GreenTree Hospitality Group Ltd. Reports First Quarter of 2024 Financial Results
GreenTree Hospitality Group (NYSE: GHG) announced its financial results for Q1 2024. Total revenues declined by 7.1% year-over-year to RMB352.2 million (US$48.8 million). Despite this, hotel revenues increased by 8.8% to RMB274.8 million. Income from operations grew to RMB72.2 million (US$10 million) from RMB52.3 million in Q1 2023, and net income also rose to RMB57.3 million (US$7.9 million) from RMB32.6 million. Adjusted EBITDA saw a 17.2% increase to RMB109.4 million (US$15.2 million), and core net income went up by 21.5% to RMB60.7 million (US$8.4 million).
Operationally, the company managed 4,256 hotels and 185 restaurants as of March 31, 2024. The average daily room rate and average check saw growth, but occupancy rates and average daily sales per store declined. The company is optimistic about its hotel segment, projecting a 7-12% revenue increase for 2024, while guidance for the restaurant business has been withdrawn due to strategic repositioning.
- Hotel revenues increased by 8.8% YoY to RMB274.8 million.
- Income from operations grew to RMB72.2 million (US$10 million) from RMB52.3 million in Q1 2023.
- Net income rose to RMB57.3 million (US$7.9 million) from RMB32.6 million YoY.
- Adjusted EBITDA increased 17.2% YoY to RMB109.4 million (US$15.2 million).
- Gross profit increased by 5.9% YoY to RMB144.1 million (US$20 million).
- Cash inflow from operations was RMB90.7 million (US$12.6 million).
- Total revenues decreased by 7.1% YoY to RMB352.2 million (US$48.8 million).
- Restaurant revenues fell 38.9% YoY to RMB77.7 million.
- Revenue per available room (RevPAR) declined by 4.6% YoY.
- Occupancy rates declined to 67.8% from 71.7% YoY.
- Average daily sales per store (ADS) dropped by 8.7% YoY.
Insights
GreenTree Hospitality Group Ltd. has reported its financial results for the first quarter of 2024. The company has experienced mixed performance across its various business segments. While total revenues decreased by
This growth in net income, despite a revenue decline, is indicative of better cost management and operational efficiencies. For instance, operating costs have decreased by
However, potential investors should be cautious about the restaurant segment, which saw a revenue decrease of
Understanding the current market dynamics is important for assessing GreenTree's performance. The hospitality sector in China is highly competitive and GreenTree's strategic initiatives to upgrade its hotel portfolio and close underperforming restaurants are critical moves to safeguard its market position. The company opened 109 new hotels and has nearly 1,000 hotels in the pipeline, indicating strong future growth potential. Investors should keep an eye on how these new openings affect overall performance in the coming quarters.
The average daily room rate rose slightly to
The restaurant segment remains a concern. While the average check increased by
- Total revenues decreased
7.1% year over year toRMB352.2 million (US )[1]. Hotel revenues increased$48.8 million 8.8% year over year toRMB274.8 million . - Income from operations was
RMB72.2 million (US ) compared to$10 million RMB52.3 million for the first quarter of 2023. - Net income was
RMB57.3 million (US ) compared to$7.9 million RMB32.6 million for the first quarter of 2023. - Adjusted EBITDA (non-GAAP)[2] increased 17.2% year over year to RMB109.4 million (US$15.2 million)[1].
- Core net income (non-GAAP)[3] increased 21.5% year over year to RMB60.7million (
US .4million)[1]$ 8
[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 |
First Quarter of 2024 Operational Highlights
Hotels
- A total of 4,256 hotels with 313,531 hotel rooms were in operation as of March 31, 2024.
- The Company opened 109 hotels and had a pipeline of 994 hotels contracted for or under development as of March 31, 2024.
- The average daily room rate was
RMB169 , an increase of0.9% from RMB167 in the first quarter of 2023. - The occupancy rate was
67.8% , down from71.7% in the first quarter of 2023. - Revenue per available room, or RevPAR, was
RMB114 , a4.6% year-over-year decrease.
Restaurants
- A total of 185 restaurants were in operation as of March 31, 2024
- The AC (average check) was
RMB59 , a5.8% year-over-year increase. - The ADT (average daily tickets) was 94, down from 109 in the first quarter of 2023.
- The ADS (average daily sales per store) was
RMB5,525 , a decrease of8.7% fromRMB6 ,051 in the first quarter of 2023.
