Mixue Group's stock price plummeted 5.14% during intraday trading on Thursday, extending its recent downward trend as investor sentiment remains under pressure.

The decline follows reports that Mixue's Hong Kong store count has shrunk significantly from a peak of 9 to just 5 locations, with the company's presence in core commercial districts fully contracting. Market concerns center on the structural mismatch between Mixue's budget high-volume business model and high-rent markets like Hong Kong, where monthly rents in core areas reportedly reach HK$288,000, making it difficult for low-margin tea drinks to cover fixed costs.

Adding to investor worries, financial data shows Mixue's overseas stores recorded their first annual net decline since the brand began international expansion in 2018, with 428 net closures bringing the year-end overseas total to 4,467. Key markets including Japan, Indonesia, and Vietnam have all contracted, with Japan retaining only 4 stores, far below prior expansion targets.