GreenTree Hospitality Group Ltd. Reports Third Quarter of 2025 Financial Results
Total revenues decreased by 15.0% year over year to RMB303.6 million (US$42.6 million)[1]. Income from operations was RMB70.1 million (US$9.8 million)[1] compared to RMB106.4 million for the third quarter of 2024. Net income was RMB60.3 million (US$8.5 million)[1] compared to RMB65.2 million for the third quarter of 2024. Adjusted EBITDA (non-GAAP) [2] decreased 6.1% year over year to RMB115.0 million (US$16.1 million)[1] Cash from operations increased 3.8% year over year to RMB144.5 million (US$20.3 million) [1] SHANGHAI, Dec. 23, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the third quarter of 2025. Third Quarter of 2025 Operational Highlights Hotels A total of 4,533 hotels with 323,510 hotel rooms were in operation as of September 30, 2025. The Company opened 41 hotels and had a pipeline of 1,248 hotels contracted for or under development as of September 30, 2025. The average daily room rate was RMB173, a decrease of 4.1% from RMB181 in the third quarter of 2024. The occupancy rate was 71.3%, decreased from 74.6% in the third quarter of 2024. Revenue per available room, or RevPAR, was RMB124, an 8.4% year-over-year decrease. [1]. The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1190 on September 30, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20251006/. [2]. Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities, other general expenses, and other expense, net, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above-mentioned definition. [3]. Core net income (non-GAAP) is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, income tax expenses related to dividend distribution, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax). [4]. Each ADS represents one ordinary share. Restaurants A total of 185 restaurants were in operation as of September 30, 2025. The AC (average check) was RMB37, a 19.3% year-over-year decrease. The ADT (average daily tickets) was 100, down from 106 in the third quarter of 2024. The ADS (average daily sales per store) was RMB3,714, a decrease of 24.1% from RMB4,891 in the third quarter of 2024. Third Quarter of 2025 Financial Results Quarter Ended September 30, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 118,159,125 41,117,277 159,276,402 Franchised-and-managed revenues 167,928,127 1,757,933 169,686,060 Wholesales and others 796,488 27,766,790 -544,290 28,018,988 Total revenues 286,883,740 70,642,000 -544,290 356,981,450 Quarter Ended September 30, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 115,597,165 26,516,648 -34,568 142,079,245 19,957,753 Franchised-and-managed revenues 138,566,905 1,848,818 140,415,723 19,724,080 Wholesales and others 311,831 21,018,623 -219,986 21,110,468 2,965,370 Total revenues 254,475,901 49,384,089 -254,554 303,605,436 42,647,203 Nine Month Ended September 30, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 346,552,738 130,792,112 477,344,850 Franchised-and-managed revenues 476,898,409 5,527,686 482,426,095 Wholesales and others 2,881,694 77,272,388 -1,004,493 79,149,589 Total revenues 826,332,841 213,592,186 -1,004,493 1,038,920,534 Nine Month Ended September 30, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 310,356,692 85,575,101 -241,982 395,689,811 55,582,218 Franchised-and-managed revenues 424,320,098 5,025,292 429,345,390 60,309,789 Wholesales and others 1,790,129 56,530,382 -663,791 57,656,720 8,098,991 Total revenues 736,466,919 147,130,775 -905,773 882,691,921 123,990,998 Total revenues were RMB303.6 million (US$42.6 million)[1]，a 15.0% year-over-year decrease. Hotel revenues were RMB254.5 million (US$35.7 million)[1], a 11.3% year-over-year decrease due to an 8.4% year-over-year decrease in RevPAR and the closure of 7 L&O hotels since the fourth quarter of 2024 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB49.4 million (US$6.9 million)[1], a 30.1% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores. Total revenues for the first nine months of 2025 were RMB882.7 million (US$124.0 million)[1], a 15.0% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB142.1 million (US$20.0 million)[1], a 10.8% year-over-year decrease. Total revenues from L&O hotels were RMB115.6 million (US$16.2 million)[1], a 2.2% year-over-year decrease. The decrease was primarily attributable to a 7.9% year-over-year decrease in L&O hotels' RevPAR, the closure of 7 L&O hotels since the fourth quarter of 2024, offset by revenues from the opening of 4 L&O hotels since the fourth quarter of 2024. Total revenues from L&O restaurants were RMB26.5 million (US$3.7 million)[1], a 35.5% year-over-year decrease, mainly due to the closure of 8 L&O restaurants since the fourth quarter of 2024 and the year-over-year decrease in ADS. Total revenues from L&O hotels and restaurants for the first nine months of 2025 were RMB395.7 million (US$55.6 million)[1], a 17.1% year-over-year decrease. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB140.4 million (US$19.7 million)[1], a 17.2% year-over-year decrease. Total revenues from F&M hotels were RMB138.6 million (US$19.5 million)[1], a 17.5% year-over-year decrease, primarily due to a temporary waiver of RMB15 million of management fees for hotels facing business difficulties. Excluding this temporary fee waiver, revenues from F&M hotels decreased 8.6% year over year, due to an 8.3% decrease in F&M hotels' RevPAR. Total revenues from F&M restaurants were RMB1.8 million (US$0.3 million)[1], a 5.2% year-over-year increase, mainly due to the opening of 28 franchised restaurants since the fourth quarter of 2024. Total revenues from F&M hotels and restaurants for the first nine months of 2025 were RMB429.3 million (US$60.3 million)[1], a 11.0% year-over-year decrease. Total revenues from wholesale and others were RMB21.1 million (US$3.0 million)[1], a 24.7% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business. Total revenues from wholesale and others for the first nine months of 2025 were RMB57.7 million (US$8.1 million)[1], a 27.2% year-over-year decrease. Total operating costs and expenses Quarter Ended September 30, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 155,278,796 53,365,650 -475,648 208,168,798 Selling and marketing expenses 12,899,411 2,881,942 -68,642 15,712,711 General and administrative expenses 32,309,079 7,023,449 39,332,528 Other operating expenses 1,363,201 654,777 2,017,978 Other general expenses Total operating costs and expenses 201,850,487 63,925,818 -544,290 265,232,015 Quarter Ended September 30, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 134,346,844 43,015,455 -254,554 177,107,745 24,878,178 Selling and marketing expenses 11,314,233 2,133,816 13,448,049 1,889,036 General and administrative expenses 22,001,373 2,180,546 24,181,919 3,396,814 Other operating expenses 5,652,433 1,158,623 6,811,056 956,743 Other general expenses 19,483,576 19,483,576 2,736,842 Total operating costs and expenses 192,798,459 48,488,440 -254,554 241,032,345 33,857,613 Nine Month Ended September 30, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 450,888,078 170,642,273 -916,517 620,613,834 Selling and marketing expenses 41,576,925 8,473,078 -87,975 49,962,028 General and administrative expenses 119,706,277 22,802,128 142,508,405 Other operating expenses 2,301,445 2,136,726 4,438,171 Other general expenses 11,756,531 11,756,531 Total operating costs and expenses 626,229,256 204,054,205 -1,004,492 829,278,969 Nine Month Ended September 30, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 429,606,985 127,143,822 -905,774 555,845,033 78,079,089 Selling and marketing expenses 34,279,177 6,698,306 40,977,483 5,756,073 General and administrative expenses 93,293,494 12,655,909 105,949,403 14,882,624 Other operating expenses 9,942,672 1,600,920 11,543,592 1,621,519 Other general expenses 31,094,887 31,094,887 4,367,873 Total operating costs and expenses 598,217,215 148,098,957 -905,774 745,410,398 104,707,178 Operating costs were RMB177.1 million (US$24.9 million)[1], a 14.9% year-over-year decrease. Operating costs of the hotel business were RMB134.3 million (US$18.9 million)[1], a 13.5% year-over-year decrease. The decrease was mainly attributable to lower rental resulting from the closure of L&O hotels. Operating costs of the restaurant business in the third quarter of 2025 were RMB43.0 million (US$6.0 million)[1], a 19.4% year-over-year decrease, due to the closure of L&O stores. For the first nine months of 2025, operating costs were RMB555.8 million (US$78.1 million)[1], a 10.4% year-over-year decrease. Selling and marketing expenses were RMB13.4 million (US$1.9 million)[1], a 14.4% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB11.3 million (US$1.6 million)[1], a 12.3% year-over-year decrease. The decrease was mainly due to lower staff related costs. Selling and marketing expenses of the restaurant business were RMB2.1 million (US$0.3 million)[1], a 26.0% year-over-year decrease, mainly attributable to lower travelling expenses and lower sales-channel commissions. For the first nine months of 2025, selling and marketing expenses were RMB41.0 million (US$5.8 million)[1], a 18.0% year-over-year decrease. General