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 second quarter 2023.
SECOND QUARTER
2023 HIGHLIGHTS
- Total
revenues were RMB411.7 million (USD56.8 million),
representing a 129.7% increase from the same quarter of 2022.
- Net new
store openings totaled 52 (20
company owned and operated stores and 32 franchised stores),
resulting in 700 system-wide stores at
quarter-end.
- 14.7 million registered
loyalty club members at quarter-end, representing a 95.4%
year-over-year growth.
- Adjusted store
EBITDA1 was RMB18.2 million (USD2.5
million), compared to a loss of RMB43.8 million in the same quarter
in 2022.
- Adjusted store EBITDA
margin2 was 5.0%, representing an
increase of 31.6 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
RMB23.1 million (USD3.2 million) for the three months ended June
30, 2023, compared to a loss of RMB80.2 million in the same quarter
of 2022.
COMPANY MANAGEMENT
STATEMENT
Mr. Yongchen Lu, CEO & Director of Tims
China, commented, “In the second quarter, we delivered 129.7%
year-over-year top-line growth, achieving a record quarterly
revenue of over RMB400 million, driven both by new store openings
and continued strong same-store traffic and sales growth. We
continued to build density in our existing cities and penetrate new
cities such as Yantai, Taizhou, Changzhou. At the same time, we
achieved greater capital efficiency via increasing franchise
development, notably through the rapid expansion of Tims Express,
our most compact store format. The Tims China brand has never been
stronger, as evidenced by our rapidly growing loyalty club, which
now totals 14.7 million registered members, representing a 95.4%
year-over-year growth.”
Mr. Lu added, “By leveraging Tims’
infrastructure and operating expertise, we were thrilled to have
opened our first Popeyes restaurant in China on August 19, a major
milestone in our longer-term strategy to establish a growing
presence for this iconic brand across China. Adding Popeyes to the
Tims China portfolio will deliver economies of scale and supply
chain synergies for both brands, driving further growth and
profitability for our company.”
Mr. Dong (Albert) Li, CFO of Tims China,
commented, “As we continue to scale, we have demonstrated
meaningful expansion in store and company profitability. Adjusted
store EBITDA margin and adjusted corporate EBITDA margin improved
by 31.6 percentage points and 56.1 percentage points
year-over-year, respectively. We continue to monitor our cost
structure in a prudent manner, particularly expenses relating to
new store development, which we are working diligently to optimize
further and achieve shorter payback periods. We remain committed
and confident in our long-term new store development plan.”
Mr. Li continued, “Looking ahead, our top
near-term financial priorities are to deliver robust revenue
growth, improve profitability at the store- and corporate-level,
and achieve operating cash flow breakeven. By leveraging Tims
China’s strong brand recognition, growing loyalty club members,
continuous innovation, expanding store network, and disciplined
execution, we are confident in our ability to continue improving
operational efficiency and achieving profitable growth.”
SECOND QUARTER
2023 FINANCIAL
RESULTS
Total
revenues reached RMB411.7 million
(USD56.8 million) for the three months ended June 30, 2023,
representing an increase of 129.7% from RMB179.2 million in the
same quarter of 2022. Total revenues comprise:
- Revenues from company owned
and operated stores were RMB362.6 million (USD50.0
million) for the three months ended June 30, 2023,
representing an increase of 120.4% from RMB164.5 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
419 as of June 30, 2022 to 571 as of June 30, 2023 and a 20.4%
same-store sales growth for company owned and operated stores in
the second quarter of 2023.
- Other revenues
were RMB49.1 million (USD6.8 million) for the three months ended
June 30, 2023, representing an increase of 234.5% from RMB14.7
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 21 as of June 30, 2022 to 129 as
of June 30, 2023.
Company operated store costs and
expenses were RMB374.1 million (USD51.6 million) for the
three months ended June 30, 2023, representing an increase of 56.1%
from RMB239.6 million in the same quarter of 2022. Company operated
store costs and expenses comprise:
- Food and packaging
expenses were RMB123.4 million (USD17.0 million),
representing an increase of 109.5% from RMB58.9 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 decreased by 1.8 percentage points from 35.8% in
the second quarter of 2022 to 34.0% in the same quarter of 2023 as
we continue to benefit from greater economies of scale and higher
efficiencies in supply chains.
- Rental and property
management fee were RMB75.3 million (USD10.4 million),
representing an increase of 31.3% from RMB57.4 million, mainly due
to the increase in the number of company owned and operated stores
from 419 as of June 30, 2022 to 571 as of June 30, 2023. Rental and
property management fee as a percentage of revenues from company
owned and operated stores decreased by 14.1 percentage points from
34.9% in the second quarter of 2022 to 20.8% in the same quarter of
2023.
- Payroll and employee
benefits expenses were RMB79.4 million
(USD10.9 million), representing an increase of 23.3% from RMB64.4
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 17.2
percentage points from 39.1% in the second quarter of 2022 to 21.9%
in the same 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 RMB29.2 million (USD4.0 million), representing an increase of
120.1% from RMB13.3 million, due to increased home-delivery orders.
Delivery costs as a percentage of revenues from company owned and
operated stores remained flat at 8.1% in the second quarters of
2022 and 2023.
- Other operating
expenses were RMB32.3 million (USD4.5 million),
representing an increase of 89.2% from RMB17.1 million, in line
with our revenue growth and store network expansion. Other
operating expenses as a percentage of revenues from company owned
and operated stores decreased by 1.5 percentage points from 10.4%
in the second quarter of 2022 to 8.9% in the same quarter of 2023,
due to our continuous efforts to optimize our cost structure and
drive operating leverage through revenue growth and store network
expansion.
- Store depreciation and
amortization were RMB34.5 million (USD4.8 million),
representing an increase of 27.4% from RMB28.6 million, driven by
an increase in the number of company owned and operated stores from
419 as of June 30, 2022 to 571 as of June 30, 2023. Store
depreciation and amortization as a percentage of revenues from
company owned and operated stores decreased by 7.9 percentage
points from 17.4% in the second quarter of 2022 to 9.5% in the
second quarter of 2023.
