Tims China Announces Third Quarter 2025 Financial Results
Rhea-AI Summary
Tims China (Nasdaq: THCH) reported third quarter 2025 results: total revenues RMB358.0M (USD50.3M), down 0.4% year‑over‑year, while system sales rose 12.8% to RMB419.9M (USD59.0M). The company opened a net 15 new stores in Q3 and delivered company same‑store sales +3.3%. Registered loyalty club members reached 27.9M (+22.3% YoY). Operating loss was RMB65.7M and net loss was RMB73.8M for the quarter. Management completed financing actions, including issuance of approximately US$89.9M senior secured convertible notes due 2029, and repurchased/ restructured prior convertible notes.
Positive
- System sales +12.8% YoY to RMB419.9 million
- Same‑store sales for company stores +3.3% in Q3 2025
- Registered loyalty members 27.9 million, +22.3% YoY
- Completed ~US$89.9M senior secured convertible notes issuance
Negative
- Operating loss of RMB65.7 million in Q3 2025
- Net loss of RMB73.8 million in Q3 2025
- Adjusted net loss margin negative 15.0% in Q3 2025
- Company store contribution margin declined to 7.7% from 13.3%
Key Figures
Market Reality Check
Peers on Argus
Restaurant peers show mixed moves, with several declines (e.g., STKS -6.12%, GENK -4.96%) and TWNP up 8.82%. No clear sector-wide pattern explains THCH’s price/volume setup.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 03 | Sustainability product launch | Positive | -1.5% | Eco-friendly straw launch using captured CO₂ across major city stores. |
| Nov 11 | Earnings call scheduling | Neutral | +1.9% | Announcement of Q3 2025 results date and conference call details. |
| Oct 31 | Financing transaction | Neutral | +0.6% | Agreement to issue US$89.9M senior secured convertible notes and amend others. |
| Aug 26 | Q2 2025 earnings | Neutral | +3.6% | Mixed Q2 with system sales growth, revenue decline, and small EBITDA profit. |
| Aug 18 | Earnings call scheduling | Neutral | -0.8% | Set date and call details for Q2 2025 financial results release. |
Recent earnings reports have been characterized as mixed, yet the stock often posted modest positive moves, while a clearly positive ESG-style product launch saw a slight negative reaction.
Over the last six months, Tims China has reported several quarters of mixed financial performance: system sales growth but revenue pressure and persistent losses, as seen in Q1 and Q2 2025. Earnings announcements on Apr 15, Jun 24, and Aug 26 generally coincided with positive single‑day price moves. The October 2025 convertible notes deal and the December eco‑friendly straw launch further highlighted strategic financing and sustainability initiatives. Today’s Q3 2025 results extend themes of growing system sales, store mix shifts, and ongoing profitability challenges.
Market Pulse Summary
This announcement shows Tims China delivering Q3 2025 system sales of RMB419.9M, up 12.8%, and returning to positive same‑store sales growth of 3.3% for company‑owned stores. However, total revenues slipped 0.4% and operating loss widened to RMB65.7M, with adjusted Corporate EBITDA turning to a RMB15.0M loss. Earlier in 2025, earnings updates also showed growth but persistent losses. Investors may watch future quarters for margin stabilization, store mix optimization, and cash trends versus the current RMB159.3M balance.
AI-generated analysis. Not financial advice.
System Sales Increased
Positive Same-Store Sales Growth of
27.9 Million Registered Loyalty Club Members at Quarter-End,
Representing
SHANGHAI and NEW YORK, Dec. 09, 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 third quarter 2025.
THIRD QUARTER 2025 HIGHLIGHTS
- Total revenues of RMB358.0 million (USD50.3 million), representing a
0.4% decrease from the same quarter of 2024. - System sales1 of RMB419.9 million (USD59.0 million), representing a
12.8% increase from the same quarter of 2024. - Net new store openings totaled 15 (a net openings of 38 made-to-order (“MTO”) stores and a net closure of 23 non-MTO stores, of which seven were Tims Express stores).
- Same-store sales growth for company owned and operated stores was positive
3.3% . - Same-store sales growth for system-wide stores was positive
1.3% . - Company owned and operated store contribution2, previously reported as adjusted store EBITDA, was RMB21.8 million (USD3.1 million), compared to RMB39.9 million in the same quarter of 2024.
