2023 Q4 Form 20-F Financial Statement

#000121390024037450 Filed on April 30, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022 Q4
Revenue 1.576B cnies $301.5M
YoY Change 55.85%
Cost Of Revenue 149.7M cnies $111.6M
YoY Change -58.77% 42.83%
Gross Profit 1.426B cnies $189.9M
YoY Change 120.09% 30.2%
Gross Profit Margin 90.5% 62.99%
Selling, General & Admin 445.8M cnies $292.4M
YoY Change -54.76% 34.7%
% of Gross Profit 31.26% 153.96%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization 165.9M cnies $133.4M
YoY Change 24.36% 79.6%
% of Gross Profit 11.63% 70.25%
Operating Expenses 445.8M cnies $319.5M
YoY Change -63.25% 20920.94%
Operating Profit -701.2M cnies -$129.6M
YoY Change 20.65% -189.8%
Interest Expense 20.43M cnies -$91.52M
YoY Change 37.97% 2118362.96%
% of Operating Profit
Other Income/Expense, Net 121.4M cnies $35.95M
YoY Change 1355.83% 2717.41%
Pretax Income -872.8M cnies -$222.9M
YoY Change 17.2% 89723.58%
Income Tax 97.24K cnies $0.00
% Of Pretax Income
Net Earnings -876.3M cnies -$223.9M
YoY Change 17.99% 90121.75%
Net Earnings / Revenue -55.61% -74.26%
Basic Earnings Per Share -$5.68
Diluted Earnings Per Share -$5.68 -$3.34
COMMON SHARES
Basic Shares Outstanding 165.9M shares 154.2M shares 149.2M
Diluted Shares Outstanding 154.2M shares

Balance Sheet

Concept 2023 Q4 2023 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $611.5M
YoY Change 162524.84%
Cash & Equivalents 203.6M cnies $239.1M
Short-Term Investments $372.4M
Other Short-Term Assets 15.05M cnies $13.34M
YoY Change 12.79% 30683.27%
Inventory 50.72M cnies $71.47M
Prepaid Expenses 5.977M cnies 11.58M cnies
Receivables 27.56M cnies $5.617M
Other Receivables $79.88M
Total Short-Term Assets 458.6M cnies $796.8M
YoY Change -42.44% 189920.41%
LONG-TERM ASSETS
Property, Plant & Equipment 691.9M cnies $720.0M
YoY Change -3.91% 29.97%
Goodwill
YoY Change
Intangibles 147.4M cnies $96.02M
YoY Change 53.56% 23.75%
Long-Term Investments
YoY Change
Other Assets 68.42M cnies $82.27M
YoY Change -16.84% 22.22%
Total Long-Term Assets 1.757B cnies $1.845B
YoY Change -4.79% 434.68%
TOTAL ASSETS
Total Short-Term Assets 458.6M cnies $796.8M
Total Long-Term Assets 1.757B cnies $1.845B
Total Assets 2.215B cnies $2.642B
YoY Change -16.15% 664.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable 224.8M cnies $105.7M
YoY Change 112.78% 52.8%
Accrued Expenses $323.9M
YoY Change 6374.97%
Deferred Revenue 40.71M cnies $22.12M
YoY Change 84.04% 56.57%
Short-Term Debt 527.4M cnies $386.8M
YoY Change 36.33%
Long-Term Debt Due 10.86M cnies $20.99M
YoY Change -48.24% 577.89%
Total Short-Term Liabilities 1.396B cnies $1.318B
YoY Change 5.88% 26255.81%
LONG-TERM LIABILITIES
Long-Term Debt 16.13M cnies $362.9M
YoY Change -95.56%
Other Long-Term Liabilities 8.896M cnies $7.920M
YoY Change 12.33% -50.45%
Total Long-Term Liabilities 1.242B cnies $1.213B
YoY Change 2.36% 7492.14%
TOTAL LIABILITIES
Total Short-Term Liabilities 1.396B cnies $1.318B
Total Long-Term Liabilities 1.242B cnies $1.213B
Total Liabilities 2.638B cnies $2.532B
YoY Change 4.19% 7557.99%
SHAREHOLDERS EQUITY
Retained Earnings -2.256B cnies -$1.380B
YoY Change 63.48% 116.46%
Common Stock 9.733K cnies $8.616K
YoY Change 12.96% 14.93%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares $8.243M
Shareholders Equity -427.2M cnies $108.9M
YoY Change
Total Liabilities & Shareholders Equity 2.215B cnies $2.642B
YoY Change -16.15% 664.64%