Cost of other revenues was
RMB37.8 million (USD5.2 million) for the three months ended June
30, 2023, representing an increase of 360.6% from RMB8.2 million in
the same quarter of 2022, which was primarily driven by an increase
in the number of franchised stores from 21 as of June 30, 2022 to
129 as of June 30, 2023, and the incurrence of higher cost of
product sales related to our e-commerce business during the second
quarter of 2023. Cost of other revenues as a percentage of other
revenues increased by 21.1 percentage points from 56.0% in the
second quarter of 2022 to 77.1% in the same quarter of 2023.
Marketing expenses were RMB26.0
million (USD3.6 million) for the three months ended June 30, 2023,
representing an increase of 35.4% from RMB19.2 million in the same
quarter of 2022, which was primarily attributable to the increase
in the number of our system-wide stores from 440 as of June 30,
2022 to 700 as of June 30, 2023. Marketing expenses as a
percentage of total revenues decreased by 4.4 percentage points
from 10.7% in the second quarter of 2022 to 6.3% in the same
quarter of 2023.
General and administrative
expenses were RMB133.4 million (USD18.4 million) for the
three months ended June 30, 2023, representing an increase of
111.8% from RMB63.0 million in the same quarter of 2022, which was
primarily due to: (i) increased payroll and employee benefits as a
result of growing headcount; (ii) increased share-based
compensation expenses recognized; and (iii) incurrence of fees
related to warrant exchange and other financing programs.
Adjusted general and administrative expenses,
which excludes share-based compensation expenses of RMB55.6 million
(USD7.7 million) and fees related to warrant exchange and other
financing programs of RMB23.2 million (USD3.2 million), were
RMB54.7 million (USD7.5 million). Adjusted general and
administrative expenses as a percentage of total revenues decreased
by 21.9 percentage points from 35.2% in the second quarter of 2022
to 13.3% 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 RMB15.4 million (USD2.1 million) for the three months ended
June 30, 2023, representing an increase of 138.6% from RMB6.5
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 440 as of June 30, 2022 to
700 as of June 30, 2023. Franchise and royalty expenses as a
percentage of total revenues remained flat at 3.6% in the second
quarters of 2022 and 2023.
As a result of the foregoing, operating
loss was RMB178.9 million (USD24.7 million) for the three
months ended June 30, 2023, compared to RMB164.4 million in the
same quarter of 2022.
Adjusted Corporate EBITDA was a
loss of RMB47.8 million (USD6.6 million) for the three months ended
June 30, 2023, compared to a loss of RMB121.4 million in the same
quarter of 2022. Adjusted Corporate EBITDA margin
was negative 11.6% in the second quarter of 2023, representing an
improvement of 56.1 percentage points from negative 67.7% in the
second quarter of 2022.
Net loss was RMB227.7 million
(USD31.4 million) for the three months ended June 30, 2023,
compared to RMB175.6 million for the same quarter of 2022.
Adjusted net loss was RMB91.2 million (USD12.6
million) for the three months ended June 30, 2023, compared to
RMB153.9 million for the same quarter of 2022. Adjusted net loss
margin was negative 22.2% in the second quarter of 2023,
representing an improvement of 63.7 percentage points from negative
85.9% in the same quarter of 2022.
Basic and diluted net loss per ordinary
share was RMB1.50 (USD0.21) in the second quarter of 2023,
compared to RMB1.40 in the same quarter of 2022. Adjusted
basic and diluted net loss per ordinary share was RMB0.61
(USD0.08) in the second quarter of 2023, compared to RMB1.22 in the
same quarter of 2022.
Liquidity
As of June 30, 2023, the Company’s total cash
and cash equivalents and short-term investments were RMB392.0
million (USD54.1 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.
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, |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stores |
390 |
|
|
424 |
|
|
440 |
|
|
486 |
|
|
617 |
|
|
648 |
|
|
700 |
|
Company
owned and operated stores |
373 |
|
|
403 |
|
|
419 |
|
|
454 |
|
|
547 |
|
|
551 |
|
|
571 |
|
Franchised
stores |
17 |
|
|
21 |
|
|
21 |
|
|
32 |
|
|
70 |
|
|
97 |
|
|
129 |
|
Same-store
sales growth for system-wide stores |
8.2 |
% |
|
4.4 |
% |
|
-6.1 |
% |
|
8.1 |
% |
|
-8.0 |
% |
|
7.5 |
% |
|
19.9 |
% |
Same-store
sales growth for company owned and operated stores |
8.8 |
% |
|
5.5 |
% |
|
-5.3 |
% |
|
7.5 |
% |
|
-7.1 |
% |
|
8.0 |
% |
|
20.4 |
% |
Registered
loyalty club members (in thousands) |
5,969 |
|
|
6,907 |
|
|
7,532 |
|
|
8,862 |
|
|
11,250 |
|
|
12,386 |
|
|
14,721 |
|
Adjusted
store EBITDA (Renminbi in thousands) |
8,780 |
|
|
(25,011 |
) |
|
(43,787 |
) |
|
15,325 |
|
|
12,796 |
|
|
6,002 |
|
|
18,244 |
|
Adjusted
store EBITDA margin |
4.1 |
% |
|
-11.9 |
% |
|
-26.6 |
% |
|
5.3 |
% |
|
4.7 |
% |
|
1.9 |
% |
|
5.0 |
% |
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. Stores in Shanghai were not included in the calculation of
same-store sales growth for the months of April and May 2023 in
light of the significant impact of lockdowns in Shanghai in April
and May 2022.
- 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 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, 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, 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.
RECENT BUSINESS
DEVELOPMENTS
On June 20, 2023, Tims China announced a
partnership with Oatly Group AB (Nasdaq: OTLY), the world’s
original and largest oat drink company. The partners have launched
a new dairy-free ready-to-drink (RTD) oat milk latte product line,
the latest addition to Tims China’s growing portfolio of convenient
and tasty RTD beverages. The co-branded RTD products strengthen
Tims China’s out-of-store product portfolio.
