System Sales Increased 4.0% Year-over-Year to RMB359.4 Million
17 Net New Store Openings During the Fourth Quarter,
1,047 System-Wide Stores at Year-End 2025
31.0 Million Registered Loyalty Club Members at Year-End,
Representing 29.0% Year-over-Year Growth
SHANGHAI and NEW YORK, April 14, 2026 (GLOBE NEWSWIRE) -- TH International Limited (Nasdaq: THCH), the exclusive operator of Tim Hortons coffee shops in China ("Tims China" or the "Company"), today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.
FOURTH QUARTER 2025 HIGHLIGHTS
-- Total revenues of RMB308.5 million (USD44.1 million), representing a 7.3%
decrease from the same quarter of 2024.
-- System sales1 of RMB359.4 million (USD51.4 million), representing a 4.0%
increase from the same quarter of 2024.
-- Net new store openings totaled 17 (a net openings of 40 made-to-order
("MTO") stores and a net closure of 23 non-MTO stores, of which 13 were
Tims Express stores).
-- Company owned and operated store contribution2, previously reported as
adjusted store EBITDA, was RMB9.2 million (USD1.3 million), compared to
RMB13.0 million in the same quarter of 2024.
-- Company owned and operated store contribution margin3, previously
reported as adjusted store EBITDA margin, was 3.7%, compared to 4.8% in
the same quarter of 2024.
_________________________
(1 System sales is calculated as the gross merchandise value of sales generated from both company owned and operated stores and franchised stores.)
(2 Company owned and operated store contribution is calculated as fully burdened gross profit4 of company owned and operated stores excluding depreciation & amortization.)
(3 Company owned and operated store contribution margin is calculated as company owned and operated store contribution as a percentage of revenues from company owned and operated stores.)
4 Fully burdened gross profit of company owned and operated stores, the most directly comparable GAAP measure to company owned and operated store contribution, was a loss of RMB17.0 million (USD2.4 million) for the three months ended December 31, 2025, compared to a loss of RMB23.1 million in the same quarter of 2024.
FULL YEAR 2025 HIGHLIGHTS
-- Total revenues were RMB1,316.2 million (USD188.2 million), representing
a 5.4% decrease from 2024.
-- Net new store openings totaled 25 (a net openings of 138 made-to-order
("MTO") stores and a net closure of 113 non-MTO stores, of which 64 were
Tims Express stores).
-- Registered loyalty club members totaled 31.0 million members as of
December 31, 2025, representing a 29.0% growth from 2024.
COMPANY MANAGEMENT STATEMENT
Mr. Yongchen Lu, CEO & Director of Tims China, stated, "In the fourth quarter, we achieved positive net new store openings and continued our strong momentum in system sales, achieving a 4.0% year-over-year growth. 2025 marked a critical transition year for the Company. We further solidified our differentiated strategic positioning in 'Coffee + Freshly Prepared Food,' completed made-to-order renovations at almost all system-wide stores, surpassed 31 million registered loyalty club members, and received over 10,000 individual sub-franchisee applications by year-end. In the meantime, our sub-franchise businesses maintained steady contribution to cash flows and profitability. Profits from other revenues achieved a year-over-year growth of 55.7% in 2025."
Mr. Dong (Albert) Li, CFO of Tims China, commented, "Amidst macroeconomic volatility and intensive market competition, our team demonstrated strong resilience and achieved profitability improvements through enhanced operational efficiencies, supply chain optimizations, and rigorous cost controls. In 2025, our full-year adjusted corporate EBITDA margin improved by 1.0 percentage point year-over-year. Specifically, for the full year of 2025, food and packaging costs, labor costs, other store operating expenses (each as a percentage of revenues from company owned and operated stores), and adjusted general and administrative expenses as a percentage of total revenues decreased by 1.4 percentage points, 0.8 percentage points, 0.1 percentage points, and 0.7 percentage points, respectively."
FOURTH QUARTER 2025 FINANCIAL RESULTS
Total revenues were RMB308.5 million (USD44.1 million) for the three months ended December 31, 2025, representing a decrease of 7.3% from RMB332.6 million in the same quarter of 2024. Total revenues comprise:
-- Revenues from Company owned and operated stores were RMB248.7 million
(USD35.6 million) for the three months ended December 31, 2025,
representing a decrease of 8.0% from RMB270.2 million in the same quarter
of 2024. The decrease was primarily attributable to closures of certain
underperforming stores and a 1.4% decline in same-store sales growth for
company owned and operated stores in the fourth quarter of 2025. The
decrease was also attributable to an 8.4% year-over-year decrease in
average ticket size, partially offset by a 3.0% increase in the number of
orders from 9.5 million in the fourth quarter of 2024 to 9.8 million in
the same quarter of 2025.
