-- Total revenues decreased by 14.2 % year over year to RMB 585.1 million
(US$ 81 . 7 million) [1] .
-- Income from operations was RMB 91.5 million (US$ 12.8 million) [1]
compared to RMB 156 .7 million for the first half of 202 4 .
-- Net income was RMB 198.8 million (US$ 27.7 million) [1] compared to RMB
119.6 million for the first half of 202 4 .
-- Adjusted EBITDA (non-GAAP) [ 2 ] de creased by 22.2 % year over year to
RMB 149.7 million (US$ 20.9 million) [1]
-- Core net income (non-GAAP) [ 3 ] de creased by 29.6 % year over year to
RMB 92.1 million (US$ 12.9 million) [1] .
SHANGHAI, Sept. 30, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. $(GHG)$ ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the first half of 2025.
First Half 2025 Operational Highlights
Hotels
-- A total of 4,509 hotels with 321,977 hotel rooms were in operation as of
June 30, 2025.
-- The Company opened 138 hotels and had a pipeline of 1,245 hotels
contracted for or under development as of June 30, 2025.
-- The average daily room rate was RMB157 in the first quarter of 2025, a
decrease of 6.9% from RMB169 in the first quarter of 2024, and RMB166 in
the second quarter of 2025, a 3.9% year-over-year decrease.
-- The occupancy rate was 64.0% in the first quarter of 2025,
down from 67.8% in the first quarter of 2024, and 67.9% in the second
quarter of 2025, compared to 72.5% in the second quarter of 2024.
-- Revenue per available room, or RevPAR, was RMB100 in the first quarter of
2025, a 12.1% year-over-year decrease, and RMB113 in the second quarter
of 2025, a 10.0% year-over-year decrease.
1.The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1636
on June 30, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.fe
deralreserve.gov/releases/h10/20250707/. 2.Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating
expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and
amortization, losses from investment in equity securities and other general expenses, but excludes other operating income,
interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of
tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned
according to the above mentioned definition.
3.Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (
net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes governme
nt subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% ta
x).
Restaurants
-- A total of 183 restaurants were in operation as of June 30, 2025
-- The AC (average check) was RMB48 in the first quarter of 2025, a 21.5%
year-over-year decrease, and RMB43 in the second quarter of 2025, a 23.8%
year-over-year decrease.
-- The ADT (average daily tickets) was 83 in the first quarter of 2025, down
from 94 in the first quarter of 2024, and 85 in the second quarter of
2025, compared to 90 in the second quarter of 2024.
-- The ADS (average daily sales per store) was RMB 4,029 in the first
quarter of 2025, a decrease of 37.1% from RMB 5,525 in the first quarter
of 2024, and RMB 3,629 in the second quarter of 2025, a 30.5%
year-over-year decrease.
First Half 202 5 Financial Results
Six months Ended
-----------------------------------------------------
June 30, June 30, June 30, June 30,
2024 2024 2024 2024
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Revenues
Leased-and-operated
revenues 228,393,612 89,674,836 - 318,068,448
Franchised-and-managed
revenues 308,970,282 3,769,753 - 312,740,035
Wholesales and others 2,085,205 49,505,598 -460,202 51,130,601
----------- ------------ ------------ ------------
Total revenues 539,449,099 142,950,187 -460,202 681,939,084
=========== ============ ============ ============
Six months Ended
-------------------------------------------------------------
June 30, June 30, June 30, June 30, June 30,
2025 2025 2025 2025 2025
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Revenues
Leased-and-operated
revenues 194,759,527 59,058,453 -207,413 253,610,567 35,402,670
Franchised-and-managed
revenues 291,753,194 3,176,474 - 294,929,668 41,170,594
Wholesales and others 1,478,298 35,511,759 -443,807 36,546,250 5,101,660
----------- ---------- ----------- ----------- ----------
Total revenues 487,991,019 97,746,686 -651,220 585,086,485 81,674,924
=========== ========== =========== =========== ==========
Total revenues for the first half of 2025 were RMB585.1 million (US$81.7 million)([1]) , a 14.2% year-over-year decrease.
Hotel revenues were RMB488.0 million (US$68.1 million), a 9.5% year-over-year decrease due to an 11% year-over-year decrease in blended RevPAR across the first half year and the closure of 9 L&O hotels since the third quarter of last year. The decrease was partially offset by revenues from new openings.
