Q4 2025 Chagee Holdings Ltd Earnings Call

March 31, 2026

Speaker #1: 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: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Chagee’s Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be hosting a question and answer session after management’s prepared remarks. Please note that today’s event is being recorded. 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.

Speaker #1: At this time , all participants are in a listen only mode . We will be hosting a question and answer session after management's prepared remarks .

Speaker #1: Please note that today’s event is being recorded. With that, I will now turn the call over to the first speaker today, Miss Alicia Guo, Investor Relations Director of the company.

Speaker #1: Please go ahead , madam

Speaker #2: Thank you . Hello , everyone , and welcome to today's fourth quarter 2020 earnings call . With us today are Mr. Junjie Zhang , our CEO .

Alicia Guo: Thank you. Hello, everyone, and welcome to Chagee's Q4 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. Hongfei Huang, our CFO. The company's financial and operating results were released by the newswire earlier today and are currently available online. 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 obligations to update these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures. With that, I will turn the call to our CEO, Mr. Junjie Zhang.

Speaker #2: Mr. Dong Fang Yi , our CEO , global executive president , and CEO of Greater China Region . And Mr. Aaron Huang , our CFO .

Speaker #2: The company's financial and operating results were released by the newswire earlier today, and are currently available online. Before we continue, I refer you to our Safe Harbor statement in the earnings press release, which is applied to this call.

Speaker #2: Any forward-looking statements that we make on this call are based on assumptions as of today and do not undertake any obligation to update these statements. Also, this call includes discussions of certain non-GAAP financial measures.

Speaker #2: Please refer to our earnings release , which contains a reconciliation of non-GAAP measures to GAAP measures With that , I will turn the call to our CEO , Mr. Junjie Zhang , please go ahead , sir .

Junjie Zhang: Please go ahead, sir. Hello, everyone. Thank you all for joining Chagee's Q4 2025 Earnings Conference Call. 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. We took a few detours and at times 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.

Alicia Guo: Please go ahead, sir.

Speaker #3: Huang Ying

Speaker #2: Hello, everyone. Thank you all for joining. Chagee. Fourth quarter 2020 Earnings Conference Call.

Junjie Zhang: [Foreign language]

Alicia Guo: Hello, everyone. Thank you all for joining Chagee's Q4 2025 Earnings Conference Call.

Speaker #3: So the full meaning of the 'of.' Can you fancy? Sure.

Junjie Zhang: [Foreign language]

Alicia Guo: 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. We took a few detours and at times 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.

Speaker #2: Over the past years, the market has experienced significant volatility, and the competitive landscape has grown even more complex. As a new listed company, we indeed encountered some ups and downs on our 2025 journey.

Speaker #2: Took a few detours and at times 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.

Junjie Zhang: 回顾公司的发展历程，2023到2024年，我们中国区处于高速的扩张期，核心策略是高质量的门店扩张，目标是快速占领中国各大商圈的核心点位，借助标准化的商业模式迅速铺开。这一策略取得了显著的成效。我们在全国拥有七千多个核心商铺的点位，凭借伯牙绝弦这款百亿级的爆品，成功定义了原叶鲜奶茶品类，累计了近2.4亿的会员，这些都构成了我们坚实的竞争壁垒。

Speaker #3: Due to the Gold Channeling education law. Audience and—

Speaker #2: Looking back at our journey, 2023 to 2024 were a period of rapid expansion in the Greater China market. Our primary strategy was quality.

Alicia Guo: Looking back at our journey, 2023 to 2024 were a period of rapid expansion in Greater China markets. 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. Through BOYA Tea Latte, our blockbuster product, we successfully pioneered the fresh tea leaves 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.

Speaker #2: See how the expansion, with the core objective of securing prime locations across major commercial districts nationwide, is leveraging a standardized business model to achieve rapid scale.

Speaker #2: This strategy delivered significant results. We now have over 7,000 core T locations across mainland China, and through Variety 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.

Speaker #2: These achievements have formed the foundation of our durable, competitive moat.

Junjie Zhang: 过去一年，市场经济进入一个新的阶段，消费者进入双轨消费的K型分化，一边是消费降级的极致性价比，另一边是产品服务升级的极致体验。而外卖大战也加剧了这一份态势的分化。对霸王茶姬而言，我们在极致体验上本来是有明显的优势基础的，但很可惜啊，过去我们并没有在这里深耕细作。我们拥有着七千多个最核心的线下体验空间，同时基本款的原叶鲜奶茶产品线支撑了90%以上的收入来源。同时我们也拥有着庞大且忠实的用户会员群体，完全具备多品类扩张的基础条件与极致线下体验的深度运营。

Speaker #3: The key Fenghua in 2021, doubling. 2,000 and two winning.

Alicia Guo: Over the past year, the market entered a new phase, 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 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 led by BOYA, 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.

Speaker #4: Over the past year , the market .

Speaker #2: We have entered a new phase, and consumers have shown a K-shaped divergence in spending habits. One side is chasing extreme value, while the other is seeking premium experiences through superior products and services.

Speaker #2: The ongoing price war among the third party delivery platforms has further intensified this divergence . For Shaji , we have a strong foundation in premium experiences with over 7000 prime offline locations , a core fresh T leaf diet driving over 90% of revenue , and a loyal membership base .

Speaker #2: We underinvested here before. Now we are ready to expand categories and fully unlock our offline potential.

Junjie Zhang: 去年公司基本盘稳固后，迈入高质量发展的阶段。我们逐渐开始意识到，过去攻城略地时期形成的组织惯性已经不足以支撑新一阶段的精细化的管理和深度运营的新要求。因此，从2025年的下半年开始，我们推行了一系列的内部调整，包括组织架构的优化、商业模式的更新、切换，并战略性地放缓了我们的新品推出的节奏，这客观上影响了我们部分的收入。与此同时，我们确实也低估了外卖平台的价格战对线下业态造成的冲击。但我们依然坚持长期主义，不盲目跟随，坚持自身的战略定力。今天我更希望和大家分享我们从这些经历中沉淀下来的清晰认知，以及基于此制定的更具确定性的战略方向与2026年的策略。我们坚信，一个敢于直面问题、善于总结经验并且思路越发清晰的团队，才是真正值得被长期信任，也才能够在时间的维度上持续为股东、为用户、为社会创造价值。

Speaker #3: Using The Most Q1 Juan Pablo shipping To In the thousand 20 . 22 , we change E.G. to . In the . The function you .

Speaker #3: In the Changing . 20 . 20 . Two . We

Alicia Guo: Last year, strong foundation solidified and we entered high-quality development. We recognized that expansion-phase inertia no longer met the demands of refined management and operational excellence. Starting H2 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 wars' effect on offline sales. We stayed true to our long-term strategy, avoiding short-term trends. 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 sharpens its thinking deserves long-term trust. In this way, we aim to deliver enduring value to our shareholders, our consumers, and society at large.

Speaker #2: Solidified, and we entered high-quality development. We recognize that expansion faced inertia; it no longer met the demands of refined management and operational excellence.

Speaker #2: Starting the second half of 2025, we advanced a series of internal adjustments, including organizational restructuring and business model transitions, while strategically slowing down the pace of new product launches.

Speaker #2: This had an immeasurable impact on our revenue. We also underestimated delivery platform price wars and the effect on offline sales. We stayed true to our long-term strategy, avoiding short-term trends.

Speaker #2: 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 this thinking delivers long term trust in this way , we aim to deliver enduring value to our shareholders .

Speaker #2: Our consumers and society at large.

Junjie Zhang: 现在我可以充满信心地告诉大家，我们内部调整已经基本完成，经营节奏和经营的秩序已经回归稳健。展望2026年，我们的核心战略坚定不移地坚持高价值品牌定位，聚焦用户价值，用心打磨好与用户相关的每一件事情。具体来说，我们将围绕品牌升级、品类创新、场景渗透、体验升级和组织能力提升五大方向，让品牌与用户的连接更加紧密真实，推动高质量的增长。

Speaker #3: An On the In Way to your using Major 2022 . Junjie Zhang . Huda . Huda . Function . Huda . Lian.z

Speaker #4: I can now share with

Alicia Guo: I can now share with confidence that our internal realignment is largely complete, and we have returned to steady operations and order. Looking ahead to 2026, our core strategy will remain centered on high-value brand positioning and consumer value, with full 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.

Speaker #2: Confidence that our internal realignment is largely complete and we have returned to stable operations in order. Looking ahead to 2026, our core strategy will remain centered on high-value brand positioning and consumer value.

Speaker #2: With full focus on refining everyday , every detail that shapes the consumer experience . Specifically , we will focus on five key areas brand upgrades , product innovation scenario , expansion experience enhancement , and organizational improvements .

Speaker #2: These initiatives will bring us closer to our customers and support sustainable, high-quality growth.

