Chagee Holdings Ltd (CHA) 2025 Q4 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Chagee's fourth-quarter 2025 earnings conference call. (Operator Instructions) Please note that today's event is being recorded.

各位女士、各位先生，早安、晚安。感謝各位耐心等候，歡迎參加茶姬（Chagee）2025 年第四季財報電話會議。(接線員指示) 請注意，今天的活動將被錄音。

With that, I will now turn the call over to the first speaker today, Ms. Alicia Guo, Investor Relations Director of the company. Please go ahead, madam.

接下來，我將把電話交給今天的第一位發言人——本公司投資人關係總監 Alicia Guo 女士。女士，請開始。

(interpreted) Thank you. Hello, everyone, and welcome to Chagee's fourth-quarter 2025 earnings call. With us today are Mr. Junjie Zhang, our CEO; Mr. Dengfeng Yin, our COO, Global Executive President and CEO of Greater China region; and Mr. Aaron Huang, our CFO. The company's financial and operating results were released by the Newswire earlier today and are currently available online.

(口譯) 謝謝。各位好，歡迎參加茶姬 2025 年第四季財報電話會議。今天與會的有：我們的執行長張俊傑先生；我們的營運長、全球執行總裁暨大中華區總裁兼執行長殷登峰先生；以及我們的財務長黃亞倫先生。公司財務與營運結果已於今日稍早透過 Newswire 發布，並已可於線上查閱。

Before we continue, I refer you to our Safe Harbor statements 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 obligation to update these statements.

在我們繼續之前，請參閱我們在財報新聞稿中的「安全港」聲明，其同樣適用於本次電話會議。我們在本次電話會議中所作的任何前瞻性陳述，均基於截至今日的假設；茶姬不承擔更新此等陳述的任何義務。

Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measure to GAAP measure.

此外，本次電話會議將討論若干非 GAAP 財務衡量指標。請參閱我們的財報新聞稿，其中包含非 GAAP 指標與 GAAP 指標之間的調節表。

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

接下來，我將把電話交給我們的執行長張俊傑先生。先生，請開始。

(interpreted) Hello, everyone. Thank you all for joining Chagee's fourth-quarter 2025 earnings conference call.

(口譯) 各位好。感謝各位參加茶姬 2025 年第四季財報電話會議。

Over the past year, the market has experienced significant volatility, and the competitive landscape has grown even more complex. As a new listed young company, we indeed encountered some ups and downs on our 2025 journey, took a few detours and a time faced moments of uncertainty in our decision-making. The management team has conducted a deep review and a reflection on these reviewing them as vital nourishment to drive the company's evolution and build long-term competitiveness.

過去一年，市場經歷了顯著波動，競爭格局也變得更加複雜。作為一家新上市的年輕公司，我們在 2025 年的旅程中確實經歷了一些起伏，走了一些彎路，也曾在決策上出現過不確定的時刻。管理團隊已進行深入檢視與反思，並將這些經驗視為推動公司進化、建立長期競爭力的重要養分。

Looking back at our journey, 2023 to 2024 was a period of rapid expansion in Greater China market. Our primary strategy was quality tea house expansion with the core objective of securing prime location across major commercial districts nationwide, leveraging a standardized business model to achieve rapid scale. This strategy delivered significant results. We now have over 7,000 core tea house locations across Mainland China. And through Boya Tea Latte, our blockbuster product, we successfully pioneered the fresh tea leaf category and accumulated a total of nearly 240 million members registered with our membership program. These achievements have formed the foundation of our durable competitive moat.

回顧我們的歷程，2023 至 2024 年是大中華市場快速擴張的階段。我們的主要策略是擴張高品質茶館，核心目標是在全國主要商圈取得優質點位，並透過標準化的商業模式實現快速規模化。此策略帶來了顯著成果。目前我們在中國大陸已擁有超過 7,000 家核心茶館門店。並且透過爆款產品「Boya Tea Latte」，我們成功開創了鮮茶葉品類，會員體系累計註冊會員總數接近 2.4 億。這些成就構成了我們持久競爭護城河的基礎。

Over the past year, the market entered a new shape, and consumers have shown a K-shaped divergence in spending habits. One side chasing extreme value, the other seeking premium experiences through superior products and service. The ongoing price war among the third-party delivery platforms has further intensified this divergence. For Chagee, we have a strong foundation in premium experiences with over 7,000 prime offline locations, a core fresh tea leaf latte driving over 90% of revenue and a loyal membership base. We underinvested here before. Now we are ready to expand categories and fully unlock our offline potential.

過去一年，市場進入新的形態，消費者的支出習慣呈現 K 型分化。一端追求極致性價比，另一端則透過更優質的產品與服務尋求高端體驗。第三方外送平台之間持續的價格戰，進一步加劇了這種分化。對茶姬而言，我們在高端體驗方面具備堅實基礎：超過 7,000 個優質線下點位、以核心鮮茶葉拿鐵貢獻超過 90% 的營收，以及忠誠的會員基礎。我們過去在這方面投入不足。現在，我們已準備好擴展品類，並全面釋放線下潛力。

Last year, Chagee foundation solidified and we entered high-quality development. We recognize that expansion phase inertia no longer met the demands of refined management and operational excellence. Starting the second half of 2025, we advanced a series of internal adjustments, including organizational restructuring and business model transition while strategically slowing down the pace of new product launches. This had a measurable impact on our revenue. We also underestimated delivery platform price on off-line sales. We stay true to our long-term strategy, avoiding short-term trends.

