- Total revenues decreased by 20.5% year over year to RMB
329.7million (US$45.4
million)[1].
- Income from operations was
RMB84.4 million (US$11.6 million)[1] compared
to RMB98.6 million for the
second quarter of 2023.
- Net income was RMB62.3 million
(US$8.6 million)[1] compared
to RMB101.9 million for the
second quarter of 2023.
- Adjusted EBITDA
(non-GAAP)[2] decreased
34.5% year over year to
RMB83.1 million
(US$11.4 million)[1].
- Core net income
(non-GAAP)[3] increased
2.4% year over year to RMB70.2million
(US$9.7
million)[1]
SHANGHAI, Aug. 15,
2024 /PRNewswire/ -- GreenTree Hospitality Group Ltd.
(NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a
leading hospitality and restaurant management group in China, today announced its unaudited financial
results for the second quarter of 2024.
|
[1].The conversion of
Renminbi ("RMB") into United States dollars ("US$") is based on the
exchange rate of US$1.00=RMB 7.2672 on March 31, 2024 as set forth
in H.10 statistical release of the U.S. Federal Reserve Board and
available at
https://www.federalreserve.gov/releases/h10/20220103/.
|
|
[2].Adjusted EBITDA
(non-GAAP) is calculated as net income plus other operating
expenses, income tax expense, share of loss in equity investees,
net of tax, interest expense, depreciation and amortization, losses
from investment in equity securities and other general expenses,
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 above mentioned
definition.
|
|
[3].Core net income is
calculated as net income plus share-based compensation, losses from
investments in equity securities (net of 25% tax), other
expense(net of 25% tax), one-time fees and expense, and other
general expenses 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).
|
Second Quarter
of 2024 Operational
Highlights
Hotels
- A total of 4,272 hotels with 312,734 hotel rooms were in
operation as of June 30, 2024.
- The Company opened 44 hotels and had a pipeline of 1,022 hotels
contracted for or under development as of June 30, 2024.
- The average daily room rate was RMB173, a decrease of 4.3% from
RMB181 in the second quarter of 2023.
- The occupancy rate was 72.5%, down from 77.8% in the
second quarter of 2023.
- Revenue per available room, or RevPAR, was RMB125, a 10.8% year-over-year
decrease.
Restaurants
- A total of 183 restaurants were in operation as of
June 30, 2024.
- The AC (average check) was RMB53,
a 6.0% year-over-year decrease.
- The ADT (average daily tickets) was 90,
down from 109 in the second quarter of
2023.
- The ADS (average daily sales per store) was RMB4,737, a decrease of 22.1% from
RMB6,082 in the
second quarter of 2023.
"In the second quarter, we faced challenges as China's economy continued to recover. We
believe both consumers and businesses exercised caution in
discretionary spending, which had a negative impact on our overall
performance. However, we continued to upgrade a number of hotels in
our portfolio in order to better respond to increasing competition.
While we believe this will help our performance in the future,
second quarter hotel revenues decreased 14.8% year-over-year.
We continued to execute on our strategy to return our restaurant
business to profitability by moving away from leased-and-operated
restaurants in supermarkets and regional shopping centers towards
franchised street stores. As a result, the net income turned
positive this quarter after breaking even last quarter compared to
losses in both corresponding quarters a year ago. Our focus is now
fully on growing the number of franchised street stores and stores
with stable consumer traffic," said Mr. Alex S. Xu, Chairman and Chief Executive Office
of GreenTree.
Second Quarter Of 2024 Financial
Results
|
Quarter
Ended
|
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
|
RMB
|
RMB
|
RMB
|
RMB
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
|
Revenues
|
|
|
|
|
|
Leased-and-operated
revenues
|
131,490,687
|
78,963,181
|
(565,963)
|
209,887,905
|
|
Franchised-and-managed
revenues
|
177,936,543
|
2,201,340
|
-
|
180,137,883
|
|
Wholesales and
others
|
1,188,730
|
23,775,051
|
-
|
24,963,781
|
|
Total
revenues
|
310,615,960
|
104,939,572
|
(565,963)
|
414,989,569
|
|
Quarter
Ended
|
|
June 30,
2024
|
June 30,
2024
|
June
30,
2024
|
June
30,
2024
|
June
30,
2024
|
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
Total
|
|
Revenues
|
|
|
|
|
|
|
Leased-and-operated
revenues
|
105,851,820
|
43,306,857
|
-
|
149,158,677
|
20,524,917
|
|
Franchised-and-managed
revenues
|
157,810,770
|
2,234,412
|
-
|
160,045,182
|
22,022,950
|
|
Wholesales and
others
|
940,479
|
19,752,299
|
(184,981)
|
20,507,797
|
2,821,967
|
|
Total
revenues
|
264,603,069
|
65,293,568
|
(184,981)
|
329,711,656
|
45,369,834
|
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
|
RMB
|
RMB
|
RMB
|
RMB
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
|
Revenues
|
|
|
|
|
|
Leased-and-operated
revenues
|
213,563,927
|
168,340,074
|
(1,125,179)
|
380,778,822
|
|
Franchised-and-managed
revenues
|
347,417,000
|
3,165,259
|
-
|
350,582,259
|
|
Wholesales and
others
|
2,225,579
|
60,623,330
|
-
|
62,848,909
|
|
Total
revenues
|
563,206,506
|
232,128,663
|
(1,125,179)
|
794,209,990
|
|
Six Month
Ended
|
|
June 30,
2024
|
June 30,
2024
|
June
30,
2024
|
June
30,
2024
|
June
30,
2024
|
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
Total
|
|
Revenues
|
|
|
|
|
|
|
Leased-and-operated
revenues
|
228,393,613
|
89,674,836
|
-
|
318,068,449
|
43,767,675
|
|
Franchised-and-managed
revenues
|
308,970,282
|
3,769,753
|
-
|
312,740,035
|
43,034,461
|
|
Wholesales and
others
|
2,085,206
|
49,505,598
|
(460,202)
|
51,130,602
|
7,035,805
|
|
Total
revenues
|
539,449,101
|
142,950,187
|
(460,202)
|
681,939,086
|
93,837,941
|
Total revenues were RMB329.7
million (US$45.4
million)[1]，a 20.5% year-over-year decrease.
Hotel revenues of 2024 were RMB264.6 million (US$36.4
million)[1], a 14.8% year-over-year decrease.
There were two major reasons: first, a 10.8% year-over-year
decrease in Revpar ; second, the closure of 5 L&O hotels in the
second quarter due to lease expiration and strategic decisions; and
partially setoff by new openings.
Restaurant revenues were of 2024 RMB65.3 million
(US$9.0 million)[1], a
37.8% year-over-year decrease, mainly due to lower ADS and the
decrease in the number of L&O stores due to the closure of
unprofitable L&O stores.
Total revenues for the first half of 2024 were RMB681.9 million (US$93.8
million)[1], a 14.1% year-over-year decrease.
Total revenues from leased-and-operated, or L&O,
hotels and restaurants were RMB149.2 million (US$20.5 million)[1], a 28.9%
year-over-year decrease.
