Steady and Continuous Recovery
PR Newswire
- Total revenues increased 23.6% to RMB266.9 million (US$39.3 million) [1] from RMB216.0 million in the second quarter.
- Income from operations increased 61.1% to RMB100.9 million (US$14.9 million) [1] from RMB62.7 million in the second quarter.
- Adjusted EBITDA (non-GAAP) increased 46.6% to RMB134.0 million (US$19.7 million) [1] from RMB91.4 million in the second quarter.
- Core net income (non-GAAP) increased 23.8% to RMB92.4 million (US$13.6 million) [1] from RMB74.6 million in the second quarter.
SHANGHAI, Dec. 2, 2020 /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 third quarter ended September 30, 2020.
Operational Highlights
- A total of 4,195 hotels with 305,125 hotel rooms were in operation as of September 30, 2020, compared to 4,066 hotels and 296,307 hotel rooms as of June 30, 2020.
- As of September 30, 2020, the Company had 37 leased-and-operated (“L&O”) hotels and 4,158 franchised-and-managed (“F&M”) hotels in operation in 341 cities across China, compared to 30 L&O hotels and 3,072 F&M hotels in operation in 309 cities as of September 30, 2019. The geographic coverage increased by 10.4% year over year.
- During the quarter, the Company opened 162 hotels, a decrease of 19 comparing to 181 hotels in the third quarter of 2019. Among the hotels opened, 1 was in the luxury segment, 45 in the mid-to-up-scale segment, 80 in the mid-scale segment, and 36 in the economy segment. Geographically speaking, 6 hotels were in Tier 1 cities [1], 31 in Tier 2 cities and the remaining 125 in Tier 3 and smaller cities in China.
The Company closed 33 hotels, 3 due to brand upgrades, and 26 due to their non-compliance with the Company’s brand and operating standards. The remaining 4 were closed for property related issues. The Company added a net opening of 129 hotels to its portfolio. - As of September 30, 2020, the Company had a pipeline of 1,110 hotels contracted for or under development, among which 55 hotels were in the luxury hotel segment, 218 in the mid-to-up-scale segment, 455 in the mid-scale segment, and 382 in the economy segment.
- The average daily room rate, or ADR, for all hotels in operation, was RMB151, a decrease of 12.9% year-over-year, an increase of 6.5% compared with the second quarter.
- The occupancy rate, or OCC for all hotels in operation was 79.1%, compared with 85.9% in the third quarter of 2019, and compared with 63.4% in the second quarter of 2020.
- The revenue per available room, or RevPAR, which is calculated by multiplying our hotels’ ADR by its occupancy rate, was RMB120, representing a 19.8% year-over-year decrease, and a 32.9% sequential increase.
- As of September 30, 2020, the Company’s loyalty program had more than 52 million individual members and approximately 1,610,000 corporate members, compared to approximately 49 million and over 1,560,000 corporate members as of June 30, 2020. The Company had approximately 92.5% of room nights sold directly.
“We are glad to see a meaningful improvement in the third quarter of 2020 in some of our key operating and financial metrics, as a result of a return to more normal economic activities and living conditions in mainland China,” said Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree. “We continued to serve and protect guests, constantly adapting our operations and marketing campaigns to the evolving market conditions, and we increased income from operations, net income, and Adjusted EBITDA. Our margins continue to rise thanks to our flexible cost structure and the measures we have implemented since the outbreak of COVID-19,” continued Mr. Xu.
“China has been walking a fine line in balancing pandemic control and economic recovery, with targeted measures introduced to help companies safely restart their businesses and people get back to their normal daily life. As COVID-19 came under control gradually since the second quarter, we saw a sustained recovery in domestic tourism and business. Riding on the recovery, we continued to optimize our brands, products and technology to capture domestic travel demand. As a result, our same-hotel RevPAR, excluding hotels being used for quarantine and temporary closures, decreased 16.3% in the third quarter to 125 RMB. For the third consecutive quarter in 2020, our overall performance was better than the average performance across the hospitality industry in China.
Thanks to the tireless work and dedication of our staff and franchisees, and the strong support of our loyal individual members and corporate members, the performance of our hotels continued to improve, with our occupancy rate approaching 85% during October Golden week, nearly the same as last year. In November, our occupancy rate rebounded to nearly the same level as last year, and RevPAR recovered to almost 95% of last year’s level.”
“Having gone through the challenges of the first nine months of 2020, we believe we can continue to execute our growth strategy and further enhance our partnership with our franchisees. We have accumulated extensive experience and are well prepared should the pandemic last much longer. We are confident in our ability to consistently achieve profitable growth and create long-term value for our shareholders.”
