GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2023 Financial Results
· Total revenues increased by 3.2% year over year to RMB372.2 million (US$52.4 million)^[1].
· Income from operations was RMB23.1 million (US$3.2 million) compared to RMB-5.1 million for the fourth quarter of 2022 .
· Net income was RMB7.4 million (US$1.0 million) compared to RMB-3.8 million for the fourth quarter of 2022.
· Adjusted EBITDA (non-GAAP)^[2]increased by 2.1% year over year to RMB116.3 million (US$16.4 million)^[1].
SHANGHAI, March 26, 2024 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2023. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of GreenTree Inns Hotel Management Group, Inc., until their acquisition by the Company, the acquisition was accounted for a common-control acquisition in a manner similar to the pooling -of-interests method. The consolidated balance sheets and consolidated statements of comprehensive income/(loss) include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control. In this report, the comparative financial data have been restated to reflect the business combinations under common control.
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.0999 on December 31, 2023 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/.
[2] Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.
*Fourth Quarter of** 202**3** Operational Highlights*
*Hotels *
· A total of 4,238 hotels with 309,495 hotel rooms were in operation as of December 31, 2023.
· The Company opened 107 hotels and had a pipeline of 963 hotels contracted for or under development as of December 31, 2023.
· The average daily room rate was RMB177, an increase of 7.3% from RMB165 in the fourth quarter of 2022.
· The occupancy rate was 72.4%, up from63.0% in the fourth quarter of 2022.
· Revenue per available room, or RevPAR, was RMB128, a 23.3% year-over-year increase.
*Restaurants*
· A total of 194 restaurants were in operation as of December 31, 2023.
· The AC (average check) was RMB54, a 19.3% year-over-year increase.
· The ADT (average daily tickets) was 101, down from 105 in the fourth quarter of 2022.
· The ADS (average daily sales per store) was RMB5,433, an increase of 14% from RMB4,780 in the fourth quarter of 2022.
"2023 marked a return to more normal times in the hospitality industry in China as we left the COVID pandemic behind us and focused on growing our hotel business again in terms of revenues, profitability, and hotel openings, while we continued to diversify geographically. For the full year, revenues came in at RMB1,627 million and net income was RMB310.6 million compared to a loss of RMB446.1 million in 2022. We ended the year with 4,238 hotels in operation and 963 in our pipeline."
"It was also a year of transformation in our restaurant business with a greater focus on leveraging our expertise to attract and support franchisees as we continue to grow our footprint in local communities."
"We are very thankful to our team, franchisees, and partners who worked extremely hard under difficult conditions and to our customers who remained loyal to our many brands. We believe the China travel market will remain robust and we look confidently to a better future for all our stakeholders," said Mr. Alex S. Xu, Chairman and Chief Executive Officer of GreenTree.
*Fourth Quarter of **202**3** Financial Results* *Quarter Ended* * December 31,
2022*
* December 31, *
*2022*
* December 31,
2022*
* December 31,
2022* *RMB*
*RMB*
*RMB*
*RMB* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Revenues*
Leased-and-operated revenues
84,299,894
77,192,256
(1,070,750)
160,421,400
Franchised-and-managed
revenues
152,893,262
6,936,922
159,830,184
Wholesales and others
798,068
39,834,953
(223,991)
40,409,030
*Total revenues*
*237,991,224*
*123,964,131*
*(1,294,741)*
*360,660,614*
*Quarter Ended* * December 31,
2023*
* December 31,
2023*
* December 31,
2023*
* December 31,
2023*
* December 31,
2023* *RMB*
*RMB*
*RMB*
*RMB*
*US$* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Total*
*Revenues*
Leased-and-operated
revenues
125,521,091
48,191,718
1,075,554
174,788,363
24,618,426
Franchised-and-managed
revenues
162,861,220
9,665,210
172,526,430
24,299,839
Wholesales and others
1,267,182
29,865,880
(6,284,350)
24,848,712
3,499,868
*Total revenues*
*289,649,493*
*87,722,808*
*(5,208,796)*
*372,163,505*
*52,418,133*
*202**3** Financial Results* *Year Ended* * December 31,
2022*
* December 31,
2022*
* December 31,
2022*
* December 31,
2022* *RMB*
*RMB*
*RMB*
*RMB* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Revenues*
Leased-and-operated revenues
338,506,220
362,806,697
(1,290,268)
700,022,649
Franchised-and-managed revenues
582,441,077
39,243,436
621,684,513
Wholesales and others
15,853,985
131,737,118
(223,991)
147,367,112
*Total revenues*
*936,801,282*
*533,787,251*
*(1,514,259)*
*1,469,074,274*
*Year Ended* * December
31, 2023*
* December
31, 2023*
* December
31, 2023*
* December
31, 2023*
* December
31, 2023* *RMB*
*RMB*
*RMB*
*RMB*
*US$* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Total*
*Revenues*
Leased-and-operated
revenues
490,924,060
296,890,282
787,814,342
110,961,329
Franchised-and-managed
revenues
696,321,236
44,175,022
740,496,258
104,296,717
Wholesales and others
4,660,777
100,570,661
(6,284,350)
98,947,088
13,936,406
*Total revenues*
*1,191,906,073*
*441,635,965*
*(6,284,350)*
*1,627,257,688*
*229,194,452*
*Total revenues* were RMB372.2 million (US$52.4 million)，a 3.2% year-over-year increase.
Hotel revenues were RMB289.6 million (US$40.8 million), a 21.7% year-over-year increase. The increase was mainly attributable to the recovery in RevPAR and the increase in the number of hotels.
Restaurant revenues were RMB87.7 million (US$12.4 million), a 29.2% year-over-year decrease. The decrease was mainly due to the closure of L&O stores, and partially offset by an increase in ADS.
Total revenues for the year were RMB1,627.3 million (US$229.2 million)^[1], a 10.8% year-over-year increase.
*Total revenues from leased-and-operated, or L&O, hotels** and restaurants* were RMB174.8 million (US$24.6 million)^[1], a 9.0% year-over-year increase.
