GreenTree Hospitality Group Ltd. Reports Second Quarter of 2024 Financial Results
-
Total revenues decreased by 20.5% year over year to RMB 329.7million (
US$45.4 million )[1]. -
Income from operations was RMB
84
.
4
million (
US$1 1.6 million) [1] compared to RMB 98.6 million for the second quarter of 2023. - Net income was RMB 62 .3 million (US$ 8 . 6 million) [1] compared to RMB 101 . 9 million for the second quarter of 2023.
- Adjusted EBITDA (non-GAAP) [2] decreased 34.5% year over year to RMB83.1 million (US$11.4 million)[1].
- Core net income (non-GAAP) [3] increased 2.4% year over year to RMB70.2million (US$9.7 million)[1]
[1].The conversion of Renminbi ("RMB") into |
[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). |
Second Quarter of 202 4 Operational Highlights
Hotels
- A total of 4,272 hotels with 312,734 hotel rooms were in operation as of
June 30, 2024 . - The Company opened 44 hotels and had a pipeline of 1,022 hotels contracted for or under development as of
June 30, 2024 . - The average daily room rate was
RMB173 , a decrease of 4.3% from RMB181 in the second quarter of 2023. - The occupancy rate was 72.5%, down from 77.8% in the second quarter of 2023.
- Revenue per available room, or RevPAR, was
RMB125 , a 10.8% year-over-year decrease.
Restaurants
- A total of 183 restaurants were in operation as of
June 30, 2024 . - The AC (average check) was
RMB53 , a 6.0% year-over-year decrease. - The ADT (average daily tickets) was 90, down from 109 in the second quarter of 2023.
- The ADS (average daily sales per store) was
RMB4,737 , a decrease of 22.1% fromRMB6 ,082 in the second quarter of 2023.
"In the second quarter, we faced challenges as
We continued to execute on our strategy to return our restaurant business to profitability by moving away from leased-and-operated restaurants in supermarkets and regional shopping centers towards franchised street stores. As a result, the net income turned positive this quarter after breaking even last quarter compared to losses in both corresponding quarters a year ago. Our focus is now fully on growing the number of franchised street stores and stores with stable consumer traffic," said Mr.
Second Quarter Of 202 4 Financial Results
|
Quarter Ended |
|||
|
June 30, 202 3 |
|
|
|
|
RMB |
RMB |
RMB |
RMB |
|
Hotel |
Restaurant |
Elimination |
Total |
Revenues |
|
|
|
|
Leased-and-operated revenues |
131,490,687 |
78,963,181 |
(565,963) |
209,887,905 |
Franchised-and-managed |
177,936,543 |
2,201,340 |
- |
180,137,883 |
Wholesales and others |
1,188,730 |
23,775,051 |
- |
24,963,781 |
Total revenues |
310,615,960 |
104,939,572 |
(565,963) |
414,989,569 |
|
Quarter Ended |
||||
|
|
|
|
|
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
Hotel |
Restaurant |
Elimination |
Total |
Total |
Revenues |
|
|
|
|
|
Leased-and-operated |
105,851,820 |
43,306,857 |
- |
149,158,677 |
20,524,917 |
Franchised-and-managed |
157,810,770 |
2,234,412 |
- |
160,045,182 |
22,022,950 |
Wholesales and others |
940,479 |
19,752,299 |
(184,981) |
20,507,797 |
2,821,967 |
Total revenues |
264,603,069 |
65,293,568 |
(184,981) |
329,711,656 |
45,369,834 |
|
Six Month Ended |
|||
|
|
|
|
|
|
RMB |
RMB |
RMB |
RMB |
|
Hotel |
Restaurant |
Elimination |
Total |
Revenues |
|
|
|
|
Leased-and-operated |
213,563,927 |
168,340,074 |
(1,125,179) |
380,778,822 |
Franchised-and-managed |
347,417,000 |
3,165,259 |
- |
350,582,259 |
Wholesales and others |
2,225,579 |
60,623,330 |
- |
62,848,909 |
Total revenues |
563,206,506 |
232,128,663 |
(1,125,179) |
794,209,990 |
|
Six Month Ended |
||||
|
|
|
|
|
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
Hotel |
Restaurant |
Elimination |
Total |
Total |
Revenues |
|
|
|
|
|
Leased-and-operated |
228,393,613 |
89,674,836 |
- |
318,068,449 |
43,767,675 |
Franchised-and-managed |
308,970,282 |
3,769,753 |
- |
312,740,035 |
43,034,461 |
Wholesales and others |
2,085,206 |
49,505,598 |
(460,202) |
51,130,602 |
7,035,805 |
Total revenues |
539,449,101 |
142,950,187 |
(460,202) |
681,939,086 |
93,837,941 |
Total revenues were
Hotel revenues of 2024 were
Restaurant revenues were of 2024 RMB65.3 million (
Total revenues for the first half of 2024 were
Total revenues from leased-and-operated, or L&O, hotels
and restaurants were
Total revenues from L&O hotels were
Total revenues from L&O restaurants were
Total revenues from L&O hotels and restaurants for the first half of 2024 were RMB318.1 million (
Total revenues from franchised-and-managed, or F&M, hotels
and restaurants were
Total revenues from F&M hotels were
Total revenues from F&M restaurants were
Total revenues from F&M hotels and restaurants for the first half of 2024 were RMB312.7 million (
Total revenues from
wholesale and others were
