Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, reported a 1.4% year-over-year increase in system sales to RMB409.5 million (USD57.2 million) for Q2 2025, alongside a positive adjusted corporate EBITDA of RMB2.2 million (USD0.3 million) [1][4][13] - The company achieved a significant growth in its loyalty program, with registered members reaching 26.2 million, marking a 22.4% increase year-over-year [1][5] Financial Performance - Total revenues for Q2 2025 were RMB349.0 million (USD48.7 million), reflecting a 4.9% decrease from RMB366.8 million in Q2 2024 [5][6] - Food revenue increased by 8.6% year-over-year, contributing 35.2% to system sales, up from 32.5% in Q2 2024 [3][4] - The company reported a net loss of RMB75.9 million (USD10.6 million) for Q2 2025, an improvement from a net loss of RMB99.5 million in the same quarter of 2024 [14][15] Operational Highlights - The company closed nine stores during the quarter, resulting in a net opening of 40 made-to-order (MTO) stores and the closure of 49 non-MTO stores [5][6] - The contribution margin from company-owned and operated stores was 9.6%, down from 10.1% in Q2 2024 [5][8] - The number of franchised stores increased from 333 as of June 30, 2024, to 449 as of June 30, 2025, contributing to a 50.7% increase in other revenues [5][8] Cost Management - Company-owned and operated store costs decreased by 12.1% year-over-year to RMB272.4 million (USD38.0 million) [7][8] - Food and packaging costs fell by 15.0% year-over-year, benefiting from improved supply chain efficiencies [7][8] - Payroll and employee benefits expenses decreased by 17.4% year-over-year, reflecting optimization in staffing arrangements [7][8] Marketing and Brand Development - The company launched the "Light & Fit Lunch Box" platform to enhance its product offerings and drive top-line growth [3][4] - Marketing expenses increased by 8.4% year-over-year to RMB13.9 million (USD1.9 million), primarily due to promotional efforts for new products [9][10] Liquidity Position - As of June 30, 2025, the company's total cash and cash equivalents were RMB178.8 million (USD25.0 million), a slight decrease from RMB184.2 million at the end of 2024 [17]

Core Viewpoint - TH International Limited, operating as Tims China, is set to release its second quarter 2025 financial results on August 26, 2025, before the U.S. market opens, followed by a conference call [1] Group 1: Company Overview - TH International Limited (Nasdaq: THCH) is the exclusive master franchisee of Tim Hortons coffee shops in mainland China, Hong Kong, and Macau [2] - The company was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a subsidiary of Restaurant Brands International (TSX: QSR) (NYSE: QSR) [2] Group 2: Company Philosophy - The company's philosophy emphasizes world-class execution, data-driven decision making, local relevance, continuous innovation, community engagement, and convenience [3]

Business Performance - Tims China's total store count reached 1,024 in Q1 2025, a 13% increase year-over-year compared to 906 in Q1 2024[13] - The company opened 2 net new stores in Q1 2025, a 50% decrease compared to 4 in Q1 2024[13] - Registered loyalty club members increased to 251 million in Q1 2025, a 257% increase year-over-year from 200 million in Q1 2024[13] - Digital orders accounted for 863% of revenues from company-owned stores in Q1 2025, a 27 percentage point increase from 836% in Q1 2024[13] - Total revenues decreased by 95% to RMB 3007 million in Q1 2025, compared to RMB 3321 million in Q1 2024[13] - System sales increased by 35% to RMB 3763 million in Q1 2025, compared to RMB 3635 million in Q1 2024[13] - Revenues from company-owned stores decreased by 14% to RMB 2548 million in Q1 2025, compared to RMB 2964 million in Q1 2024[13] - Same-store sales growth for company-owned stores was -65% in Q1 2025, a 52 percentage point increase from -117% in Q1 2024[13] Financial Metrics - Company owned and operated store contribution margin improved to 67% in Q1 2025, compared to 08% in Q1 2024[12] - Adjusted corporate EBITDA margin improved to -97% in Q1 2025, compared to -158% in Q1 2024[12] Franchise Expansion - Revenues from sub-franchise business were RMB 424 million in Q1 2025[42]

Company Participation in Conferences - TH International Limited, the exclusive operator of Tim Hortons coffee shops in China, will participate in the BofA Securities 2025 Consumer & Retail Conference on March 11-12, 2025, with a fireside chat scheduled for March 12 at 10:30am ET [1] - The company will also attend the UBS Global Consumer and Retail Conference on March 13, 2025, with a fireside chat at 2:00pm ET [2] - Key representatives, including Greg Armstrong and Gemma Bakx, will meet with investors during both conferences [2] Company Overview - TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau, and was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a subsidiary of Restaurant Brands International [2] - The company's operational philosophy emphasizes world-class execution, data-driven decision making, local relevance, continuous innovation, community engagement, and convenience [3]