Total revenues from L&O hotels were RMB125.5 million (US$17.7 million)^[1], an 48.9% year-over-year increase. The increase was primarily attributable to a 24.0% year-over-year increase in the fourth quarter RevPAR of L&O hotels and four newly opened L&O hotels in the fourth quarter of 2023 as compared to the fourth quarter of 2022.
Total revenues from L&O restaurants were RMB48.2 million (US$6.8 million)^[1], a 37.6 % year-over-year decrease. The decrease was mainly due to the closure of L&O stores, and partially offset by an increase in ADS .
Total revenues from L&O hotels and restaurants for the year were RMB787.8 million (US$111.0 million)^[1], a 12.5% year-over-year increase.
*Total revenues from franchised-and-managed, or F&M, hotels** and restaurants* were RMB172.5 million (US$24.3 million), a 7.9% year-over-year increase.
Total revenues from F&M hotels were RMB162.9 million (US$22.9 million), a 6.5% year-over-year increase. Initial franchise fees increased 104.4% year-over-year, mainly because of the increase in the gross opening number of F&M hotels. Recurring franchisee management fees and others increaesed by 2.6% year-over-year, primarily due to a 20.6% increase in F&M hotels' Revpar,and offset by the a waving of franchisee management fees for refurbished hotels.
Total revenues from F&M restaurants were RMB9.7 million (US$1.4 million), a 39.3% year-over-year increase. The increase was mainly due to the increase in ADS, and a net increase of 12 F&M restaurants. Total revenues from F&M restaurants for the year were RMB44.2 million (US$6.2 million)^[1], an 12.6% year-over-year increase.
Total revenues from F&M hotels and restaurants for the year were RMB740.5 million (US$104.3 million)^[1], a 19.1% year-over-year increase.
*Total revenues from **wholesale and others* were RMB24.8 million (US$3.5 million), a 38.5% year-over-year decrease, mainly because of reduced business from supermarkets, partially offset by increased business through distributors. Total revenues from wholesale and others for the year were RMB98.9 million (US$13.9 million), a 32.9% year-over-year decrease.
*Total operating costs and expenses* *Quarter Ended* * December 31,
2022*
* December 31,
2022*
* December 31,
2022*
* December 31,
2022* *RMB*
*RMB*
*RMB*
*RMB* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Operating costs and expenses*
Operating costs
143,637,483
114,848,354
(95,608)
258,390,229
Selling and marketing expenses
8,246,791
2,110,091
(19,904)
10,336,978
General and administrative
expenses
56,758,869
9,172,602
65,931,471
Other operating expenses
860,771
2,615,189
3,475,960
Impairment loss of goodwill
91,236,480
91,236,480
Other general expenses
(69,310,842)
13,041,702
(56,269,140)
*Total operating costs and
expenses*
*231,429,552*
*141,787,938*
*(115,512)*
*373,101,978*
*Quarter Ended* * December
31, 2023*
* December
31, 2023*
* December
31, 2023*
* December
31, 2023*
* December
31, 2023* *RMB*
*RMB*
*RMB*
*RMB*
*US$* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Total*
*Operating costs and
expenses*
Operating costs
154,556,991
66,896,044
(9,861,359)
211,591,676
29,802,064
Selling and marketing expenses
8,318,853
2,821,243
(49,623)
11,090,473
1,562,060
General and administrative
expenses
49,670,060
8,374,981
58,045,041
8,175,473
Other operating expenses
3,429,367
139,799
3,569,166
502,707
Impairment loss of goodwill
Other general expenses
36,260,493
39,913,000
76,173,493
10,728,812
*Total operating costs and
expenses*
*252,235,764*
*118,145,067*
*(9,910,982)*
*360,469,849*
*50,771,116*
*Year Ended* * December 31,
2022*
* December 31,
2022*
* December 31,
2022*
* December 31,
2022* *RMB*
*RMB*
*RMB*
*RMB* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Operating costs and expenses*
Operating costs
594,019,322
472,289,395
204,234
1,066,512,951
Selling and marketing expenses
38,534,427
29,975,916
(19,904)
68,490,439
General and administrative
expenses
210,759,610
48,754,252
259,513,862
Other operating expenses
3,244,855
5,171,505
8,416,360
Impairment loss of goodwill
91,236,480
91,236,480
Other general expenses
461,597,460
13,041,702
474,639,162
*Total operating costs and
expenses*
*1,399,392,154*
*569,232,770*
*184,330*
*1,968,809,254*
*Year Ended* * December
31, 2023*
* December
31, 2023*
* December
31, 2023*
* December
31, 2023*
* December
31, 2023* *RMB*
*RMB*
*RMB*
*RMB*
*US$* *Hotel*
*Restaurant*
*Elimination*
*Total*
*Total*
*Operating costs and
expenses*
Operating costs
598,841,951
359,018,687
(10,421,824)
947,438,814
133,443,966
Selling and marketing
expenses
47,434,683
24,232,973
(49,623)
71,618,033
10,087,189
General and administrative
expenses
166,861,387
41,572,291
208,433,678
29,357,270
Other operating expenses
4,453,446
7,251,107
11,704,553
1,648,552
Impairment loss of goodwill
Other general expenses
63,556,586
39,913,000
103,469,586
14,573,386
*Total operating costs and
expenses*
*881,148,053*
*471,988,058*
*(10,471,447)*
*1,342,664,664*
*189,110,363*
*Operating costs* were RMB211.6 million (US$ 29.8 million)^[1], a 18.1% year-over-year decrease.
Operating costs of the hotel business were RMB154.6 million (US$21.8million)^[1], a 7.6% year-over-year increase. The increase was mainly due to higher consumables and higher costs for general managers of franchised-and-managed hotels due to the increase in F&M hotels, and partially offset by lower utilities.
Operating costs of the restaurant business were RMB66.9million (US$9.4 million)^[1], a 41.8% year-over-year decrease. The decrease was due to closure of L&O stores.
For the year, operating costs were RMB 944.3 million (US$133.0 million) ^[1], representing an 11.1% decrease.
