NEW YORK, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Chagee Holdings Limited (“Chagee” or the “Company”) (NASDAQ: CHA). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Chagee and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On August 29, ...

MILWAUKEE, Jan. 20, 2026 /PRNewswire/ -- Ademi LLP is investigating possible securities fraud claims against Chagee Holdings Limited (NASDAQ: CHA). The investigation results from inaccurate statements Chagee may have made regarding its business operations and prospects. Click here to join our investigation or to obtain additional information, or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you. The investigation focuses on Chagee's representations with respe ...

Core Viewpoint - Johnson Fistel, PLLP is investigating potential violations of securities laws by Chagee Holdings Limited and its executives regarding misrepresentation or failure to disclose information to investors [1] Group 1: Investigation Details - The investigation focuses on the losses suffered by investors and the possibility of recovering these losses under federal securities laws [1] - Investors who purchased Chagee securities and experienced losses are encouraged to join the investigation [2] Group 2: Whistleblower Information - Individuals with nonpublic information about Chagee are advised to consider assisting the investigation or utilizing the SEC Whistleblower program, which may offer rewards of up to 30% of any successful recovery [3] Group 3: About Johnson Fistel, PLLP - Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with multiple offices across the United States, representing both individual and institutional investors in securities class action lawsuits [4]

Company Overview - Mixue, the world's largest restaurant chain, has opened its first store in the United States on Hollywood Boulevard, Los Angeles, on December 19, contributing to its global presence of over 53,000 stores [1] - The company primarily operates in China but has approximately 4,700 stores across 13 countries, including Australia, Japan, South Korea, Thailand, Malaysia, and Singapore [2] Competitive Positioning - Mixue differentiates itself with a "value-focused" pricing model, offering items priced between $1.99 and $4.99, including signature ice cream at $1.19, iced lemonades at $1.99, lattes at $2.99, and bubble teas starting at $3.99 [3] - The company aims to undercut competition by owning its supply chain, which is managed through a digital system for quality control from ingredient sourcing to distribution [6] Expansion Strategy - Mixue is actively pursuing a global strategy, with plans for further expansion in the U.S. market, starting with openings in New York and a broader presence across the Americas [4] - The beverage category is experiencing significant growth, outpacing the broader restaurant industry, which presents both opportunities and challenges for Mixue and other competitors [5] Operational Focus - The company plans to enhance its supply chain by expanding sourcing capabilities, improving logistics efficiency, and investing in production capacity and research and development to support sustainable growth while maintaining product quality and affordability [6]

Core Insights - Chagee Holdings Limited has released its inaugural Sustainability Report for 2024, marking a significant milestone in the fresh tea beverage industry's sustainability journey [1] - The report highlights the company's integration of sustainability across its entire value chain, emphasizing cultural heritage, industrial collaboration, and ecological protection [2] Group 1: Company Overview - Chagee is a leading premium tea drinks brand founded in 2017, transforming traditional tea culture into a modern lifestyle experience [7] - The company aims to connect the world through tea, achieving progress in market expansion, product innovation, social responsibility, and global presence [3] Group 2: Sustainability Themes - **Culture**: Chagee partners with traditional artisan communities and cultural heritage programs to preserve techniques and promote Chinese tea culture globally [4] - **Connection**: The company has donated over RMB 4 million to build 37 multifunctional playgrounds benefiting over 5,000 rural children and operates silent stores for hearing-impaired individuals [4] - **Health**: Chagee ensures customer safety and health throughout the product life cycle and became the first fresh tea beverage brand to implement Shanghai CDC's "Nutritional Grading" standards [6] - **Ecology**: The company has built fresh milk supply networks reducing transportation carbon emissions by 70% and promotes sustainable packaging and new energy vehicle usage [5] Group 3: Social Responsibility and Employee Care - Chagee engages in disaster relief and supports underprivileged groups while ensuring rigorous health standards [7] - The "Night Clean Plan" covers approximately 1,000 stores, focusing on employee safety and work-life balance [6]

