Profit deterioration and negative same-store GMV growth signal fundamental headwinds in core China market. The $150M buyback could support share price, but margin compression is the key story for traders to monitor.
Price Chart
Executive Summary
Chagee reported Q1 2026 revenue of RMB3,546M (+4.5% YoY) but net income declined 34% to RMB447.7M, with net margin shrinking from 20% to 12.6%. The company announced a $150M share repurchase program, but deteriorating profitability and negative same-store GMV growth (-16%) signal ongoing competitive and macro headwinds.
Key Financial Metrics
Key Facts
- Revenue RMB3,546M (+4.5% YoY)
- Net income RMB447.7M (-34% YoY)
- Net income margin 12.6% vs 20.0%
- Same-store GMV growth in Greater China -16.1%
- Company authorized $150M share repurchase
- Total teahouses grew 12.7% to 7,531
Financial Impact
Net profit declined by RMB229.6M YoY (-33.9%), operating margin fell from 24.2% to 15.4%
Risk Factors
- Intensifying competition in China tea market
- Margin compression from shift to company-owned stores
- Macroeconomic headwinds impacting consumer spending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3303352 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 8w ago | 6-K | $10.80 | awaiting T+60 | — | $12.41 (+14.91%) |
Aug 28, 2026 8w ago | Press Release | $10.80 | awaiting T+60 | — | $12.41 (+14.91%) |
Aug 21, 2026 9w ago | Press Release | $10.81 | awaiting T+60 | — | $12.41 (+14.80%) |
May 29, 2026 21w ago | 6-K | $12.76 $10.84 | ▲ +15.05% | ▲ +16.23% | $12.41 (+2.74%) |
May 29, 2026 21w ago | Press Release | $13.19 $10.63 | ▲ +19.41% | ▲ +20.66% | $12.41 (+5.91%) |
May 22, 2026 22w ago | Press Release | $9.54 $10.05 | ▲ +5.35% | ▲ +2.16% | $12.41 (+30.08%) |
Apr 29, 2026 25w ago | Press Release | $10.68 $11.20 | ▲ +4.87% | ▲ +0.76% | $12.41 (+16.20%) |
Mar 31, 2026 29w ago | 6-K | $9.31 $12.14 | ▲ +30.40% | ▲ +18.02% | $12.41 (+33.30%) |
Mar 31, 2026 29w ago | Press Release | $9.31 $12.14 | ▼ −30.40% | ▼ −18.02% | $12.41 (−33.30%) |
US Market Status
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