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 first quarter 2023.
FIRST QUARTER
2023 HIGHLIGHTS
- Total
revenues were RMB336.5 million (USD49.0 million),
representing a 49.8% increase from the same quarter of 2022.
- Net new
store openings totaled 31 (4
company owned and operated stores and 27 franchised stores).
- Adjusted store
EBITDA1 was RMB6.0 million (USD0.9
million), compared to a loss of RMB25.0 million in the same quarter
in 2022.
- Adjusted store EBITDA
margin2 was 1.9%, representing an
increase of 13.8 percentage points 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 RMB35.9 million (USD5.2 million) for the
three months ended March 31, 2023, compared to a loss of RMB65.5
million in the same quarter of 2022.
COMPANY MANAGEMENT
STATEMENT
Mr. Yongchen Lu, CEO & Director of Tims
China, commented, “We are pleased to have set a new record for
quarterly revenues while achieving positive adjusted store EBITDA
in the first quarter of 2023. Despite the difficult circumstances
brought by the high number of COVID-19 infection cases across the
country in January, our team’s diligence, continuous innovation and
creative marketing contributed to our strong recovery with customer
demand returning after the Chinese New Year, as evidenced by 17.1%
and 19.4% same-store sales growth for company owned and operated
stores in February and March, respectively.”
Mr. Lu continued, “We have also accelerated the
development of our franchised stores, especially with our partner
Sinopec Easy Joy, the largest convenience store network in China
with over 27,800 locations, through the rapid expansion of Tims
Express, our most compact store format, and are on track to surpass
1,000 system-wide stores by year-end. We would like to sincerely
thank our loyalty club members, numbered at 12.4 million as of
March 31, 2023 and ever-growing. Their unwavering support has been
a constant source of inspiration, encouraging us to strengthen the
reputation of our brand and to deliver high-quality products and
services through offering true local relevance, continuous
innovation, genuine community, and absolute convenience.”
Mr. Lu added, “During the first quarter of 2023,
we continued to execute our differentiated ‘Coffee Plus’ growth
strategy by offering creative and customized beverage and food
combos and add-ons at compelling values throughout the day. This
initiative has been highly successful and has enabled us to further
improve our labor efficiency and capital expenditure utilization;
the percentage of orders with food increased from 41.0% in the
first quarter of 2022 to 44.2% in the first quarter of 2023. On new
product launches, ‘Avocado Fresh Coconut Cold Brew Coffee’, ‘Almond
Caffè Latte’, ‘Double-Double Latte’, ‘Pork Floss Mochi Croissant’,
and “Everything Waffle” were among our top-selling products during
the quarter.”
Mr. Dong (Albert) Li, CFO of Tims China,
commented, “Our top-line revenues for the first quarter of 2023
increased by 49.8% and our adjusted store EBITDA margin improved by
13.8 percentage points year-over-year. We continue strengthening
our digital capabilities in order to capture the growing demand
from our delivery and takeaway services. As a result, the number of
delivery and takeaway orders in the first quarter of 2023 increased
by 74.2% from the same quarter in 2022. Concurrently, with the end
of ‘zero-COVID control measures’ by the PRC government authorities
in December 2022, we attracted more dine-in customers who enjoyed
our welcoming environment. As a result, the number of dine-in
customers increased by 125.8% from March 2022 to March 2023.”
Mr. Li continued, “Looking forward, our top
near-term financial priorities are to continue to deliver robust
revenue growth, to improve profitability at both the store- and
corporate-level, and to achieve operating cash flow breakeven. By
leveraging Tims China’s brand influence and positive consumer
perception with growing customer recognition and loyalty,
continuous innovation, ever-expanding store network, and
disciplined execution, we expect to further optimize our cost
structure, improve operational efficiency, and achieve greater
economies of scale.”
