Chagee Holdings Ltd (CHA) 2025 Q2 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Chagee's second-quarter 2025 earnings conference call. (Operator Instructions) Please note that today's event is being recorded. With that, I will now turn the call over to the first speaker today, Ms. Alicia Guo, Investor Relations Director of the company.

女士們、先生們，早安、晚上好。感謝您的支持，歡迎參加 Chagee 2025 年第二季財報電話會議。（操作員指示）請注意，今天的活動正在被記錄。現在，我將把電話交給今天的第一位發言者，公司投資者關係總監 Alicia Guo 女士。

Please go ahead, ma'am.

請繼續，女士。

Thank you. Hello, everyone, and welcome to Chagee's second-quarter 2025 earnings call. With us today are Mr. Junjie Zhang, our CEO; and Mr. Eric Huang, our CFO. The company's financial and operating results were released by the news were earlier today and are currently available online.

謝謝。大家好，歡迎參加 Chagee 2025 年第二季財報電話會議。今天與我們在一起的有我們的執行長張俊傑先生和我們的財務長 Eric Huang 先生。該公司的財務和營運結果已於今日稍早公佈，目前可在網路上查閱。

Before we continue, I refer you to our safe harbor statement in the earnings press release. which applies to this call. Any forward-looking statements that we make on this call are based on assumptions as of today, and Chagee does not undertake any obligations to update these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.

在我們繼續之前，請參閱收益新聞稿中的安全港聲明。此聲明適用於本次電話會議。我們在本次電話會議上所做的任何前瞻性陳述均基於今天的假設，Chagee 不承擔更新這些陳述的任何義務。此外，本次電話會議也討論了某些非公認會計準則財務指標。請參閱我們的收益報告，其中包含非 GAAP 指標與 GAAP 指標的對帳。

With that, I will turn to the call to our CEO, Mr. Jinjie Zhang. Please go ahead, sir.

說完這些，我就轉而致電我們的執行長張金傑先生。先生，請繼續。

(interpreted) Hello, everyone. Thank you all for joining Chagee's second-quarter 2025 earnings conference Call. We truly appreciate your continued trust and support, which has enabled us to forge ahead steadily in this dynamic market environment. Before we dive into our quarterly performance, I'm delighted to share an important update in our talent strategy. To accelerate our North American market expansion, we have successfully assembled a new North American leadership team.

（譯）大家好。感謝大家參加 Chagee 2025 年第二季財報電話會議。我們衷心感謝您一直以來的信任和支持，這使我們能夠在這個充滿活力的市場環境中穩步前進。在深入討論季度業績之前，我很高興分享我們人才策略的一個重要更新。為了加速我們在北美市場的擴張，我們成功組建了新的北美領導團隊。

We are honored to welcome Ms. Emily Chang as our Chief Commercial Officer for North America. Emily brings extensive international brand building experience, having served as CEO at West at VML and McCann World Group China and Chief Marketing Officer at Starbucks China.

我們很榮幸歡迎 Emily Chang 女士擔任我們北美地區的首席商務長。Emily 擁有豐富的國際品牌建立經驗，曾擔任 VML 和麥肯世界集團中國區執行長以及星巴克中國區首席行銷長。

Additionally, we welcome Mr. Aaron Harris as our Chief Development Officer for North America. As a chain restaurant industry expert, Aaron has successfully led market expansion for multiple national and international QSR brands, most recently, as Senior Vice President of Development at Dutch Bros Coffee. His rich experience in scaled operations will drive our development in the US market.

此外，我們歡迎 Aaron Harris 先生擔任我們北美地區的首席開發長。身為連鎖餐飲業專家，Aaron 成功領導了多個國內外 QSR 品牌的市場擴張，最近擔任 Dutch Bros Coffee 的開發資深副總裁。他豐富的規模化營運經驗將推動我們在美國市場的發展。

This is not just a key talent acquisition, but also an important move for our global strategic layout. We have proactively established a local team in core markets such as Asia Pacific and North America, making systematic investments in organizational capabilities.

這不僅是關鍵的人才引進，也是我們全球策略佈局的重要措施。我們積極在亞太、北美等核心市場建立在地團隊，並對組織能力進行系統性投入。

In the second half of this year, we will continue to invest strategically in overseas markets. steadily enhancing the development of a global talent pipeline and operational system. With our elite local teams, we're confident that we will achieve a pivotal breakthrough and sustain strong growth momentum globally.

今年下半年，我們將持續在海外市場進行策略性投入，穩步加強全球人才儲備和營運體系建設。憑藉我們精銳的本地團隊，我們有信心實現關鍵突破並在全球範圍內保持強勁的成長勢頭。

Next, I will walk you through the operating results and business updates. Despite the evolving dynamics of the global tea beverage market, we have stayed committed to growth strategy driven by brand value and product innovation. This has reinforced our operational resilience and sharper strategic focus. This quarter, we achieved solid progress with revenue sustained double-digit year-over-year growth and consistent profitability.

接下來，我將向大家介紹一下經營績效和業務更新。儘管全球茶飲料市場瞬息萬變，我們始終致力於以品牌價值和產品創新為驅動的成長策略。這增強了我們的營運彈性和更清晰的策略重點。本季度，我們取得了紮實的進展，收入保持了兩位數的同比增長，並保持了持續的盈利。

One of the most important factors behind these results is our consistent commitment to a clearly defined brand strategy in an environment where mainly in the industry, compete for market share through aggressive price promotions. We remain committed to our differentiated value first positioning, a strategy that is earning positive market feedback while maintaining a disciplined pricing framework.