and administrative, or G&A expenses were RMB24.2 million (US$3.4 million)[1], a 38.5% year-over-year decrease. G&A expenses of the hotel business were RMB22.0 million (US$3.1 million)[1], a 31.9% year-over-year decrease. The decrease was mainly attributable to lower bad debt provisions for long-aged account receivables, lower staff related expenses, and lower consulting fees. G&A expenses of the restaurant business were RMB2.2 million (US$0.3 million)[1], a 69.0% year-over-year decrease, mainly due to lower staff related expenses, lower office expenses, and a decrease in depreciation and amortization and bad debt provisions for long-aged account receivables. General and administrative expenses for the first nine months of 2025 were RMB105.9 million (US$14.9 million)[1], a 25.7% year-over-year decrease. Other general expenses were RMB19.5 million (US$2.7 million)[1], entirely attributable to provisions for loan receivables related to franchisee loans. Other general expenses for the first nine months of 2025 were RMB31.1 million (US$4.4 million)[1], up from RMB11.8 million one year ago. Gross profit was RMB126.5 million (US$17.8 million)[1], a year-over-year decrease of 15.0%. Gross margin was 41.7%, the same as the third quarter of 2024. Gross profit of the hotel business was RMB120.1 million (US$16.9 million)[1], an 8.7% year-over-year decrease. Gross profit of the restaurant business was RMB6.4 million (US$0.9 million)[1], a 63.1% year-over-year decrease. Income from operations in the third quarter of 2025 was RMB70.1 million (US$9.8 million)[1], compared to income from operations of RMB106.4 million in the third quarter of 2024, with a margin of 23.1%. The lower profitability was due to the exemption of fees from franchisees, the loss from disposal of L&O hotels, and bad debt provisions. Excluding these, the adjusted income from operations decreased 1.9% year over year, and the margin for the third quarter of 2025 was 34.6%, up from 31.5% one year ago, thanks to lower operating costs and expenses. Income from operations of the hotel business was RMB69.1 million (US$9.7 million)[1], compared to income from operations of RMB99.5 million in the third quarter of 2024, with a margin of 27.2%. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business increased 3.6% year over year, and the margin for the third quarter of 2025 was 40.5%, up from 36.8% one year ago, due to lower operating costs and expenses. Income from operations of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to income from operations of RMB6.9 million in the third quarter of 2024, with a margin of 1.9%. Income from operations for the first nine months of 2025 was RMB155.5 million (US$21.8 million)[1] compared to income from operations of RMB263.1 million in 2024, with a margin of 17.6%. Net income in the third quarter of 2025 was RMB60.3 million (US$8.5 million)[1], compared to a net income of RMB65.2 million in the third quarter of 2024, and net margin was 19.9%. The decrease was mainly due to the decline in income from operations, which were negatively impacted by the above-mentioned items, and foreign exchange losses. Excluding these one-time or non-operation impacts, adjusted net income was RMB90.5 million, an increase of 5.7%, with a margin of 28.4%. Net income of the hotel business was RMB59.5 million (US$8.4 million)[1], up from net income of RMB58.6 million in the third quarter of 2024, and net margin was 23.4%. Excluding the impact of the above-mentioned items, which were composed of impacts by exemption of fees from franchisees in 2025Q3, the disposal of L&O hotels, the bad debt provisions, as well as foreign exchange losses, the adjusted net income of hotel business was RMB89.6 million, an increase of 13.4% year over year, with a margin of 33.3%. Net income of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to a net income of RMB6.6 million in the third quarter of 2024, and net margin was 1.8%. Net income for the first nine months of 2025 was RMB253.1 million (US$35.6 million)[1], compared to a net income of RMB184.8 million in 2024, and net margin was 28.7%. Adjusted EBITDA (non-GAAP)[2] in the third quarter of 2025 was RMB115.0 million (US$16.1 million)[1], a year-over-year decrease of 6.