TH International Ltd (THCH) 2023 Q3 法說會逐字稿

Ladies and gentlemen, welcome to TH International Limited third quarter 2023 earnings presentation. My name is Ting Zhou, head of Investor Relations. TH International Limited announced its third quarter 2023 financial results earlier today.

女士們、先生們，歡迎觀看 TH International Limited 2023 年第三季財報。我叫周婷，投資人關係主管。 TH International Limited 今天稍早公佈了 2023 年第三季財務業績。

A press release, as well as an accompanying presentation, which contains operational and financial highlights, are now available on the company's IR website at ir.timschina.com.

新聞稿以及包含營運和財務要點的隨附簡報現已在公司投資者關係網站 ir.timschina.com 上發布。

Today, you'll hear from Mr. Yongchen Lu, our CEO and Director, and Mr. Albert Li, our CFO. We can also find the webcast of this presentation on our IR website. Before we get started, I'd like to remind you that our earnings presentation and investor materials contain forward-looking statements, which are subject to future events and uncertainties.

今天，您將聽到我們的執行長兼董事陸永辰先生和我們的財務長李偉先生的演講。我們也可以在我們的 IR 網站上找到本次示範的網路廣播。在開始之前，我想提醒您，我們的收益演示和投資者資料包含前瞻性陳述，這些陳述受到未來事件和不確定性的影響。

Statements that are not historical facts, including but not limited to statements about the company's beliefs and expectations are forward-looking statements. Forward-looking statements involve inherent risk and uncertainties and our actual result may differ materially from these forward-looking statements.

非歷史事實的陳述，包括但不限於有關公司信念和期望的陳述，均為前瞻性陳述。前瞻性陳述涉及固有風險和不確定性，我們的實際結果可能與這些前瞻性陳述有重大差異。

All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and risk factors included in our findings with the SEC. This presentation also includes certain non-GAAP financial measures, which we believe can be helpful in evaluating our performance.

所有前瞻性陳述應與我們的收益發布中的警示性陳述以及我們與 SEC 的調查結果中包含的風險因素結合起來考慮。本簡報也包括某些非公認會計準則財務指標，我們認為這些指標有助於評估我們的績效。

However, those measures should not be considered substitutes for the comparable GAAP measures. The accompanying reconciliation information related to those non-GAAP and GAAP measures can be found in our earnings press release issued earlier today.

然而，這些措施不應被視為可比較公認會計原則措施的替代品。與這些非公認會計原則和公認會計原則措施相關的隨附調節資訊可以在我們今天早些時候發布的收益新聞稿中找到。

With that said, I would now like to turn it over to Mr. Yongchen Lu, our CEO and Director. Please go ahead.

話雖如此，我現在想把它交給我們的執行長兼董事陸永辰先生。請繼續。

Thank you, Ting. In Q3 2023, we delivered 42.7% year-over-year top line growth and set a record quarterly revenue, adjusted store EBITDA, and adjusted store EBITDA margin. We want to express our sincere gratitude to our 16.9 million registered Loyalty Club members. Their continued support and patronage from our teammates, friends and the community are always the source of power, inspiring us to improve every day.

謝謝你，婷。 2023 年第三季度，我們實現了 42.7% 的年收入成長，並創下了季度收入、調整後商店 EBITDA 和調整後商店 EBITDA 利潤率的紀錄。我們向 1,690 萬忠誠俱樂部註冊會員表示誠摯的謝意。我們的隊友、朋友和社區的持續支持和惠顧始終是我們每天進步的動力來源。

We continue to pursue our goal of delivering absolute convenience for our guests, both building density in our existing cities for faster and easier service and entering new cities to serve new guests. Some of the cities we entered in the third quarter include Yibin, Handan, and Lanzhou, et cetera.

我們繼續追求為客人提供絕對便利的目標，既在現有城市增加密度以提供更快、更輕鬆的服務，又進入新城市為新客人提供服務。我們第三季進入的一些城市包括宜賓、邯鄲、蘭州等。

Continuing our strong track record, these new city openings were highly successful. We generated RMB 97,000, 93,000 and 92,000 in sales on opening days of our first doors in Yibin, Handan, and Lanzhou, respectively. Another key pillar of our strategy is continuous innovation, and this quarter was no exception.

這些新城市的開幕延續了我們強勁的業績記錄，並取得了巨大成功。宜賓、邯鄲和蘭州首家門市開幕當天的銷售額分別為 97,000 元、93,000 元和 92,000 元。我們策略的另一個關鍵支柱是持續創新，本季也不例外。

We launched 21 new beverages and 11 new food products in Q3 2023. Some hero products have emerged from this recent batch of innovations, including buffalo milk latte, which has sold 528,000 cups during the quarter. From our rigorous new product development process and subsequent guest surveys, we know this product is popular for its smooth and light mouthfeel with high protein percentage.

