Cha Bai Dao Reports Over 6% Revenue Growth in First Half

Chinese tea and beverage chain Cha Bai Dao released its mid-year performance report, showing a 6.2% increase in revenue to 2.66 billion yuan for the first half of the year. The company's net profit grew by 3.5% to 345 million yuan.

Company management cited a core strategy of prioritizing product innovation and supply chain efficiency over blindly increasing store count. This approach has led to a substantial improvement in the quality of operations at the terminal level.

During the first half, Cha Bai Dao intensified product research and development, establishing a product matrix centered around core ingredients such as fresh fruit, fresh milk, and coffee. Notably, its "Lychee Ice Milk" product achieved sales of over 17 million cups within a 50-day sales period, leading to the introduction of a series of similar flavored ice milk products.

The company has also expanded its offerings beyond traditional beverages, introducing meal replacement products like "Hearty Tapioca Dessert Bowls" and hydrating options such as "Buddha's Hand Lemonade." This diversification has shifted Cha Bai Dao's positioning from a traditional afternoon tea provider to catering to broader consumption scenarios, including breakfast, light meals, and daily hydration.

To support this expanding product boundary, Cha Bai Dao has enhanced its backend supply chain capabilities. The number of national warehousing and distribution centers has increased to 27, with fruit distribution rates reaching 91%. Approximately 95% of stores receive deliveries twice or more per week, ensuring product quality and reducing supplier trial-and-error costs. As of the reporting period, Cha Bai Dao's total number of stores reached 8,863, with a particular focus on expanding into lower-tier cities.