- Company owned and operated store contribution margin3, previously reported as adjusted store EBITDA margin, was
7.7% , compared to13.3% in the same quarter of 2024. - Registered loyalty club members totaled 27.9 million members as of September 30, 2025, representing a
22.3% year-over-year growth.
________________________
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 RMB4.8 million (USD0.7 million) for the three months ended September 30, 2025, compared to a profit of RMB10.1 million in the same quarter of 2024.
COMPANY MANAGEMENT STATEMENT
Mr. Yongchen Lu, CEO & Director of Tims China, stated, “In Q3, we returned to positive net new store openings and continued our strong momentum in system sales, achieving a
Mr. Dong (Albert) Li, CFO of Tims China, commented, “We are excited to announce the successful issuance of approximately US
THIRD QUARTER 2025 FINANCIAL RESULTS
Total revenues were RMB358.0 million (USD50.3 million) for the three months ended September 30, 2025, representing a decrease of
- Revenues from Company owned and operated stores were RMB282.9 million (USD39.7 million) for the three months ended September 30, 2025, representing a decrease of
5.5% from RMB299.5 million in the same quarter of 2024. The decrease was primarily attributable to closures of certain underperforming stores, partially offset by a3.3% increase in same-store sales growth for company owned and operated stores in the third quarter of 2025. The decrease was also attributable to a0.2% increase in the number of orders from 10.7 million in the third quarter of 2024 to 10.8 million in the same quarter of 2025, offset by a5.7% year-over-year decrease in average ticket size. - Other revenues were RMB75.1 million (USD10.6 million) for the three months ended September 30, 2025, representing an increase of
25.0% from RMB60.1 million in the same quarter of 2024. The increase was primarily due to the expansion of our franchise business as the number of our franchised stores increased from 382 as of September 30, 2024 to 479 as of September 30, 2025.
Company owned and operated store costs and expenses were RMB278.2 million (USD39.1 million) for the three months ended September 30, 2025, representing a decrease of
- Food and packaging costs were RMB86.5 million (USD12.2 million) for the three months ended September 30, 2025, representing a decrease of
0.4% from RMB86.9 million in the same quarter of 2024, which was in line with the revenue trend. Food and packaging costs as a percentage of revenues from company owned and operated stores increased by 1.6 percentage points from29.0% in the third quarter of 2024 to30.6% in the same quarter of 2025. - Rental and property management fees were RMB55.1 million (USD7.7 million) for the three months ended September 30, 2025, representing a decrease of
4.6% from RMB57.8 million in the same quarter of 2024, which was in line with the revenue trend. Rental and property management fees as a percentage of revenues from company owned and operated stores increased by 0.2 percentage points from19.3% in the third quarter of 2024 to19.5% in the same quarter of 2025. - Payroll and employee benefits expenses were RMB48.5 million (USD6.8 million) for the three months ended September 30, 2025, representing a decrease of
4.2% from RMB50.7 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 increased by 0.3 percentage points from16.9% in the third quarter of 2024 to17.2% in the same quarter of 2025, which was primarily due to higher labor scheduling portion for full-time employees as a percentage of overall staffing hours. - Delivery costs were RMB37.2 million (USD5.2 million) for the three months ended September 30, 2025, representing an increase of
20.9% from RMB30.8 million in the same quarter of 2024, which was in line with the20.9% increase in delivery orders from 5.7 million in the third quarter of 2024 to 6.9 million in the same quarter of 2025. Delivery costs as a percentage of revenues from company owned and operated stores increased by 2.9 percentage points to13.2% in the third quarter of 2025 compared to10.3% in the same quarter of 2024, which was primarily due to higher delivery revenue portion as a percentage of total revenues from company owned and operated stores. - Other operating expenses were RMB24.1 million (USD3.4 million) for the three months ended September 30, 2025, representing an increase of
2.0% from RMB23.7 million in the same quarter of 2024, which was primarily due to higher utilities and maintenance costs incurred. Other operating expenses as a percentage of revenues from company owned and operated stores increased by 0.6 percentage points to8.5% in the third quarter of 2025 compared to7.9% in the same quarter of 2024. - Store depreciation and amortization expenses were RMB26.6 million (USD3.7 million) for the three months ended September 30, 2025, representing a decrease of
10.8% from RMB29.8 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 0.5 percentage points to9.4% in the third quarter of 2025 compared to9.9% in the same quarter of 2024.
