In the food delivery war, Cha Ji is nowhere to be seen.
The "first stock of new tea drinks in the US stock market" has presented a report that exceeded market expectations.
On the evening of August 29, CHAGEE released its second - quarter financial report for the period ending June 30, 2025. During the reporting period, CHAGEE's total revenue reached 3.3319 billion yuan, a year - on - year increase of 10.2%. The adjusted net profit was 629.8 million yuan, with a corresponding net profit margin of 18.9%. The company's gross profit margin continued to rise to 53.9%.
Notably, in this quarter, CHAGEE's revenue performance in the overseas market was remarkable. The overseas GMV in the second quarter reached 253.2 million yuan, a year - on - year surge of 77.4%. The global store scale reached 7,038, and the number of registered members of the brand historically exceeded 200 million, with a net increase of 14.55 million in the quarter, a year - on - year increase of 42.7%.
Amid the global economic instability, the generally slowing growth rate and fierce competition in the domestic new tea drink industry, CHAGEE's second - quarter financial report figures fully demonstrate its resilience.
01. Don't Seek Volume by Sacrificing Price, Look Inward for Development
It is particularly noteworthy that at the analyst conference call after this financial report, Zhang Junjie, the founder, chairman, and global CEO of CHAGEE, made a statement about the second - quarter food delivery war.
Zhang Junjie firmly stated that price wars may attract consumer behavior in the short term, but in the long run, they do not conform to the path of quality life and high - quality development. In the face of price wars, CHAGEE adheres to three principles: resolutely refrain from blindly following and getting involved in price wars; adhere to the high - value brand strategy; and improve and optimize operational efficiency through technological innovation and refined operations.
It is a clear fact that in the "food delivery war" that has sparked extensive discussions, especially in the segments of milk tea and coffee, CHAGEE has been absent.
On the Beginning of Autumn this year, even the usually "aloof" Starbucks launched an activity of "minus 18 yuan when spending 18 yuan" on the platform. Some consumers told the media that many people around them had grabbed "free - of - charge" coupons for leading milk tea brands on various platforms, while CHAGEE only offered a "18.8 - yuan no - threshold discount" coupon.
At the performance meeting, Zhang Junjie said that the competitive situation driven by huge subsidies is not sustainable, and excessive focus on price competition may pose challenges to all aspects of the industrial chain, including merchant operations, service guarantee, and the healthy development of the platform.
To achieve sustainable development, CHAGEE has put more effort into product innovation and supply - chain improvement.
The innovation threshold in the new tea drink industry is relatively low. Once a brand successfully creates a popular product, it is easy for competitors to copy it. This is one of the reasons why the new tea drink industry has long been criticized for homogenization, but CHAGEE has always excelled in product innovation.
CHAGEE's Fresh - Brewed Series
"Milk tea is a product that has withstood long - term market tests and can be accepted by most users." Based on this product concept, "Boyajuexian", a milk tea full of tea fragrance and rich in taste, has become CHAGEE's iconic product, differentiating itself from the popular fruit - tea category in the new tea drink industry in the past decade.
At the performance meeting, Zhang Junjie said that in 2025, CHAGEE will turn its attention more to exploring the characteristic food and beverage and culture of different regions, and has successively launched region - specific or season - specific products.
In April this year, CHAGEE launched a limited - edition new product, "Wanxiangbiluo", in Jiangsu. In June, when lychees were in season, CHAGEE launched a summer new product, "Yiqi Hongchen", nationwide. Soon after, in July, it launched a new product, "Fenghe Quyuan", in Zhejiang.
In August, to celebrate its third anniversary in the Guangdong market, CHAGEE launched a region - specific "Red Tangerine" series of tea drinks. It also collaborated with young artist Gao Yishan and the intangible cultural heritage of the lion dance, deeply embedding the brand in the "joyful moments" of Guangdong consumers.
The growth of the domestic new tea drink market is currently tightening, and there are often numerous milk tea shops on one street, resulting in intense competition. For CHAGEE, the dual - differentiation combination of "product + culture" has laid the foundation for the company's continuous GMV growth. Tea drinks with regional characteristics are more likely to become consumers' "emotional anchors", which also conforms to the characteristic of "emotional consumption" in the current consumption environment.
