GHG GreenTree Hospitality Group Ltd

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER 

PURSUANT TO RULE 13a-16 OR 15d-16 

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

November 2024

 

Commission File Number: 001-38425

 

GreenTree Hospitality Group Ltd. 

(Registrant’s name)

 

1228 Zhongshan North Road, Putuo District 

Shanghai 200065 

People’s Republic of China 

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  x            Form 40-F ¨

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	GREENTREE HOSPITALITY GROUP LTD.
	By:	/s/ Alex S. Xu
	Name:	Alex S. Xu
	Title:	Chairman and Chief Executive Officer

 

Date: November 25, 2024

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		GreenTree Hospitality Group Ltd. Reports Third Quarter 2024 Financial Results

 

 

 

 Exhibit 99.1

 

GreenTree Hospitality Group Ltd. Reports Third Quarter of 2024 Financial Results

 

·

Total revenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million)[1].

 

·

Income from operations was RMB106.4 million (US$15.2 million)[1] compared to RMB137.8 million for the third quarter of 2023.

 

·

Net income was RMB65.2 million (US$9.3 million)[1] compared to RMB117.4 million for the third quarter of 2023.

 

·

Adjusted EBITDA (non-GAAP) [2]decreased 32.1% year over year to RMB122.5million (US$17.5 million)[1]

 

·

Core net income (non-GAAP) [3]decreased 26.6% year over year to RMB93.5million (US$13.3 million)[1].

 

SHANGHAI, November 21, 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 third quarter of 2024.

 

Third Quarter of 2024 Operational Highlights

 

Hotels

 

·

A total of 4,336 hotels with 316,461 hotel rooms were in operation as of September 30, 2024.

 

·

The Company opened 109 hotels and had a pipeline of 1,085 hotels contracted for or under development as of September 30, 2024.

 

·

The average daily room rate was RMB181, a decrease of 6.0% from RMB192 in the third quarter of 2023.

 

·

The occupancy rate was 74.6%, decreased from 81.2% in the third quarter of 2023.

 

·

Revenue per available room, or RevPAR, was RMB135, a 13.6% year-over-year decrease.

 

 

1.The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.0176 on September 30, 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).

 

 

Restaurants

 

·

A total of 182 restaurants were in operation as of September 30, 2024

 

·

The AC (average check) was RMB46, a 15.9% year-over-year decrease.

 

·

The ADT (average daily tickets) was 106, decreased from 120 in the third quarter of 2023.

 

·

The ADS (average daily sales per store) was RMB4,891, a decrease of 25.6% from RMB6,570 in the third quarter of 2023.

 

Our hotel business improved in the third quarter over the first two quarters of this year as the economy continued to recover. Travel consumption returned to a more normal pattern following last year’s surge, which has influenced year-over-year comparisons. We are back to a more positive environment, focusing on growing our pipeline and upgrading numerous hotels across our portfolio. We are confident that we are on the right track and will benefit from the ongoing stimulus measures implemented by the government.

 

Our restaurant business’ net income remained positive for a second consecutive quarter as we continued to grow the number of franchised street stores and stores with stable consumer traffic. Such stores now account for 55.5% of our store count compared to 44.6% a year ago. Following the closing of unprofitable stores over the past year, the number restaurants in operation had stabilized at 182 at the end of quarter and we are now focused on growing that number,” said Mr. Alex S. Xu, Chairman and Chief Executive Office of GreenTree.

 

Third Quarter Of 2024 Financial Results

 

		Quarter Ended
		September  30, 2023				September  30, 2023				September  30, 2023				September  30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			151,839,044				80,358,490				49,624				232,247,158
Franchised-and-managed revenues			186,043,016				4,070,541				-				190,113,557
Wholesales and others			1,168,017				37,355,462				-				38,523,479
Total revenues			339,050,077				121,784,493				49,624				460,884,194

 

 

		Quarter Ended
		September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			118,159,125				41,117,277				-				159,276,402				22,696,706
Franchised-and-managed revenues			167,928,127				1,757,933				-				169,686,060				24,180,070
Wholesales and others			796,488				27,766,790				(544,290	)			28,018,988				3,992,674
Total revenues			286,883,740				70,642,000				(544,290	)			356,981,450				50,869,450

 

		Nine Month Ended
		September 30, 2023				September 30, 2023				September 30, 2023				September 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			365,402,970				248,698,564				(1,075,555	)			613,025,979
Franchised-and-managed revenues			533,460,017				7,235,800				-				540,695,817
Wholesales and others			3,393,596				97,978,792				-				101,372,388
Total revenues			902,256,583				353,913,156				(1,075,555	)			1,255,094,184

 

 

		Nine Month Ended
		September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			346,552,738				130,792,112				-				477,344,850				68,021,097
Franchised-and-managed revenues			476,898,409				5,527,686				-				482,426,095				68,745,169
Wholesales and others			2,881,694				77,272,388				(1,004,493	)			79,149,589				11,278,726
Total revenues			826,332,841				213,592,186				(1,004,493	)			1,038,920,534				148,044,992

 

Total revenues were RMB357.0 million (US$50.9 million), a 22.5% year-over-year decrease.

 

Hotel revenues were RMB286.9 million (US$40.9 million), a 15.4% year-over-year decrease due to a 13.6% year-over-year decrease in Revpar and the closure of 6 L&O hotels in the third quarter due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings.

