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Tims China (Nasdaq: THCH) posts 21.7% sales drop, adds $15.8M funding

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Rhea-AI Filing Summary

TH International Limited (Tims China, Nasdaq: THCH) reported weaker results for the quarter ended June 30, 2026. Total revenues were RMB273.4 million (USD40.3 million), down 21.7% from RMB349.0 million a year earlier, mainly reflecting proactive closure of underperforming stores and pressure on same-store sales.

Same-store sales growth remained negative, with system-wide stores at -17.8% and company owned and operated stores at -17.3%. Operating loss widened to RMB58.1 million (USD8.6 million), and net loss increased to RMB97.4 million (USD14.4 million). Adjusted Corporate EBITDA swung from a gain of RMB2.2 million to a loss of RMB21.0 million (USD3.1 million), with margin declining to -7.6%. The balance sheet shows a significant shareholders’ deficit, with total liabilities of RMB2,434.3 million versus total assets of RMB1,027.6 million as of June 30, 2026.

Management highlighted strategic changes to refocus on core brand identity and guest experience, and noted growth in registered loyalty club members to 37.1 million, up 41.7% year over year. Liquidity remained tight, with cash, cash equivalents and restricted cash at RMB121.1 million (USD17.8 million). In July 2026, the company closed an initial tranche of USD15.8 million in additional senior secured convertible notes from Tim Hortons Restaurants International GmbH to support innovation, marketing, and a more balanced mix of company-owned and franchised stores.

Positive

  • Registered loyalty club membership grew 41.7% year over year to 37.1 million as of June 30, 2026, expanding the customer base and providing a larger platform for future engagement and sales initiatives.
  • Net cash from operating activities for Q2 2026 turned positive at RMB34.0 million (USD5.0 million), compared with a small outflow in the prior-year quarter, indicating improved short-term cash generation from operations.
  • The company completed an initial tranche of USD15.8 million in new senior secured convertible notes with brand owner THRI in July 2026, providing additional funding capacity for product innovation, marketing, and store network development.
  • Impairment losses of long-lived assets decreased to RMB4.6 million (USD0.7 million) from RMB9.5 million a year earlier, reflecting fewer planned closures of underperforming company-owned stores in the quarter.

Negative

  • Total revenues declined 21.7% year over year to RMB273.4 million in Q2 2026, driven by underperforming store closures and weaker same-store sales, signaling significant top-line pressure.
  • System-wide same-store sales growth deteriorated to -17.8%, with company owned and operated same-store sales at -17.3% in Q2 2026, indicating sustained demand weakness versus the prior year.
  • Net loss widened to RMB97.4 million (USD14.4 million) in Q2 2026 from RMB75.9 million, while adjusted net loss margin deepened to -20.0% from -11.4%, showing meaningful profitability deterioration.
  • Adjusted Corporate EBITDA swung from a gain of RMB2.2 million to a loss of RMB21.0 million (USD3.1 million), and adjusted Corporate EBITDA margin fell from 0.6% to -7.6%, reflecting weaker operational performance.
  • As of June 30, 2026, the company reported a substantial shareholders’ deficit of RMB1,406.7 million (USD207.3 million), with total liabilities of RMB2,434.3 million significantly exceeding total assets of RMB1,027.6 million.
  • Cash, cash equivalents and restricted cash totaled only RMB121.1 million (USD17.8 million) at June 30, 2026, against current liabilities of RMB1,059.1 million, indicating tight near-term liquidity.
  • General and administrative expenses rose 12.1% year over year to RMB42.3 million (USD6.2 million) in Q2 2026, and adjusted G&A as a percentage of revenues increased from 9.9% to 14.5%, highlighting higher overhead burden.
  • Changes in fair value of convertible notes produced a loss of RMB34.9 million (USD5.1 million) in Q2 2026, larger than the RMB23.4 million loss a year earlier, adding volatility and pressure to bottom-line results.

Filing Explained

Second-quarter operating cash was positive, while first-half operating cash remained negative; cash and restricted cash totaled RMB121.1 million on June 30.

TH International Limited reports unaudited second-quarter results in this August 18 interim filing; the disclosed current operating structure is 1,028 stores, including 544 company-owned and 484 franchised locations.

The store table distinguishes company-owned from franchised locations, so the total describes the network’s composition rather than a completed future expansion plan. It also reports 780 made-to-order stores and 248 non-made-to-order stores as of June 30, 2026.

The cash-flow statement adds context to the liquidity figure already reported: operating activities generated RMB33.968 million during the second quarter but used RMB1.394 million during the first six months. Cash, cash equivalents and restricted cash ended the quarter at RMB121.055 million on June 30, 2026, so the quarterly inflow had not offset the first-half operating cash use.

The next interim filing should be checked against the June 30, 2026 cash balance and first-half operating cash-flow figure to determine whether the second-quarter operating inflow continued.