這些成果背後最重要的因素之一是，在主要透過積極的價格促銷來爭取市場份額的產業環境中，我們始終堅持明確的品牌策略。我們仍然致力於差異化價值優先的定位，這一策略在保持嚴格的定價框架的同時贏得了積極的市場回饋。

Our third-party delivery GMV has seen growing contributions with strong repeat purchasing behavior among registered members. These results validate our brand positioning and confirm that consumers recognize and appreciate the value we offer.

我們的第三方配送 GMV 貢獻不斷成長，註冊會員的重複購買行為也十分活躍。這些結果驗證了我們的品牌定位，並證實了消費者認可並欣賞我們所提供的價值。

To strengthen this advantage and deepen our competitive moat, we will launch a comprehensive upgrade plan for essential raw materials in the second half of the year, focusing on key ingredients such as tea, milk and syrups. We believe that ongoing investment and sourcing improvements will deliver an elevated product experience to our customers, reflecting the core of our value first strategy.

為了加強這一優勢，深化我們的競爭壁壘，我們將在下半年推出一項針對必需原材料的全面升級計劃，重點是茶、牛奶和糖漿等關鍵成分。我們相信，持續的投資和採購改進將為我們的客戶帶來更高的產品體驗，反映我們價值第一策略的核心。

On a global stage, our strategy continues to deliver strong momentum the overseas markets have demonstrated strong growth momentum and are becoming an increasingly important growth engine for the company. This progress has been driven by a combination of localized product and marketing innovation, disciplined geographic expansion and operational excellence.

在全球舞台上，我們的策略持續發揮強勁作用，海外市場表現出強勁的成長勢頭，並正在成為公司越來越重要的成長引擎。這項進步是由在地化產品和行銷創新、嚴格的地理擴張和卓越的營運共同推動的。

In April, our Hojicha Genmai multi-captured customer attention across Southeast Asia, propelling us to the top position and share of voice among key brands in the region. In Malaysia, the product is sold out in major cities within two weeks of launch. In June, our [Earl Grey] series co-branded with the British Library performed equally well. the collection sparked vibrant engagement on social media.

四月份，我們的焙茶玄米 (Hojicha Genmai) 吸引了東南亞各地消費者的關注，使我們在該地區的主要品牌中佔據首位，並擁有較高的話語權。在馬來西亞，該產品上市兩週內就在各大城市銷售一空。6 月份，我們與大英圖書館聯合推出的 [伯爵茶] 系列同樣表現優異，在社群媒體上引發了熱烈的反響。

Simultaneously, our pop-up experiential events in Singapore and Malaysia drew tens of thousands of visitors providing immersed brand experiences and significantly elevating brand visibility. Hub sales during these events recorded decent sequential growth, especially in Singapore.

同時，我們在新加坡和馬來西亞舉辦的快閃體驗活動吸引了數萬名遊客，提供了沉浸式的品牌體驗，並顯著提升了品牌知名度。這些活動期間，樞紐銷售額實現了良好的連續成長，尤其是在新加坡。

At the same time, we continue to make steady and solid progress with our overseas store expansion. In the first half of the year, we advanced our strategic positioning in critical markets, including Indonesia and United States while further strengthening our strategic collaboration in Thailand.

同時，我們的海外門市拓展也持續穩定紮實推進。上半年，我們推動了印尼、美國等重點市場的策略定位，同時也進一步加強了在泰國的戰略合作。

Operational quality across all regions continues to improve. Our Singapore stores sustained solid and stable sales momentum, consistently delivering leading daily average sales. Profitability in our Malaysian stores exceeded expectations. More importantly, we have achieved a sequential increase in the sales price for our products in the overseas markets, demonstrating the strength of our premium brand positioning.

各地區營運品質持續改善。我們的新加坡門市保持了穩健的銷售勢頭，持續保持領先的日均銷售額。我們馬來西亞門市的獲利能力超乎預期。更重要的是，我們的產品在海外市場的銷售價格實現了環比成長，彰顯了我們高端品牌定位的實力。

Domestically, we're pushing boundaries by integrating modern consumer experience with traditional cultural elements. In the second quarter, we introduced the themed concept stores such as the Cimaric inlay art activity in Guangdong and the (inaudible) culture pop-up store in Shandong successfully blending heritage tea culture with contemporary retail design. This demonstrates that our globalization strategy is not just about growing our footprint, but equally about reinforce brand value and elevating operational quality.

在國內，我們不斷突破界限，將現代消費者體驗與傳統文化元素結合。第二季度，我們推出了主題概念店，如廣東的西瑪利克鑲嵌藝術活動和山東的（聽不清楚）文化快閃店，成功地將傳統茶文化與當代零售設計融合在一起。這顯示我們的全球化策略不僅要擴大我們的足跡，還要加強品牌價值和提高營運品質。

Product innovation remains at the heart of our growth. In the second quarter, our new product, Lychee Black Tea Milk tea showcased strong first week sales alongside other recent introductions. The two products drove a meaningful sequential increase in GMV during their launch period. Moreover, the time limited return of Melon Oolong Milk Tea proved highly popular, ranking prominently among the quarter's most favorite product.

產品創新仍然是我們成長的核心。第二季度，我們的新產品荔枝紅茶奶茶與其他近期推出的產品一起，首周銷售強勁。這兩款產品在上市期間推動了 GMV 的連續大幅成長。此外，限時回歸的蜜瓜烏龍奶茶也廣受歡迎，名列本季最受歡迎產品。

Driven by the dual engines of product innovation and user operations, our member ecosystem continues healthy development. By the end of the second quarter, a number of registered members achieved strong growth both sequentially and year-over-year. This reflects not only our ability to operate with efficiency at scale, but also the deep market reliance of our mission to champion health-oriented tea beverages.