Restaurant revenues were RMB97.7 million (US$13.6 million), a 31.6% year-over-year decrease, mainly due to the decrease in the number of L&O stores and lower ADS in the second quarter low season.
Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB253.6 million (US$35.4 million)([1]) , a 20.3% year-over-year decrease.
Total revenues from L&O hotels were RMB 194.8 million (US$27.2 million)([1]) , a 14.7% year-over-year decrease. The decrease was primarily attributable to the closing of 9 L&O hotels since the third quarter of last year, a 3.4% year-over-year decrease in RevPAR, and a reduction in sublease revenues mainly due to lease expiration.
Total revenues from L&O restaurants were RMB59.1 million (US$8.2 million)([1]) , a 34.1% year-over-year decrease, mainly due to the closure of 13 L&O restaurants since the third quarter of 2024 and the year-over-year decrease in ADS.
Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB294.9 million (US$41.2 million), a 5.7% year-over-year decrease.
Total revenues from F&M hotels were RMB291.8 million (US$40.7 million)([1]) , a 5.6% year-over-year decrease, primarily due to a 11% decrease in F&M hotels' blended RevPAR across the first half year and partially offset by new openings.
Total revenues from F&M restaurants were RMB3.2 million (US$0.4 million)([1]) , a 15.7% year-over-year decrease, mainly due to the year-over-year decrease in ADS and partially offset by new openings.
Total revenues from wholesale and others were RMB36.5 million (US$ 5.1 million)([1]) , a 28.5% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.
Total operating costs and expenses
Six Months Ended
-------------------------------------------------------------
June 30, June 30, June 30, June 30,
2024 2024 2024 2024
RMB RMB RMB RMB
Hotel Restaurant Elimination Total
Operating costs
and expenses
Operating costs 295,609,282 117,276,623 -440,869 412,445,036
Selling and
marketing
expenses 28,677,514 5,591,136 -19,334 34,249,316
General and
administrative
expenses 87,397,198 15,778,679 - 103,175,877
Other operating
expenses 938,244 1,481,949 - 2,420,193
Other general
expenses 11,756,531 - - 11,756,531
------------- -------------- -------------- --------------
Total operating
costs and
expenses 424,378,769 140,128,387 -460,203 564,046,953
============= ============== ============== ==============
Six Months Ended
-------------------------------------------------------------
June 30, June 30, June 30, June 30, June 30,
2025 2025 2025 2025 2025
RMB RMB RMB RMB US$
Hotel Restaurant Elimination Total Total
Operating costs
and expenses
Operating costs 286,868,623 84,128,367 -651,220 370,345,770 51,698,276
Selling and
marketing
expenses 22,964,944 4,564,490 - 27,529,434 3,842,961
General and
administrative
expenses 79,683,639 10,475,363 - 90,159,002 12,585,711
Other operating
expenses 4,290,239 442,297 - 4,732,536 660,637
Other general
expenses 11,611,311 - - 11,611,311 1,620,877
----------- ---------- ----------- ----------- ----------
Total operating
costs and
expenses 405,418,756 99,610,517 -651,220 504,378,053 70,408,462
=========== ========== =========== =========== ==========
Operating costs were RMB370.3 million (US$51.7 million)([1]) , a 10.2% year-over-year decrease.
Operating costs of the hotel business were RMB286.9 million (US$40.0 million)([1]) , a 0.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization and lower consumable, food and beverage caused by the closing of L&O hotels, partially offset by the rental increase caused by the renewal of certain lease agreements.
Operating costs of the restaurant business were RMB84.1 million (US$11.7 million)([1]) , a 28.3% year-over-year decrease. The decrease was mainly due to the closure of L&O stores.
Selling and marketing expenses were RMB27.5 million (US$3.8 million)([1]) , a 19.6% year-over-year decrease.
Selling and marketing expenses of the hotel business were RMB23.0 million (US$3.2 million)([1]) , a19.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses, traveling and meal expenses.
Selling and marketing expenses of the restaurant business were RMB4.6 million (US$0.6 million)([1]) , an 18.4% year-over-year decrease.
General and administrative, or G&A expenses were RMB90.2 million (US$12.6 million)([1]) , a 12.6% year-over-year decrease.
