Chagee Holdings Limited (CHA.US) released its second quarter 2025 financial results on the evening of August 29th. The report showed that as of June 30th, Chagee operated 7,038 stores globally during the second quarter.

The company achieved total GMV of 81.031 billion yuan in Q2, representing a 15.5% year-over-year increase. Net revenue reached 33.319 billion yuan, up 10.2% year-over-year, while adjusted net profit was 6.298 billion yuan, corresponding to an adjusted net profit margin of 18.9%. As of June 30th, registered users on Chagee's mini-program reached 206.9 million.

This quarter, Chagee's overseas operations demonstrated remarkable performance, with overseas GMV reaching 2.352 billion yuan, surging 77.4% year-over-year and growing 31.8% quarter-over-quarter, establishing international markets as an increasingly important growth engine. Starting in April, various internet platforms launched a "delivery war," but Chagee maintained its "value-first" strategy, refusing to compete solely on price.

**Overseas GMV Surges 77.4% YoY, Gradually Becoming Growth Engine**

The financial report revealed that overseas GMV reached 2.352 billion yuan this quarter, achieving double-digit growth both year-over-year and quarter-over-quarter: up 77.4% annually and 31.8% quarterly, gradually becoming one of the key drivers of the company's overall growth.

As of June 30th, Chagee operated 7,038 stores globally, including 208 overseas locations: 178 in Malaysia, 16 in Singapore, 8 in Indonesia, 5 in Thailand, and 1 in the United States. During the quarter, Chagee successfully entered the Indonesian market, opening 8 stores. Following the opening of its first North American store in Los Angeles in early May, the company's second U.S. location has also begun trial operations. In the first half of this year, Chagee achieved a net increase of 52 overseas stores.

In the relatively mature Asia-Pacific markets, Chagee's performance remained stable. On April 11th, Chagee successfully opened its first store in Jakarta, Indonesia's capital, officially entering the Indonesian market. This store achieved cumulative sales exceeding 10,000 cups in its first three days and attracted over 5,000 registered users in the first week. Combined with other new stores, Indonesia's first batch of new outlets attracted approximately 35,000 registered users during their opening period, with daily average sales exceeding 2,000 cups in April.

In Thailand, daily cup volume increased 54% after official opening compared to the trial period, attracting approximately 15,000 registered users within three days of opening. On May 11th, Chagee's first North American store officially opened in Los Angeles, selling over 5,000 cups on its opening day. According to public information, Chagee has recently also entered the Vietnamese and Philippine markets.

In overseas markets, Chagee has launched locally characteristic products and marketing innovations with significant results. In April, Chagee's Hojicha Genmai Milk Tea became a phenomenal product in Southeast Asian markets, particularly in Malaysia, where major cities sold out within two weeks of launch. In June, Chagee's Earl Grey series, launched in collaboration with the British Library, was widely welcomed and generated extensive social media engagement. Around Singapore's 60th National Day, Chagee also launched the Orchid Biluochun Milk Tea, incorporating Singapore's national flower.

Forward-thinking talent recruitment and team building represent another distinctive feature of Chagee's international expansion. In this financial report, Chagee announced its new North American management team: Emily Chang as Chief Business Officer for North America and Aaron Harris as Chief Development Officer for North America. Both have held important positions at multiple publicly listed companies.

Before joining Chagee, Emily Chang served as CEO of VML West, part of global advertising communications group WPP. Previously, she held roles as CEO of McCann Worldgroup China (NYSE: IPG), Chief Marketing Officer of Starbucks China, and Chief Business Officer of InterContinental Hotels Group. Aaron Harris brings deep restaurant industry experience. Prior to joining Chagee, he served as Senior Vice President of Development at Dutch Bros Coffee and previously held positions as Vice President of Development at Popeye's Louisiana Kitchen and Owner/Operator of AH Consulting.

**Maintaining "Value-First" Strategy as User Base Surpasses 200 Million**

In April this year, various internet platforms launched a "delivery war," but while Chagee did not actively participate, GMV and net revenue continued to grow steadily. The financial report shows total GMV reached 81.031 billion yuan in Q2, up 15.5% year-over-year, with net revenue of 33.319 billion yuan, up 10.2% year-over-year. Combining the first two quarters, cumulative adjusted net profit for the first half reached 13.1 billion yuan, up 6.8% year-over-year. These figures fully demonstrate the company's ability to maintain resilience amid challenges.

Product innovation and user operations drove performance growth. In Q2, Chagee's classic "Fresh Leaf Milk Tea" category continued launching new products, with new offerings "Yi Qi Hong Chen" and the returning "Xia Meng Mei Long" both achieving positive market reception. The low-caffeine series continued expanding, with "Low-Caffeine Flower Field Oolong" launching in Q2 following Q1's "Low-Caffeine Bo Ya Jue Xian." From April onward, regional markets including Zhejiang, Jiangsu, Guizhou, Sichuan, Tibet, and Guangdong launched different region-specific limited products, widely loved by local consumers.

Meanwhile, Chagee's membership ecosystem continued healthy development, providing solid support for company performance. The financial report shows that by the end of Q2, registered members surpassed 200 million, reaching 206.9 million people, a net quarterly increase of 14.55 million and 42.7% year-over-year growth. The company continues "making friends" with consumers, demonstrating professional user operation capabilities.

On May 21st, the sixth "International Tea Day," Chagee announced the beta launch of its new member benefits system CHAGEE TOWN, with the "Listening to Consumers" project simultaneously launching. Chagee has held offline exchange meetings in multiple locations nationwide.

Chagee consistently maintains its "value-first" strategy, continuously providing high-quality products and services to consumers. During Q2's "delivery war" launched by various internet platforms, the company refused to compete solely on price, instead seeking internal improvements through technological innovation and refined operations to enhance efficiency and reduce costs. This not only attracted new users but also effectively retained existing customers: in Q2, 73.9% of mini-program orders came from registered customers who had placed two or more orders, with the value-first approach earning recognition from "veteran tea friends."

These factors have brought Chagee sustained healthy net profit margins, with cost improvements as well. The financial report shows Q2 adjusted net profit of 6.298 billion yuan, corresponding to a net profit margin of 18.9%. Additionally, raw material, warehousing, and logistics costs decreased 1.5% year-over-year this quarter.