Total revenues from wholesale and others for the first half of 2024 were RMB51.1 million (
Total operating costs and expenses
|
Quarter Ended |
|||
|
June 30, 2023 |
|
|
|
|
RMB |
RMB |
RMB |
RMB |
|
Hotel |
Restaurant |
Elimination |
Total |
Operating costs and |
|
|
|
|
Operating costs |
150,127,380 |
95,088,176 |
(308,417) |
244,907,139 |
Selling and marketing |
13,762,606 |
4,446,065 |
- |
18,208,671 |
General and administrative |
44,443,478 |
9,675,734 |
- |
54,119,212 |
Other operating expenses |
692,344 |
5,649,391 |
- |
6,341,735 |
Other general expenses |
4,309,239 |
- |
- |
4,309,239 |
Total operating costs and |
213,335,047 |
114,859,366 |
(308,417) |
327,885,996 |
|
Quarter Ended |
||||
|
|
|
|
|
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
Hotel |
Restaurant |
Elimination |
Total |
Total |
Operating costs and |
|
|
|
|
|
Operating costs |
143,382,640 |
55,127,026 |
(184,981) |
198,324,685 |
27,290,385 |
Selling and marketing |
13,222,891 |
2,636,823 |
- |
15,859,714 |
2,182,369 |
General and |
54,927,567 |
6,606,681 |
- |
61,534,248 |
8,467,394 |
Other operating |
271,943 |
(60,032) |
- |
211,911 |
29,160 |
Other general |
5,911,956 |
- |
- |
5,911,956 |
813,512 |
Total operating costs |
217,716,997 |
64,310,498 |
(184,981) |
281,842,514 |
38,782,820 |
|
Six Month Ended |
|||
|
June 30, 2023 |
|
|
|
|
RMB |
RMB |
RMB |
RMB |
|
Hotel |
Restaurant |
Elimination |
Total |
Operating costs and |
|
|
|
|
Operating costs |
284,364,378 |
204,308,159 |
(610,088) |
488,062,449 |
Selling and marketing |
24,838,605 |
9,385,645 |
- |
34,224,250 |
General and administrative |
90,535,547 |
21,338,810 |
- |
111,874,357 |
Other operating expenses |
843,564 |
6,990,654 |
- |
7,834,218 |
Other general expenses |
15,973,584 |
- |
- |
15,973,584 |
Total operating costs and |
416,555,678 |
242,023,268 |
(610,088) |
657,968,858 |
|
Six Month Ended |
||||
|
June 30, 2024 |
June 30, 2024 |
June 30, 2024 |
June 30, 2024 |
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
Hotel |
Restaurant |
Elimination |
Total |
Total |
Operating costs and |
|
|
|
|
|
Operating costs |
289,609,282 |
117,276,623 |
(440,869) |
406,445,036 |
55,928,698 |
Selling and marketing |
28,677,514 |
5,591,136 |
(19,333) |
34,249,317 |
4,712,863 |
General and |
93,397,198 |
15,778,679 |
- |
109,175,877 |
15,023,101 |
Other operating |
938,244 |
1,481,949 |
- |
2,420,193 |
333,030 |
Other general |
11,756,531 |
- |
- |
11,756,531 |
1,617,753 |
Total operating costs |
424,378,769 |
140,128,387 |
(460,202) |
564,046,954 |
77,615,445 |
Operating costs were RMB 198.3 million (
Operating costs of the hotel business were
Operating costs of the restaurant business were
For the first half of 2024, operating costs were RMB406.4 million (
Selling and marketing expenses were
Selling and marketing expenses of the hotel business were
Selling and marketing expenses of the restaurant business were
For the first half of 2024, selling and marketing expenses were RMB34.2 million (
General and administrative, or G&A expenses were
G&A expenses of the hotel business were
G&A expenses of the restaurant business were
General and administrative expenses for the first half of 2024 were RMB109.2 million (
Other general expenses were
Other general expenses for the first half of 2024 were RMB11.8 million (
Gross profit was
Income from operations was
Income from operations of the hotel business was
Income from operations of the restaurant business was
Income from operations for the first half of 2024 was RMB156.7 million (
Net income was
Net income of the hotel business was
Net income of the restaurant business of 2024 was RMB3.7 million (
Net income for the first half of 2024 was RMB 119.6million (
Adjusted EBITDA (non-GAAP)
[2] in the second quarter of 2024 was
Adjusted EBITDA (non-GAAP)[2] for the first half of 2024 was RMB 192.5 million (
Core net income
(non-GAAP)
[
3
] in the second quarter of 2024 was RMB 70.2 million (
Core net income (non-GAAP)[3] for the first half of 2024 was RMB 130.9 million (
Earnings per American Depositary Share, or ADS, (basic and diluted) were
Earnings per American Depositary Share, or ADS, (basic and diluted) for the first half of 2024 were
Core net income per ADS (basic and diluted) (non-GAAP) was
Core net income per ADS (basic and diluted) (non-GAAP) was RMB1.29 (
Cash flow Operating cash inflow was
C
ash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of
Guidance
Considering our performance during the first half of the year and the impact of closing certain L&O hotels due to lease expirations and strategic decisions, we have revised our revenue guidance for the hotel business. We now anticipate its performance in 2024 to remain flat compared to 2023.