Third Quarter of 2020 Financial Results
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|||||
|
Leased-and-operated hotels |
72,530,518 |
66,823,544 |
9,842,044 |
||
|
Franchised-and-managed hotels |
219,606,332 |
200,044,031 |
29,463,302 |
||
|
|
|
|
|
||
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|||||
|
Leased-and-operated hotels |
184,867,320 |
150,961,027 |
22,234,156 |
||
|
Franchised-and-managed hotels |
617,493,389 |
489,292,503 |
72,064,997 |
||
|
|
|
|
|
||
Total revenues for the third quarter of 2020 were RMB266.9 million (US$39.3 million) [1], representing a 8.6% year-over-year decrease. The decrease was primarily due to the impact of COVID-19, which resulted in declined RevPAR of L&O hotels and F&M hotels, as well as partial reduction and extension of sublease income recognition. Total revenues increased from 216.0 million RMB in the second quarter, a 23.6% sequential increase, which was mainly attributable to a RevPAR growth from 90 RMB to 120 RMB. Total revenues for the first nine months of 2020 were RMB640.3 million (US$94.3 million) [1], representing a 20.2% decrease.
- Total revenues from leased-and-operated hotels for the third quarter of 2020 were RMB66.8 million (US$9.8 million) [1], representing a 7.9% year-over-year decrease. The decrease was primarily due to RevPAR decrease of 26.3%, and partial reduction and extension of sublease income recognition, and partially offset by the revenue contributed by 7 L&O hotels of the Urban Hotel Group (“Urban”) which was acquired in November of 2019. Compared with the second quarter, total revenues from L&O hotels increased by 32.8%, mainly attributable to rising RevPAR and newly opened 3 L&O hotels. Total revenues from L&O hotels for the first nine months of 2020 were RMB151.0 million (US$22.2 million) [1], representing a 18.3% decrease.
- Total revenues from franchised-and-managed hotels for the third quarter of 2020 were RMB200.0 million (US$29.5 million) [1], representing a 8.9% year-over-year decrease. Initial franchise fees increased by 8.8% year-over-year, mainly attributable to the gross opening of 159 hotels. The 10.2% decrease from the third quarter of 2019 in recurring franchisee management fees and others was primarily due to RevPAR decrease of 19.6%. Compared with the second quarter, initial franchise fees increased by 24.8%, mainly attributable to more hotels opened; recurring franchisee management fees and others increased by 20.4%, mainly due to RevPAR sequential growth from 90RMB to 120 RMB. Total revenues from F&M hotels for the first nine months of 2020 were RMB489.3 million (US$72.1 million) [1], representing a 20.8% decrease.
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
Initial franchise fee |
15,277,606 |
16,619,577 |
2,447,799 |
||
|
Recurring franchise management |
204,328,726 |
183,424,454 |
27,015,503 |
||
|
|
|
|
|
||
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
Initial franchise fee |
41,274,393 |
42,985,481 |
6,331,077 |
||
|
Recurring franchise management |
576,218,996 |
446,307,022 |
65,733,920 |
||
|
|
|
|
|
||
Total operating costs and expenses
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|||||
|
Hotel operating costs |
87,277,200 |
108,025,295 |
15,910,406 |
||
|
Selling and marketing expenses |
20,785,447 |
21,273,500 |
3,133,248 |
||
|
General and administrative expenses |
39,891,061 |
44,782,915 |
6,595,811 |
||
|
Other operating expenses |
53,736 |
434,792 |
64,038 |
||
|
|
|
|
|
||
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|||||
|
Hotel operating costs |
246,216,861 |
292,705,145 |
43,110,808 |
||
|
Selling and marketing expenses |
61,815,183 |
51,114,478 |
7,528,349 |
||
|
General and administrative expenses |
105,391,932 |
121,672,457 |
17,920,417 |
||
|
Other operating expenses |
161,710 |
1,633,064 |
240,524 |
||
|
|
|
|
|
||
Hotel operating costs for the third quarter of 2020 were RMB108.0 million (US$15.9 million) [1], representing a 23.8% increase year-over-year. The increase was mainly attributable to higher rents, higher depreciation and amortization, and the consolidation of operation costs of Urban. In the third quarter, there were 3 L&O hotels newly opened and 5 L&O hotels under construction, which accounted for the main increase in hotel operating costs. Excluding L&O hotel operating costs, costs related to F&M hotels and others increased 0.8%, primarily due to the expansion of our business and F&M hotels. Comparing hotel operating costs with the second quarter, we observe a 13.8% sequential growth, mainly due to more L&O hotels coming into development. For the first nine months of 2020, hotel operating costs were RMB292.7 million (US$43.1 million) [1], representing a 18.9% increase.