G&A expenses of the hotel business were RMB79.7 million (US$11.1 million)([1]) , a 14.7% year-over-year decrease. The decrease was mainly due to a decrease in depreciation and amortization and lower consulting fees.
G&A expenses of the restaurant business were RMB10.5 million (US$1.5 million)([1]) , a 33.6% year-over-year decrease, mainly due to lower staff related expenses.
Other general expenses of the hotel business were RMB11.6 million (US$1.6 million)([1]) , a 1.2% year-over-year decrease. These expenses for the first half of 2025 include only the provisions for loan receivables related to franchisee loans.
Gross profit was RMB214.7 million (US$30.0 million)([1]) , a year-over-year decrease of 22.1%. Gross margin was 36.7%, compared to 40.4% in the first half of 2024. Gross profit of the hotel business was RMB201.1 million (US$28.1 million)([1]) , a 19.5% year-over-year decrease. Gross profit of the restaurant business was RMB13.6 million (US$1.9 million)([1]) , a 47.0% year-over-year decrease.
Income from operations was RMB91.5 million (US$12.8 million)([1]) (,) compared to RMB156.7 million in the first half of 2024, with a margin of 15.6%.
Income from operations of the hotel business was RMB93.0 million (US$13.0 million)([1]) (,) compared to income from operations of RMB151.9 million in the first half of 2024, with a margin of 19.1%.
Income from operations of the hotel business in the first half of 2024 included the gain form the disposal of a property. Excluding this impact and the impact from the closing of L&O hotels, as well as the impact of bad debts, income from operations purely related to operations decreased by approximately 12.1%.
Income (loss) from operations of the restaurant business in the first half of 2025 was a loss of RMB1.5 million (US$0.2 million)([1]) , compared to income from operations of RMB4.7 million in the first half of 2024, with a margin of -1.5%.
Net income in the first half of 2025 was RMB198.8 million (US$27.7 million)([1]) , compared to net income of RMB119.6 million in the first half of 2024, and net margin was 34.0%.
N et income of the hotel business was RMB200.6 million (US$28.0 million)([1]) , compared to a net income of RMB120.4 million in the first half of 2024, and net margin was 41.1%. Hotel net income was impacted by the divestment of our ownership in Argyle, the realized gain from an equity investment, foreign exchange losses, the closure of L&O hotels, and bad debt expenses driven by accounts receivables. Excluding these factors, net income decreased by almost 9.5%.
Net income (loss) of the restaurant business in the first half of 2025 was a loss of RMB1.8 million (US$0.3 million)([) (1]) , compared to a net income of RMB3.7 million in the first half of 2024, and net margin was -1.9%.
Adjusted EBITDA (non-GAAP)([2]) was RMB149.7 million (US$20.9 million)([1]) , a year-over-year decrease of 22.2%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 25.6%, compared to 28.2% in the first half of 2024.
Core net income (non-GAAP) was RMB92.1 million (US$12.9 million)([1]) , a year-over-year decrease of 29.6%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the first half of 2025 was 15.7%, compared to 19.2% in the first half of 2024.
Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB1.99 (US$0.28)([1]) , increased from RMB1.19 in the first half of 2024.
Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.91 (US$0.13)([1]) , decreased from RMB1.29 in the first half of 2024.
Cash flow- Operating cash inflow was RMB104.8 million (US$14.6 million)([1]) as a result of income from operations. Investing cash inflow for the first half of 2025 was RMB77.0 million (US$10.8 million)([1]) , which was primarily due to the disposal of our ownership in Argyle. Financing cash outflow was RMB0.2 million (US$0.03 million)([1]) , due to the repayment of bank loans by the end of June 2025.
C ash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,034.9 million (US$284.1 million)([1]) ,compared to RMB1,839.1 million as of December 31, 2024. The increase was mainly attributable to continued operating cash inflow and the divestment of our investment in Argyle.
Guidance
Based on our performance in the first half of 2025 and considering the impact from closure of certain L&O hotels due to lease expiration and business strategy adjustments, we adjust our previous revenue guidance for the hotel business to -10% to -13% year-over-year.
Dividend distribution
The board of directors has approved the payment of a cash dividend of US$0.06 per ordinary share, or US$0.06 per American Depositary Share ("ADS") payable to holders of the Company's ordinary shares shown on the Company's record at the close of trading on October 31, 2025 (the "Record Date").
