Tims China Announces Fourth Quarter and Full Year 2024 Financial Results
Tims China (THCH) reported Q4 2024 financial results showing mixed performance. Total revenues decreased 12.0% to RMB332.6 million (USD45.6 million) compared to Q4 2023. The company achieved 76 net new store openings in Q4, reaching 1,022 system-wide stores by year-end 2024.
Key highlights include a 3.9 percentage points improvement in company-owned store contribution margin to 4.8%, and registered loyalty club members grew 29.7% YoY to 24.0 million. However, same-store sales declined 12.3% for company-owned stores, with a 13.8% decrease in order volume.
The company demonstrated progress in operational efficiency with reduced food and packaging costs (-3.7 percentage points), labor costs (-2.5 percentage points), and marketing expenses (-1.5 percentage points). The franchise business expanded significantly, with franchised stores increasing from 283 to 446 year-over-year.
Tims China (THCH) ha riportato i risultati finanziari del quarto trimestre 2024 mostrando una performance mista. I ricavi totali sono diminuiti del 12,0% a 332,6 milioni di RMB (45,6 milioni di USD) rispetto al quarto trimestre 2023. L'azienda ha realizzato 76 nuove aperture nette di negozi nel trimestre, raggiungendo un totale di 1.022 punti vendita a livello di sistema entro la fine del 2024.
I punti salienti includono un miglioramento di 3,9 punti percentuali nel margine di contribuzione dei negozi di proprietà, arrivato al 4,8%, e una crescita del 29,7% annua dei membri iscritti al programma fedeltà, ora 24,0 milioni. Tuttavia, le vendite a parità di punti vendita sono calate del 12,3% nei negozi di proprietà, con un calo del 13,8% nel volume degli ordini.
L’azienda ha mostrato progressi nell’efficienza operativa grazie a una riduzione dei costi di cibo e confezionamento (-3,7 punti percentuali), dei costi del lavoro (-2,5 punti percentuali) e delle spese di marketing (-1,5 punti percentuali). Il business in franchising è cresciuto significativamente, con un aumento dei negozi franchising da 283 a 446 su base annua.
Tims China (THCH) presentó los resultados financieros del cuarto trimestre de 2024 mostrando un desempeño mixto. Los ingresos totales disminuyeron un 12,0% hasta 332,6 millones de RMB (45,6 millones de USD) en comparación con el cuarto trimestre de 2023. La empresa logró 76 aperturas netas de nuevas tiendas en el trimestre, alcanzando un total de 1.022 tiendas en todo el sistema al cierre de 2024.
Los aspectos destacados incluyen una mejora de 3,9 puntos porcentuales en el margen de contribución de tiendas propias, que llegó al 4,8%, y un crecimiento interanual del 29,7% en miembros registrados del club de fidelidad, alcanzando los 24,0 millones. Sin embargo, las ventas comparables en tiendas propias cayeron un 12,3%, con una disminución del 13,8% en el volumen de pedidos.
La compañía mostró avances en la eficiencia operativa con una reducción en los costos de alimentos y embalaje (-3,7 puntos porcentuales), costos laborales (-2,5 puntos porcentuales) y gastos de marketing (-1,5 puntos porcentuales). El negocio de franquicias creció significativamente, aumentando las tiendas franquiciadas de 283 a 446 año tras año.
Tims China (THCH)는 2024년 4분기 재무 실적을 발표하며 혼재된 성과를 보였습니다. 총 매출은 2023년 4분기 대비 12.0% 감소한 3억 3,260만 위안(4,560만 달러)을 기록했습니다. 회사는 4분기에 순 신규 매장 76개 오픈을 달성하며 2024년 말까지 시스템 전체 매장 수를 1,022개로 늘렸습니다.
주요 내용으로는 직영점 기여 마진이 3.9%포인트 개선되어 4.8%를 기록했고, 등록된 로열티 클럽 회원 수는 전년 대비 29.7% 증가한 2,400만 명에 달했습니다. 하지만 직영점의 동일 매장 매출은 12.3% 감소했으며 주문량도 13.8% 줄었습니다.
회사는 식품 및 포장 비용(-3.7%포인트), 인건비(-2.5%포인트), 마케팅 비용(-1.5%포인트) 감소를 통해 운영 효율성 향상을 보였습니다. 프랜차이즈 사업도 크게 성장하여 가맹점 수가 전년 대비 283개에서 446개로 증가했습니다.
Tims China (THCH) a publié ses résultats financiers du quatrième trimestre 2024, montrant une performance mitigée. Le chiffre d'affaires total a diminué de 12,0 % pour atteindre 332,6 millions de RMB (45,6 millions de USD) par rapport au quatrième trimestre 2023. L'entreprise a réalisé 76 ouvertures nettes de nouveaux magasins au quatrième trimestre, portant le nombre total de magasins à 1 022 à la fin de l'année 2024.
Les points clés incluent une amélioration de 3,9 points de pourcentage de la marge de contribution des magasins détenus par l'entreprise, atteignant 4,8 %, ainsi qu'une croissance de 29,7 % en glissement annuel du nombre de membres inscrits au programme de fidélité, qui s'élève à 24,0 millions. Cependant, les ventes comparables dans les magasins détenus par l'entreprise ont diminué de 12,3 %, avec une baisse de 13,8 % du volume des commandes.
L'entreprise a démontré des progrès en matière d'efficacité opérationnelle grâce à une réduction des coûts alimentaires et d'emballage (-3,7 points de pourcentage), des coûts de main-d'œuvre (-2,5 points de pourcentage) et des dépenses marketing (-1,5 point de pourcentage). Le secteur de la franchise s'est considérablement développé, avec une augmentation du nombre de magasins franchisés passant de 283 à 446 d'une année sur l'autre.
