Hundred-billion Snow King changes leadership: Can "investment banking elites" resolve the mid-life crisis of 60k stores?

Ask AI · How does Zhang Yuan’s investment-banking background empower Mi Xue Bing Cheng’s capital governance?

“Snow King” getting ready for a change of the guard?

Author | Sun Mengyuan

Editor丨Yu Xing

Source | Yema Finance

The billion-scale “Snow King” welcomes a new “helmsman.”

On March 24, Mi Xue Group (2097.HK) (hereinafter “Mi Xue Bing Cheng”) announced major personnel changes and simultaneously disclosed its 2025 performance. According to the announcement, the company founder Zhang Hongfu stepped down as CEO, and afterward will continue to participate in major group decisions as co-chair and an executive director.

At the same time, the former executive vice president and chief financial officer (CFO) Zhang Yuan assumed the role of CEO. According to available information, Zhang Yuan joined Mi Xue Bing Cheng in 2023. Previously, he worked at multiple financial institutions including BofA Securities and Huilong Investment, bringing extensive experience in financial matters and capital operations.

Alyuan Shuaiz派 new-quality productive forces salon co-founder Yuan Shuai said that Mi Xue Bing Cheng’s power handover from Zhang Hongfu to Zhang Yuan is a key turning point as the company moves from the grassroots entrepreneurship era toward modern capital governance. Zhang Yuan’s core challenge lies in seamlessly embedding the financial logic of data and capital efficiency into an organization that has long relied on brotherhood culture, personal connections, and intuitive judgment from the tier- and township-level market.

The financial report shows that in 2025, Mi Xue Bing Cheng’s revenue was RMB 33.56 billion, up 35.2%; net profit was RMB 5.89 billion, up 32.7%. The performance improvement is mainly attributable to growth in merchandise and equipment sales revenue, as well as steady increases in franchise and related service revenue.

As of March 25, Mi Xue Bing Cheng closed at HK$322 per share, down 5.79%, with a total market value of HK$122.2 billion.

Image source: Canned Photo Library

01
“Post-90s” dealmaker takes over as CEO

Judging from his resume, Zhang Yuan—35 years old—has a typical investment-banking background, holds a master’s degree in finance from Tsinghua University, and his professional experience closely matches the company’s needs after listing, such as capital operations and value/market-cap management. Cui Haijing, who took over his CFO role, is the company’s finance leader grown internally. Starting in 2009 from a frontline position, she has worked across multiple roles including finance and business management, and is well versed in the business logic and control pain points under a franchise system.

According to a report by “21CBR,” at the company’s March 24 performance briefing, Zhang Yuan said that personnel adjustments, in essence, represent an upgraded division-of-labor and role-splitting enhancement for existing management responsibilities. This helps improve management efficiency. Currently, Mi Xue is accelerating overseas store expansion and the globalization of its supply-chain layout, and needs to leverage capital strength to optimize heavy-asset investments such as overseas factories, logistics hubs, and brand acquisitions.

Lin Xianping, associate professor at Zhejiang University City College, pointed out that the core challenge of this leadership change lies in the conflict between the grassroots franchise culture and the professional manager system. The key to this strategic adjustment is, on the basis of retaining the existing culture and strategic endorsements, to empower franchisees through digitalization and process optimization—so that frontline teams can feel that “improving efficiency means increasing revenue,” thereby building a dual-track structure of “professional management + iron-army execution.”

Zhang Hongfu’s stepping down brings the entrepreneurial story of the Zhang brothers back into the public spotlight.

In 1997, the elder brother Zhang Hongchao, who studied adult education at Henan University of Finance and Economics, brought the popular shaved ice from his hometown to Zhengzhou. With the 3,000 yuan saved by his grandmother, he opened a cold-drink stall in the streets of Zhengzhou called “Hanliu Shaved Ice.” But due to multiple factors, he repeatedly closed shops, which put Zhang Hongchao into a debt predicament. Later, Zhang Hongchao went to Hefei to sell candied fruit for a period. In 1999, he returned to Zhengzhou to start a cold-drink business again. Relying on his sweet-tasting jam shaved ice, he named the shop “Mi Xue Bing Cheng.” And it is this chapter of entrepreneurship that made him deeply understand mass consumer needs: low prices, something tangible, and high value for money.

