Tims China Announces Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Tims China (Nasdaq: THCH) reported fourth-quarter and full-year 2025 results on April 14, 2026. Q4 total revenues were RMB308.5M (down 7.3% YoY); system sales grew 4.0% YoY to RMB359.4M. Full‑year revenues were RMB1,316.2M (down 5.4% YoY). Net new store openings were 17 in Q4 and 25 for 2025; system‑wide stores reached 1,047. Registered loyalty members reached 31.0M (up 29.0% YoY). Q4 operating loss was RMB118.6M; net loss from continuing operations was RMB227.2M. Adjusted Corporate EBITDA loss narrowed to RMB35.4M in Q4.
AI-generated analysis. Not financial advice.
Positive
- System sales +4.0% YoY to RMB359.4 million in Q4 2025
- Registered loyalty members +29.0% YoY to 31.0 million at year‑end
- Adjusted Corporate EBITDA loss narrowed from RMB49.4M to RMB35.4M in Q4
- Full‑year store net openings of 25, reaching 1,047 system‑wide stores
Negative
- Total revenues down 7.3% YoY in Q4 to RMB308.5 million
- Q4 net loss from continuing operations widened to RMB227.2 million
- Company owned store contribution margin fell to 3.7% in Q4 from 4.8%
- Impairment losses increased to RMB31.2 million in Q4 due to planned closures
News Market Reaction – THCH
On the day this news was published, THCH declined 4.17%, reflecting a moderate negative market reaction. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $71.14M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Restaurant peers are mixed: GENK up 2.68%, STKS down 1.75%, RRGB down 1.77%, TWNP down 25.16%, DENN flat. With THCH up 6.4% and only one peer in the momentum scanner, the move looks stock‑specific rather than sector‑wide.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Q3 2025 earnings | Neutral | -4.2% | Revenues slightly down but system sales up double digits and financing actions. |
| Aug 26 | Q2 2025 earnings | Neutral | +3.6% | System sales growth with revenue decline and modest positive adjusted EBITDA. |
| Jun 24 | Q1 2025 earnings | Positive | +2.5% | System sales growth and a strong improvement in store contribution margin. |
| Apr 15 | Q4 2024 earnings | Positive | +11.7% | Store contribution margin gains, rapid franchising and loyalty growth. |
| Nov 12 | Q3 2024 earnings | Negative | -3.7% | Sharp revenue and system sales declines despite positive adjusted EBITDA. |
Earnings releases have produced an average move of about 1.99%, with market reactions generally aligned to the mixed fundamentals and efficiency focus.
Over the past five earnings cycles, Tims China has repeatedly reported declining total revenues but improving store‑level efficiency and growing loyalty membership. Q3 and Q2 2025 highlighted system sales growth despite revenue pressure, while Q1 and Q4 2024 emphasized margin gains and network expansion. Market reactions ranged from a 11.69% rise to a 4.15% drop, averaging 1.99%. Today’s Q4/FY 2025 release continues the pattern of softer revenues with selective operational improvements and loyalty growth.
Historical Comparison
In the last five earnings releases, THCH moved an average of 1.99%. Today’s 6.4% move on Q4/FY 2025 results is larger than typical but still within a historically reasonable range for this name.
Recent earnings reports show a consistent pattern: pressure on total revenues alongside improving store economics, growing loyalty members, and a gradual shift toward higher system sales quality.
Regulatory & Risk Context
An effective Form F-3 shelf filed on 2026-03-27 registers up to 82,107,312 ordinary shares and an aggregate $30,000,000 shelf amount, with 0 recorded usages so far. The prospectus allows the company to issue various securities over time, while sales by selling shareholders would not provide proceeds to the company.
Market Pulse Summary
This announcement details Q4 and full‑year 2025 earnings, highlighting declining total revenues but improving cost ratios, ongoing store portfolio optimization, and loyalty membership reaching 31.0M. Historically, earnings updates have produced an average move of 1.99%, with markets weighing growth against losses. Investors may focus on the pace of revenue stabilization, store contribution trends, and how the newly effective $30,000,000 shelf and existing losses intersect with future financing and expansion plans.
Key Terms
same-store sales growth financial
net new store openings financial
system sales financial
company owned and operated store contribution financial
company owned and operated store contribution margin financial
adjusted general and administrative expenses financial
adjusted corporate EBITDA financial
adjusted net loss financial
AI-generated analysis. Not financial advice.
System Sales Increased
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
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 to4.8% 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
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
- 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 a1.4% decline in same-store sales growth for company owned and operated stores in the fourth quarter of 2025. The decrease was also attributable to an8.4% year-over-year decrease in average ticket size, partially offset by a3.0% 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
- 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 from31.4% in the fourth quarter of 2024 to29.4% 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 from21.0% in the fourth quarter of 2024 to21.2% 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 at20.3% 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 the29.2% 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 to13.3% in the fourth quarter of 2025, compared to10.6% 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 from51.8% in Q4 2024 to65.6% 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 to8.7% in the fourth quarter of 2025, compared to8.4% 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 to10.5% in the fourth quarter of 2025, compared to13.4% 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
Marketing expenses were RMB16.3 million (USD2.3 million) for the three months ended December 31, 2025, representing an increase of
General and administrative expenses were RMB63.0 million (USD9.0 million) for the three months ended December 31, 2025, representing a decrease of
Franchise and royalty expenses were RMB15.4 million (USD2.2 million) for the three months ended December 31, 2025, representing an increase of
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
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
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.
Liquidity
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) (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
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$) | |||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | 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$, except for number of shares and per share data) | |||||||||||||||||||||||||||||||
| A. Company owned and operated store contribution | |||||||||||||||||||||||||||||||
| For the three months ended December 31, | For the year ended December 31, | ||||||||||||||||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||||||||||||||||
| RMB | % of Revenues - company owned and operated stores | RMB | US$ | % of Revenues - company owned and operated stores | RMB | % of Revenues - company owned and operated stores | RMB | US$ | % of Revenues - company owned and 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 | ||||||||||||||||||||||||||||
| RMB | % of Total Revenues | RMB | US$ | % of Total Revenues | RMB | % of Total 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 | ||||||||||||||||||||||||||||
| RMB | % of Total Revenues | RMB | US$ | % of Total Revenues | RMB | % of Total 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 | ||||||||||||||||||||||||||||
| RMB | % of Total Revenues | RMB | US$ | % of Total Revenues | RMB | % of Total 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 | ||||||||||||||||||||||||||||
| RMB | Unadjusted and Adjusted Basic and diluted loss per Ordinary Share | RMB | US$ | Unadjusted and Adjusted Basic and diluted loss per Ordinary Share | RMB | Unadjusted and Adjusted Basic and diluted loss per Ordinary Share | RMB | US$ | Unadjusted and Adjusted Basic and diluted loss per 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 | ) | |||||||||||||||||||
