Total revenues decreased by 18.2% year over year to RMB304.5 million (US$41.7 million)[1].
Net income was RMB-72.8million (US$-10.0 million)[1] compared to RMB8.6 million for the fourth quarter of 2023.
Adjusted net income[2] was RMB77.3 million (US$10.6 million)[1] compared to RMB60.9 million for the fourth quarter of 2023.
Cash from operations increased year over year to RMB74.2 million (US$10.2 million)[1].
SHANGHAI, April 24, 2025 /PRNewswire/ — GreenTree Hospitality Group Ltd. (NYSE: GHG) (“GreenTree”, the “Company”, “we”, “us” and “our”), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2024. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of GreenTree Inns Hotel Management Group, 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 of 2024 Operational 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, or RevPAR, 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.
The ADT (average daily tickets) was 93, down from 99 in the fourth quarter 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 business，impairment 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,
2023
December 31,
2023
December 31,
2023
December 31,
2023
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Revenues
Leased-and-operated
revenues
125,521,090
48,191,718
1,075,555
174,788,363
Franchised-and-managed
revenues
162,861,219
1,687,913
–
164,549,132
Wholesales and others
1,267,181
37,843,179
(6,284,349)
32,826,011
Total revenues
289,649,490
87,722,810
(5,208,794)
372,163,506
Quarter Ended
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Revenues
Leased-and-operated
revenues
90,969,160
28,534,041
(207,412)
119,295,789
16,343,456
Franchised-and-managed
revenues
148,174,447
4,759,771
–
152,934,218
20,951,902
Wholesales and others
1,026,363
31,759,229
(495,936)
32,289,656
4,423,665
Total revenues
240,169,970
65,053,041
(703,348)
304,519,663
41,719,023
2024 Financial Results
Year Ended
December 31,
2023
December 31,
2023
December 31,
2023
December 31,
2023
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Revenues
Leased-and-operated
revenues
490,924,060
296,890,282
–
787,814,342
Franchised-and-managed
revenues
696,321,236
8,923,712
–
705,244,948
Wholesales and others
4,660,777
135,821,972
(6,284,350)
134,198,399
Total revenues
1,191,906,073
441,635,966
(6,284,350)
1,627,257,689
Year Ended
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Revenues
Leased-and-operated
revenues
437,521,898
159,326,153
(207,411)
596,640,640
81,739,433
Franchised-and-managed
revenues
625,072,856
10,287,457
–
635,360,313
87,044,006
Wholesales and others
3,908,057
109,031,616
(1,500,428)
111,439,245
15,267,114
Total revenues
1,066,502,811
278,645,226
(1,707,839)
1,343,440,198
184,050,553
Total revenues were RMB304.5 million (US$41.7 million)[1]，a 18.2% year-over-year decrease.
Hotel revenues were RMB240.2 million (US$32.9 million)[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 RMB65.1 million (US$8.9 million)[1], a 25.8% year-over-year decrease. The decrease was mainly due to the closure of L&O stores, and a 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, hotels and restaurants were RMB119.3 million (US$16.3 million)[1], a 31.7% year-over-year decrease.
Total revenues from L&O hotels were RMB91.0 million (US$12.5 million)[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 RMB28.5 million (US$3.9 million)[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 RMB596.6 million (US$81.7 million)[1], a 24.3% year-over-year decrease.
Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB152.9 million (US$21.0 million)[1], a 7.1% year-over-year decrease.
Total revenues from F&M hotels were RMB148.2 million (US$20.3 million)[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 restaurants were RMB4.8 million (US$0.7 million)[1], a 182.0% year-over-year increase. The increase was mainly due to the opening of 39 F&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 others were 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$15.3 million)[1], a 17.0% year-over-year decrease.
