Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

 

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

 

August 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: August 16, 2024

 

 

 

 

EXHIBIT INDEX

 

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

 

 

 

Exhibit 99.1

 

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

 

·

Total revenues decreased by 20.5% year over year to RMB 329.7million (US$45.4 million)[1].

 

·

Income from operations was RMB84.4 million (US$11.6 million)[1] compared to RMB98.6 million for the second quarter of 2023.

 

·

Net income was RMB62.3 million (US$8.6 million)[1] compared to RMB101.9 million for the second quarter of 2023.

 

·

Adjusted EBITDA (non-GAAP)[2] decreased 34.5% year over year to RMB83.1 million (US$11.4 million)[1].

 

·

Core net income (non-GAAP)[3] increased 2.4% year over year to RMB70.2million (US$9.7 million)[1]

 

SHANGHAI, August 15, 2024 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the second quarter of 2024.

 

Second Quarter of 2024 Operational Highlights

 

Hotels

 

	·	A total of 4,272 hotels with 312,734 hotel rooms were in operation as of June 30, 2024.
	·	The Company opened 44 hotels and had a pipeline of 1,022 hotels contracted for or under development as of June 30, 2024.
	·	The average daily room rate was RMB173, a decrease of 4.3% from RMB181 in the second quarter of 2023.
	·	The occupancy rate was 72.5%, down from 77.8% in the second quarter of 2023.
	·	Revenue per available room, or RevPAR, was RMB125, a 10.8% year-over-year decrease.

 

 

1.The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2672 on March 31, 2024 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/.

 

2.Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.

 

3.Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).

 

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Restaurants

 

	·	A total of 183 restaurants were in operation as of June 30, 2024.
	·	The AC (average check) was RMB53, a 6.0% year-over-year decrease.
	·	The ADT (average daily tickets) was 90, down from 109 in the second quarter of 2023.
	·	The ADS (average daily sales per store) was RMB4,737, a decrease of 22.1% from RMB6,082 in the second quarter of 2023.

 

“In the second quarter, we faced challenges as China’s economy continued to recover. We believe both consumers and businesses exercised caution in discretionary spending, which had a negative impact on our overall performance. However, we continued to upgrade a number of hotels in our portfolio in order to better respond to increasing competition. While we believe this will help our performance in the future, second quarter hotel revenues decreased 14.8% year-over-year.

 

We continued to execute on our strategy to return our restaurant business to profitability by moving away from leased-and-operated restaurants in supermarkets and regional shopping centers towards franchised street stores. As a result, the net income turned positive this quarter after breaking even last quarter compared to losses in both corresponding quarters a year ago. Our focus is now fully on growing the number of franchised street stores and stores with stable consumer traffic,” said Mr. Alex S. Xu, Chairman and Chief Executive Office of GreenTree.

 

Second Quarter Of 2024 Financial Results

 

		Quarter Ended
		June 30, 2023				June 30, 2023				June 30, 2023				June 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			131,490,687				78,963,181				(565,963	)			209,887,905
Franchised-and-managed revenues			177,936,543				2,201,340				-				180,137,883
Wholesales and others			1,188,730				23,775,051				-				24,963,781
Total revenues			310,615,960				104,939,572				(565,963	)			414,989,569

 

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		Quarter Ended
		June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			105,851,820				43,306,857				-				149,158,677				20,524,917
Franchised-and-managed revenues			157,810,770				2,234,412				-				160,045,182				22,022,950
Wholesales and others			940,479				19,752,299				(184,981	)			20,507,797				2,821,967
Total revenues			264,603,069				65,293,568				(184,981	)			329,711,656				45,369,834

 

		Six Month Ended
		June 30, 2023				June 30, 2023				June 30, 2023				June 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			213,563,927				168,340,074				(1,125,179	)			380,778,822
Franchised-and-managed revenues			347,417,000				3,165,259				-				350,582,259
Wholesales and others			2,225,579				60,623,330				-				62,848,909
Total revenues			563,206,506				232,128,663				(1,125,179	)			794,209,990

 

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		Six Month Ended
		June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			228,393,613				89,674,836				-				318,068,449				43,767,675
Franchised-and-managed revenues			308,970,282				3,769,753				-				312,740,035				43,034,461
Wholesales and others			2,085,206				49,505,598				(460,202	)			51,130,602				7,035,805
Total revenues			539,449,101				142,950,187				(460,202	)			681,939,086				93,837,941

 

Total revenues were RMB329.7 million (US$45.4 million)^[1]，a 20.5% year-over-year decrease.

 

Hotel revenues of 2024 were RMB264.6 million (US$36.4 million)^[1], a 14.8% year-over-year decrease. There were two major reasons: first, a 10.8% year-over-year decrease in Revpar ; second, the closure of 5 L&O hotels in the second quarter due to lease expiration and strategic decisions; and partially setoff by new openings.

 

Restaurant revenues were of 2024 RMB65.3 million (US$9.0 million)^[1], a 37.8% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores due to the closure of unprofitable L&O stores.

 

Total revenues for the first half of 2024 were RMB681.9 million (US$93.8 million)^[1], a 14.1% year-over-year decrease.

 

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB149.2 million (US$20.5 million)^[1], a 28.9% year-over-year decrease.

 

Total revenues from L&O hotels were RMB105.9 million (US$14.6 million)^[1], a 19.5% year-over-year decrease. The decrease was primarily attributable to a 7.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, 5 L&O hotels closed and reduction of sublease revenues mainly due to the disposal of a property.

