TH International Limited (Nasdaq: THCH), the exclusive operator of
Tim Hortons coffee shops and Popeyes restaurants in China (“Tims
China” or the “Company”) today announced its unaudited financial
results for the Third quarter 2023.
THIRD QUARTER
2023 HIGHLIGHTS
- Total revenues
reached a quarterly record of RMB436.4 million (USD59.8 million),
representing a 42.7% increase from the same quarter of 2022.
- Net new store
openings totaled 63 (14 company owned and operated stores
and 45 franchised stores for Tims, 4 company owned and operated
stores for Popeyes), resulting in 763 system-wide
stores at quarter-end.
- Loyalty club grew
to 16.9 million members, representing 90.3% year-over-year
growth.
- Adjusted store
EBITDA1 was RMB29.3 million (USD4.0
million), representing a 91.5% year-over-year growth compared to
RMB15.3 million in the same quarter in 2022.
- Adjusted store EBITDA
margin2 was 7.5%, representing an
increase of 2.2% from the same quarter in 2022.
________________________1 Adjusted store EBITDA is
calculated as fully burdened gross profit3 of company owned and
operated stores excluding depreciation & amortization and store
pre-opening expenses.2 Adjusted store EBITDA margin is
calculated as adjusted store EBITDA as a percentage of revenues
from company owned and operated stores.3 Fully burdened gross
profit of company owned and operated stores, the most comparable
GAAP measure to adjusted store EBITDA, was a loss of RMB22.3
million (USD3.1 million) for the three months ended September 30,
2023, compared to a loss of RMB19.6 million in the same quarter of
2022.
COMPANY MANAGEMENT
STATEMENT
Mr. Yongchen Lu, CEO & Director of Tims
China, commented, “In Q3 2023, we delivered 42.7% year-over-year
top-line growth, and set quarterly records for three critical
metrics: revenue, adjusted store EBITDA, and adjusted store EBITDA
margin. We want to express our sincere gratitude to our 16.9
million registered loyalty club members, their continuous support
and patronage inspire us to deliver an outstanding guest experience
every time and improve every day. During the quarter, we continued
to increase our presence in our existing cities, building density
and delivering convenience for our guests. We also rapidly expanded
our Tim Hortons franchised store network, driving capital efficient
growth, and penetrated new cities such as Yibin, Handan, and
Lanzhou, among others. Tims launched 21 new beverages and 11 new
food products in Q3 2023, our buffalo milk latte, watermelon cold
brew, and smile bagel-blueberry series were among the best-sellers.
To further enhance customers’ perception of Tim’s unique “coffee
plus warm food” brand image, we are also in the process of
renovating our store designs so that our freshly handmade food
preparation process can be visualized to our guests.”
Mr. Lu added, “Since the grand opening of our
first Popeyes restaurant in Shanghai on August 19, we’ve
successfully opened another 6 restaurants at premium locations in
Shanghai as of today and are on track to have 10 restaurants open
and operating by year-end. Our locally-relevant menu, appealing
store design and environment, and efficient digital ordering
process have proven popular with our customers, as evidenced by
over RMB29,000 average daily sales per restaurant
year-to-date.”
Mr. Dong (Albert) Li, CFO of Tims China,
commented, “As we scale our business, we have demonstrated
meaningful expansion in store profitability and leverage in general
and administrative expenses. Specifically, in the third quarter,
adjusted store EBITDA margin increased by 2.2 percentage points and
adjusted general and administrative expenses as a percentage of
total revenues decreased by 1.3 percentage points year-over-year.
Managing our cost structure effectively is very important to us, we
continue to implement various optimization measures, targeting
shorter payback periods and further improvements in store-level
profitability.”
Mr. Li continued, “Looking forward, one of our
top near-term priorities is to drive capital-efficient growth via
building density in our existing markets, entry into attractive new
cities, and accelerating our use of sub-franchising. We are also
squarely focused on profitability, as is demonstrated in our
continuously improving margins.”
THIRD QUARTER
2023 FINANCIAL
RESULTS
Total revenues reached RMB436.4
million (USD59.8 million) for the three months ended September 30,
2023, representing an increase of 42.7% from RMB305.7 million in
the same quarter of 2022. Total revenues comprise:
- Revenues from Company owned
and operated store sales were RMB390.8 million (USD53.6
million) for the three months ended September 30, 2023,
representing an increase of 34.8% from RMB290.0 million in the same
quarter of 2022. The growth was primarily driven by an increase in
the number of company owned and operated stores from 454 as of
September 30, 2022 to 589 as of September 30, 2023.
- Other revenues
were RMB45.6 million (USD6.3 million) for the three months ended
September 30, 2023, representing an increase of 190.3% from RMB15.7
million in the same quarter of 2022. The growth was primarily
attributable to the rapid expansion of our e-commerce business and
an increase in franchise fees and revenues from other franchise
support activities, which was attributable to an increase in the
number of franchised stores from 32 as of September 30, 2022 to 174
as of September 30, 2023.
Company owned and operated store costs
and expenses were RMB400.5 million (USD54.9 million) for
the three months ended September 30, 2023, representing an increase
of 33.6% from RMB299.9 million in the same quarter of 2022. Company
owned and operated store costs and expenses comprise:
- Food and packaging
costs were RMB137.5 million (USD18.9 million),
representing an increase of 42.4% from RMB96.6 million, in line
with our revenue growth and store network expansion. Food and
packaging costs as a percentage of revenues from company owned and
operated stores increased by 1.9 percentage points from 33.3% in
the third quarter of 2022 to 35.2% in the same quarter of 2023
driven by promotional activities to attract more customers.
- Rental and property
management fee was RMB77.4 million (USD10.6 million),
representing an increase of 71.3% from RMB45.2 million, mainly due
to the increase in the number of company owned and operated stores
from 454 as of September 30, 2022 to 589 as of September 30, 2023
and also one-time rent concessions that we received during the
third quarter of 2022. As a result, rental and property management
fee as a percentage of revenues from company owned and operated
stores increased by 4.2 percentage points from 15.6% in the third
quarter of 2022 to 19.8% in the same quarter of 2023.
- Payroll and employee
benefits expenses were RMB79.3 million (USD10.9 million),
representing an increase of 20.1% from RMB66.0 million. Payroll and
employee benefits as a percentage of revenues from company owned
and operated stores decreased by 2.5 percentage points from 22.8%
in the third quarter of 2022 to 20.3% in the same quarter of 2023,
primarily due to the continuous refinement of staffing systems and
procedures.
- Delivery costs
were RMB34.2 million (USD4.7 million), representing an increase of
44.8% from RMB23.6 million, due to an increased proportion of
home-delivery orders. Delivery costs as a percentage of revenues
from company owned and operated stores increased by 0.6 percentage
points to 8.7% in the third quarters of 2023 compared to that of
the same quarter in 2022.
- Other operating
expenses were RMB35.7 million (USD4.9 million),
representing a decrease of 5.8% from RMB37.9 million, driven by
cost optimization measures and deployment of systems to improve
daily operation efficiency, for example, an automated stocktaking
system. Other operating expenses as a percentage of revenues from
company owned and operated stores decreased by 4.0 percentage
points from 13.1% in the third quarter of 2022 to 9.1% in the same
quarter of 2023.
- Store depreciation and
amortization expenses was RMB36.5 million (USD5.0
million), representing an increase of 19.1% from RMB30.6 million,
driven by an increase in the number of company owned and operated
stores from 454 as of September 30, 2022 to 589 as of September 30,
2023. Store depreciation and amortization as a percentage of
revenues from company owned and operated stores decreased by 1.3
percentage points from 10.6% in the third quarter of 2022 to 9.3%
in the third quarter of 2023.
