- A total of 2,354 hotels with 195,552 hotel rooms were in
operation as of March 31, 2018, as
compared to 2,289 hotels and 190,807 hotel rooms as of December 31, 2017
- Total revenues increased 23.3% year-over-year from
RMB166.3 million for the first
quarter of 2017 to RMB204.9 million
(US$32.7 million)[1] for
the first quarter of 2018.
- Adjusted EBITDA (non-GAAP) increased 29.6% year-over-year
from RMB87.7 million for the first quarter of 2017 to
RMB113.6 million (US$18.1 million)[1] for the first
quarter of 2018.
- Net income attributable to GreenTree Hospitality Group Ltd.
increased 21.0% year-over-year from RMB74.5
million for the first quarter of 2017 to RMB90.2 million (US$14.4
million)[1] for the first quarter of
2018.
- Core net income (non-GAAP) increased 27.5% year-over-year
from RMB65.9 million for the first quarter of 2017 to
RMB84.0 million (US$13.4 million)[1] for the first
quarter of 2018.
- Basic and diluted earnings per ADS were RMB0.98 (US$0.16)[1] for the first
quarter of 2018, compared to RMB0.82
for the first quarter of 2017.
- The Company provided guidance for growth in full year 2018
total revenues of 20-25% from 2017.
SHANGHAI, May 15, 2018 /PRNewswire/ -- GreenTree
Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company",
"we", "us" and "our"), a leading franchised hotel operator in
China, today announced its
unaudited financial results for the first quarter ended
March 31, 2018.
First Quarter of 2018 Operational Highlights
- As of March 31, 2018, GreenTree
had 26 leased-and-operated ("L&O") hotels and 2,328
franchised-and-managed ("F&M") hotels in operation in 266
cities across China, compared to
26 L&O hotels and 2,263 F&M hotels in operation in 263
cities as of December 31, 2017.
- In the first quarter of 2018, the Company opened 80 F&M
hotels, 44 in the mid-scale segment, 6 in the business to
mid-to-up-scale segment and 30 in the economy segment. Of the
hotels opened, 10 hotels were in Tier 1 cities[2], 22 in
Tier 2 cities[3] and the remaining 48 hotels in other
cities in China, while the Company
closed a total of 15 F&M hotels in the quarter.
- As of March 31, 2018, the Company
had a total of 406 hotels contracted for or under development.
- The average daily room rate, or ADR, for all hotels in
operation, was RMB156 in the first
quarter of 2018, compared to RMB152
in the first quarter of 2017, an increase of 2.6%
year-over-year.
- The occupancy rate for all hotels in operation was 79.2% in the
first quarter of 2018, compared to 77.6% in the first quarter of
2017, an increase of 1.6% year-over-year.
- The revenue per available room, or RevPAR, which is calculated
by multiplying our hotels' ADR by its occupancy rate, was
RMB124 in the first quarter of 2018,
representing a 5.1% year-over-year increase from RMB118 in the first quarter of 2017.
As of March 31, 2018, we had
approximately 22 million individual loyal members and over 860,000
corporate members, compared to approximately 21 million and over
820,000, respectively, as of December 31,
2017. During the first quarter of 2018, we sold
approximately 96% of our room nights through our direct sales
channels, including our individual loyal members and corporate
members, while online travel agencies, or OTAs, only contributed
approximately 4% of our room nights.
"After 13 years of hard work by our team and fast organic
growth, we are proud to have completed our IPO on the NYSE on
March 27, 2018,' commented Mr.
Alex Xu, Chairman and Chief
Executive Officer of GreenTree. "Historically, the first quarter
has been our softest quarter due to the Chinese New Year holiday.
However we were able to achieve solid operating results for the
quarter. We are quite pleased with our start as a public company,
and we are confident in our positioning going forward. We will
continue to focus on our existing business model which we believe
will benefit our customers and franchisees, grow our membership
program and invest in our brands and our technology. We have a
strong pipeline and are on track to open more new hotels. We are
particularly excited to premier our three new business to
mid-to-up-scale brands this year, namely Gme, Gya and VX. With
additional cash on our balance sheet, we intend to make selective
acquisitions to further expand our hotel network. Overall,
continued strong economic growth and increasing consumer spending,
along with our distinct portfolio of brands, strong pipeline, and
asset-light model, should help us continue to deliver strong
operational performance and value to our shareholders over the long
term."
