- A total of 2,558 hotels with
209,463 hotel rooms were in operation as
of September 30, 2018, as compared to
2,434 hotels and 201,275 hotel rooms as
of June 30, 2018.
- Total revenues increased 21.6% year-over-year to
RMB256.8 million (US$37.4 million) [1] for the third quarter of 2018.
Total revenues increased 21.7% year-over-year to RMB695.1 million (US$101.2
million)[1] for the first nine months of
2018.
- Adjusted EBITDA (non-GAAP) increased 24.2% year-over-year to
RMB156.5 million (US$22.8 million) [1] for the third
quarter of 2018. Adjusted EBITDA (non-GAAP) increased 24.6%
year-over-year to RMB409.2 million
(US$59.6 million) [1] for
the first nine months of 2018.
- Net income increased 36.3% year-over-year to RMB152.4 million (US$22.2
million)[1] for the third quarter of 2018.
Net income increased 15.2% year-over-year to RMB339.8 million (US$49.5
million) [1] for the first nine months of
2018.
- Core net income (non-GAAP) increased 30.3% year-over-year to
RMB125.3 million (US$ 18.2
million) [1] for the third quarter of
2018. Core net income (non-GAAP) increased 27.6% year-over-year to
RMB320.1 million (US$46.6 million) [1] for the first
nine months of 2018.
- Basic and diluted net income per ADS were RMB1.50 (US$0.22)[1] for the third quarter of
2018. Basic and diluted net income per ADS were RMB3.46 (US$0.50)[1] for the first nine months
of 2018.
- Basic and diluted core net income per ADS (non-GAAP) were
RMB1.23 (US$0.18)[1] for the third quarter of
2018. Basic and diluted core net income per ADS (non-GAAP) were
RMB3.26 (US$0.47) [1] for the first nine
months of 2018.
- As of September 30, 2018, the
Company had a strong pipeline with a total of 504 hotels contracted
for or under development. For the third quarter of 2018, the
Company opened 145 F&M hotels and one L&O hotel, compared
to 109 F&M hotels for the third quarter of 2017.
- The Company reaffirmed guidance for growth in full year 2018
total revenues of 20-25% from 2017.
SHANGHAI, Nov. 19, 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 third quarter ended
September 30, 2018.
Third Quarter of 2018 Operational Highlights
- As of September 30, 2018,
GreenTree had 30 leased-and-operated ("L&O") hotels and 2,528
franchised-and-managed ("F&M") hotels in operation in 278
cities across China, compared to
26 L&O hotels and 2,408 F&M hotels in operation in 267
cities as of June 30, 2018.
- The Company opened 145 F&M hotels and one L&O hotel, 73 in the mid-scale segment, 21 in
the business to mid-to-up-scale segment and 52 in the economy
segment. Of the hotels opened, 10 hotels were in Tier 1
cities[2], 28 in Tier 2 cities[3] and the
remaining 108 hotels in other cities in China, while the Company closed a total of 22
F&M hotels in the quarter.
- As of September 30, 2018, the
Company had a strong pipeline with a total of 504 hotels contracted
for or under development.
- The average daily room rate, or ADR, for all hotels in
operation, was RMB167 in the third
quarter of 2018, an increase of 4.4% year-over-year.
- The occupancy rate for all hotels in operation was 87.2% in the
third quarter of 2018, a decrease of 0.2% year-over-year.
- The revenue per available room, or RevPAR, which is calculated
by multiplying our hotels' ADR by its occupancy rate, was
RMB146 in the third quarter of 2018,
representing a 4.3% year-over-year increase.
- As of September 30, 2018, the
Company had approximately 26 million individual loyal members (of
which approximately 20 million are paid members) and over 1,020,000
corporate members, compared to approximately 24 million (of which
approximately 19 million are paid members) and over 930,000
respectively, as of June 30,
2018.
- The Company sold approximately 94.9% of its room nights through
its direct sales channels, including its individual loyal members
and corporate members, while online travel agencies, or OTAs, only
contributed approximately 5.1%.
"We remain committed to a steady and stable growth strategy as
we explore the growing consumption trends in second and third tier
cities and expand our geographical coverage across China, covering 278 cities at the end of
September 2018, " commented Mr.
Alex Xu, Chairman and Chief
Executive Officer of GreenTree. "During the third quarter, we
opened 146 new hotels and continued to grow our pipeline. We are on
track to open more new hotels in the remaining part of this year.
We also started to explore ways to grow our service apartment
business recently. Finally, we remain interested in exploring
appropriate value-enhancing acquisition opportunities to help
strengthen our hotel platform and increase long-term shareholder
value."
Third Quarter of
2018 Financial Results
|
|
|
Quarter
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Revenues
|
|
|
|
Leased-and-operated
hotels
|
47,930,487
|
57,384,611
|
8,355,360
|
Franchised-and-managed hotels
|
149,391,851
|
179,722,463
|
26,168,093
|
Membership
fees
|
13,799,619
|
19,718,205
|
2,871,026
|
Total
revenues
|
211,121,957
|
256,825,279
|
37,394,479
|
First nine months
of 2018 Financial Results
|
|
|
Nine months
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Revenues
|
|
|
|
Leased-and-operated
hotels
|
136,757,301
|
151,300,547
|
22,029,783
|
Franchised-and-managed hotels
|
395,890,485
|
489,101,041
|
71,214,479
|
Membership
fees
|
38,686,758
|
54,721,402
|
7,967,589
|
Total
revenues
|
571,334,544
|
695,122,990
|
101,211,851
|
Total revenues for the third quarter of 2018 were
RMB256.8 million (US$37.4 million)[1], representing a
21.6% increase over third quarter 2017. Total revenues for the
first nine months of 2018 were RMB695.1
million (US$101.2
million)[1], representing a 21.7% increase over
first nine months of 2017. The year-over-year increase in the third
quarter of 2018 was primarily attributable to the 123 F&M
hotels net addition to our network, the addition of a new L&O
hotel and the conversion of three F&M to L&O hotels during
this quarter, improved RevPAR for both F&M and L&O hotels
as well as membership growth; and was partially offset by the
renovation of six L&O hotels during this quarter and the
conversion of one L&O to an F&M hotel after the second
quarter of 2017.