On June 27, 2023, Tims China successfully
completed its previously announced warrant exchange offer and
post-offer exchange relating to its outstanding warrants. Pursuant
to the warrant exchange offer and the post-offer exchange, the
Company issued 5,419,770 ordinary shares in exchange for all of its
outstanding warrants, increasing the ordinary shares outstanding
from 160,348,112 to 165,767,882. As a result of the completion of
the warrant exchange offer and the post-offer exchange, no warrants
remain outstanding. Accordingly, the public warrants were suspended
from trading on the Nasdaq and were delisted. The ordinary shares
will continue to be listed and trade on the Nasdaq under the symbol
“THCH.” The purpose of the warrant exchange offer and post-offer
exchange is to simplify the Company’s capital structure and reduce
the potential dilutive impact of the warrants.
On July 6, 2023, Tims China announced that it
opened its 700th coffee shop in Yinchuan and expanded into
China’s Northwest as part of its broader growth plans.
On August 19, 2023, Tims China opened its first
Popeyes flagship restaurant in the heart of Shanghai’s Huaihai
commercial district. The grand opening set a new global Popeyes
record for most guest orders on an opening day, with 1,761 orders.
Tims China is committed to building Popeyes into a leading fried
chicken brand in China, with plans to open at least 10 Popeyes
restaurants in Shanghai this year and 1,700 across China over the
next 10 years.
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, expenses related to
the Option Shares, and fees related to warrant exchange and other
financing programs; (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, fees
related to warrant exchange and other financing programs,
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, 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; (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 RMB7.2513
to USD1.00, the exchange rate in effect on June 30, 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, August
29th, 2023, at 8:00 am Eastern Time (or Tuesday, August 29th, 2023,
at 8:00 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 optimize its cost structure, improve operational efficiency
and achieve profitable growth, the planned expansion of Popeyes
restaurants and the estimated benefits of such expansion.
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
ICR, LLCTimsChinaIR@icrinc.com
Public RelationsTims China
Public Relations:Patty.Yu@timschina.com
ICR, LLCTimsChinaPR@icrinc.com
TH
INTERNATIONAL LIMITED AND
SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Amounts in
thousands of RMB and US$, except for number of
shares) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31, 2022 |
|
June
30,2023(Unaudited) |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
239,077 |
|
255,592 |
|
|
35,248 |
|
Short term investment |
|
372,376 |
|
136,373 |
|
|
18,807 |
|
Accounts receivable, net |
|
5,617 |
|
29,478 |
|
|
4,065 |
|
Inventories |
|
71,468 |
|
75,094 |
|
|
10,356 |
|
Prepaid expenses and other current assets |
|
108,275 |
|
136,163 |
|
|
18,777 |
|
Total current assets |
|
796,813 |
|
632,700 |
|
|
87,253 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net |
|
720,036 |
|
750,743 |
|
|
103,532 |
|
Intangible assets, net |
|
96,018 |
|
135,061 |
|
|
18,626 |
|
Operating lease right-of-use assets |
|
946,873 |
|
947,439 |
|
|
130,658 |
|
Other non-current assets |
|
82,270 |
|
83,729 |
|
|
11,547 |
|
Total non-current assets |
|
1,845,197 |
|
1,916,972 |
|
|
264,363 |
|
Total assets |
|
2,642,010 |
|
2,549,672 |
|
|
351,616 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term bank borrowings |
|
407,807 |
|
389,172 |
|
|
53,669 |
|
Accounts payable |
|
105,673 |
|
172,859 |
|
|
23,838 |
|
Contract liabilities |
|
22,122 |
|
26,894 |
|
|
3,709 |
|
Amount due to related parties |
|
22,485 |
|
25,836 |
|
|
3,563 |
|
Derivative financial liabilities |
|
269,251 |
|
96,464 |
|
|
13,303 |
|
Lease liability-current |
|
180,468 |
|
207,077 |
|
|
28,557 |
|
Other current liabilities |
|
310,456 |
|
316,580 |
|
|
43,659 |
|
Total current liabilities |
|
1,318,262 |
|
1,234,882 |
|
|
170,298 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term bank borrowings |
|
8,800 |
|
6,655 |
|
|
918 |
|
Convertible notes, at fair value |
|
354,080 |
|
397,419 |
|
|
54,807 |
|
Contract liabilities - non-current |
|
3,311 |
|
4,023 |
|
|
555 |
|
Amount due to related parties |
|
- |
|
69,368 |
|
|
9,566 |
|
Derivative financial liabilities - non-current |
|
19,083 |
|
- |
|
|
- |
|
Lease liability-non-current |
|
820,249 |
|
805,688 |
|
|
111,109 |
|
Other non-current liabilities |
