GreenTree Hospitality Group Ltd. Reports First Half 2023 Financial Results
- Total revenues increased by 12.1% YoY to RMB794.2 million (US$109.5 million). Hotel revenues increased by 23.1%. The company opened 183 hotels. Selling and marketing expenses increased by 19.8%.
- Restaurant revenues decreased by 7.7%. The company closed 64 stores.
- Total revenues increased by 12.1% year over year to
RMB7 94.2 million (US 9.5 million)[1].$10 - Income from operations was
RMB1 50.9 million (US$20.8 million)[1], compared to RMB-474.3 million for the first half of 2022. - Net income was
RMB1 77.3 million (US 4.5 million)[1], compared to$2 RMB-38 4.5 million for the first half of 2022. - Adjusted EBITDA (non-GAAP)[2] increased by
137.8% year over year to RMB226.9 million (US$31.3 million)[1]. - Core net income (non-GAAP)[3] increased by
65.2% year over year to RMB136.1 million (US$18.8 million)[1].
First Half 2023 Operational Highlights
Hotels
- A total of 4,108 hotels with 303,387 hotel rooms were in operation as of June 30, 2023.
- The Company opened 183 hotels during the six months ended June 30, 2023, and had a pipeline of 969 hotels contracted for or under development as of June 30, 2023.
- The average daily room rate was
RMB167 in the first quarter of 2023, an increase of9.1% fromRMB153 in the first quarter of 2022, andRMB181 in the second quarter of 2023, a23.1% year-over-year increase. - The occupancy rate was
71.7% in the first quarter of 2023, up from60.0% in the first quarter of 2022, and77.8% in the second quarter of 2023, compared to62.2% in the second quarter of 2022. - Revenue per available room, or RevPAR, was
RMB120 in the first quarter of 2023, a30.4% year-over-year increase, andRMB141 in the second quarter of 2023, a54.0% year-over-year increase.
Restaurants
- A total of 218 restaurants were in operation as of June 30, 2023.
- The AC (average check) was
RMB55 in the first quarter of 2023, a19.2% year-over-year increase, andRMB53 in the second quarter of 2023, a2.2% year-over-year increase. - The ADT (average daily tickets) was 110 in the first quarter of 2023, down from 130 in the first quarter of 2022, and 120 in the second quarter of 2023, compared to 78 in the second quarter of 2022.
- The ADS (average daily sales per store) was RMB 6,080 in the first quarter of 2023, an increase of
0.9% fromRMB 6,027 in the first quarter of 2022, andRMB 6,371 in the second quarter of 2023, a57.3% year-over-year increase.
"For our hotel business, the first quarter of 2023 marked a new beginning thanks to the recovery in the hospitality industry and the entire economy in China. RevPAR recovered to
As previously disclosed, the Company completed the acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in
"We are grateful for the hard work of our team, franchisees, and partners, and the support of our customers that made it possible to recover quickly starting from the first quarter of 2023 as China began returning to normal life," said Mr. Alex S. Xu, Chairman and Chief Executive Officer of GreenTree.
First Half 2023 Financial Results
Six months Ended | ||||
June 30, | June 30, | June 30, | June 30, | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Revenues | ||||
Leased-and-operated revenues | 171,272,365 | 171,008,920 | (229,756) | 342,051,529 |
Franchised-and-managed revenues | 275,539,547 | 18,229,310 | 293,768,857 | |
Wholesales and others | 10,564,787 | 62,284,229 | 72,849,016 | |
Total revenues | 457,376,699 | 251,522,459 | (229,756) | 708,669,402 |
Six months Ended | |||||
June 30, | June 30, | June 30, | June 30, | June 30, | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Revenues | |||||
Leased-and-operated | 213,563,927 | 168,340,074 | (1,125,179) | 380,778,822 | 52,511,801 |
