? Annual Report Pursuant To Section 13 or 15 (D) of The Securities EXCHANGE ACT OF 1934 For The Fiscal Year Ended December 31, 2018

Yum China Holdings, Inc.
10-K
02/27/2019
FORM 10-K
? ANNUAL REPORT PURSUANT TO SECTION 13 OR

15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the fiscal year
ended December 31, 2018
OR
? TRANSITION REPORT PURSUANT TO SECTION

13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
____________________________
Created by Morningstar Document Research.
http://documentresearch.morningstar.com/
10-K
02/27/2019
Delaware 81-2421743
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
7100 Corporate Drive Yum China Building

Plano, Texas 75024 20 Tian Yao Qiao Road
United States of America Shanghai 200030
People?s Republic of China
____________________________
10-K
02/27/2019
Securities registered pursuant to Section

12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered

Common Stock , par v New York Stock Exchange
Securities registered pursuant to Section

12(g) of the Act:
None
____________________________
10-K
02/27/2019
Large accelerated filer: ? Accelerated filer: ?

Non-accelerated filer: ? Smaller reporting company: ?
Emerging growth company: ?
____________________________
10-K
02/27/2019
Table of Contents
Page
PART I
Item 1. Business 3
Executive Officers of the Registrant 14
Item 1A. Risk Factors 16
Item 1B. Unresolved Staff Comments 56
Item 2. Properties 56
Item 3. Legal Proceedings 56
Item 4. Mine Safety Disclosures 56
PART II
Item 5. Market for Registrant?s Common Equity, 57
Related Stockholder Matters and Issuer
Purchases of Equity Securities
Item 6. Selected Financial Data 60
Item 7. Management?s Discussion and Analysis 63
of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures 90
About Market Risk
Item 8. Financial Statements and Supplementary 92
Data
Item 9. Changes in and Disagreements With Accountants 147
on Accounting and Financial Disclosure
Item 9A. Controls and Procedures 147
Item 9B. Other Information 147
PART III
Item 10. Directors, Executive Officers and Corporate 148
Governance
Item 11. Executive Compensation 148
Item 12. Security Ownership of Certain Beneficial 148
Owners and Management and Related Stockholder
Matters
Item 13. Certain Relationships and Related Transactions, 148
and Director Independence
Item 14. Principal Accountant Fees and Services 148
PART IV
Item 15. Exhibits and Financial Statement Schedules 149
Item 16. Form 10-K Summary 154
Signatures 155
____________________________
10-K
02/27/2019
Executive Officers of the Registrant
Name Age Title

Joey Wat 47 Chief Executive Officer
Jacky Lo 41 Chief Financial Officer and Treasurer
Shella Ng 53 Chief Legal Officer and Corporate Secretary
Danny Tan 49 Chief Supply Chain Officer
Aiken Yuen 59 Chief People Officer
Johnson Huang 56 General Manager, KFC
Jeff Kuai 38 General Manager, Pizza Hut
Ted Lee 52 General Manager, Little Sheep and East
Dawning
Angela Ai 65 Chief Development Officer
Alice Wang 49 Chief Public Affairs Officer
Xueling Lu 45 Controller and Principal Accounting Officer
____________________________
10-K
02/27/2019
2018 Form 10-K
Period Total Number of Average Price Paid

Shares Purchased Per Share
(thousands)
10/1/18-10/31/18 3,389 $32.59

11/1/18-11/30/18 136 $34.84
12/1/18-12/31/18 897 $33.53
Cumulative total 4,422 $32.85
____________________________
age Price Paid Total Number of Shares
Share Purchased as Part of
Publicly Announced
Plans or Programs
(thousands)
$32.59 3,389
$34.84 136
$33.53 897
$32.85 4,422
Approximate Dollar Value of Shares that
May Yet Be Purchased under the
Plans or Programs
(millions)
$995
$990
$960
$960
10-K
02/27/2019
Stock Performance Graph
10/17/2016 12/31/2016
YUMC $100 $0
S&P China BMI $100 $0
MSCI Asia APEX 50 $100 $0
____________________________
1/2016 3/31/2017
$0 102 $0
$0 95 $0
$0 96 $0
6/30/2017
106 $0
106 $0
108 $0
9/30/2017
154 $0 156
115 $0 131
120 $0 129
12/31/2017
$0 156
$0 141
$0 139
3/31/2018 6/30/2018
$162 $
$144 $
$139 $
/2018 9/30/2018
$150 $137
$139 $128
$132 $128
12/31/2018
$131
$114
$113
10-K
02/27/2019
For the Years Ended December 31,

7/10/1905
Consolidated and Combined Statements
of Income (Loss) Data:
Revenues
Company sales $7,633
Franchise fees and income 141
Revenues from transactions with 603
franchisees and unconsolidated affiliates
Other revenues 38
Total revenues 8,415
Costs and Expenses, Net
Company restaurants
Food and paper 2,326
Payroll and employee benefits 1,714
Occupancy and other operating expenses 2,394
Company restaurant expenses 6,434
General and administrative expenses 456
Franchise expenses 71
Expenses for transactions with 595
Other operating costs and expenses 29
Closures and impairment expenses, net 41
Other income, net (152)
Total costs and expenses, net 7,474
Operating Profit 941
Interest income, net 36
Investment loss (27)
Changes in fair value of financial instruments -
Income Before Income Taxes 950
Income tax provision (214)
Net income (loss) - including noncontrolling 736
interests
Net income (loss) - noncontrolling interests 28
Net Income (Loss) - Yum China Holdings, 708
Inc.
Basic Earnings (Loss) Per Common Share 1.84
Diluted Earnings (Loss) Per Common Share 1.79
Cash Dividends Declared Per Common Share 0.42
Consolidated and Combined Cash Flow Data:
Net cash provided by operating activities $1,333
Capital spending 470
Consolidated and Combined Balance Sheet
Data:
Total assets $4,610
Property, plant and equipment, net 1,615
Total Equity - Yum China Holdings, Inc. 2,873
Other Data:
Adjusted Diluted Earnings Per Common Share (a) $1.53
Number of stores at year-end
Company 6,832
Unconsolidated Affiliates 811
Franchisees 841
Total 8,484
Total Company system sales growth (decline) (b)
Reported 7 %
Local currency (c) 5 %
KFC system sales growth (decline) (b)
Reported 10 %
Local currency (c) 7 %
Pizza Hut system sales growth (decline) (b)
Reported 1 %
Local currency (c) (1) %
____________________________
ded December 31,
7/9/1905 7/8/1905 7/7/1905
$6,993 $6,622 $6,789

141 129 120
599 299 -
36 25 -
7,769 7,075 6,909
2,034 1,921 2,159

1,543 1,432 1,386
2,245 2,259 2,386
5,822 5,612 5,931
495 429 395
71 72 70
592 295 -
28 15 -
47 78 64
(64) (60) (39)
6,991 6,441 6,421
778 634 488
25 11 8
- - -
- 21 -
803 666 496
(379) (156) (168)
424 510 328
26 12 5
398 498 323
1.03 1.35 0.89

1.00 1.35 0.89
0.10 - -
$884 $866 $913

415 436 512
$4,287 $3,750 $3,201

1,691 1,647 1,841
2,765 2,367 1,921
$1.40 $1.27 $0.92
6,307 6,008 5,768

891 836 796
785 718 612
7,983 7,562 7,176
6 % (1) % - %
8 % 5 % 2 %
7 % - % (2) %
9 % 6 % - %
5 % (2) % 9 %
7 % 4 % 11 %
7/6/1905
$6,821
113
-
-
6,934
2,207
1,407
2,415
6,029
389
64
-
-
517
(68)
6,931
3
14
-
-
17
(54)
(37)
(30)
(7)
(0.02)
(0.02)
-
$777
525
$3,257
2,001
1,888
$0.98
5,417
757
541
6,715
1 %
1 %
(1) %
(1) %
11 %
12 %
10-K
02/27/2019
2018 Form 10-K
Year to date highlights:

% Change
System Sales (a) Same-Store Sales (
KFC +7 +2
Pizza Hut (1) (5)
All Other Segments (24) (7)
Total +5 +1
____________________________
Net New Units Operating Profit Operating Profit
(Reported) (Ex F/X)
+8 +11 +8
+2 (38) (41)
+7 (9) (16)
+6 +21 +16
10-K
02/27/2019
2018 Form 10-K
Year
7/10/1905
franchisees and unconsolidated
affiliates
Other revenues 38
Total revenues $8,415
Restaurant profit $1,199
Restaurant margin % 15.70 %
Operating Profit $941
Changes in fair value of financial -
instruments
Net income - including noncontrolling 736
interests
Net income - noncontrolling interests 28
Net Income -Yum China Holdings, Inc. $708
Diluted Earnings Per Common Share $1.79
Effective tax rate 22.60 %
Adjusted Operating Profit $855
Adjusted Net Income $606
Adjusted Diluted Earnings Per Common Share $1.53
Adjusted Effective Tax Rate 26.50 %
Adjusted EBITDA $1,340
____________________________
% B/(W) (a)
7/9/1905 7/8/1905 Reported

$6,993 $6,622 9
141 129 1
599 299 1
36 25 4
$7,769 $7,075 8
$1,171 $1,010 2
16.70 % 15.20 % ### ppts.
$778 $634 21
25 11 47
- - NM
- 21 -
(379) (156) 43
424 510 74
26 12 (7)
$398 $498 78
$1.00 $1.35 79
47.20 % 23.50 %
$775 $649
$559 $468
$1.40 $1.27
26.90 % 26.10 %
$1,242 $1,121
7/10/1905
Ex F/X Reported
7 6
(2) 9
(1) NM
4 43
6 10
(1) 16
### ppts. 1.50 ppts.
16 23
44 NM
NM -
- NM
45 NM
66 (17)
(4) NM
70 (20)
71 (26)
7/9/1905
Ex F/X
7
11
NM
44
12
18
1.50 ppts.
26
NM
-
NM
NM
(13)
NM
(16)
(22)
10-K
02/27/2019
Performance Metrics
System Sales Growth

System Sales Growth, excluding F/X
Same-store Sales Growth
____________________________
7/10/1905 7/9/1905
7 % 6 %
5 % 8 %
1 % 4 %
10-K
02/27/2019
2018 Form 10-K
Unit Count 7/10/1905 7/9/1905

Company-owned 6,832
Unconsolidated affiliates 811
Franchisees 841
8,484
____________________________
% Increase
7/9/1905 7/8/1905 7/10/1
6,307 6,008 8
891 836 (9)
785 718 7
7,983 7,562 6
7/10/1905 7/9/1905
5
7
9
6
10-K
02/27/2019
Special Items
Year Ended
Detail of Special Items 7/10/1905
Gain from re-measurement of equity interest $98
upon acquisition (a)
Daojia impairment (b) (12)
Reversal of losses associated with sale -
of aircraft (c)
Incremental restaurant-level impairment -
upon separation (d)
Income from the reversal of contingent -
consideration (e)
Special Items, Operating Profit 86
Changes in fair value of financial instruments (f) -
Tax effect on Special Items (g) (21)
Impact from the Tax Act (h) 36
Special Items, net income - including 101
noncontrolling interests
Special Items, net income (1)
- noncontrolling interests (b)(i)
Special Items, Net Income $102
- Yum China Holdings, Inc.
Weighted-Average Diluted Shares Outstanding 395
(in millions)
Special Items Diluted Earnings Per Common $0.26
Share
Reconciliation of Operating Profit to
Adjusted Operating Profit
Operating Profit $941
Adjusted Operating Profit $855
Reconciliation of Net Income
to Adjusted Net Income
Net Income - Yum China Holdings, Inc. $708
Special Items, Net Income 102
- Yum China Holdings, Inc.
Adjusted Net Income - Yum China Holdings, $606
Inc.
Reconciliation of EPS to Adjusted EPS
Special Items Diluted Earnings Per Common 0.26
Share
Adjusted Diluted Earnings Per Common Share $1.53
Reconciliation of Effective Tax Rate to
Adjusted Effective Tax Rate
Effective tax rate (See Note 17) 22.60 %
Impact on effective tax rate as a result (3.90) %
of Special Items (g)(h)
Adjusted effective tax rate 26.50 %
____________________________
7/9/1905 7/8/1905
$- $-
- -
- 2
- (17)
3 -
3 (15)
- 21
- 16
(164) -
(161) 22
- (8)
($161) $30
398 369
($0.40) $0.08
$778 $634
3 (15)
$775 $649
$398 $498
(161) 30
$559 $468
$1.00 $1.35
(0.40) 0.08
$1.40 $1.27
47.20 % 23.50 %
20.30 % (2.70) %
26.90 % 26.20 %
10-K
02/27/2019
Adjusted EBITDA
7/10/1905
Reconciliation of Net Income to Adjusted
EBITDA
Income tax provision 214
Interest income, net (36)
Investment loss 27
Adjusted Operating Profit 855
Depreciation and amortization 445
Store impairment charges 40
Adjusted EBITDA $1,340
____________________________
7/9/1905 7/8/1905
$398 $498
26 12
379 156
(25) (11)
- -
- (21)
778 634
3 (15)
775 649
409 402
58 70
$1,242 $1,121
10-K
02/27/2019
KFC
7/10/1905 7/9/1905
Company sales $5,495 $4,863
Revenues from transactions $63
with franchisees and
unconsolidated affiliates
Total revenues $5,690 $5,066
Restaurant profit $984 $877
Restaurant margin % 17.90 %
G&A expenses $193 $176
Franchise expenses $69 $69
Expenses for transactions $62 $70
with franchisees
and unconsolidated affiliates
Closure and impairment $10 $20
expenses, net
Other income, net ($50) ($57)
Operating Profit $895 $802
____________________________
% B/(W)
7/9/1905 7/8/1905 Reported

$4,863 $4,572 13
134 124 (1)
69 61 (10)
$5,066 $4,757 12
$877 $743 12
18.00 % 16.20 % (0.10) ppts.
$176 $162 (10)
$69 $69 2
$70 $61 8
$20 $41 48
($57) ($46) (11)

$802 $641 11
7/10/1905
Ex F/X Reported Ex F/X
10 6
(3) 8
(11) 12
10 6
9 18
(0.10) ppts. 1.80 ppts.
(8) (9)
4 (1)
9 (12)
49 52
(13) 24
8 25
7/9/1905
/X
8
9
14
8
21
1.80 ppts.
(11)
(2)
(14)
51
27
28
10-K
02/27/2019
KFC
7/10/1905 7/9/1905
System Sales Growth 10 %
System Sales Growth, excluding F/X 7 %
Same-Store Sales Growth 2 %
____________________________
7/9/1905
7 %
9 %
5 %
10-K
02/27/2019
KFC
Unit Count 7/10/1905 7/9/1905

Company-owned 4,597
Franchisees 502
5,910
____________________________
% Increase
7/9/1905 7/8/1905 7/10/1905
4,112 3,913 12
891 836 (9)
485 475 4
5,488 5,224 8
7/9/1905
5
7
2
5
10-K
02/27/2019
KFC
7/9/1905 New Builds

Company-owned 4,112
Franchisees 485
Total 5,488
____________________________
Builds Acquired (a) Closures
443 159 (108)
98 (157) (21)
25 (2) (15)
566 - (144)
Refranchised 7/10/1905
(9) 4,597
- 811
9 502
- 5,910
10-K
02/27/2019
KFC
7/8/1905 New Builds

Company-owned 3,913
Franchisees 475
Total 5,224
____________________________
Builds Closures Refranchised
320 (111) (10)
73 (16) (2)
15 (17) 12
408 (144) -
7/9/1905
4,112
891
485
5,488
10-K
02/27/2019
Company Sales and Restaurant Profit
2018 vs. 2017

Income (Expense) 7/9/1905

Cost of sales (1,455)
Cost of labor (1,013)
Occupancy and other operating expenses (1,518)
Restaurant profit $877
____________________________
Store Portfolio Other F/X
Actions
$395 $114 $12
(130) (58)
(91) (40)
(118) 8
$56 $24 $2
7/10/1905
$123 $5,495
(36) (1,679)
(23) (1,167)
(37) (1,665)
$27 $984
10-K
02/27/2019
2017 vs. 2016