*Selling and marketing expenses* were RMB11.1 million (US$1.6 million)[1], a 7.3% year-over-year increase.
Selling and marketing expenses of the hotel business were RMB8.3 million (US$1.2 million)[1], a 0.9% year-over-year increase.
Selling and marketing expenses of the restaurant business were RMB2.8 million (US$0.4 million)[1], a 33.7% year-over-year increase. The increase was mainly attributable to higher sales-channel commissions.
For the year, selling and marketing expenses were RMB71.6 million (US$10.1 million) [1], a 4.6% increase.
*General and administrative, or G&A expenses* were RMB58.0 million (US$ 8.2 million)[1], a 12.5% year-over-year decrease.
G&A expenses of the hotel business were RMB49.7 million (US$7.0 million)[1], a 12.5 % year-over-year decrease. The decrease was mainly due to lower staff related expenses and lower bad debts.
G&A expenses of the restaurant business were RMB8.4 million (US$1.2 million)[1], a 8.7% year-over-year decrease. The decrease was mainly due to lower staff related expenses.
*Other general expenses* were RMB76.2 million (US$10.7 million)[1], a 235.4% year-over-year decrease. These expenses include provisions for trademarks especially due to the acquisition of the restaurant business, loan receivables related to franchisee loans, and impairment of assets.
*Gross profit* was RMB160.6 million (US$22.6 million)^[1], a year-over-year increase of 57.0%. Gross margin was 43.1%, compared to 28.4% a year ago. The gross profit of the hotel business was RMB135.1 million (US$19.0 million)^[1], an 43.2% year-over-year increase. The gross profit of the restaurant business was RMB20.8 million (US$2.9 million)^[1], a 128.5% year-over-year increase. Gross profit for the year was RMB679.8 million (US$95.8 million) ^[1], a 68.9% year-over-year increase.
*Income from operations *was RMB23.1 million (US$3.2 million)^[1]^ , compared to loss from operations of RMB5.1 million in the fourth quarter of 2022, with a margin of 6.2%. Excluding other general expenses, income from operations turned positive at RMB99.2 million(US$14.0 million) with a margin of 6.2%.
Income from operations of the hotel business was RMB47.4 million (US$6.7 million)^[1], compared to an income from operations of RMB13.3 million in the fourth quarter of 2022, with a margin of 16.3%. Excluding other general expenses, income from operations of the hotel business was RMB83.6 million(US$11.8 million), an increase of 137.4%, with a margin of 28.9%.
Loss from operations of the restaurant business was RMB29.0 million (US$4.1 million)^[1], compared to loss from operations of RMB17.3 million in the fourth quarter of 2022, with a margin of -33.1%. Excluding other general expenses, income from operations of the restaurant business turned positive at RMB10.9 million(US$1.5 million) with a margin of 12.4%.
Income from operations for the year was RMB315.8 million (US$44.5 million) ^[1] compared to loss from operations of RMB471.9 million in 2022, with a margin of 19.4%
*Net income *was RMB7.4 million (US$1.0 million)^[1], compared to a net income of RMB-3.8 million in the fourth quarter of 2022, and net margin was 2.0%. Excluding other general expenses, net income of the hotel business was RMB161.3 million(US$22.7 million), an increase of 41.6%, with a margin of 43.4%.
Net income of the hotel business was RMB21.0 million (US$3.0 million)^[1], compared to a net income of RMB7.5 million in the fourth quarter of 2022, and net margin was 7.2%. Excluding other general expenses, net income of the restaurant business was RMB57.2 million(US$8.1 million), an increase of 94.7%, with a margin of 19.8%.
Net loss of the restaurant business was RMB18.2 million (US$2.6 million)^[1], compared to a net loss of RMB10.0 million in the fourth quarter of 2022, and net margin was -20.7%.Excluding other general expenses, net income of the restaurant business was RMB21.7 million(US$3.1 million), an increase of 604.5%, with a margin of 24.8%.
*Adjusted EBITDA (non-GAAP)*^[2] was RMB116.3 million (US$16.4 million)^[1], a year-over-year increase of 2.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 14.0%, compared to 31.6% a year ago. Adjusted EBITDA (non-GAAP) for the year was RMB516.6 million (US$72.8 million), a year-over-year increase of 112.9%.
*Core net income (non-GAAP)* was RMB88.7 million (US$12.5 million)^[1], a year-over-year increase of 70.3%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 23.8%, compared to 14.4% one year ago. Core net income (non-GAAP) for the year was RMB340.8 million (US$48.0 million)^[1], a year-over-year increase of 144.9%.
*Earnings per American Depositary Share, or ADS, (basic and diluted)* were RMB0.11 (US$0.01 )[1], up from RMB-0.05 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.87 (US$0.12 )[1], up from RMB0.51 a year ago. Earnings per ADS (basic and diluted) for the year was RMB2.6 (US$0.37)[1] up from RMB-3.71 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB3.34 (US$0.47 )[1] for the year, a increase from RMB1.35 a year ago.
*Cash flow Operating cash outflow* was RMB 12.8 million (US$1.8 million)^[1] as a result of income from operations. Investing cash outflow for the full year 2023 was RMB 126.8million (US$17.9million)^[1], which was primarily attributable to purchases of short-term investments and increase of long-term time deposits . The investing cash outflow was partially offset repayment from franchisees. Financing cash inflow was RMB 29.9 million (US$4.2 million)^[1], mainly attributable to proceeds from bank borrowings
*Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits.* As of December 31, 2023, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB 1,337.1 million (US$188.3 million)^[1],compared to RMB1,331.4million as of September 30, 2023. The decrease was primarily due to investment in property and repurchase of ordinary shares, partially offset by primarily by bank loans and repayments from franchisees.
*Guidance *
Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect total revenues of our organic hotel business for the full year of
2024 to grow 7%~12% over the 2023 levels. Furthermore, considering the closure of restaurant LO stores and stores in shopping malls, we expect total revenues from our restaurant and organic hotel businesses for the full year of 2024 to grow 3-5% over the 2023 levels.
The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.
