Chagee Holdings Ltd ADR Dossier
Qualitative Analysis
Business overview
Chagee Holdings Ltd. (NASDAQ: CHA) is a leading premium freshly-made tea chain that has achieved remarkable scale-up momentum in the global food and beverage sector. Founded in 2017 in China's southwest Yunnan province, the company specializes in premium, milk-based teas using traditional Chinese tea blends. Chagee operates a capital-light, highly scalable business model primarily driven by franchised teahouses, which represent approximately 77.4% of total net revenues, alongside a rapidly growing segment of company-owned teahouses (representing 22.6% of revenues as of Q1 2026). As of March 31, 2026, Chagee's global network expanded to 7,531 teahouses across Greater China and international markets, including Malaysia, Thailand, Singapore, Indonesia, and the United States.
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Slowing the pace of domestic store expansion to focus on same-store sales growth, store-level health, and profitability. The company plans to limit domestic expansion to approximately 300 net new teahouses in 2026.
Expected impact: Aims to stabilize same-store GMV, improve franchisee profitability, and recover operating margins.
Expanding the international footprint with a target of 200 net new teahouses outside of China in 2026, prioritizing the U.S. market using a company-owned store model to maintain strict brand control.
Expected impact: Establishes a global footprint, replicates the 'tea espresso' model internationally, and drives high-margin overseas GMV growth.
Pioneering healthy beverage standards by securing official health certifications (such as Malaysia's Healthier Dining Programme) and introducing digital tools like the in-app calorie calculator.
Expected impact: Strengthens the brand's premium, health-conscious positioning, appealing to younger, lifestyle-oriented consumers.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Strategic Partnerships
Facilitates Chagee's expansion in Indonesia, leveraging Erajaya's local retail expertise. The JV has expanded to 36 stores in Jabodetabek and opened its first beach-concept store in Bali in March 2026.
Terms: Jointly funded joint venture entity.
A regional collaboration featuring POP MART's character Hacipupu to launch the limited-edition 'Green Grape Milk Tea' and tennis-themed pop-ups across Singapore, Malaysia, Indonesia, and Thailand.
Terms: Co-marketing and licensing agreement.
Co-curated the 'Garden of Senses: A Tea Reverie' multi-sensory exhibition in Singapore (Jan 28 – Jun 7, 2026) to promote tea culture and elevate Chagee's brand equity as a premium lifestyle brand.
Terms: Sponsorship and co-curation agreement.