- Total revenues increased 16.3% year-over-year to
RMB310.4 million (US$48.2 million)[1].
- Income from operations decreased 45.6% year-over-year to
RMB54.9 million (US$8.5 million) [1].
- Adjusted EBITDA (non-GAAP) [2] decreased 33.5%
year-over-year to RMB73.7 million
(US$11.4 million)
[1].
- Core net income (non-GAAP) [3] decreased 45.7%
year-over-year to RMB50.2 million
(US$7.8 million)
[1].
SHANGHAI, Jan. 12, 2022
/PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG)
("GreenTree", the "Company", "we", "us" and "our"), a leading
hospitality management group in China, today announced its unaudited financial
results for the third quarter of 2021.
Third Quarter of 2021 Operational Highlights
- A total of 4,626 hotels with 334,162 hotel rooms were in
operation as of September 30, 2021,
compared to 4,542 hotels and 328,773 hotel rooms as of June 30, 2021
- As of September 30, 2021, the
Company had 62 leased-and-operated ("L&O") hotels and 4,564
franchised-and-managed ("F&M") hotels in operation in 362
cities across China, compared to
37 L&O hotels and 4,158 F&M hotels in operation in 341
cities as of September 30, 2020. The
geographic coverage increased by 6.2% year over year.
- During the quarter, the Company opened 182 hotels, an increase
of 20 compared to 162 hotels in the third quarter of 2020. Two of
those hotels were in the luxury segment, 70 in the mid-to-up-scale
segment, 83 in the mid-scale segment, and 27 in the economy
segment. Geographically speaking, 12 hotels were in Tier 1 cities
[3], 52 in Tier 2 cities and the remaining 118 in Tier 3
and lower cities in China.
- As of September 30, 2021, the
Company had a pipeline of 1,207
hotels contracted for or under development, of which 57 hotels were in the luxury hotel
segment, 337 in the mid-to-up-scale segment, 465 in the mid-scale segment, and 348 in the economy segment.
- The average daily room rate, or ADR, for all hotels in
operation was RMB 163, an increase of 7.7% from RMB151 in the third quarter of 2020, and a 6.2%
decrease compared with RMB174 in the
pre-COVID-19 third quarter of 2019.
- The occupancy rate, or OCC for all hotels in operation was
72.4%, a decrease of 6.7% compared with 79.1% in the third quarter
of 2020, and a 13.5% decrease compared with 85.9% in the
pre-COVID-19 third quarter of 2019.
- The revenue per available room, or RevPAR, which is calculated
by multiplying our hotels' ADR by its occupancy rate, was
RMB 118, a 1.4% year-over-year
decrease, and a 20.9% decrease compared with RMB149 in the pre-COVID-19 third quarter of
2019.
- As of September 30, 2021 the Company's loyalty program had more
than 66 million individual members and more than 1,810,000
corporate members, compared to over 62 million individual members
and approximately 1,760,000 corporate members respectively as of
June 30, 2021. The Company sold
approximately 91.3% of room nights directly during the third
quarter of 2021.
"Despite the unprecedented challenges brought upon us by
resurgences of COVID-19 cases in various parts of China, the company delivered satisfactory
quarterly results as the impact on our occupancy and RevPAR has
been less severe than at the average of other hotels in
China," said Mr. Alex Xu, Chair and Chief Executive Officer of
GreenTree. "This has been an extraordinarily tough period, but it
is one that has been shared across the industry. As for ourselves,
we feel certain that we will get through the current pandemic wave
given the resilience of our business model and the experience that
our team and franchisees have accumulated while combatting
Covid-19. Going forward, we will further optimize our management
and operating systems, including
design and technology features,
and sales and marketing
programs to improve hotel
quality and operating performance. Once again, I am extremely
grateful for the support and dedication of our employees,
franchisees, guests, and shareholders as we continue to navigate
uncertain times."
[1] The conversion of Renminbi
("RMB")into United States dollars ("US$") is based on the exchange
rate of US$1.00=RMB6.4434 on September 30, 2021 as set forth in
H.10 statistical release of the U.S. Federal Reserve Board and
available at
https://www.federalreserve.gov/releases/h10/20211004/
|
[2] Adjusted
EBITDA (non-GAAP) is calculated as net income plus other operating
expenses, income tax expense, interest expense, depreciation and
amortization, losses from investment in equity securities, but
excludes other operating income, interest income and other, net,
gains from investment in equity securities, share of gains in
equity investees (net of tax), and other income, net. The
calculation of Adjusted EBITDA (non-GAAP) included in this report
has been aligned according to the abovementioned
definition.
|
[3] Core net income
is calculated as net income plus share-based compensation, losses
from investments in equity securities (net of 25% tax), one-time
fees and expense, asset impairment/accrued bad debt and income tax
expenses related to dividend distribution but excludes government
subsidies (net of 25% tax), gains from investment in equity
securities (net of 25% tax), and other income (net of 25%
tax).
|
[4] Tier 1 Cities refers to Beijing,
Shanghai, Shenzhen and Guangzhou; Tier 2 Cities refers to the 32
major cities, other than Tier 1 Cities, including provincial
capitals, administrative capitals of autonomous regions,
direct-controlled municipalities and other major cities designated
as municipalities with independent planning by the State
Council.
|
Third Quarter 2021
Financial Results
|
Quarter
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
|
|
|
|
Leased-and-operated
hotels
|
66,823,544
|
|
106,518,761
|
|
16,531,452
|
Franchised-and-managed hotels
|
194,060,899
|
|
194,002,860
|
|
30,108,772
|
others
|
5,983,132
|
|
9,922,553
|
|
1,539,956
|
Total
revenues
|
266,867,575
|
|
310,444,174
|
|
48,180,180
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
|
|
|
|
Leased-and-operated
hotels
|
150,961,027
|
|
279,514,243
|
|
43,379,930
|
Franchised-and-managed hotels
|
470,258,096
|
|
589,609,423
|
|
91,505,948
|
others
|
19,034,407
|
|
29,589,847
|
|
4,592,272
|
Total
revenues
|
640,253,530
|
|
898,713,513
|
|
139,478,150
|
Total revenues were RMB310.4
million (US$48.2
million) [1], a 16.3% year-over-year
increase. The increase was primarily due to our newly opened
L&O hotels. Compared with the pre-COVID-19 third quarter of
2019, total revenues increased by 6.3%. Total revenues for the
first nine months of 2021 were
RMB 898.7 million (US$139.5
million) [1], representing a 40.4%
year-over-year increase.