First Quarter of
2018 Financial Results
|
|
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
Revenues
|
|
|
|
Leased-and-operated
hotels
|
41,762,816
|
44,175,458
|
7,042,607
|
Franchised-and-managed hotels
|
112,236,364
|
143,868,763
|
22,936,065
|
Membership
fees
|
12,267,607
|
16,899,200
|
2,694,130
|
Total
revenues
|
166,266,787
|
204,943,421
|
32,672,802
|
Total revenues for the first quarter of 2018 were
RMB204.9 million (US$32.7 million)[1], representing a
23.3% increase over the first
quarter of 2017. This
year-over-year increase was primarily attributable to the net
additional 65 F&M hotels to our network, the opening of a
GreenTree Eastern L&O hotel in Shanghai in June
2017, improved RevPAR for both F&M and L&O hotels as
well as membership growth; and was partially offset by the closure
of one L&O hotel and the conversion of six L&O hotels to
F&M hotels.
- Total revenues from leased-and-operated hotels for the
first quarter of 2018 were RMB44.2
million (US$7.0
million)[1], representing a 5.8% year-over-year
increase. This year-over-year increase was mainly attributable to
RevPAR growth of 17.0% resulting from a GreenTree Eastern hotel
opened in Shanghai in 2017, and
partially offset by the closure of one hotel and the conversion of
six hotels to F&M hotels in 2017.
- Total revenues from franchised-and-managed hotels for
the first quarter of 2018 were RMB143.9
million (US$22.9
million)[1], representing a 28.2% year-over-year
increase. Initial franchise fees increased 75.4% year-over-year,
primarily due to the gross opening of 80 hotels in the first
quarter of 2018 as compared to 48 hotels opened in the first
quarter of 2017. The 25% year-over-year increase in recurring
franchisee management fees was primarily due to RevPAR growth of
4.2% as well as growth in central reservation system ("CRS") usage
fees, annual IT and marketing fees and hotel manager fees, which in
turn resulted from the increased number of hotels and hotel rooms
in operation.
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
Initial
franchise fee
|
7,122,581
|
12,494,913
|
1,991,983
|
Recurring
franchise management fee
|
105,113,783
|
131,373,850
|
20,944,082
|
Revenues
from franchised-and-managed hotels
|
112,236,364
|
143,868,763
|
22,936,065
|
- Membership fees represent the one-time membership fee
the Company charges in relation to its paid memberships recognized
as our revenue on a straight line basis over the estimated life of
the membership, which is three to six years depending on the
membership level. This totaled RMB16.9
million (US$2.7
million)[1] in the first quarter of 2018,
representing a 37.8% year-over-year increase. The increase was
primarily a result of an increase in the number of our paid members
from approximately 17 million as of December
31, 2017 to approximately 18 million as of March 31, 2018 as we continued to promote our
paid membership program.
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
Operating cost and
expenses
|
|
|
|
Hotel operating
costs
|
57,034,812
|
65,111,072
|
10,380,237
|
Selling and marketing
expenses
|
9,653,945
|
11,349,067
|
1,809,308
|
General and
administrative expenses
|
18,434,930
|
20,400,857
|
3,252,376
|
Other operating
expenses
|
852,735
|
143,262
|
22,839
|
Total operating
cost and expenses
|
85,976,422
|
97,004,258
|
15,464,760
|
Hotel operating costs for the first quarter of 2018 were
RMB65.1 million (US$10.4 million)[1], compared to
RMB57.0 million in the first quarter
of 2017, representing a 14.2% year-over-year increase. The
year-over-year increase were mainly attributable to the increased
general managers in our hotel network and other costs associated
with the expansion of our F&M hotels, and higher rental costs
in the GreenTree Eastern L&O hotel and other L&O hotels;
and was partially offset by reduced rental costs, depreciation and
amortization and operating costs related to the closure and
conversion of seven L&O hotels.