*Conference Call*
GreenTree's management will hold an earnings conference call at 9:00 PM U.S. Eastern Time on March 25, 2024, (9:00 AM Beijing/Hong Kong Time on November 26, 2023).
Dial-in numbers for the live conference call are as follows:
International
1-412-902-4272
Mainland China
4001-201-203
US
1-888-346-8982
Hong Kong
800-905-945 or 852-3018-4992
Singapore
800-120-6157
Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call.
A telephone replay of the conference call will be available after the conclusion of the live conference call until April 1, 2024.
Dial-in numbers for the replay are as follows:
International Dial-in
1-412-317-0088
U.S. Toll Free
1-877-344-7529
Canada Toll Free
855-669-9658
Passcode:
5843477
Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.
*Use of Non-GAAP Financial Measures*
We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.
The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.
The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.
Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.
*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 December 31, 2023, GreenTree had a total number of 4,238 hotels and 194 restaurants. In 2023, HOTELS magazine ranked GreenTree 12th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2022 according to the China Hospitality Association. In 2023, GreenTree completed its acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China.
GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value.
For more information on GreenTree, please visit http://ir.998.com
*Safe Harbor Statements*
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.
Financial Tables and Operational Data Follow
* GreenTree Hospitality Group Ltd. *
* Unaudited Condensed Consolidated Balance Sheets * * December
31, *
* December
31, *
* December
31, *
*2022*
*2023*
*2023* * RMB *
* RMB *
* US$ *
* ASSETS *
* Current assets: *
Cash and cash equivalents
699,244,375
765,547,547
107,825,117
Restricted cash
7,937,683
6,576,906
926,338
Short-term investments
186,031,572
417,711,617
58,833,451
Investments in equity
securities
41,361,346
26,076,169
3,672,752
Accounts receivable, net of
allowance
134,916,930
123,887,879
17,449,243
Amounts due from related
parties
425,741,077
19,928,781
2,806,910
Prepaid rent
-
-
-
Inventories
21,920,802
20,462,490
2,882,081
Other current assets
114,715,923
117,047,122
16,485,742
Loans receivable, net
173,667,175
129,521,094
18,242,665
* Total current assets *
*1,805,536,883*
*1,626,759,605*
*229,124,299*
* Non-current assets: *
Amounts due from a
related party
112,360,000
110,000,000
15,493,176
Restricted cash
26,779,673
19,476,259
2,743,174
Long-term time deposits
130,000,000
63,340,000
8,921,252
Loans receivable, net
177,172,509
70,690,305
9,956,521
Property and equipment,
net
883,020,528
814,949,026
114,783,170
Intangible assets, net
186,054,705
120,202,693
16,930,195
Goodwill
164,528,468
164,528,468
23,173,350
Long-term investments
176,854,460
184,758,800
26,022,733
Operating lease
right-of-use assets
1,674,595,179
1,535,330,762
216,246,815
Other assets
119,764,831
104,725,600
14,750,292
Deferred tax assets
232,643,514
239,270,190
33,700,501
* TOTAL ASSETS *
*5,689,310,750*
*5,054,031,708*
*711,845,479*
* LIABILITIES AND
EQUITY *
* Current liabilities: *
Long-term bank loans,
current portion
141,800,000
200,000
28,169
Short-term bank loans
156,300,000
116,800,000
16,450,936
Accounts payable
123,577,770
73,126,677
10,299,677
Advance from customers
25,604,363
22,393,097
3,154,002
Amounts due to related parties
21,717,203
23,094,022
3,252,725
Salary and welfare payable
89,343,058
86,332,096
12,159,621
Deferred rent
-
-
-
Deferred revenue
193,352,239
186,281,838
26,237,248
Accrued expenses and
other current liabilities
441,610,408
478,235,399
67,358,047
Income tax payable
75,016,689
88,307,716
12,437,882
Dividends payable
-
-
-
Operating lease liabilities,
current
272,700,888
-
-
Deferred tax liabilities
-
267,536,846
37,681,777
* Total current liabilities *
*1,541,022,618*
*1,342,307,691*
*189,060,084*
Long-term bank loans
160,000,000
56,800,000
8,000,113
Deferred rent
-
-
-
Deferred revenue
234,374,415
207,905,765
29,282,915
Other long-term liabilities
116,504,594
111,711,748
15,734,271
Operating lease liabilities, non-
current
1,516,274,996
1,391,909,309
196,046,326
Deferred tax liabilities
99,658,423
88,180,537
12,419,969
Unrecognized tax benefits
350,002,241
385,528,814
54,300,598
* TOTAL LIABILITIES *
*4,017,837,287*
*3,584,343,864*
*504,844,275*
*Shareholders' equity:*
Class A ordinary shares
222,587,070
222,587,070
31,350,733
Class B ordinary shares
115,534,210
115,534,210
16,272,653
Paid-in capital
Treasury Stock
(16,971,057)
(36,677,832)
(5,165,965)
Additional paid-in capital
2,080,450,699
1,660,713,349
233,906,583
Retained earnings
(Accumulated losses)
(804,950,820)
(559,275,891)
(78,772,362)
Accumulated other
comprehensive income
27,732,104
28,401,282
4,000,237
*Total GreenTree
Hospitality Group Ltd.
