Chagee reaps sweet Q1 gains buoyed by overseas biz

Chagee Holdings Ltd reported higher first-quarter revenue as rapid growth in overseas markets and an expanding store network helped offset weakness in domestic sales momentum.

The beverage chain operator said its revenue rose 4.7 percent to 3.55 billion yuan ($525 million) in the three months ended March 31, compared with 3.39 billion yuan a year earlier. Operating income fell 33.3 percent to 547.2 million yuan from 820.8 million yuan in the same period last year.

Chagee continues to expand its footprint, with 7,531 teahouses across China and overseas markets including 7,157 in China and 374 overseas as of March 31, up 12.7 percent from a year earlier. The growth reflects the company's push to strengthen its presence both domestically and internationally amid intensifying competition in the beverage sector.

Apart from its presence in Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam and the United States, the company entered the South Korean market in April.

"Our overseas teahouse network maintained a steady growth pace with operating performance in line with our expectations," said Yin Dengfeng, chief operating officer and director of Chagee.

Total gross merchandise value (GMV) generated during the quarter reached 7.92 billion yuan. Overseas markets emerged as a key growth engine, with GMV surging 139 percent year-over-year to 426.4 million yuan. In contrast, GMV in China declined to 7.49 billion yuan from 8.05 billion yuan a year earlier, highlighting increased competition in the company's core market.

Despite the decline in regional GMV, operating metrics in China showed signs of improvement. Average monthly GMV per teahouse climbed to 356,080 yuan during the quarter, a 5.5 percent increase from 337,358 yuan in the fourth quarter of 2025, suggesting stronger sales productivity at existing locations.

The company said the new product launches helped as there were 12 new products that debuted in the first quarter, contributing to sequential growth in both volume and GMV.

In the overseas market, the company launched locally tailored products in different markets, which have played a positive role in improving overall same-store performance. For example, its caramel oolong tea latte in Singapore captured an 18 percent cup share during the campaign period.

Chagee also continued to see growth in memberships. Active members reached 50 million during the quarter, up 11.7 percent from the previous quarter, underscoring the brand's growing customer base and loyalty.

The company's international expansion strategy is beginning to contribute meaningfully to growth. Overseas markets accounted for about 5.4 percent of total GMV during the quarter, compared with a much smaller share a year earlier.

On May 28, the board authorized a $150 million share repurchase program that commenced on Monday.

wangzhuoqiong@chinadaily.com.cn