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. As of September 30, 2018, the Company had a total balance of cash and cash equivalents, restricted cash, short term investments and securities of RMB1,996.3 million (US$290.7 million)[1], as compared to RMB1,898.8 million as of June 30, 2018, primarily due to net operating cash inflow, offset by fixed asset and other investments.

Guidance
For the full year 2018, the Company reaffirms total revenue growth guidance of 20-25% from 2017.

The guidance set forth above reflects the Company's current and preliminary view based on our estimates, may not be indicative of our financial results for future interim periods and the full year ended December 31, 2018 and is subject to change.

Conference Call

GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on November 19, 2018 (9:00 PM Beijing/Hong Kong Time on November 19, 2018).

Dial-in numbers for the live conference call are as follows:

International	1-412-902-4272
China	4001-201203
US	1-888-346-8982
Hong Kong	800-905945 or 852-3018-4992

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 November 26, 2018.

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:	10125987

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 trading 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") (GHG) is a leading franchised hotel operator in China. As of December 31, 2017, GreenTree had the highest proportion of franchised-and-managed hotels among the top four economy to mid-scale hotel networks in China. In 2017, GreenTree was the fourth largest economy to mid-scale hotel group in China in terms of number of hotel rooms according to the China Hospitality Association. The Company 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, the consistent quality of its services, signature hotel designs, broad geographic coverage and convenient locations. GreenTree has positioned its brands to appeal to value- and quality-conscious business and leisure travelers.

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.

Notes:

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.8680 on September 28, 2018 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20181001.

[2] "Tier 1 cities" refers to the term used by the National Bureau of Statistics of China and refer to Beijing, Shanghai, Shenzhen and Guangzhou.

[3] "Tier 2 cities" refers to the 32 major cities, other than Tier 1 cities, as categorized by the National Bureau of Statistics of China, 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.

[4] Wumian Hotel's English trademark is currently being registered.

-- Financial Tables and Operational Data Follow --

GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Balance Sheets

	December 31,	September 30,	September 30,
	2017	2018	2018
	RMB	RMB	USD
ASSETS
Current assets:
Cash and cash equivalents	161,963,665	839,157,006	122,183,606
Short-term investment	781,850,000	894,400,083	130,227,152
Trading securities	307,754,960	259,758,591	37,821,577
Accounts receivable, net of allowance for doubtful accounts	53,882,894	65,660,503	9,560,353
Amounts due from related parties	3,248,692	251,999	36,692
Prepaid rent	4,292,472	4,141,616	603,031
Inventories	2,355,154	1,434,132	208,814
Other current assets	127,269,801	66,495,332	9,681,905
Loans receivable, net	6,600,000	196,608,587	28,626,760
Deferred tax assets	36,207,884	28,222,162	4,109,226
Total current assets	1,485,425,522	2,356,130,011	343,059,116

Non-current assets:
Amounts due from a related party	2,600,000	-	-
Restricted cash	3,000,000	3,000,000	436,808
Loan receivable, net	-	26,900,000	3,916,715
Property and equipment, net	96,669,251	221,951,940	32,316,823
Intangible assets, net	3,727,383	16,100,662	2,344,301
Goodwill	2,959,183	4,314,981	628,273
Long-term investments	122,508,832	119,571,686	17,409,972
Other assets	5,741,301	11,741,301	1,709,568
Deferred tax assets	33,351,457	34,618,065	5,040,487
TOTAL ASSETS	1,755,982,929	2,794,328,646	406,862,063

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	7,293,341	8,788,268	1,279,596
Advance from customers	33,662,363	36,302,861	5,285,798
Amounts due to related parties	473,018	1,102,375	160,509
Salary and welfare payable	44,577,683	39,656,469	5,774,093
Deferred rent	2,916,205	4,355,231	634,134
Deferred revenue	109,101,986	142,546,431	20,755,159
Accrued expenses and other current liabilities	293,741,951	268,468,295	39,089,734
Income tax payable	103,830,578	95,764,800	13,943,623
Dividends payable	39,691,103	-	-
Deferred tax liabilities	27,745,951	17,380,672	2,530,674
Total current liabilities	663,034,179	614,365,402	89,453,320

Deferred rent	23,050,635	26,446,537	3,850,690
Deferred revenue	144,258,584	163,575,878	23,817,105
Other long-term liabilities	73,937,277	91,796,257	13,365,792
Deferred tax liabilities	5,797,260	7,073,087	1,029,861
Unrecognized tax benefits	113,299,633	157,713,855	22,963,578
Total liabilities	1,023,377,568	1,060,971,016	154,480,346

