TH International (US:THCH)2022-11-29 16:00Revenue Growth - Total revenues increased by 67.9% to RMB305.7 million (USD43.0 million) for Q3 2022, compared to RMB182.1 million in Q3 2021[1] - Total revenues for the three months ended September 30, 2022, increased to RMB 305,719, representing a 68% growth compared to RMB 182,131 for the same period in 2021[31] - For the three months ended September 30, 2022, revenues from company-owned and operated stores increased to RMB 290,009, up from RMB 173,703 in the same period of 2021, representing a growth of 67%[36] Store Expansion - Net new store openings totaled 46, bringing system-wide stores to 486 as of September 30, 2022, up from 440 as of June 30, 2022[2] - Total stores increased from 159 on Mar 31, 2021, to 486 on Sep 30, 2022, representing a growth of 205%[17] - The number of company-owned and operated stores increased from 150 on Mar 31, 2021, to 454 on Sep 30, 2022, reflecting a growth of 202%[17] - The company opened its 500th coffee shop on October 17, 2022, highlighting its expansion strategy in new cities across China[21] Same-Store Sales Growth - Same-store sales growth for company-owned and operated stores was 7.5% for Q3 2022, compared to 6.6% in Q3 2021[2] - Same-store sales growth for systemwide stores was 8.1% for Sep 30, 2022, compared to 41.6% for Mar 31, 2021, indicating a significant decline in growth rate[17] Loyalty Program - Registered loyalty club members reached 8.9 million, representing an 85.8% year-over-year growth from 4.8 million[2] - Registered loyalty club members grew from 2,947,000 on Mar 31, 2021, to 8,862,000 on Sep 30, 2022, an increase of 200%[17] Financial Performance - Net loss was RMB195.0 million (USD27.4 million) for Q3 2022, compared to RMB113.1 million in Q3 2021[14] - The operating loss for the nine months ended September 30, 2022, was RMB 449,822, compared to an operating loss of RMB 245,118 for the same period in 2021, indicating a deterioration in performance[32] - The net loss attributable to shareholders of the Company for the nine months ended September 30, 2022, was RMB 518,778, compared to RMB 243,390 for the same period in 2021, indicating a substantial increase in losses[32] - The company reported a basic and diluted loss per ordinary share of RMB 4.17 for the nine months ended September 30, 2022, compared to RMB 2.02 for the same period in 2021[32] - Total comprehensive loss for the nine months ended September 30, 2022, was RMB 548,523, compared to RMB 246,698 for the same period in 2021, indicating a significant increase in comprehensive losses[32] Cash and Investments - Total cash and cash equivalents and short-term investments increased to RMB759.9 million (USD106.8 million) as of September 30, 2022, up from RMB285.1 million as of June 30, 2022[16] - Cash and short-term investments as of September 30, 2022, totaled RMB 759,939, a decrease from RMB 390,837 in December 2021[29] - The cash at the end of the period for the three months ended September 30, 2022, was RMB 382,448, significantly higher than RMB 134,399 at the beginning of the period[34] - The company incurred net cash used in investing activities of RMB 431,081 for the three months ended September 30, 2022, compared to RMB 99,767 in the same period of 2021, indicating increased investment activity[34] Expenses - Company operated store costs and expenses were RMB299.9 million (USD42.2 million), a 36.3% increase from RMB219.9 million in Q3 2021[8] - General and administrative expenses rose by 122.0% to RMB109.6 million (USD15.4 million) in Q3 2022, primarily due to increased payroll and share-based compensation[12] - Adjusted general and administrative expenses for the three months ended September 30, 2022, were RMB 48,370, a decrease from RMB 49,364 in the same period of 2021[37] Profitability Metrics - Adjusted store EBITDA margin increased by 4.1 percentage points to 6.7% in Q3 2022, up from 2.6% in Q3 2021[3] - Adjusted store EBITDA was RMB19.4 million (USD2.7 million) for Q3 2022, a 336.6% increase from RMB4.4 million in Q3 2021[2] - Adjusted store EBITDA for Sep 30, 2022, was RMB 19,352,000, a recovery from a loss of RMB 40,279,000 in Jun 30, 2022[17] - The adjusted corporate EBITDA margin improved to -15.6% for the three months ended September 30, 2022, compared to -31.2% in the same period of 2021[39] - The adjusted net loss margin for the nine months ended September 30, 2022, was -50.5%, compared to -41.6% for the same period in 2021, reflecting a decline in overall profitability[40] Future Strategies - Future growth strategies include geographic expansion, new product development, and enhancing customer loyalty through partnerships and innovative offerings[24] Partnerships and Product Development - A partnership with Freshippo was announced on November 18, 2022, to introduce co-branded coffee products in over 300 stores across 27 cities[22] - The company launched two co-branded ready-to-drink coffee products with Sinopec's Easy Joy on September 7, 2022, enhancing its product offerings[21]