Note 9 – Short-term Borrowings

To fund the Pizza Hut Acquisition, the Company entered into a bridge credit agreement with certain financial institutions (the “Credit Agreement”). The Credit Agreement provides for a senior term loan facility denominated in the offshore Renminbi (“CNH”) in the amount of CNH8,400 million, bearing an annual interest rate of approximately 1.9% and due up to twelve months from its issuance date (the “Bridge Loan”). The Credit Agreement contains customary covenants, including certain financial covenants. As of September 30, 2026, the Company was in compliance with all such covenants.

From time to time, we had outstanding short-term bank borrowings to manage working capital at our operating subsidiaries. The bank borrowings were denominated in Chinese Renminbi (“RMB”) and were due within one year from their issuance dates.

As of September 30, 2026 and December 31, 2025, the weighted average interest rate on short-term borrowings outstanding was 1.8% and 1.5% per annum, respectively.