-- Other revenues were RMB59.8 million (USD8.6 million) for the three months
ended December 31, 2025, representing a decrease of 4.3% from RMB62.5
million in the same quarter of 2024. The decrease was primarily due to
less franchised stores were opened in the fourth quarter of 2025 compared
to that in the same quarter of 2024.
Company owned and operated store costs and expenses were RMB257.3 million (USD36.8 million) for the three months ended December 31, 2025, representing a decrease of 9.4% from RMB283.9 million in the same quarter of 2024. Company owned and operated store costs and expenses comprise:
-- Food and packaging costs were RMB73.1 million (USD10.5 million) for the
three months ended December 31, 2025, representing a decrease of 13.8%
from RMB84.8 million in the same quarter of 2024, which was in line with
the revenue trend. As we continued to benefit from higher efficiencies in
supply chains and cost reduction on raw materials, logistic and
warehousing expenses, food and packaging costs as a percentage of
revenues from company owned and operated stores decreased by 2.0
percentage points from 31.4% in the fourth quarter of 2024 to 29.4% in
the same quarter of 2025.
-- Rental and property management fees were RMB52.6 million (USD7.5 million)
for the three months ended December 31, 2025, representing a decrease of
7.4% from RMB56.9 million in the same quarter of 2024, which was in line
with the revenue trend as the number of our company-owned and operated
stores decreased from 576 as of December 31, 2024 to 562 as of December
31, 2025. Rental and property management fees as a percentage of revenues
from company owned and operated stores increased slightly by 0.2
percentage points from 21.0% in the fourth quarter of 2024 to 21.2% in
the same quarter of 2025.
-- Payroll and employee benefits expenses were RMB50.6 million (USD7.2
million) for the three months ended December 31, 2025, representing a
decrease of 7.9% from RMB54.9 million in the same quarter of 2024, which
was in line with the revenue trend. Payroll and employee benefits
expenses as a percentage of revenues from company owned and operated
stores remained stable at 20.3% in both the fourth quarter of 2024 and
2025.
-- Delivery costs were RMB33.0 million (USD4.7 million) for the three months
ended December 31, 2025, representing an increase of 15.5% from RMB28.6
million in the same quarter of 2024, which was in line with the 29.2%
increase in delivery orders from 4.8 million in the fourth quarter of
2024 to 6.2 million in the same quarter of 2025. Delivery costs as a
percentage of revenues from company owned and operated stores increased
by 2.7 percentage points to 13.3% in the fourth quarter of 2025, compared
to 10.6% in the same quarter of 2024, which was primarily due to delivery
revenue as a percentage of revenues from company owned and operated
stores increased from 51.8% in Q4 2024 to 65.6% in Q4 2025.
-- Other operating expenses were RMB21.7 million (USD3.1 million) for the
three months ended December 31, 2025, representing a decrease of 4.4%
from RMB22.7 million in the same quarter of 2024, which was in line with
the revenue trend. Other operating expenses as a percentage of revenues
from company owned and operated stores increased by 0.3 percentage points
to 8.7% in the fourth quarter of 2025, compared to 8.4% in the same
quarter of 2024.
-- Store depreciation and amortization expenses were RMB26.2 million (USD3.7
million) for the three months ended December 31, 2025, representing a
decrease of 27.3% from RMB36.1 million in the same quarter of 2024, which
was primarily due to impairment on property and equipment in relation to
company owned and operated store closures and the reduced capital
expenditures per store as a result of our initiatives to improve store
unit economics. Store depreciation and amortization as a percentage of
revenues from company owned and operated stores decreased by 2.9
percentage points to 10.5% in the fourth quarter of 2025, compared to
13.4% in the same quarter of 2024.
Costs of other revenues were RMB41.5 million (USD5.9 million) for the three months ended December 31, 2025, representing a decrease of 14.4% from RMB48.5 million in the same quarter of 2024, which was in line with the revenue trend. Costs of other revenues as a percentage of other revenues decreased by 8.3 percentage points from 77.7% in the fourth quarter of 2024 to 69.4% in the same quarter of 2025 due to higher margin we generated from franchise business during the fourth quarter of 2025.
Marketing expenses were RMB16.3 million (USD2.3 million) for the three months ended December 31, 2025, representing an increase of 18.4% from RMB13.8 million in the same quarter of 2024, as we expanded our branding initiatives and promotional offers. Accordingly, marketing expenses as a percentage of total revenues increased by 1.2 percentage points from 4.1% in the fourth quarter of 2024 to 5.3% in the same quarter of 2025.
