.19
0.96
0.14
2.01
1.94
0.29
Class B ordinary share-basic and diluted
1.19
0.96
0.14
2.01
1.94
0.29
Net earnings per ADS
Class A ordinary share-basic and diluted
1.19
0.96
0.14
2.01
1.94
0.29
Class B ordinary share-basic and diluted
1.19
0.96
0.14
2.01
1.94
0.29
Weighted average shares outstanding
Class A ordinary share-basic and diluted
48,635,252
66,789,299
66,789,299
48,635,252
58,866,740
58,866,740
Class B ordinary share-basic and diluted
42,716,957
34,762,909
34,762,909
42,716,957
37,839,060
37,839,060
Other comprehensive income, net of tax
-Foreign currency translation adjustments
(827,530)
1,213,623
183,407
(1,979,774)
1,043,741
157,734
Comprehensive income, net of tax
107,860,684
98,452,651
14,878,519
181,216,471
188,452,111
28,479,564
Comprehensive loss (gain) attributable to
noncontrolling interests
7,131
(3,152)
(476)
35,249
26,367
3,985
Comprehensive income attributable to
ordinary shareholders
107,867,815
98,449,499
14,878,043
181,251,720
188,478,478
28,483,549
GreenTree Hospitality Group Ltd. |
||||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||||||||||||
Quarter Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||
2017 |
2018 |
2018 |
2017 |
2018 |
2018 |
|||||||||||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|||||||||||
Operation activities: |
||||||||||||||||
Net income |
108,688,214 |
97,239,028 |
14,695,112 |
183,196,245 |
187,408,370 |
28,321,830 |
||||||||||
Adjustments to reconcile net income to net cash |
||||||||||||||||
Depreciation and amortization |
6,115,165 |
4,557,247 |
688,708 |
12,674,080 |
9,951,749 |
1,503,944 |
||||||||||
Share of loss (gain) in equity method |
(52,078) |
182,988 |
27,654 |
513,447 |
1,090,024 |
164,728 |
||||||||||
Interest income |
(2,788,706) |
(234,004) |
(35,364) |
(5,838,706) |
(4,937,866) |
(746,228) |
||||||||||
Bad debt expense |
581,251 |
379,445 |
57,343 |
1,154,523 |
698,703 |
105,591 |
||||||||||
(Gains) losses from trading securities |
(24,385,333) |
25,862,935 |
3,908,500 |
(35,967,385) |
31,036,562 |
4,690,357 |
||||||||||
Loss on disposal of property and |
(695,230) |
- |
- |
157,506 |
- |
- |
||||||||||
Foreign exchange (gain) loss |
(374,755) |
(1,340,059) |
(202,515) |
(1,298,256) |
(614,853) |
(92,919) |
||||||||||
Share-based compensation |
- |
3,586,930 |
542,070 |
- |
3,746,769 |
566,225 |
||||||||||
Changes in operating assets and |
||||||||||||||||
Restricted cash |
- |
- |
- |
7,200,000 |
- |
- |
||||||||||
Accounts receivable |
(15,539,614) |
(8,246,047) |
(1,246,172) |
(26,245,214) |
(19,468,637) |
(2,942,171) |
||||||||||
Prepaid rent |
2,630,635 |
(1,455,073) |
(219,896) |
6,598,997 |
131,304 |
19,843 |
||||||||||
Inventories |
(206,252) |
186,242 |
28,146 |
11,224 |
961,422 |
145,294 |
||||||||||
Amounts due from related parties |
1,181,694 |
1,938,481 |
292,950 |
3,435,718 |
1,522,123 |
230,029 |
||||||||||
Other current assets |
970,740 |
(19,562,202) |
(2,956,310) |
(1,819,059) |
(26,365,951) |
(3,984,518) |