In addition, the industry generally believes that CHAGEE's excellent gross profit performance in the second quarter also benefits from increasingly refined operations.
In this quarter, CHAGEE's costs for raw materials, warehousing, and logistics decreased by 1.5% year - on - year. Without participating in the food delivery war, CHAGEE effectively stabilized the repurchase rate of old users and increased new users.
During the reporting period, 73.9% of the orders on the mini - program came from registered customers who had placed orders twice or more. While maintaining the consistency of its pricing strategy, the company's share of food delivery GMV increased against the trend to 52%. As of the end of the second quarter, the number of CHAGEE's registered members exceeded 200 million, reaching 206.9 million, a net increase of 14.55 million from the previous quarter, a year - on - year increase of 42.7%.
02. Become the "National Drink" in Southeast Asia
In the context of the domestic milk tea market entering the stage of stock competition, going global has become a necessity for domestic tea drink brands.
In June this year, the official website of The Economist magazine published a report on Chinese brands, stating that Chinese domestic retail brands and products have emerged in the global consumer market like mushrooms after rain, thanks to innovation and imagination. In particular, it mentioned the development of CHAGEE in the overseas market.
Compared with other competitors, CHAGEE started its globalization process early and has a cautious layout.
In November 2017, CHAGEE's first store opened in Kunming, Yunnan, and quickly radiated across the country with the south - west market as its base. In the following year, CHAGEE established its overseas business department and opened its first overseas store in Malaysia in 2019. As of the end of June, CHAGEE had opened 208 overseas stores in Malaysia, Thailand, Singapore, etc. Moreover, the overseas market has gradually become an important engine driving the company's overall performance growth.
The financial report shows that in the first half of this year, the number of CHAGEE's overseas stores increased by 52. Specifically, in the second quarter, CHAGEE successfully entered the Indonesian market and opened eight stores. After the opening of its first store in North America in early May in Los Angeles, the second store in the United States has also started trial operation.
In the relatively mature Asia - Pacific market, CHAGEE's performance has always been outstanding.
It is reported that the cumulative sales volume of CHAGEE's store in Jakarta, Indonesia, exceeded 10,000 cups in the first three days of its opening, and it gained more than 5,000 registered users in the first week. Together with other new stores, the first batch of new stores in Indonesia attracted about 35,000 registered users during the opening period, with an average daily sales volume of more than 2,000 cups in April.
In the Thai market, after the official opening of CHAGEE's stores, the average daily sales volume increased by 54% compared with the trial - operation period, and the stores attracted about 15,000 registered users within three days of opening. According to public information, CHAGEE has also recently entered the Vietnamese and Philippine markets.
CHAGEE's Flash Mob Event in Indonesia
To some extent, CHAGEE has become the "national milk tea" for local consumers in Southeast Asia. Digging deeper, the reason may be that it respects local consumers more in terms of product innovation.
In April this year, CHAGEE launched "Grain - Fragrant Roasted Tea" in the Southeast Asian market, which became a phenomenon - level product in the Malaysian market and was sold out in major cities within two weeks of its launch. During the 60th National Day of Singapore, CHAGEE also launched a new product, Orchid Biluochun, in combination with Singapore's national flower, which was also very popular locally.
Actually, CHAGEE does more than just open stores overseas. It also delves into the local market and community, constantly seeking cooperation with excellent local partners.
Public information shows that in May, Malaysia's United Group issued an announcement stating that its wholly - owned subsidiary, Magma Chain Management, will establish a joint venture, Chagee Magma Private Limited, with CHAGEE. In July, CHAGEE's Thai company received an investment of more than 142 million Thai baht from Thailand's President Beverage Co., Ltd.
In addition to product innovation, CHAGEE also has a strategic vision in talent and team building in the overseas market.
Take the newly established North American management team as an example. CHAGEE has hired Emily Chang, who has held senior positions at McCann Worldgroup, Starbucks China, and InterContinental Hotels Group, as the Chief Commercial Officer for the North American region; and Aaron Harris, who has extensive experience in the food service industry and has worked at Dutch Bros Coffee and Popeye's Louisiana Kitchen, as the Chief Development Officer for the North American region.