Total revenues from leased-and-operated hotels were
RMB106.5 million (US$16.5 million) [1], a 59.4%
year-over-year increase. The increase was primarily due to the
20.7% year-over-year increase in L&O hotels' RevPAR and
revenues from the 24 L&O hotels opened since the beginning of
2021. This revenue increase was
partially offset by the closure of 2 L&O hotels over the same
period. Total revenues from L&O hotels for the nine
months of 2021 were RMB279.5
million (US$43.4
million) [1], an 85.2% year-over-year increase.
Total revenues from franchised-and-managed
hotels were RMB194.0 million
(US$30.1
million) [1], almost the same as in
the same quarter last year. Initial
franchise fees increased by 17.8% year-over-year, mainly
attributable to the gross opening of 181 F&M hotels and
the closure of 96 F&M
hotels. Recurring franchisee management fees and others decreased 1.7% year-over-year primarily
due to the 2.2% decrease in RevPAR and
offset by the 9.8% increase in the number of F&M
hotels. Total revenues from F&M
hotels for the first nine
months of 2021 were RMB589.6
million (US$91.5
million) [1], representing a 25.4%
year-over-year increase.
|
Quarter
Ended
|
|
September 30,
2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
Initial franchise
fee
|
16,619,577
|
|
19,579,815
|
|
3,038,740
|
Recurring
franchise
management fee and others
|
177,441,322
|
|
174,423,045
|
|
27,070,032
|
Revenues from
franchised-
and-managed hotels
|
194,060,899
|
|
194,002,860
|
|
30,108,772
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September 30,
2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
Initial franchise
fee
|
42,985,481
|
|
57,172,423
|
|
8,873,021
|
Recurring
franchise
management fee and others
|
427,272,615
|
|
532,437,000
|
|
82,632,927
|
Revenues from
franchised-
and-managed hotels
|
470,258,096
|
|
589,609,423
|
|
91,505,948
|
Total operating costs and expenses
|
Quarter
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
Operating costs
and expenses
|
|
|
|
|
|
Hotel operating
costs
|
108,025,295
|
|
172,797,324
|
|
26,817,724
|
Selling and marketing
expenses
|
21,273,500
|
|
16,450,435
|
|
2,553,067
|
General and
administrative expenses
|
44,782,915
|
|
68,776,812
|
|
10,673,994
|
Other operating
expenses
|
434,792
|
|
760,850
|
|
118,083
|
Total operating
costs and expenses
|
174,516,502
|
|
258,785,421
|
|
40,162,868
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
Operating costs
and expenses
|
|
|
|
|
|
Hotel operating
costs
|
292,705,145
|
|
459,464,624
|
|
71,307,792
|
Selling and marketing
expenses
|
51,114,478
|
|
56,271,856
|
|
8,733,255
|
General and
administrative expenses
|
121,672,457
|
|
195,778,639
|
|
30,384,368
|
Other operating
expenses
|
1,633,064
|
|
4,907,140
|
|
761,576
|
Total operating
costs and expenses
|
467,125,144
|
|
716,422,259
|
|
111,186,991
|
Hotel operating costs were RMB172.8 million (US$26.8
million) [1], a 60.0% increase
year-over-year. The increase was mainly attributable to the opening
of 24 L&O hotels since the beginning of 2021, which resulted in
higher rents, higher utilities and
consumables, higher staff headcount and compensation,
higher depreciation and amortization, and higher ramp up cost. Excluding the impact from
newly opened L&O hotels in 2021, hotel operating costs
increased 10.3%. For the first nine
months of 2021, hotel operating costs were RMB459.5 million (US$71.3
million) [1], representing a 57.0%
increase.
|
Quarter
Ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Rental
|
27,189,274
|
|
68,151,443
|
|
10,576,938
|
Utilities
|
3,666,479
|
|
7,272,803
|
|
1,128,721
|
Personnel
cost
|
11,732,599
|
|
21,175,692
|
|
3,286,416
|
Depreciation and
amortization
|
14,946,857
|
|
17,781,855
|
|
2,759,701
|
Consumable, food and
beverage
|
7,937,167
|
|
17,297,833
|
|
2,684,582
|
Costs of general
managers of franchised-
and-managed hotels
|
24,241,736
|
|
29,575,721
|
|
4,590,080
|
Other costs of
franchised-and-managed
hotels
|
7,873,516
|
|
7,670,523
|
|
1,190,447
|
Others
|
10,437,667
|
|
3,871,454
|
|
600,839
|
Hotel Operating
Costs
|
108,025,295
|
|
172,797,324
|
|
26,817,724
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Rental
|
90,098,256
|
|
171,945,795
|
|
26,685,569
|
Utilities
|
11,258,969
|
|
19,476,338
|
|
3,022,680
|
Personnel
cost
|
31,296,079
|
|
52,246,791
|
|
8,108,575
|
Depreciation and
amortization
|
36,873,883
|
|
51,465,319
|
|
7,987,292
|
Consumable, food and
beverage
|
23,477,610
|
|
49,024,107
|
|
7,608,422
|
Costs of general
managers of franchised-
and-managed hotels
|
65,575,838
|
|
84,971,682
|
|
13,187,398
|
Other costs of
franchised-and-managed
hotels
|
17,853,103
|
|
20,119,472
|
|
3,122,493
|
Others
|
16,271,407
|
|
10,215,120
|
|
1,585,363
|
Hotel Operating
Costs
|
292,705,145
|
|
459,464,624
|
|
71,307,792
|
Selling and marketing expenses were RMB16.5 million (US$2.6
million) [1], a 22.7% year-over-year
decrease. The decrease was mainly
attributable to lower advertising expenses. For the
first nine months of 2021,
selling and marketing expenses were RMB56.3
million (US$8.7
million) [1], representing a 10.1%
increase.
General and administrative expenses were
RMB68.8 million (US$10.7 million) [1], a
53.6% year-over-year increase. The increase was mainly attributable
to the opening of 24 L&O hotels since the beginning
of 2021 and the increased one-time
consulting fees for capital
market advice. Excluding the impact from newly opened L&O
hotels and one-time consulting fees, general and administrative
expenses increased by
16.6%. General and administrative expenses for the nine months
of 2021 were RMB195.8 million
(US$30.4
million) [1], a 60.9% year-over-year increase.