 

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Total revenues from L&O restaurants were RMB43.3 million (US$6.0 million)^[1], a 45.2% year-over-year decrease, mainly due to the closure of L&O restaurants since the third quarter of 2023 and the year-over-year decrease in ADS.

 

Total revenues from L&O hotels and restaurants for the first half of 2024 were RMB318.1 million (US$43.8 million)^[1], a 16.5% year-over-year decrease.

 

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB160.0 million (US$22.0 million)^[1], a 11.2% year-over-year decrease.

 

Total revenues from F&M hotels were RMB157.8 million (US$21.7 million)^[1], a 11.3% year-over-year decrease, primary due to a 10.9% decrease in F&M hotels' Revpar and remodeling.

 

Total revenues from F&M restaurants were RMB2.2 million (US$0.3 million)^[1], a 1.5% year-over-year increase, as we opened more F&M stores.

 

Total revenues from F&M hotels and restaurants for the first half of 2024 were RMB312.7 million (US$43.0 million)^[1], a 10.8% year-over-year decrease.

 

Total revenues from wholesale and others were RMB17.8% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.

 

Total revenues from wholesale and others for the first half of 2024 were RMB51.1 million (US$7.0 million)^[1], a 18.6% year-over-year decrease.

 

Total operating costs and expenses

 

		Quarter Ended
		June 30, 2023				June 30, 2023				June 30, 2023				June 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			150,127,380				95,088,176				(308,417	)			244,907,139
Selling and marketing expenses			13,762,606				4,446,065				-				18,208,671
General and administrative expenses			44,443,478				9,675,734				-				54,119,212
Other operating expenses			692,344				5,649,391				-				6,341,735
Other general expenses			4,309,239				-				-				4,309,239
Total operating costs and expenses			213,335,047				114,859,366				(308,417	)			327,885,996

 

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		Quarter Ended
		June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			143,382,640				55,127,026				(184,981	)			198,324,685				27,290,385
Selling and marketing expenses			13,222,891				2,636,823				-				15,859,714				2,182,369
General and administrative expenses			54,927,567				6,606,681				-				61,534,248				8,467,394
Other operating expenses			271,943				(60,032	)			-				211,911				29,160
Other general expenses			5,911,956				-				-				5,911,956				813,512
Total operating costs and expenses			217,716,997				64,310,498				(184,981	)			281,842,514				38,782,820

 

		Six Month Ended
		June 30, 2023				June 30, 2023				June 30, 2023				June 30, 2023
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			284,364,378				204,308,159				(610,088	)			488,062,449
Selling and marketing expenses			24,838,605				9,385,645				-				34,224,250
General and administrative expenses			90,535,547				21,338,810				-				111,874,357
Other operating expenses			843,564				6,990,654				-				7,834,218
Other general expenses			15,973,584				-				-				15,973,584
Total operating costs and expenses			416,555,678				242,023,268				(610,088	)			657,968,858

 

		Six Month Ended
		June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024				June 30, 2024
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			289,609,282				117,276,623				(440,869	)			406,445,036				55,928,698
Selling and marketing expenses			28,677,514				5,591,136				(19,333	)			34,249,317				4,712,863
General and administrative expenses			93,397,198				15,778,679				-				109,175,877				15,023,101
Other operating expenses			938,244				1,481,949				-				2,420,193				333,030
Other general expenses			11,756,531				-				-				11,756,531				1,617,753
Total operating costs and expenses			424,378,769				140,128,387				(460,202	)			564,046,954				77,615,445

 

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Operating costs were RMB 198.3 million (US$27.3 million)^[1], a 19.0% year-over-year decrease.

 

Operating costs of the hotel business were RMB143.4 million (US$19.7 million)^[1], a 4.5% year-over-year decrease. The decrease was mainly due to the lower personnel costs, lower hotel related material consumption, and lower utilities given lower occupancy rate and the closure of L&O hotels, offset by increased rental costs and depreciation and amortization due to newly opened L&O hotels since the third quarter of 2023.

 

Operating costs of the restaurant business were RMB55.1million (US$7.6 million)^[1], a 42.0% year-over-year decrease, due to closure of L&O stores.

 

For the first half of 2024, operating costs were RMB406.4 million (US$55.9 million)^[1], representing a 16.7% decrease.

Selling and marketing expenses were RMB15.9 million (US$2.2 million)^[1], a 12.9% year-over-year decrease.

 

Selling and marketing expenses of the hotel business were RMB13.2 million (US$1.8 million)^[1], a 3.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses.

 

Selling and marketing expenses of the restaurant business were RMB2.6 million (US$0.4 million)^[1], a 40.7% year-over-year decrease, mainly attributable to lower sales staff related expenses.

 

For the first half of 2024, selling and marketing expenses were RMB34.2 million (US$4.7 million)^[1], a 0.1% increase.

 

General and administrative, or G&A expenses were RMB61.5 million (US$8.5 million)^[1], a 13.7% year-over-year increase.

 

G&A expenses of the hotel business were RMB54.9 million (US$7.6 million)^[1], a 23.6% year-over-year increase. The increase was mainly due to an increase in bad debt provisions for long-aged account receivables.

 

G&A expenses of the restaurant business were RMB6.6 million (US$0.9 million)^[1], a 31.7% year-over-year decrease, mainly due to lower staff related expenses.

 

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General and administrative expenses for the first half of 2024 were RMB109.2 million (US$15.0 million)^[1], a 2.4% year-over-year decrease.

