Chagee Announces Fourth Quarter and Full Year 2025 Unaudited Financial Results

Core Insights - Chagee Holdings Limited reported its unaudited financial results for Q4 and the full year 2025, highlighting a decline in net revenues and operating income compared to the previous year, primarily due to organizational restructuring and business model transitions [1][4][5]. Financial Highlights - Total net revenues for Q4 2025 were RMB2,974.5 million (US$425.3 million), down from RMB3,334.4 million in Q4 2024, marking a decrease of 10.8% [4]. - For the full year 2025, net revenues increased by 4.0% to RMB12.91 billion (US$1,845.7 million) compared to RMB12.40 billion in 2024 [4]. - The company reported an operating loss of RMB35.5 million (US$5.1 million) in Q4 2025, a significant decline from an operating income of RMB642.5 million in Q4 2024 [5]. - Full year operating income was RMB1,347.2 million (US$192.7 million), down from RMB2,886.6 million in 2024, resulting in an operating margin of 10.4% compared to 23.3% in the previous year [5]. Operational Highlights - As of December 31, 2025, Chagee had 7,453 teahouses, a 15.7% increase from 6,440 teahouses at the end of 2024 [6]. - Total Gross Merchandise Value (GMV) for Q4 2025 was RMB7,322.9 million, with overseas markets contributing RMB371.9 million, an 84.6% year-over-year increase [6]. - Average monthly GMV per teahouse in Greater China was RMB337,358 in Q4 2025, down from RMB455,996 in Q4 2024 [12]. Income Metrics - GAAP net income for Q4 2025 was RMB33.9 million (US$4.9 million), a sharp decline from RMB644.1 million in Q4 2024, resulting in a net income margin of 1.1% [7]. - Non-GAAP net income for Q4 2025, after adjusting for share-based compensation, was RMB100.0 million (US$14.3 million), compared to RMB644.1 million in the same quarter of 2024 [8]. - Basic and diluted net income per ordinary share were both RMB0.15 (US$0.02) in Q4 2025, down from RMB3.69 in Q4 2024 [9]. Cost Structure - Total operating expenses for Q4 2025 were RMB3,010.0 million (US$430.4 million), an increase from RMB2,691.9 million in Q4 2024 [5]. - Cost of materials, storage, and logistics decreased by 13.7% to RMB1,392.6 million (US$199.1 million) in Q4 2025, attributed to reduced raw material costs [11]. - General and administrative expenses rose by 89.0% to RMB635.6 million (US$90.9 million) in Q4 2025, reflecting investments in global corporate infrastructure [11]. Membership Engagement - The company updated its definition of "active members" to include accounts registered through various channels, reporting approximately 44.7 million active members for Q4 2025 [13].