"Overall, we delivered some significant improvements in the first quarter with substantial increases in both operating and net incomes.
Conditions in our hotel business were mixed as consumer behavior continued to evolve in a more competitive environment while we are continuously upgrading a large portion of hotels in our portfolio. Against this scenario, we managed to deliver an
We made further progress in the repositioning of our restaurant business with an absolute focus on robust profitability. We grew our network of franchisees as we further expanded the number of street stores. We have completed our closure of the restaurants in the supermarket anchored regional shopping centers, due to less foot traffic to our stores. We have now completed this phase of our forward strategy and are focused on store count growth again in regions where we have strong brand recognition," said Mr. Alex S. Xu, Chairman and Chief Executive Office of GreenTree.
First Quarter Of 2024 Financial Results
Quarter Ended | ||||
March 31, 2023 | March 31, 2023 | March 31, 2023 | March 31, 2023 | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Revenues | ||||
Leased-and-operated revenues | 82,073,240 | 89,376,893 | (559,217) | 170,890,916 |
Franchised-and-managed revenues | 169,480,457 | 963,919 | - | 170,444,376 |
Wholesales and others | 1,036,848 | 36,848,279 | - | 37,885,127 |
Total revenues | 252,590,545 | 127,189,091 | (559,217) | 379,220,419 |
Quarter Ended | |||||
March 31, 2024 | March 31, 2024 | March 31, 2024 | March 31, 2024 | March 31, 2024 | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Revenues | |||||
Leased-and-operated revenues | 122,541,793 | 46,367,979 | - | 168,909,772 | 23,393,733 |
Franchised-and-managed revenues | 151,159,511 | 1,535,341 | - | 152,694,853 | 21,147,993 |
Wholesales and others | 1,144,727 | 29,753,299 | (275,222) | 30,622,804 | 4,241,209 |
Total revenues | 274,846,031 | 77,656,619 | (275,222) | 352,227,429 | 48,782,935 |
Total revenues were 352.2 million (
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 were
Total revenues from L&O restaurants 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
Quarter Ended | ||||
March 31, 2023 | March 31, 2023 | March 31, 2023 | March 31, 2023 | |
RMB | RMB | RMB | RMB | |
Hotel | Restaurant | Elimination | Total | |
Operating costs and expenses | ||||
Operating costs | 134,236,998 | 109,219,983 | (301,671) | 243,155,310 |
Selling and marketing expenses | 11,075,999 | 4,939,580 | - | 16,015,579 |
General and administrative expenses | 46,092,069 | 11,663,076 | - | 57,755,145 |
Other operating expenses | 151,220 | 1,341,263 | - | 1,492,483 |
Impairment loss of goodwill | - | - | - | - |
Other general expenses | 11,664,345 | - | - | 11,664,345 |
Total operating costs and expenses | 203,220,631 | 127,163,902 | (301,671) | 330,082,862 |
Quarter Ended | |||||
March 31, 2024 | March 31, 2024 | March 31, 2024 | March 31, 2024 | March 31, 2024 | |
RMB | RMB | RMB | RMB | US$ | |
Hotel | Restaurant | Elimination | Total | Total | |
Operating costs and expenses | |||||
Operating costs | 146,226,642 | 62,149,597 | (255,888) | 208,120,351 | 28,824,336 |
Selling and marketing expenses | 15,454,623 | 2,954,313 | (19,334) | 18,389,602 | 2,546,931 |
General and administrative expenses | 38,469,631 | 9,171,998 | - | 47,641,629 | 6,598,289 |
Other operating expenses | 666,301 | 1,541,981 | - | 2,208,282 | 305,844 |
Impairment loss of goodwill | - | - | - | - | - |
Other general expenses | 5,844,575 | - | - | 5,844,575 | 809,464 |
Total operating costs and expenses | 206,661,772 | 75,817,889 | (275,222) | 282,204,439 | 39,084,864 |
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 were
Gross profit was
Income from operations was
Income from operations of the hotel business was
Income from operations of the restaurant business was
Net income was
Net income of the hotel business was
Net loss of the restaurant business was nil, compared to a net loss of
Adjusted EBITDA (non-GAAP)[2] was
Core net income (non-GAAP) [3] 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 March 31, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of
Guidance
Based on our performance in the first five months of this year, we maintain our previous revenue guidance for the hotel business, that we expect 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 8:00 AM
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 July 2, 2024.