去年，茶姬的基礎更加穩固，我們進入高品質發展階段。我們認識到，擴張期的慣性已無法滿足精細化管理與卓越營運的要求。自 2025 年下半年起，我們推進了一系列內部調整，包括組織重整與商業模式轉型，同時策略性放緩新品推出節奏。這對我們的營收造成了可衡量的影響。我們也低估了外送平台價格對線下銷售的影響。我們將堅守長期策略，避免追逐短期趨勢。

Today, I would like to share the clear insights from these experiences and our definitive 2026 direction. We believe a team that faces problems head on, learns from them, and sharpen its thinking deserves long-term trust. In this way, we aim to deliver enduring value to our shareholders, our consumers and society at large.

今天，我想分享我們從這些經驗中得到的清晰洞見，以及我們明確的 2026 年方向。我們相信，一支能正面面對問題、從中學習並磨練思維的團隊，值得獲得長期信任。藉此，我們希望為股東、消費者以及整體社會創造持久價值。

I can now share with confidence that our internal realignment is largely complete, and we have returned to steady operations in order. Looking ahead to 2026, our core strategy will remain centered on high-value brand positioning and consumer value with focus on refining every day -- every detail that shapes the consumer experience. Specifically, we will focus on five key areas: brand upgrade, product innovation, scenario expansion, experience enhancement, and organizational improvements. These initiatives will bring us closer to our customers and support sustainable high-quality growth.

我現在可以有信心地分享：我們的內部調整已大致完成，營運已回到穩定、有序的狀態。展望 2026 年，我們的核心策略仍將以高價值品牌定位與消費者價值為中心，聚焦於打磨日常——塑造消費者體驗的每一個細節。具體而言，我們將聚焦五大重點：品牌升級、產品創新、場景拓展、體驗提升與組織改善。這些舉措將使我們更貼近顧客，並支撐可持續的高品質成長。

At the brand level, we will launch new formats for regular and personalized tea houses, complemented by varied product lines to fill diverse occasions and emotions. We will elevate the offline experience, creating a true first space that connects emotionally with customers and showcases Chagee's unique term.

在品牌層面，我們將推出常規與個性化茶館的新型態，並以多元產品線作為配套，覆蓋不同的場合與情緒需求。我們將提升線下體驗，打造能與顧客產生情感連結、並展現茶姬獨特調性的真正「第一空間」。

We will stay true to the logic of product people. We will innovate across categories by anchoring our 18 to 30 demographic core demand and develop new offerings in special deals, tea latte, and more, aligning our portfolio with consumers' multi-scenario lifestyle.

我們將堅守「產品人群」的邏輯。我們將以 18 至 30 歲人群的核心需求為錨點，跨品類創新，開發特惠、茶拿鐵等新產品，使產品組合與消費者多場景生活方式相匹配。

We will penetrate new scenarios with morning and evening specific products such as energizing morning and evening low caffeine drinks. To complete our all-day lineup, we will also grow into workplaces, celebrations, birthdays, schools, and wedding, leveraging scenario marketing to win lasting mind share and wave strategy into every day and special occasions.

我們將以早晚特定產品切入更多新場景，例如提神的晨間飲品與晚間低咖啡因飲品。為完善全時段產品矩陣，我們也將延伸至職場、慶祝、生日、校園與婚禮等場景，透過場景行銷贏得長期心智佔有，並將「波浪式策略」融入日常與重要時刻。

Consumer experience and organizational strength underpin our strategy. We will enhance tea health environment through improved ambience and differentiated designs for flagship, landmark, and boutique tea houses. On service, we will overhaul after sales system, rolling out company-wide training, launch a SVIP hub line, and create feedback channels that directly shape improvements based on real consumer input.

消費者體驗與組織能力是我們策略的基石。我們將透過提升氛圍，並為旗艦店、地標店與精品店打造差異化設計，強化茶館健康環境。在服務方面，我們將全面改造售後服務體系，推動全公司培訓，上線 SVIP 專線中樞，並建立能直接影響改進的回饋管道，讓改善真正基於消費者的真實輸入。

Strong organizational capability is essential to delivering our core strategic goals. In 2026, we will advance digital tools, optimize processes, and standardize best practices in operation, R&D, supply chain and beyond. This will create a leaner, more agile structure perfectly linked with our brand expansion and consumer needs.

強大的組織能力對於實現我們的核心戰略目標至關重要。在2026年，我們將推進數位化工具、優化流程，並在營運、研發、供應鏈等領域推動最佳實務的標準化。這將打造更精實、更敏捷的組織架構，並與我們的品牌擴張與消費者需求緊密連結。

We understand that high-quality growth is a long-term process requiring patience and results, and we must consistently do what is right for the long term. In 2026, all of our strategic execution and resource allocation were centered on consumer value. We believe that only by truly understanding consumers, meeting their needs, and creating value that exceeds their expectations can a brand achieve long-term steady development. We also look forward to working with all partners to advance these strategies and build on an even more vibrant strategy.

我們理解，高品質成長是一個需要耐心與成果的長期過程，我們必須持續做對長期而言正確的事。在2026年，我們所有的戰略執行與資源配置都以消費者價值為核心。我們相信，唯有真正理解消費者、滿足其需求，並創造超越其期待的價值，品牌才能實現長期且穩健的發展。我們也期待與所有合作夥伴攜手推進這些策略，並在此基礎上打造更具活力的戰略藍圖。

Over eight years, Chagee expanded from one tea house to 7,453 tea houses. This growth reflects the strength of our sustainable business model, adaptive organization, and commanding brand equity.

在八年間，霸王茶姬從一家茶館擴張至7,453家茶館。這一成長反映了我們可持續的商業模式、具適應力的組織，以及強勁的品牌資產所帶來的實力。

In 2025, due to the comprehensive organizational adjustments in the second half of the year and a deliberate pause in new product launches, we experienced a slower growth in top line. Our same-store sales in the fourth quarter declined by 25.5% year-over-year. This was indeed our biggest challenge in 2025.

