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.

 

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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: +86-158-2166-6251

E-mail: ir@998.com

 

Mr. Maple Miao

Phone: +86-181-0184-0639

E-mail: ir@998.com

 

Christensen

 

In Shanghai

 

Mr. Jerry Xu

Phone: +86-138-1680-0706

E-mail: jerry.xu@christensencomms.com

 

In Hong Kong 

 

Ms. Karen Hui 

Phone: +852-9266-4140 

E-mail: karen.hui@christensencomms.com

 

In the US 

 

Ms. Linda Bergkamp 

Phone: +1-480-614-3004

E-mail: linda.bergkamp@christensencomms.com

 

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