Junjie Zhang: 在品牌层面，我们将针对标准门店和个性门店推出新型店型，并搭配差异化的产品组合，以满足不同场景和不同时段的情绪需求，从而全方位提升线下触点的体验感，利用第三空间形成与用户的价值共振，让消费者真正能够感受到霸王茶姬的独特魅力。

Speaker #3: In Challenging The

Speaker #4: At the brand level ,

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

Speaker #2: We will launch new formats for regular and personalized tea houses, complemented by varied product lines to suit diverse occasions in motion.

Speaker #2: We will elevate the offline experience, creating a true third space that connects emotionally with customers and showcases its unique charm.

Junjie Zhang: 在品类创新上，产品即人群。我们锁定十八至三十岁的年轻用户群体需求为主，进行多品类的产品创新，如茶特调、茶拿铁等产品，以满足核心目标用户在功能、情绪和场景的多层次需求。

Speaker #3: Boarding We do the transition to The Changing

Alicia Guo: On product, we will stay true to the logic that products equal people. We will innovate across categories by anchoring our 18 to 30 demographics core demands, and develop new offerings with special deals, tea lattes, and more, aligning our portfolio with consumers' multi-scenario lifestyle.

Speaker #2: Product . We will stay true to the logic that product equals people . We will innovate across categories by anchoring our 18 to 30 demographics .

Speaker #2: Core demand and develop new offerings in special deals , Pilates , and more . Aligning our portfolio with consumers . Multi scenario lifestyle

Speaker #3: By changing the Changing Channel to one . Zero one . Xiao yuan Lee . Dan Li . You To the . Can .

Junjie Zhang: 在场景的渗透方面，我们将针对早晚场景单独开发产品，响应早餐时段提神茶拿铁、晚餐时段低因饮品的需求，形成完整的全时段产品矩阵。同时持续在职场、人生大事件、生日、校园、婚礼等多元化的场景发力，通过场景化的产品与营销，完成品牌心智的深度渗透，让霸王茶姬真正融入茶友的日常与重要时刻。

Speaker #2: We will penetrate new scenarios with morning and evening specific products such as energizing morning tea and evening low caffeine drinks to complete our all day lineup , we will also grow into workplaces , celebrations , birthdays , schools and weddings .

Alicia Guo: We will penetrate new scenarios with morning and evening specific products such as energizing morning tea lattes and evening low caffeine drinks. To complete our all-day lineup, we will also grow into workplaces, celebrations, birthdays, schools, and weddings, leveraging scenario marketing to win lasting mindshare and weave Chagee into everyday and special occasions.

Speaker #2: Leveraging scenario marketing to win lasting mindshare, and with strategy integrated into everyday and special occasions.

Junjie Zhang: 体验升级与组织能力是战略落地的基石。体验升级分为环境与服务两大板块。环境端聚焦氛围优化和产品多元化，通过标杆店、旗舰店、个性店的差异化设计，一店一设计，营造丰富体验。服务端推进售后体系升级与全员培训，开通SVIP专线，将售后渠道打造成为用户反馈的核心入口，让用户建议成为我们优化工作的重要依据，真正做到以用户需求驱动服务升级。

Speaker #3: G. Feng, Y. Huang, Jing U for we, and Zhao Feng Wei, your for an the efficiency in the. Feng 14. To show how decisions you champion SIP.

Speaker #3: Xuan Shen Zhang, show Fang Yong. Who can you... Are...

Alicia Guo: Consumer experience and organizational strength underpin our strategy. We'll enhance tea house environments through improved ambience and differentiated design for flagship, landmark, and boutique tea houses. On service, we will overhaul after-sale systems, rolling out company-wide training, launch a SVIP hotline, and create feedback channels that directly shape improvements based on real consumer input.

Speaker #2: Our experience and organizational strength underpin our strategy. We will enhance healthy environments through improved ambiance and differentiated designs for flagship, landmark, and boutique tea houses on service.

Speaker #2: We will overhaul the after-sales system, rolling out company-wide training. We will launch a VIP hotline and create feedback channels that directly shape improvements based on real customer input.

Junjie Zhang: 组织能力是战略落地的核心支撑。2026年，我们将全力推进体系化能力建设，深化数字化布局，优化内部运营流程，在门店运营、产品研发、供应链管理等环节沉淀最佳实践，让组织运转更高效，更适配品牌发展节奏，以强大的内部能力保障前端用户价值的持续输出。

Speaker #3: To ensure you champion for each Q2.

Speaker #2: Strong organizational capability is essential to delivering our core strategic growth . In 2026 , we will advance digital tools , optimize processes and standardize best practices in operation , R&D , supply chain and beyond .

Alicia Guo: Strong organizational capability is essential to delivering our core strength, strategic growth. 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 synced with our brand's expansion and consumer needs.

Speaker #2: This will create a leaner , more agile structure perfectly synced with our brands expansion and consumer needs .

Junjie Zhang: 我们深知高质量增长是一个需要耐心与定力的长期过程。必须始终坚持做长期正确的事。二零二六年，霸王茶姬所有的战略执行与资源投入都将围绕用户价值这一核心展开。我们坚信，只有真正读懂用户，满足用户，创造出超出用户预期的价值，品牌才能实现长期稳健的发展。也期待与所有的合作伙伴携手，共同推进各项战略落地，打造更具生命力的霸王茶姬。

Speaker #3: You can use it in and again.

Alicia Guo: 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 will center 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 Chagee.

Speaker #2: 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 .

Speaker #2: In 2026, all of our strategic execution and resource allocation will be centered on the consumer belief that only by truly understanding consumers, meeting their needs, and creating value that exceeds their expectations, can a brand achieve long-term, steady development.

Speaker #2: We also look forward to working with all partners to advance these strategies and build on an even more vibrant charging.

Junjie Zhang: 霸王茶姬用八年时间从一家店走到七千四百五十三家店，一直靠的都是一套历经市场验证、不断迭代的可持续的商业能力，和一个会持续优化、持续迭代的组织能力沉淀下来的品牌价值。

Speaker #3: Could You . Can

Alicia Guo: 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.

Speaker #2: Over eight years, expanded from one T house to 7,453 T houses. This growth reflects the strength of our sustainable business model.

Speaker #2: Adaptive organization and commanding brand equity.

Junjie Zhang: 二零二五年，因下半年的组织内部全面调整，响应速度也有所放缓。善心暂缓带来了业绩增速的显著下滑。特别是第四季度，整体同店销售同比下降了25.5%。这确实是二零二五年我们面临的最大的挑战。但我想请大家关注的不仅仅是数字本身，同时也是我们在短期业绩压力下并没有去做短期的动作，而是依然牢牢守住的长期主义的底线。二零二六年，近期国内同店销售数据已经呈现环比改善的趋势，这让我们对上半年企稳、下半年修复的全年节奏充满信心。长期来看，我们的目标始终清晰，让中国市场进入高质量可持续发展阶段，海外业务持续探索。从长期角度，我们坚信全球化将成为茶姬增长的重要抓手，把霸王茶姬打造成一个真正源于中国、属于世界的茶饮品牌，这是我们一直坚定不移的目标。

Speaker #3: The User San Juan Pension Q2 20 . To 22 edition Is The . Z17 in the 20 . 20 . One . You 22 .

Speaker #3: We Should . Time to

Alicia Guo: In 2025, due to the comprehensive organizational adjustments in H2 of the year, and a deliberate pause in new product launches, we experienced a slower growth in top line. Our same-store sales in Q4 declined 25.5% year over year. This was indeed our biggest challenge in 2025. 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 principles. In 2026, recent domestic same-store sales show sequential improvement, reinforce our confidence in a full year trajectory of stabilizing in H1 and improving in H2.

Speaker #2: Mobile in 2025 . Due to the comprehensive organizational adjustments in the second half of the year and a deliberate . Pausing new product launches , we experienced a slower growth in top line .

Speaker #2: Our same store sales in the fourth quarter declined 25.5% year over year . This was indeed our biggest challenge in 2025 , 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 .

Speaker #2: Instead , we held firmly to our long term principle . In 2026 . Recent domestic same store sales showed sequential improvement . Reinforce our confidence in a full year trajectory of stabilizing in the first half and improving in the second .

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

Speaker #2: From a long term perspective , we will continue to make overseas operations a powerhouse growth driver , and we're unwavering in our goal to evolve , into a global T leader originating from China .

Speaker #2: But resonating universally

Junjie Zhang: 接下来有请CFO Aaron，他将为大家详细解读本季度的财务细节。谢谢大家。

Speaker #3: CFO Aaron

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

Speaker #2: With that, I will now turn the call over to our CFO, Aaron, who will provide detailed insights into the financials.

Speaker #2: Thank you .

