The stock gained 4.3% following Chagee's Q2 report, reflecting investor approval of the company’s product innovation and overseas growth, despite sequential GMV declines in Greater China.
- Revenue increased 2.5% year-over-year to RMB 3,415 million but declined 3.7% quarter-over-quarter.
- GAAP net income margin improved substantially to 13.6% from 2.3% last year; non-GAAP net margin remained stable sequentially at 14.3%.
- Total GMV dropped 3.3% sequentially; Greater China GMV fell 4.5%, while overseas GMV surged 18.2% sequentially and 114.3% year-over-year.
- A record 17 new products were launched in the quarter, including specialty deals, gelato, and classic tea returns, which drove notable category and weekend GMV growth.
- New product highlights included Melon Oolong tea with 110 cups per teahouse per day in its debut week and Longjing tea latte’s sequential GMV lift of ~25% over a 14-day period.
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