On August 28th, Ba Wang Cha Ji Holdings Limited (NASDAQ: CHA) (hereinafter referred to as "Ba Wang Cha Ji") announced its financial and operating results for the second quarter of 2026. During the financial reporting period, BaWang Tea Ji achieved a total GMV of 6.66 billion yuan; Net income was 3.415 billion yuan, a year-on-year increase of 2.5%; The operating profit was 525 million yuan, and the adjusted net profit was 489 million yuan.

This quarter, Bawang Tea Ji continued its steady growth business trend, adhered to the promotion of high-quality growth strategy, and achieved further results. The company focuses on product innovation, expands new product categories and consumption scenarios, deepens membership system operation and service experience, adheres to quality driven growth, and builds sustainable development value.

The total GMV reached 7.66 billion yuan, maintaining profitability for 14 consecutive quarters

This quarter, the total GMV of Bawang Tea Ji was 7.66 billion yuan, with 7639 global stores, an increase of 8.5% compared to the same period last year. The company has maintained profitability for 14 consecutive quarters and achieved steady growth in operations.

Under the guidance of the high-quality growth strategy, the overall same store GMV growth rate of Bawang Tea Ji increased by 6.9 percentage points compared to the same period last year, and the profitability of individual stores still maintained a leading level in the industry. As of the end of this quarter, the company's cash and cash equivalents, restricted funds, and term deposits totaled 6.795 billion yuan, and the balance sheet remained stable.

During the financial reporting period, the company's operational efficiency continued to improve, with total operating expenses decreasing by 10.4% year-on-year. Among them, sales and marketing expenses were 302 million yuan, a year-on-year decrease of 21.7%; General and administrative expenses amounted to 335 million yuan, a year-on-year decrease of 64.6%; Other operating costs decreased by 33.3% year-on-year.

According to the share repurchase plan approved by the board of directors, the company will repurchase up to $150 million worth of American Depositary Shares (ADS) within twelve months from June 1, 2026. As of August 24th, the company has repurchased approximately 2.57 million ADS in the public market for a total consideration of approximately $29.5 million.

17 new products set a single season record, accelerating the expansion of new categories and scenarios

After years of rapid growth, the new tea beverage industry is entering a stage of stock competition, but consumer recognition and demand for high-quality products remain stable. Faced with industry challenges, Bawang Tea Lady took the initiative to adjust its development pace, adhere to a high-quality growth strategy, and deeply cultivate internally.

During the financial reporting period, Bawang Tea Lady launched new products simultaneously in both domestic and international markets. A total of 17 new tea beverage products have been launched in Greater China, setting a new historical high for a single season; In the first half of the year, a total of 29 new products were launched, with an average of new products every week, covering the original leaf fresh milk tea, tea special adjustment, lemon milk, world tea and other product series. There are both popular single products such as Xingshi Chunshan and Xiameng Meilong returning, as well as innovative categories such as lemon milk and tea special adjustment, enriching the consumption choices at all times. The new mango series and handmade tea beverage series in the Asia Pacific market have also received high praise.

Regional limited new products will incorporate local good tea into the menu: Zhejiang has launched two new products, Fenghe Yingyue and Juyuhe Longjing, based on traceable Longjing tea; Shaanxi has launched four new products, including Jinfu Lanyue, based on Jingyang Fu tea and Hunan Anhua Fu tea; The Lu'an Gua Pian series launched in Anhui, the Youluo Fanghua series launched in Henan, and the Fog Hidden Qianshan series launched in Jiangxi have all significantly boosted the sales growth in various regions.

In addition to innovative tea drinks, Bawang Tea Lady launched a new category of Italian ice cream called Geelato Tea Lado on May 22, which was first launched in five cities including Beijing, Shanghai, Shenzhen, Chengdu, and Wuhan. At the same time, Bawang Tea Lady actively expands the group meal scene, covering diverse needs such as weddings, group building, and office afternoon tea.

Overseas GMV increased by 114.3% year-on-year, with four consecutive quarters of month on month growth

During the financial reporting period, the GMV of BaWang Tea Ji's overseas market reached 504 million yuan, a year-on-year increase of 114.3%, and the total number of overseas stores reached 399. Since the second quarter of 2025, overseas GMV has increased quarter on quarter for four consecutive quarters, rising from 235 million yuan to 504 million yuan this quarter, becoming a stable growth engine for brands.

This quarter, Ba Wang Cha Ji entered two new markets in South Korea and Macau, China. On April 30th, the first store in South Korea opened in Gangnam, Seoul. On the same day, two stores, Yongsan I'Park Mall and University City New Village, opened simultaneously, and long queues formed as soon as they opened; On May 8th, the first store in Macau, China landed at The Venetian shopping center, and during the trial operation period, the number of members increased by as much as 318% on a daily basis.

Existing overseas markets continue to expand deeper into more cities: on June 4th, the company opened three stores in Surabaya, the second largest city in Indonesia, and entered Bandung in July; Currently, 10 stores have opened in the US market.