Franchised-and-managed | 347,417,000 | 17,355,892 | 364,772,892 | 50,304,482 | |
Wholesales and others | 2,225,580 | 46,432,697 | 48,658,277 | 6,710,283 | |
Total revenues | 563,206,507 | 232,128,663 | (1,125,179) | 794,209,991 | 109,526,566 |
Total revenues for the first half of 2023 were
Hotel revenues were
Restaurant revenues were
Total revenues from leased-and-operated, or L&O, hotels and restaurants were
Total revenues from L&O hotels for the first half of 2023 were
Total revenues from L&O restaurants for the first half of 2023 were
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 wholesale and others were
Total operating costs and expenses
Six Months Ended | ||||
June 30, | June 30, | June 30, | June 30, | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Operating costs and expenses | ||||
Operating costs | 307,750,028 | 234,911,742 | 289,605 | 542,951,375 |
Selling and marketing expenses | 18,852,606 | 9,717,435 | 28,570,041 | |
General and administrative expenses | 99,724,402 | 21,847,196 | 121,571,598 | |
Other operating expenses | 2,048,734 | 2,240,920 | 4,289,654 | |
Other general expenses | 490,619,710 | 490,619,710 | ||
Total operating costs and | 918,995,480 | 268,717,293 | 289,605 | 1,188,002,378 |
Six Months Ended | |||||
June 30, | June 30, | June 30, | June 30, | June 30, | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Operating costs and | |||||
Operating costs | 284,364,378 | 204,308,159 | (610,088) | 488,062,449 | 67,306,890 |
Selling and marketing | 24,838,605 | 9,385,645 | 34,224,250 | 4,719,740 | |
General and | 90,535,547 | 21,338,810 | 111,874,357 | 15,428,179 | |
Other operating | 843,564 | 6,990,654 | 7,834,218 | 1,080,388 | |
Other general expenses | 15,973,584 | 15,973,584 | 2,202,858 | ||
Total operating costs | 416,555,678 | 242,023,268 | (610,088) | 657,968,858 | 90,738,055 |
Operating costs were
Operating costs of the hotel business were
Operating costs of the restaurant business were
Selling and marketing expenses were
Selling and marketing expenses of the hotel business were
Selling and marketing expenses of the restaurant business were
General and administrative, or G&A expenses were
G&A expenses of the hotel business were
G&A expenses of the restaurant business were
Other general expenses of the hotel business were
Gross profit was
Income from operations was
Income from operations of the hotel business was
Loss from operations of the restaurant business was
Net income was
Net income of the hotel business was
Net loss of the restaurant business was
Adjusted EBITDA (non-GAAP)[2] was
Core net income (non-GAAP) was
Earnings per American Depositary Share, or ADS, (basic and diluted) were
Cash flow Operating cash inflow was
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2023, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of
Guidance
Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect total revenues of organic hotels for the full year of 2023 to grow
The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.
Conference Call
GreenTree's management will hold an earnings conference call at 9:00 PM
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 September 25, 2023.
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: | 8450773 |
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 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 June 30, 2023, GreenTree had a total number of 4,108 hotels and 218 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
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, | ||||
2022 | 2023 | 2023 | ||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 701,332,213 | 1,115,384,452 | 153,818,550 | |||
Restricted cash | 7,937,397 | - | - | |||
Short-term investments | 186,031,572 | 235,416,298 | 32,465,392 | |||