Total revenues from L&O hotels were RMB105.9 million (US$14.6 million)[1], a 19.5%
year-over-year decrease. The decrease was primarily attributable to
a 7.3% year-over-year decrease in the second quarter RevPAR of
L&O hotels, 5 L&O hotels closed and reduction
of sublease revenues mainly due to the disposal of a
property.
Total revenues from L&O restaurants were RMB43.3 million (US$6.0 million)[1], a 45.2%
year-over-year decrease, mainly due to the closure of L&O
restaurants since the third quarter of 2023 and the year-over-year
decrease in ADS.
Total revenues from L&O hotels and restaurants for the first
half of 2024 were RMB318.1
million (US$43.8 million)[1],
a 16.5% year-over-year decrease.
Total revenues from franchised-and-managed, or F&M,
hotels and restaurants were RMB160.0 million (US$22.0
million)[1], a 11.2% year-over-year
decrease.
Total revenues from F&M hotels were RMB157.8 million (US$21.7
million)[1], a 11.3% year-over-year decrease,
primary due to a 10.9% decrease in F&M hotels'
Revpar and remodeling.
Total revenues from F&M restaurants were RMB2.2 million (US$0.3
million)[1], a 1.5% year-over-year
increase, as we opened more F&M stores.
Total revenues from F&M hotels and restaurants for the first
half of 2024 were RMB312.7 million (US$43.0 million)[1], a 10.8%
year-over-year decrease.
Total revenues from wholesale and others were
RMB17.8% year-over-year decrease, mainly due to the decline in the
wholesale segment of the restaurant business.
Total revenues from wholesale and others for the first half of
2024 were RMB51.1 million (US$7.0
million)[1], a 18.6% year-over-year decrease.
Total operating costs and expenses
|
Quarter
Ended
|
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
|
RMB
|
RMB
|
RMB
|
RMB
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
|
Operating costs
and
expenses
|
|
|
|
|
|
Operating
costs
|
150,127,380
|
95,088,176
|
(308,417)
|
244,907,139
|
|
Selling and
marketing
expenses
|
13,762,606
|
4,446,065
|
-
|
18,208,671
|
|
General and
administrative
expenses
|
44,443,478
|
9,675,734
|
-
|
54,119,212
|
|
Other operating
expenses
|
692,344
|
5,649,391
|
-
|
6,341,735
|
|
Other general
expenses
|
4,309,239
|
-
|
-
|
4,309,239
|
|
Total operating
costs and
expenses
|
213,335,047
|
114,859,366
|
(308,417)
|
327,885,996
|
|
Quarter
Ended
|
|
June 30,
2024
|
June 30,
2024
|
June 30,
2024
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
Total
|
|
Operating costs
and
expenses
|
|
|
|
|
|
|
Operating
costs
|
143,382,640
|
55,127,026
|
(184,981)
|
198,324,685
|
27,290,385
|
|
Selling and
marketing
expenses
|
13,222,891
|
2,636,823
|
-
|
15,859,714
|
2,182,369
|
|
General and
administrative
expenses
|
54,927,567
|
6,606,681
|
-
|
61,534,248
|
8,467,394
|
|
Other operating
expenses
|
271,943
|
(60,032)
|
-
|
211,911
|
29,160
|
|
Other general
expenses
|
5,911,956
|
-
|
-
|
5,911,956
|
813,512
|
|
Total operating
costs
and expenses
|
217,716,997
|
64,310,498
|
(184,981)
|
281,842,514
|
38,782,820
|
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
June 30,
2023
|
|
RMB
|
RMB
|
RMB
|
RMB
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
|
Operating costs
and
expenses
|
|
|
|
|
|
Operating
costs
|
284,364,378
|
204,308,159
|
(610,088)
|
488,062,449
|
|
Selling and
marketing
expenses
|
24,838,605
|
9,385,645
|
-
|
34,224,250
|
|
General and
administrative
expenses
|
90,535,547
|
21,338,810
|
-
|
111,874,357
|
|
Other operating
expenses
|
843,564
|
6,990,654
|
-
|
7,834,218
|
|
Other general
expenses
|
15,973,584
|
-
|
-
|
15,973,584
|
|
Total operating
costs and
expenses
|
416,555,678
|
242,023,268
|
(610,088)
|
657,968,858
|
|
Six Month
Ended
|
|
June 30,
2024
|
June 30,
2024
|
June 30,
2024
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
|
Hotel
|
Restaurant
|
Elimination
|
Total
|
Total
|
|
Operating costs
and
expenses
|
|
|
|
|
|
|
Operating
costs
|
289,609,282
|
117,276,623
|
(440,869)
|
406,445,036
|
55,928,698
|
|
Selling and
marketing
expenses
|
28,677,514
|
5,591,136
|
(19,333)
|
34,249,317
|
4,712,863
|
|
General and
administrative
expenses
|
93,397,198
|
15,778,679
|
-
|
109,175,877
|
15,023,101
|
|
Other operating
expenses
|
938,244
|
1,481,949
|
-
|
2,420,193
|
333,030
|
|
Other general
expenses
|
11,756,531
|
-
|
-
|
11,756,531
|
1,617,753
|
|
Total operating
costs
and expenses
|
424,378,769
|
140,128,387
|
(460,202)
|
564,046,954
|
77,615,445
|
Operating costs were RMB 198.3 million
(US$27.3 million)[1],
a 19.0% year-over-year decrease.
Operating costs of the hotel business were RMB143.4 million (US$19.7
million)[1], a 4.5% year-over-year decrease.
The decrease was mainly due to the lower personnel costs, lower
hotel related material consumption, and lower utilities given lower
occupancy rate and the closure of L&O hotels, offset by
increased rental costs and depreciation and amortization due to
newly opened L&O hotels since the third quarter of 2023.
Operating costs of the restaurant business were RMB55.1million (US$7.6
million)[1], a 42.0% year-over-year decrease, due
to closure of L&O stores.
For the first half of 2024, operating costs were RMB406.4
million (US$55.9
million)[1], representing a 16.7% decrease.
Selling and marketing expenses were RMB15.9 million (US$2.2 million)[1], a 12.9%
year-over-year decrease.
Selling and marketing expenses of the hotel business were
RMB13.2 million (US$1.8 million)[1], a 3.9%
year-over-year decrease. The decrease was mainly due to lower
advertising expenses.
Selling and marketing expenses of the restaurant business were
RMB2.6 million (US$0.4 million)[1], a 40.7%
year-over-year decrease, mainly attributable to lower sales staff
related expenses.
For the first half of 2024, selling and marketing expenses
were RMB34.2 million (US$4.7
million)[1], a 0.1% increase.
General and administrative, or G&A expenses were
RMB61.5 million (US$8.5 million)[1], a 13.7%
year-over-year increase.
G&A expenses of the hotel business were RMB54.9 million (US$7.6
million)[1], a 23.6% year-over-year increase. The
increase was mainly due to an increase in bad debt provisions for
long-aged account receivables.