Hongfei Huang: Thank you, Junjie. Hello, everyone. Thank you for joining our earnings call today. As Junjie outlined, we have gained a valuable clarity from 2025. That positions us well for 2026 execution. I will focus on remarks on the metrics that support this outlook. Before we begin, please note that all amounts are in RMB and all comparisons are on a year-over-year basis, unless otherwise stated. For the full year 2025, total GMV reached RMB 31.6 billion, representing a 7.2% increase from RMB 29.5 billion in 2024.

Speaker #5: Thank you . Junjie Zhang . And hello everyone . Thank you for joining our earnings call today . And as Ginger Airlines , we have gained valuable clarity from 2025 that positioned us well for 2026 .

Speaker #5: Execution . I will focus on remarks on the metrics that support this outlook . Before we begin , please note that the all amounts are in RMB and all comparisons are on year over year basis , unless otherwise stated .

Speaker #5: For the full year 2025 , total GMV reached 31.6 billion , representing a 7.2% increase from 29.5 billion in the 2025 2024 . In the fourth quarter , total GMV was 7,322.9 million , reflecting the challenging environment in our home market .

Hongfei Huang: In Q4, total GMV was CNY 7,322.9 million, reflecting the challenging environment in our home market, but also strong growth momentum overseas. As of 31 December 2025, our teahouse network totaled 7,453 locations across Greater China and overseas, a 15.7% increase from 6,440 a year ago. Specifically, our franchisee teahouse accounts for 6,838 compared to 6,971 in Q3, while company-owned teahouse reached 615, representing a net increase of 248 sequentially. This change was primarily because we converted some of our franchisee teahouse into company-owned ones in China.

Speaker #5: Home market , but also strong growth momentum overseas . As of December 31st , 2025 , our T House network totaled 7453 locations across Greater China and overseas .

Speaker #5: A 15.7% increase from 6440 a year ago . Specifically , our franchisee teahouse accounts for 6838 , compared to 6971 in the third quarter , while company owned the house reached 615 , representing a net increase of 248 sequentially .

Speaker #5: This change was primarily because we convert some of our franchisee t house into company owned ones in China in Greater China , average monthly GMV per teahouse was 337,000 in fourth quarter of 2025 and 387,000 for the full year , consistent with same store and mixed dynamic that Ginger discussed at the same time over GMV for the fourth quarter grew 84.6% year over year to 371.9 million .

Hongfei Huang: In Greater China, average monthly GMV per teahouse was CNY 337 thousand in Q4 2025, and CNY 387 thousand for the full year, consistent with same-store and the mixed dynamic that Junjie discussed. At the same time, overseas GMV for Q4 grew 84.6% year-over-year to CNY 371.9 million. For the full year, our international market made an increasingly meaningful contribution to overall growth. On the revenue line, Q1 2025 net revenue were CNY 2,974.5 million, compared to CNY 3,334.4 million in the same quarter of 2024. For the full year 2025, net revenue increased by 4% to CNY 12.9 billion.

Speaker #5: And for the full year , our international market made it an made an increase in meaningful contribution to overall growth . On the revenue line fourth quarter 2025 .

Speaker #5: Net revenue was $2,974.5 million, compared to $3,334.4 million in the same quarter of 2024. For the full year 2025, net revenue increased by 4% to $12.9 billion in the fourth quarter.

Hongfei Huang: In Q4, net revenues from franchisee teahouses were CNY 2,434.9 million, representing 81.9% of total net revenues, compared to CNY 3,095.9 million a year ago. This reflects the cadence of the new product launch and the impact of subsidy competition on the delivery platform. Net revenue from the company-owned teahouse were CNY 539.6 million, up 126.2% from CNY 238.6 million in Q4 of 2024, mainly as a result of our deliberate de-development of the company-owned teahouse network in both Greater China and overseas markets. Turning to margin.

Speaker #5: Net revenues from franchisee T were 2,434.9 million , representing 81.9% of total net revenues , compared to 3,095.9 million a year ago . This reflects the cadence of the new product launches and the impact of subsidy competition on delivery platform net revenue from the company owned teahouse were 539.6 million , up 126.2% from 238.6 million in the fourth quarter of 2024 , mainly as a result of our deliberate development of the company owned teahouse network in both Greater China and overseas markets .

Hongfei Huang: Our gross profit, calculated by excluding cost of material storage and the logistics from net revenue, reached CNY 1,581.9 million this quarter, resulting in a gross margin of 53.2%. This marks an improvement from 51.6% last year. The margin improvement results are primarily from lower packaging material costs, equipment, and the supply chain costs. On operating expenses, share-based compensation expenses this quarter were CNY 66.6 million. This reflects our commitment to long-term employee engagement and aligning this, their goal with stakeholders. To provide greater clarity on underlying operational performance, we will reference non-GAAP operating results with the full reconciliation available in our earnings release in the Form 6-K. We recorded an operating loss of CNY 35.5 million, compared to operating income of CNY 642.5 million last year.

Speaker #5: Turning to margin , our gross profit calculated by excluding costs of material storage and logistics from net revenue , reached 1,581.9 million . This quarter , resulting in a gross margin of 53.2% .

Speaker #5: This marks an improvement from 51.6% last year . The margin improvement results , primarily from lower packaging material costs , equipment and the supply chain costs on operating expenses .

Speaker #5: Share based compensation expenses this quarter were 66 66.1 million . This reflects our commitment to long term employee engagement and aligning this their goal with stakeholders to provide greater clarity on underlying operational performance .

Speaker #5: We will reference non-GAAP operating results with for reconciliation available in our earnings release and form six K . We recorded an operating loss of 35.5 million compared to operating income of 642.5 million last year , based on management accounts , the operating loss was mainly attributable to the operating operational change in the fourth quarter , with an impact of approximately 320 million , which includes our organizational structure optimization and business model transition costs , excluding share based compensation expenses non-GAAP operating income was 30.5 million , representing a 1% margin .

Hongfei Huang: Based on management accounts, the operating loss was mainly attributable to the operational change in Q4, with an impact of approximately CNY 320 million, which includes organizational structural optimization and business model transition costs. Excluding share-based compensation expenses, non-GAAP operating income was CNY 30.5 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 the digital infrastructure to elevate customer experience. Operating costs for company-owned teahouses were CNY 376.8 million, up 130.8% from CNY 163.2 million a year ago. As of 31 December 2025, we operated 615 company-owned teahouses, up from 169 at year-end 2024.

Speaker #5: The above mentioned margin difference 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 the digital infrastructure to elevate customer experience .

Speaker #5: Operating costs for company owned tea houses were 376.8 million . Up 130.8% from 163.2 million a year ago . As of December 31st , 2025 , we operated 615 company owned tea houses , up from 169 at year end 2024 .

Hongfei Huang: Other operating costs increased by 26.9% to RMB 231.4 million, largely due to high payroll supporting the expansion of our global teahouse network. On a non-GAAP basis, other operating costs accounts for 7.6% of revenue compared to 5.5% a year ago. Sales and marketing expenses for the quarter were RMB 373.6 million, down 5.6% from RMB 395.7 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. General and administrative expenses reached RMB 635.6 million, up 89% year over year from RMB 336.3 million.

Speaker #5: Other operating costs increased by 26.9% to $231.4 million, largely due to higher payroll supporting the expansion of our global tea house network.

Speaker #5: On a non-GAAP basis , our other operating costs accounts for 7.6% of revenue , compared to 5.5 a year ago . Sales and marketing expenses for the quarter were 373.6 million , down 5.6% from 395.7 million a year ago .

Speaker #5: On a non-GAAP basis, sales and marketing expenses represented 12.2% of revenue, compared to 11.9% a year ago. General and administrative expenses reached $635.6 million, up 89% year over year from $336.6 million.

Hongfei Huang: 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 the resources allocation. On a non-GAAP basis, G&A expenses represented 19.7% of revenue, compared to 10.1% a year ago. Beyond operating income, we generated a positive financial income reflecting interest earned on our current cash and investment balance, as well as a positive other income, which was mainly comprised of government grants, largely in line with prior year periods. On a non-GAAP basis, excluding share-based compensation, our full year 2025 tax rate was 18.4%.

Speaker #5: 3 million . This includes costs associated with a targeted organizational restructuring to position the company for more efficient , leaner operation going forward , the higher DNA reflects our continued investment in global corporate infrastructure and to support international expansion alongside the costs associated with ongoing initiatives to optimize internal processes and resources allocation on the non-GAAP basis , G&A expenses represented 19.7% of revenue compared to 10.1% a year ago .

Speaker #5: Beyond operating income, we generated a positive financial income, reflecting interest earned on our current cash and investment balance, as well as a positive other income position, which was mainly comprised of government grants, largely in line with the prior year period on a non-GAAP basis.

Speaker #5: 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 a marking our 12th consecutive quarter of profitability at the net income level .

