— Total revenues decreased by 18.2% year over year to RMB304.5 million (US$41.7 million)[1].
— Net income was RMB-72.8million (US$-10.0 million)[1] compared to RMB8.6 million for the fourth quarter of 2023.
— Adjusted net income[2] was RMB77.3 million (US$10.6 million)[1] compared to RMB60.9 million for the fourth quarter of 2023.
— Cash from operations increased year over year to RMB74.2 million (US$10.2 million)[1].
GreenTree Hospitality Group Ltd. (NYSE: GHG) (“GreenTree”, the “Company”, “we”, “us” and “our”), a leading hospitality and restaurantmanagement groupin China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2024.As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China,were all under the control of GreenTreeInnsHotel ManagementGroup,Inc., until their acquisition by the Company, the acquisition was accounted for a common-control acquisition in a manner similar to the pooling -of-interests method. The consolidated balance sheets and consolidated statements of comprehensive income/(loss) include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control. In this report, the comparative financial data have been restated to reflect the business combinations under common control.
Fourth Quarter of2024Operational Highlights
Hotels
— A total of 4,425 hotels with 321,282 hotel rooms were in operation as of December 31, 2024.
— The Company opened 143 hotels and had a pipeline of 1,214 hotels contracted for or under development as of December 31, 2024.
— The average daily room rate was RMB169, a decrease of 4.6% from RMB177 in the fourth quarter of 2023.
— The occupancy rate was 68.6%, down from 72.4% in the fourth quarter of 2023.
— Revenue per available room, orRevPAR,was RMB116, a 9.6% year-over-year decrease.
Restaurants
— A total of 182 restaurants were in operation as of December 31, 2024.
— The AC (average check) was RMB46, a 11.0% year-over-year decrease.
— TheADT (average daily tickets)was 93, downfrom99in the fourthquarter of 2023.
— The ADS (average daily sales per store) was RMB4,234, a decrease of 16.8% from RMB5,090 in the fourth quarter of 2023.
[1] The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 7.2993 on December 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] Adjustd net income is defined as net income excluding the impairment of goodwill and trademarks of restaurant businessï¼OEimpairment of assets, and provisions for loan receviables related to franchisee loans.
Our performance in the fourth quarter was negatively impacted by the closure of 12 leased and managed hotels during the year, lower RevPar compared to a high base last year, and the continued optimization of our restaurant business.
In our hotel business we are simultaneously accelerating the opening of new hotels, with a planned 480 in 2025, and upgrading our existing portfolio with an absolute focus on quality to ensure higher standards of products and services. We believe that the rejuvenation of our portfolio that was slowed down by the pandemic will be completed by the Summer of 2026. While Midscale remains our core segment, hotel openings in 2024 and our pipeline highlight our strategic commitment to expanding our Mid-to-upscale segment where we expect growth over the next two years to deliver significant economies of scale. Finally, we will continue the phased closure of leased and managed hotels, retaining only select flagship properties in key cities to serve as showcases of our capabilities for prospective franchisees.
The strategic transformation of our restaurant business made further progress on our two priorities. At the end of the quarter, franchised and managed stores accounted for almost 90% of all stores up from 78% a year ago , and street stores that benefit from more stable consumer traffic accounted for 50% of all stores, up from 40% a year ago. Additionally, we have been rightsizing many of our stores, reflecting the new economic reality, to improve overall profitability. We believe we now have a strong foundation to build on and will grow the overall number of restaurants in 2025 with a particular focus on franchised and managed as well as street stores.
Quarter Ended December 31, December 31, December 31, December 31, 2023 2023 2023 2023 RMB RMB RMB RMB Hotel Restaurant Elimination TotalRevenuesLeased-and-operated 125,521,090 48,191,718 1,075,555 174,788,363revenuesFranchised-and-managed 162,861,219 1,687,913 – 164,549,132revenuesWholesales and others 1,267,181 37,843,179 (6,284,349) 32,826,011Total revenues 289,649,490 87,722,810 (5,208,794) 372,163,506
Quarter Ended December 31, December 31, December 31, December 31, December 31, 2024 2024 2024 2024 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total TotalRevenuesLeased-and-operated 90,969,160 28,534,041 (207,412) 119,295,789 16,343,456revenuesFranchised-and-managed 148,174,447 4,759,771 – 152,934,218 20,951,902revenuesWholesales and others 1,026,363 31,759,229 (495,936) 32,289,656 4,423,665Total revenues 240,169,970 65,053,041 (703,348) 304,519,663 41,719,023
2024Financial Results
Year Ended December 31, December 31, December 31, December 31, 2023 2023 2023 2023 RMB RMB RMB RMB Hotel Restaurant Elimination TotalRevenuesLeased-and-operated 490,924,060 296,890,282 – 787,814,342revenuesFranchised-and-managed 696,321,236 8,923,712 – 705,244,948revenuesWholesales and others 4,660,777 135,821,972 (6,284,350) 134,198,399Total revenues 1,191,906,073 441,635,966 (6,284,350) 1,627,257,689
Year Ended December 31, December 31, December 31, December 31, December 31, 2024 2024 2024 2024 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total TotalRevenuesLeased-and-operated 437,521,898 159,326,153 (207,411) 596,640,640 81,739,433revenuesFranchised-and-managed 625,072,856 10,287,457 – 635,360,313 87,044,006revenuesWholesales and others 3,908,057 109,031,616 (1,500,428) 111,439,245 15,267,114Total revenues 1,066,502,811 278,645,226 (1,707,839) 1,343,440,198 184,050,553
Total revenueswere RMB304.5 million (US$41.7 million)[1]ï¼OEa 18.2% year-over-year decrease.
Hotel revenues were RMB240.2million (US$32.9million)[1], a 17.1% year-over-year decrease. The decrease was mainly attributable to a 9.8% decrease in F&M hotels' Revpar and the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease.
Restaurant revenues were RMB65.1million (US$8.9million)[1], a 25.8% year-over-year decrease. The decrease was mainly due to the closure of L&O stores, anda 16.8% decrease in ADS.
