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

    11/21/24 7:19:00 AM ET
    $GHG
    Hotels/Resorts
    Consumer Discretionary
    Get the next $GHG alert in real time by email
    • 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, Nov. 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. 

    [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).

    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. 

    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.



    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: [email protected]

    Mr. Maple Miao

    Phone: +86-181-0184-0639

    E-mail: [email protected]     

    Christensen

    In Shanghai

    Mr. Jerry Xu

    Phone: +86-138-1680-0706

    E-mail: [email protected]

    In Hong Kong 

    Ms. Karen Hui

    Phone: +852-9266-4140

    E-mail: [email protected]

    In the US 

    Ms. Linda Bergkamp

    Phone: +1-480-614-3004

    E-mail: [email protected] 

    Cision View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-third-quarter-of-2024-financial-results-302312911.html

    SOURCE GreenTree Hospitality Group Ltd.

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    Greentree Hospitality upgraded by Morgan Stanley with a new price target

    Morgan Stanley upgraded Greentree Hospitality from Underweight to Equal-Weight and set a new price target of $4.00

    5/20/24 9:56:25 AM ET
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    Hotels/Resorts
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    Greentree Hospitality downgraded by Morgan Stanley with a new price target

    Morgan Stanley downgraded Greentree Hospitality from Equal-Weight to Underweight and set a new price target of $4.00

    8/30/23 7:11:54 AM ET
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    GreenTree Hospitality Gr downgraded by Morgan Stanley with a new price target

    Morgan Stanley downgraded GreenTree Hospitality Gr from Overweight to Equal-Weight and set a new price target of $7.50 from $17.00 previously

    1/24/22 6:18:31 AM ET
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    SEC Filings

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    SEC Form 6-K filed by GreenTree Hospitality Group Ltd.

    6-K - GreenTree Hospitality Group Ltd. (0001724755) (Filer)

    9/30/25 9:16:43 PM ET
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    SEC Form 20-F filed by GreenTree Hospitality Group Ltd.

    20-F - GreenTree Hospitality Group Ltd. (0001724755) (Filer)

    4/30/25 5:02:04 PM ET
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    SEC Form 6-K filed by GreenTree Hospitality Group Ltd.

    6-K - GreenTree Hospitality Group Ltd. (0001724755) (Filer)

    4/25/25 7:21:20 AM ET
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    GreenTree Hospitality Group Ltd. Announces Results of 2021 Annual General Meeting

    SHANGHAI, Dec. 16, 2021 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE:GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality management group in China, today announced that it held its 2021 annual general meeting of shareholders on December 16, 2021. During the meeting, the shareholders of the Company passed an ordinary resolution approving the re-appointment of Ernst & Young Hua Ming LLP as independent auditor of the Company for the fiscal year ending December 31, 2021. About GreenTree Hospitality Group Ltd. GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE:GHG) is a leading hospitality management group in China. As of June 30, 2021, Gree

    12/16/21 5:00:00 AM ET
    $GHG
    Hotels/Resorts
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    GreenTree to Hold Annual General Meeting on December 15, 2021

    SHANGHAI, Nov. 5, 2021 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE:GHG), a leading hospitality management group in China ("GreenTree" or the "Company"), today announced that it will hold its annual general meeting of shareholders at 2451 Hongqiao Road, Changning District, Shanghai 200335, People's Republic of China on December 15, 2021 at 9:00 PM U.S. Eastern Time (10:00 AM Beijing/Hong Kong Time on December 16, 2021) for the following purpose: To approve the re-appointment of Ernst & Young Hua Ming LLP as independent auditor of the Company [1] for the fiscal year ending December 31, 2021. Holders of record of ordinary shares of the Company at the close of business on November 15,

    11/5/21 5:00:00 PM ET
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    Hotels/Resorts
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    China Finance Online Announces Management Changes

    BEIJING, May 25, 2021 /PRNewswire/ -- China Finance Online Co. Limited ("China Finance Online", or the "Company", "we", "us" or "our") (NASDAQ GS: JRJC), a leading web-based financial services company that provides Chinese individual investors with fintech-powered online access to securities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers, today announced the following changes to its board of directors (the "Board") and senior management.  Mr. Zhiwei Zhao has resigned from his position as the Chief Executive Officer of the Company (the "CEO") and Dr. Z. James Chen has been a

    5/25/21 8:50:00 AM ET
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    GreenTree Hospitality Group Ltd. Reports First Half 2025 Financial Results

    Total revenues decreased by 14.2% year over year to RMB585.1 million (US$81.7 million)[1].Income from operations was RMB91.5 million (US$12.8 million)[1] compared to RMB156.7 million for the first half of 2024. Net income was RMB198.8 million (US$27.7 million)[1] compared to RMB119.6 million for the first half of 2024.Adjusted EBITDA (non-GAAP) [2]decreased by 22.2% year over year to RMB149.7 million (US$20.9 million)[1]。Core net income (non-GAAP) [3]decreased by 29.6% year over year to RMB92.1 million (US$12.9 million)[1].SHANGHAI, Sept. 30, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE:GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaura

    9/30/25 6:22:00 PM ET
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    GreenTree Hospitality Group Ltd. Announces Cash Dividend

    SHANGHAI, Sept. 30, 2025 /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 that its board of directors approved the payment of a cash dividend of US$0.06 per ordinary share, or US$0.06 per American Depositary Share ("ADS"). The holders of the Company's ordinary shares shown on the Company's record at the close of trading on October 31, 2025 (U.S. Eastern Time) (the "Record Date") will be entitled to these dividends. These shareholders, including Deutsche Bank Trust Company Americas, the depositary bank for the Company's ADS program (the "ADS Depositar

    9/30/25 4:15:00 PM ET
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    Hotels/Resorts
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    GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

    Total revenues decreased by 18.2% year over year to RMB304.5 million (US$41.7 million)[1].Net income was RMB-72.8million (US$-10.0 million)[1] compared to RMB8.6 million for the fourth quarter of 2023. Adjusted net income[2] was RMB77.3 million (US$10.6 million)[1] compared to RMB60.9 million for the fourth quarter of 2023.Cash from operations increased year over year to RMB74.2 million (US$10.2 million)[1].SHANGHAI, April 24, 2025 /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 fourth quarter and fiscal year o

    4/24/25 7:38:00 AM ET
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    $GHG
    Large Ownership Changes

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    SEC Form SC 13G/A filed by GreenTree Hospitality Group Ltd. (Amendment)

    SC 13G/A - GreenTree Hospitality Group Ltd. (0001724755) (Subject)

    1/12/24 8:29:47 AM ET
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    SEC Form SC 13G/A filed by GreenTree Hospitality Group Ltd. (Amendment)

    SC 13G/A - GreenTree Hospitality Group Ltd. (0001724755) (Subject)

    1/13/23 11:37:59 AM ET
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    Hotels/Resorts
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    SEC Form SC 13G/A filed by GreenTree Hospitality Group Ltd. (Amendment)

    SC 13G/A - GreenTree Hospitality Group Ltd. (0001724755) (Subject)

    1/27/22 9:52:20 AM ET
    $GHG
    Hotels/Resorts
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