On May 30, CHAGEE (NASDAQ: CHA) released its first earnings report since going public. According to the report, for the first quarter of 2025 ending March 31, CHAGEE’s total GMV reached 8.23 billion CNY, a 38% increase year-on-year. Total net revenue reached 3.39 billion CNY, up 35.4% compared to the previous year, and net profit was 677 million CNY, an increase of 13.8%. The number of registered members on its mini-program surpassed 190 million.
(Source: CHAGEE 2025 Q1 Financial Report)
Additionally, the company’s overseas market performance was notable. As of March 31, CHAGEE’s total GMV from overseas markets reached 178 million CNY, an 85.3% year-on-year increase. The number of overseas stores grew by 13, bringing the total amount to 169, with 157 stores located in Malaysia, 10 in Singapore, and 2 in Thailand.
The expansion of overseas business is considered one of the new growth points for the tea beverage industry and a key development focus for CHAGEE. In 2018, the company established its overseas business department in its second year and chose Southeast Asia as the first step in its global expansion. In 2019, CHAGEE opened its first store in Malaysia, marking the beginning of its global journey. In the same year, the company expanded into the Singapore and Thailand markets. In August 2024, CHAGEE opened three stores in Singapore, with the first three days attracting more than 10,000 visitors. On April 11, 2025, CHAGEE opened its first flagship store in Jakarta, Indonesia, where more than 11,000 cups were sold within the first three days. In May, CHAGEE formed a strategic partnership with hotel giant Magma in Malaysia, with plans to open 300 new stores across the country over the next three years.
After securing a foothold in the Southeast Asian market, CHAGEE quickly turned its attention to mature markets in Europe and the Americas. In 2023, the brand began a two-year market research phase in the United States. In July 2024, it established a localized team and chose Los Angeles as the site for its first North American store. In April 2025, CHAGEE officially opened its first North American store at the popular Westfield Century City mall in Los Angeles. On the opening day, the store sold more than 5,000 cups.
The global expansion strategy helps CHAGEE reduce its reliance on any single market while creating new growth opportunities and effectively responding to market uncertainties. Although the overseas business, which is still in its growth phase, remains in a loss-making position, it has shown potential for consumer demand and profitability in certain markets. Huang Hongfei, the global CFO of CHAGEE, stated that, at this stage, the company is more focused on quality and key performance indicators rather than merely pursuing rapid expansion when opening new overseas stores.
In recent years, as new tea beverage companies gradually accumulate brand experience and supply chain capabilities, "Chinese tea" has gained recognition in global markets. However, the “going global” strategy places higher demands on a company's supply chain, organizational management, business model, and cultural adaptability. The local policy environment and the counteractions from local brands also present challenges for “going global” companies. Whether CHAGEE’s overseas business can continue to grow remains to be seen.
CHAGEE, founded in 2017, aims to present tea lovers with fresh-made quality oriental tea that is "refreshing, healthy, and low in calories and sugar". Its brand philosophy is “Connecting the world through tea”.