GreenTree Hospitality Group Ltd. Reports Second Half and Fiscal Year 2022 - Apr 6, 2023

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GreenTree Hospitality Group Ltd. Reports Second Half and Fiscal Year 2022

Financial Results 

  • Total revenues decreased by 21.1% year over year to RMB487.8 million (US$70.7 million) [[1]] for the second half 2022.

Organic revenues, excluding revenues of Argyle and Urban, decreased by 15.8% year over year to RMB466.0 million (US$67.6 million) for the second half 2022.

  • Income from operations increased by 516.4% year over year to RMB20.0 million (US$2.9 million) [1] for the second half 2022.
  • Adjusted EBITDA (non-GAAP) [2] decreased by 21.2% year over year to RMB118.3 million (US$17.2 million) for the second half 2022.

SHANGHAI, April 6, 2023 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality management group in China, today announced its unaudited financial results for the second half and fiscal year of 2022.

Second Half 2022 Operational Highlights 

  • As previously disclosed, the Company has been in a dispute with Mr. Kevin Zhang, the founder, and the minority shareholder of Argyle, as to performance of relevant transaction documents and/or compliance with local laws and regulations by Mr. Zhang. As a result, since June 2022, GreenTree has not been able to maintain effective control over Argyle which therefore has been deconsolidated from GreenTree. The total number of hotels as of December 31, 2022 and GreenTree's balance sheet do not include Argyle related data. Argyle owned and operated 51 hotels as of December 31, 2021 and contributed 2.4% of GreenTree's total revenue in 2021. 
  • GreenTree and Urban's minority shareholder entered into definite agreements on November 23, 2022 for the minority shareholder and its designated person to repurchase all of the equity interest in Urban held by GreenTree as of November 25, 2022. As a result, the total number of hotels as of December 31, 2022 and GreenTree's balance sheet do not include Urban related data. Urban owned and operated 749 hotels as of December 31, 2021 and contributed 8.8% of GreenTree's total revenue in 2021.
  • A total of 4,059 hotels with 302,497 hotel rooms were in operation as of December 31, 2022, compared to 4,659 hotels and 337,153 hotel rooms as of December 31, 2021.

Excluding Argyle and Urban hotels, the total of 4,059 organic hotels increased by 5.2%, compared to 3,859 organic hotels and 292,219 organic hotel rooms as of December 31, 2021.

  • As of December 31, 2022, the Company had 61 leased-and-operated ("L&O") hotels and 3,998 franchised-and-managed ("F&M") hotels in operation in 355 cities across China, compared to 66 L&O hotels and 4,593 F&M hotels in operation in 367 cities as of December 31, 2021. Excluding Argyle and Urban hotels, the Company had 55 L&O hotels and 3,804 F&M hotels in operation as of December 31, 2021.
  • During the second half of 2022, the Company opened 161 hotels, a decrease of 159 compared to 320 hotels opened in the second half of 2021. Of the hotels opened in the second half of 2022, 24 were in the mid-to-up-scale segment, 93 in the mid-scale segment, and 44 in the economy segment. Geographically, 10 hotels were in Tier 1 cities [3], 31 in Tier 2 cities and the remaining 120 in Tier 3 and lower cities in China as of December 31, 2022.

Excluding Argyle and Urban hotels, the Company opened 136 organic hotels,  compared to 265 organic hotels opened in the second half of 2021.

  • As of December 31, 2022, the Company had a pipeline of 916 hotels contracted for or under development with 235 in the mid-to-up-scale segment, 486 in the mid-scale segment, and 195 in the economy segment.
  • The average daily room rate, or ADR, for all hotels in operation was RMB 168 in the third quarter of 2022, an increase of 3.4% from RMB163 in the third quarter of 2021. Such ADR was RMB165 in the fourth quarter of 2022, a 2.9% year-over-year decrease.
  • The occupancy rate, or OCC, for all hotels in operation was 71.1% in the third quarter of 2022, down from 72.4% in the third quarter of 2021. Such OCC was 63.0% in the fourth quarter of 2022, compared with 69.2% in the fourth quarter of 2021.
  • The revenue per available room, or RevPAR, which is calculated by multiplying our hotels' ADR by its occupancy rate, was RMB120 in the third quarter of 2022, a 1.5% year-over-year increase. RevPAR was RMB104 in the fourth quarter of 2022, a 11.6% year-over-year decrease.
  • As of December 31, 2022 the Company's loyalty program had over 78 million individual members and approximately 1,935,000 corporate members, compared to over 74 million individual members and approximately 1,905,000 corporate members, respectively, as of June 30, 2022. 

Fiscal Year 2022 Operational Highlights 

  • For the full year 2022, the Company opened 362 hotels, a decrease of 49.9% comparing to 722 newly-opened hotels in the full year 2021. Of the hotels opened in 2022, 67 were in the mid-to-up-scale segment, 201 were in the mid-scale segment, and 94 were in the economy segment. Geographically speaking, 23 hotels were in Tier 1 cities, 83 were in Tier 2 cities and the remaining 256 were in Tier 3 and other cities in China as of December 31, 2022. During 2022, the Company closed 155 hotels, and added a net of 207 hotels to its portfolio.

Excluding Argyle and Urban hotels, the Company opened 295 hotels, a decrease of 52.3% comparing to 618 newly-opened organic hotels in the full year of 2021.

  • The average daily room rate, or ADR, for all hotels in operation, was RMB159 in the full year 2022, a 3.1% year-over-year decrease.
  • The occupancy rate, or OCC for all hotels in operation was 63.7% in the full year 2022, compared with 71.1% in the full year 2021. 
  • The revenue per available room, or RevPAR, which is calculated by multiplying our hotels' ADR by its occupancy rate, was RMB101 in the full year 2022, a 13.2% year-over-year decrease.  