Tims China (THCH) meldete die Finanzergebnisse für das vierte Quartal 2024 mit gemischten Ergebnissen. Der Gesamtumsatz sank im Vergleich zum vierten Quartal 2023 um 12,0 % auf 332,6 Millionen RMB (45,6 Millionen USD). Das Unternehmen eröffnete im vierten Quartal 76 netto neue Filialen und erreichte damit zum Jahresende 2024 insgesamt 1.022 Filialen im System.
Wichtige Highlights sind eine Verbesserung der Deckungsbeitragsmarge der eigenen Filialen um 3,9 Prozentpunkte auf 4,8 % sowie ein Anstieg der registrierten Mitglieder des Treueprogramms um 29,7 % auf 24,0 Millionen im Jahresvergleich. Allerdings gingen die Umsätze in den eigenen Filialen bei gleichen Standorten um 12,3 % zurück, begleitet von einem Rückgang des Bestellvolumens um 13,8 %.
Das Unternehmen zeigte Fortschritte bei der operativen Effizienz durch reduzierte Kosten für Lebensmittel und Verpackung (-3,7 Prozentpunkte), Arbeitskosten (-2,5 Prozentpunkte) und Marketingausgaben (-1,5 Prozentpunkte). Das Franchise-Geschäft wuchs deutlich, die Anzahl der Franchise-Filialen stieg von 283 auf 446 im Jahresvergleich.
- Store contribution margin improved by 3.9 percentage points to 4.8%
- Loyalty program grew 29.7% YoY to 24.0 million members
- Franchised stores increased significantly from 283 to 446
- Reduced food and packaging costs by 3.7 percentage points
- Decreased labor costs by 2.5 percentage points
- Total revenues declined 12.0% YoY to RMB332.6 million
- Same-store sales decreased 12.3% for company-owned stores
- Order volume fell 13.8% to 10.0 million in Q4
- Operating loss of RMB117.2 million
- Net loss of RMB132.4 million
Insights
Tims China's Q4 results reflect a company actively restructuring its operating model amid challenging market conditions. The 12.0% revenue decline to RMB332.6 million and negative 12.3% same-store sales for company-owned locations signal persistent demand challenges. However, management's strategic pivot toward franchising is showing promise, with franchised locations growing 57.6% year-over-year to 446 stores.
The most encouraging metric is the 353.1% improvement in company-owned store contribution to RMB13.0 million, with contribution margin expanding by 3.9 percentage points to 4.8%. This stems from significant efficiency gains across key cost categories: food and packaging costs dropped 3.7 percentage points while labor expenses decreased 2.5 percentage points as a percentage of revenue.
Despite these operational improvements, Tims China still posted a net loss of RMB132.4 million, though substantially reduced from RMB311.2 million year-over-year. The company's strategic shift toward a more franchise-heavy model appears to be the right approach, with other revenues (primarily franchise-related) increasing 25.8% while maintaining healthier margins than company-operated stores.
With 24 million loyalty members (up 29.7%) and management's guidance suggesting approaching EBITDA breakeven, Tims China shows potential for stabilization. However, continued same-store sales declines and the 13.8% reduction in order volume indicate the brand still faces fundamental challenges in driving consistent customer traffic.
Tims China's Q4 results reveal a focused effort to overhaul its business model through operational restructuring and cost discipline. The company has executed a targeted store portfolio rationalization by closing underperforming company-owned locations while accelerating franchise development, resulting in 76 net new openings in Q4 alone and bringing the system to 1,022 total locations.
The 3.9 percentage point improvement in company-owned store contribution margin demonstrates that management's efficiency initiatives are gaining traction. The implementation of made-to-order renovations across nearly all company stores represents a strategic pivot toward fresh food preparation, potentially differentiating the brand in China's competitive coffee market.
However, the 12.3% same-store sales decline and 13.8% decrease in order count indicate persistent traffic challenges that efficiency gains alone cannot solve. The reduction in average ticket size, albeit modest at 1.5%, suggests potential pricing pressure or shifts in consumer purchasing behavior.
The loyalty program's 29.7% growth to 24 million members provides a valuable customer database, but the company must convert this digital engagement into physical traffic. With 6,200 sub-franchisee applications received, Tims China has clearly generated interest in its franchise model, which should enable capital-light expansion while improving cash flow. The strategy of emphasizing "Coffee + Freshly Prepared Food" may provide differentiation, but execution will be critical as the company navigates toward its stated goal of corporate EBITDA breakeven.
3.9 Percentage Points Improvement in Company Owned and Operated Store Contribution Margin
76 Net New Store Openings During the Fourth Quarter,
1,022 System-Wide Stores at Year-End 2024
24.0 Million Registered Loyalty Club Members at Year-End,
Representing
SHANGHAI and NEW YORK, April 15, 2025 (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, 2024.
FOURTH QUARTER 2024 HIGHLIGHTS
- Total revenues of RMB332.6 million (USD45.6 million), representing a
12.0% decrease from the same quarter of 2023. - System sales1 of RMB345.7 million (USD47.4 million), representing a
7.9% decrease from the same quarter of 2023. - Net new store openings totaled 76 (12 company owned and operated stores and 64 franchised stores).
- Company owned and operated store contribution2, previously reported as adjusted store EBITDA, was RMB13.0 million (USD1.8 million), representing a
353.1% increase from the same quarter of 2023. - Company owned and operated store contribution margin3, previously reported as adjusted store EBITDA margin, was
4.8% , representing a 3.9 percentage points improvement over the same quarter of 2023.
FULL YEAR 2024 HIGHLIGHTS
- Total revenues were RMB1,391.2 million (USD190.6 million), representing a
10.8% decrease from 2023. - Net new store openings for franchised stores totaled 163 in 2024 (120 system-wide net new store openings, as certain underperforming company owned and operated stores were closed and we focused on sub-franchise development).