Total revenues Q2 2026 RMB273.4 million (USD40.3 million) Three months ended June 30, 2026; down 21.7% from RMB349.0 million in Q2 2025
Net loss Q2 2026 RMB97.4 million (USD14.4 million) Three months ended June 30, 2026; compared to RMB75.9 million in Q2 2025
Adjusted Corporate EBITDA Q2 2026 RMB21.0 million loss (USD3.1 million) Adjusted Corporate EBITDA loss with margin of -7.6% in Q2 2026 versus +0.6% in Q2 2025
Cash and restricted cash RMB121.1 million (USD17.8 million) Cash, cash equivalents and restricted cash as of June 30, 2026
Total liabilities RMB2,434.3 million Total liabilities as of June 30, 2026; includes RMB1,183.7 million convertible notes
Shareholders’ deficit RMB1,406.7 million (USD207.3 million) Total shareholders’ deficit as of June 30, 2026
Registered loyalty club members 37.1 million Registered loyalty club members as of June 30, 2026; up 41.7% year over year
System-wide same-store sales growth -17.8% Same-store sales growth for system-wide stores in Q2 2026
Adjusted Corporate EBITDA financial
"Adjusted Corporate EBITDA was a loss of RMB21.0 million (USD3.1 million)"
Adjusted corporate EBITDA measures a company’s recurring operating profit by starting with earnings before interest, taxes, depreciation and amortization (EBITDA) and then removing one-time, irregular or non-operational items so the figure reflects normal business performance. Investors use it like a cleaned-up snapshot of cash-generating ability—similar to judging a car’s usual fuel efficiency after excluding a single unusually long trip—to compare companies, assess sustainable earnings and gauge capacity to service debt or support valuation.
same-store sales growth financial
"Same-store sales growth for system-wide stores ... -17.8 %"
Same-store sales growth measures how much revenue changes at outlets that have been open for a comparable period (typically a year), excluding sales from newly opened or recently closed locations. It matters to investors because it shows whether demand is growing at the business’s existing operations — like checking whether established trees are producing more fruit rather than counting fruit from newly planted trees — and helps separate true organic performance from growth driven by expansion or closures.
company owned and operated store contribution financial
"Company owned and operated store contribution margin ... 5.7 %"
Company owned and operated store contribution is the portion of a business’s revenue and profit that comes directly from retail locations the company itself owns and runs, rather than from franchised or licensed outlets. For investors it shows how well the company performs when it controls pricing, staffing and customer experience—like judging a restaurant by its corporate-run branches rather than franchises—and helps assess cash flow reliability, capital needs and growth quality.
convertible notes financial
"Changes in fair value of convertible notes were a loss of RMB34.9 million"
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
non-GAAP financial measures financial
"The Company uses non-GAAP financial measures, namely company owned and operated store contribution"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
shareholders’ deficit financial
"Total shareholders’ deficit | | | (1,236,435 | ) | | | (1,406,661 | )"
Shareholders’ deficit is the negative net worth on a company’s balance sheet when its liabilities exceed its assets — like owing more on a house than it’s worth. It matters to investors because it signals financial strain: the company may have trouble raising cash, paying debts, or funding growth, and existing shares can be diluted or wiped out if conditions force restructuring or bankruptcy.
Total revenues RMB273.4 million -21.7% vs Q2 2025
Net loss RMB97.4 million More loss vs RMB75.9 million in Q2 2025
Adjusted Corporate EBITDA RMB21.0 million loss Down from RMB2.2 million gain in Q2 2025
Adjusted net loss RMB54.9 million Worse than RMB39.7 million in Q2 2025

FAQ

How did TH International (THCH) perform financially in Q2 2026?
TH International reported Q2 2026 revenues of RMB273.4 million, down 21.7% year over year, and a net loss of RMB97.4 million (USD14.4 million). Operating loss was RMB58.1 million, and adjusted net loss was RMB54.9 million with a -20.0% margin.

What happened to THCH’s same-store sales and store base in Q2 2026?
System-wide same-store sales growth was -17.8% in Q2 2026, with company owned and operated stores at -17.3%. The network had 1,028 total stores as of June 30, 2026, including 544 company owned and 484 franchised locations.

What is TH International’s liquidity position as of June 30, 2026?
As of June 30, 2026, TH International held RMB121.1 million (USD17.8 million) in cash, cash equivalents and restricted cash. Current liabilities were RMB1,059.1 million, highlighting a tight liquidity position despite positive operating cash flow in the quarter.

How leveraged is THCH and what is its shareholders’ equity situation?
THCH reported total liabilities of RMB2,434.3 million and total assets of RMB1,027.6 million as of June 30, 2026, resulting in a shareholders’ deficit of RMB1,406.7 million (USD207.3 million). Convertible notes alone totaled RMB1,183.7 million.

What non-GAAP metrics did TH International highlight for Q2 2026?
The company reported adjusted Corporate EBITDA loss of RMB21.0 million (USD3.1 million) with a -7.6% margin and adjusted net loss of RMB54.9 million (USD8.1 million) with a -20.0% margin. Adjusted basic and diluted net loss per share was RMB1.69 (USD0.25).

Did THCH raise any new financing around Q2 2026?
In July 2026, TH International closed an initial tranche of USD15.8 million in additional senior secured convertible notes issued to Tim Hortons Restaurants International GmbH. The company plans to use proceeds for innovation, marketing, and a more balanced store development strategy.