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|
|
|||
|
Rental |
17,679,757 |
27,189,274 |
4,004,547 |
||
|
Utilities |
4,231,308 |
3,666,479 |
540,014 |
||
|
Personnel cost |
10,918,296 |
11,732,599 |
1,728,025 |
||
|
Depreciation and amortization |
5,627,887 |
14,946,857 |
2,201,434 |
||
|
Consumable, food and beverage |
7,760,883 |
7,937,167 |
1,169,018 |
||
|
Costs of general managers of |
27,616,095 |
24,241,736 |
3,570,422 |
||
|
Other costs of franchised-and-managed |
8,400,931 |
7,873,516 |
1,159,644 |
||
|
Others |
5,042,043 |
10,437,667 |
1,537,302 |
||
|
|
|
|
|
||
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|
|
|||
|
Rental |
57,327,190 |
90,098,256 |
13,270,039 |
||
|
Utilities |
15,277,291 |
11,258,969 |
1,658,267 |
||
|
Personnel cost |
28,207,871 |
31,296,079 |
4,609,414 |
||
|
Depreciation and amortization |
19,326,123 |
36,873,883 |
5,430,936 |
||
|
Consumable, food and beverage |
21,529,959 |
23,477,610 |
3,457,878 |
||
|
Costs of general managers of |
73,106,207 |
65,575,838 |
9,658,277 |
||
|
Other costs of franchised-and-managed |
21,393,731 |
17,853,103 |
2,629,478 |
||
|
Others |
10,048,489 |
16,271,407 |
2,396,519 |
||
|
|
|
|
|
||
Selling and marketing expenses for the third quarter of 2020 were RMB21.3 million (US$3.1 million) [1], representing a 2.3% year-over-year increase. The increase was mainly attributable to the Company’s first attempt to cooperate with Internet social platforms which became prevalent because of COVID-19. Excluding the above-mentioned advertising fees, selling and marketing expenses in this quarter decreased 40.4% year over year, and increased 3.3% quarter over quarter. For the first nine months of 2020, selling and marketing expenses were RMB 51.1 million (US$7.5 million) [1], representing a 17.3% decrease.
General and administrative expenses for the third quarter of 2020 were RMB44.8 million (US$6.6 million) [1], representing a 12.3% year-over-year increase. The increase was primarily attributable to higher depreciation and amortization for our property and equipment, increased investment in Research and Development, higher consulting fees, and the consolidation of expenses from Argyle Hotel Management Group (Australia) Pty Ltd (“Argyle”) and Urban. Compared with the second quarter, G&A expenses decreased by 7.0%. General and administrative expenses for the first nine months of 2020 were RMB121.7 million (US$17.9 million) [1], representing a 15.4% year-over-year increase.
Gross profit for the third quarter of 2020 was RMB158.8 million (US$23.4 million) [1], representing a year-over-year decrease of 22.5%. Gross margin was 59.5%, compared to 70.1% a year ago. The decrease was primarily due the impact of COVID-19. Compared with the second quarter, gross profit increased by 31.2%, and gross margin increased from 56.1% to 59.5%. Gross profit for the first nine months of 2020 was RMB347.5 million (US$51.2 million) [1], representing a 37.5% year-over-year decrease.
Income from operations for the third quarter of 2020 totaled RMB100.9 million (US$14.9 million) [1], representing a year-over-year decrease of 33.9%. The decrease was mainly due to decreased revenues resulting from lower RevPAR, delays in new hotel openings, and certain extension of sublease income recognition. Operating margin, defined as income from operations as percentage of total revenues, was 37.8%, compared to 52.2% a year ago. Compared with the second quarter, income from operations increased by 61.1%, and operating margin increased from 29.0% to 37.8%, mainly attributable to revenue increase. Income from operations for the first nine months of 2020 totaled RMB200.8 million (US$29.6 million) [1], representing a year-over-year decrease of 50.5%.
Adjusted EBITDA (non-GAAP) for the third quarter of 2020 was RMB134.0 million (US$19.7 million) [1], representing a year-over-year decrease of 24.3%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 50.2%, compared to 60.6% a year ago. Compared with the second quarter, adjusted EBITDA increased by 46.6%, and adjusted EBITDA margin increased from 42.3% to 50.2%. Adjusted EBITDA (non-GAAP) for the first nine months of 2020 was RMB272.9 million (US$40.2 million) [1], representing a year-over-year decrease of 43.6%.
Net income for the third quarter of 2020 was RMB85.6 million (US$12.6 million) [1], representing a year-over-year decrease of 16.2%. Net margin was 32.1%, compared to 35.0% a year ago. The year-over-year decrease was primarily due to revenue decrease partially offset by gains from investments in equity securities. Compared with the second quarter, net income decreased by 8.6%, and net margin decreased from 43.4% to 32.1%, mainly due to decline in gains from investment in equity securities since the second quarter. Net income for the first nine months of 2020 was RMB165.2 million (US$24.3 million) [1], representing a year-over-year decrease of 54.5%.
Core net income (non-GAAP) for the third quarter of 2020 was RMB92.4 million (US$13.6 million) [1], representing a year-over-year decrease of 31.5%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 34.6%, compared to 46.2% one year ago. Compared with the second quarter, core net income increased by 23.8%. Core net income (non-GAAP) for the first nine months of 2020 was RMB194.8 million (US$28.7 million) [1], representing a year-over-year decrease of 44.8%.