Total revenues for the year were RMB1,343.4 million (US$184.1 million)[1], a 17.4% year-over-year decrease.
Total revenues from leased-and-operated, or L&O, hotelsand restaurantswere RMB119.3million (US$16.3million)[1], a 31.7% year-over-year decrease.
Total revenues from L&O hotels were RMB91.0million (US$12.5million)[1], a 27.5% year-over-year decrease. The decrease was mainly attributable to the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease. Same L&O hotel revenues in the fourth quarter of 2024 decreased by 2.4% year over year.
Total revenues from L&O restaurants were RMB28.5million (US$3.9million)[1], a 40.8% year-over-year decrease. The decrease was mainly due to the closure of 24 L&O stores during the year and offset by 47.1% increase in ADS. Same L&O store revenues in the fourth quarter of 2024 decreased by 3.1% year over year.
Total revenues from L&O hotels and restaurants for the year were RMB596.6million (US$81.7million)[1], a 24.3% year-over-year decrease.
Total revenues from franchised-and-managed, or F&M, hotelsand restaurantswere RMB152.9 million (US$21.0 million)[1], a 7.1% year-over-year decrease.
Total revenues from F&M hotels were RMB148.2million (US$20.3million)[1], a 9.0% year-over-year decrease, mainly due to a 9.8% decrease in F&M hotels' Revpar.
Total revenues from F&M restaurantswere RMB4.8million (US$0.7million)[1], a 182.0% year-over-year increase. The increase was mainly due to the opening of 39F&M restaurants during the year.
Total revenues from F&M hotels and restaurants for the year were RMB635.4 million (US$87.0 million)[1], a 9.9% year-over-year decrease.
Total revenues from wholesale and otherswere RMB32.3 million (US$4.4 million)[1], a 1.6% year-over-year decrease. Total revenues from wholesale and others for the year were RMB111.4 million (US$15.3 million)[1], a 17.0% year-over-year decrease.
Total operating costs and expenses
Quarter Ended December 31, December 31, December 31, December 31, 2023 2023 2023 2023 RMB RMB RMB RMB Hotel Restaurant Elimination TotalOperating costs and expensesOperating costs 154,556,991 66,896,044 (9,861,359) 211,591,676Selling and marketing expenses 8,318,853 2,821,243 (49,623) 11,090,473General and administrative expenses 49,670,060 8,374,981 – 58,045,041Other operating expenses 3,429,367 139,799 – 3,569,166Impairment loss of goodwill – – – -Other general expenses 36,260,493 16,027,000 – 52,287,493Total operating costs and expenses 252,235,764 94,259,067 (9,910,982) 336,583,849
Quarter Ended December 31, December 31, December 31, December 31, December 31, 2024 2024 2024 2024 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total TotalOperating costs and expensesOperating costs 139,910,728 59,854,076 (791,324) 198,973,480 27,259,255Selling and marketing expenses 13,451,271 4,083,785 87,975 17,623,031 2,414,345General and administrative expenses 39,695,498 3,347,191 – 43,042,689 5,896,824Other operating expenses 2,635,870 16,422 – 2,652,292 363,363Impairment loss of goodwill 81,008,000 81,008,000 11,098,050Other general expenses 30,012,799 39,072,000 – 69,084,799 9,464,579Total operating costs and expenses 225,706,166 187,381,474 (703,349) 412,384,291 56,496,416
Year Ended December 31, December 31, December 31, December 31, 2023 2023 2023 2023 RMB RMB RMB RMB Hotel Restaurant Elimination TotalOperating costs and expensesOperating costs 598,841,951 359,018,687 (10,421,824) 947,438,814Selling and marketing expenses 47,434,683 24,232,973 (49,623) 71,618,033General and administrative expenses 166,861,387 41,572,291 – 208,433,678Other operating expenses 4,453,446 7,251,107 – 11,704,553Impairment loss of goodwill – – – -Other general expenses 63,556,586 16,027,000 – 79,583,586Total operating costs and expenses 881,148,053 448,102,058 (10,471,447) 1,318,778,664
Year Ended December 31, December 31, December 31, December 31, December 31, 2024 2024 2024 2024 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total TotalOperating costs and expensesOperating costs 593,798,806 230,496,349 (1,707,841) 822,587,314 112,694,000Selling and marketing expenses 55,028,196 12,556,863 – 67,585,059 9,259,115General and administrative expenses 156,401,775 26,149,319 – 182,551,094 25,009,397Other operating expenses 4,937,315 2,153,148 – 7,090,463 971,389Impairment loss of goodwill – 81,008,000 – 81,008,000 11,098,050Other general expenses 41,769,330 39,072,000 – 80,841,330 11,075,217Total operating costs and 851,935,422 391,435,679 (1,707,841) 1,241,663,260 170,107,169expenses
Operating costswere RMB199.0 million (US$ 27.3million)[1], a 6.0% year-over-year decrease.
Operating costs of the hotel business were RMB139.9 million (US$19.2million)[1],a 9.5% year-over-year decrease.The decrease was mainly attributable to the closure of 12 L&O stores in 2024, which resulted in lower rental, consumable, food and beverage, and staff related costs.
Operating costs of the restaurant business were RMB59.9million (US$8.2 million)[1], a 10.5% year-over-year decrease. The decrease was mainly due to the closure of 24 L&O stores.
For the year, operating costs were RMB822.6 million (US$112.7 million)[1], representing an 13.2% decrease.
Selling and marketing expenseswere RMB17.6 million (US$2.4 million)[1], a 58.9% year-over-year increase.
Selling and marketing expenses of the hotel business were RMB13.5 million (US$1.8 million)[1], a 61.7% year-over-year increase.
Selling and marketing expenses of the restaurant business were RMB4.1 million (US$0.6 million)[1]..
For the year, selling and marketing expenses were RMB67.6 million (US$9.3 million)[1], a 5.6% decrease.
General and administrative, or G&A expenseswere RMB43.0 million (US$5.9 million)[1], a 25.8% year-over-year decrease.
