GreenTree Hospitality Group Ltd. Reports Third Quarter 2023 Financial Results
- Total revenues increased by 15.3% year over year to RMB460.9 million (US$63.2 million)[[1]].
- Income from operations was RMB137.8 million (US$18.9 million), compared to RMB3.7 million for the third quarter of 2022 .
- Net income was RMB117.4 million (US$16.1 million), compared to RMB-62.3 million for the third quarter of 2022.
- Adjusted EBITDA (non-GAAP)[[2]] increased by 215.0% year over year to RMB173.4 million (US$23.8 million)[1].
- Core net income (non-GAAP)[[3]] increased by 2625.6% year over year to RMB127.2 million (US$17.4 million)[1].
SHANGHAI, Nov. 22, 2023 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the third quarter of 2023. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of our founder, Alex S. Xu, until their acquisition by the Company, the Company accounted for the common-control acquisitions by using the pooling of interest 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.
Third Quarter of 2023 Operational Highlights
Hotels
- A total of 4,185 hotels with 307,010 hotel rooms were in operation as of September 30, 2023.
- The Company opened 130 hotels during the third quarter of 2023 and had a pipeline of 979 hotels contracted for or under development as of September 30, 2023.
- The average daily room rate was RMB192 in the third quarter of 2023, an increase of 14.2% from RMB168 in the third quarter of 2022.
- The occupancy rate was 81.2% in the third quarter of 2023, up from 71.1% in the third quarter of 2022.
- Revenue per available room, or RevPAR, was RMB156 in the third quarter of 2023, a 30.5% year-over-year increase.
Restaurants
- A total of 206 restaurants were in operation as of September 30, 2023.
- The AC (average check) was RMB55 in the third quarter of 2023, a 5.7% year-over-year increase.
- The ADT (average daily tickets) was 119 in the third quarter of 2023, up from 117 in the third quarter of 2022.
- The ADS (average daily sales per store) was RMB6,548 in the third quarter of 2023, an increase of 7.4% from RMB6,096 in the third quarter of 2022.
"We had a good third quarter with a sustained recovery in tourism and business. The recovery in the hospitality industry continued during the third quarter. RevPAR increased 30.5% year over year, reaching as high as 110.0% of the third quarter of 2019 level in July and August with a surge in the tourist numbers during the summer vacation. While the recovery of RevPAR slowed down gradually in September, it remained healthy. During the Mid-Autumn Festival and the National Day, we ushered in a new round of development and growth.
We continued to focus on improving the profitability of our restaurant business. To this effect, we further expanded the proportion of franchised-and-managed restaurants to 74.8% and the number of street stores to 60, and closed 10 unprofitable stores. In the third quarter of 2023, the ADS of restaurant business recovered to 107.4% of its third quarter of 2022 level.
"We are extremely appreciated for our team, franchisees, and partners for their hard work and supporting each other, which enabled our Group's stable development in the third quarter of 2023," said Mr. Alex S. Xu, Chairman and Chief Executive Officer of GreenTree.
Third Quarter of 2023 Financial Results
Quarter Ended | ||||
September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Revenues | ||||
Leased-and-operated revenues | 82,933,960 | 114,605,522 | 10,237 | 197,549,719 |
Franchised-and-managed revenues | 154,008,269 | 14,077,204 | - | 168,085,473 |
Wholesales and others | 4,491,130 | 29,617,936 | - | 34,109,066 |
Total revenues | 241,433,359 | 158,300,662 | 10,237 | 399,744,258 |
Quarter Ended | |||||
September 30, | September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Revenues | |||||
Leased-and-operated revenues | 151,839,044 | 80,358,490 | 49,623 | 232,247,157 | 31,832,121 |
Franchised-and-managed revenues | 186,043,016 | 17,153,919 | - | 203,196,935 | 27,850,457 |
Wholesales and others | 1,168,017 | 24,272,083 | - | 25,440,100 | 3,486,856 |
Total revenues | 339,050,077 | 121,784,492 | 49,623 | 460,884,192 | 63,169,434 |
Nine Months Ended | ||||
September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Revenues | ||||
Leased-and-operated revenues | 254,206,326 | 285,614,441 | (219,518) | 539,601,249 |
Franchised-and-managed revenues | 429,547,816 | 32,306,514 | - | 461,854,330 |
Wholesales and others | 15,055,917 | 91,902,165 | - | 106,958,082 |
Total revenues | 698,810,059 | 409,823,120 | (219,518) | 1,108,413,661 |
Nine Months Ended | |||||
September 30, | September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Revenues | |||||
Leased-and-operated revenues | 365,402,970 | 248,698,564 | (1,075,557) | 613,025,977 | 84,022,201 |
Franchised-and-managed revenues | 533,460,017 | 34,509,812 | 567,969,829 | 77,846,742 | |
Wholesales and others | 3,393,596 | 70,704,781 | 74,098,377 | 10,156,028 | |
Total revenues | 902,256,583 | 353,913,157 | (1,075,557) | 1,255,094,183 | 172,024,971 |
Total revenues were RMB460.9 million (US$63.2 million)，a 15.3% year-over-year increase.
Hotel revenues were RMB339.1 million (US$46.5 million), a 40.4% year-over-year increase. The increase was mainly attributable to the recovery in RevPAR and the increase in the number of hotels.
Restaurant revenues were RMB121.8 million (US$16.7 million), a 23.1% year-over-year decrease. The decrease was mainly due to the closure of 85 L&O stores over the past 12 months, and partially offset by an increase in ADS.
Total revenues for the first nine months of 2023 were RMB1,255.1 million (US$172.0 million)[1], representing a 13.2% year-over-year increase.
Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB232.2 million (US$31.8 million)[1], a 17.6% year-over-year increase.
Total revenues from L&O hotels were RMB151.8 million (US$20.8 million)[1], an 83.1% year-over-year increase. The increase was primarily attributable to a 38.4% year-over-year increase in the RevPAR of L&O hotels and one newly opened L&O hotel in the third quarter of 2023 as compared to the third quarter of 2022.
Total revenues from L&O restaurants were RMB80.4 million (US$11.0 million)[1], a 29.9% year-over-year decrease. The decrease was mainly due to the closure of 85 L&O stores over the past 12 months, and partially offset by an increase in ADS.