The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.
Dividend distribution
The board of directors has approved the payment of a cash dividend of
Conference Call
GreenTree's management will hold an earnings conference call at
Dial-in numbers for the live conference call are as follows:
International |
1-412-902-4272 |
Mainland |
4001-201-203 |
US |
1-888-346-8982 |
Hong Kong |
800-905-945 or 852-3018-4992 |
|
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
Dial-in numbers for the replay are as follows:
International Dial-in |
1-412-317-0088 |
|
1-877-344-7529 |
Canada Toll Free |
855-669-9658 |
Passcode: |
2914023 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.
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
The terms Adjusted EBITDA and core net income are not defined under
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 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
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
Financial Tables and Operational Data Follow
GreenTree Hospitality Group Ltd. |
|||
Unaudited Condensed Consolidated Balance Sheets |
|||
|
December 31 |
June 30 |
June 30 |
|
2,023 |
2,024 |
2,024 |
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
765,547,547 |
1,374,876,965 |
189,189,367 |
Restricted cash |
6,576,906 |
7,450,696 |
1,025,250 |
Short-term investments |
417,711,617 |
33,612 |
4,625 |
Investments in equity securities |
26,076,169 |
20,161,988 |
2,774,382 |
Accounts receivable, net of |
123,887,879 |
121,134,755 |
16,668,697 |
Amounts due from related parties |
19,928,781 |
20,078,953 |
2,762,956 |
Prepaid rent |
- |
- |
- |
Inventories |
20,462,490 |
6,309,470 |
868,212 |
Other current assets |
117,047,122 |
121,704,746 |
16,747,130 |
Loans receivable, net |
129,521,094 |
96,796,622 |
13,319,658 |
Deferred tax assets |
- |
- |
- |
Total current assets |
1,626,759,605 |
1,768,547,807 |
243,360,277 |
|
|
|
|
Non-current assets: |
|
|
|
Amounts due from a related party |
110,000,000 |
110,000,000 |
15,136,504 |
Restricted cash |
19,476,259 |
19,315,343 |
2,657,880 |
Long-term time deposits |
63,340,000 |
285,700,000 |
39,313,628 |
Loans receivable, net |
70,690,305 |
36,685,137 |
5,048,043 |
Property and equipment, net |
814,949,026 |
669,043,887 |
92,063,503 |
Intangible assets, net |
117,720,693 |
115,281,993 |
15,863,330 |
Goodwill |
177,082,468 |
177,082,468 |
24,367,358 |
Long-term investments |
184,758,800 |
175,521,257 |
24,152,528 |
Operating lease right-of-use |
1,535,330,762 |
1,444,254,641 |
198,736,052 |
Other assets |
104,725,600 |
103,294,642 |
14,213,815 |
Deferred tax assets |
241,965,360 |
218,658,563 |
30,088,419 |
TOTAL ASSETS |
5,066,798,878 |
5,123,385,738 |
705,001,337 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Long-term bank loans, current |
200,000 |
400,000 |
55,042 |
Short-term bank loans |
116,800,000 |
- |
- |
Accounts payable |
73,126,677 |
53,525,451 |
7,365,347 |
Advance from customers |
22,393,097 |
21,975,810 |
3,023,972 |
Amounts due to related parties |
16,310,293 |
14,905,639 |
2,051,084 |
Salary and welfare payable |
86,332,096 |
84,908,037 |
11,683,735 |
Deferred rent |
- |
- |
- |
Deferred revenue |
186,281,838 |
178,834,473 |
24,608,442 |
Accrued expenses and other |
459,832,717 |
466,056,353 |
64,131,488 |
Income tax payable |
112,782,712 |
104,521,389 |
14,382,622 |
Dividends payable |
- |
- |
- |
Operating lease liabilities, current |
267,536,846 |
263,079,422 |
36,200,933 |
Deferred tax liabilities |
- |
- |
- |
Total current liabilities |
1,341,596,276 |
1,188,206,574 |
163,502,665 |
|
|
|
|
Long-term bank loans |
56,800,000 |
256,400,000 |
35,281,814 |
Deferred rent |
- |
- |
- |
Deferred revenue |
207,905,769 |
183,650,198 |
25,271,108 |
Other long-term liabilities |
111,711,748 |
111,391,913 |
15,328,037 |
Operating lease liabilities, |