G&A expenses of the restaurant business were RMB6.6 million (US$0.9
million)[1], a 31.7% year-over-year decrease,
mainly due to lower staff related expenses.
General and administrative expenses for the first half of 2024
were RMB109.2 million (US$15.0
million)[1], a 2.4% year-over-year decrease.
Other general expenses were RMB5.9 million (US$0.8
million)[1], a 37.2% year-over-year increase.
These expenses recorded provisions for loan receivables related to
franchisee loans. This provision was made in consideration of the
potential increase in bad debt rates for franchisees who were
already overdue.
Other general expenses for the first half of 2024
were RMB11.8 million (US$1.6
million)[1], a 26.4% year-over-year decrease.
Gross profit was RMB131.4 million (US$18.1 million)[1], a
year-over-year decrease of 22.8%. Gross margin was 39.8%,
compared to 41.0% a year ago. The gross profit of the hotel
business was RMB121.2 million (US$16.7 million)[1], a 24.5%
year-over-year decrease. The gross profit of the restaurant
business was RMB10.2 million (US$1.4 million)[1], a 3.2%
year-over-year increase.
Income from operations was RMB84.4 million (US$11.6 million)[1] ,
compared to income from operations of RMB98.6 million in the second quarter
of 2023, with a margin of 25.6%.
Income from operations of the hotel business was
RMB81.6 million (US$11.2 million)[1], compared to an
income from operations of RMB108.5
million in the second quarter of 2023, with a margin of
30.8%.
Income from operations of the restaurant business was
RMB2.9 million (US$0.4 million)[1], compared to income
from operations of RMB-9.6
million in the second quarter of 2023, with a margin of
4.4%.
Income from operations for the first half of 2024
was RMB156.7 million (US$21.6
million)[1] compared to income from
operations of RMB150.9 million in 2023, with a margin of
23.0%.
Net income was RMB62.3million (US$8.6 million)[1], compared to a
net income of RMB101.9
million in the second quarter of 2023, and net margin
was 18.9%.
Net income of the hotel business was RMB63.1 million (US$8.7 million)[1], compared to a
net income of RMB114.0 million in the second quarter
of 2023, and net margin was 23.9%.
Net income of the restaurant business of 2024
was RMB3.7 million (US$0.5 million)[1], compared to a
net lose of RMB11.9 million in
the second quarter of 2023,and net margin was 5.6%.
Net income for the first half of 2024 was
RMB 119.6million (US$16.5million)[1], compared to a net
loss of RMB 134.5 million in 2023, and net margin
was 17.5%.
Adjusted EBITDA (non-GAAP)[2] in the
second quarter of 2024 was RMB 83.1
million (US$11.4
million)[1], a year-over-year decrease of 34.5%.
Adjusted EBITDA margin, defined as adjusted EBITDA
(non-GAAP)[2] as a percentage of total revenues,
was 25.2%, compared to 30.6% a year ago.
Adjusted EBITDA (non-GAAP)[2] for the first half
of 2024 was RMB 192.5 million (US$26.5 million)[1], a year-over-year
decrease of 12.6%.
Core net income
(non-GAAP)[3] in the
second quarter of 2024 was RMB 70.2 million (US$9.7 million)[1], a year-over-year
increase of 2.4%. The core net margin, defined as core net income
(non-GAAP)[3] as a percentage
of total revenues, was 21.3%, compared to 16.5% one year ago.
Core net income
(non-GAAP)[3] for the first
half of 2024 was RMB 130.9
million (US$18.0
million)[1], a year-over-year increase of
10.4%.
Earnings per American Depositary Share, or ADS, (basic and
diluted) were RMB0.61 (US$0.36 )[1], a decrease
from RMB1.01 one year ago.
Earnings per American Depositary Share, or ADS, (basic and
diluted) for the first half of 2024 were RMB1.19 (US$0.16 )[1], a decrease
from RMB1.37 one year ago.
Core net income per ADS (basic and diluted) (non-GAAP) was
RMB0.69 (US$0.10 )[1], an increase
from RMB0.67 a year ago.
Core net income per ADS (basic and diluted) (non-GAAP)
was RMB1.29 (US$0.18)[1] for the first
half of 2024, an increase from RMB1.16 a
year ago.
Cash flow Operating cash inflow was RMB69.2 million (US$9.5
million)[1] as a result of income from
operations. Investing cash inflow for the second quarter of 2024
was RMB157.6 million (US$21.7 million)[1], which was
primarily attributable to the gain from the disposal of a property
and also benefit from repayment of loans from franchisees.
Financing cash outflow was RMB1.0
million (US$0.1
million)[1],mainly due to the repayment of bank
loans.
Cash and cash equivalents, restricted cash, short-term
investments, investments in equity securities and time
deposits. As of June 30,
2024, the Company had total cash and cash equivalents,
restricted cash, short term investments, investments in equity
securities and time deposits of RMB1,737.2million (US$239.0 million)[1],compared to
RMB1,517.3 million as of March 31, 2024. The increase was mainly
attributable to continued operating cash inflow, disposal of
property, and repayment of loans from franchisees.
Guidance
Considering our performance during the first half of the year
and the impact of closing certain L&O hotels due to lease
expirations and strategic decisions, we have revised our revenue
guidance for the hotel business. We now anticipate its performance
in 2024 to remain flat compared to 2023.
The guidance set forth above reflects the Company's current and
preliminary views based on its recovery and may not be indicative
of the final financial results for any future periods or the full
year.
Dividend distribution
The board of directors has approved the payment of a cash
dividend of US$0.10 per ordinary
share, or US$0.10 per American
Depositary Sahre("ADS") payable to holders of the Company's
ordinary shares shown on the Company's record at the close of
trading on September 30,2024(the
"Record Date").
Conference Call
GreenTree's management will hold an earnings conference call at
8:00 AM U.S. Eastern Time on
August 15, 2024, (8:00 PM Beijing/Hong Kong Time on August 15,
2024).
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 August 22, 2024.
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:
|
2914023
|
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 them, are useful financial metrics 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 do 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 terms Adjusted EBITDA and core net income are not defined
under U.S. GAAP, and Adjusted EBITDA and core net income are not
measures 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 and restaurant management
group in China. As of June 30, 2024, GreenTree had a
total number of 4,272 hotels and 183 restaurants. In 2023,
HOTELS magazine ranked GreenTree 11th among the 225 largest global
hotel groups in terms of number of hotels in its annual HOTELS'
225. GreenTree was the fourth largest hospitality company in
China in 2023 according to
the China Hospitality Association. In 2023, GreenTree completed its
acquisition of Da Niang Dumplings and Bellagio, two leading
restaurant chain businesses in China.