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 37.9%, compared to 34.3% a year ago, primarily due to lower operating costs and disciplined expense management. Adjusted EBITDA (non-GAAP)[2] of the hotel business in the third quarter of 2025 was RMB110.2 million (US$15.5 million)[1], a year-over-year decrease of 0.3%, with a margin of 43.3%, up from 38.5% one year ago. Adjusted EBITDA (non-GAAP)[2] of the restaurant business in the third quarter of 2025 was RMB4.8 million (US$0.7 million)[1], a year-over-year decrease of 52.5%. Adjusted EBITDA (non-GAAP)[2] for the first nine months of 2025 was RMB258.7 million (US$36.3 million)[1], a year-over-year decrease of 17.9%. Core net income (non-GAAP)[3] in the third quarter of 2025 was RMB78.0 million (US$11.0 million)[1], a year-over-year decrease of 16.5%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 25.7%, compared to 26.2% one year ago. Core net income (non-GAAP)[3] of the hotel business in the third quarter of 2025 was RMB77.2 million (US$10.8 million)[1], a year-over-year decrease of 11.2%, with a margin of 30.3%, the same as one year ago. Core net income (non-GAAP)[3] of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], a year-over-year decrease of 86.7%. Core net income (non-GAAP)[3] for the first nine months of 2025 was RMB158.0 million (US$22.2 million)[1], a year-over-year decrease of 29.6%. Earnings per American Depositary Share, or ADS[4], (basic and diluted) were RMB0.60 (US$0.08)[1], decreased from RMB0.65 one year ago. Earnings per American Depositary Share, or ADS[4], (basic and diluted) for the first nine months of 2025 were RMB2.53 (US$0.36)[1], decreased from RMB1.83 one year ago. Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.77 (US$0.11)[1], decreased from RMB0.92 a year ago. Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB1.56 (US$0.22)[1] for the first nine months of 2025, a decrease from RMB2.21 a year ago. Cash flow: Operating Cash inflow was RMB144.5 million (US$20.3 million)[1], as a result of income from operations. Investing cash outflow for the third quarter of 2025 was RMB167.4 million (US$23.5 million)[1], primarily due to an advance payment for the purchase of strategic assets. Financing cash outflow was nil (US$0.0 million)[1] in the third quarter. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of September 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,014.6 million (US$283.0 million)[1],compared to RMB2,034.9 million as of June 30, 2025. The decrease of RMB20.3 million was mainly due to an advance payment for the purchase of strategic assets, and was offset by cash from operating activities. Guidance Based on our performance in the first nine months of this year and considering the impact from the closure of certain L&O hotels due to lease expirations and business strategy adjustments, we maintain our previous revenue guidance for the hotel business to be in the range of -10% to -13% year-over-year. Use of Non-GAAP Financial Measures We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements. The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business. The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance. The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do. Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release. About GreenTree Hospitality Group Ltd. GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of September 30, 2025, GreenTree had a total number of 4,533 hotels and 185 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2024 according to the China Hospitality Association. GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value. For more information on GreenTree, please visit http://ir.998.com Safe Harbor Statements This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events. Financial Tables and Operational Data Follow GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Balance Sheets December 31 September 30 September 30 2,024 2,025 2,025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,490,235,562 1,638,695,772 230,186,230 Restricted cash 16,096,476 14,733,054 2,069,540 Short-term investments 10,475 25,747 3,617 Accounts receivable, net of allowance 99,688,034 105,663,744 14,842,498 Amounts due from related parties 21,839,929 21,184,099 2,975,713 Inventories 6,881,470 6,774,539 951,614 Other current assets 114,898,590 107,569,096 15,110,140 Loans receivable, net 85,463,467 46,212,004 6,491,362 Total current assets 1,835,114,003 1,940,858,055 272,630,714 Non-current assets: Amounts due from a related party 110,000,000 110,000,000 15,451,608 Restricted cash 18,869,900 18,869,900 2,650,639 Long-term time deposits 285,570,000 285,570,000 40,113,780 Loans receivable, net 15,372,238 13,842,756 1,944,480 Property and equipment, net 649,528,210 622,995,148 87,511,609 Intangible assets, net 75,677,551 73,999,664 10,394,671 Goodwill 96,074,468 96,074,468 13,495,500 Long-term investments 184,024,217 208,539,976 29,293,437 