A：Chaji's core question is 'Why does tragedy exist?' and their guiding answer is 'To bring people together through tea.' This mission drives the company to focus on user value, starting with strategies that expand and deepen a community of people who connect with the brand's values.

A：Chaji plans to maintain and expand its brand's presence by prioritizing product excellence and authentic, wholesome experiences rooted in Eastern aesthetics. The company will continue to create engaging content, build emotional connections, and focus on store quality. Global expansion will be based on each store's health and profitability, with an aim to make every Chagga store a gathering place for friends over tea.

A：Despite short-term market fluctuations, Chaji maintains strategic resolve and deep confidence in the potential of the global tea beverage market. The company continues down the path driven by culture and equality, and remains focused on profitable growth and disciplined execution.

A：Chaji's key achievements for the third quarter include maintaining a focus on profitable growth and disciplined execution, reaching a total net revenue of 3208.3 million and a total GMV of 7929.5 million. The company continued expanding its global tea house network, reaching 7338 stores with a net addition of 100 tea houses. They successfully entered new markets like the Philippines and Vienna, and the brand earned several accolades, including the best name for an organic beverage at the 2025 World Beverage Innovation Awards. Additionally, the member ecosystem grew with a total registered membership of 222 million, and the franchisee network demonstrated remarkable stability with a stock closure rate of 0.3%.

A：Key operational achievements include reaching 7338 stores with a net addition of 100 tea houses, accelerating overseas expansion with 1854 net stores in the third quarter, and product innovation such as the low-caffeine just main T becoming a top 3 bestseller. The company also earned several accolades for product quality and leadership in healthy beverage innovation. Furthermore, the member ecosystem remains robust with a 15 million sequential increase and a 36.7% year-over-year increase in total registered members. The franchisee network demonstrated remarkable stability with a franchise closure rate of 0.3% for three consecutive quarters.

A：Chaji's total net revenue for the third quarter was 3208.3 million, with net revenue from franchisee tea houses accounting for 87.6% at 2811.6 million, and net revenue from company-owned tea houses increasing by 12.4% to 396.7 million. The revenue growth for company-owned tea houses was attributed to the expansion of the company-owned tea house network in both Greater China and overseas markets.

A：The overseas market showed substantial progress with a GMV increase of 75.3% year over year and a 27.7% quarter-over-quarter increase. The growth is mainly driven by store expansion and growing brand awareness, positioning the overseas market as a key pillar of future growth for Chaji.

A：The latest milestone in Chaji's store expansion is having a total of 262 stores as of September 30, 2025. This growth was fueled by successful entries into new markets such as the Philippines and Vienna, as well as continued expansion in Malaysia, Thailand, and Indonesia. This milestone is significant as it supports the brand's global presence and future growth potential.

A：Chaji's gross profit margin improvement, calculated by excluding cost of materials, storage, and logistics from net revenue, reached 1726.5 million, resulting in a strong gross margin of 168.6%. This marked a solid year-over-year improvement from 15.1% in the third quarter of the prior year, primarily due to the benefit of expanding economic scale and decreased purchase costs driven by persistent procurement optimization initiatives.

A：The non-GAAP operating results reflect the company's commitment to long-term and product engagement, aligning goals with shareholders to improve underlying operational performance. These results also indicate increased investments in talent recruitment for global expansion, brand building to support new product launches, research and development, and digital infrastructure to elevate customer experience.

A：General and administrative expenses were $572.4 million, up 59.7% year over year, driven by an expanded workforce and additional office facilities supporting global operations. On a non-GAAP basis, these expenses represent 13.4% of revenue compared to 9.1% a year ago.

A：The GAAP net income was $397.9 million, and the non-GAAP net income, excluding share-based compensation expenses, was $500.2 million, with a non-GAAP net income margin of 15.7% compared to 18.3% last year. This indicates the company's ability to maintain healthy profitability and margins while continuing to invest for future growth.

A：The board has approved a special cash dividend of $0.92 per share, totaling approximately $1.70 per share annually, to be paid on or around December 15, 2025, to shareholders of record as of December 8, 2025. This distribution underscores the company's commitment to enhancing shareholder value and reinforcing investor confidence in the business model.

A：The company's strategic focus is on key pillars that foster sustainable long-term shareholder value, including product innovation, strategic brand investment to enhance market presence, boosting operational efficiency to optimize resources, and driving improved performance.

A：The high-quality development strategy is being executed across four core dimensions: brand building, product innovation, experience enhancement, and channel expansion. This includes upgrading the brand, launching brand experience tea houses, growing specialty tea culture-themed locations, and focusing on product quality and a new 4.0 menu. The company is also enhancing the membership experience and reshaping the channel strategy with a strong tea house network expansion.

A：The overseas market network has seen solid growth with the entry into new markets such as the Philippines and Vietnam, and the store count in Malaysia has exceeded 200, marking a significant milestone. The company's localized products and marketing campaigns are achieving success, as evidenced by the September collaboration with Pop Mart and strong sales of the green grab series and the olong milk tea in Southeast Asia. These local globalization efforts combined with steady store expansion pace give the company strong confidence in overseas growth in Southeast Asia.