||||||||||
Other assets |
- |
- |
- |
1,728,263 |
- |
- |
||||||||||
Accounts payable |
800,856 |
(4,359,732) |
(658,858) |
2,115,442 |
337,208 |
50,960 |
||||||||||
Amounts due to related parties |
(157,557) |
154,006 |
23,274 |
2,538,414 |
480,702 |
72,645 |
||||||||||
Salary and welfare payable |
2,140,122 |
27,794 |
4,200 |
(678,679) |
(1,651,291) |
(249,549) |
||||||||||
Deferred revenue |
(2,225,451) |
21,657,037 |
3,272,889 |
14,667,526 |
36,565,954 |
5,525,979 |
||||||||||
Advance from customers |
8,312,326 |
8,017,444 |
1,211,625 |
11,776,047 |
(471,039) |
(71,185) |
||||||||||
Accrued expenses and other current |
3,252,222 |
(31,297,653) |
(4,729,814) |
15,533,168 |
(27,214,366) |
(4,112,733) |
||||||||||
Income tax payable |
(42,196,868) |
(56,273,754) |
(8,504,293) |
(27,193,374) |
(36,539,914) |
(5,522,043) |
||||||||||
Unrecognized tax benefits |
15,194,271 |
43,190,003 |
6,527,029 |
14,744,258 |
46,941,155 |
7,093,917 |
||||||||||
Deferred rent |
(5,683,343) |
(1,028,699) |
(155,461) |
(10,891,391) |
(2,043,147) |
(308,768) |
||||||||||
Other long-term liabilities |
8,865,201 |
7,701,591 |
1,163,892 |
(172,893) |
9,474,980 |
1,431,893 |
||||||||||
Deferred taxes |
5,754,724 |
(7,506,008) |
(1,134,335) |
5,790,416 |
(11,620,992) |
(1,756,206) |
||||||||||
Net cash provided by operating |
70,182,234 |
83,377,940 |
12,600,374 |
173,730,317 |
199,418,969 |
30,136,915 |
||||||||||
Investing activities: |
||||||||||||||||
Purchases of property and equipment |
(2,350,676) |
(54,676,146) |
(8,262,856) |
(7,110,402) |
(113,008,255) |
(17,078,215) |
||||||||||
Purchases of intangible assets |
- |
(900,000) |
(136,011) |
- |
(900,000) |
(136,011) |
||||||||||
Purchases of short-term investments |
- |
(275,105,052) |
(41,574,867) |
- |
(791,666,641) |
(119,639,516) |
||||||||||
Proceeds from short-term investments |
- |
234,004 |
35,364 |
- |
745,234,004 |
112,622,449 |
||||||||||
Proceeds from disposal of property and equipment |
- |
- |
- |
1,600,000 |
- |
- |
||||||||||
Purchases of trading securities |
(5,886,700) |
- |
- |
(37,029,398) |
(4,795,838) |
(724,764) |
||||||||||
Proceeds from disposal of trading |
10,667,510 |
7,604,063 |
1,149,153 |
31,396,866 |
18,871,973 |
2,852,001 |
||||||||||
Loan to a related party |
(3,100,000) |
- |
- |
(4,100,000) |
- |
- |
||||||||||
Loan to franchisees |
- |
(17,800,000) |
(2,690,000) |
(3,500,000) |
(37,800,000) |
(5,712,472) |
||||||||||
Repayment from a franchisee |
- |
3,340,000 |
504,753 |
- |
6,840,000 |
1,033,685 |
||||||||||
Net cash (used in) provided by |
(669,866) |
(337,303,131) |
(50,974,464) |
(18,742,934) |
(177,224,757) |
(26,782,843) |
||||||||||
Financing activities: |
||||||||||||||||
Distribution to the shareholders |
(9,651,158) |
(160,840,918) |
(24,306,859) |
(9,651,158) |
(200,532,021) |
(30,305,123) |
||||||||||
Income tax paid related to the above |
- |
- |
- |
- |
(3,000,000) |
(453,372) |
||||||||||
Proceeds from short-term borrowings |