In 2003, “Mi Xue Bing Cheng” was renamed “Mi Xue Bing Cheng Home-Style Restaurant.” By relying on low-priced fast food and cold drinks, it quickly attracted student groups and nearby residents. Zhang Hongchao also set up a stall right at the store entrance to sell ice cream for 2 yuan per stick, and the product became an instant hit.

In 2007, at age 23, younger brother Zhang Hongfu dropped out of school to join the entrepreneurship. With the two brothers working together, this roadside shop was fully propelled onto a fast track of development.

According to the Yangtze River Business Daily, the personalities of Zhang Hongchao and Zhang Hongfu show clear differences. Zhang Hongchao is introverted, steady, and resilient, with an emphasis on technology. Zhang Hongfu is outgoing, flamboyant, has ideas, and is skilled in marketing. Zhang Hongchao advocated building a supply chain from scratch, while Zhang Hongfu introduced the “Snow King” IP to drive the brand’s younger and international identity. Conservatism and aggressiveness complement each other perfectly; the Zhang brothers established a driving model of “low price + supply chain,” helping Mi Xue Bing Cheng develop smoothly.

Image source: Canned Photo Library

In December 2017, Zhang Hongfu became CEO of Mi Xue Bing Cheng. Under his leadership, Mi Xue Bing Cheng’s stores expanded rapidly. By the end of 2018, the number of Mi Xue stores exceeded 5,000. By the end of 2024, the company had 46k stores globally. By the end of 2025, it was close to 60k stores, covering multiple countries and regions such as Indonesia, Vietnam, and South Korea. In March 2025, Mi Xue Bing Cheng listed on the Hong Kong stock market. Its share price once reached HK$618.5 per share, and its market cap peaked at HK$235.03 billion.

Meanwhile, the Zhang brothers’ wealth rose with the tide. On the 2025 Hurun “Top 500 Entrepreneurs” list, the Zhang brothers ranked 16th with a combined wealth of RMB 117.94 billion, becoming Henan’s next richest person. A report previously released by the Hurun Research Institute, the “2026 Hurun Global Rich List,” shows that both brothers ranked 619th with individual wealth of RMB 50.5 billion each. Their wealth increased by RMB 28 billion compared with last year’s RMB 22.5 billion, a growth of 1.24 times.

02
2025 revenue of RMB 33.6 billion

Mi Xue Bing Cheng was founded in April 2008 in Zhengzhou. It focuses on affordable, high-quality fruit drinks, tea drinks, ice cream, and coffee with an average price of about RMB 6. Its business covers catering services, food sales, and other areas. The group’s subsidiaries operate three major brands: Mi Xue Bing Cheng, Lucky Coffee, and Fresh Beer and Fulu Family.

More specifically, Mi Xue’s revenue is divided into two parts. Merchandise and equipment sales still account for 97.6% of the company’s revenue. In 2025, this segment generated RMB 32.7666 billion, up 35.3%. The second part is franchise and related services revenue of RMB 790 million, up 28%.

Image source: Company financial report

Store expansion has always been the core driver of Mi Xue’s performance growth. By the end of 2025, the group’s total number of global stores was 59.8k, including 53,300 stores in Mainland China and 4,467 stores overseas. The domestic stores of the main brand Mi Xue Bing Cheng totaled about 44k, with overseas coverage across 13 countries. It is worth noting that the number of the company’s overseas stores decreased by 428 compared with the previous year.

By the end of 2025, the group’s total financial assets related to cash and cash equivalents and time deposits were RMB 19.99 billion, a massive year-on-year increase of 79.9%. Abundant cash also gives Mi Xue Bing Cheng the confidence to venture into new areas.