G&A expenses of the hotel business were RMB39.7 million (US$5.4 million)[1], a 20.1% year-over-year decrease. The decrease was mainly due to lower consulting fees, lower bad debts from accounts receivables, and lower G&A staff related expenses.
G&A expenses of the restaurant business were RMB3.3 million (US$0.5 million)[1], a 60.0 % year-over-year decrease. The decrease was mainly due to lower staff related expenses.
For the year, G&A expenses were RMB182.6 million (US$25.0million)[1], a 12.4% year-over-year decrease.
Impairment loss of goodwill were RMB81.0million (US$11.1 million)[1],These expenses were impairmentof goodwill related to the restaurant business.
Other general expenseswere RMB69.1million (US$9.5 million)[1], a 32.1% year-over-year increase. These expenses include impairmentof trademarks related to the restaurant business, impairment of assets, and provisions for franchisee loans receivables related to franchisee loans.
Gross profitwas RMB105.5million (US$14.5million)[1], a year-over-year decrease of 34.3%. Gross margin was 34.7%, compared to 43.1% a year ago. The gross profit of the hotel business was RMB100.3million(US$13.7million)[1], an25.8% year-over-year decrease.The gross profit of the restaurant business was RMB5.2million(US$0.7million)[1], a 75.0% year-over-year decrease.Gross profit for the year was RMB520.9million (US$71.4 million)[1], a 23.4% year-over-year decrease.
Income from operations was RMB-95.0million (US$-13.0million)[1],compared to incomefrom operations of RMB46.9million in the fourthquarterof 2023, with a margin of-31.2%. Excludingimpairment loss of goodwill and other general expenses,income from operationswas RMB55.1 million(US$7.6million)withamarginof18.1%.
Income from operations ofthe hotel business was RMB26.1million (US$3.6million)[1], compared to an incomefrom operations of RMB47.4 million in the fourth quarter of 2023, with a margin of10.9%.Excluding other general expenses,income from operations ofthe hotel business was RMB56.1 million(US$7.7million), a decrease of 32.9%, with a margin of 23.4%.
Lossfrom operations of the restaurant business was RMB121.1million (US$16.6million)[1], compared to lossfrom operations of RMB5.1million in the fourth quarter of 2023,with a margin of -186.1%. Excluding impairment loss of goodwill and other general expenses,lossfrom operationsofthe restaurant businesswas RMB1.0 million(US$0.1million)withamarginof-1.5%.
Income from operationsfor the year was RMB161.9million (US$22.2 million)[1]compared to incomefrom operations of RMB335.6millionin 2023, with a margin of12.1%.
Net income was RMB-72.8million (US$-10.0million)[1], compared to a net incomeof RMB8.6 million in the fourth quarterof 2023, and net margin was-23.9%. Excluding impairment loss of goodwill and other general expenses, adjusted net income increased 26.8% year over year toRMB77.3 million(US$10.6million)[1]with a margin of 25.4%.
Net income of the hotel business was RMB28.4million (US$3.9million)[1], compared to a net incomeof RMB8.1million in the fourth quarter of 2023, and net margin was 11.8%. Excluding other general expenses,adjusted net incomeof the hotel business increased 31.7% to RMB58.4 million (US$8.0million)[1]with a margin of 24.3%.
Net lossof the restaurant business was RMB101.2million (US$13.9million)[1], compared to a net lossof RMB2.9million in the fourthquarter of 2023, and net margin was -155.5%.Excluding the impairmentoftrademarksandgoodwill,adjusted net income ofthe restaurant businesswas RMB18.9 million(US$2.6million)[1]with a margin of 29.1%.
Net income for the year was RMB107.3 million (US$14.7 million)[1]compared to net incomeof RMB260.5millionin 2023, with a margin of8.0%. Excluding the impairmentof goodwill due to the restaurant business andother general expenses,adjusted net incomedecreased 20.9% to RMB269.2 million with a margin of 20.0%.
Adjusted EBITDA (non-GAAP)[2]was RMB71.5 million (US$9.8 million)[1], a year-over-year decreaseof 38.3%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 23.5%, compared to 31.1% a year ago. Adjusted EBITDA (non-GAAP) for the year was RMB386.5 million (US$52.9 million)[1], a year-over-year decreaseof 25.2%.
Core net income (non-GAAP)was RMB57.8million (US$7.9 million)[1], a year-over-year decreaseof 22.3%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 19.0%, compared to 20.0% one year ago. Core net income (non-GAAP) for the year was RMB277.6 million (US$38.0million)[1], a year-over-year decrease of 13.3%.
Earnings per American Depositary Share, or ADS, (basic and diluted)wereRMB-0.70(US$-0.10 )[1], downfrom RMB0.12one year ago.Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.57 (US$0.08 )[1], downfrom RMB0.73a year ago.
Earnings per ADS (basic and diluted)for the hotelbusinesswereRMB0.29(US$0.04)[1],increaedfromRMB0.10oneyearago. Core net income per ADS (basic and diluted) (non-GAAP)for the hotelbusiness were RMB0.45 (US$0.06)[1].
Earnings per ADS (basic and diluted) for the year of 2024 was RMB1.08 (US$0.15)[1] down from RMB2.64 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB2.73 (US$0.37)[1]for the year, a decrease from RMB3.14a year ago.
Cash flow Operating cash inflow was RMB 74.2 million (US$10.2 million)[1] as a result of income from operations. Investing cash outflow for the fourth quarter 2024 was RMB 25.2million (US$3.5million)[1], which was primarily attributable to investment of property and purchases of equipment, and was partially offset by proceeds from disposal of equity securities. Financing cash outflow was RMB 70.4 million (US$9.7 million)[1], mainly attributable to dividends distributed to the shareholders.
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. Asof December 31, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB 1,839.1 million (US$252.0 million)[1], compared to RMB1,883.9million as of September 30, 2024. The decrease was primarily due to dividends distributed to the shareholders and investment of property, partially offset by cash from operating activities.