Total revenues from L&O hotels and restaurants for the nine months of 2023 were RMB613.0 million (US$84.0 million)[1], a 13.6% year-over-year increase.
Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB203.2 million (US$27.9 million), a 20.9% year-over-year increase.
Total revenues from F&M hotels were RMB186.0 million (US$25.5 million), a 20.8% year-over-year increase. The increase was mainly due to a 23.5% increase in F&M hotels' RevPAR and a net increase of 174 F&M hotels.
Total revenues from F&M restaurants were RMB17.2 million (US$2.4 million), a 21.9% year-over-year increase. The increase was mainly due to a net increase of 23 F&M restaurants.
Total revenues from F&M hotels and restaurants for the first nine months of 2023 were RMB568.0 million (US$77.8 million)[1], a 23.0% year-over-year decrease.
Total revenues from wholesale and others were RMB25.4 million (US$3.5 million), a 25.4% year-over-year decrease, mainly because of reduced business from supermarkets, partially offset by increased business through distributors. Total revenues from wholesale and others for the first nine months of 2023 were RMB74.1 million (US$10.2 million), a 30.7% year-over-year decrease.
Total operating costs and expenses
Quarter Ended | ||||
September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Operating costs and expenses | ||||
Operating costs | 142,631,811 | 122,529,299 | 10,237 | 265,171,347 |
Selling and marketing expenses | 11,435,030 | 18,148,390 | - | 29,583,420 |
General and administrative expenses | 54,276,339 | 17,734,454 | - | 72,010,793 |
Other operating expenses | 335,350 | 315,396 | - | 650,746 |
Other general expenses | 40,288,592 | - | - | 40,288,592 |
Total operating costs and expenses | 248,967,122 | 158,727,539 | 10,237 | 407,704,898 |
Quarter Ended | |||||
September 30, | September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Operating costs and expenses | |||||
Operating costs | 159,920,582 | 87,814,484 | 49,623 | 247,784,689 | 33,961,717 |
Selling and marketing expenses | 14,277,225 | 12,026,085 | 26,303,310 | 3,605,169 | |
General and administrative expenses | 26,655,780 | 11,858,500 | 38,514,280 | 5,278,821 | |
Other operating expenses | 180,515 | 120,654 | 301,169 | 41,279 | |
Other general expenses | 11,322,509 | - | 11,322,509 | 1,551,879 | |
Total operating costs and expenses | 212,356,611 | 111,819,723 | 49,623 | 324,225,957 | 44,438,865 |
Nine Months Ended | ||||
September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Operating costs and expenses | ||||
Operating costs | 450,381,839 | 357,441,041 | 299,842 | 808,122,722 |
Selling and marketing expenses | 30,287,636 | 27,865,825 | 58,153,461 | |
General and administrative expenses | 154,000,741 | 39,581,650 | 193,582,391 | |
Other operating expenses | 2,384,084 | 2,556,316 | 4,940,400 | |
Other general expenses | 530,908,302 | - | 530,908,302 | |
Total operating costs and expenses | 1,167,962,602 | 427,444,832 | 299,842 | 1,595,707,276 |
Nine Months Ended | |||||
September 30, | September 30, | September 30, | September 30, | September 30, | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Operating costs and expenses | |||||
Operating costs | 444,284,960 | 292,122,643 | (560,465) | 735,847,138 | 100,856,242 |
Selling and marketing expenses | 39,115,830 | 21,411,730 | 60,527,560 | 8,295,992 | |
General and administrative expenses | 117,191,327 | 33,197,310 | 150,388,637 | 20,612,478 | |
Other operating expenses | 1,024,079 | 7,111,308 | 8,135,387 | 1,115,048 | |
Other general expenses | 27,296,093 | - | 27,296,093 | 3,741,241 | |
Total operating costs and expenses | 628,912,289 | 353,842,991 | (560,465) | 982,194,815 | 134,621,001 |
Operating costs were RMB247.8 million (US$34.0 million)[1], a 6.6% year-over-year decrease.
Operating costs of the hotel business were RMB159.9 million (US$21.9 million)[1], a 12.1% year-over-year increase. The increase was mainly due to higher personnel costs, higher consumables and higher utilities as business rebounded,as well as higher depreciation and amortization with increase in assets, partially offset by the deconsolidation of Argyle Hotel Management Group (Australia) Pty Ltd., and the disposal of our interest in Urban Hotel Group.
Operating costs of the restaurant business were RMB87.7 million (US$12.0 million)[1], a 28.3% year-over-year decrease. The decrease was mainly due to the closure of 85 L&O stores over the past 12 months.
For the first nine months of 2023, operating costs were RMB735.8 million (US$100.9 million) [1], representing an 8.9% decrease.
Selling and marketing expenses were RMB26.3 million (US$3.6 million)[1], an 11.1% year-over-year decrease.
Selling and marketing expenses of the hotel business were RMB14.3 million (US$2.0million)[1], a 24.9% year-over-year increase. The increase was mainly attributable to higher sales-channel commissions and higher sales staff salaries.
Selling and marketing expenses of the restaurant business were RMB12.0 million (US$1.6 million)[1], a 33.7% year-over-year decrease. The decrease was mainly attributable to lower sales-channel commissions.
For the first nine months of 2023, selling and marketing expenses were RMB60.5 million (US$8.3 million) [1], a 4.1% increase.
General and administrative, or G&A expenses were RMB38.5 million (US$5.3 million)[1], a 46.5% year-over-year decrease.
G&A expenses of the hotel business were RMB26.7 million (US$3.7 million)[1], a 50.9% year-over-year decrease. The decrease was mainly due to lower bad debts,lower staff related expenses, and lower consulting fees.
G&A expenses of the restaurant business were RMB11.9 million (US$1.6 million)[1], a 33.1% year-over-year decrease. The decrease was mainly due to lower staff related expenses.
General and administrative expenses for the first nine months of 2023 were RMB150.4 million (US$20.6 million) [1], a 22.3% year-over-year decrease.