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 investes, 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 March 31, 2023, GreenTree had a total number of 4,256 hotels and 185 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 | |||||
March 31 | March 31 | March 31 | |||
2023 | 2024 | 2024 | |||
RMB | RMB | US$ | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 953,822,859 | 1,152,175,405 | 159,574,451 | ||
Restricted cash | 2,720,982 | 4,532,526 | 627,748 | ||
Short-term investments | 225,021,572 | 31,572 | 4,373 | ||
Investments in equity securities | 32,272,989 | 22,146,357 | 3,067,235 | ||
Accounts receivable, net of allowance | 142,262,308 | 122,414,456 | 16,954,206 | ||
Amounts due from related parties | 47,062,819 | 20,692,709 | 2,865,907 | ||
Prepaid rent | - | - | - | ||
Inventories | 29,534,072 | 8,400,721 | 1,163,486 | ||
Other current assets | 139,201,294 | 126,002,104 | 17,451,090 | ||
Loans receivable, net | 158,565,259 | 103,678,058 | 14,359,245 | ||
Total current assets | 1,730,464,154 | 1,560,073,908 | 216,067,741 | ||
Non-current assets: | |||||
Amounts due from a related party | 112,360,000 | 110,000,000 | 15,234,824 | ||
Restricted cash | 26,367,272 | 19,315,343 | 2,675,144 | ||
Long-term time deposits | - | 285,570,000 | 39,550,988 | ||
Loans receivable, net | 149,792,749 | 65,855,806 | 9,120,924 | ||
Property and equipment, net | 888,599,359 | 784,053,346 | 108,590,134 | ||
Intangible assets, net | 173,172,989 | 116,036,169 | 16,070,824 | ||
Goodwill | 128,752,950 | 177,082,468 | 24,525,639 | ||
Long-term investments | 180,824,192 | 180,600,002 | 25,012,811 | ||
Operating lease right-of-use assets | 1,611,536,252 | 1,555,590,403 | 215,446,782 | ||
Other assets | 115,656,298 | 107,382,513 | 14,872,306 | ||
Deferred tax assets | 243,093,543 | 244,795,647 | 33,903,806 | ||
TOTAL ASSETS | 5,360,619,758 | 5,206,355,605 | 721,071,923 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Long-term bank loans, current portion | - | 200,000 | 27,700 | ||
Short-term bank loans | 278,500,000 | 200,000 | 27,700 | ||
Accounts payable | 128,212,354 | 64,268,468 | 8,901,080 | ||
Advance from customers | 30,083,605 | 18,436,298 | 2,553,398 | ||
Amounts due to related parties | 23,177,949 | 14,800,188 | 2,049,802 | ||
Salary and welfare payable | 93,837,623 | 82,025,103 | 11,360,346 | ||
Deferred rent | - | - | - | ||
Deferred revenue | 197,096,092 | 192,051,020 | 26,598,759 | ||
Accrued expenses and other current liabilities | 555,241,803 | 423,194,165 | 58,611,715 | ||
Income tax payable | 71,251,884 | 121,029,924 | 16,762,451 | ||
Dividends payable | - | - | - | ||
Operating lease liabilities, current | 266,944,100 | 283,904,384 | 39,320,303 | ||
Deferred tax liabilities | 34,408,879 | - | - | ||
Total current liabilities | 1,678,754,289 | 1,200,109,550 | 166,213,254 | ||
Long-term bank loans | 160,000,000 | 256,600,000 | 35,538,690 | ||
Deferred rent | - | - | - | ||
Deferred revenue | 230,935,621 | 195,259,974 | 27,043,194 | ||
Other long-term liabilities | 121,625,146 | 118,615,555 | 16,428,065 | ||
Operating lease liabilities, non-current | 1,463,742,002 | 1,418,705,518 | 196,488,445 | ||
Deferred tax liabilities | 36,591,348 | 97,657,120 | 13,525,355 | ||
Unrecognized tax benefits | 365,027,137 | 389,681,763 | 53,970,301 | ||
TOTAL LIABILITIES | 4,056,675,543 | 3,676,629,480 | 509,207,304 | ||
Shareholders' equity: | |||||
Class A ordinary shares | 222,587,070 | 222,587,070 | 30,827,953 | ||
Class B ordinary shares | 115,534,210 | 115,534,210 | 16,001,303 | ||
Paid-in capital | 94,000,801 | - | - | ||
Treasury Stock | (16,971,057) | (36,677,832) | (5,079,821) | ||
