ChaPanda released its interim results on August 28. Revenue for the first half rose 6.2% year-on-year to RMB 2.66 billion (USD 394.9 million), while profit for the period increased 3.5% to RMB 345 million (USD 51.2 million).

At its earnings briefing, management said the company was focusing less on expanding store count for its own sake and more on improving store-level operations through product development and supply chain efficiency.

ChaPanda stepped up product R&D in the first half, building out a portfolio centered on ingredients including fresh fruit, fresh milk, and coffee.

Its “Litchi Iced Milk” sold more than 17 million cups in just over 50 days, according to the company. ChaPanda subsequently introduced other iced milk drinks featuring flavors including guava, grape, and lemon, expanding the category into a more distinct product line.

The company has also been broadening the occasions its products are designed to serve. Since the start of 2026, ChaPanda has introduced items positioned for light meals, including a cassava-based dessert bowl, as well as drinks marketed for everyday hydration, such as a bergamot-and-lemon beverage.

The additions extend ChaPanda’s menu beyond the traditional afternoon tea occasion and into areas including breakfast, light meals, and everyday refreshment.

A broader product range is also placing greater demands on its supply chain, particularly for fresh ingredients.

During the reporting period, ChaPanda increased the number of its warehousing and distribution centers nationwide to 27, while the share of fruit handled through its centralized distribution system rose to 91%. About 95% of its stores can now receive deliveries at least twice a week.

The company said its cold-chain network, which connects production areas with stores, helps maintain product quality and improve distribution efficiency.

ChaPanda has continued expanding in lower-tier cities while maintaining its presence in first- and second-tier markets. By the end of the reporting period, its store count had increased to 8,863. The number of stores in China’s third-tier and lower cities rose 7.2% year over year.

The company is also using its store network to expand its coffee business alongside tea. In the first half, freshly ground coffee machines had been installed in more than 2,700 ChaPanda stores, ahead of the company’s expectations at the beginning of the year.

Meanwhile, ChaPanda’s registered membership surpassed 200 million, giving the company a large base of customers it can reach directly through its own channels.

Looking ahead, the company’s growth will depend in part on whether its coffee business can develop into a meaningful profit contributor and whether it can convert its growing membership base into stronger repeat purchases.

For now, ChaPanda’s first-half results suggest that its focus is shifting from simply adding stores toward getting more from the network it already has, through a broader menu and a more efficient supply chain.

KrASIA features translated and adapted content that was originally published by 36Kr. This article was written by Yang Shuo for 36Kr.

Note: RMB figures are converted to USD at rates of RMB 6.74 = USD 1 based on estimates as of August 31, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.