Ladies and gentlemen, welcome to TH International Limited Third Quarter 2020 Earnings Presentation. My name is Ting Zhou, Head of Investor Relations. TH International Limited announced its third 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 Mr. Yongchen Lu, our CEO & 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 filings 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 & Director. Please go ahead.

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, the continuous support and patronage from our Timmies friends and community are always the source of power inspiring us to improve every day. 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. Continuing our strong track record, these new city openings were highly successful, we generated RMB 97,000, RMB 93,000, and RMB 92,000 in sales on the opening days of our first stores in Yibin, Handan and Lanzhou, respectively. Another key pillar of our strategy is continuous innovation, and this quarter was no exception. 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 mouth feel, with high protein percentage. We've 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. Our strategy of driving guest visits during off-peak coffee hours and using food as a key differentiator is bearing good results.…

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 30, 2022, to 763 as of September 30, 2023. 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. 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 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 79.8% in Q3 2022 to 82.6% in Q3 2023, while our delivery and takeaway orders, including those from Meituan, Eleme and our own WeChat mini-program, increased by 62.7% in Q3 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 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 customers. 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…

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.