Costs for other revenues were
RMB42.1 million (USD5.8 million) for the three months ended
September 30, 2023, representing an increase of 345.6% from RMB9.5
million in the same quarter of 2022, which was primarily driven by
an increase in the number of franchised stores from 32 as of
September 30, 2022 to 174 as of September 30, 2023 and the
incurrence of higher cost of product sales related to our
e-commerce business during the third quarter of 2023. Costs for
other revenues as a percentage of other revenues increased by 32.1
percentage points from 60.2% in the third quarter of 2022 to 92.3%
in the same quarter of 2023 due to higher discounts and more
promotional activities offered to consumers of our e-commerce
business.
Marketing expenses were RMB34.4
million (USD4.7 million) for the three months ended September 30,
2023, representing an increase of 38.5% from RMB24.9 million in the
same quarter of 2022, which was primarily attributable to the
increase in the number of our system-wide stores from 486 as of
September 30, 2022 to 763 as of September 30, 2023. Marketing
expenses as a percentage of total revenues decreased by 0.2
percentage points from 8.1% in the third quarter of 2022 to 7.9% in
the same quarter of 2023.
General and administrative
expenses were RMB71.1 million (USD9.7 million) for the
three months ended September 30, 2023, representing a decrease of
35.1% from RMB109.6 million in the same quarter of 2022, which was
primarily due to: (i) a decrease in share-based compensation
expenses; and (ii) a decrease in professional fees.
Adjusted general and administrative expenses,
which excludes share-based compensation expenses of RMB3.0 million
(USD0.4 million) and professional fees related to warrant exchange
and other financing programs of RMB4.6 million (USD0.6 million),
were RMB63.4 million (USD8.7 million). Adjusted general and
administrative expenses as a percentage of total revenues decreased
by 1.3 percentage points from 15.8% in the third quarter of 2022 to
14.5% in the same quarter of 2023. For more
information on the Company’s non-GAAP financial measures, please
see the section “Non-GAAP Financial Measures” and the table
captioned “Reconciliation of Non-GAAP Measures to the Most Directly
Comparable GAAP Measures” set forth at the end of this earnings
release.
Franchise and royalty expenses
were RMB15.5 million (USD2.1 million) for the three months ended
September 30, 2023, representing an increase of 40.8% from RMB11.0
million in the same quarter of 2022, which was in line with our
top-line growth and was primarily driven by the increase in the
number of our system-wide stores from 486 as of September 30, 2022
to 763 as of September 30, 2023. Franchise and royalty expenses as
a percentage of total revenues remained flat at 3.6% in the third
quarters of 2022 and 2023.
As a result of the foregoing, operating
loss was RMB159.7 million (USD21.9 million) for the three
months ended September 30, 2023, compared to RMB150.5 million in
the same quarter of 2022.
Adjusted Corporate EBITDA was a
loss of RMB70.2 million (USD9.6 million) for the three months ended
September 30, 2023, compared to a loss of RMB47.6 million in the
same quarter of 2022. Adjusted Corporate EBITDA
margin was negative 16.1% in the third quarter of 2023,
compared to negative 15.6% in the same quarter of 2022.
Net loss was RMB159.7 million
(USD21.9 million) for the three months ended September 30, 2023,
compared to RMB195.0 million for the same quarter of 2022.
Adjusted net loss was RMB107.9 million (USD14.8
million) for the three months ended September 30, 2023, compared to
RMB87.5 million for the same quarter of 2022. Adjusted net loss
margin was negative 24.7% in the third quarter of 2023,
representing an improvement of 3.9 percentage points from negative
28.6% in the same quarter of 2022.
Basic and diluted net loss per ordinary
share was RMB1.01 (USD0.14) in the third quarter of 2023,
compared to RMB1.56 in the same quarter of 2022. Adjusted
basic and diluted net loss per ordinary share was RMB0.69
(USD0.09) in the third quarter of 2023, compared to RMB0.70 in the
same quarter of 2022.
Liquidity
As of September 30, 2023, the Company’s total
cash and cash equivalents and short-term investments were RMB461.8
million (USD63.3 million), compared to RMB611.5 million as of
December 31, 2022. The change was primarily attributable to the
settlements with investors who entered into an Equity Support
Agreement dated March 8, 2022, as amended (the “ESA”) with us, and
cash disbursements as a result of the rapid expansion of our
business and store network nationwide, offset by an increase in
bank borrowings.
KEY OPERATING DATA
|
For the three months ended or as of |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
2021 |
2022 |
2022 |
2022 |
2022 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stores |
390 |
|
|
424 |
|
|
440 |
|
|
486 |
|
|
617 |
|
|
648 |
|
|
700 |
|
|
763 |
|
Company owned and operated stores |
373 |
|
|
403 |
|
|
419 |
|
|
454 |
|
|
547 |
|
|
551 |
|
|
571 |
|
|
589 |
|
Franchised stores |
17 |
|
|
21 |
|
|
21 |
|
|
32 |
|
|
70 |
|
|
97 |
|
|
129 |
|
|
174 |
|
Same-store sales growth for system-wide stores |
8.2 |
% |
|
4.4 |
% |
|
-6.1 |
% |
|
8.1 |
% |
|
-8.0 |
% |
|
7.5 |
% |
|
19.9 |
% |
|
0.1 |
% |
Same-store sales growth for company owned and operated stores |
8.8 |
% |
|
5.5 |
% |
|
-5.3 |
% |
|
7.5 |
% |
|
-7.1 |
% |
|
8.0 |
% |
|
20.4 |
% |
|
-0.4 |
% |
Registered loyalty club members (in thousands) |
5,969 |
|
|
6,907 |
|
|
7,532 |
|
|
8,862 |
|
|
11,250 |
|
|
12,386 |
|
|
14,721 |
|
|
16,898 |
|
Adjusted store EBITDA (Renminbi in thousands) |
8,780 |
|
|
(25,011 |
) |
|
(43,787 |
) |
|
15,325 |
|
|
12,796 |
|
|
6,002 |
|
|
18,244 |
|
|
29,310 |
|
Adjusted store EBITDA margin |
4.1 |
% |
|
-11.9 |
% |
|
-26.6 |
% |
|
5.3 |
% |
|
4.7 |
% |
|
1.9 |
% |
|
5.0 |
% |
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY DEFINITIONS
- Same-store sales growth. The
percentage change in the sales of stores that have been operating
for 12 months or longer during a certain period compared to the
same period from the prior year. The same-store sales growth for
any period of more than a month equals to the arithmetic average of
the same-store sales growth of each month covered in the period. If
a store was closed for seven days or more during any given month,
its sales during that month and the same month in the comparison
period are excluded for purposes of measuring same-store sales
growth.
- Net new store openings. The
gross number of new stores opened during the period minus the
number of stores permanently closed during the period.
- Adjusted store EBITDA. Calculated
as fully-burdened gross profit of company owned and operated stores
excluding depreciation and amortization, and store pre-opening
expenses.
- Adjusted store EBITDA margin.
Calculated as adjusted store EBITDA as a percentage of revenues
from company owned and operated stores.
- Adjusted general and administrative
expenses. Calculated as general and administrative expenses
excluding share-based compensation expenses, expenses related to
the issuance of certain ordinary shares to CF Principal Investments
LLC in November 2022 (the “Commitment Shares”), offering costs
related to the ESA (the “ESA Offering Costs”), expenses related to
200,000 of our ordinary shares that may be purchased from our
controlling shareholder by a holder of our convertible notes at its
option pursuant to the terms of an Option Agreement dated September
28, 2022 (the “Option Shares”), and professional fees related to
warrant exchange and other financing programs.