2025年，由於下半年進行全面的組織調整，並有意放緩新品推出節奏，我們的營收增長有所放緩。第四季同店銷售額同比下降25.5%。這確實是我們在2025年面臨的最大挑戰。

But what I want to emphasize is not just this number, but also the fact that despite short-term pressure, we did not resort to short-term tactics. Instead, we held firmly to our long-term plan. In 2023, recent domestic same-store sales showed sequential improvement, reinforcing our confidence in a full year trajectory of stabilizing in the first half and improving in the second.

但我想強調的不僅是這個數字，還包括一個事實：即便面臨短期壓力，我們也沒有採取短期手段。相反，我們堅定地遵循長期規劃。在2023年，近期國內同店銷售呈現環比改善，進一步強化了我們對全年走勢的信心：上半年企穩、下半年改善。

From a long-term perspective, we will continue to make overseas operations a powerhouse growth driver, and we are unwavering in our goal to evolve Chagee into a global key leader originating from China but resonating universally.

從長期角度來看，我們將持續把海外營運打造為強勁的成長引擎，並堅定不移地朝著將霸王茶姬發展為源自中國、但能引起全球共鳴的全球關鍵領導品牌之目標邁進。

With that, I will now turn the call over to our CFO, Aaron, who will provide detailed insights into the financials. Thank you.

接下來，我將把電話會議交給我們的財務長Aaron，由他為大家提供更詳細的財務解讀。謝謝。

Thank you, Junjie. And hello, everyone. Thank you for joining our earnings call today. And as Junjie outlined, we have gained valuable clarity from 2025 that position us well for 2026 execution. I will focus on remarks on the metrics that support this outlook.

謝謝你，Junjie。各位好。感謝大家參加今天的業績電話會議。正如Junjie所概述，我們從2025年獲得了寶貴且更清晰的認知，使我們能更好地推動2026年的執行。我將重點說明支撐這一展望的關鍵指標。

Before we begin, please note that all amounts are in RMB and all comparisons are on year-over-year basis, unless otherwise stated.

在開始之前，請注意：除非另有說明，所有金額均以人民幣計，所有比較均為同比口徑。

For the full year 2025, total GMV reached RMB31.6 billion, representing a 7.2% increase from RMB29.5 billion in 2024. In the fourth quarter, total GMV was RMB7,322.9 million, reflecting the challenging environment in our home market, but also strong growth momentum overseas.

2025年全年，總GMV達到人民幣316億元，較2024年的人民幣295億元增長7.2%。第四季總GMV為人民幣7,322.9百萬元，反映了我們本土市場的嚴峻環境，同時也體現了海外強勁的成長動能。

As of December 1, 2025, our tea house network totaled 7,453 locations across Greater China and overseas, a 15.7% increase from 6,440 a year ago. Specifically, our franchisee tea house accounts for 6,838 compared to 6,971 in the third quarter, while company-owned tea house reached 615, representing a net increase of 248 sequentially. This change was primarily because we converted some of our franchisee tea house into company-owned ones in China.

截至2025年12月1日，我們在大中華區及海外的茶館網絡共計7,453家門店，較一年前的6,440家增長15.7%。具體而言，加盟茶館為6,838家，較第三季的6,971家有所下降；自營茶館達到615家，環比淨增加248家。這一變化主要是因為我們在中國將部分加盟茶館轉為自營。

In Greater China, average monthly GMV per tea house was RMB337,000 in fourth quarter of 2025 and RMB387,000 for the full year, consistent with same-store and the mix dynamic that Junjie discussed. At the same time, overseas GMV for the fourth quarter grew 84.6% year-over-year to RMB371.9 million. And for the full year, our international market made an increasing meaningful contribution to overall growth.

在大中華區，2025年第四季單店月均GMV為人民幣33.7萬元，全年單店月均GMV為人民幣38.7萬元，與Junjie所討論的同店表現及產品組合變化一致。同時，海外第四季GMV同比增長84.6%至人民幣3.719億元。全年來看，我們的國際市場對整體成長的貢獻日益顯著。

On the revenue line, fourth quarter 2025 net revenue were RMB2,974.5 million compared to RMB3,334.4 million in the same quarter of 2024. For the full year 2025, net revenue increased by 4% to RMB12.9 billion.

在營收方面，2025年第四季淨營收為人民幣2,974.5百萬元，較2024年同期的人民幣3,334.4百萬元下降。2025年全年淨營收增長4%，達到人民幣129億元。

In the fourth quarter, net revenues from franchisee to tea houses were RMB2,434.9 million, representing 81.9% of total net revenues compared to RMB3,095.9 million a year ago. This reflects the cadence of the new product launch and the impact of subsidy competition on the delivery platform.

第四季，來自加盟茶館的淨營收為人民幣2,434.9百萬元，占淨營收總額的81.9%，而一年前為人民幣3,095.9百萬元。這反映了新品推出節奏，以及外送平台補貼競爭帶來的影響。

Net revenue from the company-owned tea house were RMB539.6 million, up 126.2% from RMB238.6 million in the fourth quarter of 2024, mainly as a result of our deliberate development of the company-owned tea house network in both Greater China and overseas markets.

來自自營茶館的淨營收為人民幣539.6百萬元，較2024年第四季的人民幣238.6百萬元增長126.2%，主要由於我們在大中華區及海外市場有計畫地發展自營茶館網絡。

Turning to margin. Our gross profit calculated by excluding cost of material, storage, and logistics from net revenue reached RMB1,581.9 million this quarter, resulting in a gross margin of 53.2%. This marks an improvement from 51.6% last year. The margin improvement results primarily from lower packaging material costs, equipment, and supply chain costs.