shareholders' equity*
*1,624,382,206*
*1,431,282,188*
*201,591,879*
Non-controlling interests
47,091,257
38,405,656
5,409,324
*Total shareholders' equity*
*1,671,473,463*
*1,469,687,844*
*207,001,203*
*TOTAL LIABILITIES AND *
*SHAREHOLDERS'
EQUITY*
*5,689,310,750*
*5,054,031,708*
*711,845,478*
*GreenTree Hospitality Group Ltd.*
*Unaudited Condensed Consolidated Statements of Comprehensive Income* *Quarter Ended*
*Year Ended* *December 31,
2022*
*December 31,
2023*
*December 31,
2023*
* December 31,
2022*
* December 31,
2023*
* December 31,
2023* *RMB*
*RMB*
*US$*
*RMB*
*RMB*
* US$*
*Revenues*
Leased-and-operated
revenues
160,421,401
174,788,363
24,618,426
700,022,649
787,814,342
110,961,329
Franchised-and-
managed
revenues
159,830,184
172,526,430
24,299,839
621,684,514
740,496,258
104,296,717
Wholesales and
others
40,409,030
24,848,712
3,499,868
147,367,112
98,947,088
13,936,406
*Total revenues*
*360,660,614*
*372,163,506*
*52,418,133*
*1,469,074,275*
*1,627,257,689*
*229,194,452*
*Operating
costs and
expenses*
Operating costs
(258,390,229)
(211,591,676)
(29,802,064)
(1,066,512,951)
(947,438,814)
(133,443,966)
Selling and
marketing
expenses
(10,336,978)
(11,090,473)
(1,562,060)
(68,490,439)
(71,618,033)
(10,087,189)
General and
administrative
expenses
(65,931,472)
(58,045,041)
(8,175,473)
(259,513,863)
(208,433,678)
(29,357,270)
Other operating
expenses
(3,475,960)
(3,569,166)
(502,707)
(8,416,360)
(11,704,553)
(1,648,552)
Impairment loss
of goodwill
(91,236,479)
(91,236,479)
Other general
expenses
56,269,139
(76,173,493)
(10,728,812)
(474,639,163)
(103,469,586)
(14,573,386)
*Total operating
costs and
expenses*
*(373,101,978)*
*(360,469,849)*
*(50,771,116)*
*(1,968,809,255)*
*(1,342,664,664)*
*(189,110,363)*
Other operating
income
7,307,780
11,362,962
1,600,440
23,993,148
27,169,901
3,826,801
*Income from
operations*
*(5,133,584)*
*23,056,619*
*3,247,457*
*(475,741,831)*
*311,762,926*
*43,910,890*
Interest income
and other, net
9,135,865
10,329,773
1,454,918
48,105,125
41,371,162
5,827,006
Interest
expense
(4,969,542)
(916,820)
(129,131)
(27,987,842)
(14,053,841)
(1,979,442)
Gains (losses)
from investment
in equity
securities
(20,301,789)
(943,283)
(132,859)
(62,156,235)
(5,378,104)
(757,490)
Other income,
net
(10,789,683)
(8,965,791)
(1,262,805)
24,404,727
22,783,714
3,209,019
*Income before
income taxes*
*(32,058,733)*
*22,560,498*
*3,177,580*
*(493,376,056)*
*356,485,857*
*50,209,983*
Income tax
expense
30,284,418
(14,657,159)
(2,064,418)
44,412,657
(97,992,481)
(13,801,952)
*Income (loss)
before share of
gains in equity
investees*
*(1,774,315)*
*7,903,339*
*1,113,162*
*(448,963,399)*
*258,493,376*
*36,408,030*
Share of
loss/(income) in
equity
investees, net of
tax
(2,018,324)
(522,092)
(73,535)
(1,598,301)
(1,392,002)
(196,059)
*Net
income(loss)*
*(3,792,639)*
*7,381,247*
*1,039,627*
*(450,561,700)*
*257,101,374*
*36,211,971*
Net
loss/(income)
attributable to
non-controlling
interests
(1,378,340)
3,381,135
476,223
36,260,890
8,685,603
1,223,342
*Net income
attributable to
ordinary
shareholders*
*(5,170,979)*
*10,762,382*
*1,515,850*
*(414,300,810)*
*265,786,977*
*37,435,313*
*Net earnings
per share*
Class A
ordinary
share-basic and
diluted
(0.05)
0.11
0.01
(3.71)
2.60
0.37
Class B
ordinary
share-basic and
diluted
(0.05)
0.11
0.01
(3.71)
2.60
0.37
*Net earnings
per ADS*
Class A
ordinary
share-basic and
diluted
(0.05)
0.11
0.01
(3.71)
2.60
0.37
Class B
ordinary
share-basic and
diluted
(0.05)
0.11
0.01
(3.71)
2.60
0.37
*Weighted
average shares
outstanding*
Class A
ordinary
share-basic and
diluted
68,286,954
67,038,968
67,038,968
68,201,056
67,321,003
67,321,003
Class B
ordinary
share-basic and
diluted
34,762,909
34,762,909
34,762,909
34,762,909
34,762,909
34,762,909
*Other
comprehensive
income, net
of tax*
Foreign
currency
translation
adjustments
4,418,802
(258,427)
(36,399)
(14,148,803)
669,178
94,252
Unrealized
gains(loss) on
available-for-sale
investments,
net of tax
*Comprehensive
income, net
of tax*
*8,211,441*
*7,122,820*
*1,003,228*
*(464,710,503)*
*257,770,552*
*36,306,223*
Comprehensive
loss/(income)
attributable to
non-controlling
interests
(1,378,340)
3,381,135
476,223
36,260,890
8,685,603
1,223,342
*Comprehensive
income (loss)
attributable to
ordinary
shareholders*
*(9,589,781)*
*10,503,955*
*1,479,451*
*(428,449,613)*
*266,456,155*
*37,529,564*
*GreenTree Hospitality Group Ltd.*
*Unaudited Hotel Business Results* *Quarter Ended*
*Year Ended* * December 31,
2022*
* December 31,
2023*
* December 31,
2023*
* December 31,
2022*
* December 31,
2023*
* December 31,
2023* *RMB*
*RMB*
*US$*
*RMB*
*RMB*
* US$*
*Revenues*
Leased-and-operated
revenues
84,299,894
125,521,091
17,679,276
338,506,220
490,924,060
69,145,208
Franchised-and-
managed