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
Rental
|
15,300,179
|
17,632,067
|
2,810,966
|
Utilities
|
4,696,087
|
5,111,000
|
814,814
|
Personnel
cost
|
6,402,224
|
7,231,850
|
1,152,927
|
Depreciation and
amortization
|
6,141,427
|
4,820,413
|
768,487
|
Consumable, food and
beverage
|
2,745,119
|
4,436,637
|
707,304
|
Costs of general
managers of franchised-and-operated hotels
|
12,921,722
|
15,585,608
|
2,484,713
|
Other costs of
franchised-and-operated hotels
|
5,591,800
|
6,750,036
|
1,076,115
|
Others
|
3,236,254
|
3,543,461
|
564,911
|
Hotel Operating
Costs
|
57,034,812
|
65,111,072
|
10,380,237
|
Selling and marketing expenses for the first quarter of
2018 were RMB11.3 million
(US$1.8 million)[1],
compared to RMB9.7 million in the
first quarter of 2017. The year-over-year increase of 17.6% in the
first quarter of 2018 was mainly attributable to advertising and
promotion expenses mainly related to our three new business to
mid-to-up-scale brands (Gme, Gya and VX), increased personnel,
compensation and other costs (i.e. travel expenses) of business
development personnel, as a result of the increased opening of
hotels.
General and administrative expenses for the first quarter
of 2018 were RMB20.4 million
(US$3.3 million)[1],
compared to RMB18.4 million in the
first quarter of 2017. The year-over-year increase of 10.7% was
mainly due to IPO-related expenses and increased compensation of
staff at our headquarters resulting from the growth of our
business.
Gross profit for the first quarter of 2018 was
RMB139.8 million (US$22.3 million)[1], compared to
RMB109.2 million in the first quarter
of 2017, representing a year-over-year increase of 28.0%. Gross
margin improved to 68.2%, compared to 65.7% a year ago.
Income from operations for the first quarter of 2018 was
RMB121.8 million (US$19.4 million)[1], compared to
RMB80.6 million in the first quarter
of 2017, representing a year-over-year increase of 51.0%. Operating
margin improved to 59.4%, compared to 48.5% a year ago.
Adjusted EBITDA (non-GAAP) for the first quarter of 2018
was RMB113.6 million (US$18.1 million)[1], compared to
RMB87.7 million for the first quarter
of 2017, a year-over-year increase of 29.6%. The adjusted EBITDA
margin, defined as adjusted EBITDA (non-GAAP) as percentage of
total revenues, was 55.4% in the first quarter of 2018, compared to
52.7% in the first quarter of 2017.
Net income attributable to GreenTree Hospitality Group
Ltd. for the first quarter of 2018 was RMB90.2 million (US$14.4
million)[1], or 44.0% of net revenues, compared
to RMB74.5 million, or 44.8% of net
revenues, in the first quarter of 2017, a year-over-year increase
of 21.0%.
Core net income (non-GAAP) for the first quarter of 2018
was RMB84.0 million (US$13.4 million)[1], compared to
RMB65.9million in the first quarter
of 2017, representing a 27.5% year-over-year increase. The core net
margin, defined as core net income (non-GAAP) as percentage of
total revenues, was 41.0% in the first quarter of 2018, compared to
39.6% in the first quarter of 2017.
Basic and diluted earnings per ADS for the first quarter
of 2018 were RMB0.98 (US$0.16)[1], compared to RMB0.82 for the first quarter of 2017,
representing a year-over-year increase of 19.5%.
Cash flow. Operating cash inflow for the first quarter of
2018 was RMB116.0 million
(US$18.5 million)[1], due
primarily to improved operating performance across our hotel
portfolio. Investing cash inflow for the first quarter of 2018 was
RMB160.1 million (US$25.5 million)[1], which was
attributable primarily to changes in short term investments, and
partially offset by purchase of property and equipment of
RMB58.3 million. Financing cash
inflow for the first quarter of 2018 was RMB790.5 million (US$126.0
million)[1], which was attributable primarily
to IPO proceeds net of capitalized
expenses of RMB833.2 million,
partially offset by dividends to pre-IPO shareholders and related
taxes of RMB42.7 million.
