P/E ratio of 523x and P/B ratio of 29x, far exceeding industry averages.– Strategic diversification into craft beer aims to capture nighttime consumption and counter tea market saturation.– Market watchers eye potential synergies but caution on governance and integration risks.
A Landmark Deal in Chinese Beverage Markets
In a move that has captivated investors and industry analysts alike, Mixue Ice City (蜜雪冰城) has announced a 2.97 billion yuan acquisition of a 53% controlling stake in Fulu Home (福鹿家), a burgeoning craft beer brand. This Fulu Home acquisition represents not only Mixue’s first significant post-IPO investment but also a strategic pivot into the lucrative alcohol sector. The transaction places Mixue at the forefront of beverage diversification trends, as it seeks to leverage its massive retail network and supply chain expertise. However, the deal’s close ties to Mixue’s leadership—specifically, Fulu Home’s majority owner being CEO Zhang Hongfu’s wife, Tian Haixia (田海霞)—has ignited debates over corporate governance and valuation fairness. For global investors tracking Chinese equities, this Fulu Home acquisition underscores the dynamic shifts in consumer preferences and the aggressive expansion tactics employed by homegrown champions.
The Mysterious Boss Lady: Tian Haixia’s Pivotal Role
Early Influence on Mixue’s Foundation
Tian Haixia (田海霞) is far more than just the wife of Mixue CEO Zhang Hongfu (张红甫); she has been an instrumental figure in the company’s origin story. Back in 2007, her encouragement prompted Zhang Hongfu to drop out of school and join his brother Zhang Hongchao (张红超) in developing Mixue’s iconic 1-yuan ice cream. Tian Haixia’s support helped catalyze the initial franchise model, as relatives pooled resources to become early加盟商 (franchisees), laying the groundwork for what would become a global beverage empire. Her behind-the-scenes involvement highlights the familial networks that often drive China’s private sector growth, and her entrepreneurial acumen has consistently complemented Mixue’s rapid ascent to becoming the world’s largest ready-to-drink beverage chain by outlets.
A Serial Entrepreneur’s Journey
Beyond Mixue, Tian Haixia has carved out her own path as a serial entrepreneur. In 2018, she entered the convenience store arena with芙鹿家便利店 (Fulu Home Convenience Store), strategically locating the first store at Henan University of Economics and Law—the alma mater of Mixue founder Zhang Hongchao. By 2022, she pivoted Fulu Home’s focus to craft beer, rebranding as鲜啤福鹿家 (Fresh Beer Fulu Home) and accelerating national expansion. The brand’s visual identity and pricing—featuring red-and-white signage and products priced between 5.9 to 9.9 yuan—closely mirror Mixue’s value-oriented approach. Prior to the acquisition, Fulu Home was already deeply integrated with Mixue, operating from Mixue’s global headquarters in Zhengzhou and utilizing its joint supply chain for冷链配送 (cold-chain logistics). This pre-existing synergy smoothed the path for the Fulu Home acquisition, though it also fueled scrutiny over the arms-length nature of the deal.
Acquisition Mechanics and Valuation Scrutiny
Deal Structure and Financial Implications
Mixue executed the Fulu Home acquisition through a combination of增资 (capital increase) and股权转让 (equity transfer), totaling 2.97 billion yuan. First, Mixue injected 2.856 billion yuan in cash to subscribe to a 51% stake via new shares, followed by a 112 million yuan purchase of a 2% stake from independent shareholder Zhao Jie (赵杰). This gave Mixue 53% control, enabling consolidation of Fulu Home’s financials into its statements. Notably, Zhao Jie had only acquired his stake in August 2025, just weeks before the sale, netting a 112 million yuan profit—a timing that has drawn market skepticism. The valuation benchmarked Fulu Home’s equity between 2.447 billion and 2.766 billion yuan, based on a revenue-multiple approach, but the final price exceeded the upper range, raising eyebrows among institutional investors.
High Multiples and Market Backlash
The Fulu Home acquisition valuation metrics are starkly elevated compared to industry norms. With Fulu Home reporting net assets of just 19.52 million yuan and a 2024 net profit of 1.0709 million yuan, the deal implies a price-to-earnings (P/E) ratio of approximately 523 times and a price-to-book (P/B) ratio of 29 times. These figures dwarf the A/H股啤酒板块 (A/H-share beer sector) averages of under 30x P/E and around 2.5x P/B. Mixue defended the valuation by citing Fulu Home’s 150 million yuan revenue over the past 12 months and comparisons to peers like华润啤酒 (China Resources Beer) and百威亚太 (Budweiser APAC). However, critics argue that a barely profitable firm with modest assets commands such a premium largely due to its关联方 (related-party) status. This Fulu Home acquisition thus spotlights the challenges in assessing fair value in China’s fast-moving consumer goods space, where strategic intent can sometimes overshadow financial prudence.
