Chagee Reports Strong Q2 Earnings Amid Overseas Expansion and Cost Controls
Chagee Holdings Limited (NASDAQ:CHA) reported second-quarter revenue of RMB 3.41 billion, a modest year-over-year increase of 2.5%. Despite slower growth in its core Greater China market—where GMV fell by 4.5% sequentially—the company achieved significant profitability gains with GAAP net income rising to RMB 464.8 million and non-GAAP net income at RMB 488.7 million, reflecting a strong operating margin of 13.6%. Overseas expansion was highlighted as a key growth driver, with international GMV surging by 114.3% year-over-year to RMB 504 million and the company entering South Korea during Q2. Chagee now operates in eight overseas markets, including Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam, the United States, and South Korea. The management emphasized cost controls and efficiency improvements as key contributors to profitability stability amid a softer macroeconomic environment. The company also launched 17 new products during Q2 and is focusing on membership engagement strategies.
Tickers: $CHA
Topics: cost control international expansion profitability tea industry