在產品創新和用戶營運雙引擎驅動下，我們的會員生態系統持續健康發展。截至第二季末，註冊會員人數較上季、年比均實現強勁成長。這不僅體現了我們規模化和高效運作的能力，也體現了我們倡導健康茶飲料的使命對市場的深度依賴。

In the face of ongoing market challenges, we remain steadfast in our belief that quality is the foundation of lasting growth. As market conditions shift, our promise is clear. we will consistently offer tea that is both wholesome and promising in quality. Short-term results will never come at expense of our enduring commitment to excellence. As a representative of modern Chinese tea, our mission is twofold: to preserve the essence of Chinese tea culture and to modernize it for global consumers through innovation and creativity.

面對持續的市場挑戰，我們始終堅信品質是持久成長的基礎。隨著市場條件的變化，我們的承諾是明確的。我們將始終如一地提供既健康又有品質保證的茶。短期成果絕不會以犧牲我們對卓越的持久承諾為代價。作為現代中國茶的代表，我們的使命是雙重的：保存中國茶文化的精髓，並透過創新和創造力為全球消費者提供現代化的茶文化。

We will honor our craft, true hold to our values and use every couple of high-quality tea as a gesture of sincerity. We firmly believe that genuine care for both our product and our customer is the key to earning during market trust and sharing the authentic experience of Chinese tea with the world.

我們將尊重我們的工藝，堅持我們的價值觀，用每一杯高品質的茶來表達我們的真誠。我們堅信，真誠關心我們的產品和客戶是贏得市場信任和與世界分享中國茶正宗體驗的關鍵。

This concludes my remarks. Now I will turn the call to our CFO, Aaron, who will provide detailed insights to our financial performance. Thank you.

我的發言到此結束。現在我將把電話轉給我們的財務長 Aaron，他將對我們的財務表現提供詳細的見解。謝謝。

Thank you, Zhang, and good evening, good morning, everyone. Thank you for joining our earnings call. Before we dive into the details, please note that all amounts are in RMB and all comparisons for a year-over-year basis, unless otherwise stated. In the second quarter, our revenue reached RMB3.3 billion, up by 10.2% year-over-year. GMV came in at RMB8.1 billion, a year-over-year increase of 15.5%.

謝謝張，大家晚上好，早安。感謝您參加我們的收益電話會議。在我們深入討論細節之前，請注意，除非另有說明，所有金額均以人民幣為單位，所有比較均以同比為基礎。第二季度，我們的營業收入達到33億元人民幣，較去年同期成長10.2%。GMV達到81億元，年增15.5%。

Non-GAAP net income was $69.8 million, up by 0.1% year-over-year. For the first half of 2025 non-GAAP net income rose by 6.8% year-over-year to RMB1.3 billion. By end of the second quarter, our total membership exceeded 200 million, increasing by 14.5 million from the first quarter and 42.7% year-over-year. These results underscore the resilience of our business model and the strength of our execution under dynamic market conditions.

非公認會計準則淨收入為 6,980 萬美元，年增 0.1%。2025年上半年非公認會計準則淨利潤年增6.8%至人民幣13億元。截至第二季末，我們的總會員數突破2億，比第一季增加1450萬，年增42.7%。這些結果凸顯了我們的商業模式的彈性以及在動態市場條件下的執行力。

Now let me provide some context around the market condition we faced this quarter. The intensified delivery platform competition in China created headwinds for our business, while we remain disciplined in protecting our pricing integrity and a premium brand positioning. We recognize that this competitive environment weighed on near-term performance.

現在讓我提供一些我們本季面臨的市場狀況的背景資訊。中國配送平台競爭的加劇給我們的業務帶來了阻力，但我們仍嚴格遵守保護價格誠信和高端品牌定位的規定。我們認識到這種競爭環境對短期績效產生了影響。

At the same time, we are advancing our strategic expansion into international markets. This involves deliberate investments in organizational infrastructure, including talent acquisition and operational capabilities. While these initiatives are currently affecting profitability in short term, they are real critical investments as we work towards achieving operational leverage in these new markets.

同時，我們正在推動國際市場的策略擴張。這涉及對組織基礎設施的刻意投資，包括人才獲取和營運能力。雖然這些舉措目前在短期內影響獲利能力，但在我們努力在這些新市場實現營運槓桿的過程中，它們是真正的關鍵投資。

Next, let me go through the financials. Our total net revenue for the second quarter increased by 10.2% and year-over-year to RMB3,331.9 million, mainly driven by the continued expansion of our teahouse network. Among them, Net revenue from franchisee teahouse grew by 6.1% to RMB3,020.7 million, representing 90.7% of our total net revenue. Net revenue from company-owned teahouses increased by 77.3% to RMB311.2 million, accounting for 9.3% of the total revenue. The increase was primarily driven by expansion of company-owned Tea House network.

接下來，讓我來介紹一下財務狀況。我們第二季的總淨收入年增10.2%至人民幣33.319億元，主要得益於我們茶館網路的持續擴張。其中，加盟茶館淨收入成長6.1%至30.207億元，占公司總淨收入的90.7%。自營茶館淨收入年增77.3%至3.112億元，佔總營收的9.3%。成長主要得益於公司自有茶館網路的擴張。

Our total GMV for the second quarter increased 15.5% year-over-year. The average monthly GMV per Tea House in Greater China was RMB404,352, a year-over-year declining, reflecting both high base from last year's outstanding quarter and a more severe competitive environment, even so our commitment to maintain premium position and the brand integrity remains central as we navigate the current backdrop and prepare for improving market conditions.