General and administrative expenses were RMB63.0 million (USD9.0 million) for the three months ended December 31, 2025, representing a decrease of 17.4% from RMB76.3 million in the same quarter of 2024, which was primarily due to a RMB9.7 million (USD1.4 million) decrease in credit loss of account receivables. As a result of the foregoing, adjusted general and administrative expenses, which excludes: (i) share-based compensation expenses of RMB0.4 million (USD0.1 million), (ii) professional fees related to financing programs of RMB15.2 million (USD2.2 million); and (iii) reversal of impairment losses of rental deposits of RMB1.2 million (USD0.2 million), were RMB48.6 million (USD7.0 million), representing a decrease of 36.9% from RMB77.1 million in the same quarter of 2024. Adjusted general and administrative expenses as a percentage of total revenues decreased by 7.4 percentage points from 23.2% in the fourth quarter of 2024 to 15.8% in the same quarter of 2025. For more information on the Company's non-GAAP financial measures, please see "Use of Non-GAAP Financial Measures" and "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 (USD2.2 million) for the three months ended December 31, 2025, representing an increase of 10.3% from RMB14.0 million in the same quarter of 2024, which was primarily due to an increase in the number of systemwide stores from 1,022 as of December 31, 2024 to 1,047 as of December 31, 2025 and a higher royalty rate applicable. Accordingly, franchise and royalty expenses as a percentage of total revenues increased by 0.8 percentage points, from 4.2% in the fourth quarter of 2024 to 5.0% in the same quarter of 2025.
Impairment losses of long-lived assets were RMB31.2 million (USD4.5 million) for the three months ended December 31, 2025, compared to RMB15.9 million in the same quarter of 2024, which was primarily due to an increase in the number of planned closures of underperforming company owned and operated stores.
As a result of the foregoing, operating loss was RMB118.6 million (USD17.0 million) for the three months ended December 31, 2025, compared to RMB117.2 million in the same quarter of 2024.
Adjusted Corporate EBITDA was a loss of RMB35.4 million (USD5.1 million) for the three months ended December 31, 2025, compared to a loss of RMB49.4 million in the same quarter of 2024. Adjusted Corporate EBITDA margin was negative 11.6% in the fourth quarter of 2025, compared to negative 14.9% in the same quarter of 2024.
Net loss from continuing operations was RMB227.2 million (USD32.5 million) for the three months ended December 31, 2025, compared to RMB138.9 million for the same quarter of 2024. Adjusted net loss was RMB75.7 million (USD10.8 million) for the three months ended December 31, 2025, compared to RMB98.0 million for the same quarter of 2024. Adjusted net loss margin was negative 24.7% in the fourth quarter of 2025, compared to negative 29.5% in the same quarter of 2024.
Net loss was RMB227.2 million (USD32.5 million) for the three months ended December 31, 2025, compared to RMB132.4 million for the same quarter of 2024.
Basic and diluted loss per ordinary share was RMB7.01 (USD1.00) in the fourth quarter of 2025, compared to RMB4.05 in the same quarter of 2024. Adjusted basic and diluted net loss per ordinary share was RMB2.36 (USD0.34) in the fourth quarter of 2025, compared to RMB2.99 in the same quarter of 2024.
As of December 31, 2025, the Company's total cash and cash equivalents, restricted cash and time deposits were RMB129.7 million (USD18.5 million), compared to RMB184.2 million as of December 31, 2024. The change was primarily attributable to cash disbursements on the back of the expansion of our business, partially offset by the draw-down of additional bank borrowings.
KEY OPERATING DATA
Tims only For the three months ended or as of
----------------------------------------------------------------------
Exclude the
discontinued
business) Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31,
2024 2024 2025 2025 2025 2025
---------- ---------- ---------- ---------- ---------- ----------
Total stores 946 1,022 1,024 1,015 1,030 1,047
Company owned
and operated
stores 564 576 569 566 551 562
Franchised
stores 382 446 455 449 479 485
Made to order
(MTO) stores 485 632 652 692 730 770
Non-MTO stores 461 390 372 323 300 277
Same-store
sales growth
for
system-wide
stores -21.7% -13.3% -7.8% -4.8% 1.3% -2.4%
Same-store
sales growth
for company
owned and
operated
stores -20.7% -12.3% -6.5% -3.6% 3.3% -1.4%
Registered
loyalty club
members (in
thousands) 22,815 24,045 25,150 26,192 27,900 31,021
Company owned
and operated
store
contribution
(Renminbi in
thousands) 39,922 12,973 17,154 27,176 21,786 9,164
Company owned
and operated
store
contribution
margin 13.3% 4.8% 6.7% 9.6% 7.7% 3.7%
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.
-- System sales. Gross merchandise value of sales generated from both
company owned and operated stores and franchised stores.
-- Company owned and operated store contribution (previously reported as
adjusted store EBITDA). Calculated as fully burdened gross profit of
company owned and operated stores excluding depreciation and
amortization.