Hongfei Huang: Importantly, we deliver another profitable quarter on both GAAP and non-GAAP basis, marking our twelfth consecutive quarter of profitability at the net income level, even though this transitional period. GAAP net income was CNY 33.9 million. Non-GAAP net income, excluding CNY 66.1 million of share-based compensation expenses, was CNY 100 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 CNY 1,186.3 million and the non-GAAP net income was CNY 1,909.9 million. For Q4, basic and diluted net income per ordinary share were both CNY 0.15.

Speaker #5: Even though this transitional period , GAAP net income was 33.9 million . non-GAAP net income , excluding 66.1 million of share based compensation expenses , was 100 million , with a non-GAAP net margin of 3.4% , compared to 9.3% last year .

Speaker #5: For the full year 2025 , GAAP net income was 1,186.3 million , and non-GAAP net income was 1,909.9 million . For the fourth quarter , basic and diluted net income per ordinary share were both RMB ¥0.15 , on a GAAP basis , basic net income per ordinary share was RMB $0.50 and diluted net income per ordinary share was RMB $0.49 .

Hongfei Huang: On a non-GAAP basis, basic net income per ordinary share was RMB 0.50, and the diluted net income per ordinary share was RMB 0.49. For the full year 2025, basic net income per ordinary share was RMB 6.27, and diluted was RMB 6.18. On a non-GAAP basis, basic was RMB 0.1021, and the diluted was RMB 0.1007. Turning to liquidity, we ended the quarter with RMB 7,892.4 million in cash and cash equivalents, restricted cash, and time deposits, up from RMB 4,806.8 million at year-end 2024. This robust balance sheet provides ample flexibility to execute our growth investment while delivering shareholder return.

Speaker #5: For the full year 2025 , basic net income per ordinary share was R&B , ¥6.27 and diluted was RMB ¥6.18 , on a non-GAAP basis , basic and RMB basic was RMB 10.21 cents and diluted was RMB ten and $0.07 .

Speaker #5: Turning to liquidity, we ended the quarter with $7,892.4 million in cash and cash equivalents, restricted cash, and time deposits, up from $4,868.7 million at year end 2024.

Speaker #5: This robust balance sheet provides ample flexibility to execute execute our growth , investment while delivering shareholder return . In closing , our fourth quarter and full year 2025 year 2025 results demonstrate our durable profitability and our commitment to returning value to shareholders through disciplined capital allocation .

Hongfei Huang: In closing, our Q4 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. With that, I will turn the call back to the operator to begin the Q&A. Operator, please go ahead.

Speaker #5: This positions us strongly as we execute our 2026 priorities . With that , I'll turn the call back to operator to begin the Q&A .

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Lillian Lu of Morgan Stanley. Your question please, Lillian.

Speaker #5: Operator , please go ahead .

Speaker #1: Thank you . As a reminder to ask a question , you will need to press star one one on your telephone to remove yourself from the queue .

Speaker #1: You may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Lilian Liu of Morgan Stanley.

Speaker #1: Your question please , Lilian

Lillian Lu: Uh.

Lillian Lou: Uh.

Lillian Lu: 感谢管理层提问的机会。也谢谢俊杰总和Aaron总刚才详细的分享。我的问题是关于同店，其实是接着俊杰总刚才对2026年一个大的展望。也就是说，现在我们已经很有信心做完了调整。2026年呢，是一个高质量的成长的一年，高质量发展一年。而且刚才俊杰总也提到，从年初看是环比有修复，那么上半年企稳，下半年充满信心。那么可能作为分析师，我还是想把刚才说的这个大方向能够落实到数字上。也就是说从2024年的四季度到2025年的四季度，整个的同店一直都是处于一个下滑的状态。那么从刚才这个态势上看，我们怎么看2026年每个季度这个同店的一个转折？而且呢，在同店上我们有什么具体的举措，把同店修复？谢谢。

Lillian Lou: 感谢管理层提问的机会。也谢谢俊杰总和Aaron总刚才详细的分享。我的问题是关于同店，其实是接着俊杰总刚才对2026年一个大的展望。也就是说，现在我们已经很有信心做完了调整。2026年呢，是一个高质量的成长的一年，高质量发展一年。而且刚才俊杰总也提到，从年初看是环比有修复，那么上半年企稳，下半年充满信心。那么可能作为分析师，我还是想把刚才说的这个大方向能够落实到数字上。也就是说从2024年的四季度到2025年的四季度，整个的同店一直都是处于一个下滑的状态。那么从刚才这个态势上看，我们怎么看2026年每个季度这个同店的一个转折？而且呢，在同店上我们有什么具体的举措，把同店修复？谢谢。

Speaker #6: Junjie Zhang For the sure . You Said the . That the issue On the An I Asked the . You sec The . The In the The issue for

Junjie Zhang: 好的，谢谢你的问题，非常感谢。对于同店销售持续下滑的事情，我们肯定内部还是进行深度的、深刻的复盘。这个背后既有外部的很多环境的挑战，更多还是我们内部自己策略调整节奏的原因。就如刚才提到，我们在2025年的组织调整，首先第一件事确实是我们低估了霸王茶姬已经成为了一家三千四百多人管理团队的庞大的组织公司。那这样的背后，在组织调整上面，我们确实是低估了它的复杂性和时效性。所以坦率地告诉大家，我们在2025年基本是耽误了半年的时间。至此也想跟大家抱歉，这个是对25年哈。那到二……

Speaker #3: The . You Hold the Issue . Woman . The charge Heard the That

Junjie Zhang: 我想给这翻译一下。

Alicia Guo: Thank you for your question. We conducted a deep review of our same-store sales 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, as I apologize or I feel sorry for the market.

Speaker #2: Thank you for your question . We conducted a deep review of our source performance and we think it reflects both external challenges and our internal strategy adjustments .

Speaker #2: Pace . As you mentioned , we underestimate the complexity of a company who has over 3000 employees , which has delayed our strategy rolling out for the year of 2025 .

Speaker #2: For that, I apologize, or I feel sorry for the market.

Junjie Zhang: 所以2025年的市场内卷呢，确实超出了我们的预期。外卖平台价格大战对线下的这个冲击啊，也确实是我们也低估了，这是个客观事实哈。所以我们短期的很多应对策略呢，是不够完善的，也是响应效率是不够的。在激烈的这个价格战里边呢，虽然我们选择了不盲目地这个去进行参战和低价竞争，但是呢，实际上我们是可以做出很多举措的啊，但当时基于这个组织的调整啊，确实让我们错过了很多时机。所以当然也有一个好事呢，是霸王茶姬至今依然还是守住了我们高价值的这个价格锚，同时也进行了一系列的这个内部调整啊，这个是我觉得也是好事儿啊。当然这个短期也给我们带来了这样的这些悲凉的压力啊，但我们也坚信啊，基于健康的商业模式的增长才是可具备可持续性的这个可能性。所以同时我们的反思呢，总体来讲啊，还是在这个保持保证高价值品牌的定位下来响应这个市场的变化啊。那具体呢，会有一些战术啊，我稍后跟大家一一介绍哈。

Speaker #3: The The issue Changing Due to The New 20 . Billion And could be caught in the data collection . The functional . A .

Speaker #3: Don't . How should I to Take a second . What are the . To

Alicia Guo: Market competition in 2025 exceeded our expectation. The intense third-party platform competition impacted offline 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 slowed our new product cadence, which did create short-term pressure on cup volume. Even so, we believe growth based on healthy business models 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.

Speaker #2: Market competition in 2025 exceeded our expectation. The intense third-party platform competition impacted offline operations, and our short-term market tactics were not as strong as they needed to be in this environment.

Speaker #2: We chose not to chase low priced traffic blindly . Instead , we stuck to our premium brand positioning . At the same time we were very focused on internal adjustments and slowed our new product cadence , which leads create short term pressure on cup volume .

Speaker #2: Even so , we believe growth based on healthy business models is sustainable . Meanwhile , we are reflecting on how to actively adapt to market changes with flexible short term tactics .

Speaker #2: While maintaining our high-value brand positioning

Junjie Zhang: 所以坦率讲，虽然之前我们走了这样的一些弯路，也没有及时响应到这样的变化，但这些教训确实让我们更加清醒了。所以在瞬息万变的市场中，我们必须保持敏捷。那像在今年，就有一个二月份的这个千问的活动，霸王茶姬也是快速地进行了积极响应，而且在这场活动中，我们应该是受到了充分的受益。也证明一件事儿，霸王茶姬的团队正在回归到我们应有的正常水平。

Speaker #3: Our

Alicia Guo: Honestly, 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 have made us more alert and agile. You can already see this in our Qianwen campaign in February, where we reached quickly and captured the opportunity, which shows the team's agility is getting back to the normal level.

Speaker #2: 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.