我們第二季的總GMV年增15.5%。大中華區每家茶館的月平均GMV為人民幣404,352元，同比下降，既反映了去年出色季度的高基數，也反映了更為嚴峻的競爭環境，即便如此，在我們應對當前形勢並為改善市場條件做準備時，我們仍致力於保持高端地位和品牌完整性。

Meanwhile, our overseas markets have gained significant traction with GMV increasing 77.4% year-over-year and a 31.8% quarter-over-quarter. This growth is mainly driven by strategic store expansion and our growing brand awareness positioning the overseas market as a key pillar of our future growth.

同時，我們的海外市場取得了顯著成長，GMV 年比成長 77.4%，環比成長 31.8%。這一成長主要得益於策略性門市擴張和不斷增長的品牌知名度，將海外市場定位為我們未來成長的重要支柱。

In the first half of 2025, we expanded our overseas presence by adding a net 52 stores compared to year-end 2024, bringing our total of 208 stores as of June 30, 2025. The opening of a store in Indonesia attracted approximately 35,000 new member registrations during the launch week.

2025 年上半年，我們擴大了海外業務，與 2024 年底相比淨增 52 家門市，截至 2025 年 6 月 30 日，我們的門市總數達到 208 家。印尼一家商店的開幕在啟動週就吸引了約 35,000 名新會員註冊。

In Thailand, the average daily cup sales rose by 54% following our grand openings with 15,000 new members joined in just the first three days. Our Los Angeles store in United States set a record with 5,000 cups sold a single day.

在泰國，我們開業後，日均杯銷量增長了 54%，僅在前三天就吸引了 15,000 名新會員。我們在美國洛杉磯的門市創下了單日售出5000杯的紀錄。

Turning to margins. Our gross profit calculated by excluding cost of material storage and the logistics from net revenue reached RMB1.8 billion this quarter. resulting in a strong gross margin of 53.9%. This remarks solid improvements both year-over-year, up from 48.4% in the second quarter of last year. and sequentially from 53.1% in the first quarter of 2025.

轉向利潤。本季，我們從淨收入中扣除材料倉儲和物流成本計算出的毛利達到人民幣18億元，毛利率高達53.9%。這表明，與去年第二季的 48.4% 相比，以及與 2025 年第一季的 53.1% 相比，都有了顯著的改善。

This margin expansion was primarily driven by two key factors. First, we continue to benefit from a growing economy of scale as our business expands. Second, lower purchasing costs achieved through our ongoing procurement optimization initiatives have played a significant role.

利潤率的擴大主要受兩個關鍵因素推動。首先，隨著業務的擴展，我們繼續受益於不斷成長的規模經濟。第二，透過持續的採購優化舉措，降低採購成本發揮了重要作用。

On operating expenses, share-based compensation expenses rose significantly this quarter, which is reflected across our expense categories. The significant amount of share-based compensation expenses recognized in the second quarter of 2025 were related to the vesting of share-based awards with the performance conditions related to IPO success.

在營運費用方面，本季股權激勵費用大幅上升，這反映在我們的各個費用類別中。2025 年第二季確認的大量股權激勵費用與 IPO 成功相關的業績條件的股權獎勵歸屬有關。

The breakdown includes RMB505.6 million in G&A, RMB31.1 million in sales and marketing expenses and RMB15.8 million in other operating costs. To provide greater clarity on underlying performance, we will also reference non-GAAP operating results with full reconciliation available in our earnings release and Form 6-K.

其中包括 5.056 億元的一般行政費用、3,110 萬元人民幣的銷售和行銷費用以及 1,580 萬元人民幣的其他營運成本。為了更清楚地了解基本業績，我們還將參考非 GAAP 經營業績，並在收益報告和 6-K 表中提供完整的對帳。

Operating income was RMB107.6 million. Excluding share-based compensation expenses, operating income was RMB66.1 million, representing a 19.8% margin. This margin change reflecting a step-up investment in the brand building and marketing to support a new product launch R&D, to ensure our offering, digital infrastructure and to elevate customer experience and talent recruitment for global expansion.

營業收入為人民幣1.076億元。不計股權報酬費用，營業收入為 6,610 萬元，利潤率為 19.8%。這項利潤率變化反映了對品牌建立和行銷的加大投資，以支持新產品的推出研發，確保我們的產品、數位基礎設施，並提升客戶體驗和人才招聘，以實現全球擴張。

Operating costs for company-owned Tea House was RMB184.1 million, up 72.8% from a year ago and up 17.2% from the first quarter of 2025. As of June 30, 2025, we operated 239 company-owned Tea Houses, up from 191 at the first quarter of 2025.

自營茶館營業成本為1.841億元，較去年同期成長72.8%，較2025年第一季成長17.2%。截至 2025 年 6 月 30 日，我們經營 239 家公司自營茶館，高於 2025 年第一季的 191 家。

On per store basis, operating costs have decreased compared to the first quarter of 2025, showing improved efficiency at the store level. The other operating costs increased by 36.2% to RMB173.7 million, largely due to higher payroll supporting the expansion of the franchisee network. On a non-GAAP basis, other operating costs account for 1.7% of revenue compared to 1.2% a year ago.