FIRST QUARTER
2023 FINANCIAL
RESULTS
Total
revenues reached RMB336.5 million
(USD49.0 million) for the three months ended March 31, 2023,
representing an increase of 49.8% from RMB224.7 million in the same
quarter of 2022. Total revenues comprise:
- Revenues from company owned
and operated stores were RMB310.5 million (USD45.2
million) for the three months ended March 31,
2023, representing an increase of 47.1% from
RMB211.0 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 403 as of March 31, 2022 to 551 as of March
31, 2023 and an 8.0% same-store sales growth for company owned and
operated stores in the first quarter of 2023.
- Other revenues
were RMB26.0 million (USD3.8 million) for the three months ended
March 31, 2023, representing an increase of 91.2% from RMB13.6
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 21 as of March 31, 2022 to 97 as
of March 31, 2023.
Company operated store costs and
expenses were RMB336.5 million (USD49.0 million) for the
three months ended March 31, 2023, representing an increase of
24.6% from RMB270.2 million in the same quarter of 2022. Company
operated store costs and expenses comprise:
- Food and packaging
expenses were RMB111.3 million (USD16.2 million),
representing an increase of 60.0% from RMB69.6 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 2.9 percentage points from 33.0% in
the first quarter of 2022 to 35.9% in the first quarter of 2023 as
we offered higher sales discount and promotional activities to our
customers.
- Rental and property
management fee were RMB71.4 million (USD10.4 million),
representing an increase of 22.3% from RMB58.4 million, mainly due
to the increase in the number of company owned and operated stores
from 403 as of March 31, 2022 to 551 as of March 31, 2023. Rental
and property management fee as a percentage of revenues from
company owned and operated stores decreased by 4.7 percentage
points from 27.7% in the first quarter of 2022 to 23.0% in the
first quarter of 2023.
- Payroll and employee
benefits expenses were RMB73.0 million
(USD10.6 million), representing an increase of 1.6% from RMB71.8
million, in line with our revenue growth and store network
expansion. Payroll and employee benefits as a percentage of
revenues from company owned and operated stores decreased by 10.5
percentage points from 34.0% in the first quarter of 2022 to 23.5%
in the first quarter of 2023, primarily due to the refined staffing
arrangement of our store operation personnel and optimization of
our labor structure, including hiring more part-time
employees.
- Delivery costs
were RMB22.8 million (USD3.3 million), representing an increase of
53.6% from RMB14.8 million, due to increased home-delivery orders.
Delivery costs as a percentage of revenues from company owned and
operated stores increased by 0.3 percentage points from 7.0% in the
first quarter of 2022 to 7.3% in the first quarter of 2023.
- Other operating
expenses were RMB25.1 million (USD3.7 million),
representing a decrease of 15.5% from RMB29.7 million, due to our
continuous efforts to optimize our cost structure and drive
operating leverage through revenue growth and store network
expansion. Other operating expenses as a percentage of revenues
from company owned and operated stores decreased by 6.0 percentage
points from 14.1% in the first quarter of 2022 to 8.1% in the first
quarter of 2023.
- Store depreciation and
amortization were RMB33.0 million (USD4.8 million),
representing an increase of 27.4% from RMB25.9 million, driven by
an increase in the number of company owned and operated stores from
403 as of March 31, 2022 to 551 as of March 31, 2023. Store
depreciation and amortization as a percentage of revenues from
company owned and operated stores decreased by 1.6 percentage
points from 12.2% in the first quarter of 2022 to 10.6% in the
first quarter of 2023.
Cost of other revenues was
RMB18.9 million (USD2.7 million) for the three months ended March
31, 2023, representing an increase of 114.9% from RMB8.8 million in
the same quarter of 2022, which was primarily driven by an increase
in the number of franchised stores from 21 as of March 31, 2022 to
97 as of March 31, 2023, and the incurrence of cost of product
sales related to our e-commerce business during the first quarter
of 2023. Cost of other revenues as a percentage of other revenues
increased by 8.0 percentage points from 64.5% in the first quarter
of 2022 to 72.5% in the first quarter of 2023.