|
7,921 |
|
8,781 |
|
|
1,211 |
|
Total non-current liabilities |
|
1,213,444 |
|
1,291,934 |
|
|
178,166 |
|
Total liabilities |
|
2,531,706 |
|
2,526,816 |
|
|
348,464 |
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
Ordinary Shares (US$0.00000939586994067732 par value, 500,000,000
shares authorized, 166,067,882 and 149,181,538 shares issued as of
June 30, 2023 and December 31, 2022, respectively and 157,524,899
and 140,938,555 shares outstanding as of June 30, 2023 and December
31, 2022, respectively) |
|
9 |
|
10 |
|
|
1 |
|
Additional paid-in capital |
|
1,472,015 |
|
1,798,237 |
|
|
247,988 |
|
Accumulated losses |
|
(1,380,173 |
) |
(1,783,737 |
) |
|
(245,989 |
) |
Accumulated other comprehensive income |
|
16,999 |
|
5,437 |
|
|
751 |
|
Treasury shares (8,542,983 ordinary shares as of June 30, 2023 and
December 31, 2022) |
|
- |
|
- |
|
|
- |
|
Total equity attributable to shareholders of the Company |
|
108,850 |
|
19,947 |
|
|
2,751 |
|
Non-controlling interests |
|
1,454 |
|
2,909 |
|
|
401 |
|
Total shareholders’ equity |
|
110,304 |
|
22,856 |
|
|
3,152 |
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
- |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
2,642,010 |
|
2,549,672 |
|
|
351,616 |
|
|
|
|
|
|
|
|
TH
INTERNATIONAL LIMITED AND
SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME/(LOSS) |
(Amounts in
thousands of RMB and US$, except for per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Company owned and operated stores |
|
164,534 |
|
|
362,627 |
|
|
50,009 |
|
|
375,579 |
|
|
673,078 |
|
|
92,821 |
|
Other revenues |
|
14,673 |
|
|
49,079 |
|
|
6,768 |
|
|
28,285 |
|
|
75,107 |
|
|
10,358 |
|
Total revenues |
|
179,207 |
|
|
411,706 |
|
|
56,777 |
|
|
403,864 |
|
|
748,185 |
|
|
103,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 RMB22,965,817 and RMB4,653,176
for the three months ended June 30, 2023 and 2022, respectively,
and RMB35,070,670 and RMB10,534,168 for the six months ended June
30, 2023 and 2022, respectively) |
|
58,895 |
|
|
123,394 |
|
|
17,017 |
|
|
128,466 |
|
|
234,720 |
|
|
32,369 |
|
Rental and
property management fee |
|
57,359 |
|
|
75,308 |
|
|
10,385 |
|
|
115,725 |
|
|
146,718 |
|
|
20,233 |
|
Payroll and
employee benefits |
|
64,367 |
|
|
79,371 |
|
|
10,946 |
|
|
136,166 |
|
|
152,331 |
|
|
21,007 |
|
Delivery
costs |
|
13,274 |
|
|
29,216 |
|
|
4,030 |
|
|
28,108 |
|
|
51,998 |
|
|
7,172 |
|
Other
operating expenses (including service fee from transactions with a
related party of RMB150,000 and RMB150,000 for the three months
ended June 30, 2023 and 2022, respectively, and RMB300,000 and RMB
250,000 for the six months ended June 30, 2023 and 2022,
respectively) |
|
17,090 |
|
|
32,341 |
|
|
4,460 |
|
|
46,787 |
|
|
57,429 |
|
|
7,920 |
|
Store
depreciation and amortization |
|
28,609 |
|
|
34,454 |
|
|
4,751 |
|
|
54,497 |
|
|
67,428 |
|
|
9,299 |
|
Company owned and operated store costs and
expenses |
|
239,594 |
|
|
374,084 |
|
|
51,589 |
|
|
509,749 |
|
|
710,624 |
|
|
98,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
other revenues |
|
8,212 |
|
|
37,826 |
|
|
5,216 |
|
|
16,994 |
|
|
56,694 |
|
|
7,818 |
|
Marketing
expenses |
|
19,163 |
|
|
25,950 |
|
|
3,579 |
|
|
31,864 |
|
|
44,253 |
|
|
6,103 |
|
General and
administrative expenses |
|
63,012 |
|
|
133,449 |
|
|
18,404 |
|
|
113,519 |
|
|
204,069 |
|
|
28,141 |
|
Franchise
and royalty expenses (including franchise and royalty expenses from
transactions with a related party of RMB13,691,296 and RMB5,617,286
for the three months ended June 30, 2023 and 2022, respectively,
and RMB24,493,365 and RMB12,653,983 for the six months ended June
30, 2023 and 2022, respectively) |
|
6,450 |
|
|
15,389 |
|
|
2,122 |
|
|
14,280 |
|
|
27,294 |
|
|
3,764 |
|
Other
operating costs and expenses |
|
2,055 |
|
|
4,361 |
|
|
601 |
|
|
4,568 |
|
|
9,933 |
|
|
1,370 |
|
Loss on
disposal of property and equipment |
|
1,957 |
|
|
961 |
|
|
133 |
|
|
7,360 |
|
|
1,857 |
|
|
256 |
|
Impairment
losses of long-lived assets |
|
3,581 |
|
|
4,360 |
|
|
601 |
|
|
5,473 |
|
|
8,778 |
|
|
1,211 |
|
Other
income |
|
382 |
|
|
5,758 |
|
|
794 |
|
|
596 |
|
|
5,984 |
|
|
825 |
|
Total costs and expenses, net |
|
343,642 |
|
|
590,622 |
|
|
81,451 |
|
|
703,211 |
|
|
1,057,518 |
|
|
145,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(164,435 |
) |
|
(178,916 |
) |
|
(24,674 |
) |
|
(299,347 |
) |
|
(309,333 |
) |
|
(42,659 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
148 |
|
|
1,547 |
|
|
213 |
|
|
334 |
|
|
3,570 |
|
|
492 |
|
Interest
expenses |
|
(3,398 |
) |
|
(4,853 |
) |
|
(669 |
) |
|
(6,018 |
) |
|
(9,189 |
) |
|
(1,267 |
) |
Foreign
currency transaction (loss)/gain |