 

Restaurant revenues were RMB70.6 million (US$10.1 million), a 42.0% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores. By the end of the third quarter, we had completed the strategic transformation of our business model.

 

Total revenues for the first nine months of 2024 were RMB1,038.9 million (US$148.0 million)^[1], a 17.2% year-over-year decrease.

 

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB159.3 million (US$22.7 million)^[1], a 31.4% year-over-year decrease.

 

 

Total revenues from L&O hotels were RMB118.2 million (US$16.8 million)^[1], a 22.2% year-over-year decrease. The decrease was primarily attributable to an 7.5% year-over-year decrease in the third quarter RevPAR of L&O hotels, the closing of 6 L&O hotels, and a reduction in sublease revenues mainly due to the disposal of a property.

 

Total revenues from L&O restaurants were RMB41.1 million (US$5.9 million)^[1], a 48.8% year-over-year decrease, mainly due to the closure of 29 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 nine months of 2024 were RMB477.3 million (US$68.0 million)^[1], a 22.1% year-over-year decrease.

 

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB169.7 million (US$24.2 million), a 10.7% year-over-year decrease.

 

Total revenues from F&M hotels were RMB167.9 million (US$23.9 million), a 9.7% year-over-year decrease, primary due to a 13.8% decrease in F&M hotels' Revpar and partially offset by new openings.

 

Total revenues from F&M restaurants were RMB1.8 million (US$0.3 million), a 56.8% year-over-year decrease, mainly due to the year-over-year decrease in ADS.

 

Total revenues from F&M hotels and restaurants for the first nine months of 2024 were RMB482.4 million (US$68.7 million)^[1], a 10.8% year-over-year decrease.

 

Total revenues from wholesale and others were RMB28.0M (US$4.0 million), a 27.3% 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 nine months of 2024 were RMB79.1 million (US$11.3 million), a 21.9% year-over-year decrease.

 

Total operating costs and expenses

 

		Quarter Ended
		September 30, 2023				September 30, 2023				September 30, 2023				September 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			159,920,582				87,814,484				49,623				247,784,689
Selling and marketing expenses			14,277,225				12,026,085				-				26,303,310
General and administrative expenses			26,655,780				11,858,500				-				38,514,280
Other operating expenses			180,515				120,654				-				301,169
Other general expenses			11,322,509				-				-				11,322,509
Total operating costs and expenses			212,356,611				111,819,723				49,623				324,225,957

 

 

		Quarter Ended
		September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			152,278,796				53,365,650				(475,648	)			205,168,798				29,236,320
Selling and marketing expenses			12,899,411				2,881,942				(68,642	)			15,712,711				2,239,043
General and administrative expenses			35,309,079				7,023,449				-				42,332,528				6,032,337
Other operating expenses			1,363,201				654,777				-				2,017,978				287,560
Other general expenses			-				-				-				-				-
Total operating costs and expenses			201,850,487				63,925,818				(544,290	)			265,232,015				37,795,260

 

		Nine Month Ended
		September 30, 2023				September 30, 2023				September 30, 2023				September 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			444,284,960				292,122,643				(560,465	)			735,847,138
Selling and marketing expenses			39,115,830				21,411,730				-				60,527,560
General and administrative expenses			117,191,327				33,197,310				-				150,388,637
Other operating expenses			1,024,079				7,111,308				-				8,135,387
Other general expenses			27,296,093				-				-				27,296,093
Total operating costs and expenses			628,912,289				353,842,991				(560,465	)			982,194,815

 

		Nine Month Ended
		September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			441,888,078				170,642,273				(916,517	)			611,613,834				87,154,274
Selling and marketing expenses			41,576,925				8,473,078				(87,975	)			49,962,028				7,119,532
General and administrative expenses			128,706,277				22,802,128				-				151,508,405				21,589,775
Other operating expenses			2,301,445				2,136,726				-				4,438,171				632,434
Other general expenses			11,756,531				-				-				11,756,531				1,675,292
Total operating costs and expenses			626,229,256				204,054,205				(1,004,492	)			829,278,969				118,171,308

 

 

Operating costs were 205.2 million (US$ 29.2 million)^[1], a 17.2% year-over-year decrease.

 

Operating costs of the hotel business were RMB152.3 million (US$21.7million)^[1], a 4.8% year-over-year decrease. The decrease was mainly attributable to lower staff related costs due to the disposal of L&O hotels.

 

Operating costs of the restaurant business in the third quarter of 2024 were RMB53.4 million (US$ 7.6 million)^[1], a 39.2% year-over-year decrease, due to the closure of L&O stores.

 

For the first nine months of 2024, operating costs were RMB611.6 million (US$87.2 million)^[1], a 16.9% decrease.

Selling and marketing expenses were RMB15.7 million (US$2.2 million)^[1], a 40.3% year-over-year decrease.

 

Selling and marketing expenses of the hotel business were RMB12.9 million (US$1.8 million)^[1], a 9.7% year-over-year decrease. The decrease was mainly due to lower advertising expenses.

 

Selling and marketing expenses of the restaurant business were RMB2.9 million (US$0.4 million)^[1], a 76.0% year-over-year decrease, mainly attributable to lower sales staff related expenses and lower sales-channel commissions.