Earnings per ADS (basic and diluted) for the third quarter of 2020 was RMB0.81(US$0.12)[1], down from earnings per ADS of RMB1.01 one year ago, down from RMB1.01 in the second quarter of 2020, mainly due to the decline in gains from investment in equity securities since the second quarter. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.90(US$0.13) [1], down from RMB1.32 a year ago, up from RMB0.72 of the second quarter of 2020. Earnings per ADS (basic and diluted) for the first nine months of 2020 was RMB1.71(US$0.25) [1] down from RMB3.60 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB1.89(US$0.28)[1] for the first nine months of 2020, decreased from RMB3.46 of 2019.
Cash flow. Operating cash inflow for the third quarter of 2020 was RMB175.4 million (US$25.8 million) [1] as a result of the recovery from COVID-19 and improved operating performance. Investing cash outflow for the third quarter of 2020 was RMB54.9 million (US$8.1 million) [1], which was primarily attributable to loans to franchisees, and investment in property and equipment. The investing cash outflow was partially offset by repayment from franchisees, as well as proceeds from short-term investments. Financing cash outflow was RMB4.1 million (US$0.6 million). Operating cash inflow for the first nine months of 2020 was RMB176.8 million (US$26.0 million) [1]. Investing cash inflow for the first nine months of 2020 was RMB53.8 million (US$7.9 million) [1]. Financing cash inflow for the first nine months of 2020 was RMB17.7 million (US$2.6 million) [1].
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposit. As of September 30, 2020, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,815.4 million (US$267.4 million) [1], compared to RMB1,714.0 million as of June 30, 2020. The increase from the second quarter was primarily attributable to cash inflow from operating activities, changes in fair value of equity securities and dividends from equity securities, and offset by loans to franchisees, investment in the decoration of L&O hotels, and cash outflow for balance fees for acquisitions.
COVID-19 Update
With effective control measures implemented by the Chinese government. Recently, China showed strong signs of economic rebound as the government introduced various policies to encourage domestic consumption. During the October Golden week, the number of domestic tourists rebounded to 637 million reaching 79 percent of last year’s level and generating 466.6 billion RMB in revenue reaching 69.9 percent of last year’s level, according to statistics from China’s Ministry of Culture and Tourism. These figures pointed to a considerable improvement compared to the three-day Dragon Boat Festival vacation period this June, when there were 48.81 million tourists, accounting for 50.9% of last year’s level.
With all these efforts the performance of our hotels continued to improve, with our occupancy rate approaching 85% during the October Golden week, nearly the same as last year. In November, our occupancy rate rebounded to nearly the same level as last year, and RevPAR recovered to almost 95% of last year’s level.
Guidance
So far in 2020, our operations are in line with our previous forecast. Assuming the pandemic remains under control in China in Q4, the Company expects a decline in total revenues of 12%-15% for the full year 2020, 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 8:00 PM U.S. Eastern Time on December 2, 2020 (9:00 AM Beijing/Hong Kong Time on December 3, 2020).
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 |
|
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 December 9, 2020.
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: |
10149105 |
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 September30, 2020, GreenTree had a total number of 4,195 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 2019 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—
|
|
|||||
|
|
|||||
|
|
|
|
|||
|
|
|
|
|||
|
|
|
|
|||
|
|
|||||
|
|
|||||
|
Cash and cash equivalents |
319,847,701 |
567,434,639 |