-- Company owned and operated store contribution margin (previously reported
as adjusted store EBITDA margin). Calculated as company owned and
operated store contribution 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"), professional fees related to warrant exchange
and other financing programs, and impairment losses of rental deposits.
-- Adjusted corporate EBITDA. Calculated as operating loss for continuing
operations excluding certain non-cash expenses consisting of depreciation
and amortization, share-based compensation expenses, impairment losses of
long-lived assets, loss on disposal of property and equipment, expenses
related to the Commitment Shares, the ESA Offering Costs, the Option
Shares, professional fees related to warrant exchange and other financing
programs, and impairment losses of rental deposits.
-- Adjusted corporate EBITDA margin. Calculated as adjusted corporate EBITDA
as a percentage of total revenues.
-- Adjusted net loss. Calculated as net loss for continuing operations
excluding share-based compensation expenses, impairment losses of
long-lived assets, loss on disposal of property and equipment, expenses
related to the Commitment Shares, the ESA Offering Costs, the Option
Shares, professional fees related to warrant exchange and other financing
programs, impairment losses of rental deposits, changes in fair value of
convertible notes, changes in fair value of warrant liabilities, changes
in fair value of ESA derivative liabilities, loss of the debt
extinguishment and gain on disposal of Popeyes business.
-- 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 shares.
RECENT BUSINESS DEVELOPMENTS
To celebrate the dual anniversaries with its over 31 million registered loyalty club members, Tims China partnered with Air Canada to launch a special "Maple Journey" campaign in February 2026, offering four round-trip tickets between Shanghai and a city of choice in Canada. This exclusive promotion serves as a heartfelt thank-you to Chinese consumers for their support over the past seven years, connecting Shanghai and Canada through both coffee and travel. Tims China's connection with travel extends beyond this partnership. In recent years, the brand has expanded into key transportation hubs, including airports, high-speed rail stations, and highway service areas, bringing Tims stores to major transit points. Whether in the air or on the move across cities, travelers can enjoy a delicious and trusted Tims experience.
USE OF NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures, namely company owned and operated store contribution, company owned and operated store contribution 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) company owned and operated store contribution as fully burdened gross profit of company owned and operated stores excluding depreciation and amortization; (ii) company owned and operated store contribution margin as company owned and operated store contribution 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, the Option Shares, professional fees related to warrant exchange and other financing programs, and impairment losses of rental deposits; (iv) adjusted corporate EBITDA as operating loss for continuing operations excluding certain non-cash expenses consisting of depreciation and amortization, share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, professional fees related to warrant exchange and other financing programs, and impairment losses of rental deposits; (v) adjusted corporate EBITDA margin as adjusted corporate EBITDA as a percentage of total revenues; (vi) adjusted net loss as net loss for continuing operations excluding share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, expenses related to the Commitment Shares, the ESA Offering Costs, the Option Shares, professional fees related to warrant exchange and other financing programs, impairment losses of rental deposits, changes in fair value of convertible notes, changes in fair value of warrant liabilities, changes in fair value of ESA derivative liabilities, loss of the debt extinguishment and gain on disposal of Popeyes business; (vii) adjusted net loss margin as adjusted net loss as a percentage of total revenues; and (viii) adjusted basic and diluted net loss per ordinary share as adjusted net loss for continuing operations attributable to the Company's ordinary shareholders divided by weighted-average number of basic and diluted ordinary share. The Company believes company owned and operated store contribution, company owned and operated store contribution 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 Non-GAAP Measures to the Most Directly Comparable GAAP Measures." 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 earnings 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 RMB6.9931 to USD1.00, the exchange rate in effect on December 31, 2025 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 rate or at all.
CONFERENCE CALL
The Company will hold a conference call today, on Tuesday, April 14, 2026, at 8:00 am Eastern Time (on Tuesday, April 14, 2026, at 8:00 pm Beijing Time) to discuss the financial results.
Participants are strongly encouraged to pre-register for the conference call, by using the weblink provided below.
https://register-conf.media-server.com/register/BIa8caf52166d74ea2961e15361ea8e13f
Participants may also view the live webcast by registering through below weblink:
https://edge.media-server.com/mmc/p/ro58awqs
The webcast features a 'Submit Your Question' tab at the top, where you will have the opportunity to submit your questions before and during the call.
A live and archived webcast of the conference call will also be available at the Company's Investor Relations website at https://ir.timschina.com under "Events and Presentations".
FORWARD-LOOKING STATEMENTS
Certain statements in this earnings release may be considered forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, such as the Company's ability to further grow its business and store network, optimize its cost structure, improve its operational efficiency, and achieve profitable growth. Forward-looking statements are statements that are not historical facts and generally relate to future events or the Company's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target, " "plan," "expect," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including, but not limited to, general economic conditions and other risks, uncertainties and factors set forth in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in the Company's Annual Report on Form 20-F, and other filings it makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Except as required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.