 

For the first nine months of 2024, selling and marketing expenses were RMB50.0 million (US$7.1 million)^[1], a 17.5% decrease.

 

General and administrative, or G&A expenses were RMB42.3 million (US$6.0 million)^[1], a 9.9% year-over-year increase.

 

G&A expenses of the hotel business were RMB35.3 million (US$5.0 million)^[1], a 32.5% year-over-year increase. The increase was mainly due to an increase of approximately RMB11 million in bad debt provisions for long-aged account receivables.

 

G&A expenses of the restaurant business were RMB7.0 million (US$1.0 million)^[1], a 40.8% year-over-year decrease, mainly due to lower staff related expenses.

 

 

General and administrative expenses for the first nine months of 2024 were RMB151.5 million (US$21.6 million)^[1], a 0.7% year-over-year increase.

 

Other general expenses were nil for this quarter, and for the first nine months of 2024 were RMB11.8 million (US$1.7 million) ^[1], a 56.9% year-over-year decrease.

 

Gross profit was RMB151.8 million (US$21.6 million)^[1], a year-over-year decrease of 28.8%. Gross margin was 42.5%, compared to 46.2% a year ago. The gross profit of the hotel business was RMB134.6 million (US$19.2 million)^[1], an 24.9% year-over-year decrease. The gross profit of the restaurant business was RMB17.3 million (US$2.5 million)^[1], a 49.1% year-over-year decrease.

 

Income from operations in the third quarter of 2024 was RMB106.4 million (US$15.2 million)^[1] , compared to income from operations of RMB137.8 million in the third quarter of 2023, with a margin of 29.8%. The lower profitability was due to the decline in revenue, despite lower operating costs and expenses.

 

Income from operations of the hotel business was RMB99.5 million (US$14.2 million)^[1], compared to an income from operations of RMB127.5 million in the third quarter of 2023, with a margin of 34.7%.

 

Income from operations of the restaurant business in the third quarter of 2024 was RMB6.9 million (US$1.0 million)^[1], compared to income from operations of RMB10.3 million in the third quarter of 2023, with a margin of 9.7%.

 

Income from operations for the first nine months of 2024 was RMB263.1 million (US$37.5 million)^[1] compared to income from operations of RMB288.7 million in 2023, with a margin of 25.3%.

 

Net income in the third quarter of 2024 was RMB65.2 million (US$9.3 million)^[1], compared to a net income of RMB117.4 million in the third quarter of 2023, and net margin was 18.3%. Net income was partially negatively impacted by a foreign exchange loss of approximately RMB33 million.

 

Net income of the hotel business was RMB58.6 million (US$8.4 million)^[1], compared to a net income of RMB108.5 million in the third quarter of 2023, and net margin was 20.4%.

 

Net income of the restaurant business in the third quarter of 2024 was RMB6.6 million (US$0.9 million)^[1], compared to a net income of RMB8.8 million in the third quarter of 2023, and net margin was 9.4%.

 

Net income for the first nine months of 2024 was RMB184.8 million (US$26.3million)^[1], compared to a net income of RMB 251.9 million in 2023, and net margin was 17.8%.

 

 

Adjusted EBITDA (non-GAAP)^[2] in the third quarter of 2024 was RMB122.5 million (US$17.5 million)^[1], a year-over-year decrease of 32.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 34.3%, compared to 39.2% a year ago.

 

Adjusted EBITDA (non-GAAP) for the first nine months of 2024 was RMB315.0 million (US$44.9 million), a year-over-year decrease of 21.4%.

 

Core net income (non-GAAP) in the third quarter of 2024 was RMB93.5 million (US$13.3 million)^[1], a year-over-year decrease of 26.6%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 26.2%, compared to 27.6% one year ago.

 

Core net income (non-GAAP) for the first nine months of 2024 was RMB224.4 million (US$ 32.0 million)^[1], a year-over-year decrease of 8.7%.

 

Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB0.65 (US$0.09 )^[1], decreased from RMB1.15 one year ago.

 

Earnings per American Depositary Share, or ADS, (basic and diluted) for the first nine months of 2024 were RMB1.83 (US$0.26 )^[1], decreased from RMB2.52 one year ago. 

 

Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.92 (US$0.13 )^[1], decreased from RMB1.25 a year ago.

 

Core net income per ADS (basic and diluted) (non-GAAP) was RMB2.21 (US$0.31)^[1] for the first nine months of 2024, an decrease from RMB2.41 a year ago.  

 

Cash flow Operating cash inflow was RMB139.2 million (US$19.8 million)^[1] as a result of income from operations. Investing cash outflow for the third quarter of 2024 was RMB0.1 million (US$0.01 million)^[1], which was primarily due to purchase of equipment for the newly opened LO store in the second quarter and offset by repayment of loans from franchisees. Financing cash outflow was RMB1.3 million (US$0.2 million)^[1],mainly due to the repurchase of ordinary shares.

 

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of September 30, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,883.9million (US$268.5 million)^[1],compared to RMB1,737.2 million as of June 30, 2024. The increase was mainly attributable to continued operating cash inflow and repayment of loans from franchisees.

