TH International (US:THCH)2025-08-26 20:00Financial Performance - Total revenues were RMB349.0 million (USD48.7 million), representing a 4.9% decrease from RMB366.8 million in Q2 2024[6] - Adjusted corporate EBITDA was RMB2.2 million (USD0.3 million), compared to RMB3.3 million in the same quarter of 2024[16] - Net loss from continuing operations was RMB75.9 million (USD10.6 million), an improvement from RMB99.5 million in Q2 2024[17] - Operating loss for the six months ended June 30, 2025 was RMB 133,082 thousand, down from RMB 175,975 thousand for the same period in 2024, indicating a 24.4% reduction in losses[42] - Basic and diluted loss per ordinary share for Q2 2025 was RMB 2.32, compared to RMB 1.45 in Q2 2024, indicating a worsening in per-share performance[43] - Adjusted net loss margin for Q2 2025 improved to -11.4%, compared to -12.9% in Q2 2024[49] - Adjusted basic and diluted net loss per ordinary share for Q2 2025 was RMB (1.21), down from RMB (1.50) in Q2 2024[50] Revenue Sources - Food revenue increased by 8.6% year-over-year, contributing 35.2% to system sales, up from 32.5% in Q2 2024[5] - Revenues from company-owned and operated stores for Q2 2025 were RMB 281,872, a decrease of 12.5% compared to RMB 322,311 in Q2 2024[45] Store Operations - System sales increased by 1.4% year-over-year to RMB409.5 million (USD57.2 million) in Q2 2025[1] - The number of franchised stores increased from 333 to 449 year-over-year, contributing to a 110.3% increase in profits from other revenues[7] - Total stores increased from 906 in March 2024 to 1,024 in March 2025, with a projected decrease to 1,015 by June 2025[21] - Same-store sales growth for system-wide stores improved from -13.6% in March 2024 to -4.8% in June 2025[22] Membership and Customer Engagement - Registered loyalty club members reached 26.2 million, reflecting a 22.4% year-over-year growth[6] - Registered loyalty club members grew from 20,009 thousand in March 2024 to 25,150 thousand in March 2025[22] Cost Management - Company owned and operated store costs decreased by 12.1% to RMB272.4 million (USD38.0 million) compared to Q2 2024[8] - The company reported a decrease in food and packaging costs for company-owned stores, from RMB 99,725 in Q2 2024 to RMB 84,807 in Q2 2025, a reduction of 14.9%[45] - Adjusted general and administrative expenses for Q2 2025 were RMB 34,614, representing 9.9% of total revenue, compared to 8.3% in Q2 2024[46] Cash Flow and Assets - Total cash and cash equivalents as of June 30, 2025, were RMB178.8 million (USD25.0 million), down from RMB184.2 million at the end of 2024[20] - Cash and cash equivalents at the end of Q2 2025 were RMB 178,758 thousand, an increase from RMB 168,867 thousand at the end of Q2 2024[44] - Total assets increased to RMB 1,563,534 thousand as of June 30, 2025, up from RMB 1,385,815 thousand at the end of 2024, marking a growth of 12.8%[39] Strategic Initiatives - The appointment of Lars Huang as brand ambassador aims to enhance brand reach, particularly among Gen Z consumers[24] - The company plans to expand its store network and optimize its cost structure to achieve profitable growth[33] - The gross number of new store openings will be monitored against permanent closures to assess net new store openings[25] - The company emphasizes data-driven decision-making and continuous innovation as part of its operational philosophy[35] - Forward-looking statements indicate potential growth and operational efficiency improvements, subject to market risks[33]