Investments in equity securities | 41,361,346 | 27,460,488 | 3,786,974 | |||
Accounts receivable, net of allowance | 140,429,505 | 126,306,120 | 17,418,410 | |||
Amounts due from related parties | 451,786,275 | 44,473,106 | 6,133,122 | |||
Prepaid rent | - | - | - | |||
Inventories | 30,503,712 | 23,052,986 | 3,179,152 | |||
Other current assets | 142,169,713 | 147,472,648 | 20,337,408 | |||
Loans receivable, net | 181,667,170 | 152,938,524 | 21,091,187 | |||
Total current assets | 1,883,218,903 | 1,872,504,622 | 258,230,195 | |||
Non-current assets: | ||||||
Amounts due from a related party | 112,360,000 | 112,360,000 | 15,495,153 | |||
Restricted cash | 25,359,592 | 23,544,862 | 3,246,985 | |||
Long-term time deposits | 130,000,000 | - | - | |||
Loans receivable, net | 177,172,509 | 98,598,159 | 13,597,308 | |||
Property and equipment, net | 899,985,340 | 883,944,435 | 121,901,512 | |||
Intangible assets, net | 174,748,932 | 171,687,271 | 23,676,757 | |||
Goodwill | 128,752,950 | 128,752,950 | 17,755,844 | |||
Long-term investments | 176,854,460 | 186,909,291 | 25,775,970 | |||
Operating lease right-of-use assets | 1,676,544,520 | 1,633,368,783 | 225,251,856 | |||
Other assets | 120,620,533 | 114,673,765 | 15,814,236 | |||
Deferred tax assets | 242,186,616 | 260,348,940 | 35,903,761 | |||
TOTAL ASSETS | 5,747,804,355 | 5,486,693,078 | 756,649,577 | |||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Short-term bank loans | 298,100,000 | 270,700,000 | 37,331,237 | |||
Long-term bank loans, current portion | - | - | - | |||
Accounts payable | 123,522,029 | 113,604,869 | 15,666,828 | |||
Advance from customers | 26,480,779 | 22,822,957 | 3,147,430 | |||
Amounts due to related parties | 24,810,304 | 23,130,913 | 3,189,899 | |||
Salary and welfare payable | 89,343,058 | 95,815,922 | 13,213,620 | |||
Deferred rent | - | - | - | |||
Deferred revenue | 199,656,130 | 201,488,954 | 27,786,597 | |||
Accrued expenses and other current liabilities | 455,519,530 | 505,932,951 | 69,771,345 | |||
Income tax payable | 74,672,133 | 116,954,407 | 16,128,750 | |||
Dividends payable | - | - | - | |||
Operating lease liabilities, current | 271,518,556 | 280,717,711 | 38,712,743 | |||
Deferred tax liabilities | 34,473,265 | 34,344,492 | 4,736,322 | |||
Total current liabilities | 1,598,095,784 | 1,665,513,176 | 229,684,771 | |||
Long-term bank loans | 160,000,000 | 150,000,000 | 20,685,946 | |||
Deferred rent | - | - | - | |||
Deferred revenue | 232,857,456 | 225,165,519 | 31,051,745 | |||
Other long-term liabilities | 128,196,031 | 112,114,674 | 15,461,320 | |||
Operating lease liabilities, non-current | 1,521,589,481 | 1,473,955,554 | 203,267,766 | |||
Deferred tax liabilities | 63,815,023 | 50,773,630 | 7,002,004 | |||
Unrecognized tax benefits | 350,002,241 | 381,962,640 | 52,675,057 | |||
TOTAL LIABILITIES | 4,054,556,016 | 4,059,485,193 | 559,828,609 | |||
Shareholders' equity: | ||||||
Class A ordinary shares | 222,587,070 | 222,587,070 | 30,696,161 | |||
Class B ordinary shares | 115,534,210 | 115,534,210 | 15,932,896 | |||
Paid-in capital | 94,000,801 | 94,000,801 | 12,963,303 | |||
Treasury Stock | (16,971,057) | (16,971,057) | (2,340,416) | |||
Additional paid-in capital | 1,911,328,052 | 1,491,556,644 | 205,695,068 | |||
Retained earnings (Accumulated losses) | (698,677,163) | (540,865,018) | (74,588,697) | |||
Accumulated other comprehensive income | 27,732,104 | 28,728,211 | 3,961,801 | |||
Total GreenTree Hospitality Group Ltd. shareholders' | 1,655,534,017 | 1,394,570,861 | 192,320,116 | |||
Non-controlling interests | 37,714,322 | 32,637,024 | 4,500,852 | |||
Total shareholders' equity | 1,693,248,339 | 1,427,207,885 | 196,820,968 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,747,804,355 | 5,486,693,078 | 756,649,577 | |||
GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||
Six Months | Three Months Ended | Six Months Ended | |||||||
June 30, 2022 | March 31, | June 30, | June 30, 2023 | June 30, | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Revenues | |||||||||
Leased-and-operated revenues | 342,051,529 | 170,890,916 | 209,887,906 | 380,778,822 | 52,511,801 | ||||
Franchised-and-managed revenues | 293,768,857 | 178,526,853 | 186,246,039 | 364,772,892 | 50,304,482 | ||||
Wholesales and others | 72,849,016 | 29,802,650 | 18,855,627 | 48,658,277 | 6,710,283 | ||||
Total revenues | 708,669,402 | 379,220,419 | 414,989,572 | 794,209,991 | 109,526,566 | ||||
Operating costs and | |||||||||
Operating costs | (542,951,375) | (243,155,310) | (244,907,139) | (488,062,449) | (67,306,890) | ||||
Selling and marketing | (28,570,041) | (16,015,579) | (18,208,671) | (34,224,250) | (4,719,740) | ||||
General and | (121,571,598) | (57,755,145) | (54,119,212) | (111,874,357) | (15,428,179) | ||||
Other operating expenses | (4,289,654) | (1,492,483) | (6,341,735) | (7,834,218) | (1,080,388) | ||||
Other general expenses | (490,619,710) | (11,664,345) | (4,309,239) | (15,973,584) | (2,202,858) | ||||
Total operating costs | (1,188,002,378) | (330,082,862) | (327,885,996) | (657,968,858) | (90,738,055) | ||||
Other operating income | 5,043,707 | 3,159,519 | 11,511,398 | 14,670,917 | 2,023,212 | ||||
Income from operations | (474,289,269) | 52,297,076 | 98,614,974 | 150,912,050 | 20,811,723 | ||||
Interest income and other, | 24,042,558 | 7,629,014 | 9,750,337 | 17,379,351 | 2,396,722 | ||||
Interest expense | (17,441,575) | (5,528,061) | (3,868,469) | (9,396,530) | (1,295,841) | ||||
Gains (losses) from | 21,687,584 | (4,536,562) | (263,836) | (4,800,398) | (662,005) | ||||
Other income, net | 14,751,769 | (2,149,582) | 77,119,089 | 74,969,507 | 10,338,768 | ||||
Income before income | (431,248,933) | 47,711,885 | 181,352,095 | 229,063,980 | 31,589,367 | ||||
Income tax expense | 46,658,590 | 7,022,835 | (57,972,918) | (50,950,083) | (7,026,338) | ||||
Income (loss) before | (384,590,343) | 54,734,720 | 123,379,177 | 178,113,897 | 24,563,029 | ||||
Share of loss/(income) in | 75,125 | (445,618) | (341,265) | (786,883) | (108,516) | ||||
Net income(loss) | (384,515,218) | 54,289,102 | 123,037,912 | 177,327,014 | 24,454,513 | ||||
Net loss/(income) | 35,800,468 | 3,768,594 | 1,308,704 | 5,077,298 | 700,192 | ||||
Net income attributable | (348,714,750) | 58,057,696 | 124,346,616 | 182,404,312 | 25,154,705 | ||||
Net earnings per share | |||||||||
Class A ordinary share- | (3.38) | 0.57 | 1.22 | 1.79 | 0.25 | ||||
Class B ordinary share- | (3.38) | 0.57 | 1.22 | 1.79 | 0.25 | ||||
Net earnings per ADS | |||||||||
Class A ordinary share- | (3.38) | 0.57 | 1.22 | 1.79 | 0.25 | ||||
Class B ordinary share- | (3.38) | 0.57 | 1.22 | 1.79 | 0.25 | ||||
Weighted average | |||||||||
Class A ordinary share- | 68,286,954 | 67,416,046 | 67,416,046 | 67,416,046 | 67,416,046 | ||||
Class B ordinary share- | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 | ||||
Other comprehensive | |||||||||
Foreign currency | (9,730,001) | 810,574 | 185,533 | 996,107 | 137,370 | ||||
Comprehensive income, | (394,245,219) | 55,099,676 | 123,223,445 | 178,323,121 | 24,591,883 | ||||
Comprehensive | 35,800,468 | 3,768,594 | (4,843,631) | (1,075,037) | (148,254) | ||||
Comprehensive income | (358,444,751) | 58,868,270 | 118,379,814 | 177,248,084 | 24,443,629 |
GreenTree Hospitality Group Ltd. Unaudited Hotel Business Results | |||||||||
Six Months | Three Months Ended | Six Months Ended | |||||||
June 30, 2022 | March 31, | June 30, | June 30, 2023 | June 30, | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Revenues | |||||||||