Marketing expenses were RMB18.3
million (USD2.7 million) for the three months ended March 31, 2023,
representing an increase of 44.1% from RMB12.7 million in the same
quarter of 2022, which was primarily attributable to the increase
in the number of our system-wide stores from 424 as of March 31,
2022 to 648 as of March 31, 2023. Marketing expenses as a
percentage of total revenues decreased by 0.3 percentage points
from 5.7% in the first quarter of 2022 to 5.4% in the first quarter
of 2023.
General and administrative
expenses were RMB70.6 million (USD10.3 million) for the
three months ended March 31, 2023, representing an increase of
39.8% from RMB50.5 million in the same quarter of 2022, which was
primarily due to: (i) increased payroll and employee benefits as a
result of growing headcount; and (ii) increased share-based
compensation expenses recognized. Adjusted general and
administrative expenses, which excludes share-based
compensation expenses of RMB3.2 million (USD0.5 million), were
RMB67.5 million (USD9.8 million). Adjusted general and
administrative expenses as a percentage of total revenues decreased
by 2.5 percentage points from 22.5% in the first quarter of 2022 to
20.0% in the first 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 RMB11.9 million (USD1.7 million) for the three months ended
March 31, 2023, representing an increase of 52.0% from RMB7.8
million in the same quarter of 2022, which was primarily driven by
the increase in the number of our system-wide stores from 424 as of
March 31, 2022 to 648 as of March 31, 2023. Franchise and royalty
expenses as a percentage of total revenues remained flat at 3.5% in
the first quarters of 2022 and 2023.
As a result of the foregoing, operating
loss was RMB130.4 million (USD19.0 million) for the three
months ended March 31, 2023, compared to RMB134.9 million in the
same quarter of 2022.
Adjusted Corporate EBITDA was a
loss of RMB74.6 million (USD10.9 million) for the three months
ended March 31, 2023, compared to a loss of RMB83.5 million in the
same quarter of 2022. Adjusted Corporate EBITDA
margin was negative 22.2% in the first quarter of 2023,
representing an improvement of 15.0 percentage points from negative
37.2% in the first quarter of 2022.
Net loss was RMB174.5 million
(USD25.4 million) for the three months ended March 31, 2023,
compared to RMB151.3 million for the same quarter of 2022.
Adjusted net loss was RMB117.1 million (USD17.1
million) for the three months ended March 31, 2023, compared to
RMB116.7 million for the same quarter of 2022. Adjusted net loss
margin was negative 34.8% in the first quarter of 2023,
representing an improvement of 17.2 percentage points from negative
52.0% in the first quarter of 2022.
Basic and diluted net loss per ordinary
share was RMB1.25 (USD0.18) in the first quarter of 2023,
compared to RMB1.21 in the first quarter of 2022. Adjusted
basic and diluted net loss per ordinary share was RMB0.84
(USD0.12) in the first quarter of 2023, compared to RMB0.93 in the
first quarter of 2022.
Liquidity
As of March 31, 2023, the Company’s total cash
and cash equivalents and short-term investments were RMB613.6
million (USD89.3 million), compared to RMB611.5 million as of
December 31, 2022. The change was primarily attributable to
proceeds from bank borrowings, offset by the cash disbursements as
a result of the rapid expansion of our business and store network
nationwide.
