Bawang Tea Queen’s Q3 revenue fell 9.4% year-on-year, while overseas GMV rose over 75% year-on-year | Financial Report News

On November 28th, BA WANG CHA JI released its financial report for the third quarter of 2025. The report shows that despite strong operational performance, with membership numbers growing over 30% year-on-year and total store count up 26%, both revenue and profit declined. At the same time, single-store profitability in Greater China worsened, with average monthly GMV per store in the region down 28.3% year-on-year.

Of note, the company’s overseas business performed strongly this quarter, with GMV exceeding 300 million yuan, a year-on-year increase of 75.3% and a quarter-on-quarter increase of 27.7%, achieving more than 75% year-on-year growth for two consecutive quarters, demonstrating that its overseas strategy is showing significant results.

Financial performance:

Net revenue of 3.208 billion yuan (USD 450.7 million), down 9.4% year-on-yearNon-GAAP net profit of 502.8 million yuan (USD 70.6 million), down 22.2% year-on-yearOperating profit margin narrowed sharply from 22.4% to 14.2%

Key operational data:

As of September 30, total number of stores reached 7,338, up 25.9% year-on-yearTotal GMV was 7.93 billion yuan, down 4.5% year-on-year; overseas GMV was 300.3 million yuan, up 75.3% year-on-year and 27.7% quarter-on-quarterAverage monthly store GMV in Greater China dropped to 378,500 yuan, down 28.3% from 528,000 yuan a year earlierRegistered members reached 222 million, up 36.7% year-on-year

Simultaneous decline in revenue and profit, profit margins under pressure

This quarter’s report shows a double decline in revenue and profit. Total revenue was 3.208 billion yuan, down 9.4% year-on-year, indicating that overall growth momentum has slowed.

Of greater concern is the weakening profitability, with operating profit at 454 million yuan and operating margin plunging from 22.4% to 14.2% compared to the same period last year; GAAP net profit dropped to 398 million yuan, with a net profit margin of just 12.4%, significantly lower than 18.3% a year earlier. As revenue shrinks, profit pressures have become more pronounced.

Looking at business structure, domestic franchise business income fell 14.8% mainly due to intensified "subsidy competition" on domestic food delivery platforms, leading to lower sales.

Although optimization of the supply chain decreased material and logistics costs by 16.1%, cost pressures from expansion are more significant. Directly-operated store expansion drove related operational costs up 94.7%, and combined with factors like equity incentives pushed management expenses up 59.7%, together squeezing the profit margins.

Scale expansion can’t hide an efficiency crisis, overseas business emerges as a highlight

This quarter, the company’s operations showed a distinct trend of “scale growing but efficiency declining.” With 7,338 stores in total, up 25.9% year-on-year, and membership rising 36.7% to 222 million, total GMV still fell 4.5% to 7.93 billion yuan year-on-year. In detail, the structure of the company's growth is becoming polarized. Mainland China GMV fell 6.2% year-on-year, while overseas GMV surged 75.3%, but since overseas only accounts for 3.8% of the total, its overall contribution is limited.

It’s notable that operating quality in Greater China declined, with average monthly store GMV down to 378,500 yuan, same-store GMV growth rate at -27.8%, and active membership down 8.8% quarter-on-quarter, indicating core market operation efficiency has worsened.

The overseas market is the main growth highlight in the reporting period, but its strategic value is still in the investment and cultivation stage. The company accelerated overseas expansion using the self-operated store model, which boosted direct business income but directly drove up related operating costs.

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