A：The strategic direction for Chaji's business model is to bring people together through tea, focusing on user value as the starting point for all strategies. The company aims to expand and deepen a community that connects with their brand value, prioritizing product excellence and a distinctive user experience rooted in Eastern aesthetics. Chaji is dedicated to delivering high-quality products over chasing traffic and trends, ensuring store quality, and pursuing global expansion based on the health and profitability of each store.

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 such as the Philippines and Vienna, and experienced strong product innovation, including the launch of low-caffeine Just Maang as a top 3 bestseller and Oya Just Aine Green Milk Tea winning the best name or organic beverage title at the 2025 World Beverage Innovation Awards. Additionally, the member ecosystem remained robust with a total registered membership of 222 million.

A：Chaji's business model performed well despite a challenging macro environment, maintaining a focus on profitable growth and disciplined execution. The total net revenue for the third quarter was 3208.3 million, with a decrease of 9.4% year over year but an increase of 3.7% sequentially. The non GAAP net income was 193.4 million with a non GAAP net margin of 15.7%. This reflects underlying resilience and strong profitability.

A：Chaji's store expansion efforts in the third quarter resulted in a total of 262 stores, marking a successful entry into the Philippines and the Vienna, along with continued expansion in Malaysia, Thailand, and Indonesia. New stores were added in Malaysia, Thailand, and Indonesia, strengthening the brand and attracting top talent. In Greater China, despite a decrease in GMV and average monthly GME per store, the company maintained a premium position and brand integrity. Overseas markets showed substantial progress with a 75.3% year-over-year increase in GMV and a 27.7% quarter-over-quarter rise. The GMV growth is mainly driven by store expansion and growing brand awareness.

A：The same-store GMV is under pressure with a decline of 27.9% in domestic sales and 23.4% overall, attributed to a high base from the same period last year and intensified competitive pressure. However, the franchisee fundamentals remain solid, evidenced by a consistently low closure rate. The company expects same-store GMV growth to remain under pressure in the near term. The franchisee network stability is crucial for the company's growth and brand health.

A：Chaji achieved a gross profit of 1726.5 million with a strong gross margin of 152%, marking a solid improvement from the third quarter of the previous year when the margin was 15.1%. The margin improvement is attributed to two factors: the benefit of expanding economic scale and decreased purchase costs driven by persistent procurement optimization initiatives. This improvement is a key achievement as it signifies better cost control and operational efficiency.

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. They also reflect an increased investment in talent recruitment for global expansion, including brand building to support new product launches, research and development, and digital infrastructure to elevate customer experience.

A：Share-based compensation expenses had a significant impact on the operating income, with a year-over-year increase, resulting in a lower non-GAAP operating margin compared to the prior year. The exact figures for the non-GAAP operating income and margin were not provided in the transcript but were mentioned to have been impacted by these expenses.

A：The company's operating costs have been on an upward trend. Company-owned tea house operating costs were up 94.7% from a year ago and 47.4% from the second quarter of 2025. However, on a per store basis, operating costs have decreased, indicating improved efficiency. Other operating costs increased by 7.3%, accounting for 5.4% of revenue compared to 4.7% a year ago. This suggests a continuous improvement in operational efficiency despite the overall increase in costs.

A：The GAAP net income represents the company's profitability under generally accepted accounting principles, while the non-GAAP net income reflects profitability excluding share-based compensation expenses. Both figures provide insights into the company's financial performance, with the non-GAAP figure showing a 15.7% non-GAAP net income margin compared to 18.3% last year. This information illustrates the company's ability to maintain profitability while investing for future growth.

A：The rationale behind the special cash dividend distribution is to enhance shareholder value, reinforce investor confidence in the company's business model, and showcase the company's strong cash generation ability. The dividend also signifies the company's conviction in its trajectory and market confidence in its long-term prospects.

A：The company's high-quality development strategy will be executed across four core dimensions: brand building, product innovation, customer experience, and channel expansion. This includes upgrading the brand, launching brand experience tea houses, growing specialty tea houses, and enhancing the product system with premium standards, core raw materials, and food quality. The company will also introduce the 4.0 menu for consistent quality and drive cross-category innovation with new consumption scenarios. Additionally, the membership experience will be improved, and the channel strategy will be reshaped with a steady pace of tea house expansion and the introduction of standout flagship tea houses.

A：The overseas network has been a growth driver, with the company expanding into new markets such as the Philippines and Vietnam, and increasing its store count in Malaysia to over 200. Localized products and marketing campaigns have generated strong signals, evidenced by successful collaborations and high sales figures in Southeast Asia. The company is confident in its overseas growth in Southeast Asia and plans to continue deepening its presence in these markets.