Operating lease right-of-use assets 1,328,582,419 1,297,598,192 182,272,537 Other assets 102,545,847 273,179,697 38,373,325 Deferred tax assets 245,760,095 241,431,976 33,913,749 TOTAL ASSETS 4,947,118,948 5,182,959,832 728,046,049 LIABILITIES AND EQUITY Current liabilities: Long-term bank loans, current portion 400,000 400,000 56,188 Accounts payable 56,488,405 49,486,457 6,951,321 Advance from customers 25,684,437 27,019,373 3,795,389 Amounts due to related parties 17,462,176 18,341,649 2,576,436 Salary and welfare payable 78,234,582 74,551,051 10,472,124 Deferred revenue 175,046,178 170,182,790 23,905,435 Accrued expenses and other current liabilities 481,910,291 535,728,663 75,253,359 Income tax payable 88,876,497 91,412,799 12,840,680 Operating lease liabilities, current 241,363,244 217,018,055 30,484,345 Total current liabilities 1,165,465,810 1,184,140,837 166,335,277 Long-term bank loans 256,200,000 256,000,000 35,960,107 Deferred revenue 176,353,919 147,187,989 20,675,374 Other long-term liabilities 120,975,955 123,126,896 17,295,533 Operating lease liabilities, non-current 1,215,776,075 1,228,789,575 172,607,048 Deferred tax liabilities 79,670,908 69,755,914 9,798,555 Unrecognized tax benefits 440,072,214 441,868,751 62,068,935 TOTAL LIABILITIES 3,454,514,881 3,450,869,962 484,740,829 Shareholders' equity: Class A ordinary shares 222,587,070 222,587,070 31,266,620 Class B ordinary shares 115,534,210 115,534,210 16,228,994 Treasury Stock -37,043,116 -48,049,536 -6,749,478 Additional paid-in capital 1,609,972,272 1,609,972,272 226,151,464 Retained earnings (Accumulated losses) -458,337,569 -202,062,349 -28,383,530 Accumulated other comprehensive income 6,033,263 3,426,086 481,259 Total GreenTree Hospitality Group Ltd. shareholders' equity 1,458,746,130 1,701,407,753 238,995,329 Non-controlling interests 33,857,937 30,682,117 4,309,891 Total shareholders' equity 1,492,604,067 1,732,089,870 243,305,220 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,947,118,948 5,182,959,832 728,046,049 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 159,276,402 142,079,245 19,957,753 477,344,850 395,689,811 55,582,218 Franchised-and-managed revenues 169,686,060 140,415,723 19,724,080 482,426,095 429,345,390 60,309,789 Wholesales and others 28,018,988 21,110,468 2,965,370 79,149,589 57,656,720 8,098,991 Total revenues 356,981,450 303,605,436 42,647,203 1,038,920,534 882,691,921 123,990,998 Operating costs and expenses Operating costs -208,168,798 -177,107,745 -24,878,178 -611,613,834 -555,845,033 -78,079,089 Selling and marketing expenses -15,712,711 -13,448,049 -1,889,036 -49,962,028 -40,977,483 -5,756,073 General and administrative expenses -39,332,528 -24,181,919 -3,396,814 -151,508,405 -105,949,403 -14,882,624 Other operating expenses -2,017,978 -6,811,056 -956,743 -4,438,171 -11,543,592 -1,621,519 Other general expenses -19,483,576 -2,736,842 -11,756,531 -31,094,887 -4,367,873 Total operating costs and expenses -265,232,015 -241,032,345 -33,857,613 -829,278,969 -745,410,398 -104,707,178 Other operating income 14,654,068 7,498,608 1,053,323 53,422,304 18,260,956 2,565,101 Income from operations 106,403,503 70,071,699 9,842,913 263,063,869 155,542,479 21,848,921 Interest income and other, net 7,488,034 9,850,340 1,383,669 27,438,533 28,413,766 3,991,258 Interest expense -116,161 -1,730,823 -243,127 -4,485,219 -5,548,738 -779,427 Gains (losses) from investment in equity securities 10,015,229 4,643,770 652,307 -5,409,426 29,444,565 4,136,054 Other income, net -34,653,121 -6,293,033 -883,977 -17,862,097 91,036,418 12,787,810 Income before income taxes 89,137,484 76,541,953 10,751,785 262,745,660 298,888,490 41,984,616 Income tax expense -24,330,641 -18,950,376 -2,661,944 -77,512,335 -49,134,106 -6,901,827 Income (loss) before share of gains in equity investees 64,806,843 57,591,577 8,089,841 185,233,325 249,754,384 35,082,789 Share of loss/(income) in equity investees, net of tax 405,064 2,741,144 385,046 -464,693 3,345,017 469,872 Net income(loss) 65,211,907 60,332,721 8,474,887 184,768,632 253,099,401 35,552,661 Net loss/(income) attributable to non-controlling interests 288,968 480,612 67,511 1,319,147 3,175,820 446,105 Net income attributable to ordinary shareholders 65,500,875 60,813,333 8,542,398 186,087,779 256,275,221 35,998,766 Net earnings per share Class A ordinary share-basic and diluted 0.65 0.6 0.08 1.83 2.53 0.36 Class B ordinary share-basic and diluted 0.65 0.6 0.08 1.83 2.53 0.36 Net earnings per ADS[4] Class A ordinary share-basic and diluted 0.65 0.6 0.08 1.83 2.53 0.36 Class B ordinary share-basic and diluted 0.65 