 

Other general expenses were RMB5.9 million (US$0.8 million)^[1], a 37.2% year-over-year increase. These expenses recorded provisions for loan receivables related to franchisee loans. This provision was made in consideration of the potential increase in bad debt rates for franchisees who were already overdue.

 

Other general expenses for the first half of 2024 were RMB11.8 million (US$1.6 million)^[1], a 26.4% year-over-year decrease.

 

Gross profit was RMB131.4 million (US$18.1 million)^[1], a year-over-year decrease of 22.8%. Gross margin was 39.8%, compared to 41.0% a year ago. The gross profit of the hotel business was RMB121.2 million (US$16.7 million)^[1], a 24.5% year-over-year decrease. The gross profit of the restaurant business was RMB10.2 million (US$1.4 million)^[1], a 3.2% year-over-year increase.

 

Income from operations was RMB84.4 million (US$11.6 million)^[1] , compared to income from operations of RMB98.6 million in the second quarter of 2023, with a margin of 25.6%.

 

Income from operations of the hotel business was RMB81.6 million (US$11.2 million)^[1], compared to an income from operations of RMB108.5 million in the second quarter of 2023, with a margin of 30.8%.

 

Income from operations of the restaurant business was RMB2.9 million (US$0.4 million)^[1], compared to income from operations of RMB-9.6 million in the second quarter of 2023, with a margin of 4.4%.

 

Income from operations for the first half of 2024 was RMB156.7 million (US$21.6 million)^[1] compared to income from operations of RMB150.9 million in 2023, with a margin of 23.0%.

 

Net income was RMB62.3million (US$8.6 million)^[1], compared to a net income of RMB101.9 million in the second quarter of 2023, and net margin was 18.9%.

 

Net income of the hotel business was RMB63.1 million (US$8.7 million)^[1], compared to a net income of RMB114.0 million in the second quarter of 2023, and net margin was 23.9%.

 

Net income of the restaurant business of 2024 was RMB3.7 million (US$0.5 million)^[1], compared to a net lose of RMB11.9 million in the second quarter of 2023,and net margin was 5.6%.

 

Net income for the first half of 2024 was RMB 119.6million (US$16.5million)^[1], compared to a net loss of RMB 134.5 million in 2023, and net margin was 17.5%.

 

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Adjusted EBITDA (non-GAAP)^[2] in the second quarter of 2024 was RMB 83.1 million (US$11.4 million)^[1], a year-over-year decrease of 34.5%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)^[2] as a percentage of total revenues, was 25.2%, compared to 30.6% a year ago.

 

Adjusted EBITDA (non-GAAP)^[2] for the first half of 2024 was RMB 192.5 million (US$26.5 million)^[1], a year-over-year decrease of 12.6%.

 

Core net income (non-GAAP)^[3] in the second quarter of 2024 was RMB 70.2 million (US$9.7 million)^[1], a year-over-year increase of 2.4%. The core net margin, defined as core net income (non-GAAP)^[3] as a percentage of total revenues, was 21.3%, compared to 16.5% one year ago.

 

Core net income (non-GAAP)^[3] for the first half of 2024 was RMB 130.9 million (US$18.0 million)^[1], a year-over-year increase of 10.4%.

 

Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB0.61 (US$0.36 )^[1], a decrease from RMB1.01 one year ago.

 

Earnings per American Depositary Share, or ADS, (basic and diluted) for the first half of 2024 were RMB1.19 (US$0.16 )^[1], a decrease from RMB1.37 one year ago. 

 

Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.69 (US$0.10 )^[1], an increase from RMB0.67 a year ago.

 

Core net income per ADS (basic and diluted) (non-GAAP) was RMB1.29 (US$0.18)^[1] for the first half of 2024, an increase from RMB1.16 a year ago.  

 

Cash flow Operating cash inflow was RMB69.2 million (US$9.5 million)^[1] as a result of income from operations. Investing cash inflow for the second quarter of 2024 was RMB157.6 million (US$21.7 million)^[1], which was primarily attributable to the gain from the disposal of a property and also benefit from repayment of loans from franchisees. Financing cash outflow was RMB1.0 million (US$0.1 million)^[1],mainly due to the repayment of bank loans.

 

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,737.2million (US$239.0 million)^[1],compared to RMB1,517.3 million as of March 31, 2024. The increase was mainly attributable to continued operating cash inflow, disposal of property, and repayment of loans from franchisees.

 

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Guidance

 

Considering our performance during the first half of the year and the impact of closing certain L&O hotels due to lease expirations and strategic decisions, we have revised our revenue guidance for the hotel business. We now anticipate its performance in 2024 to remain flat compared to 2023.

 

The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.

 

Dividend distribution

 

The board of directors has approved the payment of a cash dividend of US$0.10 per ordinary share, or US$0.10 per American Depositary Sahre(“ADS”) payable to holders of the Company’s ordinary shares shown on the Company’s record at the close of trading on September 30,2024(the “Record Date”).

 

Conference Call

 

GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on August 15, 2024, (8:00 PM Beijing/Hong Kong Time on August 15, 2024).

 

Dial-in numbers for the live conference call are as follows:

 

International	1-412-902-4272
Mainland China	4001-201-203
US	1-888-346-8982
Hong Kong	800-905-945 or 852-3018-4992
Singapore	800-120-6157

 

Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call.

 

A telephone replay of the conference call will be available after the conclusion of the live conference call until August 22, 2024.

 

Dial-in numbers for the replay are as follows:

 

International Dial-in	1-412-317-0088
U.S. Toll Free	1-877-344-7529
Canada Toll Free	855-669-9658
Passcode:	2914023

 

Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.

 

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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.

 

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Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.