接下來談毛利率。本季我們以淨營收扣除原材料、倉儲與物流成本計算的毛利為人民幣1,581.9百萬元，毛利率為53.2%。較去年的51.6%有所提升。毛利率改善主要源於包材成本、設備成本以及供應鏈成本下降。

On operating expenses, share-based compensation expenses this quarter were RMB66.1 million. This reflects our commitment to long-term employee engagement and aligning their goal with stakeholders. To provide greater clarity on underlying operational performance, we will reference non-GAAP operating results with full reconciliation available in our earnings release and the Form 6-K.

在營運費用方面，本季股份支付薪酬費用為人民幣66.1百萬元。這體現了我們對員工長期投入與參與的承諾，並使其目標與利害關係人保持一致。為更清晰呈現基礎營運表現，我們將引用非GAAP營運結果，完整對帳表將於我們的業績新聞稿及Form 6-K中提供。

We recorded an operating loss of RMB35.5 million compared to operating income of RMB642.5 million last year. Based on management accounts, the operating loss was mainly attributable to the operational change in the fourth quarter with an impact of approximately RMB320 million, which includes organizational structure optimization and business model transition costs.

我們錄得營運虧損人民幣35.5百萬元，而去年同期為營運收入人民幣642.5百萬元。根據管理帳，營運虧損主要歸因於第四季的營運變革，影響約人民幣3.2億元，其中包括組織架構優化及商業模式轉型成本。

Excluding share-based compensation expenses, non-GAAP operating income was RMB30.5 million, representing a 1% margin. The above-mentioned margin differences reflects our step-up investment in talent recruitment for global expansion, including brand building to support new product launches, R&D to enhance our offering, and digital infrastructure to elevate customer experience.

剔除股份支付薪酬費用後，非GAAP營運收入為人民幣30.5百萬元，對應1%的營運利潤率。上述利潤率差異反映了我們為全球擴張而加大的人才招募投入，包括支持新品推出的品牌建設、提升產品力的研發投入，以及提升客戶體驗的數位基礎設施建設。

Operating costs for company-owned tea houses were RMB376.8 million, up 130.8% from RMB163.2 million a year ago. As of December 31, 2025, we operated 615 company-owned tea houses, up from 169 at year-end 2024.

自營茶館的營運成本為人民幣3.768億元，較去年同期人民幣1.632億元增加130.8%。截至2025年12月31日，我們營運615家自營茶館，較2024年年底的169家增加。

Other operating costs increased by 26.9% to RMB231.4 million, largely due to higher payroll supporting the expansion of our global tea house network. On a non-GAAP basis, other operating costs accounts for 7.6% of revenue compared to 5.5% a year ago.

其他營運成本增加26.9%至人民幣2.314億元，主要由於為支持我們全球茶館網路擴張而增加的人員薪酬。按非GAAP口徑，其他營運成本佔營收的7.6%，高於去年同期的5.5%。

Sales and marketing expenses for the quarter were RMB373.6 million, down 5.6% from RMB395.7 million a year ago. On a non-GAAP basis, sales and marketing expenses representing 12.2% of revenue compared to 11.9% a year ago.

本季度銷售及行銷費用為人民幣3.736億元，較去年同期人民幣3.957億元下降5.6%。按非GAAP口徑，銷售及行銷費用佔營收的12.2%，去年同期為11.9%。

General and administrative expenses reached RMB635.6 million, up 89% year-over-year from RMB336.3 million. This includes costs associated with a targeted organizational restructuring to position the company for more efficient, leaner operation going forward. The higher G&A reflects our continued investment in global corporate infrastructure and to support international expansion, alongside costs associated with ongoing initiatives to optimize internal process and resources allocation. On a non-GAAP basis, G&A expenses represented 19.7% of revenue compared to 10.1% a year ago.

一般及行政費用達人民幣6.356億元，較去年同期人民幣3.363億元年增89%。其中包括為使公司未來營運更高效、更精實而進行的定向組織重整相關成本。較高的G&A反映我們持續投資全球公司基礎設施以支持國際擴張，同時也包含持續推動優化內部流程與資源配置等計畫所產生的成本。按非GAAP口徑，G&A費用佔營收的19.7%，去年同期為10.1%。

Beyond operating income, we generated positive financial income, reflecting interest earned on our current cash and investment balance as well as a position -- a positive other income, which was mainly comprised of government grants largely in line with prior year period.

除營業利益外，我們亦錄得正向的財務收入，反映我們現金及投資餘額所賺取的利息，以及一項—正向的其他收入，主要由政府補助構成，與去年同期大致一致。

On a non-GAAP basis, excluding share-based compensation, our full year 2025 tax rate was 18.4%. Importantly, we delivered another profitable quarter on both GAAP and non-GAAP basis, making -- marking our 12th consecutive quarter of profitability at the net income level, even though this transitional period.

按非GAAP口徑，剔除股份基礎給付後，我們2025年全年稅率為18.4%。重要的是，我們在GAAP與非GAAP口徑下均再度交出一個獲利季度，使—並標誌著我們在淨利層面已連續第12個季度維持獲利，儘管仍處於此過渡期。

GAAP net income was RMB33.9 million. Non-GAAP net income, excluding RMB66.1 million of share-based compensation expenses was RMB100 million, with a non-GAAP net margin of 3.4% compared to 9.3% last year. For the full year 2025, GAAP net income was RMB1,186.3 million and non-GAAP net income was RMB1,909.9 million.