- Adjusted corporate EBITDA.
Calculated as operating loss excluding store pre-opening expenses,
and certain non-cash expenses consisting of depreciation and
amortization, share-based compensation expenses, expenses related
to the Commitment Shares, the ESA Offering Costs, expenses related
to the Option Shares, professional fees related to warrant exchange
and other financing programs, impairment losses of long-lived
assets and loss on disposal of property and equipment.
- Adjusted corporate EBITDA margin.
Calculated as adjusted corporate EBITDA as a percentage of total
revenues.
- Adjusted net loss. Calculated as
net loss excluding store pre-opening expenses, share-based
compensation expenses, expenses related to the Commitment Shares,
the ESA Offering Costs, expenses related to the Option Shares,
professional fees related to warrant exchange and other financing
programs, impairment losses of long-lived assets, loss on disposal
of property and equipment, changes in fair value of convertible
notes, changes in fair value of warrant liabilities; and changes in
fair value of ESA derivative liabilities.
- Adjusted net loss margin.
Calculated as adjusted net loss as a percentage of total
revenues.
- Adjusted basic and diluted net loss
per ordinary share. Calculated as adjusted net loss attributable to
the Company’s ordinary shareholders divided by weighted-average
number of basic and diluted ordinary share.
USE OF NON-GAAP FINANCIAL
MEASURES
The Company uses non-GAAP financial measures,
namely adjusted store EBITDA, adjusted store EBITDA margin,
adjusted general and administrative expenses, adjusted corporate
EBITDA, adjusted corporate EBITDA margin, adjusted net loss,
adjusted net loss margin, and adjusted basic and diluted net loss
per ordinary share in evaluating its operating results and for
financial and operational decision-making purposes. The Company
defines (i) adjusted store EBITDA as fully-burdened gross profit of
company owned and operated stores excluding depreciation and
amortization, and store pre-opening expenses; (ii) adjusted store
EBITDA margin as adjusted store EBITDA as a percentage of revenues
from company owned and operated stores; (iii) adjusted general and
administrative expenses as general and administrative expenses
excluding share-based compensation expenses, expenses related to
the Commitment Shares, the ESA Offering Costs, and expenses related
to the Option Shares; (iv) adjusted corporate EBITDA as operating
loss excluding store pre-opening expenses, and certain non-cash
expenses consisting of depreciation and amortization, share-based
compensation expenses, expenses related to the Commitment Shares,
the ESA Offering Costs, expenses related to the Option Shares,
impairment losses of long-lived assets and loss on disposal of
property and equipment; (v) adjusted corporate EBITDA margin as
adjusted corporate EBITDA as a percentage of total revenues; (vi)
adjusted net loss as net loss excluding store pre-opening expenses,
share-based compensation expenses, expenses related to the
Commitment Shares, the ESA Offering Costs, expenses related to the
Option Shares, impairment losses of long-lived assets, loss on
disposal of property and equipment, changes in fair value of
convertible notes, changes in fair value of warrant liabilities;
and changes in fair value of ESA derivative liabilities; (vii)
adjusted net loss margin as adjusted net loss as a percentage of
total revenues; (viii) adjusted basic and diluted net loss per
ordinary share as adjusted net loss attributable to the Company’s
ordinary shareholders divided by weighted-average number of basic
and diluted ordinary share. The Company believes adjusted store
EBITDA, adjusted store EBITDA margin, adjusted general and
administrative expenses, adjusted corporate EBITDA, adjusted
corporate EBITDA margin, adjusted net loss, adjusted net loss
margin, and adjusted basic and diluted net loss per ordinary share
enhance investors' overall understanding of its financial
performance and allow for greater visibility with respect to key
metrics used by its management in its financial and operational
decision-making.
These non-GAAP financial measures are not
defined under U.S. GAAP and are not presented in accordance with
U.S. GAAP. As these non-GAAP financial measures have limitations as
analytical tools and may not be calculated in the same manner by
all companies, they may not be comparable to other similarly titled
measures used by other companies. The Company compensates for these
limitations by reconciling the non-GAAP financial measures to the
nearest U.S. GAAP performance measures, which should be considered
when evaluating the Company’s performance. For reconciliation of
these non-GAAP financial measures to the most directly comparable
GAAP financial measures, please see the section of the accompanying
tables titled, “Reconciliation of GAAP and Non-GAAP Results.” The
Company encourages investors and others to review its financial
information in its entirety and not rely on any single financial
measure.
EXCHANGE RATE INFORMATION
This press release contains translations of
certain RMB amounts into U.S. dollars (“USD”) at specified rates
solely for the convenience of the reader. Unless otherwise stated,
all translations from RMB to USD were made at the rate of RMB7.2960
to USD1.00, the exchange rate in effect on September 29, 2023 set
forth in the H.10 statistical release of the Federal Reserve Board.
The Company makes no representation that the RMB or USD amounts
referred could be converted into USD or RMB, as the case may be, at
any particular rate or at all.
PRE-RECORDED PRESENTATION
The Company will host a pre-recorded
presentation that will be available beginning at Wednesday,
November 15th, 2023, at 8:00 am Eastern Time (or Wednesday,
November 15th, 2023, at 9:00 pm Beijing Time) from the Investor
Relations website at https://ir.timschina.com under “Events and
Presentations”.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may be
considered forward-looking statements within the meaning of the
“safe harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995, such as the Company’s ability to
further grow its business and store network, optimize its cost
structure, improve its operational efficiency and achieve
profitable growth. Forward-looking statements are statements that
are not historical facts and generally relate to future events or
the Company’s future financial or other performance metrics. In
some cases, you can identify forward-looking statements by
terminology such as “believe,” “may,” “will,” “potentially,”
“estimate,” “continue,” “anticipate,” “intend,” “could,” “would,”
“project,” “target,” “plan,” “expect,” or the negatives of these
terms or variations of them or similar terminology. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from those
expressed or implied by such forward looking statements. New risks
and uncertainties may emerge from time to time, and it is not
possible to predict all risks and uncertainties. These
forward-looking statements are based upon estimates and assumptions
that, while considered reasonable by the Company and its
management, as the case may be, are inherently uncertain and
subject to material change. Factors that may cause actual results
to differ materially from current expectations include various
factors beyond management’s control, including, but not limited to,
general economic conditions and other risks, uncertainties and
factors set forth in the sections entitled “Risk Factors” and
“Cautionary Statement Regarding Forward-Looking Statements” in the
Company’s Annual Report on Form 20-F, and other filings it makes
with the Securities and Exchange Commission. Nothing in this
communication should be regarded as a representation by any person
that the forward-looking statements set forth herein will be
achieved or that any of the contemplated results of such
forward-looking statements will be achieved. You should not place
undue reliance on forward-looking statements in this communication,
which speak only as of the date they are made and are qualified in
their entirety by reference to the cautionary statements herein.
Except as required by law, the Company expressly disclaims any
obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company’s expectations with respect
thereto or any change in events, conditions or circumstances on
which any statement is based.
ABOUT TH INTERNATIONAL
LIMITED
TH International Limited (Nasdaq: THCH) (“Tims
China”) is the parent company of the exclusive master franchisees
of Tim Hortons coffee shops in mainland China, Hong Kong and Macau
and Popeyes restaurants in mainland China and Macau. Tims China was
founded by Cartesian Capital Group and Tim Hortons Restaurants
International, a subsidiary of Restaurant Brands International
(TSX: QSR) (NYSE: QSR).
The company’s philosophy is rooted in
world-class execution and data-driven decision making and centered
on true local relevance, continuous innovation, genuine community,
and absolute convenience. For more information, please visit
www.timhortons.com.cn.
