- Total revenues increased 53.3% year-over-year to
RMB241.2 million (US$36.8 million) [1] .
- Income from operations increased 64.9% year-over-year to
RMB61.4 million (US$9.4 million) [1].
- Adjusted EBITDA (non-GAAP) [2] increased 74.3%
year-over-year to RMB64.0 million
(US$9.8 million)
[1].
- Core net income (non-GAAP) increased 58.3% year-over-year to
RMB43.9 million (US$6.7 million) [1].
SHANGHAI, July 28, 2021 /PRNewswire/ -- GreenTree
Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company",
"we", "us" and "our"), a leading hospitality management
group in China, today
announced its unaudited financial results for the first quarter and
fiscal year of 2021.
First Quarter of 2021 Operational Highlights
- A total of 4,464 hotels with 323,648 hotel rooms were in
operation as of March 31, 2021,
compared to 4,340 hotels and 315,335 hotel rooms as of December 31, 2020.
- As of March 31, 2021, the Company
had 43 leased-and-operated ("L&O") hotels and 4,421
franchised-and-managed ("F&M") hotels in operation in 353
cities across China, compared to
35 L&O hotels and 3,963 F&M hotels in operation in 342
cities as of March 31, 2020. The
geographic coverage increased by 3.2% year over year.
- During the quarter, the Company opened 201 hotels, an increase
of 139 compared to 62 hotels in the first quarter of 2020. Three of
those hotels were in the luxury segment, 32 in the mid-to-up-scale
segment, 136 in the mid-scale segment, and 30 in the economy
segment. Geographically speaking, 9 hotels were in Tier 1 cities
[3], 65 in Tier 2 cities and the remaining 127 in Tier 3
and lower cities in China.
The Company closed 77 hotels, 6 due to brand upgrades, and
30 due to non-compliance with
the Company's brand and operating standards. The remaining 41 were
closed for property related issues. The Company added 124 hotels to its portfolio.
- As of March 31, 2021, the Company
had a pipeline of 1,265 hotels contracted for or under development,
among which 53 hotels were in the luxury hotel segment, 291 in the
mid-to-up-scale segment, 516 in the mid-scale segment, and 405 in
the economy segment.
- The average daily room rate, or ADR, for all hotels in
operation, was RMB 151, an increase
of 0.8% from RMB150 in the first
quarter of 2020, and a 7.0% decrease compared with RMB162 in the pre-COVID-19 first quarter of
2019.
- The occupancy rate, or OCC for all hotels in operation was
63.4%, an increase of 16.1% compared with 47.3% in the first
quarter of 2020, and a 14.7% decrease compared with 78.1% in the
pre-COVID-19 first quarter of 2019.
- The revenue per available room, or RevPAR, which is calculated
by multiplying our hotels' ADR by its occupancy rate, was
RMB 96, a 35.1% year-over-year
increase, and a 24.5% decrease compared with RMB127 in the pre-COVID-19 first quarter of
2019.
- As of March 31, 2021, the
Company's loyalty program had more than 59 million individual
members and more than 1,710,000 corporate members, compared to over
56 million individual members and approximately 1,670,000 corporate
members respectively as of December 31,
2020. The Company sold
approximately 92.2% of room nights directly during the first
quarter 2021 .
"We achieved steady growth during the first quarter and
continued to recover from the pandemic despite the resurgence of
COVID-19 in many regions of China"
said Mr. Alex Xu, Chairman and Chief
Executive Officer of Greentree. "As the year unfolds, we remain
very focused on our growth strategy which covers three particular
areas. First, we are adding L&O hotels in strategic locations,
second, we are further expanding in tier 3 and lower cities and,
third, we are further penetrating the Mid-to-Upscale segment. We
are optimistic that travel will continue to recover as vaccine
rollouts accelerate. This should translate into even better results
next quarter. On behalf of our Board, I want to thank our team,
franchisees and shareholders for their tremendous efforts and
support."