1,391,909,309 |
1,332,750,964 |
183,392,636 |
Deferred tax liabilities |
94,716,495 |
85,375,998 |
11,748,128 |
Unrecognized tax benefits |
382,125,786 |
375,929,696 |
51,729,648 |
TOTAL LIABILITIES |
3,586,765,383 |
3,533,705,343 |
486,254,036 |
|
|
|
|
Shareholders' equity: |
|
|
|
Class A ordinary shares |
222,587,070 |
222,587,070 |
30,629,000 |
Class B ordinary shares |
115,534,210 |
115,534,210 |
15,898,036 |
Paid-in capital |
- |
- |
- |
Treasury Stock |
(36,677,832) |
(36,677,832) |
(5,047,038) |
Additional paid-in capital |
1,680,713,349 |
1,680,178,673 |
231,200,280 |
Retained earnings (Accumulated |
(568,339,799) |
(447,752,894) |
(61,612,849) |
Accumulated other |
28,401,282 |
20,295,531 |
2,792,758 |
Total GreenTree Hospitality |
1,442,218,280 |
1,554,164,758 |
213,860,187 |
|
|
|
|
Non-controlling interests |
37,815,215 |
35,515,637 |
4,887,114 |
Total shareholders' equity |
1,480,033,495 |
1,589,680,395 |
218,747,301 |
|
|
|
|
TOTAL LIABILITIES AND |
5,066,798,878 |
5,123,385,738 |
705,001,337 |
|
||||||
Unaudited Condensed Consolidated Statements of Comprehensive Income |
||||||
|
Quarter Ended |
Six Month Ended |
||||
|
|
June 30, |
June 30, |
|
June 30, |
June 30, |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Revenues |
|
|
|
|
|
|
Leased-and-operated |
209,887,905 |
149,158,677 |
20,524,917 |
380,778,822 |
318,068,449 |
43,767,675 |
Franchised-and- |
180,137,883 |
160,045,182 |
22,022,950 |
350,582,259 |
312,740,035 |
43,034,461 |
Wholesales and |
24,963,781 |
20,507,797 |
2,821,967 |
62,848,909 |
51,130,602 |
7,035,805 |
Total revenues |
414,989,569 |
329,711,656 |
45,369,834 |
794,209,990 |
681,939,086 |
93,837,941 |
|
|
|
|
|
|
|
Operating costs |
|
|
|
|
|
|
Operating costs |
(244,907,139) |
(198,324,685) |
(27,290,385) |
(488,062,449) |
(406,445,036) |
(55,928,698) |
Selling and |
(18,208,671) |
(15,859,714) |
(2,182,369) |
(34,224,250) |
(34,249,317) |
(4,712,863) |
General and |
(54,119,212) |
(61,534,248) |
(8,467,394) |
(111,874,357) |
(109,175,877) |
(15,023,101) |
Other operating |
(6,341,735) |
(211,911) |
(29,160) |
(7,834,218) |
(2,420,193) |
(333,030) |
Other general |
(4,309,239) |
(5,911,956) |
(813,512) |
(15,973,584) |
(11,756,531) |
(1,617,753) |
Total operating |
(327,885,996) |
(281,842,514) |
(38,782,820) |
(657,968,858) |
(564,046,954) |
(77,615,445) |
|
|
|
|
|
|
|
Other operating |
11,511,398 |
36,542,303 |
5,028,388 |
14,670,917 |
38,768,236 |
5,334,687 |
Income from |
98,614,971 |
84,411,445 |
11,615,402 |
150,912,049 |
156,660,368 |
21,557,183 |
|
|
|
|
|
|
|
Interest income |
9,750,337 |
11,003,960 |
1,514,195 |
17,379,351 |
19,950,499 |
2,745,280 |
Interest expense |
(3,868,469) |
(2,629,228) |
(361,793) |
(9,396,530) |
(4,369,057) |
(601,203) |
Gains (losses) |
(263,836) |
(6,172,071) |
(849,305) |
(4,800,398) |
(15,424,655) |
(2,122,503) |
Other income, net |
43,295,830 |
3,556,454 |
489,384 |
41,146,248 |
16,791,024 |
2,310,522 |
Income before |
147,528,833 |
90,170,560 |
12,407,883 |
195,240,720 |
173,608,179 |
23,889,279 |
|
|
|
|
|
|
|
Income tax |
(45,241,208) |
(26,733,733) |
(3,678,684) |
(59,950,083) |
(53,181,694) |
(7,318,045) |
Income (loss) |
102,287,625 |
63,436,827 |
8,729,199 |
135,290,637 |
120,426,485 |
16,571,234 |
|
|
|
|
|
|
|
Share of |
(341,265) |
(1,174,966) |
(161,681) |
(786,883) |
(869,757) |
(119,683) |
Net income(loss) |
101,946,360 |
62,261,861 |
8,567,518 |
134,503,754 |
119,556,728 |
16,451,551 |
|
|
|
|
|
|
|
Net loss/(income)
non-controlling |
1,308,704 |
(571,587) |
(78,653) |
5,077,298 |
1,030,179 |
141,757 |
Net income |
103,255,064 |
61,690,274 |
8,488,865 |
139,581,052 |
120,586,907 |
16,593,308 |
|
|
|
|
|
|
|
Net earnings per |
|
|
|
|
|
|
Class A ordinary |
1.01 |
0.61 |
0.36 |
1.37 |
1.19 |
0.16 |
Class B ordinary |
1.01 |
0.61 |
0.36 |
1.37 |
1.19 |
0.16 |
|
|