GAAP淨利為人民幣3,390萬元。非GAAP淨利（剔除人民幣6,610萬元的股份基礎給付費用）為人民幣1億元，非GAAP淨利率為3.4%，去年為9.3%。2025年全年，GAAP淨利為人民幣11.863億元，非GAAP淨利為人民幣19.099億元。

For the fourth quarter, basic and diluted net income per ordinary share were both RMB0.15. On a non-GAAP basis, basic net income per ordinary share was RMB0.50 and diluted net income per ordinary share was RMB0.49.

第四季度，每股普通股基本及攤薄淨利均為人民幣0.15元。按非GAAP口徑，每股普通股基本淨利為人民幣0.50元，每股普通股攤薄淨利為人民幣0.49元。

For the full year 2025, basic net income per ordinary share was RMB6.27 and diluted was RMB6.18. On a non-GAAP basis, basic was RMB10.21 and diluted was RMB10.7.

2025年全年，每股普通股基本淨利為人民幣6.27元，攤薄為人民幣6.18元。按非GAAP口徑，基本為人民幣10.21元，攤薄為人民幣10.7元。

Turning to liquidity. We ended the quarter with RMB7,892.4 million in cash and cash equivalents, restricted cash and time deposits, up from RMB4,868.7 million at year-end 2024. This robust balance sheet provides ample flexibility to execute our growth investment while delivering shareholder return.

接下來談流動性。本季度末，我們的現金及現金等價物、受限制現金及定期存款合計為人民幣78.924億元，較2024年年底的人民幣48.687億元增加。這一強勁的資產負債表為我們在執行成長投資的同時回饋股東提供了充足的彈性。

In closing, our fourth quarter and the full year 2025 results demonstrate our durable profitability and our commitment to returning value to shareholders through disciplined capital allocation. This positions us strongly as we execute our 2026 priorities.

最後，我們第四季度及2025年全年業績展現了我們穩健的獲利能力，以及透過嚴謹的資本配置向股東回饋價值的承諾。這使我們在推進2026年重點工作時具備強勁的有利位置。

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

接下來，我把電話交回給接線員，開始問答環節。接線員，請開始。

(Operator Instructions) Lillian Lou, Morgan Stanley.

(接線員指示) Lillian Lou，摩根士丹利。

(spoken in foreign language)

(以外語發言)

(interpreted) Thank you for your question. We conducted a deep review of our same-store performance, and we think it reflects both external challenges and our internal strategy adjustment pace. As you mentioned, we underestimate the complexity of a company who has over 3,000 employees, which has delayed our strategy rolling out for the year of 2025. For that, I apologize or I feel sorry for the market.

(口譯) 感謝您的提問。我們對同店表現進行了深入檢視，我們認為這反映了外部挑戰以及我們內部策略調整節奏兩方面的因素。如您所提到的，我們低估了一家擁有3,000多名員工的公司之複雜性，這延遲了我們2025年的策略落地。對此，我向市場致歉，或我對市場感到抱歉。

Market competition in 2025 exceeded our expectation. The intense third-party platform competition impacted off-line operations and our short-term market tactics were not as strong as they needed to be. In this environment, we chose not to chase low-price traffic blindly. Instead, we stuck to our premium brand positioning. At the same time, we were very focused on internal adjustments and slow our new product cadence, which did create a short-term pressure on cap volume. Even so, we believe growth based on healthy business model is sustainable, meanwhile, we are reflecting on how to actively adapt to market changes with flexible short-term tactics while maintaining our high-value brand positioning.

2025年的市場競爭超出我們預期。第三方平台的激烈競爭影響了線下營運，而我們短期的市場戰術也未達到應有的強度。在這樣的環境下，我們選擇不盲目追逐低價流量。相反，我們堅持高端品牌定位。同時，我們非常專注於內部調整並放慢新品推出節奏，這確實在短期內對杯量造成壓力。即便如此，我們相信建立在健康商業模式之上的成長是可持續的；同時，我們也在反思如何在維持高價值品牌定位的前提下，以更靈活的短期戰術主動適應市場變化。

We took some detours in new product launch rhythm and marketing execution, and we did not fully keep pace with how fast the market was moving. The positive side is that these lessons has made us more alert and agile. You can already see this in our [Xiangwan] campaign in February, where we reached quickly and capture the opportunity, which shows the team's agility as getting back to the normal level.

我們在新品上市節奏與行銷執行上走了一些彎路，未能完全跟上市場變化的速度。正面的一點是，這些經驗教訓讓我們更警覺、更敏捷。您已可在我們2月的[Xiangwan]活動中看到這一點：我們迅速觸達並把握機會，顯示團隊的敏捷性正在回到正常水準。

For 2026, we're not going to pursue growth for its own sake. We want to get back to a cycle of higher quality operations with same-store recovery as our top KPI, we will focus on forcing store operation, consumer experiences, product innovation and organizational efficiency.

對於2026年，我們不會為了成長而成長。我們希望回到更高品質營運的循環，以同店復甦作為我們的首要KPI；我們將聚焦於強化門店營運、消費者體驗、產品創新與組織效率。

First, on operations, we will focus on existing tea houses slow new openings. We will moderate this year's expansion pace and prioritize healthy operations at current tea houses. For underperforming ones, we will keep optimizing and upgrading. And in parallel, we are building a full-chain quality management system from sourcing all the way to after sales to lay a solid foundation for long-term operations.

第一，在營運方面，我們將聚焦於現有茶館並放慢新店開設。我們會適度放緩今年的擴張節奏，並優先確保現有茶館的健康營運。對於表現不佳的門店，我們將持續優化與升級。同時，我們正建立從採購到售後的全鏈路品質管理體系，為長期營運奠定堅實基礎。

Experience, we are focused on enhancing brand value we won't trade price cuts for traffic. Instead, we attract consumers through high-quality product and innovation and superior in-store service experiences.