Mixue’s Underlying Growth Pressures
Market Saturation and Competitive Threats
Despite stellar 2025 interim results—148.75 billion yuan revenue and 27.18 billion yuan net profit, up 39.3% and 44.1% year-on-year, respectively—Mixue faces mounting headwinds. The Chinese新茶饮 (new tea drink) market is decelerating, with growth projected to slow from 44.3% in 2023 to 12.4% in 2025, per the中国连锁经营协会 (China Chain Store and Franchise Association). Rivals like古茗 (Guming) and茶百道 (Cha Bai Dao) have aggressively cut prices to the 9.9 yuan range, while外卖大战 (food delivery wars) have sparked 1-yuan奶茶 (milk tea) promotions that erode Mixue’s low-cost advantage. In response, Mixue has tightened加盟 (franchise) policies, raising location thresholds and protection radii. Store closures hit 1,187 in H1 2025, up 388 year-on-year, signaling a deliberate slowdown in expansion. This context makes the Fulu Home acquisition a critical test of Mixue’s ability to diversify beyond its core tea business.
Challenges in Secondary Ventures
Mixue’s coffee sub-brand,幸运咖 (Lucky Cup), has surpassed 8,000 stores but struggles to replicate its tea success. Focusing on tier-3 and tier-4 cities, Lucky Cup must educate consumers on premium coffee in markets where acceptance is lower than in urban centers. This requires significant investment in marketing and customer acquisition, straining resources. The Fulu Home acquisition, therefore, emerges as a strategic imperative to unlock new revenue streams without the baggage of market education. By entering the beer segment, Mixue taps into an established demand curve, leveraging its operational scale to drive efficiencies. However, the high stakes of this Fulu Home acquisition mean that execution missteps could amplify rather than alleviate Mixue’s growth anxieties.
Strategic Rationale: The Fresh Beer Gambit
Tapping into a High-Growth Market
The Fulu Home acquisition aligns with Mixue’s ambition to dominate the burgeoning精酿啤酒 (craft beer) sector, projected to near 100 billion yuan by 2025 with an 18%+ CAGR, according to中研普华研究院 (Zhongyan Puhua Research). Beer’s gross margins often exceed 50%, compared to tea’s ~35%, offering a lucrative upside. Fulu Home’s现打鲜啤 (freshly tapped beer) model dovetails with Mixue’s franchise-heavy approach, relying on sales of materials and equipment to加盟商 (franchisees). Moreover, beer consumption peaks in evening hours, complementing Mixue’s daytime tea and coffee sales to achieve全时段覆盖 (all-day coverage). As China Food Industry Analyst Zhu Danpeng (朱丹蓬) notes, This Fulu Home acquisition extends Mixue’s consumer engagement from day to night, boosting loyalty and frequency. The synergy is palpable: Mixue’s five major production bases and nationwide logistics can slash Fulu Home’s supply costs and reduce运输损耗率 (transport loss rates) from 8% to under 3%.
Broader Implications for Investors
For international investors, the Fulu Home acquisition signals Mixue’s commitment to innovation amid market saturation. The体外培育 (external cultivation) model—where关联方 (related parties) incubate new ventures before上市公司 (listed company) acquisition—is common in China, mitigating early-stage risks for the parent. However, it demands rigorous governance to avoid value transfer concerns. The Fulu Home acquisition could set a precedent for other Chinese beverage firms eyeing alcohol diversification, potentially reshaping portfolio strategies across the sector. Investors should monitor Fulu Home’s post-acquisition performance, particularly its ability to scale under Mixue’s umbrella and achieve profitability targets. Key metrics to watch include same-store sales growth, franchisee satisfaction, and margin expansion from supply chain integrations.
Navigating Future Pathways
The Fulu Home acquisition encapsulates both the opportunities and perils in China’s evolving equity landscape. Mixue gains a foothold in a high-margin, high-growth beer category while addressing its tea market slowdown, but the deal’s valuation and related-party dimensions warrant cautious optimism. For fund managers and corporate executives, this move underscores the importance of scrutinizing strategic acquisitions beyond surface-level synergies—digging into governance, valuation methodologies, and long-term integration plans. As Mixue rolls out Fulu Home across its vast network, stakeholders should track execution metrics and regulatory feedback. The ultimate success of this Fulu Home acquisition will hinge on Mixue’s ability to translate operational strengths into sustainable profit growth, proving that even controversial moves can yield dividends in China’s competitive beverage arena.