Cost of sales (1,374)
Cost of labor (932)
Occupancy and other operating expenses (1,523)
____________________________
Actions
$142 $235 ($86)
(42) (65)
(32) (65)
(36) 16
$32 $121 ($19)
7/9/1905
($86) $4,863
26 (1,455)
16 (1,013)
25 (1,518)
($19) $877
10-K
02/27/2019
Pizza Hut
7/10/1905 7/9/1905
Franchise fees and income 3 2
Revenues from transactions $2 1
Restaurant profit $216 $292
Restaurant margin % 10.30 % 13.90 %
Franchise expenses $2 $2
Closure and impairment $19 $27
expenses, net
Other income, net ($02) $-
Operating Profit $98 $157
____________________________
% B/(W)
7/8/1905 Reported Ex F/X

$1,993 1 (2)
2 18 16
1 12 11
$1,996 1 (2)
$266 (26) (28)
13.40 % ### ppts. (3.60)
$99 5 8
$3 (22) (19)
$1 (10) (9)
$17 31 32
$- NM NM
$149 (38) (41)
7/10/1905 7/9/1905
Reported Ex F/X
5 7
29 30
36 38
5 7
9 12
ppts. 0.50 ppts. 0.50
(8) (10)
40 40
(36) (38)
(60) (61)
- -
5 8
7/9/1905
ppts.
10-K
02/27/2019
2018 Form 10-K
7/10/1905
System Sales Growth 1 %
System Sales (Decline) Growth, excluding (1) %
F/X
Same-Store Sales (Decline) Growth (5) %
____________________________
7/9/1905
5 %
7 %
1 %
10-K
02/27/2019
2018 Form 10-K
Unit Count 7/10/1905 7/9/1905

Company-owned 2,188 2,166
Franchisees 52 29
2,240 2,195
____________________________
% Increase
7/8/1905 7/10/1905
2,057 1
24 79
2,081 2
7/9/1905
5
21
5
10-K
02/27/2019
2018 Form 10-K
7/9/1905 New Builds

Company-owned 2,166 140
Franchisees 29 17
Total 2,195 157
____________________________
Closures Refranchised 7/10/1
(110) (8)
(2) 8
(112) -
7/10/1905
2,188
52
2,240
10-K
02/27/2019
2018 Form 10-K
7/8/1905 New Builds

Company-owned 2,057 180
Franchisees 24 -
Total 2,081 180
____________________________
Closures Refranchised 7/9/190
(66) (5)
- 5
(66) -
7/9/1905
2,166
29
2,195
10-K
02/27/2019
2018 vs. 2017


Cost of sales (566)
Cost of labor (519)
Occupancy and other operating expenses (713)
____________________________
Actions
$60 ($93) $49
(21) (37) (13)
(14) 8 (13)
(17) 31 (16)
$8 ($91) $7
7/10/1905
$2,106
(637)
(538)
(715)
$216
10-K
02/27/2019
2017 vs. 2016


Cost of sales (527)
Cost of labor (484)
Occupancy and other operating expenses (716)
____________________________
Actions
$125 $9 ($37)
(34) (15) 10
(31) (12) 8
(35) 26 12
$25 $8 ($07)
7/9/1905
$2,090
(566)
(519)
(713)
$292
10-K
02/27/2019
All Other Segments
7/10/1905 7/9/1905
Company sales $31 $40
Franchise fees and income 6 5
Revenues from transactions 24 25
Other revenues 39 36
Total revenues $100 $106
Restaurant (loss) profit ($01) $2
Restaurant margin % ### % 2.90 %
Other operating costs and $31 $28
expenses
Closure and impairment $- $-
expenses, net
Other (income) loss, net ($02) $2
Operating Loss ($12) ($09)
____________________________
% B/(W)
7/8/1905 Reported Ex F/X

$57 (22)
3 41
15 (4)
25 6
$100 (5)
$- NM NM
### % (6.60) ppts.
$15 (23)
$14 13
$15 (10)
$3 98
$1 NM NM
($05) (9)
7/10/1905
/X Reported Ex F/X
(24) (31)
39 49
(7) 68
6 43
(7) 5
NM NM
(6.60) ppts. 3.20 ppts.
(21) (70)
15 (58)
(12) (87)
99 85
(35)
(16) (91)
7/9/1905
/X
(29)
51
72
44
6
3.20 ppts.
(71)
(61)
(91)
85
(38)
(86)
10-K
02/27/2019
Corporate Unallocated
7/10/1905 7/9/1905
Company sales (a) $1 $-
Revenues from transactions 514
unconsolidated affiliates (b)
Other revenues (c) 7
Expenses for transactions 512
unconsolidated affiliates (b)
Corporate G&A expenses 129
Unallocated closures and 12
impairments
Other unallocated income (98)
Changes in fair value of financial -
instruments
Income tax provision (See Note 17) (214)
Effective tax rate (See Note 17) 22.60 %
____________________________
% B/(W)
7/9/1905 7/8/1905 Reported

$- NM
504 222 2
- - NM
500 219 (2)
- - NM
185 153 30
- 17 NM
(9) (16) NM
25 11 47
- - NM
- 21 -
(379) (156) 43
47.20 % 23.50 % (25) ppts
7/10/1905 Ex F/X
Ex F/X Reported Ex F/X
NM -
1 NM NM
NM -
(1) NM NM
NM -
31 (21)
NM 100
NM (57)
44 NM NM
NM -
- NM NM
45 NM NM
(25) ppts (24) ppts
/X
-
-
(22)
100
(56)
(24) ppts
10-K
02/27/2019
Contractual Obligations
Total Less than

1 Year
Capital Leases (a) $37
Operating Leases (a) 2,775
Purchase Obligations (b) 203
Transition Tax (c) 46
Total Contractual Obligations $3,061 $5
____________________________
than 1-3 Years 3-5 Years
ar
$3 $6 $6
466 834 611
44 73 30
2 8 12
$515 $921 $659
More than
5 Years
$22
864
56
24
$966
10-K
02/27/2019
Balance Sheet
Page
Reference
Consolidated and Combined Financial Statements
Report of Independent Registered Public 93

Accounting Firm
Consolidated and Combined Statements 96

of Income for the years ended December 31,
2018, 2017 and 2016

of Comprehensive Income for the years ended
December 31, 2018, 2017 and 2016

of Cash Flows for the years ended December
31, 2018, 2017 and 2016
Consolidated Balance Sheets as of December 99

31, 2018 and 2017

of Equity for the years ended December 31,
2018, 2017 and 2016
Notes to Consolidated and Combined Financial 101