How is TH International (THCH) developing its customer base and partnerships?
Registered loyalty club members reached 37.1 million, up 41.7% year over year, strengthening the customer ecosystem. On August 13, 2026, Tims China launched a joint membership campaign with China Southern Airlines to integrate member benefits and enhance the “coffee plus travel” experience.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Form 6-K: How Foreign Companies Report to the SEC →

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the month of August 2026

 

Commission file number: 001-41516

 

TH International Limited

 

2501 Central Plaza

227 Huangpi North Road

Shanghai, People’s Republic of China, 200003

+86-021-6136-6616

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F ☒         Form 40-F ☐

 

 

 

 

 

INDEX TO EXHIBITS

 

Exhibit
Number		   Exhibit Title
99.1   Earnings Release

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TH International Limited
   
  /s/ Kwok Wah Cheung
  Kwok Wah Cheung
  Chief Executive Officer

 

Date: August 18, 2026

 

2

 

Exhibit 99.1

 

 

 

Tims China Announces Second Quarter 2026 Financial Results

 

SHANGHAI and NEW YORK, August 18, 2026 (GLOBE NEWSWIRE) -- TH International Limited (Nasdaq: THCH), the parent company of the exclusive master franchisees of Tim Hortons coffee shops in China (“Tims China” or the “Company”) today announced its unaudited financial results for the second quarter 2026.

 

SECOND QUARTER 2026 HIGHLIGHTS

 

●Total revenues of RMB273.4 million (USD40.3 million), representing a 21.7% decrease from the same quarter of 2025.

 

●System sales1 of RMB347.8 million (USD51.3 million), representing a 15.1% decrease from the same quarter of 2025.

 

●Net new store openings totaled two (a net opening of 15 made-to-order (“MTO”) stores and a net closure of 13 non-MTO stores).

 

●Company owned and operated store contribution2, previously reported as adjusted store EBITDA, was RMB12.6 million (USD1.9 million), compared to RMB27.2 million in the same quarter of 2025.

 

●Company owned and operated store contribution margin3, previously reported as adjusted store EBITDA margin, was 5.7%, compared to 9.6% in the same quarter of 2025.

 

●Registered loyalty club members totaled 37.1 million as of June 30, 2026, representing a 41.7% year-over-year growth.

 

COMPANY MANAGEMENT STATEMENT

 

Mr. Kwok Wah (John) Cheung, CEO of Tims China, stated, “The second quarter was a period of transition for Tims China. Our top-line results were impacted by our proactive decision to close underperforming stores, as well as pressure on same-store sales as we lapped strong delivery performance from last year. It is clear that we need to make meaningful changes to our strategy to win back customers. My experience tells me that when we focus on our core identity and consistently deliver great products and a great guest experience, our customers will respond. I have full confidence in Tims China’s ability to improve the business and regain market share. We have a clear plan and are moving quickly to return the business to growth. We already see green shoots in the business when we look at our registered loyalty club membership, which reached more than 37.1 million as of June 30, 2026, up 41.7% year over year, providing a strong foundation to deepen customer engagement and support future growth”.

 

 

1System sales is calculated as the gross merchandise value of sales generated from both company owned and operated stores and franchised stores.
2Company owned and operated store contribution, is calculated as fully burdened gross profit4 of company owned and operated stores excluding depreciation & amortization.
3Company 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.
4Fully 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 RMB7.2 million (USD1.1 million) for the three months ended June 30, 2026, compared to a gain of RMB0.4 million in the same quarter of 2025.

 

 

 

 

Mr. Dong (Albert) Li, CFO of Tims China, commented, “We successfully closed the initial tranche of US$15.8 million in additional senior secured convertible notes issued to Tim Hortons Restaurants International GmbH (“THRI”), our brand owner and founding shareholder, in July 2026. With the proceeds from this series of proposed financing, we plan to drive our innovation and product offerings, invest more in marketing activities, and deploy a more balanced store network development strategy by opening both company owned and operated stores and franchised stores going forward”.

 

SECOND QUARTER 2026 FINANCIAL RESULTS

 

Total revenues were RMB273.4 million (USD40.3 million) for the three months ended June 30, 2026, representing a decrease of 21.7% from RMB349.0 million in the same quarter of 2025. Total revenues comprise:

 

●Revenues from company owned and operated stores were RMB220.9 million (USD32.6 million) for the three months ended June 30, 2026, representing a decrease of 21.6% from RMB281.9 million in the same quarter of 2025. The decrease was primarily attributable to closures of certain underperforming stores as the number of company owned and operated stores decreased from 566 as of June 30, 2025 to 544 as of June 30, 2026, and a 17.3% decline in same-store sales growth for company owned and operated stores in the second quarter of 2026. The decrease was also attributable to a 0.9% year-over-year decrease in average ticket size, and a 20.7% year-over-year decrease in the number of orders from 10.5 million in the second quarter of 2025 to 8.3 million in the same quarter of 2026.

 

●Other revenues were RMB52.5 million (USD7.7 million) for the three months ended June 30, 2026, representing a decrease of 21.7% from RMB67.1 million in the same quarter of 2025. The decrease was primarily due to lower revenues generated per franchised store as a result of a decline in same-store sales growth for franchised stores, offset by an increase in the number of our franchised stores from 449 as of June 30, 2025 to 484 as of June 30, 2026.