 

 

Guidance

 

We now anticipate revenue for our hotel business for the full year 2024 to decrease approximately 8% compared to 2023. This is based on our operating performance so far this year, in particular lower than expected travel in the third quarter, and the strategic review of our LO hotels segment that led to the net closure of 9 hotels by the end of the third quarter and contributed nearly half of the decline.

 

Conference Call

 

GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on November 21, 2024, (9:00 PM Beijing/Hong Kong Time on November 21, 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 november 28, 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:	5184244

 

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 September 30, 2024, GreenTree had a total number of 4,336 hotels and 182 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				September 30				September 30
		2023				2024				2024
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			765,547,547				1,513,020,988				215,603,766
Restricted cash			6,576,906				7,240,598				1,031,777
Short-term investments			417,711,617				64,034				9,125
Investments in equity securities			26,076,169				22,798,811				3,248,805
Accounts receivable, net of allowance			123,887,879				112,807,834				16,074,988
Amounts due from related parties			19,928,781				17,890,534				2,549,381
Inventories			20,462,490				6,423,582				915,353
Other current assets			117,047,122				125,926,677				17,944,408
Loans receivable, net			129,521,094				79,569,204				11,338,521
Total current assets			1,626,759,605				1,885,742,262				268,716,124
Non-current assets:
Amounts due from a related party			110,000,000				110,000,000				15,674,875
Restricted cash			19,476,259				19,397,031				2,764,055
Long-term time deposits			63,340,000				285,570,000				40,693,399
Loans receivable, net			70,690,305				43,154,241				6,149,430
Property and equipment, net			814,949,026				634,881,632				90,469,909
Intangible assets, net			117,720,693				114,380,472				16,299,087
Goodwill			177,082,468				177,082,468				25,234,050
Long-term investments			184,758,800				188,946,438				26,924,652
Operating lease right-of-use assets			1,535,330,762				1,353,807,671				192,916,050
Other assets			104,725,600				106,200,135				15,133,398
Deferred tax assets			241,965,360				180,650,424				25,742,479
TOTAL ASSETS			5,066,798,878				5,099,812,774				726,717,508
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion			200,000				-				-
Short-term bank loans			116,800,000				400,000				57,000
Accounts payable			73,126,677				45,619,837				6,500,775
Advance from customers			22,393,097				21,258,689				3,029,339
Amounts due to related parties			16,310,293				15,694,608				2,236,464
Salary and welfare payable			86,332,096				74,484,735				10,613,990
Deferred revenue			186,281,838				197,495,166				28,142,836
Accrued expenses and other current liabilities			459,832,717				493,142,341				70,272,221
Income tax payable			112,782,712				124,691,079				17,768,337
Dividends payable			-				70,176,000				10,000,000
Operating lease liabilities, current			267,536,846				183,764,847				26,186,281
Total current liabilities			1,341,596,276				1,226,727,302				174,807,243
Long-term bank loans			56,800,000				256,400,000				36,536,708
Deferred revenue			207,905,769				182,882,796				26,060,590
Other long-term liabilities			111,711,748				117,713,049				16,773,975
Operating lease liabilities, non-current			1,391,909,309				1,300,009,022				185,249,804
Deferred tax liabilities			94,716,495				54,099,834				7,709,165
Unrecognized tax benefits			382,125,786				371,085,335				52,879,237
TOTAL LIABILITIES			3,586,765,383				3,508,917,338				500,016,722
Shareholders’ equity:
Class A ordinary shares			222,587,070				222,587,070				31,718,404
Class B ordinary shares			115,534,210				115,534,210				16,463,493
Treasury Stock			(36,677,832	)			(36,977,954	)			(5,269,316	)
Additional paid-in capital			1,680,713,349				1,680,194,335				239,425,777
Retained earnings (Accumulated losses)			(568,339,799	)			(452,428,018	)			(64,470,477	)
Accumulated other comprehensive income			28,401,282				26,759,125				3,813,145
Total GreenTree Hospitality Group Ltd. shareholders’ equity			1,442,218,280				1,555,668,768				221,681,026
Non-controlling interests			37,815,215				35,226,668				5,019,760
Total shareholders’ equity			1,480,033,495				1,590,895,436				226,700,786
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			5,066,798,878				5,099,812,774				726,717,508

 