Statements
____________________________
10-K
02/27/2019
Consolidated and Combined Statements of Income
7/10/1905
Revenues
Other revenues 38
Costs and Expenses, Net
Company restaurants
Food and paper 2,326
Payroll and employee benefits 1,714
Occupancy and other operating expenses 2,394
Company restaurant expenses 6,434
General and administrative expenses 456
Franchise expenses 71
Expenses for transactions with 595
Closures and impairment expenses, net 41
Other income, net (152)
Income Before Income Taxes 950
Net income - including noncontrolling 736
interests
Weighted-average common shares outstanding
(in millions):
Basic 384
Diluted 395
Basic Earnings Per Common Share $1.84
Cash Dividends Declared Per Common Share $0.42
____________________________
7/9/1905 7/8/1905
$6,993 $6,622
141 129
599 299
36 25
7,769 7,075
2,034 1,921
1,543 1,432
2,245 2,259
5,822 5,612
495 429
71 72
592 295
28 15
47 78
(64) (60)
6,991 6,441
778 634
25 11
- -
- 21
803 666
(379) (156)
424 510
26 12
$398 $498
387 368
398 369
$1.03 $1.35
$1.00 $1.35
$0.10 $-
10-K
02/27/2019
Consolidated and Combined Statements of Comprehensive Income
7/10/1905
Net income - including noncontrolling $736
interests
Other comprehensive income (loss), net
of tax of nil
Foreign currency gain (loss) arising during (160)
the year
Comprehensive income - including noncontrolling 576
interests
Comprehensive income - noncontrolling 22
interests
Comprehensive Income - Yum China Holdings, $554
Inc.
____________________________
7/9/1905 7/8/1905
$424 $510
142 (133)
566 377
31 9
$535 $368
10-K
02/27/2019
Consolidated and Combined Statements of Cash Flows
7/10/1905
Cash Flows - Operating Activities
Net income - including noncontrolling $736
interests
Depreciation and amortization 445
Closures and impairment expenses 41
Gain from re-measurement of equity interest (98)
upon acquisition
Investment loss 27
Equity income from investments in unconsolidated (65)
affiliates
Distributions of income received from 63
Deferred income taxes 33
Share-based compensation expense 24
Changes in accounts receivable (13)
Changes in inventories (23)
Changes in prepaid expenses and other current (22)
assets
Changes in accounts payable and other current 254
liabilities
Changes in income taxes payable 17
Other, net (86)
Net Cash Provided by Operating Activities 1,333
Cash Flows - Investing Activities
Capital spending (470)
Purchases of short-term investments (604)
Maturities of short-term investments 680
Proceeds from disposal of aircraft -
Acquisition of business, net of cash acquired (91)
Investment in equity securities (74)
Other, net 7
Net Cash Used in Investing Activities (552)
Cash Flows - Financing Activities
Net transfers to Parent -
Proceeds from issuance of common stock -
and warrants
Repurchase of shares of common stock (307)
Cash dividends paid on common stock (161)
Dividends paid to noncontrolling interests (36)
Other, net (14)
Net Cash (Used in) Provided by Financing (518)
Activities
Effect of Exchange Rates on Cash and Cash (56)
Equivalents
Net Increase in Cash and Cash Equivalents 207
Cash and Cash Equivalents - Beginning 1,059
of Year
Cash and Cash Equivalents - End of Year $1,266
Supplemental Cash Flow Data

Cash paid for income tax 208
____________________________
7/9/1905 7/8/1905
$424 $510
409 402
47 78
- -
- -
- (21)
(65) (54)
45 35
62 (42)
26 16
1 (54)
(11) (96)
(15) 7
(56) 123
3 6
14 (44)
884 866
(415) (436)
(596) (136)
479 53
- 19
(25) -
- -
- 29
(557) (471)
- (357)
- 460
(128) -
(38) -
(22) (7)
3 (3)
(185) 93
32 (28)
174 460
885 425
$1,059 $885
232 182
10-K
02/27/2019
Balance Sheet
7/10/1905
ASSETS
Current Assets
Cash and cash equivalents $1,266
Short-term investments 122
Accounts receivable, net 80
Inventories, net 307
Prepaid expenses and other current assets 177
Total Current Assets $1,952
Property, plant and equipment, net 1,615
Goodwill 266
Intangible assets, net 116
Investments in unconsolidated affiliates 81
Other assets 491
Total Assets $4,610
LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST
AND EQUITY
Current Liabilities
Accounts payable and other current liabilities $1,199
Income taxes payable 54
Total Current Liabilities 1,253
Capital lease obligations 25
Other liabilities 355
Total Liabilities 1,633
Redeemable Noncontrolling Interest 1
Equity
Common stock, $0.01 par value; 1,000 million 4
shares authorized;
392 million shares and 389 million shares
issued at December 31, 2018 and
2017, respectively; 379 million shares
and 385 million shares outstanding
at December 31, 2018 and 2017, respectively
Treasury stock (460)
Additional paid-in capital 2,402
Retained earnings 944
Accumulated other comprehensive (loss) (17)
income
Total Equity - Yum China Holdings, Inc. 2,873
Noncontrolling interests 103
Total Equity 2,976
Total Liabilities, Redeemable Noncontrolling $4,610
Interest and Equity
____________________________
7/9/1905
$1,059
205
79
297
162
$1,802
1,691
108
101
105
95
385
$4,287
$985
39
1,024
28
388
1,440
5
(148)
2,375
397
137
2,765
77
2,842
$4,287
10-K
02/27/2019
Consolidated and Combined Statements of Equity
Common
Stock
Shares
Balance at December 31, 2015 -
Net Income
Noncontrolling interest loss upon
redemption
Foreign currency translation
adjustment
Comprehensive income (loss)
Dividends declared
Net transfers to Parent
Capitalization at separation 364
Issuance of common stock to 19
Investors
Reclassification of warrants
issued to Investors
Stock repurchased from
Investors(a)
Exercise and vesting of share- -
based awards
Share-based compensation
Cumulative effect of accounting
change
Balance at December 31, 2016 383
Net Income
adjustment
Comprehensive income
Dividends declared
Cash dividends declared
($0.10 per common share)
Acquisition of business
Repurchase of shares of common
stock
Exercise and vesting of share- 6
based awards
Net Income
adjustment
Comprehensive income (loss)
Dividends declared
Cash dividends declared
($0.42 per common share)
Acquisition of business
Repurchase of shares of common
stock
Exercise and vesting of share- 3
based awards
Revaluation of redeemable
noncontrolling interest
____________________________
Additional
Paid-in Retained
Amount Capital Earnings
$- $- $-
37
4 1,881
364
95
- -
$4 $2,344 $37
398
(38)
26
$4 $2,375 $397
708
(161)
- -
24
3
$4 $2,402 $944
Accumulated
Other Parent
Comprehensive Company
Income (Loss) Investment
$130 $1,791
461
(130)
(360)
(1,885)
(7)
$- $-
137
$137 $-
(154)
($17) $-
Treasury Stock Noncontrolling
Shares Amount Interests
- $- $58
19
(4)
(7)
(1) (20)
(1) ($20) $66

26
5
(22)
2
(3) (128)
(4) ($148) $77

29
(6)
(33)
36
(9) (312)
(13) ($460) $103

Redeemable
Total Noncontrolling
Equity Interest
$1,979 $6
517 1
- (8)
(134) 1
383 (6)
(7)
(360)
-
364
95
(20)
4
(7)
$2,431 $-
424
142
566
(22)
(38)
2 5
(128)
26
$2,842 $5
737 (1)
(160)
577 (1)
(33)
(161)
36
(312)
24
3 (3)
$2,976 $1
10-K
02/27/2019
Fair Value Measurements.
Level 1 Inputs based upon quoted prices in active

markets for identical assets.
Level 2 Inputs other than quoted prices included

within Level 1 that are observable for the
asset, either directly or indirectly.
Level 3 Inputs that are unobservable for the asset.
____________________________
10-K
02/27/2019
2018 Form 10-K
As
Previously
Reported
Total revenues $7,144
Net Income - Yum China Holdings, Inc. 403
Basic Earnings Per Common Share $1.04
____________________________
7/9/1905 7/8/1905
As As As
Adjusted Previously Adjusted
Reported
$7,769 $6,752 $7,075
6,991 6,112
778 640
398 502
$1.03 $1.36 $1.35
$1.00 $1.36 $1.35
7/8/1905
sted
$7,075
6,441
634
498
$1.35
$1.35
10-K
02/27/2019
Note 3 Revenue
Revenues KFC Pizza Hut

Franchise fees and 132
income
Revenues from 63
transactions with
franchisees and
Other revenues -
____________________________
a Hut All Other Corporate
Segments and
Unallocated (a)
$2,106 $31 $1
3 6 -
2 24 514
- 39 7
$2,111 $100 $522
7/10/1905
Combined Elimination Consolidated
$7,633 $- $7,633
141 -
603 -
46 (8)
$8,423 ($08) $8,415
7/10/1905
olidated
$7,633
141
603
38
$8,415
10-K
02/27/2019
Note 3 Revenue

income
Revenues from 69
transactions with
franchisees and
Other revenues -
____________________________
Segments and
Unallocated
$2,090 $40 $-
2 5 -
1 25 504
- 36 -
$2,093 $106 $504
7/9/1905
$6,993 $- $6,993
141 - 141
599 - 599
36 - 36
$7,769 $- $7,769
10-K
02/27/2019
2018 Form 10-K

income
Revenues from 61
transactions with
franchisees and
Other revenues -
____________________________
Segments and
Unallocated
$1,993 $57 $-
2 3 -
1 15 222
- 25 -
$1,996 $100 $222
7/8/1905
$6,622 $- $6,622
129 - 129
299 - 299
25 - 25
$7,075 $- $7,075
10-K
02/27/2019
Franchise Fees and Income
7/10/1905
Initial fees, including renewal fees $7
Continuing fees and rental income 134
Franchise fees and income $141
____________________________
7/9/1905 7/8/1905
$6 $5
135 124
$141 $129
10-K
02/27/2019
Contract Liabilities
7/10/1905
Contract liabilities
- Deferred revenue related to prepaid stored-value $73
products
- Deferred revenue related to customer 17
loyalty programs
- Deferred revenue related to upfront fees 37
Total $127
____________________________
7/9/1905
$50
16
39
$105
10-K
02/27/2019
License Fee
10 months
ended
October 31,
7/8/1905
Initial fees - Company $9
Initial fees - Franchisees 2
Continuing fees - Company 163
Continuing fees - Franchisees 42
Total $216
____________________________
10-K
02/27/2019
2018 Form 10-K
7/10/1905
Weighted-average common shares outstanding 384
(for basic calculation) (a)