Costs of other revenues were RMB51.8 million (USD7.3 million) for the three months ended September 30, 2025, representing an increase of
Marketing expenses were RMB15.8 million (USD2.2 million) for the three months ended September 30, 2025, representing a decrease of
General and administrative expenses were RMB51.8 million (USD7.3 million) for the three months ended September 30, 2025, representing an increase of
Franchise and royalty expenses were RMB16.4 million (USD2.3 million) for the three months ended September 30, 2025, representing an increase of
Impairment losses of long-lived assets were RMB8.0 million (USD1.1 million) for the three months ended September 30, 2025, compared to RMB15.6 million in the same quarter of 2024, which was primarily due to a decrease in the number of planned closures of underperforming company owned and operated stores.
As a result of the foregoing, operating loss was RMB65.7 million (USD9.2 million) for the three months ended September 30, 2025, compared to RMB55.9 million in the same quarter of 2024.
Adjusted Corporate EBITDA was a loss of RMB15.0 million (USD2.1 million) for the three months ended September 30, 2025, compared to a gain of RMB2.0 million in the same quarter of 2024. Adjusted Corporate EBITDA margin was negative
Net loss from continuing operations was RMB73.8 million (USD10.4 million) for the three months ended September 30, 2025, compared to RMB87.4 million for the same quarter of 2024. Adjusted net loss was RMB53.8 million (USD7.6 million) for the three months ended September 30, 2025, compared to RMB41.4 million for the same quarter of 2024. Adjusted net loss margin was negative
Net loss was RMB73.8 million (USD10.4 million) for the three months ended September 30, 2025, compared to RMB87.4 million for the same quarter of 2024.
Basic and diluted loss per ordinary share was RMB2.24 (USD0.31) in the third quarter of 2025, compared to RMB2.75 in the same quarter of 2024. Adjusted basic and diluted net loss per ordinary share was RMB1.63 (USD0.23) in the third quarter of 2025, compared to RMB1.32 in the same quarter of 2024.
Liquidity
As of September 30, 2025, the Company’s total cash and cash equivalents, restricted cash and time deposits were RMB159.3 million (USD22.4 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) | Jun 30, | Sep 30, | Dec 31, | Mar 31, | Jun 30, | Sep 30, | |||||
| 2024 | 2024 | 2024 | 2025 | 2025 | 2025 | ||||||
| Total stores | 907 | 946 | 1,022 | 1,024 | 1,015 | 1,030 | |||||
| Company owned and operated stores | 574 | 564 | 576 | 569 | 566 | 551 | |||||
| Franchised stores | 333 | 382 | 446 | 455 | 449 | 479 | |||||
| Made to order (MTO) stores | 82 | 485 | 632 | 652 | 692 | 730 | |||||
| Non-MTO stores | 825 | 461 | 390 | 372 | 323 | 300 | |||||
| Same-store sales growth for system-wide stores | - | - | - | - | - | ||||||
| Same-store sales growth for company owned and operated stores | - | - | - | - | - | ||||||
| Registered loyalty club members (in thousands) | 21,403 | 22,815 | 24,045 | 25,150 | 26,192 | 27,900 | |||||
| Company owned and operated store contribution (Renminbi in thousands) | 32,429 | 39,922 | 12,973 | 17,154 | 27,176 | 21,786 | |||||
| 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”), 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
On October 31, 2025, Tims China announced that it had entered into a definitive agreement for the issuance of Senior Secured Convertible Notes due September 2029 (the “2025 Senior Secured Convertible Notes”) in an aggregate principal amount of approximately US
On December 3, 2025, Tims China announced the launch of an innovative eco-friendly straw developed together with Tencent’s CarbonXmade program. The product debuted at the 2025 Sustainable Social Value Innovation Summit in Beijing and will be introduced in Tims stores across Beijing, Shanghai, and Shenzhen. Through this rollout, Tims China aims to encourage consumers to make small, everyday choices that collectively support a more sustainable future.