Gross profit was RMB137.6
million (US$21.4
million) [1], a year-over-year decrease of
13.3%. Gross margin was 44.3%, compared to 59.5% a year ago. The
decrease was primarily due to the operating loss recorded by newly opened L&O
hotels during their ramp-up period. Gross profit for the first nine months of 2021 was RMB439.2 million (US$68.2
million) [1], a 26.4% year-over-year increase.
Income from operations was RMB54.9
million (US$8.5
million) [1], a year-over-year decrease of
45.6%, with a margin of 17.7%.
The decrease was mainly due to the operating loss recorded by newly opened L&O
hotels during their ramp-up period. Excluding the impact of newly
opened hotels, income from operations was RMB88.5 million, a year-over-year decrease of
12.3%, with a margin of 31.5%.
Income from operations for the first nine months of 2021 was
RMB205.6 million (US$31.9 million) [1], a year-over-year increase of 2.4%.
Net income was RMB33.0
million (US$5.1
million) [1], compared to RMB85.6 million in the third quarter of 2020 and
net margin was 10.6%. The year-over-year decrease was mainly
attributable to the operating loss recorded by newly opened L&O
hotels during their ramp-up period. Net income for the first nine months of 2021 was RMB179.3 million (US$27.8
million) [1], a year-over-year increase of 8.5%.
Adjusted EBITDA
(non-GAAP) [2] was RMB73.7 million (US$11.4
million) [1], a year-over-year decrease of
33.5%. Adjusted EBITDA margin, defined as adjusted EBITDA
(non-GAAP) as a percentage of total revenues, was 23.7%, compared
to 41.5% a year ago. Excluding the impact
of newly opened hotels, Adjusted EBITDA was RMB107.3 million, with a margin of
38.2%. Adjusted EBITDA (non-GAAP) for the first nine months of 2021 was RMB248.9 million (US$38.6
million) [1], a year-over-year increase of 10.7%.
Core net income (non-GAAP) was RMB50.2 million (US$7.8
million) [1], a year-over-year decrease of
45.7%. The core net margin, defined as core net income (non-GAAP)
as a percentage of total revenues, was 16.2%, compared to 34.6% one
year ago. Core net income (non-GAAP) for the first nine months of 2021 was
RMB173.0 million (US$26.8 million) [1], a year-over-year decrease of
11.2%.
Earnings per ADS (basic and diluted) were RMB0.33 (US$0.05) [1], down from
RMB0.81 one year ago. Core
net income per ADS (basic and diluted) (non-GAAP) was RMB0.49 (US$0.08) [1], down
from RMB0.90 a year ago.
Earnings per ADS (basic and diluted) for the first nine months of 2021 was RMB1.80 (US$0.28) [1] up from
RMB1.71 one year ago. Core net income
per ADS (basic and diluted) (non-GAAP) was RMB1.68 (US$0.26) [1] for the nine
months of 2021, a decrease from
RMB1.89 a year ago.
Cash flow. Operating cash inflow was RMB116.8 million (US$18.1 million) [1] as
a result of income from operations. Investing cash outflow was
RMB171.3 million (US$26.6 million) [1], which was
primarily attributable to acquisition costs of our L&O hotels,
investments and deposits of property and equipment, loans to
franchisees, and purchases of short-term investments. The investing
cash outflow was partially offset by proceeds from repayment from
franchisees, and proceeds from
short-term investments. Financing cash outflow was RMB48.4 million (US$7.5 million). Operating cash inflow for the
first nine months of 2021 was
RMB159.7 million (US$24.8 million) [1]. Investing
cash outflow for the first nine
months of 2021 was RMB672.0 million
(US$104.3
million) [1]. Financing cash inflow for
first nine months of 2021 was
RMB101.5 million (US$15.7 million) [1].
Cash and cash equivalents, restricted cash, short-term
investments, investments in equity securities and time
deposit. As of September 30,
2021, the Company had total cash and cash equivalents,
restricted cash, short term investments, investments in equity
securities and time deposits of RMB1,192.1
million (US$185.0
million) [1], compared to RMB1,291.0 million as of June 30, 2021. The
decrease from the prior quarter was primarily attributable to
acquisition costs of our L&O hotels, loans to
franchisees and property
investments, offset by drawing down of bank facilities.
COVID-19 Update
During the third quarter, RevPAR decreased in July due to the
worsened Covid-19 situation in Nanjing city and in Jiangsu Province. Fortunately, RevPAR
rebounded quickly to around 100% of the 2019 level in the middle of
September. But due to the outbreak of cases in different cities
nationwide, it dropped to
about 81.3% of its 2019 level
during the first week of November but then recovered gradually to
about 98.5% of its 2019 level
in the last week of December thanks to
the resilience of our business model, well-segmented and
robust brand portfolio and the loyalty and stickiness of our
members.
Guidance
Assuming the recent resurgence of COVID-19 outbreaks remains under control in
China in the coming quarters, the
Company expects an increase in total revenues of 25%-30% for the
full year 2021, compared to 2020 and an increase in total revenues
of 7%-12% for the full year 2021, compared to 2019.
The guidance set forth above reflects the Company's current and
preliminary views based on our recovery speed and may not be
indicative of the final financial results for future interim
periods and the full year.
Conference Call
GreenTree's management will hold an earnings conference call at
8:00 PM U.S. Eastern Time on
January 12, 2022 (9:00 AM Beijing/Hong Kong Time on January 13, 2022).
Dial-in numbers for the live conference call are as follows:
International
|
1-412-902-4272
|
Mainland
China
|
4001-201-203
|
US
|
1-888-346-8982
|
Hong
Kong
|
800-905-945 or
852-3018-4992
|
Singapore
|
800-120-6157
|
Participants should ask to join the GreenTree call, please dial
in approximately 10 minutes before the scheduled time of the
call.
A telephone replay of the conference call will be available
after the conclusion of the live conference call until January 19, 2022.
Dial-in numbers for the replay are as follows:
International
Dial-in
|
1-412-317-0088
|
U.S. Toll
Free
|
1-877-344-7529
|
Canada Toll
Free
|
855-669-9658
|
Passcode:
|
6891497
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.998.com.
Use of Non-GAAP Financial Measures
We believe that
Adjusted EBITDA and core net income, as we present it, is a useful
financial metric to assess our operating and financial performance
before the impact of investing and financing transactions, income
taxes and certain non-core and non-recurring items in our financial
statements.
|
The presentation of Adjusted EBITDA and core net income should
not be construed as an indication that our future results will be
unaffected by other charges and gains we consider to be outside the
ordinary course of our business.