- Registered loyalty club members totaled 24.0 million members as of December 31, 2024, representing a
29.7% growth from 2023.
COMPANY MANAGEMENT STATEMENT
Mr. Yongchen Lu, CEO & Director of Tims China, commented, “2024 marked a pivotal year for the Company, we solidified our differentiated strategic positioning in "Coffee + Freshly Prepared Food", completed the made-to-order renovation of almost all company owned and operated stores, surpassed 24 million registered loyalty club members, and received over 6,200 individual sub-franchisee applications by year-end. In Q4 2024, we celebrated the grand opening of the 1,000th Tims China shop in central Shanghai, where the Tims China story began. This achievement is a testament to Tims China’s enduring presence in the region, and to our ambition for further growth.
Amidst macroeconomic volatility and intense market competition, our team demonstrated great resilience and achieved significant profitability improvements through enhanced operational efficiencies, supply chain optimizations, and rigorous cost controls. 2024 full-year company owned and operated store contribution margin and full-year adjusted corporate EBITDA margin improved by 5.3 percentage points, and 9.9 percentage points year-over-year, respectively.”
Mr. Dong (Albert) Li, CFO of Tims China, commented, “We're committed to further improving our financial performance by refining store unit economics and driving efficiencies at both store and corporate levels. Our sub-franchise business also contributed steady cash flows and profitability. During the fourth quarter of 2024, we continued to improve our company owned and operated store contribution margin and adjusted corporate EBITDA margin by 3.9 percentage points and 0.1 percentage points, respectively. Specifically, our food and packaging costs, labor costs (as a percentage of revenues from company owned and operated stores), and our marketing expenses as a percentage of total revenues decreased by 3.7 percentage points, 2.5 percentage points, and 1.5 percentage points, respectively.”
Mr. Li continued, “Looking ahead, and thanks to our team’s tireless work, Tims China is standing at the turning point to achieve full-year corporate EBITDA breakeven. With profitable growth being front and center of everything we do, we are excited to further enhance our supply chain capabilities and efficiencies, roll out our differentiating made-to-order fresh and healthy food preparation model to drive traffic, finesse optimization of overall store unit economics, and accelerate the expansion of our successful sub-franchising.”
FOURTH QUARTER 2024 FINANCIAL RESULTS
Total revenues were RMB332.6 million (USD45.6 million) for the three months ended December 31, 2024, representing a decrease of
- Revenues from Company owned and operated stores were RMB270.2 million (USD37.0 million) for the three months ended December 31, 2024, representing a decrease of
17.7% from RMB328.2 million in the same quarter of 2023. The decrease was primarily attributable to closures of certain underperforming stores and a12.3% decrease in same-store sales growth for company owned and operated stores in the fourth quarter of 2024. The decrease was also attributable to a13.8% decline in the number of orders from 11.6 million in the fourth quarter of 2023 to 10.0 million in the same quarter of 2024, and a1.5% year-over-year decrease in average ticket size. - Other revenues were RMB62.5 million (USD8.6 million) for the three months ended December 31, 2024, representing an increase of
25.8% from RMB49.7 million in the same quarter of 2023. The increase was primarily due to the expansion of our franchise business as the number of our franchised stores increased from 283 as of December 31, 2023 to 446 as of December 31, 2024.
Company owned and operated store costs and expenses were RMB283.9 million (USD38.9 million) for the three months ended December 31, 2024, representing a decrease of
- Food and packaging costs were RMB84.8 million (USD11.6 million) for the three months ended December 31, 2024, representing a decrease of
26.5% from RMB115.3 million in the same quarter of 2023, as we continue to benefit from higher efficiencies in supply chains and cost reduction on raw materials, logistic and warehousing expenses. Accordingly, food and packaging costs as a percentage of revenues from company owned and operated stores decreased by 3.7 percentage points from35.1% in the fourth quarter of 2023 to31.4% in the same quarter of 2024. - Rental and property management fees were RMB56.9 million (USD7.8 million) for the three months ended December 31, 2024, representing a decrease of
16.0% from RMB67.7 million in the same quarter of 2023, mainly due to the closure of certain underperforming stores and in line with the revenue trend. Rental and property management fees as a percentage of revenues from company owned and operated stores increased by 0.4 percentage points from20.6% in the fourth quarter of 2023 to21.0% in the same quarter of 2024. - Payroll and employee benefits expenses were RMB54.9 million (USD7.5 million) for the three months ended December 31, 2024, representing a decrease of
26.7% from RMB74.9 million in the same quarter of 2023. Payroll and employee benefits expenses as a percentage of revenues from company owned and operated stores decreased by 2.5 percentage points from22.8% in the fourth quarter of 2023 to20.3% in the same quarter of 2024, primarily due to the continuous refinement of staffing arrangements and optimization of store managerial efficiency. - Delivery costs were RMB28.6 million (USD3.9 million) for the three months ended December 31, 2024, representing a decrease of
5.6% from RMB30.3 million in the same quarter of 2023, which was in line with the trend of delivery orders. Delivery costs as a percentage of revenues from company owned and operated stores increased by 1.4 percentage points to10.6% in the fourth quarter of 2024 compared to9.2% in the same quarter of 2023. - Other operating expenses were RMB22.7 million (USD3.1 million) for the three months ended December 31, 2024, representing a decrease of
13.8% from RMB26.4 million in the same quarter of 2023, driven by the cost optimization measures and in line with the revenue trend. Other operating expenses as a percentage of revenues from company owned and operated stores increased by 0.4 percentage points to8.4% in the fourth quarter of 2024 compared to8.0% in the same quarter of 2023. - Store depreciation and amortization expenses were RMB36.1 million (USD4.9 million), representing an increase of
3.2% from RMB35.0 million in the same quarter of 2023, which was attributable to the accelerated amortization of upfront unit fees in relation to the closure of certain underperforming stores; offset by the decrease in the number of company owned and operated stores from 619 as of December 31, 2023 to 576 as of December 31, 2024. Store depreciation and amortization as a percentage of revenues from company owned and operated stores increased by 2.8 percentage points to13.4% in the fourth quarter of 2024 compared to10.6% in the same quarter of 2023.
