A：In 2026, we will devote all our energy to the operation itself, focusing on doing every little thing that users really care about. Our goal is to make every detail of the user contact to the extreme, so as to obtain the user's heartfelt approval.

A：Organizational adjustments have gradually shown results, and overall efficiency has been significantly improved. In the past few quarters, we have carried out active organizational optimization, more accurate resource allocation, more efficient strategy implementation, and significantly enhanced team cohesion and combat effectiveness around the main business, laying a solid foundation for sustained high-quality growth.

A：We have completed a clear and complete product planning and marketing roadmap that can be implemented. The starting point is always around user needs rather than external competition. The next focus will be on products, services, environment, experience and value propositions to ensure that every store, every cup of tea and every interaction is achieved.

A：Operational efficiency continued to improve as the business returned to solid growth in the first quarter. We believe that the company's current share price is grossly undervalued and does not reasonably reflect its long-term development potential. Therefore, the board of directors of the company has approved a stock repurchase plan to repurchase ADS of no more than US $0.15 billion in the next 12 months, to convey confidence in the company's future development through practical actions, and to effectively return the trust of shareholders.

A：At present, the company's strategic direction is very clear, the team has begun to operate efficiently, and the overseas layout has been promoted in an orderly manner. The company is entering a mature, stable and sustainable high-quality development stage. We are full of confidence in every step in the future.

A：Non GAAP net income was RMB 5.67 million, an increase of more than four times over the previous quarter. Non GAAP net margin improved to 14.3 percent.

A：We continued to improve the quality of our operations. The same-store growth rate in China improved by 9.4 month-on-month, and the overall same-store growth rate also increased by 9.5 percentage points. This data proves that our strategy of focusing on user value is working. This quarter, we focused on the strategy of focusing on user value, driving performance repair from four aspects: organizational efficiency improvement, product expansion, marketing activities, and store network and quality optimization.

A：The first quarter achieved a qualitative leap in organizational efficiency through continuous optimization. The overall cost rate has decreased while the execution efficiency has been significantly improved. The organizational adjustment has enhanced the efficiency of execution, the goal is more clear and firm, and a high degree of consensus has been formed from the headquarters to the stores, and the limited resources are concentrated on activities that can create user value. The NGAP management expense rate fell 8.1 percentage points to 11.6 percent month-on-month, and the sales and marketing expense rate fell 3.6 percentage points to 8.6 percent month-on-month.

A：In the first quarter, a total of 12 new products were launched, the category boundary has been widened, including tea iron, tea special tune and other series of products, innovation rate and consumer recognition continued to improve. Among them, Dahongpao series sales performance is excellent, the indicators are higher than the historical average of new products. In addition, Yunjiao Camero has been welcomed by the market because of its unique caramel flavor and DIY sweetness participation, showing the potential to become a long-term best-selling single product.

A：At the marketing level, the early and late series of activities have been successfully carried out, making effective use of the morning and evening consumption scenarios to achieve the continuous enhancement of private domain traffic and the ability to pull new. At the same time, store network and quality priority, we take the initiative to slow down the pace of expansion, focus on single-point operating quality and store upgrades, the new business model is fully launched, strengthening the company and franchisee's interest consistency. At the end of the first quarter, the total number of global stores reached 7531, including 7157 in China and 377 overseas, and stores in overseas markets are also expanding steadily.

A：Total GMV reached RMV 7,917.8 million, up 8.1 percent from the previous quarter. Among them, GMV in mainland China increased by 7.8, while GMV overseas increased by 14.6 and achieved a year-on-year growth of 139. Clearly, overseas markets are becoming an increasingly important growth engine. The core of our strategy is to make every little thing that users care about to the extreme, so that users can verify brand value through practical actions. At the end of the first quarter, the total number of members has reached 0.248 billion, with nearly 50 million active members, up more than 11% from the previous quarter. The repurchase rate of active members remained at 42.3 percent, with members who purchased more than twice contributing more than 76 percent of orders. Every buyback of users is a true recognition of the products and experience of the overlord coffee table, and it is also our most valuable asset and the confidence to cross the cycle. The strategy has been made clear, the implementation is gradually realized, and the trust of users is our best answer.