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
|
June
30
|
June
30
|
|
2,023
|
2,024
|
2,024
|
|
RMB
|
RMB
|
US$
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
765,547,547
|
1,374,876,965
|
189,189,367
|
|
Restricted
cash
|
6,576,906
|
7,450,696
|
1,025,250
|
|
Short-term
investments
|
417,711,617
|
33,612
|
4,625
|
|
Investments in
equity securities
|
26,076,169
|
20,161,988
|
2,774,382
|
|
Accounts
receivable, net of
allowance
|
123,887,879
|
121,134,755
|
16,668,697
|
|
Amounts due from
related parties
|
19,928,781
|
20,078,953
|
2,762,956
|
|
Prepaid
rent
|
-
|
-
|
-
|
|
Inventories
|
20,462,490
|
6,309,470
|
868,212
|
|
Other current
assets
|
117,047,122
|
121,704,746
|
16,747,130
|
|
Loans receivable,
net
|
129,521,094
|
96,796,622
|
13,319,658
|
|
Deferred tax
assets
|
-
|
-
|
-
|
|
Total current
assets
|
1,626,759,605
|
1,768,547,807
|
243,360,277
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Amounts due from
a related party
|
110,000,000
|
110,000,000
|
15,136,504
|
|
Restricted
cash
|
19,476,259
|
19,315,343
|
2,657,880
|
|
Long-term time
deposits
|
63,340,000
|
285,700,000
|
39,313,628
|
|
Loans receivable,
net
|
70,690,305
|
36,685,137
|
5,048,043
|
|
Property and
equipment, net
|
814,949,026
|
669,043,887
|
92,063,503
|
|
Intangible
assets, net
|
117,720,693
|
115,281,993
|
15,863,330
|
|
Goodwill
|
177,082,468
|
177,082,468
|
24,367,358
|
|
Long-term
investments
|
184,758,800
|
175,521,257
|
24,152,528
|
|
Operating lease
right-of-use
assets
|
1,535,330,762
|
1,444,254,641
|
198,736,052
|
|
Other
assets
|
104,725,600
|
103,294,642
|
14,213,815
|
|
Deferred tax
assets
|
241,965,360
|
218,658,563
|
30,088,419
|
|
TOTAL
ASSETS
|
5,066,798,878
|
5,123,385,738
|
705,001,337
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Long-term bank
loans, current
portion
|
200,000
|
400,000
|
55,042
|
|
Short-term bank
loans
|
116,800,000
|
-
|
-
|
|
Accounts
payable
|
73,126,677
|
53,525,451
|
7,365,347
|
|
Advance from
customers
|
22,393,097
|
21,975,810
|
3,023,972
|
|
Amounts due to
related parties
|
16,310,293
|
14,905,639
|
2,051,084
|
|
Salary and
welfare payable
|
86,332,096
|
84,908,037
|
11,683,735
|
|
Deferred
rent
|
-
|
-
|
-
|
|
Deferred
revenue
|
186,281,838
|
178,834,473
|
24,608,442
|
|
Accrued expenses
and other
current liabilities
|
459,832,717
|
466,056,353
|
64,131,488
|
|
Income tax
payable
|
112,782,712
|
104,521,389
|
14,382,622
|
|
Dividends
payable
|
-
|
-
|
-
|
|
Operating lease
liabilities, current
|
267,536,846
|
263,079,422
|
36,200,933
|
|
Deferred tax
liabilities
|
-
|
-
|
-
|
|
Total current
liabilities
|
1,341,596,276
|
1,188,206,574
|
163,502,665
|
|
|
|
|
|
Long-term bank
loans
|
56,800,000
|
256,400,000
|
35,281,814
|
|
Deferred
rent
|
-
|
-
|
-
|
|
Deferred
revenue
|
207,905,769
|
183,650,198
|
25,271,108
|
|
Other long-term
liabilities
|
111,711,748
|
111,391,913
|
15,328,037
|
|
Operating lease
liabilities,
non-current
|
1,391,909,309
|
1,332,750,964
|
183,392,636
|
|
Deferred tax
liabilities
|
94,716,495
|
85,375,998
|
11,748,128
|
|
Unrecognized tax
benefits
|
382,125,786
|
375,929,696
|
51,729,648
|
|
TOTAL
LIABILITIES
|
3,586,765,383
|
3,533,705,343
|
486,254,036
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Class A ordinary
shares
|
222,587,070
|
222,587,070
|
30,629,000
|
|
Class B ordinary
shares
|
115,534,210
|
115,534,210
|
15,898,036
|
|
Paid-in
capital
|
-
|
-
|
-
|
|
Treasury
Stock
|
(36,677,832)
|
(36,677,832)
|
(5,047,038)
|
|
Additional paid-in
capital
|
1,680,713,349
|
1,680,178,673
|
231,200,280
|
|
Retained earnings
(Accumulated
losses)
|
(568,339,799)
|
(447,752,894)
|
(61,612,849)
|
|
Accumulated other
comprehensive income
|
28,401,282
|
20,295,531
|
2,792,758
|
|
Total GreenTree
Hospitality
Group Ltd. shareholders' equity
|
1,442,218,280
|
1,554,164,758
|
213,860,187
|
|
|
|
|
|
Non-controlling
interests
|
37,815,215
|
35,515,637
|
4,887,114
|
|
Total shareholders'
equity
|
1,480,033,495
|
1,589,680,395
|
218,747,301
|
|
|
|
|
|
TOTAL LIABILITIES
AND
SHAREHOLDERS' EQUITY
|
5,066,798,878
|
5,123,385,738
|
705,001,337
|
|
GreenTree
Hospitality Group Ltd.