Shareholders' equity:
Class A ordinary shares	160,189,926	217,421,867	31,657,232
Class B ordinary shares	140,696,841	115,534,210	16,822,104
Additional paid-in capital	212,309,734	994,486,411	144,800,001
Retained earnings	223,134,889	402,465,307	58,600,074
Accumulated other comprehensive loss	(4,086,149)	(2,444,241)	(355,888)
Total GreenTree Hospitality Group Ltd. shareholders' equity	732,245,241	1,727,463,554	251,523,523

Non-controlling interests	360,120	5,894,076	858,194
Total shareholders' equity	732,605,361	1,733,357,630	252,381,717

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,755,982,929	2,794,328,646	406,862,063

GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income

	Quarter Ended			Nine Months Ended
	September 30, 2017	September 30, 2018	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2018
	RMB	RMB	USD	RMB	RMB	USD
Revenues
Leased-and-operated hotels	47,930,487	57,384,611	8,355,360	136,757,301	151,300,547	22,029,783
Franchised-and-managed hotels	149,391,851	179,722,463	26,168,093	395,890,485	489,101,041	71,214,479
Membership fees	13,799,619	19,718,205	2,871,026	38,686,758	54,721,402	7,967,589
Total revenues	211,121,957	256,825,279	37,394,479	571,334,544	695,122,990	101,211,851

Operating costs and expenses
Hotel operating costs	(59,839,669)	(76,099,402)	(11,080,286)	(174,600,016)	(206,844,187)	(30,117,092)
Selling and marketing expenses	(10,280,954)	(11,319,534)	(1,648,156)	(29,336,600)	(34,223,888)	(4,983,094)
General and administrative expenses	(21,337,109)	(24,229,964)	(3,527,951)	(57,918,345)	(69,781,751)	(10,160,417)
Other operating expenses	(140,447)	(99,935)	(14,551)	(1,288,613)	(278,527)	(40,554)
Total operating costs and expenses	(91,598,179)	(111,748,835)	(16,270,944)	(263,143,574)	(311,128,353)	(45,301,157)

Other operating income	9,070,947	1,865,788	271,664	14,137,923	27,933,277	4,067,163
Income from operations	128,594,725	146,942,232	21,395,199	322,328,893	411,927,914	59,977,857

Interest income and other, net	7,552,058	14,991,069	2,182,742	20,222,932	31,114,962	4,530,425
Interest expense	(666,665)	-	-	(927,959)	-	-
Gains (losses) from trading securities	13,008,183	3,091,278	450,099	48,975,568	(27,945,284)	(4,068,911)
Other (income) expense, net	(376,223)	36,723,048	5,346,978	(446,041)	36,723,048	5,346,978
Income before income taxes	148,112,078	201,747,627	29,375,018	390,153,393	451,820,640	65,786,349

Income tax expense	(35,694,806)	(49,511,158)	(7,208,963)	(94,026,429)	(111,085,777)	(16,174,400)
Income before share of loss in equity investees	112,417,272	152,236,469	22,166,055	296,126,964	340,734,863	49,611,949

Share of (losses) gains in equity investees, net of tax	(637,240)	141,666	20,627	(1,150,687)	(948,358)	(138,084)
Net income	111,780,032	152,378,135	22,186,682	294,976,277	339,786,505	49,473,865
Net loss attributable to non-controlling interests	12,655	358,464	52,193	47,904	384,831	56,032
Net income attributable to ordinary shareholders	111,792,687	152,736,599	22,238,875	295,024,181	340,171,336	49,529,897

Net earnings per share
Class A ordinary share-basic and diluted	1.22	1.50	0.22	3.23	3.46	0.50
Class B ordinary share-basic and diluted	1.22	1.50	0.22	3.23	3.46	0.50

Net earnings per ADS
Class A ordinary share-basic and diluted	1.22	1.50	0.22	3.23	3.46	0.50
Class B ordinary share-basic and diluted	1.22	1.50	0.22	3.23	3.46	0.50

Weighted average shares outstanding
Class A ordinary share-basic and diluted	48,635,252	66,789,299	66,789,299	48,635,252	61,536,613	61,536,613
Class B ordinary share-basic and diluted	42,716,957	34,762,909	34,762,909	42,716,957	36,802,409	36,802,409

Other comprehensive income, net of tax
Foreign currency translation adjustments	(512,909)	(2,685,649)	(391,038)	(2,492,683)	(1,641,908)	(239,066)
Comprehensive income, net of tax	111,267,123	149,692,486	21,795,644	292,483,594	338,144,597	49,234,799