"2022 was a year full of changes and challenges. During the first half, COVID-19 outbreaks in many parts of the country resulted in lockdowns in many cities, especially in Shanghai. As we entered the third quarter, transportation restrictions were relaxed and Revpar recovered. However, October and November brought a fresh wave of outbreaks, slowing down our recovery once again. Thanks to the introduction of flexible anti-pandemic measures by the government early December, Revpar recovered in the second half of the month to more than 95% of its pre-pandemic levels. Throughout all these challenges, we continued to execute our long-term strategic growth plan that strives to assist franchisees in maintaining quality operations, extend our hotel network, deliver stable operating profitability, and maintain healthy cash flow," said Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree.

As we entered 2023, recovery was uneven. During the first half of January, recovery slowed again due to the rapid evolvement of pandemic after the pandemic control measures were lifted in China. Outperforming our expectations, Repvar during the Spring Festival recovered to more than 90% of its pre-pandemic levels. Such a recovery accelerated in February, resulting in more than a 5% increase compared to 2019. However, recovery slowed again in March due to outbreaks of influenza A in certain cities.

This March we entered the restaurant business to complement our hotel business and create a new stream of growth as we completed the acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China from our controlling shareholder. We are eager to integrate Da Niang Dumplings and Bellagio into GreenTree, leveraging upon synergies between our respective teams within our Company's unique ecosystem. We are confident in our ability to harness consumer demand for quality food services and build upon the broad appeal of these beloved restaurant brands in China's rapidly-growing food service industry. We are confident that this acquisition will create value and deliver growth for our shareholders.

After another difficult year, life is gradually returning to normal, no matter how many twists and turns we may experience. At the beginning of a new year full of hope, I want to give special thanks to our team, franchisees, and partners for supporting each other through very challenging times and continually contributing to our jointly-developed business. 

Second Half 2022 Financial Results

 

Six months Ended

 

December 31,
202
1

 

December 31,

2022

 

December 31,
202
2

 

RMB

 

RMB

 

US$

Revenues

         

Leased-and-operated hotels

218,964,549

 

167,247,701

 

24,248,637

Franchised-and-managed hotels

378,752,785

 

315,230,064

 

45,704,063

others

20,159,286

 

5,289,198

 

766,862

Total revenues

617,876,620

 

487,766,963

 

70,719,562

Total revenues for the second half of 2022 were RMB487.8 million (US$70.7 million) [1], a 21.1% year-over-year decrease. The decrease was primarily due to the deconsolidation of Argyle and the disposal of our interest in Urban, and the impact of COVID-19, which resulted in lower RevPAR at L&O hotels and F&M hotels. Excluding the impact of Argyle and Urban, compared with the second half of 2021, total revenues for the second half of 2022 decreased by 15.8% Total revenues for the full year 2022 were RMB945.1 million (US$137.0 million), a 21.6% year-over-year decrease.

Total revenues from leased-and-operated hotels for the second half of 2022 were RMB 167.2 million (US$24.2 million) [1], a 23.6% year-over-year decrease. The decrease was primarily due to 3 reasons: first, the deconsolidation of Argyle and the disposal of our interest in Urban; second, the disposal of 6 hotels in operation since the fourth quarter and was partially offset by an increase of 8 newly opened L&O hotels; and third, a 4.6% year-over-year decrease in L&O hotels' fourth quarter RevPAR and was partially offset by a 2.7% year-over-year increase in L&O hotels' third quarter RevPAR. Excluding the impact of Argyle and Urban, total revenues from L&O hotels for the second half of 2022 decreased by 16.3%. Total revenues from L&O hotels for the full year 2022 were RMB338.5 million (US$49.1 million), a 13.6% year-over-year decrease.

Total revenues from franchised-and-managed hotels for the second half of 2022 were RMB315.2 million (US$45.7 million) [1], a 16.8% year-over-year decrease. Initial franchise fees for the second half of 2022 decreased 54.8 % year-over-year, mainly because of the decrease in the gross opening number and closing number of F&M hotels. Recurring franchisee management fees and others for the second half of 2022 decreased by 12.4% year-over-year, primarily due to 3 reasons: first, a 12.0% decrease in F&M hotels' RevPAR for 2022Q4 and offset by a 1.5% increase in F&M hotels' RevPAR for 2022Q3; second, the fee waivers to franchisees of quarantined hotels; and third, the deconsolidation of Argyle and the disposal of our interest in Urban. Excluding the impact of Argyle and Urban, total revenues from F&M hotels for the second half of 2022 decreased by 15.2% year over year. Total revenues from F&M hotels for the full year 2022 were RMB590.8 million (US$85.7 million), a 23.7% year-over-year decrease.

 

Six Months Ended

 

December 31, 2021

 

 December 31, 2022

 

December 31, 2022

 

RMB

 

RMB

 

US$

Initial franchise fee

38,670,967

 

17,468,243

 

2,532,657

Recurring franchise management fee and others

340,081,818

 

297,761,821

 

43,171,406

Revenues from franchised-and-managed hotels

378,752,785

 

315,230,064

 

45,704,063

Total operating costs and expenses

 

Six Months Ended

 

 December 31, 2021

 

 December 31, 2022

 

 December 31, 2022

 

RMB

 

RMB

 

US$

Operating costs and expenses

         

Hotel operating costs

364,709,605

 

286,269,294

 

41,505,145

Selling and marketing expenses

27,100,297

 

19,681,821

 

2,853,596

General and administrative expenses

129,158,435

 

111,154,498

 

16,115,887

Other operating expenses

791,335

 

1,196,121

 

173,421

Other general expenses

99,886,003

 

65,041,046

 

9,430,066

Total operating costs and expenses

621,645,675

 

483,342,780

 

70,078,116

Hotel operating costs for the second half of 2022 were RMB286.3 million (US$41.5 million) [1], a 21.5% year-over-year decrease. The decrease was mainly due to the deconsolidation of Argyle and the disposal of our interest in Urban, and disposal of L&O hotels. Hotel operating costs for the full year 2022 were RMB594.0 million (US$86.1 million), a 8.8% year-over-year decrease.

