Chagee Holdings CHA

[winston]

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Chagee Holdings, a Chinese bubble tea chain, is seeking to raise US$411 million in an initial public offering (IPO) in the US, despite spiking stock volatility from US President Donald Trump’s tariff measures.

The Shanghai-based company is offering 14.68 million American depositary shares for US$26 to US$28 each, according to a filing on Thursday with the US Securities and Exchange Commission.

At the top of the price range, Chagee would have a market value of about US$3.3 billion based on the outstanding shares listed in the filing.

Source: Phillips

[winston]

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Chinese tea chain Chagee launches US IPO defying stock slump

By Yiqin Shen

Funds affiliated with CDH Investment Management Co, RWC Asset Management and RWC Asset Advisors (US), Allianz Global Investors Asia Pacific Ltd and ORIX Asia Asset Management Ltd indicated interest in buying as much as US$205 million worth of ADS in aggregate at the IPO price.

Chagee’s network comprised 6,440 tea houses as of December 2024, with the number growing approximately 83% year over year.

Founder and chief executive officer Junjie Zhang, who started the company in 2017, is set to have 89% of the aggregate voting power after the offering, according to the filing.

Chagee’s IPO is being led by Citigroup Inc, Morgan Stanley, Deutsche Bank AG and China International Capital Corp, the filing shows.

The shares are expected to trade on the Nasdaq Global Select Market under the symbol CHA.

Source: Bloomberg

https://theedgemalaysia.com/node/751102

[winston]

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Chinese tea chain Chagee CEO becomes a billionaire after US$411 million US IPO

Premium tea-drinks, with an average price of 17 yuan (S$3.10) per cup, represented 26 per cent of the China market last year versus 11 per cent in 2019.

Chagee has a network of over 6,440 shops, with the vast majority of them located in China and a presence abroad in Malaysia, Singapore and Thailand.

Around 6,270 of the teahouses are franchised and 169 are company-owned.

Source: Bloomberg

https://www.businesstimes.com.sg/intern ... ion-us-ipo

[winston]

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Chagee marches ahead in latest overseas push

The company operated 156 stores overseas by the end of 2024. It plans to open 1,000 to 1,500 new stores globally this year.

As of the end of 2024, Chagee operated 6,440 stores worldwide — 6,217 of which were franchises — representing an 83 percent increase from the previous year.

Its 2024 GMV (Gross Merchandise Volume) surged 173 percent year-on-year to 29.5 billion yuan ($4.04 billion), with average monthly GMV per store in China hitting 5.12 million yuan.

Its annual revenue reached 12.41 billion yuan, while net profit came in at 2.52 billion yuan — translating to a net margin of 20.3 percent, significantly above the industry average.

Same-store GMV growth slowed in the second half of 2024, declining 18.4 percent year-on-year in the fourth quarter. Analysts attribute the slowdown in part to market cannibalization from the rapid opening of new stores in the same areas.

Source: China Daily

https://www.thestar.com.my/business/bus ... rseas-push

[winston]

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How China’s Chagee achieves explosive growth in a crowded F&B market

56% of revenue comes from membership-driven sales, managed by our 300-member backend team.

40% of sales come from delivery platforms.

Piece-rate pay system: Employees earn commissions for each scan, making the process straightforward—each scan earns 1 yuan.

Performance assessment based solely on customer satisfaction.

Mentorship system inspired by Haidilao: Store managers and their apprentices hold shares, ensuring that the final decision-makers at the store level are also stakeholders.

Source: The Low Down

https://thelowdown.momentum.asia/how-ch ... fb-market/