83,574,090 |
||
|
Short-term investment |
437,279,026 |
205,186,988 |
30,220,777 |
||
|
Investments in equity securities |
207,007,926 |
181,974,105 |
26,801,889 |
||
|
Accounts receivable, net of allowance |
99,701,226 |
121,005,102 |
17,822,125 |
||
|
Amounts due from related parties |
31,739,731 |
29,114,524 |
4,288,106 |
||
|
Prepaid rent |
18,794,665 |
8,230,135 |
1,212,168 |
||
|
Inventories |
2,537,717 |
4,064,736 |
598,671 |
||
|
Other current assets |
66,004,017 |
62,839,705 |
9,255,288 |
||
|
Loans receivable, net |
82,312,201 |
181,054,867 |
26,666,500 |
||
|
|
|
|
|
||
|
|
|||||
|
Restricted cash |
22,312,522 |
22,169,900 |
3,265,273 |
||
|
Long-term time deposits |
560,000,000 |
570,000,000 |
83,951,926 |
||
|
Loan receivable, net |
121,563,742 |
163,841,761 |
24,131,283 |
||
|
Property and equipment, net |
614,936,505 |
641,366,729 |
94,463,110 |
||
|
Intangible assets, net |
496,280,316 |
492,028,655 |
72,467,989 |
||
|
Goodwill |
100,078,236 |
100,231,487 |
14,762,503 |
||
|
Long-term investments |
398,637,701 |
410,512,592 |
60,461,970 |
||
|
Other assets |
76,957,992 |
56,102,628 |
8,263,023 |
||
|
Deferred tax assets |
160,488,193 |
170,466,037 |
25,106,934 |
||
|
|
|
|
|
||
|
|
|||||
|
|
|||||
|
Short-term bank loans |
60,000,000 |
60,000,000 |
8,837,045 |
||
|
Accounts payable |
15,296,042 |
22,783,708 |
3,355,678 |
||
|
Advance from customers |
40,105,627 |
32,007,939 |
4,714,260 |
||
|
Amounts due to related parties |
3,518,031 |
1,991,598 |
293,331 |
||
|
Salary and welfare payable |
42,650,527 |
52,459,503 |
7,726,450 |
||
|
Deferred rent |
5,179,664 |
1,454,458 |
214,218 |
||
|
Deferred revenue |
231,925,272 |
239,482,475 |
35,271,956 |
||
|
Accrued expenses and other current liabilities |
302,448,361 |
310,355,001 |
45,710,351 |
||
|
Income tax payable |
93,909,177 |
63,387,103 |
9,335,911 |
||
|
|
|
|
|
||
|
Deferred rent |
17,821,686 |
26,330,439 |
3,878,055 |
||
|
Deferred revenue |
410,807,248 |
370,646,075 |
54,590,267 |
||
|
Other long-term liabilities |
118,112,511 |
136,266,485 |
20,069,884 |
||
|
Deferred tax liabilities |
195,303,547 |
206,682,669 |
30,441,067 |
||
|
Unrecognized tax benefits |
261,641,717 |
275,349,655 |
40,554,621 |
||
|
|
|
|
|
||
|
|
|||||
|
Class A ordinary shares |
219,526,699 |
222,587,070 |
32,783,531 |
||
|
Class B ordinary shares |
115,534,210 |
115,534,210 |
17,016,349 |
||
|
Additional paid-in capital |
1,152,108,217 |
1,149,280,404 |
169,270,709 |
||
|
Retained earnings |
308,698,533 |
484,484,710 |
71,356,886 |
||
|
Accumulated other comprehensive income |
65,300,854 |
64,250,172 |
9,463,028 |
||
|
|
|
|
|
||
|
Non-controlling interests |
156,591,494 |
152,290,916 |
22,430,028 |
||
|
|
|
|
|
||
|
|
|
|
|
||
|
|
|||||||||||
|
|
|||||||||||
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|||||||||||
|
Leased-and-operated hotels |
72,530,518 |
66,823,544 |
9,842,044 |
184,867,320 |
150,961,027 |
22,234,156 |
|||||
|
Franchised-and-managed hotels |
219,606,332 |
200,044,031 |
29,463,302 |
617,493,389 |
489,292,503 |
72,064,997 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Hotel operating costs |
(87,277,200) |
(108,025,295) |
(15,910,406) |
(246,216,861) |
(292,705,145) |
(43,110,808) |
|||||
|
Selling and marketing expenses |
(20,785,447) |
(21,273,500) |
(3,133,248) |
(61,815,183) |
(51,114,478) |
(7,528,349) |
|||||
|
General and administrative expenses |
(39,891,061) |
(44,782,915) |
(6,595,811) |
(105,391,932) |
(121,672,457) |
(17,920,417) |
|||||
|
Other operating expenses |
(53,736) |
(434,792) |
(64,038) |
(161,710) |
(1,633,064) |
(240,524) |
|||||
|
|
|
|
|
|
|
|
|||||
|
Other operating income |
8,449,390 |
8,577,445 |
1,263,321 |
16,995,685 |
27,671,358 |
4,075,551 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Interest income and other, net |
18,055,095 |
23,140,692 |
3,408,256 |
52,283,638 |
47,861,876 |
7,049,293 |
|||||
|
Interest expense |
(735,927) |
(203,604) |
(29,988) |
(2,121,402) |
(2,941,850) |
(433,288) |
|||||
|
(Losses)/gains from investment in |
(21,796,444) |
2,905,553 |
427,942 |
54,040,607 |