KEY OPERATING DATA
|
For the three months
ended or as of |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
|
Dec 31, |
|
Mar 31, |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stores |
159 |
|
|
217 |
|
|
280 |
|
|
390 |
|
|
424 |
|
|
440 |
|
|
486 |
|
|
617 |
|
|
648 |
|
Company
owned and operated stores |
150 |
|
|
206 |
|
|
268 |
|
|
373 |
|
|
403 |
|
|
419 |
|
|
454 |
|
|
547 |
|
|
551 |
|
Franchised
stores |
9 |
|
|
11 |
|
|
12 |
|
|
17 |
|
|
21 |
|
|
21 |
|
|
32 |
|
|
70 |
|
|
97 |
|
Same-store
sales growth for system-wide stores |
41.6% |
|
|
26.5% |
|
|
6.5% |
|
|
8.2% |
|
|
4.4% |
|
|
-6.1% |
|
|
8.1% |
|
|
-8.0% |
|
|
7.5% |
|
Same-store
sales growth for company owned and operated stores |
40.3% |
|
|
25.5% |
|
|
6.6% |
|
|
8.8% |
|
|
5.5% |
|
|
-5.3% |
|
|
7.5% |
|
|
-7.1% |
|
|
8.0% |
|
Registered
loyalty club members (in thousands) |
2,947 |
|
|
3,865 |
|
|
4,770 |
|
|
5,969 |
|
|
6,907 |
|
|
7,532 |
|
|
8,862 |
|
|
11,250 |
|
|
12,386 |
|
Adjusted
store EBITDA (Renminbi in thousands) |
(1,834 |
) |
|
7,545 |
|
|
5,285 |
|
|
8,780 |
|
|
(25,011 |
) |
|
(43,787 |
) |
|
15,325 |
|
|
12,796 |
|
|
6,002 |
|
Adjusted
store EBITDA margin |
-1.8% |
|
|
5.8% |
|
|
3.0% |
|
|
4.1% |
|
|
-11.9% |
|
|
-26.6% |
|
|
5.3% |
|
|
4.7% |
|
|
1.9% |
|
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 an Equity Support Agreement (“ESA”) dated March 8, 2022,
as amended with us (the “ESA Offering Costs”), and 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”).
- 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, 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,
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.
RECENT BUSINESS
DEVELOPMENTS
On May 12, 2023, Tims China announced that it
had commenced an exchange offer and consent solicitation relating
to its outstanding public warrants and private placement warrants.
The purpose of the warrant exchange offer and consent solicitation
is to simplify the Company’s capital structure and reduce the
potential dilutive impact of the warrants, thereby providing the
Company with more flexibility for financing its operations in the
future.
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 RMB6.8676
to USD1.00, the exchange rate in effect on March 31, 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 Tuesday, May 30,
2023, at 8:00 pm Eastern Time (or Wednesday, May 31, 2023, at 8:00
am 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. 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 franchisee 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
ir.timschina.com.
INVESTOR AND MEDIA CONTACTS
Investor RelationsTims China
Investor Relations:IR@timschina.com
ICR, LLCTimsChinaIR@icrinc.com
Public RelationsICR,
LLCTimsChinaPR@icrinc.com
TH
INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Amounts in
thousands of RMB and US$, except for number of
shares) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31, 2022 |
|
March 31, 2023
(Unaudited) |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
239,077 |
|