Additional paid-in capital | 1,491,516,416 | 1,680,729,011 | 232,778,279 | ||
Retained earnings (Accumulated losses) | (665,211,634) | (509,443,169) | (70,557,064) | ||
Accumulated other comprehensive income | 28,542,678 | 20,783,387 | 2,878,466 | ||
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,269,998,484 | 1,493,512,677 | 206,849,116 | ||
Non-controlling interests | 33,945,729 | 36,213,449 | 5,015,505 | ||
Total shareholders' equity | 1,303,944,213 | 1,529,726,126 | 211,864,621 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,360,619,758 | 5,206,355,605 | 721,071,923 |
GreenTree Hospitality Group Ltd. | |||||
Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||
Quarter Ended | |||||
March 31, 2023 | March 31, 2024 | March 31, 2024 | |||
RMB | RMB | US$ | |||
Revenues | |||||
Leased-and-operated revenues | 170,890,916 | 168,909,772 | 23,393,733 | ||
Franchised-and-managed revenues | 170,444,376 | 152,694,853 | 21,147,993 | ||
Wholesales and others | 37,885,127 | 30,622,804 | 4,241,209 | ||
Total revenues | 379,220,419 | 352,227,429 | 48,782,935 | ||
Operating costs and expenses | |||||
Operating costs | (243,155,310) | (208,120,351) | (28,824,336) | ||
Selling and marketing expenses | (16,015,579) | (18,389,602) | (2,546,931) | ||
General and administrative expenses | (57,755,145) | (47,641,629) | (6,598,289) | ||
Other operating expenses | (1,492,483) | (2,208,282) | (305,844) | ||
Impairment loss of goodwill | |||||
Other general expenses | (11,664,345) | (5,844,575) | (809,464) | ||
Total operating costs and expenses | (330,082,862) | (282,204,439) | (39,084,864) | ||
Other operating income | 3,159,519 | 2,225,933 | 308,288 | ||
Income from operations | 52,297,076 | 72,248,923 | 10,006,359 | ||
Interest income and other, net | 7,629,014 | 8,946,539 | 1,239,081 | ||
Interest expense | (5,528,061) | (1,739,829) | (240,964) | ||
Gains (losses) from investment in equity securities | (4,536,562) | (9,252,584) | (1,281,468) | ||
Other income, net | (2,149,582) | 13,234,570 | 1,832,967 | ||
Income before income taxes | 47,711,885 | 83,437,619 | 11,555,975 | ||
Income tax expense | (14,708,875) | (26,447,961) | (3,663,000) | ||
Income (loss) before share of gains in equity investees | 33,003,010 | 56,989,658 | 7,892,975 | ||
Share of loss/(income) in equity investees, net of tax | (445,618) | 305,209 | 42,271 | ||
Net income(loss) | 32,557,392 | 57,294,867 | 7,935,246 | ||
Net loss/(income) attributable to non-controlling interests | 3,768,594 | 1,601,766 | 221,842 | ||
Net income attributable to ordinary shareholders | 36,325,986 | 58,896,633 | 8,157,088 | ||
Net earnings per share | |||||
Class A ordinary share-basic and diluted | 0.36 | 0.58 | 0.08 | ||
Class B ordinary share-basic and diluted | 0.36 | 0.58 | 0.08 | ||
Net earnings per ADS | |||||
Class A ordinary share-basic and diluted | 0.36 | 0.58 | 0.08 | ||
Class B ordinary share-basic and diluted | 0.36 | 0.58 | 0.08 | ||
Weighted average shares outstanding | |||||
Class A ordinary share-basic and diluted | 0.36 | 0.58 | 0.08 | ||
Class B ordinary share-basic and diluted | 0.36 | 0.58 | 0.08 | ||
Other comprehensive income, net of tax | |||||
Foreign currency translation adjustments | 810,574 | (7,617,895) | (1,055,066) | ||
Unrealized gains(loss) on available-for-sale investments, net of tax | - | - | - | ||
Comprehensive income, net of tax | 33,367,966 | 49,676,972 | 6,880,180 | ||
Comprehensive loss/(income) attributable to non-controlling interests | 3,768,594 | 1,601,766 | 221,842 | ||
Comprehensive income (loss) attributable to ordinary shareholders | 37,136,560 | 51,278,738 | 7,102,022 |