0.6 0.08 1.83 2.53 0.36 Weighted average shares outstanding Class A ordinary share-basic and diluted 66,778,809 66,134,836 66,134,836 66,780,008 66,467,723 66,467,723 Class B ordinary share-basic and diluted 34,762,909 34,762,909 34,762,909 34,762,909 34,762,909 34,762,909 Other comprehensive income, net of tax Foreign currency translation adjustments 6,463,594 -12,270,580 -1,723,638 -1,642,157 -2,607,177 -366,228 Comprehensive income, net of tax 71,675,501 48,062,141 6,751,249 183,126,475 250,492,224 35,186,433 Comprehensive loss/(income) attributable to non-controlling interests 288,968 480,612 67,511 1,319,147 3,175,820 446,105 Comprehensive income (loss) attributable to ordinary shareholders 71,964,469 48,542,753 6,818,760 184,445,622 253,668,044 35,632,538 GreenTree Hospitality Group Ltd. Unaudited Hotel Business Results Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 118,159,125 115,597,165 16,237,837 346,552,738 310,356,692 43,595,546 Franchised-and-managed revenues 167,928,127 138,566,905 19,464,378 476,898,409 424,320,098 59,603,891 Others 796,488 311,831 43,803 2,881,694 1,790,129 251,458 Total revenues 286,883,740 254,475,901 35,746,018 826,332,841 736,466,919 103,450,895 Operating costs and expenses Hotel operating costs -155,278,796 -134,346,844 -18,871,589 -450,888,078 -429,606,985 -60,346,535 Selling and marketing expenses -12,899,411 -11,314,233 -1,589,301 -41,576,925 -34,279,177 -4,815,168 General and administrative expenses -32,309,079 -22,001,373 -3,090,514 -119,706,277 -93,293,494 -13,104,859 Other operating expenses -1,363,201 -5,652,433 -793,993 -2,301,445 -9,942,672 -1,396,639 Other general expenses -19,483,576 -2,736,842 -11,756,531 -31,094,887 -4,367,873 Total operating costs and expenses -201,850,487 -192,798,459 -27,082,239 -626,229,256 -598,217,215 -84,031,074 Other operating income 14,496,942 7,458,115 1,047,635 51,347,340 17,849,784 2,507,344 Income from operations 99,530,195 69,135,557 9,711,414 251,450,925 156,099,488 21,927,165 Interest income and other, net 7,467,287 9,815,879 1,378,828 27,376,005 28,318,804 3,977,919 Interest expense -115,851 -1,706,980 -239,778 -4,484,909 -5,476,179 -769,234 Gains (losses) from investment in equity securities 10,015,229 4,643,770 652,306 -769,747 29,444,565 4,136,053 Other income, net -34,647,093 -6,292,964 -883,967 -17,938,054 91,059,849 12,791,101 Income before income taxes 82,249,767 75,595,262 10,618,803 255,634,220 299,446,527 42,063,004 Income tax expense -24,053,937 -18,884,574 -2,652,700 -76,155,862 -48,735,389 -6,845,819 Income (loss) before share of gains in equity investees 58,195,830 56,710,688 7,966,103 179,478,358 250,711,138 35,217,185 Share of loss/(income) in equity investees, net of tax 405,064 2,741,144 385,046 -464,693 3,345,017 469,872 Net income(loss) 58,600,894 59,451,832 8,351,149 179,013,665 254,056,155 35,687,057 GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 41,117,277 26,516,648 3,724,772 130,792,112 85,575,101 12,020,663 Franchised-and-managed revenues 1,757,933 1,848,818 259,702 5,527,686 5,025,292 705,898 Wholesales and others 27,766,790 21,018,623 2,952,468 77,272,388 56,530,382 7,940,776 Total revenues 70,642,000 49,384,089 6,936,942 213,592,186 147,130,775 20,667,337 Operating costs and expenses Restaurant operating costs -53,365,650 -43,015,455 -6,042,346 -170,642,273 -127,143,822 -17,859,787 Selling and marketing expenses -2,881,942 -2,133,816 -299,735 -8,473,078 -6,698,306 -940,905 General and administrative expenses -7,023,449 -2,180,546 -306,299 -22,802,128 -12,655,909 -1,777,765 Other operating expenses -654,777 -1,158,623 -162,751 -2,136,726 -1,600,920 -224,880 Total operating costs and expenses -63,925,818 -48,488,440 -6,811,131 -204,054,205 -148,098,957 -20,803,337 Other operating income 157,126 40,493 5,688 2,074,964 411,172 57,757 Income from operations 6,873,308 936,142 131,499 11,612,945 -557,010 -78,243 Interest income and other, net 20,746 34,461 4,841 62,528 94,962 13,339 Interest expense -310 -23,843 -3,349 -310 -72,559 -10,192 Other income, net -6,028 -69 -10 -33,122 -23,431 -3,291 Income before income taxes 6,887,716 946,691 132,981 11,642,041 -558,038 -78,387 Income tax expense -276,704 -65,802 -9,243 -1,356,473 -398,717 -56,007 Income (loss) before share of gains in equity investees 6,611,012 880,889 123,738 10,285,568 -956,755 -134,394 Share of loss/(income) in equity investees, net of tax Net income(loss) 6,611,012 880,889 123,738 10,285,568 -956,755 -134,394 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Cash Flows Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Operating activities: Net (loss) income 65,211,908 60,332,721 8,474,887 184,768,634 253,099,401 35,552,661 Depreciation and amortization 28,690,959 26,099,091 3,666,118 89,170,635 78,795,298 11,068,310 Gains from disposal of a long-term investment -114,042,806 -16,019,498 Others non-cash expense(income) -1,588,624 -2,741,144 -385,046 -5,904,430 -3,345,017 -469,872 Noncash lease expense 68,398,682 50,999,606 7,163,872 205,628,129 180,173,228 25,308,783 Loss from disposal of a subsidiary -4,925,221 775,483 108,931 -5,764,903 775,483 108,931 Bad debt expenses 12,615,651 19,733,285 2,771,918 34,383,723 45,225,022 6,352,721 (Gains) losses and impairment on equity securities held -10,015,229 -4,643,770 -652,307 5,409,426 -29,444,565 -4,136,054 Loss (gains) on disposal of property, plant and equipment 332,997 276,296 38,811 -24,783,238 467,060 65,608 Foreign exchange (gains)losses 7,449,403 4,237,778 595,277 -1,314,548 10,127,472 1,422,598 Accounts receivable -5,363,153 5,854,925 822,436 -13,092,304 -20,377,565 -2,862,420 Inventories 223,113 494,549 69,469 15,112,676 106,931 15,021 Amounts due from related parties 2,188,419 139,368 19,577 2,488,246 572,990 80,487 Other current assets -6,330,209 33,546,181 4,712,204 -1,245,258 8,866,126 1,245,417 Other assets -2,775,493 -192,983 -27,108 -1,474,535 -9,548,953 -1,341,333 Accounts payable -7,758,061 -1,610,758 -226,262 -20,318,304 -9,902,317 -1,390,970 Amounts due to related parties 788,969 2,624,576 368,672 -615,685 664,498 93,341 Salary and welfare payable -10,164,582 -4,090,971 -574,655 -11,588,641 -3,693,966 -518,888 Deferred revenue 17,893,291 -8,940,240 -1,255,828 -13,809,645 -34,029,318 -4,780,070 Advance from customers -706,088 -61,982 -8,707 -1,123,375 1,425,038 200,174 Accrued expenses and other current liabilities 35,754,773 7,204,618 1,012,027 32,469,157 53,524,791 7,518,583 Income tax payable 20,169,690 6,014,530 844,856 11,908,367 2,515,010 353,281 Unrecognized tax benefits -4,844,361 -3,365,434 -472,740 -11,040,451 1,796,537 252,358 Operating lease liabilities -80,036,795 -62,408,812 -8,766,514 -189,805,890 -160,177,582 -22,500,012 Other long-term liabilities 6,321,131 3,623,270 508,958 -1,998,698 2,150,941 302,141 Deferred taxes 7,711,357 10,604,620 1,489,622 21,677,657 -6,405,741 -899,809 Net cash provided by operating activities 139,242,527 144,504,803 20,298,468 299,136,745 249,317,996 35,021,489 Investing activities: Purchases of property, plant and equipment -8,771,704 -29,290,174 -4,114,366 -28,965,630 -48,647,716 -6,833,504 Proceeds from disposal of property, plant and equipment 451,660 4,114 578 140,184,760 241,448 33,916 Payment for acquisition of minority equity 966,000 Purchases of a long-term investment -6,800,000 -6,800,000 Proceeds from disposal of a long-term investment 109,036,386 15,316,250 Advances for purchases of property and equipment -135,480,304 -19,030,805 -160,515,267 -22,547,446 Purchases of short-term investments 7,875 1,106 -15,272 -2,145 Proceeds from short-term investments 419,362,037 Purchase of long-term time deposits -222,230,000 Proceeds from disposal of subsidiaries 1,307,500 2,807,500 Loan to related parties 360,000 50,569 -270,000 -265,000 -37,224 Repayment from related parties 118,982 16,713 Loan to third parties -1,200,000 Repayment of loan from third parties 304,111 5,900,000 Loan to fanchisees -4,050,000 -7,121,960 -1,000,416 -5,650,000 -9,131,960 -1,282,759 Repayment from franchisees 16,489,580 4,133,925 580,689 67,466,801 18,818,018 2,643,351 Net cash (used in) provided by investing activities -102,853 -167,386,524 -23,512,645 370,605,468 -90,360,381 -12,692,848 Financing activities: Distribution to the shareholders -760,321 Repurchase of ordinary shares -300,122 -300,122 Repayment of short-term loans -117,000,000 -200,000 -28,094 Proceeds from bank loans 200,000,000 Capital contribution from non-controlling interest holders -966,000 -966,000 Net cash provided by (used in) financing activities -1,266,122 80,973,557 -200,000 -28,094 Effect of exchange rate changes on cash and cash equivalents and restricted cash 142,061 -1,701,849 -239,057 -2,657,865 -11,660,827 -1,637,984 Net (decrease) increase in cash and cash equivalents 138,015,613 -24,583,570 -3,453,234 748,057,905 147,096,788 20,662,563 Cash and cash equivalents at the beginning of the period 1,401,643,004 1,696,882,296 238,359,643 791,600,712 1,525,201,938 214,243,846 Cash and cash equivalents at the end of the period 1,539,658,617 1,672,298,726 234,906,409 1,539,658,617 1,672,298,726 234,906,409 GreenTree Hospitality Group Ltd. Unaudited Reconciliation of GAAP and Non-GAAP