First Quarter 2026 Operational Highlights1
As of March 31, 2026, there were 7,531 teahouses within the Company's teahouse network in Greater China and overseas, representing a 12.7% increase in the number of teahouses as of March 31, 2025.
Total GMV generated in the first quarter of 2026 was RMB7,917.8 million. Geographically, total GMV generated in overseas markets was RMB426.4 million in the first quarter of 2026, representing a 139.0% year-over-year increase; total GMV generated in Greater China market was RMB7,491.4 million, compared to RMB8,048.4 million in the same quarter of 2025.
Average monthly GMV per teahouse in Greater China was RMB356,080 in the first quarter of 2026, representing a 5.5% increase from RMB337,358 in the fourth quarter of 2025.
Chagee had 50.0 million active members in the first quarter of 2026, representing an 11.7% increase from the fourth quarter of 2025.
First Quarter 2026 Financial Highlights
Net revenues were RMB3,546.0 million (US$514.1 million), compared to RMB3,392.7 million in the same quarter of 2025.
Operating income in the first quarter of 2026 was RMB547.2 million (US$79.3 million), compared to RMB820.8 million in the same quarter of 2025.
GAAP net income was RMB447.7 million (US$64.9 million), compared to RMB677.3 million in the same quarter of 2025.
Non-GAAP net income, which adjusts for share-based compensation expenses in the amount of RMB59.0 million, was RMB506.7 million (US$73.5 million), compared to RMB677.3 million in the same quarter of 2025.
First Quarter 2026 Financial Results
Total net revenues were RMB3,546.0 million (US$514.1 million), compared to RMB3,392.7 million in the same quarter of 2025.
Net revenues from franchised teahouses in the first quarter of 2026 were RMB2,743.9 million (US$397.8 million), compared to RMB3,149.9 million in the same quarter of 2025. This was mainly attributable to a decrease in total GMV in Greater China resulting from the economic headwinds as well as intense industry competition. Net revenues from franchised teahouses represented 77.4% of the Company's total net revenues for the first quarter of 2026.
Net revenues from company-owned teahouses in the first quarter of 2026 were RMB802.1 million (US$116.3 million), representing an increase of 230.4% from RMB242.8 million in the same quarter of 2025. The increase was mainly attributable to the conversion in the Company's domestic teahouse composition. Net revenues from company-owned teahouses represented 22.6% of the Company's total net revenues for the first quarter of 2026.
Total operating expenses were RMB2,998.8 million (US$434.7 million), compared to RMB2,571.9 million in the same quarter of 2025.
Cost of materials, storage and logistics was RMB1,574.5 million (US$228.3 million), representing a decrease of 1.0% from RMB1,590.3 million in the same quarter of 2025. The decrease was mainly attributable to enhanced cost management initiatives implemented throughout the supply chain and improved pricing power.
Company-owned teahouse operating costs were RMB497.2 million (US$72.1 million), representing an increase of 216.6% from RMB157.0 million in the same quarter of 2025. The increase mainly resulted from the addition of 599 company-owned teahouses in both Greater China and overseas markets, which led to higher payroll, store rental, utilities, and other store operating expenses.
Other operating costs were RMB159.0 million (US$23.0 million), representing a decrease of 7.8% from RMB172.5 million in the same quarter of 2025. This was mainly due to a decrease of RMB20.4 million in payroll expenses, driven by organizational restructuring and headcount optimization. Other operating costs as a percentage of total net revenues were 4.5%, compared to 5.1% in the same quarter of 2025.
Sales and marketing expenses were RMB306.2 million (US$44.4 million), representing an increase of 2.3% from RMB299.3 million in the same quarter of 2025. This was mainly driven by an increase in advertising expenses associated with branding activities, new product launches, and related marketing campaigns, partially offset by lower payroll expenses resulting from streamlining the branding and marketing team. Sales and marketing expenses as a percentage of total net revenues were 8.6%, compared to 8.8% in the same quarter of 2025.
General and administrative expenses were RMB462.0 million (US$67.0 million), representing an increase of 30.9% from RMB352.8 million in the same quarter of 2025. The increase was primarily driven by increases of (i) RMB52.1 million in share-based compensation expenses for administration, research and development staff; and (ii) RMB38.6 million in payroll expenses (excluding share-based compensation expenses) and RMB22.7 million in rental, utilities, office and travelling expenses for administration, research and development staff, which were primarily associated with the Company's global business expansion. General and administrative expenses as a percentage of total net revenues were 13.0%, compared to 10.4% in the same quarter of 2025.
Net income was RMB447.7 million (US$64.9 million) in the first quarter of 2026, representing a net income margin of 12.6%, compared to RMB677.3 million, or a net income margin of 20.0%, in the same quarter of 2025.
Non-GAAP net income was RMB506.7 million (US$73.5 million) in the first quarter of 2026, representing a non-GAAP net income margin of 14.3%, compared to RMB677.3 million, or a non-GAAP net income margin of 20.0%, in the same quarter of 2025.
Basic net income per ordinary share was RMB2.36 (US$0.34) in the first quarter of 2026, compared to RMB3.92 in the same quarter of 2025. Diluted net income per ordinary share was RMB2.34 (US$0.34) in the first quarter of 2026, compared to RMB3.92 in the same quarter of 2025.