STATEMENT REGARDING PRELIMINARY UNAUDITED FINANCIAL INFORMATION
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited financial information. Accordingly, you should not place undue reliance upon these preliminary estimates. The preliminary unaudited financial information included in this press release has been prepared by, and is the responsibility of, the Company's management. The Company's auditor has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to such preliminary financial data. Accordingly, the Company's auditor does not express an opinion or any other form of assurance with respect thereto. Upon completion of the year-end audit, the Company's audited financial results may differ materially from its preliminary estimates.
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. Tims China was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a subsidiary of Restaurant Brands International (TSX: QSR) $(QSR)$.
The Company's philosophy is rooted in world-class execution and data-driven decision making and centered around true local relevance, continuous innovation, genuine community, and absolute convenience. For more information, please visit https://www.timschina.com.
INVESTOR AND MEDIA CONTACTS
Investor Relations
IR@timschina.com
Public and Media Relations
Patty Yu
Patty.Yu@timschina.com
TH INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of RMB and US$, except for number
of shares)
As of
-------------------------------------------
December 31, 2024 December 31, 2025
----------------- ------------------------
RMB RMB US$
ASSETS
Current assets:
Cash and cash
equivalents 152,368 121,795 17,416
Restricted Cash 31,869 7,916 1,132
Amount due from related
parties 5,858 195 28
Accounts receivable,
net 30,526 17,692 2,530
Inventories 37,578 36,793 5,261
Prepaid expenses and
other current assets 158,882 142,235 20,340
Total current assets 417,081 326,626 46,707
================ ========== ========
Non-current assets:
Property and equipment,
net 502,159 332,070 47,485
Intangible assets, net 97,019 81,014 11,585
Operating lease
right-of-use assets 493,308 348,916 49,894
Other non-current
assets 53,967 88,051 12,592
Total non-current
assets 1,146,453 850,051 121,556
Total assets 1,563,534 1,176,677 168,263
================ ========== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings,
current 381,263 395,088 56,497
Accounts payable 223,838 199,152 28,478
Contract liabilities 39,678 37,197 5,319
Amount due to related
parties 48,117 17,414 2,490
Convertible notes, at
fair value 473,716 - -
Operating lease
liabilities 178,115 180,806 25,855
Other current
liabilities 191,205 172,605 24,683
Total current
liabilities 1,535,932 1,002,262 143,322
---------------- ---------- --------
Non-current liabilities:
Convertible notes, at
fair value 464,847 1,152,723 164,837
Contract liabilities 8,022 10,133 1,449
Operating lease
liabilities 380,075 240,282 34,360
Other non-current
liabilities 7,673 7,712 1,103
Total non-current
liabilities 860,617 1,410,850 201,749
---------------- ---------- --------
Total liabilities 2,396,549 2,413,112 345,071
---------------- ---------- --------
Shareholders' equity:
Ordinary shares 10 10 1
Additional paid-in
capital 1,818,421 1,821,605 260,486
Accumulated losses (2,668,505) (3,102,994) (443,722)
Accumulated other
comprehensive income 9,185 38,393 5,490
Treasury shares - - -
Total deficit
attributable to
shareholders of the
Company (840,889) (1,242,986) (177,745)
Non-controlling
interests 7,874 6,551 937
Total shareholders'
deficit (833,015) (1,236,435) (176,808)
---------------- ---------- --------
Commitments and
Contingencies - - -
Total liabilities and
shareholders' deficit 1,563,534 1,176,677 168,263
================ ========== ========
TH INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME/(LOSS)
(Amounts in thousands of RMB and US$, except for per
share data)
For the three months ended
December 31, For the year ended December 31,
------------------------------ ----------------------------------
2024 2025 2024 2025
--------- ------------------- ---------- ----------------------
RMB RMB US$ RMB RMB US$