Total operating costs and expenses
Quarter Ended
December 31,
2023
December 31,
2023
December 31,
2023
December 31,
2023
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Operating costs and expenses
Operating costs
154,556,991
66,896,044
(9,861,359)
211,591,676
Selling and marketing expenses
8,318,853
2,821,243
(49,623)
11,090,473
General and administrative expenses
49,670,060
8,374,981
–
58,045,041
Other operating expenses
3,429,367
139,799
–
3,569,166
Impairment loss of goodwill
–
–
–
–
Other general expenses
36,260,493
16,027,000
–
52,287,493
Total operating costs and expenses
252,235,764
94,259,067
(9,910,982)
336,583,849
Quarter Ended
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Operating costs and expenses
Operating costs
139,910,728
59,854,076
(791,324)
198,973,480
27,259,255
Selling and marketing expenses
13,451,271
4,083,785
87,975
17,623,031
2,414,345
General and administrative expenses
39,695,498
3,347,191
–
43,042,689
5,896,824
Other operating expenses
2,635,870
16,422
–
2,652,292
363,363
Impairment loss of goodwill
81,008,000
81,008,000
11,098,050
Other general expenses
30,012,799
39,072,000
–
69,084,799
9,464,579
Total operating costs and expenses
225,706,166
187,381,474
(703,349)
412,384,291
56,496,416
Year Ended
December 31,
2023
December 31,
2023
December 31,
2023
December 31,
2023
RMB
RMB
RMB
RMB
Hotel
Restaurant
Elimination
Total
Operating costs and expenses
Operating costs
598,841,951
359,018,687
(10,421,824)
947,438,814
Selling and marketing expenses
47,434,683
24,232,973
(49,623)
71,618,033
General and administrative expenses
166,861,387
41,572,291
–
208,433,678
Other operating expenses
4,453,446
7,251,107
–
11,704,553
Impairment loss of goodwill
–
–
–
–
Other general expenses
63,556,586
16,027,000
–
79,583,586
Total operating costs and expenses
881,148,053
448,102,058
(10,471,447)
1,318,778,664
Year Ended
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
December 31,
2024
RMB
RMB
RMB
RMB
US$
Hotel
Restaurant
Elimination
Total
Total
Operating costs and expenses
Operating costs
593,798,806
230,496,349
(1,707,841)
822,587,314
112,694,000
Selling and marketing expenses
55,028,196
12,556,863
–
67,585,059
9,259,115
General and administrative expenses
156,401,775
26,149,319
–
182,551,094
25,009,397
Other operating expenses
4,937,315
2,153,148
–
7,090,463
971,389
Impairment loss of goodwill
–
81,008,000
–
81,008,000
11,098,050
Other general expenses
41,769,330
39,072,000
–
80,841,330
11,075,217
Total operating costs and
expenses
851,935,422
391,435,679
(1,707,841)
1,241,663,260
170,107,169
Operating costs were RMB199.0 million (US$ 27.3 million)[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 expenses were 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 expenses were 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$25.0 million)[1], a 12.4% year-over-year decrease.
Impairment loss of goodwill were RMB81.0million (US$11.1 million)[1], These expenses were impairment of goodwill related to the restaurant business.
Other general expenses were RMB69.1million (US$9.5 million)[1], a 32.1% year-over-year increase. These expenses include impairment of trademarks related to the restaurant business, impairment of assets, and provisions for franchisee loans receivables related to franchisee loans.
Gross profit was RMB105.5 million (US$14.5 million)[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 RMB100.3 million (US$13.7 million)[1], an 25.8% year-over-year decrease. The gross profit of the restaurant business was RMB5.2 million (US$0.7 million)[1], a 75.0% year-over-year decrease. Gross profit for the year was RMB520.9 million (US$71.4 million) [1], a 23.4% year-over-year decrease.
Income from operations was RMB-95.0 million (US$-13.0 million)[1] ,compared to income from operations of RMB46.9million in the fourth quarter of 2023, with a margin of -31.2%. Excluding impairment loss of goodwill and other general expenses, income from operations was RMB55.1 million(US$7.6million) with a margin of 18.1%.
Income from operations of the hotel business was RMB26.1 million (US$3.6 million)[1], compared to an income from operations of RMB47.4 million in the fourth quarter of 2023, with a margin of10.9%. Excluding other general expenses, income from operations of the hotel business was RMB56.1 million (US$7.7 million), a decrease of 32.9%, with a margin of 23.4%.
Loss from operations of the restaurant business was RMB121.1 million (US$16.6 million)[1], compared to loss from operations of RMB5.1 million in the fourth quarter of 2023, with a margin of -186.1%. Excluding impairment loss of goodwill and other general expenses, loss from operations of the restaurant business was RMB1.0 million(US$0.1million) with a margin of -1.5%.
Income from operations for the year was RMB161.9 million (US$22.2 million) [1] compared to income from operations of RMB335.6 million in 2023, with a margin of 12.1%.
Net income was RMB-72.8million (US$-10.0 million)[1], compared to a net income of RMB8.6 million in the fourth quarter of 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 to RMB77.3 million(US$10.6 million) [1] with a margin of 25.4%.
Net income of the hotel business was RMB28.4 million (US$3.9 million)[1], compared to a net income of RMB8.1 million in the fourth quarter of 2023, and net margin was 11.8%. Excluding other general expenses, adjusted net income of the hotel business increased 31.7% to RMB58.4 million (US$8.0 million)[1] with a margin of 24.3%.