|
465 |
|
|
15 |
|
|
4 |
|
|
(767 |
) |
|
(1,773 |
) |
|
(245 |
) |
Changes in
fair value of convertible notes |
|
(8,395 |
) |
|
(7,054 |
) |
|
(973 |
) |
|
(21,079 |
) |
|
(21,326 |
) |
|
(2,941 |
) |
Changes in
fair value of warrant liabilities |
|
- |
|
|
(25,782 |
) |
|
(3,556 |
) |
|
- |
|
|
(83,966 |
) |
|
(11,579 |
) |
Changes in
fair value of ESA derivative liabilities |
|
- |
|
|
(12,614 |
) |
|
(1,740 |
) |
|
- |
|
|
19,909 |
|
|
2,746 |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
Loss
before income taxes |
|
(175,615 |
) |
|
(227,657 |
) |
|
(31,395 |
) |
|
(326,877 |
) |
|
(402,108 |
) |
|
(55,453 |
) |
Income tax
expenses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Net
loss |
|
(175,615 |
) |
|
(227,657 |
) |
|
(31,395 |
) |
|
(326,877 |
) |
|
(402,108 |
) |
|
(55,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
Loss attributable to non-controlling interests |
|
(1,834 |
) |
|
1,023 |
|
|
141 |
|
|
(2,480 |
) |
|
1,456 |
|
|
201 |
|
Net Loss
attributable to shareholders of the Company |
|
(173,781 |
) |
|
(228,680 |
) |
|
(31,536 |
) |
|
(324,397 |
) |
|
(403,564 |
) |
|
(55,654 |
) |
Basic and
diluted loss per Ordinary Share |
|
(1.40 |
) |
|
(1.50 |
) |
|
(0.21 |
) |
|
(2.61 |
) |
|
(2.76 |
) |
|
(0.38 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
(175,615 |
) |
|
(227,657 |
) |
|
(31,395 |
) |
|
(326,877 |
) |
|
(402,108 |
) |
|
(55,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value
changes of short-term investment |
|
- |
|
|
2,131 |
|
|
294 |
|
|
- |
|
|
2,831 |
|
|
390 |
|
Fair value
changes of convertible notes due to instrument-specific credit
risk, net of nil income taxes |
|
1,566 |
|
|
(5,059 |
) |
|
(698 |
) |
|
1,236 |
|
|
(7,666 |
) |
|
(1,057 |
) |
Foreign
currency translation adjustment, net of nil income taxes |
|
(11,024 |
) |
|
(7,758 |
) |
|
(1,070 |
) |
|
(10,539 |
) |
|
(6,729 |
) |
|
(928 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive loss |
|
(185,073 |
) |
|
(238,343 |
) |
|
(32,869 |
) |
|
(336,180 |
) |
|
(413,672 |
) |
|
(57,048 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Comprehensive loss attributable to non- controlling interests |
|
(1,834 |
) |
|
1,023 |
|
|
141 |
|
|
(2,480 |
) |
|
1,456 |
|
|
201 |
|
Comprehensive loss attributable to shareholders of the
Company |
|
(183,239 |
) |
|
(239,366 |
) |
|
(33,010 |
) |
|
(333,700 |
) |
|
(415,128 |
) |
|
(57,249 |
) |
TH
INTERNATIONAL LIMITED AND SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Amounts in
thousands of RMB and US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Net cash used in operating activities |
|
(35,887 |
) |
|
241 |
|
|
33 |
|
|
(154,942 |
) |
|
(85,119 |
) |
|
(11,738 |
) |
Net cash
used in investing activities |
|
(56,090 |
) |
|
13,919 |
|
|
1,920 |
|
|
(180,354 |
) |
|
64,157 |
|
|
8,848 |
|
Net cash
provided by financing activities |
|
161,914 |
|
|
(135,370 |
) |
|
(18,668 |
) |
|
226,606 |
|
|
28,613 |
|
|
3,946 |
|
Effect of
foreign currency exchange rate changes on cash |
|
5,357 |
|
|
12,232 |
|
|
1,686 |
|
|
2,988 |
|
|
8,864 |
|
|
1,222 |
|
Net decrease in cash |
75,294 |
|
|
(108,978 |
) |
|
(15,029 |
) |
|
(105,702 |
) |
|
16,515 |
|
|
2,278 |
|
Cash at
beginning of the period |
|
209,841 |
|
|
364,570 |
|
|
50,277 |
|
|
390,837 |
|
|
239,077 |
|
|
32,970 |
|
Cash
at end of the period |
|
285,135 |
|
|
255,592 |
|
|
35,248 |
|
|
285,135 |
|
|
255,592 |
|
|
35,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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$, except for number of shares
and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. Adjusted store EBITDA and adjusted store EBITDA
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
For the six months ended June 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Revenues - company owned and operated stores |
|
362,627 |
|
|
- |
|
|
362,627 |
|
|
50,009 |
|
|
673,078 |
|
|
- |
|
|
673,078 |
|
|
92,821 |
|
Food and
packaging costs - company owned and operated stores |
|
(123,394 |
) |
|
- |
|
|
(123,394 |
) |
|
(17,017 |
) |
|
(234,720 |
) |
|
- |
|
|
(234,720 |
) |
|
(32,369 |
) |
Rental
expenses - company owned and operated stores |
|
(75,308 |
) |
|
- |
|
|
(75,308 |
) |
|
(10,385 |
) |
|
(146,718 |
) |
|
- |
|
|
(146,718 |
) |
|
(20,233 |
) |
Payroll and
employee benefits - company owned and operated stores |
|
(79,371 |
) |
|
- |
|
|
(79,371 |
) |
|
(10,946 |
) |
|
(152,331 |
) |
|
- |
|
|
(152,331 |
) |
|
(21,007 |
) |
Delivery
costs - company owned and operated stores |
|
(29,216 |
) |
|
- |
|
|
(29,216 |
) |
|
(4,030 |
) |
|
(51,998 |
) |
|
- |
|
|
(51,998 |
) |
|
(7,172 |
) |
Other
operating expenses - company owned and operated stores |