 

Six Months Ended

 

December 31,

 

December 31,

 

December 31,

2021

 

2022

 

2022

 

RMB

 

RMB

 

US$

Rental

131,774,031

 

117,457,325

 

17,029,711

Utilities

13,579,378

 

14,217,567

 

2,061,353

Personnel cost

51,043,295

 

32,577,487

 

4,723,292

Depreciation and amortization

46,892,180

 

40,797,121

 

5,915,027

Consumable, food and beverage

37,769,428

 

17,015,291

 

2,466,985

Costs of general managers of franchised-and-managed hotels

59,383,344

 

51,557,365

 

7,475,115

Other costs of franchised-and-managed hotels

13,674,629

 

7,176,865

 

1,040,548

Others

10,593,320

 

5,470,273

 

793,115

Hotel Operating Costs

364,709,605

 

286,269,294

 

41,505,145

Selling and marketing expenses for the second half of 2022 were RMB 19.7 million (US$ 2.9 million) [1], a 27.4% year-over-year decrease. The decrease was primarily due to lower staff related expenses and advertising expenses, due to less employee business travels during the pandemic, and the deconsolidation of Argyle and the disposal of our interest in Urban. Selling and marketing expenses for the full year 2022 were RMB38.5 million (US$5.6 million), a 42.4% year-over-year decrease.

General and administrative expenses for the second half of 2022 were RMB111.2 million (US$ 16.1 million) [1], a 13.9 % year-over-year decrease. The decrease was mainly attributable to the reduction in consulting fees, and the deconsolidation of Argyle and the disposal of our interest in Urban. General and administrative expenses for the full year 2022 were RMB210.9 million (US$30.6 million), a17.7% year-over-year decrease.

Other general expenses were RMB 65.0 million (US$9.4 million) [1] in the second half of 2022, which included the provisions for loan receivables related to franchisee loans, and impairments of certain fixed assets.

Gross profit for the second half of 2022 was RMB 201.5 million (US$ 29.2 million) [1], a year-over-year decrease of 20.4%. Gross margin for the second half of 2022 was 41.3%, compared to 41.0% a year ago. Gross profit for the full year 2022 was RMB351.1 million (US$50.9 million), a 36.7% year-over-year decrease.

Income from operations for the second half of 2022 was RMB20.0 million (US$ 2.9 million) [1], a year-over-year increase of 516.4%, with a margin of 4.1%. Excluding other general expenses, income from operation from purely operating activities was RMB 85.0 million, with a margin of 17.4%. Income from operations for the full year 2022 was RMB-437.7 million (US$-63.5million), a year-over-year decrease of 384.4%.

Net income for the second half of 2022 was RMB-48.3 million (US$-7.0 million) [1], compared to RMB61.5 million in the second half of 2021 and net margin was -9.9 %. The year-over-year decrease was mainly attributable to the losses from investment in equity securities, which included market-to-market value change of stocks the Company and write down of long-term equity investment in Argyle, and other general expenses. Excluding other general expenses, net income was -23.9 million RMB, with a margin of -2.5%.Net income for the full year 2022 was RMB-409.2 million (US$-59.3 million), a year-over-year decrease of 296.9%.

Adjusted EBITDA (non-GAAP) [2] for the second half of 2022 was RMB 118.3 million (US$ 17.2 million) [1], a year-over-year decrease of 21.2 %. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, for the second half of 2022 was 24.3 %, compared to 24.3 % a year ago. The decrease was mainly attributable to the increased number of LO hotels—both newly opened and in the pipeline. Excluding the impact of newly-opened and pipeline hotels, adjusted EBITDA (non-GAAP) for the second half of 2022 was RMB 146.0 million, with a margin of 34.6%. Adjusted EBITDA (non-GAAP) for the full year 2022 was RMB211.6 million (US$30.7 million), a year-over-year decrease of 35.0%.

Core net income (non-GAAP) for the second half of 2022 was RMB 67.7 million (US$ 9.8 million) [1]. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the second half of 2022 was 13.9%, compared to -1.7 % one year ago.  Excluding the impact of newly opened hotels, core net income (Non-GAAP) was RMB422.0 million, with a margin of 30.0%. Core net income (non-GAAP) for the full year 2022 was RMB173.6 million (US$25.2 million), a year-over-year increase of 54.7%.

Earnings per ADS (basic and diluted) for the second half of 2022 were RMB-0.48 (US$-0.07[1], down from RMB0.59 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) for the second half of 2022 was RMB0.66 (US$0.10) [1] Earnings per ADS (basic and diluted) for the full year 2022 was RMB-3.68 (US$-0.53) down from RMB2.05 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB1.70 (US$0.25) for the full year 2022, a increase from RMB1.09 a year ago.   

Cash flow Operating cash inflow for the second half of 2022 was RMB151.0 million (US$21.9 million) [1] as a result of income from operations. Investing cash inflow for the second half of 2022 was RMB116.4 million (US$16.9 million) [1], which was primarily attributable to proceeds from short-term investments, and proceeds from the disposal of our interest in Urban. Financing cash outflow for the second half of 2022 was RMB160.3 million (US$ 23.2 million), mainly attributable to the repayment of bank loans by the end of December 31, 2022. Operating cash inflow for the full year 2022 was RMB281.7 million (US$40.8 million). Investing cash outflow for the full year 2022 was RMB439.0 million (US$63.6 million). Financing cash inflow for the full year 2022 was RMB341.9 million (US$49.6 million).

