Chagee’s overseas growth contrasts with weaker Greater China market
Chagee Holdings posted triple-digit overseas GMV growth in the second quarter, but declining domestic sales and active members kept pressure on its core Greater China business.
Chagee Holdings reported overseas gross merchandise value rose 114.3% year on year to RMB504.0 million in the second quarter, according to results reported by Yahoo Finance. Growth was supported by the company’s launch in South Korea and operations across eight overseas markets.
The company’s Greater China business weakened during the period. Total GMV fell 3.3% sequentially to RMB7,660.3 million, while Greater China GMV declined 4.5%. Average monthly GMV per teahouse fell to RMB338,259 from RMB356,080 in the first quarter, and franchised teahouse revenue dropped 18.1%.
Active members decreased to 47.1 million from 50.0 million in the first quarter, although registered members reached 257 million as of 30 June. Same-store sales remained negative in July, falling by a low-single-digit percentage.
GAAP operating income rose 387.6% to RMB524.7 million. Chagee also reported 14 consecutive quarters of positive net income, while its non-GAAP net margin narrowed to 14.3% from 18.9% a year earlier.
The company had bought back approximately US$30 million of shares under a US$150 million authorisation as of 24 August. The results leave Chagee balancing rapid international expansion against weaker trading conditions and intensified competition in Greater China.