- Total revenues from leased-and-operated hotels for the
third quarter of 2018 were RMB57.4
million (US$8.4
million)[1], representing a 19.7% year-over-year
increase. Total revenues from leased-and-operated hotels for the
first nine months of 2018 were RMB151.3
million (US$22.0
million)[1], representing a 10.6% year-over-year
increase. The year-over-year increase in the third quarter of 2018
was primarily attributable to RevPAR growth of 4.8%, moderate
sublease revenue growth, the addition of a new L&O hotel and
the conversion of three F&M to L&O hotels during this
quarter; and was partially offset by the renovation of six L&O
hotels during this quarter and the conversion of one L&O to
F&M hotel after the second quarter of 2017.
- Total revenues from franchised-and-managed hotels for
the third quarter of 2018 were RMB179.7
million (US$26.2
million)[1], representing a 20.3% year-over-year
increase. Total revenues from franchised-and-managed hotels for the
first nine months of 2018 were RMB489.1
million (US$71.2 million)
[1], representing a 23.5% year-over-year increase.
Initial franchise fees increased 10.0% year-over-year in the third
quarter of 2018, primarily due to the gross opening of 145 hotels in the third quarter of 2018 as
compared to 109 hotels opened in the third quarter of 2017, as well
as a temporary waiver of initial franchisee fees for Shell hotels,
which opened during the third quarter of 2018. The 21.6%
year-over-year increase in recurring franchisee management fees in
the third quarter of 2018 was primarily due to RevPAR growth of
4.3% 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
|
|
September 30,
2017
|
September 30, 2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Initial
franchise fee
|
16,390,047
|
18,035,149
|
2,625,968
|
Recurring
franchise management fee
|
133,001,804
|
161,687,314
|
23,542,125
|
Revenues
from franchised-and-managed hotels
|
149,391,851
|
179,722,463
|
26,168,093
|
|
Nine months
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Initial
franchise fee
|
37,441,256
|
47,289,811
|
6,885,529
|
Recurring
franchise management fee
|
358,449,229
|
441,811,230
|
64,328,950
|
Revenues
from franchised-and-managed hotels
|
395,890,485
|
489,101,041
|
71,214,479
|
|
|
|
|
Total operating costs and expenses
|
Quarter
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Operating costs
and expenses
|
|
|
|
Hotel operating
costs
|
59,839,669
|
76,099,402
|
11,080,286
|
Selling and marketing
expenses
|
10,280,954
|
11,319,534
|
1,648,156
|
General and
administrative expenses
|
21,337,109
|
24,229,964
|
3,527,951
|
Other operating
expenses
|
140,447
|
99,935
|
14,551
|
Total operating
costs and expenses
|
91,598,179
|
111,748,835
|
16,270,944
|
|
|
|
Nine months
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Operating costs
and expenses
|
|
|
|
Hotel operating
costs
|
174,600,016
|
206,844,187
|
30,117,092
|
Selling and marketing
expenses
|
29,336,600
|
34,223,888
|
4,983,094
|
General and
administrative expenses
|
57,918,345
|
69,781,751
|
10,160,417
|
Other operating
expenses
|
1,288,613
|
278,527
|
40,554
|
Total operating
costs and expenses
|
263,143,574
|
311,128,353
|
45,301,157
|
Hotel operating costs for the third quarter of 2018 were
RMB76.1 million (US$11.1 million)[1], representing a
27.2% year-over-year increase. Hotel operating costs for the first
nine months of 2018 were RMB206.8
million (US$30.1
million)[1], representing an 18.5% year-over-year
increase. The year-over-year increase in the third quarter of 2018
were mainly attributable to the increased number of general
managers in our hotel network and other costs associated with the
expansion of our F&M hotels, and higher rental costs, utilities
and personnel costs associated with the four new L&O hotels;
and was partially offset by reduced rental costs, depreciation and
amortization and operating costs related to the conversion of one
L&O hotel.