|
(32,341 |
) |
|
- |
|
|
(32,341 |
) |
|
(4,460 |
) |
|
(57,429 |
) |
|
- |
|
|
(57,429 |
) |
|
(7,920 |
) |
Store
depreciation and amortization |
|
(34,454 |
) |
|
- |
|
|
(34,454 |
) |
|
(4,751 |
) |
|
(67,428 |
) |
|
- |
|
|
(67,428 |
) |
|
(9,299 |
) |
Franchise
and royalty expenses - company owned and operated stores |
|
(11,654 |
) |
|
- |
|
|
(11,654 |
) |
|
(1,607 |
) |
|
(21,477 |
) |
|
- |
|
|
(21,477 |
) |
|
(2,962 |
) |
Fully-burdened gross loss - company owned and operated
stores |
|
(23,111 |
) |
|
- |
|
|
(23,111 |
) |
|
(3,187 |
) |
|
(59,023 |
) |
|
- |
|
|
(59,023 |
) |
|
(8,141 |
) |
Store
depreciation and amortization |
|
34,454 |
|
|
- |
|
|
34,454 |
|
|
4,751 |
|
|
67,428 |
|
|
- |
|
|
67,428 |
|
|
9,299 |
|
Store
pre-opening expenses |
|
6,901 |
|
|
- |
|
|
6,901 |
|
|
952 |
|
|
15,841 |
|
|
- |
|
|
15,841 |
|
|
2,185 |
|
Adjusted Store EBITDA |
|
18,244 |
|
|
- |
|
|
18,244 |
|
|
2,516 |
|
|
24,246 |
|
|
- |
|
|
24,246 |
|
|
3,343 |
|
Adjusted Store EBITDA Margin |
|
5.0 |
% |
|
|
|
5.0 |
% |
|
5.0 |
% |
|
3.6 |
% |
|
|
|
3.6 |
% |
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
For the six months ended June 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Revenues -
company owned and operated stores |
|
164,534 |
|
|
- |
|
|
164,534 |
|
|
24,602 |
|
|
375,579 |
|
|
- |
|
|
375,579 |
|
|
56,159 |
|
Food and
packaging costs - company owned and operated stores |
|
(58,895 |
) |
|
- |
|
|
(58,895 |
) |
|
(8,806 |
) |
|
(128,466 |
) |
|
- |
|
|
(128,466 |
) |
|
(19,209 |
) |
Rental
expenses - company owned and operated stores |
|
(57,359 |
) |
|
- |
|
|
(57,359 |
) |
|
(8,577 |
) |
|
(115,725 |
) |
|
- |
|
|
(115,725 |
) |
|
(17,304 |
) |
Payroll and
employee benefits - company owned and operated stores |
|
(64,367 |
) |
|
- |
|
|
(64,367 |
) |
|
(9,625 |
) |
|
(136,166 |
) |
|
- |
|
|
(136,166 |
) |
|
(20,360 |
) |
Delivery
costs - company owned and operated stores |
|
(13,274 |
) |
|
- |
|
|
(13,274 |
) |
|
(1,985 |
) |
|
(28,108 |
) |
|
- |
|
|
(28,108 |
) |
|
(4,203 |
) |
Other
operating expenses - company owned and operated stores |
|
(17,090 |
) |
|
- |
|
|
(17,090 |
) |
|
(2,555 |
) |
|
(46,787 |
) |
|
- |
|
|
(46,787 |
) |
|
(6,996 |
) |
Store
depreciation and amortization |
|
(28,609 |
) |
|
- |
|
|
(28,609 |
) |
|
(4,278 |
) |
|
(54,497 |
) |
|
- |
|
|
(54,497 |
) |
|
(8,149 |
) |
Franchise
and royalty expenses - company owned and operated stores |
|
(5,152 |
) |
|
- |
|
|
(5,152 |
) |
|
(770 |
) |
|
(11,508 |
) |
|
- |
|
|
(11,508 |
) |
|
(1,721 |
) |
Fully-burdened gross loss - company owned and operated
stores |
|
(80,212 |
) |
|
- |
|
|
(80,212 |
) |
|
(11,994 |
) |
|
(145,678 |
) |
|
- |
|
|
(145,678 |
) |
|
(21,783 |
) |
Store
depreciation and amortization |
|
28,609 |
|
|
- |
|
|
28,609 |
|
|
4,278 |
|
|
54,497 |
|
|
- |
|
|
54,497 |
|
|
8,149 |
|
Store
pre-opening expenses |
|
7,817 |
|
|
- |
|
|
7,817 |
|
|
1,169 |
|
|
22,383 |
|
|
- |
|
|
22,383 |
|
|
3,347 |
|
Adjusted Store EBITDA |
|
(43,786 |
) |
|
- |
|
|
(43,786 |
) |
|
(6,547 |
) |
|
(68,798 |
) |
|
- |
|
|
(68,798 |
) |
|
(10,287 |
) |
Adjusted Store EBITDA Margin |
|
-26.6 |
% |
|
|
|
-26.6 |
% |
|
-26.6 |
% |
|
-18.3 |
% |
|
|
|
-18.3 |
% |
|
-18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. Adjusted general and administrative
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
For the six months ended June 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
General and
administrative expenses |
|
(127,148 |
) |
|
(6,301 |
) |
|
(133,449 |
) |
|
(18,404 |
) |
|
(197,768 |
) |
|
(6,301 |
) |
|
(204,069 |
) |
|
(28,141 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses |
|
55,557 |
|
|
- |
|
|
55,557 |
|
|
7,662 |
|
|
58,718 |
|
|
- |
|
|
58,718 |
|
|
8,098 |
|
Fees related
to warrant exchange and other financing programs |
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
Adjusted General and administrative expenses |
|
(48,372 |
) |
|
(6,301 |
) |
|
(54,673 |
) |
|
(7,540 |
) |
|
(115,831 |
) |
|
(6,301 |
) |
|
(122,132 |
) |
|
(15,889 |
) |
Adjusted General and administrative expenses as a % of
total revenues |
|
11.7 |
% |
|
|
|
13.3 |
% |
|
13.3 |
% |
|
15.5 |
% |
|
|
|
16.3 |
% |
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
For the six months ended June 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
General and
administrative expenses |
|
(63,012 |
) |
|
- |
|
|
(63,012 |
) |
|
(9,422 |
) |
|
(113,519 |
) |
|
- |
|
|
(113,519 |
) |
|
(16,974 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Fees related
to warrant exchange and other financing programs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Adjusted General and administrative expenses |