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

		Quarter Ended												Nine Month Ended
		September 30, 2023				September 30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			232,247,158				159,276,402				22,696,706				613,025,979				477,344,850				68,021,097
Franchised-and-managed revenues			190,113,557				169,686,060				24,180,070				540,695,817				482,426,095				68,745,169
Wholesales and others			38,523,479				28,018,988				3,992,674				101,372,388				79,149,589				11,278,726
Total revenues			460,884,194				356,981,450				50,869,450				1,255,094,184				1,038,920,534				148,044,992
Operating costs and expenses
Operating costs			(247,784,689	)			(205,168,798	)			(29,236,320	)			(735,847,138	)			(611,613,834	)			(87,154,274	)
Selling and marketing expenses			(26,303,310	)			(15,712,711	)			(2,239,043	)			(60,527,560	)			(49,962,028	)			(7,119,532	)
General and administrative expenses			(38,514,280	)			(42,332,528	)			(6,032,337	)			(150,388,637	)			(151,508,405	)			(21,589,775	)
Other operating expenses			(301,169	)			(2,017,978	)			(287,560	)			(8,135,387	)			(4,438,171	)			(632,434	)
Other general expenses			(11,322,509	)			-				-				(27,296,093	)			(11,756,531	)			(1,675,292	)
Total operating costs and expenses			(324,225,957	)			(265,232,015	)			(37,795,260	)			(982,194,815	)			(829,278,969	)			(118,171,308	)
Other operating income			1,136,022				14,654,068				2,088,188				15,806,939				53,422,304				7,612,617
Income from operations			137,794,259				106,403,503				15,162,378				288,706,308				263,063,869				37,486,301
Interest income and other, net			13,662,038				7,488,034				1,067,036				31,041,389				27,438,533				3,909,960
Interest expense			(3,740,491	)			(116,161	)			(16,553	)			(13,137,021	)			(4,485,219	)			(639,139	)
Gains (losses) from investment in equity securities			365,577				10,015,229				1,427,159				(4,434,821	)			(5,409,426	)			(770,837	)
Other income, net			1,779,998				(34,653,121	)			(4,938,030	)			42,926,246				(17,862,097	)			(2,545,328	)
Income before income taxes			149,861,381				89,137,484				12,701,990				345,102,101				262,745,660				37,440,957
Income tax expense			(32,385,239	)			(24,330,641	)			(3,467,089	)			(92,335,322	)			(77,512,335	)			(11,045,419	)
Income (loss) before share of gains in equity investees			117,476,142				64,806,843				9,234,901				252,766,779				185,233,325				26,395,538
Share of loss/(income) in equity investees, net of tax			(83,027	)			405,064				57,721				(869,910	)			(464,693	)			(66,218	)
Net income(loss)			117,393,115				65,211,907				9,292,622				251,896,869				184,768,632				26,329,320
Net loss/(income) attributable to non-controlling interests			227,170				288,968				41,178				5,304,468				1,319,147				187,977
Net income attributable to ordinary shareholders			117,620,285				65,500,875				9,333,800				257,201,337				186,087,779				26,517,297
Net earnings per share
Class A ordinary share-basic and diluted			1.15				0.65				0.09				2.52				1.83				0.26
Class B ordinary share-basic and diluted			1.15				0.65				0.09				2.52				1.83				0.26
Net earnings per ADS
Class A ordinary share-basic and diluted			1.15				0.65				0.09				2.52				1.83				0.26
Class B ordinary share-basic and diluted			1.15				0.65				0.09				2.52				1.83				0.26
Weighted average shares outstanding
Class A ordinary share-basic and diluted			67,416,046				66,778,809				66,778,809				67,416,046				66,780,008				66,780,008
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			(68,502	)			6,463,594				921,055				927,605				(1,642,157	)			(234,006	)
Unrealized gains(loss) on available-for-sale investments, net of tax
Comprehensive income, net of tax			117,324,613				71,675,501				10,213,677				252,824,474				183,126,475				26,095,314
Comprehensive loss/(income) attributable to non-controlling interests			6,379,505				288,968				41,178				5,304,468				1,319,147				187,977
Comprehensive income (loss) attributable to ordinary shareholders			123,704,118				71,964,469				10,254,855				258,128,942				184,445,622				26,283,291

 

 

 

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

 

		Quarter Ended												Nine Month Ended
		September 30, 2023				September  30, 2024				September  30, 2024				September  30, 2023				September  30, 2024				September  30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			151,839,044				118,159,125				16,837,541				365,402,970				346,552,738				49,383,370
Franchised-and-managed revenues			186,043,016				167,928,127				23,929,567				533,460,017				476,898,409				67,957,480
Others			1,168,017				796,488				113,499				3,393,596				2,881,694				410,638
Total revenues			339,050,077				286,883,740				40,880,607				902,256,583				826,332,841				117,751,488
Operating costs and expenses
Hotel operating costs			(159,920,582	)			(152,278,796	)			(21,699,555	)			(444,284,960	)			(441,888,078	)			(62,968,547	)
Selling and marketing expenses			(14,277,225	)			(12,899,411	)			(1,838,151	)			(39,115,830	)			(41,576,925	)			(5,924,664	)
General and administrative expenses			(26,655,780	)			(35,309,079	)			(5,031,504	)			(117,191,327	)			(128,706,277	)			(18,340,498	)
Other operating expenses			(180,515	)			(1,363,201	)			(194,255	)			(1,024,079	)			(2,301,445	)			(327,953	)
Other general expenses			(11,322,509	)			-				-				(27,296,093	)			(11,756,531	)			(1,675,292	)
Total operating costs and expenses			(212,356,611	)			(201,850,487	)			(28,763,465	)			(628,912,289	)			(626,229,256	)			(89,236,954	)
Other operating income			796,141				14,496,942				2,065,798				14,587,926				51,347,340				7,316,937
Income from operations			127,489,607				99,530,195				14,182,940				287,932,220				251,450,925				35,831,471
Interest income and other, net			13,514,958				7,467,287				1,064,080				30,587,298				27,376,005				3,901,050
Interest expense			(3,004,677	)			(115,851	)			(16,509	)			(10,896,629	)			(4,484,909	)			(639,094	)
Gains (losses) from investment in equity securities			365,577				10,015,229				1,427,159				(4,434,821	)			(769,747	)			(109,688	)
Other income, net			2,150,576				(34,647,093	)			(4,937,171	)			42,846,940				(17,938,054	)			(2,556,152	)
Income before income taxes			140,516,041				82,249,767				11,720,499				346,035,008				255,634,220				36,427,587
Income tax expense			(31,888,801	)			(24,053,937	)			(3,427,659	)			(87,620,126	)			(76,155,862	)			(10,852,124	)
Income (loss) before share of gains in equity investees			108,627,240				58,195,830				8,292,840				258,414,882				179,478,358				25,575,463
Share of loss/(income) in equity investees, net of tax			(83,027	)			405,064				57,721				(869,910	)			(464,693	)			(66,218	)
Net income(loss)			108,544,213				58,600,894				8,350,561				257,544,972				179,013,665				25,509,245

