Chagee (CHA) Registration Filing summary

Company overview and business model

• Operates as a leading premium freshly-made tea drinks brand with 6,440 teahouses globally as of December 31, 2024, including 6,284 in China.

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

• Core menu centers on tea lattes, which accounted for 91% of 2024 GMV in China; advanced automation and digitalization drive operational efficiency.

• Technology integration enables online management of drinks preparation, supply chain, store lifecycle, and payments, supporting rapid expansion and consistent quality.

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 year-end 2024.

• Total GMV increased from RMB1,293.7M in 2022 to RMB10,792.8M in 2023, and 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

• Estimated net proceeds of US$362.0M (or US$417.3M if over-allotment is exercised) will be used for teahouse network expansion, brand building, technology investment, product innovation, overseas supply chain, and general corporate purposes.