Leased-and-operated revenues | 171,272,365 | 82,073,240 | 131,490,687 | 213,563,927 | 29,451,812 | ||||
Franchised-and-managed revenues | 275,539,547 | 169,480,457 | 177,936,543 | 347,417,000 | 47,910,995 | ||||
Others | 10,564,787 | 1,036,848 | 1,188,732 | 2,225,580 | 306,921 | ||||
Total revenues | 457,376,699 | 252,590,545 | 310,615,962 | 563,206,507 | 77,669,728 | ||||
Operating costs and | |||||||||
Hotel operating costs | (307,750,028) | (134,236,998) | (150,127,380) | (284,364,378) | (39,215,641) | ||||
Selling and marketing | (18,852,606) | (11,075,999) | (13,762,606) | (24,838,605) | (3,425,400) | ||||
General and | (99,724,402) | (46,092,069) | (44,443,478) | (90,535,547) | (12,485,423) | ||||
Other operating expenses | (2,048,734) | (151,220) | (692,344) | (843,564) | (116,333) | ||||
Other general expenses | (490,619,710) | (11,664,345) | (4,309,239) | (15,973,584) | (2,202,858) | ||||
Total operating costs | (918,995,480) | (203,220,631) | (213,335,047) | (416,555,678) | (57,445,655) | ||||
Other operating income | 3,917,398 | 2,608,096 | 11,183,689 | 13,791,785 | 1,901,974 | ||||
Income from operations | (457,701,383) | 51,978,010 | 108,464,604 | 160,442,614 | 22,126,047 | ||||
Interest income and other, | 23,730,138 | 7,475,298 | 9,597,042 | 17,072,340 | 2,354,383 | ||||
Interest expense | (15,178,612) | (4,724,690) | (3,167,262) | (7,891,952) | (1,088,350) | ||||
Gains (losses) from | 21,687,584 | (4,536,562) | (263,836) | (4,800,398) | (662,005) | ||||
Other income, net | 14,664,617 | (2,426,540) | 76,946,162 | 74,519,622 | 10,276,727 | ||||
Income before income | (412,797,656) | 47,765,516 | 191,576,710 | 239,342,226 | 33,006,802 | ||||
Income tax expense | 51,800,695 | 9,365,855 | (56,097,180) | (46,731,325) | (6,444,544) | ||||
Income (loss) before | (360,996,961) | 57,131,371 | 135,479,530 | 192,610,901 | 26,562,258 | ||||
Share of loss/(income) in | 75,125 | (445,618) | (341,265) | (786,883) | (108,516) | ||||
Net income(loss) | (360,921,836) | 56,685,753 | 135,138,265 | 191,824,018 | 26,453,742 |
GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results | |||||||||
Six Months | Three Months Ended | Six Months Ended | |||||||
June 30, 2022 | March 31, | June 30, | June 30, 2023 | June 30, | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Revenues | |||||||||
Leased-and-operated revenues | 171,008,920 | 89,376,893 | 78,963,181 | 168,340,074 | 23,215,158 | ||||
Franchised-and-managed revenues | 18,229,310 | 9,046,396 | 8,309,496 | 17,355,892 | 2,393,487 | ||||
Wholesale and others | 62,284,229 | 28,765,802 | 17,666,895 | 46,432,697 | 6,403,362 | ||||
Total revenues | 251,522,459 | 127,189,091 | 104,939,572 | 232,128,663 | 32,012,007 | ||||
Operating costs and | |||||||||
Restaurant operating | (234,911,742) | (109,219,983) | (95,088,176) | (204,308,159) | (28,175,384) | ||||
Selling and marketing | (9,717,435) | (4,939,580) | (4,446,065) | (9,385,645) | (1,294,340) | ||||
General and | (21,847,196) | (11,663,076) | (9,675,734) | (21,338,810) | (2,942,756) | ||||
Other operating expenses | (2,240,920) | (1,341,263) | (5,649,391) | (6,990,654) | (964,055) | ||||
Other general expenses | - | - | - | - | - | ||||
Total operating costs | (268,717,293) | (127,163,902) | (114,859,366) | (242,023,268) | (33,376,535) | ||||
Other operating income | 1,126,309 | 551,423 | 327,709 | 879,132 | 121,238 | ||||
Income from operations | (16,068,525) | 576,612 | (9,592,085) | (9,015,473) | (1,243,290) | ||||
Interest income and other, | 312,420 | 153,716 | 153,295 | 307,011 | 42,339 | ||||
Interest expense | (2,262,963) | (803,371) | (701,207) | (1,504,578) | (207,491) | ||||
Gains (losses) from | - | - | - | - | - | ||||