1
|
The conversion of
Renminbi ("RMB") into United States dollars ("US$") is based on the
exchange rate of US$1.00=RMB6.5518 on March 31, 2021 as set
forth in H.10 statistical release of the U.S. Federal Reserve Board
and available at
https://www.federalreserve.gov/releases/h10/20210405/
|
2
|
Adjusted EBITDA (non-GAAP) is
calculated as net income plus other operating expenses, income tax
expense, interest expense, depreciation and amortization, losses
from investment in equity securities, share of loss in equity
investees (net of tax), but excludes other operating
income, interest income and other, net, gains from investment
in equity securities, share of gain in equity investees (net of
tax) and other income net. The calculation of Adjusted EBITDA
(non-GAAP) included in this report has been aligned according to
the abovementioned definition.
|
3
|
Tier 1 Cities refers
to Beijing, Shanghai, Shenzhen and Guangzhou; Tier 2 Cities refers
to the 32 major cities, other than Tier 1 Cities, including
provincial capitals, administrative capitals of autonomous regions,
direct-controlled municipalities and other major cities designated
as municipalities with independent planning by the State
Council.
|
First Quarter of 2021 Financial Results
|
Quarter
Ended
|
|
March 31,
2020
|
|
March 31,
2021
|
|
March 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
|
|
|
|
Leased-and-operated
hotels
|
33,800,144
|
|
56,113,308
|
|
8,564,564
|
Franchised-and-managed hotels
|
117,663,102
|
|
177,949,627
|
|
27,160,418
|
others
|
5,932,745
|
|
7,149,523
|
|
1,091,230
|
Total
revenues
|
157,395,991
|
|
241,212,458
|
|
36,816,212
|
Total revenues were RMB241.2 million (US$36.8 million) [1] , a
53.3% year-over-year increase. The
increase was primarily due to the sustained recovery in hotel
operations from the impact of COVID-19 and our newly opened L&O
hotels. Compared with the
pre-COVID-19 first quarter of 2019, total revenues increased
by 2.5%.
Total revenues from leased-and-operated hotels were
RMB56.1 million (US$8.6 million) [1], a 66.0% year-over-year increase. The
increase was primarily due to the 71.7% year-over-year increase in L&O
hotels' RevPAR and revenues from the 12 L&O hotels opened since
the second quarter of 2020. The revenue increase was partially
offset by the closure of 4 L&O hotels over the same period.
Total revenues from
franchised-and-managed hotels were RMB177.9 million (US$27.2
million) [1], a 51.2% year-over-year increase.
Initial franchise fees increased by 37.7% year-over-year, mainly
attributable to the gross opening of 198 F&M hotels. Recurring
franchisee management fees and others increased 52.9%
year-over-year primarily due to the 34.3% increase in RevPar and
the 11.6% increase in the number of F&M hotels, and was offset
by the fee reduction to franchisees during the first quarter
2021.
|
Quarter
Ended
|
|
March 31,
2020
|
|
March 31,
2021
|
|
March 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Initial franchise
fee
|
13,052,832
|
|
17,978,858
|
|
2,744,110
|
Recurring franchise
management fee and others
|
104,610,270
|
|
159,970,769
|
|
24,416,308
|
Revenues from
franchised-and-managed hotels
|
117,663,102
|
|
177,949,627
|
|
27,160,418
|
Total operating costs and expenses
|
Quarter
Ended
|
|
March
31,
2020
|
|
March
31,
2021
|
|
March
31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Operating costs
and expenses
|
|
|
|
|
|
Hotel operating
costs
|
89,763,274
|
|
122,230,252
|
|
18,655,980
|
Selling and marketing
expenses
|
17,841,322
|
|
18,118,110
|
|
2,765,364
|
General and
administrative expenses
|
28,745,571
|
|
55,958,157
|
|
8,540,883
|
Other operating
expenses
|
1,157,149
|
|
1,393,556
|
|
212,698
|
Total operating
costs and expenses
|
137,507,316
|
|
197,700,075
|
|
30,174,925
|
Hotel operating costs were RMB122.2 million (US$18.7
million) [1], a 36.2% increase year over year.
The increase was mainly attributable to higher rents due to the
opening of 12 L&O hotels since the second quarter of 2020.
Excluding these, hotel operating costs increased 17.9%, mainly due
to increase in staff number and staff salaries.
|
Quarter
Ended
|
|
December
31,
|
|
March 31,
|
|
March 31,
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Rental
|
27,102,982
|
|
39,720,751
|
|
6,062,571
|
Utilities
|
4,420,190
|
|
5,896,419
|
|
899,969
|
Personnel
cost
|
10,230,645
|
|
13,653,447
|
|
2,083,923
|
Depreciation and
amortization
|
11,338,835
|
|
16,167,503
|
|
2,467,643
|
Consumable, food and
beverage
|
8,750,868
|
|
11,339,390
|
|
1,730,729
|
Costs of general
managers of franchised-and-managed hotels
|
20,642,648
|
|
27,318,710
|
|
4,169,650
|
Other costs of
franchised-and-managed hotels
|
4,503,060
|
|
5,541,994
|
|
845,873
|
Others
|
2,774,046
|
|
2,592,039
|
|
395,622
|
Hotel Operating
Costs
|
89,763,273
|
|
122,230,252
|
|
18,655,980
|
Selling and marketing expenses were RMB18.1 million (US$2.8
million) [1], a 1.6% year-over-year increase. The
increase was mainly attributable to increases in advertising
expenses.
