Chagee Holdings Limited (CHA) saw its stock surge 5.60% during Monday's intraday trading session, driven by its strategic expansion into Northeast China and robust Q3 financial performance.
The company recently established a wholly-owned subsidiary in Heilongjiang to oversee regional store expansion and supply chain coordination, aligning with its Q3 results showing 7,338 global stores and 222 million mini-program members. With 9.142 billion yuan in cash reserves and 11 consecutive quarters of profitability, Chagee is well-positioned for growth. Overseas GMV also grew 75.3% YoY, highlighting successful international expansion.
Analysts note the subsidiary marks a shift from store deployment to regional operations, enabling localized marketing and product strategies. Founder Zhang Junjie's plans for Version 4.0 menus and premium tea categories further bolster investor confidence in the company's differentiation strategy.
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