Investment Rating - The report initiates coverage with a "Buy" rating for CHAGEE [4][12][15] Core Views - CHAGEE is positioned as the largest premium freshly-made tea drinks brand in China, with a mission to inherit and innovate Chinese tea culture [7][31] - The company has achieved a remarkable terminal retail sales growth of 2387% from 2022 to 2024, making it the fastest-growing freshly-made tea brand with over 1,000 stores in China [7][30] - CHAGEE focuses on brand building and aims to create a global modern tea brand, differentiating itself from competitors by concentrating on tea products rather than diversifying into other beverage categories [8][9] Financial Data and Earnings Forecast - Revenue projections for 2023 to 2027 are as follows: 46.4 billion RMB in 2023, 124.06 billion RMB in 2024, 150.51 billion RMB in 2025, 180.10 billion RMB in 2026, and 210.82 billion RMB in 2027, with year-on-year growth rates of 844%, 167%, 21%, 20%, and 17% respectively [6][15] - Net profit forecasts for the same period are: 7.25 billion RMB in 2023, 23.84 billion RMB in 2024, 28.05 billion RMB in 2025, 33.36 billion RMB in 2026, and 39.34 billion RMB in 2027, with growth rates of 229%, 18%, 19%, and 18% respectively [6][15] - The company is expected to open 1,200 new stores in 2025, with a total store count of 7,640, representing a 19% increase [11][15] Market Position and Competitive Advantage - CHAGEE holds a market share of approximately 20.3% in the premium freshly-made tea segment, ranking first among high-end tea brands in China [30] - The company has pioneered the "whole-leaf milk tea" category, which has become a significant contributor to its sales, accounting for 91% of its GMV in 2024 [9][44] - CHAGEE's innovative "tea tech" enhances standardization and efficiency, allowing for rapid service and consistent product quality across its stores [10][11] Expansion Strategy - The company plans to accelerate overseas store openings, with a focus on markets like Malaysia and the United States, while maintaining a strong domestic presence [11][17] - CHAGEE employs a franchise model for most of its stores, with 97% of its domestic stores being franchises, which enhances its risk resilience [38][41] Product Innovation - CHAGEE emphasizes health-conscious product offerings, eliminating artificial additives and introducing features like a "health calculator" for transparency [57][58] - The company continuously expands its product line, recently launching new items such as "Tea Espresso" and "Tea Latte" to attract diverse consumer segments [9][63]

Core Insights - Chagee Holdings Limited, a premium tea drink brand from China, has filed for an IPO on NASDAQ, aiming to replicate the global success of coffee giants through a blend of technology and traditional tea culture [1][2] Group 1: Company Growth - Founded in 2017 in Yunnan, China, Chagee has rapidly expanded to 6,440 stores globally by the end of 2024, with 6,284 located in China, making it the largest high-end tea drink brand in the country [2][35] - The company's total sales (GMV) reached approximately RMB 29.5 billion in 2024, marking a staggering growth of over 22 times from RMB 12.9 billion in 2022 [2][35] - The majority of its stores (6271) operate under a franchise model, which has been pivotal for its rapid expansion [2] Group 2: Product Strategy - Chagee focuses on a simplified menu, with its signature tea latte series accounting for over 90% of sales, and three top-selling products representing 61% of sales in China [3] - The company employs patented extraction technology to enhance the flavor of its tea, aiming to create a unique taste experience that transcends cultural differences [3] Group 3: Technological Innovation - Chagee positions "tea technology" as a core competitive advantage, utilizing smart brewing equipment that reduces the time to prepare each cup by 30% [4] - The company has achieved full digital integration across its operations, including beverage preparation, membership management, and supply chain coordination, leading to a 179% increase in average monthly sales per store to 25,000 cups in 2024 [4] Group 4: Global Expansion - The brand has established 156 overseas stores in markets such as Southeast Asia and the UK, with a 47% year-on-year increase in overseas sales in 2024 [5] - Chagee's vision includes making tea a global lifestyle choice, with plans to enhance its overseas supply chain network and establish regional centers in major cities in Europe and North America [5] Group 5: Market Challenges - As store density increases, the company is experiencing a normalization in same-store sales, indicating a competitive market environment [6] - Chagee is enhancing customer loyalty through a membership system, achieving a repurchase rate 1.8 times higher than the industry average [6] - The upcoming IPO will primarily fund store expansion, new product development, and digital system upgrades, with the company's ability to sustain long-term value under scrutiny as the tea drink market matures [6]