revenues
152,893,262
162,861,220
22,938,523
582,441,077
696,321,236
98,074,795
Others
798,068
1,267,182
178,479
15,853,985
4,660,777
656,457
*Total revenues*
*237,991,224*
*289,649,492*
*40,796,278*
*936,801,282*
*1,191,906,073*
*167,876,460*
*Operating costs
and expenses*
Hotel operating
costs
(143,637,483)
(154,556,991)
(21,768,897)
(594,019,322)
(598,841,951)
(84,345,125)
Selling and
marketing
expenses
(8,246,791)
(8,318,853)
(1,171,686)
(38,534,427)
(47,434,683)
(6,681,035)
General and
administrative
expenses
(56,758,869)
(49,670,060)
(6,995,882)
(210,759,610)
(166,861,387)
(23,501,935)
Other operating
expenses
(860,771)
(3,429,367)
(483,016)
(3,244,855)
(4,453,446)
(627,255)
Impairment loss
of goodwill
(91,236,480)
(91,236,480)
Other general
expenses
69,310,842
(36,260,493)
(5,107,184)
(461,597,460)
(63,556,586)
(8,951,758)
*Total operating
costs and
expenses*
*(231,429,552)*
*(252,235,764)*
*(35,526,664)*
*(1,399,392,154)*
*(881,148,053)*
*(124,107,108)*
*Other operating
income*
6,735,609
9,937,407
1,399,655
19,448,889
24,525,333
3,454,321
*Income from
operations*
*13,297,280*
*47,351,133*
*6,669,268*
*(443,141,983)*
*335,283,353*
*47,223,673*
Interest income
and other, net
8,882,426
10,653,312
1,500,488
47,383,941
41,240,610
5,808,618
Interest expense
(5,377,094)
(2,809,528)
(395,714)
(25,375,848)
(13,706,157)
(1,930,472)
Gains (losses)
from investment
in equity
securities
(20,301,789)
(943,283)
(132,859)
(62,156,235)
(5,378,104)
(757,490)
Other income,
net
(10,756,089)
(8,994,153)
(1,266,800)
24,229,536
22,676,046
3,193,854
*Income before
income taxes*
*(14,255,266)*
*45,257,483*
*6,374,383*
*(459,060,589)*
*380,115,748*
*53,538,183*
Income tax
expense
23,746,300
(23,751,765)
(3,345,366)
45,592,419
(102,371,891)
(14,418,779)
*Income (loss)
before share of
gains in equity
investees*
*9,491,034*
*21,505,716*
*3,029,017*
*(413,468,170)*
*277,743,857*
*39,119,404*
Share of
loss/(income) in
equity investees,
net of tax
(2,018,324)
(522,092)
(73,535)
(1,598,301)
(1,392,002)
(196,059)
*Net
income(loss)*
*7,472,710*
*20,983,624*
*2,955,482*
*(415,066,471)*
*276,351,855*
*38,923,345*
*GreenTree Hospitality Group Ltd.*
*Unaudited Restaurant Business Results* *Quarter Ended*
*Year Ended* * December 31, 2022*
* December 31, 2023*
* December 31, 2023*
* December 31, 2022*
* December 31, 2023*
* December 31, 2023* *RMB*
*RMB*
*US$*
*RMB*
*RMB*
* US$*
*Revenues*
Leased-and-operated
revenues
77,192,256
48,191,718
6,787,662
362,806,697
296,890,282
41,816,122
Franchised-and-
managed revenues
6,936,922
9,665,210
1,361,316
39,243,436
44,175,022
6,221,922
Wholesales and
others
39,834,953
29,865,880
4,206,521
131,737,118
100,570,661
14,165,081
*Total revenues*
*123,964,131*
*87,722,808*
*12,355,499*
*533,787,251*
*441,635,965*
*62,203,125*
*Operating costs
and expenses*
Restaurant
operating costs
(114,848,354)
(66,896,044)
(9,422,111)
(472,289,395)
(359,018,687)
(50,566,724)
Selling and
marketing
expenses
(2,110,091)
(2,821,243)
(397,364)
(29,975,916)
(24,232,973)
(3,413,142)
General and
administrative
expenses
(9,172,602)
(8,374,981)
(1,179,591)
(48,754,252)
(41,572,291)
(5,855,335)
Other operating
expenses
(2,615,189)
(139,799)
(19,690)
(5,171,505)
(7,251,107)
(1,021,297)
Impairment loss of
goodwill
Other general
expenses
(13,041,702)
(39,913,000)
(5,621,628)
(13,041,702)
(39,913,000)
(5,621,628)
*Total operating
costs and
expenses*
*(141,787,938)*
*(118,145,067)*
*(16,640,385)*
*(569,232,770)*
*(471,988,058)*
*(66,478,128)*
Other operating
income
572,171
1,425,555
200,785
4,544,259
2,644,568
372,480
*Income from
operations*
*(17,251,636)*
*(28,996,704)*
*(4,084,100)*
*(30,901,260)*
*(27,707,525)*
*(3,902,523)*
Interest income
and other, net
253,439
(323,539)
(45,570)
721,184
130,552
18,388
Interest expense
407,552
1,892,708
266,582
(2,611,994)
(347,684)
(48,970)
Gains (losses) from
investment in
equity securities
-
-
-
-
-
-
Other income, net
(33,594)
28,362
3,995
175,191
107,668
15,164
*Income before
income taxes*
(16,624,239)
(27,399,173)
(3,859,093)
(32,616,879)
(27,816,989)
(3,917,941)
Income tax
expense
6,667,958
9,223,379
1,299,086
(1,179,762)
4,379,410
616,827
*Income (loss)
before share of
gains in equity
investees*
(9,956,281)
(18,175,794)
(2,560,007)
(33,796,641)
(23,437,579)
(3,301,114)
Share of
loss/(income) in
equity investees,
net of tax
-
-
-
-
-
-
*Net income(loss)*
(9,956,281)
(18,175,794)
(2,560,007)
(33,796,641)
(23,437,579)
(3,301,114)
*GreenTree Hospitality Group Ltd.*
*Unaudited Condensed Consolidated Statements* *Quarter Ended*
*Quarter Ended*
*Quarter Ended*
*Quarter Ended* * December 31, 2022*
* December 31, 2022*
* December 31, 2022*
* December 31, 2022* *Hotel*
*Restaurant*
*Elimination*
*Total* *RMB*
*RMB*
*RMB*
*RMB*
*Revenues*