在體驗方面，我們專注於提升品牌價值，不會以降價換取流量。相反，我們將透過高品質產品與創新，以及更優質的店內服務體驗來吸引消費者。

Third, on innovation. On the one hand, we will keep innovating across multiple categories while reinforce our core fresh lease milk tea franchise. Our new product signature [Oar Tea], launched in December, provides a strong example with a dormant membership reactivated rate as high as 51%.

第三，關於創新。一方面，我們將在多個品類持續創新，同時強化我們核心的「鮮奶現萃奶茶」加盟主力品類。我們於12月推出的新產品招牌款[Oar Tea]就是一個很好的例子，沉睡會員的喚醒率高達51%。

[May one] in every member buying this product and all comers for helping consumers consume by previous month. Position two weeks over during the upper in the launch week, significantly exceed the historical average for all new products. This example proves that our product in line facility is our coal drivers for medicating cycles and we're working for sales.

[May one]每位會員購買該產品，以及所有到店顧客，均有助於帶動消費，相較前一個月有所提升。上市首週的表現位居前段，且在上市後兩週仍維持在較高水準，顯著超過所有新品的歷史平均。這個案例證明，我們的產品上新能力是推動消費週期、帶動銷售的核心驅動力。

On the one hand -- on the other hand, we are exploring more consumer scenarios such as galleries, ready, day and other moments, and extending to all the occasions to deepen the brand warrants and texture in consumers' life.

另一方面——我們也在探索更多消費情境，例如逛展、即買即飲、日常等不同時刻，並延伸至更多場合，以加深品牌在消費者生活中的存在感與觸點。

Last, on the efficiency, we have now completed the major organizational adjustments, and we will continue to refine the structure so that we can maximize efficiency. Overall, we expect 2026 to be a year where we are very focused on high-quality growth rather than rapid expansion for scale, and our goal is to keep revenue and profit broadly flat year on year. We're seeing same-store growth trend stabilized at the operating level. And we believe in the second half, the overall same-store sales and operation will be healthier.

最後，關於效率方面，我們目前已完成主要的組織調整，接下來將持續優化架構，以最大化效率。整體而言，我們預期2026年將是聚焦高品質成長、而非為了規模而快速擴張的一年；我們的目標是收入與利潤同比大致持平。我們看到在營運層面，同店成長趨勢已趨於穩定。我們也相信在下半年，整體同店銷售與營運狀況會更健康。

And also, we want to focus that our priority for this year is to secure the market share rather than for the net profit. So if we have a conflict used be three market share versus profitability, we will choose the formal one.

另外，我們也想強調，今年的優先事項是確保市占率，而不是淨利。因此，如果市占率與獲利能力之間出現取捨衝突，我們會選擇前者。

To come up, the priority for this year 2026 is to both elevate the user experiences and keep the same store sales getting back to the healthy level. (Operator Instructions)

總結來說，2026年今年的優先事項，是同時提升用戶體驗，並讓同店銷售回到健康水準。(Operator Instructions)

Xiaopo Wei, Citi.

Xiaopo Wei，花旗。

(interpreted) Thank you, [Java]. In your prepared remarks, you briefly touched base on the business model transition. And could you share with us what have been motivating you to execute such a business model transition? And could you give us more update on the status of our transition.

(口譯)謝謝，[Java]。在您準備好的發言中，您簡要提到了商業模式轉型。能否與我們分享，推動您執行這項商業模式轉型的動機是什麼？以及能否請您更新一下我們轉型的進展狀況。

(interpreted) Thank you. Our model transition has one core motivation that is to build true shared risk, shared reward strategic partnership with franchisees.

(口譯)謝謝。我們的模式轉型有一個核心動機：與加盟商建立真正「共擔風險、共享回報」的策略夥伴關係。

Last year, industry price was in wars intensified franchisees face the dual pressure of sales decline and rising costs, the old model offered insufficient buffer in downturn. So we restructured the incentive shifting from traditional supply relation to a GMV-based revenue share model. In the new model, brand fees do go up slightly, but those fees come with two strong offsets. First, we offer enhanced discount management through marketing intelligence and targeted campaigns. Second, we cut raw material cost ratio at franchisees and sharply. Now our revenue is up and down with their GMV sales. When they succeed, we succeed.

去年，行業價格戰加劇，加盟商同時面臨銷售下滑與成本上升的雙重壓力，舊模式在景氣下行時提供的緩衝不足。因此我們重構了激勵機制，將關係從傳統的供應關係轉為以GMV為基礎的分成收入模式。在新模式下，品牌費會小幅上調，但這些費用有兩項強力的對沖措施。第一，我們透過行銷智能與精準活動，提供更強化的折扣管理。第二，我們大幅降低加盟商的原材料成本占比。現在，我們的收入會隨著他們的GMV銷售上下波動。他們成功，我們就成功。

We fully roll out the new model. This unites our interest in both. We look forward to even tighter collaboration to drive sustained GMV growth.

我們已全面推行新模式。這使我們雙方的利益更加一致。我們期待更緊密的合作，以推動GMV持續成長。

CJ Lin, CICC.

CJ Lin，中金公司。

(interpreted) So thank you, management. My question is that can you provide an update on the performance of our overseas markets? And what are your expansion plans in (inaudible) domestic and overseas market?

(口譯)謝謝管理層。我的問題是：能否更新一下我們海外市場的表現？以及在（聽不清）國內與海外市場方面，你們的擴張計畫是什麼？

(interpreted) Thank you for your question. Let me start with our overseas performance in. In the fourth quarter, our international markets showed strong and healthy growth. We added a net 83 tea houses bringing the total to 345 in the overseas market. GMV grew 23.9% quarter over quarter, and 84.6% year over year. More importantly, the average monthly GMV as for overseas tee houses outperformed the domestic ones. Preliminarily (inaudible) capability and strong vitality of our business model overseas.