Effect of dilutive share-based awards (a) 9
Effect of dilutive warrants (b) 2
Weighted-average common and dilutive 395
potential common shares
outstanding (for diluted calculation)
Basic Earnings Per Share $1.84
Diluted Earnings Per Share $1.79
Share-based awards and warrants 6
excluded from the diluted EPS computation (c)
____________________________
7/9/1905 7/8/1905
$398 $498
387 368
10 1
1 -
398 369
$1.03 $1.35
$1.00 $1.35
10 17
10-K
02/27/2019
Note 7 Other Income, net
7/10/1905
Equity income from investments in unconsolidated $65
affiliates
Gain from re-measurement of equity interest 98
upon acquisition (a)
Foreign exchanges and other (11)
Other income, net $152
____________________________
7/9/1905 7/8/1905
$65 $54
- -
(1) 6
$64 $60
10-K
02/27/2019
Note 8 Supplemental Balance Sheet Information
Accounts Receivables, net 7/10/1905 7/9/1905

Accounts receivables, gross $81 $81
Allowance for doubtful accounts (1)
Accounts receivables, net $80 $79
____________________________
7/9/1905
$81
(2)
$79
10-K
02/27/2019
2018 Form 10-K
Prepaid Expenses and Other Current Assets 7/10/1905

Prepaid rent $42
Receivables from payment processors and 49
aggregators
Dividends receivable from unconsolidated 20
affiliates
Other prepaid expenses and current assets 66
Prepaid expenses and other current assets $177
____________________________
7/9/1905
$41
40
21
60
$162
10-K
02/27/2019
2018 Form 10-K
Property, Plant and Equipment 7/10/1905

Buildings and improvements $2,121
Capital leases, primarily buildings 26
Machinery and equipment and construction 1,201
in progress
Property, plant and equipment, gross 3,348
Accumulated depreciation and amortization (1,733)
Property, plant and equipment, net $1,615
____________________________
7/9/1905
$2,184
28
1,204
3,416
(1,725)
$1,691
10-K
02/27/2019
2018 Form 10-K
Other Assets 7/10/1905 7/9/19

VAT assets $226 $1
Land use right 138
Long-term deposits 64
Investment in equity securities 47
Costs to obtain contracts 8
Others 8
Other Assets $491 $3
____________________________
7/9/1905
$176
131
56
-
12
10
$385
10-K
02/27/2019
2018 Form 10-K
Accounts Payable and Other Current Liabilities 7/10/1905

Accounts payable $619
Accrued compensation and benefits 200
Accrued capital expenditures 137
Contract liabilities 96
Accrued marketing expenses 32
Other current liabilities 115
Accounts payable and other current liabilities $1,199
____________________________
7/9/1905
$420
219
142
72
28
104
$985
10-K
02/27/2019
2018 Form 10-K
Other Liabilities 7/10/1905 7/9/190

Deferred escalating minimum rent $144 $16
Contract liabilities 31
Accrued income tax payable 71
Deferred income tax liabilities 65
Other noncurrent liabilities 44
Other liabilities $355 $38
____________________________
7/9/1905
$162
33
112
32
49
$388
10-K
02/27/2019
Note 9 Goodwill and Intangible Assets
Total
Company
Balance as of December 31, 2016
Goodwill, gross $461
Accumulated impairment losses (a) (382)
Goodwill, net 79
Goodwill acquired and allocated 23
Effect of currency translation adjustment 6
and other
Goodwill, gross 490
Goodwill, net 108
Goodwill acquired (b) 175
Effect of currency translation adjustment (17)
and other
Goodwill, gross 648
Goodwill, net $266
____________________________
KFC Pizza Hut All Other
Segments
$70 $9 $382
- -
70 9
5 9
5 1
80 19
- -
80 19
175 -
(17) -
238 19
- -
$238 $19 $9
Other
ents
$382
(382)
-
9
-
391
(382)
9
-
-
391
(382)
$9
10-K
02/27/2019
Note 9 Goodwill and Intangible Assets
Gross Carrying
Amount (b)
Definite-lived intangible assets

Reacquired franchise rights (a) $150
Daojia platform 16
Customer-related assets 12
Other 17
$195
Indefinite-lived intangible assets
Little Sheep trademark $53
Total intangible assets $248
____________________________
7/10/1905
Accumulated Accumulated Net
Amortization Impairment Carrying
Losses (c) Amount
($100) $- $50
(3) (10) 3
(8) (2) 2
(9) - 8
($120) ($12) $63
$- $- $53
($120) ($12) $116

7/
Gross Carrying Accumulated
Amount Amortization
$100 ($87)
18 (1)
12 (6)
19 (10)
$149 ($104)
$56 $-
$205 ($104)
7/9/1905
Net
Carrying
Amount
$13
17
6
9
$45
$56
$101
10-K
02/27/2019
Note 12 Leases
Commitments
Capital Operating
7/11/1905 $3 $466
7/12/1905 3 440
7/13/1905 3 394
7/14/1905 3 336
7/15/1905 3 275
Thereafter 22 864
$37 $2,775
____________________________
Lease
Receivables
Operating
$15
13
10
8
6
7
$59
10-K
02/27/2019
Note 12 Leases
7/10/1905 7/9/1905
Rental expense
Minimum $467 $496
Contingent 304 292
$771 $788
Rental income $27 $28
____________________________
7/8/1905
$470
250
$720
$26
10-K
02/27/2019
2018 Form 10-K
Balance at
December 31,
7/10/1905
Cash equivalents:
Time deposits $570
Money market funds 226
Fixed rate debt securities (a) 153
Total cash equivalents 949
Short-term investments:
Time deposits 122
Total short-term investments 122
Other assets:
Investment in equity securities 47
Total $1,118
____________________________
Fair Value Measurement or Disclosure
at December 31, 2018
Level 1 Level 2 Level 3
$- $570 $-
226
153
379 570 -
122
- 122 -
47
$426 $692 $-
10-K
02/27/2019
2018 Form 10-K
Balance at
December 31,
7/9/1905
Cash equivalents:
Time deposits $635
Money market funds 93
Total cash equivalents 728
Short-term investments:
Time deposits 143
Fixed rate debt securities (a) 62
Total short-term investments 205
Total $933
____________________________
Fair Value Measurement or Disclosure
at December 31, 2017
Level 1 Level 2 Level 3
$635
93
93 635 -
143
62
62 143 -
$155 $778 $-
10-K
02/27/2019
2018 Form 10-K
7/10/1905
Daojia impairment (a) 12
Restaurant-level impairment (b) 27
Incremental restaurant-level impairment -
upon separation (c)
Changes in fair value of financial instruments (d) -
Income from the reversal of contingent -
consideration (e)
Total $39
____________________________
7/9/1905 7/8/1905
- -
41 58
- 17
- (21)
(3) -
$38 $54
10-K
02/27/2019
2018 Form 10-K
November 1, 2016
Post-Closing Adjustm Warrants
Fair market value of common stock $26.19 $26.19
Expected term 60 days 5 years
Average risk-free rate-of-return 0.27 %
Expected volatility 33 %
Expected dividend yield - %
____________________________
December 30, 2016
ants Warrants
$26.19 $26.12
ars 5 years
1.31 % 1.93 %
34 % 33 %
- % - %
10-K
02/27/2019
Award Valuation
7/10/1905 7/9/1905
Risk-free interest rate 2.50 % 1.90 %
Expected term (years) 6.50 6.75
Expected volatility 33.00 % 34.00 %
Expected dividend yield 1.00 % 0.00 %
____________________________
7/8/1905
1.3% - 1.4%
6.5 - 6.75
27.0% - 35.0%
0% - 2.6%
10-K
02/27/2019
Stock Options and SARs
Shares
(in thousands)
Outstanding at the beginning of 2018 21,595

