CHAGEE posts weak Q4 as restructuring and expansion weigh on profits
Net profit for 2025 was 53.5% lower than the year before.
Chinese modern tea chain Chagee Holdings Limited (CHAGEE) posted a net income attributable to the company of $4.1m (RMB28.5m) for the three months ended 31 December 2025, sharply down from $95.5m (RMB659m) in the same period last year.
The group attributed the weak Q4 performance to higher general and administrative expenses, which rose 89% year-on-year. These costs included targeted organisational restructuring to support operations, ongoing investment in global corporate infrastructure to aid international expansion, and initiatives to optimise internal processes.
General and administrative expenses accounted for 21.4% of total net revenues, up from 10.1% in Q4 2024.
Total gross merchandise value (GMV) in Q4 2025 was $1.06b, with overseas GMV rising 84.6% year-on-year to $53.9b. GMV in Greater China declined to $1b from $1.15 billion in the same quarter of 2024. For the full year, GMV grew 7.2% to $4.58b, reflecting the company’s ongoing expansion.
Operating margin fell to 10.4% in 2025 from 23.3% in 2024. Full-year net income attributable to the company was $167.5m (RMB1.7b), down 53.5% from $364.7m (RMB2.51b) in 2024.
CHAGEE is a NASDAQ-listed company.