 

About GreenTree Hospitality Group Ltd.

 

GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2024, GreenTree had a total number of 4,272 hotels and 183 restaurants. In 2023, HOTELS magazine ranked GreenTree 11th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2023 according to the China Hospitality Association. In 2023, GreenTree completed its acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China.

 

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value.

 

For more information on GreenTree, please visit http://ir.998.com

 

Safe Harbor Statements

 

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.

 

12 / 21 

 

 

Financial Tables and Operational Data Follow

 

GreenTree Hospitality Group Ltd.

 

Unaudited Condensed Consolidated Balance Sheets

 

		December 31				June 30				June 30
		2023				2024				2024
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			765,547,547				1,374,876,965				189,189,367
Restricted cash			6,576,906				7,450,696				1,025,250
Short-term investments			417,711,617				33,612				4,625
Investments in equity securities			26,076,169				20,161,988				2,774,382
Accounts receivable, net of allowance			123,887,879				121,134,755				16,668,697
Amounts due from related parties			19,928,781				20,078,953				2,762,956
Prepaid rent			-				-				-
Inventories			20,462,490				6,309,470				868,212
Other current assets			117,047,122				121,704,746				16,747,130
Loans receivable, net			129,521,094				96,796,622				13,319,658
Deferred tax assets			-				-				-
Total current assets			1,626,759,605				1,768,547,807				243,360,277
Non-current assets:
Amounts due from a related party			110,000,000				110,000,000				15,136,504
Restricted cash			19,476,259				19,315,343				2,657,880
Long-term time deposits			63,340,000				285,700,000				39,313,628
Loans receivable, net			70,690,305				36,685,137				5,048,043
Property and equipment, net			814,949,026				669,043,887				92,063,503
Intangible assets, net			117,720,693				115,281,993				15,863,330
Goodwill			177,082,468				177,082,468				24,367,358
Long-term investments			184,758,800				175,521,257				24,152,528
Operating lease right-of-use assets			1,535,330,762				1,444,254,641				198,736,052
Other assets			104,725,600				103,294,642				14,213,815
Deferred tax assets			241,965,360				218,658,563				30,088,419
TOTAL ASSETS			5,066,798,878				5,123,385,738				705,001,337
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion			200,000				400,000				55,042
Short-term bank loans			116,800,000				-				-
Accounts payable			73,126,677				53,525,451				7,365,347
Advance from customers			22,393,097				21,975,810				3,023,972
Amounts due to related parties			16,310,293				14,905,639				2,051,084
Salary and welfare payable			86,332,096				84,908,037				11,683,735
Deferred rent			-				-				-
Deferred revenue			186,281,838				178,834,473				24,608,442
Accrued expenses and other current liabilities			459,832,717				466,056,353				64,131,488
Income tax payable			112,782,712				104,521,389				14,382,622
Dividends payable			-				-				-
Operating lease liabilities, current			267,536,846				263,079,422				36,200,933
Deferred tax liabilities			-				-				-
Total current liabilities			1,341,596,276				1,188,206,574				163,502,665
Long-term bank loans			56,800,000				256,400,000				35,281,814
Deferred rent			-				-				-
Deferred revenue			207,905,769				183,650,198				25,271,108
Other long-term liabilities			111,711,748				111,391,913				15,328,037
Operating lease liabilities, non-current			1,391,909,309				1,332,750,964				183,392,636
Deferred tax liabilities			94,716,495				85,375,998				11,748,128
Unrecognized tax benefits			382,125,786				375,929,696				51,729,648
TOTAL LIABILITIES			3,586,765,383				3,533,705,343				486,254,036
Shareholders’ equity:
Class A ordinary shares			222,587,070				222,587,070				30,629,000
Class B ordinary shares			115,534,210				115,534,210				15,898,036
Paid-in capital			-				-				-
Treasury Stock			(36,677,832	)			(36,677,832	)			(5,047,038	)
Additional paid-in capital			1,680,713,349				1,680,178,673				231,200,280
Retained earnings (Accumulated losses)			(568,339,799	)			(447,752,894	)			(61,612,849	)
Accumulated other comprehensive income			28,401,282				20,295,531				2,792,758
Total GreenTree Hospitality Group Ltd. shareholders’ equity			1,442,218,280				1,554,164,758				213,860,187
Non-controlling interests			37,815,215				35,515,637				4,887,114
Total shareholders’ equity			1,480,033,495				1,589,680,395				218,747,301
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			5,066,798,878				5,123,385,738				705,001,337

 

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GreenTree Hospitality Group Ltd.

 