以每家門市計算，營運成本與 2025 年第一季相比有所下降，顯示門市效率有所提高。其他營運成本增加 36.2% 至人民幣 1.737 億元，主要是由於支持特許經營網路擴張的工資增加。以非公認會計準則計算，其他營運成本佔收入的 1.7%，而去年同期為 1.2%。

Sales and marketing expenses for the quarter were RMB385 million, up 54.6% from a year ago, reflecting higher advertising costs tied to UT product launch and related campaigns, along with payroll growth and to support the business expansion. On a non-GAAP basis, sales and marketing representing 10.6% of revenue compared to 8.2% a year ago.

本季銷售和行銷費用為人民幣 3.85 億元，比去年同期成長 54.6%，反映了與 UT 產品發布和相關活動相關的廣告成本增加，以及薪資成長和支持業務擴張。以非公認會計準則計算，銷售和行銷佔收入的 10.6%，而去年同期為 8.2%。

G&A expenses reached RMB944.6 million, up 301.1% year-over-year, driven by SBC costs I just mentioned related to the IPO and expanded the team to supporting global operation, increased R&D for product upgrades and innovation and higher IT service costs to enhance operational efficiency. On a non-GAAP basis, G&A expenses represented 13.2% of revenue compared to 7.8% a year ago.

一般及行政開支達到人民幣 9.446 億元，同比增長 301.1%，主要是由於我剛才提到的與 IPO 相關的 SBC 成本以及擴大團隊以支持全球運營、增加產品升級和創新的研發費用以及更高的 IT 服務成本以提高運營效率。以非公認會計準則計算，一般及行政支出佔收入的 13.2%，去年同期為 7.8%。

Income tax expenses represented 62.1% of income before tax, significantly higher than 20.1% a year ago. This was primarily driven by the impact of share-based compensation expenses recognized during the quarter. We achieved our tenth consecutive quarter of profitability with net income of RMB77.2 million.

所得稅費用佔稅前收入的62.1％，顯著高於一年前的20.1％。這主要是受本季確認的股權激勵費用的影響。我們實現連續十個季度獲利，淨利達人民幣7,720萬元。

Non-GAAP net income, excluding share-based compensation expenses, was RMB629.8 million, with a non-GAAP net margin of 18.9% compared to 20.8% last year. The margin decline reflects our continued investments in new products and overseas markets and the net losses from overseas operations that are still ramping up. Our Greater China business remains healthy, delivering a profitability growth from last year.

非公認會計準則扣除股權激勵費用後的淨利為人民幣6.298億元，非美國通用會計準則淨利率為18.9%，去年同期為20.8%。利潤率的下降反映了我們對新產品和海外市場的持續投資以及海外業務淨虧損的持續增加。我們的大中華區業務保持健康，獲利能力較去年有所成長。

During the quarter, basic net income per ordinary share was RMB0.36 and the diluted net income per ordinary share was RMB0.35. We ended the quarter with RMB8.9 billion in cash and cash equivalents, restricted cash and time deposits, up from RMB4.9 billion at the end of 2024.

本季，每股普通股基本淨利為人民幣0.36元，每股普通股稀釋淨利為人民幣0.35元。本季末，我們持有現金及現金等價物、限制性現金及定期存款人民幣89億元，高於2024年底的人民幣49億元。

While near-term headwinds persist, we are confident in our strategic trajectory. Our overseas operations are gaining encouraging consumer traction, and we are building the organizational and operational foundation to sustain our long-term growth.

儘管近期逆風持續存在，但我們對我們的戰略軌跡充滿信心。我們的海外業務正在獲得令人鼓舞的消費者青睞，我們正在建立組織和營運基礎以維持我們的長期成長。

The investments we are making today in people, infrastructure and their capabilities well position us to capture significant opportunities as these markets mature and the operational leverage takes hold. At this time, we will not be providing the formal financial guidance for the whole year. Our priority is to execute our long-term growth strategy and delivering lasting value to our shareholders. we may revisit the possibility of offering guidance in the future as conditions evolves.

隨著這些市場的成熟和營運槓桿的增強，我們今天在人才、基礎設施及其能力方面所做的投資使我們能夠抓住重大機會。目前，我們不會提供全年的正式財務指導。我們的首要任務是執行我們的長期成長策略並為股東創造持久價值。隨著情況的發展，我們可能會重新考慮未來提供指導的可能性。

In closing, I want to reaffirm our unwavering commitment to our premium brand strategy in today's dynamic competitive landscape. We remain focused on delivering healthy, high-quality tea offering that our customers trust and value. We are deeply grateful for the continued support of our team, Chagee friends and valued shareholders.

最後，我想重申，在當今充滿活力的競爭環境中，我們堅定不移地致力於高端品牌策略。我們始終致力於提供客戶信賴和重視的健康、高品質的茶。我們非常感謝我們團隊、Chagee 朋友和尊貴股東的持續支持。

Through disciplined capital allocation and our commitment to the strengthening for diversifying our global business, we will continue creating sustainable long-term value for our shareholders. Our focus remains on protecting margin and delivering profitable growth that is standing the test of time.

透過嚴格的資本配置和致力於加強全球業務多元化，我們將繼續為股東創造可持續的長期價值。我們的重點仍然是保護利潤率和實現經得起時間考驗的獲利成長。

With that, I will turn the call back to the operator to begin the Q&A session. Operator, please go ahead.

說完這些，我將把電話轉回給接線生，開始問答環節。接線員，請繼續。

(Operator Instructions)

（操作員指示）

Lillian Lou, Morgan Stanley.

