Recent developments include earnings transcripts for Q3 2025 and earlier periods, a reverse stock split announcement, growth in franchise stores, new product launches, and financial results showing system sales growth and loyalty program expansion.

• TH International announced a reverse stock split in April 2026 to simplify its capital structure [N1].
• The company released its Q3 2025 earnings transcript in April 2026, providing updates on financial performance and operations [N2].
• An earlier earnings transcript was published in April 2026 covering prior results [N3].
• TH International reported a 3.5% year-over-year increase in system sales and growth in loyalty club membership in Q1 2025 [N6].
• The company has been expanding its franchise store network, as reported in August 2025 [N5].
• New menu offerings such as Loaded Power Bowls were launched nationwide in China to expand healthy lunch options at Tim Hortons in May 2025 [N8].
• TH International celebrated six years of Tim Hortons in China with new menu offerings and promotions in February 2025 [N4].
• The company opened its first Tim Hortons store in Nanchang, Jiangxi Province in January 2025 [N4].

The company has demonstrated the ability to grow its franchise store network and expand product offerings, such as the launch of Loaded Power Bowls nationwide in China, which may enhance customer appeal and sales. Growth in loyalty club membership indicates potential for increased customer retention and revenue. Simplification of the capital structure through warrant exchanges and a reverse stock split may improve financial flexibility. Continued operational improvements and cost management efforts could support margin stability.

TH International has reported consistent net losses and liquidity constraints, with a current ratio of 0.33 indicating limited short-term financial flexibility. The company has disclosed substantial doubt about its ability to continue as a going concern without additional capital, which may not be available on acceptable terms. Store closures and declining same-store sales have contributed to revenue decreases. The company faces risks from supply chain disruptions, pricing pressures, and regulatory complexities related to its Cayman Islands incorporation and PRC tax status. These factors may adversely impact financial performance and operational stability.

TH International's moat is primarily derived from its exclusive franchise rights to operate the Tim Hortons brand in China, a recognized international coffee and fast-food brand. The company's established store network and brand presence in a large and growing market provide competitive advantages. Additionally, its franchise model and support services create recurring revenue streams beyond direct store sales. However, the company faces competition in the fast-food and coffee retail sector and must maintain operational efficiency and brand appeal to sustain its position.

• Liquidity and Going Concern Risk: The company has disclosed substantial doubt about its ability to continue as a going concern and requires additional capital to support operations. There is uncertainty about the availability and terms of such financing.
• Operational Risks: Store closures and declining same-store sales have negatively impacted revenues. The company faces risks related to supply chain disruptions, pricing pressures, and maintaining product quality and customer appeal.
• Regulatory and Tax Risks: Complex tax considerations arise from the company's Cayman Islands incorporation and potential PRC resident enterprise status, which could result in withholding taxes and other tax liabilities. Changes in tax laws or interpretations may affect the company's financial position.

• TH International Ltd operates primarily in China, managing the Tim Hortons brand in that market.
• The company generates the majority of its revenue from sales of food, beverage, and packaged products through company owned and operated stores, which accounted for 81.2% of total revenues in 2025.
• Franchise fees and other franchise support activities contribute to revenue, with franchise fees at 2.8% and other franchise support activities at 14.9% of total revenues in 2025.
• The company has been closing underperforming company owned stores, reducing the number from 576 in 2024 to 562 in 2025, which contributed to a 5.4% decrease in total revenues from 2024 to 2025.
• System sales increased by 3.5% year-over-year in Q1 2025, alongside growth in loyalty club membership.
• TH International launched new menu items such as Loaded Power Bowls nationwide in China to expand healthy lunch options at Tim Hortons.
• The company announced a reverse stock split in April 2026.
• Financial figures for the year ended December 31, 2025 include revenue of approximately RMB 1.32 billion (US$188.2 million) and a net loss of RMB 435.8 million (US$62.3 million).
• Basic and diluted earnings per share were negative at -13.36 CNY per share for 2025.
• Liquidity ratios as of December 31, 2025 show a current ratio of 0.33 and a cash ratio of 0.49, indicating limited short-term liquidity.
• Cash and cash equivalents were RMB 121.8 million as of December 31, 2025.
• The company has reported substantial doubt about its ability to continue as a going concern and requires additional capital to support operations.
• TH International completed a business combination with Silver Crest in 2022 and has since been operating as a public company on Nasdaq.
• The company completed an exchange offer in 2023 to eliminate outstanding warrants, simplifying its capital structure.
• Operating losses have been partially offset by non-cash adjustments such as depreciation, impairment losses, and changes in fair value of convertible notes and other liabilities.
• The company has been actively managing costs and expenses, including store closures and operational efficiencies, to mitigate margin pressure.
• The company faces risks related to supply chain disruptions, pricing pressures, and the need to maintain or increase prices to sustain margins.
• The company is incorporated in the Cayman Islands and benefits from tax concessions there, but faces complex tax considerations related to PRC and U.S. tax laws.