(9,734,782) |
(1,433,778) |
|||||
|
Other income, net |
– |
517,981 |
76,290 |
2,690,742 |
517,981 |
76,290 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Income tax expense |
(46,994,932) |
(41,821,938) |
(6,159,706) |
(150,211,254) |
(72,398,501) |
(10,663,147) |
|||||
|
|
|
|
|
|
|
|
|||||
|
Share of gains in equity investees, net of tax |
1,067,166 |
170,211 |
25,070 |
779,369 |
1,118,542 |
164,743 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Net losses/(gains) attributable to non- |
939,576 |
(2,347,248) |
(345,713) |
3,271,890 |
10,563,167 |
1,555,787 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Class A ordinary share-basic and |
1.01 |
0.81 |
0.12 |
3.60 |
1.71 |
0.25 |
|||||
|
Class B ordinary share-basic and |
1.01 |
0.81 |
0.12 |
3.60 |
1.71 |
0.25 |
|||||
|
|
|||||||||||
|
Class A ordinary share-basic and |
1.01 |
0.81 |
0.12 |
3.60 |
1.71 |
0.25 |
|||||
|
Class B ordinary share-basic and |
1.01 |
0.81 |
0.12 |
3.60 |
1.71 |
0.25 |
|||||
|
|
|||||||||||
|
Class A ordinary share-basic and |
67,416,046 |
68,286,954 |
68,286,954 |
67,183,025 |
68,286,954 |
68,286,954 |
|||||
|
Class B ordinary share-basic and |
34,762,909 |
34,762,909 |
34,762,909 |
34,762,909 |
34,762,909 |
34,762,909 |
|||||
|
|
|||||||||||
|
Foreign currency translation |
19,606,912 |
(11,616,690) |
(1,710,954) |
15,824,409 |
(7,800,682) |
(1,148,916) |
|||||
|
Unrecognized gain on an available-for- |
– |
6,750,000 |
994,168 |
– |
6,750,000 |
994,168 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Comprehensive (losses)/income attributable to |
939,576 |
(2,347,248) |
(345,713) |
3,271,890 |
10,563,167 |
1,555,786 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
|
|||||||||||
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|||||||||||
|
Net income |
102,173,754 |
85,637,413 |
12,613,028 |
363,232,408 |
165,223,010 |
24,334,719 |
|||||
|
|
|||||||||||
|
Depreciation and amortization |
11,069,474 |
18,063,004 |
2,660,393 |
26,890,288 |
50,068,849 |
7,374,344 |
|||||
|
Share of gains in equity method investments |
(757,717) |
(170,211) |
(25,070) |
(469,920) |
(1,118,542) |
(164,743) |
|||||
|
Gains from disposal of a long-term investment |
(309,449) |
– |
– |
(309,449) |
– |
– |
|||||
|
Interest income |
(4,248,415) |
(2,217,211) |
(326,560) |
(14,662,224) |
(7,059,071) |
(1,039,689) |
|||||
|
Bad debt expense |
10,663,023 |
4,123,789 |
607,368 |
5,663,910 |
22,052,714 |
3,248,014 |
|||||
|
Losses/(gains) from investment in equity securities |
21,796,444 |
(2,905,553) |
(427,942) |
(54,040,607) |
9,734,782 |
1,433,778 |
|||||
|
Foreign exchange losses/(gains) |
614,390 |
(51,687) |
(7,613) |
85,951 |
(261,556) |
(38,523) |
|||||
|
Share-based compensation |
7,522,984 |
– |
– |
18,632,776 |
232,558 |
34,252 |
|||||
|
Income tax expenses related to dividend distribution |
4,140,689 |
6,486,874 |
955,413 |
11,940,633 |
14,576,403 |
2,146,872 |
|||||
|
Contingent consideration included in other current |
– |
2,046,066 |
301,353 |
– |
2,046,066 |
301,353 |
|||||
|
|
|||||||||||
|
Accounts receivable |
(6,591,451) |
(4,658,499) |
(686,123) |
(30,460,379) |
(43,356,590) |
(6,385,736) |
|||||
|
Prepaid rent |
(2,070,338) |
642,280 |
94,599 |
(1,358,757) |
10,564,530 |
1,555,988 |
|||||
|
Inventories |
(55,490) |
(1,274,556) |
(187,722) |
1,113,304 |
(1,511,933) |
(222,684) |
|||||
|
Amounts due from related parties |
(1,974,899) |
8,625,331 |
1,270,374 |
(1,996,450) |
10,135,528 |
1,492,802 |
|||||
|
Other current assets |
4,784,543 |
(18,021,028) |
(2,654,211) |
4,970,725 |
(3,193,950) |
(470,418) |
|||||
|
Other assets |
4,267,763 |
(8,142,812) |
|
(7,875,091) |
(17,157,334) |
(2,527,002) |
|||||
|
Accounts payable |
1,332,798 |
4,598,670 |
677,311 |
3,302,907 |
7,487,666 |
1,102,814 |
|||||
|
Amounts due to related parties |
(76,817) |
521,868 |
76,863 |
755,531 |
(1,526,433) |
(224,819) |
|||||
|
Salary and welfare payable |
(471,404) |
8,405,275 |
1,237,963 |
(5,521,054) |
9,778,026 |
1,440,148 |
|||||
|
Deferred revenue |
5,676,928 |
6,439,785 |
948,478 |
10,502,629 |
(32,603,970) |