General and administrative expenses were
RMB56.0 million (US$8.5 million) [1], a 94.7%
year-over-year increase. The increase was mainly attributable to
increased consulting fees and other one-time expenses. Excluding
these impacts, G&A expenses
increased by 40.0% as a result of the increase in the number of
staff.
Gross profit was RMB119.0
million (US$18.2 million)
[1], a year-over-year increase of 75.9%. Gross margin
was 49.3%, compared to 43.0% a year ago. The increase was primarily
due to the recovery in our hotel RevPAR from COVID-19.
Income from operations were RMB61.4 million (US$9.4
million) [1], a year-over-year increase of 64.9%.
The increase was mainly due to the sustained recovery in RevPar,
the higher number of hotels and better control of costs and
expenses during the quarter. Operating margin was 25.4%, compared
to 23.6% a year ago.
Net income was RMB66.0
million (US$10.1 million)
[1], compared to a loss of RMB14.1 million in the
first quarter of 2020 and net margin was 27.4%.The year-over-year
increase was mainly attributable to the recovery in RevPAR.
Adjusted EBITDA (non-GAAP) [2] was
RMB64.0 million (US$9.8 million) [1], a year-over-year
increase of 74.3%. Adjusted EBITDA margin, defined as adjusted
EBITDA (non-GAAP) as a percentage of total revenues, was 26.5%,
compared to 23.3% a year ago.
Core net income (non-GAAP) was RMB43.9 million (US$6.7
million) [1], a year-over-year increase of 58.3%.
The core net margin, defined as core net income (non-GAAP) as a
percentage of total revenues, was 18.2%, compared to 17.6% one year
ago.
Earnings per ADS (basic and diluted) was RMB0.68 (US$0.10)
[1], up from negative RMB0.11 one year ago.Core net income per ADS
(basic and diluted) (non-GAAP) was RMB0.43 (US$0.07)
[1], up from RMB0.27 a
year ago.
Cash flow. Operating cash outflow was RMB1.7 million (US$0.3
million) [1] as a result of income from
operations but offset by prepaid rents for L&O hotels and
deposit. Investing cash outflow was RMB
258.2 million (US$39.4
million) [1], which was primarily attributable to
loans to franchisees, increase in long-term time deposits,
acquisition costs of our L&O hotels, and investment in property
and equipment. The investing cash outflow was partially offset by
proceeds from short-term investments. Financing cash inflow was
RMB136.1 million (US$20.8 million).
Cash and cash equivalents, restricted cash, short-term
investments, investments in equity securities and time deposit.
As of March 31, 2021, the Company had
total cash and cash equivalents, restricted cash, short term
investments, investments in equity securities and time deposits of
RMB1,734.0 million (US$264.7 million) [1], compared to
RMB1,904.9 million as of December 31, 2020. The decrease from the fourth
quarter was primarily attributable to loans to franchisees and
acquisition costs of our L&O hotels, offset by drawing down of
bank facilities.
COVID-19 Update
Due to the implementation of travel restrictions and the
government's stay-local policy during the Chinese spring festival,
our occupancy rate declined in January and February 2021, but rebounded quickly after this
as more people are getting vaccinated and more pent-up demand in
China as travel restrictions are
lifted. We saw a substantial month over month increase in RevPAR in
March, April and May, especially during the Tomb Sweeping holiday
and Golden Week. As we expected, these holidays really ushered in a
resurgence in travel with 230 million domestic tourists traveling
during Golden Week. According to report from the Ministry of
Culture and Tourism, this represents 103.2% of the number of
domestic tourists in the same period in 2019 and a year-over-year
growth of 119.7%. By the end of June, our RevPAR had recovered to
106.0% of the 2019 level. Based upon industry data, our performance
and recovery exceeded that of most of our peers.