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 RMB7.1190 to USD1.00, the exchange rate in effect on September 30, 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, December 9, 2025, at 8:00 am Eastern Time (on Tuesday, December 9, 2025, at 9:00 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/BId10b556eeb90481aa578a2eaa12a8b1e
Participants may also view the live webcast by registering through below weblink:
https://edge.media-server.com/mmc/p/rb3jsjt7
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.
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, 2024 | September 30, 2025 | |||||||
| RMB | RMB | US$ | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 152,368 | 131,609 | 18,487 | |||||
| Restricted Cash | 31,869 | 27,720 | 3,894 | |||||
| Time deposits | - | - | - | |||||
| Amount due from related parties | 5,858 | 2,766 | 389 | |||||
| Accounts receivable, net | 30,526 | 17,981 | 2,526 | |||||
| Inventories | 37,578 | 40,241 | 5,653 | |||||
| Prepaid expenses and other current assets | 158,882 | 176,017 | 24,724 | |||||
| Total current assets | 417,081 | 396,334 | 55,673 | |||||
| Non-current assets: | ||||||||
| Property and equipment, net | 502,159 | 387,952 | 54,495 | |||||
| Intangible assets, net | 97,019 | 85,868 | 12,062 | |||||
| Operating lease right-of-use assets | 493,308 | 372,585 | 52,337 | |||||
| Other non-current assets | 53,967 | 47,773 | 6,710 | |||||
| Total non-current assets | 1,146,453 | 894,178 | 125,604 | |||||
| Total assets | 1,563,534 | 1,290,512 | 181,277 | |||||
| LIABILITIES AND SHAREHOLDERS’EQUITY | ||||||||
| Current liabilities: | ||||||||
| Bank borrowings, current | 381,263 | 428,034 | 60,126 | |||||
| Accounts payable | 223,838 | 200,199 | 28,122 | |||||
| Contract liabilities | 39,678 | 36,206 | 5,086 | |||||
| Amount due to related parties | 48,117 | 115,541 | 16,230 | |||||
| Convertible notes, at fair value | 473,716 | 503,780 | 70,766 | |||||
| Operating lease liabilities | 178,115 | 177,094 | 24,876 | |||||
| Other current liabilities | 191,205 | 155,077 | 21,782 | |||||
| Total current liabilities | 1,535,932 | 1,615,931 | 226,988 | |||||
| Non-current liabilities: | ||||||||
| Convertible notes, at fair value | 464,847 | 425,619 | 59,786 | |||||
| Contract liabilities | 8,022 | 9,738 | 1,368 | |||||
| Operating lease liabilities | 380,075 | 263,203 | 36,972 | |||||
| Other non-current liabilities | 7,673 | 7,456 | 1,048 | |||||
| Total non-current liabilities | 860,617 | 706,016 | 99,174 | |||||
| Total liabilities | 2,396,549 | 2,321,947 | 326,162 | |||||
| Shareholders’ equity: | ||||||||
| Ordinary shares | 10 | 10 | 1 | |||||
| Additional paid-in capital | 1,818,421 | 1,821,586 | 255,877 | |||||
| Accumulated losses | (2,668,505 | ) | (2,874,875 | ) | (403,831 | ) | ||
| Accumulated other comprehensive income | 9,185 | 16,229 | 2,279 | |||||
| Treasury shares | - | - | - | |||||
| Total deficit attributable to shareholders of the Company | (840,889 | ) | (1,037,050 | ) | (145,674 | ) | ||
| Non-controlling interests | 7,874 | 5,615 | 789 | |||||
| Total shareholders’ deficit | (833,015 | ) | (1,031,435 | ) | (144,885 | ) | ||
| Commitments and Contingencies | - | - | - | |||||
| Total liabilities and shareholders’ deficit | 1,563,534 | 1,290,512 | 181,277 | |||||
| TH INTERNATIONAL LIMITED AND SUBSIDIARIES | |||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) | |||||||||||||||||