60,000,000 |
- |
- |
60,000,000 |
- |
- |
||||||||||
Changes in restricted cash |
90,000,000 |
- |
- |
(785,000,000) |
- |
- |
||||||||||
Proceeds from IPO, net of capitalized |
- |
- |
- |
833,202,245 |
125,916,526 |
|||||||||||
Payment for initial public offering |
- |
(25,087,646) |
(3,791,336) |
- |
(25,087,646) |
(3,791,336) |
||||||||||
Net cash provided by (used in) |
140,348,842 |
(185,928,564) |
(28,098,195) |
(734,651,158) |
604,582,578 |
91,366,695 |
||||||||||
Effect of exchange rate changes on cash |
(452,775) |
1,509,941 |
228,188 |
(681,516) |
614,853 |
92,919 |
||||||||||
Net increase (decrease) in cash and |
209,408,435 |
(438,343,814) |
(66,244,097) |
(580,345,291) |
627,391,643 |
94,813,686 |
||||||||||
Cash and cash equivalents at the |
107,029,209 |
1,227,699,122 |
185,534,316 |
896,782,935 |
161,963,665 |
24,476,533 |
||||||||||
Cash and cash equivalents at the |
316,437,644 |
789,355,308 |
119,290,219 |
316,437,644 |
789,355,308 |
119,290,219 |
||||||||||
Supplemental disclosure of cash |
||||||||||||||||
Income taxes paid |
(55,742,089) |
(48,194,805) |
(7,283,373) |
(65,025,390) |
(62,794,370) |
(9,489,712) |
||||||||||
Interest paid |
(261,294) |
- |
- |
(261,294) |
- |
- |
GreenTree Hospitality Group Ltd. |
|||||||
Unaudited Reconciliation of GAAP and Non-GAAP Results |
|||||||
Quarter Ended |
Six Months Ended |
||||||
June 30, 2017 |
June 30, 2018 |
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2018 |
||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||
Net income |
108,688,214 |
97,239,028 |
14,695,112 |
183,196,245 |
187,408,370 |
28,321,830 |
|
Deduct: |
|||||||
Other operating income |
4,722,477 |
12,242,088 |
1,850,069 |
5,066,976 |
26,067,489 |
3,939,413 |
|
Interest income and other, net |
5,935,863 |
11,420,031 |
1,725,836 |
12,670,874 |
16,123,893 |
2,436,701 |
|
Gains from trading securities |
24,385,333 |
- |
- |
35,967,385 |
- |
- |
|
Share of gain in equity investees, net of tax |
52,078 |
- |
- |
52,078 |
- |
- |
|
Add: |
|||||||
Other operating expenses |
295,431 |
35,330 |
5,339 |
1,148,166 |
178,592 |
26,989 |
|
Income tax expense |
34,494,218 |
31,356,198 |
4,738,662 |
58,331,623 |
61,574,619 |
9,305,378 |
|
Share of loss in equity investees, net of tax |
- |
182,988 |
27,654 |
565,525 |
1,090,024 |
164,728 |
|
Interest expense |
261,294 |
- |
- |
261,294 |
- |
- |
|
Share-based compensation |
- |
3,586,930 |
542,070 |
- |
3,746,769 |
566,225 |
|
Depreciation and amortization |
6,115,165 |
4,557,247 |
688,708 |
12,674,080 |
9,951,749 |
1,503,944 |
|
Losses from trading securities |
- |
25,862,935 |
3,908,500 |
- |
31,036,562 |
4,690,357 |
|
Other expense, net |
28,852 |
- |
- |
69,818 |
- |
- |
|
Adjusted EBITDA (Non-GAAP) |
114,787,423 |
139,158,537 |
21,030,140 |
202,489,438 |
252,795,303 |
38,203,337 |
|
Quarter Ended |
Six Months Ended |
||||||
June 30,2017 |
June 30,2018 |
June 30,2018 |
June 30,2017 |
June 30,2018 |
June 30,2018 |