Net loss of the restaurant business was RMB101.2million (US$13.9million)[1], compared to a net loss of RMB2.9million in the fourth quarter of 2023, and net margin was -155.5%. Excluding the impairment of trademarks and goodwill, adjusted net income of the restaurant business was RMB18.9 million(US$2.6 million)[1] with a margin of 29.1%.
Net income for the year was RMB107.3 million (US$14.7 million)[1] compared to net income of RMB260.5 million in 2023, with a margin of 8.0%. Excluding the impairment of goodwill due to the restaurant business and other general expenses, adjusted net income decreased 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 decrease of 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 decrease of 25.2%.
Core net income (non-GAAP) was RMB57.8million (US$7.9 million)[1], a year-over-year decrease of 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$38.0 million)[1], a year-over-year decrease of 13.3%.
Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB-0.70(US$-0.10 )[1], down from RMB0.12 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.57 (US$0.08 )[1], down from RMB0.73 a year ago.
Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)[1], increaed from RMB 0.10 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) for the hotel business 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 RMB3.14 a 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 their 2024 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 on April 24, 2025).
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 May 1, 2025.
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:
2742742
Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.
Use of Non-GAAP Financial Measures
We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.
The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.
The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.
Reconciliations of the Company’s non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. (“GreenTree” or the “Company”) (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of December 31, 2024, GreenTree had a total number of 4,425 hotels 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 visit http://ir.998.com
Safe Harbor Statements
This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” “confident,” “future,” or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree’s current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree’s goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.
Financial Tables and Operational Data Follow
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Balance Sheets
December 31,
December 31,
December 31,
2023
2024
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
765,547,547
1,490,235,562
204,161,435
Restricted cash
6,576,906
16,096,476
2,205,208
Short-term investments
417,711,617
10,475
1,435
Investments in equity securities
26,076,169
–
–
Accounts receivable, net of
allowance
123,887,879
99,688,034
13,657,205
Amounts due from related parties
19,928,781
21,839,929
2,992,058
Prepaid rent
–
–
–
Inventories
20,462,490
6,881,470
942,758
Other current assets
117,047,122
114,898,590
15,741,042
Loans receivable, net
129,521,094
85,463,467
11,708,447
Deferred tax assets
–
–
–
Total current assets
1,626,759,605
1,835,114,003
251,409,588
Non-current assets:
Amounts due from a related party
110,000,000
110,000,000
15,069,938
Restricted cash
19,476,259
18,869,900
2,585,166
Long-term time deposits
63,340,000
285,570,000
39,122,930
Loans receivable, net
70,690,305
15,372,238
2,105,988
Property and equipment, net
814,949,026
649,528,210
88,985,000
Intangible assets, net
117,720,693
75,677,551
10,367,782
Goodwill
177,082,468
96,074,468
13,162,148
Long-term investments
184,758,800
184,024,217
25,211,214
Operating lease right-of-use assets
1,535,330,762
1,328,582,419
182,015,045
Other assets
104,725,600
102,545,848
14,048,724
Deferred tax assets
241,965,360
245,760,095
33,668,995
TOTAL ASSETS
5,066,798,878
4,947,118,949
677,752,518
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion
200,000
–
–
Short-term bank loans
116,800,000
400,000
54,800
Accounts payable
73,126,677
56,488,405
7,738,880
Advance from customers
22,393,097
25,684,437
3,518,753
Amounts due to related parties
16,310,293
17,462,176
2,392,308
Salary and welfare payable
86,332,096
78,234,585
10,718,094
Deferred rent
–
–
–
Deferred revenue
186,281,838
175,046,178
23,981,228
Accrued expenses and other current
liabilities
459,832,717
481,910,291
66,021,439
Income tax payable
112,782,712
88,876,497
12,176,030
Dividends payable
–
–
–
Operating lease liabilities, current
267,536,846
241,363,244
33,066,629
Deferred tax liabilities
–
–
–
Total current liabilities
1,341,596,276
1,165,465,813
159,668,161
Long-term bank loans
56,800,000
256,200,000
35,099,256
Deferred rent
–
–
–
Deferred revenue
207,905,769
176,353,919
24,160,388