Costs of other revenues were RMB48.5 million (USD6.6 million) for the three months ended December 31, 2024, representing a decrease of
Marketing expenses were RMB13.8 million (USD1.9 million) for the three months ended December 31, 2024, representing a decrease of
General and administrative expenses were RMB76.3 million (USD10.5 million) for the three months ended December 31, 2024, representing an increase of
Franchise and royalty expenses were RMB14.0 million (USD1.9 million) for the three months ended December 31, 2024, representing a decrease of
Impairment losses of long-lived assets were RMB15.9 million (USD2.2 million) for the three months ended December 31, 2024, compared to RMB 89.6 million in the same quarter of 2023, which was primarily due to the decrease in the number of closures of underperforming company owned and operated stores.
As a result of the foregoing, operating loss was RMB117.2 million (USD16.1 million) for the three months ended December 31, 2024, a significant reduction compared to RMB218.4 million in the same quarter of 2023.
Adjusted Corporate EBITDA was a loss of RMB49.4 million (USD6.8 million) for the three months ended December 31, 2024, compared to a loss of RMB56.7 million in the same quarter of 2023. Adjusted Corporate EBITDA margin was negative
Net loss from continuing operations was RMB138.9 million (USD19.0 million) for the three months ended December 31, 2024, compared to RMB297.4 million for the same quarter of 2023. Adjusted net loss was RMB98.0 million (USD13.4 million) for the three months ended December 31, 2024, compared to RMB120.3 million for the same quarter of 2023. Adjusted net loss margin was negative
Net gain from discontinued operations was RMB6.5 million (USD0.9 million) for the three months ended December 31, 2024, compared to net loss of RMB13.8 million for the same quarter of 2023.
Net loss was RMB132.4 million (USD18.1 million) for the three months ended December 31, 2024, compared to RMB311.2 million for the same quarter of 2023.
Basic and diluted net loss per ordinary share was RMB4.05 (USD0.55) in the fourth quarter of 2024, compared to RMB9.71 in the same quarter of 2023. Adjusted basic and diluted net loss per ordinary share was RMB2.99 (USD0.41) in the fourth quarter of 2024, compared to RMB3.78 in the same quarter of 2023.
Liquidity
As of December 31, 2024, the Company’s total cash and cash equivalents, restricted cash and time deposits were RMB184.2 million (USD25.2 million), compared to RMB219.5 million as of December 31, 2023. The change was primarily attributable to the financing from our founding shareholders, partially offset by cash disbursements on the back of the expansion of our business and store network nationwide and the repayment of certain bank borrowings.
KEY OPERATING DATA
| Tims only | For the three months ended or as of | ||||||||
| （Exclude the discontinued business) | Dec 31, | Mar 31, | Jun 30, | Sep 30, | Dec 31, | ||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| Total stores | 902 | 906 | 907 | 946 | 1,022 | ||||
| Company owned and operated stores | 619 | 604 | 574 | 564 | 576 | ||||
| Franchised stores | 283 | 302 | 333 | 382 | 446 | ||||
| Same-store sales growth for system-wide stores | - | - | - | - | |||||
| Same-store sales growth for company owned and operated stores | - | - | - | - | |||||
| Registered loyalty club members (in thousands) | 18,545 | 20,009 | 21,403 | 22,815 | 24,045 | ||||
| Company owned and operated store contribution (Renminbi in thousands) | 2,863 | 2,289 | 32,429 | 39,922 | 12,973 | ||||
| Company owned and operated store contribution margin | |||||||||
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”), and professional fees related to warrant exchange and other financing programs.
- 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, and professional fees related to warrant exchange and other financing programs.
- 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, 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
On November 26, 2024, Tims China launched its inaugural "Timsgiving" pay-it-forward campaign across all its stores in China, marking the first time this Canadian tradition was introduced in the country. The campaign ran from November 26 to 28 and offered the first customer at each store a free beverage from the Double Series, encouraging them to pay-it-forward by purchasing a drink for the next guest. Over 1,500 people participated, with the longest chain of kindness reaching 30 customers in a row.
On January 13, 2025, Tims China completed the implementation of a 1-for-5 reverse stock split of the Company’s ordinary shares. The reverse stock split was previously approved by the Company’s shareholders on December 20, 2024 and board of directors on December 23, 2024.
On January 28, 2025, Tims China announced that the Company received a notification letter from the Nasdaq Listing Qualifications Department of the Nasdaq Stock Market Inc., informing the Company that it has regained compliance with the “Minimum Bid Price Requirement” pursuant to Nasdaq Listing Rule 5550(a)(1). Therefore, the Company’ ordinary shares are no longer subject to delisting.
On February 18, 2025, Tims China launched its "Light Bagel Sandwich Lunch Box Series", reinforcing its commitment to providing high-quality, convenient coffee and warm, healthy food experiences. This new lunch offering, featuring a combination of a bagel sandwich, salad, and coffee, is designated to cater the needs of urban consumers seeking convenient and healthy meal options. It also aligns with the growing demand for healthy Western-style lunches.