|
|
Unaudited Condensed
Consolidated Statements of Comprehensive Income
|
|
Quarter
Ended
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Revenues
|
|
|
|
|
|
|
|
Leased-and-operated
revenues
|
209,887,905
|
149,158,677
|
20,524,917
|
380,778,822
|
318,068,449
|
43,767,675
|
|
Franchised-and-
managed
revenues
|
180,137,883
|
160,045,182
|
22,022,950
|
350,582,259
|
312,740,035
|
43,034,461
|
|
Wholesales and
others
|
24,963,781
|
20,507,797
|
2,821,967
|
62,848,909
|
51,130,602
|
7,035,805
|
|
Total
revenues
|
414,989,569
|
329,711,656
|
45,369,834
|
794,209,990
|
681,939,086
|
93,837,941
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Operating
costs
|
(244,907,139)
|
(198,324,685)
|
(27,290,385)
|
(488,062,449)
|
(406,445,036)
|
(55,928,698)
|
|
Selling and
marketing
expenses
|
(18,208,671)
|
(15,859,714)
|
(2,182,369)
|
(34,224,250)
|
(34,249,317)
|
(4,712,863)
|
|
General and
administrative
expenses
|
(54,119,212)
|
(61,534,248)
|
(8,467,394)
|
(111,874,357)
|
(109,175,877)
|
(15,023,101)
|
|
Other operating
expenses
|
(6,341,735)
|
(211,911)
|
(29,160)
|
(7,834,218)
|
(2,420,193)
|
(333,030)
|
|
Other general
expenses
|
(4,309,239)
|
(5,911,956)
|
(813,512)
|
(15,973,584)
|
(11,756,531)
|
(1,617,753)
|
|
Total operating
costs and
expenses
|
(327,885,996)
|
(281,842,514)
|
(38,782,820)
|
(657,968,858)
|
(564,046,954)
|
(77,615,445)
|
|
|
|
|
|
|
|
|
Other operating
income
|
11,511,398
|
36,542,303
|
5,028,388
|
14,670,917
|
38,768,236
|
5,334,687
|
|
Income from
operations
|
98,614,971
|
84,411,445
|
11,615,402
|
150,912,049
|
156,660,368
|
21,557,183
|
|
|
|
|
|
|
|
|
Interest income
and other, net
|
9,750,337
|
11,003,960
|
1,514,195
|
17,379,351
|
19,950,499
|
2,745,280
|
|
Interest
expense
|
(3,868,469)
|
(2,629,228)
|
(361,793)
|
(9,396,530)
|
(4,369,057)
|
(601,203)
|
|
Gains (losses)
from investment
in equity
securities
|
(263,836)
|
(6,172,071)
|
(849,305)
|
(4,800,398)
|
(15,424,655)
|
(2,122,503)
|
|
Other income,
net
|
43,295,830
|
3,556,454
|
489,384
|
41,146,248
|
16,791,024
|
2,310,522
|
|
Income before
income taxes
|
147,528,833
|
90,170,560
|
12,407,883
|
195,240,720
|
173,608,179
|
23,889,279
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(45,241,208)
|
(26,733,733)
|
(3,678,684)
|
(59,950,083)
|
(53,181,694)
|
(7,318,045)
|
|
Income (loss)
before share of
gains in equity
investees
|
102,287,625
|
63,436,827
|
8,729,199
|
135,290,637
|
120,426,485
|
16,571,234
|
|
|
|
|
|
|
|
|
Share of
loss/(income) in
equity investees,
net of tax
|
(341,265)
|
(1,174,966)
|
(161,681)
|
(786,883)
|
(869,757)
|
(119,683)
|
|
Net
income(loss)
|
101,946,360
|
62,261,861
|
8,567,518
|
134,503,754
|
119,556,728
|
16,451,551
|
|
|
|
|
|
|
|
|
Net loss/(income)
attributable to
non-controlling
interests
|
1,308,704
|
(571,587)
|
(78,653)
|
5,077,298
|
1,030,179
|
141,757
|
|
Net income
attributable to
ordinary
shareholders
|
103,255,064
|
61,690,274
|
8,488,865
|
139,581,052
|
120,586,907
|
16,593,308
|
|
|
|
|
|
|
|
|
Net earnings per
share
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
1.01
|
0.61
|
0.36
|
1.37
|
1.19
|
0.16
|
|
Class B ordinary
share-basic and
diluted
|
1.01
|
0.61
|
0.36
|
1.37
|
1.19
|
0.16
|
|
|
|
|
|
|
|
|
Net earnings per
ADS
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
1.01
|
0.61
|
0.36
|
1.37
|
1.19
|
0.16
|
|
Class B ordinary
share-basic and
diluted
|
1.01
|
0.61
|
0.36
|
1.37
|
1.19
|
0.16
|
|
|
|
|
|
|
|
|
Weighted
average shares
outstanding
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
67,416,046
|
66,780,612
|
9,189,318
|
67,416,046
|
66,780,612
|
9,189,318
|
|
Class B ordinary
share-basic and
diluted
|
34,762,909
|
34,762,909
|
4,783,535
|
34,762,909
|
34,762,909
|
4,783,535
|
|
|
|
|
|
|
|
|
Other
comprehensive
income, net of
tax
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
185,533
|
(487,856)
|
(67,131)
|
996,107
|
(8,105,751)
|
(1,115,388)
|
|
Unrealized
gains(loss) on
available-for-sale
investments, net
of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income, net of
tax
|
102,131,893
|
61,774,005
|
8,500,387
|
135,499,861
|
111,450,977
|
15,336,163
|
|
|
|
|
|
|
|
|
Comprehensive
loss/(income)
attributable to
non-controlling
interests
|
(4,843,631)
|
(571,587)
|
(78,653)
|
(1,075,037)
|
1,030,179
|
141,757
|
|
Comprehensive
income (loss)
attributable to
ordinary
shareholders
|
97,288,262
|
61,202,418
|
8,421,734
|
134,424,824
|
112,481,156
|
15,477,920
|
|
GreenTree
Hospitality Group Ltd.
|
|
Unaudited Hotel
Business Results
|
|
Quarter
Ended
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Revenues
|
|
|
|
|
|
|
|
Leased-and-operated
revenues
|
131,490,687
|
105,851,820
|
14,565,695
|
213,563,927
|
228,393,613
|
31,428,007
|
|
Franchised-and-
managed
revenues
|
177,936,543
|
157,810,770
|
21,715,485
|
347,417,000
|
308,970,282
|
42,515,726
|
|
Others
|
1,188,730
|
940,479
|
129,414
|
2,225,579
|
2,085,206
|
286,934
|
|
Total
revenues
|
310,615,960
|
264,603,069
|
36,410,594
|
563,206,506
|
539,449,101
|
74,230,667
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Hotel operating
costs
|
(150,127,380)
|
(143,382,640)
|
(19,730,108)
|
(284,364,378)
|
(289,609,282)
|
(39,851,563)
|
|
Selling and
marketing
expenses
|
(13,762,606)
|
(13,222,891)
|
(1,819,530)
|
(24,838,605)
|
(28,677,514)
|
(3,946,157)
|
|
General and
administrative
expenses
|
(44,443,478)
|
(54,927,567)
|
(7,558,285)
|
(90,535,547)
|
(93,397,198)
|
(12,851,882)
|
|
Other operating
expenses
|
(692,344)
|
(271,943)
|
(37,421)
|
(843,564)
|
(938,244)
|
(129,107)
|
|
Other general
expenses
|
(4,309,239)
|
(5,911,956)
|
(813,512)
|
(15,973,584)
|
(11,756,531)
|
(1,617,753)
|
|
Total operating
costs and
expenses
|
(213,335,047)
|
(217,716,997)
|
(29,958,856)
|
(416,555,678)
|
(424,378,769)
|
(58,396,462)
|
|
|
|
|
|
|
|
|
Other operating
income
|
11,183,689
|
34,667,783
|
4,770,446
|
13,791,785
|
36,850,398
|
5,070,784
|
|
Income from
operations
|
108,464,602
|
81,553,855
|
11,222,184
|
160,442,613
|
151,920,730
|
20,904,989
|
|
|
|
|
|
|
|
|
Interest income
and other, net
|
9,597,042
|
10,978,362
|
1,510,673
|
17,072,340
|
19,908,718
|
2,739,531
|
|
Interest
expense
|
(3,167,262)
|
(2,628,376)
|
(361,677)
|
(7,891,952)
|
(4,369,058)
|
(601,202)
|
|
Gains (losses)
from investment
in equity
securities
|
(263,836)
|
(1,474,720)
|
(202,928)
|
(4,800,398)
|
(10,784,976)
|
(1,484,062)
|
|
Other income,
net
|
43,122,904
|
3,404,139
|
468,425
|
40,696,364
|
16,709,039
|
2,299,240
|
|
Income before
income taxes
|
157,753,450
|
91,833,260
|
12,636,677
|
205,518,967
|
173,384,453
|
23,858,496
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(43,365,471)
|
(27,545,004)
|
(3,790,319)
|
(55,731,325)
|
(52,101,925)
|
(7,169,463)
|
|
Income (loss)
before share of
gains in equity
investees
|
114,387,979
|
64,288,256
|
8,846,358
|
149,787,642
|
121,282,528
|
16,689,033
|
|
|
|
|
|
|
|
|
Share of
loss/(income) in
equity investees,
net of tax
|
(341,265)
|
(1,174,966)
|
(161,681)
|
(786,883)
|
(869,757)
|
(119,683)
|
|
Net
income(loss)
|
114,046,714
|
63,113,290
|
8,684,677
|
149,000,759
|
120,412,771
|
16,569,350
|
|
GreenTree
Hospitality Group Ltd.