Non-GAAP basic net income per ordinary share was RMB2.67 (US$0.39) in the first quarter of 2026, compared to RMB3.92 in the same quarter of 2025. Non-GAAP diluted net income per ordinary share was RMB2.65 (US$0.38) in the first quarter of 2026, compared to RMB3.92 in the same quarter of 2025.
Cash and cash equivalents, restricted cash, and time deposits were RMB7,146.3 million (US$1,036.0 million) as of March 31, 2026, compared to RMB7,892.4 million as of December 31, 2025.
Key Operating Data
For the three months ended/ As of
Mar 31, 2025
Jun 30, 2025
Sep 30, 2025
Dec 31, 2025
Mar 31, 2026
Total teahouses
6,681
7,038
7,338
7,453
7,531
Franchised teahouses
6,490
6,799
6,971
6,838
6,741
Greater China market
6,362
6,666
6,836
6,700
6,603
Overseas markets
128
133
135
138
138
Company-owned teahouses
191
239
367
615
790
Greater China market
150
164
240
408
554
Overseas markets
41
75
127
207
236
Total GMV (RMB in million)
8,226.8
8,103.1
7,929.5
7,322.9
7,917.8
Greater China market
8,048.4
7,867.9
7,629.2
6,951.0
7,491.4
Overseas markets
178.4
235.2
300.3
371.9
426.4
Average monthly GMV per teahouse in Greater China (RMB)
431,973
404,352
378,506
337,358
356,080
Same store GMV growth
(18.9)%
(23.0)%
(27.8)%
(25.5)%
(16.0)%
Greater China market
(19.1)%
(23.1)%
(27.9)%
(25.5)%
(16.1)%
Overseas markets
(8.4)%
(18.1)%
(23.4)%
(25.5)%
(12.0)%
Share Repurchase ProgramOn May 28, 2026, the board of directors of the Company has authorized a share repurchase program under which the Company may repurchase up to US$150 million of its Class A ordinary shares in the form of American depositary shares ("ADSs") during a twelve-month period commencing on June 1, 2026.
The Company's proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission (the "SEC") Rule 10b-18 and/or Rule 10b5-1 requirements. The Company plans to fund repurchases from its existing cash balance.
Key Definitions
GMV (gross merchandise value) refers to gross merchandise value, a key operating metric that the Company's management uses to measure and evaluate teahouses' sales performance, which represents the sales value of product(s) in consumer orders (excluding unfulfilled, canceled or returned consumer orders, and including relevant value-added taxes) before discounts, if any, are applied, including shipping charges paid by consumers for orders placed on its mobile mini program, but excluding those charges paid by consumers for orders placed on other third-party online delivery platforms.
Average monthly GMV per teahouse in Greater China is calculated by dividing (i) the sum of GMV generated by the monthly fully operational teahouses in Greater China in each calendar month during the specific period by (ii) the sum of the total number of the monthly fully operational teahouses in Greater China in each calendar month during the corresponding period.
Same store GMV growth refers to the growth rate of GMV generated by same stores in Greater China and/or overseas during that specific period compared to GMV generated by these same stores during the corresponding period in the preceding year. Same stores are defined to be teahouses that (i) have been in operation for at least 13 months, and (ii) without material operational changes in both comparison periods.
Non-GAAP net income. Calculated by net income excluding share-based compensation expenses.
Non-GAAP basic and diluted net income per share. Calculated as non-GAAP net income attributable to the Company's ordinary shareholders divided by weighted average number of basic and diluted shares.
Conference Call
The Company's management team will hold a conference call at 9:00 P.M. U.S. Eastern Time on Thursday, May 28, 2026 (or 9:00 A.M. Hong Kong Time on Friday, May 29, 2026) to discuss the financial results. Details for the conference call are as follows:
Event Title:
Chagee Holdings Limited First Quarter 2026 Earnings Conference Call
Registration Link:
https://register-conf.media-server.com/register/BI80518008ff6f487ca918b727b9bdb672
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference call will be available at the Company's investor relations website at investor.chagee.com.
About Chagee
Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks. Founded in 2017, Chagee has transformed traditional tea culture into a modern lifestyle experience, leveraging cutting-edge technology and innovative branding. With its commitment to quality, innovation, and cultural connection, Chagee continues to reshape the global tea industry.
Use of Non-GAAP Financial Measures
The Company considers non-GAAP net income, a non-GAAP financial measure, as a supplemental measure to review and assess the operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents this non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. The Company also believes that the use of this non-GAAP measure facilitates investors' assessment of the operating performance.
This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using this non-GAAP financial measure is that it does not reflect all items of income and expense that affect the operations. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling this non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the performance. The Company encourages you to review the financial information in its entirety and not rely on a single financial measure.
The Company's non-GAAP financial measure reflects adjustments for share-based compensation expense. The Company believes that the exclusion of share-based compensation expense is appropriate because it eliminates the impact of non-cash expenses that are based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies due to factors that are unrelated to their core operating performance and that can be outside of their control. Although the Company excludes share-based compensation expense from the non-GAAP measure, equity compensation has been, and will continue to be, an important part of future compensation strategy and a significant component of future expenses and may increase in future periods.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made ...