GreenTree Hospitality Group Ltd. | |||||
Unaudited Hotel Business Results | |||||
Quarter Ended | |||||
March 31, 2023 | March 31, 2024 | March 31, 2024 | |||
RMB | RMB | US$ | |||
Revenues | |||||
Leased-and-operated revenues | 82,073,240 | 122,541,793 | 16,971,842 | ||
Franchised-and-managed revenues | 169,480,457 | 151,159,511 | 20,935,350 | ||
Others | 1,036,848 | 1,144,727 | 158,543 | ||
Total revenues | 252,590,545 | 274,846,031 | 38,065,735 | ||
Operating costs and expenses | |||||
Hotel operating costs | (134,236,998) | (146,226,642) | (20,252,156) | ||
Selling and marketing expenses | (11,075,999) | (15,454,623) | (2,140,441) | ||
General and administrative expenses | (46,092,069) | (38,469,631) | (5,327,982) | ||
Other operating expenses | (151,220) | (666,301) | (92,282) | ||
Other general expenses | (11,664,345) | (5,844,575) | (809,464) | ||
Total operating costs and expenses | (203,220,631) | (206,661,772) | (28,622,325) | ||
Other operating income | 2,608,096 | 2,182,615 | 302,289 | ||
Income from operations | 51,978,010 | 70,366,874 | 9,745,699 | ||
Interest income and other, net | 7,475,298 | 8,930,356 | 1,236,840 | ||
Interest expense | (4,724,690) | (1,740,682) | (241,082) | ||
Gains (losses) from investment in equity securities | (4,536,562) | (9,310,256) | (1,289,456) | ||
Other income, net | (2,426,540) | 13,304,900 | 1,842,707 | ||
Income before income taxes | 47,765,516 | 81,551,192 | 11,294,708 | ||
Income tax expense | (12,365,854) | (24,556,921) | (3,401,094) | ||
Income (loss) before share of gains in equity investees | 35,399,662 | 56,994,271 | 7,893,614 | ||
Share of loss/(income) in equity investees, net of tax | (445,618) | 305,209 | 42,271 | ||
Net income(loss) | 34,954,044 | 57,299,480 | 7,935,885 |
GreenTree Hospitality Group Ltd. | |||||
Unaudited Restaurant Business Results | |||||
Quarter Ended | |||||
March 31, 2023 | March 31, 2024 | March 31, 2024 | |||
RMB | RMB | US$ | |||
Revenues | |||||
Leased-and-operated revenues | 89,376,893 | 46,367,979 | 6,421,891 | ||
Franchised-and-managed revenues | 963,919 | 1,535,341 | 212,642 | ||
Wholesales and others | 36,848,279 | 29,753,299 | 4,120,784 | ||
Total revenues | 127,189,091 | 77,656,619 | 10,755,317 | ||
Operating costs and expenses | |||||
Restaurant operating costs | (109,219,983) | (62,149,597) | (8,607,620) | ||
Selling and marketing expenses | (4,939,580) | (2,954,313) | (409,168) | ||
General and administrative expenses | (11,663,076) | (9,171,998) | (1,270,307) | ||
Other operating expenses | (1,341,263) | (1,541,981) | (213,562) | ||
Total operating costs and expenses | (127,163,902) | (75,817,889) | (10,500,657) | ||
Other operating income | 551,423 | 43,318 | 5,999 | ||
Income from operations | 576,612 | 1,882,048 | 260,659 | ||
Interest income and other, net | 153,716 | 16,183 | 2,241 | ||
Interest expense | (803,371) | 853 | 118 | ||
Gains (losses) from investment in equity securities | - | 57,672 | 7,987 | ||
Other income, net | 276,958 | (70,330) | (9,741) | ||
Income before income taxes | 203,915 | 1,886,426 | 261,264 | ||
Income tax expense | (2,407,407) | (1,891,040) | (261,906) | ||
Income (loss) before share of gains in equity investees | (2,203,492) | (4,614) | (642) | ||
Share of loss/(income) in equity investees, net of tax | - | - | - | ||
Net income(loss) | (2,203,492) | (4,614) | (642) |
GreenTree Hospitality Group Ltd. | |||||||
Unaudited Condensed Consolidated Statements | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||
March 31, 2023 | March 31, 2023 | March 31, 2023 | March 31, 2023 | ||||
Hotel | Restaurant | Elimination | Total | ||||
RMB | RMB | RMB | RMB | ||||