|
|
Unaudited Restaurant
Business Results
|
|
Quarter
Ended
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Revenues
|
|
|
|
|
|
|
|
Leased-and-operated
revenues
|
78,963,181
|
43,306,857
|
5,959,222
|
168,340,074
|
89,674,836
|
12,339,668
|
|
Franchised-and-
managed
revenues
|
2,201,340
|
2,234,412
|
307,465
|
3,165,259
|
3,769,753
|
518,735
|
|
Wholesales and
others
|
23,775,051
|
19,752,299
|
2,718,007
|
60,623,330
|
49,505,598
|
6,812,197
|
|
Total
revenues
|
104,939,572
|
65,293,568
|
8,984,694
|
232,128,663
|
142,950,187
|
19,670,600
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Restaurant
operating costs
|
(95,088,176)
|
(55,127,026)
|
(7,585,731)
|
(204,308,159)
|
(117,276,623)
|
(16,137,800)
|
|
Selling and
marketing
expenses
|
(4,446,065)
|
(2,636,823)
|
(362,839)
|
(9,385,645)
|
(5,591,136)
|
(769,366)
|
|
General and
administrative
expenses
|
(9,675,734)
|
(6,606,681)
|
(909,110)
|
(21,338,810)
|
(15,778,679)
|
(2,171,218)
|
|
Other operating
expenses
|
(5,649,391)
|
60,032
|
8,261
|
(6,990,654)
|
(1,481,949)
|
(203,923)
|
|
Other general
expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total operating
costs and
expenses
|
(114,859,366)
|
(64,310,498)
|
(8,849,419)
|
(242,023,268)
|
(140,128,387)
|
(19,282,307)
|
|
|
|
|
|
|
|
|
Other operating
income
|
327,709
|
1,874,520
|
257,943
|
879,132
|
1,917,838
|
263,903
|
|
Income from
operations
|
(9,592,085)
|
2,857,590
|
393,218
|
(9,015,473)
|
4,739,638
|
652,196
|
|
|
|
|
|
|
|
|
Interest income
and other, net
|
153,295
|
25,599
|
3,522
|
307,011
|
41,782
|
5,750
|
|
Interest
expense
|
(701,207)
|
(853)
|
(117)
|
(1,504,578)
|
-
|
-
|
|
Gains (losses)
from investment
in equity
securities
|
-
|
(57,672)
|
(7,936)
|
-
|
-
|
-
|
|
Other income,
net
|
172,926
|
43,236
|
5,949
|
449,884
|
(27,094)
|
(3,728)
|
|
Income before
income taxes
|
(9,967,071)
|
2,867,900
|
394,636
|
(9,763,156)
|
4,754,326
|
654,218
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(1,940,124)
|
811,271
|
111,635
|
(4,347,531)
|
(1,079,769)
|
(148,581)
|
|
Income (loss)
before share of
gains in equity
investees
|
(11,907,195)
|
3,679,171
|
506,271
|
(14,110,687)
|
3,674,557
|
505,637
|
|
|
|
|
|
|
|
|
Share of
loss/(income) in
equity investees,
net of tax
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Net
income(loss)
|
(11,907,195)
|
3,679,171
|
506,271
|
(14,110,687)
|
3,674,557
|
505,637
|
|
GreenTree
Hospitality Group Ltd.
|
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
|
Quarter
Ended
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net (loss)
income
|
101,946,360
|
62,261,861
|
8,567,518
|
134,503,754
|
119,556,728
|
16,451,551
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net
income to net
cash provided
by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
and
amortization
|
28,982,289
|
29,137,972
|
4,009,518
|
60,319,927
|
60,479,676
|
8,322,280
|
|
Impairment of
long-lived
assets
|
-
|
-
|
-
|
2,900,000
|
-
|
-
|
|
Share of
(income) loss
in equity
method
investments
|
341,265
|
1,174,966
|
161,681
|
786,883
|
869,757
|
119,683
|
|
Noncash lease
expense
|
70,769,259
|
72,411,404
|
9,964,141
|
134,823,091
|
137,229,448
|
18,883,400
|
|
Loss from
disposal of a
subsidiary
|
-
|
(839,682)
|
(115,544)
|
1,223,952
|
(839,682)
|
(115,544)
|
|
Interest
income
|
(1,267,532)
|
(5,216,887)
|
(717,868)
|
(1,657,910)
|
(5,216,887)
|
(717,868)
|
|
Bad debt
expenses
|
6,320,196
|
16,294,501
|
2,242,198
|
18,679,474
|
21,768,072
|
2,995,386
|
|
(Gains) losses
and impairment
on equity
securities held
|
263,836
|
6,172,071
|
849,305
|
4,800,398
|
15,424,655
|
2,122,503
|
|
Loss (gains) on
disposal of
property, plant
and equipment
|
341,428
|
(27,468,283)
|
(3,779,762)
|
227,841
|
(25,116,235)
|
(3,456,109)
|
|
Foreign
exchange
(gains) losses
|
(2,075,742)
|
(675,522)
|
(92,955)
|
(1,088,199)
|
(8,763,951)
|
(1,205,960)
|
|
Share-based
compensation
|
40,228
|
15,662
|
2,155
|
28,592
|
31,324
|
4,310
|
|
Common
control
acquisition
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Accounts
receivable
|
12,166,576
|
(9,573,578)
|
(1,317,368)
|
5,115,694
|
(7,729,151)
|
(1,063,567)
|
|
Inventories
|
6,481,086
|
2,827,794
|
389,117
|
7,450,726
|
14,889,563
|
2,048,872
|
|
Amounts due
from related
parties
|
2,589,713
|
697,431
|
95,970
|
1,628,528
|
299,828
|
41,258
|
|
Other current
assets
|
(27,171,354)
|
10,574,968
|
1,455,164
|
(34,898,036)
|
5,084,951
|
699,713
|
|
Other assets