| (Amounts in thousands of RMB and US$, except for per share data) | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues: | |||||||||||||||||
| Company owned and operated stores | 299,455 | 282,884 | 39,736 | 918,141 | 819,515 | 115,117 | |||||||||||
| Other revenues | 60,099 | 75,134 | 10,554 | 140,392 | 188,221 | 26,439 | |||||||||||
| Total revenues | 359,554 | 358,018 | 50,290 | 1,058,533 | 1,007,736 | 141,556 | |||||||||||
| Costs and expenses, net: | |||||||||||||||||
| Company owned and operated stores | |||||||||||||||||
| Food and packaging | 86,855 | 86,538 | 12,156 | 289,289 | 248,817 | 34,951 | |||||||||||
| Rental and property management fee | 57,799 | 55,133 | 7,744 | 184,571 | 168,252 | 23,634 | |||||||||||
| Payroll and employee benefits | 50,683 | 48,532 | 6,817 | 176,662 | 148,779 | 20,899 | |||||||||||
| Delivery costs | 30,805 | 37,243 | 5,233 | 90,587 | 97,622 | 13,713 | |||||||||||
| Other operating expenses | 23,678 | 24,142 | 3,391 | 72,291 | 62,584 | 8,791 | |||||||||||
| Store depreciation and amortization | 29,792 | 26,570 | 3,732 | 93,540 | 81,717 | 11,479 | |||||||||||
| Company owned and operated store costs and expenses | 279,612 | 278,158 | 39,073 | 906,940 | 807,771 | 113,467 | |||||||||||
| Costs of other revenues | 45,330 | 51,767 | 7,272 | 105,080 | 129,795 | 18,232 | |||||||||||
| Marketing expenses | 18,496 | 15,824 | 2,223 | 51,085 | 47,159 | 6,624 | |||||||||||
| General and administrative expenses | 39,752 | 51,799 | 7,274 | 134,002 | 141,307 | 19,850 | |||||||||||
| Franchise and royalty expenses | 15,632 | 16,363 | 2,298 | 43,809 | 47,348 | 6,651 | |||||||||||
| Other operating costs and expenses | 783 | 120 | 17 | 10,479 | 1,333 | 187 | |||||||||||
| Loss on disposal of property and equipment | 1,098 | 2,277 | 320 | 3,716 | 5,257 | 738 | |||||||||||
| Impairment losses of long-lived assets | 15,585 | 7,985 | 1,122 | 40,386 | 29,088 | 4,086 | |||||||||||
| Other income | 815 | 621 | 87 | 5,070 | 2,586 | 363 | |||||||||||
| Total costs and expenses, net | 415,473 | 423,672 | 59,512 | 1,290,427 | 1,206,472 | 169,472 | |||||||||||
| Operating loss | (55,919 | ) | (65,654 | ) | (9,222 | ) | (231,894 | ) | (198,736 | ) | (27,916 | ) | |||||
| Interest income | 980 | 1,797 | 252 | 2,221 | 2,880 | 405 | |||||||||||
| Interest expenses | (4,078 | ) | (4,255 | ) | (598 | ) | (18,742 | ) | (12,662 | ) | (1,779 | ) | |||||
| Foreign currency transaction gain/(loss) | (37 | ) | (442 | ) | (61 | ) | 4,417 | (493 | ) | (70 | ) | ||||||
| Loss of the debt extinguishment | - | - | - | (10,657 | ) | - | - | ||||||||||
| Changes in fair value of Deferred Contingent consideration | - | - | - | (16,941 | ) | - | - | ||||||||||
| Changes in fair value of convertible notes | (27,921 | ) | (5,209 | ) | (732 | ) | (48,461 | ) | 866 | 122 | |||||||
| Loss from continuing operations before income taxes | (86,975 | ) | (73,763 | ) | (10,361 | ) | (320,057 | ) | (208,145 | ) | (29,238 | ) | |||||
| Income tax expenses | (410 | ) | - | - | (1,499 | ) | (484 | ) | (68 | ) | |||||||
| Net loss from continuing operations | (87,385 | ) | (73,763 | ) | (10,361 | ) | (321,556 | ) | (208,629 | ) | (29,306 | ) | |||||
| Discontinued operations： | |||||||||||||||||
| Income from discontinued operations before income taxes (including gain on disposal of Popeyes business RMB66,203 thousand in 2024) before income taxes | - | - | - | 44,959 | - | - | |||||||||||
