7.2 per cent year-on-year increase. While much of the growth is still anchored in its home market, what is turning heads and investor interest is the tea company’s performance abroad. Brewing success abroad Now operating 169 stores overseas as of March 31 with most of them in Southeast Asia, the brand’s overseas outlets still represent a mere 2.5 per cent of its store network. Yet the overseas performance is beginning to punch well above its weight.  In Singapore, where Chagee currently operates 10 locations, the brand generated an average monthly GMV (gross merchandise value) of RMB1.8 million per store in the first quarter of this year, which according to Huang is well above the average in Greater China.  In Jakarta, Chagee’s newest Indonesian location sold more than 10,000 cups in its first three days after launch in April and attracted more than 5000 registered users in a week. The average daily sales in the first month exceeded 2000 cups.  A joint venture with Chagee Malaysia, announced last month, will add up to 300 new outlets over the next three years. “This demonstrates the higher spending power and the profitability potential in the early stage of development in the overseas market, providing crucial support for long-term growth trajectory,” said Hongfei Huang, CFO of Chagee.  “At the current stage, we are focused on building our team and the system overseas. This helps us create a strong foundation for healthy long-term sustainable growth. When it comes to opening new stores abroad, we care more about quality and the key performance rather than just how fast we can expect.” He added the company will continue to expand our global footprint while maintaining steady growth in Greater China moving forward.  Post-IPO strategy  The Yunnan-born premium tea brand, known for its freshly brewed leaf teas and minimalist, boutique-style stores, raised $472.9 million during its IPO debut last April.  Huang noted the proceeds will give the company “significant flexibility to fund growth initiatives and navigate market uncertainties.” While the company’s operating margin dipped slightly to 24.2 per cent from 28.2 per cent a year prior, the decline is not alarming. The increased investment in new markets, digital infrastructure, and company-owned stores (which saw revenue more than doubled year-on-year) explains the heavier cost base.  Chagee’s strategic pivot to own more of its overseas locations reflects a desire to maintain brand integrity and operational control as it enters less mature tea-drinking markets. The company also highlighted its fully integrated backend, from packaging to marketing assets, which enables rapid, uniform rollout. Its highly optimized franchising model boasts a break-even period as short as 5.5 months, allowing Chagee to scale “not like a brand, but like infrastructure.” Beyond store growth, Chagee’s innovation engine is proving equally potent.  In the first quarter, it launched seven new SKUs, including the now popular low-caffeine Boya Tea Latte, part of a broader strategy to capture more consumption occasions in the afternoon and evening.  According to the company, the low-caffeine lineup has shown outsized results in pilot cities, including higher new customer conversion rates and stronger week-over-week GMV growth. Chagee even created a dedicated showcase within its mobile mini-program to reinforce category awareness. Seasonal offerings have also played their part.  Its limited-edition Valentine’s Day series, Meigui Cong Zhong, garnered 340 million online impressions, while the Xing Shi Chun Shan, made with premium Longjing tea, accounted for more than 16 per cent of cups sold during its run.  By the end of the first quarter, the brand’s registered members in Mobile Mini-Program grew to more than 192 million, with 15 million new members joined during the period alone.  “A significant driver of this growth has been our low-caffeine selections, which have successfully captured increased afternoon and evening consumption occasions,” Huang said. “Building on this momentum, our precision targeted marketing campaigns and strategic brand partnership have established a powerful foundation for sustained customer acquisition and retention.” For investors, Chagee’s overseas momentum may offer a hedge against slowing consumption growth in China. As the company deepens its footprint in Southeast Asia and beyond, the challenge will be balancing quality control with scale, particularly as it experiments with more company-owned stores.  Further reading: How Chinese tea chain Chagee brewed a $6.2 billion Nasdaq debut.