A：The company's strategic core is to perfect every small detail that consumers truly care about, as measured by their actions and repeated purchases.

A：The company has a total of 248 million registered members, with an active member count of nearly 50 million. The repurchase rate among active members remains stable at 42.3 percent.

A：The repeated purchases made by 248 million Chinese friends indicate their trust in the brand and their willingness to return to the brand repeatedly, which is considered the company's most valuable asset and strongest foundation for navigating market cycles.

A：The company's future strategic direction includes maintaining a稳健 product launch pace, expanding into new categories like special deals, optimizing the membership system and用户体验, upgrading门店设计, making the third space a place where users want to停留, and continuing to emphasize the brand value proposition of '以茶会友' while prioritizing quality in China and expanding overseas.

A：As of March 31st, 2023, the company's tea house network totaled 7,531 locations across greater China and overseas, up 12.7 percent from 6,681 a year ago.

A：Revenue from company-owned tea houses was 820.1 million, up 234 percent from 242.8 million a year ago, due to the continued development of the company's network across China and overseas markets. Franchise tea houses contributed 2,743.9 million to total revenue, representing 77.4 percent compared to 3,149.9 million a year ago, up 12.7 percent sequentially.

A：Gross profit for the quarter, excluding costs of materials, storage, logistics, reached 1,971.5 million, resulting in a gross margin of 55.6 percent, an improvement from 53.1 percent a year ago. Non-GAAP operating income was 606.2 million, representing a 17.1 percent margin compared to a 1.0 percent margin in the previous quarter.

A：Operating costs for company-owned tea houses were 497 million, up 216.6 percent from 115 million a year ago. Non-GAAP operating income was 606.2 million, representing an operating income margin of 17.1 percent compared to 1.0 percent in the previous quarter.

A：Sales and marketing expenses for the quarter were 306.2 million, up 2.3 percent from 299.3 million a year ago. General and administrative expenses reached 462 million, up 30.9 percent year over year from 352.8 million.

A：The GAAP net income was $447.7 million, and the non-GAAP net income, excluding $59 million of share-based compensation expenses, was $567.0 million.

A：The net margin was 14.3%, and the basic and diluted net income per ordinary share was RMB 2.36 yuan and RMB 2.34 yuan, respectively. On a non-GAAP basis, the basic net income per ordinary share was RMB 2.67, and the diluted net income per ordinary share was RMB 2.65 yuan.

A：The company ended the quarter with $7,146.3 million in cash and cash equivalents, restricted cash, and time of deposit, compared to $7,892.4 million as of December 31, 2025.

A：The company remains focused on executing its established strategy, strengthening its brand value, maintaining disciplined investment to support sustainable growth, and creating long-term value for shareholders.

A：The same store GMV recovery in the first quarter was driven by a combination of factors including a positive contribution from a promotional event, effective response and承接 of increased traffic, improvements in organization and agility, and the launch of new products. The company achieved a notable turnaround in Malaysia and saw positive developments in the overall market across various geographical segments.

A：The promotional event from February 6 to 10 significantly contributed to the company's performance by generating approximately 300,000 orders daily on average through the Tiwen channel. The team efficiently responded to and captured the resulting traffic, translating it into业绩增长.

A：The新品 launch in the quarter helped drive a significant increase in both cup volume and GMV. The company introduced 12 new products that positively impacted sales. Additionally, there was a focus on expanding the offerings for early and late-day scenarios, which contributed to notable增量销售。

A：The same store GMV recovery was also bolstered by the company's international markets, especially in Malaysia, where the decline in same store GMV was notably reduced. The company introduced market-specific products that resonated with local preferences, such as the introduction of new tea offerings in Malaysia, Singapore, and other markets, which significantly improved the same store performance.