|
(63,012 |
) |
|
- |
|
|
(63,012 |
) |
|
(9,422 |
) |
|
(113,519 |
) |
|
- |
|
|
(113,519 |
) |
|
(16,974 |
) |
Adjusted General and administrative expenses as a % of
total revenues |
|
35.2 |
% |
|
|
|
35.2 |
% |
|
35.2 |
% |
|
28.1 |
% |
|
|
|
28.1 |
% |
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C. Adjusted corporate EBITDA and adjusted corporate EBITDA
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
For the six months ended June 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Operating loss |
(171,458 |
) |
|
(7,458 |
) |
|
(178,916 |
) |
|
(24,674 |
) |
|
(301,875 |
) |
|
(7,458 |
) |
|
(309,333 |
) |
|
(42,659 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
pre-opening expenses |
|
6,901 |
|
|
- |
|
|
6,901 |
|
|
952 |
|
|
15,841 |
|
|
- |
|
|
15,841 |
|
|
2,185 |
|
Depreciation
and amortization |
|
39,677 |
|
|
465 |
|
|
40,142 |
|
|
5,536 |
|
|
78,034 |
|
|
465 |
|
|
78,499 |
|
|
10,826 |
|
Share-based
compensation expenses |
|
55,557 |
|
|
- |
|
|
55,557 |
|
|
7,662 |
|
|
58,718 |
|
|
- |
|
|
58,718 |
|
|
8,098 |
|
Fees related
to warrant exchange and other financing programs |
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
Impairment
losses of long-lived assets |
|
4,360 |
|
|
- |
|
|
4,360 |
|
|
601 |
|
|
8,778 |
|
|
- |
|
|
8,778 |
|
|
1,211 |
|
Loss on
disposal of property and equipment |
|
961 |
|
|
- |
|
|
961 |
|
|
133 |
|
|
1,857 |
|
|
- |
|
|
1,857 |
|
|
256 |
|
Adjusted Corporate EBITDA |
|
(40,783 |
) |
|
(6,993 |
) |
|
(47,776 |
) |
|
(6,588 |
) |
|
(115,428 |
) |
|
(6,993 |
) |
|
(122,421 |
) |
|
(16,881 |
) |
Adjusted Corporate EBITDA Margin |
|
-9.9 |
% |
|
|
|
-11.6 |
% |
|
-11.6 |
% |
|
-15.4 |
% |
|
|
|
-16.4 |
% |
|
-16.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
For the six months ended June 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Operating loss |
(164,435 |
) |
|
- |
|
|
(164,435 |
) |
|
(24,587 |
) |
|
(299,347 |
) |
|
- |
|
|
(299,347 |
) |
|
(44,760 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
pre-opening expenses |
|
7,817 |
|
|
- |
|
|
7,817 |
|
|
1,169 |
|
|
22,383 |
|
|
- |
|
|
22,383 |
|
|
3,347 |
|
Depreciation
and amortization |
|
29,724 |
|
|
- |
|
|
29,724 |
|
|
4,445 |
|
|
59,290 |
|
|
- |
|
|
59,290 |
|
|
8,865 |
|
Share-based
compensation expenses |
|
- |
|
|
- |
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
- |
|
Impairment
losses of long-lived assets |
|
3,581 |
|
|
- |
|
|
3,581 |
|
|
535 |
|
|
5,473 |
|
|
- |
|
|
5,473 |
|
|
818 |
|
Loss on
disposal of property and equipment |
|
1,957 |
|
|
- |
|
|
1,957 |
|
|
293 |
|
|
7,360 |
|
|
- |
|
|
7,360 |
|
|
1,101 |
|
Adjusted Corporate EBITDA |
|
(121,356 |
) |
|
- |
|
|
(121,356 |
) |
|
(18,145 |
) |
|
(204,841 |
) |
|
- |
|
|
(204,841 |
) |
|
(30,629 |
) |
Adjusted Corporate EBITDA Margin |
|
-67.7 |
% |
|
|
|
-67.7 |
% |
|
-67.7 |
% |
|
-50.7 |
% |
|
|
|
-50.7 |
% |
|
-50.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
D. Adjusted net loss and adjusted net loss
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
For the six months ended June 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net
loss |
|
(220,259 |
) |
|
(7,398 |
) |
|
(227,657 |
) |
|
(31,395 |
) |
|
(394,710 |
) |
|
(7,398 |
) |
|
(402,108 |
) |
|
(55,453 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
pre-opening expenses |
|
6,901 |
|
|
- |
|
|
6,901 |
|
|
952 |
|
|
15,841 |
|
|
- |
|
|
15,841 |
|
|
2,185 |
|
Share-based
compensation expenses |
|
55,557 |
|
|
- |
|
|
55,557 |
|
|
7,662 |
|
|
58,718 |
|
|
- |
|
|
58,718 |
|
|
8,098 |
|
Fees related
to warrant exchange and other financing programs |
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
Impairment
losses of long-lived assets |
|
4,360 |
|
|
- |
|
|
4,360 |
|
|
601 |
|
|
8,778 |
|
|
- |
|
|
8,778 |
|
|
1,211 |
|
Loss on
disposal of property and equipment |
|
961 |
|
|
- |
|
|
961 |
|
|
133 |
|
|
1,857 |
|
|
- |
|
|
1,857 |
|
|
256 |
|
Changes in
fair value of convertible notes |
|
7,054 |
|
|
- |
|
|
7,054 |
|
|
973 |
|
|
21,326 |
|
|
- |
|
|
21,326 |
|
|
2,941 |
|
Changes in
fair value of warrant liabilities |
|
25,782 |
|
|
- |
|
|
25,782 |
|
|
3,556 |
|
|
83,966 |
|
|
- |
|
|
83,966 |
|
|
11,579 |
|
Changes in
fair value of ESA derivative liabilities |
|
12,614 |
|
|
- |
|
|
12,614 |
|
|
1,740 |
|
|
(19,909 |
) |
|
- |
|
|
(19,909 |
) |
|
(2,746 |
) |
Adjusted Net loss |
|
(83,811 |
) |
|
(7,398 |
) |
|
(91,209 |
) |
|
(12,576 |
) |
|
(200,914 |
) |
|
(7,398 |
) |
|
(208,312 |
) |
|
(28,727 |
) |
Adjusted Net loss Margin |
|
-20.4 |
% |
|
|
|
-22.2 |
% |
|
-22.2 |
% |
|
-26.9 |
% |
|
|
|
-27.8 |
% |
|
-27.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
