Chagee announced its first quarterly report after going public, with a GMV year-on-year growth rate of 38%

According to Zhitong Finance APP, on the evening of May 30, Chagee (CHA.US) publicly released its first financial report since going public.

On April 17, Chagee successfully listed on NASDAQ under the stock code CHA. On May 30, Chagee announced its first financial report after going public, making it the first listed tea beverage company to release its Q1 financial report. Amid fierce competition in the domestic tea beverage market and increasing volatility in the international market, Chagee has maintained steady growth and strategic determination.

The financial report shows that as of March 31 this year, in the first quarter of 2025, its global store count reached 6,681, with a total GMV of 8.23 billion yuan, a year-on-year increase of 38%. The total net revenue for the quarter was 3.39 billion yuan, a year-on-year increase of 35.4%; net profit was 677 million yuan, a year-on-year increase of 13.8%; the number of registered members on its mini-program exceeded 190 million, with 44.9 million active users in the quarter.

In this quarter, Chagee increased its investment in research and development, IT services, and talent recruitment. Looking to the future, the continuous advancement of global layout, differentiated advantages in product innovation, and healthy development of the user ecosystem will become its three strategic pillars.

GMV and net revenue year-on-year growth both exceed 35%    Product innovation drives user growth 

For the tea beverage industry, the first quarter is often considered the "off-season." During this off-season, Chagee demonstrated strong growth: the financial report shows that for the first quarter ending March 31, 2025, Chagee's GMV (Gross Merchandise Volume) and net revenue both saw year-on-year increases exceeding 35%. The total GMV for the quarter reached 8.23 billion yuan, a year-on-year increase of 38%; total net revenue was 3.39 billion yuan, a year-on-year increase of 35.4%. 

While GMV and net revenue showed steady growth, Chagee also maintained a profit margin higher than its peers. In the first quarter, Chagee's net profit was 677 million yuan, a year-on-year increase of 13.8%; the net profit margin was 20%, basically in line with the full-year net profit margin of 20.3% for 2024, continuing to lead the industry average.

Behind the performance growth is a steady expansion pace and a continuous pursuit of product innovation. The financial report shows that by the end of the first quarter, Chagee's global store count reached 6,681, with 241 new stores added in one quarter, an increase of 2,598 stores compared to the same period last year. Among them, there are 6,512 stores in the Chinese market (including Hong Kong) and 169 overseas stores.

Among domestic tea beverage companies, Chagee places particular emphasis on user operations. In the first quarter, Chagee added approximately 15 million new members—by March 31, 2025, the number of registered members on its mini-program reached 192.4 million, a year-on-year increase of 109.6%. The number of active users in the quarter was 44.9 million.

Behind the growth, Chagee's "listening to advice" and "hearing the voices of users" have gained recognition from many users. In early March, the highly praised seasonal limited product "Awakening Spring Mountain" returned to nationwide stores; in late March, Chagee launched the Light Cause series products to respond to consumers' segmented needs. This not only gained recognition from old users but also attracted new users who are intolerant to caffeine to place orders. On May 21, the sixth "International Tea Day," Chagee announced the internal testing of its new tea friend rights system CHAGEE TOWN, expecting to invite over 52,100 tea friends nationwide to participate in the testing, with the LTC project (Listening to Consumer, The "Listening to Consumers" project has also been launched, planning to start "CHAGEE Tea Talks" in nearly a hundred cities nationwide.

Caption: CHAGEE is reaching out to users through tea talks and other methods.

Significant Growth in Overseas Markets   Exploring More Localization Models

The expansion of overseas business is seen as one of the new growth points for tea beverage companies. CHAGEE's globalization strategy began early and is cautiously laid out. Established in 2017, CHAGEE set up its overseas business department in 2018. In 2019, CHAGEE opened its first store in Malaysia, marking the official start of its globalization journey.

In this financial report, CHAGEE disclosed its quarterly total GMV in overseas markets and the distribution of stores in various regions for the first time. According to the report, the total GMV of CHAGEE's overseas market reached 178 million yuan this quarter, a year-on-year increase of 85.3%. In the first quarter, the number of overseas stores increased by 13. By the end of the first quarter, CHAGEE had a total of 169 overseas stores, with 157 located in Malaysia, 10 in Singapore, and 2 in Thailand.

