China bubble tea chain Mixue Group extended gains in Hong Kong, wth its shares breaking above HK$500 to hit a record high, up 8%.

Founded in 1997 as a small ice shop in Zhengzhou, Henan province, Mixue has grown into a franchise giant with over 45,000 stores globally by September 2024, surpassing Starbucks' 40,576 stores worldwide.

Mixue is often seen as China's largest chain of iced drinks, milk tea, and ice cream. However, it operates more like a raw-material supplier than a traditional beverage brand, selling food materials, packaging, and equipment to thousands of franchisees, according to its filings.

Nearly all of its stores are run by franchisees, unlike Starbucks, which operates 53% of its stores directly.

In the first nine months of 2024, Mixue reported a net profit of 3.49 billion yuan, up from 3.19 billion yuan in the same period the previous year, according to its IPO filings.