摩根士丹利的 Lillian Lou。

Hello. Thank you for the opportunity to ask a question. Thanks a lot for Junjie Zhang and Aaron's detailed introduction and I look forward to a big step forward in the global expansion. I have a question actually on China right now. Obviously, we saw it in the second quarter results as there was impact from delivery platform subsidy program. So my question is related. One is what kind of operational impact we've been seeing.

你好。感謝您給我提問的機會。非常感謝張俊杰和Aaron的詳細介紹，期待在全球擴張的道路上邁出一大步。我現在實際上有一個關於中國的問題。顯然，我們在第二季的業績中看到了這一點，因為配送平台補貼計畫產生了影響。所以我的問題是相關的。一是我們已經看到了什麼樣的營運影響。

For example, the impact on general ASP, the franchise work on store's profit margin and the stability. And related to that, what company's strategy going forward related to dealing with platforms subsidy program, how we defend our positioning in the industry and how we look at the second half general operation focus? Then I will translate my question.

例如，對整體ASP的影響，特許經營對商店的利潤率和穩定性的影響。與此相關的是，公司未來在應對平台補貼計畫方面的策略是什麼，我們如何捍衛我們在產業中的地位，以及如何看待下半年的整體營運重點？然後我會翻譯我的問題。

(spoken in foreign language)

（用外語說）

(interpreted) Thank you so much for your question. We still deliver platform competition heating up quite a bit in the second quarter and attracted a lot of attention globally. While competition can be really good for the market. And the heavy reliance on the subsidy right now is really sustainable for the industry as a whole.

（翻譯）非常感謝您的提問。我們仍然認為平台競爭在第二季會相當激烈，並在全球範圍內引起廣泛關注。儘管競爭對市場來說確實是件好事。目前對補貼的嚴重依賴對於整個產業來說確實是可持續的。

So we don't really count on the platform or the discount to attract more customers. It might help us with the GMV in a short period of time, but it doesn't really help with the profitability to our partners or to our franchisees as well.

所以我們其實並不依賴平台或折扣來吸引更多客戶。它也許能在短時間內幫助我們提高商品交易總額 (GMV)，但對我們的合作夥伴或加盟商的獲利能力卻沒有真正的幫助。

So we believe that on -- it puts a lot of pressure on the merchant margin and shakes up delivery platforms income and stability and create financial strength for the platform as well. So the key issue with the subsidy is that they mainly attract price-sensitive customers who don't have strong brand loyalty, and we'll switch quickly to whoever offers lowest price. So that makes it really hard to build lasting customer relationships.

因此我們認為，這會對商家的利潤造成很大壓力，並動搖配送平台的收入和穩定性，同時也會為平台創造財務實力。因此，補貼的關鍵問題是，他們主要吸引那些對價格敏感、對品牌忠誠度不高的客戶，我們會迅速轉向提供最低價格的客戶。因此建立持久的客戶關係變得非常困難。

So for the company, we have three principles: The first principle is to build around -- we stay firmly committed to delivering high-quality products and services. We're not going to get pulled into price wars. Instead, our focus is on offering superior product quality and an outstanding customer experience. And secondly, we're not doubling down our premium brand positioning.

因此，對於公司來說，我們有三個原則：第一個原則是圍繞著——我們堅定地致力於提供高品質的產品和服務。我們不會捲入價格戰。相反，我們的重點是提供卓越的產品品質和出色的客戶體驗。其次，我們不會加倍強調我們的高端品牌定位。

We believe real long-term value comes from brand building trust and delivering greater user experience, not from short-term price cuts or discounts or coupons. Our strategy is all about enhancing the high-value brand image. And thirdly, we are focusing on optimizing operational efficiency to boost our competitiveness without relying on subsidies we keep investing in technology and progress -- process improvement to improve efficiency.

我們相信真正的長期價值來自於品牌建立信任和提供更好的用戶體驗，而不是短期降價、折扣或優惠券。我們的策略是提升高價值品牌形象。第三，我們專注於優化營運效率，以提高我們的競爭力，而不是依賴補貼，我們不斷投資於技術和進步——流程改進以提高效率。

For example, the 4.0 automated machine will be rolled out at the end of the year. It will largely lower the labor cost and increase the efficiency of the operation at the store level. So when we pass those savings on to the customers and partners who truly appreciate our quality so we can stay reasonably competitive on price without compromising our core value.

例如，4.0自動化機器將於年底推出。這將大大降低勞動成本並提高門市層面的營運效率。因此，當我們將這些節省的成本轉嫁給真正欣賞我們品質的客戶和合作夥伴時，我們就可以在不損害我們的核心價值的情況下保持合理的價格競爭力。

And also, at last, our R&D -- product R&D will have something different at the end of the year, and the menu will be changed totally. So we welcome you guys to look forward to our changes at the end of the year. Thank you for your question.

最後，我們的研發－產品研發將在年底有所改變，菜單將完全改變。因此，我們歡迎大家期待我們年底的變化。感謝您的提問。

Xiaopo Wei.

小破韋.

Sorry, Sandra, can we hold on for a second? The CEO has a little comment to add?

抱歉，桑德拉，我們可以等一下嗎？執行長還有什麼要補充的嗎？

My apologies, of course.

當然，我深感抱歉。

(interpreted) So actually, we believe right now, China has been transferring from the Chinese manufacturing or Made in China mode to the brand positioning mode at the moment. So we believe the lower pricing strategy doesn't really consistent with the high-quality life experience or branding positioning for the Chinese market overall trend at the moment.