Guidance
So far, our operations are in line with our previous forecast.
Assuming the pandemic remains under control in China in the coming quarters, the Company
expects an increase in total revenues of 48%-53% for the full year
2021, compared to 2020 and an increase in total revenues of 25%-30%
for the full year 2021, compared to 2019.
The guidance set forth above reflects the Company's current and
preliminary views based on our recovery speed and may not be
indicative of the final financial results for future interim
periods and the full year.
Conference Call
GreenTree's management will hold an earnings conference call at
9:00PM U.S. Eastern Time on
July 28, 2021 (9:00 AM Beijing/Hong Kong Time on July 29, 2021).
Dial-in numbers for the live conference call are as follows:
International
|
1-412-902-4272
|
Mainland
China
|
4001-201-203
|
US
|
1-888-346-8982
|
China Hong
Kong
|
800-905-945 or
852-3018-4992
|
Singapore
|
800-120-6157
|
Participants should ask to join the GreenTree call, please dial
in approximately 10 minutes before the scheduled time of the
call.
A telephone replay of the call will be available after the
conclusion of the conference call until August 4, 2021.
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:
|
10157730
|
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
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 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 hospitality management group in
China. As of March 31, 2021, GreenTree had a total number of
4,464 hotels. In 2019, GreenTree ranked among the Top 12 worldwide
in terms of number of hotels in "World's Largest Hotel Companies:
HOTELS' 325", published by HOTELS magazine, and was as well the
fourth largest hospitality company in China in 2020 based on the statistics issued
by the China Hospitality Association.
GreenTree 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 and consistent quality of its services,
signature hotel designs, broad geographic coverage and convenient
locations. GreenTree has further expanded its brand portfolio into
mid-to-up-scale and luxury segments through a series of strategic
investments. By offering diverse brands, through its strong
membership base, expansive booking network, superior system
management with moderate charges, and fully supported by its
operating departments including Decoration, Engineering,
Purchasing, Operation, IT and Finance, GreenTree aims to keep
closer relationships with all of its clients and partners by
providing a 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,
|
|
March
31,
|
|
March
31,
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
611,358,209
|
|
487,966,856
|
|
74,478,289
|
Short-term
investment
|
301,983,182
|
|
515,447,537
|
|
78,672,660
|
Investments in equity
securities
|
242,378,696
|
|
250,459,364
|
|
38,227,566
|
Accounts receivable,
net of allowance
|
101,511,057
|
|
106,403,840
|
|
16,240,398
|
Amounts due from
related parties
|
9,770,871
|
|
44,018,293
|
|
6,718,504
|
Prepaid
rent
|
13,597,867
|
|
21,703,579
|
|
3,312,613
|
Inventories
|
3,804,680
|
|
2,631,703
|
|
401,676
|
Other current
assets
|
77,649,794
|
|
197,327,460
|
|
30,118,054
|
Loans receivable,
net
|
222,244,629
|
|
270,721,404
|
|
41,320,157
|
Total current
assets
|
1,584,298,985
|
|
1,896,680,036
|
|
289,489,917