On February 26, 2025, Tims China celebrated its sixth anniversary and global coffee chain Tim Hortons’ 61st anniversary by releasing several beloved classics with exciting new twists. Among these, the classic donuts made a huge return with Chinese “Double-Double” upgrade, offering Chinese consumers a special anniversary treat.
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, and professional fees related to warrant exchange and other financing programs; (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, and professional fees related to warrant exchange and other financing programs; (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, 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 RMB7.2993 to USD1.00, the exchange rate in effect on December 31, 2024 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 15, 2025, at 8:00 am Eastern Time (on Tuesday, April 15, 2025, 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://s1.c-conf.com/diamondpass/10046826-m38kfp.html
Participants may also view the live webcast by registering through below weblink:
https://edge.media-server.com/mmc/p/n2xgnen5
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) (NYSE: 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
Gemma Bakx
IR@timschina.com, or gemma.bakx@cartesiangroup.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$, except for number of shares) | |||||||||
| As of | |||||||||
| December 31, 2023 | December 31, 2024 (Unaudited） | ||||||||
| RMB | RMB | US$ | |||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | 202,315 | 152,368 | 20,874 | ||||||
| Restricted Cash | - | 31,869 | 4,366 | ||||||
| Time deposits | 17,165 | - | - | ||||||
| Amount due from related parties | - | 5,858 | 802 | ||||||
| Accounts receivable, net | 27,562 | 30,526 | 4,182 | ||||||
| Inventories | 49,866 | 37,578 | 5,148 | ||||||
| Prepaid expenses and other current assets | 156,855 | 158,882 | 21,768 | ||||||
| Current assets of discontinued operations | 4,857 | - | - | ||||||
| Total current assets | 458,620 | 417,081 | 57,140 | ||||||
| Non-current assets: | |||||||||
| Property and equipment, net | 665,992 | 502,159 | 68,795 | ||||||
| Intangible assets, net | 110,966 | 97,019 | 13,292 | ||||||
| Operating lease right-of-use assets | 785,437 | 493,308 | 67,583 | ||||||
| Other non-current assets | 63,855 | 53,967 | 7,393 | ||||||
| Noncurrent assets of discontinued operations | 130,569 | - | - | ||||||
| Total non-current assets | 1,756,819 | 1,146,453 | 157,063 | ||||||
| Total assets | 2,215,439 | 1,563,534 | 214,203 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Bank borrowings, current | 538,233 | 381,263 | 52,233 | ||||||
| Accounts payable | 219,775 | 223,838 | 30,666 | ||||||
| Contract liabilities | 40,715 | 39,678 | 5,436 | ||||||
| Amount due to related parties | 52,002 | 48,117 | 6,592 | ||||||
| Convertible notes, at fair value | - | 473,716 | 64,899 | ||||||
| Operating lease liabilities | 189,835 | 178,115 | 24,402 | ||||||
| Other current liabilities | 291,715 | 191,205 | 26,194 | ||||||
| Current liabilities of discontinued operations | 63,558 | - | - | ||||||
| Total current liabilities | 1,395,833 | 1,535,932 | 210,422 | ||||||
| Non-current liabilities: | |||||||||
| Bank borrowings, non-current | 5,266 | - | - | ||||||
| Convertible notes, at fair value | 420,712 | 464,847 | 63,684 | ||||||
| Contract liabilities | 5,272 | 8,022 | 1,099 | ||||||
| Amount due to related parties | 94,200 | - | - | ||||||
| Operating lease liabilities | 653,659 | 380,075 | 52,070 | ||||||
| Other non-current liabilities | 8,637 | 7,673 | 1,051 | ||||||
| Noncurrent liabilities of discontinued operations | 54,289 | - | - | ||||||
| Total non-current liabilities | 1,242,035 | 860,617 | 117,904 | ||||||
| Total liabilities | 2,637,868 | 2,396,549 | 328,326 | ||||||
| Shareholders’ equity: | |||||||||
| Ordinary shares | 10 | 10 | 1 | ||||||
| Additional paid-in capital | 1,807,715 | 1,818,421 | 249,123 | ||||||
| Accumulated losses | (2,256,424 | ) | (2,668,505 | ) | (365,584 | ) | |||
| Accumulated other comprehensive income | 21,492 | 9,185 | 1,258 | ||||||
| Treasury shares | - | - | - | ||||||
| Total (deficit) equity attributable to shareholders of the Company | (427,207 | ) | (840,889 | ) | (115,202 | ) | |||
| Non-controlling interests | 4,778 | 7,874 | 1,079 | ||||||
| Total shareholders’ (deficit) equity | (422,429 | ) | (833,015 | ) | (114,123 | ) | |||
| Commitments and Contingencies | - | - | - | ||||||
| Total liabilities and shareholders’ equity (deficit) | 2,215,439 | 1,563,534 | 214,203 | ||||||
| TH INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) | ||||||||||||||||||
| (Amounts in thousands of RMB and US$, except for per share data) | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Revenues: | ||||||||||||||||||
