On November 28th, Chagee released its Q3 2025 financial report. The report shows that despite the company's impressive operational performance, with membership numbers increasing by over 30% year-on-year and total store count growing by 26% year-on-year, both revenue and profit have declined. Meanwhile, the profitability of single stores in the Greater China region has worsened, with the average monthly GMV per store in the Greater China region dropping by 28.3% year-on-year.
Notably, this quarter, Chagee's overseas business performed strongly, with GMV exceeding 300 million yuan, a year-on-year increase of 75.3% and a quarter-on-quarter increase of 27.7%, achieving over 75% high growth for two consecutive quarters, demonstrating the effectiveness of its overseas strategy.
Financial Performance:
<blockquote>
<ul>
<li>Net revenue of 3.208 billion yuan (450.7 million USD), a year-on-year decrease of 9.4%</li>
<li>Non-GAAP net profit of 502.8 million yuan (70.6 million USD), a year-on-year decrease of 22.2%</li>
<li>Operating profit margin narrowed significantly from 22.4% to 14.2%</li>
</ul>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/04bbfddb-31a8-4265-9fbe-0da06a0388ca.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/04bbfddb-31a8-4265-9fbe-0da06a0388ca.png"/>
</blockquote>
Core Operational Data:
<blockquote>
<ul>
<li>As of September 30, total store count reached 7,338, a year-on-year increase of 25.9%</li>
<li>Total GMV was 7.930 billion yuan, a year-on-year decrease of 4.5%, with overseas GMV at 300.3 million yuan, a year-on-year increase of 75.3% and a quarter-on-quarter increase of 27.7%</li>
<li>Average monthly GMV per store in the Greater China region fell to 378,500 yuan, down 28.3% from 528,000 yuan in the same period last year</li>
<li>Registered members reached 222 million, a year-on-year increase of 36.7%</li>
</ul>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/f2fbba5c-75fc-4d9a-bbfa-0f85c54d51c0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/f2fbba5c-75fc-4d9a-bbfa-0f85c54d51c0.png"/>
</blockquote>
<h2>Revenue and Profit Decline, Profit Margin Under Pressure</h2>
The company's quarterly financial report shows a dual decline in revenue and profit. Total revenue was 3.208 billion yuan, down 9.4% year-on-year, indicating a slowdown in overall growth momentum.
More concerning is the weakening of profitability, with operating profit at 454 million yuan, and the profit margin narrowing significantly from 22.4% in the same period last year to 14.2%; GAAP net profit also fell to 398 million yuan, with a net profit margin of only 12.4%, significantly lower than 18.3% in the same period last year. As the revenue scale shrinks, the pressure on profits becomes more pronounced.
From a business structure perspective, in the domestic market, franchise business revenue declined by 14.8% , primarily due to the &#34;intensified subsidy competition&#34; from domestic food delivery platforms leading to a drop in sales.
Although the company has reduced material and logistics costs by 16.1% through supply chain optimization, the cost pressure from expansion is more significant. The expansion of directly operated stores has driven related operating costs up by 94.7%, coupled with factors such as stock-based compensation pushing management expenses up by 59.7%, collectively squeezing profit margins
<h2>Scale expansion cannot hide efficiency crisis, overseas expansion becomes a highlight</h2>
In this quarter, the company's operations showed a significant characteristic of &#34;scale growth but efficiency decline.&#34; With the total number of stores reaching 7,338, a year-on-year increase of 25.9%, and the number of members increasing by 36.7% year-on-year to 222 million, the total GMV declined by 4.5% year-on-year to 7.930 billion yuan. Specifically, the company's growth structure shows differentiation. The GMV in mainland China decreased by 6.2% year-on-year, while overseas GMV surged by 75.3% year-on-year, but due to its only 3.8% share, its overall impact is limited.
It is noteworthy that the operational quality in the Greater China region has declined, with the average monthly GMV per store dropping to 378,500 yuan, same-store GMV growth rate at -27.8%, and the number of active members decreasing by 8.8% month-on-month, indicating a deterioration in the operational efficiency of its core market.
The overseas market is the main growth highlight during the reporting period, but its strategic value is still in the investment cultivation stage. The direct sales model adopted by the company to accelerate overseas penetration has driven revenue growth in direct sales, but it has also directly led to a significant increase in related operating costs

Chagee Q3 revenue reached 3.208 billion yuan, a year-on-year decrease of 9.4%. Non-GAAP net profit was 502.8 million yuan, a year-on-year decrease of 22.2%. The total number of company stores reached 7,338, a year-on-year increase of 25.9%, with membership exceeding 222 million. The single-store GMV in the Greater China region declined by 28.3%, while overseas GMV surged by 75.3% year-on-year

- On November 28, 2025, Bawang Chaji released its Q3 financial report, showing a 9.4% decline in net revenue to 32.08 billion RMB despite a 30% increase in membership and a 26% rise in store count.  
- The company's profitability weakened significantly, with operating profit margins dropping from 22.4% to 14.2%, and average monthly GMV per store in the Greater China region fell by 28.3%.  
- However, overseas operations thrived, achieving a GMV of over 300 million RMB, marking a 75.3% year-on-year increase, indicating the effectiveness of its international expansion strategy.

Chagee Q3 revenue decreased by 9.4% year-on-year, while overseas GMV increased by over 75% year-on-year | Financial Report Insights