Other general expenses were RMB11.3 million (US$1.6 million)[1], a 71.9% year-over-year decrease. These expenses include the provisions for loan receivables related to franchisee loans. Other general expenses for the first nine months of 2023 were RMB27.3 million (US$3.7 million) [1], a 94.9% year-over-year decrease.
Gross profit was RMB213.1 million (US$29.2 million)[1], a year-over-year increase of 58.4%. Gross margin was 46.2%, compared to 33.7% a year ago. The gross profit of the hotel business was RMB179.1 million (US$24.6 million)[1], an 81.3% year-over-year increase, with a margin of 52.8%. The gross profit of the restaurant business was RMB34.0 million (US$4.7 million)[1], a 5.0% year-over-year decrease with a margin of 27.9%. Gross profit for the first nine months of 2023 was RMB519.2 million (US$71.2 million) [1], a 72.9% year-over-year increase.
Income from operations was RMB137.8 million (US$18.9 million)[1] , compared to income from operations of RMB3.7 million in the third quarter of 2022, with a margin of 29.9%.
Income from operations of the hotel business was RMB127.5 million (US$17.5 million)[1], compared to a income from operations of RMB1.3 million in the third quarter of 2022, with a margin of 37.6%.
Income from operations of the restaurant business was RMB10.3 million (US$1.4 million)[1], compared to income from operations of RMB2.4 million in the third quarter of 2022, with a margin of 8.5%.
Income from operations for the first nine months of 2023 was RMB288.7 million (US$39.6 million) [1] compared to loss from operations of RMB470.6 million in 2022, with a margin of 23.0%.
Net income was RMB117.4 million (US$16.1 million)[1], compared to a net loss of RMB 62.3 million in the third quarter of 2022, and net margin was 25.5%.
Net income of the hotel business was RMB108.5 million (US$14.9 million)[1], compared to a net loss of RMB 61.6 million in the third quarter of 2022, and net margin was 32.0%.
Net income of the restaurant business was RMB8.8 million (US$1.2 million)[1], compared to a net loss of RMB0.6 million in the third quarter of 2022, and net margin was 7.3%.
Net income for the first nine months of 2023 was RMB 294.7 million (US$40.4million)[1], compared to a net loss of RMB 446.8 million in 2022, and net margin was 23.5%.
Adjusted EBITDA (non-GAAP)[2] was was RMB173.4 million (US$23.8 million)[1], a year-over-year increase of 215.0%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 37.6%, compared to 13.8% a year ago. Adjusted EBITDA (non-GAAP) for the first nine months of 2023 was RMB400.3 million (US$54.9 million), a year-over-year increase of 166.0%, with a margin of 21.9%.
Core net income (non-GAAP) was RMB127.2 million (US$17.4 million)[1], increased from 4.67 million for the third quarter of 2022. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the third quarter of 2023 was 27.6%, compared to 1.2% one year ago. Core net income (non-GAAP) for the first nine months of 2023 was RMB263.3 million (US$36.1 million)[1], a year-over-year increase of 202.5%.
Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB 1.15 (US$ 0.16)[1], up from RMB-0.59 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) for the third quarter of 2023 was RMB1.25 (US$0.17)[1], up from RMB0.05 a year ago. Earnings per ADS (basic and diluted) for the first nine months of 2023 was RMB2.94 (US$0.40)[1] up from RMB-3.97 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB2.58 (US$0.35)[1] for the nine months of 2023, an increase from RMB0.84 a year ago.
Cash flow Operating cash inflow was RMB154.8 million (US$21.2 million)[1] as a result of income from operations. Investing cash outflow for the third quarter of 2023 was RMB95.1 million (US$13.0 million)[1], which was primarily attributable to purchases of short-term investments, and was partially offset by repayment from franchisees. Financing cash outflow was RMB296.2 million (US$40.6 million)[1], mainly attributable to the repayment of bank loans by the end of the September 30, 2023.
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of September 30, 2023, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,331.4 million (US$182.5 million)[1],compared to RMB1,440.1 million as of June 30, 2023. The decrease was primarily due to repayment of bank loans and investment of property, partially offset by cash from operating activities and repayment from franchisees.
Guidance
Based on our performance in the first nine months of this year, we revise our full year 2023 guidance for the total revenues of our organic hotels upwards. We now expect them to grow 36% to 38% year over year. We expect total combined revenues from our restaurant and organic hotel businesses, for the full year of 2023 to grow 17%-19% over the 2022 levels, reflecting the impact of the closure of restaurants.
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.
Share Repurchase Transaction
In October 2023, the Company repurchased 554,158 of its ADSs from a single investor at a price of US$4.40 per ADSs, for a total consideration of US$2,438,295.20, in a privately negotiated transaction. The repurchase was made under the auspices of the Company's share repurchase program, which was authorized by its board of directors in October 2023.
Conference Call
GreenTree's management will hold an earnings conference call at 9:00 PM U.S. Eastern Time on November 21, 2023, (9:00 AM Beijing/Hong Kong Time on November 22, 2023).
Dial-in numbers for the live conference call are as follows:
International | 1-412-902-4272 |
Mainland China | 4001-201-203 |
US | 1-888-346-8982 |
Hong Kong | 800-905-945 or 852-3018-4992 |
Singapore | 800-120-6157 |
Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call.
A telephone replay of the conference call will be available after the conclusion of the live conference call until November 28, 2023.
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: | 8284002 |
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.