| Company owned and operated stores | 328,242 | 270,152 | 37,010 | 1,389,641 | 1,188,293 | 162,796 | ||||||||||||
| Other revenues | 49,656 | 62,473 | 8,559 | 170,365 | 202,865 | 27,792 | ||||||||||||
| Total revenues | 377,898 | 332,625 | 45,569 | 1,560,006 | 1,391,158 | 190,588 | ||||||||||||
| Costs and expenses, net: | ||||||||||||||||||
| Company owned and operated stores | ||||||||||||||||||
| Food and packaging | 115,340 | 84,797 | 11,617 | 486,359 | 374,086 | 51,250 | ||||||||||||
| Rental and property management fee | 67,712 | 56,854 | 7,789 | 289,556 | 241,425 | 33,075 | ||||||||||||
| Payroll and employee benefits | 74,868 | 54,880 | 7,519 | 304,545 | 231,542 | 31,721 | ||||||||||||
| Delivery costs | 30,291 | 28,584 | 3,916 | 116,449 | 119,171 | 16,326 | ||||||||||||
| Other operating expenses | 26,400 | 22,745 | 3,116 | 118,634 | 95,036 | 13,020 | ||||||||||||
| Store depreciation and amortization | 34,953 | 36,074 | 4,942 | 138,735 | 129,614 | 17,757 | ||||||||||||
| Company owned and operated store costs and expenses | 349,564 | 283,934 | 38,899 | 1,454,278 | 1,190,874 | 163,149 | ||||||||||||
| Costs of other revenues | 50,886 | 48,532 | 6,649 | 149,692 | 153,612 | 21,045 | ||||||||||||
| Marketing expenses | 21,169 | 13,764 | 1,886 | 96,679 | 64,849 | 8,885 | ||||||||||||
| General and administrative expenses | 61,662 | 76,321 | 10,455 | 325,259 | 210,323 | 28,814 | ||||||||||||
| Franchise and royalty expenses | 15,103 | 13,952 | 1,911 | 57,063 | 57,761 | 7,913 | ||||||||||||
| Other operating costs and expenses | 8,968 | 315 | 43 | 28,872 | 10,794 | 1,479 | ||||||||||||
| Loss on disposal of property and equipment | 2,624 | 431 | 59 | 16,404 | 4,147 | 568 | ||||||||||||
| Impairment losses of long-lived assets | 89,635 | 15,901 | 2,178 | 111,427 | 56,287 | 7,711 | ||||||||||||
| Other income | 3,311 | 3,338 | 457 | 11,743 | 8,408 | 1,152 | ||||||||||||
| Total costs and expenses, net | 596,300 | 449,812 | 61,623 | 2,227,931 | 1,740,239 | 238,412 | ||||||||||||
| Operating loss | (218,402 | ) | (117,187 | ) | (16,054 | ) | (667,925 | ) | (349,081 | ) | (47,824 | ) | ||||||
| Interest income | 3,200 | 982 | 135 | 14,183 | 3,203 | 439 | ||||||||||||
| Interest expenses | (6,659 | ) | (3,706 | ) | (509 | ) | (20,420 | ) | (22,448 | ) | (3,075 | ) | ||||||
| Foreign currency transaction loss | (16,158 | ) | (933 | ) | (127 | ) | (16,772 | ) | 3,484 | 477 | ||||||||
| Loss of the debt extinguishment | - | - | - | - | (10,657 | ) | (1,460 | ) | ||||||||||
| Changes in fair value of Deferred Contingent consideration | (32,437 | ) | - | - | (26,106 | ) | (16,941 | ) | (2,321 | ) | ||||||||
| Changes in fair value of convertible notes | (26,909 | ) | (17,413 | ) | (2,386 | ) | (58,281 | ) | (65,874 | ) | (9,025 | ) | ||||||
| Changes in fair value of warrant liabilities | - | - | - | (83,966 | ) | - | - | |||||||||||
| Changes in fair value of ESA derivative liabilities | 60 | - | - | 19,654 | - | - | ||||||||||||
| Loss from continuing operations before income taxes | (297,305 | ) | (138,257 | ) | (18,941 | ) | (839,633 | ) | (458,314 | ) | (62,789 | ) | ||||||
| Income tax expenses | (97 | ) | (616 | ) | (84 | ) | (97 | ) | (2,115 | ) | (290 | ) | ||||||
| Net loss from continuing operations | (297,402 | ) | (138,873 | ) | (19,025 | ) | (839,730 | ) | (460,429 | ) | (63,079 | ) | ||||||
| Discontinued operations： | ||||||||||||||||||
| Income/(loss) from discontinued operations（including gain on disposal of Popeyes business RMB70,665 thousand in 2024) before income taxes | (13,757 | ) | 6,485 | 888 | (33,196 | ) | 51,444 | 7,048 | ||||||||||
| Income tax expenses | - | - | - | - | - | - | ||||||||||||
| Net income/(loss) from discontinued operations | (13,757 | ) | 6,485 | 888 | (33,196 | ) | 51,444 | 7,048 | ||||||||||
| Net loss | (311,159 | ) | (132,388 | ) | (18,137 | ) | (872,926 | ) | (408,985 | ) | (56,031 | ) | ||||||
| Less: Net (income) loss attributable to non-controlling interests | 925 | (830 | ) | (114 | ) | 3,324 | 3,096 | 424 | ||||||||||
| Net Loss attributable to shareholders of the Company | ||||||||||||||||||
| -from continuing operations | (298,327 | ) | (138,043 | ) | (18,911 | ) | (843,054 | ) | (463,525 | ) | (63,503 | ) | ||||||
| -from discontinued operations | (13,757 | ) | 6,485 | 888 | (33,196 | ) | 51,444 | 7,048 | ||||||||||
| Basic and diluted loss per Ordinary Share | (9.71 | ) | (4.05 | ) | (0.55 | ) | (28.41 | ) | (12.70 | ) | (1.74 | ) | ||||||
| Net loss | (311,159 | ) | (132,388 | ) | (18,137 | ) | (872,926 | ) | (408,985 | ) | (56,031 | ) | ||||||
| Other comprehensive income (loss) | ||||||||||||||||||
| Unrealized gain on short-term investment, net of nil income taxes | - | - | - | 3,585 | - | - | ||||||||||||
| Fair value changes of convertible notes due to instrument-specific credit risk, net of nil income taxes | 7,731 | (1,282 | ) | (176 | ) | (2,117 | ) | (1,495 | ) | (205 | ) | |||||||