|
364,570 |
|
|
53,086 |
|
Short term investment |
|
372,376 |
|
|
249,000 |
|
|
36,257 |
|
Accounts receivable, net |
|
5,617 |
|
|
11,263 |
|
|
1,640 |
|
Inventories |
|
71,468 |
|
|
71,271 |
|
|
10,378 |
|
Prepaid expenses and other current assets |
|
108,275 |
|
|
115,520 |
|
|
16,821 |
|
Total current assets |
|
796,813 |
|
|
811,624 |
|
|
118,182 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net |
|
720,036 |
|
|
742,644 |
|
|
108,137 |
|
Intangible assets, net |
|
96,018 |
|
|
130,874 |
|
|
19,057 |
|
Operating lease right-of-use assets |
|
946,873 |
|
|
913,909 |
|
|
133,075 |
|
Other non-current assets |
|
82,270 |
|
|
80,363 |
|
|
11,702 |
|
Total non-current assets |
|
1,845,197 |
|
|
1,867,790 |
|
|
271,971 |
|
Total assets |
|
2,642,010 |
|
|
2,679,414 |
|
|
390,153 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term bank borrowings |
|
407,807 |
|
|
451,907 |
|
|
65,803 |
|
Accounts payable |
|
105,673 |
|
|
108,503 |
|
|
15,799 |
|
Contract liabilities |
|
22,122 |
|
|
23,562 |
|
|
3,431 |
|
Amount due to related parties |
|
22,485 |
|
|
34,018 |
|
|
4,953 |
|
Derivative financial liabilities |
|
269,251 |
|
|
151,177 |
|
|
22,013 |
|
Lease liability-current |
|
180,468 |
|
|
179,662 |
|
|
26,161 |
|
Other current liabilities |
|
310,456 |
|
|
311,940 |
|
|
45,422 |
|
Total current liabilities |
|
1,318,262 |
|
|
1,260,769 |
|
|
183,582 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term bank borrowings |
|
8,800 |
|
|
7,770 |
|
|
1,131 |
|
Convertible notes, at fair value |
|
354,080 |
|
|
366,262 |
|
|
53,332 |
|
Contract liabilities - non-current |
|
3,311 |
|
|
3,257 |
|
|
474 |
|
Derivative financial liabilities - non-current |
|
19,083 |
|
|
77,100 |
|
|
11,227 |
|
Lease liability-non-current |
|
820,249 |
|
|
788,089 |
|
|
114,755 |
|
Other non-current liabilities |
|
7,921 |
|
|
74,137 |
|
|
10,795 |
|
Total non-current liabilities |
|
1,213,444 |
|
|
1,316,615 |
|
|
191,714 |
|
Total liabilities |
|
2,531,706 |
|
|
2,577,384 |
|
|
375,296 |
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
Ordinary Shares (US$0.00000939586994067732 par value, 500,000,000
shares authorized, 160,648,112 and 149,181,538 shares issued as of
March 31, 2023 and December 31, 2022, respectively and 152,105,129
and 140,938,555 shares outstanding as of March 31, 2023 and
December 31, 2022, respectively) |
|
9 |
|
|
9 |
|
|
1 |
|
Additional paid-in capital |
|
1,472,015 |
|
|
1,639,069 |
|
|
238,667 |
|
Accumulated losses |
|
(1,380,173 |
) |
|
(1,555,058 |
) |
|
(226,434 |
) |
Accumulated other comprehensive income |
|
16,999 |
|
|
16,123 |
|
|
2,348 |
|
Treasury shares (8,542,983 and 8,242,983 ordinary shares as of
March 31, 2023 and December 31, 2022, respectively) |
|
- |
|
|
- |
|
|
- |
|
Total equity attributable to shareholders of the Company |
|
108,850 |
|
|
100,143 |
|
|
14,582 |
|
Non-controlling interests |
|
1,454 |
|
|
1,887 |
|
|
275 |
|
Total shareholders’ equity |
|
110,304 |
|
|
102,030 |
|
|
14,857 |
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