INVESTOR AND MEDIA CONTACTS
Investor RelationsTims China
Investor Relations:IR@timschina.com
Public RelationsTims China
Public Relations:Patty.Yu@timschina.com
|
TH INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Amounts in thousands of RMB and US$, except for number of
shares) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31,2022 |
|
September
30, 2023(Unaudited) |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
239,077 |
|
|
461,755 |
|
|
63,289 |
|
Short term investment |
|
372,376 |
|
|
- |
|
|
- |
|
Accounts receivable, net |
|
5,617 |
|
|
33,871 |
|
|
4,642 |
|
Inventories |
|
71,468 |
|
|
74,285 |
|
|
10,182 |
|
Prepaid expenses and other current assets |
|
108,275 |
|
|
133,845 |
|
|
18,345 |
|
Total current assets |
|
796,813 |
|
|
703,756 |
|
|
96,458 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net |
|
720,036 |
|
|
771,253 |
|
|
105,709 |
|
Intangible assets, net |
|
96,018 |
|
|
136,817 |
|
|
18,752 |
|
Operating lease right-of-use assets |
|
946,873 |
|
|
913,952 |
|
|
125,267 |
|
Other non-current assets |
|
82,270 |
|
|
81,440 |
|
|
11,163 |
|
Total non-current assets |
|
1,845,197 |
|
|
1,903,462 |
|
|
260,891 |
|
Total assets |
|
2,642,010 |
|
|
2,607,218 |
|
|
357,349 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term bank borrowings |
|
407,807 |
|
|
658,956 |
|
|
90,317 |
|
Accounts payable |
|
105,673 |
|
|
207,117 |
|
|
28,388 |
|
Contract liabilities |
|
22,122 |
|
|
27,228 |
|
|
3,732 |
|
Amount due to related parties |
|
22,485 |
|
|
36,335 |
|
|
4,980 |
|
Derivative financial liabilities |
|
269,251 |
|
|
- |
|
|
- |
|
Lease liability-current |
|
180,468 |
|
|
202,129 |
|
|
27,704 |
|
Other current liabilities |
|
310,456 |
|
|
358,434 |
|
|
49,128 |
|
Total current liabilities |
|
1,318,262 |
|
|
1,490,199 |
|
|
204,249 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term bank borrowings |
|
8,800 |
|
|
6,048 |
|
|
829 |
|
Convertible notes, at fair value |
|
354,080 |
|
|
407,095 |
|
|
55,797 |
|
Contract liabilities - non-current |
|
3,311 |
|
|
4,709 |
|
|
645 |
|
Amount due to related parties |
|
- |
|
|
62,464 |
|
|
8,561 |
|
Derivative financial liabilities - non-current |
|
19,083 |
|
|
- |
|
|
- |
|
Lease liability-non-current |
|
820,249 |
|
|
769,818 |
|
|
105,512 |
|
Other non-current liabilities |
|
7,921 |
|
|
9,155 |
|
|
1,256 |
|
Total non-current liabilities |
|
1,213,444 |
|
|
1,259,289 |
|
|
172,600 |
|
Total liabilities |
|
2,531,706 |
|
|
2,749,488 |
|
|
376,849 |
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
Ordinary Shares (US$0.00000939586994067732 par value, 500,000,000
shares authorized, 166,067,882 and 149,181,538 shares issued as of
September 30, 2023 and December 31, 2022, respectively and
157,527,072 and 140,938,555 shares outstanding as of September 30,
2023 and December 31, 2022, respectively) |
|
9 |
|
|
10 |
|
|
1 |
|
Additional paid-in capital |
|
1,472,015 |
|
|
1,799,680 |
|
|
246,667 |
|
Accumulated losses |
|
(1,380,173 |
) |
|
(1,944,341 |
) |
|
(266,494 |
) |
Accumulated other comprehensive income |
|
16,999 |
|
|
(1,472 |
) |
|
(202 |
) |
Treasury shares (8,540,810 and 8,242,983 ordinary shares as of
September 30, 2023 and December 31, 2022, respectively) |
|
- |
|
|
- |
|
|
- |
|
Total equity attributable to shareholders of the Company |
|
108,850 |
|
|
(146,123 |
) |
|
(20,028 |
) |
Non-controlling interests |
|
1,454 |
|
|
3,853 |
|
|
528 |
|
Total shareholders’ equity |
|
110,304 |
|
|
(142,270 |
) |
|
(19,500 |
) |
|
|
|
|
|
|
|
Commitments and Contingencies |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
2,642,010 |
|
|
2,607,218 |
|
|
357,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TH INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME/(LOSS) |
(Amounts in thousands of RMB and US$, except for per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, |
|
For the nine months endedSeptember 30, |
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Company owned and operated stores |
|
290,009 |
|
|
390,798 |
|
|
53,563 |
|
|
665,588 |
|
|
1,063,876 |
|
|
145,816 |
|
Other revenues |
|
15,710 |
|
|
45,604 |
|
|
6,251 |
|
|
43,995 |
|
|
120,711 |
|
|
16,545 |
|
Total revenues |
|
305,719 |
|
|
436,402 |
|
|
59,814 |
|
|
709,583 |
|
|
1,184,587 |
|
|
162,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses, net: |
|
|
|
|
|
|
|
|
|
|
|
|
Company owned and operated stores |
|
|
|
|
|
|
|
|
|
|
|
|
Food and packaging (including cost of Company owned and operated
stores from transactions with a related party of RMB20,125,579 and
RMB15,993,428 for the three months ended September 30, 2023 and
2022, respectively, and RMB55,196,249 and RMB26,527,596 for the
nine months ended September 30, 2023 and 2022, respectively) |
|
96,605 |
|
|
137,545 |
|
|
18,852 |
|
|
225,071 |
|
|
372,265 |
|
|
51,023 |
|
Rental and property management fee |
|
45,174 |
|
|
77,388 |
|
|
10,607 |
|
|
160,899 |
|
|
224,106 |
|
|
30,716 |
|
Payroll and employee benefits |
|
65,992 |
|
|
79,262 |
|
|
10,864 |
|
|
202,158 |
|
|
231,593 |
|
|
31,742 |
|
Delivery costs |
|
23,590 |
|
|
34,161 |
|
|
4,682 |
|
|
51,699 |
|
|
86,159 |
|
|
11,810 |
|
Other operating expenses (including service fee from transactions
with a related party of RMB150,000 and RMB150,000 for the three
months ended September 30, 2023 and 2022, respectively, and
RMB450,000 and RMB 400,000 for the nine months ended September 30,
2023 and 2022, respectively) |
|
37,877 |
|
|
35,696 |
|
|
4,893 |
|
|
84,663 |
|
|
93,125 |
|
|
12,764 |
|
Store depreciation and amortization |
|
30,618 |
|
|
36,473 |
|
|
4,999 |
|
|
85,115 |
|
|
103,901 |
|
|
14,241 |
|
Company owned and operated store costs and
expenses |
|
299,856 |
|
|
400,525 |
|
|
54,897 |
|
|
809,605 |
|
|
1,111,149 |
|
|
152,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of other revenues |
|
9,451 |
|
|
42,112 |
|
|
5,772 |
|
|
26,445 |
|
|
98,806 |
|
|
13,542 |
|
Marketing expenses |
|
