On August 27, Xiang Piaopiao Food Co., Ltd. (Xiang Piaopiao) announced that its net profit in the first half of 2025 fell by 230.13% compared to the same period last year. The traditional pillar of Xiang Piaopiao’s business, the tea brewing segment, saw a 31.04% decrease in revenue in the first half of the year.
In the “2025 Interim Report” released on August 27, Xiang Piaopiao stated that the company achieved a revenue of 1.035 billion yuan in the first half of the year, a 12.21% year-on-year decline. The net profit incurred a loss of 97 million yuan, a 230.13% decrease compared to the same period last year.
Explaining the reasons for the loss in performance, Xiang Piaopiao stated in the announcement that although the operating income in the second quarter slightly increased, the overall performance in the first half of the year still declined due to the impact of the first quarter.
Established in 2005, Xiang Piaopiao is primarily engaged in the research and development, production, and sales of milk tea beverage products. The cup-packaged milk tea brand under the company, Xiang Piaopiao, is its main product. However, with the shrinkage of the traditional tea brewing business, sales have been declining. In the first half of this year, the revenue from the tea brewing business was 423 million yuan, a decrease of 31.04% compared to the same period last year.
In response, on August 27, “Yicai” mentioned that from a market perspective, consumer habits for tea consumption are shifting towards ready-to-drink and freshly made options. This trend has squeezed the market space for the tea brewing business, with ready-to-drink options gradually becoming the mainstream in the consumer market.
Facing the market changes, Xiang Piaopiao has begun to expand its ready-to-drink business. During the reporting period in the first half of this year, revenue from the ready-to-drink business reached 591 million yuan, an 8.03% year-on-year increase. For the first time, the performance of the ready-to-drink business has surpassed the tea brewing business, accounting for 58.27% of the main business revenue.