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
22,369,900
|
|
22,369,900
|
|
3,414,314
|
Long-term time
deposits
|
490,000,000
|
|
200,000,000
|
|
30,525,962
|
Loan receivable,
net
|
145,703,988
|
|
242,149,315
|
|
36,959,204
|
Property and
equipment, net
|
668,605,661
|
|
728,286,926
|
|
111,158,296
|
Intangible assets,
net
|
491,513,073
|
|
490,171,550
|
|
74,814,791
|
Goodwill
|
100,231,487
|
|
100,231,487
|
|
15,298,313
|
Long-term
investments
|
369,525,917
|
|
390,838,455
|
|
59,653,600
|
Other
assets
|
66,635,394
|
|
112,912,719
|
|
17,233,848
|
Deferred tax
assets
|
156,070,112
|
|
147,935,125
|
|
22,579,310
|
TOTAL
ASSETS
|
4,094,954,517
|
|
4,331,575,513
|
|
661,127,555
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
loans
|
150,000,000
|
|
280,000,000
|
|
42,736,347
|
Accounts
payable
|
19,606,344
|
|
21,412,026
|
|
3,268,113
|
Advance from
customers
|
34,305,508
|
|
30,051,962
|
|
4,586,825
|
Amounts due to
related parties
|
3,198,253
|
|
3,299,440
|
|
503,593
|
Salary and welfare
payable
|
51,567,587
|
|
52,241,724
|
|
7,973,644
|
Deferred
rent
|
1,356,132
|
|
1,728,841
|
|
263,873
|
Deferred
revenue
|
221,314,997
|
|
222,478,868
|
|
33,956,908
|
Accrued expenses and
other current liabilities
|
300,696,673
|
|
326,435,111
|
|
49,823,730
|
Income tax
payable
|
87,483,970
|
|
92,472,787
|
|
14,114,104
|
Total current
liabilities
|
869,529,464
|
|
1,030,120,759
|
|
157,227,137
|
|
|
|
|
|
|
Deferred
rent
|
28,642,973
|
|
32,505,167
|
|
4,961,258
|
Deferred
revenue
|
361,901,369
|
|
346,072,720
|
|
52,821,014
|
Other long-term
liabilities
|
115,862,713
|
|
127,274,124
|
|
19,425,825
|
Deferred tax
liabilities
|
178,413,413
|
|
177,698,895
|
|
27,122,149
|
Unrecognized tax
benefits
|
290,679,902
|
|
296,322,373
|
|
45,227,628
|
TOTAL
LIABILITIES
|
1,845,029,834
|
|
2,009,994,038
|
|
306,785,011
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Class A ordinary
shares
|
222,587,070
|
|
222,587,070
|
|
33,973,423
|
Class B ordinary
shares
|
115,534,210
|
|
115,534,210
|
|
17,633,965
|
Additional paid-in
capital
|
1,149,280,404
|
|
1,149,698,243
|
|
175,478,226
|
Retained
earnings
|
570,042,924
|
|
639,954,162
|
|
97,676,083
|
Accumulated other
comprehensive income
|
45,586,647
|
|
48,017,408
|
|
7,328,889
|
Total GreenTree
Hospitality Group Ltd. shareholders' equity
|
2,103,031,255
|
|
2,175,791,093
|
|
332,090,586
|
|
|
|
|
|
|
Non-controlling
interests
|
146,893,428
|
|
145,790,381
|
|
22,251,958
|
Total
shareholders' equity
|
2,249,924,683
|
|
2,321,581,474
|
|
354,342,544
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
4,094,954,517
|
|
4,331,575,513
|
|
661,127,555
|
GreenTree
Hospitality Group Ltd Unaudited Condensed Consolidated Statements of
Comprehensive Income
|
|
|
Quarter
Ended
|
|
March 31,
2020
|
|
March 31,
2021
|
|
March 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
|
|
|
|
Leased-and-operated
hotels
|
33,800,144
|
|
56,113,308
|
|
8,564,564
|
Franchised-and-managed hotels
|
117,663,102
|
|
177,949,627
|
|
27,160,418
|
Others
|
5,932,745
|
|
7,149,523
|
|
1,091,230
|
Total
revenues
|
157,395,991
|
|
241,212,458
|
|
36,816,212
|
|
|
|
|
|
|
Operating costs
and expenses
|
|
|
|
|
|
Hotel operating
costs
|
(89,763,273)
|
|
(122,230,252)
|
|
(18,655,980)
|
Selling and marketing
expenses
|
(17,841,322)
|
|
(18,118,110)
|
|
(2,765,364)
|
