Chagee Holdings Ltd. Q1 FY2025 earnings call

• Store network expansion: By end of Q1 2025, had 6,512 stores in Greater China (net increase of 228 stores from previous quarter); overseas stores totaled 169, with 9 new in Malaysia and 4 in Singapore.
• Product innovation: Expanded lineup with 7 innovative offerings, including low-caffeine BOYA Tea Latte and seasonal limited products like Xing Shi Chun Shan and Meigui Cong Zhong.
• User ecosystem: Registered members in mobile mini-program grew to over 192 million, with 15 million new members in the quarter, and active members approaching 45 million.

Revenue for the first quarter of 2025 reached RMB3,392.7 million, up 35.4% year-over-year. Net revenue from franchisee tea house grew 31.8% to RMB3,149.9 million, representing 92.8% of total revenues. Net revenue from company-owned tea houses increased to RMB242.8 million, accounting for 7.2% of total revenues. Total GMV in the first quarter was RMB8,226.8 million, with GMV in Greater China market at RMB8,048.4 million (up 37.2% YOY) and overseas market at RMB178.4 million (up 85.3% YOY).

Will not be providing formal quarterly financial guidance at this time; focused on executing long-term growth strategies and delivering lasting value to shareholders, may consider providing guidance in the future as appropriate.

Q: Could you provide an update on your current overseas market expansion and development?

A: As of March 31st, 2025, overseas stores totaled 169, representing 2.5% of global network; overseas GMV reached RMB178 million, up 85.3% YOY. Highlighted growth potential in markets like Singapore (10 stores with average monthly GMV per store ~RMB1.8 million in Q1 '25) and recent openings in Indonesia and US.

Q: Could you provide more details on your 1Q same store sales growth trends?

A: SSSG was negative 18.9% in Q1 due to rapid store network expansion; transitioning from rapid market penetration to same-store sales growth strategy, focusing on new products, usage occasions, marketing events, and customer experience