2,642,010 |
|
|
2,679,414 |
|
|
390,153 |
|
|
|
|
|
|
|
|
TH
INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME/(LOSS) |
(Amounts in
thousands of RMB and US$, except for per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
Revenues: |
|
|
|
|
|
|
Company owned and operated stores |
|
211,045 |
|
|
310,451 |
|
|
45,205 |
|
Other revenues |
|
13,612 |
|
|
26,028 |
|
|
3,790 |
|
Total revenues |
|
224,657 |
|
|
336,479 |
|
|
48,995 |
|
|
|
|
|
|
|
|
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 RMB12,104,853 and RMB5,880,992
for the three months ended March 31, 2023 and 2022,
respectively) |
|
69,571 |
|
|
111,326 |
|
|
16,210 |
|
Rental and
property management fee |
|
58,366 |
|
|
71,410 |
|
|
10,398 |
|
Payroll and
employee benefits |
|
71,799 |
|
|
72,960 |
|
|
10,624 |
|
Delivery
costs |
|
14,834 |
|
|
22,782 |
|
|
3,318 |
|
Other
operating expenses (including service fee from transactions with a
related party of RMB150,000 and RMB100,000 for the three months
ended March 31, 2023 and 2022, respectively) |
|
29,697 |
|
|
25,088 |
|
|
3,653 |
|
Store
depreciation and amortization |
|
25,888 |
|
|
32,974 |
|
|
4,801 |
|
Company owned and operated store costs and
expenses |
|
270,155 |
|
|
336,540 |
|
|
49,004 |
|
|
|
|
|
|
|
|
Costs of
other revenues |
|
8,782 |
|
|
18,868 |
|
|
2,747 |
|
Marketing
expenses |
|
12,701 |
|
|
18,303 |
|
|
2,665 |
|
General and
administrative expenses |
|
50,507 |
|
|
70,620 |
|
|
10,286 |
|
Franchise
and royalty expenses (including franchise and royalty expenses from
transactions with a related party of RMB10,802,069 and RMB7,036,697
for the three months ended March 31, 2023 and 2022,
respectively) |
|
7,830 |
|
|
11,905 |
|
|
1,734 |
|
Other
operating costs and expenses |
|
2,513 |
|
|
5,572 |
|
|
811 |
|
Loss on
disposal of property and equipment |
|
5,403 |
|
|
896 |
|
|
130 |
|
Impairment
losses of long-lived assets |
|
1,892 |
|
|
4,418 |
|
|
643 |
|
Other
income |
|
214 |
|
|
226 |
|
|
33 |
|
Total costs and expenses, net |
|
359,569 |
|
|
466,896 |
|
|
67,987 |
|
|
|
|
|
|
|
|
Operating loss |
|
(134,912 |
) |
|
(130,417 |
) |
|
(18,992 |
) |
|
|
|
|
|
|
|
Interest
income |
|
186 |
|
|
2,023 |
|
|
295 |
|
Interest
expenses |
|
(2,620 |
) |
|
(4,336 |
) |
|
(631 |
) |
Foreign
currency transaction loss |
|
(1,232 |
) |
|
(1,788 |
) |
|
(260 |
) |
Changes in
fair value of convertible notes |
|
(12,684 |
) |
|
(14,272 |
) |
|
(2,078 |
) |
Changes in
fair value of warrant liabilities |
|
- |
|
|
(58,184 |
) |
|
(8,472 |
) |
Changes in
fair value of ESA derivative liabilities |
|
- |
|
|
32,523 |
|
|
4,736 |
|
|
|
|
|
|
|
|
Loss
before income taxes |
|
(151,262 |
) |
|
(174,451 |
) |
|
(25,402 |
) |
Income tax
expenses |
|
- |
|
|
- |
|
|
- |
|
Net
loss |
|
(151,262 |
) |
|
(174,451 |
) |
|
(25,402 |
) |
|
|
|
|
|
|
|
Less: Net
Loss attributable to non-controlling interests |
|
(646 |
) |
|
433 |
|
|
63 |
|
Net Loss
attributable to shareholders of the Company |
|
(150,616 |
) |
|
(174,884 |
) |
|
(25,465 |
) |
Basic and
diluted loss per Ordinary Share |