Results Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Net income 65,211,908 60,332,721 8,474,887 184,768,634 253,099,401 35,552,661 Deduct: Other operating income 14,654,068 7,498,608 1,053,323 53,422,304 18,260,956 2,565,101 Interest income and other, net 7,488,034 9,850,340 1,383,669 27,438,533 28,413,766 3,991,258 Gains from investment in equity securities 10,015,229 4,643,770 652,307 29,444,565 4,136,054 Share of gain in equity investees, net of tax 405,064 2,741,144 385,046 3,345,017 469,872 Other income, net 91,036,418 12,787,810 Add: Other operating expenses 2,017,978 6,811,056 956,743 4,438,171 11,543,592 1,621,519 Other general expenses 19,483,576 2,736,842 11,756,531 31,094,887 4,367,873 Income tax expenses 24,330,641 18,950,376 2,661,944 77,512,335 49,134,106 6,901,827 Share of loss in equity investees, net of tax 464,693 Interest expenses 116,161 1,730,823 243,127 4,485,219 5,548,738 779,427 Depreciation and amortization 28,690,959 26,099,091 3,666,118 89,170,635 78,795,298 11,068,310 Losses from investment in equity securities 5,409,426 Other expense, net 34,653,121 6,293,033 883,977 17,862,097 Adjusted EBITDA (Non-GAAP)[2] 122,458,373 114,966,814 16,149,293 315,006,904 258,715,300 36,341,522 Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Net income 65,211,908 60,332,721 8,474,887 184,768,634 253,099,401 35,552,661 Deduct: Government subsidies (net of 25% tax) 4,374,750 3,857,357 541,840 4,844,636 9,304,998 1,307,065 Gains from investment in equity securities (net of 25% tax) 7,511,422 4,643,770 652,307 29,444,565 4,136,054 Other income (net of 25% tax) 96,788,015 13,595,732 Add: Share-based compensation 15,662 46,986 Losses from investments in equity securities (net of 25% tax) 4,057,070 Other expense (net of 25% tax) 25,989,841 4,719,775 662,983 13,396,573 One-time fees and expenses 658,981 1,713,989 Other general expenses 19,483,576 2,736,842 11,756,531 31,094,887 4,367,873 Income tax expenses related to dividend distribution 13,496,240 2,000,000 280,938 13,496,240 9,299,300 1,306,265 Core net income (Non-GAAP)[3] 93,486,460 78,034,945 10,961,503 224,391,387 157,956,010 22,187,948 Core net income per ADS[4] (Non-GAAP) Class A ordinary share-basic and diluted 0.92 0.77 0.11 2.21 1.56 0.22 Class B ordinary share-basic and diluted 0.92 0.77 0.11 2.21 1.56 0.22 Hotel Operational Data September 30, 2024 September 30, 2025 Total hotels in operation: 4,336 4,533 Leased and owned hotels 56 52 Franchised hotels 4,280 4,481 Total hotel rooms in operation 316,461 323,510 Leased and owned hotels 6,367 6,155 Franchised hotels 310,094 317,355 Number of cities 351 356 Quarter Ended September 30, 2024 September 30, 2025 Occupancy rate (as a percentage) Leased-and-operated hotels 75.90 % 70.90 % Franchised hotels 74.60 % 71.40 % Blended 74.60 % 71.30 % Average daily rate (in RMB) Leased-and-operated hotels 258 254 Franchised hotels 179 171 Blended 181 173 RevPAR (in RMB) Leased-and-operated hotels 196 180 Franchised hotels 133 122 Blended 135 124 Number of Hotels in Operation Number of Hotel Rooms in Operation September 30, 2024 September 30, 2025 September 30, 2024 September 30, 2025 Mid-to-up-scale 527 572 49,763 53,108 GreenTree Eastern 234 237 25,245 25,143 Deepsleep Hotel 7 8 534 610 Gem 91 122 8,178 11,162 Gya 73 72 6,071 6,010 Vx 104 107 9,109 8,944 Others 18 26 626 1,239 Mid-scale 2,965 3,016 230,580 227,049 GreenTree Inn 2,336 2,391 184,086 186,236 GT Alliance 498 495 37,366 31,819 GreenTree Apartment 23 24 1,495 1,545 Vatica 108 106 7,633 7,449 Economy hotels 844 945 36,118 43,353 Shell 844 945 36,118 43,353 Total 4,336 4,533 316,461 323,510 Restaurant Operational Data September 30, 2024 September 30, 2025 Total restaurants in operation: 182 185 Leased and owned restaurants 22 14 Franchised restaurants 160 171 Number of cities 53 53 Da Niang Dumplings 159 167 Bellagio 23 18 Quarter Ended 2024 Q3 2025 Q3 ADT Leased-and-operated restaurants 188 223 Franchised restaurants 89 89 Blended 106 100 AC (in RMB) Leased-and-operated restaurants 100 79 Franchised restaurants 33 30 Blended 46 37 ADS (in RMB) Leased-and-operated restaurants 18,860 17,556 Franchised restaurants 2,950 2,628 Blended 4,891 3,714 For more information, please contact: GreenTree Ms. Selina YangPhone: +86-158-2166-6251E-mail: ir@998.com Ms. Hannah ZhangPhone: +86-182-2560-8592E-mail: ir@998.com Christensen In Shanghai Mr. Jerry XuPhone: +86-138-1680-0706E-mail: jerry.xu@christensencomms.com In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: karen.hui@christensencomms.com In the US Ms. Linda Bergkamp Phone: +1-480-614-3004E-mail: linda.bergkamp@christensencomms.com
2025-12-24