Cash and cash equivalents, restricted cash, Short term
investments and Trading securities. As of March 31, 2018, the Company had a total balance
of cash and cash equivalents, restricted cash, short term
investments and trading securities of RMB2,077.2 million (US$331.2 million)[1], as compared to
RMB1,251.6 million as of December 31, 2017, primarily due to the proceeds
of our IPO net of capitalized expenses and net operating cash
inflow.
Guidance
For the full year 2018, the Company expects growth in total
revenues of 20-25% from 2017.
The guidance set forth above reflects the Company's current and
preliminary view based on our estimates, and may not be indicative of our
financial results for future interim periods and the full year
ended December 31, 2018 and is
subject to change.
Conference Call
GreenTree's management will hold an earnings conference call at
8:00 AM on May
15, 2018, U.S. Eastern Time (8:00
PM on the same day Beijing/Hong Kong Time).
Dial-in numbers for the live conference call are as follows:
International
|
1-412-902-4272
|
China
|
4001-201203
|
US
|
1-888-346-8982
|
Hong Kong
|
800-905945 or
852-3018-4992
|
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 call will be available after the
conclusion of the conference call through May 22, 2018.
Dial-in numbers for the replay are as follows:
International
Dial-in
|
1-412-317-0088
|
U.S. Toll
Free
|
1-877-344-7529
|
Passcode:
|
10120243
|
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 it, is a useful financial metric 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 does 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 trading
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 term Adjusted EBITDA and core net income is not defined
under U.S. GAAP, and Adjusted EBITDA and core net income is not a
measure 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 franchised hotel operator in China. As of December
31, 2017, GreenTree had the highest proportion of
franchised-and-managed hotels among the top four economy to
mid-scale hotel networks in China.
In 2017, GreenTree was the fourth largest economy to mid-scale
hotel group in China in terms of
number of hotel rooms according to the China Hospitality
Association. The Company has built a strong suite of brands
including its flagship "GreenTree Inns" brand as a result of its
long-standing dedication to the hospitality industry in
China, the consistent quality of
its services, signature hotel designs, broad geographic coverage
and convenient locations. GreenTree has positioned its brands to
appeal to value- and quality-conscious business and leisure
travelers.
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.
[1] The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on the exchange rate of US$1.00=RMB6.2726 on March 30,
2018 as set forth in H.10 statistical release of the U.S. Federal
Reserve Board and available at
http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.
|
[2] "Tier 1 cities" refers to the
term used by the National Bureau of Statistics of China and refer
to Beijing, Shanghai, Shenzhen and Guangzhou.
|
[3] "Tier 2 cities" refers to the 32
major cities, other than Tier 1 cities, as categorized by the
National Bureau of Statistics of China, including provincial
capitals, administrative capitals of autonomous regions,
direct-controlled municipalities and other major cities designated
as "municipalities with independent planning" by the State
Council.