Other income, net | 87,152 | 276,958 | 172,926 | 449,884 | 62,041 | ||||
Income before income | (17,931,916) | 203,915 | (9,967,071) | (9,763,156) | (1,346,401) | ||||
Income tax expense | (5,271,945) | (2,407,407) | (1,940,124) | (4,347,531) | (599,552) | ||||
Income (loss) before | (23,203,862) | (2,203,492) | (11,907,194) | (14,110,686) | (1,945,953) | ||||
Share of loss/(income) in | - | - | - | - | - | ||||
Net income(loss) | (23,203,862) | (2,203,492) | (11,907,194) | (14,110,686) | (1,945,953) |
GreenTree Hospitality Group Ltd. | |||||||
Unaudited Condensed Consolidated Statements | |||||||
Six Months | Six Months | Six Months | Six Months | ||||
June 30, 2022 | June 30, 2022 | June 30, | June 30, 2022 | ||||
Hotel | Restaurant | Elimination | Total | ||||
RMB | RMB | RMB | RMB | ||||
Revenues | |||||||
Leased-and-operated hotels | 171,272,365 | 171,008,920 | (229,756) | 342,051,529 | |||
Franchised-and-managed | 275,539,547 | 18,229,310 | 293,768,857 | ||||
Wholesale and Others | 10,564,787 | 62,284,229 | 72,849,016 | ||||
Total revenues | 457,376,699 | 251,522,459 | (229,756) | 708,669,402 | |||
Operating costs and | |||||||
Operating costs | (307,750,028) | (234,911,742) | (289,605) | (542,951,375) | |||
Selling and marketing | (18,852,606) | (9,717,435) | (28,570,041) | ||||
General and administrative | (99,724,402) | (21,847,196) | (121,571,598) | ||||
Other operating expenses | (2,048,734) | (2,240,920) | (4,289,654) | ||||
Other general expenses | (490,619,710) | (490,619,710) | |||||
Total operating costs and | (918,995,480) | (268,717,293) | (289,605) | (1,188,002,378) | |||
Other operating income | 3,917,398 | 1,126,309 | 5,043,707 | ||||
Income from operations | (457,701,383) | (16,068,525) | (519,361) | (474,289,269) |
GreenTree Hospitality Group Ltd. | |||||||
Unaudited Condensed Consolidated Statements | |||||||
Six Months | Six Months | Six Months | Six Months | ||||
June 30, 2023 | June 30, 2023 | June 30, 2023 | June 30, 2023 | ||||
Hotel | Restaurant | Elimination | Total | ||||
RMB | RMB | RMB | RMB | ||||
Revenues | |||||||
Leased-and-operated hotels | 213,563,927 | 168,340,074 | (1,125,179) | 380,778,822 | |||
Franchised-and-managed | 347,417,000 | 17,355,892 | 364,772,892 | ||||
Wholesales and others | 2,225,579 | 46,432,698 | 48,658,277 | ||||
Total revenues | 563,206,506 | 232,128,664 | (1,125,179) | 794,209,991 | |||
Operating costs and | |||||||
Operating costs | (284,364,378) | (204,308,159) | 610,088 | (488,062,449) | |||
Selling and marketing expenses | (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) | |||
Other operating income | 13,791,785 | 879,132 | 14,670,917 | ||||
Income from operations | 160,442,613 | (9,015,472) | (515,091) | 150,912,050 |
GreenTree Hospitality Group Ltd. | |||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||
Six Months | Three Months Ended | Six Months Ended | |||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Operating | |||||||||
Net (loss) income | -384,515,218 | 54,289,102 | 123,037,911 | 177,327,013 | 24,454,513 | ||||
Depreciation and | 79,849,031 | 31,080,092 | 35,745,507 | 66,825,599 | 9,215,672 | ||||
Impairment of long | 56,212,849 | 2,900,000 | 2,900,000 | 399,928 | |||||
Impairment of | 91,236,480 | ||||||||
Share of (gains) | -75,125 | 445,618 | 341,265 | 786,883 | 108,516 | ||||
Non-cash lease | 41,659,260 | 64,053,832 | 70,769,259 | 134,823,091 | 18,592,954 | ||||
Loss from disposal | 13,944,925 | 1,223,952 | 1,223,952 | 168,791 | |||||
Interest income | -262,334 | -390,378 | -1,267,532 | -1,657,910 | -228,636 | ||||
Bad debt expense | 340,846,428 | 12,359,278 | 6,320,196 | 18,679,474 | 2,576,017 | ||||
Losses and | -21,687,584 | 4,536,562 | 263,836 | 4,800,398 | 662,005 | ||||
