Chagee Holdings (CHA): New products support SSSG stabilization; focus more on SSSG/customer vs. store addition — Consumer & Leisure Corp

Research evidence excerpt

Chagee Holdings (CHA): New products support SSSG stabilization; focus more on SSSG/customer vs. store addition — Consumer & Leisure Corp

Equity Research

30 June 2026 | 11:59PM HKT

Chagee Holdings (CHA): New products support SSSG stabilization; focus

more on SSSG/customer vs. store addition — Consumer & Leisure Corp

Xinyu Ruan

+852-2978-7347 | xinyu.ruan@gs.com

Goldman Sachs (Asia) L.L.C.

Michelle Cheng

+852-2978-6631 |

michelle.cheng@gs.com

Bottom line: We hosted Chagee’s management at our APAC Consumer & Leisure Molly Dai

Corp Day on Jun 30. In China market, Apr-May monthly per store GMV reached +852-3966-4000Goldman Sachs (Asia)| molly.dai@gs.comL.L.C.

Rmb350k, implying mid teen% SSSG decline (similar to 1Q SSSG decline with a

relatively high base), and Jun monthly average GMV saw some sequential increase,

with support from new product launches (e.g. new products beer-like tea (流沙茶)

and lemon milk tea has ~15% GMV contribution). Management targets SSSG to turn

positive in 4Q26, and SD% SSSG decline for the full year. Delivery mix remained

stable sequentially at ~60% and management aims to lower it to pre-delivery

subsidy level (40%-50%) with new products to drive dine-in traffic. New Geelato

category is currently testing in >20 stores with ~20% sales contribution; and

management aims to cover nearly 200 stores this summer/1000-2000 in the future if

tested successfully. In overseas market, store opening will be more focused on

ASEAN markets this year (e.g. Indonesia, Thailand), and South Korea is expected to

open ~30 stores and management sees potential for this market to scale up. On

margin, management views the need for additional franchise subsidies as relatively

low currently with SSS stabilization. Selling expenses will be more targeted and

ROI-focused this year.