Q3 2025 Chagee Holdings Ltd Earnings Call Transcript
Key Points
- Chagee Holdings Ltd (CHA) expanded its global teahouse network to 7,338 stores, with a net addition of 300 teahouses in the third quarter.
- Overseas expansion accelerated with 54 net new teahouses, successfully entering new markets like the Philippines and Vietnam.
- Product innovation continued to drive momentum, with new offerings like the low caffeine Jasmine Green Tea Latte becoming a top seller.
- The company achieved a robust member ecosystem, with total registered members reaching 222 million, a 36.7% increase year over year.
- Chagee Holdings Ltd (CHA) maintained a low store closure rate of 0.3% for three consecutive quarters, indicating strong franchisee stability.
- Total net revenue decreased by 9.4% year over year and 3.7% sequentially, reflecting challenges in the macro environment.
- Domestic and overseas stores experienced a decline in GMV by 27.9% and 23.4%, respectively, due to intensified competition.
- The average GMV for teahouses in Greater China declined year over year, impacted by a high base last year and delivery platform competition.
- Operating costs for company-owned teahouses increased significantly, up 94.7% from a year ago, impacting overall profitability.
- General and administrative expenses rose by 59.7% year over year, driven by an expanded workforce and additional office facilities.
Good morning, and good evening, ladies, and gentlemen. Thank you for standing by, and welcome to Chagee's third-quarter 2025 earnings conference call. (Operator Instructions) Please note that today's event is being recorded. With that, I'll 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 third-quarter 2025 earnings call. With us today are Mr. Junjie Zhang, our CEO; and Mr. Aaron Huang, our CFO. The company's financial and operating results were released by the Newswire 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 obligation to update these statements. Also, this call includes discussions of certain non-GAAP
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