|
Quarter
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Rental
|
15,297,799
|
19,958,416
|
2,906,001
|
Utilities
|
4,447,308
|
5,376,412
|
782,821
|
Personnel
cost
|
7,120,232
|
10,221,598
|
1,488,293
|
Depreciation and
amortization
|
5,676,717
|
5,752,902
|
837,639
|
Consumable, food and
beverage
|
3,876,273
|
5,039,899
|
733,823
|
Costs of general
managers of franchised-and-operated hotels
|
13,683,435
|
19,132,342
|
2,785,722
|
Other costs of
franchised-and-operated hotels
|
6,289,568
|
7,687,857
|
1,119,373
|
Others
|
3,448,337
|
2,929,976
|
426,614
|
Hotel Operating
Costs
|
59,839,669
|
76,099,402
|
11,080,286
|
|
Nine months
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
Rental
|
45,814,573
|
55,250,840
|
8,044,677
|
Utilities
|
13,236,956
|
15,591,749
|
2,270,202
|
Personnel
cost
|
20,350,660
|
25,391,187
|
3,697,028
|
Depreciation and
amortization
|
17,419,804
|
14,287,708
|
2,080,330
|
Consumable, food and
beverage
|
9,424,743
|
14,079,286
|
2,049,983
|
Costs of general
managers of franchised-and-operated hotels
|
40,361,514
|
50,447,624
|
7,345,315
|
Other costs of
franchised-and-operated hotels
|
17,839,079
|
21,855,821
|
3,182,269
|
Others
|
10,152,687
|
9,939,972
|
1,447,288
|
Hotel Operating
Costs
|
174,600,016
|
206,844,187
|
30,117,092
|
Selling and marketing expenses for the third quarter of 2018
were RMB11.3 million (US$1.6 million)[1], compared to
RMB10.3 million in the third quarter
of 2017. Selling and marketing expenses for the first nine months
of 2018 were RMB34.2 million
(US$5.0 million)[1],
compared to RMB29.3 million in the
first nine months of 2017. The year-over-year increase of 10.1% in
the third quarter of 2018 was mainly attributable to model room
construction, exhibition and other advertising and promotion
expenses related to our three new business to mid-to-upscale
brands, 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 third quarter
of 2018 were RMB24.2 million
(US$3.5 million)[1], compared to RMB21.3 million in the third quarter of 2017.
General and administrative expenses for the first nine months of
2018 were RMB69.8 million
(US$10.2 million)[1],
compared to RMB57.9 million in the
first nine months of 2017. The year-over-year increase of 13.6% in
the third quarter of 2018 was primarily attributable to increased
share-based compensation expenses.
Gross profit for the third quarter of 2018 was
RMB180.7 million (US$26.3 million)[1], representing a
year-over-year increase of 19.5%. Gross margin in the third quarter
was 70.4%, compared to 71.7% a year ago. Gross profit for the
first nine months of 2018 was RMB488.3
million (US$71.1
million)[1], representing a year-over-year
increase of 23.1%.
Income from operations for the third quarter of 2018 was
RMB146.9 million (US$21.4 million)[1], representing a
year-over-year increase of 14.3%. Operating margin in the third
quarter declined to 57.2%, compared to 60.9% a year
ago. Income from operations for the first nine months of 2018
was RMB411.9 million (US$60.0 million)[1], representing a
year-over-year increase of 27.8%.
Adjusted EBITDA (non-GAAP) for the third quarter of 2018
was RMB156.5 million (US$22.8 million)[1], a year-over-year
increase of 24.2%. The adjusted EBITDA margin, defined as adjusted
EBITDA (non-GAAP) as a percentage of total revenues, was 60.9% in
the third quarter of 2018, compared to 59.6% in the third quarter
of 2017. Adjusted EBITDA (non-GAAP) for the first nine months
of 2018 was RMB409.2 million
(US$59.6 million)[1], a
year-over-year increase of 24.6%.
Net income for the third quarter of 2018 was RMB152.4 million (US$22.2
million)[1], representing a year-over-year
increase of 36.3%. Net margin in the third quarter was 59.3%,
compared to 52.9% a year ago. Net income for the first nine months
of 2018 was RMB339.8 million
(US$49.5 million)[1], a
year-over-year increase of 15.2%. Core net income (non-GAAP) for
the third quarter of 2018 was RMB125.3
million (US$18.2
million)[1], representing a 30.3% year-over-year
increase. The core net margin, defined as core net income
(non-GAAP) as a percentage of total revenues, was 48.8% in the
third quarter of 2018, compared to 45.5% in the third quarter of
2017. Core net income (non-GAAP) for the first nine months of 2018
was RMB320.1 million (US$46.6 million)[1], representing a
27.6% year-over-year increase.
Basic and diluted earnings per ADS for the third quarter
of 2018 was RMB1.50 (US$0.22)[1], representing a 23.0%
year-over-year increase. Basic and diluted earnings per ADS was
RMB3.46 (US$0.50)[1] for the first nine months
of 2018, representing a 7.1% year-over-year increase. Basic and
diluted core net income per ADS (non-GAAP) were RMB1.23 (US$0.18)[1] for the third quarter of
2018, representing a 17.1% year-over-year increase. Basic and
diluted core net income per ADS (non-GAAP) were RMB3.26 (US$0.47)[1] for the first nine months
of 2018, representing a 18.5% year-over-year increase.
Cash flow. Operating cash inflow for the third quarter of
2018 was RMB202.9million
(US$29.5 million)[1], due
primarily to improved operating performance across our hotel
portfolio. Operating cash inflow for the first nine months of 2018
was RMB402.3 million (US$58.6 million)[1]. Investing cash
outflow for the third quarter of 2018 was RMB158.0 million (US$23.0
million)[1], which was attributable primarily to
RMB23.2 million in capital
expenditure and RMB134.8 million in
other investments, mainly including short-term investments and
loans to franchisees and third parties. Investing cash outflow for
the first nine months of 2018 was RMB335.2
million (US$48.8
million)[1]. Financing cash outflow for the third
quarter of 2018 was nil while net financing cash inflow for the first nine
months of 2018 was RMB604.6 million
(US$88.0
million)[1].
Cash and cash equivalents, restricted cash, Short-term
investments and securities. As of September 30, 2018, the Company had a total
balance of cash and cash equivalents, restricted cash, short term
investments and securities of RMB1,996.3
million (US$290.7
million)[1], as compared to RMB1,898.8 million as of June 30, 2018, primarily due to net operating
cash inflow, offset by fixed asset and other investments.