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposit.  As of December 31, 2022, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,055.5 million (US$153.0 million) [1], compared to RMB1,079.5 million (US$156.5 million) as of June 30, 2022. The decrease from the second half 2022 was primarily attributable to the repayment of bank loans, offset by cash from operating activities,

Guidance

Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect total revenues of the hotel business for the full year of 2023 to grow 30%~35% over the 2022 levels. Furthermore, considering the merger of the restaurant business into the group and the revenue contribution from restaurant business, we expect total revenues of the whole company for the full year of 2023 to grow 90%~95% over the company's 2022 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 and the full year.

Conference Call

GreenTree's management will hold an earnings conference call at 9:00 PM U.S. Eastern Time on April 6, 2023 (9:00 AM Beijing/Hong Kong Time on April 7, 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 April 13, 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:

8283615

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 it, is a useful financial metric 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 does 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 term Adjusted EBITDA and core net income is not defined under U.S. GAAP, and Adjusted EBITDA and core net income is not a measure 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 management group in China. As of December 31, 2022, GreenTree had a total number of 4,059 hotels. In 2021, HOTELS magazine ranked GreenTree Top 11 Ranking among 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was also the fourth largest hospitality company in China in 2021 based on the statistics issued by the China Hospitality Association.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, and up-scale 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,

2021

 

2022

 

2022

 

RMB

 

RMB

 

US$

ASSETS

         

Current assets:

         

Cash and cash equivalents

298,428,709

 

676,100,435

 

98,025,349

Restricted cash

3,300,000

 

-

 

-

Short-term investments

557,458,675

 

156,031,572

 

22,622,451

Investments in equity securities

157,988,851

 

41,361,346

 

5,996,831

Accounts receivable, net of allowance

95,589,936

 

118,186,912

 

17,135,492

Amounts due from related parties

310,419,860

 

437,165,271

 

63,383,006

Prepaid rent

15,454,967

 

-

 

-

Inventories

2,297,584

 

2,236,082

 

324,201

Other current assets

142,737,163

 

107,213,779

 

15,544,537

Loans receivable, net

247,530,580

 

170,019,414

 

24,650,498

Total current assets

1,831,206,325

 

1,708,314,811

 

247,682,365

           

Non-current assets:

         

Amounts due from a related party

-

 

112,360,000

 

16,290,669

Restricted cash

18,869,900

 

24,346,773

 

3,529,950

Long-term time deposits

160,000,000

 

130,000,000

 

18,848,228

Loans receivable, net

290,967,680

 

177,172,509

 

25,687,599

Property and equipment, net

1,045,356,265

 

834,771,681

 

121,030,517

Intangible assets, net

520,117,479

 

38,111,936

 

5,525,711

Goodwill

120,819,948

 

29,583,468

 

4,289,200

Long-term investments

188,790,785

 

175,554,460

 

25,453,004

Operating lease right-of-use assets

-

 

1,544,739,494

 

223,966,174

Other assets

329,366,340

 

94,606,582

 

13,716,666

Deferred tax assets

161,565,839

 

232,861,870

 

33,761,798

 TOTAL ASSETS

4,667,060,561

 

5,102,423,584

 

739,781,880

           
           

LIABILITIES AND EQUITY

         

Current liabilities:

         

Short-term bank loans

356,000,000

 

99,800,000

 

14,469,640

Long-term bank loans, current portion

50,200,000

 

141,800,000

 

20,559,067

Accounts payable

24,036,544

 

20,745,204

 

3,007,772

Advance from customers

39,773,738

 

18,681,010

 

2,708,492

Amounts due to related parties

9,530,627

 

13,812,954

 

2,002,690

Salary and welfare payable

60,154,565

 

68,684,825

 

9,958,364

Deferred rent

1,926,957

 

-

 

-

Deferred revenue

215,147,975

 

189,105,747

 

27,417,756

Accrued expenses and other current liabilities

381,282,062

 

400,054,308

 

58,002,422

Income tax payable

70,897,366

 

75,199,441

 

10,902,894

Dividends payable

40,999,458

 

-

 

-

Operating lease liabilities, current

-

 

210,388,801

 

30,503,509

Total current liabilities

1,249,949,292

 

1,238,272,290

 

179,532,606

           

Long-term bank loans

301,800,000

 

160,000,000

 

23,197,819

Deferred rent

68,842,692

 

-

 

-

Deferred revenue

314,472,488

 

232,695,351

 

33,737,655

Other long-term liabilities

132,046,925

 

120,196,036

 

17,426,787

Operating lease liabilities, non-current

-

 

1,449,422,906

 

210,146,568

Deferred tax liabilities

228,201,745

 

60,456,710

 

8,765,399

Unrecognized tax benefits

328,820,281

 

346,662,050

 

50,261,273

 TOTAL LIABILITIES

2,624,133,423

 

3,607,705,343

 

523,068,106

           

Shareholders' equity:

         

Class A ordinary shares

222,587,070

 

222,587,070

 

32,272,092

Class B ordinary shares

115,534,210

 

115,534,210

 

16,750,886

Treasury Stock

-

 

(16,971,057)

 

(2,460,572)

Additional paid-in capital

1,151,384,306

 

1,151,321,950

 

166,925,992

Retained earnings (Accumulated losses)

326,298,618

 

(50,088,070)

 

(7,262,088)

Accumulated other comprehensive income

41,880,907

 

27,732,104

 

4,020,777

Total GreenTree Hospitality Group Ltd. shareholders' equity

1,857,685,111

 

1,450,116,207

 

210,247,087

           

Non-controlling interests

185,242,027

 