Other long-term liabilities
111,711,748
120,975,955
16,573,638
Operating lease liabilities,
non-current
1,391,909,309
1,215,776,075
166,560,639
Deferred tax liabilities
94,716,495
79,670,908
10,914,870
Unrecognized tax benefits
382,125,786
440,072,214
60,289,646
Total liabilities
3,586,765,383
3,454,514,884
473,266,598
Shareholders’ equity:
Class A ordinary shares
222,587,070
222,587,070
30,494,304
Class B ordinary shares
115,534,210
115,534,210
15,828,122
Paid-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
230,179,370
Retained earnings (Accumulated
losses)
(568,339,799)
(528,513,571)
(72,406,062)
Accumulated other comprehensive
income
28,401,282
6,033,263
826,554
Total GreenTree Hospitality Group
Ltd. shareholders’ equity
1,442,218,280
1,458,746,128
199,847,402
Non-controlling interests
37,815,215
33,857,937
4,638,518
Total shareholders’ equity
1,480,033,495
1,492,604,065
204,485,920
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
5,066,798,878
4,947,118,949
677,752,518
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
Quarter Ended
Year Ended
December 31,
2023
December 31,
2024
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2024
RMB
RMB
US$
RMB
RMB
US$
Revenues
Leased-and-operated
revenues
174,788,363
119,295,789
16,343,456
787,814,342
596,640,640
81,739,433
Franchised-and-managed
revenues
164,549,132
152,934,218
20,951,902
705,244,948
635,360,313
87,044,006
Wholesales and others
32,826,011
32,289,656
4,423,665
134,198,399
111,439,245
15,267,114
Total revenues
372,163,506
304,519,663
41,719,023
1,627,257,689
1,343,440,198
184,050,553
Operating costs and
expenses
Operating costs
(211,591,676)
(198,973,480)
(27,259,255)
(947,438,814)
(822,587,314)
(112,694,000)
Selling and marketing
expenses
(11,090,473)
(17,623,031)
(2,414,345)
(71,618,033)
(67,585,059)
(9,259,115)
General and
administrative expenses
(58,045,041)
(43,042,689)
(5,896,824)
(208,433,678)
(182,551,094)
(25,009,397)
Other operating expenses
(3,569,166)
(2,652,292)
(363,363)
(11,704,553)
(7,090,463)
(971,389)
Impairment loss of
goodwill
–
(81,008,000)
(11,098,050)
–
(81,008,000)
(11,098,050)
Other general expenses
(52,287,493)
(69,084,799)
(9,464,579)
(79,583,586)
(80,841,330)
(11,075,217)
Total operating costs
and expenses
(336,583,849)
(412,384,291)
(56,496,416)
(1,318,778,664)
(1,241,663,260)
(170,107,169)
Other operating income
11,362,962
12,898,817
1,767,131
27,169,901
60,147,558
8,240,182
Income from operations
46,942,619
(94,965,811)
(13,010,262)
335,648,926
161,924,496
22,183,565
Interest income and
other, net
10,329,773
12,633,535
1,730,787
41,371,162
40,072,068
5,489,851
Interest expense
(916,820)
(1,824,933)
(250,015)
(14,053,841)
(6,310,152)
(864,487)
Gains (losses) from
investment in equity
securities
(943,283)
(9,544,253)
(1,307,557)
(5,378,104)
(14,953,679)
(2,048,646)
Other income, net
(20,142,532)
34,336,161
4,704,035
22,783,714
16,474,064
2,256,938
Income before income
taxes
35,269,757
(59,365,301)
(8,133,012)
380,371,857
197,206,797
27,017,221
Income tax expense
(26,116,933)
(12,758,025)
(1,747,842)
(118,452,255)
(88,726,969)
(12,155,545)
Income (loss) before
share of gains in equity
investees
9,152,824
(72,123,326)
(9,880,854)
261,919,602
108,479,828
14,861,676
Share of loss/(income) in
equity investees, net of
tax
(522,092)
(700,781)
(96,007)
(1,392,002)
(1,165,474)
(159,669)
Net income(loss)
8,630,732
(72,824,107)
(9,976,861)
260,527,600
107,314,354
14,702,007
Net loss/(income)
attributable to
non-controlling interests
3,484,240
1,368,731
187,515
8,788,708
2,687,878
368,238
Net income attributable
to ordinary
shareholders
12,114,972
(71,455,377)
(9,789,346)
269,316,308
110,002,232
15,070,245
Net earnings per share
Class A ordinary
share-basic and diluted
0.12
(0.70)
(0.10)
2.64
1.08
0.15
Class B ordinary
share-basic and diluted
0.12
(0.70)
(0.10)
2.64
1.08
0.15
Net earnings per ADS
Class A ordinary
share-basic and diluted
0.12
(0.70)
(0.10)
2.64
1.08
0.15
Class B ordinary
share-basic and diluted
0.12
(0.70)
(0.10)
2.64
1.08
0.15
Weighted average
shares outstanding
Class A ordinary
share-basic and diluted
67,038,968
66,765,032
9,146,772
67,321,003
66,776,243
9,148,308
Class B ordinary
share-basic and diluted
34,762,909
34,762,909
4,762,499
34,762,909
34,762,909
4,762,499
Other comprehensive
income, net of tax
Foreign currency
translation adjustments
(258,427)
(20,725,862)
(2,839,431)
669,178
(22,368,019)
(3,064,406)
Unrealized gains(loss) on
available-for-sale
investments, net of tax
Comprehensive
income, net of tax
8,372,305
(93,549,969)
(12,816,292)
261,196,778
84,946,335
11,637,601
Comprehensive
loss/(income) attributable
to non-controlling
interests
3,381,135
1,368,731
187,515
8,685,603
2,687,878
368,238
Comprehensive income
(loss) attributable to
ordinary shareholders
11,753,440
(92,181,238)
(12,628,777)
269,882,381
87,634,213
12,005,839
GreenTree Hospitality Group Ltd.