Guidance
For the full year 2018, the Company reaffirms total revenue growth
guidance of 20-25% from 2017.
The guidance set forth above reflects the Company's current and
preliminary view based on our estimates, 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 U.S. Eastern Time on
November 19, 2018 (9:00 PM Beijing/Hong Kong Time on November 19, 2018).
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 until November 26, 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
|
Canada Toll
Free
|
855-669-9658
|
Passcode:
|
10125987
|
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.
Notes:
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the
exchange rate of US$1.00=RMB6.8680 on September 28,
2018 as set forth in H.10 statistical release of the U.S.
Federal Reserve Board and available at
https://www.federalreserve.gov/releases/h10/20181001.
[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.
[4] Wumian Hotel's English trademark is currently being
registered.
-- Financial Tables and Operational Data Follow --
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
December
31,
|
September
30,
|
September
30,
|
2017
|
2018
|
2018
|
|
RMB
|
RMB
|
USD
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
161,963,665
|
839,157,006
|
122,183,606
|
Short-term
investment
|
781,850,000
|
894,400,083
|
130,227,152
|
Trading
securities
|
307,754,960
|
259,758,591
|
37,821,577
|
Accounts receivable, net of
allowance for doubtful accounts
|
53,882,894
|
65,660,503
|
9,560,353
|
Amounts due from
related parties
|
3,248,692
|
251,999
|
36,692
|
Prepaid
rent
|
4,292,472
|
4,141,616
|
603,031
|
Inventories
|
2,355,154
|
1,434,132
|
208,814
|
Other current
assets
|
127,269,801
|
66,495,332
|
9,681,905
|
Loans receivable,
net
|
6,600,000
|
196,608,587
|
28,626,760
|
Deferred tax
assets
|
36,207,884
|
28,222,162
|
4,109,226
|
Total current
assets
|
1,485,425,522
|
2,356,130,011
|
343,059,116
|
|
|
|
|
Non-current
assets:
|
|
|
|
Amounts due from a
related party
|
2,600,000
|
-
|
-
|
Restricted
cash
|
3,000,000
|
3,000,000
|
436,808
|
Loan receivable,
net
|
-
|
26,900,000
|
3,916,715
|
Property and
equipment, net
|
96,669,251
|
221,951,940
|
32,316,823
|
Intangible assets,
net
|
3,727,383
|
16,100,662
|
2,344,301
|
Goodwill
|
2,959,183
|
4,314,981
|
628,273
|
Long-term
investments
|
122,508,832
|
119,571,686
|
17,409,972
|
Other
assets
|
5,741,301
|
11,741,301
|
1,709,568
|
Deferred tax
assets
|
33,351,457
|
34,618,065
|
5,040,487
|
TOTAL
ASSETS
|
1,755,982,929
|
2,794,328,646
|
406,862,063
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
7,293,341
|
8,788,268
|
1,279,596
|
Advance from
customers
|
33,662,363
|
36,302,861
|
5,285,798
|
Amounts due to
related parties
|
473,018
|
1,102,375
|
160,509
|
Salary and welfare
payable
|
44,577,683
|
39,656,469
|
5,774,093
|
Deferred
rent
|
2,916,205
|
4,355,231
|
634,134
|
Deferred
revenue
|
109,101,986
|
142,546,431
|
20,755,159
|
Accrued expenses and
other current liabilities
|
293,741,951
|
268,468,295
|
39,089,734
|
Income tax
payable
|
103,830,578
|
95,764,800
|
13,943,623
|
Dividends
payable
|
39,691,103
|
-
|
-
|
Deferred tax
liabilities
|
27,745,951
|
17,380,672
|
2,530,674
|
Total current
liabilities
|
663,034,179
|
614,365,402
|
89,453,320
|
|
|
|
|
Deferred
rent
|
23,050,635
|
26,446,537
|
3,850,690
|
Deferred
revenue
|
144,258,584
|
163,575,878
|
23,817,105
|
Other long-term
liabilities
|
73,937,277
|
91,796,257
|
13,365,792
|
Deferred tax
liabilities
|
5,797,260
|
7,073,087
|
1,029,861
|
Unrecognized tax
benefits
|
113,299,633
|
157,713,855
|
22,963,578
|
Total
liabilities
|
1,023,377,568
|
1,060,971,016
|
154,480,346
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A ordinary
shares
|
160,189,926
|
217,421,867
|
31,657,232
|
Class B ordinary
shares
|
140,696,841
|
115,534,210
|
16,822,104
|
Additional paid-in
capital
|
212,309,734
|
994,486,411
|
144,800,001
|
Retained
earnings
|
223,134,889
|
402,465,307
|
58,600,074
|
Accumulated other
comprehensive loss
|
(4,086,149)
|
(2,444,241)
|
(355,888)
|
Total GreenTree
Hospitality Group Ltd. shareholders' equity
|
732,245,241
|
1,727,463,554
|
251,523,523
|
|
|
|
|
Non-controlling