Granted 1,179
Exercised (4,493)
Forfeited or expired (611)
Outstanding at the end of 2018 17,670 (a)
Exercisable at the end of 2018 12,407
____________________________
Weighted- Weighted-
Average Average
Exercise Remaining
Price Contractual Term
(years)
18.96
40.29
15.12
24.14
21.18 5.23
18.64 4.20
Aggregate Intrinsic
Value (in millions)
226
185
10-K
02/27/2019
RSUs and PSUs
Shares
(in thousands)
Unvested at the beginning of 2018 949

Granted 302
Vested (183)
Forfeited or expired (80)
Unvested at the end of 2018 988
____________________________
Weighted-
Average
Grant Date
Fair Value
26.56
39.50
25.03
28.93
30.60
10-K
02/27/2019
Note 17 Income Taxes
7/10/1905 7/9/1905
U.S. ($03) ($13)
China 979 806
Other Foreign ($26) 10
$950 $803
____________________________
7/8/1905
$5
655
6
$666
10-K
02/27/2019
2018 Form 10-K
7/10/1905 7/9/1905
Current: Federal ($33) $85
Foreign 214 232
$181 $317
Deferred: Federal $- $77

Foreign 33 (15)
$33 $62
$214 $379
____________________________
7/8/1905
($02)
200
$198
($36)
(6)
($42)
$156
10-K
02/27/2019
2018 Form 10-K
U.S. federal statutory rate $199

Impact from the Tax Act (36)
Statutory rate differential attributable 56
to
foreign operations
Adjustments to reserves and prior years (4)
Change in valuation allowances (4)
Tax benefit from Little Sheep restructuring -
Other, net 3
Effective income tax rate $214
____________________________
7/10/1905 7/9/1905
21.00 % $281
(3.80) 164
5.80 (60)
(0.40) (1)
(0.40) 2
- -
0.40 (7)
22.60 % $379
7/9/1905 7/8/1905
35.00 % $233 35.00 %
20.40 - -
(7.50) (55) (8.30)
(0.20) 16 2.40
0.20 - -
- (26) (3.80)
(0.70) (12) (1.80)
47.20 % $156 23.50 %
10-K
02/27/2019
Other.
7/10/1905
Operating losses and tax credit carryforwards $28
Tax benefit from Little Sheep restructuring 18
Employee benefits 6
Share-based compensation 5
Deferred escalating minimum rent 41
Other liabilities 12
Deferred income and other 50
Gross deferred tax assets 160
Deferred tax asset valuation allowances (50)
Net deferred tax assets $110
Intangible assets (28)
Property, plant and equipment (31)
Gain from re-measurement of equity interest (23)
upon acquisition
Other (4)
Gross deferred tax liabilities ($86)
Net deferred tax assets $24
Reported in Consolidated Balance Sheets
as:
Other liabilities (65)
$24
____________________________
7/9/1905
$43
20
5
6
45
10
49
178
(68)
$110
(25)
(2)
-
(10)
($37)
$73
105
(32)
$73
10-K
02/27/2019
2018 Form 10-K
7/10/1905
Beginning of Year $28
Additions on tax positions 3
Reductions due to statute expiration (9)
End of Year $22
____________________________
7/9/1905
$26
8
(6)
$28
10-K
02/27/2019
Note 18 Segment Reporting
KFC Pizza Hut
Revenues
Revenue from $5,690 $2,111
external
customers
Inter-segment - -
revenue
Total $5,690 $2,111
____________________________
All Other Corporate Combined
Segments and
Unallocated
$92 $522 $8,415
8 - 8
$100 $522 $8,423

7/10/1905
Elimination Consolidated
$- $8,415
(8) -
($08) $8,415
10-K
02/27/2019
KFC Pizza Hut
Revenues
external
customers
Inter-segment - -
revenue
Total $5,066 $2,093
____________________________
Segments and
Unallocated
$106 $504 $7,769
- - -
$106 $504 $7,769

7/9/1905
$- $7,769
- -
$- $7,769
10-K
02/27/2019
KFC Pizza Hut
Revenues
external
customers
Inter-segment - -
revenue
Total $4,757 $1,996
____________________________
Segments and
Unallocated
$100 $222 $7,075
- - -
$100 $222 $7,075

7/8/1905
$- $7,075
- -
$- $7,075
10-K
02/27/2019
2018 Form 10-K
Operating Profit 7/10/1905

KFC (b) $895
Pizza Hut 98
All Other Segments (12)
Unallocated revenues from transactions 514
with
franchisees and unconsolidated affiliates (c)
Unallocated Other revenues 7
Unallocated expenses for transactions (512)
with
franchisees and unconsolidated affiliates (c)
Unallocated Other operating costs and (6)
expenses
Unallocated and corporate G&A expenses (129)
Unallocated Closures and impairment expense (d) (12)
Unallocated Other income (e) 98
Interest income, net (a) 36
Investment loss (a) (27)
Changes in fair value of financial instruments (a) -
Income Before Income Taxes $950
____________________________
7/9/1905 7/8/1905
$802 $641
157 149
(9) (5)
504 222
- -
(500) (219)
- -
(185) (153)
- (17)
9 16
778 634
25 11
- -
- 21
$803 $666
10-K
02/27/2019
2018 Form 10-K
Depreciation and Amortization

7/10/1905 7/9/1905
KFC $296 $265
Pizza Hut 129
All Other Segments 8
Corporate and Unallocated 12
$445 $409
____________________________
7/9/1905 7/8/1905
$265 $266
126 120
4 5
14 11
$409 $402
10-K
02/27/2019
2018 Form 10-K
Impairment Charges
7/10/1905 7/9/1905
KFC (f) $14 $27
Pizza Hut (f) 26
All Other Segments -
Corporate and Unallocated (d) 12
$52 $58
____________________________
7/9/1905 7/8/1905
$27 $48
31 19
- 3
- 17
$58 $87
10-K
02/27/2019
2018 Form 10-K
Capital Spending
7/10/1905 7/9/1905
KFC $292 $227
Pizza Hut 77 93
All Other Segments 5 2
Corporate and Unallocated 96 93
$470 $415
____________________________
7/8/1905
$221
129
1
85
$436
10-K
02/27/2019
2018 Form 10-K
Total Assets
7/10/1905 7/9/1905
KFC (g) $1,745 $1,544
Pizza Hut 558
All Other Segments 130
Corporate and Unallocated (h) 2,177
$4,610 $4,287
____________________________
7/9/1905
$1,544
668
144
1,931
$4,287
10-K
02/27/2019
Note 20 Selected Quarterly Financial Data (unaudited; in millions, except per share amounts)
First
Quarter
Revenues:
Other revenues 4
Restaurant profit 361
Net Income - Yum China Holdings, Inc. 288
Basic earnings per common share $0.75
Diluted earnings per common share $0.72
____________________________
Second Third Fourth
Quarter Quarter Quarter
$1,888 $2,008 $1,721

34 36
141 159
5 9
2,068 2,212
286 353
193 269
143 203
$0.37 $0.53 $0.19
$0.36 $0.51 $0.19
7/10/1905
th Total
ter
$1,721 $7,633
31 141
142 603
20 38
1,914 8,415
199 1,199
84 941
74 708
$0.19 $1.84
$0.19 $1.79
10-K
02/27/2019
Note 20 Selected Quarterly Financial Data (unaudited; in millions, except per share amounts)
2017 (Recast)
First
Quarter
Revenues:
Other revenues 5
Restaurant profit 354
Net Income (Loss) - Yum China Holdings, 204
Inc.
Basic earnings (loss) per common share $0.53
Diluted earnings (loss) per common share $0.52
____________________________
Second Third Fourth
Quarter Quarter Quarter
$1,664 $1,924 $1,667

