Q2 2025 Chagee Holdings Ltd Earnings Call Transcript
Key Points
- Chagee Holdings Ltd (CHA) achieved a 10.2% year-over-year increase in revenue, reaching RMB3.3 billion in the second quarter of 2025.
- The company reported a 15.5% year-over-year growth in GMV, indicating strong sales momentum.
- Chagee's overseas markets demonstrated significant growth, with GMV increasing by 77.4% year-over-year.
- The company successfully expanded its international presence, adding 52 new stores in the first half of 2025, bringing the total to 208 stores.
- Chagee's gross margin improved to 53.9%, up from 48.4% in the same quarter last year, driven by economies of scale and procurement optimization.
- Intensified competition on delivery platforms in China created headwinds, impacting near-term performance.
- The company's non-GAAP net income saw only a marginal increase of 0.1% year-over-year, indicating pressure on profitability.
- Share-based compensation expenses significantly increased, affecting operating expenses and overall profitability.
- Same-store sales growth (SSSG) softened due to a high base from the previous year and intensified price competition.
- Investments in international market expansion are currently affecting short-term profitability, as these markets are still ramping up.
Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Chagee's second-quarter 2025 earnings conference call. (Operator Instructions) Please note that today's event is being recorded. With that, I will now turn the call over to the first speaker today, Ms. Alicia Guo, Investor Relations Director of the company.
Please go ahead, ma'am.
Thank you. Hello, everyone, and welcome to Chagee's second-quarter 2025 earnings call. With us today are Mr. Junjie Zhang, our CEO; and Mr. Eric Huang, our CFO. The company's financial and operating results were released by the news were earlier today and are currently available online.
Before we continue, I refer you to our safe harbor statement in the earnings press release. which applies to this call. Any forward-looking statements that we make on this call are based on assumptions as of today, and Chagee does not undertake any obligations to update these statements. Also, this call includes discussions of
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