Ladies and gentlemen, welcome to TH International Limited's Second Quarter 2023 Earnings Presentation. My name is Ting Zhou, Head of Investor Relations. TH International Limited announced its second quarter 2023 financial results earlier today. 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. Today, you will hear from Yongchen Lu, our CEO and Director, and Mr. Albert Li, our CFO. You 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. 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 risks and uncertainties and our actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and risk factors included in our filing with the SEC. This presentation also includes certain non-GAAP financial measures which we believe can be helpful in evaluating our performance. 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. With that said, I would now like to turn it over to Mr. Yongchen Lu, our CEO and Director. Please go ahead.

Thank you Ting. We are very pleased with our accomplishments during Q2 2023 and believe that the Tims China brand has never been stronger. On the top line, we delivered 129.7% year-over-year growth, achieving a record quarterly revenue of over RMB 400 million. This was driven both by new store openings and continued strong same-store traffic and sales growth. We also benefited greatly from the rapid growth of our loyalty club, which now totals 14.7 million registered members, representing 95.4% year-over-year growth. We continue to pursue profitable growth. We have achieved positive store level EBITDA continuously and have increased store level EBITDA by 31.6 percentage points from Q2 2022 to 5% in Q2 2023. From a store development standpoint, we continue to build density in our existing cities while also penetrating new cities such as Shenyang, Yantai, Changzhou, et cetera. To highlight some of the new cities we entered recently, on the opening days of our first stores in Shenyang, Yantai and Changzhou, we generated RMB 163,000, RMB 204,000, and RMB 68,000 in sales, respectively, while scoring 132 million, 102 million and 4 million media impressions, respectively. We are also achieving greater capital efficiency via increasing franchise development, notably through the rapid expansion of Tims Express, our most compact store format. This is enabling us to enter into meaningful partnerships with reputable companies like Sinopec Easy Joy, Century 21, Ling Ka, and Haier Sanyiniao, which have contributed to our network expansion. On new product launches, Watermelon Cold Brew [Foreign Language], Grape Cold Brew [Foreign Language], Grape Iced Capp [Foreign Language], Watermelon Coconut Water [Foreign Language], and Cinnamon Roll [Foreign Language] were among our best-selling products during the quarter, demonstrating our ability to innovate and launch offerings that strongly appeal to our customers. Recall also that our differentiated and highly successful…

Thank you, Yongchen. As said earlier, total revenues grew by 129.7% year-over-year to a record RMB 411.7 million. The growth was primarily driven by an increase in the number of system-wide stores from 440 as of June 30, 2022, to 700 as of June 30, 2023, and a 20.4% quarterly same-store sales growth for company owned and operated stores. Overall monthly average transacting customers were 2.8 million during the second quarter of 2023, representing an increase of 167.2% from 1.0 million in the same quarter of 2022. Overall ticket count was 181.3% higher year-over-year, driven by the rise in both dine in and delivery and takeaway orders. We continue to strengthen our digital capabilities to meet the growing demand for delivery and takeaway services. Digital orders as a percentage of total orders increased from 80.2% in the second quarter of 2022 to 80.6% in the second quarter of 2023 while our delivery and takeaway orders, including those from Meituan, Eleme and our own WeChat mini-program, increased by 182.9% in the second quarter of 2023 from the same quarter of 2022. Concurrently, we have attracted more dine-in customers to enjoy our welcoming environment, as the number of dine-in customers increased by 193.9% from the same quarter of 2022. As we continue to scale, we have also demonstrated meaningful expansion in store profitability and leverage in general and administrative expenses. Adjusted store EBITDA margin and adjusted corporate EBITDA margin improved by 31.6 percentage points and 56.1 percentage points year-over-year, respectively. Our food and packaging costs as a percentage of revenues from company owned and operated stores decreased by 1.8 percentage points from 35.8% in Q2 2022 to 34.0% in Q2 2023 as we continued to benefit from greater economies of scale and higher efficiencies in our supply chain. We expect further cost…

Thank you, Yongchen and Albert. 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.