 

 

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

 

		Quarter Ended												Nine Month Ended
		September 30, 2023				September 30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			80,358,490				41,117,277				5,859,165				248,698,564				130,792,112				18,637,727
Franchised-and-managed revenues			4,070,541				1,757,933				250,503				7,235,800				5,527,686				787,689
Wholesales and others			37,355,462				27,766,790				3,956,736				97,978,792				77,272,388				11,011,227
Total revenues			121,784,493				70,642,000				10,066,404				353,913,156				213,592,186				30,436,643
Operating costs and expenses
Restaurant operating costs			(87,814,484	)			(53,365,650	)			(7,604,544	)			(292,122,643	)			(170,642,273	)			(24,316,329	)
Selling and marketing expenses			(12,026,085	)			(2,881,942	)			(410,673	)			(21,411,730	)			(8,473,078	)			(1,207,404	)
General and administrative expenses			(11,858,500	)			(7,023,449	)			(1,000,833	)			(33,197,310	)			(22,802,128	)			(3,249,277	)
Other operating expenses			(120,654	)			(654,777	)			(93,305	)			(7,111,308	)			(2,136,726	)			(304,481	)
Other general expenses			-				-				-				-				-				-
Total operating costs and expenses			(111,819,723	)			(63,925,818	)			(9,109,355	)			(353,842,991	)			(204,054,205	)			(29,077,491	)
Other operating income			339,881				157,126				22,390				1,219,013				2,074,964				295,680
Income from operations			10,304,651				6,873,308				979,439				1,289,178				11,612,945				1,654,832
Interest income and other, net			147,080				20,746				2,956				454,091				62,528				8,910
Interest expense			(735,814	)			(310	)			(44	)			(2,240,392	)			(310	)			(44	)
Gains (losses) from investment in equity securities			-				-				-				-				-				-
Other income, net			(370,578	)			(6,028	)			(859	)			79,306				(33,122	)			(4,720	)
Income before income taxes			9,345,339				6,887,716				981,492				(417,817	)			11,642,041				1,658,978
Income tax expense			(496,438	)			(276,704	)			(39,430	)			(4,843,969	)			(1,356,473	)			(193,296	)
Income (loss) before share of gains in equity investees			8,848,901				6,611,012				942,062				(5,261,786	)			10,285,568				1,465,682
Share of loss/(income) in equity investees, net of tax			-				-				-				-				-				-
Net income(loss)			8,848,901				6,611,012				942,062				(5,261,786	)			10,285,568				1,465,682

 

 

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

 