--------- --------- -------- ---------- ---------- ----------
Revenues:
Company owned and
operated stores 270,152 248,654 35,557 1,188,293 1,068,169 152,747
Other revenues 62,473 59,806 8,552 202,865 248,027 35,467
Total revenues 332,625 308,460 44,109 1,391,158 1,316,196 188,214
Costs and expenses,
net:
Company owned and
operated stores
Food and packaging 84,797 73,131 10,458 374,086 321,948 46,038
Rental and property
management fee 56,854 52,633 7,526 241,425 220,885 31,586
Payroll and employee
benefits 54,880 50,563 7,230 231,542 199,342 28,506
Delivery costs 28,584 33,027 4,723 119,171 130,649 18,682
Other operating
expenses 22,745 21,733 3,108 95,036 84,317 12,057
Store depreciation
and amortization 36,074 26,213 3,748 129,614 107,930 15,434
Company owned and
operated store
costs and expenses 283,934 257,300 36,793 1,190,874 1,065,071 152,303
Costs of other
revenues 48,532 41,531 5,939 153,612 171,326 24,499
Marketing expenses 13,764 16,298 2,331 64,849 63,457 9,074
General and
administrative
expenses 76,321 63,034 9,014 210,323 204,341 29,222
Franchise and
royalty expenses 13,952 15,388 2,200 57,761 62,736 8,971
Other operating
costs and expenses 315 1,950 279 10,794 3,283 469
Loss on disposal of
property and
equipment 431 1,213 173 4,147 6,470 925
Impairment losses of
long-lived assets 15,901 31,232 4,466 56,287 60,320 8,626
Other income 3,338 869 124 8,408 3,455 494
Total costs and
expenses, net 449,812 427,077 61,071 1,740,239 1,633,549 233,595
-------- -------- ------- --------- --------- -------
Operating loss (117,187) (118,617) (16,962) (349,081) (317,353) (45,381)
Interest income 982 648 93 3,203 3,528 504
Interest expenses (3,706) (4,017) (574) (22,448) (16,679) (2,385)
Foreign currency
transaction
gain/(loss) (933) (627) (91) 3,484 (1,120) (159)
Loss of the debt
extinguishment - (73,078) (10,450) (10,657) (73,078) (10,450)
Changes in fair
value of Deferred
Contingent
consideration - - - (16,941) - -
Changes in fair
value of
convertible notes (17,413) (31,493) (4,503) (65,874) (30,627) (4,380)
Loss from continuing
operations before
income taxes (138,257) (227,184) (32,487) (458,314) (435,329) (62,251)
Income tax expenses (616) - - (2,115) (484) (69)
Net loss from
continuing
operations (138,873) (227,184) (32,487) (460,429) (435,813) (62,320)
-------- -------- ------- --------- --------- -------
Discontinued
operations
Income from
discontinued
operations before
income taxes
(including gain on
disposal of Popeyes
business RMB66,203
thousand in 2024)
before income
taxes 6,485 - - 51,444 - -
Income tax expenses - - - - - -
Net income from
discontinued
operations 6,485 - - 51,444 - -
-------- -------- ------- --------- --------- -------
Net loss (132,388) (227,184) (32,487) (408,985) (435,813) (62,320)
======== ======== ======= ========= ========= =======
Less: Net
income/(loss)
attributable to
non-controlling
interests (830) 936 134 3,096 (1,323) (189)
Net income/(loss)
attributable to
shareholders of the
Company
-from continuing
operations (138,043) (228,120) (32,621) (463,525) (434,490) (62,131)
-from discontinued
operations 6,485 - - 51,444 - -
Basic and diluted
loss per Ordinary
Share (4.05) (7.01) (1.00) (12.70) (13.36) (1.91)
======== ======== ======= ========= ========= =======
Net loss (132,388) (227,184) (32,487) (408,985) (435,813) (62,320)
Other comprehensive
income/(loss)
Amounts reclassified
from accumulated
other comprehensive
income - 5,851 837 - 5,851 837
Fair value changes
of convertible
notes due to
instrument-specific
credit risk, net of
nil income taxes (1,282) 4,544 650 (1,495) 2,005 287
Foreign currency
translation
adjustment, net of
nil income taxes (16,577) 11,771 1,683 (10,812) 21,354 3,053
Total comprehensive
loss (150,247) (205,018) (29,317) (421,292) (406,603) (58,143)
Less: Comprehensive
income/(loss)
attributable to
non-controlling
interests (830) 936 134 3,096 (1,323) (189)
Comprehensive loss
attributable to
shareholders of the
Company (149,417) (205,954) (29,451) (424,388) (405,280) (57,954)
-------- -------- ------- --------- --------- -------
TH INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Amounts in thousands of RMB and US$)