|
|
|
|
|
Net earnings per |
|
|
|
|
|
|
Class A ordinary |
1.01 |
0.61 |
0.36 |
1.37 |
1.19 |
0.16 |
Class B ordinary |
1.01 |
0.61 |
0.36 |
1.37 |
1.19 |
0.16 |
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
Class A ordinary |
67,416,046 |
66,780,612 |
9,189,318 |
67,416,046 |
66,780,612 |
9,189,318 |
Class B ordinary |
34,762,909 |
34,762,909 |
4,783,535 |
34,762,909 |
34,762,909 |
4,783,535 |
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
Foreign currency |
185,533 |
(487,856) |
(67,131) |
996,107 |
(8,105,751) |
(1,115,388) |
Unrealized |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive |
102,131,893 |
61,774,005 |
8,500,387 |
135,499,861 |
111,450,977 |
15,336,163 |
|
|
|
|
|
|
|
Comprehensive |
(4,843,631) |
(571,587) |
(78,653) |
(1,075,037) |
1,030,179 |
141,757 |
Comprehensive |
97,288,262 |
61,202,418 |
8,421,734 |
134,424,824 |
112,481,156 |
15,477,920 |
|
||||||
|
||||||
|
Quarter Ended |
Six Month Ended |
||||
|
|
June 30, |
June 30, |
|
June 30, |
June 30, |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Revenues |
|
|
|
|
|
|
Leased-and-operated |
131,490,687 |
105,851,820 |
14,565,695 |
213,563,927 |
228,393,613 |
31,428,007 |
Franchised-and- |
177,936,543 |
157,810,770 |
21,715,485 |
347,417,000 |
308,970,282 |
42,515,726 |
Others |
1,188,730 |
940,479 |
129,414 |
2,225,579 |
2,085,206 |
286,934 |
Total revenues |
310,615,960 |
264,603,069 |
36,410,594 |
563,206,506 |
539,449,101 |
74,230,667 |
|
|
|
|
|
|
|
Operating costs |
|
|
|
|
|
|
Hotel operating |
(150,127,380) |
(143,382,640) |
(19,730,108) |
(284,364,378) |
(289,609,282) |
(39,851,563) |
Selling and |
(13,762,606) |
(13,222,891) |
(1,819,530) |
(24,838,605) |
(28,677,514) |
(3,946,157) |
General and |
(44,443,478) |
(54,927,567) |
(7,558,285) |
(90,535,547) |
(93,397,198) |
(12,851,882) |
Other operating |
(692,344) |
(271,943) |
(37,421) |
(843,564) |
(938,244) |
(129,107) |
Other general |
(4,309,239) |
(5,911,956) |
(813,512) |
(15,973,584) |
(11,756,531) |
(1,617,753) |
Total operating |
(213,335,047) |
(217,716,997) |
(29,958,856) |
(416,555,678) |
(424,378,769) |
(58,396,462) |
|
|
|
|
|
|
|
Other operating |
11,183,689 |
34,667,783 |
4,770,446 |
13,791,785 |
36,850,398 |
5,070,784 |
Income from |
108,464,602 |
81,553,855 |
11,222,184 |
160,442,613 |
151,920,730 |
20,904,989 |
|
|
|
|
|
|
|
Interest income |
9,597,042 |
10,978,362 |
1,510,673 |
17,072,340 |
19,908,718 |
2,739,531 |
Interest expense |
(3,167,262) |
(2,628,376) |
(361,677) |
(7,891,952) |
(4,369,058) |
(601,202) |
Gains (losses) |
(263,836) |
(1,474,720) |
(202,928) |
(4,800,398) |
(10,784,976) |
(1,484,062) |
Other income, |
43,122,904 |
3,404,139 |
468,425 |
40,696,364 |
16,709,039 |
2,299,240 |
Income before |
157,753,450 |
91,833,260 |
12,636,677 |
205,518,967 |
173,384,453 |
23,858,496 |
|
|
|
|
|
|
|
Income tax |
(43,365,471) |
(27,545,004) |
(3,790,319) |
(55,731,325) |
(52,101,925) |
(7,169,463) |
Income (loss) |
114,387,979 |
64,288,256 |
8,846,358 |
149,787,642 |
121,282,528 |
16,689,033 |
|
|
|
|
|
|
|
Share of |
(341,265) |
(1,174,966) |
(161,681) |
(786,883) |
(869,757) |
(119,683) |
Net |
114,046,714 |
63,113,290 |
8,684,677 |
149,000,759 |
120,412,771 |
16,569,350 |
|
||||||
Unaudited Restaurant Business Results |
||||||
|
Quarter Ended |
Six Month Ended |
||||
|
|
June 30, |
June 30, |
|
June 30, |
June 30, |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Revenues |
|
|
|
|
|
|
Leased-and-operated |
78,963,181 |
43,306,857 |
5,959,222 |
168,340,074 |
89,674,836 |
12,339,668 |
Franchised-and- |
2,201,340 |
2,234,412 |
307,465 |
3,165,259 |
3,769,753 |
518,735 |
Wholesales and |
23,775,051 |
19,752,299 |
2,718,007 |
60,623,330 |
49,505,598 |
6,812,197 |
Total revenues |
104,939,572 |
65,293,568 |
8,984,694 |
232,128,663 |
142,950,187 |
19,670,600 |
|
|
|
|
|
|
|