General and
administrative expenses
|
(28,745,571)
|
|
(55,958,157)
|
|
(8,540,883)
|
Other operating
expenses
|
(1,157,149)
|
|
(1,393,556)
|
|
(212,698)
|
Total operating
costs and expenses
|
(137,507,315)
|
|
(197,700,075)
|
|
(30,174,925)
|
|
|
|
|
|
|
Other operating
income
|
17,330,931
|
|
17,872,403
|
|
2,727,862
|
Income from
operations
|
37,219,607
|
|
61,384,786
|
|
9,369,149
|
|
|
|
|
|
|
Interest income and
other, net
|
10,613,260
|
|
15,131,096
|
|
2,309,456
|
Interest
expense
|
(1,010,255)
|
|
(3,388,211)
|
|
(517,142)
|
(Losses)Gains from
investment in equity securities
|
(55,174,918)
|
|
27,724,291
|
|
4,231,553
|
Income before
income taxes
|
(8,352,306)
|
|
100,851,962
|
|
15,393,016
|
|
|
|
|
|
|
Income tax
expense
|
(6,177,560)
|
|
(35,206,811)
|
|
(5,373,609)
|
Income (loss)
before share of loss in equity investees
|
(14,529,866)
|
|
65,645,151
|
|
10,019,407
|
|
|
|
|
|
|
Share of gains in
equity investees, net of tax
|
394,844
|
|
379,566
|
|
57,933
|
Net
income
|
(14,135,022)
|
|
66,024,717
|
|
10,077,340
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
2,289,368
|
|
3,886,521
|
|
593,199
|
Net income
attributable to ordinary shareholders
|
(11,845,654)
|
|
69,911,238
|
|
10,670,539
|
|
|
|
|
|
|
Net earnings per
share
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
(0.11)
|
|
0.68
|
|
0.10
|
Class B ordinary
share-basic and diluted
|
(0.11)
|
|
0.68
|
|
0.10
|
|
|
|
|
|
|
Net earnings per
ADS
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
(0.11)
|
|
0.68
|
|
0.10
|
Class B ordinary
share-basic and diluted
|
(0.11)
|
|
0.68
|
|
0.10
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
Class A ordinary
share-basic
|
68,286,954
|
|
68,286,954
|
|
68,286,954
|
Class A ordinary
share-diluted
|
68,286,954
|
|
68,316,917
|
|
68,316,917
|
Class B ordinary
share-basic
|
34,762,909
|
|
34,762,909
|
|
34,762,909
|
Class B ordinary
share-diluted
|
34,762,909
|
|
34,762,909
|
|
34,762,909
|
|
|
|
|
|
|
Other
comprehensive income, net of tax
|
|
|
|
|
|
Foreign currency
translation adjustments
|
4,997,233
|
|
2,430,761
|
|
371,007
|
Comprehensive
(loss) income, net of tax
|
(9,137,789)
|
|
68,455,478
|
|
10,448,347
|
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interests
|
2,289,368
|
|
3,886,521
|
|
593,199
|
Comprehensive
(loss) income attributable to ordinary shareholders
|
(6,848,421)
|
|
72,341,999
|
|
11,041,546
|
GreenTree
Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of
Cash Flows
|
|
|
Quarter
Ended
|
|
March 31,
2020
|
|
March 31,
2021
|
|
March 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Operating
activities:
|
|
|
|
|
|
Net income
|
(14,135,022)
|
|
66,024,717
|
|
10,077,340
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
15,666,645
|
|
19,074,400
|
|
2,911,322
|
Share of gains in
equity method investments
|
(394,844)
|
|
(379,566)
|
|
(57,933)
|
Fair value change in
returnable consideration and contingent consideration,
net
|
-
|
|
(502,712)
|
|
(76,729)
|
Interest
income
|
(2,744,441)
|
|
(2,089,240)
|
|
(318,880)
|
Bad debt
expense
|
5,919,636
|
|
11,757,435
|
|
1,794,535
|
Losses (Gains) on
equity securities
|
55,174,917
|
|
(27,724,291)
|
|
(4,231,553)
|
Foreign exchange
losses
|
1,157,432
|
|
732,281
|
|
111,768
|
Share-based
compensation
|
232,558
|
|
778,699
|
|
118,853
|
Withholding
tax
|
4,000,000