The use of Adjusted EBITDA and core net income has certain
limitations because it does not reflect all items of income and
expenses that affect our operations. Items excluded from Adjusted
EBITDA and core net income are significant components in
understanding and assessing our operating and financial
performance. Depreciation and amortization expense for various
long-term assets, income tax and share-based compensation have been
and will be incurred and are not reflected in the presentation of
Adjusted EBITDA. Each of these items should also be considered in
the overall evaluation of our results. Additionally, Adjusted
EBITDA and core net income does not consider capital expenditures
and other investing activities and should not be considered as a
measure of our liquidity. We compensate for these limitations by
providing the relevant disclosure of our depreciation and
amortization, interest expense/income, gains/losses from
investments in equity securities, income tax expenses, share-based
compensation, share of loss in equity investees, government
subsidies and other relevant items both in our reconciliations to
the corresponding U.S. GAAP financial measures and in our
consolidated financial statements, all of which should be
considered when evaluating our performance.
The term Adjusted EBITDA and core net income is not defined
under U.S. GAAP, and Adjusted EBITDA and core net income is not a
measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
our operating and financial performance, you should not consider
this data in isolation or as a substitute for our net income,
operating income or any other operating performance measure that is
calculated in accordance with U.S. GAAP. In addition, our Adjusted
EBITDA and core net income may not be comparable to Adjusted EBITDA
and core net income or similarly titled measures utilized by other
companies since such other companies may not calculate Adjusted
EBITDA and core net income in the same manner as we do.
Reconciliations of the Company's non-GAAP financial measures,
including Adjusted EBITDA and core net income, to the consolidated
statement of operations information are included at the end of this
press release.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company")
(NYSE: GHG) is a leading hospitality management group in
China. As of September 30, 2021, GreenTree had a total number
of 4,626 hotels. In 2020, HOTELS magazine ranked GreenTree Top 12
Ranking among 225 largest global hotel groups in terms of number of
hotels in its annual HOTELS' 225. GreenTree was also the fourth
largest hospitality company in China in 2020 based on the statistics issued
by the China Hospitality Association.
GreenTree has a broad portfolio of diverse brands spanning from
the economy to mid-scale, up-scale and luxury segments of the
hospitality industry mainly in China. Through its strong membership base,
expansive booking network, superior system management with moderate
charges, and fully supported by its operating departments including
Decoration, Engineering, Purchasing, Operation, IT and Finance,
GreenTree aims to keep closer relationships with all of its clients
and partners by providing a diverse brand portfolio that features
comfort, style and value.
For more information on GreenTree, please
visit http://ir.998.com
Safe Harbor Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. In some cases, these
forward-looking statements can be identified by words or phrases
such as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to," "confident," "future," or other similar expressions.
GreenTree may also make written or oral forward-looking statements
in its reports filed with or furnished to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Any
statements that are not historical facts, including statements
about or based on GreenTree's current beliefs, expectations,
assumptions, estimates and projections about us and our industry,
are forward-looking statements that involve known and unknown
factors, risks and uncertainties that may cause our actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. Such
factors and risks include, but not limited to the following:
GreenTree's goals and growth strategies; its future business
development, financial condition and results of operations; trends
in the hospitality industry in China and globally; competition in our
industry; fluctuations in general economic and business conditions
in China and other regions where
we operate; the regulatory environment in which we and our
franchisees operate; and assumptions underlying or related to any
of the foregoing. You should not place undue reliance on these
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. All
information provided, including the forward-looking statements
made, in this press release are current as of the date of the press
release. Except as required by law, GreenTree undertakes no
obligation to update any such information or forward-looking
statements to reflect events or circumstances after the date on
which the information is provided or statements are made, or to
reflect the occurrence of unanticipated events.
Financial Tables and Operational Data Follow
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
December
31,
|
|
September
30,
|
|
September
30,
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
611,358,209
|
|
198,989,361
|
|
30,882,665
|
Short-term
investments
|
301,983,182
|
|
518,915,595
|
|
80,534,438
|
Investments in equity
securities
|
242,378,696
|
|
243,135,861
|
|
37,734,094
|
Accounts receivable,
net of allowance
|
101,511,057
|
|
106,600,534
|
|
16,544,143
|
Amounts due from
related parties
|
9,770,871
|
|
146,685,649
|
|
22,765,256
|
Prepaid
rent
|
13,597,867
|
|
19,120,240
|
|
2,967,415
|
Inventories
|
3,804,680
|
|
2,259,917
|
|
350,734
|
Other current
assets
|
77,649,794
|
|
176,685,447
|
|
27,421,150
|
Loans receivable,
net
|
222,244,629
|
|
320,772,059
|
|
49,783,043
|
Total current
assets
|
1,584,298,985
|
|
1,733,164,663
|
|
268,982,938
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
22,369,900
|
|
22,299,900
|
|
3,460,890
|
Long-term time
deposits
|
490,000,000
|
|
160,000,000
|
|
24,831,611
|
Loans receivable,
net
|
145,703,988
|
|
335,166,679
|
|
52,017,053
|
Property and
equipment, net
|
668,605,661
|
|
992,679,468
|
|
154,061,438
|
Intangible assets,
net
|
491,513,073
|
|
539,647,424
|
|
83,751,967
|
Goodwill
|
100,231,487
|
|
105,397,148
|
|
16,357,381
|
Long-term
investments
|
369,525,917
|
|
184,034,186
|
|
28,561,658
|
Other
assets
|
66,635,394
|
|
286,179,925
|
|
44,414,427
|
Deferred tax
assets
|
156,070,112
|
|
142,433,816
|
|
22,105,382
|
TOTAL
ASSETS
|
4,094,954,517
|
|
4,501,003,209
|
|
698,544,745
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
loans
|
150,000,000
|
|
240,000,000
|
|
37,247,416
|
Accounts
payable
|
19,606,344
|
|
20,287,040
|
|
3,148,499
|
Advance from
customers
|
34,305,508
|
|
26,037,866
|
|
4,041,013
|
Amounts due to
related parties
|
3,198,253
|
|
5,114,422
|
|
793,746
|
Salary and welfare
payable
|
51,567,587
|
|
57,101,423
|
|
8,862,002
|
Deferred
rent
|
1,356,132
|
|
1,400,795
|
|
217,400
|
Deferred
revenue
|
221,314,997
|
|
231,325,052
|
|
35,901,085
|
Accrued expenses and
other current liabilities
|
300,696,673
|
|
369,967,995
|
|
57,418,133
|
Income tax
payable
|
87,483,970
|
|
66,955,205
|
|
10,391,285
|
Total current
liabilities
|
869,529,464
|
|
1,018,189,798
|
|
158,020,579
|
|
|
|
|
|
|
Deferred
rent
|
28,642,973
|
|
56,737,678
|
|
8,805,550
|
Deferred
revenue
|
361,901,369
|
|
326,029,164
|
|
50,598,933
|
Other long-term
liabilities
|
115,862,713
|
|
135,523,772
|
|
21,032,959
|
Deferred tax
liabilities
|
178,413,413
|
|
176,422,515
|
|
27,380,345
|
Unrecognized tax
benefits
|
290,679,902
|
|
314,534,332
|
|
48,814,963
|
TOTAL
LIABILITIES
|
1,845,029,834
|
|
2,027,437,259
|
|
314,653,329
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Class A ordinary
shares
|
222,587,070
|
|
222,587,070
|
|
34,544,972
|
Class B ordinary
shares
|
115,534,210
|
|
115,534,210
|
|
17,930,628
|
Additional paid-in
capital
|
1,149,280,404
|
|
1,150,764,901
|
|
178,595,912
|
Retained
earnings
|
570,042,924
|
|
755,706,412
|
|
117,283,796
|
Accumulated other
comprehensive income
|
45,586,647
|
|
45,487,996
|
|
7,059,626
|
Total GreenTree
Hospitality Group Ltd.