interests
|
360,120
|
5,894,076
|
858,194
|
Total
shareholders' equity
|
732,605,361
|
1,733,357,630
|
252,381,717
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
1,755,982,929
|
2,794,328,646
|
406,862,063
|
GreenTree
Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive
Income
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September 30,
2017
|
September
30, 2018
|
September 30,
2018
|
|
September
30, 2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
Revenues
|
|
|
|
|
|
|
|
Leased-and-operated
hotels
|
47,930,487
|
57,384,611
|
8,355,360
|
|
136,757,301
|
151,300,547
|
22,029,783
|
Franchised-and-managed hotels
|
149,391,851
|
179,722,463
|
26,168,093
|
|
395,890,485
|
489,101,041
|
71,214,479
|
Membership
fees
|
13,799,619
|
19,718,205
|
2,871,026
|
|
38,686,758
|
54,721,402
|
7,967,589
|
Total
revenues
|
211,121,957
|
256,825,279
|
37,394,479
|
|
571,334,544
|
695,122,990
|
101,211,851
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
Hotel operating
costs
|
(59,839,669)
|
(76,099,402)
|
(11,080,286)
|
|
(174,600,016)
|
(206,844,187)
|
(30,117,092)
|
Selling and marketing
expenses
|
(10,280,954)
|
(11,319,534)
|
(1,648,156)
|
|
(29,336,600)
|
(34,223,888)
|
(4,983,094)
|
General and
administrative expenses
|
(21,337,109)
|
(24,229,964)
|
(3,527,951)
|
|
(57,918,345)
|
(69,781,751)
|
(10,160,417)
|
Other operating
expenses
|
(140,447)
|
(99,935)
|
(14,551)
|
|
(1,288,613)
|
(278,527)
|
(40,554)
|
Total operating
costs and expenses
|
(91,598,179)
|
(111,748,835)
|
(16,270,944)
|
|
(263,143,574)
|
(311,128,353)
|
(45,301,157)
|
|
|
|
|
|
|
|
|
Other operating
income
|
9,070,947
|
1,865,788
|
271,664
|
|
14,137,923
|
27,933,277
|
4,067,163
|
Income from
operations
|
128,594,725
|
146,942,232
|
21,395,199
|
|
322,328,893
|
411,927,914
|
59,977,857
|
|
|
|
|
|
|
|
|
Interest income and
other, net
|
7,552,058
|
14,991,069
|
2,182,742
|
|
20,222,932
|
31,114,962
|
4,530,425
|
Interest
expense
|
(666,665)
|
-
|
-
|
|
(927,959)
|
-
|
-
|
Gains (losses) from
trading securities
|
13,008,183
|
3,091,278
|
450,099
|
|
48,975,568
|
(27,945,284)
|
(4,068,911)
|
Other (income)
expense, net
|
(376,223)
|
36,723,048
|
5,346,978
|
|
(446,041)
|
36,723,048
|
5,346,978
|
Income before
income taxes
|
148,112,078
|
201,747,627
|
29,375,018
|
|
390,153,393
|
451,820,640
|
65,786,349
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(35,694,806)
|
(49,511,158)
|
(7,208,963)
|
|
(94,026,429)
|
(111,085,777)
|
(16,174,400)
|
Income before
share of loss in equity investees
|
112,417,272
|
152,236,469
|
22,166,055
|
|
296,126,964
|
340,734,863
|
49,611,949
|
|
|
|
|
|
|
|
|
Share of (losses)
gains in equity investees, net of tax
|
(637,240)
|
141,666
|
20,627
|
|
(1,150,687)
|
(948,358)
|
(138,084)
|
Net
income
|
111,780,032
|
152,378,135
|
22,186,682
|
|
294,976,277
|
339,786,505
|
49,473,865
|
Net loss attributable
to non-controlling interests
|
12,655
|
358,464
|
52,193
|
|
47,904
|
384,831
|
56,032
|
Net income
attributable to ordinary shareholders
|
111,792,687
|
152,736,599
|
22,238,875
|
|
295,024,181
|
340,171,336
|
49,529,897
|
|
|
|
|
|
|
|
|
Net earnings per
share
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
1.22
|
1.50
|
0.22
|
|
3.23
|
3.46
|
0.50
|
Class B ordinary
share-basic and diluted
|
1.22
|
1.50
|
0.22
|
|
3.23
|
3.46
|
0.50
|
|
|
|
|
|
|
|
|
Net earnings per
ADS
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
1.22
|
1.50
|
0.22
|
|
3.23
|
3.46
|
0.50
|
Class B ordinary
share-basic and diluted
|
1.22
|
1.50
|
0.22
|
|
3.23
|
3.46
|
0.50
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
48,635,252
|
66,789,299
|
66,789,299
|
|
48,635,252
|
61,536,613
|
61,536,613
|
Class B ordinary
share-basic and diluted
|
42,716,957
|
34,762,909
|
34,762,909
|
|
42,716,957
|
36,802,409
|
36,802,409
|
|
|
|
|
|
|
|
|
Other
comprehensive income, net of tax
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(512,909)
|
(2,685,649)
|
(391,038)
|
|
(2,492,683)
|
(1,641,908)
|
(239,066)
|
Comprehensive
income, net of tax
|
111,267,123
|
149,692,486
|
21,795,644
|
|
292,483,594
|
338,144,597
|
49,234,799
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interests