Unaudited Condensed Hotel Statements of Comprehensive Income
Quarter Ended
Year Ended
December 31,
2023
December 31,
2024
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2024
RMB
RMB
US$
RMB
RMB
US$
Revenues
Leased-and-operated revenues
125,521,090
90,969,160
12,462,724
490,924,060
437,521,898
59,940,254
Franchised-and-managed
revenues
162,861,219
148,174,447
20,299,816
696,321,236
625,072,856
85,634,630
Wholesales and others
1,267,181
1,026,363
140,611
4,660,777
3,908,057
535,402
Total revenues
289,649,490
240,169,970
32,903,151
1,191,906,073
1,066,502,811
146,110,286
Operating costs and expenses
Operating 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
expenses
(49,670,060)
(39,695,498)
(5,438,261)
(166,861,387)
(156,401,775)
(21,426,955)
Other 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
expenses
(252,235,764)
(225,706,166)
(30,921,619)
(881,148,053)
(851,935,422)
(116,714,674)
Other operating income
9,937,407
11,644,397
1,595,276
24,525,333
56,818,174
7,784,058
Income from operations
47,351,133
26,108,201
3,576,808
335,283,353
271,385,563
37,179,670
Interest income and other, net
10,653,312
12,606,174
1,727,039
41,240,610
39,982,179
5,477,536
Interest expense
(2,809,528)
(1,825,243)
(250,057)
(13,706,157)
(6,310,152)
(864,487)
Gains (losses) from investment
in equity securities
(943,283)
(9,544,253)
(1,307,557)
(5,378,104)
(10,314,000)
(1,413,012)
Other income, net
(20,170,894)
34,321,711
4,702,055
22,676,046
16,383,657
2,244,552
Income before income taxes
34,080,740
61,666,590
8,448,288
380,115,748
311,127,247
42,624,259
Income 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
gains in equity investees
8,575,124
29,055,784
3,980,626
266,990,006
203,903,970
27,934,730
Share of loss/(income) in equity
investees, net of tax
(522,092)
(700,781)
(96,007)
(1,392,002)
(1,165,474)
(159,669)
Net 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,
2023
December 31,
2024
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2024
RMB
RMB
US$
RMB
RMB
US$
Revenues
Leased-and-operated revenues
48,191,718
28,534,041
3,909,148
296,890,282
159,326,153
21,827,594
Franchised-and-managed
revenues
1,687,913
4,759,771
652,086
8,923,712
10,287,457
1,409,376
Wholesales and others
37,843,179
31,759,229
4,350,996
135,821,972
109,031,616
14,937,270
Total revenues
87,722,810
65,053,041
8,912,230
441,635,966
278,645,226
38,174,240
Operating costs and
expenses
Operating costs
(66,896,044)
(59,854,076)
(8,199,975)
(359,018,687)
(230,496,349)
(31,577,870)
Selling and marketing
expenses
(2,821,243)
(4,083,785)
(559,476)
(24,232,973)
(12,556,863)
(1,720,283)
General and administrative
expenses
(8,374,981)
(3,347,191)
(458,563)
(41,572,291)
(26,149,319)
(3,582,442)
Other 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
expenses
(94,259,067)
(187,381,474)
(25,671,156)
(448,102,058)
(391,435,679)
(53,626,467)
Other operating income
1,425,555
1,254,420
171,855
2,644,568
3,329,384
456,124
Income 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
12,315
Interest expense
1,892,708
310
42
(347,684)
–
–
Gains (losses) from investment
in equity securities
–
–
–
–
–
–
Other 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
2,533,984
Income (loss) before share of
gains in equity investees
(2,948,941)
(101,179,113)
(13,861,481)
(8,210,727)
(90,893,544)
(12,452,362)
Share of loss/(income) in equity
investees, net of tax
–
–
–
–
–
–
Net 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,
2023
December 31,
2023
December 31,
2023
December 31,
2023
Hotel
Restaurant
Elimination
Total
RMB
RMB
RMB
RMB
Revenues
Leased-and-operated
revenues
125,521,090
48,191,718
1,075,555
174,788,363