It can be seen that the Southeast Asian market is a strong growth area for CHAGEE's overseas expansion. Outside of the financial report, according to public information, on April 11, the flagship store of CHAGEE in Indonesia opened. Indonesia is the fourth most populous country in the world, and CHAGEE's first flagship store in Indonesia is located in the capital, Jakarta, covering an area of about 170 square meters. The opening event was bustling, with long queues forming on-site. It is reported that within three days of opening, this flagship store served 11,000 cups.

Caption: In January 2025, CHAGEE opened its second flagship store in Singapore.

As the beginning and a key point of its overseas layout, CHAGEE's expansion in Southeast Asia features more localized characteristics. In January of this year, CHAGEE opened its second flagship store in VivoCity, a commercial complex in Singapore, covering more than 375 square meters. The store is adorned with palm trees and Peranakan-style products, reflecting the local geographical and cultural characteristics. In May, CHAGEE reached a strategic cooperation agreement with the hotel giant Magma in Malaysia, planning to open 300 new stores in Malaysia over the next three years. Magma is a listed company that manages several high-end hotels in Malaysia and is also involved in resort development. The combination of CHAGEE's brand momentum and consumer reputation, along with Magma's deep local expertise, is seen as a "strong alliance" that is expected to accelerate its business expansion in Malaysia Unlike the Southeast Asian market, Chagee's expansion in the North American market has undergone a longer preparation period, with a more steady and cautious pace. On May 11 of this year, Chagee's first store in North America officially opened, located in the popular shopping mall Westfield Century City in Los Angeles, USA. It was revealed that on the opening day of the North American flagship store, over 5,000 cups were sold, attracting many local consumers with a lifestyle that is entirely different from coffee.

Investing in the Future: Continuously Increasing Investment in Product Research and Development, IT Services, and Talent Recruitment

Faced with fierce competition in the new tea beverage industry, different companies have adopted various strategies. From an external perspective, Chagee has clearly continued its strategy centered around "tea."

The reasons for the increase in various costs in the financial report highlight Chagee's investment focus. Among them, the "general and administrative expenses" for the first quarter amounted to 352.8 million yuan, a year-on-year increase of 62.1%. This cost increase is mainly due to product research and development, IT services aimed at improving efficiency, and expanding talent recruitment. Specifically, the cost expenditure for product research and development increased by 53.6 million yuan in this quarter.

Taking the newly launched Light Yin series products as an example. On March 21, 2025, Chagee launched the Light Yin series new products for the first time in provincial capital cities across the country, including Light Yin·Bo Ya Jue Xuan and Light Yin·Bo Ya Xian Chi, while also launching a "Light Yin Zone" nationwide, incorporating Qingqing Nuoshan, Baiwu Hongchen, Amber Light, and Qilixiang into the Light Yin Zone. On May 23, the Light Yin·Hua Tian Oolong was launched nationwide. The introduction of the Light Yin series products aims to meet the needs of consumers with different caffeine tolerances—taking Bo Ya Jue Xuan as an example, compared to the classic version, a large cup of standard ice and standard sugar Light Yin·Bo Ya Jue Xuan has a caffeine content of about 53 milligrams, a direct reduction of about 50% in caffeine. Behind this, Chagee has utilized supercritical carbon dioxide extraction decaffeination technology: extracting and separating caffeine from tea leaves without using any organic solvents during the entire extraction process, thereby reducing the caffeine content while ensuring the natural quality and aroma of the tea.

While promoting improvements in processes, equipment, and workflows, Chagee is also innovatively reducing the burden on employees while enhancing efficiency and customer satisfaction. It is understood that Chagee started the "Night Clean Plan" at the end of 2023—where the company hires outsourced teams to complete closing tasks after the store's daily operations end, which are then verified by store employees. As of April 2025, the "Night Clean Plan" has covered over 1,100 stores in 60 cities, helping 16,000 store employees achieve "on-time off work and smooth early opening," thus reducing the impact of closing times on customer order choices and improving user satisfaction