CHABAIDAO (02555) has recently scaled up the installation of fully automatic coffee machines in its stores and launched freshly ground coffee products, achieving notable synergy between tea and coffee offerings. Stores that have introduced coffee have seen significant sales growth, with some locations now selling over 100 cups of coffee per day on average. This has not only maintained strong growth momentum but also substantially improved sales performance during breakfast and afternoon tea periods, while effectively boosting the sales of the brand’s original tea beverages. Management expressed optimism regarding the development of its coffee business, citing advantages such as its presence in high-tier cities, a nationwide supply chain network, and the complementary nature of tea and coffee products, including shared ingredient usage. The company plans to steadily advance its coffee operations and expects to extend coverage to 2,000 stores by the end of 2026, with coffee sales projected to account for approximately 15% of total beverage volume in participating outlets. Coffee products are currently available in CHABAIDAO stores across cities including Guangzhou, Shenzhen, Shanghai, Chengdu, and Beijing.