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

		Quarter Ended												Six Month Ended
		June 30, 2023				June 30, 2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			209,887,905				149,158,677				20,524,917				380,778,822				318,068,449				43,767,675
Franchised-and-managed revenues			180,137,883				160,045,182				22,022,950				350,582,259				312,740,035				43,034,461
Wholesales and others			24,963,781				20,507,797				2,821,967				62,848,909				51,130,602				7,035,805
Total revenues			414,989,569				329,711,656				45,369,834				794,209,990				681,939,086				93,837,941
Operating costs and expenses
Operating costs			(244,907,139	)			(198,324,685	)			(27,290,385	)			(488,062,449	)			(406,445,036	)			(55,928,698	)
Selling and marketing expenses			(18,208,671	)			(15,859,714	)			(2,182,369	)			(34,224,250	)			(34,249,317	)			(4,712,863	)
General and administrative expenses			(54,119,212	)			(61,534,248	)			(8,467,394	)			(111,874,357	)			(109,175,877	)			(15,023,101	)
Other operating expenses			(6,341,735	)			(211,911	)			(29,160	)			(7,834,218	)			(2,420,193	)			(333,030	)
Other general expenses			(4,309,239	)			(5,911,956	)			(813,512	)			(15,973,584	)			(11,756,531	)			(1,617,753	)
Total operating costs and expenses			(327,885,996	)			(281,842,514	)			(38,782,820	)			(657,968,858	)			(564,046,954	)			(77,615,445	)
Other operating income			11,511,398				36,542,303				5,028,388				14,670,917				38,768,236				5,334,687
Income from operations			98,614,971				84,411,445				11,615,402				150,912,049				156,660,368				21,557,183
Interest income and other, net			9,750,337				11,003,960				1,514,195				17,379,351				19,950,499				2,745,280
Interest expense			(3,868,469	)			(2,629,228	)			(361,793	)			(9,396,530	)			(4,369,057	)			(601,203	)
Gains (losses) from investment in equity securities			(263,836	)			(6,172,071	)			(849,305	)			(4,800,398	)			(15,424,655	)			(2,122,503	)
Other income, net			43,295,830				3,556,454				489,384				41,146,248				16,791,024				2,310,522
Income before income taxes			147,528,833				90,170,560				12,407,883				195,240,720				173,608,179				23,889,279
Income tax expense			(45,241,208	)			(26,733,733	)			(3,678,684	)			(59,950,083	)			(53,181,694	)			(7,318,045	)
Income (loss) before share of gains in equity investees			102,287,625				63,436,827				8,729,199				135,290,637				120,426,485				16,571,234
Share of loss/(income) in equity investees, net of tax			(341,265	)			(1,174,966	)			(161,681	)			(786,883	)			(869,757	)			(119,683	)
Net income(loss)			101,946,360				62,261,861				8,567,518				134,503,754				119,556,728				16,451,551
Net loss/(income) attributable to non-controlling interests			1,308,704				(571,587	)			(78,653	)			5,077,298				1,030,179				141,757
Net income attributable to ordinary shareholders			103,255,064				61,690,274				8,488,865				139,581,052				120,586,907				16,593,308
Net earnings per share
Class A ordinary share-basic and diluted			1.01				0.61				0.36				1.37				1.19				0.16
Class B ordinary share-basic and diluted			1.01				0.61				0.36				1.37				1.19				0.16
Net earnings per ADS
Class A ordinary share-basic and diluted			1.01				0.61				0.36				1.37				1.19				0.16
Class B ordinary share-basic and diluted			1.01				0.61				0.36				1.37				1.19				0.16
Weighted average shares outstanding
Class A ordinary share-basic and diluted			67,416,046				66,780,612				9,189,318				67,416,046				66,780,612				9,189,318
Class B ordinary share-basic and diluted			34,762,909				34,762,909				4,783,535				34,762,909				34,762,909				4,783,535
Other comprehensive income, net of tax
Foreign currency translation adjustments			185,533				(487,856	)			(67,131	)			996,107				(8,105,751	)			(1,115,388	)
Unrealized gains(loss) on available-for-sale investments, net of tax
Comprehensive income, net of tax			102,131,893				61,774,005				8,500,387				135,499,861				111,450,977				15,336,163
Comprehensive loss/(income) attributable to non-controlling interests			(4,843,631	)			(571,587	)			(78,653	)			(1,075,037	)			1,030,179				141,757
Comprehensive income (loss) attributable to ordinary shareholders			97,288,262				61,202,418				8,421,734				134,424,824				112,481,156				15,477,920

 

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GreenTree Hospitality Group Ltd.

 

Unaudited Hotel Business Results

 

		Quarter Ended												Six Month Ended
		June 30, 2023				June 30, 2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			131,490,687				105,851,820				14,565,695				213,563,927				228,393,613				31,428,007
Franchised-and-managed revenues			177,936,543				157,810,770				21,715,485				347,417,000				308,970,282				42,515,726
Others			1,188,730				940,479				129,414				2,225,579				2,085,206				286,934
Total revenues			310,615,960				264,603,069				36,410,594				563,206,506				539,449,101				74,230,667
Operating costs and expenses
Hotel operating costs			(150,127,380	)			(143,382,640	)			(19,730,108	)			(284,364,378	)			(289,609,282	)			(39,851,563	)
Selling and marketing expenses			(13,762,606	)			(13,222,891	)			(1,819,530	)			(24,838,605	)			(28,677,514	)			(3,946,157	)
General and administrative expenses			(44,443,478	)			(54,927,567	)			(7,558,285	)			(90,535,547	)			(93,397,198	)			(12,851,882	)
Other operating expenses			(692,344	)			(271,943	)			(37,421	)			(843,564	)			(938,244	)			(129,107	)
Other general expenses			(4,309,239	)			(5,911,956	)			(813,512	)			(15,973,584	)			(11,756,531	)			(1,617,753	)
Total operating costs and expenses			(213,335,047	)			(217,716,997	)			(29,958,856	)			(416,555,678	)			(424,378,769	)			(58,396,462	)
Other operating income			11,183,689				34,667,783				4,770,446				13,791,785				36,850,398				5,070,784
Income from operations			108,464,602				81,553,855				11,222,184				160,442,613				151,920,730				20,904,989
Interest income and other, net			9,597,042				10,978,362				1,510,673				17,072,340				19,908,718				2,739,531
Interest expense			(3,167,262	)			(2,628,376	)			(361,677	)			(7,891,952	)			(4,369,058	)			(601,202	)
Gains (losses) from investment in equity securities			(263,836	)			(1,474,720	)			(202,928	)			(4,800,398	)			(10,784,976	)			(1,484,062	)
Other income, net			43,122,904				3,404,139				468,425				40,696,364				16,709,039				2,299,240
Income before income taxes			157,753,450				91,833,260				12,636,677				205,518,967				173,384,453				23,858,496
Income tax expense			(43,365,471	)			(27,545,004	)			(3,790,319	)			(55,731,325	)			(52,101,925	)			(7,169,463	)
Income (loss) before share of gains in equity investees			114,387,979				64,288,256				8,846,358				149,787,642				121,282,528				16,689,033
Share of loss/(income) in equity investees, net of tax			(341,265	)			(1,174,966	)			(161,681	)			(786,883	)			(869,757	)			(119,683	)
Net income(loss)			114,046,714				63,113,290				8,684,677				149,000,759				120,412,771				16,569,350

