First annual report after going public: Shanghai Aunt earns 1.37 million yuan daily, with third-tier cities making the biggest contribution

On the evening of March 24, Hushang Ayi (02589.HK) released its first post-listing financial report. The company’s 2025 revenue hit RMB 4.47 billion, a year-on-year increase of 35.96%; profit attributable to shareholders was RMB 500 million, a year-on-year increase of 52.41%.

Similar to Mixue Bingcheng, Hushang Ayi’s main source of revenue is the sale of raw materials to franchisees. In 2025, this segment generated RMB 3.616 billion in total revenue, accounting for 81% of total revenue, a year-on-year increase of 37.4%; franchise services generated RMB 690 million in 2025, accounting for 15.5% of total revenue, a year-on-year increase of 28.5%.

Overall, Hushang Ayi’s performance growth is related to the company’s large-scale store expansion last year. Hushang Ayi currently operates three main brands: Hushang Ayi, Tea Waterfall, and Hu Coffee. As of the end of 2025, the number of Hushang Ayi stores reached 11,449, a year-on-year increase of 24.8%. Of these, the number of franchise stores increased by 2,271, while the number of directly operated stores increased by 2. In addition, Caixin Finance noted that Hushang Ayi’s revenue per store is also rising: **in 2025, the company’s average revenue per store was RMB 390,000, up 8.9% from RMB 358,000 in 2024. **

Hushang Ayi is a tea drink company that has focused on lower-tier markets, with stores in cities below tier-three accounting for 52.7%. In 2025, cities below tier-three were also the main areas driving Hushang Ayi’s expansion. In this category, 1,400 stores were added in 2025, an increase of 30.2%, far exceeding the growth rates of stores in first-tier cities, new first-tier cities, and second-tier cities.

Hushang Ayi said that, according to Zhishang Consulting, measured by total transaction value, from 2023 to 2028, the existing ready-to-drink tea beverage store market in China’s tier-three and below cities is the largest segment and the one expected to grow the fastest. In the future, there is tremendous growth potential. We highly value cities at tier-three and below and have advantages in areas such as store coverage and supply chain network.

However, it is worth noting that in 2025, while Hushang Ayi opened stores aggressively, the number of store closures also hit a new high: in 2025, the number of closures was 1,383. This figure is roughly comparable to the net increase in store numbers in tier-three cities.

Hushang Ayi explained: “We place a strong emphasis on the quality of store operations and the efficiency of channel network operations. Based on operating conditions, we manage, support, and optimize existing stores. While expanding store scale, the number of closed franchise stores naturally increased as well. On the one hand, this is because some franchisees are unable to achieve ideal store profitability, or cannot secure alternative locations after their store leases expire. On the other hand, in order to further enhance consumer experience and improve store operating quality, we made proactive adjustments to store layouts and orderly exited certain franchise stores.”

It is also worth mentioning that although Hushang Ayi turned in a performance report with a big jump, the capital markets did not “buy it.” On the morning of March 25, Hushang Ayi’s share price closed at HKD 77.1, down 0.77%. Then, after the afternoon opening, it gradually regained ground; as of the time of writing, it was HKD 77.7, down slightly by 0.06%. In fact, since Hushang Ayi’s listing, its share price has continued to fall. Compared with the first day of listing, the company’s share price has dropped by a total of about 59%.