我們在 2023 年第三季推出了 21 種新飲料和 11 種新食品。最近這批創新中出現了一些英雄產品，其中包括水牛牛奶拿鐵，該產品在本季度已售出 528,000 杯。從我們嚴格的新產品開發流程和隨後的客人調查中，我們知道該產品因其光滑、輕盈的口感和高蛋白質含量而廣受歡迎。

We have continued to develop our successful cold brew platform, and we have sold more than 4 million cups of cold brew during the quarter. A key driver of that growth was our watermelon cold brew series using 100% single origin watermelon juice, which has been popular with our guests.

我們繼續開發成功的冷萃咖啡平台，本季我們已售出超過 400 萬杯冷萃咖啡。這一增長的關鍵驅動力是我們使用 100% 單一來源西瓜汁的西瓜冷萃系列，該系列深受我們的客人歡迎。

Our strategy of driving guests visits during off peak coffee hours and using food as a key differentiator is bearing good results. The percentage of orders with food increased from 43.8% in Q3 2022 to 54.5% in Q3 2023.

我們在咖啡非高峰時段吸引客人光顧並利用食物作為關鍵差異化因素的策略取得了良好的效果。食品訂單比例從 2022 年第三季的 43.8% 上升至 2023 年第三季的 54.5%。

Touching again on hero products, we should mention our bagel platform. We have launched a combo bagel and blue coffee campaign in Q3 with significant success. We have sold more than 7 million bagels so far during the course of the campaign.

再次談到英雄產品，我們應該提到我們的百吉餅平台。我們在第三季推出了百吉餅和藍色咖啡組合活動，並取得了巨大成功。到目前為止，我們在活動期間已售出超過 700 萬個百吉餅。

In September, we launched the smile bagel-blueberry series, made up of real blueberry, cream cheese, and oat milk. Shaped to look like a smile, which generates significant buzz among our guests and on social media. Despite its launch towards the end of the quarter, we sold 236,000 units in Q3. The digital realm remains a crucial part of our business as our e-commerce and retail sales grew by 123.3% from RMB 9 million in Q3 2022 to RMB 20.1 million in Q3 2023.

9月，我們推出了微笑百吉餅-藍莓系列，由真正的藍莓、奶油乳酪、燕麥奶組成。形狀看起來像一個微笑，在我們的客人和社交媒體上引起了極大的關注。儘管該產品是在本季末推出的，但我們在第三季售出了 236,000 台。數位領域仍然是我們業務的重要組成部分，我們的電子商務和零售額從 2022 年第三季的 900 萬元人民幣成長到 2023 年第三季的 2,010 萬元人民幣，成長了 123.3%。

We also continue driving growth through new retail channels like co-branded coffee products and at home coffee products, such as Tim's and Otterly's [ph] ready to drink coffee, packaged liquid coffee, and liquid freeze dry coffee products.

我們也持續透過聯名品牌咖啡產品和家庭咖啡產品等新零售通路推動成長，例如 Tim's 和 Otterly's [ph] 即飲咖啡、包裝液體咖啡和液體凍乾咖啡產品。

Throughout the summer season, which forcing our Q3, we execute a series of fresh new products. That being supported by exciting marketing campaigns and ample resources to capture increased market opportunities and gain attention from the younger population.

在整個夏季，也就是第三季度，我們推出了一系列新鮮的新產品。這得到了令人興奮的行銷活動和充足資源的支持，以抓住更多的市場機會並吸引年輕人的注意。

More specifically, we are introducing a new beverage or food product at least every two to three weeks. These are all designed to attract new customers while keeping our loyal customers coming back.

更具體地說，我們至少每兩到三週就會推出一種新的飲料或食品。這些都是為了吸引新客戶，同時留住我們的忠實客戶。

Last but not least, let me touch briefly on Popeyes. In August, we brought this fantastic brand to China in a first day launch that set a record for the brand in the world. No other country in the world has had as many first day guests as we welcomed, over 1,750 of them. We continue to build on this strength.

最後但並非最不重要的一點是，讓我簡單介紹一下 Popeyes。八月，我們將這個出色的品牌帶到中國，首日上市就創下了品牌的全球紀錄。世界上沒有其他國家像我們一樣迎來如此多的首日賓客，人數超過 1,750 人。我們將繼續鞏固這項優勢。

And since the grand opening of our first Popeyes restaurant in Shanghai on August 19, we have added another six stores at primary locations in Shanghai thus far, and are on track to open a total of 10 stores by year end. Popeyes' innovative, locally relevant menu, appealing store design and environment, and warm guest experience have been highly recognized by many customers, as evidenced by over 29,000 average daily sales per store year to date.

