CHA · Chagee Holdings Limited American Depositary Shares

Chagee Holdings reported a challenging fourth quarter of 2025, with net revenues declining 10.8% year-over-year to RMB2,974.5 million. The company swung to an operating loss of RMB35.5 million from an operating income of RMB642.5 million in the same quarter of 2024. Management attributed the operating loss primarily to organizational structure optimization, business model transition costs, and share-based compensation expenses. General and administrative expenses surged 89.0% year-over-year to RMB635.6 million, reflecting investments in global corporate infrastructure and restructuring costs, including RMB50.9 million in share-based compensation. The revenue decline was concentrated in the franchised teahouse segment, which saw revenues fall to RMB2,434.9 million from RMB3,095.9 million, driven by the timing of new product launches and competitive dynamics in online delivery platforms. Conversely, company-owned teahouse revenues more than doubled, increasing 126.2% to RMB539.6 million, as the company expanded its company-owned network by 446 teahouses. The company maintained a strong liquidity position with RMB7,892.4 million in cash, restricted cash, and time deposits as of December 31, 2025, up significantly from RMB4,868.7 million a year prior. For the full year 2025, net revenues grew 4.0% to RMB12.91 billion, while GAAP net income was RMB1,186.3 million. Same store GMV growth in Greater China declined 25.5% for the quarter, indicating ongoing pressure on mature store performance.