(4,802,046) |
|||||
|
Advance from customers |
3,127,446 |
(339,768) |
(50,042) |
849,222 |
(8,097,688) |
(1,192,661) |
|||||
|
Accrued expenses and other current liabilities |
3,050,771 |
36,865,011 |
5,429,629 |
31,312,003 |
16,760,864 |
2,468,608 |
|||||
|
Income tax payable |
11,452,280 |
15,896,890 |
2,341,359 |
(15,880,832) |
(30,522,077) |
(4,495,416) |
|||||
|
Unrecognized tax benefits |
7,662,789 |
16,917,849 |
2,491,730 |
36,577,122 |
13,707,938 |
2,018,961 |
|||||
|
Deferred rent |
(681,471) |
632,148 |
93,106 |
(2,532,739) |
4,783,547 |
704,541 |
|||||
|
Other long-term liabilities |
8,456,070 |
424,893 |
62,580 |
12,049,539 |
1,603,859 |
236,223 |
|||||
|
Deferred taxes |
(2,297,390) |
(3,180,335) |
(468,413) |
2,700,045 |
(15,548,950) |
(2,290,113) |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Purchases of property and equipment |
(33,707,518) |
(26,948,009) |
(3,969,013) |
(47,218,828) |
(68,576,946) |
(10,100,293) |
|||||
|
Purchases of intangible assets |
– |
– |
– |
– |
(9,075) |
(1,337) |
|||||
|
Proceeds from disposal of property and equipment |
– |
60,262 |
8,876 |
1,300,000 |
71,387 |
10,514 |
|||||
|
Acquisitions, net of cash received |
(4,318,317) |
(6,660,000) |
(980,912) |
(248,978,924) |
(7,915,807) |
(1,165,872) |
|||||
|
Advances for acquisitions |
(11,244,749) |
– |
– |
(59,111,449) |
– |
– |
|||||
|
Repayment of advances for acquisitions |
– |
872,700 |
128,535 |
– |
36,312,700 |
5,348,283 |
|||||
|
Purchases of short-term investments |
(405,305,933) |
(610,180) |
(89,870) |
(617,825,906) |
(148,300,207) |
(21,842,260) |
|||||
|
Proceeds from short-term investments |
4,248,415 |
8,817,211 |
1,298,635 |
761,078,783 |
407,451,316 |
60,011,093 |
|||||
|
Increase of long-term time deposits |
(40,000,000) |
– |
– |
(500,000,000) |
(30,000,000) |
(4,418,522) |
|||||
|
Purchases of investments in equity securities |
(65,086,928) |
– |
– |
(89,123,279) |
– |
– |
|||||
|
Purchases of long term investments |
– |
– |
– |
(247,456,740) |
– |
– |
|||||
|
Proceeds from disposal of equity securities |
76,361,856 |
263,768 |
38,849 |
221,583,600 |
263,768 |
38,849 |
|||||
|
Dividends received from investment in equity |
– |
5,081,888 |
748,481 |
– |
7,622,306 |
1,122,644 |
|||||
|
Proceeds from disposal of equity method investments |
– |
– |
– |
– |
6,380,000 |
939,672 |
|||||
|
Loan to a related party |
(220,536,455) |
(119,400,000) |
(17,585,719) |
(337,516,205) |
(304,766,500) |
(44,887,254) |
|||||
|
Repayment from a related party |
220,300,000 |
111,100,000 |
16,363,261 |
337,279,750 |
297,256,179 |
43,781,103 |
|||||
|
Loan to third parties |
(104,000,000) |
(3,800,000) |
(559,680) |
(255,775,219) |
(7,000,000) |
(1,030,987) |
|||||
|
Repayment of loan from third parties |
– |
– |
– |
121,280,219 |
– |
– |
|||||
|
Loan to franchisees |
(34,861,152) |
(59,310,002) |
(8,735,419) |
(66,451,152) |
(205,761,780) |
(30,305,435) |
|||||
|
Repayment from franchisees |
3,187,806 |
35,586,060 |
5,241,260 |
10,455,159 |
70,801,095 |
10,427,874 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Distribution to the shareholders |
– |
– |
– |
(208,025,814) |
– |
– |
|||||
|
Proceeds from short-term borrowings |
– |
2,997,225 |
441,444 |
– |
21,437,555 |
3,157,411 |
|||||
|
Repayment of short-term borrowings |
– |
(10,000,000) |
(1,472,841) |
– |
(10,000,000) |
(1,472,841) |
|||||
|
Capital contribution from noncontrolling interest |
2,370,000 |
2,884,202 |
424,797 |
12,760,000 |
6,262,589 |
922,380 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Effect of exchange rate changes on cash and cash |
8,375,549 |
(1,474,708) |
(217,201) |
(64,704) |
(882,510) |
(129,980) |
|||||
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents and restricted cash at the |
866,946,688 |
474,778,636 |
69,927,335 |
1,267,325,785 |
342,160,223 |
50,394,754 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
|
|||||||||||
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Other operating income |
8,449,390 |
8,577,445 |
1,263,321 |
16,995,685 |
27,671,358 |
4,075,551 |
|||||
|