Cashflow Statement

Concept 2023 Q4 2023 2022 Q4
OPERATING ACTIVITIES
Net Income -876.3M cnies -$223.9M
YoY Change 17.99% 90121.75%
Depreciation, Depletion And Amortization 165.9M cnies $133.4M
YoY Change 24.36% 79.6%
Cash From Operating Activities -196.1M cnies -$96.10M
YoY Change -31.66% 47807.46%
INVESTING ACTIVITIES
Capital Expenditures 292.4M cnies $334.9M
YoY Change -12.7% -199.88%
Acquisitions
YoY Change
Other Investing Activities $241.2M
YoY Change
Cash From Investing Activities 60.00M cnies -$93.74M
YoY Change -108.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net 0.000 cnies
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 80.83M cnies 37.08M
YoY Change -90.23%
NET CHANGE
Cash From Operating Activities -196.1M cnies -96.10M
Cash From Investing Activities 60.00M cnies -93.74M
Cash From Financing Activities 80.83M cnies 37.08M
Net Change In Cash -35.49M cnies -152.8M
YoY Change -76.61% 76051.07%
FREE CASH FLOW
Cash From Operating Activities -196.1M cnies -$96.10M
Capital Expenditures 292.4M cnies $334.9M
Free Cash Flow -488.5M cnies -$431.0M
YoY Change -21.45% -228.62%

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CY2023Q4 us-gaap Contingent Consideration Classified As Equity Fair Value Disclosure
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LegalFees
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CY2023 us-gaap Use Of Estimates
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<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Use of Estimates</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions including the incremental borrowing rate, net realizable value of inventories, fair value of long-lived assets, share-based compensation arrangements, earn-in shares, earn-out shares, liability-settled share-based payment to non-employee, ESA derivative liabilities, warrant liabilities, convertible notes and Deferred Contingent consideration.</p>
CY2023 us-gaap Concentration Risk Credit Risk
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<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Risks and Concentration</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Foreign exchange risk</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As the Company’s principal activities are carried out in PRC, the Company’s transactions are mainly denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions involving RMB must take place through the People’ Bank of China or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the People’ Bank of China that are determined largely by supply and demand.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The management does not expect that there will be any significant currency risk for the Company during the reporting periods.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Concentration of credit risk</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company’s credit risk primarily arises from cash and cash equivalents, time deposits, short-term investments, prepaid expenses and other current assets and accounts receivable. The bank deposits, including term deposits, with financial institutions in the mainland of the PRC and Hong Kong Special Administrative Region (“HKSAR”) are insured by the government authorities up to RMB500,000 and <span style="-sec-ix-hidden: hidden-fact-216">HKD500,000</span>, respectively. Total bank deposits are insured by the government authority with amounts up to RMB17,207,785 and RMB11,631,710 as of December 31, 2023 and December 31, 2022, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company expects that there is no significant credit risk associated with the cash and cash equivalents, time deposits and short-term investments which are held by reputable financial institutions. The Company believes that it is not exposed to unusual risks as these financial institutions have high credit quality.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company has no significant concentrations of credit risk with respect to its prepaid expenses and other current assets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Accounts receivable are unsecured and are primarily derived from revenue earned from sub-franchisees and wholesale customers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Concentration of operating risk</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company owns, operates and franchises stores in the PRC, including Hong Kong and Macau under the “Tim Hortons” and “Popeyes” brand. Such business activities are solely dependent upon its master development agreement with THRI. The Company’s failure to comply its master development agreement with THRI would have a material adverse effect on its financial condition, results of operations, and cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
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