Core Viewpoint Chagee Holdings Limited reported a decline in net revenues and net income for the third quarter of 2025 compared to the same period in 2024, primarily due to decreased sales volume in the Greater China market amid intensified competition. However, the company continues to expand its teahouse network and has authorized a special dividend distribution to shareholders. Financial Highlights - Total net revenues for Q3 2025 were RMB3,208.3 million (US$450.7 million), down from RMB3,541.2 million in Q3 2024, representing a decrease of 9.4% [4] - Operating income was RMB454.4 million (US$63.8 million), with an operating margin of 14.2%, compared to RMB794.3 million and a margin of 22.4% in Q3 2024 [4][7] - GAAP net income decreased to RMB397.9 million (US$55.9 million) from RMB646.6 million in Q3 2024, resulting in a net income margin of 12.4% [7] - Non-GAAP net income, adjusted for share-based compensation, was RMB502.8 million (US$70.6 million), down from RMB646.6 million in Q3 2024 [7][35] Operational Highlights - The number of teahouses increased to 7,338 as of September 30, 2025, a 25.9% increase from the previous year [6] - Total GMV for Q3 2025 was RMB7,929.5 million, down from RMB8,301.4 million in Q3 2024 [6] - Average monthly GMV per teahouse in Greater China was RMB378,506, a decline from RMB527,956 in the same quarter of 2024 [10] Revenue Breakdown - Net revenues from franchised teahouses were RMB2,811.6 million (US$394.9 million), down from RMB3,299.0 million in Q3 2024, accounting for 87.6% of total net revenues [4][6] - Net revenues from company-owned teahouses increased by 63.8% to RMB396.7 million (US$55.7 million) due to network expansion [4][6] Cost and Expenses - Total operating expenses were RMB2,753.9 million (US$386.8 million), slightly up from RMB2,747.0 million in Q3 2024 [5] - Cost of materials, storage, and logistics decreased by 16.1% to RMB1,481.8 million (US$208.1 million) [5] - General and administrative expenses rose by 59.7% to RMB517.4 million (US$72.7 million) due to increased operational scale and global expansion [11] Special Dividend - The board of directors authorized a special dividend distribution of approximately US$177 million, equating to US$0.92 per ordinary share, payable on or around December 15, 2025 [13][14]

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]