(翻譯)所以實際上，我們認為現在中國已經從中國製造或中國製造模式轉向品牌定位模式。所以我們認為較低的定價策略並不符合目前中國市場整體趨勢的高品質生活體驗或品牌定位。

So keeping the lower voice, it is not really help with the higher value positioning we firmly believe that we're going to stick to the high-quality brand positioning and also offer a high-quality product to our customers. Thank you.

因此，保持較低的聲音對於更高的價值定位並沒有什麼幫助，我們堅信我們將堅持高品質的品牌定位，並為我們的客戶提供高品質的產品。謝謝。

Sandra, please go ahead with the next question.

桑德拉，請繼續下一個問題。

Xiaopo Wei, Citi.

魏曉波，花旗銀行。

Hi, can you hear me?

嗨，你聽得到我說話嗎？

Yes, please.

是的，請。

Okay. I have two questions on overseas, overseas business. In your prepared remarks, you mentioned the very siting new hire in the US leadership and also many exciting new products in the overseas market locally. So could you update us on the plan for overseas and China in the next few quarters?

好的。我有兩個關於海外、海外業務的問題。在您準備好的演講中，您提到了美國領導層新任員工的任命以及當地海外市場的許多令人興奮的新產品。那麼您能否向我們介紹未來幾季海外和中國的計畫？

Secondly, in the operation of overseas market, did you observe anything you want to share with us? And how could you how could you translate those observations to the future strategy for the overseas business?

其次，在海外市場的運作中，您觀察到了什麼可以和我們分享的嗎？您如何將這些觀察轉化為未來的海外商業策略？

(spoken in foreign language)

（用外語說）

All right. Thanks for the question. Let me answer it. So let me first just go through a little bit more detail on the overseas development market by market, that would be -- give you like a full picture of where we are now in overseas market. So I would not talk about domestic growth, but more focused on the overseas market.

好的。謝謝你的提問。我來回答一下吧。因此，首先讓我更詳細地介紹海外發展市場，以便讓您全面了解我們目前在海外市場的狀況。因此我不會談論國內成長，而是更關注海外市場。

In the international market, that now we have 208 stores in total, including 178 in Malaysia and 16 in Singapore, 8 Indonesia, 5 Thailand and 1 in US. So overall, we have 39 new stores added in the second quarter. So we also successfully entered Indonesia first ever with new stores in one quarter. So in the same time, we made new strides in the North American too. So opening our very first store in recently in May with the second US store now soft opening in August.

在國際市場，目前我們共有208家門市，其中馬來西亞178家，新加坡16家，印尼8家，泰國5家，美國1家。總體而言，我們在第二季增加了 39 家新店。因此，我們也在一個季度內開設了新店，首次成功進入印尼市場。同時，我們在北美也取得了新的進步。因此，我們在 5 月開設了第一家美國店，8 月將試營運第二家美國店。

So overall, from an overall GMV perspective, the international markets keep up a strong growth. As I just mentioned to that in the quarter that we have a 77% growth year-over-year. To break that down by market, we see a lot of very good signal in the performance country by country. In Singapore, we see that daily sales has stayed very strong in the second quarter, holding steadily above 1,500 cups a day a store. So we are still continually optimizing a single store model to really maximize our potential in Singapore.

因此整體而言，從整體GMV角度來看，國際市場保持強勁成長。正如我剛才提到的，本季我們的銷售額年增了 77%。依市場細分，我們看到各國的表現都表現出非常好的訊號。在新加坡，我們看到第二季的日銷售量保持強勁，每家店的每日銷售量穩定在 1,500 杯以上。因此，我們仍在不斷優化單店模式，以真正最大限度地發揮我們在新加坡的潛力。

By June, our average payback period of mature store in Singapore improved to less than 12 months. So we see there was soon as an overall country will be breakeven in coming quarters. So that's really a very robust business development in Singapore. In Malaysia, we have 178 store now running very smoothly. And the overall the profitability performance of our store exceeded our plan -- our internal plan.

截至6月份，我們在新加坡成熟門市的平均投資回收期已改善至12個月以內。因此，我們預計未來幾季整個國家很快就會實現收支平衡。所以這確實顯示新加坡的商業發展非常強勁。在馬來西亞，我們目前有 178 家商店運作非常順利。我們商店的整體獲利表現超出了我們的計劃——我們的內部計劃。

In Thailand, we relaunched the market with three net new stores in the quarter. Average store performed really very well. And at a daily basis, it's 800 cups a day at store. So we see a very welcome by the local customers. In Los Angeles, our first store opening, I just mentioned that with the 5,000 cups sold a day, it's a really long line like three, four hours and now still keep at 1,000 cups a day for the first store.

在泰國，我們本季新增了三家門市，重新開拓了市場。普通商店的表現確實非常好。每天，這家店的銷量是 800 杯。因此，我們看到當地客戶非常歡迎我們。在洛杉磯，當我們的第一家店開業時，我剛才提到，每天售出 5,000 杯咖啡，排隊時間很長，大概要等三、四個小時，現在第一家店每天的銷量仍然保持在 1,000 杯。

So going forward, we will push hard on two fronts, strengthening our presence in those mature markets like Malaysia, and we will continue to have a rapid growth in those markets. But in meantime, we prepare enter in more country. Like today is a first grand opening day in Philippines. So I think we see that more and more exciting news coming in.