24,851 |
|
|
34,407 |
|
|
4,716 |
|
|
56,715 |
|
|
78,660 |
|
|
10,781 |
|
General and administrative expenses |
|
109,567 |
|
|
71,071 |
|
|
9,740 |
|
|
223,085 |
|
|
275,140 |
|
|
37,711 |
|
Franchise and royalty expenses ((including franchise and royalty
expenses from transactions with a related party of RMB14,195,990
and RMB10,156,888 for the three months ended September 30, 2023 and
2022, respectively, and RMB38,689,355 and RMB22,810,871 for the
nine months ended September 30, 2023 and 2022, respectively |
|
11,021 |
|
|
15,516 |
|
|
2,127 |
|
|
25,301 |
|
|
42,810 |
|
|
5,868 |
|
Other operating costs and expenses |
|
1,377 |
|
|
9,971 |
|
|
1,367 |
|
|
5,945 |
|
|
19,904 |
|
|
2,728 |
|
Loss on disposal of property and equipment |
|
1,475 |
|
|
11,923 |
|
|
1,634 |
|
|
8,835 |
|
|
13,780 |
|
|
1,889 |
|
Impairment losses of long-lived assets |
|
- |
|
|
13,014 |
|
|
1,784 |
|
|
5,473 |
|
|
21,792 |
|
|
2,987 |
|
Other income |
|
1,404 |
|
|
2,448 |
|
|
336 |
|
|
1,999 |
|
|
8,432 |
|
|
1,156 |
|
Total costs and expenses, net |
|
456,194 |
|
|
596,091 |
|
|
81,701 |
|
|
1,159,405 |
|
|
1,653,609 |
|
|
226,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(150,475 |
) |
|
(159,689 |
) |
|
(21,887 |
) |
|
(449,822 |
) |
|
(469,022 |
) |
|
(64,285 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
642 |
|
|
7,474 |
|
|
1,024 |
|
|
976 |
|
|
11,044 |
|
|
1,514 |
|
Interest expenses |
|
(4,262 |
) |
|
(4,574 |
) |
|
(627 |
) |
|
(10,280 |
) |
|
(13,763 |
) |
|
(1,886 |
) |
Foreign currency transaction (loss)/gain |
|
(367 |
) |
|
1,159 |
|
|
159 |
|
|
(1,135 |
) |
|
(614 |
) |
|
(86 |
) |
Changes in fair value of Deferred Contingent consideration |
|
- |
|
|
6,331 |
|
|
868 |
|
|
- |
|
|
6,331 |
|
|
868 |
|
Changes in fair value of convertible notes |
|
19,452 |
|
|
(10,046 |
) |
|
(1,377 |
) |
|
(1,627 |
) |
|
(31,372 |
) |
|
(4,300 |
) |
Changes in fair value of warrant liabilities |
|
9,950 |
|
|
- |
|
|
- |
|
|
9,950 |
|
|
(83,966 |
) |
|
(11,508 |
) |
Changes in fair value of ESA derivative liabilities |
|
(69,932 |
) |
|
(315 |
) |
|
(43 |
) |
|
(69,932 |
) |
|
19,594 |
|
|
2,686 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
Loss before income taxes |
|
(194,992 |
) |
|
(159,660 |
) |
|
(21,883 |
) |
|
(521,870 |
) |
|
(561,768 |
) |
|
(76,997 |
) |
Income tax expenses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Net loss |
|
(194,992 |
) |
|
(159,660 |
) |
|
(21,883 |
) |
|
(521,870 |
) |
|
(561,768 |
) |
|
(76,997 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net Loss attributable to non-controlling interests |
|
(611 |
) |
|
943 |
|
|
129 |
|
|
(3,092 |
) |
|
2,399 |
|
|
329 |
|
Net Loss attributable to shareholders of the Company |
|
(194,381 |
) |
|
(160,603 |
) |
|
(22,012 |
) |
|
(518,778 |
) |
|
(564,167 |
) |
|
(77,326 |
) |
Basic and diluted loss per Ordinary Share |
|
(1.56 |
) |
|
(1.01 |
) |
|
(0.14 |
) |
|
(4.17 |
) |
|
(3.75 |
) |
|
(0.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(194,992 |
) |
|
(159,660 |
) |
|
(21,883 |
) |
|
(521,870 |
) |
|
(561,768 |
) |
|
(76,997 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of short-term investment |
|
- |
|
|
(4,965 |
) |
|
(681 |
) |
|
- |
|
|
(2,134 |
) |
|
(292 |
) |
Fair value changes of convertible notes due to instrument-specific
credit risk, net of nil income taxes |
|
(3,262 |
) |
|
(2,182 |
) |
|
(299 |
) |
|
(2,026 |
) |
|
(9,848 |
) |
|
(1,350 |
) |
Foreign currency translation adjustment, net of nil income
taxes |
|
(14,088 |
) |
|
239 |
|
|
33 |
|
|
(24,628 |
) |
|
(6,490 |
) |
|
(889 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
|
(212,342 |
) |
|
(166,568 |
) |
|
(22,830 |
) |
|
(548,524 |
) |
|
(580,240 |
) |
|
(79,528 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive loss attributable to non- controlling
interests |
|
(611 |
) |
|
943 |
|
|
129 |
|
|
(3,092 |
) |
|
2,399 |
|
|
329 |
|
Comprehensive loss attributable to shareholders of the
Company |
|
(211,731 |
) |
|
(167,511 |
) |
|
(22,959 |
) |
|
(545,432 |
) |
|
(582,639 |
) |
|
(79,857 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TH INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Amounts in thousands of RMB and US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, |
|
For the nine months endedSeptember 30, |
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Net cash used in operating activities |
|
(35,884 |
) |
|
(30,446 |
) |
|
(4,173 |
) |
|
(190,826 |
) |
|
(115,565 |
) |
|
(15,840 |
) |
Net cash provided by/(used in) investing activities |
|
(431,081 |
) |
|
63,781 |
|
|
8,742 |
|
|
(611,435 |
) |
|
127,938 |
|
|
17,535 |
|
Net cash provided by financing activities |
|
563,473 |
|
|
171,822 |
|
|
23,550 |
|
|
790,079 |
|
|
200,435 |
|
|
27,472 |
|
Effect of foreign currency exchange rate changes on cash |
|
806 |
|
|
1,006 |
|
|
138 |
|
|
3,793 |
|
|
9,870 |
|
|
1,354 |
|
Net increase/(decrease) in cash |
|
97,314 |
|
|
206,163 |
|
|
28,257 |
|
|
(8,389 |
) |
|
222,678 |
|
|
30,521 |
|
Cash at beginning of the period |
|
285,134 |
|
|
255,592 |
|
|
35,032 |
|
|
390,837 |
|
|
239,077 |
|
|
32,768 |
|
Cash at end of the period |
|
382,448 |
|
|
461,755 |
|
|
63,289 |
|
|
382,448 |
|
|
461,755 |
|
|
63,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TH INTERNATIONAL LIMITED AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY
COMPARABLE GAAP MEASURES |
(Unaudited, amounts in thousands of RMB and US$, except for
number of shares and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. Adjusted store EBITDA and adjusted store EBITDA
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2023 |
|
For the nine months endedSeptember 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Revenues - company owned and operated stores |
|
388,321 |
|
|
2,477 |
|
|
390,798 |
|
|
53,563 |
|
|
1,061,399 |
|
|
2,477 |
|
|
1,063,876 |
|
|
145,816 |
|
Food and packaging costs - company owned and operated stores |
|