44,602,033

 

6,466,687

Total shareholders' equity

2,042,927,138

 

1,494,718,240

 

216,713,774

           

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,667,060,561

 

5,102,423,583

 

739,781,880

             

 

 

 

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

Six Months Ended

 

Year Ended

 

 December 31, 2021

 

 December 31, 2022

 

 December 31, 2022

 

 December 31, 2021

 

 December 31, 2022

 

 December 31, 2022

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Revenues

                     

Leased-and-operated hotels

218,964,549

 

167,247,701

 

24,248,637

 

391,960,031

 

338,520,066

 

49,080,796

Franchised-and-managed hotels

378,752,785

 

315,230,064

 

45,704,063

 

774,359,348

 

590,769,611

 

85,653,542

Others

20,159,286

 

5,289,198

 

766,862

 

39,826,579

 

15,853,984

 

2,298,612

Total revenues

617,876,620

 

487,766,963

 

70,719,562

 

1,206,145,958

 

945,143,662

 

137,032,950

                       

Operating costs and expenses

                     

Hotel operating costs

(364,709,605)

 

(286,269,294)

 

(41,505,146)

 

(651,376,905)

 

(594,019,322)

 

(86,124,706)

Selling and marketing expenses

(27,100,297)

 

(19,681,821)

 

(2,853,596)

 

(66,921,718)

 

(38,534,427)

 

(5,586,967)

General and administrative expenses

(129,158,435)

 

(111,154,498)

 

(16,115,887)

 

(256,160,262)

 

(210,878,900)

 

(30,574,566)

Other operating expenses

(791,335)

 

(1,196,121)

 

(173,421)

 

(4,937,625)

 

(3,244,855)

 

(470,460)

Other general expenses

(99,886,003)

 

(65,041,046)

 

(9,430,066)

 

(99,886,003)

 

(555,660,756)

 

(80,563,237)

Total operating costs and expenses

(621,645,675)

 

(483,342,780)

 

(70,078,116)

 

(1,079,282,513)

 

(1,402,338,260)

 

(203,319,936)

                       

Other operating income

7,006,346

 

15,531,491

 

2,251,855

 

27,059,935

 

19,448,889

 

2,819,824

Income from operations

3,237,291

 

19,955,674

 

2,893,301

 

153,923,380

 

(437,745,709)

 

(63,467,162)

                       

Interest income and other, net

30,691,771

 

23,653,803

 

3,429,479

 

59,974,418

 

47,383,941

 

6,870,026

Interest expense

(5,193,460)

 

(10,197,236)

 

(1,478,460)

 

(12,671,385)

 

(25,375,848)

 

(3,679,152)

Gains (loss) from investment in equity securities

(34,735,461)

 

(83,843,819)

 

(12,156,211)

 

9,137,875

 

(62,156,235)

 

(9,011,807)

Other income (expense), net

11,818,559

 

9,564,918

 

1,386,782

 

11,818,559

 

24,229,535

 

3,512,952

Income before income taxes

5,818,700

 

(40,866,660)

 

(5,925,109)

 

222,182,847

 

(453,664,316)

 

(65,775,143)

                       

Income tax expense

(38,349,089)

 

(5,774,279)

 

(837,191)

 

(108,888,883)

 

46,026,416

 

6,673,203

Income (loss) before share of gains in equity investees

(32,530,389)

 

(46,640,939)

 

(6,762,300)

 

113,293,964

 

(407,637,900)

 

(59,101,940)

                       

Share of losses (gains) in equity investees, net of tax

(81,023)

 

(1,673,426)

 

(242,624)

 

382,874

 

(1,598,301)

 

(231,732)

Net income (loss)

(32,611,412)

 

(48,314,365)

 

(7,004,924)

 

113,676,838

 

(409,236,201)

 

(59,333,672)

                       

Net loss attributable to non-controlling interests

(1,178,321)

 

(440,831)

 

(63,915)

 

3,761,411

 

32,849,513

 

4,762,732

Net income (loss) attributable to ordinary shareholders

(33,789,733)

 

(48,755,196)

 

(7,068,839)

 

117,438,249

 

(376,386,688)

 

(54,570,940)

                       

Net earnings (losses) per share

                     

Class A ordinary share-basic and diluted

(0.33)

 

(0.48)

 

(0.07)

 

1.14

 

(4.00)

 

(1.00)

Class B ordinary share-basic and diluted

(0.33)

 

(0.48)

 

(0.07)

 

1.14

 

(4.00)

 

(1.00)

                       

Net earnings (losses) per ADS

                     

Class A ordinary share-basic and diluted

(0.33)

 

(0.48)

 

(0.07)

 

1.14

 

(4.00)

 

(1.00)

Class B ordinary share-basic and diluted

(0.33)

 

(0.48)

 

(0.07)

 

1.14

 

(4.00)

 

(1.00)

                       

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

(5,123,691)

 

(4,418,802)

 

(640,666)

 

(6,497,403)

 

(14,148,803)

 

(2,051,384)

Unrecognized gain on an available-for-sale

2,791,663

         

2,791,663

       

Comprehensive income, net of tax

(34,943,440)

 

(52,733,167)

 

(7,645,590)

 

109,971,098

 

(423,385,004)

 

(61,385,056)

                       

Comprehensive loss/(income) attributable to non-controlling interests

(1,178,321)

 

(440,831)

 

(63,915)

 

3,761,411

 

32,849,513

 

4,762,732

Comprehensive income (loss) attributable to ordinary shareholders

(36,121,761)

 

(53,173,998)

 

(7,709,505)

 

113,732,509

 

(390,535,491)

 

(56,622,324)

 

 

 

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

 

Six Months Ended

 

Year Ended

 

December 31, 2021

 

