Core Insights - The high-end tea beverage company, Cha Ji Holdings (CHA.US), reported a 10.5% revenue growth in Q2, marking a significant expansion with the opening of its first store in Los Angeles [3][4]. Financial Performance - In Q2, the company's revenue reached 3.33 billion yuan (approximately 467 million USD), up from 3.02 billion yuan the previous year, reflecting a 10.2% increase [3]. - The Gross Merchandise Value (GMV) grew by 15.5% year-over-year, totaling 8.1 billion yuan [3]. - The adjusted net profit for the quarter was 630 million yuan, remaining roughly flat compared to the previous year, with a non-GAAP net profit margin decreasing from 20.8% to 18.9% [5]. Market Expansion - The total number of stores reached 7,038 by the end of June, a 40.9% increase from the previous year [3]. - Domestic stores increased from 4,881 to 6,830, while overseas locations nearly doubled from 115 to 208, with overseas GMV surging 77% to 235 million yuan [3][4]. Strategic Developments - The company appointed a former Starbucks China CMO as North America Chief Commercial Officer and hired experienced executives from Dutch Bros Coffee and Popeyes for North America Chief Development Officer [4]. - The founder emphasized ongoing strategic investments in overseas markets and the development of a global talent pipeline and operational framework [4]. Competitive Landscape - The company differentiates itself in the crowded Chinese high-end tea market by focusing on the quality of original leaf tea and traditional Chinese tea culture, contrasting with competitors that use modern ingredients like pearls and fruit slices [5]. - Membership numbers reached 206.9 million, a 42.7% year-over-year increase, indicating strong customer engagement despite competitive pressures [5].