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 June 30, 2025, GreenTree had a total number of 4,509 hotels and 183 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th 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 2024 according to the China Hospitality Association.
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, and efficient system, 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, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 1,490,235,562 1,666,620,666 232,651,274
Restricted cash 16,096,476 11,391,736 1,590,225
Short-term investments 10,475 33,622 4,693
Investments in equity
securities - - -
Accounts receivable, net of
allowance 99,688,034 118,040,098 16,477,762
Amounts due from related
parties 21,839,929 21,683,467 3,026,895
Inventories 6,881,470 7,269,088 1,014,726
Other current assets 114,898,590 140,022,478 19,546,384
Loans receivable, net 85,463,467 64,146,183 8,954,462
Total current assets 1,835,114,003 2,029,207,338 283,266,421
================= ============= =============
Non-current assets:
Amounts due from a related
party 110,000,000 110,000,000 15,355,408
Restricted cash 18,869,900 18,869,900 2,634,136
Long-term time deposits 285,570,000 285,570,000 39,864,035
Loans receivable, net 15,372,238 12,404,118 1,731,548
Property and equipment, net 649,528,210 631,282,765 88,123,676
Intangible assets, net 75,677,551 74,635,340 10,418,692
Goodwill 96,074,468 96,074,468 13,411,479
Long-term investments 184,024,217 202,703,037 28,296,253
Operating lease right-of-use
assets 1,328,582,419 1,352,475,974 188,798,366
Other assets 102,545,848 136,936,782 19,115,638
Deferred tax assets 245,760,095 243,030,389 33,925,734
----------------- ------------- -------------
TOTAL ASSETS 4,947,118,949 5,193,190,111 724,941,386
================= ============= =============
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current
portion - - -
Short-term bank loans 400,000 400,000 55,838
Accounts payable 56,488,405 48,217,419 6,730,892
Advance from customers 25,684,437 27,171,457 3,792,989
Amounts due to related
parties 17,462,176 15,717,073 2,194,019
Salary and welfare payable 78,234,585 78,631,590 10,976,547
Deferred revenue 175,046,178 158,656,395 22,147,579
Accrued expenses and other
current liabilities 481,910,291 528,230,470 73,738,130
Income tax payable 88,876,497 85,376,977 11,918,166
Dividends payable - - -
Operating lease liabilities,
current 241,363,244 253,428,345 35,377,233
Total current liabilities 1,165,465,813 1,195,829,726 166,931,393
================= ============= =============
Long-term bank loans 256,200,000 256,000,000 35,736,222
Deferred revenue 176,353,919 167,654,624 23,403,683
Other long-term liabilities 120,975,955 119,503,626 16,682,063
Operating lease liabilities,
non-current 1,215,776,075 1,259,009,381 175,750,933
Deferred tax liabilities 79,670,908 59,930,841 8,366,023
Unrecognized tax benefits 440,072,214 445,234,185 62,152,296
----------------- ------------- -------------
TOTAL LIABILITIES 3,454,514,884 3,503,162,383 489,022,613
================= ============= =============
Shareholders' equity:
Class A ordinary shares 222,587,070 222,587,070 31,071,957
Class B ordinary shares 115,534,210 115,534,210 16,127,954
Treasury Stock -37,043,116 -48,049,536 -6,707,457
Additional paid-in capital 1,680,148,272 1,609,972,272 224,743,463
Retained earnings
(Accumulated losses) -528,513,570 -256,875,683 -35,858,463
Accumulated other
comprehensive income 6,033,263 15,696,666 2,191,170
----------------- ------------- -------------
Total GreenTree Hospitality
Group Ltd. shareholders'
equity 1,458,746,128 1,658,864,999 231,568,624
================= ============= =============
Non-controlling interests 33,857,937 31,162,729 4,350,149
----------------- ------------- -------------
Total shareholders' equity 1,492,604,065 1,690,027,728 235,918,773
================= ============= =============
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 4,947,118,949 5,193,190,111 724,941,386
================= ============= =============
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
Six Months Ended
-------------------------------------------
June 30, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
Revenues
Leased-and-operated revenues 318,068,448 253,610,567 35,402,670
Franchised-and-managed revenues 312,740,035 294,929,668 41,170,594
Wholesales and others 51,130,601 36,546,250 5,101,660
------------- ------------- -------------
Total revenues 681,939,084 585,086,485 81,674,924
============= ============= =============
Operating costs and expenses
Operating costs -412,445,036 -370,345,770 -51,698,276
Selling and marketing expenses -34,249,316 -27,529,434 -3,842,961
General and administrative
expenses -103,175,877 -90,159,002 -12,585,711