For the six months ended June 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net
loss |
|
(175,615 |
) |
|
- |
|
|
(175,615 |
) |
|
(26,259 |
) |
|
(326,877 |
) |
|
- |
|
|
(326,877 |
) |
|
(48,877 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
pre-opening expenses |
|
7,817 |
|
|
- |
|
|
7,817 |
|
|
1,169 |
|
|
22,383 |
|
|
- |
|
|
22,383 |
|
|
3,347 |
|
Impairment
losses of long-lived assets |
|
3,581 |
|
|
- |
|
|
3,581 |
|
|
535 |
|
|
5,473 |
|
|
- |
|
|
5,473 |
|
|
818 |
|
Loss on
disposal of property and equipment |
|
1,957 |
|
|
- |
|
|
1,957 |
|
|
293 |
|
|
7,360 |
|
|
- |
|
|
7,360 |
|
|
1,101 |
|
Changes in
fair value of convertible notes |
|
8,395 |
|
|
- |
|
|
8,395 |
|
|
1,255 |
|
|
21,079 |
|
|
- |
|
|
21,079 |
|
|
3,152 |
|
Adjusted Net loss |
|
(153,865 |
) |
|
- |
|
|
(153,865 |
) |
|
(23,007 |
) |
|
(270,582 |
) |
|
- |
|
|
(270,582 |
) |
|
(40,459 |
) |
Adjusted Net loss Margin |
|
-85.9 |
% |
|
|
|
-85.9 |
% |
|
-85.9 |
% |
|
-67.0 |
% |
|
|
|
-67.0 |
% |
|
-67.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E. Adjusted basic and diluted net loss per Ordinary
Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
For the six months ended June 30, 2023 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net Loss
attributable to shareholders of the Company |
|
(221,282 |
) |
|
(7,398 |
) |
|
(228,680 |
) |
|
(31,536 |
) |
|
(396,166 |
) |
|
(7,398 |
) |
|
(403,564 |
) |
|
(55,654 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
pre-opening expenses |
|
6,901 |
|
|
- |
|
|
6,901 |
|
|
952 |
|
|
15,841 |
|
|
- |
|
|
15,841 |
|
|
2,185 |
|
Share-based
compensation expenses |
|
55,557 |
|
|
- |
|
|
55,557 |
|
|
7,662 |
|
|
58,718 |
|
|
- |
|
|
58,718 |
|
|
8,098 |
|
Fees related
to warrant exchange and other financing programs |
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
|
23,219 |
|
|
- |
|
|
23,219 |
|
|
3,202 |
|
Impairment
losses of long-lived assets |
|
4,360 |
|
|
- |
|
|
4,360 |
|
|
601 |
|
|
8,778 |
|
|
- |
|
|
8,778 |
|
|
1,211 |
|
Loss on
disposal of property and equipment |
|
961 |
|
|
- |
|
|
961 |
|
|
133 |
|
|
1,857 |
|
|
- |
|
|
1,857 |
|
|
256 |
|
Changes in
fair value of convertible notes |
|
7,054 |
|
|
- |
|
|
7,054 |
|
|
973 |
|
|
21,326 |
|
|
- |
|
|
21,326 |
|
|
2,941 |
|
Changes in
fair value of warrant liabilities |
|
25,782 |
|
|
- |
|
|
25,782 |
|
|
3,556 |
|
|
83,966 |
|
|
- |
|
|
83,966 |
|
|
11,579 |
|
Changes in
fair value of ESA derivative liabilities |
|
12,614 |
|
|
- |
|
|
12,614 |
|
|
1,740 |
|
|
(19,909 |
) |
|
- |
|
|
(19,909 |
) |
|
(2,746 |
) |
Adjusted Net loss attributable to shareholders of the
Company |
|
(84,834 |
) |
|
(7,398 |
) |
|
(92,232 |
) |
|
(12,717 |
) |
|
(202,370 |
) |
|
(7,398 |
) |
|
(209,768 |
) |
|
(28,928 |
) |
Weighted
average shares outstanding used in calculating basic and diluted
loss per share |
|
152,280,039 |
|
|
152,280,039 |
|
|
152,280,039 |
|
|
152,280,039 |
|
|
145,981,327 |
|
|
145,981,327 |
|
|
145,981,327 |
|
|
145,981,327 |
|
Adjusted basic and diluted net loss per Ordinary
Share |
|
(0.56 |
) |
|
(0.05 |
) |
|
(0.61 |
) |
|
(0.08 |
) |
|
(1.39 |
) |
|
(0.05 |
) |
|
(1.44 |
) |
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
For the six months ended June 30, 2022 |
|
|
Tims |
|
Popeyes |
|
Total |
|
Tims |
|
Popeyes |
|
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
Net Loss
attributable to shareholders of the Company |
|
(173,781 |
) |
|
- |
|
|
(173,781 |
) |
|
(25,985 |
) |
|
(324,397 |
) |
|
- |
|
|
(324,397 |
) |
|
(48,506 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
pre-opening expenses |
|
7,817 |
|
|
- |
|
|
7,817 |
|
|
1,169 |
|
|
22,383 |
|
|
- |
|
|
22,383 |
|
|
3,347 |
|
Impairment
losses of long-lived assets |
|
3,581 |
|
|
- |
|
|
3,581 |
|
|
535 |
|
|
5,473 |
|
|
- |
|
|
5,473 |
|
|
818 |
|
Loss on
disposal of property and equipment |
|
1,957 |
|
|
- |
|
|
1,957 |
|
|
293 |
|
|
7,360 |
|
|
- |
|
|
7,360 |
|
|
1,101 |
|
Changes in
fair value of convertible notes |
|
8,395 |
|
|
- |
|
|
8,395 |
|
|
1,255 |
|
|
21,079 |
|
|
- |
|
|
21,079 |
|
|
3,152 |
|
Adjusted Net loss attributable to shareholders of the
Company |
|
(152,031 |
) |
|
- |
|
|
(152,031 |
) |
|
(22,733 |
) |
|
(268,102 |
) |
|
- |
|
|
(268,102 |
) |
|
(40,088 |
) |
Weighted
average shares outstanding used in calculating basic and diluted
loss per share |
|
124,205,437 |
|
|
124,205,437 |
|
|
124,205,437 |
|
|
124,205,437 |
|
|
124,199,715 |
|
|
124,199,715 |
|
|
124,199,715 |
|
|
124,199,715 |
|
Adjusted basic and diluted net loss per Ordinary
Share |
|
(1.22 |
) |
|
- |
|
|
(1.22 |
) |
|
(0.18 |
) |
|
(2.16 |
) |
|
- |
|
|
(2.16 |
) |
|
(0.32 |
) |
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