Franchised-and-managed
revenues
162,861,219
1,687,913
–
164,549,132
Wholesales and others
1,267,181
37,843,179
(6,284,349)
32,826,011
Total revenues
289,649,490
87,722,810
(5,208,794)
372,163,506
Operating costs and
expenses
Operating costs
(154,556,991)
(66,896,044)
9,861,359
(211,591,676)
Selling and marketing
expenses
(8,318,853)
(2,821,243)
49,623
(11,090,473)
General and administrative
expenses
(49,670,060)
(8,374,981)
–
(58,045,041)
Other 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
expenses
(252,235,764)
(94,259,067)
9,910,982
(336,583,849)
Other operating income
9,937,407
1,425,555
–
11,362,962
Income 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,
2024
December 31,
2024
December 31,
2024
December 31,
2024
Hotel
Restaurant
Elimination
Total
RMB
RMB
RMB
RMB
Revenues
Leased-and-operated
revenues
90,969,160
28,534,041
(207,412)
119,295,789
Franchised-and-managed
revenues
148,174,447
4,759,771
–
152,934,218
Wholesales and others
1,026,363
31,759,229
(495,936)
32,289,656
Total revenues
240,169,970
65,053,041
(703,348)
304,519,663
Operating costs and
expenses
Operating costs
(139,910,728)
(59,854,076)
791,324
(198,973,480)
Selling and marketing
expenses
(13,451,271)
(4,083,785)
(87,975)
(17,623,031)
General and administrative
expenses
(39,695,498)
(3,347,191)
–
(43,042,689)
Other 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
expenses
(225,706,166)
(187,381,474)
703,349
(412,384,291)
Other operating income
11,644,397
1,254,420
–
12,898,817
Income 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,
2023
December 31,
2024
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
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
14,702,006
Adjustments to reconcile net
income to net Cash provided
by operating activities:
Depreciation and
amortization
24,382,512
26,575,903
3,640,884
116,870,237
115,746,538
15,857,211
Impairment of long
lived assets
53,686,449
51,672,000
7,079,035
56,586,449
51,672,000
7,079,035
Impairment of goodwill
–
81,008,000
11,098,050
–
81,008,000
11,098,050
Share of (gains) losses in
equity method investments
–
–
–
–
–
–
Noncash lease expense
77,037,857
58,283,373
7,984,789
271,156,173
263,911,503
36,155,728
Loss from disposal of a
subsidiary
–
–
–
1,223,952
(488,227)
(66,887)
Interest income
–
–
–
–
–
– –
Bad debt expenses
1,828,945
21,857,669
2,994,488
38,858,275
56,241,392
7,705,039
Losses and impairment
(Gains) on equity securities
held
2,563,283
9,544,253
1,307,557
6,998,104
14,953,679
2,048,646
(Gains) losses on disposal of
property and equipment
1,928,976
(555,551)
(76,110)
2,166,990
(25,338,789)
(3,471,400)
Foreign exchange (gains)
losses
(103,025)
(26,182,753)
(3,587,022)
(372,187)
(27,497,301)
(3,767,115)
Share-based compensation
–
–
–
–
–
–
Other non-cash
expense/(income)
(1,757,475)
7,070,827
968,699
(4,554,719)
1,166,397
159,796
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
2,002,783
Amounts due from related
parties
2,812,979
(3,904,741)
(534,947)
8,372,296
(1,416,495)
(194,059)
Other 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
510,456
Accounts 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
157,807
Salary 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
452,832
Accrued expenses and other
current liabilities
(62,218,027)
(29,307,543)
(4,015,117)
26,174,963
3,161,614
433,139
Income 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
7,938,628
Operating 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
173,196
Deferred taxes
29,820,352
(39,040,264)
(5,348,494)
(2,423,339)
(17,362,607)
(2,378,667)
Net cash provided by
operating activities
(13,511,365)
74,241,021
10,170,978
455,049,574
373,377,767