shareholders' equity
|
2,103,031,255
|
|
2,290,080,589
|
|
355,414,934
|
|
|
|
|
|
|
Non-controlling
interests
|
146,893,428
|
|
183,485,361
|
|
28,476,482
|
Total
shareholders' equity
|
2,249,924,683
|
|
2,473,565,950
|
|
383,891,416
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND
SHAREHOLDERS' EQUITY
|
4,094,954,517
|
|
4,501,003,209
|
|
698,544,745
|
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-
operated hotels
|
66,823,544
|
|
106,518,761
|
|
16,531,452
|
|
150,961,027
|
|
279,514,243
|
|
43,379,930
|
Franchised-and-
managed hotels
|
194,060,899
|
|
194,002,860
|
|
30,108,772
|
|
470,258,096
|
|
589,609,423
|
|
91,505,948
|
Others
|
5,983,132
|
|
9,922,553
|
|
1,539,956
|
|
19,034,407
|
|
29,589,847
|
|
4,592,272
|
Total
revenues
|
266,867,575
|
|
310,444,174
|
|
48,180,180
|
|
640,253,530
|
|
898,713,513
|
|
139,478,150
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
costs
|
(108,025,295)
|
|
(172,797,324)
|
|
(26,817,724)
|
|
(292,705,145)
|
|
(459,464,624)
|
|
(71,307,792)
|
Selling and
marketing
expenses
|
(21,273,500)
|
|
(16,450,435)
|
|
(2,553,067)
|
|
(51,114,478)
|
|
(56,271,856)
|
|
(8,733,255)
|
General and
administrative
expenses
|
(44,782,915)
|
|
(68,776,812)
|
|
(10,673,994)
|
|
(121,672,457)
|
|
(195,778,639)
|
|
(30,384,368)
|
Other operating
expenses
|
(434,792)
|
|
(760,850)
|
|
(118,083)
|
|
(1,633,064)
|
|
(4,907,140)
|
|
(761,576)
|
Total
operating
costs and
expenses
|
(174,516,502)
|
|
(258,785,421)
|
|
(40,162,868)
|
|
(467,125,144)
|
|
(716,422,259)
|
|
(111,186,991)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income
|
8,577,445
|
|
3,225,248
|
|
500,551
|
|
27,671,358
|
|
23,278,837
|
|
3,612,819
|
Income from
operations
|
100,928,518
|
|
54,884,001
|
|
8,517,863
|
|
200,799,744
|
|
205,570,091
|
|
31,903,978
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
and other, net
|
23,140,692
|
|
15,797,161
|
|
2,451,680
|
|
47,861,876
|
|
45,079,808
|
|
6,996,276
|
Interest
expense
|
(203,604)
|
|
(2,485,865)
|
|
(385,800)
|
|
(2,941,850)
|
|
(9,963,790)
|
|
(1,546,356)
|
Gains (losses)
from investment
in equity
securities
|
2,905,553
|
|
(16,729,522)
|
|
(2,596,381)
|
|
(9,734,782)
|
|
27,143,814
|
|
4,212,654
|
Other income,
net
|
517,981
|
|
3,495,891
|
|
542,555
|
|
517,981
|
|
3,495,891
|
|
542,554
|
Income before
income taxes
|
127,289,140
|
|
54,961,666
|
|
8,529,917
|
|
236,502,969
|
|
271,325,814
|
|
42,109,106
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(41,821,938)
|
|
(22,507,756)
|
|
(3,493,149)
|
|
(72,398,501)
|
|
(93,047,550)
|
|
(14,440,753)
|
Income before
share of gains in
equity
investees
|
85,467,202
|
|
32,453,910
|
|
5,036,768
|
|
164,104,468
|
|
178,278,264
|
|
27,668,353
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of gains in
equity investees,
net of tax
|
170,211
|
|
543,250
|
|
84,311
|
|
1,118,542
|
|
1,007,147
|
|
156,306
|
Net
income
|
85,637,413
|
|
32,997,160
|
|
5,121,079
|
|
165,223,010
|
|
179,285,411
|
|
27,824,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss/(income)
attributable to
non-controlling
interests
|
(2,347,248)
|
|
1,438,345
|
|
223,228
|
|
10,563,167
|
|
6,378,077
|
|
989,863
|
Net income
attributable to
ordinary shareholders
|
83,290,165
|
|
34,435,505
|
|
5,344,307
|
|
175,786,177
|
|
185,663,488
|
|
28,814,522
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
0.81
|
|
0.33
|
|
0.05
|
|
1.71
|
|
1.80
|
|
0.28
|
Class B ordinary
share-basic and
diluted
|
0.81
|
|
0.33
|
|
0.05
|
|
1.71
|
|
1.80
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
per ADS
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
0.81
|
|
0.33
|
|
0.05
|
|
1.71
|
|
1.80
|
|
0.28
|
Class B ordinary
share-basic and
diluted
|
0.81
|
|
0.33
|
|
0.05
|
|
1.71
|
|
1.80
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
68,286,954
|
|
68,286,954
|
|
68,286,954
|
|
68,286,954
|
|
68,286,954
|
|
68,286,954
|
Class B ordinary
share-basic and
diluted
|
34,762,909
|
|
34,762,909
|
|
34,762,909
|
|
34,762,909
|
|
34,762,909
|
|
34,762,909
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive
income, net of
tax
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
(11,616,690)
|
|
1,275,061
|
|
197,886
|
|
(7,800,682)
|
|
(98,651)
|
|
(15,311)
|
Unrecognized
gain on an
available-for-
sale
|
6,750,000
|
|
-
|
|
-
|
|
6,750,000
|
|
-
|
|
-
|
Comprehensive
income, net of
tax
|
80,770,723
|
|
34,272,221
|
|
5,318,965
|
|
164,172,328
|
|
179,186,760
|
|
27,809,348
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss/(income)
attributable to
non-controlling
interests
|
(2,347,248)
|
|
1,438,345
|
|
223,228
|
|
10,563,167
|
|
6,378,077
|
|
989,862
|
Comprehensive
income
attributable to
ordinary
shareholders
|
78,423,475
|
|
35,710,566
|
|
5,542,193
|
|
174,735,495
|
|
185,564,837
|
|
28,799,211
|
|
GreenTree
Hospitality Group Ltd.