Guidance
Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the decline of total revenues of our organic hotel business for the full year of 2025 to be flat compared to their2024 levels.
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.
Conference Call
GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on April 24, 2025, (8:00 PM Beijing/Hong Kong Time onApril24, 2025).
Dial-in numbers for the live conference call are as follows:
International 1-412-902-4272Mainland China 4001-201-203US 1-888-346-8982Hong Kong 800-905-945 or 852-3018-4992Singapore 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 May 1, 2025.
Dial-in numbers for the replay are as follows:
International Dial-in 1-412-317-0088U.S. Toll Free 1-877-344-7529Canada Toll Free 855-669-9658Passcode: 2742742
Additionally, a live and archived webcast of this conference call will be available athttp://ir.998.com.
Use of Non-GAAP Financial Measures
We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.
The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.
The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.
Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. (“GreenTree” or the “Company”) (NYSE: GHG) is a leading hospitality and restaurant management group in China.As of December 31, 2024, GreenTree had a total number of 4,425hotels and 182 restaurants. In 2023, HOTELS magazine ranked GreenTree 12th 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 2022 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 visithttp://ir.998.com
Safe Harbor Statements
This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995.In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” “confident,” “future,” or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.
Financial Tables and Operational Data Follow
GreenTree Hospitality Group Ltd.Unaudited Condensed Consolidated Balance Sheets December 31, December 31, December 31, 2023 2024 2024 RMB RMB US$ASSETSCurrent assets:Cash and cash equivalents 765,547,547 1,490,235,562 204,161,435Restricted cash 6,576,906 16,096,476 2,205,208Short-term investments 417,711,617 10,475 1,435Investments in equity securities 26,076,169 – -Accounts receivable, net of 123,887,879 99,688,034 13,657,205allowanceAmounts due from related parties 19,928,781 21,839,929 2,992,058Prepaid rent – – -Inventories 20,462,490 6,881,470 942,758Other current assets 117,047,122 114,898,590 15,741,042Loans receivable, net 129,521,094 85,463,467 11,708,447Deferred tax assets – – -Total current assets 1,626,759,605 1,835,114,003 251,409,588Non-current assets:Amounts due from a related party 110,000,000 110,000,000 15,069,938Restricted cash 19,476,259 18,869,900 2,585,166Long-term time deposits 63,340,000 285,570,000 39,122,930Loans receivable, net 70,690,305 15,372,238 2,105,988Property and equipment, net 814,949,026 649,528,210 88,985,000Intangible assets, net 117,720,693 75,677,551 10,367,782Goodwill 177,082,468 96,074,468 13,162,148Long-term investments 184,758,800 184,024,217 25,211,214Operating lease right-of-use assets 1,535,330,762 1,328,582,419 182,015,045Other assets 104,725,600 102,545,848 14,048,724Deferred tax assets 241,965,360 245,760,095 33,668,995TOTAL ASSETS 5,066,798,878 4,947,118,949 677,752,518LIABILITIES AND EQUITYCurrent liabilities:Long-term bank loans, current portion 200,000 – -Short-term bank loans 116,800,000 400,000 54,800Accounts payable 73,126,677 56,488,405 7,738,880Advance from customers 22,393,097 25,684,437 3,518,753Amounts due to related parties 16,310,293 17,462,176 2,392,308Salary and welfare payable 86,332,096 78,234,585 10,718,094Deferred rent – – -Deferred revenue 186,281,838 175,046,178 23,981,228Accrued expenses and other current 459,832,717 481,910,291 66,021,439liabilitiesIncome tax payable 112,782,712 88,876,497 12,176,030Dividends payable – – -Operating lease liabilities, current 267,536,846 241,363,244 33,066,629Deferred tax liabilities – – -Total current liabilities 1,341,596,276 1,165,465,813 159,668,161Long-term bank loans 56,800,000 256,200,000 35,099,256Deferred rent – – -Deferred revenue 207,905,769 176,353,919 24,160,388Other long-term liabilities 111,711,748 120,975,955 16,573,638Operating lease liabilities, 1,391,909,309 1,215,776,075 166,560,639non-currentDeferred tax liabilities 94,716,495 79,670,908 10,914,870Unrecognized tax benefits 382,125,786 440,072,214 60,289,646Total liabilities 3,586,765,383 3,454,514,884 473,266,598Shareholders' equity:Class A ordinary shares 222,587,070 222,587,070 30,494,304Class B ordinary shares 115,534,210 115,534,210 15,828,122Paid-in capital – – -Treasury Stock (36,677,832) (37,043,116) (5,074,886)Additional paid-in capital 1,680,713,349 1,680,148,272 230,179,370Retained earnings (Accumulated (568,339,799) (528,513,571) (72,406,062)losses)Accumulated other comprehensive 28,401,282 6,033,263 826,554incomeTotal GreenTree Hospitality Group 1,442,218,280 1,458,746,128 199,847,402Ltd. shareholders' equityNon-controlling interests 37,815,215 33,857,937 4,638,518Total shareholders' equity 1,480,033,495 1,492,604,065 204,485,920TOTAL LIABILITIES AND 5,066,798,878 4,947,118,949 677,752,518SHAREHOLDERS' EQUITY