This may mean that CHAGEE will have more layouts in the North American market.
03. The Confidence to Navigate Through Cycles
It is not difficult to find that whether in the domestic market or the overseas market, CHAGEE is always committed to spreading "tea", enabling consumers with different cultural backgrounds to feel the oriental charm contained in a cup of tea.
On the International Tea Day (May 21) this year, CHAGEE launched a co - branded "Boyajuexian" with the local intangible cultural heritage of the Songket weaving technique in Malaysia. Through strong cultural associations in product naming, packaging design, etc., it interpreted the inclusiveness of "tea" as a cultural communication medium.
For another example, on August 29, CHAGEE opened three stores in the Philippines. At the pre - opening media press conference, senior tea researcher Ryan David introduced different types of tea to the media and demonstrated the correct way to make tea. Some local media said that it felt more like attending a tea appreciation class than a store - opening event.
An interesting point is that CHAGEE's stock code on the NASDAQ is "CHA", the pinyin of "tea". From this perspective, CHAGEE has engraved the mission of spreading tea culture into the core of its corporate development. While spreading tea culture, CHAGEE also provides more inclusive employment opportunities for people with disabilities.
In June this year, CHAGEE opened a "Silent Store" at the National University of Singapore. It is reported that this store is composed of 16 deaf - mute employees and 1 hearing employee. On April 17, 2025, when CHAGEE was listed on the NASDAQ, an employee representative from the front - line, including a silent employee from Singapore, rang the bell at the listing ceremony.
In addition, CHAGEE also provides supplementary medical insurance, "CHA Baobao", for all full - time employees of its direct - operated stores, subsidiaries, and the group. It can be said that CHAGEE's care for employees is comparable to that of Fat Donglai.
There has always been a saying within CHAGEE: "Employees come first, customers second, and shareholders third." This is also the value chain recognized by the company - only when employees are well - treated can they provide good services, which will then attract customers to actively choose CHAGEE; the company's performance will improve accordingly, creating value for shareholders.
Also because of its care for employees, CHAGEE has introduced the "Professional Closing Staff" - that is, the company has implemented the "Night Cleaning Plan" internally. It entrusts an external supplier to send people to help close the store. The next day, the morning - shift employees only need to take photos for acceptance. This maximally saves the employees' time for cleaning the store after closing.
As of July 2025, 1,350 stores of CHAGEE in China have adopted the night - cleaning plan, accounting for about 1/5 of the country's total stores.
In terms of corporate culture, CHAGEE has maintained the simplicity of a startup. When new employees join the company, they always hear statements such as "no hierarchy, no bosses, no leaders" and "second - line supports the front - line". All headquarters employees are also required to regularly visit front - line stores to identify problems.
Since the Beginning of Autumn, CHAGEE has also launched the "First Cup of Milk Tea in Autumn" activity. However, CHAGEE gave this "first cup of milk tea" for free to sanitation workers, traffic police, food delivery riders, and couriers who work in high - temperature environments. On August 6, the day before the Beginning of Autumn, CHAGEE, together with its local subsidiaries, carried out a "High - Temperature Care Campaign" in 36 stores across the country, giving away tea drinks and heat - prevention packages for free to the "city guardians".
It is a clear fact that CHAGEE has grown from a small street shop in Yunnan to an international enterprise that continuously releases energy, has a global presence, and fulfills its social responsibilities.
When talking about the development plan for the second half of the year, at the phone conference, Zhang Junjie said that the company will comprehensively launch an upgrade plan for core raw materials in the second half of this year, covering all key raw material categories such as tea leaves, milk sources, and syrups.
It is believed that in the future, at the critical stage when the ready - to - drink tea industry is moving from "expansion" to "intensive cultivation", CHAGEE will continuously verify its sustainability, continuously release the value of its membership ecosystem, and achieve broader development space with a steady and cautious pace.
The goal of becoming the "Oriental Starbucks" may not be far away.