|
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
85,637,413
|
|
32,997,160
|
|
5,121,079
|
|
165,223,010
|
|
179,285,411
|
|
27,824,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net
income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
18,063,004
|
|
21,297,943
|
|
3,305,389
|
|
50,068,849
|
|
61,735,788
|
|
9,581,244
|
Share of (gains) in
equity method
investments
|
(170,211)
|
|
(543,250)
|
|
(84,311)
|
|
(1,118,542)
|
|
(1,007,147)
|
|
(156,306)
|
Fair value change in
returnable
consideration and contingent
consideration, net
|
-
|
|
-
|
|
-
|
|
-
|
|
(502,712)
|
|
(78,020)
|
Gains from disposal
of a long-term
investment
|
-
|
|
(3,491,312)
|
|
(541,843)
|
|
-
|
|
(3,491,312)
|
|
(541,843)
|
Interest
income
|
(2,217,211)
|
|
(2,695,728)
|
|
(418,370)
|
|
(7,059,071)
|
|
(6,550,758)
|
|
(1,016,662)
|
Bad debt
expense
|
4,123,789
|
|
6,183,876
|
|
959,723
|
|
22,052,714
|
|
26,645,020
|
|
4,135,242
|
(Gains)losses from
investments in
equity securities
|
(2,905,553)
|
|
18,728,741
|
|
2,906,655
|
|
9,734,782
|
|
(25,144,595)
|
|
(3,902,380)
|
Foreign exchange
(gains) losses
|
(51,687)
|
|
(750,812)
|
|
(116,524)
|
|
(261,556)
|
|
1,756,830
|
|
272,656
|
Share-based
compensation
|
-
|
|
537,492
|
|
83,417
|
|
232,558
|
|
1,845,357
|
|
286,395
|
Income tax expenses
related to
dividend distribution or retained
profits
|
6,486,874
|
|
-
|
|
-
|
|
14,576,403
|
|
-
|
|
-
|
Contingent
consideration included
in other current liabilities and other
assets
|
2,046,066
|
|
-
|
|
-
|
|
2,046,066
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
operating assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(4,658,499)
|
|
4,488,038
|
|
696,533
|
|
(43,356,590)
|
|
(28,358,558)
|
|
(4,401,179)
|
Prepaid
rent
|
642,280
|
|
8,674,595
|
|
1,346,276
|
|
10,564,530
|
|
(5,522,373)
|
|
(857,059)
|
Inventories
|
(1,274,556)
|
|
(146,806)
|
|
(22,784)
|
|
(1,511,933)
|
|
1,533,638
|
|
238,017
|
Amounts due from
related parties
|
8,625,331
|
|
3,274,808
|
|
508,242
|
|
10,135,528
|
|
(598,730)
|
|
(92,921)
|
Other current
assets
|
(18,021,028)
|
|
12,185,993
|
|
1,891,236
|
|
(3,193,950)
|
|
(111,534,002)
|
|
(17,309,805)
|
Other
assets
|
(8,142,812)
|
|
(10,374,644)
|
|
(1,610,120)
|
|
(17,157,334)
|
|
(18,159,564)
|
|
(2,818,320)
|
Accounts
payable
|
4,598,670
|
|
2,194,915
|
|
340,645
|
|
7,487,666
|
|
680,702
|
|
105,643
|
Amounts due to
related parties
|
521,868
|
|
(241,489)
|
|
(37,479)
|
|
(1,526,433)
|
|
1,916,169
|
|
297,385
|
Salary and welfare
payable
|
8,405,275
|
|
264,466
|
|
41,044
|
|
9,778,026
|
|
5,533,836
|
|
858,838
|
Deferred
revenue
|
6,439,785
|
|
(1,658,924)
|
|
(257,461)
|
|
(32,603,970)
|
|
(25,862,150)
|
|
(4,013,743)
|
Advance from
customers
|
(339,768)
|
|
(1,678,033)
|
|
(260,427)
|
|
(8,097,688)
|
|
(8,122,664)
|
|
(1,260,618)
|
Accrued expenses and
other
current liabilities
|
36,865,011
|
|
(1,709,467)
|
|
(265,305)
|
|
16,760,864
|
|
50,679,045
|
|
7,865,264
|
Income tax
payable
|
15,896,890
|
|
15,513,591
|
|
2,407,672
|
|
(30,522,077)
|
|
(20,528,765)
|
|
(3,186,014)
|
Unrecognized tax
benefits
|
16,917,849
|
|
2,454,572
|
|
380,944
|
|
13,707,938
|
|
23,854,430
|
|
3,702,149
|
Deferred
rent
|
632,148
|
|
12,736,350
|
|
1,976,651
|
|
4,783,547
|
|
28,139,368
|
|
4,367,161
|
Other long-term
liabilities
|
424,893
|
|
5,577,611
|
|
865,632
|
|
1,603,859
|
|
19,811,059
|
|
3,074,628
|
Deferred
taxes
|
(3,180,335)
|
|
(7,044,162)
|
|
(1,093,237)
|
|
(15,548,950)
|
|
11,645,398
|
|
1,807,337
|
Net cash provided by
operating
activities
|
175,365,486
|
|
116,775,524
|
|
18,123,277
|
|
176,798,246
|
|
159,678,721
|
|
24,781,748
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and
equipment
|
(26,948,009)
|
|
(93,109,989)
|
|
(14,450,444)
|
|
(68,576,946)
|
