Chagee Q2 Profit Soars 502% to RMB465M, But Same-Store Sales Slide 16%
CHA is trading near its 52-week low of $8.98 (11% above the low).
Summary
Chagee reported Q2 2026 net income of RMB464.8M (US$68.5M), up 502% YoY, but same-store GMV fell 16.1% and active members declined. Board member Yong Zhang resigned effective immediately.
Key Events · Earnings and Guidance · CHA
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Q2 Net Income Surges 502%
GAAP net income reached RMB464.8M (US$68.5M), up from RMB77.2M a year ago, driven by a 64.6% cut in G&A expenses and a 21.7% cut in sales and marketing.
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Same-Store Sales Decline 16.1%
Same-store GMV growth in Greater China was -16.1% in Q2 2026, an improvement from -25.5% in Q4 2025 but still deeply negative, reflecting economic headwinds and intense competition.
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Active Members Drop to 47.1M
Active members fell from 50.0 million in Q1 2026 to 47.1 million in Q2 2026, while average monthly GMV per teahouse in Greater China declined to RMB338,259 from RMB356,080.
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Board Member Resigns Abruptly
Yong Zhang resigned from the board effective immediately for personal reasons, reducing the board to six directors including three independents.
Analysis · CHA · Trade & Services
Chagee's Q2 2026 results show a dramatic profit surge — GAAP net income jumped over 500% to RMB464.8 million (US$68.5 million) — driven almost entirely by cost cuts, not growth. Revenue rose only 2.5% while same-store GMV fell 16.1% in Greater China, the company's core market. The profit beat is real but the underlying demand story is deteriorating: active members dropped from 50.0 million to 47.1 million quarter-over-quarter, and average monthly GMV per teahouse fell to RMB338,259 from RMB356,080 in Q1. The abrupt resignation of board member Yong Zhang, disclosed in the same filing, adds governance uncertainty. Investors must weigh a leaner, more profitable operation against weakening consumer demand and intense competition in China's tea market.
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In the 30 days to Sep 14, 2026, 29.9% of the 1591 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.24%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CHA was trading at $9.99 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2B. The 52-week trading range was $8.98 to $22.57. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.