| Amounts reclassified from accumulated other comprehensive income | - | - | - | (5,719 | ) | - | - | |||||||||||
| Foreign currency translation adjustment, net of nil income taxes | 13,098 | (16,577 | ) | (2,271 | ) | 8,742 | (10,812 | ) | (1,481 | ) | ||||||||
| Total comprehensive loss | (290,330 | ) | (150,247 | ) | (20,584 | ) | (868,435 | ) | (421,292 | ) | (57,717 | ) | ||||||
| Less: Comprehensive loss attributable to non- controlling interests | 925 | (830 | ) | (114 | ) | 3,324 | 3,096 | 424 | ||||||||||
| Comprehensive loss attributable to shareholders of the Company | (291,255 | ) | (149,417 | ) | (20,470 | ) | (871,759 | ) | (424,388 | ) | (58,141 | ) | ||||||
| TH INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (Amounts in thousands of RMB and US$) | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Net cash provided by/(used in) operating activities | (80,565 | ) | (31,629 | ) | (4,333 | ) | (196,130 | ) | (39,667 | ) | (5,434 | ) | ||||||
| Net cash provided by/(used in) investing activities | (67,939 | ) | 13,222 | 1,811 | 59,999 | (8,037 | ) | (1,101 | ) | |||||||||
| Net cash provided by/(used in) financing activities | (119,602 | ) | 9,800 | 1,343 | 80,833 | 26,004 | 3,563 | |||||||||||
| Effect of foreign currency exchange rate changes on cash | 9,938 | (3,891 | ) | (533 | ) | 19,808 | 2,350 | 322 | ||||||||||
| Net increase/(decrease) in cash | (258,168 | ) | (12,498 | ) | (1,712 | ) | (35,490 | ) | (19,350 | ) | (2,651 | ) | ||||||
| Cash at beginning of the period | 461,755 | 196,734 | 26,952 | 239,077 | 203,587 | 27,891 | ||||||||||||
| Cash and cash equivalents and restricted cash, at end of year | 203,587 | 184,236 | 25,240 | 203,587 | 184,237 | 25,240 | ||||||||||||
| Less: Cash and restricted cash of discontinued operations at end of year | (1,272 | ) | - | - | (1,272 | ) | - | - | ||||||||||
| Cash and Restricted cash at end of the period | 202,315 | 184,237 | 25,240 | 202,315 | 184,237 | 25,240 | ||||||||||||
| 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$, except for number of shares and per share data) | ||||||||||||||||||
| A. Company owned and operated store contribution | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Revenues - company owned and operated stores | 328,242 | 270,152 | 37,010 | 1,389,641 | 1,188,293 | 162,796 | ||||||||||||
| Food and packaging costs - company owned and operated stores | (115,340 | ) | (84,797 | ) | (11,617 | ) | (486,359 | ) | (374,086 | ) | (51,250 | ) | ||||||
| Rental expenses - company owned and operated stores | (67,712 | ) | (56,854 | ) | (7,789 | ) | (289,556 | ) | (241,425 | ) | (33,075 | ) | ||||||
| Payroll and employee benefits - company owned and operated stores | (74,868 | ) | (54,880 | ) | (7,519 | ) | (304,545 | ) | (231,542 | ) | (31,721 | ) | ||||||
| Delivery costs - company owned and operated stores | (30,291 | ) | (28,584 | ) | (3,916 | ) | (116,449 | ) | (119,171 | ) | (16,326 | ) | ||||||
| Other operating expenses - company owned and operated stores | (26,400 | ) | (22,745 | ) | (3,116 | ) | (118,634 | ) | (95,036 | ) | (13,020 | ) | ||||||
| Store depreciation and amortization | (34,953 | ) | (36,074 | ) | (4,942 | ) | (138,735 | ) | (129,614 | ) | (17,757 | ) | ||||||
| Franchise and royalty expenses - company owned and operated stores | (10,768 | ) | (9,319 | ) | (1,277 | ) | (44,730 | ) | (39,420 | ) | (5,401 | ) | ||||||
| Fully-burdened gross (loss) profit - company owned and operated stores | (32,090 | ) | (23,101 | ) | (3,166 | ) | (109,367 | ) | (42,001 | ) | (5,754 | ) | ||||||
| Store depreciation and amortization | 34,953 | 36,074 | 4,942 | 138,735 | 129,614 | 17,757 | ||||||||||||
| Company owned and operated store contribution | 2,863 | 12,973 | 1,776 | 29,368 | 87,613 | 12,003 | ||||||||||||
| Company owned and operated store contribution margin | ||||||||||||||||||
| B. Adjusted general and administrative expenses | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| General and administrative expenses from continuing operations | (61,662 | ) | (76,321 | ) | (10,455 | ) | (325,259 | ) | (210,323 | ) | (28,814 | ) | ||||||
| Adjusted for: | ||||||||||||||||||
| Share-based compensation expenses | 6,351 | (741 | ) | (102 | ) | 68,078 | 519 | 71 | ||||||||||
| Professional fees related to financing programs | 678 | - | - | 28,519 | 10,464 | 1,434 | ||||||||||||
| Impairment losses of rental deposits | 12,471 | - | - | 12,471 | 2,457 | 337 | ||||||||||||
| Adjusted General and administrative expenses | (42,162 | ) | (77,062 | ) | (10,557 | ) | (216,191 | ) | (196,883 | ) | (26,972 | ) | ||||||
| Adjusted General and administrative expenses as a % of total revenue | ||||||||||||||||||
| C. Adjusted corporate EBITDA and adjusted corporate EBITDA margin | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Operating loss from continuing operations | (218,402 | ) | (117,187 | ) | (16,054 | ) | (667,925 | ) | (349,081 | ) | (47,824 | ) | ||||||