Leased-and-operated
revenues
84,299,894
77,192,256
(1,070,750)
160,421,400
Franchised-and-managed
revenues
152,893,262
6,936,922
159,830,184
Wholesales and Others
798,068
39,834,953
(223,991)
40,409,030
*Total revenues*
*237,991,224*
*123,964,131*
*(1,294,740)*
*360,660,615*
*Operating costs and
expenses*
Operating costs
(143,637,483)
(114,848,354)
95,608
(258,390,229)
Selling and marketing
expenses
(8,246,791)
(2,110,091)
19,904
(10,336,978)
General and
administrative expenses
(56,758,869)
(9,172,602)
(65,931,471)
Other operating expenses
(860,771)
(2,615,189)
(3,475,960)
Impairment loss of
goodwill
(91,236,480)
(91,236,480)
Other general expenses
69,310,842
(13,041,702)
56,269,140
*Total operating costs
and expenses*
*(231,429,552)*
*(141,787,938)*
*115,511*
*(373,101,979)*
Other operating income
6,735,609
572,171
7,307,780
*Income from operations*
*13,297,280*
*(17,251,636)*
*(1,179,228)*
*(5,133,584)*
*GreenTree Hospitality Group Ltd.*
*Unaudited Condensed Consolidated Statements* *Quarter Ended*
*Quarter Ended*
*Quarter Ended*
*Quarter Ended* * December 31,
2023*
* December 31,
2023*
* December 31,
2023*
* December 31,
2023* *Hotel*
*Restaurant*
*Elimination*
*Total* *RMB*
*RMB*
*RMB*
*RMB*
*Revenues*
Leased-and-operated revenues
125,521,091
48,191,718
1,075,554
174,788,363
Franchised-and-managed
revenues
162,861,220
9,665,210
172,526,430
Wholesales and Others
1,267,182
29,865,880
(6,284,350)
24,848,712
*Total revenues*
*289,649,492*
*87,722,808*
*(5,208,794)*
*372,163,506*
*Operating costs and expenses*
Operating costs
(154,556,991)
(66,896,044)
9,861,359
(211,591,676)
Selling and marketing expenses
(8,318,853)
(2,821,243)
49,623
(11,090,473)
General and administrative
expenses
(49,670,060)
(8,374,981)
(58,045,041)
Other operating expenses
(3,429,367)
(139,799)
(3,569,166)
Impairment loss of goodwill
Other general expenses
(36,260,493)
(39,913,000)
(76,173,493)
*Total operating costs and
expenses*
*(252,235,764)*
*(118,145,067)*
*9,910,982*
*(360,469,849)*
Other operating income
9,937,407
1,425,555
11,362,962
*Income from operations*
*47,351,133*
*(28,996,704)*
*4,702,190*
*23,056,619*
*GreenTree Hospitality Group Ltd.*
*Unaudited Condensed Consolidated Statements of Cash Flows* *Quarter Ended*
*Year Ended*
* December 31, 2022*
* December 31, 2023*
* December 31, 2023*
* December 31, 2022*
* December 31, 2023*
* December 31, 2023*
*RMB*
*RMB*
*US$*
*RMB*
*RMB*
* US$*
*Operating activities:*
*Net (loss) income*
*(3,792,639)*
*7,381,247*
*1,039,627*
*(450,561,700)*
*257,101,374*
*36,211,971*
Depreciation and amortization
23,928,112
24,382,514
3,434,205
125,338,901
116,870,237
16,460,829
Impairment of long lived assets
12,698,320
79,192,449
11,154,023
73,005,025
82,092,449
11,562,480
Impairment of goodwill
-
-
91,236,479
-
-
Share of (gains) losses in equity method
investments
2,018,324
522,093
73,535
1,598,301
1,392,003
196,060
Non-cash lease expense
192,827,430
77,705,328
10,944,567
303,302,050
271,156,173
38,191,548
Loss from disposal of a subsidiary
855,223
-
-
16,117,056
1,223,952
172,390
Interest income
(919,568)
(2,325,622)
(327,557)
(1,411,662)
(6,009,370)
(846,402)
Bad debt expense
32,507,188
1,828,945
257,602
431,180,588
38,858,275
5,473,074
Losses and impairment (Gains) on equity
securities held
20,301,789
943,283
132,859
62,156,235
5,378,104
757,490
(Gains) losses on disposal of property
and equipment
1,548,955
1,928,976
271,691
4,518,601
2,166,990
305,214
Foreign exchange (gains) losses
(11,715,615)
(103,025)
(14,511)
(17,843,558)
(372,187)
(52,421)
Share-based compensation
(255,280)
46,054
6,487
(62,356)
62,648
8,824
Changes in operating assets and liabilities
(266,665,301)
(204,346,136)
(28,781,551)
(344,375,879)
(314,871,075)
(44,348,663)
*Net cash provided by operating activities*
*(3,336,938)*
*(12,843,894)*
*(1,809,023)*
*294,198,081*
*455,049,572*
*64,092,394*
*Investing activities:*
Purchases of property and equipment
(18,795,260)
(15,197,120)
(2,140,470)
(80,132,593)
(87,764,045)
(12,361,307)
Purchases of intangible assets
176,694
(573,808)
(80,819)
(108,028)
(740,406)
(104,284)
Proceeds from disposal of property and
equipment
4,335,543
(11,715,110)
(1,650,039)
5,951,096
2,951,611
415,726
Purchases of investments
(79,700,000)
(123,789,565)
(17,435,395)
(161,760,000)
(326,020,045)
(45,918,963)
Proceeds from investments
170,437,530
6,154,723
866,875
746,885,518
204,809,370
28,846,796
Loan advances
3,811,596
24,896,351
3,506,578
141,038,259
135,698,176
19,112,688
Loan collections
(12,011,471)
(6,609,488)
(930,928)
(231,085,171)
(22,643,066)
(3,189,209)
*Net cash (used in) provided by investing
activities*
*68,254,632*
*(126,834,017)*
*(17,864,198)*
*420,789,081*
*(93,708,405)*
*(13,198,553)*
*Financing activities:*