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.296 on September 30, 2023 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/. |
[2] Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition. |
[3] Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax). |
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of September 30, 2023, GreenTree had a total number of 4,185 hotels and 206 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, | September 30, | September 30, | ||||
2022 | 2023 | 2023 | ||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 701,332,213 | 878,440,877 | 120,400,340 | |||
Restricted cash | 7,937,397 | - | - | |||
Short-term investments | 186,031,572 | 361,091,153 | 49,491,660 | |||
Investments in equity securities | 41,361,346 | 27,841,824 | 3,816,039 | |||
Accounts receivable, net of allowance | 140,429,505 | 129,829,644 | 17,794,633 | |||
Amounts due from related parties | 451,786,275 | 41,646,064 | 5,708,068 | |||
Prepaid rent | - | 129,472 | 17,746 | |||
Inventories | 30,503,712 | 26,793,399 | 3,672,341 | |||
Other current assets | 142,169,713 | 137,543,314 | 18,851,880 | |||
Loans receivable, net | 181,667,170 | 126,767,946 | 17,374,993 | |||
Total current assets | 1,883,218,903 | 1,730,083,693 | 237,127,700 | |||
Non-current assets: | ||||||
Amounts due from a related party | 112,360,000 | 112,360,000 | 15,400,219 | |||
Restricted cash | 25,359,592 | 23,554,601 | 3,228,427 | |||
Long-term time deposits | 130,000,000 | - | - | |||
Loans receivable, net | 177,172,509 | 85,808,668 | 11,761,056 | |||
Property and equipment, net | 899,985,340 | 857,532,015 | 117,534,542 | |||
Intangible assets, net | 174,748,932 | 170,494,189 | 23,368,173 | |||
Goodwill | 128,752,950 | 128,752,950 | 17,647,060 | |||
Long-term investments | 176,854,460 | 186,318,825 | 25,537,120 | |||
Operating lease right-of-use assets | 1,676,544,520 | 1,574,294,748 | 215,775,048 | |||
Other assets | 120,620,533 | 119,705,771 | 16,407,041 | |||
Deferred tax assets | 242,186,616 | 251,744,672 | 34,504,478 | |||
TOTAL ASSETS | 5,747,804,355 | 5,240,650,132 | 718,290,864 | |||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Short-term bank loans | 298,100,000 | 124,500,000 | 17,064,145 | |||
Long-term bank loans, current portion | - | - | - | |||
Accounts payable | 123,522,029 | 94,473,295 | 12,948,642 | |||
Advance from customers | 26,480,779 | 25,192,181 | 3,452,876 | |||
Amounts due to related parties | 24,810,304 | 25,569,971 | 3,504,656 | |||
Salary and welfare payable | 89,343,058 | 94,372,633 | 12,934,846 | |||
Deferred rent | - | - | - | |||
Deferred revenue | 199,656,130 | 190,662,815 | 26,132,513 | |||
Accrued expenses and other current liabilities | 455,519,530 | 530,299,587 | 72,683,606 | |||
Income tax payable | 74,672,133 | 116,316,300 | 15,942,475 | |||
Dividends payable | - | - | - | |||
Operating lease liabilities, current | 271,518,556 | 311,267,733 | 42,662,792 | |||
Deferred tax liabilities | 34,473,265 | 34,344,492 | 4,707,304 | |||
Total current liabilities | 1,598,095,784 | 1,546,999,007 | 212,033,855 | |||
Long-term bank loans | 160,000,000 | - | - | |||
Deferred rent | - | - | - | |||
Deferred revenue | 232,857,456 | 220,202,708 | 30,181,292 | |||
Other long-term liabilities | 128,196,031 | 109,216,750 | 14,969,401 | |||
Operating lease liabilities, non-current | 1,521,589,481 | 1,388,610,641 | 190,324,923 | |||
Deferred tax liabilities | 63,815,023 | 41,258,161 | 5,654,901 | |||
Unrecognized tax benefits | 350,002,241 | 393,532,440 | 53,938,109 | |||
TOTAL LIABILITIES | 4,054,556,016 | 3,699,819,707 | 507,102,481 | |||
Shareholders' equity: | ||||||
Class A ordinary shares | 222,587,070 | 222,587,070 | 30,508,096 | |||
Class B ordinary shares | 115,534,210 | 115,534,210 | 15,835,281 | |||
Paid-in capital | 94,000,801 | 94,000,801 | 12,883,882 | |||
Treasury Stock | (16,971,057) | (16,971,057) | (2,326,077) | |||
Additional paid-in capital | 1,911,328,052 | 1,491,544,647 | 204,433,203 | |||
Retained earnings (Accumulated losses) | (698,677,163) | (426,129,808) | (58,405,950) | |||
Accumulated other comprehensive income | 27,732,104 | 28,659,709 | 3,928,140 | |||
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,655,534,017 | 1,509,225,572 | 206,856,575 | |||
Non-controlling interests | 37,714,322 | 31,604,854 | 4,331,806 | |||
Total shareholders' equity | 1,693,248,339 | 1,540,830,426 | 211,188,381 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,747,804,355 | 5,240,650,133 | 718,290,862 | |||
GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, 2022 | September 30, 2023 | September 30, | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Revenues | |||||||||||
Leased-and-operated revenues | 197,549,719 | 232,247,157 | 31,832,121 | 539,601,249 | 613,025,977 | 84,022,201 | |||||
Franchised-and-managed revenues | 168,085,473 | 203,196,935 | 27,850,457 | 461,854,330 | 567,969,829 | 77,846,742 | |||||
Wholesales and others | 34,109,066 | 25,440,100 | 3,486,856 | 106,958,082 | 74,098,377 | 10,156,028 | |||||
Total revenues | 399,744,258 | 460,884,192 | 63,169,434 | 1,108,413,661 | 1,255,094,183 | 172,024,971 | |||||
Operating costs and expenses | |||||||||||