Other operating expenses -2,420,193 -4,732,536 -660,637
Other general expenses -11,756,531 -11,611,311 -1,620,877
------------- ------------- -------------
Total operating costs and
expenses -564,046,953 -504,378,053 -70,408,462
============= ============= =============
Other operating income 38,768,237 10,762,347 1,502,366
------------- ------------- -------------
Income from operations 156,660,367 91,470,779 12,768,828
============= ============= =============
Interest income and other, net 19,950,499 18,563,426 2,591,354
Interest expense -4,369,058 -3,817,915 -532,960
Gains (losses) from investment in
equity securities -15,424,655 24,800,795 3,462,057
Other income, net 16,791,024 97,329,451 13,586,667
------------- ------------- -------------
Income before income taxes 173,608,177 228,346,536 31,875,946
============= ============= =============
Income tax expense -53,181,694 -30,183,730 -4,213,486
------------- ------------- -------------
Income (loss) before share of
gains in equity investees 120,426,483 198,162,806 27,662,460
============= ============= =============
Share of loss/(income) in equity
investees, net of tax -869,757 603,873 84,297
------------- ------------- -------------
Net income(loss) 119,556,726 198,766,679 27,746,757
============= ============= =============
Net loss/(income) attributable to
non-controlling interests 1,030,179 2,695,208 376,237
------------- ------------- -------------
Net income attributable to
ordinary shareholders 120,586,905 201,461,887 28,122,994
============= ============= =============
Net earnings per share(1)
Class A ordinary share-basic and
diluted 1.19 1.99 0.28
Class B ordinary share-basic and
diluted 1.19 1.99 0.28
Net earnings per ADS
Class A ordinary share-basic and
diluted 1.19 1.99 0.28
Class B ordinary share-basic and
diluted 1.19 1.99 0.28
Weighted average shares
outstanding
Class A ordinary share-basic and
diluted 66,780,612 66,636,925 66,636,925
Class B ordinary share-basic and
diluted 34,762,909 34,762,909 34,762,909
Other comprehensive income, net
of tax
Foreign currency translation
adjustments -8,105,751 9,663,403 1,348,959
Unrealized gains(loss) on
available-for-sale investments,
net of tax
Comprehensive income, net of tax 111,450,975 208,430,082 29,095,716
============= ============= =============
Comprehensive loss/(income)
attributable to non-controlling
interests 1,030,179 2,695,208 376,237
------------- ------------- -------------
Comprehensive income (loss)
attributable to ordinary
shareholders 112,481,154 211,125,290 29,471,953
============= ============= =============
1. Each ADS represents one ordinary share. EPS per ADS equals EPS per ordinary
share.
GreenTree Hospitality Group Ltd.
Unaudited Hotel Business Results
Six Months Ended
-------------------------------------------
June 30, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
Revenues
Leased-and-operated revenues 228,393,613 194,759,527 27,187,382
Franchised-and-managed revenues 308,970,282 291,753,194 40,727,175
Others 2,085,206 1,478,297 206,362
============= ============= =============
Total revenues 539,449,101 487,991,018 68,120,919
============= ============= =============
Operating costs and expenses
Hotel operating costs -295,609,282 -286,868,623 -40,045,316
Selling and marketing expenses -28,677,514 -22,964,944 -3,205,783
General and administrative
expenses -87,397,198 -79,683,639 -11,123,407
Other operating expenses -938,244 -4,290,239 -598,894
Other general expenses -11,756,531 -11,611,311 -1,620,877
============= ============= =============
Total operating costs and
expenses -424,378,769 -405,418,756 -56,594,277
============= ============= =============
Other operating income 36,850,398 10,391,669 1,450,621
============= ============= =============
Income from operations 151,920,730 92,963,931 12,977,263
============= ============= =============
Interest income and other, net 19,908,718 18,502,925 2,582,909
Interest expense -4,369,058 -3,769,199 -526,160
Gains (losses) from investment in
equity securities -10,784,976 24,800,795 3,462,057
Other income, net 16,709,039 97,352,813 13,589,929
============= ============= =============
Income before income taxes 173,384,453 229,851,265 32,085,998
============= ============= =============
Income tax expense -52,101,925 -29,850,815 -4,167,013
============= ============= =============
Income (loss) before share of
gains in equity investees 121,282,528 200,000,450 27,918,985
============= ============= =============
Share of loss/(income) in equity
investees, net of tax -869,757 603,873 84,297
============= ============= =============
Net income(loss) 120,412,771 200,604,323 28,003,282
============= ============= =============
GreenTree Hospitality Group Ltd.
