Episode Details

Tims China (THCH) Q2 2026 — Tims China furnished its Q2 2026 results on a 6-K accepted 06:52:55 ET on Tuesday August 18 (EDGAR filing-index page), with the call at 8:00am ET - a BEFORE-THE-OPEN print, so Tuesday Aug 18 is the reaction session and it is fully settled. The shares closed USD1.38 against Monday's USD1.70, DOWN 18.82 pct close to close, the 3rd worst of 974 sessions since it began trading as Tims China in September 2022, on 7,802 shares - just 1.00x its own 20-session median. The next session fell a further 7.97 pct to USD1.27 on 48,520 shares, a new twelve-month low. Two sessions: minus 25.29 pct. TH International Limited (Nasdaq: THCH), which trades as Tims China, is the exclusive master franchisee of Tim Hortons coffee shops in mainland China, Hong Kong and Macau. It is a Cayman Islands company headquartered in Shanghai, reports under US GAAP in renminbi, and had 1,028 system-wide stores at 30 June 2026 - 544 company-owned and 484 franchised - with 37.1 million registered loyalty club members. Kwok Wah Cheung became chief executive on 15 June 2026. The brand is licensed from Tim Hortons Restaurants International GmbH under a master development agreement running to 2038. THE CALL: SELL (3/5, MEDIUM - A RESIDUAL CLAIM BEHIND USD222.7M OF PRIOR CLAIMS, WITH A CONVERSION PRICE AS ITS CEILING) — base-case value ~$0.65 vs ~$1.27 today. KEY METRICS: - Q2 2026 total revenues RMB273.4M (USD40.3M), down 21.7 pct; company-owned store revenue RMB220.9M, down 21.6 pct; other revenues RMB52.5M, down 21.7 pct; system sales RMB347.8M, down 15.1 pct; adjusted corporate EBITDA a RMB21.0M LOSS against a RMB2.2M profit a year earlier; net loss RMB97.4M; basic and diluted loss per ordinary share RMB3.00 versus RMB2.32, and RMB1.69 on the company's own adjusted basis. - Operating data: system-wide same-store sales minus 17.8 pct, after minus 13.2 pct in Q1 and minus 4.8 pct a year earlier; orders at company-owned stores 10.5 million to 8.3 million, down 20.7 pct, on an average ticket down only 0.9 pct; 2 net new stores (15 made-to-order opened, 13 older-format closed); 1,028 system-wide stores versus 1,015; loyalty club members 37.1 million, up 41.7 pct. - Capital structure at 30 June 2026: convertible notes carried at RMB1,183.7M (USD174.5M) against a USD42.2M market value of the equity; bank borrowings RMB448.4M, all current; lease liabilities RMB345.1M; cash and restricted cash RMB121.1M; total shareholders DEFICIT RMB1,406.7M. Net debt USD222.7M is 5.3x the equity; enterprise value USD264.9M is 1.50x trailing revenue of USD176.4M. What to watch: The Q2 2026 6-K accepted 06:52:55 ET on 18 August 2026, read against the 2025 Form 20-F filed 30 April 2026. Notes 15 and 17 of that 20-F set out a convertible stack of USD166.3M of principal - USD45.0M Series A, USD15.74M Series A-1, USD89.9M senior secured and USD15.62M drawn in July 2026 - all convertible at USD2.7822 a share into 59.77 million ordinary shares against 33.24 million outstanding, and all held by the brand owner, Cartesian and Sona. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.