Operating costs | (265,171,347) | (247,784,689) | (33,961,717) | (808,122,722) | (735,847,138) | (100,856,242) | |||||
Selling and marketing expenses | (29,583,420) | (26,303,310) | (3,605,169) | (58,153,461) | (60,527,560) | (8,295,992) | |||||
General and administrative expenses | (72,010,793) | (38,514,280) | (5,278,821) | (193,582,391) | (150,388,637) | (20,612,478) | |||||
Other operating expenses | (650,746) | (301,169) | (41,279) | (4,940,400) | (8,135,387) | (1,115,048) | |||||
Other general expenses | (40,288,592) | (11,322,509) | (1,551,879) | (530,908,302) | (27,296,093) | (3,741,241) | |||||
Total operating costs and expenses | (407,704,898) | (324,225,957) | (44,438,865) | (1,595,707,276) | (982,194,815) | (134,621,001) | |||||
Other operating income | 11,641,661 | 1,136,022 | 155,705 | 16,685,368 | 15,806,939 | 2,166,521 | |||||
Income from operations | 3,681,021 | 137,794,257 | 18,886,274 | (470,608,247) | 288,706,307 | 39,570,491 | |||||
Interest income and other, net | 14,926,702 | 13,662,038 | 1,872,538 | 38,969,260 | 31,041,389 | 4,254,576 | |||||
Interest expense | (5,576,725) | (3,740,491) | (512,677) | (23,018,300) | (13,137,021) | (1,800,579) | |||||
Gains (losses) from investment in equity securities | (63,542,030) | 365,577 | 50,106 | (41,854,446) | (4,434,821) | (607,843) | |||||
Other income, net | 20,442,641 | 1,779,998 | 243,969 | 35,194,410 | 76,749,505 | 10,519,395 | |||||
Income before income taxes | (30,068,391) | 149,861,379 | 20,540,210 | (461,317,323) | 378,925,359 | 51,936,040 | |||||
Income tax expense | (32,530,351) | (32,385,239) | (4,438,766) | 14,128,239 | (83,335,322) | (11,422,056) | |||||
Income (loss) before share of gains in equity investees | (62,598,742) | 117,476,140 | 16,101,444 | (447,189,084) | 295,590,037 | 40,513,984 | |||||
Share of loss/(income) in equity investees, net of tax | 344,898 | (83,027) | (11,380) | 420,023 | (869,910) | (119,231) | |||||
Net income(loss) | (62,253,844) | 117,393,113 | 16,090,064 | (446,769,061) | 294,720,127 | 40,394,753 | |||||
Net loss/(income) attributable to non-controlling interests | 1,838,762 | 227,170 | 31,136 | 37,639,230 | 5,304,468 | 727,038 | |||||
Net income attributable to ordinary shareholders | (60,415,082) | 117,620,283 | 16,121,200 | (409,129,831) | 300,024,595 | 41,121,791 | |||||
Net earnings per share | |||||||||||
Class A ordinary share-basic and diluted | (0.59) | 1.15 | 0.16 | (3.97) | 2.94 | 0.40 | |||||
Class B ordinary share-basic and diluted | (0.59) | 1.15 | 0.16 | (3.97) | 2.94 | 0.40 | |||||
Net earnings per ADS | |||||||||||
Class A ordinary share-basic and diluted | (0.59) | 1.15 | 0.16 | (3.97) | 2.94 | 0.40 | |||||
Class B ordinary share-basic and diluted | (0.59) | 1.15 | 0.16 | (3.97) | 2.94 | 0.40 | |||||
Weighted average shares outstanding | |||||||||||
Class A ordinary share-basic and diluted | 68,286,954 | 67,416,046 | 67,416,046 | 68,286,954 | 67,416,046 | 67,416,046 | |||||
Class B ordinary share-basic and diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 | |||||
Other comprehensive income, net of tax | |||||||||||
Foreign currency translation adjustments | (68,502) | (9,389) | (9,730,001) | 927,605 | 127,139 | ||||||
Comprehensive income, net of tax | (62,253,844) | 117,324,611 | 16,080,675 | (456,499,062) | 295,647,732 | 40,521,892 | |||||
Comprehensive loss/(income) attributable to non-controlling interests | 1,838,762 | 227,170 | 31,136 | 35,856,166 | 5,304,468 | 727,038 | |||||
Comprehensive income (loss) attributable to ordinary shareholders | (60,415,082) | 117,551,781 | 16,111,811 | (420,642,896) | 300,952,200 | 41,248,930 |
GreenTree Hospitality Group Ltd. Unaudited Hotel Business Results | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Revenues | |||||||||||
Leased-and-operated revenues | 82,933,960 | 151,839,044 | 20,811,272 | 254,206,326 | 365,402,970 | 50,082,644 | |||||
Franchised-and-managed revenues | 154,008,269 | 186,043,016 | 25,499,317 | 429,547,816 | 533,460,017 | 73,116,779 | |||||
Others | 4,491,130 | 1,168,017 | 160,090 | 15,055,917 | 3,393,596 | 465,131 | |||||
Total revenues | 241,433,359 | 339,050,077 | 46,470,679 | 698,810,059 | 902,256,583 | 123,664,554 | |||||
Operating costs and expenses | |||||||||||
Hotel operating costs | (142,631,811) | (159,920,582) | (21,918,939) | (450,381,839) | (444,284,960) | (60,894,320) | |||||
Selling and marketing expenses | (11,435,030) | (14,277,225) | (1,956,856) | (30,287,636) | (39,115,830) | (5,361,271) | |||||
General and administrative expenses | (54,276,339) | (26,655,780) | (3,653,479) | (154,000,741) | (117,191,327) | (16,062,408) | |||||
Other operating expenses | (335,350) | (180,515) | (24,742) | (2,384,084) | (1,024,079) | (140,362) | |||||
Other general expenses | (40,288,592) | (11,322,509) | (1,551,879) | (530,908,302) | (27,296,093) | (3,741,241) | |||||
Total operating costs and expenses | (248,967,122) | (212,356,611) | (29,105,895) | (1,167,962,602) | (628,912,289) | (86,199,602) | |||||
Other operating income | 8,795,882 | 796,141 | 109,120 | 12,713,280 | 14,587,926 | 1,999,442 | |||||
Income from operations | 1,262,119 | 127,489,607 | 17,473,904 | (456,439,263) | 287,932,220 | 39,464,394 | |||||