今天分享的是：【英文】霸王茶姬招股书（茶饮） 报告共计：266页 该文档是霸王茶姬（Chagee Holdings Limited）的招股书，主要介绍了公司业务、财务表现、市场地位及未来规划等核心内容， 以下是具体总结： 公司概况与发展历程 霸王茶姬成立于2017年，总部位于开曼群岛，通过中国及海外子公司开展业务，无可变利益实体结构。2023年5月，公司在开曼 群岛成立控股公司，同年通过一系列重组交易，实现对北京茶姬的控股。截至2024年底，公司在全球拥有6,440家门店，其中中 国6,284家，海外156家，是中国最大的高端现制茶饮品牌。 商业模式与核心优势 公司采用"加盟为主、直营为辅"的模式，截至2024年底，加盟店6,271家，直营店169家。通过集中采购、标准化供应链管理和数 字化运营提升效率，核心产品为茶拿铁，2022-2024年其贡献的GMV占比分别为79%、87%、91%。依托"茶科技"战略，公司自 主研发自动化制茶设备，实现产品标准化，并通过数字化系统管理供应链、门店运营及消费者关系，提升运营效率和消费者体 验。 财务表现与市场规模 2022-2024年，公司净收入分别为4.92亿元、46. ...

Core Points - The article emphasizes the significance of tea as a cultural symbol of China and highlights the importance of tea industry development and cultural exchange as recognized by General Secretary Xi Jinping [2][4][18] - It discusses Xi Jinping's personal experiences and stories related to tea, showcasing his connection with local communities and the tea culture during his tenure in Fujian [3][7][8][18] - The article outlines Xi Jinping's vision for the modernization of the tea industry, focusing on product structure optimization, brand strategy, and cultural development [14][18] Group 1: Cultural Significance of Tea - Tea is portrayed as a vital cultural element that embodies the values of humility, harmony, respect, and reverence in Chinese civilization [2][4] - The establishment of International Tea Day on May 21, 2020, by the United Nations is highlighted as a recognition of tea's global importance [2][4] Group 2: Xi Jinping's Engagement with Tea - Xi Jinping's personal anecdotes about tea, including his first experience with "lei tea" and interactions with local villagers, illustrate his deep connection to the tea culture [5][6][8] - His efforts in promoting tea culture and industry during his time in Fujian, where the province accounted for nearly 20% of China's total tea production, are noted [14][18] Group 3: Development of the Tea Industry - The article mentions Xi Jinping's initiatives to enhance the tea industry, including modernizing production methods and promoting ecological practices [18][19] - It emphasizes the role of tea in poverty alleviation and rural revitalization, with Xi Jinping encouraging local farmers to leverage tea for economic growth [18][19]

Group 1: Tea Culture - Tea is a cultural messenger that has traversed time, deeply embedded in Chinese civilization, from ancient practices to modern interpretations [3][4] - The inclusion of "Chinese traditional tea-making techniques and related customs" in the UNESCO Intangible Cultural Heritage list highlights tea's significant cultural impact globally [3] - Tea serves as a cultural bridge in international relations, promoting mutual understanding and respect through its rich traditions [3][4] Group 2: Tea Industry - The tea industry is a new engine for economic development and a key component of rural revitalization in China [5][6] - The "Three Tea" coordinated development approach is guiding the tea industry towards standardization, modernization, and scalability [5] - There is a focus on optimizing the industry structure and cultivating internationally influential regional brands and enterprises [5][6] Group 3: Tea Technology - Tea technology is driving the evolution of the tea industry, integrating traditional practices with modern innovations [7][8] - Smart tea gardens and digital production lines exemplify the technological advancements enhancing tea production efficiency and quality [7] - The development of tea technology aims to provide consumers with high-quality tea products and innovative experiences [7][8] Group 4: Three Tea Coordination - The "Three Tea" coordination promotes cultural exchange and cooperation globally, using tea as a medium for dialogue and understanding [9][10] - The initiative contributes to sustainable agricultural development and economic prosperity, showcasing Chinese wisdom and solutions [9][10] - The company aims to deepen the "Three Tea" practice and enhance international exchanges, ensuring the global presence of Chinese tea culture [9][10]