|
--Financial Tables and Operational Data Follow--
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
December 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
161,963,665
|
1,227,699,122
|
195,724,121
|
Short-term
investment
|
781,850,000
|
553,411,589
|
88,226,826
|
Trading
securities
|
307,754,960
|
296,109,261
|
47,206,782
|
Accounts receivable,
net of allowance for doubtful
accounts
|
53,882,894
|
64,786,226
|
10,328,448
|
Amounts due from
related parties
|
3,248,692
|
3,665,050
|
584,295
|
Prepaid
rent
|
4,292,472
|
2,706,095
|
431,415
|
Inventories
|
2,355,154
|
1,579,974
|
251,885
|
Other current
assets
|
127,269,801
|
138,777,412
|
22,124,384
|
Loans receivable,
net
|
6,600,000
|
9,960,000
|
1,587,858
|
Deferred tax
assets
|
36,207,884
|
37,004,631
|
5,899,409
|
Total current
assets
|
1,485,425,522
|
2,335,699,360
|
372,365,423
|
|
|
|
|
Non-current
assets:
|
|
|
|
Amounts due from a
related party
|
2,600,000
|
2,600,000
|
414,501
|
Restricted
cash
|
3,000,000
|
3,000,000
|
478,271
|
Loan receivable,
net
|
-
|
13,140,000
|
2,094,825
|
Property and
equipment, net
|
96,669,251
|
94,212,311
|
15,019,659
|
Intangible assets,
net
|
3,727,383
|
3,476,141
|
554,179
|
Goodwill
|
2,959,183
|
2,959,183
|
471,763
|
Long-term
investments
|
122,508,832
|
121,601,796
|
19,386,187
|
Other
assets
|
5,741,301
|
61,387,090
|
9,786,546
|
Deferred tax
assets
|
33,351,457
|
33,831,687
|
5,393,567
|
TOTAL
ASSETS
|
1,755,982,929
|
2,671,907,568
|
425,964,921
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
7,293,341
|
11,990,281
|
1,911,533
|
Advance from
customers
|
33,662,363
|
25,173,880
|
4,013,309
|
Amounts due to
related parties
|
473,018
|
799,714
|
127,493
|
Salary and welfare
payable
|
44,577,683
|
42,898,598
|
6,839,046
|
Deferred
rent
|
2,916,205
|
2,974,506
|
474,206
|
Deferred
revenue
|
109,101,986
|
115,220,777
|
18,368,902
|
Accrued expenses and
other current liabilities
|
293,741,951
|
322,017,828
|
51,337,216
|
Income tax
payable
|
103,830,578
|
120,564,418
|
19,220,804
|
Dividends
payable
|
39,691,103
|
160,840,918
|
25,641,826
|
Deferred tax
liabilities
|
27,745,951
|
25,618,132
|
4,084,133
|
Total current
liabilities
|
663,034,179
|
828,099,052
|
132,018,468
|
|
|
|
|
Deferred
rent
|
23,050,635
|
21,977,886
|
3,503,792
|
Deferred
revenue
|
144,258,584
|
153,048,710
|
24,399,565
|
Other long-term
liabilities
|
73,937,277
|
75,710,666
|
12,070,061
|
Deferred tax
liabilities
|
5,797,260
|
5,087,072
|
810,999
|
Unrecognized tax
benefits
|
113,299,633
|
117,050,785
|
18,660,649
|
Total
liabilities
|
1,023,377,568
|
1,200,974,171
|
191,463,534
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A ordinary
shares
|
160,189,926
|
217,421,867
|
34,662,160
|
Class B ordinary
shares
|
140,696,841
|
115,534,210
|
18,418,871
|
Additional paid-in
capital
|
212,309,734
|
989,409,918
|
157,735,216
|
Retained
earnings
|
223,134,889
|
152,492,832
|
24,310,945
|
Accumulated other
comprehensive loss
|
(4,086,149)
|
(4,256,031)
|
(678,511)
|
Total GreenTree
Hospitality Group Ltd.
shareholders' equity
|
732,245,241
|
1,470,602,796
|
234,448,681
|
|
|
|
|
Noncontrolling
interests
|
360,120
|
330,601
|
52,706
|
Total
shareholders' equity
|
732,605,361
|
1,470,933,397
|
234,501,387
|
|
|
|
|
TOTAL LIABILITIES
AND
SHAREHOLDERS' EQUITY
|
1,755,982,929
|
2,671,907,568
|
425,964,921
|
