Bawang Cha Ji Plans Nasdaq Listing, Reports 173% GMV Growth

Bawang Cha Ji, a premium tea beverage brand, has announced its plans to list on the Nasdaq stock exchange under the ticker symbol "CHA." The company has filed its prospectus with the U.S. Securities and Exchange Commission, with Citigroup, Morgan Stanley, CICC, and Deutsche Bank serving as underwriters.

Founded in 2017, Bawang Cha Ji has rapidly expanded its footprint, with a total of 6,440 stores globally by the end of 2024. This includes 6,284 stores across 32 provincial administrative regions in China and 156 international stores. The brand's aggressive expansion strategy has positioned it as the largest premium tea beverage chain in China.

The company's growth trajectory is evident in its store count, which increased by 83% from 2023 to 2024. By the end of 2024, Bawang Cha Ji operated 6,440 stores, with 6,271 of these being franchised locations. This rapid expansion is a testament to the brand's popularity and market demand. The company's strategic focus on high-end tea beverages has resonated with consumers, driving significant growth in both revenue and market share.

Bawang Cha Ji's financial performance has been equally impressive. In 2024, the company reported a total revenue of 124.05 billion yuan and a net profit of 25.15 billion yuan. The company's Gross Merchandise Value (GMV) reached 295 billion yuan, marking a 173% increase from the previous year. This financial success is underpinned by a strong operational model, with each store generating an average monthly GMV of 512,000 yuan and serving approximately 25,000 cups of tea per month.

The company's strategic expansion into key urban areas has further bolstered its market position. By the end of 2024, Bawang Cha Ji had 696 stores in the four major cities of Beijing, Shanghai, Guangzhou, and Shenzhen, and 3,110 stores in new first-tier and second-tier cities. This urban focus has been crucial in driving the brand's growth and maintaining its competitive edge.

Bawang Cha Ji's international expansion is also noteworthy. The company has established a presence in several key markets, including Malaysia, Singapore, and Thailand, with a total of 156 international stores. This global footprint not only diversifies the company's revenue streams but also positions it as a leading player in the international tea beverage market.

Looking ahead, Bawang Cha Ji plans to open 1,000 to 1,500 new stores in China and globally in 2025. The company's first store in North America is set to open in Los Angeles, marking a significant milestone in its international expansion strategy. Additionally, the company has 207 new stores currently operational and 442 stores in the planning stages, further solidifying its growth trajectory.

Despite its rapid expansion, Bawang Cha Ji has maintained a low closure rate, with only 0.5% and 1.5% of stores closing in 2023 and 2024, respectively. This is a testament to the brand's strong operational efficiency and customer loyalty.

Bawang Cha Ji's listing on the Nasdaq is a significant step in its growth journey. The company's strong financial performance, strategic expansion, and market leadership position it well for continued success in the competitive tea beverage market. As it continues to innovate and expand, Bawang Cha Ji is poised to become a global leader in the premium tea beverage sector.