Unaudited Restaurant Business Results
Six Months Ended
-------------------------------------------
June 30, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
Revenues
Leased-and-operated revenues 89,674,836 59,058,453 8,244,242
Franchised-and-managed revenues 3,769,753 3,176,474 443,419
Wholesales and others 49,505,597 35,511,759 4,957,250
============= ============= =============
Total revenues 142,950,186 97,746,686 13,644,911
============= ============= =============
Operating costs and expenses
Restaurant operating costs -117,276,623 -84,128,367 -11,743,867
Selling and marketing expenses -5,591,136 -4,564,490 -637,178
General and administrative
expenses -15,778,679 -10,475,363 -1,462,304
Other operating expenses -1,481,949 -442,297 -61,743
Other general expenses - - -
============= ============= =============
Total operating costs and
expenses -140,128,387 -99,610,517 -13,905,092
============= ============= =============
Other operating income 1,917,838 370,679 51,745
============= ============= =============
Income from operations 4,739,637 -1,493,152 -208,436
============= ============= =============
Interest income and other, net 41,782 60,501 8,446
Interest expense - -48,716 -6,800
Gains (losses) from investment in
equity securities - - -
Other income, net -27,094 -23,362 -3,262
============= ============= =============
Income before income taxes 4,754,325 -1,504,729 -210,052
============= ============= =============
Income tax expense -1,079,769 -332,915 -46,473
============= ============= =============
Income (loss) before share of
gains in equity investees 3,674,556 -1,837,644 -256,525
============= ============= =============
Share of loss/(income) in equity
investees, net of tax - - -
============= ============= =============
Net income(loss) 3,674,556 -1,837,644 -256,525
============= ============= =============
GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
Six Months Ended
-------------------------------------------
June 30, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
Operating activities:
Net (loss) income 119,556,728 198,766,679 27,746,759
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 60,479,676 52,696,207 7,356,107
Noncash lease expense 137,229,448 129,173,622 18,031,942
Loss from disposal of a
subsidiary -839,682 - -
Bad debt expenses 21,768,072 25,491,737 3,558,509
Losses (Gains) and impairment on
equity securities held 15,424,655 -24,800,795 -3,462,057
(Gains) losses on disposal of
property, plant and equipment -25,116,235 190,764 26,630
Foreign exchange gains losses -8,763,951 5,889,694 822,170
Others non-cash expense(income) -4,315,806 -603,873 -84,297
(Gains) from the disposal of
long-term investments - -114,042,806 -15,919,762
Accounts receivable -7,729,152 -32,232,489 -4,499,482
Inventories 14,889,563 -387,618 -54,109
Amounts due from related parties 299,828 433,622 60,531
Other current assets 5,084,951 -24,680,055 -3,445,203
Other assets 1,300,958 -9,355,971 -1,306,043
Accounts payable -12,560,243 -8,291,559 -1,157,457
Amounts due to related parties -1,404,655 -1,960,078 -273,616
Salary and welfare payable -1,424,059 397,005 55,420
Deferred revenue -31,702,936 -25,089,078 -3,502,300
Advance from customers -417,287 1,487,020 207,580
Accrued expenses and other
current liabilities -3,285,616 46,320,173 6,466,047
Income tax payable -8,261,323 -3,499,520 -488,514
Unrecognized tax benefits -6,196,090 5,161,971 720,583
Operating lease liabilities -109,769,095 -97,768,770 -13,647,994
Other long-term liabilities -8,319,829 -1,472,329 -205,529
Deferred taxes 13,966,300 -17,010,361 -2,374,555
============= ============= =============
Net cash provided by operating
activities 159,894,221 104,813,193 14,631,360
============= ============= =============
Investing activities:
Purchases of property, plant and
equipment -20,193,926 -19,357,542 -2,702,209
Purchases of intangible assets - - -
Proceeds from disposal of
property, plant and equipment 139,733,100 237,334 33,131
