Chagee Holdings Limited Unsponsored ADR ( (CHA) ) has released its Q2 earnings. Here is a breakdown of the information Chagee Holdings Limited Unsponsored ADR presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Chagee Holdings Limited, a prominent player in the premium tea drinks industry, is known for its healthy and freshly-made tea beverages, operating primarily in Greater China and expanding globally. In its latest earnings report for the second quarter of 2025, Chagee highlighted a significant expansion in its teahouse network, with a 40.9% increase in the number of teahouses compared to the previous year. The company’s total gross merchandise value (GMV) rose by 15.5%, driven by both domestic and international growth.
Key financial metrics revealed a 10.2% increase in net revenues, reaching RMB3,331.9 million, although the operating income saw a substantial decline to RMB107.6 million, reflecting a reduced operating margin. The net income also decreased sharply by 87.7% to RMB77.2 million, attributed to increased operating expenses and share-based compensation costs linked to the company’s IPO. Despite these challenges, non-GAAP net income showed a slight year-over-year increase.
Chagee’s strategic focus on expanding its franchised and company-owned teahouses contributed to revenue growth, with franchised teahouses accounting for 90.7% of total net revenues. The company also made significant strides in its North American expansion by appointing key executives with extensive experience in the food and beverage sector, positioning itself for further market penetration.
Looking ahead, Chagee remains committed to leveraging its innovative branding and technology to enhance its market presence. The management’s strategic initiatives and expansion plans are expected to continue driving growth, despite the current financial challenges.