ChaPanda boosts H1 2026 performance with new products, supply chain efficiency
ChaPanda reported a 6.2% year-on-year revenue increase to RMB 2.66 billion (USD 394.9 million) for the first half of 2026, with profit rising 3.5% to RMB 345 million (USD 51.2 million). The company is shifting its focus from store count expansion to improving store-level operations through product development and supply chain efficiency. Key initiatives included expanding its menu beyond afternoon tea to include light meals and everyday hydration drinks, as well as integrating coffee machines into over 2,700 stores. ChaPanda also enhanced its supply chain by increasing warehousing and distribution centers to 27 and centralizing fruit distribution to 91%.
ChaPanda’s H1 2026 results show a clear pivot in strategy for the Chinese beverage chain. Rather than prioritizing raw store count growth, the company is now focused on extracting more value from its existing network of 8,863 stores. This involves significant investment in product diversification, moving beyond traditional afternoon tea into breakfast, light meals, and everyday refreshment, exemplified by its "Litchi Iced Milk" selling over 17 million cups in 50 days. The expansion of its product range, particularly with fresh ingredients, necessitates a more robust supply chain. ChaPanda addressed this by increasing its warehousing and distribution centers to 27 and boosting centralized fruit distribution to 91%. The company's push into coffee, with machines in over 2,700 stores, and its registered membership surpassing 200 million, points to a strategy of deeper engagement and diversified revenue streams. The key for ChaPanda will be converting this large membership base into stronger repeat purchases and making coffee a meaningful profit contributor.