|
(250,998,814)
|
|
(38,954,405)
|
Purchases of
intangible assets
|
-
|
|
(201,746)
|
|
(31,310)
|
|
(9,075)
|
|
(201,746)
|
|
(31,310)
|
Proceeds from
disposal of
property and equipment
|
60,262
|
|
-
|
|
-
|
|
71,387
|
|
-
|
|
-
|
Payment for
acquisition of minority
equity
|
-
|
|
-
|
|
-
|
|
-
|
|
(868,388)
|
|
(134,772)
|
Acquisitions, net of
cash received
|
(6,660,000)
|
|
(4,112,459)
|
|
(638,244)
|
|
(7,915,807)
|
|
(177,241,084)
|
|
(27,507,385)
|
Advances for
purchases of
property and equipment
|
-
|
|
-
|
|
-
|
|
-
|
|
(204,889,383)
|
|
(31,798,334)
|
Repayment of advances
for
purchases of property and
equipment
|
-
|
|
22,400,000
|
|
3,476,425
|
|
-
|
|
22,400,000
|
|
3,476,425
|
Repayment of advances
for
acquisitions
|
872,700
|
|
1,069,500
|
|
165,984
|
|
36,312,700
|
|
11,217,500
|
|
1,740,929
|
Purchases of
short-term
investments
|
(610,180)
|
|
(61,635,884)
|
|
(9,565,739)
|
|
(148,300,207)
|
|
(199,922,194)
|
|
(31,027,438)
|
Proceeds from
short-term
investments
|
8,817,211
|
|
42,805,509
|
|
6,643,311
|
|
407,451,316
|
|
399,540,539
|
|
62,007,719
|
Proceeds from sales
of long-term
time deposits
|
-
|
|
-
|
|
-
|
|
-
|
|
50,000,000
|
|
7,759,878
|
Increase of long-term
time
deposits
|
-
|
|
-
|
|
-
|
|
(30,000,000)
|
|
(130,000,000)
|
|
(20,175,684)
|
Proceeds from
disposal of equity
securities and dividends received
from equity securities
|
5,345,656
|
|
-
|
|
-
|
|
7,886,074
|
|
211,307,112
|
|
32,794,350
|
Proceeds from
disposal of equity
method investments
|
|
|
-
|
|
-
|
|
6,380,000
|
|
-
|
|
-
|
Loan to related
parties
|
(119,400,000)
|
|
(52,546,988)
|
|
(8,155,165)
|
|
(304,766,500)
|
|
(284,292,548)
|
|
(44,121,512)
|
Repayment from
related parties
|
111,100,000
|
|
1,750,000
|
|
271,596
|
|
297,256,179
|
|
150,415,500
|
|
23,344,120
|
Loan to third
parties
|
(3,800,000)
|
|
-
|
|
-
|
|
(7,000,000)
|
|
(10,500,000)
|
|
(1,629,574)
|
Repayment of loan
from third
parties
|
-
|
|
-
|
|
-
|
|
-
|
|
46,500,000
|
|
7,216,687
|
Loan to
franchisees
|
(59,310,002)
|
|
(121,148,898)
|
|
(18,802,014)
|
|
(205,761,780)
|
|
(581,584,192)
|
|
(90,260,451)
|
Repayment from
franchisees
|
35,586,060
|
|
93,467,363
|
|
14,505,907
|
|
70,801,095
|
|
277,141,562
|
|
43,011,696
|
Net cash (used in)
provided by
investing activities
|
(54,946,302)
|
|
(171,263,592)
|
|
(26,579,693)
|
|
53,828,436
|
|
(671,976,136)
|
|
(104,289,061)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Loan from non-controlling
interest
|
-
|
|
-
|
|
-
|
|
-
|
|
2,792,853
|
|
433,444
|
Repayment of
short-term
borrowings
|
(10,000,000)
|
|
(50,000,000)
|
|
(7,759,878)
|
|
(10,000,000)
|
|
(50,000,000)
|
|
(7,759,878)
|
Proceeds from
short-term
borrowings
|
2,997,225
|
|
-
|
|
-
|
|
21,437,555
|
|
140,000,000
|
|
21,727,659
|
Capital contribution
from
noncontrolling interest holders
|
2,884,202
|
|
1,650,000
|
|
256,076
|
|
6,262,589
|
|
8,681,000
|
|
1,347,270
|
Net cash provided
by (used in)
financing activities
|
(4,118,573)
|
|
(48,350,000)
|
|
(7,503,802)
|
|
17,700,144
|
|
101,473,853
|
|
15,748,495
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes
on cash and cash equivalents
|
(1,474,708)
|
|
(220,197)
|
|
(34,174)
|
|
(882,510)
|
|
(1,615,286)
|
|
(250,687)
|
Net
increase(decrease) in cash
and cash equivalents and
restricted cash
|
114,825,903
|
|
(103,058,265)
|
|
(15,994,392)
|
|
247,444,316
|
|
(412,438,848)
|
|
(64,009,505)
|
Cash and cash
equivalents and
restricted cash at the beginning of
the period
|
474,778,636
|
|
324,347,526
|
|
50,337,947
|
|
342,160,223
|
|
633,728,109
|
|
98,353,060
|
Cash and cash
equivalents and
restricted cash at the end of the
period
|
589,604,539
|
|
221,289,261
|
|
34,343,555
|
|
589,604,539
|
|
221,289,261
|
|
34,343,555
|
|
GreenTree
Hospitality Group Ltd.