51,152,544
Investing activities:
Purchases of property and
equipment
(15,197,120)
(50,616,409)
(6,934,420)
(87,764,045)
(79,582,039)
(10,902,695)
Purchases of intangible
assets
(573,808)
(37,057)
(5,077)
(740,406)
(37,057)
(5,077)
Proceeds from disposal of
property and equipment
(11,715,110)
(283,895)
(38,893)
2,951,611
139,900,865
19,166,340
Payment for acquisition of
minority equity
–
–
–
–
–
–
Purchases of a long-term
investment
–
(3,600,000)
(493,198)
–
(10,400,000)
(1,424,794)
Repayment of Advances for
acquisitions
–
–
–
–
–
–
Purchases of short-term
investments
(60,449,565)
–
–
(262,680,045)
–
–
Proceeds from short-term
investments
6,154,723
(1,660,895)
(227,542)
167,009,370
417,701,142
57,224,822
Increase of long-term time
deposits
(63,340,000)
–
–
(63,340,000)
(222,230,000)
(30,445,385)
Purchases of investments in
equity securities
–
–
–
–
–
–
Proceeds from disposal of
equity securities
–
21,812,329
2,988,277
–
21,812,329
2,988,277
Proceeds from disposal of
subsidiaries
–
–
–
37,800,000
2,807,500
384,626
Loan to related parties
–
(588,000)
(80,556)
–
(858,000)
(117,546)
Repayment from related parties
–
363,347
49,778
–
363,347
49,778
Loan to third parties
–
1,200,000
164,399
–
–
–
Repayment of loan from third
parties
–
–
–
14,553,007
5,900,000
808,297
Loan 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
11,554,165
Net cash (used in) provided
by investing activities
(126,834,024)
(25,213,871)
(3,454,286)
(93,708,413)
345,391,596
47,318,454
Financing activities:
Distribution to the
shareholders
–
(70,176,000)
(9,614,073)
–
(70,936,321)
(9,718,236)
Repurchase of ordinary
shares
(19,706,775)
(65,162)
(8,927)
(19,706,775)
(365,284)
(50,044)
Loan from non controlling
interest
272,500.00
–
–
272,500.00
–
–
Repayment of short-term
borrowings
(7,700,000)
(200,000)
(27,400)
(458,300,000)
(117,200,000)
(16,056,334)
Proceeds from bank loans
57,000,000
–
–
174,000,000
200,000,000
27,399,888
Capital contribution from
noncontrolling interest
holders
–
–
–
–
(966,000)
(132,341)
Net cash used in financing
activities
29,865,725
(70,441,162)
(9,650,400)
(303,734,275)
10,532,395
1,442,933
Effect of exchange rate
changes on cash and cash
equivalents and restricted
cash
84,902
6,957,333
953,151
32,095
4,299,468
589,025
Net increase in cash, cash
equivalents and restricted
cash
(110,394,762)
(14,456,679)
(1,980,557)
57,638,981
733,601,226
100,502,956
Cash, cash equivalents and
restricted cash at the
beginning of the year
901,995,474
1,539,658,617
210,932,366
733,961,731
791,600,712
108,448,853
Cash, cash equivalents and
restricted cash at the end
of the year
791,600,712
1,525,201,938
208,951,809
791,600,712
1,525,201,938
208,951,809
GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results
Quarter Ended
Year Ended
December 31,
2023
December 31,
2024
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2024
RMB
RMB
US$
RMB
RMB
US$
Net income
8,630,731
(72,824,109)
(9,976,862)
260,527,599
107,314,353
14,702,006
Deduct:
Other operating
income
11,362,962
12,898,817
1,767,131
27,169,901
60,147,558
8,240,182
Interest income
and other, net
10,329,773
12,633,535
1,730,787
41,371,162
40,072,068
5,489,851
Gains from
investment in
equity securities
–
–
–
–
–
–
Share of gain in
equity investees,
net of tax
–
–
–
–
–
–
Other income, net
–
34,336,161
4,704,035
22,783,714
16,474,064
2,256,938
Add:
Other operating
expenses
3,569,166
2,652,292
363,363
11,704,553
7,090,463
971,389
Impairment loss
of goodwill
–
81,008,000
11,098,050
–
81,008,000)
11,098,050
Other general
expenses
52,287,493
69,084,799
9,464,579
79,583,586
80,841,330)
11,075,217
Income tax
expenses
(benefits)
26,116,933
12,758,025