自 8 月 19 日在上海盛大開幕第一家 Popeyes 餐廳以來，我們已在上海主要地點新增了 6 家門市，並預計在年底前開設 10 家門市。 Popeyes 創新的在地化菜單、吸引人的店面設計和環境以及溫馨的賓客體驗得到了眾多顧客的高度認可，今年至今每店日均銷售額超過 29,000 份就證明了這一點。

At this time, I would like to turn it over to our CFO, Mr. Albert Li to discuss our Q3, 2023 financial performance in more detail. Albert?

這次，我想請我們的財務長李偉先生更詳細地討論我們 2023 年第三季的財務表現。阿爾伯特？

Thank you, Yongchen. As said earlier, total revenues grew by 42.7% year-over-year to a record RMB 436.4 million. The growth was primarily driven by an increase in the number of system-wide stores from 486 as of September 30th, 2022 to 763 as of September 30th, 2023.

謝謝你，永辰。如前所述，總收入年增 42.7%，達到創紀錄的 4.364 億元。這一增長主要是由於全系統門市數量從截至2022年9月30日的486家增加到截至2023年9月30日的763家。

As we scale our business, we have demonstrated meaningful expansion in store profitability and leverage in general and administrative expenses during Q3 2023 with adjusted store EBITDA margin and adjusted general and administrative expenses as a percentage of total revenues, improving by 2.2 percentage points and 1.3 percentage points year-over-year, respectively.

隨著我們業務規模的擴大，我們在2023 年第三季度展示了商店盈利能力以及一般和管理費用槓桿率的顯著擴張，調整後的商店EBITDA 利潤率以及調整後的一般和管理費用佔總收入的百分比分別提高了2.2 個百分點和1.3 個百分點分別較去年同期成長 10 點。

Overall, monthly average transacting customers were 3.4 million during Q3 2023, representing an increase of 75.3% from 1.9 million in the same quarter of 2022. Overall, ticket count was 57.2% higher year-over-year driven by the rise in both dine in and delivery and take away orders.

總體而言，2023 年第三季的月平均交易客戶數為 340 萬，較 2022 年同一季度的 190 萬增長了 75.3%。總體而言，由於用餐人數增長，門票數量同比增長 57.2%。以及送貨和帶走訂單。

We continue to strengthen our digital capabilities to meet the growing demand for delivery and take away services, digital orders as a percentage of total orders increased from 79.8% in Q3 2022 to 82.6% in Q3 2023, while our delivery and take away orders, including those from Meituan, Ullama [ph], and our own WeChat mini program increased by 62.7% in Q3 2023 from the same quarter of 2022.

我們持續加強數位化能力，以滿足日益增長的配送和外送服務需求，數位訂單佔總訂單的比例從2022 年第三季的79.8% 上升至2023 年第三季的82.6%，而我們的配送和外賣訂單包括2023 年第三季度，來自美團、Ullama [ph] 和我們自己的微信小程式的流量較 2022 年同季度增長了 62.7%。

Concurrently, we have attracted more dying customers to enjoy our welcoming environment as the number of dying customers increased by 52.0% from the same quarter of 2022. Our food and packaging costs as a percentage of revenues from company owned and operated stores increased by 1.9 percentage points from 33.3% in Q3 2022 to 35.2% in Q3 2023, since we offered higher discounts and more promotional activities to attract the customers.

同時，我們吸引了更多臨終顧客來享受我們溫馨的環境，臨終顧客數量較 2022 年同季度增加了 52.0%。我們的食品和包裝成本占公司自營和經營商店收入的百分比增加了 1.9%由於我們提供了更高的折扣和更多的促銷活動來吸引客戶，從2022 年第三季的33.3% 上升到2023 年第三季的35.2%。

Our rental and property management fee as a percentage of revenues from company owned and operated stores increased by 4.2 percentage points from 15.6% in Q3 2022 to 19.8% in Q3 2023. This is primarily due to the one-time rent concessions that we received during the third quarter of 2022.

我們的租金和物業管理費占公司擁有和經營的商店收入的百分比從2022 年第三季的15.6% 上升4.2 個百分點至2023 年第三季的19.8%。這主要是由於我們在2023 年第三季度獲得的一次性租金優惠。2022 年第三季。

Payroll and employee benefits as a percentage of revenues from company owned and operated stores decreased by 2.5 percentage points from 22.8% in Q3 2022 to 20.3% in Q3 2023. This was primarily due to the continuous refinement of the staffing arrangement of our store operation. Personnel and optimization of our labor structure, including the hiring of more part time employees with the deployment of our intelligent scheduling system.