In recent years, Mi Xue Bing Cheng has repeatedly expanded into new areas, branching from alcohol and dining into cultural tourism IP.

In March 2026, Sichuan Fresh Beer and Fulu Family Brewing Co., Ltd. (hereinafter “Fresh Beer and Fulu Family”) was established. Shareholders include Fulu Family (Zhengzhou) Enterprise Management Co., Ltd. According to Tianyancha’s equity penetration, the company’s controlling shareholder is Mi Xue Bing Cheng.

Around the same time, Mi Xue Bing Cheng launched a pilot program for freshly-ground coffee, introducing fully automatic coffee machines and upgrading key ingredients. In multiple flagship stores, it also launched five mousse cakes priced at RMB 10.9–12. It is reported that this business was piloted at the company’s headquarters in Zhengzhou as early as 2024, and is now gradually being rolled out nationwide. As early as the end of 2025, Mi Xue Bing Cheng piloted breakfast meal sets in cities including Dalian, Xi’an, and Hangzhou. The first batch of products included breakfast milk (such as Wu Hong Milk, Wu Hei Milk, corn milk, coconut milk, etc., priced at RMB 5 each) and a bread set (set price RMB 7.9). This business is still at the pilot stage and has not been fully promoted yet.

As Mi Xue Bing Cheng’s “lifelong spokesperson” brand IP, the “Snow King” IP created in 2018 is now deeply ingrained in people’s minds.

From catchy theme songs to a series of animated works, Mi Xue Bing Cheng’s operation of the “Snow King” IP has upgraded from image-based marketing to content-building. In December 2024, it specifically established “Snow King Ai Animation Culture (Beijing) Co., Ltd.” focusing on IP content creation and distribution. According to the prospectus plan, about 7% (HK$230 million) of the fundraising will be used to continuously deepen efforts on the brand IP—further tapping the cultural potential of Snow King and strengthening consumers’ recognition of the company’s brand and IP.

The financial report shows that in 2025, Mi Xue Group continued to invest in brand IP building, leveraging the “Snow King” IP to carry out online and offline marketing activities.

In January 2025, the Mi Xue Bing Cheng flagship store—a fusion of “specialty drinks + Snow King IP cultural and creative products”—opened in Zhengzhou, Henan. The Zhengdong New Area government website shows that since trial operations, the store has demonstrated strong traffic attraction. During the Qingming Festival holiday period of three days, cumulative sales exceeded RMB 46k. And as of the end of 2025, the flagship store of Mi Xue Bing Cheng has been established in 23 domestic cities, including Chongqing and Hangzhou.

Image source: Canned Photo Library

At the same time, Mi Xue Bing Cheng is “capitalizing on the heat” to build a themed amusement park. According to a report by Dahe Daily, this February, Mi Xue Bing Cheng’s Snow King City Theme Park was listed by Zhengzhou as a key supported project, with plans to be built in the headquarters flagship area of Mi Xue Bing Cheng. Centered on the Snow King IP, the park plans multiple indoor theme zones and aims to create a three-in-one consumer system of “entertainment + shopping + experience.”

Yuan Shuai analyzed that Mi Xue Bing Cheng’s cross-border expansion mainly comes from entering new tracks at extremely low marginal costs by reusing its massive tier- and township-level market traffic and supply-chain network. The key to its success is not only transferring the traffic at the front end, but also whether it can overcome the fundamental differences in supply-chain and management logic across different businesses (such as breakfast and cultural tourism). If effective coordination cannot be achieved at the back end, it will lead to thin gross margins for the new business, diluted management bandwidth, and blurred the brand’s core mental association—creating a risk of expansion becoming “inflated without substance.”

03
Future challenges

However, despite having nearly 60k stores and firmly holding the top spot in the tea drinks industry, Mi Xue Bing Cheng is not without concerns. Data shows that in 2025, Mi Xue Bing Cheng closed 2,527 franchise stores, up 57.1%, far exceeding the 1,609 closures in 2024. Although it opened 14,496 new stores during the year, some franchisees still find it hard to be profitable.