 

Company owned and operated store costs and expenses were RMB221.1 million (USD32.6 million) for the three months ended June 30, 2026, representing a decrease of 18.8% from RMB272.4 million in the same quarter of 2025. Company owned and operated store costs and expenses comprise:

 

●Food and packaging costs were RMB62.5 million (USD9.2 million) for the three months ended June 30, 2026, representing a decrease of 26.3% from RMB84.8 million in the same quarter of 2025, which was primarily due to a decrease in revenues from company owned and operated stores. 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 1.8 percentage points from 30.1% in the second quarter of 2025 to 28.3% in the same quarter of 2026.

 

2

 

 

●Rental and property management fees were RMB47.9 million (USD7.1 million) for the three months ended June 30, 2026, representing a decrease of 15.6% from RMB56.8 million in the same quarter of 2025, which was primarily due to a decrease in the number of our company-owned and operated stores from 566 as of June 30, 2025 to 544 as of June 30, 2026. Rental and property management fees as a percentage of revenues from company owned and operated stores increased by 1.5 percentage points from 20.2% in the second quarter of 2025 to 21.7% in the same quarter of 2026.

 

●Payroll and employee benefits expenses were RMB43.9 million (USD6.5 million) for the three months ended June 30, 2026, representing a decrease of 12.6% from RMB50.2 million in the same quarter of 2025, which was primarily due to a decrease in revenues from company owned and operated stores. Payroll and employee benefits expenses as a percentage of revenues from company owned and operated stores increased by 2.1 percentage points from 17.8% in the second quarter of 2025 to 19.9% in the same quarter of 2026.

 

●Delivery costs were RMB28.9 million (USD4.3 million) for the three months ended June 30, 2026, representing a decrease of 13.3% from RMB33.3 million in the same quarter of 2025, which was in line with the 11.9% decrease in delivery orders from 8.2 million in the second quarter of 2025 to 7.2 million in the same quarter of 2026, and a reduction in average delivery costs per order. Delivery costs as a percentage of revenues from company owned and operated stores increased by 1.3 percentage points to 13.1% in the second quarter of 2026, compared to 11.8% in the same quarter of 2025, which was primarily due to an increase in delivery revenue as a percentage of revenues from company owned and operated stores from 61.0% in the second quarter of 2025 to 65.7% in the same quarter of 2026.

 

●Other operating expenses were RMB17.4 million (USD2.6 million) for the three months ended June 30, 2026, representing a decrease of 14.7% from RMB20.4 million in the same quarter of 2025, which was primarily due to a decrease in revenues from company owned and operated stores. Other operating expenses as a percentage of revenues from company owned and operated stores increased by 0.7 percentage points to 7.9% in the second quarter of 2026, compared to 7.2% in the same quarter of 2025.

 

●Store depreciation and amortization expenses were RMB20.4 million (USD3.0 million) for the three months ended June 30, 2026, representing a decrease of 23.8% from RMB26.8 million in the same quarter of 2025, 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 0.3 percentage points to 9.2% in the second quarter of 2026, compared to 9.5% in the same quarter of 2025.

 

Costs of other revenues were RMB36.8 million (USD5.4 million) for the three months ended June 30, 2026, representing a decrease of 20.9% from RMB46.5 million in the same quarter of 2025, which was in line with the revenue trend. Costs of other revenues as a percentage of other revenues increased by 0.8 percentage points from 69.3% in the second quarter of 2025 to 70.1% in the same quarter of 2026 due to lower margin generated from franchised business during the second quarter of 2026.

 

3

 

 

Marketing expenses were RMB13.3 million (USD2.0 million) for the three months ended June 30, 2026, representing a decrease of 4.4% from RMB13.9 million in the same quarter of 2025. Marketing expenses as a percentage of total revenues increased by 0.9 percentage points from 4.0% in the second quarter of 2025 to 4.9% in the same quarter of 2026 as we spent more marketing efforts to support our franchised business during the second quarter of 2026.

 

General and administrative expenses were RMB42.3 million (USD6.2 million) for the three months ended June 30, 2026, representing an increase of 12.1% from RMB37.7 million in the same quarter of 2025, which was primarily due to a RMB4.2 million (USD0.6 million) increase in professional and other service fees. As a result of the foregoing, adjusted general and administrative expenses, which excludes: (i) share-based compensation expenses of RMB0.3 million (USD0.05 million), and (ii) impairment losses of rental deposits of RMB2.3 million (USD0.3 million), were RMB39.6 million (USD5.8 million), representing an increase of 14.4% from RMB34.6 million in the same quarter of 2025. Adjusted general and administrative expenses as a percentage of total revenues increased by 4.6 percentage points from 9.9% in the second quarter of 2025 to 14.5% in the same quarter of 2026. For more information on the Company’s non-GAAP financial measures, please see “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this earnings release.

 

Franchise and royalty expenses were RMB14.4 million (USD2.1 million) for the three months ended June 30, 2026, representing a decrease of 15.9% from RMB17.1 million in the same quarter of 2025, which was primarily due to a decrease in total revenues. Franchise and royalty expenses as a percentage of total revenues increased by 0.4 percentage points, from 4.9% in the second quarter of 2025 to 5.3% in the same quarter of 2026, as a result of higher royalty rate applicable.

 

Impairment losses of long-lived assets were RMB4.6 million (USD0.7 million) for the three months ended June 30, 2026, compared to RMB9.5 million in the same quarter of 2025, which was primarily due to a decrease in the number of planned closures of underperforming company owned and operated stores in the second quarter of 2026.