|
12,655
|
358,464
|
52,193
|
|
47,904
|
384,831
|
56,033
|
Comprehensive
income attributable to ordinary shareholders
|
111,279,778
|
150,050,950
|
21,847,837
|
|
292,531,498
|
338,529,428
|
49,290,832
|
GreenTree
Hospitality Group Ltd.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
September
30,
|
September
30,
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
2018
|
2018
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
111,780,032
|
|
152,378,135
|
|
22,186,682
|
|
294,976,277
|
339,786,505
|
49,473,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,266,013
|
|
7,453,263
|
|
1,085,216
|
|
18,940,093
|
17,405,012
|
2,534,218
|
|
Share of loss (gain) in equity
method investments
|
|
637,240
|
|
(141,666)
|
|
(20,627)
|
|
1,150,687
|
948,358
|
138,084
|
|
Gains from disposal
of a long-term investment
|
|
-
|
|
(36,723,048)
|
|
(5,346,978)
|
|
-
|
(36,723,048)
|
(5,346,978)
|
|
Interest
income
|
|
(3,050,000)
|
|
(14,991,069)
|
|
(2,182,742)
|
|
(9,150,000)
|
(19,928,935)
|
(2,901,709)
|
|
Interest
expense
|
|
666,665
|
|
-
|
|
-
|
|
927,959
|
-
|
-
|
|
Bad debt
expense
|
|
784,648
|
|
623,470
|
|
90,779
|
|
1,939,171
|
1,322,173
|
192,512
|
|
(Gains) losses from
trading securities
|
|
(13,008,183)
|
|
(3,091,278)
|
|
(450,099)
|
|
(48,975,568)
|
27,945,284
|
4,068,911
|
|
Loss on disposal of
property and equipment
|
|
-
|
|
-
|
|
-
|
|
157,506
|
-
|
-
|
|
Foreign exchange loss
(gain)
|
|
415,990
|
|
(4,904,076)
|
|
(714,047)
|
|
(882,266)
|
(5,518,929)
|
(803,571)
|
|
Share-based
compensation
|
|
-
|
|
3,821,789
|
|
556,463
|
|
-
|
7,568,558
|
1,102,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
-
|
|
-
|
|
-
|
|
7,200,000
|
-
|
-
|
|
Accounts
receivable
|
|
6,591,491
|
|
7,038,795
|
|
1,024,868
|
|
(19,653,723)
|
(12,429,842)
|
(1,809,820)
|
|
Prepaid
rent
|
|
3,116,843
|
|
19,552
|
|
2,847
|
|
9,715,840
|
150,856
|
21,965
|
|
Inventories
|
|
(113,463)
|
|
265,681
|
|
38,684
|
|
(102,239)
|
1,227,103
|
178,670
|
|
Amounts due from
related parties
|
|
3,923,740
|
|
148,694
|
|
21,650
|
|
7,359,458
|
1,670,817
|
243,276
|
|
Other current
assets
|
|
(1,967,677)
|
|
(693,699)
|
|
(101,005)
|
|
(3,786,736)
|
(27,059,650)
|
(3,939,961)
|
|
Other
assets
|
|
-
|
|
-
|
|
-
|
|
1,728,263
|
-
|
-
|
|
Accounts
payable
|
|
1,113,255
|
|
(68,022)
|
|
(9,904)
|
|
3,228,697
|
269,186
|
39,194
|
|
Amounts due to
related parties
|
|
258,363
|
|
148,655
|
|
21,645
|
|
2,796,777
|
629,357
|
91,636
|
|
Salary and welfare
payable
|
|
2,907,810
|
|
(3,379,410)
|
|
(492,052)
|
|
2,229,131
|
(5,030,701)
|
(732,484)
|
|
Deferred
revenue
|
|
23,131,108
|
|
16,195,785
|
|
2,358,152
|
|
37,798,634
|
52,761,739
|
7,682,257
|
|
Advance from
customers
|
|
8,273,576
|
|
3,111,537
|
|
453,048
|
|
20,049,623
|
2,640,498
|
384,464
|
|
Accrued expenses and
other current liabilities
|
|
15,517,019
|
|
24,458,339
|
|
3,561,203
|
|
31,050,187
|
(2,756,027)
|
(401,285)
|
|
Income tax
payable
|
|
25,374,238
|
|
31,644,131
|
|
4,607,474
|
|
(1,819,136)
|
(4,895,783)
|
(712,840)
|
|
Unrecognized tax
benefits
|
|
(12,941,734)
|
|
(2,526,933)
|
|
(367,929)
|
|
1,802,524
|
44,414,222
|
6,466,835
|
|
Deferred
rent
|
|
(8,268,696)
|
|
6,878,075
|
|
1,001,467
|
|
(19,160,087)
|
4,834,928
|
703,979
|
|
Other long-term
liabilities
|
|
3,435,645
|
|
8,384,000
|
|
1,220,734
|
|
3,262,752
|
17,858,980
|
2,600,317
|
|
Deferred
taxes
|
|
(1,198,750)
|
|
6,836,404
|
|
995,400
|
|
4,591,666
|
(4,784,588)
|
(696,649)
|
|
Net cash provided
by operating
activities
|
|
173,645,173
|
|
202,887,104
|
|
29,540,929
|
|
347,375,490
|
402,306,073
|
58,576,889
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(5,877,080)
|
|
(1,547,609)
|
|
(225,336)
|
|
(12,987,482)
|
(114,555,864)
|
(16,679,653)
|
|
Purchases of
intangible assets
|
|
(15,386)
|
|
(1,950,000)
|
|
(283,925)
|
|
(15,386)
|
(2,850,000)
|
(414,968)
|
|
Increase in long-term
investments
|
|
(100,701,474)
|
|
-
|
|
-
|
|
(100,701,474)
|
-
|
-
|
|
Acquisitions, net of
cash received
|
|
-
|
|
(13,698,384)
|
|
(1,994,523)
|
|
-
|
(13,698,384)
|
(1,994,523)
|
|
Proceeds from
disposal of a long-term investment
|
|
-
|
|
89,182,803
|
|
12,985,265
|
|
-
|
