Chagee (CHA) Registration Filing summary

Company overview and business model

• Operates as a leading premium freshly-made tea drinks brand with a focus on health, quality, and technology-driven innovation.

• As of December 31, 2024, manages 6,440 teahouses (6,284 in China, 156 overseas), the largest network among premium tea brands in China.

• Utilizes a managed franchise model, with 6,271 franchised and 169 company-owned teahouses, emphasizing centralized quality and operational standards.

• Core menu centers on tea lattes, accounting for over 90% of GMV in 2024, leveraging advanced extraction and automation for consistency.

• Digitalization enables online management of drinks preparation, supply chain, store lifecycle, and payments, supporting operational efficiency.

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 turned positive in 2023 (RMB802.6M) and rose 213.3% to RMB2,514.6M (US$344.5M) in 2024.

• Working capital surplus increased to RMB3,141.7M (US$430.4M) by end-2024.

• Total GMV reached RMB29.5B in 2024, up 173% YoY; average monthly GMV per teahouse in China was RMB512K.

• 177.3M registered members in the mobile mini program as of December 31, 2024.

Use of proceeds and capital allocation

• Net proceeds will fund expansion of teahouse network 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.