Payment for acquisition of
minority equity -966,000 - -
Proceeds from disposal of a
long-term investment - 109,036,386 15,220,893
Advances for purchases of
property and equipment - -25,034,964 -3,494,746
Purchases of short-term
investments - -23,147 -3,231
Proceeds from short-term
investments 419,362,037 - -
Proceeds from long-term time
deposits -222,230,000 - -
Proceeds from disposal of
subsidiaries 1,500,000 - -
Loan to related parties -270,000 -625,000 -87,247
Repayment from related parties - 118,982 16,609
Loan to third parties -1,200,000 - -
Repayment of loan from third
parties 5,595,889 - -
Loan to franchisees -1,600,000 -2,010,000 -280,585
Repayment from franchisees 50,977,221 14,684,093 2,049,820
============= ============= =============
Net cash (used in) provided by
investing activities 370,708,321 77,026,142 10,752,435
============= ============= =============
Financing activities:
Distribution to the shareholders -760,321 - -
Repayment of short-term loans -117,000,000 -200,000 -27,919
Proceeds from bank loans 200,000,000 - -
Net cash provided by (used in)
financing activities 82,239,679 -200,000 -27,919
============= ============= =============
Effect of exchange rate changes
on cash and cash equivalents and
restricted cash -2,799,929 -9,958,977 -1,390,220
Net (decrease) increase in cash
and cash equivalents 610,042,292 171,680,358 23,965,656
============= ============= =============
Cash and cash equivalents at the
beginning of the period 791,600,712 1,525,201,938 212,909,981
============= ============= =============
Cash and cash equivalents at the
end of the period 1,401,643,003 1,696,882,296 236,875,637
============= ============= =============
GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results
Six Months Ended
-------------------------------------------
June 30, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
Net income 119,556,728 198,766,679 27,746,759
============= ============= =============
Deduct:
Other operating income 38,768,236 10,762,348 1,502,366
Interest income and other, net 19,950,499 18,563,426 2,591,354
Gains from investment in equity
securities - 24,800,795 3,462,057
Share of gain in equity
investees, net of tax - 603,873 84,297
Other income, net 16,791,024 97,329,451 13,586,667
Add:
Other operating expenses 2,420,193 4,732,536 660,637
Other general expenses 11,756,531 11,611,311 1,620,877
Income tax expenses (benefits) 53,181,694 30,183,730 4,213,486
Share of loss in equity
investees, net of tax 869,757 - -
Interest expenses 4,369,058 3,817,915 532,960
Depreciation and amortization 60,479,676 52,696,207 7,356,106
Losses from investment in equity
securities 15,424,655 - -
Other expense, net - - -
============= ============= =============
Adjusted EBITDA (Non-GAAP) 192,548,532 149,748,485 20,904,084
============= ============= =============
Six Months Ended
-------------------------------------------
June 30, 2024 June 30, 2025 June 30, 2025
RMB RMB US$
Net income 119,556,728 198,766,679 27,746,759
============= ============= =============
Deduct:
Government subsidies (net of 25%
tax) 469,886 5,447,641 760,461
Gains from investment in equity
securities - 18,600,596 3,462,057
Other income (net of 25% tax) 12,593,268 101,507,790 14,169,941
Add:
Share-based compensation 31,324 - -
Losses from investments in equity
securities (net of 25% tax) 11,568,491 - -
Other expense (net of 25% tax) - - -
One-time fees and expenses 1,055,008 - -
Other general expenses 11,756,531 11,611,311 1,620,877
Income tax expenses related to
dividend distribution - 7,299,300 1,018,943
============= ============= =============
Core net income (Non-GAAP) 130,904,926 92,121,263 11,994,120
============= ============= =============
Core net income per ADS
(Non-GAAP)
Class A ordinary share-basic and
diluted 1.29 0.91 0.12
Class B ordinary share-basic and
diluted 1.29 0.91 0.12
Hotel Operational Data
June 30, 202 4 June 30, 202 5
-------------- --------------