(136,299 |
) |
|
(1,246 |
) |
|
(137,545 |
) |
|
(18,852 |
) |
|
(371,019 |
) |
|
(1,246 |
) |
|
(372,265 |
) |
|
(51,023 |
) |
Rental expenses - company owned and operated stores |
|
(75,126 |
) |
|
(2,262 |
) |
|
(77,388 |
) |
|
(10,607 |
) |
|
(221,844 |
) |
|
(2,262 |
) |
|
(224,106 |
) |
|
(30,716 |
) |
Payroll and employee benefits - company owned and operated
stores |
|
(77,346 |
) |
|
(1,916 |
) |
|
(79,262 |
) |
|
(10,864 |
) |
|
(229,677 |
) |
|
(1,916 |
) |
|
(231,593 |
) |
|
(31,742 |
) |
Delivery costs - company owned and operated stores |
|
(34,161 |
) |
|
- |
|
|
(34,161 |
) |
|
(4,682 |
) |
|
(86,159 |
) |
|
- |
|
|
(86,159 |
) |
|
(11,810 |
) |
Other operating expenses - company owned and operated stores |
|
(34,805 |
) |
|
(891 |
) |
|
(35,696 |
) |
|
(4,893 |
) |
|
(92,234 |
) |
|
(891 |
) |
|
(93,125 |
) |
|
(12,764 |
) |
Store depreciation and amortization |
|
(36,354 |
) |
|
(119 |
) |
|
(36,473 |
) |
|
(4,999 |
) |
|
(103,782 |
) |
|
(119 |
) |
|
(103,901 |
) |
|
(14,241 |
) |
Franchise and royalty expenses - company owned and operated
stores |
|
(12,485 |
) |
|
(77 |
) |
|
(12,562 |
) |
|
(1,722 |
) |
|
(33,962 |
) |
|
(77 |
) |
|
(34,039 |
) |
|
(4,665 |
) |
Fully-burdened gross loss - company owned and operated
stores |
|
(18,255 |
) |
|
(4,034 |
) |
|
(22,289 |
) |
|
(3,056 |
) |
|
(77,278 |
) |
|
(4,034 |
) |
|
(81,312 |
) |
|
(11,145 |
) |
Store depreciation and amortization |
|
36,354 |
|
|
119 |
|
|
36,473 |
|
|
4,999 |
|
|
103,782 |
|
|
119 |
|
|
103,901 |
|
|
14,241 |
|
Store pre-opening expenses |
|
10,910 |
|
|
4,216 |
|
|
15,126 |
|
|
2,073 |
|
|
26,751 |
|
|
4,216 |
|
|
30,967 |
|
|
4,244 |
|
Adjusted Store EBITDA |
|
29,009 |
|
|
301 |
|
|
29,310 |
|
|
4,016 |
|
|
53,255 |
|
|
301 |
|
|
53,556 |
|
|
7,340 |
|
Adjusted Store EBITDA Margin |
|
7.5% |
|
|
12.2% |
|
|
7.5% |
|
|
7.5% |
|
|
5.0% |
|
|
12.2% |
|
|
5.0% |
|
|
5.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2022 |
|
For the nine months endedSeptember 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Revenues - company owned and operated stores |
|
290,009 |
|
|
- |
|
|
290,009 |
|
|
40,769 |
|
|
665,588 |
|
|
- |
|
|
665,588 |
|
|
93,567 |
|
Food and packaging costs - company owned and operated stores |
|
(96,605 |
) |
|
- |
|
|
(96,605 |
) |
|
(13,581 |
) |
|
(225,071 |
) |
|
- |
|
|
(225,071 |
) |
|
(31,640 |
) |
Rental expenses - company owned and operated stores |
|
(45,174 |
) |
|
- |
|
|
(45,174 |
) |
|
(6,350 |
) |
|
(160,899 |
) |
|
- |
|
|
(160,899 |
) |
|
(22,619 |
) |
Payroll and employee benefits - company owned and operated
stores |
|
(65,992 |
) |
|
- |
|
|
(65,992 |
) |
|
(9,277 |
) |
|
(202,158 |
) |
|
- |
|
|
(202,158 |
) |
|
(28,419 |
) |
Delivery costs - company owned and operated stores |
|
(23,590 |
) |
|
- |
|
|
(23,590 |
) |
|
(3,316 |
) |
|
(51,699 |
) |
|
- |
|
|
(51,699 |
) |
|
(7,268 |
) |
Other operating expenses - company owned and operated stores |
|
(37,877 |
) |
|
- |
|
|
(37,877 |
) |
|
(5,325 |
) |
|
(84,663 |
) |
|
- |
|
|
(84,663 |
) |
|
(11,902 |
) |
Store depreciation and amortization |
|
(30,618 |
) |
|
- |
|
|
(30,618 |
) |
|
(4,304 |
) |
|
(85,115 |
) |
|
- |
|
|
(85,115 |
) |
|
(11,965 |
) |
Franchise and royalty expenses - company owned and operated
stores |
|
(9,722 |
) |
|
- |
|
|
(9,722 |
) |
|
(1,367 |
) |
|
(21,230 |
) |
|
- |
|
|
(21,230 |
) |
|
(2,984 |
) |
Fully-burdened gross loss - company owned and operated
stores |
|
(19,569 |
) |
|
- |
|
|
(19,569 |
) |
|
(2,751 |
) |
|
(165,247 |
) |
|
- |
|
|
(165,247 |
) |
|
(23,230 |
) |
Store depreciation and amortization |
|
30,618 |
|
|
- |
|
|
30,618 |
|
|
4,304 |
|
|
85,115 |
|
|
- |
|
|
85,115 |
|
|
11,965 |
|
Store pre-opening expenses |
|
4,277 |
|
|
- |
|
|
4,277 |
|
|
601 |
|
|
26,660 |
|
|
- |
|
|
26,660 |
|
|
3,748 |
|
Adjusted Store EBITDA |
|
15,326 |
|
|
- |
|
|
15,326 |
|
|
2,154 |
|
|
(53,472 |
) |
|
- |
|
|
(53,472 |
) |
|
(7,517 |
) |
Adjusted Store EBITDA Margin |
|
5.3% |
|
|
|
|
5.3% |
|
|
5.3% |
|
|
-8.0% |
|
|
|
|
-8.0% |
|
|
-8.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. Adjusted general and administrative
expenses |
|
|
|
For the three months endedSeptember 30, 2023 |
|
For the nine months endedSeptember 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
General and administrative expenses |
|
(65,829 |
) |
|
(5,242 |
) |
|
(71,071 |
) |
|
(9,740 |
) |
|
(263,597 |
) |
|
(11,543 |
) |
|
(275,140 |
) |
|
(37,711 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses |
|
3,009 |
|
|
- |
|
|
3,009 |
|
|
412 |
|
|
61,727 |
|
|
- |
|
|
61,727 |
|
|
8,460 |
|
Professional fees related to warrant exchange and other financing
programs |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
633 |
|
|
27,841 |
|
|
- |
|
|
27,841 |
|
|
3,816 |
|
Adjusted General and administrative expenses |
|
(58,198 |
) |
|
(5,242 |
) |
|
(63,440 |
) |
|
(8,695 |
) |
|
(174,029 |
) |
|
(11,543 |
) |
|
(185,572 |
) |
|
(25,435 |
) |
Adjusted General and administrative expenses as a % of
total revenue |
|
13.4% |
|
|
211.4% |
|
|
14.5% |
|
|
14.5% |
|
|
14.7% |
|
|
465.4% |
|
|
15.7% |
|
|
15.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2022 |
|
For the nine months endedSeptember 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
General and administrative expenses |
|
(109,567 |
) |
|
- |
|
|
(109,567 |
) |
|
(15,403 |
) |
|
(223,085 |
) |
|
- |
|
|
(223,085 |
) |
|
(31,361 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expenses |
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
Commission fee for Cantor shares |
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
Option granted by controlling shareholder to CB holder |
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
Offering costs for ESA transactions |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
Adjusted General and administrative expenses |
|
(48,370 |
) |
|
- |
|
|
(48,370 |
) |
|
(6,800 |
) |
|
(161,888 |
) |
|
- |
|
|