Operating costs |
|
|
|
|
|
|
Restaurant |
(95,088,176) |
(55,127,026) |
(7,585,731) |
(204,308,159) |
(117,276,623) |
(16,137,800) |
Selling and |
(4,446,065) |
(2,636,823) |
(362,839) |
(9,385,645) |
(5,591,136) |
(769,366) |
General and |
(9,675,734) |
(6,606,681) |
(909,110) |
(21,338,810) |
(15,778,679) |
(2,171,218) |
Other operating |
(5,649,391) |
60,032 |
8,261 |
(6,990,654) |
(1,481,949) |
(203,923) |
Other general |
- |
- |
- |
- |
- |
- |
Total operating |
(114,859,366) |
(64,310,498) |
(8,849,419) |
(242,023,268) |
(140,128,387) |
(19,282,307) |
|
|
|
|
|
|
|
Other operating |
327,709 |
1,874,520 |
257,943 |
879,132 |
1,917,838 |
263,903 |
Income from |
(9,592,085) |
2,857,590 |
393,218 |
(9,015,473) |
4,739,638 |
652,196 |
|
|
|
|
|
|
|
Interest income |
153,295 |
25,599 |
3,522 |
307,011 |
41,782 |
5,750 |
Interest expense |
(701,207) |
(853) |
(117) |
(1,504,578) |
- |
- |
Gains (losses) |
- |
(57,672) |
(7,936) |
- |
- |
- |
Other income, net |
172,926 |
43,236 |
5,949 |
449,884 |
(27,094) |
(3,728) |
Income before |
(9,967,071) |
2,867,900 |
394,636 |
(9,763,156) |
4,754,326 |
654,218 |
|
|
|
|
|
|
|
Income tax |
(1,940,124) |
811,271 |
111,635 |
(4,347,531) |
(1,079,769) |
(148,581) |
Income (loss) |
(11,907,195) |
3,679,171 |
506,271 |
(14,110,687) |
3,674,557 |
505,637 |
|
|
|
|
|
|
|
Share of |
- |
- |
- |
- |
- |
- |
Net |
(11,907,195) |
3,679,171 |
506,271 |
(14,110,687) |
3,674,557 |
505,637 |
|
||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||
|
Quarter Ended |
Six Month Ended |
||||
|
|
June 30, |
June 30, |
|
June 30, |
June 30, |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
Net (loss) |
101,946,360 |
62,261,861 |
8,567,518 |
134,503,754 |
119,556,728 |
16,451,551 |
|
|
|
|
|
|
|
Adjustments to |
|
|
|
|
|
|
Depreciation |
28,982,289 |
29,137,972 |
4,009,518 |
60,319,927 |
60,479,676 |
8,322,280 |
Impairment of |
- |
- |
- |
2,900,000 |
- |
- |
Share of |
341,265 |
1,174,966 |
161,681 |
786,883 |
869,757 |
119,683 |
Noncash lease |
70,769,259 |
72,411,404 |
9,964,141 |
134,823,091 |
137,229,448 |
18,883,400 |
Loss from |
- |
(839,682) |
(115,544) |
1,223,952 |
(839,682) |
(115,544) |
Interest income |
(1,267,532) |
(5,216,887) |
(717,868) |
(1,657,910) |
(5,216,887) |
(717,868) |
Bad debt |
6,320,196 |
16,294,501 |
2,242,198 |
18,679,474 |
21,768,072 |
2,995,386 |
(Gains) losses |
263,836 |
6,172,071 |
849,305 |
4,800,398 |
15,424,655 |
2,122,503 |
Loss (gains) on |
341,428 |
(27,468,283) |
(3,779,762) |
227,841 |
(25,116,235) |
(3,456,109) |
Foreign |
(2,075,742) |
(675,522) |
(92,955) |
(1,088,199) |
(8,763,951) |
(1,205,960) |
Share-based |
40,228 |
15,662 |
2,155 |
28,592 |
31,324 |
4,310 |
Common |
- |
- |
- |
- |
- |
- |
Accounts |
12,166,576 |
(9,573,578) |
(1,317,368) |
5,115,694 |
(7,729,151) |
(1,063,567) |
Inventories |
6,481,086 |
2,827,794 |
389,117 |
7,450,726 |
14,889,563 |
2,048,872 |
Amounts due |
2,589,713 |
697,431 |
95,970 |
1,628,528 |
299,828 |
41,258 |
Other current |
(27,171,354) |
10,574,968 |
1,455,164 |
(34,898,036) |
5,084,951 |
699,713 |
Other assets |
982,532 |
3,957,871 |
544,621 |
5,946,767 |
1,300,958 |
179,018 |
Accounts |
(14,607,485) |
(3,702,034) |
(509,417) |
(9,917,160) |
(12,560,243) |
(1,728,347) |
Amounts due to |
(47,036) |
471,776 |
64,919 |
(1,679,391) |
(1,404,655) |
(193,287) |
Salary and |
1,978,299 |
2,882,934 |
396,705 |
6,472,864 |
(1,424,059) |
(195,957) |
Deferred |
(1,377,240) |
(24,826,323) |
(3,416,216) |
(5,859,113) |
(31,702,936) |
(4,362,469) |
Advance from |
(7,260,648) |
3,539,512 |
487,053 |
(3,657,822) |
(417,287) |
(57,421) |
Accrued |
(8,464,829) |
20,530,026 |
2,825,026 |
67,807,146 |
(3,285,616) |
(452,116) |
Income tax |
32,970,813 |
(16,508,534) |
(2,271,650) |
51,282,274 |
(8,261,323) |
(1,136,796) |
Unrecognized |
16,935,503 |
(13,752,067) |
(1,892,347) |