|
|
|
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
85,637,413
|
|
32,997,160
|
|
5,121,079
|
|
165,223,010
|
|
179,285,411
|
|
27,824,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income
|
8,577,445
|
|
3,225,248
|
|
500,551
|
|
27,671,358
|
|
23,278,837
|
|
3,612,819
|
Interest income and
other,
net
|
23,140,692
|
|
15,797,161
|
|
2,451,681
|
|
47,861,876
|
|
45,079,808
|
|
6,996,276
|
Gains from investment
in
equity securities
|
2,905,553
|
|
-
|
|
-
|
|
45,440,136
|
|
27,143,814
|
|
4,212,654
|
Share of gains in
equity
investees, net of tax
|
170,211
|
|
543,250
|
|
84,311
|
|
1,118,542
|
|
1,007,147
|
|
156,307
|
Other income,
net
|
517,981
|
|
3,495,891
|
|
542,554
|
|
517,981
|
|
3,495,891
|
|
542,554
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
expenses
|
434,792
|
|
760,850
|
|
118,082
|
|
1,633,064
|
|
4,907,140
|
|
761,576
|
Income tax
expense
|
41,821,938
|
|
22,507,756
|
|
3,493,149
|
|
72,398,501
|
|
93,047,550
|
|
14,440,753
|
Interest
expense
|
203,604
|
|
2,485,865
|
|
385,800
|
|
2,941,850
|
|
9,963,790
|
|
1,546,356
|
Depreciation and
amortization
|
18,063,004
|
|
21,297,943
|
|
3,305,389
|
|
50,068,849
|
|
61,735,788
|
|
9,581,244
|
Losses from
investment in
equity securities
|
-
|
|
16,729,522
|
|
2,596,381
|
|
55,174,918
|
|
-
|
|
-
|
Adjusted
EBITDA(Non-
GAAP)
|
110,848,869
|
|
73,717,546
|
|
11,440,783
|
|
224,830,299
|
|
248,934,182
|
|
38,633,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
September
30, 2020
|
|
September
30, 2021
|
|
September
30, 2021
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
85,637,413
|
|
32,997,160
|
|
5,121,079
|
|
165,223,010
|
|
179,285,411
|
|
27,824,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
Government subsidies
(net
of 25% tax)
|
1,005,153
|
|
287,650
|
|
44,643
|
|
14,217,238
|
|
11,422,522
|
|
1,772,748
|
Gains from investment
in
equity securities (net of
25% tax)
|
2,179,165
|
|
-
|
|
-
|
|
34,080,102
|
|
20,357,861
|
|
3,159,490
|
Other
income (net of 25%
tax)
|
388,486
|
|
2,621,918
|
|
406,915
|
|
388,486
|
|
2,621,918
|
|
406,915
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
-
|
|
537,492
|
|
83,417
|
|
232,558
|
|
1,845,357
|
|
286,395
|
Losses from
investments in
equity securities (net of
25% tax)
|
-
|
|
12,547,142
|
|
1,947,286
|
|
50,081,189
|
|
-
|
|
-
|
One-time fees
and
expense
|
3,839,368
|
|
7,004,623
|
|
1,087,100
|
|
3,839,368
|
|
21,711,927
|
|
3,369,638
|
Asset
impairment/Accrued
bad debt
|
-
|
|
-
|
|
-
|
|
9,501,082
|
|
4,523,574
|
|
702,048
|
Income tax
expenses
related to dividend
distribution
|
6,486,874
|
|
-
|
|
-
|
|
14,576,403
|
|
-
|
|
-
|
Core net
income(Non-
GAAP)
|
92,390,851
|
|
50,176,849
|
|
7,787,325
|
|
194,767,784
|
|
172,963,968
|
|
26,843,587
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income
per ADS
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary
share-
basic and
diluted
|
0.90
|
|
0.49
|
|
0.08
|
|
1.89
|
|
1.68
|
|
0.26
|
Class B ordinary
share-
basic and diluted
|
0.90
|
|
0.49
|
|
0.08
|
|
1.89
|
|
1.68
|
|
0.26
|
Operational Data
|
2020
Q3
|
2021
Q3
|
|
Total hotels in
operation:
|
4,195
|
4,626
|
|
Leased-and-owned hotels
|
37
|
62
|
|
Franchised
hotels
|
4,158
|
4,564
|
|
Total hotel
rooms in operation
|
305,125
|
334,162
|
|
Leased-and-owned hotels
|
4,620
|
7,062
|
|
Franchised
hotels
|
300,505
|
327,100
|
|
Number of
cities
|
341
|
362
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
2020
Q3
|
2021
Q3
|
Occupancy
rate (as a
percentage)
|
|
|
Leased-and-owned
hotels
|
70.6%
|
65.2%
|
Franchised
hotels
|
79.3%
|
72.6%
|
Blended
|
79.1%
|
72.4%
|
Average
daily rate (in
RMB)
|
|
|
Leased-and-owned
hotels
|
171
|
223
|
Franchised
hotels
|
151
|
161
|
Blended
|
151
|
163
|
RevPAR (in
RMB)
|
|
|
Leased-and-owned
hotels
|
121
|
146
|
Franchised
hotels
|
120
|
117
|
Blended
|
120
|
118
|
|
|
|
|
|
|
|
Number of Hotels
in Operation
|
Number of Hotel
Rooms in
Operation
|
|
2020
Q3
|
2021
Q3
|
2020
Q3
|
2021
Q3
|
Luxury
|
20
|
30
|
4,042
|
5,974
|
Argyle
|
20
|
30
|
4,042
|
5,974
|
Mid-to-up-scale
|
337
|
488
|
30,303
|
44,662
|
GreenTree
Eastern
|
137
|
189
|
14,305
|
20,283
|
Deepsleep
Hotel
|
3
|
6
|
221
|
417
|
Gem
|
33
|
41
|
3,016
|
3,770
|
Gya
|
39
|
59
|
3,340
|
5,030
|
Vx
|
32
|
74
|
2,563
|
6,589
|
Ausotel
|
12
|
16
|
1,561
|
2,109
|
Urban Garden and
others[1]
|
81
|
103
|
5,297
|
6,464
|
Mid-scale
|
2,684
|
2,912
|
217,922
|
229,632
|
GreenTree
Inn
|
2,113
|
2,147
|
178,179
|
177,770
|
GT
Alliance
|
321
|
513
|
24,560
|
36,534
|
GreenTree
Apartment
|
13
|
16
|
862
|
1,098
|
Vatica
|
123
|
112
|
8,925
|
8,115
|
City 118 Selected
and
others[1]
|
114
|
124
|
5,396
|
6,115
|
Economy
hotels
|
1,154
|
1,196
|
52,858
|
53,894
|
Shell
|
593
|
633
|
25,791
|
27,406
|
City 118 and
others[1]
|
561
|
563
|
27,067
|
26,488
|
Total
|
4,195
|
4,626
|
305,125
|
334,162
|
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-21-3617-4886 ext. 7999
E-mail: ir@998.com
Mr. Nicky Zheng
Phone: +86-21-3617-4886 ext. 6708
E-mail: ir@998.com
Christensen
In Shanghai
Ms. Constance Zhang
Phone: +86-138-1645-1798
E-mail: czhang@christensenIR.com
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: khui@christensenIR.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
View original
content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-third-quarter-2021-financial-results-301459978.html
SOURCE GreenTree Hospitality Group Ltd.