GreenTree Hospitality Group Ltd.Unaudited Condensed Consolidated Statements of Comprehensive Income Quarter Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$RevenuesLeased-and-operated 174,788,363 119,295,789 16,343,456 787,814,342 596,640,640 81,739,433revenuesFranchised-and-managed 164,549,132 152,934,218 20,951,902 705,244,948 635,360,313 87,044,006revenuesWholesales and others 32,826,011 32,289,656 4,423,665 134,198,399 111,439,245 15,267,114Total revenues 372,163,506 304,519,663 41,719,023 1,627,257,689 1,343,440,198 184,050,553Operating costs andexpensesOperating costs (211,591,676) (198,973,480) (27,259,255) (947,438,814) (822,587,314) (112,694,000)Selling and marketing (11,090,473) (17,623,031) (2,414,345) (71,618,033) (67,585,059) (9,259,115)expensesGeneral and (58,045,041) (43,042,689) (5,896,824) (208,433,678) (182,551,094) (25,009,397)administrative expensesOther operating expenses (3,569,166) (2,652,292) (363,363) (11,704,553) (7,090,463) (971,389)Impairment loss of – (81,008,000) (11,098,050) – (81,008,000) (11,098,050)goodwillOther general expenses (52,287,493) (69,084,799) (9,464,579) (79,583,586) (80,841,330) (11,075,217)Total operating costs (336,583,849) (412,384,291) (56,496,416) (1,318,778,664) (1,241,663,260) (170,107,169)and expensesOther operating income 11,362,962 12,898,817 1,767,131 27,169,901 60,147,558 8,240,182Income from operations 46,942,619 (94,965,811) (13,010,262) 335,648,926 161,924,496 22,183,565Interest income and 10,329,773 12,633,535 1,730,787 41,371,162 40,072,068 5,489,851other, netInterest expense (916,820) (1,824,933) (250,015) (14,053,841) (6,310,152) (864,487)Gains (losses) from (943,283) (9,544,253) (1,307,557) (5,378,104) (14,953,679) (2,048,646)investment in equitysecuritiesOther income, net (20,142,532) 34,336,161 4,704,035 22,783,714 16,474,064 2,256,938Income before income 35,269,757 (59,365,301) (8,133,012) 380,371,857 197,206,797 27,017,221taxesIncome tax expense (26,116,933) (12,758,025) (1,747,842) (118,452,255) (88,726,969) (12,155,545)Income (loss) before 9,152,824 (72,123,326) (9,880,854) 261,919,602 108,479,828 14,861,676share of gains in equityinvesteesShare of loss/(income) in (522,092) (700,781) (96,007) (1,392,002) (1,165,474) (159,669)equity investees, net oftaxNet income(loss) 8,630,732 (72,824,107) (9,976,861) 260,527,600 107,314,354 14,702,007Net loss/(income) 3,484,240 1,368,731 187,515 8,788,708 2,687,878 368,238attributable tonon-controlling interestsNet income attributable 12,114,972 (71,455,377) (9,789,346) 269,316,308 110,002,232 15,070,245to ordinaryshareholdersNet earnings per shareClass A ordinary 0.12 (0.70) (0.10) 2.64 1.08 0.15share-basic and dilutedClass B ordinary 0.12 (0.70) (0.10) 2.64 1.08 0.15share-basic and dilutedNet earnings per ADSClass A ordinary 0.12 (0.70) (0.10) 2.64 1.08 0.15share-basic and dilutedClass B ordinary 0.12 (0.70) (0.10) 2.64 1.08 0.15share-basic and dilutedWeighted averageshares outstandingClass A ordinary 67,038,968 66,765,032 9,146,772 67,321,003 66,776,243 9,148,308share-basic and dilutedClass B ordinary 34,762,909 34,762,909 4,762,499 34,762,909 34,762,909 4,762,499share-basic and dilutedOther comprehensiveincome, net of taxForeign currency (258,427) (20,725,862) (2,839,431) 669,178 (22,368,019) (3,064,406)translation adjustmentsUnrealized gains(loss) onavailable-for-saleinvestments, net of taxComprehensive 8,372,305 (93,549,969) (12,816,292) 261,196,778 84,946,335 11,637,601income, net of taxComprehensive 3,381,135 1,368,731 187,515 8,685,603 2,687,878 368,238loss/(income) attributableto non-controllinginterestsComprehensive income 11,753,440 (92,181,238) (12,628,777) 269,882,381 87,634,213 12,005,839(loss) attributable toordinary shareholders
GreenTree Hospitality Group Ltd.Unaudited Condensed Hotel Statements of Comprehensive Income Quarter Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$RevenuesLeased-and-operated revenues 125,521,090 90,969,160 12,462,724 490,924,060 437,521,898 59,940,254Franchised-and-managed 162,861,219 148,174,447 20,299,816 696,321,236 625,072,856 85,634,630revenuesWholesales and others 1,267,181 1,026,363 140,611 4,660,777 3,908,057 535,402Total revenues 289,649,490 240,169,970 32,903,151 1,191,906,073 1,066,502,811 146,110,286Operating costs and expensesOperating costs (154,556,991) (139,910,728) (19,167,691) (598,841,951) (593,798,806) (81,350,103)Selling and marketing expenses (8,318,853) (13,451,271) (1,842,817) (47,434,683) (55,028,196) (7,538,832)General and administrative (49,670,060) (39,695,498) (5,438,261) (166,861,387) (156,401,775) (21,426,955)expensesOther operating expenses (3,429,367) (2,635,870) (361,113) (4,453,446) (4,937,315) (676,409)Impairment loss of goodwill – – – – -Other general expenses (36,260,493) (30,012,799) (4,111,737) (63,556,586) (41,769,330) (5,722,375)Total operating costs and (252,235,764) (225,706,166) (30,921,619) (881,148,053) (851,935,422) (116,714,674)expensesOther operating income 9,937,407 11,644,397 1,595,276 24,525,333 56,818,174 7,784,058Income from operations 47,351,133 26,108,201 3,576,808 335,283,353 271,385,563 37,179,670Interest income and other, net 10,653,312 12,606,174 1,727,039 41,240,610 39,982,179 5,477,536Interest expense (2,809,528) (1,825,243) (250,057) (13,706,157) (6,310,152) (864,487)Gains (losses) from investment (943,283) (9,544,253) (1,307,557) (5,378,104) (10,314,000) (1,413,012)in equity securitiesOther income, net (20,170,894) 34,321,711 4,702,055 22,676,046 16,383,657 2,244,552Income before income taxes 34,080,740 61,666,590 8,448,288 380,115,748 311,127,247 42,624,259Income tax expense (25,505,616) (32,610,806) (4,467,662) (113,125,742) (107,223,277) (14,689,529)Income (loss) before share of 8,575,124 29,055,784 3,980,626 266,990,006 203,903,970 27,934,730gains in equity investeesShare of loss/(income) in equity (522,092) (700,781) (96,007) (1,392,002) (1,165,474) (159,669)investees, net of taxNet income(loss) 8,053,032 28,355,003 3,884,619 265,598,004 202,738,496 27,775,061