(161,888 |
) |
|
(22,758 |
) |
Adjusted General and administrative expenses as a % of
total revenue |
|
15.8% |
|
|
|
|
15.8% |
|
|
15.8% |
|
|
22.8% |
|
|
|
|
22.8% |
|
|
22.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C. Adjusted corporate EBITDA and adjusted corporate EBITDA
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2023 |
|
For the nine months endedSeptember 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Operating loss |
|
(147,708 |
) |
|
(11,981 |
) |
|
(159,689 |
) |
|
(21,887 |
) |
|
(449,583 |
) |
|
(19,439 |
) |
|
(469,022 |
) |
|
(64,285 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store pre-opening expenses |
|
10,910 |
|
|
4,216 |
|
|
15,126 |
|
|
2,073 |
|
|
26,751 |
|
|
4,216 |
|
|
30,967 |
|
|
4,244 |
|
Depreciation and amortization |
|
41,162 |
|
|
631 |
|
|
41,793 |
|
|
5,728 |
|
|
77,403 |
|
|
1,096 |
|
|
78,499 |
|
|
10,759 |
|
Share-based compensation expenses |
|
3,009 |
|
|
- |
|
|
3,009 |
|
|
412 |
|
|
61,727 |
|
|
- |
|
|
61,727 |
|
|
8,460 |
|
Professional fees related to warrant exchange and other financing
programs |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
633 |
|
|
27,841 |
|
|
- |
|
|
27,841 |
|
|
3,816 |
|
Impairment losses of long-lived assets |
|
13,014 |
|
|
- |
|
|
13,014 |
|
|
1,784 |
|
|
21,792 |
|
|
- |
|
|
21,792 |
|
|
2,987 |
|
Loss on disposal of property and equipment |
|
11,923 |
|
|
- |
|
|
11,923 |
|
|
1,634 |
|
|
13,780 |
|
|
- |
|
|
13,780 |
|
|
1,889 |
|
Adjusted Corporate EBITDA |
|
(63,068 |
) |
|
(7,134 |
) |
|
(70,202 |
) |
|
(9,623 |
) |
|
(220,289 |
) |
|
(14,127 |
) |
|
(234,416 |
) |
|
(32,130 |
) |
Adjusted Corporate EBITDA Margin |
|
-14.5% |
|
|
-287.7% |
|
|
-16.1% |
|
|
-16.1% |
|
|
-18.6% |
|
|
569.6% |
|
|
-19.8% |
|
|
-19.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2022 |
|
For the nine months endedSeptember 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Operating loss |
|
(150,475 |
) |
|
- |
|
|
(150,475 |
) |
|
(21,153 |
) |
|
(449,822 |
) |
|
- |
|
|
(449,822 |
) |
|
(63,235 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store pre-opening expenses |
|
4,277 |
|
|
- |
|
|
4,277 |
|
|
601 |
|
|
26,660 |
|
|
- |
|
|
26,660 |
|
|
3,748 |
|
Depreciation and amortization |
|
35,943 |
|
|
- |
|
|
35,943 |
|
|
5,053 |
|
|
95,233 |
|
|
- |
|
|
95,233 |
|
|
13,388 |
|
Share-based compensation expenses |
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
Commission fee for Cantor shares |
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
Option granted by controlling shareholder to CB holder |
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
Offering costs for ESA transactions |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
Impairment losses of long-lived assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,473 |
|
|
- |
|
|
5,473 |
|
|
769 |
|
Loss on disposal of property and equipment |
|
1,475 |
|
|
- |
|
|
1,475 |
|
|
207 |
|
|
8,835 |
|
|
- |
|
|
8,835 |
|
|
1,242 |
|
Adjusted Corporate EBITDA |
|
(47,583 |
) |
|
- |
|
|
(47,583 |
) |
|
(6,689 |
) |
|
(252,424 |
) |
|
- |
|
|
(252,424 |
) |
|
(35,485 |
) |
Adjusted Corporate EBITDA Margin |
|
-15.6% |
|
|
|
|
-15.6% |
|
|
-15.6% |
|
|
-35.6% |
|
|
|
|
-35.6% |
|
|
-35.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D. Adjusted net loss and adjusted net loss
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2023 |
|
For the nine months endedSeptember 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net loss |
|
(147,619 |
) |
|
(12,041 |
) |
|
(159,660 |
) |
|
(21,883 |
) |
|
(542,329 |
) |
|
(19,439 |
) |
|
(561,768 |
) |
|
(76,997 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store pre-opening expenses |
|
10,910 |
|
|
4,216 |
|
|
15,126 |
|
|
2,073 |
|
|
26,751 |
|
|
4,216 |
|
|
30,967 |
|
|
4,244 |
|
Share-based compensation expenses |
|
3,009 |
|
|
- |
|
|
3,009 |
|
|
412 |
|
|
61,727 |
|
|
- |
|
|
61,727 |
|
|
8,460 |
|
Professional fees related to warrant exchange and other financing
programs |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
633 |
|
|
27,841 |
|
|
- |
|
|
27,841 |
|
|
3,816 |
|
Impairment losses of long-lived assets |
|
13,014 |
|
|
- |
|
|
13,014 |
|
|
1,784 |
|
|
21,792 |
|
|
- |
|
|
21,792 |
|
|
2,987 |
|
Loss on disposal of property and equipment |
|
11,923 |
|
|
- |
|
|
11,923 |
|
|
1,634 |
|
|
13,780 |
|
|
- |
|
|
13,780 |
|
|
1,889 |
|
Changes in fair value of Deferred Contingent consideration |
|
(6,331 |
) |
|
- |
|
|
(6,331 |
) |
|
(868 |
) |
|
(6,331 |
) |
|
- |
|
|
(6,331 |
) |
|
(868 |
) |
Changes in fair value of convertible notes |
|
10,046 |
|
|
- |
|
|
10,046 |
|
|
1,377 |
|
|
31,372 |
|
|
- |
|
|
31,372 |
|
|
4,300 |
|
Changes in fair value of warrant liabilities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
83,966 |
|
|
- |
|
|
83,966 |
|
|
11,508 |
|
Changes in fair value of ESA derivative liabilities |
|
315 |
|
|
- |
|
|
315 |
|
|
43 |
|
|
(19,594 |
) |
|
- |
|
|
(19,594 |
) |
|
(2,686 |
) |
Adjusted Net loss |
|
(100,111 |
) |
|
(7,825 |
) |
|
(107,936 |
) |
|
(14,795 |
) |
|
(301,025 |
) |
|
(15,223 |
) |
|
(316,248 |
) |
|
(43,347 |
) |
Adjusted Net loss Margin |
|
-23.1% |
|
|
-315.5% |
|
|
-24.7% |
|
|
-24.7% |
|
|
-25.4% |
|
|
-613.8% |
|
|
-26.7% |
|
|
-26.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2022 |
|
For the nine months endedSeptember 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net loss |
|
(194,992 |
) |
|
- |
|
|
(194,992 |
) |
|
(27,412 |
) |
|
(521,870 |
) |
|
- |
|
|
(521,870 |
) |
|
(73,363 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store pre-opening expenses |
|
4,277 |
|
|
- |
|
|
4,277 |
|
|
601 |
|
|
26,660 |
|
|
- |
|
|
26,660 |
|
|
3,748 |
|
Share-based compensation expenses |
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
Commission fee for Cantor shares |
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
Option granted by controlling shareholder to CB holder |
