Chagee Holdings Limited (CHA.US) rose more than 7% on Thursday, closing at $9.87. The increase follows comments made by the company's founder, Chairman, and Global CEO Zhang Junjie during an earnings briefing on March 31. Zhang stated that the company's internal restructuring is now largely complete, with business operations and order returning to a stable state.
He noted that recent same-store sales data in the domestic market has shown a sequential improvement as the company moves into 2026. This trend has bolstered management's confidence in achieving stabilization in the first half of the year and a recovery in the second half. Zhang explained that 2023 and 2024 were periods of rapid expansion for the company, while 2025 marked a new phase for the bubble tea market. He acknowledged shortcomings, stating, "We did not focus enough on refining the ultimate consumer experience. During the internal adjustments in the second half of 2025, our organizational responsiveness slowed, and the pace of new product launches was temporarily paused, leading to a significant decline in performance. This was indeed the biggest challenge the company faced in 2025."
Financial reports indicate that Chagee achieved total GMV of 31.58 billion yuan in 2025, a year-on-year increase of 7.2%. Net revenue reached 12.91 billion yuan, up approximately 4% compared to the previous year. However, adjusted net profit was 1.91 billion yuan, representing a decline of over 20%. The number of global stores reached 7,453 by the end of 2025. The company reported over 44.7 million active members in the fourth quarter of 2025.
Comments