Chagee Holdings Limited, operating through its various subordinate entities, is engaged in the ownership, operation, and licensing of teahouse establishments bearing the ...
Chagee Holdings Limited is a consumer-facing food and beverage business focused on modernizing traditional tea culture through the CHAGEE brand. Since commencing operations in 2017, the company has grown a network of CHAGEE teahouses that can be owned and operated directly as well as expanded via licensing/franchise-like models (described as ...Chagee Holdings Limited is a consumer-facing food and beverage business focused on modernizing traditional tea culture through the CHAGEE brand. Since commencing operations in 2017, the company has grown a network of CHAGEE teahouses that can be owned and operated directly as well as expanded via licensing/franchise-like models (described as licensing of teahouse establishments bearing the distinctive CHAGEE brand). The company is headquartered in Shanghai, China, and is led by founder and CEO Junjie Zhang.
From a business perspective, Chagee’s model combines (1) customer-facing tea beverage retail and (2) an enabling supply-and-services layer that supports the brand network. Beyond selling finished tea drinks, Chagee also distributes or supplies the underlying components needed to produce those beverages at scale—such as tea-based beverage raw ingredients, packaging materials, and specialized teahouse equipment—along with other operational supplies. This supports consistency across locations, brand standards, and product quality. The company also leverages digital platforms to facilitate ordering, marketing, and customer engagement, aligning a traditional product category with modern lifestyle and commerce channels.
In terms of products and services, the core offering is “freshly made” tea drinks, offered through its teahouse operations. The upstream supply of ingredients, packaging, and equipment can be viewed as part of the bill-of-materials (BOM) and operating tooling of the business: tea leaves/tea bases and other beverage components drive variable product costs, while packaging and equipment relate to both unit economics (packaging per order) and fixed/ongoing store capability (equipment availability and refresh needs). Managing these inputs is typically crucial to maintaining gross margins and service speed in beverage operations.
Financially, the provided trailing metrics indicate a business with meaningful profitability and cash generation characteristics for its sector: gross profit margin (TTM) of ~0.44 and net profit margin (TTM) of ~0.072 are consistent with a branded, repeat-purchase driven beverage model where scale can support margin durability. Liquidity indicators in the provided data show relatively strong current liquidity (current ratio ~3.42) and low net debt relative to earnings capacity (net debt to EBITDA multiple shown as negative in the snapshot). Leverage appears modest (debt-to-equity ~0.17), which can be important for funding expansion without excessive financial risk.
Key people, as indicated in the supplied information, include Junjie Zhang (CEO/founder). For stakeholders, the company’s “wishes” and priorities are not explicitly stated in the provided data, but based on its business design, operational focus likely centers on (a) expanding brand reach, (b) maintaining quality and standardization across company-operated and licensed teahouses, (c) improving digital engagement and conversion, and (d) scaling supply chain capabilities to protect margins while growing unit economics.
Overall, Chagee represents a branded tea drinks operator with a vertically supportive ecosystem (ingredient/packaging/equipment supply) and a multi-channel growth pathway (owned/operated plus licensing), positioned in the Consumer Cyclical space under the Restaurants industry.
Founded
2017
Employees
4800
CEO
Junjie Zhang
Full Name
Chagee Holdings Limited American Depositary Shares
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$12.9B
+4.0%
-4.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.2B
-53.5%
+3.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+45.8%
+0.1%
-10.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+10.4%
-55.1%
-0.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+9.1%
-55.3%
+7.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.2B
-54.1%
+85.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.2%
-55.9%
+93.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
17.4%
-16.0%
-0.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.11x
+31.2%
-1.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Chagee's Second Quarter 2026 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.
Alicia Guo: Thank you. Hello, everyone, and welcome to Chagee's Second Quarter 2026 Earnings Call. With us today are Mr. Junjie Zhang, our CEO; Mr. Aiden Yin, our COO; 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 obligations to update these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release which contains a reconciliation of non-GAAP measures to GAAP measures. With that, I will turn the call to our CEO, Mr. Junjie Zhang. Please go ahead, sir.
Junjie Zhang: [Interpreted] Hello, everyone. Welcome to Chagee's Second Quarter 2026 Earnings Call. As we enter 2026, our strategy has stayed focused on the fundamentals of the business centered on doing well by the things our consumers truly care about. In the first quarter, we completed a systematic review of our organization, product and marketing road map, laying the foundation for high-quality growth. While the external environment saw some volatility in the second quarter, these changes have only reinforced our conviction. The ability to navigate cycles ultimately comes down to genuine consumer recognition. The more complex the market, the more important it is to return to the fundamentals. The more intense competition, the more important it is to perfect every consumer touch point. All of our work in the second quarter was built around this logic, not as reactive response, but as a more focused commitment to our proven path. The tea beverage industry is going through a structural change. On the supply side, the fresh milk tea category is now crowded with more players and the competitive landscape has shifted from shared growth in an expanding market to competition over a fixed base, raising the intensity of competition. On the demand side, shifting generational value require brands to find new ways of telling their story. The old playbook built on high-profile positioning and loud marketing has lost its effectiveness. What customers are looking for today, it is individual self-expression and a genuine sense of comfort. Brands need to become a gentle touch points that resonate with the individual, connecting through sincerity and responding to consumers with care. On the channel side, intensified …
