Chacha Food, Huatai Group form joint venture for leisure food supply chain

Chacha Food's wholly-owned subsidiary, Shanghai Chuangweilai Investment Co., will co-invest with controlling shareholder Hefei Huatai Group to establish Shanghai Kunze Investment Co.

Chuangweilai will contribute RMB160 million for a 40% stake, while Hefei Huatai Group will contribute RMB240 million for a 60% stake in the new company, which will focus on the leisure food supply chain. This move aims to optimize resource allocation, enhance competitiveness, and achieve strategic win-win outcomes.

The joint venture was approved at a board meeting on October 23, 2025. Key related party directors recused themselves from the vote. As of September 30, 2025, Chacha Food's total related party transactions with Hefei Huatai Group amounted to RMB45.4191 million, excluding this new transaction.

Chacha Food's Q3 2025 report shows a net profit attributable to shareholders of RMB79.3599 million, a 72.58% decrease year-on-year for the quarter. For the first nine months, net profit was RMB168.0015 million, a 73.17% decrease year-on-year. The company repurchased 1,055,192 shares, representing 0.209% of its total share capital, with a total transaction value of RMB27.6599 million.