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
Offering costs for ESA transactions |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
Impairment losses of long-lived assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,473 |
|
|
- |
|
|
5,473 |
|
|
769 |
|
Loss on disposal of property and equipment |
|
1,475 |
|
|
- |
|
|
1,475 |
|
|
207 |
|
|
8,835 |
|
|
- |
|
|
8,835 |
|
|
1,242 |
|
Changes in fair value of convertible notes |
|
(19,452 |
) |
|
- |
|
|
(19,452 |
) |
|
(2,735 |
) |
|
1,627 |
|
|
- |
|
|
1,627 |
|
|
229 |
|
Changes in fair value of warrant liabilities |
|
(9,950 |
) |
|
- |
|
|
(9,950 |
) |
|
(1,399 |
) |
|
(9,950 |
) |
|
- |
|
|
(9,950 |
) |
|
(1,399 |
) |
Changes in fair value of ESA derivative liabilities |
|
69,932 |
|
|
- |
|
|
69,932 |
|
|
9,831 |
|
|
69,932 |
|
|
- |
|
|
69,932 |
|
|
9,831 |
|
Adjusted Net loss |
|
(87,513 |
) |
|
- |
|
|
(87,513 |
) |
|
(12,304 |
) |
|
(358,096 |
) |
|
- |
|
|
(358,096 |
) |
|
(50,340 |
) |
Adjusted Net loss Margin |
|
-28.6% |
|
|
|
|
-28.6% |
|
|
-28.6% |
|
|
-50.5% |
|
|
|
|
-50.5% |
|
|
-50.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E. Adjusted basic and diluted net loss per Ordinary
Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2023 |
|
For the nine months endedSeptember 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net Loss attributable to shareholders of the Company |
|
(148,562 |
) |
|
(12,041 |
) |
|
(160,603 |
) |
|
(22,012 |
) |
|
(544,728 |
) |
|
(19,439 |
) |
|
(564,167 |
) |
|
(77,326 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store pre-opening expenses |
|
10,910 |
|
|
4,216 |
|
|
15,126 |
|
|
2,073 |
|
|
26,751 |
|
|
4,216 |
|
|
30,967 |
|
|
4,244 |
|
Share-based compensation expenses |
|
3,009 |
|
|
- |
|
|
3,009 |
|
|
412 |
|
|
61,727 |
|
|
- |
|
|
61,727 |
|
|
8,460 |
|
Professional fees related to warrant exchange and other financing
programs |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
633 |
|
|
27,841 |
|
|
- |
|
|
27,841 |
|
|
3,816 |
|
Impairment losses of long-lived assets |
|
13,014 |
|
|
- |
|
|
13,014 |
|
|
1,784 |
|
|
21,792 |
|
|
- |
|
|
21,792 |
|
|
2,987 |
|
Loss on disposal of property and equipment |
|
11,923 |
|
|
- |
|
|
11,923 |
|
|
1,634 |
|
|
13,780 |
|
|
- |
|
|
13,780 |
|
|
1,889 |
|
Changes in fair value of Deferred Contingent consideration |
|
(6,331 |
) |
|
- |
|
|
(6,331 |
) |
|
(868 |
) |
|
(6,331 |
) |
|
- |
|
|
(6,331 |
) |
|
(868 |
) |
Changes in fair value of convertible notes |
|
10,046 |
|
|
- |
|
|
10,046 |
|
|
1,377 |
|
|
31,372 |
|
|
- |
|
|
31,372 |
|
|
4,300 |
|
Changes in fair value of warrant liabilities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
83,966 |
|
|
- |
|
|
83,966 |
|
|
11,508 |
|
Changes in fair value of ESA derivative liabilities |
|
315 |
|
|
- |
|
|
315 |
|
|
43 |
|
|
(19,594 |
) |
|
- |
|
|
(19,594 |
) |
|
(2,686 |
) |
Adjusted Net loss attributable to shareholders of the
Company |
|
(101,054 |
) |
|
(7,825 |
) |
|
(108,879 |
) |
|
(14,924 |
) |
|
(303,424 |
) |
|
(15,223 |
) |
|
(318,647 |
) |
|
(43,676 |
) |
Weighted average shares outstanding used in calculating basic and
diluted loss per share |
|
158,746,919 |
|
|
158,746,919 |
|
|
158,746,919 |
|
|
158,746,919 |
|
|
150,283,284 |
|
|
150,283,284 |
|
|
150,283,284 |
|
|
150,283,284 |
|
Adjusted basic and diluted net loss per Ordinary
Share |
|
(0.64 |
) |
|
(0.05 |
) |
|
(0.69 |
) |
|
(0.09 |
) |
|
(2.02 |
) |
|
(0.10 |
) |
|
(2.12 |
) |
|
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months endedSeptember 30, 2022 |
|
For the nine months endedSeptember 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net Loss attributable to shareholders of the Company |
|
(194,381 |
) |
|
- |
|
|
(194,381 |
) |
|
(27,326 |
) |
|
(518,778 |
) |
|
- |
|
|
(518,778 |
) |
|
(72,929 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store pre-opening expenses |
|
4,277 |
|
|
- |
|
|
4,277 |
|
|
601 |
|
|
26,660 |
|
|
- |
|
|
26,660 |
|
|
3,748 |
|
Share-based compensation expenses |
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
|
33,276 |
|
|
- |
|
|
33,276 |
|
|
4,678 |
|
Commission fee for Cantor shares |
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
|
21,521 |
|
|
- |
|
|
21,521 |
|
|
3,025 |
|
Option granted by controlling shareholder to CB holder |
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
|
1,778 |
|
|
- |
|
|
1,778 |
|
|
250 |
|
Offering costs for ESA transactions |
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
|
4,622 |
|
|
- |
|
|
4,622 |
|
|
650 |
|
Impairment losses of long-lived assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,473 |
|
|
- |
|
|
5,473 |
|
|
769 |
|
Loss on disposal of property and equipment |
|
1,475 |
|
|
- |
|
|
1,475 |
|
|
207 |
|
|
8,835 |
|
|
- |
|
|
8,835 |
|
|
1,242 |
|
Changes in fair value of convertible notes |
|
(19,452 |
) |
|
- |
|
|
(19,452 |
) |
|
(2,735 |
) |
|
1,627 |
|
|
- |
|
|
1,627 |
|
|
229 |
|
Changes in fair value of warrant liabilities |
|
(9,950 |
) |
|
- |
|
|
(9,950 |
) |
|
(1,399 |
) |
|
(9,950 |
) |
|
- |
|
|
(9,950 |
) |
|
(1,399 |
) |
Changes in fair value of ESA derivative liabilities |
|
69,932 |
|
|
- |
|
|
69,932 |
|
|
9,831 |
|
|
69,932 |
|
|
- |
|
|
69,932 |
|
|
9,831 |
|
Adjusted Net loss attributable to shareholders of the
Company |
|
(86,902 |
) |
|
- |
|
|
(86,902 |
) |
|
(12,218 |
) |
|
(355,004 |
) |
|
- |
|
|
(355,004 |
) |
|
(49,906 |
) |
Weighted average shares outstanding used in calculating basic and
diluted loss per share |
|
124,680,291 |
|
|
124,680,291 |
|
|
124,680,291 |
|
|
124,680,291 |
|
|
124,361,667 |
|
|
124,361,667 |
|
|
124,361,667 |
|
|
124,361,667 |
|
Adjusted basic and diluted net loss per Ordinary
Share |
|
(0.70 |
) |
|
- |
|
|
(0.70 |
) |
|
(0.10 |
) |
|
(2.85 |
) |
|
- |
|
|
(2.85 |
) |
|
(0.40 |
) |
TH (NASDAQ:THCH)
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From Jun 2024 to Jul 2024
TH (NASDAQ:THCH)
Historical Stock Chart
From Jul 2023 to Jul 2024