Interest income and other, net | 14,771,377 | 13,514,958 | 1,852,379 | 38,501,515 | 30,587,298 | 4,192,338 | |||||
Interest expense | (4,820,142) | (3,004,677) | (411,825) | (19,998,754) | (10,896,629) | (1,493,507) | |||||
Gains (losses) from investment in equity securities | (63,542,030) | 365,577 | 50,106 | (41,854,446) | (4,434,821) | (607,843) | |||||
Other income, net | 20,321,008 | 2,150,576 | 294,761 | 34,985,625 | 76,670,199 | 10,508,525 | |||||
Income before income taxes | (32,007,668) | 140,516,041 | 19,259,325 | (444,805,323) | 379,858,267 | 52,063,907 | |||||
Income tax expense | (29,954,576) | (31,888,801) | (4,370,724) | 21,846,119 | (78,620,126) | (10,775,785) | |||||
Income (loss) before share of gains in equity investees | (61,962,244) | 108,627,240 | 14,888,601 | (422,959,204) | 301,238,141 | 41,288,122 | |||||
Share of loss/(income) in equity investees, net of tax | 344,898 | (83,027) | (11,380) | 420,023 | (869,910) | (119,231) | |||||
Net income(loss) | (61,617,346) | 108,544,213 | 14,877,221 | (422,539,181) | 300,368,231 | 41,168,891 |
GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Revenues | |||||||||||
Leased-and-operated revenues | 114,605,522 | 80,358,490 | 11,014,047 | 285,614,441 | 248,698,564 | 34,086,974 | |||||
Franchised-and-managed revenues | 14,077,204 | 17,153,919 | 2,351,140 | 32,306,514 | 34,509,812 | 4,729,963 | |||||
Wholesales and others | 29,617,936 | 24,272,083 | 3,326,766 | 91,902,165 | 70,704,781 | 9,690,896 | |||||
Total revenues | 158,300,662 | 121,784,492 | 16,691,953 | 409,823,120 | 353,913,157 | 48,507,833 | |||||
Operating costs and expenses | |||||||||||
Restaurant operating costs | (122,529,299) | (87,814,484) | (12,035,976) | (357,441,041) | (292,122,643) | (40,038,739) | |||||
Selling and marketing expenses | (18,148,390) | (12,026,085) | (1,648,312) | (27,865,825) | (21,411,730) | (2,934,722) | |||||
General and administrative expenses | (17,734,454) | (11,858,500) | (1,625,343) | (39,581,650) | (33,197,310) | (4,550,070) | |||||
Other operating expenses | (315,396) | (120,654) | (16,537) | (2,556,316) | (7,111,308) | (974,686) | |||||
Other general expenses | - | - | - | - | - | - | |||||
Total operating costs and expenses | (158,727,539) | (111,819,723) | (15,326,168) | (427,444,832) | (353,842,991) | (48,498,217) | |||||
Other operating income | 2,845,779 | 339,881 | 46,585 | 3,972,088 | 1,219,013 | 167,080 | |||||
Income from operations | 2,418,902 | 10,304,650 | 1,412,370 | (13,649,624) | 1,289,179 | 176,696 | |||||
Interest income and other, net | 155,325 | 147,080 | 20,159 | 467,745 | 454,091 | 62,238 | |||||
Interest expense | (756,583) | (735,814) | (100,852) | (3,019,546) | (2,240,392) | (307,071) | |||||
Gains (losses) from investment in equity securities | |||||||||||
Other income, net | 121,633 | (370,578) | (50,792) | 208,785 | 79,306 | 10,870 | |||||
Income before income taxes | 1,939,277 | 9,345,338 | 1,280,885 | (15,992,640) | (417,816) | (57,267) | |||||
Income tax expense | (2,575,775) | (496,438) | (68,042) | (7,847,720) | (4,843,969) | (663,921) | |||||
Income (loss) before share of gains in equity investees | (636,498) | 8,848,900 | 1,212,843 | (23,840,360) | (5,261,785) | (721,188) | |||||
Share of loss/(income) in equity investees, net of tax | |||||||||||
Net income(loss) | (636,498) | 8,848,900 | 1,212,843 | (23,840,360) | (5,261,785) | (721,188) |
GreenTree Hospitality Group Ltd. | |||||||
Unaudited Condensed Consolidated Statements | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||
September 30, | September 30, | September 30, | September 30, | ||||
Hotel | Restaurant | Elimination | Total | ||||
RMB | RMB | RMB | RMB | ||||
Revenues | |||||||
Leased-and-operated revenues | 82,933,960 | 114,605,522 | 10,237 | 197,549,719 | |||
Franchised-and-managed revenues | 154,008,269 | 14,077,204 | - | 168,085,473 | |||
Wholesales and Others | 4,491,130 | 29,617,936 | - | 34,109,066 | |||
Total revenues | 241,433,359 | 158,300,662 | 10,237 | 399,744,258 | |||
Operating costs and expenses | |||||||
Operating costs | (142,631,811) | (122,529,299) | (10,237) | (265,171,347) | |||
Selling and marketing expenses | (11,435,030) | (18,148,390) | - | (29,583,420) | |||
General and administrative expenses | (54,276,339) | (17,734,454) | - | (72,010,793) | |||
Other operating expenses | (335,350) | (315,396) | - | (650,746) | |||
Other general expenses | (40,288,592) | - | - | (40,288,592) | |||
Total operating costs and expenses | (248,967,122) | (158,727,539) | (10,237) | (407,704,898) | |||
Other operating income | 8,795,882 | 2,845,779 | - | 11,641,661 | |||
Income from operations | 1,262,119 | 2,418,902 | - | 3,681,021 |
GreenTree Hospitality Group Ltd. | |||||||
Unaudited Condensed Consolidated Statements | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||
September 30, | September 30, | September 30, | September 30, | ||||
Hotel | Restaurant | Elimination | Total | ||||
RMB | RMB | RMB | RMB | ||||
Revenues | |||||||
Leased-and-operated revenues | 151,839,044 | 80,358,490 | 49,623 | 232,247,157 | |||
Franchised-and-managed revenues | 186,043,016 | 17,153,919 | - | 203,196,935 | |||
Wholesales and Others | 1,168,017 | 24,272,083 | - | 25,440,100 | |||
