When Chagee Meets Singapore: A Prelude to the Launch of a Tea Brand?

On March 26, 2025, Beijing time, CHA Holdings Limited officially submitted its IPO prospectus to the U.S. Securities and Exchange Commission (SEC), planning to list on Nasdaq under the ticker symbol CHA. If the listing is successful, CHA Holdings Limited will become the first U.S.-listed company in China's freshly made tea beverage industry, and the fifth listed tea beverage brand after Nayuki and Mixue Ice Cream.

According to the prospectus:

• Full-year revenue in 2024: RMB 12.405 billion.
• Net profit: RMB 2.515 billion, with a net profit margin of 20.3%, significantly higher than the industry average.
• GMV (Gross Merchandise Volume): 29.5 billion yuan, up 173% year-on-year.

Strategic positioning in the Singapore market

Singapore is not BaWangChaJi's only overseas market, but as a key high-end market it plans to focus on in 2024, it holds special strategic significance:

• In August 2024, BaWangChaJi returned to Singapore with a fully direct-operated model. The first store received over 10,000 visitors in its first three days, quickly becoming a hot topic in the local market. This is the latest example of BaWangChaJi's successful expansion into overseas markets.
• Currently, BaWangChaJi's overseas markets have covered Malaysia, Singapore, and Thailand, and it plans to enter the United States (Los Angeles) and Indonesia in 2025.
• The successful operation in Singapore validated the feasibility of its direct operation + localization model, providing experience for subsequent expansion into European and American markets.

Use of proceeds from IPO

The prospectus shows that the funds raised in this IPO will be mainly used for:

• Global store expansion: Plans to add 1,000-1,500 stores by 2025, with a focus on high-tier cities in China and overseas markets.
• Supply chain development: Build regional supply chain networks to reduce cross-border logistics costs.
• Product development and technology upgrades: including freshly brewed tea technology and health-oriented product lines (such as low-caffeine series).

Singapore's core competitive advantages in its business environment

Although there is no direct proof, Singapore, as an important fulcrum of BaWangChaJi's overseas strategy, provides key support for the company's globalization layout through its international business environment and policy support.