Chagee Holdings Reports Strong Q1 2025 Financial Growth

Chagee Holdings Limited Unsponsored ADR ( (CHA) ) has released its Q1 earnings. Here is a breakdown of the information Chagee Holdings Limited Unsponsored ADR presented to its investors.

Chagee Holdings Limited, a prominent premium tea drinks brand, specializes in offering healthy and freshly-made tea beverages, operating primarily in the food and beverage sector. The company has successfully integrated traditional tea culture with modern lifestyle experiences, leveraging technology and innovative branding.

In its latest financial report for the first quarter of 2025, Chagee Holdings Limited announced a significant increase in net revenues, driven by the expansion of its teahouse network. The company reported a 35.4% rise in net revenues, reaching RMB3,392.7 million, alongside a 13.8% increase in net income, totaling RMB677.3 million.

Key highlights from the report include a 63.6% growth in the number of teahouses, reaching a total of 6,681, and a 38.0% increase in total gross merchandise value (GMV). The company also saw a substantial rise in its registered and active member base, with registered members growing by 109.6% year-over-year. However, the operating margin saw a slight decline from 28.2% to 24.2% due to increased operating expenses.

Despite the rise in revenues and net income, Chagee’s operating expenses surged by 42.8%, primarily due to the expansion of its teahouse network and increased marketing efforts. The company’s strategic focus on expanding both franchised and company-owned teahouses has been a significant driver of revenue growth, with franchised teahouses contributing 92.8% of total net revenues.

Looking ahead, Chagee Holdings Limited remains optimistic about its growth prospects, continuing to focus on expanding its global footprint and enhancing its product offerings. The company’s management is committed to maintaining its growth trajectory by leveraging its strong brand presence and innovative approach in the tea drinks market.