因此，展望未來，我們將在兩個方面大力推進，加強我們在馬來西亞等成熟市場的存在，並繼續在這些市場快速成長。但同時，我們也準備進入更多的國家。就像今天是菲律賓的第一個盛大開幕日。所以我認為我們會看到越來越多令人興奮的消息。

For the second half, the first one that we -- the Philippines will be the last contract in this year as a new country -- as a new market we enter into. So -- and then for the B&M as well as just mentioned. And then in the Q4 to Q3, we definitely -- we established a team there, we were ramping up the growth. And we estimated in -- for the full year, we will open more than 200 stores as all -- in the total overseas markets. So that's for the overall overseas market expansion.

對於下半年，我們的第一份合約—菲律賓將是我們今年的最後一份合同，菲律賓是我們進入的一個新國家、一個新市場。那麼 — — 對於 B&M 以及剛才所提的情況。然後在第四季到第三季度，我們確實在那裡建立了一個團隊，我們正在加速成長。我們預計，全年我們將在海外市場開設超過 200 家門市。這就是整體海外市場的擴張。

And as from a business perspective, there are some highlights that Jei mentioned as well. For example, we have a lot of local product launch. It's not a product that actually launched it before in China, like chart that's very popular in Singapore. We see a lot of local relevant campaigns well received by local customers. So I think as [Jei] just mentioned that we have played as a very important lifestyle brand, and we are focused on building a relevant experience to local customers, not just like simply say, it's a Chinese brand.

從商業角度來看，Jei 也提到了一些亮點。例如我們有很多本地產品的推出。它實際上並不是之前在中國推出的產品，就像在新加坡非常流行的 chart 一樣。我們看到許多與本地相關的活動受到當地客戶的歡迎。所以我認為，正如 [Jei] 剛才提到的，我們是一個非常重要的生活方式品牌，我們專注於為本地客戶打造相關的體驗，而不僅僅是簡單地說，這是一個中國品牌。

So I think that's something that we see very well kept by the different markets.

所以我認為我們看到不同的市場都很好地保持了這一點。

Operator, next question, please.

接線員，請問下一個問題。

Sijie Lin, CICC.

林思傑，中金公司。

Thank you, management, for taking my questions. So my question is on SSSG. So could you please provide more color on the same-store sales performance in Q2, and what's your view of the same-store growth trend going forward?

謝謝管理層回答我的問題。我的問題是關於 SSSG 的。那麼，您能否提供更多關於第二季同店銷售業績的信息，以及您對未來同店成長趨勢的看法？

(spoken in foreign language)

（用外語說）

Thank you. It's a good question. Yeah, the same-store GMV continued softening in this quarter, mainly due to two reasons. The first reason that we talked about it before. So because we're comparing against a very strong second quarter in last year.

謝謝。這是個好問題。是的，本季同店GMV繼續走弱，主要有兩個原因。第一個原因我們之前已經討論過了。因為我們正在與去年非常強勁的第二季進行比較。

And secondly, of course, the overall delivery platform price were intensified. We choose not to engage heavily to protect our brand positioning. So that's definitely where we have a little more market share challenges, leads to temporary customer diversion and that impacted the sales a little bit.

其次，當然是整體外送平台價格的不斷上漲。為了保護我們的品牌定位，我們選擇不進行過多的參與。因此，這肯定會為我們帶來更多的市場份額挑戰，導致暫時的客戶轉移，並對銷售產生一定影響。

Given the high base from the comparable period last year, we expected continued pressure on the same-store GMV in the second half of 2025. So we are moderating store expansion in 2025, which eases growth pressure on the same stores. Also, we believe that a subsidy-driven price will not last indefinitely, right?

鑑於去年同期基數較高，我們預計 2025 年下半年同店 GMV 將持續面臨壓力。因此，我們將在 2025 年放緩門市擴張速度，以減輕同一門市的成長壓力。此外，我們認為補貼驅動的價格不會無限期地持續下去，對嗎？

So its impact will gradually fade. And as Jie just mentioned, that we will do what we are strong at. We will focus on the product quality elevation, and we will continue to improve better sugar, better milk and better team.

所以它的影響會逐漸消退。正如傑剛才提到的，我們會做我們擅長的事。我們將注重產品品質的提升，並持續打造更好的糖、更好的牛奶、更好的團隊。

So really providing the high-quality product to customers and to bring the customer back, focus on the customer experience, right, stay away from those price competition and really focus on our customer long term -- our long-term strategy, delivering high-quality product and experience to build a premium brand and earning the customer trust through the consistent excellence. So I think we believe that, that is something that Chagee should play. And we are so we are very confident that there will be appreciated by customer as well.

因此，真正為客戶提供高品質的產品並讓客戶回頭，專注於客戶體驗，遠離價格競爭，真正關注我們的客戶的長期發展——我們的長期策略是提供高品質的產品和體驗，打造優質品牌，並透過始終如一的卓越表現贏得客戶信任。所以我認為我們相信這是 Chagee 應該扮演的角色。我們非常有信心，我們的產品也會受到客戶的讚賞。

Thank you.

謝謝。

I would like to hand the conference back to our management for closing remarks.

我想將會議交還給我們的管理階層，請他們作最後發言。

Thank you. Thank you again for joining our call today because we're short of time. If you have any other further questions, please feel free to contact us or request through our IR website. We look forward to speaking with everyone in our next call. Have a good day. Thank you.

謝謝。再次感謝您今天參加我們的電話會議，因為我們的時間不夠。如果您有任何其他問題，請隨時聯絡我們或透過我們的 IR 網站提出請求。我們期待在下次通話中與大家交談。祝你有美好的一天。謝謝。

Bye-bye.

再見。

Bye.

再見。

This concludes today's event. Thank you for participating. You may now disconnect.

今天的活動到此結束。感謝您的參與。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。