| Income tax expenses | - | - | - | - | - | - | |||||||||||
| Net income from discontinued operations | - | - | - | 44,959 | - | - | |||||||||||
| Net loss | (87,385 | ) | (73,763 | ) | (10,361 | ) | (276,597 | ) | (208,629 | ) | (29,306 | ) | |||||
| Less: Net income/(loss) attributable to non-controlling interests | 1,466 | (869 | ) | (122 | ) | 3,926 | (2,259 | ) | (317 | ) | |||||||
| Net income/(loss) attributable to shareholders of the Company | |||||||||||||||||
| -from continuing operations | (88,851 | ) | (72,894 | ) | (10,239 | ) | (325,482 | ) | (206,370 | ) | (28,989 | ) | |||||
| -from discontinued operations | - | - | - | 44,959 | - | - | |||||||||||
| Basic and diluted loss per Ordinary Share | (2.75 | ) | (2.24 | ) | (0.31 | ) | (8.65 | ) | (6.34 | ) | (0.89 | ) | |||||
| Net loss | (87,385 | ) | (73,763 | ) | (10,361 | ) | (276,597 | ) | (208,629 | ) | (29,306 | ) | |||||
| Other comprehensive income/(loss) | |||||||||||||||||
| Unrealized gain on short-term investment, net of nil income taxes | - | - | - | - | - | - | |||||||||||
| Fair value changes of convertible notes due to instrument-specific credit risk, net of nil income taxes | 1,280 | (2,683 | ) | (377 | ) | (213 | ) | (2,539 | ) | (357 | ) | ||||||
| Foreign currency translation adjustment, net of nil income taxes | 10,866 | 6,406 | 900 | 5,765 | 9,583 | 1,347 | |||||||||||
| Total comprehensive loss | (75,239 | ) | (70,040 | ) | (9,838 | ) | (271,045 | ) | (201,585 | ) | (28,316 | ) | |||||
| Less: Comprehensive income/(loss) attributable to non-controlling interests | 1,466 | (869 | ) | (122 | ) | 3,926 | (2,259 | ) | (317 | ) | |||||||
| Comprehensive loss attributable to shareholders of the Company | (76,705 | ) | (69,171 | ) | (9,716 | ) | (274,971 | ) | (199,326 | ) | (27,999 | ) | |||||
| TH INTERNATIONAL LIMITED AND SUBSIDIARIES | |||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| (Amounts in thousands of RMB and US$) | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net cash provided by/(used in) operating activities | (12,999 | ) | (1,713 | ) | (241 | ) | (8,038 | ) | (3,107 | ) | (436 | ) | |||||
| Net cash used in investing activities | 7,426 | (13,602 | ) | (1,911 | ) | (21,259 | ) | (66,975 | ) | (9,408 | ) | ||||||
| Net cash provided by/(used in) financing activities | 27,980 | (3,326 | ) | (467 | ) | 16,204 | 46,787 | 6,572 | |||||||||
| Effect of foreign currency exchange rate changes on cash | 5,460 | (788 | ) | (109 | ) | 6,240 | (1,613 | ) | (226 | ) | |||||||
| Net decrease in cash | 27,867 | (19,429 | ) | (2,728 | ) | (6,853 | ) | (24,908 | ) | (3,498 | ) | ||||||
| Cash and cash equivalents and restricted cash, at beginning of the period | 168,867 | 178,758 | 25,109 | 203,587 | 184,237 | 25,879 | |||||||||||
| Cash and cash equivalents and restricted cash, at end of the period | 196,734 | 159,329 | 22,381 | 196,734 | 159,329 | 22,381 | |||||||||||
| 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$, except for number of shares and per share data) | |||||||||||||||||
| A. Company owned and operated store contribution | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues - company owned and operated stores | 299,455 | 282,884 | 39,736 | 918,141 | 819,515 | 115,117 | |||||||||||
| Food and packaging costs - company owned and operated stores | (86,855 | ) | (86,538 | ) | (12,156 | ) | (289,289 | ) | (248,817 | ) | (34,951 | ) | |||||