89,182,803
|
12,985,265
|
|
Prepayments for
investments
|
|
-
|
|
(6,000,000)
|
|
(873,617)
|
|
-
|
(6,000,000)
|
(873,617)
|
|
Purchases of
short-term investments
|
|
-
|
|
(92,693,808)
|
|
(13,496,478)
|
|
-
|
(884,360,449)
|
(128,765,354)
|
|
Proceeds from
short-term investments
|
|
-
|
|
50,701,216
|
|
7,382,239
|
|
-
|
795,935,220
|
115,890,393
|
|
Proceeds from
disposal of property and equipment
|
|
300,000
|
|
-
|
|
-
|
|
1,900,000
|
-
|
-
|
|
Purchases of trading
securities
|
|
(2,943,000)
|
|
(40,879)
|
|
(5,952)
|
|
(39,972,398)
|
(4,836,717)
|
(704,240)
|
|
Proceeds from
disposal of trading securities
|
|
7,355,677
|
|
6,015,829
|
|
875,922
|
|
38,752,543
|
24,887,802
|
3,623,734
|
|
Loan to related
parties
|
|
-
|
|
-
|
|
-
|
|
(1,000,000)
|
-
|
-
|
|
Loan to third
parties
|
|
-
|
|
(156,819,164)
|
|
(22,833,309)
|
|
-
|
(166,819,164)
|
(24,289,337)
|
|
Loan to
franchisees
|
|
-
|
|
(35,629,423)
|
|
(5,187,744)
|
|
(6,600,000)
|
(63,429,423)
|
(9,235,501)
|
|
Repayment from
franchisees
|
|
-
|
|
4,489,937
|
|
653,747
|
|
-
|
11,329,937
|
1,649,671
|
|
Net cash (used in)
provided by
investing activities
|
|
(101,881,263)
|
|
(157,989,482)
|
|
(23,003,711)
|
|
(120,624,197)
|
(335,214,239)
|
(48,808,130)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Distribution to the
shareholders
|
|
-
|
|
-
|
|
-
|
|
(9,651,158)
|
(200,532,021)
|
(29,198,023)
|
|
Income tax paid
related to the above distribution
|
|
-
|
|
-
|
|
-
|
|
-
|
(3,000,000)
|
(436,808)
|
|
Proceeds from
short-term borrowings
|
|
-
|
|
-
|
|
-
|
|
60,000,000
|
-
|
-
|
|
Changes in restricted
cash
|
|
(36,850,000)
|
|
-
|
|
-
|
|
(821,850,000)
|
-
|
-
|
|
Proceeds from IPO,
net of capitalized expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
833,202,245
|
121,316,576
|
|
Payment for initial
public offering costs
|
|
-
|
|
-
|
|
-
|
|
-
|
(25,087,646)
|
(3,652,831)
|
|
Net cash provided
by (used in)
financing activities
|
|
(36,850,000)
|
|
-
|
|
-
|
|
(771,501,158)
|
604,582,578
|
88,028,914
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(928,899)
|
|
4,904,076
|
|
714,049
|
|
(1,610,415)
|
5,518,929
|
803,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and
cash equivalents
|
|
33,985,011
|
|
49,801,698
|
|
7,251,267
|
|
(546,360,280)
|
677,193,341
|
98,601,244
|
|
Cash and cash
equivalents at the beginning of the period
|
|
316,437,644
|
|
789,355,308
|
|
114,932,339
|
|
896,782,935
|
161,963,665
|
23,582,362
|
|
Cash and cash
equivalents at the
end of the period
|
|
350,422,655
|
|
839,157,006
|
|
122,183,606
|
|
350,422,655
|
839,157,006
|
122,183,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash
flow information:
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
(24,732,129)
|
|
(13,557,556)
|
|
(1,974,018)
|
|
(89,757,519)
|
(76,351,926)
|
(11,117,054)
|
|
Interest
paid
|
|
(666,665)
|
|
-
|
|
-
|
|
(927,959)
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash
investing and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
investment through
conversion of loan
|
|
-
|
|
(8,225,876)
|
|
(1,197,711)
|
|
-
|
(8,225,876)
|
(1,197,711)
|
|
|
|
|
|
|
|
|
|
|
|
|
GreenTree
Hospitality Group Ltd. Unaudited Reconciliation of GAAP
and Non-GAAP Results
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September
30,
2017
|
September
30,
2018
|
September
30,
2018
|
|
September
30,
2017
|
September
30,
2018
|
September
30,
2018
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
Net
income
|
111,780,032
|
152,378,135
|
22,186,682
|
|
294,976,277
|
339,786,505
|
49,473,865
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
Other operating
income
|
9,070,947
|
1,865,788
|
271,664
|
|
14,137,923
|
27,933,277
|
4,067,163
|
Interest income
and other, net
|
7,552,058
|
14,991,069
|
2,182,742
|
|
20,222,932
|
31,114,962
|
4,530,425
|
Gains from
trading securities
|
13,008,183
|
3,091,278
|
450,099
|
|
48,975,568
|
-
|
-
|
Share of gain in
equity investees, net of tax
|
-
|
141,666
|
20,627
|
|
-
|
-
|
-
|
Other income,
net
|
-
|
36,723,048
|
5,346,978
|
|
-
|
36,723,048
|
5,346,978
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Other operating
expenses
|
140,447
|
99,935
|
