Total revenues increased 53.3% year-over-year to RMB241.2 million (US$36.8 million)
GreenTree Hospitality Group Ltd. (NYSE: GHG), a leading hospitality management group in China, yesterday 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$1.00=RMB6.5518 on March 31, 2021 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20210405/ |
| 2 | Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, interest expense, depreciation and amortization, losses from investment in equity securities, share of loss in equity investees (net of tax), but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gain in equity investees (net of tax) . The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the abovementioned definition. |
| 3 | Tier 1 Cities refers to Beijing, Shanghai, Shenzhen and Guangzhou; Tier 2 Cities refers to the 32 major cities, other than Tier 1 Cities, including provincial capitals, administrative capitals of autonomous regions, direct-controlled municipalities and other major cities designated as municipalities with independent planning by the State Council. |
First Quarter of 2021 Financial Results
| Quarter Ended | |||||
| March 31, 2020 | March 31, 2021 | March 31, 2021 | |||
| RMB | RMB | US$ | |||
| 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 | 89,763,273 | 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 | ||
Hotel operating costs were RMB122.2 million (US$18.7 million) [1], a 36.2% increase year over year. The increase was mainly attributable to higher rents due to the opening of 12 L&O hotels since the second quarter of 2020. Excluding these, hotel operating costs increased 17.9%, mainly due to increase in staff number and staff salaries.
| Quarter Ended | |||||
| March 31, | March 31, | March 31, | |||
| 2020 | 2021 | 2021 | |||
| RMB | RMB | US$ | |||
| 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.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. (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 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) 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 | 116,442,123 | (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.