Total revenues | 339,050,077 | 121,784,492 | 49,623 | 460,884,192 | |||
Operating costs and expenses | |||||||
Operating costs | (159,920,582) | (87,814,484) | (49,623) | (247,784,689) | |||
Selling and marketing expenses | (14,277,225) | (12,026,085) | - | (26,303,310) | |||
General and administrative expenses | (26,655,780) | (11,858,500) | - | (38,514,280) | |||
Other operating expenses | (180,515) | (120,654) | - | (301,169) | |||
Other general expenses | (11,322,509) | - | - | (11,322,509) | |||
Total operating costs and expenses | (212,356,611) | (111,819,723) | (49,623) | (324,225,957) | |||
Other operating income | 796,141 | 339,881 | - | 1,136,022 | |||
Income from operations | 127,489,607 | 10,304,650 | - | 137,794,257 |
GreenTree Hospitality Group Ltd. | |||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Operating activities: | |||||||||||
Net (loss) income | (62,253,843) | 117,393,115 | 16,090,065 | (446,769,061) | 294,720,127 | 40,394,754 | |||||
Depreciation and amortization | 22,081,118 | 25,147,034 | 3,446,688 | 101,930,149 | 91,972,633 | 12,605,898 | |||||
Impairment of long lived assets | 4,093,856 | - | - | 60,306,705 | 2,900,000 | 397,478 | |||||
Impairment of goodwill | - | - | - | 91,236,480 | - | - | |||||
Share of (gains) losses in equity method investments | (344,898) | 83,027 | 11,380 | (420,023) | 869,910 | 119,231 | |||||
Non-cash lease expense | 68,815,360 | 58,627,753 | 8,035,602 | 110,474,620 | 193,450,844 | 26,514,644 | |||||
Loss from disposal of a subsidiary | 1,316,908 | - | - | 15,261,833 | 1,223,952 | 167,757 | |||||
Interest income | -229,760 | (2,025,838) | -277,664 | (492,094) | (3,683,748) | (504,900) | |||||
Bad debt expense | 57,826,972 | 18,349,856 | 2,515,057 | 398,673,400 | 37,029,330 | 5,075,292 | |||||
Losses and impairment (Gains) on equity securities held | 63,542,030 | (365,577) | (50,106) | 41,854,446 | 4,434,821 | 607,843 | |||||
(Gains) losses on disposal of property and equipment | (80,389) | 10,173 | 1,394 | 2,969,646 | 238,014 | 32,623 | |||||
Foreign exchange (gains) losses | 5,896,210 | 819,037 | 112,258 | (6,127,943) | (269,162) | (36,892) | |||||
Share-based compensation | (78,215) | (11,998) | (1,644) | 192,924 | 16,594 | 2,274 | |||||
Common control acquisition | - | (2) | - | 519,360 | 515,090 | 70,599 | |||||
Changes in operating assets and liabilities | (6,986,268) | (63,241,769) | (8,668,006) | (72,075,424) | (155,524,939) | (21,316,466) | |||||
Net cash provided by operating activities | 153,599,081 | 154,784,811 | 21,215,024 | 297,535,018 | 467,893,466 | 64,130,135 | |||||
Investing activities: | |||||||||||
Purchases of property and equipment | (30,565,776) | (833,691) | (114,267) | (61,337,333) | (72,566,925) | (9,946,125) | |||||
Purchases of intangible assets | (224,507) | 185,683 | 25,450 | (284,722) | (166,598) | (22,834) | |||||
Proceeds from disposal of property and equipment | (673,270) | (29,960) | (4,106) | 1,615,553 | 14,666,721 | 2,010,241 | |||||
Purchases of investments | (33,200,000) | (150,860,480) | -20,677,149 | (82,060,000) | (202,230,480) | (27,717,993) | |||||
Proceeds from investments | 70,152,639 | 27,211,463 | 3,729,641 | 576,447,988 | 198,654,647 | 27,227,885 | |||||
Loan advances | 42,299,295 | 35,263,176 | 4,833,220 | 137,226,663 | 110,801,825 | 15,186,654 | |||||
Loan collections | (18,205,540) | (6,058,982) | (830,453) | (219,073,700) | (16,033,578) | (2,197,585) | |||||
Net cash (used in) provided by investing activities | 29,582,841 | (95,122,791) | (13,037,664) | 352,534,449 | 33,125,612 | 4,540,243 | |||||
Financing activities: | |||||||||||
Distribution to the shareholders | - | - | - | (40,999,458) | - | - | |||||
Loan from non- controlling interest | - | - | - | 300,000 | - | - | |||||
Repayment of short-term borrowings | (31,743,600) | (296,200,000) | (40,597,588) | (200,843,600) | (450,600,000) | (61,759,868) | |||||
Proceeds from bank borrowings | 64,368,600 | - | - | 89,668,600 | 117,000,000 | 16,036,184 | |||||
Capital contribution from non-controlling interest holders | 2,000,000 | - | - | 400,000 | - | - | |||||
Net cash provided by (used in) financing activities | 34,625,000 | (296,200,000) | (40,597,588) | (151,474,458) | (333,600,000) | (45,723,684) | |||||
- | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,792,626 | (395,858) | (54,257) | 3,442,014 | (52,807) | (7,238) | |||||
Net (decrease) increase in cash and cash equivalents | 220,599,548 | (236,933,838) | (32,474,485) | 502,037,023 | 167,366,271 | 22,939,456 | |||||
Cash and cash equivalents at the beginning of the period | 666,890,395 | 1,138,929,312 | 156,103,250 | 385,452,920 | 734,629,202 | 100,689,309 | |||||
Cash and cash equivalents at the end of the period | 887,489,943 | 901,995,474 | 123,628,765 | 887,489,943 | 901,995,473 | 123,628,765 |
GreenTree Hospitality Group Ltd. Unaudited Reconciliation of GAAP and Non-GAAP Results | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Net income | (62,253,843) | 117,393,115 | 16,090,065 | (446,769,061) | 294,720,127 | 40,394,754 | |||||
Deduct: | |||||||||||
Other operating income | 11,641,661 | 1,136,022 | 155,705 | 16,685,368 | 15,806,939 | 2,166,521 | |||||