Image source: Company financial report

But low pricing may also be the “Sword of Damocles” hanging in the air. In 2025, Mi Xue Bing Cheng’s overall gross profit was RMB 60k, up from RMB 8.06 billion in 2024 by 29.7%. However, due to adjustments in revenue mix and increased costs of some raw materials, the gross margin of merchandise and equipment sales fell from 31.2% to 29.9%.

On the Black Cat Complaints platform, cumulative complaints related to Mi Xue Bing Cheng totaled 11.2k entries. The content includes: food safety risks, poor service attitude, refund disputes and “tyrant clauses,” products sent to the wrong address and long waiting times, and so on. In July 2025, Mi Xue Bing Cheng’s video about “employees using their feet to turn off the water bucket” caused controversy; in the same month, it also became a trending topic due to “a customer picking up ice cream and the staff mocking them.”

The financial report states that Mi Xue Bing Cheng will continue to strengthen the operational quality of its stores, while further expanding into new markets and deepening its existing markets, so as to cover a broader range of consumer groups and ensure the sustainable, healthy development of its large store network.

A fact is that the entire industry is in a “elimination round” stage. According to “Red Canteen Big Data,” the growth rate of China’s new tea drink market in 2025 fell sharply to 6.45%, down from the high growth rate of 19.3% in 2023—more than cut in half. Although the number of tea drink stores nationwide reached 449k, 157k tea drink stores still closed.

Last June, Mi Xue Bing Cheng raised the regional store protection distance to 1,000 meters. It then encouraged franchisees to develop in special scenarios such as scenic areas and transportation hubs. According to a report by “Times Finance,” previously Mi Xue Bing Cheng’s store protection range was a straight-line distance of 200 meters in provincial capital cities and 300 meters in other cities and below administrative divisions. This also means that Mi Xue Bing Cheng is adjusting policies for dense expansion.

Meanwhile, analysts’ ratings of Mi Xue Bing Cheng have shown a polarized trend.

On January 27 this year, UBS downgraded Mi Xue Bing Cheng’s rating from Buy to Neutral, and the target price was lowered from HK$490 to HK$468. The report said the company faces risks of gross margin decline, mainly driven by increases in raw material costs (especially key ingredients like lemons), the rollback of delivery subsidies, and intensifying industry competition.

CITIC Securities, meanwhile, said that low pricing means monetization potential. The analysis believes that this potential will not be realized by raising the company’s average order value. Instead, it will be achieved by lowering franchisees’ add-on markup rate, while retail prices are expected to rise by 20% during 2025–2028. Even though the scale is large, the company is still expected to benefit from three-year compound growth of store numbers at high single digits. Unlike peers, Mi Xue Bing Cheng’s growth outlook depends on improving franchisees’ profit margins, not on the traditional leading indicator of sales per store.

In this financial report, Mi Xue Bing Cheng also acknowledged that in 2025, the ready-to-make beverage industry underwent profound changes, bringing new operational challenges. During the year, third-party online platforms increased subsidies for consumption of ready-to-make beverages. On one hand, this brings more exposure for the industry; on the other hand, it also shifts orders toward online channels, directly challenging each brand’s digital operations capabilities. In addition, subsidies have raised consumers’ expectations for the value-for-money of ready-to-make beverages, which sets higher requirements for each brand’s product strength.

How to break the deadlock of scale, profitability, and reputation is the core question after Mi Xue Bing Cheng’s new CEO takes office. According to its plans, Mi Xue Bing Cheng will continue to “strengthen internal capabilities.” While building its core competitiveness around “supply chain + brand IP + store operations,” it will focus on improving digital operations capabilities and product pricing-value ratios, and actively respond to all kinds of tests brought by industry changes. Lin Xianping believes that overall, Mi Xue Bing Cheng is at a critical period of scaling efficiency improvements and trying diversified experiments. Stabilizing the culture, controlling risks, and holding onto the fundamentals are far more important than blind expansion.

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Author statement: personal views only, for reference