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 (6,284 in China, 156 overseas) as of December 31, 2024.

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

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

• Rapid expansion in China and Southeast Asia, with plans for further global growth and supply chain enhancement.

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 734.3% from RMB1,293.7M in 2022 to RMB10,792.8M in 2023, and 172.9% to RMB29,457.7M in 2024.

• Average monthly GMV per teahouse in China was RMB511.7K in 2024; average cups sold per teahouse per month reached 25,099.

Use of proceeds and capital allocation

• IPO proceeds will fund teahouse network expansion in China and overseas, new product development, overseas supply chain, technology investment, and general corporate purposes.

• Proceeds may be transferred to PRC subsidiaries via capital contributions or loans, subject to regulatory approvals.