Gains from investment in equity securities |
– |
2,905,553 |
427,942 |
54,040,607 |
45,440,136 |
6,692,609 |
|||||
|
Share of gain in equity investees, net of tax |
1,067,166 |
170,211 |
25,070 |
779,369 |
1,118,542 |
164,743 |
|||||
|
Other income, net |
– |
517,981 |
76,290 |
2,690,742 |
517,981 |
76,290 |
|||||
|
|
|||||||||||
|
Other operating expenses |
53,736 |
434,792 |
64,038 |
161,710 |
1,633,064 |
240,524 |
|||||
|
Income tax expense |
46,994,932 |
41,821,938 |
6,159,706 |
150,211,254 |
72,398,501 |
10,663,147 |
|||||
|
Interest expense |
735,927 |
203,604 |
29,988 |
2,121,402 |
2,941,850 |
433,288 |
|||||
|
Share-based compensation |
7,643,465 |
– |
– |
19,819,047 |
232,558 |
34,252 |
|||||
|
Depreciation and amortization |
7,172,700 |
18,063,004 |
2,660,393 |
22,993,514 |
50,068,849 |
7,374,344 |
|||||
|
Losses from investment in equity securities |
21,796,444 |
– |
– |
– |
55,174,918 |
8,126,387 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Government subsidies (net of 25% tax) |
– |
1,005,153 |
|
5,048,981 |
14,217,238 |
2,093,973 |
|||||
|
Gains from investment in equity securities (net |
– |
2,179,165 |
320,956 |
40,530,455 |
34,080,102 |
5,019,457 |
|||||
|
Other income (net of 25% tax) |
– |
388,486 |
57,218 |
2,018,057 |
388,486 |
57,218 |
|||||
|
|
|||||||||||
|
Share-based compensation |
7,643,465 |
– |
– |
19,819,047 |
|
|
|||||
|
Losses from investments in equity securities (net |
16,347,333 |
– |
– |
– |
50,081,189 |
7,376,162 |
|||||
|
|
4,306,969 |
– |
– |
4,306,969 |
– |
– |
|||||
|
One-time fees and expense |
210,000 |
3,839,368 |
565,478 |
1,153,650 |
3,839,368 |
565,478 |
|||||
|
|
– |
– |
– |
– |
|
|
|||||
|
Income tax expenses related to dividend |
4,140,689 |
6,486,874 |
955,413 |
11,940,633 |
14,576,403 |
2,146,872 |
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Class A ordinary share-basic and diluted |
1.32 |
0.90 |
0.13 |
|
|
|
|||||
|
Class B ordinary share-basic and diluted |
1.32 |
0.90 |
0.13 |
|
|
|
|||||
Operational Data
|
|
|
|
|
|
|
|
|
Leased-and-owned hotels |
30 |
37 |
|
Franchised hotels |
3,072 |
4,158 |
|
|
|
|
|
Leased-and-owned hotels |
3,724 |
4,620 |
|
Franchised hotels |
241,981 |
300,505 |
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
Leased-and-owned hotels |
73.1% |
70.6% |
|
Franchised hotels |
86.1% |
79.3% |
|
Blended |
85.9% |
79.1% |
|
|
||
|
Leased-and-owned hotels |
224 |
171 |
|
Franchised hotels |
173 |
151 |
|
Blended |
174 |
151 |
|
|
||
|
Leased-and-owned hotels |
164 |
121 |
|
Franchised hotels |
149 |
120 |
|
Blended |
149 |
120 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Argyle |
21 |
20 |
4,739 |
4,042 |
|
|
|
|
|
|
|
GreenTree Eastern |
100 |
137 |
10,691 |
14,305 |
|
Deepsleep Hotel (无眠酒店) |
2 |
3 |
161 |
221 |
|
Gem |
22 |
33 |
2,002 |
3,016 |
|
Gya |
18 |
39 |
1,566 |
3,340 |
|
Vx |
19 |
32 |
1,544 |
2,563 |
|
Ausotel |
10 |
12 |
1,183 |
1,561 |
|
Urban Garden and others* |
/ |
81 |
/ |
5,297 |
|
|
|
|
|
|
|
GreenTree Inn |
1,986 |
2,113 |
169,889 |
178,179 |
|
GT Alliance |
297 |
321 |
22,951 |
24,560 |
|
GreenTree Apartment |
7 |
13 |
373 |
862 |
|
Vatica |
122 |
123 |
9,022 |
8,925 |
|
City 118 Selected and others* |
/ |
114 |
/ |
5,396 |
|
|
|
|
|
|
|
Shell |
498 |
593 |
21,584 |
25,791 |
|
City 118 and others* |
/ |
561 |
/ |
27,067 |
|
|
|
|
|
|
* 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: [email protected]
Mr. Nicky Zheng
Phone: +86-21-3617-4886 ext. 6708
E-mail: [email protected]
Christensen
In Shanghai
Ms. Constance Zhang
Phone: +86-138-1645-1798
E-mail: [email protected]
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: [email protected]
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]
|
1 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB6.7896 on September 30, 2020 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20201005/ |
|
2 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. |
View original content:http://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-third-quarter-2020-financial-results-301185175.html
SOURCE GreenTree Hospitality Group Ltd.
