Chagee Announces Second Quarter 2025 Unaudited Financial Results

Core Viewpoint - Chagee Holdings Limited reported its unaudited financial results for the second quarter of 2025, highlighting a significant increase in revenues but a notable decline in net income due to increased operating expenses and share-based compensation costs. Financial Highlights - Total net revenues increased by 10.2% to RMB3,331.9 million (US$465.1 million) from RMB3,023.3 million in the same quarter of 2024 [4] - Total operating expenses rose by 41.5% to RMB3,224.3 million (US$450.1 million) from RMB2,279.4 million in the same quarter of 2024 [5] - GAAP net income decreased by 87.7% to RMB77.2 million (US$10.8 million) from RMB628.7 million in the same quarter of 2024 [6] - Non-GAAP net income, adjusting for share-based compensation, was RMB629.8 million (US$87.9 million), a slight increase of 0.1% year-over-year [6] - Operating income was RMB107.6 million (US$15.0 million), with an operating margin of 3.2%, down from 24.6% in the same quarter of 2024 [6] Operational Highlights - As of June 30, 2025, the company had 7,038 teahouses, a 40.9% increase from the previous year [6] - Total GMV for the second quarter was RMB8,103.1 million, a 15.5% increase from the same quarter of 2024 [6] - Average monthly GMV per teahouse in Greater China was RMB404,352 [6] - The Mobile Mini Program had 206.9 million registered members, a 42.7% increase year-over-year [6] Revenue Breakdown - Net revenues from franchised teahouses were RMB3,020.7 million (US$421.7 million), a 6.1% increase from RMB2,847.8 million in the same quarter of 2024 [6] - Net revenues from company-owned teahouses were RMB311.2 million (US$43.4 million), a 77.3% increase from RMB175.5 million in the same quarter of 2024 [6] Cost Structure - Cost of materials, storage, and logistics was RMB1,536.8 million (US$214.5 million), a decrease of 1.5% from RMB1,560.8 million in the same quarter of 2024 [6] - Company-owned teahouse operating costs increased by 72.8% to RMB184.1 million (US$25.7 million) due to the expansion of the company-owned network [6] - General and administrative expenses surged by 301.1% to RMB944.6 million (US$131.9 million) [11] Leadership Update - The company appointed Emily Chang as Chief Commercial Officer for North America and Aaron Harris as Chief Development Officer for North America to enhance its expansion capabilities in the region [13][14][15]