Analysis of Bawang Cha Ji's Qingyin Products and Its Performance Decline Trend

Based on public data and market information, this article conducts a comprehensive analysis of whether Bawang Cha Ji’s Qingyin products can alleviate its performance decline trend.

Bawang Cha Ji is indeed facing significant performance decline pressure. According to its Q3 2025 financial report data:

• Net profit attributable to shareholders has declined year-over-year for two consecutive quarters [1]
• Domestic same-store sales decreased by 27.9%, overseas same-store sales decreased by 23.4% [1]
• The company’s CFO Huang Hongfei publicly acknowledged that existing stores’ GMV is under pressure, and it is expected that same-store GMV growth will remain under pressure in the short term [1]

• 2024 GMV reached 29.5 billion yuan, a year-over-year increase of 173% [2]
• 2024 net profit was 2.515 billion yuan, with a net profit margin of 20.3% [3]
• Global store count reached 7,338, continuing rapid expansion [1]
• Overseas business GMV increased by 75.3% year-over-year, with growth rate exceeding 75% for two consecutive quarters [1]

This comparison reveals Bawang Cha Ji’s current core contradiction:

.

The Qingyin series products launched by Bawang Cha Ji are important strategic initiatives to respond to market changes:

• Adopts
  supercritical carbon dioxide extraction technology
  to reduce caffeine by approximately 50% [4]
• The difference rate is controlled at 0.2‰ to ensure accurate disclosure of trace elements [4]
• Implemented in conjunction with the
  nutritional grading system
  , referencing Singapore’s RT beverage nutritional grading system [4]

• Targets the growing demand for healthy tea beverages
• Focuses on the “health-oriented” label to respond to the improvement of users’ health awareness [4]
• Solves the health trust issues left by milk tea through transparent disclosure of formulas and trace elements [4]

The healthification of tea beverages has become a clear industry trend, and Qingyin products align with the consumption upgrade trend [4]. As consumers’ health awareness improves, low-caffeine products can meet the needs of specific consumer groups.

Through the disclosure of formulas and trace elements, with a difference rate of only 0.2‰, this transparency strategy helps rebuild consumer trust, enhance brand credibility, and avoid negative impacts [4].

The technical barrier formed by Qingyin technology can serve as a competitive moat, and the supercritical carbon dioxide extraction process is advanced in the industry [4].

According to the company’s management analysis, the decline in same-store GMV is mainly due to: high base effect from last year, intensified competitive pressure, and diminishing marginal effect of scale dividends [5]. These structural factors cannot be solved by Qingyin products alone.

Heytea and Nayuki’s Tea are counterattacking by sinking to lower-tier markets, while Guming and Mixue Bingcheng are squeezing the mid-end market [5]. Although Qingyin products have differentiation, they are unlikely to reverse the competitive landscape alone.

Qingyin products mainly attract consumer groups sensitive to caffeine, with relatively limited market capacity, making it difficult to cover the company’s overall consumer groups.

Currently, there is a lack of specific sales contribution data for the Qingyin series products in public information, making it difficult to evaluate their actual pulling effect on overall performance.

Qingyin products

The decline in same-store sales by 27.9% and 23.4% is significant, and Qingyin products are unlikely to reverse this trend in the short term. The company’s management expects that “same-store GMV growth will remain under pressure in the short term” [1], which also confirms this judgment.

Qingyin products represent the company’s accurate grasp of the health-oriented trend, building differentiated competitiveness through technological innovation and transparency strategies, which aligns with the company’s brand positioning of “Connecting the World with Oriental Tea”. From the perspective of brand building and long-term competitiveness, it has important strategic significance.

To truly alleviate the performance decline, Bawang Cha Ji needs to make efforts from multiple dimensions:

• Improve single-store operational efficiency and promote “one store, one strategy” digital transformation [5]
• Optimize the franchisee profit model to ensure expansion quality [5]
• Strengthen competitive barriers through supply chain advantages (self-built Yunnan Pu’er tea base) and cultural IP [5]
• Seek incremental markets through global expansion; overseas business has shown 75.3% growth potential [1]

[1] Stock price plummeted, once hit the hot search! Some people said “I couldn’t sleep all night after drinking it”, Bawang Cha Ji issued a long article in response (https://app.myzaker.com/news/article.php?pk=6950cf388e9f097f393bbf50)
[2] Bawang Cha Ji will list in the US with stock code CHA (https://hk.finance.yahoo.com/video/霸王茶姬將赴美上市-股票代碼cha-090000834.html)
[3] Bawang Cha Ji - Wikipedia (https://zh.wikipedia.org/zh-hans/霸王茶姬)
[4] Bawang Cha Ji reduces caffeine by approximately 50%: Modern tea beverages continue to pursue healthification? (https://m.ebrun.com/575601.html)
[5] Who is the leader in the milk tea industry: Heytea or Bawang Cha Ji? (https://www.zhihu.com/question/1905035758219273900)