Chagee Holdings Limited American Depositary Shares

First-quarter 2026 revenue was RMB 3,546 million, up 4.5% year over year and 19.2% sequentially. Gross margin was 55.6%, versus 53.1% a year ago. GAAP net income was RMB 447.7 million; non-GAAP net income was RMB 506.7 million, with non-GAAP net margin of 14.3% and basic/diluted non-GAAP EPS of RMB 2.67/RMB 2.65. GMV was RMB 7,917.8 million, up 8.1% sequentially; overseas GMV was RMB 426.4 million, up 139% year over year and 14.6% sequentially. Looking ahead, management did not provide formal next-quarter or full-year financial guidance in the call; instead, it said it would keep executing its strategy, continue quality-led teahouse expansion overseas, and repurchase shares up to USD 150 million over 12 months depending on market conditions and valuation.

The CEO said 2026 is about sharper execution, better consumer focus, and long-term value creation. He emphasized that the company is prioritizing every consumer touch point, improving organizational efficiency, and keeping product, service, environment, experience, and value proposition at the center of the strategy. He also described the current share price as significantly undervalued and said the buyback reflects confidence in the company’s long-term prospects.

The CFO highlighted that financial performance improved alongside tighter operating discipline. He cited RMB 7,917.8 million in GMV, RMB 3,546 million in revenue, 55.6% gross margin, and RMB 506.7 million in non-GAAP net income, along with sequential margin improvement. He also noted non-GAAP G&A fell to 11.6% of revenue and non-GAAP sales and marketing declined to 8.6%, while cash, restricted cash, and time deposits ended at RMB 7,146.3 million, giving the company flexibility for expansion and shareholder returns.

Analysts focused on what drove the sequential improvement in same-store GMV, how the new GMV-based franchising model affects profitability, and the rationale for the USD 150 million repurchase program. Management said same-store trends improved due to the Qian Wen campaign, new product launches, and better execution, with overseas same-store declines narrowing as localized products gained traction. On the new revenue-sharing model, management said it changes the revenue mix but does not hurt profitability, and that the higher gross margin was supported mainly by the higher mix of company-owned teahouses. On capital returns, management said buybacks will be paced based on market conditions and valuation, while preserving balance sheet health.