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income
|
|
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
Revenues
|
|
|
|
Leased-and-operated
hotels
|
41,762,816
|
44,175,458
|
7,042,607
|
Franchised-and-managed hotels
|
112,236,364
|
143,868,763
|
22,936,065
|
Membership
fees
|
12,267,607
|
16,899,200
|
2,694,130
|
Total
revenues
|
166,266,787
|
204,943,421
|
32,672,802
|
|
|
|
|
Operating cost and
expenses
|
|
|
|
Hotel operating
costs
|
(57,034,812)
|
(65,111,072)
|
(10,380,237)
|
Selling and marketing
expenses
|
(9,653,945)
|
(11,349,067)
|
(1,809,308)
|
General and
administrative expenses
|
(18,434,930)
|
(20,400,857)
|
(3,252,376)
|
Other operating
expenses
|
(852,735)
|
(143,262)
|
(22,839)
|
Total operating
cost and expenses
|
(85,976,422)
|
(97,004,258)
|
(15,464,760)
|
|
|
|
|
Other operating
income
|
344,499
|
13,825,401
|
2,204,094
|
Income from
operations
|
80,634,864
|
121,764,564
|
19,412,136
|
|
|
|
|
Interest income and
other, net
|
6,735,011
|
4,703,862
|
749,906
|
Gains (losses) from
trading securities
|
11,582,052
|
(5,173,627)
|
(824,798)
|
Other expense,
net
|
(40,966)
|
-
|
-
|
Income before
income taxes
|
98,910,961
|
121,294,799
|
19,337,244
|
|
|
|
|
Income tax
expense
|
(23,837,405)
|
(30,218,421)
|
(4,817,527)
|
Income before
share of loss in equity
investees
|
75,073,556
|
91,076,378
|
14,519,717
|
|
|
|
|
Share of loss in
equity investees, net of tax
|
(565,525)
|
(907,036)
|
(144,603)
|
Net
income
|
74,508,031
|
90,169,342
|
14,375,114
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
28,118
|
29,519
|
4,706
|
Net income
attributable to ordinary
shareholders
|
74,536,149
|
90,198,861
|
14,379,820
|
|
|
|
|
Net earnings per
share
|
|
|
|
Class A ordinary
share-basic and diluted
|
0.82
|
0.98
|
0.16
|
Class B ordinary
share-basic and diluted
|
0.82
|
0.98
|
0.16
|
|
|
|
|
Net earnings per
ADS
|
|
|
|
Class A ordinary
share-basic and diluted
|
0.82
|
0.98
|
0.16
|
Class B ordinary
share-basic and diluted
|
0.82
|
0.98
|
0.16
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
Class A ordinary
share-basic and diluted
|
48,635,252
|
50,856,151
|
50,856,151
|
Class B ordinary
share-basic and diluted
|
42,716,957
|
40,949,391
|
40,949,391
|
|
|
|
|
Other
comprehensive income, net of tax
|
|
|
|
-Foreign currency
translation adjustments
|
(1,152,244)
|
(169,882)
|
(27,083)
|
Comprehensive
income, net of tax
|
73,355,787
|
89,999,460
|
14,348,031
|
|
|
|
|
Comprehensive loss
attributable to
noncontrolling interests
|
28,118
|
29,519
|
4,706
|
Comprehensive
income attributable to
ordinary shareholders
|
73,383,905
|
90,028,979
|
14,352,737
|
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
Quarter
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
Operation
activities:
|
|
|
|
|
|
|
|
Net income
|
|
74,508,031
|
|
90,169,342
|
|
14,375,114
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to
net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,558,915
|
|
5,394,502
|
|
860,011
|
|
Share of loss in
equity method investments
|
|
565,525
|
|
907,036
|
|
144,603
|
|
Interest
income
|
|
(3,050,000)
|
|
(4,703,862)
|
|
(749,906)
|
|
Bad debt
expense
|
|
573,272
|
|
319,258
|
|
50,897
|
|
(Gains) losses from
trading securities
|
|
(11,582,052)
|
|
5,173,627
|
|
824,798
|
|
Loss on disposal of
property and equipment
|
|
852,736
|
|
-
|
|
-
|
|
Foreign exchange
(gain) loss