| Adjusted for: | ||||||||||||||||||
| Depreciation and amortization | 43,959 | 44,243 | 6,061 | 163,155 | 167,721 | 22,978 | ||||||||||||
| Share-based compensation expenses | 6,351 | (741 | ) | (102 | ) | 68,078 | 519 | 71 | ||||||||||
| Impairment losses of rental deposits | 12,471 | - | - | 12,471 | 2,457 | 337 | ||||||||||||
| One-off expense of store closure | 6,009 | 7,909 | 1,084 | 6,009 | 11,090 | 1,519 | ||||||||||||
| Professional fees related to financing programs | 678 | - | - | 28,519 | 10,464 | 1,434 | ||||||||||||
| Impairment losses of long-lived assets | 89,635 | 15,901 | 2,178 | 111,427 | 56,287 | 7,711 | ||||||||||||
| Loss on disposal of property and equipment | 2,624 | 431 | 59 | 16,404 | 4,147 | 568 | ||||||||||||
| Adjusted Corporate EBITDA | (56,675 | ) | (49,444 | ) | (6,774 | ) | (261,862 | ) | (96,396 | ) | (13,206 | ) | ||||||
| Adjusted Corporate EBITDA Margin | - | - | - | - | - | - | ||||||||||||
| D. Adjusted net loss and adjusted net loss margin | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Net loss from continuing operations | (297,402 | ) | (138,873 | ) | (19,025 | ) | (839,730 | ) | (460,429 | ) | (63,079 | ) | ||||||
| Adjusted for: | ||||||||||||||||||
| Share-based compensation expenses | 6,351 | (741 | ) | (102 | ) | 68,078 | 519 | 71 | ||||||||||
| Professional fees related to financing programs | 678 | - | - | 28,519 | 10,464 | 1,434 | ||||||||||||
| Impairment losses of long-lived assets | 89,635 | 15,901 | 2,178 | 111,427 | 56,287 | 7,711 | ||||||||||||
| Impairment losses of rental deposits | 12,471 | - | - | 12,471 | 2,457 | 337 | ||||||||||||
| One-off expense of store closure | 6,009 | 7,909 | 1,084 | 6,009 | 11,090 | 1,519 | ||||||||||||
| Loss on disposal of property and equipment | 2,624 | 431 | 59 | 16,404 | 4,147 | 568 | ||||||||||||
| Loss of the debt extinguishment | - | - | - | - | 10,657 | 1,460 | ||||||||||||
| Changes in fair value of Deferred Contingent consideration | 32,437 | - | - | 26,106 | 16,941 | 2,321 | ||||||||||||
| Changes in fair value of convertible notes | 26,909 | 17,413 | 2,386 | 58,281 | 65,874 | 9,025 | ||||||||||||
| Changes in fair value of warrant liabilities | - | - | - | 83,966 | - | - | ||||||||||||
| Changes in fair value of ESA derivative liabilities | (60 | ) | - | - | (19,654 | ) | - | - | ||||||||||
| Adjusted Net loss | (120,348 | ) | (97,960 | ) | (13,420 | ) | (448,123 | ) | (281,993 | ) | (38,633 | ) | ||||||
| Adjusted Net loss Margin | - | - | - | - | - | - | ||||||||||||
| E. Adjusted basic and diluted net loss per Ordinary Share | ||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Net loss from continuing operations to shareholders of the Company | (298,326 | ) | (138,043 | ) | (18,911 | ) | (843,054 | ) | (463,525 | ) | (63,503 | ) | ||||||
| Adjusted for: | ||||||||||||||||||
| Share-based compensation expenses | 6,351 | (741 | ) | (102 | ) | 68,078 | 519 | 71 | ||||||||||
| Professional fees related to financing programs | 678 | - | - | 28,519 | 10,464 | 1,434 | ||||||||||||
| Impairment losses of long-lived assets | 89,635 | 15,901 | 2,178 | 111,427 | 56,287 | 7,711 | ||||||||||||
| Impairment losses of rental deposits | 12,471 | - | - | 12,471 | 2,457 | 337 | ||||||||||||
| One-off expense of store closure | 6,009 | 7,909 | 1,084 | 6,009 | 11,090 | 1,519 | ||||||||||||
| Loss on disposal of property and equipment | 2,624 | 431 | 59 | 16,404 | 4,147 | 568 | ||||||||||||
| Loss of the debt extinguishment | - | - | - | - | 10,657 | 1,460 | ||||||||||||
| Changes in fair value of Deferred Contingent consideration | 32,437 | - | - | 26,106 | 16,941 | 2,321 | ||||||||||||
| Changes in fair value of convertible notes | 26,909 | 17,413 | 2,386 | 58,281 | 65,874 | 9,025 | ||||||||||||
| Changes in fair value of warrant liabilities | - | - | - | 83,966 | - | - | ||||||||||||
| Changes in fair value of ESA derivative liabilities | (60 | ) | - | - | (19,654 | ) | - | - | ||||||||||
| Adjusted Net loss attributable to shareholders of the Company | (121,272 | ) | (97,130 | ) | (13,306 | ) | (451,447 | ) | (285,089 | ) | (39,057 | ) | ||||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | 32,124,164 | 32,494,265 | 32,494,265 | 30,848,340 | 32,444,772 | 32,444,772 | ||||||||||||
| Adjusted basic and diluted net loss per Ordinary Share | (3.78 | ) | (2.99 | ) | (0.41 | ) | (14.63 | ) | (8.79 | ) | (1.20 | ) | ||||||
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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 RMB23.1 million (USD3.2 million) for the three months ended December 31, 2024, compared to a loss of RMB32.1 million in the same quarter of 2023.
FAQ
What was Tims China's (THCH) revenue performance in Q4 2024?
How many stores did Tims China (THCH) add in Q4 2024?
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