|
|
-
|
|
-
|
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
6,121,451
|
|
(12,126,644)
|
|
(1,850,887)
|
Prepaid
rent
|
4,335,665
|
|
(8,105,712)
|
|
(1,237,173)
|
Inventories
|
(394,213)
|
|
1,172,977
|
|
179,031
|
Amounts due from
related parties
|
794,843
|
|
(3,385,042)
|
|
(516,658)
|
Other current
assets
|
20,315,530
|
|
(80,953,704)
|
|
(12,355,949)
|
Other
assets
|
(5,682,307)
|
|
1,788,864
|
|
273,034
|
Accounts
payable
|
1,286,146
|
|
1,805,682
|
|
275,601
|
Amounts due to
related parties
|
(2,018,023)
|
|
101,187
|
|
15,444
|
Salary and welfare
payable
|
(2,017,251)
|
|
674,137
|
|
102,893
|
Deferred
revenue
|
(30,918,517)
|
|
(14,664,778)
|
|
(2,238,282)
|
Advance from
customers
|
(2,574,201)
|
|
(4,253,546)
|
|
(649,218)
|
Accrued expenses and
other current liabilities
|
(104,735,404)
|
|
15,395,642
|
|
2,349,834
|
Income tax
payable
|
(16,151,267)
|
|
4,988,817
|
|
761,442
|
Unrecognized tax
benefits
|
14,285,229
|
|
5,642,471
|
|
861,209
|
Deferred
rent
|
5,061,762
|
|
4,234,903
|
|
646,372
|
Other long-term
liabilities
|
12,994,529
|
|
10,881,411
|
|
1,660,828
|
Deferred
taxes
|
(13,967,629)
|
|
7,420,469
|
|
1,132,585
|
Net cash used in
operating activities
|
(48,386,776)
|
|
(1,711,143)
|
|
(261,171)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
(23,078,232)
|
|
(68,499,010)
|
|
(10,454,991)
|
Payment for
acquisition of minority equity
|
-
|
|
(868,387)
|
|
(132,541)
|
Acquisitions, net of
cash received
|
-
|
|
(309,500)
|
|
(47,239)
|
Collection of
acquisition advances
|
-
|
|
1,000,000
|
|
152,630
|
Advances for
purchases of property and equipment
|
-
|
|
(34,463,020)
|
|
(5,260,084)
|
Advance for
acquisitions
|
-
|
|
(53,350,105)
|
|
(8,142,815)
|
Purchases of
short-term investments
|
(101,270,000)
|
|
(64,924,355)
|
|
(9,909,392)
|
Proceeds from
short-term investments
|
395,066,686
|
|
223,549,240
|
|
34,120,278
|
Proceeds from sales
of long-term time deposits
|
-
|
|
50,000,000
|
|
7,631,491
|
Increase of long-term
time deposits
|
(30,000,000)
|
|
(130,000,000)
|
|
(19,841,876)
|
Loan to related
parties
|
(165,516,500)
|
|
(178,277,880)
|
|
(27,210,520)
|
Repayment from
related parties
|
165,516,500
|
|
147,415,500
|
|
22,500,000
|
Loan to third
parties
|
(2,000,000)
|
|
(1,500,000)
|
|
(228,945)
|
Loan to
franchisees
|
(98,730,000)
|
|
(191,020,002)
|
|
(29,155,347)
|
Repayment from
franchisees
|
15,015,463
|
|
43,074,326
|
|
6,574,426
|
Net cash provided
by (used in) by investing activities
|
155,003,917
|
|
(258,173,193)
|
|
(39,404,925)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Loan from
non-controlling interest
|
-
|
|
2,792,853
|
|
426,273
|
Proceeds from
short-term borrowings
|
10,000,000
|
|
130,000,000
|
|
19,841,875
|
Capital contribution
from noncontrolling interest holders
|
400,000
|
|
3,291,000
|
|
502,305
|
Net cash provided
by financing activities
|
10,400,000
|
|
136,083,853
|
|
20,770,453
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(575,018)
|
|
409,130
|
|
62,445
|
Net
increase(decrease) in cash and cash equivalents
|
116,443,123
|
|
(123,391,353)
|
|
(18,833,199)
|
Cash and cash
equivalents at the beginning of the period
|
342,160,223
|
|
633,728,109
|
|
96,725,802
|
Cash and cash
equivalents at the end of the period
|
458,602,346
|
|
510,336,756
|
|
77,892,603
|
GreenTree
Hospitality Group Ltd.