Revenues | |||||||
Leased-and-operated revenues | 82,073,240 | 89,376,893 | (559,217) | 170,890,916 | |||
Franchised-and-managed revenues | 169,480,457 | 963,919 | - | 170,444,376 | |||
Wholesales and Others | 1,036,848 | 36,848,279 | - | 37,885,127 | |||
Total revenues | 252,590,545 | 127,189,091 | (559,217) | 379,220,419 | |||
Operating costs and expenses | |||||||
Operating costs | (134,236,998) | (109,219,983) | 301,671 | (243,155,310) | |||
Selling and marketing expenses | (11,075,999) | (4,939,580) | - | (16,015,579) | |||
General and administrative expenses | (46,092,069) | (11,663,076) | - | (57,755,145) | |||
Other operating expenses | (151,220) | (1,341,263) | - | (1,492,483) | |||
Other general expenses | (11,664,345) | - | - | (11,664,345) | |||
Total operating costs and expenses | (203,220,631) | (127,163,902) | 301,671 | (330,082,862) | |||
Other operating income | 2,608,096 | 551,423 | - | 3,159,519 | |||
Income from operations | 51,978,010 | 576,612 | (257,546) | 52,297,076 |
GreenTree Hospitality Group Ltd. | |||||||
Unaudited Condensed Consolidated Statements | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||
March 31, 2024 | March 31, 2024 | March 31, 2024 | March 31, 2024 | ||||
Hotel | Restaurant | Elimination | Total | ||||
RMB | RMB | RMB | RMB | ||||
Revenues | |||||||
Leased-and-operated revenues | 122,541,793 | 46,367,979 | - | 168,909,772 | |||
Franchised-and-managed revenues | 151,159,511 | 1,535,341 | - | 152,694,853 | |||
Wholesales and Others | 1,144,727 | 29,753,299 | (275,222) | 30,622,804 | |||
Total revenues | 274,846,031 | 77,656,619 | (275,222) | 352,227,429 | |||
Operating costs and expenses | |||||||
Operating costs | (146,226,642) | (62,149,597) | 255,888 | (208,120,351) | |||
Selling and marketing expenses | (15,454,623) | (2,954,313) | 19,334 | (18,389,602) | |||
General and administrative expenses | (38,469,631) | (9,171,998) | - | (47,641,629) | |||
Other operating expenses | (666,301) | (1,541,981) | - | (2,208,282) | |||
Other general expenses | (5,844,575) | - | - | (5,844,575) | |||
Total operating costs and expenses | (206,661,772) | (75,817,889) | 275,222 | (282,204,439) | |||
Other operating income | 2,182,615 | 43,318 | - | 2,225,933 | |||
Income from operations | 70,366,874 | 1,882,048 | - | 72,248,923 |
GreenTree Hospitality Group Ltd. | |||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||
Quarter Ended | |||||
March 31, 2023 | March 31, 2024 | March 31, 2024 | |||
RMB | RMB | US$ | |||
Operating activities: | |||||
Net (loss) income | 32,557,392 | 57,294,867 | 7,935,247 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 31,337,638 | 31,341,704 | 4,340,776 | ||
Impairment of long-lived assets | 2,900,000 | - | - | ||
Share of (income)loss in equity method investments | 445,618 | (305,209) | (42,271) | ||
Noncash lease expense | 64,053,832 | 64,818,043 | 8,977,195 | ||
Loss from disposal of a subsidiary | 1,223,952 | - | - | ||
Interest income | (390,378) | - | - | ||
Bad debt expenses | 12,359,278 | 5,473,571 | 758,081 | ||
(Gains) losses and impairment on equity securities held | 4,536,562 | 9,252,584 | 1,281,468 | ||
Loss (gains) on disposal of property, plant and equipment | (113,587) | 2,352,048 | 325,755 | ||
Foreign exchange (gains)losses | 987,543 | (8,088,429) | (1,120,234) | ||
Share-based compensation | (11,636) | 15,662 | 2,169 | ||
Accounts receivable | (7,050,882) | 1,844,427 | 255,450 | ||
Inventories | 969,640 | 12,061,769 | 1,670,536 | ||
Amounts due from related parties | (961,185) | (397,603) | (55,067) | ||
Other current assets | (7,726,682) | (5,490,017) | (760,359) | ||