Total hotels in operation: 4,272 4,509
Leased and owned hotels 62 55
Franchised hotels 4,210 4,454
Total hotel rooms in operation 312,734 321,977
Leased and owned hotels 6,937 6,772
Franchised hotels 305,797 315,245
Number of cities 353 357
---------------------------------- -------------- --------------
Quarter Ended
------------------------------
202 4 Q 1 202 5 Q 1
-------------- --------------
Occupancy rate (as a percentage)
Leased-and-owned hotels 66.6 % 61.0 %
Franchised hotels 67.9 % 64.1 %
Blended 67.8 % 64.0 %
Average daily rate (in RMB)
Leased-and-owned hotels 235 236
Franchised hotels 167 155
Blended 169 157
RevPAR (in RMB)
Leased-and-owned hotels 157 144
Franchised hotels 113 99
Blended 114 100
---------------------------------- -------------- --------------
Quarter Ended
------------------------------
202 4 Q 2 202 5 Q 2
-------------- --------------
Occupancy rate (as a percentage)
Leased-and-owned hotels 70.7 % 72.3 %
Franchised hotels 72.6 % 67.8 %
Blended 72.5 % 67.9 %
Average daily rate (in RMB)
Leased-and-owned hotels 250 245
Franchised hotels 171 164
Blended 173 166
RevPAR (in RMB)
Leased-and-owned hotels 177 177
Franchised hotels 124 111
Blended 135 113
---------------------------------- -------------- --------------
Number of Hotel Rooms in
Number of Hotels in Operation Operation
----------------- ----------------------------- ----------------------------
June 30, 202 June 30, 202 June 30, 202
4 June 30, 202 5 4 5
----------------- ------------- -------------- ------------- -------------
Mid-to-up-scale 505 569 47,697 52,773
GreenTree
Eastern 227 236 24,493 25,107
Deepsleep Hotel 7 8 534 610
Gem 82 119 7,258 10,781
Gya 75 72 6,238 6,012
Vx 99 108 8,695 9,024
Others 15 26 499 1,239
Mid-scale 2,948 3,005 229,970 226,336
GreenTree Inn 2,315 2,366 182,957 184,561
GT Alliance 428 408 32,726 25,930
GreenTree
Apartment 21 24 1,385 1,545
Vatica 109 107 7,705 7,481
Geli 75 100 5,197 6,819
Economy hotels 819 935 35,067 42,868
Shell 819 935 35,067 42,868
Others - - - -
----------------- ------------- -------------- ------------- -------------
Total 4,272 4,509 312,734 321,977
----------------- ------------- -------------- ------------- -------------
Restaurant Operational Data
June 30, 2024 June 30, 2025
------------- -------------
Total restaurants in operation: 183 183
Leased and owned restaurants 24 15
Franchised restaurants 159 168
Number of cities(1) 64 53
-------------------------------- ------------- -------------
Da Niang Dumplings 155 164
-------------------------------- ------------- -------------
Bellagio 28 19
-------------------------------- ------------- -------------
Quarter Ended
----------------------------
2024 Q1 2025 Q1
------------- -------------
ADT
Leased-and-owned restaurants 155 210
Franchised restaurants 81 71
Blended 94 83
AC (in RMB)
Leased-and-owned restaurants 113 98
Franchised restaurants 42 35
Blended 59 48
ADS (in RMB)
Leased-and-owned restaurants 17,580 20,545
Franchised restaurants 3,364 2,459
Blended 5,525 4,029
-------------------------------- ------------- -------------
Quarter Ended
----------------------------
2024 Q1 2025 Q1
------------- -------------
ADT
Leased-and-owned restaurants 165 215
Franchised restaurants 73 74
Blended 90 85
AC (in RMB)
Leased-and-owned restaurants 105 88
Franchised restaurants 38 32
Blended 53 43
ADS (in RMB)
Leased-and-owned restaurants 17,306 18,931
Franchised restaurants 2,814 2,363
Blended 4,737 3,629
-------------------------------- ------------- -------------
1. Store mix shifted to fewer cities due to closures and relocations.
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Ms. Hannah Zhang
Phone: +86-182-2560-8592
E-mail: ir@998.com
Christensen
In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: mailto: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-half-2025-financial-results-302571687.html
SOURCE GreenTree Hospitality Group Ltd.
(END) Dow Jones Newswires
September 30, 2025 18:23 ET (22:23 GMT)