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
|
|
Quarter
Ended
|
|
March 31,
2020
|
|
March 31,
2021
|
|
March 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
(14,135,022)
|
|
66,024,717
|
|
10,077,340
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
Other operating
income
|
17,330,931
|
|
17,872,403
|
|
2,727,862
|
Interest income and
other, net
|
10,613,260
|
|
15,131,096
|
|
2,309,456
|
Gains from investment
in equity securities
|
-
|
|
27,724,291
|
|
4,231,553
|
Share of gains in equity
investees, net of tax
|
394,844
|
|
379,566
|
|
57,933
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
Other operating
expenses
|
1,157,149
|
|
1,393,556
|
|
212,698
|
Income tax
expense
|
6,177,560
|
|
35,206,811
|
|
5,373,609
|
Interest
expense
|
1,010,255
|
|
3,388,211
|
|
517,142
|
Depreciation and
amortization
|
15,666,645
|
|
19,074,400
|
|
2,911,322
|
Losses from
investment in equity securities
|
55,174,918
|
|
-
|
|
-
|
Adjusted EBITDA
(Non-GAAP)
|
36,712,470
|
|
63,980,339
|
|
9,765,307
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
March 31,
2020
|
|
March 31,
2021
|
|
March 31,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
(14,135,022)
|
|
66,024,717
|
|
10,077,340
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
Government subsidies
(net of 25% tax)
|
12,432,572
|
|
10,290,918
|
|
1,570,701
|
Gains from investment
in equity securities (net of 25% tax)
|
-
|
|
20,793,218
|
|
3,173,665
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
Share-based
compensation
|
232,558
|
|
778,699
|
|
118,853
|
Losses from
investments in equity securities (net of 25%
tax)
|
50,081,189
|
|
-
|
|
-
|
One-time fees
and expense
|
-
|
|
3,673,391
|
|
560,669
|
Asset impairment/Accrued bad
debt
|
-
|
|
4,523,574
|
|
690,432
|
Income tax expenses
related to dividend distribution
|
4,000,000
|
|
-
|
|
-
|
Core net
income(Non-GAAP)
|
27,746,794
|
|
43,916,245
|
|
6,702,928
|
|
|
|
|
|
|
Core net income
per ADS (Non-GAAP)
|
|
|
|
|
|
Class A ordinary
share-basic and diluted
|
0.27
|
|
0.43
|
|
0.07
|
Class B ordinary
share-basic and diluted
|
0.27
|
|
0.43
|
|
0.07
|
Operational Data
|
2020
Q1
|
2021
Q1
|
Total hotels
in operation:
|
3,998
|
4,464
|
Leased-and-owned
hotels
|
35
|
43
|
Franchised
hotels
|
3,963
|
4,421
|
Total hotel
rooms in operation
|
292,716
|
323,648
|
Leased-and-owned
hotels
|
4,349
|
5,350
|
Franchised
hotels
|
288,367
|
318,298
|
Number of
cities
|
342
|
353
|
|
Quarter
Ended
|
2020
Q1
|
2021
Q1
|
Occupancy
rate (as a percentage)
|
|
|
Leased-and-owned
hotels
|
32.7%
|
51.7%
|
Franchised
hotels
|
47.7%
|
63.7%
|
Blended
|
47.3%
|
63.4%
|
Average
daily rate (in RMB)
|
|
|
Leased-and-owned
hotels
|
169
|
184
|
Franchised
hotels
|
149
|
150
|
Blended
|
150
|
151
|
RevPAR (in
RMB)
|
|
|
Leased-and-owned
hotels
|
55
|
95
|
Franchised
hotels
|
71
|
96
|
Blended
|
71
|
96
|
|
Number of Hotels
in Operation
|
Number of Hotel
Rooms in Operation
|
|
2020
Q1
|
2021
Q1
|
2020
Q1
|
2021
Q1
|
Luxury
|
20
|
26
|
4,607
|
5,337
|
Argyle
|
20
|
26
|
4,607
|
5,337
|
Mid-to-up-scale
|
272
|
387
|
24,595
|
35,203
|
GreenTree
Eastern
|
109
|
162
|
11,649
|
17,136
|
Deepsleep
Hotel
|
2
|
4
|
161
|
286
|
Gem
|
28
|
38
|
2,517
|
3,499
|
Gya
|
26
|
45
|
2,165
|
3,847
|
Vx
|
22
|
40
|
1,766
|
3,309
|
Ausotel
|
10
|
12
|
1,287
|
1,589
|
Urban Garden and
others[1]
|
75
|
86
|
5,050
|
5,537
|
Mid-scale
|
2,582
|
2,864
|
211,155
|
229,314
|
GreenTree
Inn
|
2,027
|
2,177
|
172,385
|
181,964
|
GT
Alliance
|
315
|
430
|
24,231
|
31,617
|
GreenTree
Apartment
|
10
|
15
|
438
|
1,031
|
Vatica
|
122
|
122
|
8,937
|
8,859
|
City 118 Selected and
others[1]
|
108
|
120
|
5,164
|
5,843
|
Economy
hotels
|
1,124
|
1,187
|
52,359
|
53,794
|
Shell
|
555
|
634
|
24,215
|
27,512
|
City 118 and
others[1]
|
569
|
553
|
28,144
|
26,282
|
Total
|
3,998
|
4,464
|
292,716
|
323,648
|
Notes:
1. Others include other brands in
each segment of Urban.
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
Email: lbergkamp@ChristensenIR.com
View original
content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-quarter-2021-financial-results-301343793.html
SOURCE GreenTree Hospitality Group Ltd.