Core Insights - Chagee Holdings Limited has made significant strides in the Asia Pacific region, focusing on expansion, product innovation, and health certifications to solidify its position as a leading modern tea culture brand [1][2]. Expansion and Market Presence - The company expanded its footprint in 2025, launching in Indonesia, the Philippines, and Vietnam, alongside established markets like Singapore, Malaysia, and Thailand, now operating over 7,338 tea houses globally [2][3]. - In Q3 2025, Chagee added 300 net new locations, with overseas gross merchandise value (GMV) increasing by 75.3% year-over-year to RMB 300.3 million [2]. Product Innovation and Cultural Integration - Chagee's localization strategy led to successful culturally-inspired product launches, such as the Orchid Biluochun Milk Tea for Singapore's SG60 celebrations [5]. - A collaboration with POP MART introduced the Green Grape Milk Tea, achieving high sales in Malaysia, with Singapore stores averaging over 500 cups daily during the campaign [6]. - The award-winning BO·YA Jasmine Green Milk Tea was recognized at the 2025 World Beverage Innovation Awards, showcasing the company's commitment to authentic cultural connections [7]. Health Certifications and Inclusivity - Chagee became the first freshly prepared beverage tea chain in Malaysia to earn the Healthier Dining Programme (HDP) logo, ensuring beverages meet strict nutrient criteria [8]. - The company received official Halal certification in Indonesia, reinforcing its commitment to serving diverse communities [9]. - The Signing Store in Singapore, operated by Deaf and hard-of-hearing baristas, represents Southeast Asia's first inclusive tea experience, with a second store opening in Vietnam [10]. Community Engagement and Heritage - The launch of CHAGEE Pagoda House in Singapore's Chinatown blends heritage design with community spaces, featuring exclusive merchandise and cultural workshops [12]. - The company's registered membership reached 222 million globally, reflecting a 36.7% year-over-year growth, with a low store closure rate of 0.3% for three consecutive quarters [13]. Recognition and Awards - Chagee received accolades such as Malaysia's HR Asia Best Companies to Work for in Asia 2025 award and Singapore's NS Mark Gold status, highlighting its commitment to being an exceptional employer [14].

Summary of Key Points from the Conference Call on China's Freshly Made Drink (FMD) Market Industry Overview - The conference focused on the freshly made drink (FMD) market in China, particularly milk tea shops in Zhejiang and Shanghai provinces [1][2]. Core Insights 1. **Subsidy Retreat and UE Pressure** - The expert anticipates a retreat in subsidies over the mid to long term, with ongoing pressure on unit economics (UE) due to increased delivery mix and single-cup orders. The net GMV to gross GMV ratio has decreased to approximately 60-65% from 70-75% prior to the subsidy campaign [1][10]. 2. **Store Expansion Opportunities** - Emerging small brands face challenges in scaling to over 10,000 stores amid intense competition. However, niche brands with strong momentum may achieve profitability within 6-8 months. Established brands may find further penetration in saturated regions like Zhejiang difficult, but opportunities exist for brands like Guming in Northern China and Shanghai, Mixue due to its value-for-money position, and Auntea Jenny with reduced capital expenditure requirements [1][12]. 3. **Chagee's Adjustments** - Chagee's franchisees may see improved profitability if new franchise policies are implemented. The expert noted buybacks of underperforming stores at low prices, which some franchisees have refused. High-profile marketing campaigns have been more effective than new product launches in driving short-term sales [1][13]. 4. **Sales Performance and Delivery Mix** - Sales per store for brands involved in subsidy campaigns have declined by 20-30% in December compared to August. The delivery mix has increased from 60-70% to 75-85%, while the dine-in mix has not recovered significantly. Single-cup orders have risen to 50-60% of total orders, increasing operational workload [12][10]. 5. **Profitability Challenges** - Store profitability is under pressure, with Chapanda's monthly profit dropping from approximately RMB 30,000-80,000 to around RMB 30,000 during peak seasons or breakeven in off-seasons. Regional small brands have experienced even greater declines [12][10]. 6. **Competitive Landscape** - The expert highlighted that established brands face limited opportunities for further penetration in saturated markets. However, brands like Mixue and Guming are recognized as supply-chain leaders with strong quality control and high in-house production ratios [12][11]. Additional Insights - **Coffee Contribution** - Coffee contributes about 15% to total sales in FMD stores, with pricing power challenged by competition from specialist chains. Its primary benefit is smoothing intraday sales rather than serving as a significant profit driver [14]. - **Price Target Risks for Guming and Mixue** - Guming Holdings Ltd. has a 12-month target price of HK$32.0, with risks including store network management and intensified competition. Mixue Group has a target price of HK$579, with similar risks [15][16]. This summary encapsulates the key points discussed during the conference call, providing insights into the current state and future outlook of the FMD market in China.

