Mixue Group's stock plummeted 5.06% during intraday trading on Monday, reflecting investor concerns about the company's recent developments.

The decline comes as the company faces significant challenges in its overseas expansion, with financial data showing the first annual net decrease in overseas store count since the brand began international expansion in 2018. The company reported a net closure of 428 stores, primarily concentrated in core markets including Indonesia and Vietnam, while its Japan market remained stagnant with only 4 stores, far below the original target of 20.

Additionally, market participants expressed concerns over Mixue Group's recent entry into beer brewing through its Phase III project in Chengdu, which features a brewery with planned annual output of 30,000 tons of fermented beverages. The uncertainty of this new business line and the associated increase in capital expenditure have raised further questions among investors.