Chine teahouse Chagee has cited “intensified subsidy competition” in China as the key reason for a year-on-year net revenues drop in Q3 2025.
In its unaudited financial reports, it has reported total net revenues RMB3,208.3 million (US$450.7 million), down from RMB3,541.2 million (US$500.8 million).
The increased competition led to a drop in number of cups cold in the Greater China market. Net revenues from franchised teahouses accoubnted for 87.6 per cent of the company’s total net revenues.
Despite the lower YoY figures, Chagee still reports a net income of RMB397.9 million (US$55.9 million) in Q3 2025, representing a net income margin of 12.4 per cent.
Q3 2024 saw a net income of RMB646.6 million for a margin of 18.3 per cent.
Other Chinese beverage brands including Luckin Coffee and Cotti Coffee have experienced strong growth in the home consumer market in 2025, with the pair – along with Chagee – also opening locations in the United States over the course of the year.
As of 30 September 2025, Chagee reports a teahouse network in Greater China and overseas of 7228 teahouses, a 25.9 per cent increase on the number of locations from 30 September 2024.
