Chagee (CHA) Registration Filing summary

Company overview and business model

• Operates the largest premium freshly-made tea drinks network in China, with 6,440 teahouses as of December 31, 2024, including 6,284 in China and 156 overseas.

• Employs a managed franchise model, with 6,271 franchised and 169 company-owned teahouses, focusing on product quality, supply chain, and consumer service.

• Core menu centers on tea lattes, accounting for 91% of 2024 GMV in China, leveraging technology for automation and digitalization across operations.

• Membership program reached 177.3 million registered members by end of 2024, with 99.2 million active members.

Financial performance and metrics

• Net revenues grew 843.8% to RMB4,640.2M in 2023 and 167.4% to RMB12,405.6M (US$1,699.6M) in 2024.

• Net income rose from RMB802.6M in 2023 to RMB2,514.6M (US$344.5M) in 2024; working capital surplus reached RMB3,141.7M (US$430.4M) at 2024 year-end.

• Total GMV increased from RMB10.8B in 2023 to RMB29.5B in 2024, with average monthly GMV per teahouse in China at RMB512K in 2024.

• Gross margin improved as cost of materials as a percentage of revenue decreased from 53.1% in 2023 to 48.4% in 2024.

Use of proceeds and capital allocation

• Estimated net proceeds of US$362M (up to US$417.3M if over-allotment exercised).

• Planned allocation: US$144.8M for teahouse expansion, US$72.4M for brand/marketing, US$54.3M for technology, US$36.2M for new product development, US$18.1M for overseas supply chain, and US$36.2M for general corporate purposes.