Summary of Cha Ji Company Conference Call Company Overview - **Company**: Cha Ji Company - **Industry**: Tea and Beverage Key Financial Metrics - Total net revenue for Q3 2025 decreased by 9.4% year-over-year to **32.083 billion RMB** [2] - Non-GAAP net profit margin was **15.7%**, indicating profitability [2] - Global tea house network expanded to **7,338 locations**, with **300 new openings** including **54 overseas** [5] - Overseas market GMV grew by **75.3%** to **300.3 million RMB** [2] - Total GMV in Greater China decreased by **6.2%** to **7,629.2 million RMB** [5] - Average monthly GMV per tea house was **378,506 RMB** [5] - Total registered members reached **222 million**, a **36.7%** increase year-over-year [7] Strategic Initiatives - **High-Quality Development Strategy**: Focused on four dimensions: brand, product, experience, and channel [3] - Brand: Creating value through tea culture and expanding user base [3] - Product: Prioritizing product excellence and upgrading raw materials [3] - Experience: Creating engaging content and emotional connections [3] - Channel: Emphasizing store quality and sustainable growth [3] Product Innovation - Launched low-caffeine Jasmine Green Tea Latte and Bo Ya Jasmine Green Milk Tea, the latter winning the **World Beverage Innovation Award** [2][6] - PG Oolong Milk Tea performed well in the Asia-Pacific region [6] Membership and Franchise Network - Membership ecosystem showed strong growth with a **1.5 million** increase in members quarter-over-quarter [7] - Franchise network stability reflected by a low store closure rate of **0.3%** for three consecutive quarters [7] Future Growth Expectations - Short-term same-store sales growth expected to face pressure, but long-term outlook remains optimistic [8] - Continued focus on product innovation and brand investment, alongside operational efficiency improvements [8] - Board approved a special cash dividend of **92 cents per share**, totaling approximately **$177 million**, to be paid on December 15, 2025 [8] Brand and Market Expansion - Upgrading brand experience through T House and specialized tea culture theme stores [9] - Successful overseas market expansion into the Philippines and Vietnam, with over **200 stores** in Malaysia [4][14] - Localized products and marketing strategies have shown success in Southeast Asia [15] Channel Strategy - Strong channel strategy with **300 new store openings** this quarter [13] - Highlight stores like Hong Kong Super Tea Restaurant and pop-up stores during the Shanghai Master Competition to enhance brand visibility [13] Product Quality and Consumer Experience - Implementing a **4.0 upgrade** for product quality, including strict standards and improved core materials [10] - Expanding product categories and enhancing customer experience through new consumption scenarios [11] - Optimizing membership system to increase member engagement and repeat purchase rates [12]

Investment Rating - The report maintains an OUTPERFORM rating for Chagee Holdings, with a current price of US$15.90 and a target price of US$19.10, indicating a potential upside of approximately 20% [2][6]. Core Insights - The company is experiencing short-term pressure in the domestic market, with a revenue decline of 9% year-on-year in Q3, while overseas growth is gaining momentum, particularly with a 75% increase in overseas GMV [3][4][15]. - The company plans to implement a high-quality development strategy in 2026, focusing on expanding operating hours and enhancing profitability despite anticipated pressures from the direct sales business [5][6][15]. Financial Performance Summary - Revenue for 2024 is projected at RMB 12.4 billion, with a growth rate of 167% year-on-year, followed by RMB 13.3 billion in 2025, representing a 7% increase [11][15]. - The adjusted net profit for 2025 is estimated at RMB 2.22 billion, down 12% from the previous year, with a net profit margin of 16.7% [11][15]. - The gross profit margin is expected to improve to 53.7% in 2025, up from 49.6% in 2024, driven by an increase in the proportion of revenue from company-owned stores [5][11]. Market and Operational Insights - The company opened 246 new stores in Q3, with a total of 7,076 stores, reflecting a 24% year-on-year increase in store count [4][5]. - The average monthly GMV per store in Greater China decreased by 28% year-on-year to RMB 379,000, while overseas stores reported an average monthly GMV of RMB 426,000, down 6% year-on-year [4][13]. - The company has entered new markets, including Vietnam and the Philippines, expanding its international footprint [4][5].

Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies [1][2]. Company Summaries - Chagee Holdings Limited (CHA), a teahouse franchise company, has seen its current year earnings estimate revised downward by 18.5% over the last 60 days [1]. - Climb Global Solutions, Inc. (CLMB), an IT distribution and solutions provider, has experienced a 7.6% downward revision in its current year earnings estimate over the past 60 days [1]. - Gladstone Capital Corporation (GLAD), a business development company, has had its current year earnings estimate revised downward by 5.2% in the last 60 days [2].