 

As a result of the foregoing, operating loss was RMB58.1 million (USD8.6 million) for the three months ended June 30, 2026, compared to RMB47.8 million in the same quarter of 2025.

 

Adjusted Corporate EBITDA was a loss of RMB21.0 million (USD3.1 million) for the three months ended June 30, 2026, compared to a gain of RMB2.2 million in the same quarter of 2025. Adjusted Corporate EBITDA margin was negative 7.6% in the second quarter of 2026, compared to positive 0.6% in the same quarter of 2025.

 

Changes in fair value of convertible notes were a loss of RMB34.9 million (USD5.1 million) for the three months ended June 30, 2026, compared to a loss of RMB23.4 million in the same quarter of 2025.

 

Net loss was RMB97.4 million (USD14.4 million) for the three months ended June 30, 2026, compared to RMB75.9 million for the same quarter of 2025. Adjusted net loss, which excludes: (i) share-based compensation expenses of RMB0.3 million (USD0.05 million); (ii) impairment losses of long-lived assets of RMB4.6 million (USD0.7 million), (iii) impairment losses of rental deposits of RMB2.3 million (USD0.3 million), (iv) loss on disposal of property and equipment of RMB0.5 million (USD0.1 million), and (v) loss from changes in fair value of convertible notes of RMB34.9 million (USD5.1 million), was RMB54.9 million (USD8.1 million) for the three months ended June 30, 2026, compared to RMB39.7 million for the same quarter of 2025. Adjusted net loss margin was negative 20.0% in the second quarter of 2026, compared to negative 11.4% in the same quarter of 2025.

 

4

 

 

Basic and diluted loss per ordinary share was RMB3.00 (USD0.44) in the second quarter of 2026, compared to RMB2.32 in the same quarter of 2025. Adjusted basic and diluted net loss per ordinary share was RMB1.69 (USD0.25) in the second quarter of 2026, compared to RMB1.21 in the same quarter of 2025.

 

Liquidity

 

As of June 30, 2026, the total amount of the Company’s cash and cash equivalents and restricted cash was RMB121.1 million (USD17.8 million), compared to RMB129.7 million as of December 31, 2025. The change was primarily attributable to cash disbursements on business operations, partially offset by the draw-down of additional bank borrowings.

 

KEY OPERATING DATA

 

  For the three months ended or as of 
Tims only  Jun 30,   Sep 30,   Dec 31,   Mar 31,   June 30, 
(Exclude the discontinued business)  2025   2025   2025   2026   2026 
                     
Total stores   1,015    1,030    1,047    1,026    1,028 
Company owned and operated stores   566    551    562    541    544 
Franchised stores   449    479    485    485    484 
Made to order (MTO) stores   692    730    770    765    780 
Non-MTO stores   323    300    277    261    248 
Same-store sales growth for system-wide stores   -4.8%   1.3%   -2.4%   -13.2%   -17.8%
Same-store sales growth for company owned and operated stores   -3.6%   3.3%   -1.4%   -12.4%   -17.3%
Registered loyalty club members (in thousands)   26,192    27,900    31,021    35,930    37,118 
Company owned and operated store contribution (Renminbi in thousands)   27,176    21,786    9,164    3,730    12,584 
Company owned and operated store contribution margin   9.6%   7.7%   3.7%   1.8%   5.7%

 

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 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.

 

5

 

 

●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, professional fees related to financing programs, and impairment losses of rental deposits.

 

●Adjusted corporate EBITDA. Calculated as operating loss 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, professional fees related to 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 excluding share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, professional fees related to financing programs, impairment losses of rental deposits, and changes in fair value of convertible notes.

 

●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 DEVELOPMENT

 

On August 13, 2026, Tims China announced the official launch of a joint membership campaign with China Southern Airlines. The two companies will work together on member benefits integration, consumer touchpoint fusion, and service experience innovation, giving members of both programs a new “coffee plus travel” lifestyle experience and expanding the membership service ecosystem.

 

6

 

 

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, professional fees related to financing programs, and impairment losses of rental deposits; (iv) adjusted corporate EBITDA as operating loss 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, professional fees related to 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 excluding share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, professional fees related to financing programs, impairment losses of rental deposits, and changes in fair value of convertible notes; (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 attributable to the Company’s ordinary shareholders divided by weighted-average number of basic and diluted ordinary shares. 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 RMB6.7851 to USD1.00, the exchange rate in effect on June 30, 2026 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, August 18, 2026, at 8:00 am Eastern Time (on Tuesday, August 18, 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/BIe1051e377efc4328b00acdcfb0146d50

 

7

 

 

Participants may also view the live webcast by registering through below weblink:

 

https://edge.media-server.com/mmc/p/y7354vo8

 

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.

 

8

 

 

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.

 

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.

 

IMPORTANT NOTICE REGARDING THE TIM HORTONS® BRAND

 

The TIM HORTONS® brand and related trademarks are used by Tims China pursuant to a franchise agreement with Tim Hortons Restaurants International GmbH and its affiliates (collectively, the “Identified Persons”). The Identified Persons are entities entirely separate and distinct from Tims China and its subsidiaries (the “Group”). No Identified Person exercises any control over the business, operations, finances or management of the Group, and no Identified Person is responsible for any obligations or liabilities of the Group.

