Chagee Announces Fourth Quarter and Full Year 2025 Unaudited Financial Results
SHANGHAI, March 31, 2026 (GLOBE NEWSWIRE) -- Chagee Holdings Limited (NASDAQ: CHA) (“Chagee” or the “Company”), a leading premium tea drinks brand serving healthy and delicious freshly-made tea drinks, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter and Full Year 2025 Operational Highlights 1
Fourth Quarter and Full Year 2025 Financial Highlights
Fourth Quarter 2025 Financial Results
Total net revenues were RMB2,974.5 million (US$425.3 million), compared to RMB3,334.4 million in the same quarter of 2024.
Total operating expenses were RMB3,010.0 million (US$430.4 million), compared to RMB2,691.9 million in the same quarter of 2024.
Net income was RMB33.9 million (US$4.9 million) in the fourth quarter of 2025, representing a net income margin of 1.1%, compared to RMB644.1 million, or a net income margin of 19.3%, in the same quarter of 2024. Net income for the period was supported by financial income from interest earned on the Company’s cash and investment balances and other income, primarily government grants, which helped offset continued investments in the business and supported profitability during the quarter.
Non-GAAP net income was RMB100.0 million (US$14.3 million) in the fourth quarter of 2025, representing a non-GAAP net income margin of 3.4%, compared to RMB644.1 million, or a non-GAAP net income margin of 19.3%, in the same quarter of 2024.
Basic and diluted net income per ordinary share were both RMB0.15 (US$0.02) in the fourth quarter of 2025, compared to RMB3.69 in the same quarter of 2024.
Non-GAAP basic net income per ordinary share was RMB0.50 (US$0.07) in the fourth quarter of 2025, compared to RMB3.69 in the same quarter of 2024. Non-GAAP diluted net income per ordinary share was RMB0.49 (US$0.07) in the fourth quarter of 2025, compared to RMB3.69 in the same quarter of 2024.
Cash and cash equivalents, restricted cash, and time deposits were RMB7,892.4 million (US$1,128.6 million) as of December 31, 2025, compared to RMB4,868.7 million as of December 31, 2024.
Key Operating Data
In response to the evolving consumption patterns and diversifying channels in China, the Company optimized its methodology for measuring active membership engagement, effective as of the quarter ended December 31, 2025. This revised approach expands tracking beyond the Company’s mobile mini program to encompass traceable member activity across other third-party online delivery and social networking platforms. Management believes this adjustment provides a more comprehensive assessment of user engagement across an expanding digital ecosystem.
Accordingly, the Company has updated its definition of “active members” to capture member accounts registered through any channel of the Company’s membership program, including the Company's mobile mini program and third-party platforms such as Taobao Instant Commerce and Meituan, that have placed at least one product order during a given period. This updated definition better reflects the Company’s omni-channel member engagement strategy and provides enhanced visibility into customer traffic and loyalty. Under the revised methodology, active members totaled approximately 44.7 million for the quarter ended December 31, 2025.
Key Definitions
Conference Call
The Company’s management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on Tuesday, March 31, 2026 (or 8:00 P.M. Hong Kong Time on the same day) to discuss the financial results. Details for the conference call are as follows:
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference call will be available at the Company’s investor relations website at investor.chagee.com.
About Chagee
Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks. Founded in 2017, Chagee has transformed traditional tea culture into a modern lifestyle experience, leveraging cutting-edge technology and innovative branding. With its commitment to quality, innovation, and cultural connection, Chagee continues to reshape the global tea industry.
Use of Non-GAAP Financial Measures
The Company considers non-GAAP net income, a non-GAAP financial measure, as a supplemental measure to review and assess the operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents this non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. The Company also believes that the use of this non-GAAP measure facilitates investors’ assessment of the operating performance.
This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using this non-GAAP financial measure is that it does not reflect all items of income and expense that affect the operations. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling this non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the performance. The Company encourages you to review the financial information in its entirety and not rely on a single financial measure.
The Company’s non-GAAP financial measure reflects adjustments for share-based compensation expense. The Company believes that the exclusion of share-based compensation expense is appropriate because it eliminates the impact of non-cash expenses that are based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies due to factors that are unrelated to their core operating performance and that can be outside of their control. Although the Company excludes share-based compensation expense from the non-GAAP measure, equity compensation has been, and will continue to be, an important part of future compensation strategy and a significant component of future expenses and may increase in future periods.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.9931 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2025.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Chagee may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Chagee’s beliefs and expectations, including its beliefs and expectations on overseas development, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Chagee’s growth strategies; its future business development, results of operations and financial condition; its ability to retain and attract its customers; its ability to expand into overseas markets as expected; its ability to maintain and enhance the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in China’s freshly-made tea drinks industry or China’s food and beverage sector in general; changes in its revenues and certain cost or expense items; the expected growth of China’s freshly-made tea drinks industry or China’s food and beverage sector in general; governmental policies and regulations relating to Chagee’s industry; and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in Chagee’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Chagee undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Chagee.IR@icrinc.com
Phone: +1 (212) 537-5825
Media Relations
Brad Burgess, SVP
ICR, LLC
Email: Chagee.PR@icrinc.com
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1 Please refer to the section “Key Definitions” for detailed definitions on certain terms used.
* Cost of materials, storage and logistics was previously reported separately as (i) cost of materials and (ii) storage and logistics costs. It consists primarily of costs for materials and ingredients used for resale or production, as well as costs incurred for inventory storage and related logistics activities. This reclassification has been applied retrospectively.
* The components of the Company’s share-based compensation expenses are as follows (all amounts in thousands):