Chagee (CHA.US) Q1 2026 Earnings Conference Call

CEO Junjie Zhang highlights Chargee's focused strategy for 2026, aiming at delivering long-term value and concentrating on perfecting customer experience. The company's goal for the year is to refine every touchpoint with customers to earn their trust and loyalty.

COO Aiden Ying reports Q1 total revenue of RMB 35.46 billion, an increase of 4.5% year-over-year. Non-GAAP net profit was RMB 5.07 billion, with a net profit margin of 14.3%. Total GMV was RMB 79.18 billion, driven by strong overseas growth of 139%. The COO also highlights the operational strategy focused on cost efficiency, new product launches, market-specific strategies, and improving store performance.

CEO Zhang responds to questions on Q1 performance, revealing a member base of 248 million with 50 million active members. Active members showed a repurchase rate of 42.3%, contributing to 76% of total orders.

CEO Zhang attributes Q1's improved same-store GMV to successful promotional events such as the Qianwan campaign, which generated daily average orders of 3 million during its peak. The growth was also supported by the launch of 12 new products in Q1 and increased consumer engagement in morning and evening sales campaigns. Overseas markets saw significant growth, led by localized product launches like Red Oolong Tea in Singapore.

The transition to a GMV-based revenue-sharing model has increased franchise fee rates while reducing material cost markups. This change has not negatively impacted profitability, with gross margins remaining steady at 55.6%. The COO emphasizes the alignment of company and franchisee interests under the new model, with mutual benefits in profitability and risk sharing.