December 31, 2022

 

December 31, 2022

 

December 31, 2021

 

December 31, 2022

 

December 31, 2022

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Operating activities:

                     

Net (loss) income

(32,611,412)

 

(48,314,364)

 

(7,004,924)

 

113,676,838

 

(409,236,200)

 

(59,333,672)

                       

Adjustments to reconcile net income to net cash provided by operating activities:

                     

Depreciation and amortization

57,672,812

 

47,626,699

 

6,905,222

 

98,110,657

 

109,873,526

 

15,930,164

Share of losses (gains) in equity method investments

81,023

 

1,673,426

 

242,624

 

(382,874)

 

1,598,301

 

231,732

Fair value change in returnable consideration and contingent consideration, net

502,712

 

-

 

-

 

-

 

-

 

-

Impairment of long lived assets

-

 

4,093,856

 

593,553

 

-

 

60,306,705

 

8,743,650

Impairment of goodwill

-

 

-

 

-

 

-

 

91,236,480

 

13,228,046

Lease expense to reduce operating lease right-of-use assets

-

 

117,457,324

 

17,029,711

 

-

 

224,536,299

 

32,554,703

Losses from disposal of a subsidiary

118,443

 

2,172,131

 

314,929

 

118,443

 

16,117,056

 

2,336,753

Interest expense (income)

185,387

 

(581,841)

 

(84,359)

 

(3,669,643)

 

(844,175)

 

(122,394)

Bad debt expense

112,130,582

 

90,761,221

 

13,159,140

 

132,591,726

 

431,251,102

 

62,525,532

Losses (gains) on equity securities held

34,735,461

 

83,843,819

 

12,156,211

 

(9,137,875)

 

62,156,235

 

9,011,807

Losses (gains) on disposal of property and equipment

604,017

 

(1,262,840)

 

(183,095)

 

604,017

 

1,303,452

 

188,983

Foreign exchange (gains) losses

(3,817,988)

 

(8,738,690)

 

(1,266,991)

 

(1,310,346)

 

(20,675,691)

 

(2,997,693)

Share-based compensation

1,156,897

 

(333,495)

 

(48,352)

 

2,464,763

 

(62,356)

 

(9,041)

                       

Changes in operating assets and liabilities:

                     

Accounts receivable

10,517,268

 

(30,040,311)

 

(4,355,436)

 

(22,329,328)

 

(59,471,493)

 

(8,622,556)

Prepaid rent

12,339,868

 

-

 

-

 

(1,857,100)

 

-

 

-

Inventories

(184,470)

 

(717,583)

 

(104,040)

 

1,495,974

 

(793,081)

 

(114,986)

Amounts due from related parties

(90,009)

 

(288,549)

 

(41,836)

 

(3,963,547)

 

(3,141,469)

 

(455,470)

Other current assets

63,374,516

 

21,755,522

 

3,154,254

 

(60,345,480)

 

31,867,577

 

4,620,364

Other assets

(41,429,370)

 

(9,218,002)

 

(1,336,485)

 

(49,214,290)

 

(2,349,148)

 

(340,594)

Accounts payable

6,034,473

 

119,116

 

17,270

 

4,520,260

 

574,260

 

83,260

Amounts due to related parties

4,174,716

 

3,357,608

 

486,807

 

6,332,374

 

4,282,327

 

620,879

Salary and welfare payable

3,317,608

 

5,512,596

 

799,251

 

8,586,978

 

10,100,358

 

1,464,414

Deferred revenue

(29,392,677)

 

(28,933,976)

 

(4,195,032)

 

(53,595,903)

 

(75,948,621)

 

(11,011,515)

Advance from customers

11,912,861

 

(5,188,318)

 

(752,235)

 

5,468,230

 

(16,334,755)

 

(2,368,317)

Accrued expenses and other current liabilities

19,157,025

 

32,079,022

 

4,651,023

 

71,545,537

 

88,799,911

 

12,874,777

Income tax payable

19,455,752

 

54,801,507

 

7,945,472

 

(16,586,604)

 

3,241,384

 

469,957

Unrecognized tax benefits

16,740,521

 

(19,550,080)

 

(2,834,495)

 

38,140,379

 

17,841,769

 

2,586,813

Operating lease liabilities-current

-

 

(94,414,058)

 

(13,688,752)

 

-

 

(155,079,217)

 

(22,484,373)

Deferred rent

25,367,526

 

-

 

-(2,079,175)

 

40,770,544

 

-

 

-

Other long-term liabilities

415,356

 

30,462

 

4,417

 

14,648,804

 

(6,594,188)

 

(956,067)

Deferred taxes

25,603,045

 

(66,708,805)

 

(9,671,868)

 

44,292,605

 

(122,848,777)

 

(17,811,398)

Net cash provided by operating activities

318,071,943

 

150,993,397

 

21,891,984

 

360,975,140

 

281,707,571

 

40,843,758

                       

Investing activities:

                     

Purchases of property and equipment

(183,826,691)

 

(40,177,940)

 

(5,825,254)

 

(341,715,516)

 

(69,012,279)

 

(10,005,840)

Purchases of intangible assets

(201,746)

 

(47,813)

 

(6,932)

 

(201,746)

 

(108,028)

 

(15,663)

Proceeds from disposal of property and equipment

-

 

2,388,399

 

346,285

 

-

 

2,388,399

 

346,285

Payment for acquisition of minority equity

(149,999)

 

-

 

-

 

(1,018,387)

 

-

 

-

Acquisitions, net of cash received

25,520,300

 

-

 

-

 

(147,608,325)

 

-

 

-

Advances for acquisitions

(39,483,494)

 

-

 

-

 

(39,483,494)

 

-

 

-

Collection of acquisition advances

2,006,500

 

-

 

