Chagee Holdings Limited Reports Robust Expansion and Faces Operational Challenges

Chagee Holdings Limited, the Shanghai‑based consumer‑discretionary company listed on Nasdaq under the ticker CHA.US, announced a significant expansion of its retail footprint during its 2025 year‑end review. According to the release dated 8 January 2026, the tea‑chain now operates stores in eight countries across two continents. The company’s annual tea procurement surpassed 10,000 tons, encompassing six major tea categories, including Pu ’er, which underscores an aggressive sourcing strategy aimed at meeting growing global demand for premium tea beverages.

Global Footprint and Sourcing Highlights

The 2025 review details that Chagee’s network spans China, Hong Kong, Thailand, Malaysia, Vietnam, Japan, South Korea, and Taiwan, with the majority of outlets concentrated in the Greater China region. The company’s procurement volume—exceeding 10,000 tons—highlights its capacity to secure high‑quality raw materials at scale. This volume is distributed across six key tea categories, signaling a diversification strategy that mitigates supply‑chain risks and caters to varied consumer preferences.

Potential Hong Kong Listing

Amid its expansion, Chagee is reportedly exploring a listing in Hong Kong, as reported by Bloomberg on 8 January 2026. The move would align Chagee with a growing cohort of mainland Chinese firms seeking liquidity and visibility in the Asian financial hub. A Hong Kong listing could provide the company with additional capital for further international growth and potentially broaden its investor base beyond the Nasdaq.

Operational Incident and Regulatory Response

In early January, Chagee faced a reputational setback when a video circulated online showing an employee preparing a milk‑tea beverage with bare hands at a store in Zhangzhou, Fujian. The incident prompted the company to suspend the outlet until it passed stringent inspections. Chagee’s official statement on Weibo confirmed that the employee had been dismissed and that the incident was a staged attempt to draw online attention. The company emphasized that all materials were discarded immediately after the employee’s action, and that the suspension is temporary while the outlet undergoes rectification.

The incident illustrates the challenges Chagee faces in maintaining consistent quality standards across a rapidly expanding store network. It also underscores the importance of robust training and oversight mechanisms, especially as the brand seeks to uphold its reputation for premium tea experiences.

Financial Snapshot

  • Close Price (2026‑01‑05): $13.05
  • Market Capitalization: $2.44 billion
  • Price‑to‑Earnings Ratio: 18.67
  • 52‑Week High: $41.80 (2025‑04‑16)
  • 52‑Week Low: $4.00 (2025‑04‑09)

These figures reflect a company that has managed to sustain growth despite a volatile retail environment and heightened scrutiny over operational practices.

Outlook

Chagee’s expansion into multiple Asian markets and its ambitious sourcing targets position it well to capitalize on the region’s tea‑drinking culture. The potential Hong Kong listing could further strengthen its financial footing. However, the firm must address operational lapses proactively to preserve consumer trust. Continued investment in supply‑chain resilience, staff training, and quality control will be crucial as Chagee seeks to consolidate its standing as a leading tea‑house brand in the consumer‑discretionary sector.