Speaker #2: The positive side is that these lessons have made us more alert and agile . You can already see this in our ten one campaign in February , where we reached quickly and captured the opportunity , which shows the team has a team's agility , has getting back to the normal level

Junjie Zhang: 那2026年呢，我们首先肯定不会单纯地追求高速增长，而是回归到高质量的经营周期里面去。那将同店的销售的恢复作为公司首要的第一要务的KPI，将更加聚焦我们门店的运营、用户的体验、产品创新和组织效率这四个核心维度。

Speaker #3: Now We Also , the show . The KPI Mentioned To .

Alicia Guo: 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 four things, store operation, consumer experiences, product innovation, and organizational efficiency.

Speaker #2: 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 .

Speaker #2: We'll focus on four things . Store operation , consumer experiences , product innovation , and organizational efficiency .

Junjie Zhang: 首先是门店运营，我们将聚焦在存量放缓增量。在拓店方面，今年的开店节奏会适当放缓，将精力优先投入到现有门店的健康运营度上，那令我们的基本盘进入到更加稳固的状态。对于表现欠佳的门店，我们也会进行持续的全职调优和品牌升级。同时我们也在构建从源头到售后的全链路全面质量管理的体系，保障我们的安全下线，能够为长期的经营打下坚实的地基。

Speaker #3: So, maintaining Jiang Qing, you mentioned The Pan in the—her new—

Alicia Guo: First on operations, we will focus on existing tea houses and 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. In parallel, we are building a supply chain quality management system from sourcing all the way to after sales to lay a solid foundation for long-term operations.

Speaker #2: First , on operations , we will focus on existing key houses . Slow . New openings . We will moderate this year's expansion pace and prioritize healthy operations at current tea houses .

Speaker #2: For underperforming ones . We will keep optimizing and upgrading and in parallel , we're building a full chain quality management system from sourcing all the way to after sales to lay a solid foundation for long term operations

Junjie Zhang: 那第二点呢，是用户体验。我们会更加专注于提升品牌的价值，不会通过降价来换取短期的流量，而是通过高质量的产品创新和优秀的线下体验来吸引消费者。

Speaker #3: Junjie Zhang 20 . You should

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

Speaker #2: Feature on consumer experience . We are focused on enhancing brand value . We won't trade price cuts for traffic . Instead , we attract consumers through high quality product innovation and superior in-store services experiences .

Junjie Zhang: 三是在创新方面，一方面呢，多品类的创新，巩固原叶鲜奶茶的基本盘，持续推出高口碑的一些新产品作为增量。那例如十二月份我们推了一款归云南系列产品，这款产品成功地唤醒了我们沉睡会员，那唤醒率达到了51%。是什么意思呢？意味着在过去霸王茶姬的小程序会员中，有一个月以上未消费的老顾客，即单晶的这个产品把它进行了唤醒。那同时呢，在首周拉动大盘的整个大盘GMV环比增长了16.2%，显著高于历史新品的环比增长的均值。当然这个也是我们等了半年之后的回归。所以也可见，消费者对于我们的产品创新还是有非常大的期待。那么产品创新力呢，也说明了能够穿越周期、胸腹同店的销售核心驱动力。另一方面是多场景的探索，包括刚才提到的这个拓展到聚会、生日、婚礼等人生大世界的场景，打通全天候的消费时段，提升品牌的质感和温度。

Speaker #3: Thanks to the Pan , she And the I U we . In . Are sensing the champion And we want To All the Champion You should go to the social To On Went to

Alicia Guo: Third on innovation, on the one hand, we will keep, you know, innovating across multiple categories while reinforce our core fresh leaf milk tea franchise. Our new product, Signature Pu'er Tea, launched in December, provides a strong example with a dormant membership reactivating rate as high as 51%, meaning one in every two members buying this product has been old members who hadn't consumed the previous month. It grows to 15.2 week over week GMV uplift in the launch week, significantly exceeding the historical average for all new products. This example proves that our product innovation capability is our growth driver for navigating cycles and resources for ourselves.

Speaker #2: Third, on innovation. On the one hand, we will keep innovating across multiple categories, while reinforcing our core fresh leaf milk tea franchise.

Speaker #2: Our new product signature for tea launched in December , provides a strong example with a dormant membership reactivating rate as high as 51% , meaning one in every two members buying this product as an old member who had to consumer a consume the previous month , it drove a 16.2 week over week in the uploads in the launch week , significantly exceeding the historical average for all new products .

Speaker #2: This example proves that our product innovation capability is our core driver for navigating cycles and resourcing for ourselves . On the one hand , on the other hand , we are exploring more consumer scenarios such as gatherings , weddings , birthdays and other moments and extending to all occasions to deepen the brand's warmth and texture in consumers life

Alicia Guo: On the other hand, we are exploring more consumer scenarios such as gatherings, weddings, birthdays, and other moments, and extending to all the occasions to deepen the brand warmth and texture in customers' life.

Junjie Zhang: 第四呢，是组织效率部分。当前我们的重大组织调整已经完全干完了，已经调整完成，那今后也会持续优化组织的各条线的体系，以实现最大化的效率优化。

Speaker #3: The How to

Alicia Guo: Last on efficiency, we have now completed the major organizational adjustments, and we will continue to refine the structure so that we can maximize efficiency.

Speaker #2: Last on efficiency , we have now completed the major organizational adjustments and we will continue to refine the structure so that we can maximize efficiency

Junjie Zhang: 我相信，通过上述调整，2026年将是专注高质量增长的一年，我们不盲目追求规模的迅速扩张，回归到高质量的发展。我们预期2026年公司在收入和利润，跟2025年基本会保持一个持平的态势，持平上下。同时，在运营层面上，我们也会看到同店的增速会逐步止跌、企稳，下半年也会有一个更健康的指数会开始逐渐体现。但当然这个里边也有一个关键，就是我们在这个市场份额和利润两者产生冲突的时候，我们还是会坚定不移地保障我们的市场份额以及我们的门店健康经营指数，这是我们坚定的决策。

Speaker #3: Union For the Mentioned Q1 Through the ending . The

Alicia Guo: Overall, we expect 2026 to be a year where we are very focused on high quality growth rather than rapid expansion for scale. Our goal is to keep revenue and profits broadly flat year on year, while seeing same-store growth trend stabilize at the operating level. We believe in H2, the overall things for ourselves and our operation will be healthier. Also we want to focus that our priority for this year is to secure the market share rather than for the net profit. If we see a conflict between market share versus profitability, we will choose the former one.

Speaker #2: Overall, we expect 2026 to be a year where we're very focused on high-quality growth rather than rapid expansion or scale. And.

Speaker #2: Our goal is to keep revenue and profits broadly flat . Year over year on year while seeing same store growth trends stabilized at the operating level .

Speaker #2: And we believe in the second half , the overall same store sales and operation will be healthier . And also we want to focus that our priority for the for this year is to secure the market share rather than for the net profit .

Speaker #2: So if we have a conflict , if we see a conflict between market share versus profitability , we will choose the formal one .

Junjie Zhang: 那最后总结一句，一句啊，就是2026年呢，我们的本质就是围绕用户、围绕门店啊，让用户体验极致提升，让门店的SSSG啊，同店效益和同店的收益得以保障，啊，其他事情都靠边站啊，就这个意思。

Speaker #3: We are A recommending the SSD for the show . The

Alicia Guo: To sum up, the priority for this year 2026 is to both elevate the user experiences and to keep the things for ourselves getting back to the healthy level. Operator, next question please.

Speaker #2: So, to sum up, the priority for this year, 2026, is to both elevate the user experience and keep the same store sales.

Speaker #2: Getting back to the healthy level Operator . Next question please .

Operator: Thank you. Management asks that all who ask their questions in Chinese, please translate your questions to English for the convenience of everyone on the call. Thank you. Our next question comes from the line of Xiaopo Wei of Citi. Your line is open, Xiaopo.

Speaker #1: Thank you. Management asks that all who asked their questions in Chinese please translate your questions to English for the convenience of everyone on the call.

Speaker #1: Thank you. Our next question comes from the line of Xiao Po. Xiao Wei of City, your line is open. Xiao Po, please go ahead.

Xiaopo Wei: 嗨，你好，我是花旗的分析员魏小波，谢谢俊杰总还有Aaron总刚刚的分享。那我的问题就是，在prepared remarks还有俊杰总刚才回答第一道问题的时候，其实都提到了我们商业模型的一个变化，那么想追问一下，就是我们做这种商业模型这种转化的一个重要原因和动机是什么？现在的这个情况是怎么样？我翻译一下吧。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 transition? Thank you.

Xiaopo Wei: [Foreign language] 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 transition? Thank you.

Speaker #7: Hi , Nicole . Hey , Xuan . We are . You 21 . Prepared Remarks You . Woman In your prepared remarks , you briefly touch base on the business model transition .