|
982,532
|
3,957,871
|
544,621
|
5,946,767
|
1,300,958
|
179,018
|
|
Accounts
payable
|
(14,607,485)
|
(3,702,034)
|
(509,417)
|
(9,917,160)
|
(12,560,243)
|
(1,728,347)
|
|
Amounts due to
related parties
|
(47,036)
|
471,776
|
64,919
|
(1,679,391)
|
(1,404,655)
|
(193,287)
|
|
Salary and
welfare payable
|
1,978,299
|
2,882,934
|
396,705
|
6,472,864
|
(1,424,059)
|
(195,957)
|
|
Deferred
revenue
|
(1,377,240)
|
(24,826,323)
|
(3,416,216)
|
(5,859,113)
|
(31,702,936)
|
(4,362,469)
|
|
Advance from
customers
|
(7,260,648)
|
3,539,512
|
487,053
|
(3,657,822)
|
(417,287)
|
(57,421)
|
|
Accrued
expenses and
other current
liabilities
|
(8,464,829)
|
20,530,026
|
2,825,026
|
67,807,146
|
(3,285,616)
|
(452,116)
|
|
Income tax
payable
|
32,970,813
|
(16,508,534)
|
(2,271,650)
|
51,282,274
|
(8,261,323)
|
(1,136,796)
|
|
Unrecognized
tax benefits
|
16,935,503
|
(13,752,067)
|
(1,892,347)
|
31,960,399
|
(6,196,090)
|
(852,610)
|
|
Operating lease
liabilities
|
(68,614,626)
|
(67,855,157)
|
(9,337,180)
|
(124,678,168)
|
(109,769,095)
|
(15,104,730)
|
|
Other long-term
liabilities
|
(1,510,480)
|
(7,223,642)
|
(994,006)
|
(8,081,365)
|
(8,319,829)
|
(1,144,847)
|
|
Deferred
taxes
|
(3,137,502)
|
13,855,962
|
1,906,644
|
(31,332,490)
|
13,966,300
|
1,921,827
|
|
Net cash
provided by
operating
activities
|
147,574,909
|
69,165,002
|
9,517,422
|
313,108,656
|
159,894,221
|
22,002,173
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of
property, plant
and equipment
|
(37,617,117)
|
(9,639,401)
|
(1,326,426)
|
(71,733,234)
|
(20,193,926)
|
(2,778,777)
|
|
Purchases of
intangible
assets
|
(309,827)
|
-
|
-
|
(352,281)
|
-
|
-
|
|
Proceeds from
disposal of
property, plant
and equipment
|
7,723,107
|
138,000,000
|
18,989,432
|
14,696,681
|
139,733,100
|
19,227,914
|
|
Payment for
acquisition of
minority equity
|
-
|
(966,000)
|
(132,926)
|
-
|
(966,000)
|
(132,926)
|
|
Purchases of
short-term
investments
|
(51,370,000)
|
|
-
|
(51,370,000)
|
|
-
|
|
Proceeds from
short-term
investments
|
42,242,806
|
-
|
-
|
133,643,184
|
419,362,037
|
57,706,137
|
|
Increase of
long-term time
deposits
|
-
|
(222,230,000)
|
(30,579,866)
|
-
|
(222,230,000)
|
(30,579,866)
|
|
Purchases of
long-term
investments
|
-
|
222,230,000
|
30,579,866
|
-
|
-
|
-
|
|
Proceeds from
disposal of
equity securities
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Proceeds from
disposal of a
subsidiary
|
18,900,000
|
1,500,000
|
206,407
|
37,800,000
|
1,500,000
|
206,407
|
|
Loan to related
parties
|
-
|
(270,000)
|
(37,153)
|
-
|
(270,000)
|
(37,153)
|
|
Repayment
from related
parties
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Loan to third
parties
|
1,000,000
|
(1,200,000)
|
(165,125)
|
-
|
(1,200,000)
|
(165,125)
|
|
Repayment of
loan from third
parties
|
13,948,758
|
4,223,936
|
581,233
|
14,417,077
|
5,595,889
|
770,020
|
|
Loan to
fanchisees
|
(2,945,000)
|
(1,600,000)
|
(220,167)
|
(9,974,596)
|
(1,600,000)
|
(220,167)
|
|
Repayment
from
franchisees
|
34,286,988
|
27,516,214
|
3,786,357
|
61,121,572
|
50,977,221
|
7,014,699
|
|
Net cash (used
in) provided by
investing
activities
|
25,859,715
|
157,564,749
|
21,681,632
|
128,248,403
|
370,708,321
|
51,011,163
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Distribution to
the
shareholders
|
-
|
(760,321)
|
(104,624)
|
-
|
(760,321)
|
(104,624)
|
|
Repayment of
bank loans
|
136,600,000
|
(200,000)
|
(27,521)
|
-
|
(117,000,000)
|
(16,099,736)
|
|
Proceeds from
bank loans
|
(271,400,000)
|
-
|
-
|
(154,400,000)
|
200,000,000
|
27,520,916
|
|
Capital
contribution
from
non-controlling
interest holders
|
117,000,000
|
-
|
-
|
117,000,000
|
-
|
-
|
|
Net cash
provided by
(used in)
financing
activities
|
(17,800,000)
|
(960,321)
|
(132,145)
|
(37,400,000)
|
82,239,679
|
11,316,556
|
|
|
|
|
|
|
|
|
Effect of
exchange rate
changes on
cash and cash
equivalents and
restricted cash
|
383,577
|
(149,700)
|
(20,600)
|
343,051
|
(2,799,929)
|
(385,278)
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in
cash and cash
equivalents
|
156,018,201
|
225,619,730
|
31,046,309
|
404,300,110
|
610,042,292
|
83,944,614
|
|
Cash and cash
equivalents at
the beginning of
the period
|
982,911,111
|
1,176,023,274
|
161,826,188
|
734,629,202
|
791,600,712
|
108,927,883
|
|
Cash and cash
equivalents at
the end of
the period
|
1,138,929,312
|
1,401,643,004
|
192,872,497
|
1,138,929,312
|
1,401,643,004
|
192,872,497
|
|
GreenTree
Hospitality Group Ltd.
