Chagee (CHA) Q1 2025 earnings summary

Executive summary

• Operated 6,681 teahouses as of March 31, 2025, up 63.6% year-over-year, with strong expansion in Greater China and overseas markets.

• Registered members surged to 192.4 million, a 109.6% year-over-year increase; active members reached 44.9 million.

• Total GMV for Q1 2025 reached RMB8,226.8 million, a 38.0% increase from Q1 2024.

• Net income reached RMB677.3 million, a 13.8% year-over-year increase.

• Completed IPO in April 2025, raising US$411.2 million, with an additional US$61.7 million from over-allotment.

Financial highlights

• Net revenues increased 35.4% year-over-year to RMB3,392.7 million (US$467.5 million).

• Operating income rose to RMB820.8 million (US$113.1 million), with an operating margin of 24.2% (down from 28.2% in Q1 2024).

• Net income margin was 20.0%, down from 23.7% in Q1 2024.

• Basic and diluted EPS were RMB3.92 (US$0.54), up from RMB3.32 in Q1 2024.

• Cash and equivalents, restricted cash, and time deposits totaled RMB5,392.4 million as of March 31, 2025.

Segment performance

• Franchised teahouse revenues grew 31.8% to RMB3,149.9 million, representing 92.8% of total net revenues.

• Company-owned teahouse revenues increased 107.7% to RMB242.8 million, accounting for 7.2% of total net revenues.

• Overseas teahouses grew to 169, with notable expansion in Malaysia, Singapore, and Thailand.

• Average monthly GMV per teahouse in Greater China was RMB431,973, down from RMB549,432 in Q1 2024.

• Same store GMV growth in Greater China was -19.1% to -18.4% year-over-year.