Chagee Holdings Limited American Depositary SharesCHA
Mentioned
Impact on stocks 1
Consumer Discretionary
Chagee Holdings Limited American Depositary SharesChagee Q2 Profit Soars as Overseas Growth Offsets China Softness
Earnings
Chagee Holdings reported second-quarter revenue growth and sharply higher profitability, with total revenue rising 2.5% year over year to RMB 3.41 billion and GAAP net income reaching RMB 464.8 million, lifting the net margin to 13.6% from 2.3%. While Greater China GMV fell 4.5% sequentially, international GMV surged 18.2% sequentially and 114.3% year over year, and the company expanded to 7,639 tea houses across eight overseas markets, including a new entry into South Korea. Management is prioritizing stabilization and efficiency, expecting same-store sales to turn positive year over year in August, and has repurchased about $30 million of shares while evaluating regular dividends.