31,960,399 |
(6,196,090) |
(852,610) |
Operating lease |
(68,614,626) |
(67,855,157) |
(9,337,180) |
(124,678,168) |
(109,769,095) |
(15,104,730) |
Other long-term |
(1,510,480) |
(7,223,642) |
(994,006) |
(8,081,365) |
(8,319,829) |
(1,144,847) |
Deferred taxes |
(3,137,502) |
13,855,962 |
1,906,644 |
(31,332,490) |
13,966,300 |
1,921,827 |
Net cash |
147,574,909 |
69,165,002 |
9,517,422 |
313,108,656 |
159,894,221 |
22,002,173 |
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
|
Purchases of |
(37,617,117) |
(9,639,401) |
(1,326,426) |
(71,733,234) |
(20,193,926) |
(2,778,777) |
Purchases of |
(309,827) |
- |
- |
(352,281) |
- |
- |
Proceeds from |
7,723,107 |
138,000,000 |
18,989,432 |
14,696,681 |
139,733,100 |
19,227,914 |
Payment for |
- |
(966,000) |
(132,926) |
- |
(966,000) |
(132,926) |
Purchases of |
(51,370,000) |
|
- |
(51,370,000) |
|
- |
Proceeds from |
42,242,806 |
- |
- |
133,643,184 |
419,362,037 |
57,706,137 |
Increase of |
- |
(222,230,000) |
(30,579,866) |
- |
(222,230,000) |
(30,579,866) |
Purchases of |
- |
222,230,000 |
30,579,866 |
- |
- |
- |
Proceeds from |
- |
- |
- |
- |
- |
- |
Proceeds from |
18,900,000 |
1,500,000 |
206,407 |
37,800,000 |
1,500,000 |
206,407 |
Loan to related |
- |
(270,000) |
(37,153) |
- |
(270,000) |
(37,153) |
Repayment |
- |
- |
- |
- |
- |
- |
Loan to third |
1,000,000 |
(1,200,000) |
(165,125) |
- |
(1,200,000) |
(165,125) |
Repayment of |
13,948,758 |
4,223,936 |
581,233 |
14,417,077 |
5,595,889 |
770,020 |
Loan to |
(2,945,000) |
(1,600,000) |
(220,167) |
(9,974,596) |
(1,600,000) |
(220,167) |
Repayment |
34,286,988 |
27,516,214 |
3,786,357 |
61,121,572 |
50,977,221 |
7,014,699 |
Net cash (used |
25,859,715 |
157,564,749 |
21,681,632 |
128,248,403 |
370,708,321 |
51,011,163 |
|
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
Distribution to |
- |
(760,321) |
(104,624) |
- |
(760,321) |
(104,624) |
Repayment of |
136,600,000 |
(200,000) |
(27,521) |
- |
(117,000,000) |
(16,099,736) |
Proceeds from |
(271,400,000) |
- |
- |
(154,400,000) |
200,000,000 |
27,520,916 |
Capital |
117,000,000 |
- |
- |
117,000,000 |
- |
- |
Net cash |
(17,800,000) |
(960,321) |
(132,145) |
(37,400,000) |
82,239,679 |
11,316,556 |
|
|
|
|
|
|
|
Effect of |
383,577 |
(149,700) |
(20,600) |
343,051 |
(2,799,929) |
(385,278) |
|
|
|
|
|
|
|
Net (decrease) |
156,018,201 |
225,619,730 |
31,046,309 |
404,300,110 |
610,042,292 |
83,944,614 |
Cash and cash |
982,911,111 |
1,176,023,274 |
161,826,188 |
734,629,202 |
791,600,712 |
108,927,883 |
Cash and cash |
1,138,929,312 |
1,401,643,004 |
192,872,497 |
1,138,929,312 |
1,401,643,004 |
192,872,497 |
|
||||||
Unaudited Reconciliation of GAAP and Non-GAAP Results |
||||||
|
Quarter Ended |
Six Month Ended |
||||
|
June 30, |
June 30, |
June 30, |
June 30, |
|
|
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Net income |
101,946,360 |
62,261,861 |
8,567,518 |
134,503,754 |
119,556,728 |
16,451,551 |
|
|
|
|
|
|
|
Deduct: |
|
|
|
|
|
|
Other operating |
11,511,398 |
36,542,303 |
5,028,388 |
14,670,917 |
38,768,236 |
5,334,687 |
Interest income and |
9,750,337 |
11,003,960 |
1,514,195 |
17,379,351 |
19,950,499 |
2,745,280 |
Share of gain in |
- |
- |
- |
- |
- |
- |
Other income, net |
43,295,830 |
3,556,454 |
489,384 |
41,146,248 |
16,791,024 |
2,310,522 |
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
Other operating |
6,341,735 |
211,911 |
29,160 |
7,834,218 |
2,420,193 |
333,030 |
Other general |
4,309,239 |
5,911,956 |
813,512 |
15,973,584 |
11,756,531 |
1,617,753 |
Income tax |
45,241,208 |
26,733,733 |
3,678,684 |
59,950,083 |
53,181,694 |
7,318,045 |
Share of loss in |
341,265 |
1,174,966 |
161,681 |
786,883 |
869,757 |
119,683 |
Interest expenses |
3,868,469 |
2,629,228 |
361,793 |
9,396,530 |
4,369,057 |
601,203 |
Depreciation and |
29,239,835 |
29,137,972 |