 

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GreenTree Hospitality Group Ltd.

 

Unaudited Restaurant Business Results

 

		Quarter Ended												Six Month Ended
		June 30, 2023				June 30, 2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			78,963,181				43,306,857				5,959,222				168,340,074				89,674,836				12,339,668
Franchised-and-managed revenues			2,201,340				2,234,412				307,465				3,165,259				3,769,753				518,735
Wholesales and others			23,775,051				19,752,299				2,718,007				60,623,330				49,505,598				6,812,197
Total revenues			104,939,572				65,293,568				8,984,694				232,128,663				142,950,187				19,670,600
Operating costs and expenses
Restaurant operating costs			(95,088,176	)			(55,127,026	)			(7,585,731	)			(204,308,159	)			(117,276,623	)			(16,137,800	)
Selling and marketing expenses			(4,446,065	)			(2,636,823	)			(362,839	)			(9,385,645	)			(5,591,136	)			(769,366	)
General and administrative expenses			(9,675,734	)			(6,606,681	)			(909,110	)			(21,338,810	)			(15,778,679	)			(2,171,218	)
Other operating expenses			(5,649,391	)			60,032				8,261				(6,990,654	)			(1,481,949	)			(203,923	)
Other general expenses			-				-				-				-				-				-
Total operating costs and expenses			(114,859,366	)			(64,310,498	)			(8,849,419	)			(242,023,268	)			(140,128,387	)			(19,282,307	)
Other operating income			327,709				1,874,520				257,943				879,132				1,917,838				263,903
Income from operations			(9,592,085	)			2,857,590				393,218				(9,015,473	)			4,739,638				652,196
Interest income and other, net			153,295				25,599				3,522				307,011				41,782				5,750
Interest expense			(701,207	)			(853	)			(117	)			(1,504,578	)			-				-
Gains (losses) from investment in equity securities			-				(57,672	)			(7,936	)			-				-				-
Other income, net			172,926				43,236				5,949				449,884				(27,094	)			(3,728	)
Income before income taxes			(9,967,071	)			2,867,900				394,636				(9,763,156	)			4,754,326				654,218
Income tax expense			(1,940,124	)			811,271				111,635				(4,347,531	)			(1,079,769	)			(148,581	)
Income (loss) before share of gains in equity investees			(11,907,195	)			3,679,171				506,271				(14,110,687	)			3,674,557				505,637
Share of loss/(income) in equity investees, net of tax			-				-				-				-				-				-
Net income(loss)			(11,907,195	)			3,679,171				506,271				(14,110,687	)			3,674,557				505,637

 

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GreenTree Hospitality Group Ltd.