||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||
Net income |
108,688,214 |
97,239,028 |
14,695,112 |
183,196,245 |
187,408,370 |
28,321,830 |
|
Deduct: |
|||||||
Government subsidies (net of 25% tax) |
1,493,208 |
76,774 |
11,602 |
1,493,246 |
10,312,776 |
1,558,504 |
|
Gains from trading securities (net of 25% tax) |
18,289,000 |
- |
- |
26,975,539 |
- |
- |
|
Reimbursement related to the ADS program |
- |
9,271,648 |
1,401,165 |
- |
9,271,648 |
1,401,165 |
|
Add: |
|||||||
Share-based compensation |
- |
3,586,930 |
542,070 |
- |
3,746,769 |
566,225 |
|
Losses from trading securities (net of 25% tax) |
- |
19,397,201 |
2,931,375 |
- |
23,277,421 |
3,517,768 |
|
Other expense (net of 25% tax) |
21,639 |
- |
- |
52,364 |
- |
- |
|
Core net income (Non-GAAP) |
88,927,645 |
110,874,737 |
16,755,790 |
154,779,824 |
194,848,136 |
29,446,154 |
|
Core net income per ADS (Non-GAAP) |
|||||||
Class A ordinary share-basic and diluted |
0.97 |
1.09 |
0.16 |
1.69 |
2.01 |
0.30 |
|
Class B ordinary share-basic and diluted |
0.97 |
1.09 |
0.16 |
1.69 |
2.01 |
0.30 |
Operational Data
As of June 30,2017 |
As of June 30,2018 |
|
Total hotels in operation: |
2,035 |
2,434 |
Leased and owned hotels |
27 |
26 |
Franchised hotels |
2,008 |
2,408 |
Total hotel rooms in operation |
173,836 |
201,275 |
Leased and owned hotels |
3,351 |
3,358 |
Franchised hotels |
170,485 |
197,917 |
Number of cities |
242 |
267 |
Quarter Ended |
||
June 30,2017 |
June 30,2018 |
|
Occupancy rate (as a percentage) |
||
Leased and owned hotels |
72.1% |
70.7% |
Franchised hotels |
83.5% |
82.9% |
Blended |
83.2% |
82.6% |
Average daily room rate (in RMB) |
||
Leased and owned hotels |
182 |
201 |
Franchised hotels |
155 |
163 |
Blended |
156 |
164 |
RevPAR (in RMB) |
||
Leased and owned hotels |
131 |
142 |
Franchised hotels |
129 |
135 |
Blended |
130 |
136 |
Number of Hotels in Operation |
Number of Hotel Rooms in Operation |
||||||
As of |
As of |
As of |
As of |
||||
Economy hotels |
172 |
312 |
9,964 |
16,850 |
|||
Vatica |
83 |
111 |
6,224 |
8,295 |
|||
Shell |
89 |
201 |
3,740 |
8,555 |
|||
Mid-scale |
1,829 |
2,062 |
159,837 |
177,665 |
|||
GreenTree Inn |
1,604 |
1,785 |
141,553 |
155,470 |
|||
GreenTree Alliance |
225 |
277 |
18,284 |
22,195 |
|||
Business to Mid-to-up-scale |
34 |
60 |
4,035 |
6,760 |
|||
GreenTree Eastern |
34 |
59 |
4,035 |
6,650 |
|||
VX |
0 |
1 |
0 |
110 |
|||
Total |
2,035 |
2,434 |
173,836 |
201,275 |
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-21-3617-4886 ext. 7999
E-mail: ir@998.com
Mr. Nicky Zheng
Phone: +86-21-3617-4886 ext. 6708
E-mail: ir@998.com
Christensen
In Shanghai
Ms. Constance Zhang
Phone: +86-138-1645-1798
E-mail: czhang@christensenIR.com
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: khui@christensenIR.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
View original content:http://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-second-quarter-2018-financial-results-300701477.html