33 38
141 160
3 8
1,841 2,130
276 347
171 264
125 176
$0.32 $0.46 ($0.28)

$0.31 $0.44 ($0.28)
th Total
ter
$1,667 $6,993
34 141
151 599
20 36
1,872 7,769
194 1,171
47 778
(107) 398
($0.28) $1.03
($0.28) $1.00
10-K
02/27/2019
Summary Compensation
Item 11. Executive Compensation.
____________________________
10-K
02/27/2019
Beneficial Ownership
Item 12.
____________________________
Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder
Matters.
10-K
02/27/2019
PART IV
(a) (1) Financial Statements: Consolidated and

Combined Financial Statements filed as
part of this report are listed under Part
II, Item 8 of this Form 10-K.
(2) Financial Statement Schedules: No schedules

are required because either the required
information is not present or not present
in amounts sufficient to require submission
of the schedule, or because the information
required is included in the Consolidated
and Combined Financial Statements thereto
filed as a part of this Form 10-K.
(3) Exhibits: The exhibits listed in the accompanying

Exhibit Index are filed as part of this Form
10-K. The Index to Exhibits specifically
identifies each management contract or
compensatory plan required to be filed
as an exhibit to this Form 10-K.
____________________________
10-K
02/27/2019
Exhibit Index
Exhibit Description of Exhibits

Number
2.1** Separation and Distribution Agreement,

dated as of October 31, 2016, by and among
Yum! Brands, Inc., Yum Restaurants Consulting
(Shanghai) Company Limited and Yum China
Holdings, Inc. (incorporated by reference
to Exhibit 2.1 to Yum China Holdings, Inc.?s
Current Report on Form 8-K filed on November
1, 2016).
3.10 Amended and Restated Certificate of Incorporation

of Yum China Holdings, Inc. (incorporated
by reference to Exhibit 3.1 to Yum China
Holdings, Inc.?s Current Report on Form
8-K filed on November 1, 2016).
3.20 Amended and Restated Bylaws of Yum China

1, 2016).
4.10 Warrant No. 1 issued to Pollos Investment

L.P. on January 9, 2017 (incorporated by
reference to Exhibit 10.3 to Yum China Holdings,
Inc.?s Current Report on Form 8-K filed
on January 9, 2017).
4.20 Warrant No. 2 issued to Pollos Investment

L.P. on January 9, 2017 (incorporated by
reference to Exhibit 10.4 to Yum China Holdings,
on January 9, 2017).
4.30 Warrant No. 1 issued to API (Hong Kong) Investment

Limited on January 9, 2017 (incorporated
8-K filed on January 9, 2017).
4.40 Warrant No. 2 issued to API (Hong Kong) Investment

Limited on January 9, 2017 (incorporated
8-K filed on January 9, 2017).
10.10 Master License Agreement, dated as of October 31,

2016, by and between Yum! Restaurants Asia
Pte. Ltd. and Yum Restaurants Consulting
(Shanghai) Company Limited (incorporated
10.20 Tax Matters Agreement, dated as of October

31, 2016, by and among Yum! Brands, Inc.,
Yum China Holdings, Inc. and Yum Restaurants
Consulting (Shanghai) Company Limited
(incorporated by reference to Exhibit
10.2 to Yum China Holdings, Inc.?s Current
Report on Form 8-K filed on November 1, 2016).
10.30 Employee Matters Agreement, dated as of

October 31, 2016, by and between Yum! Brands, Inc.
and Yum China Holdings, Inc. (incorporated
10.40 Transition Services Agreement, dated

as of October 31, 2016, by and between Yum!
Brands, Inc. and Yum China Holdings, Inc.
10.4 to Yum China Holdings, Inc.?s Current
Report on Form 8-K filed on November 1, 2016).
____________________________
10-K
02/27/2019
2018 Form 10-K

Number
10.50 Name License Agreement, dated as of October 31,

2016, by and between Yum! Brands, Inc. and
Yum China Holdings, Inc. (incorporated
10.60 Guaranty of Master License Agreement,

dated as of October 31, 2016, by Yum China
1, 2016).
10.70 Investment Agreement, dated as of September

1, 2016, by and among Yum! Brands, Inc.,
Yum China Holdings, Inc. and Pollos Investment
L.P. (incorporated by reference to Exhibit
10.11 to Amendment No. 5 to Yum China Holdings,
Inc.?s Registration Statement on Form
10, filed on September 16, 2016).
10.80 Investment Agreement, dated as of September 1,

2016, by and among Yum! Brands, Inc., Yum
China Holdings, Inc. and API (Hong Kong)
Investment Limited (incorporated by reference
to Exhibit 10.12 to Amendment No. 5 to Yum
China Holdings, Inc.?s Registration Statement
on Form 10, filed on September 16, 2016).
10.90 Letter Agreement, dated as of October 7,

2016, by and among Yum! Brands, Inc., Yum
China Holdings, Inc., API (Hong Kong) Investment
Limited and Pollos Investment L.P. (incorporated
Holdings, Inc.?s Annual Report on Form
10-K filed on March 8, 2017).
10.10 Shareholders Agreement, dated as of November

1, 2016, by and among Yum China Holdings,
Inc., Pollos Investment L.P. and API (Hong
Kong) Investment Limited (incorporated
10.11 Form of Yum China Holdings, Inc. Indemnification

Agreement, (incorporated by reference
to Exhibit 10.10 to Yum China Holdings,
on November 1, 2016).
10.12 Yum China Holdings, Inc. Long Term Incentive

Plan (incorporated by reference to Exhibit
10.7 to Amendment No. 5 to Yum China Holdings, Inc.?s
Registration Statement on Form 10, filed
on September 16, 2016). ?
10.13 Yum China Holdings, Inc. Leadership Retirement

Plan (incorporated by reference to Exhibit
10.14 Form of Restricted Stock Unit Agreement

10.15 Form of Stock Appreciation Right Agreement

10.16 Letter of Understanding between Yum Restaurants

and Joey Wat, dated as of March 21, 2014 (incorporated
10-K filed on March 8, 2017). ?
____________________________
10-K
02/27/2019
2018 Form 10-K

Number
10.17 Letter of Understanding issued by Yum Restaurants

to Joey Wat, dated as of September 8, 2015
10.19 to Yum China Holdings, Inc.?s Annual
Report on Form 10-K filed on March 8, 2017).
?
10.18 Letter of Understanding issued by Yum China

Holdings, Inc. to Joey Wat, dated as of February
6, 2017 (incorporated by reference to Exhibit
10.20 to Yum China Holdings, Inc.?s Annual
Report on Form 10-K filed on March 8, 2017).
?
10.19 Letter of Understanding issued by Yum China

Holdings, Inc. to Johnson Huang, dated
as of February 6, 2017 (incorporated by
reference to Exhibit 10.21 to Yum China
10-K filed on March 8, 2017). ?
10.20 Transition Agreement, dated as of September

29, 2017, by and between Yum China Holdings,
Inc. and Micky Pant (incorporated by reference
Current Report on Form 8-K filed on October
5, 2017). ?
10.21 Letter of Understanding, dated as of September

29, 2017, by and between Yum China Holdings,
Inc. and Joey Wat (incorporated by reference
Current Report on Form 8-K filed on October
5, 2017). ?
10.22 Yum China Holdings, Inc. Performance Share

Unit Plan (incorporated by reference to
Exhibit 10.1 to Yum China Holdings, Inc.?s
Quarterly Report on Form 10-Q filed on May
4, 2018). ?
10.23 Performance Share Unit Award Notice issued

by Yum China Holdings, Inc. to Joey Wat,
dated as of March 2, 2018 (incorporated
Holdings, Inc.?s Quarterly Report on Form
10-Q filed on May 4, 2018). ?
21.10 Subsidiaries of Yum China Holdings, Inc.*
23.10 Consent of Independent Registered Public