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

		Quarter Ended												Six Month Ended
		June 30, 2023				June 30, 2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Operating activities:
Net (loss) income			101,946,360				62,261,861				8,567,518				134,503,754				119,556,728				16,451,551
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			28,982,289				29,137,972				4,009,518				60,319,927				60,479,676				8,322,280
Impairment of long-lived assets			-				-				-				2,900,000				-				-
Share of （income）loss in equity method investments			341,265				1,174,966				161,681				786,883				869,757				119,683
Noncash lease expense			70,769,259				72,411,404				9,964,141				134,823,091				137,229,448				18,883,400
Loss from disposal of a subsidiary			-				(839,682	)			(115,544	)			1,223,952				(839,682	)			(115,544	)
Interest income			(1,267,532	)			(5,216,887	)			(717,868	)			(1,657,910	)			(5,216,887	)			(717,868	)
Bad debt expenses			6,320,196				16,294,501				2,242,198				18,679,474				21,768,072				2,995,386
(Gains) losses and impairment on equity securities held			263,836				6,172,071				849,305				4,800,398				15,424,655				2,122,503
Loss (gains) on disposal of property, plant and equipment			341,428				(27,468,283	)			(3,779,762	)			227,841				(25,116,235	)			(3,456,109	)
Foreign exchange （gains）losses			(2,075,742	)			(675,522	)			(92,955	)			(1,088,199	)			(8,763,951	)			(1,205,960	)
Share-based compensation			40,228				15,662				2,155				28,592				31,324				4,310
Common control acqisition			-				-				-				-				-				-
Accounts receivable			12,166,576				(9,573,578	)			(1,317,368	)			5,115,694				(7,729,151	)			(1,063,567	)
Inventories			6,481,086				2,827,794				389,117				7,450,726				14,889,563				2,048,872
Amounts due from related parties			2,589,713				697,431				95,970				1,628,528				299,828				41,258
Other current assets			(27,171,354	)			10,574,968				1,455,164				(34,898,036	)			5,084,951				699,713
Other assets			982,532				3,957,871				544,621				5,946,767				1,300,958				179,018
Accounts payable			(14,607,485	)			(3,702,034	)			(509,417	)			(9,917,160	)			(12,560,243	)			(1,728,347	)
Amounts due to related parties			(47,036	)			471,776				64,919				(1,679,391	)			(1,404,655	)			(193,287	)
Salary and welfare payable			1,978,299				2,882,934				396,705				6,472,864				(1,424,059	)			(195,957	)
Deferred revenue			(1,377,240	)			(24,826,323	)			(3,416,216	)			(5,859,113	)			(31,702,936	)			(4,362,469	)
Advance from customers			(7,260,648	)			3,539,512				487,053				(3,657,822	)			(417,287	)			(57,421	)
Accrued expenses and other current liabilities			(8,464,829	)			20,530,026				2,825,026				67,807,146				(3,285,616	)			(452,116	)
Income tax payable			32,970,813				(16,508,534	)			(2,271,650	)			51,282,274				(8,261,323	)			(1,136,796	)
Unrecognized tax benefits			16,935,503				(13,752,067	)			(1,892,347	)			31,960,399				(6,196,090	)			(852,610	)
Operating lease liabilities			(68,614,626	)			(67,855,157	)			(9,337,180	)			(124,678,168	)			(109,769,095	)			(15,104,730	)
Other long-term liabilities			(1,510,480	)			(7,223,642	)			(994,006	)			(8,081,365	)			(8,319,829	)			(1,144,847	)
Deferred taxes			(3,137,502	)			13,855,962				1,906,644				(31,332,490	)			13,966,300				1,921,827
Net cash provided by operating activities			147,574,909				69,165,002				9,517,422				313,108,656				159,894,221				22,002,173
Investing activities:
Purchases of property, plant and equipment			(37,617,117	)			(9,639,401	)			(1,326,426	)			(71,733,234	)			(20,193,926	)			(2,778,777	)
Purchases of intangible assets			(309,827	)			-				-				(352,281	)			-				-
Proceeds from disposal of property, plant and equipment			7,723,107				138,000,000				18,989,432				14,696,681				139,733,100				19,227,914
Payment for acquisition of minority equity			-				(966,000	)			(132,926	)			-				(966,000	)			(132,926	)
Purchases of short-term investments			(51,370,000	)							-				(51,370,000	)							-
Proceeds from short-term investments			42,242,806				-				-				133,643,184				419,362,037				57,706,137
Increase of long-term time deposits			-				(222,230,000	)			(30,579,866	)			-				(222,230,000	)			(30,579,866	)
Purchases of long-term investments			-				222,230,000				30,579,866				-				-				-
Proceeds from disposal of equity securities			-				-				-				-				-				-
Proceeds from disposal of a subsidiary			18,900,000				1,500,000				206,407				37,800,000				1,500,000				206,407
Loan to related parties			-				(270,000	)			(37,153	)			-				(270,000	)			(37,153	)
Repayment from related parties			-				-				-				-				-				-
Loan to third parties			1,000,000				(1,200,000	)			(165,125	)			-				(1,200,000	)			(165,125	)
Repayment of loan from third parties			13,948,758				4,223,936				581,233				14,417,077				5,595,889				770,020
Loan to fanchisees			(2,945,000	)			(1,600,000	)			(220,167	)			(9,974,596	)			(1,600,000	)			(220,167	)
Repayment from franchisees			34,286,988				27,516,214				3,786,357				61,121,572				50,977,221				7,014,699
Net cash (used in) provided by investing activities			25,859,715				157,564,749				21,681,632				128,248,403				370,708,321				51,011,163
Financing activities:
Distribution to the shareholders			-				(760,321	)			(104,624	)			-				(760,321	)			(104,624	)
Repayment of bank loans			136,600,000				(200,000	)			(27,521	)			-				(117,000,000	)			(16,099,736	)
Proceeds from bank loans			(271,400,000	)			-				-				(154,400,000	)			200,000,000				27,520,916
Capital contribution from non-controlling interest holders			117,000,000				-				-				117,000,000				-				-
Net cash provided by (used in) financing activities			(17,800,000	)			(960,321	)			(132,145	)			(37,400,000	)			82,239,679				11,316,556
Effect of exchange rate changes on cash and cash equivalents and restricted cash			383,577				(149,700	)			(20,600	)			343,051				(2,799,929	)			(385,278	)
Net (decrease) increase in cash and cash equivalents			156,018,201				225,619,730				31,046,309				404,300,110				610,042,292				83,944,614
Cash and cash equivalents at the beginning of the period			982,911,111				1,176,023,274				161,826,188				734,629,202				791,600,712				108,927,883
Cash and cash equivalents at the end of the period			1,138,929,312				1,401,643,004				192,872,497				1,138,929,312				1,401,643,004				192,872,497

 

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GreenTree Hospitality Group Ltd.