 

INVESTOR AND MEDIA CONTACTS

 

Investor Relations

 

IR@timschina.com

 

Public and Media Relations

 

Patty Yu

Patty.Yu@timschina.com

 

9

 

 

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,
2025		   June 30,
2026		 
   RMB   RMB   US$ 
ASSETS            
Current assets:            
Cash and cash equivalents   121,795    107,833    15,892 
Restricted Cash   7,916    13,222    1,949 
Amount due from related parties   195    -    - 
Accounts receivable, net   17,692    12,212    1,800 
Inventories   36,793    32,938    4,854 
Prepaid expenses and other current assets   142,235    128,813    18,985 
Total current assets   326,626    295,018    43,480 
                
Non-current assets:               
Property and equipment, net   332,070    287,164    42,323 
Intangible assets, net   81,014    72,768    10,725 
Operating lease right-of-use assets   348,916    268,491    39,571 
Other non-current assets   88,051    104,193    15,356 
Total non-current assets   850,051    732,616    107,975 
Total assets   1,176,677    1,027,634    151,455 
                
LIABILITIES AND SHAREHOLDERS’EQUITY               
Current liabilities:               
Bank borrowings, current   395,088    448,377    66,083 
Accounts payable   199,152    180,897    26,661 
Contract liabilities   37,197    33,229    4,897 
Amount due to related parties   17,414    53,035    7,816 
Operating lease liabilities   180,806    169,239    24,943 
Other current liabilities   172,605    174,358    25,697 
Total current liabilities   1,002,262    1,059,135    156,097 
                
Non-current liabilities:               
Convertible notes, at fair value   1,152,723    1,183,734    174,461 
Contract liabilities   10,133    8,373    1,234 
Operating lease liabilities   240,282    175,901    25,925 
Other non-current liabilities   7,712    7,152    1,054 
Total non-current liabilities   1,410,850    1,375,160    202,674 
Total liabilities   2,413,112    2,434,295    358,771 
                
Shareholders’ equity:               
Ordinary shares   10    10    1 
Additional paid-in capital   1,821,605    1,823,869    268,805 
Accumulated losses   (3,102,994)   (3,310,359)   (487,887)
Accumulated other comprehensive income   38,393    72,619    10,704 
Treasury shares   -    -    - 
Total deficit attributable to shareholders of the Company   (1,242,986)   (1,413,861)   (208,377)
Non-controlling interests   6,551    7,200    1,061 
Total shareholders’ deficit   (1,236,435)   (1,406,661)   (207,316)
                
Commitments and Contingencies   -    -    - 
                
Total liabilities and shareholders’ deficit   1,176,677    1,027,634    151,455 

10

 

 

TH INTERNATIONAL LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)

(Amounts in thousands of RMB and US$, except for per share data)

 

   For the three months ended June 30,   For the six months ended June 30, 
   2025   2026   2025   2026 
   RMB   RMB   US$   RMB   RMB   US$ 
Revenues:                        
Company owned and operated stores   281,872    220,855    32,550    536,631    428,071    63,090 
Other revenues   67,104    52,522    7,741    113,087    102,047    15,040 
Total revenues   348,976    273,377    40,291    649,718    530,118    78,130 
                               
Costs and expenses, net:                              
Company owned and operated stores                              
Food and packaging   84,807    62,495    9,211    162,279    121,427    17,896 
Rental and property management fee   56,824    47,943    7,066    113,119    95,142    14,022 
Payroll and employee benefits   50,227    43,882    6,467    100,247    88,700    13,073 
Delivery costs   33,338    28,912    4,262    60,379    56,235    8,287 
Other operating expenses   20,424    17,425    2,568    38,442    35,605    5,248 
Store depreciation and amortization   26,789    20,406    3,007    55,147    41,992    6,189 
Company owned and operated store costs and expenses   272,409    221,063    32,581    529,613    439,101    64,715 
                               
Costs of other revenues   46,502    36,804    5,424    78,028    69,852    10,295 
Marketing expenses   13,906    13,295    1,959    31,335    23,104    3,405 
General and administrative expenses   37,698    42,261    6,229    89,508    90,305    13,311 
Franchise and royalty expenses   17,089    14,366    2,117    30,985    27,901    4,112 
Other operating costs and expenses   98    616    91    1,213    1,175    173 
Loss on disposal of property and equipment   247    502    74    2,980    1,114    164 
Impairment losses of long-lived assets   9,485    4,563    673    21,103    10,450    1,540 
Other income   679    1,986    293    1,965    2,502    369 
Total costs and expenses, net   396,755    331,484    48,855    782,800    660,500    97,346 
                               
Operating loss   (47,779)   (58,107)   (8,564)   (133,082)   (130,382)   (19,216)
                               
Interest income   983    1,145    169    1,083    1,545    228 
Interest expenses   (4,831)   (4,285)   (632)   (8,407)   (8,239)   (1,214)
Foreign currency transaction loss   (431)   (1,337)   (197)   (51)   (2,181)   (322)
Changes in fair value of convertible notes   (23,383)   (34,857)   (5,137)   6,075    (67,459)   (9,942)
                               
Loss before income taxes   (75,441)   (97,441)   (14,361)   (134,382)   (206,716)   (30,466)
Income tax expenses   (484)   -    -    (484)   -    - 
Net loss   (75,925)   (97,441)   (14,361)   (134,866)   (206,716)   (30,466)
                               