(Gains) losses on | 3,050,035 | -113,587 | 341,428 | 227,841 | 31,421 | ||||
Foreign exchange | -12,024,153 | 987,543 | -2,075,742 | -1,088,199 | -150,070 | ||||
Share-based | 271,139 | -11,636 | 40,228 | 28,592 | 3,943 | ||||
Common control | 519,360 | 257,546 | 257,546 | 515,092 | 71,034 | ||||
Changes in | -65,089,156 | -6,084,179 | -86,198,991 | -92,283,170 | -12,726,431 | ||||
Net cash provided | 143,935,937 | 165,533,745 | 147,574,911 | 313,108,656 | 43,179,657 | ||||
Investing | |||||||||
Purchases of | -30,771,557 | -34,116,117 | -37,617,117 | -71,733,234 | -9,892,465 | ||||
Purchases of | -60,215 | -42,454 | -309,827 | -352,281 | -48,582 | ||||
Proceeds from | 2,288,823 | 6,973,574 | 7,723,107 | 14,696,681 | 2,026,765 | ||||
Purchases of | -48,860,000 | -51,370,000 | -51,370,000 | -7,084,247 | |||||
Proceeds from | 506,295,349 | 110,300,378 | 61,142,806 | 171,443,184 | 23,643,096 | ||||
Loan advances | 94,927,368 | 27,302,903 | 48,235,746 | 75,538,649 | 10,417,256 | ||||
Loan collections | -200,868,160 | -8,029,596 | -1,945,000 | -9,974,596 | -1,375,560 | ||||
Net cash (used in) | 322,951,608 | 102,388,688 | 25,859,715 | 128,248,403 | 17,686,263 | ||||
Financing | |||||||||
Distribution to the | -40,999,458 | ||||||||
Loan from non- | 300,000 | ||||||||
Repayment of | -169,100,000 | -136,600,000 | -17,800,000 | -154,400,000 | -21,292,734 | ||||
Proceeds from bank | 25,300,000 | 117,000,000 | 117,000,000 | 16,135,038 | |||||
Capital contribution | -1,600,000 | ||||||||
Net cash provided | -186,099,458 | -19,600,000 | -17,800,000 | -37,400,000 | -5,157,696 | ||||
Effect of exchange | 649,388 | -40,524 | 383,575 | 343,051 | 47,309 | ||||
Net (decrease) | 281,437,475 | 248,281,909 | 156,018,201 | 404,300,110 | 55,755,533 | ||||
Cash and cash | 385,452,920 | 734,629,202 | 734,629,202 | 101,310,000 | |||||
Cash and cash | 666,890,395 | 982,911,111 | 156,018,201 | 1,138,929,312 | 157,065,533 |
GreenTree Hospitality Group Ltd. | |||||
Unaudited Reconciliation of GAAP and Non-GAAP Results | |||||
Six Months Ended | |||||
June 30, 2022 | June 30, 2023 | June 30, 2023 | |||
RMB | RMB | US$ | |||
Net income | (384,515,218) | 177,327,013 | 24,454,513 | ||
Deduct: | |||||
Other operating income | 5,043,707 | 14,670,917 | 2,023,212 | ||
Interest income and other, net | 24,042,558 | 17,379,351 | 2,396,722 | ||
Gains from investment in equity | 21,687,584 | - | - | ||
Share of gain in equity investees, net | 75,125 | - | - | ||
Other income, net | 14,751,769 | 74,969,507 | 10,338,768 | ||
Add: | |||||
Other operating expenses | 4,289,654 | 7,834,218 | 1,080,388 | ||
Other general expenses | 490,619,710 | 15,973,584 | 2,202,858 | ||
Income tax expenses (benefits) | (46,658,590) | 50,950,083 | 7,026,338 | ||
Share of loss in equity investees, net | - | 786,883 | 108,516 | ||
Interest expenses | 17,441,575 | 9,396,530 | 1,295,841 | ||
Depreciation and amortization | 79,849,031 | 66,825,599 | 9,215,672 | ||
Losses from investment in equity | - | 4,800,398 | 662,005 | ||
Adjusted EBITDA (Non-GAAP) | 95,425,419 | 226,874,533 | 31,287,429 | ||
Six Months Ended | |||||
June 30, 2022 | June 30, 2023 | June 30, 2023 | |||
RMB | RMB | US$ | |||
Net income | (384,515,218) | 177,327,013 | 24,454,513 | ||
Deduct: | |||||
Government subsidies (net of | 1,251,065 | 6,671,305 | 920,015 | ||
Gains from investment in equity | 16,265,688 | - | - | ||
Other income (net of | 11,063,827 | 56,227,130 | 7,754,076 | ||
Add: | |||||
Share-based compensation | 271,139 | 28,592 | 3,943 | ||
Losses from investments in equity | - | 3,600,299 | 496,504 | ||
One-time fees and expenses | 4,588,086 | 2,055,989 | 283,534 | ||
Other general expenses | 490,619,710 | 15,973,584 | 2,202,858 | ||
Impairment charges and provisions | - | - | - | ||
