Recently, Chagee Holdings Limited released its second quarter 2025 financial results. The report showed total net revenue of RMB 3.332 billion for the quarter, up 10.2% year-over-year, while global GMV reached RMB 8.103 billion, representing a 15.5% year-over-year increase.

During the analyst conference call, Chagee founder, Chairman and Global CEO Zhang Junjie addressed the "delivery war," stating that Chinese companies are experiencing a developmental transition from "Made in China" to "Chinese Brands." He believes that while price wars may attract consumer behavior in the short term, they do not align with the path toward quality living and high-quality development in the long run. Facing price wars, Chagee Holdings Limited adheres to three principles: firmly refusing to blindly follow trends and engage in price wars; maintaining a high-value brand strategy; and improving operational efficiency through technological innovation and refined operations.

Zhang Junjie noted that from a sustainable development perspective, competition driven by massive subsidies lacks sustainability. Excessive focus on price competition may bring structural challenges to various segments of the industry chain, including merchant operations, service guarantees, and platform healthy development.

The meeting disclosed that the average monthly GMV per store in Greater China was RMB 404,350, with same-store GMV declining 23% year-over-year. Global CFO Huang Hongfei added that this decline stems from two main factors: first, the comparison is against exceptionally strong second quarter 2024 data; second, intensified price wars on delivery platforms have led to temporary customer diversion despite the company's choice not to participate in short-term discount activities, affecting sales performance.

While maintaining pricing strategy consistency, Chagee's delivery GMV proportion increased against the trend to 52%, with 73.9% of orders coming from repeat customers. By the end of the second quarter, Chagee's registered membership exceeded 200 million, reaching 206.9 million people, representing a quarter-over-quarter net increase of 14.55 million and a year-over-year growth of 42.7%.

Zhang Junjie stated that the company will fully launch its core ingredient upgrade plan in the second half of this year, covering all key ingredient categories including tea leaves, milk sources, and syrups.