Less: Net (loss)/income attributable to non-controlling interests   (470)   28    4    (1,390)   649    96 
Net loss attributable to shareholders of the Company   (75,455)   (97,469)   (14,365)   (133,476)   (207,365)   (30,562)
Basic and diluted loss per Ordinary Share   (2.32)   (3.00)   (0.44)   (4.10)   (6.38)   (0.94)
                               
Net loss   (75,925)   (97,441)   (14,361)   (134,866)   (206,716)   (30,466)
                               
Other comprehensive income/(loss)                              
Fair value changes of convertible notes due to instrument-specific credit risk, net of nil income taxes   (286)   -    -    144    -    - 
Foreign currency translation adjustment, net of nil income taxes   2,360    16,156    2,381    3,177    34,226    5,044 
                               
Total comprehensive loss   (73,851)   (81,285)   (11,980)   (131,545)   (172,490)   (25,422)
                               
Less: Comprehensive (loss)/income attributable to non-controlling interests   (470)   28    4    (1,390)   649    96 
Comprehensive loss attributable to shareholders of the Company   (73,381)   (81,313)   (11,984)   (130,155)   (173,139)   (25,518)

 

11

 

 

TH INTERNATIONAL LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of RMB and US$)

 

   For the three months ended June 30,   For the six months ended June 30, 
   2025   2026   2025   2026 
   RMB   RMB   US$   RMB   RMB   US$ 
Net cash (used in)/provided by operating activities   (1,175)   33,968    5,006    (1,394)   10,424    1,536 
Net cash used in investing activities   (36,715)   (9,169)   (1,351)   (53,373)   (20,641)   (3,042)
Net cash (used in)/provided by financing activities   5,900    (13,788)   (2,032)   50,113    4,633    683 
Effect of foreign currency exchange rate changes on cash   (688)   (1,363)   (201)   (825)   (3,072)   (453)
Net increase/(decrease) in cash   (32,678)   9,648    1,422    (5,479)   (8,656)   (1,276)
Cash and cash equivalents and restricted cash, at beginning of the period   211,436    111,407    16,419    184,237    129,711    19,117 
Cash and cash equivalents and restricted cash, at end of the period   178,758    121,055    17,841    178,758    121,055    17,841 

 

12

 

 

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 June 30,   For the six months ended June 30, 
   2025   2026   2025   2026 
   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   281,872    100.0    220,855    32,550    100.0    536,631    100.0    428,071    63,090    100.0 
Food and packaging costs - company owned and operated stores   (84,807)   (30.1)   (62,495)   (9,211)   (28.3)   (162,279)   (30.2)   (121,427)   (17,896)   (28.4)
Rental expenses - company owned and operated stores   (56,824)   (20.2)   (47,943)   (7,066)   (21.7)   (113,119)   (21.1)   (95,142)   (14,022)   (22.2)
Payroll and employee benefits - company owned and operated stores   (50,227)   (17.8)   (43,882)   (6,467)   (19.9)   (100,247)   (18.7)   (88,700)   (13,073)   (20.7)
Delivery costs - company owned and operated stores   (33,338)   (11.8)   (28,912)   (4,262)   (13.1)   (60,379)   (11.3)   (56,235)   (8,287)   (13.1)
Other operating expenses - company owned and operated stores   (20,424)   (7.2)   (17,425)   (2,568)   (7.9)   (38,442)   (7.2)   (35,605)   (5,248)   (8.3)
Store depreciation and amortization   (26,789)   (9.5)   (20,406)   (3,007)   (9.2)   (55,147)   (10.3)   (41,992)   (6,189)   (9.8)
Franchise and royalty expenses - company owned and operated stores   (9,076)   (3.3)   (7,614)   (1,122)   (3.4)   (17,835)   (3.2)   (14,648)   (2,159)   (3.5)
Fully-burdened gross (loss) profit - company owned and operated stores   387    0.1    (7,822)   (1,153)   (3.5)   (10,817)   (2.0)   (25,678)   (3,784)   (6.0)
Store depreciation and amortization   26,789    9.5    20,406    3,007    9.2    55,147    10.3    41,992    6,189    9.8 
                                                   
Company owned and operated store contribution   27,176    9.6    12,584    1,854    5.7    44,330    8.3    16,314    2,405    3.8 
Company owned and operated store contribution margin   9.6%   9.6%   5.7%   5.7%   5.7%   8.3%   8.3%   3.8%   3.8%   3.8%

 

B. Adjusted general and administrative expenses

 

   For the three months ended June 30,   For the six months ended June 30， 
   2025   2026   2025   2026 
   RMB   % of Total Revenues   RMB   US$   % of Total Revenues   RMB   % of Total Revenues   RMB   US$   % of Total Revenues 
General and administrative expenses   (37,698)   (10.8)   (42,261)   (6,229)   (15.5)   (89,508)   (13.9)   (90,305)   (13,311)   (17.0)
Adjusted for:                                                  
Share-based compensation expenses   749    0.2    320    47    0.1    1,825    0.3    1,836    271    0.3 
Professional fees related to financing programs   -    -    -    -    -    1,007    0.2    -    -    - 
Impairment losses of rental deposits   2,335    0.7    2,347    346    0.9    4,896    0.8    5,440    802    1.0 
Adjusted General and administrative expenses   (34,614)   (9.9)   (39,594)   (5,836)   (14.5)   (81,780)   (12.6)   (83,029)   (12,238)   (15.7)