Comprehensive loss attributable to non-controlling interests	12,655	358,464	52,193	47,904	384,831	56,033
Comprehensive income attributable to ordinary shareholders	111,279,778	150,050,950	21,847,837	292,531,498	338,529,428	49,290,832

GreenTree Hospitality Group Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows

		Quarter Ended				Nine Months Ended
		September 30,		September 30,	September 30,	September 30,	September 30,	September 30,
		2017		2018	2018	2017	2018	2018
		RMB		RMB	USD	RMB	RMB	USD

Operation activities:
	Net income	111,780,032		152,378,135	22,186,682	294,976,277	339,786,505	49,473,865

	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization		6,266,013	7,453,263	1,085,216	18,940,093	17,405,012	2,534,218
	Share of loss (gain) in equity method investments		637,240	(141,666)	(20,627)	1,150,687	948,358	138,084
	Gains from disposal of a long-term investment		-	(36,723,048)	(5,346,978)	-	(36,723,048)	(5,346,978)
	Interest income		(3,050,000)	(14,991,069)	(2,182,742)	(9,150,000)	(19,928,935)	(2,901,709)
	Interest expense		666,665	-	-	927,959	-	-
	Bad debt expense		784,648	623,470	90,779	1,939,171	1,322,173	192,512
	(Gains) losses from trading securities		(13,008,183)	(3,091,278)	(450,099)	(48,975,568)	27,945,284	4,068,911
	Loss on disposal of property and equipment		-	-	-	157,506	-	-
	Foreign exchange loss (gain)		415,990	(4,904,076)	(714,047)	(882,266)	(5,518,929)	(803,571)
	Share-based compensation		-	3,821,789	556,463	-	7,568,558	1,102,003

	Changes in operating assets and liabilities:
	Restricted cash		-	-	-	7,200,000	-	-
	Accounts receivable		6,591,491	7,038,795	1,024,868	(19,653,723)	(12,429,842)	(1,809,820)
	Prepaid rent		3,116,843	19,552	2,847	9,715,840	150,856	21,965
	Inventories		(113,463)	265,681	38,684	(102,239)	1,227,103	178,670
	Amounts due from related parties		3,923,740	148,694	21,650	7,359,458	1,670,817	243,276
	Other current assets		(1,967,677)	(693,699)	(101,005)	(3,786,736)	(27,059,650)	(3,939,961)
	Other assets		-	-	-	1,728,263	-	-
	Accounts payable		1,113,255	(68,022)	(9,904)	3,228,697	269,186	39,194
	Amounts due to related parties		258,363	148,655	21,645	2,796,777	629,357	91,636
	Salary and welfare payable		2,907,810	(3,379,410)	(492,052)	2,229,131	(5,030,701)	(732,484)
	Deferred revenue		23,131,108	16,195,785	2,358,152	37,798,634	52,761,739	7,682,257
	Advance from customers		8,273,576	3,111,537	453,048	20,049,623	2,640,498	384,464
	Accrued expenses and other current liabilities		15,517,019	24,458,339	3,561,203	31,050,187	(2,756,027)	(401,285)
	Income tax payable		25,374,238	31,644,131	4,607,474	(1,819,136)	(4,895,783)	(712,840)
	Unrecognized tax benefits		(12,941,734)	(2,526,933)	(367,929)	1,802,524	44,414,222	6,466,835
	Deferred rent		(8,268,696)	6,878,075	1,001,467	(19,160,087)	4,834,928	703,979
	Other long-term liabilities		3,435,645	8,384,000	1,220,734	3,262,752	17,858,980	2,600,317
	Deferred taxes		(1,198,750)	6,836,404	995,400	4,591,666	(4,784,588)	(696,649)
	Net cash provided by operating activities		173,645,173	202,887,104	29,540,929	347,375,490	402,306,073	58,576,889

Investing activities:
	Purchases of property and equipment		(5,877,080)	(1,547,609)	(225,336)	(12,987,482)	(114,555,864)	(16,679,653)
	Purchases of intangible assets		(15,386)	(1,950,000)	(283,925)	(15,386)	(2,850,000)	(414,968)
	Increase in long-term investments		(100,701,474)	-	-	(100,701,474)	-	-
	Acquisitions, net of cash received		-	(13,698,384)	(1,994,523)	-	(13,698,384)	(1,994,523)
	Proceeds from disposal of a long-term investment		-	89,182,803	12,985,265	-	89,182,803	12,985,265
	Prepayments for investments

GreenTree Hospitality Group Ltd. Reports Third Quarter 2018 Financial Results

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