Repurchase of ordinary shares
(19,706,775)
(2,775,641)
(19,706,775)
(2,775,641)
Distribution to the shareholders
-
-
-
(40,999,458)
-
-
Loan from non- controlling interest
4,803,298.85
272,500
38,381
5,103,299
272,500
38,381
Repayment of short-term borrowings
(404,656,400)
(7,700,000)
(1,084,522)
(605,500,000)
(458,300,000)
(64,550,205)
Proceeds from bank borrowings
215,931,400
57,000,000
8,028,282
305,600,000
174,000,000
24,507,387
Capital contribution from non-
controlling interest holders
-
-
-
400,000
-
-
*Net cash provided by (used in)
financing activities*
*(183,921,701)*
*29,865,725*
*4,206,499*
*(335,396,159)*
*(303,734,275)*
*(42,780,078)*
Effect of exchange rate changes on
cash and cash equivalents
(2,193,875)
84,902
11,958
1,248,139
32,095
4,520
*Net (decrease) increase in cash and
cash equivalents*
*(121,197,882)*
*(109,727,284)*
*(15,454,763)*
*380,839,142*
*57,638,987*
*8,118,284*
Cash and cash equivalents at the
beginning of the period
855,159,616
901,328,003
126,949,394
353,122,593
733,961,731
103,376,348
*Cash and cash equivalents at the end
of the period*
*733,961,735*
*791,600,718*
*111,494,631*
*733,961,735*
*791,600,718*
*111,494,632*
*GreenTree Hospitality Group Ltd.*
*Unaudited Reconciliation of GAAP and Non-GAAP Results* *Quarter Ended*
*Year Ended* * December 31, 2022*
* December 31, 2023*
* December 31, 2023*
* December 31, 2022*
* December 31, 2023*
* December 31, 2023* *RMB*
*RMB*
*US$*
*RMB*
*RMB*
*US$*
*Net income*
*(3,792,639)*
*7,381,247*
*1,039,627*
*(450,561,700)*
*257,101,374*
*36,211,971*
*Deduct:*
Other operating income
7,307,780
11,362,962
1,600,440
23,993,148
27,169,901
3,826,801
Interest income and other, net
9,135,865
10,329,773
1,454,918
48,105,125
41,371,162
5,827,006
Gains from investment in equity
securities
-
-
-
-
-
-
Share of gain in equity investees, net of
tax
(420,023)
-
-
-
-
-
Other income, net
(10,789,683)
(8,965,791)
(1,262,805)
24,404,727
22,783,714
3,209,019
*Add:*
Other operating expenses
3,475,960
3,569,166
502,707
8,416,360
11,704,553
1,648,552
Other general expenses
34,967,340
76,173,493
10,728,812
565,875,642
103,469,586
14,573,386
Income tax expenses (benefits)
14,128,239
14,657,159
2,064,418
97,992,481
13,801,952
Share of loss in equity investees, net of
tax
522,092
73,535
1,392,002
196,059
Interest expenses
4,969,542
916,820
129,131
27,987,842
14,053,841
1,979,442
Depreciation and amortization
23,408,752
24,897,604
3,506,754
125,338,901
116,870,237
16,460,829
Losses from investment in equity
securities
41,989,373
943,283
132,859
62,156,235
5,378,104
757,490
*Adjusted EBITDA (Non-GAAP)*
*113,912,627*
*116,333,920*
*16,385,290*
*242,710,280*
*516,637,401*
*72,766,856*
*Quarter Ended*
*Year Ended* * December 31, 2022*
* December 31, 2023*
* December 31, 2023*
* December 31, 2022*
* December 31, 2023*
* December 31, 2023* *RMB*
*RMB*
*US$*
*RMB*
*RMB*
*US$*
*Net income*
*(3,792,639)*
*7,381,247*
*1,039,627*
*(450,561,700)*
*257,101,374*
*36,211,971*
*Deduct:*
Government subsidies (net of 25% tax)
2,145,340
3,129,127
440,728
9,311,397
9,800,432
1,380,362
Gains from investment in equity
securities (net of 25% tax)
-
-
-
-
-
Other income (net of 25% tax)
(8,092,263)
(6,724,343)
(947,104)
18,303,545
17,087,786
2,406,764
*Add:*
Share-based compensation
(255,280)
46,054
6,487
(62,356)
62,648
8,824
Losses from investments in equity
securities (net of 25% tax)
15,226,341
707,462
99,644
46,617,176
4,033,578
568,118
One-time fees and expenses
828,267
116,659
4,889,605
3,010,039
423,955
Other general expenses
34,967,340
76,173,493
10,728,812
565,875,642
103,469,586
14,573,386
Impairment charges and provisions for
other assets
-
-
-
*-*
*-*
*-*
*Core net income (Non-GAAP)*
*52,092,685*
*88,731,738*
*12,497,604*
*139,143,425*
*340,789,007*
*47,999,128*
*Core net income per ADS (Non-
GAAP)*
Class A ordinary share-basic and
diluted
0.51
0.87
0.12
1.35
3.34
0.47
Class B ordinary share-basic and
diluted
0.51
0.87
0.12
1.35
3.34
0.47
*Hotel **Operational Data * *December 31,
**202**2*
*December 31,
**202**3*
*Total hotels in operation:*
*4059*
*4238*
Leased and owned hotels
61
65
Franchised hotels
3,998
4,173
*Total hotel rooms in operation*
*302,497*
*309,495*
Leased and owned hotels
6,565
7,318
Franchised hotels
330,089
302,177
*Number of cities*
*355*
*360*
*Quarter Ended*
*202**2** Q4*
*202**3 **Q4*
* Occupancy rate (as a percentage)*
Leased-and-owned hotels
62.4 %
66.9 %
Franchised hotels
63.0 %
72.5 %
Blended
63.0 %
72.4 %
* Average daily rate (in RMB)*
Leased-and-owned hotels
208
241
Franchised hotels
163
175
Blended
165
177
*RevPAR (in RMB)*
Leased-and-owned hotels
130
161
Franchised hotels
103
127
Blended
104
128
*Number of Hotels in Operation*
*Number of Hotel Rooms in
Operation* *December
31, **202**2*
*Dec