4,009,518 |
60,319,927 |
60,479,676 |
8,322,280 |
Losses from |
263,836 |
6,172,071 |
849,305 |
4,800,398 |
15,424,655 |
2,122,503 |
Other expense, net |
- |
- |
- |
- |
- |
- |
Adjusted EBITDA |
126,994,382 |
83,130,981 |
11,439,204 |
220,368,861 |
192,548,532 |
26,495,559 |
|
Quarter Ended |
Six Month Ended |
||||
|
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Net income |
101,946,360 |
62,261,861 |
8,567,518 |
134,503,754 |
119,556,728 |
16,451,551 |
|
|
|
|
|
|
|
Deduct: |
|
|
|
|
|
|
Government |
6,275,245 |
210,000 |
28,897 |
6,671,305 |
469,886 |
64,658 |
Gains from |
- |
- |
- |
- |
- |
- |
Other income (net |
30,859,686 |
2,667,340 |
367,038 |
30,859,686 |
12,593,268 |
1,732,891 |
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
Share-based |
40,228 |
15,662 |
2,155 |
28,592 |
31,324 |
4,310 |
Losses from |
197,877 |
4,629,053 |
636,979 |
3,600,299 |
11,568,491 |
1,591,877 |
Other expense (net |
(1,612,187) |
- |
- |
- |
- |
- |
One-time fees and |
813,078 |
239,820 |
33,000 |
1,960,856 |
1,055,008 |
145,174 |
Other general |
4,309,239 |
5,911,956 |
813,512 |
15,973,584 |
11,756,531 |
1,617,753 |
Core net income |
68,559,664 |
70,181,012 |
9,657,229 |
118,536,094 |
130,904,928 |
18,013,116 |
|
|
|
|
|
|
|
Core net income |
|
|
|
|
|
|
Class A ordinary |
0.67 |
0.69 |
0.10 |
1.16 |
1.29 |
0.18 |
Class B ordinary |
0.67 |
0.69 |
0.10 |
1.16 |
1.29 |
0.18 |
Hotel Operational Data
|
|
|
Total hotels in operation: |
4,108 |
4,272 |
Leased and owned hotels |
65 |
62 |
Franchised hotels |
4,043 |
4,210 |
Total hotel rooms in operation |
303,387 |
312,734 |
Leased and owned hotels |
7,137 |
6,937 |
Franchised hotels |
296,250 |
305,797 |
Number of cities |
357 |
353 |
|
|
|
|
Quarter Ended |
|
202 3 Q 2 |
202 4 Q 2 |
|
Occupancy rate (as a percentage) |
|
|
Leased-and-owned hotels |
74.6 % |
70.7 % |
Franchised hotels |
77.9 % |
72.6 % |
Blended |
77.8 % |
72.5 % |
Average daily rate (in RMB) |
|
|
Leased-and-owned hotels |
255 |
250 |
Franchised hotels |
179 |
171 |
Blended |
181 |
173 |
RevPAR (in RMB) |
|
|
Leased-and-owned hotels |
191 |
177 |
Franchised hotels |
139 |
124 |
Blended |
141 |
125 |
|
Number of Hotels in Operation |
Number of |
||
|
|
|
|
|
Mid-to-up-scale |
438 |
505 |
42,338 |
47,697 |
GreenTree Eastern |
217 |
227 |
23,205 |
24,493 |
|
7 |
7 |
534 |
534 |
Gem |
54 |
82 |
4,873 |
7,258 |
Gya |
70 |
75 |
5,904 |
6,238 |
Vx |
90 |
99 |
7,822 |
8,695 |
Others |
- |
15 |
- |
499 |
Mid-scale |
2,933 |
2,948 |
229,270 |
229,970 |
|
2,259 |
2,315 |
181,015 |
182,957 |
|
545 |
503 |
39,091 |
37,923 |
|
21 |
21 |
1,351 |
1,385 |
Vatica |
108 |
109 |
7,813 |
7,705 |
City 118 Selected and others |
- |
- |
- |
- |
Economy hotels |
737 |
819 |
31,779 |
35,067 |
Shell |
737 |
819 |
31,779 |
35,067 |
City 118 and others |
- |
- |
- |
- |
Total |
4,108 |
4,272 |
303,387 |
312,734 |
Restaurant Operational Data
|
|
|
Total restaurants in operation: |
206 |
183 |
Leased and owned restaurants |
57 |
24 |
Franchised restaurants |
149 |
159 |
Number of cities |
66 |
57 |
Da Niang Dumplings |
170 |
155 |
Bellagio |
36 |
28 |
|
|
|
|
Quarter Ended |
|
202 3 Q 2 |
202 4 Q 2 |
|
ADT |
|
|
Leased-and-owned restaurants |
148 |
165 |
Franchised restaurants |
88 |
73 |
Blended |
109 |
90 |
AC (in RMB) |
|
|
Leased-and-owned restaurants |
84 |
105 |
Franchised restaurants |
41 |
38 |
Blended |
56 |
53 |
ADS (in RMB) |
|
|
Leased-and-owned restaurants |
12,456 |
17,306 |
Franchised restaurants |
3575 |
2,815 |
Blended |
6,082 |
4,737 |
For more information, please contact:
GreenTree
Ms.
Phone: +86-158-2166-6251
E-mail: ir@998.com
Phone: +86-181-0184-0639
E-mail: ir@998.com
Christensen
In
Mr.
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
View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-second-quarter-of-2024-financial-results-302223480.html
SOURCE