-

 

12,154,500

 

-

 

-

Advances for purchases of property and equipment

(14,456,878)

 

-

 

-

 

(219,346,261)

 

-

 

-

Repayment from advances for purchases of property and equipment

22,400,000

 

3,247,390

 

470,827

 

22,400,000

 

3,247,390

 

470,827

Purchases of short-term investments

(239,902,771)

 

(82,900,000)

 

(12,019,370)

 

(378,189,081)

 

(131,760,000)

 

(19,103,404)

Proceeds from short-term investments

179,648,202

 

127,788,611

 

18,527,607

 

536,383,232

 

517,528,048

 

75,034,514

Proceeds from sales of long-term time deposits

-

 

-

 

-

 

50,000,000

 

-

 

-

Increase of long-term time deposits

-

 

-

 

-

 

(130,000,000)

 

-

 

-

Purchases of investments in equity securities

(8,940,000)

 

-

 

-

 

(8,940,000)

 

-

 

-

Proceeds from disposal of subsidiaries

1,693,391

 

79,666,587

 

11,550,569

 

1,693,391

 

79,666,587

 

11,550,569

Proceeds from disposal of equity securities

72,697,479

 

-

 

-

 

284,004,591

 

116,555,911

 

16,899,019

Proceeds from disposal of euqity method investments

-

 

-

 

-

 

1,693,391-

 

-

 

-

Loan to related parties

(372,873,382)

 

(5,735,802)

 

(831,613)

 

(604,618,942)

 

(171,055,802)

 

(24,800,760)

Repayment from related parties

159,268,000

 

1,991,517

 

288,743

 

307,933,500

 

47,599,184

 

6,901,233

Loan to third parties

(26,444,271)

 

-

 

-

 

(36,944,271)

 

(266,200)

 

(38,595)

Repayment from third parties

8,627,367

 

-

 

-

 

55,127,367

 

1,638,833

 

237,608

Loan to franchisees

37,036,266

 

(12,478,780)

 

(1,809,253)

 

(423,399,028)

 

(47,760,740)

 

(6,924,656)

Repayment from franchisees

(50,293,914)

 

42,622,068

 

6,179,619

 

133,380,285

 

90,302,936

 

13,092,695

Net cash (used in) provided by investing activities

(427,675,642)

 

116,364,237

 

16,871,228

 

(928,388,186)

 

438,964,239

 

63,643,832

                       

Financing activities:

                     

Distribution to the shareholders

(320,253,160)

 

-

 

-

 

(320,253,160)

 

(40,999,458)

 

(5,944,363)

Loan from non-controlling interest

6,897,050

 

4,803,299

 

696,413

 

9,689,903

 

5,103,299

 

739,909

Repayment of bank loans

(250,000,000)

 

(250,100,000)

 

(36,261,091)

 

(250,000,000)

 

(406,200,000)

 

(58,893,464)

Proceeds from bank loans

668,000,000

 

85,000,000

 

12,323,842

 

808,000,000

 

99,800,000

 

14,469,640

Capital contribution from non-controlling interest holders

1,160,000

 

-

 

-

 

8,191,000

 

400,000

 

57,995

Net cash generated from (used in) financing activities

105,803,890

 

(160,296,701)

 

(23,240,836)

 

255,627,743

 

(341,896,159)

 

(49,570,283)

                       

Effect of exchange rate changes on cash and cash equivalents and restricted cash

50,892

 

510,712

 

74,046

 

(1,344,197)

 

1,072,948

 

155,563

Net increase(decrease)  increase in cash and cash equivalents and restricted cash

(3,748,917)

 

107,571,645

 

15,596,422

 

(313,129,500)

 

379,848,599

 

55,072,870

Cash and cash equivalents and restricted cash at the beginning of the period

324,347,526

 

592,875,563

 

85,958,876

 

633,728,109

 

320,598,609

 

46,482,429

Cash and cash equivalents and restricted cash at the end of the period

320,598,609

 

700,447,208

 

101,555,298

 

320,598,609

 

700,447,208

 

101,555,299

 

 

 

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

 
 
 

Six Months Ended

 

Year Ended

 

 Dec 31, 2021

 

 Dec 31, 2022

 

 Dec 31, 2022

 

 Dec 31, 2021

 

 Dec 31, 2022

 

 Dec 31, 2022

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Net income

(32,611,412)

 

(48,314,365)

 

(7,004,924)

 

113,676,838

 

(409,236,201)

 

(59,333,672)

                       

Deduct:

                     

Other operating income

7,006,346

 

15,531,491

 

2,251,855

 

27,059,935

 

19,448,889

 

2,819,824

Interest income and other, net

30,691,771

 

23,653,803

 

3,429,479

 

59,974,418

 

47,383,941

 

6,870,026

Gains from investment in equity securities

(34,735,461)

         

9,137,875

       

Share of gain in equity investees, net of tax 

(81,023)

         

382,874

       

Other income, net

11,818,559

 

9,564,918

 

1,386,783

 

11,818,559

 

24,229,535

 

3,512,952

                       

Add:

                     

Other operating expenses

791,335

 

1,196,121

 

173,421

 

4,937,625

 

3,244,855

 

470,460

Other general expenses

95,362,000

 

65,041,046

 

9,430,065

 

95,362,000

 

555,660,756

 

80,563,237

Income tax expense 

38,349,089

 

5,774,279

 

837,192

 

108,888,883

 

(46,026,416)

 

(6,673,203)

Interest expense

5,193,460

 

10,197,236

 

1,478,460

 

12,671,385

 

25,375,848

 

3,679,152

Depreciation and amortization 

57,672,811

 

47,626,699

 

6,905,222

 

98,110,656

 

109,873,526

 

15,930,164

Losses from investment in equity securities

   