1,747,842
118,452,255
88,726,969
12,155,545
Share of loss in
equity investees,
net of tax
522,092
700,781
96,007
1,392,002
1,165,474
159,669
Interest expenses
916,820
1,824,933
250,015
14,053,841
6,310,152
864,487
Depreciation and
amortization
24,382,512
26,575,903
3,640,884
116,870,237
115,746,538
15,857,211
Losses from
investment in
equity securities
943,283
9,544,253
1,307,557
5,378,104
14,953,679
2,048,646
Other expense,
net
20,142,532
–
–
–
–
–
Adjusted
EBITDA
(Non-GAAP)
115,818,827
71,456,364
9,789,482
516,637,400
386,463,268
52,945,249
Quarter Ended
Year Ended
December 31,
2023
December 31,
2024
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2024
RMB
RMB
US$
RMB
RMB
US$
Net income
8,630,731
(72,824,109)
(9,976,862)
260,527,599
107,314,353
14,702,006
Deduct:
Government
subsidies (net
of 25% tax)
3,129,127
7,122,585
975,790
9,800,432
11,967,221
1,639,503
Gains from
investment in
equity securities
(net of 25% tax)
–
–
–
–
–
–
Other income (net
of 25% tax)
–
25,752,121
3,528,026
17,087,786
12,355,548
1,692,703
Add:
Share-based
compensation
(16,594)
(46,986)
(6,437)
–
–
–
Losses from
investments in
equity securities
(net of 25% tax)
707,462
7,158,190
980,668
4,033,578
11,215,259
1,536,484
Other expense
(net of 25% tax)
15,106,898
–
–
–
–
–
One-time fees
and expenses
828,267
621,172
85,100
3,010,039
2,335,161
319,916
Impairment loss
of goodwill
–
81,008,000
11,098,050
–
81,008,000
11,098,050
Other general
expenses
52,287,493
69,084,799
9,464,579
79,583,586
80,841,330
11,075,217
Income tax
expenses
related to
dividend
distribution
–
5,698,810
780,734
–
19,195,050
2,629,711
Core net income
(Non-GAAP)
74,415,129
57,825,169
7,922,016
320,266,584
277,586,384
38,029,179
Core net income
per ADS
(Non-GAAP)
Class A ordinary
share-basic and
diluted
0.73
0.57
0.08
3.14
2.73
0.37
Class B ordinary
share-basic and
diluted
0.73
0.57
0.08
3.14
2.73
0.37
Hotel Operational Data
December 31,
2023
December 31,
2024
Total hotels in operation:
4,238
4,425
Leased and owned hotels
65
55
Franchised hotels
4,173
4,370
Total hotel rooms in operation
309,495
321,182
Leased and owned hotels
7,318
6,624
Franchised hotels
302,177
315,018
Number of cities
360
352
Quarter Ended
2023 Q4
2024 Q4
Occupancy 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
241
Franchised hotels
175
167
Blended
177
169
RevPAR (in RMB)
Leased-and-owned hotels
161
158
Franchised hotels
127
115
Blended
128
116
Number of Hotels in Operation
Number of Hotel Rooms in Operation
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2024
Mid-to-up-scale
474
553
45,488
51,649
GreenTree Eastern
222
239
24,377
25,683
Deepsleep Hotel
7
8
534
610
Gem
71
105
6,292
9,386,
Gya
71
74
5,899
6,155
Vx
92
105
8,041
9,093
others
11
22
345
722
Mid-scale
2,975
2,978
230,100
230,298
GreenTree Inn
2,220
2,340
179,631
183,439
GT Alliance
568
505
40,134
37,631
GreenTree Apartment
20
24
1,308
1,545
Vatica
110
109
7,805
7,683
Economy hotels
789
894
33,907
39,335
Shell
789
894
33,907
39,335
Total
4,238
4,425
309,495
321,282
Restaurant Operational Data
December 31,
2023
December 31,
2024
Total restaurants in operation:
194
182
Leased and owned restaurants
42
18
Franchised restaurants
152
164
Number of cities
65
53
Da Niang Dumplings
162
161
Bellagio
32
21
Total restaurants in operation:
194
182
Quarter Ended
2023 Q4
2024 Q4
ADT
Leased-and-owned restaurants
141
186
Franchised restaurants
84
78
Blended
99
93
AC (in RMB)
Leased-and-owned restaurants
89
99
Franchised restaurants
37
33
Blended
51
46
ADS (in RMB)
Leased-and-owned restaurants
12,501
18,384
Franchised restaurants
3,127
2,605
Blended
5,090
4,234
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