GreenTree Hospitality Group Ltd.Unaudited Condensed Restaurant Statements of Comprehensive Income Quarter Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$RevenuesLeased-and-operated revenues 48,191,718 28,534,041 3,909,148 296,890,282 159,326,153 21,827,594Franchised-and-managed 1,687,913 4,759,771 652,086 8,923,712 10,287,457 1,409,376revenuesWholesales and others 37,843,179 31,759,229 4,350,996 135,821,972 109,031,616 14,937,270Total revenues 87,722,810 65,053,041 8,912,230 441,635,966 278,645,226 38,174,240Operating costs andexpensesOperating costs (66,896,044) (59,854,076) (8,199,975) (359,018,687) (230,496,349) (31,577,870)Selling and marketing (2,821,243) (4,083,785) (559,476) (24,232,973) (12,556,863) (1,720,283)expensesGeneral and administrative (8,374,981) (3,347,191) (458,563) (41,572,291) (26,149,319) (3,582,442)expensesOther operating expenses (139,799) (16,422) (2,250) (7,251,107) (2,153,148) (294,980)Impairment loss of goodwill – (81,008,000) (11,098,050) – (81,008,000) (11,098,050)Other general expenses (16,027,000) (39,072,000) (5,352,842) (16,027,000) (39,072,000) (5,352,842)Total operating costs and (94,259,067) (187,381,474) (25,671,156) (448,102,058) (391,435,679) (53,626,467)expensesOther operating income 1,425,555 1,254,420 171,855 2,644,568 3,329,384 456,124Income from operations (5,110,702) (121,074,013) (16,587,071) (3,821,524) (109,461,069) (14,996,103)Interest income and other, net (323,539) 27,361 3,748 130,552 89,889 12,315Interest expense 1,892,708 310 42 (347,684) – -Gains (losses) from investment – – – – – -in equity securitiesOther income, net 28,362 14,450 1,980 107,668 (18,672) (2,558)Income before income taxes (3,513,171) (121,031,894) (16,581,301) (3,930,988) (109,389,852) (14,986,346)Income tax expense 564,230 19,852,781 2,719,820 (4,279,739) 18,496,308 2,533,984Income (loss) before share of (2,948,941) (101,179,113) (13,861,481) (8,210,727) (90,893,544) (12,452,362)gains in equity investeesShare of loss/(income) in equity – – – – – -investees, net of taxNet income(loss) (2,948,941) (101,179,113) (13,861,481) (8,210,727) (90,893,544) (12,452,362)
GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements Quarter Ended Quarter Ended Quarter Ended Quarter Ended December 31, December 31, December 31, December 31, 2023 2023 2023 2023 Hotel Restaurant Elimination Total RMB RMB RMB RMBRevenuesLeased-and-operated 125,521,090 48,191,718 1,075,555 174,788,363revenuesFranchised-and-managed 162,861,219 1,687,913 – 164,549,132revenuesWholesales and others 1,267,181 37,843,179 (6,284,349) 32,826,011Total revenues 289,649,490 87,722,810 (5,208,794) 372,163,506Operating costs andexpensesOperating costs (154,556,991) (66,896,044) 9,861,359 (211,591,676)Selling and marketing (8,318,853) (2,821,243) 49,623 (11,090,473)expensesGeneral and administrative (49,670,060) (8,374,981) – (58,045,041)expensesOther operating expenses (3,429,367) (139,799) – (3,569,166)Impairment loss of goodwill – – – -Other general expenses (36,260,493) (16,027,000) – (52,287,493)Total operating costs and (252,235,764) (94,259,067) 9,910,982 (336,583,849)expensesOther operating income 9,937,407 1,425,555 – 11,362,962Income from operations 47,351,133 (5,110,702) 4,702,188 46,942,619
GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements Quarter Ended Quarter Ended Quarter Ended Quarter Ended December 31, December 31, December 31, December 31, 2024 2024 2024 2024 Hotel Restaurant Elimination Total RMB RMB RMB RMBRevenuesLeased-and-operated 90,969,160 28,534,041 (207,412) 119,295,789revenuesFranchised-and-managed 148,174,447 4,759,771 – 152,934,218revenuesWholesales and others 1,026,363 31,759,229 (495,936) 32,289,656Total revenues 240,169,970 65,053,041 (703,348) 304,519,663Operating costs andexpensesOperating costs (139,910,728) (59,854,076) 791,324 (198,973,480)Selling and marketing (13,451,271) (4,083,785) (87,975) (17,623,031)expensesGeneral and administrative (39,695,498) (3,347,191) – (43,042,689)expensesOther operating expenses (2,635,870) (16,422) – (2,652,292)Impairment loss of goodwill – (81,008,000) – (81,008,000)Other general expenses (30,012,799) (39,072,000) – (69,084,799)Total operating costs and (225,706,166) (187,381,474) 703,349 (412,384,291)expensesOther operating income 11,644,397 1,254,420 – 12,898,817Income from operations 26,108,201 (121,074,012) – (94,965,811)