Speaker #7: And could you share with us what has been motivating you to execute such a business model transition? And could you give us more updates on the status of the transition?

Alicia Guo: 谢谢小波总的问题，那这道问题的话，我们有请我们的CEO尹东风尹总来回答一下。

Alicia Guo: [Foreign language]

Speaker #7: Thank you .

Speaker #2: I The CEO

Junjie Zhang: 好的，我们商业模式转换核心动机只有一个，就是与加盟商形成真正的风险共担、利益共享的战略伙伴关系。

Junjie Zhang: [Foreign language]

Speaker #3: Got Function

Alicia Guo: Thank you. Our model transition has one core motivation. That is to build true shared risk, shared reward, strategic partnership with franchisees.

Speaker #2: Thank you . Our model transition has one core motivation that is to build true , shared , shared risk . Shared reward , strategic partnership with franchisees

Junjie Zhang: 过去一年，因为这个行业价格战的升级，我们的加盟商也面临业绩下滑和成本增加的双重压力，原有的原材料卖货的模式难以在行业低谷期给加盟商提供足够的缓冲或支撑。因此，我们就先重构我们的利益结构，从传统的供销关系转向深度的品牌抽成的合作模式。

Junjie Zhang: [Foreign language]

Speaker #3: And you know Only , you know , the by Go to transitions to the total

Alicia Guo: Last year, industry price wars intensified. Franchisees faced the dual pressure of sales decline and rising costs. The old model offered insufficient buffer in downturn, so we restructured incentives shifting from traditional supply relations to a GMV-based revenue sharing model.

Speaker #2: Last year , industry price was in worth intensified . Franchisees faced a dual pressure of sales decline and rising cost . The old model offered insufficient buffer in downturns , so we restructured incentives , shifting from traditional supply relations to a GMV based revenue sharing model

Junjie Zhang: 在新的模式下，虽然品牌收取的税率是有所增加的，但是我们同时做到另外两点。第一点，我们通过洞察市场的风向做精准营销，从而更好地控制了折扣率。第二点，我们大幅削减了我们加盟商端的原材料和耗材的成本率，这意味着公司的收益与门店的销售深度绑定。也就是说，只有加盟商赚钱，公司才会赚钱。

Junjie Zhang: [Foreign language]

Speaker #3: So, the function to reach out, Xiao Chen—how to, many, sorry. You maintain the central accounting for the...

Alicia Guo: 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 sharply. Now our revenue moves up and down with their GMV sales. When they succeed, we succeed.

Speaker #2: Share in the new model . Brand fees do do go up slightly , but those fees come with two strong offsets . First , we offer enhanced discount management through marketing , intelligence and targeted campaigns .

Speaker #2: Second, we cut raw material costs ratio at franchisees, and sharply. Now our revenue moves up and down with their GMV sales.

Speaker #2: When they succeed , we succeed

Junjie Zhang: 我们自从2026年全面启动了新的合作模式以后，它标志着我们与加盟商真正实现了利益共同体，目标同向。我们将以更加紧密的协作关系，携手推动未来GMV的持续增长。

Junjie Zhang: [Foreign language]

Speaker #3: On when the .

Alicia Guo: From 2026, we fully roll out the new model. This unites our interests and goals. We look forward to even tighter collaboration to drive sustained GMV growth. Thank you. Operator, next question, please.

Speaker #2: From 2026 , we fully roll out the new model . This unites our interests and goals . We look forward to even tighter collaboration to drive sustained GMV growth .

Speaker #2: Thank you, operator. Next question, please.

Operator: Our next question comes from the line of Sijie Lin of CICC. Your line is open, CJ.

Speaker #1: Our next question comes from the line of CJ Lin of C I c c , your line is open . CJ

Sijie Lin: 谢谢俊杰总、尹总、Aaron总的分享。我是中金分析师林思洁，那我的问题是，可不可以为我们详细阐释一下这个海外市场的一个表现，然后呢，以及说，就是开店这边我们刚才也讲了会有放缓，但是有没有稍微更明晰一点的26年的这个国内以及海外的一个开店计划，我来翻译成英文。So thank you management.

Sijie Lin: [Foreign language]. So thank you management.

Speaker #8: Junjie Zhang Yingzong answer Now , sure Sure So thank you management . My question is that can you provide an update on the performance of our overseas markets ?

Sijie Lin: My question is that, can you provide an update on the performance of our overseas markets? What are your expansion plans in 2026 domestic and overseas markets? Thank you.

Speaker #8: And what are your expansion plans in 2020 ? Domestic and overseas markets ? Thank you

Junjie Zhang: 好的，谢谢你的提问。首先我想谈一谈我们海外市场在2025年的一些表现。那第四季度呢，海外的业务表现还是强劲且健康的。门店呢，我们净增了83家，然后总数达到了345家店。那GMV环比增长呢是23.9%，同比增长了84.6%。更重要的是，海外逐月的门店单店GMV表现是优于国内非常多的，那这初步也证明了我们的商业模式在海外市场的可复制性和强大的生命力。

Junjie Zhang: [Foreign language]

Speaker #3: You know, I can highlight the order for you.

Alicia Guo: Thank you for your question. Let me start with our overseas performance in 2025. In Q4, our international markets showed strong and healthy growth. We added a net 83 houses, bringing the total to 345 in the overseas markets. GMV grew 23.9% quarter-over-quarter and 84.6% year-over-year. More importantly, the average monthly GMV of tea house for overseas tea houses outperformed the domestic one. Preliminarily proving the wisdom, replicability, and strong vitality of our business model overseas.

Speaker #2: Thank you for your question. Let me start with our overseas performance in 2025. In the fourth quarter, our international markets showed strong and healthy growth.

Speaker #2: We added a net 83 key houses, bringing the total to 345 in the overseas market. GMV grew 23.9% quarter over quarter and 84.6% year over year.

Speaker #2: More importantly , the average monthly GMV for tea house for overseas tea houses outperformed the domestic ones , preliminarily proving the replication capability and strong vitality of our business model overseas

Junjie Zhang: 在2025年，我们进入了很多新市场，包括像印度尼西亚、美国、越南、菲律宾四个市场。目前霸王茶姬的海外版图已经覆盖了新加坡、马来西亚、泰国、印尼、越南、菲律宾、美国等七个国家。越南市场……

Junjie Zhang: [Foreign language]

Speaker #3: The an Indonesia may go Philippine Singapore . Malaysia And Philippine . Major . The In the Army . The Located Coco Show . Also Showed that the Shipping The .

Junjie Zhang: 首店开业三天，三家门店都是总杯量超过了两万杯，品牌声量也迅速跃居到了当地的饮品榜单的第二名。那2025年年底，我们与Hello Kitty的联名，在东南亚五国推出了新产品，也是这款Coco Oolong，在泰国市场上首日新品的销售就达到了75%，非常高的一个销售体现。那么在亚太区的前三……

Junjie Zhang: [Foreign language]

Junjie Zhang: 天，新品占比达到了这个38.3%，品牌声量也登顶了这个区域的饮品第一。这些成绩都让我们确信霸王茶姬的品牌力是可以穿越国界的。

Junjie Zhang: [Foreign language]

Alicia Guo: In 2025, we entered 4 new markets Indonesia, the United States, Vietnam, and Philippines. Currently, our overseas footprint covers 7 countries Singapore, Malaysia, Thailand, Indonesia, Vietnam, Philippines, and the United States. In Vietnam, our first tea house opening generated over 20,000 cups across 3 tea houses in the first 3 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 across 5 Southeast Asian countries, achieving a 75% new product sales share on launch day in Thailand and 38.3% in the Asia Pacific region over the first 3 days, topping regional tea brand voice. These achievements have demonstrated that CHAGEE's brand power can transcend borders.

Speaker #2: In 2025 , we entered four new markets . Indonesia . The United States . Vietnam , and the Philippines . Currently , our overseas trip footprint covers seven countries .

Speaker #2: Singapore , Malaysia , Thailand , Indonesia , Vietnam , Philippines , and the United States . In Vietnam , our first tea house opening generated over 20,000 cups across three tea houses .

Speaker #2: In the first three days , with brand voice rapidly climbing to second in the local tea category at year end 2025 , our IP co-branded cocoa oolong launched across five Southeast Asian countries , achieving a 75% new product sales share on launch day in Thailand .

Speaker #2: And 38.3% in the Asia-Pacific region over the first three days, topping regional tea brand voice. These achievements have demonstrated that Chinese brand power can transcend borders.