 

13

 

 

C. Adjusted corporate EBITDA and adjusted corporate EBITDA margin

 

   For the three months ended June 30,   For the six months ended June 30, 
   2025   2026   2025   2026 
   RMB   % of
Total
Revenues		   RMB   US$   % of
Total
Revenues		   RMB   % of
Total
Revenues		   RMB   US$  

% of

Total
Revenues

 
Operating loss   (47,779)   (13.7)   (58,107)   (8,564)   (21.3)   (133,082)   (20.6)   (130,382)   (19,216)   (24.6)
Adjusted for:                                                  
Depreciation and amortization   37,158    10.6    29,423    4,336    10.8    74,171    11.4    60,465    8,911    11.4 
Share-based compensation expenses   749    0.2    320    47    0.1    1,825    0.3    1,836    271    0.3 
Impairment losses of rental deposits   2,335    0.7    2,347    346    0.9    4,896    0.8    5,440    802    1.0 
Professional fees related to financing programs   -    -    -    -    -    1,007    0.2    -    -    - 
Impairment losses of long-lived assets   9,485    2.7    4,563    673    1.7    21,103    3.2    10,450    1,540    2.0 
Loss on disposal of property and equipment   247    0.1    502    74    0.2    2,980    0.5    1,114    164    0.2 
Adjusted Corporate EBITDA   2,195    0.6    (20,952)   (3,088)   (7.6)   (27,100)   (4.2)   (51,077)   (7,528)   (9.7)

 

D. Adjusted net loss and adjusted net loss margin

 

   For the three months ended June 30,   For the six months ended June 30, 
   2025   2026   2025   2026 
   RMB   % of
Total
Revenues		   RMB   US$   % of
Total
Revenues		   RMB   % of
Total
Revenues		   RMB   US$   % of
Total
Revenues		 
Net loss   (75,925)   (21.8)   (97,441)   (14,361)   (35.6)   (134,866)   (20.9)   (206,716)   (30,466)   (39.0)
Adjusted for:                                                  
Share-based compensation expenses   749    0.2    320    47    0.1    1,825    0.3    1,836    271    0.3 
Professional fees related to financing programs   -    -    -    -    -    1,007    0.2    -    -    - 
Impairment losses of long-lived assets   9,485    2.7    4,563    673    1.7    21,103    3.2    10,450    1,540    2.0 
Impairment losses of rental deposits   2,335    0.7    2,347    346    0.9    4,896    0.8    5,440    802    1.0 
Loss on disposal of property and equipment   247    0.1    502    74    0.2    2,980    0.5    1,114    164    0.2 
Changes in fair value of convertible notes   23,383    6.7    34,857    5,137    12.7    (6,075)   (0.9)   67,459    9,942    12.7 
Adjusted Net loss   (39,726)   (11.4)   (54,852)   (8,084)   (20.0)   (109,130)   (16.8)   (120,417)   (17,747)   (22.8)

 

14

 

 

E. Adjusted basic and diluted net loss per Ordinary Share

 

   For the three months ended June 30,   For the six months ended June 30, 
   2025   2026   2025   2026 
   RMB   Unadjusted
and Adjusted
Basic and
diluted
loss per
Ordinary Share
RMB		   RMB   US$   Unadjusted
and Adjusted
Basic and
diluted
loss per
Ordinary Share
USD		   RMB   Unadjusted
and Adjusted
Basic and
diluted
loss per
Ordinary Share
RMB		   RMB   US$   Unadjusted
and Adjusted
Basic and
diluted
loss per
Ordinary Share
USD		 
Net loss attributable to shareholders of the Company   (75,455)   (2.32)   (97,469)   (14,365)   (0.44)   (133,476)   (4.10)   (207,365)   (30,562)   (0.94)
Adjusted for:                                                  
Share-based compensation expenses   749    0.02    320    47    0.00    1,825    0.06    1,836    271    0.01 
Professional fees related to financing programs   -    -    -    -    -    1,007    0.03    -    -    - 
Impairment losses of long-lived assets   9,485    0.29    4,563    673    0.02    21,103    0.65    10,450    1,540    0.05 
Impairment losses of rental deposits   2,335    0.07    2,347    346    0.01    4,896    0.15    5,440    802    0.02 
Loss on disposal of property and equipment   247    0.01    502    74    0.00    2,980    0.09    1,114    164    0.01 
Changes in fair value of convertible notes   23,383    0.72    34,857    5,137    0.16    (6,075)   (0.19)   67,459    9,942    0.30 
Adjusted Net loss attributable to shareholders of the Company   (39,256)   (1.21)   (54,880)   (8,088)   (0.25)   (107,740)   (3.31)   (121,066)   (17,843)   (0.55)
Weighted average shares outstanding used in calculating basic and diluted loss per share   32,541,772    N/A    32,519,377    32,519,377    N/A    32,540,993    N/A    32,519,377    32,519,377    N/A 
Adjusted basic and diluted net loss per Ordinary Share   (1.21)        (1.69)   (0.25)        (3.31)        (3.72)   (0.55)     

 

15

 

Source: View Original Filing on SEC EDGAR

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