GreenTree Hospitality Group Ltd.Unaudited Condensed Consolidated Statements of Cash Flows Quarter Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$Operating activities:Net (loss) income 8,630,732 (72,824,109) (9,976,862) 260,527,599 107,314,353 14,702,006Adjustments to reconcile netincome to net Cash providedby operating activities:Depreciation and 24,382,512 26,575,903 3,640,884 116,870,237 115,746,538 15,857,211amortizationImpairment of long 53,686,449 51,672,000 7,079,035 56,586,449 51,672,000 7,079,035lived assetsImpairment of goodwill – 81,008,000 11,098,050 – 81,008,000 11,098,050Share of (gains) losses in – – – – – -equity method investmentsNoncash lease expense 77,037,857 58,283,373 7,984,789 271,156,173 263,911,503 36,155,728Loss from disposal of a – – – 1,223,952 (488,227) (66,887)subsidiaryInterest income – – – – – – -Bad debt expenses 1,828,945 21,857,669 2,994,488 38,858,275 56,241,392 7,705,039Losses and impairment 2,563,283 9,544,253 1,307,557 6,998,104 14,953,679 2,048,646(Gains) on equity securitiesheld(Gains) losses on disposal of 1,928,976 (555,551) (76,110) 2,166,990 (25,338,789) (3,471,400)property and equipmentForeign exchange (gains) (103,025) (26,182,753) (3,587,022) (372,187) (27,497,301) (3,767,115)lossesShare-based compensation – – – – – -Other non-cash (1,757,475) 7,070,827 968,699 (4,554,719) 1,166,397 159,796expense/(income)Accounts receivable 8,157,413 9,076,784 1,243,514 (5,359,275) (4,015,520) (550,124)Prepaid rent 129,472 – – – – -Inventories (3,323,226) (493,764) (67,645) 4,764,959 14,618,912 2,002,783Amounts due from related 2,812,979 (3,904,741) (534,947) 8,372,296 (1,416,495) (194,059)partiesOther current assets (7,784,142) (1,821,998) (249,613) (47,920,887) (3,067,256) (420,212)Other assets 9,361,100 5,200,506 712,466 17,250,340 3,725,971 510,456Accounts payable (21,402,358) 17,296,435 2,369,602 (50,451,092) (3,021,869) (413,994)Amounts due to related parties (8,780,746) 1,767,567 242,156 (5,406,910) 1,151,882 157,807Salary and welfare payable (8,040,537) 3,672,156 503,083 (3,010,962) (7,916,485) (1,084,554)Deferred revenue (8,986,356) (28,977,865) (3,969,951) (33,539,045) (42,787,510) (5,861,865)Advance from customers (4,898,186) 4,428,730 606,734 (3,211,266) 3,305,355 452,832Accrued expenses and other (62,218,027) (29,307,543) (4,015,117) 26,174,963 3,161,614 433,139current liabilitiesIncome tax payable (17,782,317) (34,457,583) (4,720,670) 32,861,850 (23,195,720) (3,177,801)Unrecognized tax benefits (14,960,256) 68,986,879 9,451,164 28,569,943 57,946,428 7,938,628Operating lease liabilities (76,990,749) (57,896,801) (7,931,829) (256,017,527) (247,702,691) (33,935,130)Other long-term liabilities 3,175,965 3,262,911 447,017 (5,065,347) 1,264,213 173,196Deferred taxes 29,820,352 (39,040,264) (5,348,494) (2,423,339) (17,362,607) (2,378,667)Net cash provided by (13,511,365) 74,241,021 10,170,978 455,049,574 373,377,767 51,152,544operating activitiesInvesting activities:Purchases of property and (15,197,120) (50,616,409) (6,934,420) (87,764,045) (79,582,039) (10,902,695)equipmentPurchases of intangible (573,808) (37,057) (5,077) (740,406) (37,057) (5,077)assetsProceeds from disposal of (11,715,110) (283,895) (38,893) 2,951,611 139,900,865 19,166,340property and equipmentPayment for acquisition of – – – – – -minority equityPurchases of a long-term – (3,600,000) (493,198) – (10,400,000) (1,424,794)investmentRepayment of Advances for – – – – – -acquisitionsPurchases of short-term (60,449,565) – – (262,680,045) – -investmentsProceeds from short-term 6,154,723 (1,660,895) (227,542) 167,009,370 417,701,142 57,224,822investmentsIncrease of long-term time (63,340,000) – – (63,340,000) (222,230,000) (30,445,385)depositsPurchases of investments in – – – – – -equity securitiesProceeds from disposal of – 21,812,329 2,988,277 – 21,812,329 2,988,277equity securitiesProceeds from disposal of – – – 37,800,000 2,807,500 384,626subsidiariesLoan to related parties – (588,000) (80,556) – (858,000) (117,546)Repayment from related parties – 363,347 49,778 – 363,347 49,778Loan to third parties – 1,200,000 164,399 – – -Repayment of loan from third – – – 14,553,007 5,900,000 808,297partiesLoan to franchisees (6,609,495) (8,673,811) (1,188,306) (22,643,074) (14,323,812) (1,962,354)Repayment from franchisees 24,896,351 16,870,520 2,311,252 121,145,169 84,337,321 11,554,165Net cash (used in) provided (126,834,024) (25,213,871) (3,454,286) (93,708,413) 345,391,596 47,318,454by investing activitiesFinancing activities:Distribution to the – (70,176,000) (9,614,073) – (70,936,321) (9,718,236)shareholdersRepurchase of ordinary (19,706,775) (65,162) (8,927) (19,706,775) (365,284) (50,044)sharesLoan from non controlling 272,500.00 – – 272,500.00 – -interestRepayment of short-term (7,700,000) (200,000) (27,400) (458,300,000) (117,200,000) (16,056,334)borrowingsProceeds from bank loans 57,000,000 – – 174,000,000 200,000,000 27,399,888Capital contribution from – – – – (966,000) (132,341)noncontrolling interestholdersNet cash used in financing 29,865,725 (70,441,162) (9,650,400) (303,734,275) 10,532,395 1,442,933activitiesEffect of exchange rate 84,902 6,957,333 953,151 32,095 4,299,468 589,025changes on cash and cashequivalents and restrictedcashNet increase in cash, cash (110,394,762) (14,456,679) (1,980,557) 57,638,981 733,601,226 100,502,956equivalents and restrictedcashCash, cash equivalents and 901,995,474 1,539,658,617 210,932,366 733,961,731 791,600,712 108,448,853restricted cash at thebeginning of the yearCash, cash equivalents and 791,600,712 1,525,201,938 208,951,809 791,600,712 1,525,201,938 208,951,809restricted cash at the endof the year