 

Unaudited Reconciliation of GAAP and Non-GAAP Results

 

		Quarter Ended												Six Month Ended
		June 30, 2023				June 30, 2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Net income			101,946,360				62,261,861				8,567,518				134,503,754				119,556,728				16,451,551
Deduct:
Other operating income			11,511,398				36,542,303				5,028,388				14,670,917				38,768,236				5,334,687
Interest income and other, net			9,750,337				11,003,960				1,514,195				17,379,351				19,950,499				2,745,280
Share of gain in equity investees, net of tax			-				-				-				-				-				-
Other income, net			43,295,830				3,556,454				489,384				41,146,248				16,791,024				2,310,522
Add:
Other operating expenses			6,341,735				211,911				29,160				7,834,218				2,420,193				333,030
Other general expenses			4,309,239				5,911,956				813,512				15,973,584				11,756,531				1,617,753
Income tax expenses (benefits)			45,241,208				26,733,733				3,678,684				59,950,083				53,181,694				7,318,045
Share of loss in equity investees, net of tax			341,265				1,174,966				161,681				786,883				869,757				119,683
Interest expenses			3,868,469				2,629,228				361,793				9,396,530				4,369,057				601,203
Depreciation and amortization			29,239,835				29,137,972				4,009,518				60,319,927				60,479,676				8,322,280
Losses from investment in equity securities			263,836				6,172,071				849,305				4,800,398				15,424,655				2,122,503
Other expense, net			-				-				-				-				-				-
Adjusted EBITDA (Non-GAAP)			126,994,382				83,130,981				11,439,204				220,368,861				192,548,532				26,495,559

 

		Quarter Ended												Six Month Ended
		June 30, 2023				June 30, 2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2024
		RMB				RMB				US$				RMB				RMB				US$
Net income			101,946,360				62,261,861				8,567,518				134,503,754				119,556,728				16,451,551
Deduct:
Government subsidies (net of 25% tax)			6,275,245				210,000				28,897				6,671,305				469,886				64,658
Gains from investment in equity securities (net of 25% tax)			-				-				-				-				-				-
Other income (net of 25% tax)			30,859,686				2,667,340				367,038				30,859,686				12,593,268				1,732,891
Add:
Share-based compensation			40,228				15,662				2,155				28,592				31,324				4,310
Losses from investments in equity securities (net of 25% tax)			197,877				4,629,053				636,979				3,600,299				11,568,491				1,591,877
Other expense (net of 25% tax)			(1,612,187	)			-				-				-				-				-
One-time fees and expenses			813,078				239,820				33,000				1,960,856				1,055,008				145,174
Other general expenses			4,309,239				5,911,956				813,512				15,973,584				11,756,531				1,617,753
Core net income (Non-GAAP)			68,559,664				70,181,012				9,657,229				118,536,094				130,904,928				18,013,116
Core net income per ADS (Non-GAAP)
Class A ordinary share-basic and diluted			0.67				0.69				0.10				1.16				1.29				0.18
Class B ordinary share-basic and diluted			0.67				0.69				0.10				1.16				1.29				0.18

 

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Hotel Operational Data  

 

		June 30, 2023				June 30, 2024
Total hotels in operation:			4,108				4,272
Leased and owned hotels			65				62
Franchised hotels			4,043				4,210
Total hotel rooms in operation			303,387				312,734
Leased and owned hotels			7,137				6,937
Franchised hotels			296,250				305,797
Number of cities			357				353

 

		Quarter Ended
		2023 Q2				2024 Q2
Occupancy rate (as a percentage)
Leased-and-owned hotels			74.6	%			70.7	%
Franchised hotels			77.9	%			72.6	%
Blended			77.8	%			72.5	%
Average daily rate (in RMB)
Leased-and-owned hotels			255				250
Franchised hotels			179				171
Blended			181				173
RevPAR (in RMB)
Leased-and-owned hotels			191				177
Franchised hotels			139				124
Blended			141				125

 

		Number of Hotels in Operation								Number of Hotel Rooms in Operation
		June 30, 2023				June 30, 2024				June 30, 2023				June 30, 2024
Mid-to-up-scale			438				505				42,338				47,697
GreenTree Eastern			217				227				23,205				24,493
Deepsleep Hotel			7				7				534				534
Gem			54				82				4,873				7,258
Gya			70				75				5,904				6,238
Vx			90				99				7,822				8,695
Others			-				15				-				499
Mid-scale			2,933				2,948				229,270				229,970
GreenTree Inn			2,259				2,315				181,015				182,957
GT Alliance			545				503				39,091				37,923
GreenTree Apartment			21				21				1,351				1,385
Vatica			108				109				7,813				7,705
City 118 Selected and others			-				-				-				-
Economy hotels			737				819				31,779				35,067
Shell			737				819				31,779				35,067
City 118 and others			-				-				-				-
Total			4,108				4,272				303,387				312,734

 

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Restaurant Operational Data

 

		June 30, 2023				June 30, 2024
Total restaurants in operation:			206				183
Leased and owned restaurants			57				24
Franchised restaurants			149				159
Number of cities			66				57
Da Niang Dumplings			170				155
Bellagio			36				28

 

		Quarter Ended
		2023 Q2				2024 Q2
ADT
Leased-and-owned restaurants			148				165
Franchised restaurants			88				73
Blended			109				90
AC (in RMB)
Leased-and-owned restaurants			84				105
Franchised restaurants			41				38
Blended			56				53
ADS (in RMB)
Leased-and-owned restaurants			12,456				17,306
Franchised restaurants			3575				2,815
Blended			6,082				4,737

 

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For more information, please contact:

 

GreenTree

 

Ms. Selina Yang

Phone: [phone]

E-mail: [e-mail]

 

Mr. Maple Miao

Phone: [phone]

E-mail: [e-mail]

 

Christensen

 

In Shanghai

 

Mr. Jerry Xu

Phone: [phone]

E-mail: [e-mail]

 

In Hong Kong 

 

Ms. Karen Hui 

Phone: [phone] 

E-mail: [e-mail]

 

In the US 

 

Ms. Linda Bergkamp 

Phone: [phone]

E-mail: [e-mail]

 

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