For the three months ended For the year ended December
December 31, 31,
2024 2025 2024 2025
RMB RMB US$ RMB RMB US$
Net cash
provided
by/(used in)
operating
activities (31,629) (9,600) (1,373) (39,667) (12,707) (1,817)
Net cash used
in investing
activities 13,222 4,142 592 (8,037) (62,833) (8,985)
Net cash
provided
by/(used in)
financing
activities 9,800 (25,085) (3,587) 26,004 21,702 3,103
Effect of
foreign
currency
exchange
rate changes
on cash (3,890) 925 132 2,350 (688) (99)
Net decrease
in cash (12,497) (29,618) (4,236) (19,350) (54,526) (7,798)
Cash and cash
equivalents
and
restricted
cash, at
beginning of
the period 196,734 159,329 22,784 203,587 184,237 26,346
Cash and cash
equivalents
and
restricted
cash, at end
of the
period 184,237 129,711 18,548 184,237 129,711 18,548
======= ======= ====== ======= ======= ======
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$, except
for number of shares and per share data)
A. Company
owned and
operated store
contribution
For the three months ended December 31, For the year ended December 31,
2024 2025 2024 2025
% of % of % of
Revenues - Revenues - Revenues -
company company company
owned and owned and owned and % of Revenues -
operated operated operated company owned and
RMB stores RMB US$ stores RMB stores RMB US$ operated stores
Revenues -
company owned
and operated
stores 270,152 100.0 248,654 35,557 100.0 1,188,293 100.0 1,068,169 152,747 100.0
Food and
packaging costs
- company owned
and operated
stores (84,797) (31.4) (73,131) (10,458) (29.4) (374,086) (31.5) (321,948) (46,038) (30.1)
Rental expenses
- company owned
and operated
stores (56,854) (21.0) (52,633) (7,526) (21.2) (241,425) (20.3) (220,885) (31,586) (20.7)
Payroll and
employee
benefits -
company owned
and operated
stores (54,880) (20.3) (50,563) (7,230) (20.3) (231,542) (19.5) (199,342) (28,506) (18.7)
Delivery costs -
company owned
and operated
stores (28,584) (10.6) (33,027) (4,723) (13.3) (119,171) (10.0) (130,649) (18,682) (12.2)
Other operating
expenses -
company owned
and operated
stores (22,745) (8.4) (21,733) (3,108) (8.7) (95,036) (8.0) (84,317) (12,057) (7.9)
Store
depreciation
and
amortization (36,074) (13.4) (26,213) (3,748) (10.5) (129,614) (10.9) (107,930) (15,434) (10.1)
Franchise and
royalty
expenses -
company owned
and operated
stores (9,319) (3.5) (8,403) (1,202) (3.5) (39,420) (3.3) (35,748) (5,112) (3.4)
Fully-burdened
gross (loss)
profit -
company owned
and operated
stores (23,101) (8.6) (17,049) (2,438) (6.9) (42,001) (3.5) (32,650) (4,668) (3.1)
Store
depreciation
and
amortization 36,074 13.4 26,213 3,748 10.6 129,614 10.9 107,930 15,434 10.1
Company owned
and operated
store
contribution 12,973 4.8 9,164 1,310 3.7 87,613 7.4 75,280 10,766 7.0
Company owned
and operated
store
contribution
margin 4.8% 4.8% 3.7% 3.7% 3.7% 7.4% 7.4% 7.0% 7.0% 7.0%
B. Adjusted
general and
administrative
expenses
For the three months ended December 31, For the year ended December 31,
2024 2025 2024 2025
% of Total % of Total % of Total
RMB Revenues RMB US$ Revenues RMB Revenues RMB US$ % of Total Revenues
General and
administrative
expenses from
continuing
operations (76,321) (23.0) (63,034) (9,014) (20.4) (210,323) (15.2) (204,341) (29,222) (15.5)
Adjusted for:
Share-based
compensation
expenses (741) (0.2) 436 62 0.1 519 - 2,827 404 0.2
Professional
fees related to
financing
programs - - 15,232 2,178 4.9 10,464 0.8 16,239 2,322 1.2
Impairment
losses of
rental
deposits - - (1,235) (177) (0.4) 2,457 0.2 7,615 1,089 0.6
Adjusted General
and
administrative
expenses (77,062) (23.2) (48,601) (6,951) (15.8) (196,883) (14.2) (177,660) (25,407) (13.5)
C. Adjusted corporate EBITDA and
adjusted corporate EBITDA
margin
For the three months ended December 31, For the year ended December 31,
2024 2025 2024 2025
% of Total % of Total % of Total
RMB Revenues RMB US$ Revenues RMB Revenues RMB US$ % of Total Revenues
Operating loss
from continuing
operations (117,187) (35.3) (118,617) (16,962) (38.5) (349,081) (25.1) (317,353) (45,381) (24.1)
Adjusted for:
Depreciation and
amortization 44,243 13.3 36,341 5,197 11.8 167,721 12.1 146,412 20,937 11.1