薪資和員工福利占公司自營門市收入的百分比從2022年第三季的22.8%下降2.5個百分點至2023年第三季的20.3%。這主要是由於我們門市營運人員配置的不斷完善。人員和勞動力結構的最佳化，包括透過部署智慧調度系統來僱用更多兼職員工。

Delivery cost as a percentage of revenues from company owned and operated stores increased by 0.6 percentage points from 8.1% in the third quarter of 2022 to 8.7% in the same quarter of 2023. Other operating expenses as a percentage of revenues from company owned and operated stores decreased by 3.9 percentage points from 13.1% in Q3 2022 to 9.1% in Q3 2023. This was due to our continuous efforts to optimize our cost structure and drive operating leverage through revenue growth and store network expansion.

配送成本占公司擁有和經營的商店收入的百分比從 2022 年第三季度的 8.1% 上升了 0.6 個百分點，至 2023 年同季度的 8.7%。其他營運費用 占公司擁有和經營的收入的百分比門市佔比從2022 年第三季的13.1% 下降3.9 個百分點至2023 年第三季的9.1%。這是由於我們不斷努力優化成本結構，並透過營收成長和門市網路擴張來提高營運槓桿。

Marketing expense as a percentage of total revenues decreased by 0.2 percentage points from 8.1% in Q3 2022 to 7.9% in Q3 2023. Our adjusted general and administrative expenses as a percentage of total revenues decreased by 1.3 percentage points from 15.8% in Q3 2022 to 14.5% in Q3 2023. We expect our operating leverage to continue improving and our general and administrative expenses as a percentage of total revenues to decline over time.

行銷費用佔總收入的百分比從2022 年第三季的8.1% 下降0.2 個百分點至2023 年第三季的7.9%。調整後的一般和管理費用佔總收入的百分比從2022 年第三季的15.8 % 下降1.3 個百分點至2023 年第三季為 14.5%。我們預計我們的營運槓桿將繼續改善，我們的一般和管理費用佔總收入的百分比將隨著時間的推移而下降。

Turning to liquidity, as of September 30, 2023, our total cash and cash equivalents and short-term investments were RMB 461.8 million compared to RMB 611.5 million as of December 31st, 2022. The change was primarily attributable to the settlement with investors who entered into an equity support agreement with us and cash disbursements as a result of the rapid expansion of our business and store network nationwide, offset by an increase in bank borrowings.

就流動性而言，截至2023 年9 月30 日，我們的現金及現金等價物及短期投資總額為人民幣4.618 億元，而截至2022 年12 月31 日為人民幣6.115 億元。這項變更主要歸因於與進入的投資者的和解由於我們的業務和全國商店網絡的快速擴張，與我們簽訂了股權支持協議，並支付了現金，但被銀行借款的增加所抵消。

Managing our cost structure effectively is very important to us. We continue to implement various cost expenditure control and cost reduction measures targeting to achieve a shorter payback period and further optimizing our store unit economic model. Looking forward, our top near term priorities are to continue rolling over our successful store formats into more white spaces, expanding franchised store network, delivering robust revenue growth.

有效管理我們的成本結構對我們來說非常重要。我們持續實施各項成本支出控制及成本降低措施，以縮短投資回收期，進一步優化門市單位經濟模式。展望未來，我們近期的首要任務是繼續將我們成功的商店模式轉移到更多的空白空間，擴大特許經營店網絡，實現強勁的收入成長。

Improving profitability at both the store and corporate level and generating positive operating cash flows, by leveraging Tims China's strong brand recognition, along with our members growing brand loyalty and our ever growing store network. Continuous innovation in product R&D and marketing campaigns and our disciplined execution.

透過利用 Tims 中國強大的品牌知名度、會員不斷提高的品牌忠誠度以及不斷擴大的門市網絡，提高門市和企業層面的獲利能力，並產生正向的營運現金流。產品研發和行銷活動的持續創新以及我們嚴格的執行力。

We truly believe in our capability to further optimize our cost structure, improve operational efficiency and achieve profitable growth. We are sincerely thankful to our shareholders and investors for your continuous support, and we are committed to delivering long time value to our shareholders.

我們堅信我們有能力進一步優化成本結構、提高營運效率並實現獲利成長。我們衷心感謝股東和投資者的持續支持，我們致力於為股東創造長期價值。

We look forward to updating you on our progress in the coming quarters and continuing to build a bright and successful future for Tims China.

我們期待向您通報我們未來幾季的最新進展，並繼續為 Tims 中國打造光明和成功的未來。

Thank you, Yongchen and Albert.

謝謝永辰和艾伯特。

That concludes our earnings presentation for today. We thank you for your participation and look forward to providing you with regular business and financial updates again next quarter.

我們今天的收益報告到此結束。我們感謝您的參與，並期待下季度再次為您提供定期業務和財務更新。

There is no Q&A.

沒有問答。