(口譯)謝謝你的提問。我先從我們的海外表現開始。第四季，我們的國際市場呈現強勁且健康的成長。我們淨新增83家茶館，使海外市場門店總數達到345家。GMV環比成長23.9%，同比成長84.6%。更重要的是，海外茶館的月均GMV表現優於國內門店。初步（聽不清）顯示我們商業模式在海外具備可行性與強勁活力。

In 2025, we entered four new markets: Indonesia, the United States, Vietnam and Philippines. Currently, our overseas footprint covers seven countries: Singapore, Malaysia, Thailand, Indonesia, Vietnam, Philippines and the United States. In Vietnam, our first tea house opening generated over 20,000 cuts across three tea houses in the first three days. with brand voice rapidly climbing to second in the local tea category. At year-end 2025, our Hello Kitty IP co-branded Coco Oolong, launched pro five Southeast Asian countries achieving a 75% new product sales shared on launch day in Thailand of 38.3% in the Asia Pacific region over the first three days, topping regional key brand voice. These achievements have demonstrated that Chagee brand power can transcend broader.

2025年，我們進入了四個新市場：印尼、美國、越南與菲律賓。目前，我們的海外版圖覆蓋七個國家：新加坡、馬來西亞、泰國、印尼、越南、菲律賓以及美國。在越南，我們首家茶館開業後的前三天，三家門店合計售出超過20,000杯，品牌聲量迅速攀升至當地茶飲品類第二名。在2025年年底，我們推出Hello Kitty IP聯名的Coco烏龍，於東南亞五個國家同步上市；在泰國上市當天新品銷售占比達75%，並在前三天於亞太地區達到38.3%，登頂區域關鍵品牌聲量。這些成果證明，Chagee的品牌力可以跨越更廣泛的市場。

Our [great] 2026 strategy into domestic national for domestic markets, we focus on is are already tightening quality. This way, we will moderate domestic expansion pace and shift our focus to same-store sales growth. and ensuring store-level health and profitability. We plan about 300 net new tea house opening in strategic locations in Mainland China. The number is not the goal. We prioritized healthy profitability for each new tea house while supporting existing same-store growth through optimizing and reinforcing key location resources. Additionally, we may make strategic adjustments to our expansion pace based on our performance this year.

我們在2026年的國內策略方面，對於國內市場的重點是進一步收緊品質管理。因此，我們將適度放緩國內擴張節奏，並把重心轉向同店銷售成長，同時確保門店層面的健康度與獲利能力。我們計畫在中國大陸的策略性地點淨新增約300家茶館。數量不是目標。我們優先確保每一家新店的健康獲利，同時透過優化並強化核心點位資源，支持既有門店的同店成長。此外，我們也可能根據今年的經營表現，對擴張節奏做出策略性調整。

Overseas expansion will continue at a steady pace. In the fourth quarter, we added 21 houses in Malaysia, to Indonesia, 13 in Thailand, 12 in Vietnam, and 11 in Singapore. This momentum carries into 2026. Thailand is now expanding from Bangkok to Chang Mai, and our Korea debut is planned for the second quarter, making it our eighth overseas market. 2026 is our foundation building year. We target about 200 net new tea houses overseas. More importantly, in every market we enter, we will continue to refine business model and build a replicable template for future scale.

海外擴張將持續以穩健節奏推進。第四季，我們在馬來西亞新增21家、印尼新增20家、泰國新增13家、越南新增12家、新加坡新增11家。這股動能將延續至2026年。泰國目前正從曼谷擴展至清邁，而我們也計畫於第二季在韓國首次亮相，使其成為我們第八個海外市場。2026年是我們打基礎的一年。我們海外目標為淨新增約200家茶館。更重要的是，在我們進入的每一個市場，我們都將持續打磨商業模式，並建立可複製的模板，以支撐未來規模化發展。

Lastly, in terms of globalization, I have to add on a little bit of touch. We are doing something that is a must. This is something we have to do, but it is difficult. So we're not only investing the overseas market in several -- in the next several years. We're actually investing in the next decades, especially the market. And so we're not talking about a short-term sprint, but a long lasting marathon for our global expansion. And the thing of the priority for our overseas market is to refine the business model as we go. And also the priority is to keep a healthy (inaudible) unit economics, especially for the US market, which is the second largest market, except for China.

最後，就全球化而言，我還想再補充一點。我們正在做一件必須做的事。這是我們不得不做的事情，但確實很困難。因此，我們不只是要在未來幾年投資海外市場。我們其實是在投資未來幾十年，尤其是海外市場。所以我們談的不是短期衝刺，而是我們全球擴張的一場長期馬拉松。而海外市場的優先事項之一，是在推進過程中持續打磨商業模式。另一個優先事項，是維持健康的（聽不清）單店經濟模型，特別是美國市場——除中國之外的第二大市場。

We believe there are a lot of business model that we can adopt like license or franchisee, but we choose the hard way to bring it out because we not only want to open dozens or hundred stores in the US, but we want to bring the drinking habits of tea into the US market. But like has been doing for the past several years when they entered into the Chinese market.

我們相信有很多商業模式可以採用，例如授權或加盟，但我們選擇了更難的一條路去親自落地，因為我們不僅想在美國開出數十家或上百家門店，更希望把喝茶的習慣帶入美國市場。就像他們在過去幾年進入中國市場時所做的那樣。

So we chose we chose the route that is more difficult and requires higher CapEx, and we might make me safe. But I'm here to ask for the capital markets to give us more confidence and understanding about our overseas market expansion. Thank you.

