The filing of Chinese tea chain Chagee for an initial public offering in the United States marks another step towards global expansion for the company, which has already established a strong presence across China, Malaysia, Singapore, and Thailand since its founding in 2017. With over 6,400 teahouses under its belt as of December 31st, Chagee is looking to further solidify its position in the global tea market by opening its first U.S. store this spring at Westfield Century City mall in Los Angeles.
The company's net income for 2024 was $344.5 million from revenue of $1.7 billion, showcasing a promising financial performance that could attract investors to the IPO. Chagee's founder and CEO Junjie Zhang created the chain with the aim of modernizing tea drinking culture, inspired by the success of international coffee companies like Starbucks.
China is already Starbucks’ second-largest market, which highlights the potential for growth in the global tea industry. Chagee's ambitious goals include serving tea lovers in 100 countries, generating 300,000 employment opportunities worldwide, and delivering 15 billion cups of freshly brewed tea annually.
However, it is worth noting that relations between the U.S. and China have been strained recently, which could potentially impact Chagee's plans for a Nasdaq listing. Additionally, there might be some hesitation from U.S. investors due to previous experiences with Chinese companies like Luckin Coffee, which faced issues after going public on the Nasdaq in 2019 and eventually disclosed fraudulent activities in 2020.
Despite these challenges, Chagee's strong performance and ambitious goals suggest that it could still be a promising investment opportunity for those willing to take a risk on the global tea market.
[Original Article](https://www.nbcnews.com/business/business-news/chinese-tea-chain-chagee-files-us-initial-public-offering-rcna198210) #chinese #chain [Visit GhostAI](https://ghostai.pro/)
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