| Rental expenses - company owned and operated stores | (57,799 | ) | (55,133 | ) | (7,744 | ) | (184,571 | ) | (168,252 | ) | (23,634 | ) | |||||
| Payroll and employee benefits - company owned and operated stores | (50,683 | ) | (48,532 | ) | (6,817 | ) | (176,662 | ) | (148,779 | ) | (20,899 | ) | |||||
| Delivery costs - company owned and operated stores | (30,805 | ) | (37,243 | ) | (5,233 | ) | (90,587 | ) | (97,622 | ) | (13,713 | ) | |||||
| Other operating expenses - company owned and operated stores | (23,678 | ) | (24,142 | ) | (3,391 | ) | (72,291 | ) | (62,584 | ) | (8,791 | ) | |||||
| Store depreciation and amortization | (29,792 | ) | (26,570 | ) | (3,732 | ) | (93,540 | ) | (81,717 | ) | (11,479 | ) | |||||
| Franchise and royalty expenses - company owned and operated stores | (9,713 | ) | (9,510 | ) | (1,336 | ) | (30,101 | ) | (27,345 | ) | (3,841 | ) | |||||
| Fully-burdened gross (loss) profit - company owned and operated stores | 10,130 | (4,784 | ) | (673 | ) | (18,900 | ) | (15,601 | ) | (2,191 | ) | ||||||
| Store depreciation and amortization | 29,792 | 26,570 | 3,732 | 93,540 | 81,717 | 11,479 | |||||||||||
| Company owned and operated store contribution | 39,922 | 21,786 | 3,059 | 74,640 | 66,116 | 9,288 | |||||||||||
| Company owned and operated store contribution margin | 13.3 | % | 7.7 | % | 7.7 | % | 8.1 | % | 8.1 | % | 8.1 | % | |||||
| B. Adjusted general and administrative expenses | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| General and administrative expenses from continuing operations | (39,752 | ) | (51,799 | ) | (7,274 | ) | (134,002 | ) | (141,307 | ) | (19,850 | ) | |||||
| Adjusted for: | |||||||||||||||||
| Share-based compensation expenses | 1,375 | 566 | 80 | 1,260 | 2,391 | 336 | |||||||||||
| Professional fees related to financing programs | - | - | - | 10,464 | 1,007 | 141 | |||||||||||
| Impairment losses of rental deposits | - | 3,954 | 555 | 2,457 | 8,850 | 1,243 | |||||||||||
| Adjusted General and administrative expenses | (38,377 | ) | (47,279 | ) | (6,639 | ) | (119,821 | ) | (129,059 | ) | (18,130 | ) | |||||
| Adjusted General and administrative expenses as a % of total revenue | 10.7 | % | 13.2 | % | 13.2 | % | 11.3 | % | 12.8 | % | 12.8 | % | |||||
| C. Adjusted corporate EBITDA and adjusted corporate EBITDA margin | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Operating loss from continuing operations | (55,919 | ) | (65,654 | ) | (9,222 | ) | (231,894 | ) | (198,736 | ) | (27,916 | ) | |||||
| Adjusted for: | |||||||||||||||||
| Depreciation and amortization | 39,896 | 35,900 | 5,043 | 123,478 | 110,071 | 15,462 | |||||||||||
| Share-based compensation expenses | 1,375 | 566 | 80 | 1,260 | 2,391 | 336 | |||||||||||
| Impairment losses of rental deposits | - | 3,954 | 555 | 2,457 | 8,850 | 1,243 | |||||||||||
| One-off expense of store closure | - | - | - | 3,181 | - | - | |||||||||||
| Professional fees related to financing programs | - | - | - | 10,464 | 1,007 | 141 | |||||||||||
| Impairment losses of long-lived assets | 15,585 | 7,985 | 1,122 | 40,386 | 29,088 | 4,086 | |||||||||||
| Loss on disposal of property and equipment | 1,098 | 2,277 | 320 | 3,716 | 5,257 | 738 | |||||||||||
| Adjusted Corporate EBITDA | 2,035 | (14,972 | ) | (2,102 | ) | (46,952 | ) | (42,072 | ) | (5,910 | ) | ||||||
| Adjusted Corporate EBITDA Margin | 0.6 | % | -4.2 | % | -4.2 | % | -4.4 | % | -4.2 | % | -4.2 | % | |||||
