Core Viewpoint - Tims China (THCH.NASDAQ) reported a decline in revenue for the first quarter of this year, marking the fourth consecutive quarter of revenue drop, although net losses have narrowed significantly compared to the previous year [1][3]. Revenue Breakdown - Total revenue for the first quarter was 301 million RMB, a year-on-year decrease of 9.45%, with a net loss of 58.94 million RMB, which is a 58.73% improvement from the previous year [1]. - Revenue from self-operated stores fell by 14.0% to 255 million RMB, accounting for 84.72% of total revenue [3]. - The decline in revenue is attributed to the closure of underperforming restaurants and a same-store sales drop of 6.5% [3]. Store Performance - The number of self-operated stores decreased to 569 as of March 31, 2025, a net reduction of 7 stores [3]. - The company has experienced a continuous decline in same-store sales growth, with a reported drop of 11.7% for self-operated stores in the first quarter [4]. Cost Management - Food and packaging costs for self-operated stores decreased by 24.6% to 77.5 million RMB, with this cost representing 30.4% of self-operated store revenue, down from 34.7% year-on-year [4]. Profitability - Operating profit from self-operated stores increased by 647.83% to 17.2 million RMB, with the contribution margin rising by 5.9 percentage points to 6.7% [5]. Product Strategy - Tims China has expanded its product line by introducing lighter meal options, reinforcing its differentiation strategy in the "coffee + freshly prepared food" segment [5]. Franchise Growth - Other revenue, primarily from franchising and e-commerce, grew by 28.6% to 46 million RMB, driven by the expansion of franchised stores, which increased by 153 to 569 [8]. - As of March 31, Tims China had a total of 1,024 stores in the country, ranking eighth among domestic coffee brands [8].