TH International (US:THCH)2023-11-14 16:00Financial Performance - Total revenues reached a record-high of RMB436.4 million (USD59.8 million), representing a 42.7% year-over-year growth from RMB305.7 million in Q3 2022[2]. - Adjusted store EBITDA was RMB29.3 million (USD4.0 million), a 91.5% increase from RMB15.3 million in Q3 2022, with an adjusted store EBITDA margin of 7.5%, up 2.2 percentage points year-over-year[2][3]. - Revenues from company-owned and operated store sales were RMB390.8 million (USD53.6 million), a 34.8% increase from RMB290.0 million in Q3 2022[5]. - Other revenues surged to RMB45.6 million (USD6.3 million), marking a 190.3% increase from RMB15.7 million in Q3 2022, driven by e-commerce expansion and increased franchise fees[6]. - Total revenues increased to RMB 436,402, representing a 43% growth compared to RMB 305,719 in the same period last year[35]. - Revenues from company-owned and operated stores reached RMB 390,798, up 35% from RMB 290,009 year-over-year[35]. Store Expansion - Net new store openings totaled 63, resulting in 763 system-wide stores at quarter-end, with 589 company-owned and operated stores[2][5]. - Total stores increased from 390 in Dec 2021 to 763 as of Sep 2023, representing a growth of 95.9%[18]. - The number of franchised stores rose from 17 in Dec 2021 to 174 in Sep 2023, marking a growth of 923.5%[18]. - The company plans to continue expanding its store network and optimizing its cost structure to achieve profitable growth[28]. Membership and Customer Engagement - Loyalty club membership grew to 16.9 million, reflecting a 90.3% year-over-year increase[2]. - Registered loyalty club members grew from 5,969,000 in Dec 2021 to 16,898,000 in Sep 2023, an increase of 182.5%[18]. - Same-store sales growth for company-owned and operated stores was 20.4% for Jun 2023, a significant recovery from -7.1% in Dec 2022[18]. Losses and Financial Challenges - Operating loss was RMB159.7 million (USD21.9 million) for Q3 2023, compared to RMB150.5 million in the same quarter of 2022[14]. - Adjusted net loss was RMB107.9 million (USD14.8 million) for Q3 2023, compared to RMB87.5 million in Q3 2022, with an adjusted net loss margin of negative 24.7%[15]. - The company reported accumulated losses of 1,944,341,000 RMB as of Dec 31, 2022, which reflects a loss increase of 266,494,000 RMB[30]. - Net loss attributable to shareholders was RMB 160,603, compared to a loss of RMB 194,381 in the same quarter last year[38]. - Total comprehensive loss for the quarter was RMB 166,568, compared to RMB 212,342 in the same period last year[38]. Cash and Assets - As of September 30, 2023, total cash and cash equivalents were RMB461.8 million (USD63.3 million), down from RMB611.5 million as of December 31, 2022[17]. - Total current assets decreased to RMB 703,756 from RMB 796,813, a decline of approximately 12%[32]. - Cash and cash equivalents increased significantly to RMB 461,755 from RMB 239,077, a growth of 93%[32]. - Cash at the end of the period increased from RMB 382,448 in 2022 to RMB 461,755 in September 2023, marking a rise of about 20.7%[40]. - Total assets as of September 30, 2023, were RMB 2,607,218, a slight decrease from RMB 2,642,010 at the end of 2022[33]. Operational Efficiency - Adjusted store EBITDA improved from a loss of 25,011,000 RMB in Mar 2022 to a profit of 29,310,000 RMB in Sep 2023[18]. - Adjusted store EBITDA margin increased from -11.9% in Mar 2022 to 7.5% in Sep 2023, indicating improved operational efficiency[18]. - General and administrative expenses for the three months ended September 30, 2023, totaled RMB 71,071, with an adjusted percentage of total revenue at 14.5%[43]. - The adjusted general and administrative expenses for the nine months ended September 30, 2023, were RMB 275,140, with a percentage of total revenue at 15.7%[43]. Future Outlook - Forward-looking statements indicate potential for further growth and operational improvements, subject to market conditions[28].