Chagee Holdings Ltd.
CHA · Retail-Eating & Drinking Places · EDGAR filings ↗
Grade
B80Scaled premium freshly-made tea franchise (7,453 teahouses) with top-tier margins but decelerating store economics.
Strengths
- Top-percentile profitability: net margin 9.1% (100th), ROA 10.2% (100th), operating margin 10.4% (90th)
- Massive cash ($7.7B, 100th pct) and strong FCF ($1.2B, 92nd pct) with a clean balance sheet
Risks
- Net income fell 53% and average monthly GMV per teahouse dropped sharply (512k→387k RMB)
- Heavy franchise reliance, delivery price-war pressure and PRC consumer cyclicality
Notable findings
- Customer concentration~46% of revenue from one customer/distributor — 4% and 46
- Strong balance sheetStrong balance sheet — $1.1B cash & investments
Key metrics
Operating margin
10.4%
Net margin
9.1%
Return on equity
16.0%
Return on assets
10.2%
Revenue growth (QoQ)
8.6%
Net-income growth
-51.4%
Current ratio
3.1×
Free cash flow
$175M
EBITDA
$214M
Tangible book value
$1.0B
Cash & investments
$1.1B
Stock comp / revenue
5.6%
Recent filings
| Form | Filed | Period | Accession |
|---|---|---|---|
| 20-F | 2026-04-29 | 2025-12-31 | 0001104659-26-050766 ↗ |