GreenTree Hospitality Group Ltd.Unaudited Reconciliation of GAAP and Non-GAAP Results Quarter Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$Net income 8,630,731 (72,824,109) (9,976,862) 260,527,599 107,314,353 14,702,006Deduct:Other operating 11,362,962 12,898,817 1,767,131 27,169,901 60,147,558 8,240,182incomeInterest income 10,329,773 12,633,535 1,730,787 41,371,162 40,072,068 5,489,851and other, netGains from – – – – – -investment inequity securitiesShare of gain in – – – – – -equity investees,net of taxOther income, net – 34,336,161 4,704,035 22,783,714 16,474,064 2,256,938Add:Other operating 3,569,166 2,652,292 363,363 11,704,553 7,090,463 971,389expensesImpairment loss – 81,008,000 11,098,050 – 81,008,000) 11,098,050of goodwillOther general 52,287,493 69,084,799 9,464,579 79,583,586 80,841,330) 11,075,217expensesIncome tax 26,116,933 12,758,025 1,747,842 118,452,255 88,726,969 12,155,545expenses(benefits)Share of loss in 522,092 700,781 96,007 1,392,002 1,165,474 159,669equity investees,net of taxInterest expenses 916,820 1,824,933 250,015 14,053,841 6,310,152 864,487Depreciation and 24,382,512 26,575,903 3,640,884 116,870,237 115,746,538 15,857,211amortizationLosses from 943,283 9,544,253 1,307,557 5,378,104 14,953,679 2,048,646investment inequity securitiesOther expense, 20,142,532 – – – – -netAdjusted 115,818,827 71,456,364 9,789,482 516,637,400 386,463,268 52,945,249EBITDA(Non-GAAP) Quarter Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$Net income 8,630,731 (72,824,109) (9,976,862) 260,527,599 107,314,353 14,702,006Deduct:Government 3,129,127 7,122,585 975,790 9,800,432 11,967,221 1,639,503subsidies (netof 25% tax)Gains from – – – – – -investment inequity securities(net of 25% tax)Other income (net – 25,752,121 3,528,026 17,087,786 12,355,548 1,692,703of 25% tax)Add:Share-based (16,594) (46,986) (6,437) – – -compensationLosses from 707,462 7,158,190 980,668 4,033,578 11,215,259 1,536,484investments inequity securities(net of 25% tax)Other expense 15,106,898 – – – – -(net of 25% tax)One-time fees 828,267 621,172 85,100 3,010,039 2,335,161 319,916and expensesImpairment loss – 81,008,000 11,098,050 – 81,008,000 11,098,050of goodwillOther general 52,287,493 69,084,799 9,464,579 79,583,586 80,841,330 11,075,217expensesIncome tax – 5,698,810 780,734 – 19,195,050 2,629,711expensesrelated todividenddistributionCore net income 74,415,129 57,825,169 7,922,016 320,266,584 277,586,384 38,029,179(Non-GAAP)Core net incomeper ADS(Non-GAAP)Class A ordinary 0.73 0.57 0.08 3.14 2.73 0.37share-basic anddilutedClass B ordinary 0.73 0.57 0.08 3.14 2.73 0.37share-basic anddiluted
Hotel Operational Data
December 31, December 31, 2023 2024Total hotels in operation: 4,238 4,425Leased and owned hotels 65 55Franchised hotels 4,173 4,370Total hotel rooms in operation 309,495 321,182Leased and owned hotels 7,318 6,624Franchised hotels 302,177 315,018Number of cities 360 352 Quarter Ended 2023 Q4 2024 Q4Occupancy rate (as a percentage)Leased-and-owned hotels 66.9% 65.5%Franchised hotels 72.5% 68.6%Blended 72.4% 68.6%Average daily rate (in RMB)Leased-and-owned hotels 241 241Franchised hotels 175 167Blended 177 169RevPAR (in RMB)Leased-and-owned hotels 161 158Franchised hotels 127 115Blended 128 116
Number of Hotels in Operation Number of Hotel Rooms in Operation December 31, December 31, December 31, December 31, 2023 2024 2023 2024Mid-to-up-scale 474 553 45,488 51,649GreenTree Eastern 222 239 24,377 25,683Deepsleep Hotel 7 8 534 610Gem 71 105 6,292 9,386,Gya 71 74 5,899 6,155Vx 92 105 8,041 9,093others 11 22 345 722Mid-scale 2,975 2,978 230,100 230,298GreenTree Inn 2,220 2,340 179,631 183,439GT Alliance 568 505 40,134 37,631GreenTree Apartment 20 24 1,308 1,545Vatica 110 109 7,805 7,683Economy hotels 789 894 33,907 39,335Shell 789 894 33,907 39,335Total 4,238 4,425 309,495 321,282
Restaurant Operational Data
December 31, December 31, 2023 2024Total restaurantsin operation: 194 182Leased and owned restaurants 42 18Franchised restaurants 152 164Number of cities 65 53Da Niang Dumplings 162 161Bellagio 32 21Total restaurantsin operation: 194 182 Quarter Ended 2023 Q4 2024 Q4ADTLeased-and-owned restaurants 141 186Franchised restaurants 84 78Blended 99 93AC (in RMB)Leased-and-owned restaurants 89 99Franchised restaurants 37 33Blended 51 46ADS (in RMB)Leased-and-owned restaurants 12,501 18,384Franchised restaurants 3,127 2,605Blended 5,090 4,234
For more information, please contact:
GreenTreeMs. Selina YangPhone: +86-158-2166-6251E-mail:ir@998.com
Mr. Maple MiaoPhone: +86-181-0184-0639E-mail:ir@998.com
Christensen
In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail:jerry.xu@christensencomms.com
In Hong KongMs. Karen HuiPhone: +852-9266-4140 E-mail:karen.hui@christensencomms.com
In the US Ms. Linda BergkampPhone: +1-480-614-3004E-mail:linda.bergkamp@christensencomms.com
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SOURCE GreenTree Hospitality Group Ltd.
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