因此我們選擇了更困難、且需要更高資本支出（CapEx）的路徑，而這可能會讓我看起來更保守。但我在此希望資本市場能對我們的海外市場擴張給予更多信心與理解。謝謝。

Lastly, to add on a little bit, chassis not adopting the normal way to grow, especially as a listing company. But we believe we want to bring the higher value and making Chagee a high-value branding oriented company in the future. In the short term, we believe most of the capital markets or investors is focusing on P&L. In the long term, Chagee wants to grow the company as a new category in year, which not only provides freshly-brewed drinks to our customers, but also to free a new luxstyle to our customers such as RTV and also different scenarios of consumption.

最後再補充一點，Chagee 並沒有採用常規的成長方式，尤其作為一家上市公司。但我們相信，我們希望帶來更高的價值，並在未來把 Chagee 打造成一家以高價值品牌為導向的公司。短期來看，我們認為多數資本市場或投資人會更關注損益表（P&L）。長期來看，Chagee 希望把公司培育成一個新的品類：不僅為顧客提供現萃飲品，也為顧客帶來一種新的生活方式，例如 RTV，以及不同的消費情境。

So in the short term, we might see volatility from our financial performance. But in the long term, we believe Chagee has the possibility to evolve from a freshly root maker to a lifestyle change worldwide to the global consumers. So hopefully, we have your -- all the investors long-term support, and we welcome your comments and your advice as well. Thank you.

因此短期內，我們的財務表現可能會出現波動。但長期來看，我們相信 Chagee 有機會從一家現萃飲品製造者，演進為面向全球消費者的生活方式品牌。因此也希望能獲得各位投資人的長期支持，我們也歡迎各位的意見與建議。謝謝。

Jessie Xu, JPMorgan.

Jessie Xu，摩根大通。

(interpreted) Jessie from Morgan. 2025 was a tough year, but I think it's fair to say that the most difficult time seems already behind us. investors had been looking forward to a marginal improvement in same-store sales trends. And I think 4Q plan already provides some reasons for investors to turn more positive from here. Management mentioned cost reduction initiatives on the earnings call last quarter. So could the management introduced the concrete measures what did we do, how it's progressing? And any initial feedback or efficiency gains from these initiatives? And lastly, how should we -- the OpEx ratio for this year? Thank you.

（口譯）我是摩根的 Jessie。2025 年是艱難的一年，但我認為可以說最困難的時刻似乎已經過去了。投資人一直期待同店銷售趨勢能出現邊際改善。我認為第四季的規劃已經為投資人從此轉向更正面提供了一些理由。管理層在上一季的財報電話會議中提到降本增效的舉措。能否請管理層介紹一下具體措施：我們做了什麼、進展如何？以及這些舉措是否已有初步回饋或效率提升？最後，今年的營運費用（OpEx）比率我們應該如何看待？謝謝。

Thank you for your question. Our cost reduction and efficiency efforts are not short-term fixes for a single-quarter performance. they're part of a bigger long-term push to make the organization healthy overall. Things are moving forward well, and we're already seeing some early results.

謝謝你的提問。我們的降本與效率提升工作不是針對單一季度表現的短期修補，而是更大、長期推動的一部分，目標是讓整個組織整體更健康。目前進展良好，我們也已經看到一些初步成果。

On the organization side, we've wrapped up Phase 1. That means combining mid- and back-office functions and cutting out duplicative work. As Junjie just mentioned, we opened a lot of new stores during the year of 2023 and 2024. And in 2025 alone, we opened more than 800 stores as well. So now we are focusing on the same-store sales and shifting more resources to the front line for better execution and faster response. This is not about a smarter structure, not just trimming headcount.

在組織層面，我們已完成第一階段。這意味著整合中台與後台職能，並消除重複性工作。正如俊傑剛才提到的，我們在 2023 年和 2024 年開了很多新店。而僅在 2025 年，我們也新開了超過 800 家門店。因此現在我們把重點放在同店銷售，並將更多資源轉向一線，以提升執行力與反應速度。這不是單純裁減人力，而是打造更高效的組織架構。

We've put in stricter controls and better budgeting. It covers everything from targeted marketing spending down to a daily operation. Looking at 2026, we expect our overall fee rate to stay stable, especially for [sota] marketing, we'll keep investing in this area. And also, we'll keep on investing in efficiency and [crude] shows without hurting core growth areas. The game is better quality inputs leading to stronger output, no matter the environment.

我們也導入了更嚴格的管控與更完善的預算管理。涵蓋從精準的行銷投放到日常營運的各個環節。展望 2026 年，我們預期整體費用率將保持穩定，特別是在 [sota] 行銷方面，我們會持續投入。同時，我們也會在不傷害核心成長領域的前提下，持續投資效率提升與 [crude] 展示。無論環境如何，關鍵在於以更高品質的投入帶來更強的產出。

For the G&A expenses, our goal is to keep optimizing the overall efficiency with the precondition that without impact our overseas market expansion. Thank you.

至於管理費用（G&A），我們的目標是在不影響海外市場擴張的前提下，持續優化整體效率。謝謝。

Thank you. As there are no further questions, I'd like to hand the conference back to management for closing remarks.

謝謝。由於沒有進一步的問題，我想把會議交回管理層作結語。

Thank you, again, for joining our call today. If you have any further questions, please feel free to asked for requests through our IR website. We look forward to our next call with everyone. Have a great day ahead. Thank you.

再次感謝各位今天參與我們的電話會議。若您還有任何問題，歡迎透過我們的投資人關係（IR）網站提出需求。我們期待與各位在下一次電話會議再見。祝各位接下來一切順利。謝謝。

Thank you.

謝謝。

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

今天的活動到此結束。感謝各位參與。您現在可以斷線。