14,551
|
|
1,288,613
|
278,527
|
40,554
|
Income tax
expense
|
35,694,806
|
49,511,158
|
7,208,963
|
|
94,026,429
|
111,085,777
|
16,174,400
|
Share of loss
in equity investees, net of tax
|
637,240
|
-
|
-
|
|
1,150,687
|
948,358
|
138,084
|
Interest
expense
|
666,665
|
-
|
-
|
|
927,959
|
-
|
-
|
Share-based
compensation
|
-
|
3,821,789
|
556,463
|
|
-
|
7,568,558
|
1,102,003
|
Depreciation and
amortization
|
6,266,013
|
7,453,263
|
1,085,216
|
|
18,940,093
|
17,405,012
|
2,534,218
|
Losses from
trading securities
|
-
|
-
|
-
|
|
-
|
27,945,284
|
4,068,911
|
Other expense,
net
|
376,223
|
-
|
-
|
|
446,041
|
-
|
-
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA (Non-GAAP)
|
125,930,238
|
156,451,431
|
22,779,765
|
|
328,419,676
|
409,246,734
|
59,587,469
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
September 30,
2017
|
September 30,
2018
|
September 30,
2018
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
Net
income
|
111,780,032
|
152,378,135
|
22,186,682
|
|
294,976,277
|
339,786,505
|
49,473,865
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
Government subsidies (net of 25% tax)
|
6,172,500
|
1,049,804
|
152,854
|
|
7,665,746
|
11,362,580
|
1,654,423
|
Gains from trading securities (net of 25% tax)
|
9,756,137
|
2,318,459
|
337,574
|
|
36,731,676
|
-
|
-
|
Reimbursement related to the ADS program
|
-
|
-
|
-
|
|
-
|
9,271,648
|
1,349,978
|
Other income, net (net of 25% tax)
|
-
|
27,542,286
|
4,010,234
|
|
-
|
27,542,286
|
4,010,234
|
Add:
|
|
|
|
|
|
|
|
Share-based compensation
|
-
|
3,821,789
|
556,463
|
|
-
|
7,568,558
|
1,102,003
|
Losses from trading securities (net of 25% tax)
|
-
|
-
|
-
|
|
-
|
20,958,962
|
3,051,683
|
Other expense (net of 25% tax)
|
282,167
|
-
|
-
|
|
334,531
|
-
|
-
|
Core net income
(Non-GAAP)
|
96,133,562
|
125,289,375
|
18,242,483
|
|
250,913,386
|
320,137,511
|
46,612,916
|
Core net income
per ADS (Non-GAAP)
|
|
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
1.05
|
1.23
|
0.18
|
|
2.75
|
3.26
|
0.47
|
Class B ordinary
share-basic and diluted
|
1.05
|
1.23
|
0.18
|
|
2.75
|
3.26
|
0.47
|
Operational Data
|
As of September
30, 2017
|
As of September
30,2 018
|
Total hotels in
operation:
|
2,119
|
2,558
|
Leased and
owned hotels
|
27
|
30
|
Franchised
hotels
|
2,092
|
2,528
|
Total hotel rooms
in operation
|
178,535
|
209,463
|
Leased and
owned hotels
|
3,396
|
3,857
|
Franchised
hotels
|
175,139
|
205,606
|
Number of
cities
|
244
|
278
|
|
Quarter
Ended
|
|
September 30,
2017
|
September 30,
2018
|
Occupancy rate (as
a percentage)
|
|
|
Leased and
owned hotels
|
76.9%
|
72.6%
|
Franchised
hotels
|
87.7%
|
87.5%
|
Blended
|
87.4%
|
87.2%
|
Average daily room
rate (in RMB)
|
|
|
Leased and
owned hotels
|
189
|
210
|
Franchised
hotels
|
159
|
166
|
Blended
|
160
|
167
|
RevPAR (in
RMB)
|
|
|
Leased and
owned hotels
|
145
|
152
|
Franchised
hotels
|
139
|
145
|
Blended
|
140
|
146
|
|
Number of Hotels
in Operation
|
Number of Hotel
Rooms in Operation
|
|
As of September
30, 2017
|
|
As of September
30, 2018
|
As of September
30, 2017
|
|
As of September
30, 2018
|
Economy
hotels
|
201
|
|
358
|
11,307
|
|
19,160
|
Vatica
|
92
|
|
117
|
6,822
|
|
8,698
|
Shell
|
109
|
|
241
|
4,485
|
|
10,462
|
Mid-scale
|
1,878
|
|
2,119
|
162,490
|
|
181,434
|
GreenTree
Inn
|
1,655
|
|
1,824
|
144,639
|
|
158,174
|
GT
Alliance
|
223
|
|
294
|
17,851
|
|
23,199
|
Wumian Hotel[4]
|
-
|
|
1
|
-
|
|
61
|
Business to
Mid-to-up-scale
|
40
|
|
81
|
4,738
|
|
8,869
|
GreenTree
Eastern
|
40
|
|
74
|
4,738
|
|
8,270
|
Gme
|
-
|
|
2
|
-
|
|
170
|
Gya
|
-
|
|
1
|
-
|
|
70
|
VX
|
-
|
|
4
|
-
|
|
359
|
Total
|
2,119
|
|
2,558
|
178,535
|
|
209,463
|
[4]. Wumian Hotel's
English trademark is currently being registered.
|
For more information, please contact:
GreenTree
Ms. Selina
Yang
Phone: +86-21-3617-4886 ext. 7999
E-mail: ir@998.com
Mr. Nicky Zheng
Phone: +86-21-3617-4886 ext. 6708
E-mail: ir@998.com
Christensen
In Shanghai
Ms. Constance Zhang
Phone: +86-138-1645-1798
E-mail: czhang@christensenIR.com
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-third-quarter-2018-financial-results-300752756.html
SOURCE GreenTree Hospitality Group Ltd.