Net profit soars by 52%! Shanghai Auntie proves with the ten-thousand-store ecosystem that a good model is more important than rapid expansion.

Ask AI · How does Hu Shang Auntie’s franchise model help it stand out in competitive industry markets?

The rapid expansion of store size is the core driver behind Hu Shang Auntie’s revenue growth, and it also confirms that its franchise model is well recognized in the market.

Produced by | China In-View Network

Reviewed by | Li Xiaoyan

Against the backdrop of the new tea drink industry entering stock competition and its growth rate gradually slowing, leading brands are seeking new growth breakthroughs through going public, expanding outlets, and upgrading their brands. As a “10,000-store” brand within its segment, Hu Shang Auntie, backed by a clear business model and large-scale layout, delivered an impressive set of results in 2025. On March 24, Hu Shang Auntie released its full-year 2025 financial report. Revenue and net profit both achieved substantial growth. Its 10,000-store scale was further strengthened, and although it faced common operational challenges in the industry and the capital market’s cautious wait-and-see stance, the brand’s overall development momentum remained stable, and its long-term growth potential is still well worth期待.

Financial report data shows that in 2025, Hu Shang Auntie’s total revenue reached 4.47B yuan, up 35.96% year over year; attributable net profit was 501 million yuan, up 52.41% year over year. Both revenue and net profit growth rates stayed at a high level, demonstrating strong operating vitality. Among publicly listed new tea drink brands, Hu Shang Auntie’s profit growth rate ranks among the top in the industry. Even if its actual profitability was slightly lower than the previously forecast range, it does not affect the core trend of its performance growth. This achievement is driven by the brand’s mature franchising system and efficient operations management, enabling it to deliver steady growth against the headwinds in an industry under overall pressure.

From the perspective of business structure, selling ingredients to franchisees and providing franchise services form Hu Shang Auntie’s core revenue sources. Ingredient sales revenue was 3.62B yuan, accounting for 81% of total revenue, up 37.4% year over year; franchise service revenue was 690 million yuan, accounting for 15.5%, up 28.5% year over year. This kind of franchise supply-chain-centered business model is the mainstream path for large-scale development in the new tea drink industry. Hu Shang Auntie, through standardized ingredient supply and unified quality-control management, ensures consistency in product taste across stores nationwide, while also leveraging economies of scale to optimize costs and increase revenue. By the end of 2025, the brand had a total of 11,449 stores, up 24.8% year over year. Franchise stores added a net 2,271 locations. The formation of the “10,000-store” scale not only builds deep market barriers, but also makes the brand’s advantages in expanding into lower-tier markets even more prominent. Stores in third-tier cities and below account for more than half, precisely matching mainstream consumers’ demand for tea drinks, and providing solid support for continued revenue growth.

The rapid expansion of store size is the core driver behind Hu Shang Auntie’s performance growth, and it also confirms the market recognition of its franchise model. In today’s highly intense competition in the new tea drink industry, with accelerated store survival-of-the-fittest dynamics, Hu Shang Auntie’s net store growth for the full year remains at a high level, indicating the brand’s strong attractiveness to franchisees. The brand provides franchisees with full-lifecycle services—such as site selection assessment, opening support, operational training, and marketing guidance—through a digital management system. This helps franchisees reduce operating risk and improve profitability at the single-store level, creating a virtuous cycle of coordinated development between the brand and franchisees.

It is undeniable that amid the broader environment of slowing overall industry growth, Hu Shang Auntie also faces phased operational challenges. In 2025, the brand’s store closure rate increased somewhat. The franchisee churn rate remains at a medium level within the industry. Changes in contract liabilities and trade receivables also reflect that some franchisees have cash-flow pressures. This is a common issue in the franchised chain industry and not unique to Hu Shang Auntie. At the same time, there is also room for improvement in areas such as pricing within the brand’s supply chain and the allocation ratio of marketing and R&D investment. These challenges are a necessary stage in the brand’s transition from scaling up to high-quality development. They also force the brand to further optimize supply chain management, balance the interests of all parties, and improve the franchising ecosystem.

On the brand-building front, Hu Shang Auntie’s 2025 marketing layout has notable highlights. Total sales and marketing expenses were 504 million yuan for the year, up 27.9% year over year. Through methods such as collaborating with spokespersons, IP co-branding, advertising on social platforms, and values-based marketing, it precisely reaches younger consumer groups and shapes a distinctive brand image. The brand focuses on “her culture,” centering its core narrative on “Eastern her power.” Working with female representatives of different age groups such as Ju Jingyi and Wu Yanshu, it conveys brand concepts of confidence, delighting in oneself, and freedom. This both aligns with the emotional needs of today’s consumer groups and establishes differentiated brand recognition, effectively enhancing brand visibility and user stickiness. Although some marketing tie-ins have sparked market discussion, it also shows the brand’s willingness to innovate and explore attempts at emotional resonance, accumulating experience for its youth-oriented upgrade.

Worth noting is that Hu Shang Auntie maintains a standardized operational logic in terms of capital operations. It distributes dividends reasonably before and after going public. This is a reasonable return to shareholders’ rights and interests, and it also aligns with the commercial practices of mature enterprises. Meanwhile, the brand uses the raised funds for long-term projects such as improving digital capabilities and optimizing the supply chain. It focuses on long-term development of its core business rather than short-term capital speculation, reflecting a pragmatic development attitude. The stock market’s phase-by-phase pullback in market value is a cautious response from the capital market to the new tea drink industry as a whole, not an indication that the brand’s fundamentals are facing problems. As the brand continues to optimize operations and improve profitability at the single-store level, its long-term value will eventually become more visible.

From an industry development perspective, the new tea drink industry has moved from barbaric growth to a stage of fine cultivation. Making both scale expansion and quality improvement equally central has become the core proposition for brand development. With its “10,000-store” scale, mature franchising system, and clear brand positioning, Hu Shang Auntie has already secured a leading position in the mainstream tea drink segment. The current phase of challenges is precisely an opportunity for the brand to optimize and upgrade. Going forward, if it can further optimize the allocation of supply-chain profits, increase investment in product R&D, and better balance the allocation of marketing and R&D resources—so as to more effectively take into account the interests of the brand, franchisees, and consumers—then it will surely build an even more sustainable growth flywheel.

Hu Shang Auntie has grown from a regional tea drink brand into a leading “10,000-store” chain leader. Having gone through tests of industry cycles, it has always remained rooted in the mainstream consumer market. Behind its performance growth and scale expansion is a comprehensive reflection of its business model, operational capabilities, and brand strength. In the wave of high-quality development in the new tea drink industry, Hu Shang Auntie is gradually completing its transition from scale-driven growth to efficiency-driven growth. Even if it faces industry-wide common pressures in the short term, with deep market foundations and continuous optimization and adjustment, it is expected to unlock greater potential over the long run and become a steady leader running ahead in the mainstream tea drink segment.