Junjie Zhang: 进入2026年，我们的开店策略方面，主要分为两部分来回答。首先是国内市场，我们主要还是聚焦在存量的这个优先质量。那么今年我们适当会放缓国内的一些扩店节奏，将重心……

Junjie Zhang: [Foreign language]

Speaker #3: And Maintain the The yo

Junjie Zhang: 提升在同店的增长上，那保障这个门店存量的健康度。那2026年国内我们的这个新增门店的计划，这个只是在我们必要性的有这个战略意义的这个点位上新增300家店，那么这个数字本身不是目的，

Junjie Zhang: [Foreign language]

Junjie Zhang: 我们更关注的是让每一家店都有更加健康的盈利赚款，那么同时也能保障存量门店的这个同店增长，包括门店调优和关键点位资源的补充。此外，我们也会根据业务表现战略性地来调整一些开店的策略。

Junjie Zhang: [Foreign language]

Alicia Guo: I'll break 2026 strategy into domestic and international markets. For domestic markets, we focus on existing stores, prioritizing quality. This year 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 openings in strategic locations in mainland China. The number is not the goal. We prioritize 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.

Speaker #2: Outbreak 2026 strategy into domestic and international markets. For domestic markets, we focus on existing policies, prioritizing quality. This year, we will moderate, moderate.

Speaker #2: We continue to demonstrate domestic expansion, but we are also pacing and shifting our focus to same-store sales growth and ensuring store-level health and profitability. We plan about 300 net new tea house openings in strategic locations in mainland China.

Speaker #2: The number is not the goal. We prioritize healthy profitability for each new tea house, while supporting existing same-store growth through optimizing and reinforcing key location resources.

Speaker #2: Additionally, we make. We may make strategic adjustments to our expansion pace based on our performance this year.

Junjie Zhang: 那我们回到海外，海外市场呢，我们将稳步扩张。2025年第四季度，我们在马来西亚、印尼、泰国、越南、新加坡等核心的市场保持了稳健的净增长，那分别净增21家、19家、13家、12家和11家门店。那进入到2026年，我们的扩张步伐仍在继续。

Junjie Zhang: [Foreign language]

Speaker #3: Okay , now Malaysia The Junjie Zhang Issue . The Year . You are in the article . You should Highlights The highway . The main .

Junjie Zhang: 我们的泰国门店已经从曼谷走向清迈，韩国首店呢，也计划于2026年的二季度正式亮相。届时我们将进入第八个海外市场。2026年是我们海外筑基年，这个海外的计划，每年，也应该叫海外计划。

Junjie Zhang: [Foreign language]

Speaker #3: In the highway, being the new machine, we will venture.

Junjie Zhang: 新增的门店呢，我们在这个2026年大概是两百家店上下吧。但当然这个数字只是一个指向性目标啊，最终我们还是会根据实际情况来动态调整。更重要的是，我们会在每一个已进入的国家跑通并夯实我们的盈利模型，为未来的规模化开店建立可复制的范式。

Alicia Guo: Overseas expansion will continue at a steady pace. In Q4, we added 21 tea houses in Malaysia, 19 in Indonesia, 13 in Thailand, 12 in Vietnam, and 11 in Singapore. This momentum carries into 2026. Thailand is now expanding from Bangkok to Chiang Mai, and our Korea debut is planned for Q2, 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 models and build replicable templates for future scale.

Speaker #2: Overseas . Expansion will continue at a steady pace . In the fourth quarter , we added 21 tea houses in Malaysia , 19 in Indonesia , 13 in Thailand , 12 in Vietnam and 11 in Singapore .

Speaker #2: This momentum carries into 2026. Thailand is now expanding from Bangkok to Kim.y, and our career debut is planned for the second quarter, making it our eighth overseas market.

Speaker #2: 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 models and build a replicable template for future scale.

Junjie Zhang: 最后，对于国际市场，还是想给大家一个我们对于全球化这件事情的根本性看法。首先，全球化在霸王茶姬核心管理团队来看，这是一件霸王茶姬必须做的事，是一件难的事，但我们相信它是无比正确的事，又同时是需要长期时间来积累的事。霸王茶姬对于全球化的投资，我们是以十年的周期来看待这件事儿，它不是一个短期的、快速的爆发性增长，而是一个长期的、有耐心的持续深耕、持续优化的一个状态。所以对于全球化，霸王茶姬投资的是下一个十年的增长引擎，我们会持续不断地对全球化市场进行投入。当然，我们会不断地去优化我们的模式、模型，让国际市场的单店模式变得更加优秀，更加可持续。其中也有一个关键市场，就是我们的美国。坦率讲，美国市场我们一直认为这是一个除中国市场以外全球最大的第二大市场。但对于美国市场，今天霸王茶姬走了一条可以说是最难的路。这里可能想跟投资者多分享两句。其实我们进入美国，在整个行业里边，大家有非常多的选择，通过license、franchisee等商业模式进行在地化加盟，这是最简单的道路。去到美国，开在华人区，开在大学城，这是最便捷的方式，开一家挣一家的钱。可是霸王茶姬不想在美国只是开出几十家、几百家店，我们作为一个海外的品牌商，我们更希望茶会变成未来美国人民的每一天，会跟Starbucks一样成为美国人民的一种生活方式。如同星巴克进入中国也是一样的，他们也走了一条漫长而正确的道路。所以霸王茶姬去美国，我们走了一条确实在前期可能会有非常多的资金投入，可能也会犯很多错误，可能也会踩很多坑，但我们赌的是下一个十年是否会在美国，在西方世界掀起一阵从中国而来的一片茶叶的风，能够让西方世界喝茶也成为他们的一种新的生活方式。所以这件事我们是笃定的。也希望所有的投资者对于霸王茶姬对美国的长期注资和长期做这些难而正确的事的这种决策，多给我们一些包容、理解和耐心。谢谢。

Speaker #3: The Will be you Manchester . Uniting Washing the washer Now . Can make The License . Franchising . The . Go to Highway .

Speaker #3: The One . To Information . Starbucks Will handle the Junjie Zhang . From the form number and . She . Should be Make the channel to 20 .

Speaker #3: The Forum in

Alicia Guo: Lastly, as in terms of globalization, I have to add on a little bit touch. We are doing something that is a must and this is something we have to do, but it's difficult. We're not only investing in the overseas market in the next several years, we are actually investing in the next decades, especially the US markets. We're not talking about a short term sprint, but a long lasting marathon for our global expansion. We believe the priority for our overseas market is to refine the business model as we go. Also the priority is to keep a healthy unit economics, especially for the US market, which is the second largest market except for China.

Speaker #2: Lastly , in terms of globalization , I have to add on a little . A little bit touch . We . We are doing something that is a must .

Speaker #2: This is something we have to do , but it's 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 US market .

Speaker #2: And so we're not talking about a short term sprint , but a long lasting marathon for our global expansion . And we leave the thing of this , the priority for our overseas market is to refine the business model as we go .

Speaker #2: And also the priority is to keep a healthy economy , especially for the US market , which is the second largest market except for China .

Alicia Guo: We believe there are a lot of business models that we can adopt, like licensing or franchising, but we choose the hard way to bring it out, because we not only want to open dozens or hundreds of stores in the US, but we want to bring the drinking habits of tea into the US market, just like Starbucks has been doing for the past several years when they entered into the Chinese market. We chose a route that is more difficult, and requires higher CapEx, and we might make mistakes. I'm here to ask the capital markets to give us more confidence and understanding about our overseas market expansion. Thank you.

Speaker #2: So 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 hundreds stores in the US , but we want to bring the drinking habits of tea into the US market .

Speaker #2: But like Starbucks has been doing for the past several years , when they entered into the Chinese market . So we chose a road .

Speaker #2: We chose a route that is more difficult and requires higher CapEx. And we might make mistakes. But I'm here to ask for the capital markets to give us more confidence and understanding about our overseas market expansion.

Junjie Zhang: 最后，我想跟所有的投资者做一个补充性的分享。坦率讲，霸王茶姬在这个行业里边确实走了一条不太一样的路。我们一直相信，中国在茶这个领域上面，在全世界范围内一定会诞生出一家以高价值品牌为导向的茶企。那这样的茶企诞生之后，首先短期来看，它可能是一些增长也好，这个收入也好，利润也好，但长期来看，它是打开一个全新的品类，这个品类不仅仅是在限制限售这个场景下去开店，它逐渐会延伸到下一个场景，家庭办公，甚至是便利店、RTD的饮料。但这背后离不开的就是一件事儿，我们到底是在做一个以品牌价值为导向的、不断在注入资产的品牌，还是以当下快速流量，每个季度业绩为第一导向的销售。所以确确实实霸王茶姬走了一条比较艰难的路。我们也希望有一天我们可以构建出一家从中国起源走向世界的茶企品牌。

Speaker #2: Thank you

Speaker #3: You Are you ping Wei , the charge Are How RTD Woman . You should . Charged with the The . Ping pong . Hi Make way on the a social Charges She To .