Interest income and other, net | 14,926,702 | 13,662,038 | 1,872,538 | 38,969,260 | 31,041,389 | 4,254,576 | |||||
Gains from investment in equity securities | - | - | - | - | - | - | |||||
Share of gain in equity investees, net of tax | 344,898 | - | - | 420,023 | - | - | |||||
Other income, net | 20,442,641 | 1,779,998 | 243,969 | 35,194,410 | 76,749,505 | 10,519,395 | |||||
Add: | |||||||||||
Other operating expenses | 650,746 | 301,169 | 41,279 | 4,940,400 | 8,135,387 | 1,115,048 | |||||
Other general expenses | 40,288,592 | 11,322,509 | 1,551,879 | 530,908,302 | 27,296,093 | 3,741,241 | |||||
Income tax expenses (benefits) | 32,530,351 | 32,385,239 | 4,438,766 | (14,128,239) | 83,335,322 | 11,422,056 | |||||
Share of loss in equity investees, net of tax | - | 83,027 | 11,380 | - | 869,910 | 119,231 | |||||
Interest expenses | 5,576,725 | 3,740,491 | 512,677 | 23,018,300 | 13,137,021 | 1,800,579 | |||||
Depreciation and amortization | 22,081,118 | 25,147,034 | 3,446,688 | 101,930,149 | 91,972,633 | 12,605,898 | |||||
Losses from investment in equity securities | 63,542,030 | (365,577) | (50,106) | 41,854,446 | 4,434,821 | 607,843 | |||||
Adjusted EBITDA (Non-GAAP) | 55,059,817 | 173,428,949 | 23,770,416 | 150,485,236 | 400,303,481 | 54,866,158 | |||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Net income | (62,253,843) | 117,393,115 | 16,090,065 | (446,769,061) | 294,720,127 | 40,394,754 | |||||
Deduct: | |||||||||||
Government subsidies (net of 25% tax) | 5,914,992 | - | - | 7,166,057 | 6,671,305 | 914,378 | |||||
Gains from investment in equity securities (net of 25% tax) | (16,265,688) | - | - | - | - | - | |||||
Other income (net of 25% tax) | 15,331,981 | 1,334,999 | 182,977 | 26,395,808 | 57,562,129 | 7,889,546 | |||||
Add: | |||||||||||
Share-based compensation | (78,215) | (11,998) | (1,644) | 192,924 | 16,594 | 2,274 | |||||
Losses from investments in equity securities (net of 25% tax) | 31,390,835 | (274,183) | (37,580) | 31,390,835 | 3,326,116 | 455,882 | |||||
One-time fees and expenses | 301,519 | 125,783 | 17,240 | 4,889,605 | 2,181,773 | 299,037 | |||||
Other general expenses | 40,288,592 | 11,322,509 | 1,551,879 | 530,908,302 | 27,296,093 | 3,741,241 | |||||
Impairment charges and provisions for other assets | - | - | - | - | - | - | |||||
Core net income (Non-GAAP) | 4,667,603 | 127,220,227 | 17,436,983 | 87,050,740 | 263,307,269 | 36,089,264 | |||||
Core net income per ADS (Non-GAAP) | |||||||||||
Class A ordinary share-basic and diluted | 0.05 | 1.25 | 0.17 | 0.84 | 2.58 | 0.35 | |||||
Class B ordinary share-basic and diluted | 0.05 | 1.25 | 0.17 | 0.84 | 2.58 | 0.35 |
Hotel Operational Data
September 30, | September 30, | |
Total hotels in operation: | 4,763 | 4,185 |
Leased and owned hotels | 69 | 64 |
Franchised hotels | 4,694 | 4,121 |
Total hotel rooms in operation | 337,111 | 307,010 |
Leased and owned hotels | 7,224 | 7,093 |
Franchised hotels | 329,887 | 299,917 |
Number of cities | 370 | 354 |
Quarter Ended | ||
2022 Q3 | 2023 Q3 | |
Occupancy rate (as a percentage) | ||
Leased-and-owned hotels | 63.0 % | 79.0 % |
Franchised hotels | 71.3 % | 81.3 % |
Blended | 71.1 % | 81.2 % |
Average daily rate (in RMB) | ||
Leased-and-owned hotels |
237 |
268 |
Franchised hotels |
167 |
190 |
Blended |
168 |
192 |
RevPAR (in RMB) | ||
Leased-and-owned hotels |
149 |
212 |
Franchised hotels |
119 |
155 |
Blended |
120 |
156 |
Number of Hotels in Operation | Number of Hotel Rooms in Operation | |||
September 30, | September 30, | September 30, | September 30, | |
Mid-to-up-scale | 544 | 455 | 48,381 | 43,485 |
GreenTree Eastern | 210 | 224 | 22,598 | 23,639 |
Deepsleep Hotel | 7 | 7 | 467 | 534 |
Gem | 52 | 61 | 4,728 | 5,372 |
Gya | 67 | 71 | 5,719 | 5,899 |
Vx | 85 | 92 | 7,405 | 8,041 |
Urban Garden and others | 123 | 0 | 7,464 | 0 |
Mid-scale | 3,050 | 2,965 | 236,871 | 230,655 |
GreenTree Inn | 2,255 | 2,282 | 182,842 | 182,041 |
GT Alliance | 533 | 552 | 38,312 | 39,379 |
GreenTree Apartment | 19 | 20 | 1,260 | 1,308 |
Vatica | 111 | 111 | 8,007 | 7,927 |
City 118 Selected and others | 132 | 0 | 6,450 | 0 |
Economy hotels | 1,169 | 765 | 51,859 | 32,870 |
Shell | 668 | 765 | 28,917 | 32,870 |
City 118 and others | 501 | 0 | 22,942 | 0 |
Total | 4,763 | 4,185 | 337,111 | 307,010 |
Restaurant Operational Data
September 30, | September 30, | |
Total restaurants in operation: | 268 | 206 |
Leased and owned restaurants | 137 | 52 |
Franchised restaurants | 131 | 154 |
Number of cities | 64 | 53 |
Da Niang Dumplings | 234 | 171 |
Bellagio | 34 | 35 |
Total restaurants in operation: | 268 | 206 |
Quarter Ended | ||
2022 Q3 | 2023 Q3 | |
ADT | ||
Leased-and-owned restaurants | 137 | 161 |
Franchised restaurants | 97 | 105 |
Blended | 117 | 119 |
AC (in RMB) | ||
Leased-and-owned restaurants | 58 | 86 |
Franchised restaurants | 42 | 39 |
Blended | 52 | 55 |
ADS (in RMB) | ||
Leased-and-owned restaurants | 8,004 | 13,740 |
Franchised restaurants | 4,101 | 4,119 |
Blended | 6,096 | 6,548 |
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Mr. Allen Wang
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
Source: GreenTree Hospitality Group Ltd. Related Stocks: NYSE:GHG