Chagee Holdings Limited

What they do

Chagee operates a chain of teahouses selling freshly made tea beverages, primarily in China, with its principal executive offices in Shanghai. The company sells through company-operated teahouses and also operates a membership program spanning its mobile mini program and third-party platforms; it defines active members as registered member accounts that placed at least one product order in a given period. Its ADSs, each representing one Class A ordinary share, trade on the Nasdaq Global Select Market under the symbol CHA.

Revenue drivers

• Teahouse beverage sales — Revenue is generated primarily through sales of freshly made tea beverages at Chagee teahouses, measured by the company using metrics such as gross merchandise value (GMV), average monthly GMV per teahouse, and average cups sold per teahouse per month.
• Membership program orders — The company tracks active members, defined as member accounts registered through its mobile mini program or third-party platforms that placed at least one order in a period, indicating that member channels are a core source of transactions.
• Company-operated teahouse network — The filing uses operating metrics tied to monthly fully operational teahouses, indicating that store count and store-level productivity drive overall revenue scale; the excerpt does not disaggregate revenue by store type or by region.

Recent performance

For the fiscal year ended December 31, 2025, Chagee reported revenue of $1.85 billion, net income of $167.5 million, and diluted earnings per share of $0.88. Operating cash flow was $235.1 million for the year. As of December 31, 2025, the company reported total assets of $1.64 billion, total liabilities of $555.7 million, and shareholder equity of $1.05 billion, including $1.09 billion in cash and cash equivalents.

Strategy

The filing describes the company's operations and key performance indicators—active members, average monthly GMV per teahouse, and average cups sold per teahouse per month—which indicates management focuses on store-level productivity and membership engagement. The annual report includes forward-looking information, and its Item 4 (Information on the Company) and Item 5 (Operating and Financial Review) discuss the business and its prospects. Chagee's ADSs began trading on the Nasdaq Global Select Market in connection with its registration under Section 12(b). The excerpt provided does not disclose specific new-market entry plans, capital expenditure budgets, or store-opening targets.

Risks

• Reliance on China teahouse operations — The business is based in the People's Republic of China and revenue is concentrated in its teahouse network, exposing results to conditions in that market.
• Consumer discretionary demand for tea beverages — Chagee is classified in Retail-Eating & Drinking Places (SIC 5812), so revenue depends on consumer spending on freshly made beverages, which can be affected by changing tastes and competition.
• Store-level execution and growth metrics — The company's disclosed metrics—average monthly GMV per teahouse and average cups sold per teahouse per month—hinge on the performance of monthly fully operational teahouses, so weaker store productivity would weigh on results.
• Foreign private issuer reporting and Cayman incorporation — Chagee is a Cayman Islands company filing as a foreign private issuer on Form 20-F, and its ADSs represent Class A ordinary shares, which entails different disclosure and governance requirements than a U.S. domestic issuer.

Outlook

The provided excerpts include forward-looking information and a management discussion section, but do not disclose specific guidance figures or quantified targets. Management's disclosed focus is on operating metrics such as active members and average monthly GMV per teahouse, suggesting store productivity and membership remain the primary measures of performance.