Amid continuous economic decline in China and sluggish consumer spending, various industries are facing challenges. Over the past year, against the backdrop of a price war on food delivery platforms, ChaJi Holdings Limited (Bawang ChaJi) saw its net profit halved. The annual net profit attributable to the parent company was 1.135 billion yuan (RMB), a stunning 52.4% decrease year-on-year, with the fourth-quarter net profit plummeting by 95.3%.
On the evening of March 31, Bawang ChaJi (NASDAQ: CHA) released its financial performance data for the fourth quarter and full year of 2025.
In 2025, Bawang ChaJi’s annual net revenue increased by 4% year-on-year to 12.907 billion yuan. Operating profit was 1.347 billion yuan, dropping by 53.33% year-on-year. The annual net profit attributable to the parent company was 1.135 billion yuan, marking a 52.4% decline year-on-year. Non-GAAP net profit (net profit excluding share-based payment expenses) stood at 1.91 billion yuan, declining by over 20% year-on-year. Basic earnings per ordinary share were 6.27 yuan, down by 56% year-on-year.
In the fourth quarter of 2025, Bawang ChaJi generated revenue of 2.974 billion yuan, a decrease of 10.8% year-on-year. The operating profit recorded a loss of 35.5 million yuan, compared to a profit of 640 million yuan in the same period last year, turning from profit to loss year-on-year.
The net profit attributable to the parent company was 28.538 million yuan, down by 95.3% year-on-year. Non-GAAP net profit was 100 million yuan, a sharp decline of over 80% year-on-year compared to 640 million yuan in the same period last year. Basic earnings per ordinary share were 0.15 yuan, nearly a 96% decrease year-on-year.
According to the financial report, the decline in revenue in the fourth quarter of last year was mainly due to the difference in timing and pace of new product launches between the past two years, as well as changes in the subsidy competition on China’s online food delivery platforms.
During the evening, Zhang Junjie, the founder, chairman, and global CEO of Bawang ChaJi, replied to analysts’ questions during a conference call, stating, “We underestimated the complexity and timeliness of organizational adjustments as a major corporation. I honestly want to tell everyone that in 2025, ChaJi basically fell behind for about half a year. I want to apologize for that. The (new tea drink) market in 2025 exceeded expectations, and we indeed underestimated the impact of the price war on food delivery platforms on offline operations.”
As of the stock market closing on March 31, Bawang ChaJi’s (NASDAQ: CHA) stock price was $9.33, a decrease of 2.91%. So far this year, its stock price has fallen by nearly 20%.
On April 17 last year, Bawang ChaJi debuted on the Nasdaq stock exchange, with the trading price on its first day reaching as high as $41.8.
Public records show that Bawang ChaJi was established in June 2017 and is a premium freshly brewed tea brand. Headquartered in the Jinniu District of Chengdu City, the brand’s products mainly focus on fresh milk tea made from original leaves, covering a series of pure tea, freshly brewed tea, fruit tea, and peripheral derivative products. Since its establishment, Zhang Junjie has served as the chairman and CEO.
By the end of 2025, Bawang ChaJi had a total of 7453 global stores, a 15.7% year-on-year increase, including 345 overseas stores. The company expanded to four new countries, including Indonesia, the United States, the Philippines, and Vietnam, in addition to its earlier presence in Singapore, Malaysia, and Thailand, making its presence felt in seven overseas markets.