Other assets | 4,964,235 | (2,656,913) | (367,978) | ||
Accounts payable | 4,690,325 | (8,858,209) | (1,226,848) | ||
Amounts due to related parties | (1,632,355) | (1,876,431) | (259,883) | ||
Salary and welfare payable | 4,494,565 | (4,306,993) | (596,512) | ||
Deferred revenue | (4,481,873) | (6,876,613) | (952,400) | ||
Advance from customers | 3,602,826 | (3,956,799) | (548,010) | ||
Accrued expenses and other current liabilities | 76,271,975 | (23,815,642) | (3,298,428) | ||
Income tax payable | 18,311,461 | 8,247,211 | 1,142,226 | ||
Unrecognized tax benefits | 15,024,896 | 7,555,977 | 1,046,491 | ||
Operating lease liabilities | (56,063,542) | (41,913,938) | (5,805,013) | ||
Other long-term liabilities | (6,570,885) | (1,096,187) | (151,820) | ||
Deferred taxes | (28,194,988) | 110,338 | 15,282 | ||
Net cash provided by operating activities | 165,533,745 | 90,729,218 | 12,565,853 | ||
Investing activities: | |||||
Purchases of property, plant and equipment | (34,116,117) | (10,554,525) | (1,461,785) | ||
Purchases of intangible assets | (42,454) | - | - | ||
Proceeds from disposal of property, plant and equipment | 6,973,574 | 1,733,100 | 240,032 | ||
Proceeds from maturities of short-term investments | 91,400,378 | 419,362,037 | 58,080,971 | ||
Purchases of long-term investments | - | (222,230,000) | (30,778,500) | ||
Proceeds from disposal of a subsidiary | 18,900,000 | - | - | ||
Loan to third parties | (1,000,000) | - | - | ||
Repayment of loan from third parties | 468,319 | 1,371,953 | 190,013 | ||
Loan to franchisees | (7,029,596) | - | - | ||
Repayment from franchisees | 26,834,584 | 23,461,007 | 3,249,312 | ||
Net cash (used in) provided by investing activities | 102,388,688 | 213,143,572 | 29,520,043 | ||
Financing activities: | |||||
Repayment of bank loans | (136,600,000) | (116,800,000) | (16,176,613) | ||
Proceeds from bank loans | 117,000,000 | 200,000,000 | 27,699,680 | ||
Capital contribution from non-controlling interest holders | - | - | - | ||
Net cash provided by (used in) financing activities | (19,600,000) | 83,200,000 | 11,523,067 | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (40,524) | (2,650,223) | (367,052) | ||
Net (decrease) increase in cash and cash equivalents | 248,281,909 | 384,422,562 | 53,241,910 | ||
Cash and cash equivalents at the beginning of the period | 734,629,202 | 791,600,712 | 109,635,432 | ||
Cash and cash equivalents at the end of the period | 982,911,111 | 1,176,023,274 | 162,877,342 |
GreenTree Hospitality Group Ltd. | |||||
Unaudited Reconciliation of GAAP and Non-GAAP Results | |||||
Quarter Ended | |||||
March 31, 2023 | March 31, 2024 | March 31, 2024 | |||
RMB | RMB | US$ | |||
Net income | 32,557,393 | 57,294,867 | 7,935,247 | ||
Deduct: | |||||
Other operating income | 3,159,519 | 2,225,933 | 308,288 | ||
Interest income and other, net | 7,629,014 | 8,946,539 | 1,239,081 | ||
Share of gain in equity investees, net of tax | - | 305,209 | 42,271 | ||
Other income, net | - | 13,234,570 | 1,832,967 | ||
Add: | |||||
Other operating expenses | 1,492,483 | 2,208,282 | 305,844 | ||
Other general expenses | 11,664,345 | 5,844,575 | 809,464 | ||
Income tax expenses (benefits) | 14,708,875 | 26,447,961 | 3,663,000 | ||
Share of loss in equity investees, net of tax | 445,618 | - | - | ||
Interest expenses | 5,528,061 | 1,739,829 | 240,964 | ||
Depreciation and amortization | 31,080,092 | 31,341,704 | 4,340,776 | ||
Losses from investment in equity securities | 4,536,562 | 9,252,584 | 1,281,468 | ||
Other expense, net | 2,149,582 | - | - | ||
Adjusted EBITDA (Non-GAAP) | 93,374,478 | 109,417,551 | 15,154,156 | ||
Quarter Ended | |||||