Share-based
compensation
expenses (741) (0.2) 438 63 0.1 519 0.0 2,829 405 0.2
Impairment
losses of
rental
deposits - 0.0 (1,235) (177) (0.4) 2,457 0.2 7,615 1,089 0.6
One-off expense
of store
closure 7,909 2.4 - - 0.0 11,090 0.8 - - 0.0
Professional
fees related to
financing
programs - 0.0 15,232 2,178 4.9 10,464 0.8 16,239 2,322 1.2
Impairment
losses of
long-lived
assets 15,901 4.8 31,232 4,466 10.1 56,287 4.0 60,320 8,626 4.6
Loss on disposal
of property and
equipment 431 0.1 1,213 173 0.4 4,147 0.3 6,470 925 0.5
Adjusted
Corporate
EBITDA (49,444) (14.9) (35,396) (5,062) (11.6) (96,396) (6.9) (77,468) (11,077) (5.9)
D. Adjusted net
loss and
adjusted net
loss margin
For the three months ended December 31, For the year ended December 31,
2024 2025 2024 2025
% of Total % of Total % of Total
RMB Revenues RMB US$ Revenues RMB Revenues RMB US$ % of Total Revenues
Net loss from
continuing
operations (138,873) (41.8) (227,184) (32,487) (73.7) (460,429) (33.1) (435,813) (62,320) (33.1)
Adjusted for:
Share-based
compensation
expenses (741) (0.2) 438 63 0.1 519 - 2,829 405 0.2
Professional
fees related to
financing
programs - - 15,232 2,178 4.9 10,464 0.8 16,239 2,322 1.2
Impairment
losses of
long-lived
assets 15,901 4.8 31,232 4,466 10.1 56,287 4.0 60,320 8,626 4.6
Impairment
losses of
rental
deposits - - (1,235) (177) (0.4) 2,457 0.2 7,615 1,089 0.6
One-off expense
of store
closure 7,909 2.4 - - - 11,090 0.8 - - -
Loss on disposal
of property and
equipment 431 0.1 1,213 173 0.4 4,147 0.3 6,470 925 0.5
Loss of the debt
extinguishment - - 73,078 10,450 23.7 10,657 0.8 73,078 10,450 5.6
Changes in fair
value of
Deferred
Contingent
consideration - - - - - 16,941 1.2 - - -
Changes in fair
value of
convertible
notes 17,413 5.2 31,493 4,503 10.2 65,874 4.7 30,627 4,380 2.3
Adjusted Net
loss (97,960) (29.5) (75,733) (10,831) (24.7) (281,993) (20.3) (238,635) (34,123) (18.1)
E. Adjusted
basic and
diluted net
loss per
Ordinary Share
For the three months ended December 31, For the year ended December 31,
2024 2025 2024 2025
Unadjusted Unadjusted Unadjusted
and Adjusted and Adjusted and Adjusted
Basic and Basic and Basic and Unadjusted and
diluted loss diluted loss diluted loss Adjusted Basic and
per Ordinary per Ordinary per Ordinary diluted loss per
RMB Share RMB US$ Share RMB Share RMB US$ Ordinary Share
Net
income/(loss)
attributable to
shareholders of
the Company (131,558) (4.05) (228,120) (32,621) (1.00) (412,081) (12.70) (434,490) (62,131) (1.91)
Add:
Net
income/(loss)
from
discontinuing
operations to
shareholders of
the Company 6,485 0.20 - - 0.00 51,444 1.59 - - -
Net loss from
continuing
operations to
shareholders of
the Company (138,043) (4.25) (228,120) (32,621) (1.00) (463,525) (14.29) (434,490) (62,131) (1.90)
Adjusted for:
Share-based
compensation
expenses (741) (0.02) 438 63 - 519 0.02 2,829 405 0.01
Professional
fees related to
financing
programs - - 15,232 2,178 0.07 10,464 0.32 16,239 2,322 0.07
Impairment
losses of
long-lived
assets 15,901 0.49 31,232 4,466 0.14 56,287 1.73 60,320 8,626 0.27
Impairment
losses of
rental
deposits - - (1,235) (177) (0.01) 2,457 0.08 7,615 1,089 0.03
One-off expense
of store
closure 7,909 0.24 - - - 11,090 0.34 - - -
Loss on disposal
of property and
equipment 431 0.01 1,213 173 0.01 4,147 0.13 6,470 925 0.03
Loss of the debt
extinguishment - - 73,078 10,450 0.32 10,657 0.33 73,078 10,450 0.32
Changes in fair
value of
Deferred
Contingent
consideration - - - - - 16,941 0.52 - - -
Changes in fair
value of
convertible
notes 17,413 0.54 31,493 4,503 0.13 65,874 2.03 30,627 4,380 0.13
Adjusted Net
loss
attributable to
shareholders of
the Company (97,130) (2.99) (76,669) (10,965) (0.34) (285,089) (8.79) (237,312) (33,934) (1.04)
Weighted average
shares
outstanding
used in
calculating
basic and
diluted loss
per share 32,494,265 N/A 32,519,377 32,519,377 N/A 32,444,772 N/A 32,519,377 32,519,377 N/A
Adjusted basic
and diluted net
loss per
Ordinary Share (2.99) (2.36) (0.34) (8.79) (7.30) (1.04)
(END) Dow Jones Newswires
April 14, 2026 07:40 ET (11:40 GMT)
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