|
|
(923,501)
|
|
725,206
|
|
115,615
|
|
Share-based
compensation
|
|
-
|
|
159,839
|
|
25,482
|
|
|
|
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
Restricted
cash
|
|
7,200,000
|
|
-
|
|
-
|
|
Accounts
receivable
|
|
(10,705,600)
|
|
(11,222,590)
|
|
(1,789,145)
|
|
Prepaid
rent
|
|
3,968,362
|
|
1,586,377
|
|
252,906
|
|
Inventories
|
|
217,476
|
|
775,180
|
|
123,582
|
|
Amounts due from
related parties
|
|
2,254,024
|
|
(416,358)
|
|
(66,377)
|
|
Other current
assets
|
|
(2,789,799)
|
|
(6,803,749)
|
|
(1,084,678)
|
|
Other
assets
|
|
1,728,263
|
|
-
|
|
-
|
|
Accounts
payable
|
|
1,314,586
|
|
4,696,940
|
|
748,803
|
|
Amounts due to
related parties
|
|
2,695,971
|
|
326,696
|
|
52,083
|
|
Salary and welfare
payable
|
|
(2,818,801)
|
|
(1,679,085)
|
|
(267,686)
|
|
Deferred
revenue
|
|
16,892,977
|
|
14,908,917
|
|
2,376,832
|
|
Advance from
customers
|
|
3,463,721
|
|
(8,488,483)
|
|
(1,353,264)
|
|
Accrued expenses and
other current liabilities
|
|
12,280,946
|
|
4,083,287
|
|
650,972
|
|
Income tax
payable
|
|
15,003,494
|
|
19,733,840
|
|
3,146,038
|
|
Unrecognized tax
benefits
|
|
(450,013)
|
|
3,751,152
|
|
598,022
|
|
Deferred
rent
|
|
(5,208,048)
|
|
(1,014,448)
|
|
(161,727)
|
|
Other long-term
liabilities
|
|
(9,038,094)
|
|
1,773,389
|
|
282,720
|
|
Deferred
taxes
|
|
35,692
|
|
(4,114,984)
|
|
(656,025)
|
|
Net cash provided
by operating activities
|
|
103,548,083
|
|
116,041,029
|
|
18,499,670
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(4,759,726)
|
|
(58,332,109)
|
|
(9,299,510)
|
|
Purchases of
short-term investments
|
|
-
|
|
(516,561,589)
|
|
(82,352,069)
|
|
Proceeds from
short-term investments
|
|
-
|
|
745,000,000
|
|
118,770,526
|
|
Proceeds from
disposal of property and
equipment
|
|
1,600,000
|
|
-
|
|
-
|
|
Purchases of trading
securities
|
|
(31,142,698)
|
|
(4,795,838)
|
|
(764,569)
|
|
Proceeds from
disposal of trading securities
|
|
20,729,356
|
|
11,267,910
|
|
1,796,370
|
|
Loan to a related
party
|
|
(1,000,000)
|
|
-
|
|
-
|
|
Loan to
franchisees
|
|
(3,500,000)
|
|
(20,000,000)
|
|
(3,188,470)
|
|
Repayment from a
franchisee
|
|
-
|
|
3,500,000
|
|
557,982
|
|
Net cash (used in)
provided by investing
activities
|
|
(18,073,068)
|
|
160,078,374
|
|
25,520,260
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Distribution to the
shareholders
|
|
-
|
|
(39,691,103)
|
|
(6,327,696)
|
|
Income tax paid
related to the above
distribution
|
|
-
|
|
(3,000,000)
|
|
(478,271)
|
|
Increase in
restricted cash
|
|
(875,000,000)
|
|
-
|
|
-
|
|
Proceeds from IPO,
net of capitalized
expenses
|
|
-
|
|
833,202,245
|
|
132,832,039
|
|
Net cash (used in)
provided by financing
activities
|
|
(875,000,000)
|
|
790,511,142
|
|
126,026,072
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and
cash equivalents
|
|
(228,741)
|
|
(895,088)
|
|
(142,698)
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
(789,753,726)
|
|
1,065,735,457
|
|
169,903,304
|
|
Cash and cash
equivalents at the beginning
of the year
|
|
896,782,935
|
|
161,963,665
|
|
25,820,817
|
|
Cash and cash
equivalents at the end of the year
|
|
107,029,209
|
|
1,227,699,122
|
|
195,724,121
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow
information:
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
(9,283,301)
|
|
(14,599,565)
|
|
(2,327,514)
|
GreenTree
Hospitality Group Ltd.