83,843,819

 

12,156,211

     

62,156,235

 

9,011,807

Share of loss in equity investees, net of tax 

   

1,673,426

 

242,624

     

1,598,301

 

231,732

Adjusted EBITDA(Non-GAAP)

150,057,091

 

118,288,048

 

17,150,155

 

325,273,726

 

211,584,538

 

30,676,874

                       
 

Six Months Ended

 

Year Ended

 

 Dec 31, 2021

 

 Dec 31, 2022

 

 Dec 31, 2022

 

 Dec 31, 2021

 

 Dec 31, 2022

 

 Dec 31, 2022

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Net income

(32,611,412)

 

(48,314,365)

 

(7,004,924)

 

113,676,838

 

(409,236,201)

 

(59,333,672)

                       

Deduct:

                     

Government subsidies (net of 25% tax)

1,610,283

 

7,348,561

 

1,065,441

 

12,745,155

 

8,599,626

 

1,246,829

Gains from investment in equity securities (net of 25% tax)

           

6,853,406

       

Other income (net of 25% tax)

8,863,919

 

7,173,688

 

1,040,087

 

8,863,919

 

18,172,151

 

2,634,714

                       

Add:

                     

Share-based compensation

1,156,897

 

(333,495)

 

(48,352)

 

2,464,762

 

(62,356)

 

(9,041)

Losses from investments in equity securities (net of 25% tax)

26,051,596

 

62,882,864

 

9,117,158

 

-

 

46,617,176

 

6,758,855

One-time fees and expense 

9,861,631

 

2,919,456

 

423,281

 

24,568,935

 

7,387,383

 

1,071,070

Asset impairment/Accrued bad debts

(4,523,574)

 

65,041,046

 

9,430,065

 

-

 

555,660,756

 

80,563,237

Core net income(Non-GAAP)

(10,539,064)

 

67,673,256

 

9,811,700

 

112,248,055

 

173,594,980

 

25,168,906

                       

Core net income per ADS (Non-GAAP)

                     

Class A ordinary share-basic and diluted

(0.10)

 

0.66

 

0.10

 

1.09

 

1.70

 

0.25

Class B ordinary share-basic and diluted

(0.10)

 

0.66

 

0.10

 

1.09

 

1.70

 

0.25

 

 

Operational Data  

 

Decemebr 31, 2021 

December 31, 2022

Total hotels in operation:

4,659

4,059

  Leased and owned hotels

66

61

  Franchised hotels

4,593

3,998

Total hotel rooms in operation

337,153

302,497

  Leased and owned hotels

7,064

6,565

  Franchised hotels

330,089

295,932

Number of cities

367

355

     
     
 

Quarter Ended

2021 Q3

2022Q3

 Occupancy rate (as a percentage)

   

 Leased-and-owned hotels

65.2 %

63.0 %

 Franchised hotels

72.6 %

71.3 %

 Blended

72.4 %

71.1 %

 Average daily rate (in RMB)

   

 Leased-and-owned hotels

223

 

237

 Franchised hotels

161

 

167

 Blended

163

 

168

RevPAR (in RMB)

   

 Leased-and-owned hotels

 

146

 

149

 Franchised hotels

117

 

119

 Blended

118

 

120

     
 

Quarter Ended

2021 Q4

2022Q4

 Occupancy rate (as a percentage)

   

 Leased-and-owned hotels

60.9 %

62.4 %

 Franchised hotels

69.5 %

63.0 %

 Blended

69.2 %

63.0 %

 Average daily rate (in RMB)

   

 Leased-and-owned hotels

224

 

208

 Franchised hotels

168

 

163

 Blended

170

165

RevPAR (in RMB)

   

 Leased-and-owned hotels

136

 

130

 Franchised hotels

117

 

103

 Blended

117

 

104

 

 

 

Number of Hotels in Operation

Number of Hotel Rooms in Operation

 

December 31, 2021

December 31, 2022

December 31, 2021

December 31, 2022

Luxury

33

-

6,265

-

Argyle

33

-

6,265

-

 Mid-to-up-scale

519

426

47,666

41,255

 GreenTree Eastern

204

205

22,246

22,492

 Deepsleep Hotel

6

7

417

534

 Gem

46

53

4,173

4,753

 Gya

62

68

5,302

5,811

 Vx

79

85

7,021

7,403

Ausotel

18

-

2,237

-

Urban Garden and others

104

8

6,270

262

 Mid-scale

2,932

2,953

230,750

231,835

 GreenTree Inn

2,169

2,226

178,849

183,116

 GT Alliance

515

538

36,802

38,031

 GreenTree Apartment

16

19

1,098

1,262

Vatica 

112

111

8,115

8,009

City 118 Selected and others

120

59

5,886

1,417

 Economy hotels

1,175

680

52,472

29,407

Shell

650

680

28,196

29,407

City 118 and others

525

-

24,276

-

Total

4,659

4,059

337,153

302,497

 

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: jxu@christensenir.com

In Hong Kong 
Ms. Karen Hui 
Phone: +852-9266-4140 
E-mail: khui@christensenIR.com

In US 
Ms. Linda Bergkamp 
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

 


 

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 6.8972 on December 31, 2022 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 the provision for bad debts, 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 abovementioned definition.

3 Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), one-time fees and expense and asset impairment/accrued bad debts, and income tax expenses related to withholding tax, 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).

4 Tier 1 Cities refers to Beijing, Shanghai, Shenzhen and Guangzhou; Tier 2 Cities refers to the 32 major cities, other than Tier 1 Cities, including provincial capitals, administrative capitals of autonomous regions, direct-controlled municipalities and other major cities designated as municipalities with independent planning by the State Council.

SOURCE GreenTree Hospitality Group Ltd.