		Quarter Ended												Nine Month Ended
		September 30, 2023				September  30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Operating activities:
Net (loss) income			117,393,114				65,211,908				9,292,623				251,896,867				184,768,634				26,329,320
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			32,167,798				28,690,959				4,088,429				92,487,725				89,170,635				12,706,714
Impairment of long-lived assets			-				-				-				2,900,000				-				-
Share of (gains) losses in equity method investments			83,027				(405,064	)			(57,721	)			869,910				464,693				66,218
Noncash lease expense			58,627,753				68,398,682				9,746,734				193,450,844				205,628,129				29,301,774
Loss from disposal of a subsidiary			-				(4,925,221	)			(701,838	)			1,223,952				(5,764,903	)			(821,492	)
Interest income			(2,025,838	)			(1,199,222	)			(170,888	)			(3,683,748	)			(6,416,109	)			(914,288	)
Bad debt expenses			18,349,856				12,615,651				1,797,716				37,029,330				34,383,723				4,899,641
(Gains) losses and impairment on equity securities held			(365,577	)			(10,015,229	)			(1,427,159	)			4,434,821				5,409,426				770,837
Loss (gains) on disposal of property, plant and equipment			10,173				332,997				47,452				238,014				(24,783,238	)			(3,531,583	)
Foreign exchange (gains) losses			819,037				7,449,403				1,061,531				(269,162	)			(1,314,548	)			(187,322	)
Share-based compensation			(11,998	)			15,662				2,232				16,594				46,986				6,695
Accounts receivable			(18,632,382	)			(5,363,153	)			(764,243	)			(13,516,688	)			(13,092,304	)			(1,865,638	)
Prepaid rent			(129,472	)			-				-				(129,472	)			-				-
Inventories			637,459				223,113				31,793				8,088,185				15,112,676				2,153,539
Amounts due from related parties			3,930,789				2,188,419				311,847				5,559,317				2,488,246				354,572
Other current assets			(5,238,709	)			(6,330,209	)			(902,048	)			(40,136,745	)			(1,245,258	)			(177,448	)
Other assets			1,942,473				(2,775,493	)			(395,505	)			7,889,240				(1,474,535	)			(210,120	)
Accounts payable			(19,131,574	)			(7,758,061	)			(1,105,515	)			(29,048,734	)			(20,318,304	)			(2,895,335	)
Amounts due to related parties			5,053,227				788,969				112,427				3,373,836				(615,685	)			(87,734	)
Salary and welfare payable			(1,443,289	)			(10,164,582	)			(1,448,441	)			5,029,575				(11,588,641	)			(1,651,368	)
Deferred revenue			(18,693,576	)			17,893,291				2,549,774				(24,552,689	)			(13,809,645	)			(1,967,859	)
Advance from customers			5,344,742				(706,088	)			(100,617	)			1,686,920				(1,123,375	)			(160,080	)
Accrued expenses and other current liabilities			20,585,844				35,754,773				5,095,014				88,392,990				32,469,157				4,626,818
Income tax payable			(638,107	)			20,169,690				2,874,158				50,644,167				11,908,367				1,696,929
Unrecognized tax benefits			11,569,800				(4,844,361	)			(690,316	)			43,530,199				(11,040,451	)			(1,573,252	)
Operating lease liabilities			(54,348,610	)			(80,036,795	)			(11,405,152	)			(179,026,778	)			(189,805,890	)			(27,047,123	)
Other long-term liabilities			(159,947	)			6,321,131				900,754				(8,241,312	)			(1,998,698	)			(284,812	)
Deferred taxes			(911,201	)			7,711,357				1,098,860				(32,243,691	)			21,677,657				3,089,041
Net cash provided by operating activities			154,784,812				139,242,527				19,841,901				467,893,467				299,136,745				42,626,644
Investing activities:
Purchases of property, plant and equipment			(833,691	)			(8,771,704	)			(1,249,958	)			(72,566,925	)			(28,965,630	)			(4,127,569	)
Purchases of intangible assets			185,683				-				-				(166,598	)			-				-
Proceeds from disposal of property, plant and equipment			(29,960	)			451,660				64,361				14,666,721				140,184,760				19,976,168
Payment for acquisition of minority equity			-				966,000				137,654				-				-				-
Purchases of a long-term investment			-				(6,800,000	)			(968,992	)			-				(6,800,000	)			(968,992	)
Repayment of Advances for acquisitions			-				-				-				-				-				-
Purchases of short-term investments			(150,860,480	)			-				-				(202,230,480	)			-				-
Proceeds from short-term investments			27,211,463				-				-				160,854,647				419,362,037				59,758,612
Increase of long-term time deposits			-				-				-				-				(222,230,000	)			(31,667,522	)
Proceeds from disposal of subsidiaries			-				1,307,500				186,317				37,800,000				2,807,500				400,066
Loan to related parties			-				-				-				-				(270,000	)			(38,475	)
Loan to third parties			-				-				-				-				(1,200,000	)			(170,999	)
Repayment of loan from third parties			135,930				304,111				43,335				14,553,007				5,900,000				840,743
Loan to fanchisees			(6,058,982	)			(4,050,000	)			(577,120	)			(16,033,578	)			(5,650,000	)			(805,119	)
Repayment from franchisees			35,127,246				16,489,580				2,349,746				96,248,818				67,466,801				9,613,942
Net cash (used in) provided by investing activities			(95,122,791	)			(102,853	)			(14,657	)			33,125,612				370,605,468				52,810,855
Financing activities:
Distribution to the shareholders			-				-				-				-				(760,321	)			(108,345	)
Repurchase of ordinary shares			-				(300,122	)			(42,767	)			-				(300,122	)			(42,767	)
Repayment of short-term loans			(450,600,000	)			-				-				(450,600,000	)			(117,000,000	)			(16,672,367	)
Proceeds from bank loans			271,400,000				-				-				117,000,000				200,000,000				28,499,772
Capital contribution from non-controlling interest holders			(117,000,000	)			(966,000	)			(137,654	)			-				(966,000	)			(137,654	)
Net cash provided by (used in) financing activities			(296,200,000	)			(1,266,122	)			(180,421	)			(333,600,000	)			80,973,557				11,538,639
Effect of exchange rate changes on cash and cash equivalents and restricted cash			(395,858	)			142,062				20,244				(52,807	)			(2,657,865	)			(378,743	)
Net (decrease) increase in cash and cash equivalents			(236,933,837	)			138,015,614				19,667,067				167,366,272				748,057,905				106,597,395
Cash and cash equivalents at the beginning of the period			1,138,929,311				1,401,643,004				167,581,976				734,629,202				791,600,712				112,802,199
Cash and cash equivalents at the end of the period			901,995,474				1,539,658,617				187,249,043				901,995,474				1,539,658,617				219,399,594

 

 

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

 