| D. Adjusted net loss and adjusted net loss margin | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net loss from continuing operations | (87,385 | ) | (73,763 | ) | (10,361 | ) | (321,556 | ) | (208,629 | ) | (29,306 | ) | |||||
| Adjusted for: | |||||||||||||||||
| Share-based compensation expenses | 1,375 | 566 | 80 | 1,260 | 2,391 | 336 | |||||||||||
| Professional fees related to financing programs | - | - | - | 10,464 | 1,007 | 141 | |||||||||||
| Impairment losses of long-lived assets | 15,585 | 7,985 | 1,122 | 40,386 | 29,088 | 4,086 | |||||||||||
| Impairment losses of rental deposits | - | 3,954 | 555 | 2,457 | 8,850 | 1,243 | |||||||||||
| One-off expense of store closure | - | - | - | 3,181 | - | - | |||||||||||
| Loss on disposal of property and equipment | 1,098 | 2,277 | 320 | 3,716 | 5,257 | 738 | |||||||||||
| Loss of the debt extinguishment | - | - | - | 10,657 | - | - | |||||||||||
| Changes in fair value of Deferred Contingent consideration | - | - | - | 16,941 | - | - | |||||||||||
| Changes in fair value of convertible notes | 27,921 | 5,209 | 732 | 48,461 | (866 | ) | (122 | ) | |||||||||
| Adjusted Net loss | (41,406 | ) | (53,772 | ) | (7,552 | ) | (184,033 | ) | (162,902 | ) | (22,884 | ) | |||||
| Adjusted Net loss Margin | -11.5 | % | -15.0 | % | -15.0 | % | -17.4 | % | -16.2 | % | -16.2 | % | |||||
| E. Adjusted basic and diluted net loss per Ordinary Share | |||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||
| 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net loss from continuing operations to shareholders of the Company | (88,851 | ) | (72,894 | ) | (10,239 | ) | (325,482 | ) | (206,370 | ) | (28,989 | ) | |||||
| Adjusted for: | |||||||||||||||||
| Share-based compensation expenses | 1,375 | 566 | 80 | 1,260 | 2,391 | 336 | |||||||||||
| Professional fees related to financing programs | - | - | - | 10,464 | 1,007 | 141 | |||||||||||
| Impairment losses of long-lived assets | 15,585 | 7,985 | 1,122 | 40,386 | 29,088 | 4,086 | |||||||||||
| Impairment losses of rental deposits | - | 3,954 | 555 | 2,457 | 8,850 | 1,243 | |||||||||||
| One-off expense of store closure | - | - | - | 3,181 | - | - | |||||||||||
| Loss on disposal of property and equipment | 1,098 | 2,277 | 320 | 3,716 | 5,257 | 738 | |||||||||||
| Loss of the debt extinguishment | - | - | - | 10,657 | - | - | |||||||||||
| Changes in fair value of Deferred Contingent consideration | - | - | - | 16,941 | - | - | |||||||||||
| Changes in fair value of convertible notes | 27,921 | 5,209 | 732 | 48,461 | (866 | ) | (122 | ) | |||||||||
| Adjusted Net loss attributable to shareholders of the Company | (42,872 | ) | (52,903 | ) | (7,430 | ) | (187,959 | ) | (160,643 | ) | (22,567 | ) | |||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | 32,479,266 | 32,544,164 | 32,544,164 | 32,410,787 | 32,542,071 | 32,542,071 | |||||||||||
| Adjusted basic and diluted net loss per Ordinary Share | (1.32 | ) | (1.63 | ) | (0.23 | ) | (5.80 | ) | (4.94 | ) | (0.69 | ) | |||||
FAQ
What were Tims China (THCH) third quarter 2025 revenues and system sales?
How did Tims China (THCH) same‑store sales perform in Q3 2025?
What was Tims China (THCH) profitability in Q3 2025?
How many new stores did Tims China (THCH) open in Q3 2025?
What financing actions did Tims China (THCH) announce in 2025 Q3?
How large is Tims China’s loyalty program after Q3 2025?
