TH International (US:THCH)2025-04-15 19:12Financial Data and Key Metrics Changes - In Q4 2024, the company-owned and operated store contribution margin improved by 5.3 percentage points year-over-year, while the adjusted corporate EBITDA margin improved by 9.9 percentage points year-over-year [11][22]. - Total revenues and system sales for the full year 2024 dropped by 10.8% and 6.2% year-over-year, respectively, primarily due to the closure of underperforming stores and a 15.8% decrease in same-store sales growth [24]. - The average monthly transacting customers reached 3.01 million in Q4 2024, a 1.0% increase from 2.98 million in the same quarter of 2023 [23]. Business Line Data and Key Metrics Changes - The company launched 92 new products in 2024, contributing approximately 25% of total net revenue [12][60]. - The sub-franchisee business revenues increased by 105.3% as the number of franchised stores grew from 283 to 446 [24]. Market Data and Key Metrics Changes - The registered loyalty club members exceeded 24 million, reflecting a 29.7% year-over-year growth [18]. - The company entered 82 cities by year-end 2024, showcasing its market penetration strategy [17]. Company Strategy and Development Direction - The company aims to open at least 200 stores in 2025, primarily through sub-franchising, while maintaining a focus on operational excellence and profitability [31]. - The strategic focus remains on product innovation, particularly in healthy food offerings, to differentiate from competitors and avoid price wars [64]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving corporate EBITDA breakeven in 2025, emphasizing the importance of sub-franchising for capital efficiency [41]. - The company noted improving trends in same-store sales growth since October 2024, with a goal of achieving positive growth in 2025 [54]. Other Important Information - The company has maintained a stable total drawable bank facility of approximately RMB 400 million and is in the process of obtaining new bank facilities [36]. - The total cash and cash equivalents as of December 31, 2024, were RMB 184.2 million, down from RMB 219.5 million in 2023 [28]. Q&A Session Summary Question: What is the current state of the balance sheet and strategies for managing cash flow? - The total cash and cash equivalents balance was approximately RMB 184 million, with stable bank facilities and improved profitability at both store and corporate levels [36][38]. Question: How are comp store sales trending in 2025? - Same-store sales growth has shown improvement since October 2024, with a goal to achieve positive growth in 2025 [54]. Question: How is the company planning on driving product innovation in 2025? - The company introduced 92 new products in 2024 and will continue to focus on freshness and healthiness in product offerings [60][64]. Question: Can you comment on the liquidity position? - As of the end of 2024, total cash and cash equivalents were about RMB 184 million, with good liquidity expected from potential new bank facilities [56][57].