|
(1.21 |
) |
|
(1.25 |
) |
|
(0.18 |
) |
|
|
|
|
|
|
|
Net
loss |
|
(151,262 |
) |
|
(174,451 |
) |
|
(25,402 |
) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
Fair value
changes of short-term inverstment |
|
- |
|
|
700 |
|
|
102 |
|
Fair value
changes of convertible notes due to instrument-specific credit
risk, net of nil income taxes |
|
(330 |
) |
|
(2,607 |
) |
|
(380 |
) |
Foreign
currency translation adjustment, net of nil income taxes |
|
485 |
|
|
1,029 |
|
|
150 |
|
|
|
|
|
|
|
|
Total
comprehensive loss |
|
(151,107 |
) |
|
(175,329 |
) |
|
(25,530 |
) |
|
|
|
|
|
|
|
Less:
Comprehensive loss attributable to non- controlling interests |
|
(646 |
) |
|
433 |
|
|
63 |
|
Comprehensive loss attributable to shareholders of the
Company |
|
(150,461 |
) |
|
(175,762 |
) |
|
(25,593 |
) |
|
|
|
|
|
|
|
TH
INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Amounts in
thousands of RMB and US$) |
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
Net cash used in operating activities |
|
(119,055 |
) |
|
(85,360 |
) |
|
(12,429 |
) |
Net cash
provided by/(used in) investing activities |
|
(124,264 |
) |
|
50,238 |
|
|
7,315 |
|
Net cash
provided by financing activities |
|
64,692 |
|
|
163,983 |
|
|
23,878 |
|
Effect of foreign currency exchange rate changes on cash |
(2,369 |
) |
|
(3,368 |
) |
|
(491 |
) |
Net decrease
in cash |
|
(180,996 |
) |
|
125,493 |
|
|
18,273 |
|
Cash at
beginning of the period |
|
390,837 |
|
|
239,077 |
|
|
34,812 |
|
Cash
at end of the period |
|
209,841 |
|
|
364,570 |
|
|
53,086 |
|
|
|
|
|
|
|
|
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$, except for number of shares
and per share data) |
|
|
|
|
|
|
|
A. Adjusted store EBITDA and adjusted store EBITDA
margin |
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
Revenues - company owned and operated stores |
|
211,045 |
|
|
310,451 |
|
|
45,205 |
|
Food and
packaging costs - company owned and operated stores |
|
(69,571 |
) |
|
(111,326 |
) |
|
(16,210 |
) |
Rental
expenses - company owned and operated stores |
|
(58,366 |
) |
|
(71,410 |
) |
|
(10,398 |
) |
Payroll and
employee benefits - company owned and operated stores |
|
(71,799 |
) |
|
(72,960 |
) |
|
(10,624 |
) |
Delivery
costs - company owned and operated stores |
|
(14,834 |
) |
|
(22,782 |
) |
|
(3,318 |
) |
Other
operating expenses - company owned and operated stores |
|
(29,697 |
) |
|
(25,088 |
) |
|
(3,653 |
) |
Store
depreciation and amortization |
|
(25,888 |
) |
|
(32,974 |
) |
|
(4,801 |
) |
Franchise
and royalty expenses - company owned and operated stores |
|
(6,355 |
) |
|
(9,823 |
) |
|
(1,430 |
) |
Fully-burdened gross loss - company owned and operated
stores |
|
(65,465 |
) |
|
(35,912 |
) |
|
(5,229 |
) |
Store
depreciation and amortization |
|
25,888 |
|
|
32,974 |
|
|
4,801 |
|
Store
pre-opening expenses |
|
14,566 |
|
|
8,940 |
|
|
1,302 |
|
Adjusted Store EBITDA |
|
(25,011 |
) |
|
6,002 |
|
|
873 |
|
Adjusted Store EBITDA Margin |
|
-11.9 |
% |
|
1.9 |
% |
|
1.9 |
% |
|
|
|
|
|
|
|
B.