March 31, 2023 | March 31, 2024 | March 31, 2024 | |||
RMB | RMB | US$ | |||
Net income | 32,557,393 | 57,294,867 | 7,935,247 | ||
Deduct: | |||||
Government subsidies (net of | 396,060 | 259,886 | 35,994 | ||
Gains from investment in equity securities (net of | - | - | - | ||
Other income (net of | - | 9,925,928 | 1,374,725 | ||
Add: | |||||
Share-based compensation | (11,636) | 15,662 | 2,169 | ||
Losses from investments in equity securities (net of | 3,402,422 | 6,939,438 | 961,101 | ||
Other expense (net of | 1,612,187 | - | - | ||
One-time fees and expenses | 1,147,778 | 815,188 | 112,902 | ||
Other general expenses | 11,664,345 | 5,844,575 | 809,464 | ||
Core net income (Non-GAAP) | 49,976,429 | 60,723,916 | 8,410,164 | ||
Core net income per ADS (Non-GAAP) | |||||
Class A ordinary share-basic and diluted | 0.49 | 0.60 | 0.08 | ||
Class B ordinary share-basic and diluted | 0.49 | 0.60 | 0.08 |
Hotel Operational Data
March 31, 2023 | March 31, 2024 | |
Total hotels in operation: | 4,084 | 4,256 |
Leased and owned hotels | 64 | 66 |
Franchised hotels | 4,020 | 4,190 |
Total hotel rooms in operation | 302,425 | 313,531 |
Leased and owned hotels | 6,992 | 7,392 |
Franchised hotels | 295,433 | 306,139 |
Number of cities | 355 | 345 |
Quarter Ended | ||
2023 Q1 | 2024 Q1 | |
Occupancy rate (as a percentage) | ||
Leased-and-owned hotels | 62.9 % | 66.6 % |
Franchised hotels | 71.9 % | 67.9 % |
Blended | 71.7 % | 67.8 % |
Average daily rate (in RMB) | ||
Leased-and-owned hotels |
229 |
235 |
Franchised hotels |
166 |
167 |
Blended |
167 |
169 |
RevPAR (in RMB) | ||
Leased-and-owned hotels |
144 |
157 |
Franchised hotels |
119 |
113 |
Blended |
120 |
114 |
Number of Hotels in Operation | Number of Hotel Rooms in Operation | |||
March 31, 2023 | March 31, 2024 | Marchr 31, 2023 | March 31, 2024 | |
Mid-to-up-scale | 425 | 498 | 41,124 | 47,264 |
GreenTree Eastern | 202 | 233 | 22,212 | 25,191 |
Deepsleep Hotel | 7 | 7 | 534 | 534 |
Gem | 54 | 75 | 4,845 | 6,588 |
Gya | 69 | 74 | 5,809 | 6,121 |
Vx | 86 | 95 | 7,492 | 8,263 |
Urban Garden and others | 7 | 14 | 232 | 567 |
Mid-scale | 2,952 | 2,942 | 230,729 | 230,362 |
GreenTree Inn | 2,225 | 2,260 | 182,242 | 182,570 |
GT Alliance | 544 | 493 | 38,084 | 37,290 |
GreenTree Dianjing | 55 | 58 | 1,305 | 1,296 |
GreenTree Apartment | 20 | 21 | 1,289 | 1,382 |
Vatica | 108 | 110 | 7,809 | 7,824 |
City 118 Selected and others | - | - | - | - |
Economy hotels | 707 | 816 | 30,572 | 35,905 |
Shell | 707 | 816 | 30,572 | 35,905 |
City 118 and others | - | - | - | - |
Total | 4,084 | 4,256 | 302,425 | 313,531 |
Restaurant Operational Data
March 31, 2023 | March 31, 2024 | |
Total restaurants in operation: | 255 | 185 |
Leased and owned restaurants | 116 | 27 |
Franchised restaurants | 139 | 158 |
Number of cities | 64 | 53 |
Da Niang Dumplings | 219 | 153 |
Bellagio | 36 | 32 |
Quarter Ended | ||
2023 Q1 | 2024 Q1 | |
ADT | ||
Leased-and-owned restaurants | 61 | 44 |
Franchised restaurants | 48 | 50 |
Blended | 109 | 94 |
AC (in RMB) | ||
Leased-and-owned restaurants | 67 | 80 |
Franchised restaurants | 40 | 40 |
Blended | 55 | 59 |
ADS (in RMB) | ||
Leased-and-owned restaurants | 4,135 | 3,484 |
Franchised restaurants | 1,915 | 2,041 |
Blended | 6,050 | 5,525 |
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Mr. Maple Miao
Phone: +86-181-0184-0639
E-mail: ir@998.com
Christensen
In
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
View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-quarter-of-2024-financial-results-302181557.html
SOURCE GreenTree Hospitality Group Ltd.
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