		Quarter Ended												Nine Month Ended
		September 30, 2023				September 30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Net income			117,393,115				65,211,908				9,292,623				251,896,868				184,768,634				26,329,320
Deduct:
Other operating income			1,136,022				14,654,068				2,088,188				15,806,939				53,422,304				7,612,617
Interest income and other, net			13,662,038				7,488,034				1,067,036				31,041,389				27,438,533				3,909,960
Gains from investment in equity securities			365,577				10,015,229				1,427,159				-				-				-
Share of gain in equity investees, net of tax			-				405,064.00				57,721.00				-				-				-
Other income, net			1,779,998				-				-				42,926,246				-				-
Add:
Other operating expenses			301,169				2,017,978				287,560				8,135,387				4,438,171				632,434
Other general expenses			11,322,509				-				-				27,296,093				11,756,531				1,675,292
Income tax expenses (benefits)			32,385,239				24,330,641				3,467,089				92,335,322				77,512,335				11,045,419
Share of loss in equity investees, net of tax			83,027				-				-				869,910				464,693				66,218
Interest expenses			3,740,491				116,161				16,553				13,137,021				4,485,219				639,139
Depreciation and amortization			32,167,798				28,690,959				4,088,429				92,487,725				89,170,635				12,706,714
Losses from investment in equity securities			-				-				-				4,434,821				5,409,426				770,837
Other expense, net			-				34,653,121				4,938,030				-				17,862,097				2,545,328
Adjusted EBITDA (Non-GAAP)			180,449,713				122,458,373				17,450,180				400,818,573				315,006,904				44,888,124

 

 

		Quarter Ended												Nine Month Ended
		September 30, 2023				September 30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Net income			117,393,115				65,211,908				9,292,623				251,896,868				184,768,634				26,329,320
Deduct:
Government subsidies (net of 25% tax)			-				4,374,750				623,397				6,671,305				4,844,636				690,355
Gains from investment in equity securities (net of 25% tax)			274,183				7,511,422				1,070,369				-				-				-
Other income (net of 25% tax)			1,334,998				-				-				32,194,684				-				-
Add:
Share-based compensation			(11,998	)			15,662				2,232				16,594				46,986				6,695
Losses from investments in equity securities (net of 25% tax)			-				-				-				3,326,116				4,057,070				578,128
Other expense (net of 25% tax)			-				25,989,841				3,703,523				-				13,396,573				1,908,996
One-time fees and expenses			220,916				658,981				93,904				2,181,773				1,713,989				244,242
Other general expenses			11,322,509				-				-				27,296,093				11,756,531				1,675,292
Income tax expenses related to dividend distribution			-				13,496,240				1,923,199				-				13,496,240				1,923,199
Core net income (Non-GAAP)			127,315,361				93,486,460				13,321,714				245,851,454				224,391,387				31,975,517
Core net income per ADS (Non-GAAP)
Class A ordinary share-basic and diluted			1.25				0.92				0.13				2.41				2.21				0.31
Class B ordinary share-basic and diluted			1.25				0.92				0.13				2.41				2.21				0.31

 

 

Hotel Operational Data  

 

		September 30, 2023				September 30, 2024
Total hotels in operation:			4,185				4,336
Leased and owned hotels			64				56
Franchised hotels			4,121				4,280
Total hotel rooms in operation			307,010				316,461
Leased and owned hotels			7,093				6,367
Franchised hotels			299,917				310,094
Number of cities			354				351

 

		Quarter Ended
		September 30, 2023					September 30, 2024
Occupancy rate (as a percentage)
Leased-and-owned hotels			79.0	%			75.9	%
Franchised hotels			81.3	%			74.6	%
Blended			81.2	%			74.6	%
Average daily rate (in RMB)
Leased-and-owned hotels			268				258
Franchised hotels			190				179
Blended			192				181
RevPAR (in RMB)
Leased-and-owned hotels			212				196
Franchised hotels			155				133
Blended			156				135

 

 

		Number of Hotels in Operation								Number of Hotel Rooms in Operation
		September 30, 2023				September 30, 2024				September 30, 2023				September 30, 2024
Mid-to-up-scale			455				527				43,485				49,763
GreenTree Eastern			224				234				23,639				25,245
Deepsleep Hotel			7				7				534				534
Gem			61				91				5,372				8,178
Gya			71				73				5,899				6,071
Vx			92				104				8,041				9,109
Others			-				18				-				626
Mid-scale			2,965				2,965				230,655				230,580
GreenTree Inn			2,282				2,336				182,041				184,086
GT Alliance			552				498				39,379				37,366
GreenTree Apartment			20				23				1,308				1,495
Vatica			111				108				7,927				7,633
Others			-				-				-				-
Economy hotels			765				844				32,870				36,118
Shell			765				844				32,870				36,118
Others			-				-				-				-
Total			4,185				4,336				307,010				316,461

 

 

Restaurant Operational Data

 

		September 30, 2023				September 30, 2024
Total restaurants in operation:			202				182
Leased and owned restaurants			51				22
Franchised restaurants			151				160
Number of cities			66				53
Da Niang Dumplings			167				159
Bellagio			35				23

 

		Quarter Ended
		2023 Q3					2024 Q3
ADT
Leased-and-owned restaurants			158				188
Franchised restaurants			101				89
Blended			120				106
AC (in RMB)
Leased-and-owned restaurants			87				100
Franchised restaurants			40				33
Blended			55				46
ADS (in RMB)
Leased-and-owned restaurants			13,785				18,860
Franchised restaurants			4,015				2,950
Blended			6,570				4,891

 

 

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

 

 

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