Down 88%! “China’s No. 1 milk tea stock” can’t sell anymore
“Xiangpiaopiao milk tea sells more than 300 million cups a year—lined up, the cups could circle the Earth.”
Many people are familiar with this slogan.
But with the release of its third-quarter 2026 report, the topic “Xiangpiaopiao can’t sell anymore” has once again sparked heated discussion.
The financial report shows that the company’s revenue fell 10.02% year over year, while net profit attributable to shareholders plunged 88.09%. Net profit for the third quarter was just 974,600 yuan.
Owners of convenience stores also say that their stock has been sitting around for a long time and is very hard to sell.
Xiangpiaopiao has tried to turn things around. It launched ready-to-drink products such as Meco fruit tea, signed celebrity endorsers, sponsored variety shows, and tested the waters with brick-and-mortar tea shops—but still couldn’t reverse the downward trend.
Two other long-established beverage brands also struggled during the same period:
Yangyuan Beverage reported third-quarter revenue of 1.495 billion yuan, up 3.85%, and net profit of 277 million yuan, down 26.29% year over year;
Chengde Lulu reported revenue of 490 million yuan, down 14.30%, and net profit of 76 million yuan, a decline of 39.05%.
Although these products are highly seasonal and the third quarter is traditionally the off-season, seasonality alone cannot explain the broad-based weakness.
Ready-made milk tea is taking over the occasions once served by instant milk tea. There are more and more alternatives in the gift market, and consumers are shifting toward healthier options. The old products’ growth tailwinds have faded, while new products have yet to take off. The pressure on these long-established beverage brands is plain to see.
How long has it been since you last bought instant milk tea?
$MSFTB
“Xiangpiaopiao milk tea sells more than 300 million cups a year—lined up, the cups could circle the Earth.”
Many people are familiar with this slogan.
But with the release of its third-quarter 2026 report, the topic “Xiangpiaopiao can’t sell anymore” has once again sparked heated discussion.
The financial report shows that the company’s revenue fell 10.02% year over year, while net profit attributable to shareholders plunged 88.09%. Net profit for the third quarter was just 974,600 yuan.
Owners of convenience stores also say that their stock has been sitting around for a long time and is very hard to sell.
Xiangpiaopiao has tried to turn things around. It launched ready-to-drink products such as Meco fruit tea, signed celebrity endorsers, sponsored variety shows, and tested the waters with brick-and-mortar tea shops—but still couldn’t reverse the downward trend.
Two other long-established beverage brands also struggled during the same period:
Yangyuan Beverage reported third-quarter revenue of 1.495 billion yuan, up 3.85%, and net profit of 277 million yuan, down 26.29% year over year;
Chengde Lulu reported revenue of 490 million yuan, down 14.30%, and net profit of 76 million yuan, a decline of 39.05%.
Although these products are highly seasonal and the third quarter is traditionally the off-season, seasonality alone cannot explain the broad-based weakness.
Ready-made milk tea is taking over the occasions once served by instant milk tea. There are more and more alternatives in the gift market, and consumers are shifting toward healthier options. The old products’ growth tailwinds have faded, while new products have yet to take off. The pressure on these long-established beverage brands is plain to see.
How long has it been since you last bought instant milk tea?
$MSFTB