Chagee Expands to 7,531 Teahouses, Q1 Revenues Up 4.5%
CHA•Chagee expanded its teahouse network by 12.7% to 7,531 outlets, generating RMB7,917.8 million in Q1 GMV with overseas GMV surging 139% to RMB426.4 million. Net revenues rose 4.5% to RMB3,546.0 million while operating income fell to RMB547.2 million and GAAP net income declined to RMB447.7 million.
1. Network Expansion
As of March 31, 2026, Chagee operated 7,531 teahouses, a 12.7% increase year-over-year, with overseas GMV reaching RMB426.4 million, up 139.0% from prior year, while Greater China GMV was RMB7,491.4 million.
2. Q1 Financial Results
First quarter net revenues rose 4.5% to RMB3,546.0 million, operating income declined to RMB547.2 million from RMB820.8 million, and GAAP net income fell to RMB447.7 million versus RMB677.3 million a year earlier.
3. Segment Revenue Breakdown
Franchised teahouses generated RMB2,743.9 million, accounting for 77.4% of total revenues but down from RMB3,149.9 million, while company-owned teahouse revenues jumped 230.4% to RMB802.1 million driven by 599 new outlets.
4. Cost Management Initiatives
Total operating expenses reached RMB2,998.8 million; cost of materials and logistics decreased 1.0% to RMB1,574.5 million through supply chain efficiency, while sales and marketing expenses represented 8.6% of revenues and G&A rose 30.9%.
