Tonight, Ba Wang Cha Ji (CHA.O) released its unaudited financial results for the third quarter ended September 30, 2025, and held an earnings conference call. During the reporting period, BaWangChaJi continued to expand to 7,338 stores, but net revenue, net profit, and GMV per store all declined year-on-year.
The financial report shows that the company's net revenue in the third quarter was RMB 3.208 billion, a year-on-year decrease of 9.4%. Adjusted (Non-GAAP) net profit was RMB 503 million, a year-on-year decrease of 22.3%.
Specifically, the net revenue of BaWangChaJi franchise stores and self-operated stores accounted for 87.6% and 12.4%, respectively.
Net revenue from franchised stores was RMB 2.812 billion, compared to RMB 3.299 billion in the same period of 2024. The financial report indicates that this was primarily due to fierce subsidy competition among Chinese food delivery platforms this year, leading to a decrease in the number of cups sold and consequently a decline in the total GMV of the Greater China market. Net revenue from the company's self-operated stores was RMB 397 million, a 63.8% increase from RMB 242 million in the same period of 2024, mainly driven by the expansion of the self-operated store network in Greater China and overseas markets.
Besides revenue and net profit, GMV is one of the most direct indicators for measuring the competitiveness of new tea beverage companies.
During the reporting period, BaWangChaJi's GMV was RMB 7.93 billion, compared to RMB 8.301 billion in the same period of 2024. Regionally, the total GMV in the Greater China market was RMB 7.629 billion, a year-on-year decrease of 6%. At the earnings conference, BaWangChaJi CFO Aaron Huang pointed out that this reflects both the higher base in the same period last year and a more intense competitive environment, including competition from other food delivery platforms.
In contrast, the total GMV in overseas markets reached 300 million yuan, showing a faster growth rate of 75.3% year-on-year and 27.7% quarter-on-quarter. "Overseas markets will be a key factor for our future growth. In the third quarter, we expanded our overseas business by adding 54 net new stores and successfully entered the Philippines and Vietnam markets," said Huang Hongfei.
However, the rapid expansion of overseas business and the increase in the number of stores directly drove up operating costs (mainly operating costs of self-operated stores, G&A and other operating costs), and BaWangChaJi's net profit margin in the third quarter decreased by 2.6% compared with the same period last year (Non-GAAP).
Another noteworthy indicator is that BaWangChaJi's average monthly GMV per store was RMB 378,500 during the reporting period, a year-on-year decrease of 27.8%. In fact, after peaking in Q4 2023, BaWangChaJi's average monthly GMV per store has been declining continuously due to the dilution effect of rapid store network expansion and intensified industry competition. Looking at the breakdown by quarter, from Q4 2023 to Q2 2025, the average monthly GMV per store was RMB 574,000, RMB 549,000, RMB 538,000, RMB 528,000, RMB 456,000, RMB 432,000, and RMB 404,400, respectively.
(Article source: CLS)