|
|
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
|
Quarter
Ended
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Net
income
|
101,946,360
|
62,261,861
|
8,567,518
|
134,503,754
|
119,556,728
|
16,451,551
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
Other operating
income
|
11,511,398
|
36,542,303
|
5,028,388
|
14,670,917
|
38,768,236
|
5,334,687
|
|
Interest income and
other, net
|
9,750,337
|
11,003,960
|
1,514,195
|
17,379,351
|
19,950,499
|
2,745,280
|
|
Share of gain in
equity investees,
net of tax
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other income,
net
|
43,295,830
|
3,556,454
|
489,384
|
41,146,248
|
16,791,024
|
2,310,522
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Other operating
expenses
|
6,341,735
|
211,911
|
29,160
|
7,834,218
|
2,420,193
|
333,030
|
|
Other general
expenses
|
4,309,239
|
5,911,956
|
813,512
|
15,973,584
|
11,756,531
|
1,617,753
|
|
Income tax
expenses (benefits)
|
45,241,208
|
26,733,733
|
3,678,684
|
59,950,083
|
53,181,694
|
7,318,045
|
|
Share of loss in
equity investees,
net of tax
|
341,265
|
1,174,966
|
161,681
|
786,883
|
869,757
|
119,683
|
|
Interest
expenses
|
3,868,469
|
2,629,228
|
361,793
|
9,396,530
|
4,369,057
|
601,203
|
|
Depreciation and
amortization
|
29,239,835
|
29,137,972
|
4,009,518
|
60,319,927
|
60,479,676
|
8,322,280
|
|
Losses from
investment in equity
securities
|
263,836
|
6,172,071
|
849,305
|
4,800,398
|
15,424,655
|
2,122,503
|
|
Other expense,
net
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Adjusted EBITDA
(Non-GAAP)
|
126,994,382
|
83,130,981
|
11,439,204
|
220,368,861
|
192,548,532
|
26,495,559
|
|
Quarter
Ended
|
Six Month
Ended
|
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2024
|
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
|
Net
income
|
101,946,360
|
62,261,861
|
8,567,518
|
134,503,754
|
119,556,728
|
16,451,551
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
Government
subsidies (net of
25% tax)
|
6,275,245
|
210,000
|
28,897
|
6,671,305
|
469,886
|
64,658
|
|
Gains from
investment in
equity securities
(net of 25% tax)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Other income (net
of 25% tax)
|
30,859,686
|
2,667,340
|
367,038
|
30,859,686
|
12,593,268
|
1,732,891
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Share-based
compensation
|
40,228
|
15,662
|
2,155
|
28,592
|
31,324
|
4,310
|
|
Losses from
investments in
equity securities
(net of 25% tax)
|
197,877
|
4,629,053
|
636,979
|
3,600,299
|
11,568,491
|
1,591,877
|
|
Other expense (net
of 25% tax)
|
(1,612,187)
|
-
|
-
|
-
|
-
|
-
|
|
One-time fees and
expenses
|
813,078
|
239,820
|
33,000
|
1,960,856
|
1,055,008
|
145,174
|
|
Other general
expenses
|
4,309,239
|
5,911,956
|
813,512
|
15,973,584
|
11,756,531
|
1,617,753
|
|
Core net income
(Non-GAAP)
|
68,559,664
|
70,181,012
|
9,657,229
|
118,536,094
|
130,904,928
|
18,013,116
|
|
|
|
|
|
|
|
|
Core net income
per ADS
(Non-GAAP)
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and
diluted
|
0.67
|
0.69
|
0.10
|
1.16
|
1.29
|
0.18
|
|
Class B ordinary
share-basic and
diluted
|
0.67
|
0.69
|
0.10
|
1.16
|
1.29
|
0.18
|
Hotel Operational Data
|
June 30,
2023
|
June 30,
2024
|
|
Total hotels in
operation:
|
4,108
|
4,272
|
|
Leased and owned hotels
|
65
|
62
|
|
Franchised hotels
|
4,043
|
4,210
|
|
Total hotel rooms in
operation
|
303,387
|
312,734
|
|
Leased and owned hotels
|
7,137
|
6,937
|
|
Franchised hotels
|
296,250
|
305,797
|
|
Number of
cities
|
357
|
353
|
|
|
|
|
Quarter
Ended
|
|
2023 Q2
|
2024
Q2
|
|
Occupancy rate
(as a percentage)
|
|
|
|
Leased-and-owned
hotels
|
74.6 %
|
70.7 %
|
|
Franchised
hotels
|
77.9 %
|
72.6 %
|
|
Blended
|
77.8 %
|
72.5 %
|
|
Average daily
rate (in RMB)
|
|
|
|
Leased-and-owned
hotels
|
255
|
250
|
|
Franchised
hotels
|
179
|
171
|
|
Blended
|
181
|
173
|
|
RevPAR (in
RMB)
|
|
|
|
Leased-and-owned
hotels
|
191
|
177
|
|
Franchised
hotels
|
139
|
124
|
|
Blended
|
141
|
125
|
|
Number of Hotels in
Operation
|
Number of Hotel
Rooms in
Operation
|
|
June 30,
2023
|
June
30,
2024
|
June 30,
2023
|
June 30,
2024
|
|
Mid-to-up-scale
|
438
|
505
|
42,338
|
47,697
|
|
GreenTree
Eastern
|
217
|
227
|
23,205
|
24,493
|
|
Deepsleep
Hotel
|
7
|
7
|
534
|
534
|
|
Gem
|
54
|
82
|
4,873
|
7,258
|
|
Gya
|
70
|
75
|
5,904
|
6,238
|
|
Vx
|
90
|
99
|
7,822
|
8,695
|
|
Others
|
-
|
15
|
-
|
499
|
|
Mid-scale
|
2,933
|
2,948
|
229,270
|
229,970
|
|
GreenTree
Inn
|
2,259
|
2,315
|
181,015
|
182,957
|
|
GT Alliance
|
545
|
503
|
39,091
|
37,923
|
|
GreenTree
Apartment
|
21
|
21
|
1,351
|
1,385
|
|
Vatica
|
108
|
109
|
7,813
|
7,705
|
|
City 118 Selected and
others
|
-
|
-
|
-
|
-
|
|
Economy
hotels
|
737
|
819
|
31,779
|
35,067
|
|
Shell
|
737
|
819
|
31,779
|
35,067
|
|
City 118 and
others
|
-
|
-
|
-
|
-
|
|
Total
|
4,108
|
4,272
|
303,387
|
312,734
|
Restaurant Operational Data
|
June 30,
2023
|
June 30,
2024
|
|
Total
restaurants in operation:
|
206
|
183
|
|
Leased and owned restaurants
|
57
|
24
|
|
Franchised restaurants
|
149
|
159
|
|
Number of
cities
|
66
|
57
|
|
Da Niang
Dumplings
|
170
|
155
|
|
Bellagio
|
36
|
28
|
|
|
|
|
Quarter
Ended
|
|
2023 Q2
|
2024
Q2
|
|
ADT
|
|
|
|
Leased-and-owned
restaurants
|
148
|
165
|
|
Franchised
restaurants
|
88
|
73
|
|
Blended
|
109
|
90
|
|
AC (in
RMB)
|
|
|
|
Leased-and-owned
restaurants
|
84
|
105
|
|
Franchised
restaurants
|
41
|
38
|
|
Blended
|
56
|
53
|
|
ADS (in
RMB)
|
|
|
|
Leased-and-owned
restaurants
|
12,456
|
17,306
|
|
Franchised
restaurants
|
3575
|
2,815
|
|
Blended
|
6,082
|
4,737
|
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Mr. Maple Miao
Phone: +86-181-0184-0639
E-mail: ir@998.com
Christensen
In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: jerry.xu@christensencomms.com
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: karen.hui@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
View original
content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-second-quarter-of-2024-financial-results-302223480.html
SOURCE GreenTree Hospitality Group Ltd.