Speaker #3: She . So . The You know . Should . For the Yeah . 1021 so the . To go If you

Dengfeng Yin: 不仅仅在限制限售这个领域，而能够延伸到世界人民的生活的多个方面、多个场景和多个时段。这也是我们的理想啊。也希望啊投资者们能够这个长期给予我们更多的支持。但短期我们做的这个不足的地方啊，也这个请大家多多批评指正啊，我们也迅速响应，迅速调整。谢谢。

Alicia Guo: Lastly, to add on a little bit, our Chagee is not adopting the normal way to grow, especially as a listed company. We believe we want to bring the higher value, and make Chagee the only high-value brand-oriented company in the future.

Speaker #2: Lastly, to add on, a little to charge is not adopting the normal way to grow, especially as a listing company. But we believe we will.

Speaker #2: We want to bring the higher value and make charging a . Or that high value branding oriented company in the future . In the short term , we believe most of the capital markets or investors is focusing on PNL .

Alicia Guo: In the short term, we believe most of the capital markets where investors is focused on PNL, but in the long term, Chagee wants to grow the company as a new category pioneer, which not only provides freshly brewed drinks to our customers, but also to bring a new lifestyle to our customers, such as RTD and also different scenarios of consumption. In the short term, we might see volatility from our financial performance. In the long term, we believe Chagee has the possibility to evolve from a freshly brewed maker to a lifestyle changer worldwide to the global consumers. Hopefully we have your all the investors long term support, and we welcome your comments and your advices as well. Thank you. The operator, next question, please.

Speaker #2: But in the long term wants to grow the company as a new category pioneer , which not only provides freshly brewed drinks to our customers , but also to bring a new lifestyle to our customers , such as RTD and also different scenarios of consumption .

Speaker #2: So in the short term , we might see volatility from our financial performance . But in the in the long term , we believe charge has the possibility to evolve from a freshly brewed maker to a lifestyle change or worldwide to the global consumers .

Speaker #2: So hopefully we have your, all the investors', long-term support, and we welcome your comments and your advice as well. Thank you.

Speaker #2: The operator. Next question, please.

Operator: Our next question comes from the line of Jessie Xu of JP Morgan. Your line is open, Jessie.

Speaker #1: Our next question comes from the line of Jessie Hsu of JP Morgan . Your line is open . Jessie

Jessie Xu: 尹总、Aaron、Alicia，晚上好，感谢接受我的提问，我是JP Morgan的Jessie Xu。那今天特别感动啊，就是听到俊杰总刚才的一番发言，非常的真诚、坦诚和乐观，然后也能感受到现在的茶姬是一个准备好再出发，有斗志也有耐心的这样的一个状态。那2025年确实是蛮波动的，但最艰难的时候应该是已经过去了哈。投资人最期待看到的这个边际改善，我们看到在Q4也已经开始实现了。相信这段时间这个公司对组织架构的调整，对团队的产品的打磨，会帮助公司在未来走得更稳也更远。那我记得上一个季度的这个业绩会上，管理层有提到一些降本增效的措施，能否帮我们就是理解一下，介绍一下我们从去年四季度开始，在降本增效方面做了哪些努力，目前的进展如何，有哪些初步的成效可以分享一下。另外有留意到我们Q4的这个管理费用率啊，好像有一个比较大的跳升，这个是不是跟一些一次性的费用相关？最后就是如果我们想展望一下2026年的费用率的话，应该有一个什么样的预期。Thanks for taking my question. Jessie Xu from JP 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 trend, and I think Q4 trend 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 introduce the concrete measures?

Jessie Xu: [Foreign language]. Thanks for taking my question. Jessie Xu from JP 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 trend, and I think Q4 trend 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 introduce the concrete measures?

Speaker #9: So Aaron , Alicia , how the JP Morgan , Jessie Xu For your The Your To . In Thanks for taking my question .

Speaker #9: 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 .

Speaker #9: Investors had been looking forward to a marginal improvement in same-store sales trend, and I think for Q4 print already provides some reasons for investors to turn more positive from here.

Speaker #9: Management mentioned cost reduction initiatives on the earnings call last quarter. So, could the management introduce the, you know, concrete measures?

Jessie Xu: What did we do? How's it progressing? Any initial feedback or efficiency gains from these initiatives? Lastly, how should we view the OpEx ratio for this year? Thank you.

Speaker #9: What did we do? How is it progressing, and are there any initial feedback or efficiency gains from these initiatives? And lastly, how should we think about the opex ratio for this year?

Speaker #9: Thank you

Dengfeng Yin: 谢谢Jessie，谢谢接受你的提问。是的，我们在上个季度提到了就是我们正在规划的降本增效的措施。首先呢，我们想强调的就是说这个降本增效不是应对短期压力的权宜之计，这个是跟我们的战略转型、战略的聚焦是高度相关的，是提升组织健康度的一个长期工程。那目前各项工作则已经得到了有序的推进，然后也在年初取得了这个初步的成效。

Dengfeng Yin: [Foreign language]

Speaker #5: Okay . Josiah I'll should just So The 2020 20 . 21 . the

Alicia Guo: 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 are already seeing some early results.

Speaker #2: Thank you for your question . Our cost reduction and efficiency efforts are not short term fixes . Fixes for a single quarter performance .

Speaker #2: 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.

Dengfeng Yin: 第一个方面，是我们在组织效能的优化上面完成了第一阶段的优化，重点是整合了中后台的一些职能，减少了重复建设和冗余的环节。因为我们原来的很多的组织建设就是为快速扩张。就像刚才俊杰讲到的，我们在2023年、2024年完成了一个快速扩张，其实我们在2025年在中国的开店量也超过了800多家。所以在整个节奏上面，原来的资源都是配合这个战略。就像刚才俊杰介绍的，到了2026年这个阶段，我们聚焦在同店，然后重新通过资源的配置，让更多的人员向这个战略倾斜，然后强化我们一线的执行力和响应速度。这并非简单的缩减，而是通过结构来调整人效，调整组织能力，真正地能够让我们2026年的新战略可以更好地落地。

Dengfeng Yin: [Foreign language]

Speaker #5: Once Way . Junjie Zhang . The . I The woman Page on the Channel for women is . Q2 and I . Diego The

Alicia Guo: On the organizational side, we've wrapped up phase one. That means combining mid- and back-office functions and cutting out duplicate work. As Junjie just mentioned, we opened a lot of new stores during the year of 2023 and 2024. In 2025 alone, we opened more than 800 stores as well. Now we are, you know, focusing on the same-store sales and shifting more resources to the front lines for better execution and faster response. This is not about a smarter structure, not just a trimming headcount.

Speaker #2: Only organization side . We've wrapped up phase one . That means combining mid and back office functions and cutting out duplicate work as Jean 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 .

Speaker #2: So now we are , you know , focusing on the same store sales and shifting more resources to the front lines for better execution and faster response .

Speaker #2: This is not about a smarter structure, not just training headcount.

Dengfeng Yin: For expenses, we've put in stricter controls and better budgeting. It covers everything from targeted marketing spending down to daily operation. Looking at 2026, we expect our overall fee rates to stay stable, especially for sales and marketing. We'll keep investing in this area. Also we'll keep investing in efficiency and controls without hurting core growth areas. The aim is better quality inputs leading to stronger outputs, no matter the environment. For the G&A expenses, our goal is to keep optimizing the overall efficiency with the precondition that without impacting our overseas market expansion. Thank you.

Speaker #5: The Q2 Hongfei Huang To for the

Speaker #2: GUI for expenses . We've put in stricter . Stricter controls and better budgeting . It covers everything from targeted marketing , spending down to daily operations

Speaker #5: You . To sales , marketing and woman , which . Who are The women We are

Speaker #2: Looking at 2026 , we expect our overall fees rates to stay stable , especially for . South of marketing , we'll keep our .

Speaker #2: Investing in this area, and also we'll keep investing in efficiency and controls without hurting core growth areas. The game is better quality inputs leading to stronger outputs no matter the environment.

Speaker #5: So that DNA

Speaker #2: For the expenses, our goal is to keep optimizing the overall efficiency with the precondition that we do not affect our overseas market expansion. Thank you.

Alicia Guo: We'll take our next question, please.

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

Speaker #2: Operator: Next. Next question, please.

Speaker #1: Thank you. As there are no further questions, I'd like to hand the conference back to management for closing remarks.

Alicia Guo: Thank you again for joining our call today. If you have any further questions, please feel free to contact us or request through our IR website. We look forward to our next call with everyone. Have a great day ahead. Thank you.

Speaker #2: Thank you again for joining our call today . If you have any further questions , please feel free to contact our US or request through our IR website .

Speaker #2: We look forward to our next call with everyone . Have a great day ahead . Thank you .

Dengfeng Yin: Thank you.

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

Speaker #5: Thank you

Q4 2025 Chagee Holdings Ltd Earnings Call

Request TrialDemo

Chagee Holdings

Earnings