|
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
|
|
Quarter
Ended
|
|
March
31,
2017
|
March
31,
2018
|
March
31,
2018
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Net
income
|
74,508,031
|
90,169,342
|
14,375,114
|
|
|
|
|
Deduct:
|
|
|
|
Other operating
income
|
344,499
|
13,825,401
|
2,204,094
|
Interest income and
other, net
|
6,735,011
|
4,703,862
|
749,906
|
Gains from trading
securities
|
11,582,052
|
-
|
-
|
Add:
|
|
|
|
Other operating
expenses
|
852,735
|
143,262
|
22,839
|
Income tax
expense
|
23,837,405
|
30,218,421
|
4,817,527
|
Share of loss in
equity investees, net of tax
|
565,525
|
907,036
|
144,603
|
Share-based
compensation
|
-
|
159,839
|
25,482
|
Depreciation and
amortization
|
6,558,915
|
5,394,502
|
860,011
|
Losses from trading
securities
|
-
|
5,173,627
|
824,798
|
Other expense,
net
|
40,966
|
-
|
-
|
Adjusted
EBITDA (Non-GAAP)
|
87,702,015
|
113,636,766
|
18,116,374
|
|
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
March 31,
2018
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
Net
income
|
74,508,031
|
90,169,342
|
14,375,114
|
|
|
|
|
Deduct:
|
|
|
|
Government
subsidies (net of 25% tax)
|
38
|
10,236,002
|
1,631,859
|
Gains from
trading securities (net of 25% tax)
|
8,686,539
|
-
|
-
|
Add:
|
|
|
|
Share-based
compensation
|
-
|
159,839
|
25,482
|
Losses from
trading securities (net of 25% tax)
|
-
|
3,880,220
|
618,598
|
Other expense
(net of 25% tax)
|
30,725
|
-
|
-
|
|
|
|
|
Core net
income (Non-GAAP)
|
65,852,179
|
83,973,399
|
13,387,335
|
Operational Data
|
As of March 31,
2017
|
As of March 31,
2018
|
Total hotels in
operation:
|
1,964
|
2,354
|
Leased and owned hotels
|
30
|
26
|
Franchised hotels
|
1,934
|
2,328
|
Total hotel rooms
in operation
|
168,579
|
195,552
|
Leased and owned hotels
|
3,829
|
3,301
|
Franchised hotels
|
164,750
|
192,251
|
Number of
cities
|
233
|
266
|
|
|
Quarter
Ended
|
|
March 31,
2017
|
March 31,
2018
|
Occupancy rate (as
a percentage)
|
|
|
Leased and owned hotels
|
59.40%
|
60.50%
|
Franchised hotels
|
78.10%
|
79.60%
|
Blended
|
77.60%
|
79.20%
|
Average daily room
rate (in RMB)
|
|
|
Leased and owned hotels
|
168
|
193
|
Franchised hotels
|
152
|
155
|
Blended
|
152
|
156
|
RevPAR (in
RMB)
|
|
|
Leased and owned hotels
|
100
|
117
|
Franchised hotels
|
119
|
124
|
Blended
|
118
|
124
|
Hotel breakdown by segment
|
Number of Hotels
in Operation
|
|
Number of Hotel
Rooms in Operation
|
|
As of
December 31, 2017
|
|
As of
March 31, 2018
|
|
As of
December 31, 2017
|
|
As of
March 31, 2018
|
Economy
hotels
|
257
|
|
287
|
|
14,060
|
|
15,810
|
Vatica
|
104
|
|
111
|
|
7,704
|
|
8,280
|
Shell
|
153
|
|
176
|
|
6,356
|
|
7,530
|
Mid-scale
|
1,982
|
|
2,012
|
|
171,041
|
|
173,456
|
GreenTree
Inn
|
1,733
|
|
1,755
|
|
151,154
|
|
152,821
|
GreenTree
Alliance
|
249
|
|
257
|
|
19,887
|
|
20,635
|
Business to
Mid-to-up-scale
|
50
|
|
55
|
|
5,706
|
|
6,286
|
GreenTree
Eastern
|
50
|
|
55
|
|
5,706
|
|
6,286
|
Total
|
2,289
|
|
2,354
|
|
190,807
|
|
195,552
|
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-21-3617-4886*7999
E-mail: ir@998.com
http://ir.998.com
Christensen
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: khui@christensenIR.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@ChristensenIR.com
View original
content:http://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-quarter-2018-financial-results-300648342.html
SOURCE GreenTree Hospitality Group Ltd.