Chagee Holdings Ltd (NAS:CHA)

Q2 2026 Chagee Holdings Ltd Earnings Call Transcript

Aug 28, 2026 / 12:00 PM GMT

Release Date Price: $10.8 (+4.35%)

Transcript

Key Points

Positve

Chagee Holdings Ltd (CHA) reported a substantial improvement in GAAP net income margin, rising to 13.6% in Q2 2026 from 2.3% in the same period last year, driven by organizational efficiency and disciplined cost management.
Overseas expansion is a significant growth engine, with GMV reaching RMB504 million, up 18.2% sequentially and 114.3% year-over-year, including a successful entry into the South Korean market.
The company launched a record 17 new products in a single quarter, expanding beyond its core loose-leaf fresh milk tea into categories like special deals, lemon tea latte, and gelato, which have driven strong initial sales and new customer acquisition.
Same-store sales are showing signs of recovery, with July's low single-digit decline improving meaningfully from the first half and August expected to turn positive year-over-year.
Chagee Holdings Ltd (CHA) is actively returning capital to shareholders, having executed approximately $30 million of its $150 million share repurchase program and is exploring a more regular and sustainable shareholder return mechanism, including potential regular dividends.
Operational efficiency improved significantly, with non-GAAP G&A expense ratio declining to 9.1% from 13.2% year-over-year and non-GAAP sales and marketing expense ratio narrowing to 8.8% from 10.6%, reflecting a more disciplined approach to resource allocation.

Negative

Total revenue for Chagee Holdings Ltd (CHA) saw a sequential decline of 3.7% quarter-over-quarter, and total GMV was down 3.3% sequentially, reflecting a softer macro backdrop and more intense competition.
Greater China GMV decreased 4.5% sequentially, and average monthly GMV per tea house in the region declined to RMB338,259 from RMB356,080 in the first quarter.
The company acknowledged that the fresh milk tea category is becoming crowded, with the competitive landscape shifting from shared growth in an expanding market to competition over a fixed space, intensifying rivalry.
Management characterized 2026 as a year of adjustment and stabilization, explicitly stating that the core objective is not to pursue rapid expansion in scale, which may signal a period of slower growth.
The external environment saw volatility in the second quarter, and management noted that the old marketing playbook has lost effectiveness, requiring new and potentially costly ways to connect with consumers.
While profitability held, non-GAAP operating income margin slightly decreased to 16.1% in Q2 from 17.1% in Q1, indicating some pressure on operating leverage despite cost controls.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CHA.OQ - Chagee Holdings Ltd
Q2 2026 Chagee Holdings Ltd Earnings Call
Aug 28, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and good evening, ladies and gentlemen.

Thank you for standing by, and welcome to Chaji's second quarter 2026 earnings conference call.

We will be hosting a question-and-answer session after management's prepared remarks.

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.

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Unidentified_2 [2]
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Thank you. Hello, everyone, and welcome to Chaiji's

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