Accounting Firm.*
31.10 Certification of the Chief Executive Officer

pursuant to Rule 13a-14(a) of Securities
Exchange Act of 1934, as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act
of 2002.*
31.20 Certification of the Chief Financial Officer

pursuant to Rule 13a-14(a) of Securities
Exchange Act of 1934, as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act
of 2002.*
32.10 Certification of the Chief Executive Officer

pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.*
32.20 Certification of the Chief Financial Officer

pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.*
101.INS XBRL Instance Document *
101.SCH XBRL Taxonomy Extension Schema Document *
101.CAL XBRL Taxonomy Extension Calculation Linkbase

Document *
____________________________
10-K
02/27/2019
2018 Form 10-K

Number
101.LAB XBRL Taxonomy Extension Label Linkbase

Document *
101.PRE XBRL Taxonomy Extension Presentation

Linkbase Document *
101.DEF XBRL Taxonomy Extension Definition Linkbase

Document *
____________________________
10-K
02/27/2019
SIGNATURES
YUM CHINA HOLDINGS, INC.
By: /s/ Joey Wat

Joey Wat
Chief Executive Officer
Date: February 27, 2019
____________________________
10-K
02/27/2019
SIGNATURES
Signature Title
/s/ Joey Wat Chief Executive Officer and Director

Joey Wat (principal executive officer)
/s/ Jacky Lo Chief Financial Officer

Jacky Lo (principal financial officer)
/s/ Xueling Lu Controller

Xueling Lu (controller and principal accounting
officer)
/s/ Peter A. Bassi Director

Peter A. Bassi
/s/ Christian L. Campbell Director

Christian L. Campbell
/s/ Ed Yiu-Cheong Chan Director

Ed Yiu-Cheong Chan
/s/ Edouard Ettedgui Director

Edouard Ettedgui
/s/ Louis T. Hsieh Director

Louis T. Hsieh
/s/ Fred Hu Director

Fred Hu
/s/ Jonathan S. Linen Director

Jonathan S. Linen
/s/ Ruby Lu Director

Ruby Lu
/s/ Micky Pant Director

Micky Pant
/s/ Zili Shao Director

Zili Shao
____________________________
Date
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019
February 27, 2019

10-K
02/27/2019
Subsidiaries of Yum China Holdings, Inc.
Entity Name Jurisdiction of

Organization
Atto Primo (Shanghai) Co., Ltd. China
Bai Sheng Restaurants China Holdings Limited Hong Kong
Bai Sheng Restaurants (Hong Kong) Limited Hong Kong
Baotou Little Sheep Shenhua Catering Company China
Limited
Beijing Fashion Family Network Technology China
Co, Ltd.
Beijing KFC Co., Ltd. China
Beijing Pizza Hut Co., Ltd. China
Changsha KFC Co., Ltd. China
China Family Networks Limited Hong Kong
China Homerun Limited Cayman
China XiaoFeiYang Catering Chain Co., Ltd. British Virgin Islands
Chongqing KFC Co., Ltd. China
COFFii & JOY Hong Kong Limited Hong Kong
Dalian KFC Co., Ltd. China
Dongguan KFC Co., Ltd. China
East Dawning (Shanghai) Management Co., Ltd. China
Foshan Mengjie Catering Company Limited China
Gansu Hongfu Little Sheep Catering Management China
Company Limited
Gansu Hongxi Little Sheep Catering Co., Ltd. China
Gansu Hongxiang Little Sheep Catering China
Co., Ltd.
Gansu Little Sheep Catering Co., Ltd. China
Guangzhou Little Sheep Trading Company China
Limited
Guangzhou Yingfeng Yijing Catering Co., Ltd. China
Hangzhou KFC Co., Ltd. China
Huansheng Advertising (Shanghai) Company China
Limited
Huansheng Consulting (Wuhan) Co., Ltd. China
Huansheng E-Commerce (Shanghai) Co., China
Ltd.
Huansheng Information and Technology Hong Kong
China Limited
Huansheng Information Technology (Shanghai) China
Co., Ltd.
Inner Mongolia Little Sheep Catering Chain China
Company Limited
Inner Mongolia Little Sheep Seasoning China
Company Limited
Jinjiang Little Sheep Catering Co., Ltd. China
Kentucky Fried Chicken Global B.V. Netherlands
Kunming KFC Co., Ltd. China
Lanzhou KFC Co., Ltd. China
Little Sheep Group Limited Cayman Islands
Little Sheep Hong Kong Holdings Company Hong Kong
Limited
Little Sheep Tsuen Wan Company Limited Hong Kong
Nanchang KFC Co., Ltd. China
Nanjing KFC Co., Ltd. China
Nanning KFC Co., Ltd. China
Qingdao KFC Co., Ltd. China
Shanghai Changning Little Sheep Catering China
Company Limited
Shanghai KFC Co., Ltd. China
Shanghai Le Yue Coffee Co., Ltd. China
Shanghai Pizza Hut Co., Ltd. China
Shantou KFC Co., Ltd. China
Shenyang Wangda Little Sheep Catering China
Co., Ltd.
Shenzhen Little Sheep Catering Chain Company China
Limited
Shenzheng Huacai Catering Co., Ltd. China
Sunrise Investments Co., Ltd. British Virgin Islands
Suzhou KFC Co., Ltd. China
Taiyuan KFC Co., Ltd. China
____________________________
10-K
02/27/2019
Subsidiaries of Yum China Holdings, Inc.
Entity Name Jurisdiction of

Organization
Tianjin KFC Co., Ltd. China
Wandle Investments Limited Hong Kong
Wuxi KFC Co., Ltd. China
Xiamen KFC Co., Ltd. China
Xian Hepingmen Little Sheep Catering Co., Ltd. China
Xian Hezong Little Sheep Catering Co., Ltd. China
Xian Ling Ling Xian Logistics Ltd. China
Xinjiang KFC Co., Ltd. China
Yinchuan Little Sheep Catering Company China
Limited
YRI Hong Kong I Limited Hong Kong
YRI Hong Kong II Limited Hong Kong
YRI Hong Kong IV Limited Hong Kong
Yum! Food (Shanghai) Co., Ltd. China
Yum! Asia Holdings Pte. Ltd. Singapore
Yum China E-Commerce Limited Hong Kong
Yum! China Finance S.? r.l. Luxembourg
Yum! Franchise China IV S.? r.l. Luxembourg
Yum! Franchise China Trust China
Yum! Franchise China Trust I S.? r.l. Luxembourg
Yum! Franchise China Trust II China
Yum! Franchise China Trust III China
Yum! Franchise China Trust III S.? r.l. Luxembourg
Yum! Global Investments I B.V. Netherlands
Yum! Global Investments II B.V. Netherlands
Yum! Global Investments III LLC Delaware
Yum! Restaurants (Chengdu) Co., Ltd. China
Yum! Restaurants (China) Investment Company China
Limited
Yum! Restaurants (Fuzhou) Co., Ltd. China
Yum! Restaurants (Guangdong) Co., Ltd. China
Yum! Restaurants (Shenyang) Co., Ltd. China
Yum! Restaurants (Shenzhen) Co. Ltd. China
Yum! Restaurants (Wuhan) Co., Ltd. China
Yum! Restaurants (Xian) Co., Ltd. China
Yum Restaurants Consulting (Shanghai) China
Company Limited
Yum! Restaurants International S.a.r.l. Luxembourg
Zhengzhou KFC Co., Ltd. China
____________________________
10-K
02/27/2019
Exhibit 31.1
Date: February 27, 2019 /s/ Joey Wat

Joey Wat
____________________________
10-K
02/27/2019
Exhibit 31.2
Date: February 27, 2019 /s/ Jacky Lo

Jacky Lo
Chief Financial Officer
____________________________
10-K
02/27/2019
Exhibit 32.1
Date: February 27, 2019 /s/ Joey Wat

Joey Wat
____________________________
10-K
02/27/2019
Exhibit 32.2
Date: February 27, 2019 /s/ Jacky Lo

Jacky Lo
Chief Financial Officer
____________________________

? Annual Report Pursuant To Section 13 or 15 (D) of The Securities EXCHANGE ACT OF 1934 For The Fiscal Year Ended December 31, 2018

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Yum China Holdings, Inc.