Core net income (Non-GAAP) | 82,383,137 | 136,087,042 | 18,767,261 | ||
Core net income per ADS (Non- | |||||
Class A ordinary share-basic and | 0.80 | 1.33 | 0.18 | ||
Class B ordinary share-basic and | 0.80 | 1.33 | 0.18 |
Hotel Operational Data
June 30, 2022 | June 30, 2023 | |
Total hotels in operation: | 4,669 | 4,108 |
Leased and owned hotels | 67 | 65 |
Franchised hotels | 4,602 | 4,043 |
Total hotel rooms in operation | 332,073 | 303,387 |
Leased and owned hotels | 6,986 | 7,137 |
Franchised hotels | 325,087 | 296,250 |
Number of cities | 367 | 357 |
Quarter Ended | ||
2022 Q1 | 2023Q1 | |
Occupancy rate (as a percentage) | ||
Leased-and-owned hotels | 52.6 % | 62.9 % |
Franchised hotels | 60.2 % | 71.9 % |
Blended | 60.0 % | 71.7 % |
Average daily rate (in RMB) | ||
Leased-and-owned hotels |
199 |
229 |
Franchised hotels |
152 |
166 |
Blended |
153 |
167 |
RevPAR (in RMB) | ||
Leased-and-owned hotels |
105 |
144 |
Franchised hotels |
91 |
119 |
Blended |
92 |
120 |
Quarter Ended | ||
2022 Q2 | 2023Q2 | |
Occupancy rate (as a percentage) | ||
Leased-and-owned hotels | 57.1 % | 74.6 % |
Franchised hotels | 62.3 % | 77.9 % |
Blended | 62.2 % | 77.8 % |
Average daily rate (in RMB) | ||
Leased-and-owned hotels |
217 |
255 |
Franchised hotels |
145 |
179 |
Blended | 147 | 181 |
RevPAR (in RMB) | ||
Leased-and-owned hotels |
124 |
190 |
Franchised hotels |
90 |
139 |
Blended |
91 |
141 |
Number of Hotels in Operation | Number of Hotel Rooms in | |||
June 30, | June 30, | June 30, | June 30, | |
Mid-to-up-scale | 528 | 438 | 47,347 | 42,338 |
GreenTree Eastern | 201 | 217 | 22,402 | 23,205 |
Deepsleep Hotel | 7 | 7 | 467 | 534 |
Gem | 52 | 54 | 4,728 | 4,873 |
Gya | 66 | 70 | 5,639 | 5,904 |
Vx | 81 | 90 | 7,069 | 7,822 |
Urban Garden and others | 121 | - | 7,042 | - |
Mid-scale | 2,999 | 2,933 | 233,950 | 229,270 |
GreenTree Inn | 2,183 | 2259 | 180,255 | 181,015 |
GT Alliance | 521 | 545 | 37,545 | 39,091 |
GreenTree Apartment | 19 | 21 | 1,260 | 1,351 |
Vatica | 110 | 108 | 7,969 | 7,813 |
City 118 Selected and others | 166 | - | 6,921 | - |
Economy hotels | 1,142 | 737 | 50,776 | 31,779 |
Shell | 648 | 737 | 28,030 | 31,779 |
City 118 and others | 494 | - | 22,746 | - |
Total | 4,669 | 4,108 | 332,073 | 303,387 |
Restaurant Operational Data
June 30, 2022 | June 30, 2023 | |
Total restaurants in operation: | 280 | 218 |
Leased and owned restaurants | 146 | 104 |
Franchised restaurants | 134 | 114 |
Number of cities | 81 | 66 |
Da Niang Dumplings | 245 | 182 |
Bellagio | 35 | 36 |
Total restaurants in operation: | 280 | 218 |
Quarter Ended | ||
2022 Q1 | 2023Q1 | |
ADT | ||
Leased-and-owned restaurants | 170 | 143 |
Franchised restaurants | 95 | 81 |
Blended | 130 | 110 |
AC (in RMB) | ||
Leased-and-owned restaurants | 51 | 61 |
Franchised restaurants | 39 | 46 |
Blended | 46 | 55 |
ADS (in RMB) | ||
Leased-and-owned restaurants | 8,640 | 8,716 |
Franchised restaurants | 3,712 | 3,745 |
Blended | 6,027 | 6,080 |
Quarter Ended | ||
2022 Q2 | 2023Q2 | |
ADT | ||
Leased-and-owned restaurants | 92 | 142 |
Franchised restaurants | 56 | 86 |
Blended | 78 | 120 |
AC (in RMB) | ||
Leased-and-owned restaurants | 60 | 61 |
Franchised restaurants | 45 | 46 |
Blended | 52 | 53 |
ADS (in RMB) | ||
Leased-and-owned restaurants | 5,505 | 8,657 |
Franchised restaurants | 2,503 | 3,936 |
Blended | 4,051 | 6,371 |
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
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
[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 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
View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-half-2023-financial-results-301931155.html
SOURCE GreenTree Hospitality Group Ltd.
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