Adjusted general and administrative expenses |
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
General and
administrative expenses |
|
(50,507 |
) |
|
(70,620 |
) |
|
(10,286 |
) |
Adjusted
for: |
|
|
|
|
|
|
Share-based
compensation expenses |
|
- |
|
|
3,161 |
|
|
460 |
|
Adjusted General and administrative expenses |
|
(50,507 |
) |
|
(67,459 |
) |
|
(9,826 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C. Adjusted corporate EBITDA and adjusted corporate EBITDA
margin |
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
Operating
loss |
|
(134,912 |
) |
|
(130,417 |
) |
|
(18,992 |
) |
Adjusted
for: |
|
|
|
|
|
|
Store
pre-opening expenses |
|
14,566 |
|
|
8,940 |
|
|
1,302 |
|
Depreciation
and amortization |
|
29,566 |
|
|
38,357 |
|
|
5,585 |
|
Share-based
compensation expenses |
|
- |
|
|
3,161 |
|
|
460 |
|
Impairment
losses of long-lived assets |
|
1,892 |
|
|
4,418 |
|
|
643 |
|
Loss on
disposal of property and equipment |
|
5,403 |
|
|
896 |
|
|
130 |
|
Adjusted Corporate EBITDA |
|
(83,485 |
) |
|
(74,645 |
) |
|
(10,872 |
) |
Adjusted Corporate EBITDA Margin |
|
-37.2 |
% |
|
-22.2 |
% |
|
-22.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D.
Adjusted net loss and adjusted net loss margin |
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
Net
loss |
|
(151,262 |
) |
|
(174,451 |
) |
|
(25,402 |
) |
Adjusted
for: |
|
|
|
|
|
|
Store
pre-opening expenses |
|
14,566 |
|
|
8,940 |
|
|
1,302 |
|
Share-based
compensation expenses |
|
- |
|
|
3,161 |
|
|
460 |
|
Impairment
losses of long-lived assets |
|
1,892 |
|
|
4,418 |
|
|
643 |
|
Loss on
disposal of property and equipment |
|
5,403 |
|
|
896 |
|
|
130 |
|
Changes in
fair value of convertible notes |
|
12,684 |
|
|
14,272 |
|
|
2,078 |
|
Changes in
fair value of warrant liabilities |
|
- |
|
|
58,184 |
|
|
8,472 |
|
Changes in
fair value of ESA derivative liabilities |
|
- |
|
|
(32,523 |
) |
|
(4,736 |
) |
Adjusted Net loss |
|
(116,717 |
) |
|
(117,103 |
) |
|
(17,053 |
) |
Adjusted Net loss Margin |
|
-52.0 |
% |
|
-34.8 |
% |
|
-34.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E.
Adjusted basic and diluted net loss per Ordinary
Share |
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
RMB |
|
RMB |
|
US$ |
Net Loss
attributable to shareholders of the Company |
|
(150,616 |
) |
|
(174,884 |
) |
|
(25,465 |
) |
Adjusted
for: |
|
|
|
|
|
|
Store
pre-opening expenses |
|
14,566 |
|
|
8,940 |
|
|
1,302 |
|
Share-based
compensation expenses |
|
- |
|
|
3,161 |
|
|
460 |
|
Impairment
losses of long-lived assets |
|
1,892 |
|
|
4,418 |
|
|
643 |
|
Loss on
disposal of property and equipment |
|
5,403 |
|
|
896 |
|
|
130 |
|
Changes in
fair value of convertible notes |
|
12,684 |
|
|
14,272 |
|
|
2,078 |
|
Changes in
fair value of warrant liabilities |
|
- |
|
|
58,184 |
|
|
8,472 |
|
Changes in
fair value of ESA derivative liabilities |
|
- |
|
|
(32,523 |
) |
|
(4,736 |
) |
Adjusted Net loss attributable to shareholders of the
Company |
|
(116,071 |
) |
|
(117,536 |
) |
|
(17,116 |
) |
Weighted
average shares outstanding used in calculating basic and diluted
loss per share |
|
124,193,928 |
|
|
139,612,628 |
|
|
139,612,628 |
|
Adjusted basic and diluted net loss per Ordinary
Share |
|
(0.93 |
) |
|
(0.84 |
) |
|
(0.12 |
) |
|
|
|
|
|
|
|
TH (NASDAQ:THCH)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
TH (NASDAQ:THCH)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024