GreenTree Hospitality Group Ltd. Reports Third Quarter 2018 Financial Results

PR Newswire - finance.yahoo.com Posted 6 years ago

. 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

 

-

 

(6,000,000)

 

(873,617)

 

-

(6,000,000)

(873,617)

 

Purchases of short-term investments

 

-

 

(92,693,808)

 

(13,496,478)

 

-

(884,360,449)

(128,765,354)

 

Proceeds from short-term investments

 

-

 

50,701,216

 

7,382,239

 

-

795,935,220

115,890,393

 

Proceeds from disposal of property and equipment

 

300,000

 

-

 

-

 

1,900,000

-

-

 

Purchases of trading securities

 

(2,943,000)

 

(40,879)

 

(5,952)

 

(39,972,398)

(4,836,717)

(704,240)

 

Proceeds from disposal of trading securities

 

7,355,677

 

6,015,829

 

875,922

 

38,752,543

24,887,802

3,623,734

 

Loan to related parties

 

-

 

-

 

-

 

(1,000,000)

-

-

 

Loan to third parties

 

-

 

(156,819,164)

 

(22,833,309)

 

-

(166,819,164)

(24,289,337)

 

Loan to franchisees

 

-

 

(35,629,423)

 

(5,187,744)

 

(6,600,000)

(63,429,423)

(9,235,501)

 

Repayment from franchisees

 

-

 

4,489,937

 

653,747

 

-

11,329,937

1,649,671

 

Net cash (used in) provided by
investing activities

 

(101,881,263)

 

(157,989,482)

 

(23,003,711)

 

(120,624,197)

 

(335,214,239)

 

(48,808,130)

                       

Financing activities:

                   
 

Distribution to the shareholders

 

-

 

-

 

-

 

(9,651,158)

(200,532,021)

(29,198,023)

 

Income tax paid related to the above distribution

 

-

 

-

 

-

 

-

(3,000,000)

(436,808)

 

Proceeds from short-term borrowings

 

-

 

-

 

-

 

60,000,000

-

-

 

Changes in restricted cash

 

(36,850,000)

 

-

 

-

 

(821,850,000)

-

-

 

Proceeds from IPO, net of capitalized expenses

 

-

 

-

 

-

 

-

833,202,245

121,316,576

 

Payment for initial public offering costs

 

-

 

-

 

-

 

-

(25,087,646)

(3,652,831)

 

Net cash provided by (used in)
financing activities

 

(36,850,000)

 

-

 

-

 

(771,501,158)

 

604,582,578

 

88,028,914

 

Effect of exchange rate changes on cash and cash equivalents

(928,899)

 

4,904,076

 

714,049

 

(1,610,415)

5,518,929

803,571

                       
 

Net increase (decrease) in cash and
cash equivalents

 

33,985,011

 

49,801,698

 

7,251,267

 

(546,360,280)

 

677,193,341

 

98,601,244

 

Cash and cash equivalents at the beginning of the period

 

316,437,644

 

789,355,308

 

114,932,339

 

896,782,935

161,963,665

23,582,362

 

Cash and cash equivalents at the
end of the period

 

350,422,655

 

839,157,006

 

122,183,606

 

350,422,655

 

839,157,006

 

122,183,606

                       
 

Supplemental disclosure of cash
flow information:

                   
 

Income taxes paid

 

(24,732,129)

 

(13,557,556)

 

(1,974,018)

 

(89,757,519)

(76,351,926)

(11,117,054)

 

Interest paid

 

(666,665)

 

-

 

-

 

(927,959)

-

-

                       
 

Supplemental schedule of non-cash
investing and financing activities

                   
 

Acquisition of investment through
conversion of loan

 

-

 

(8,225,876)

 

(1,197,711)

 

-

(8,225,876)

(1,197,711)

                       

 

 

GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results


 
       
 

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

               

 Net income 

111,780,032

152,378,135

22,186,682

 

294,976,277

339,786,505

49,473,865

               

 Deduct:

             

 Other operating income

9,070,947

1,865,788

271,664

 

14,137,923

27,933,277

4,067,163

 Interest income and other, net

7,552,058

14,991,069

2,182,742

 

20,222,932

31,114,962

4,530,425

 Gains from trading securities

13,008,183

3,091,278

450,099

 

48,975,568

-

-

Share of gain in equity investees, net of tax

-

141,666

20,627

 

-

-

-

Other income, net

-

36,723,048

5,346,978

 

-

36,723,048

5,346,978

               

 Add:

             

  Other operating expenses

140,447

99,935

14,551

 

1,288,613

278,527

40,554

  Income tax expense

35,694,806

49,511,158

7,208,963

 

94,026,429

111,085,777

16,174,400

  Share of loss in equity investees, net of tax

637,240

-

-

 

1,150,687

948,358

138,084

  Interest expense

666,665

-

-

 

927,959

-

-

  Share-based compensation

-

3,821,789

556,463

 

-

7,568,558

1,102,003

 Depreciation and amortization

6,266,013

7,453,263

1,085,216

 

18,940,093

17,405,012

2,534,218

 Losses from trading securities

-

-

-

 

-

27,945,284

4,068,911

 Other expense, net

376,223

-

-

 

446,041

-

-

               

 Adjusted EBITDA (Non-GAAP)

125,930,238

156,451,431

22,779,765

 

328,419,676

409,246,734

59,587,469

               
 

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

Net income

111,780,032

152,378,135

22,186,682

 

 

294,976,277

 

339,786,505

 

49,473,865

               

Deduct:

             

          Government subsidies (net of 25% tax)

6,172,500

1,049,804

152,854

 

7,665,746

11,362,580

1,654,423

          Gains from trading securities (net of 25% tax)

9,756,137

2,318,459

337,574

 

36,731,676

-

-

          Reimbursement related to the ADS program

-

-

-

 

-

9,271,648

1,349,978

          Other income, net (net of 25% tax)

-

27,542,286

4,010,234

 

-

27,542,286

4,010,234

Add:

             

          Share-based compensation

-

3,821,789

556,463

 

-

7,568,558

1,102,003

          Losses from trading securities (net of 25% tax)

-

-

-

 

-

20,958,962

3,051,683

          Other expense (net of 25% tax)

282,167

-

-

 

334,531

-

-

Core net income (Non-GAAP)

96,133,562

125,289,375

18,242,483

 

250,913,386

320,137,511

46,612,916

Core net income per ADS (Non-GAAP)

             

Class A ordinary share-basic and diluted

1.05

1.23

0.18

 

2.75

3.26

0.47

Class B ordinary share-basic and diluted

1.05

1.23

0.18

 

2.75

3.26

0.47

 

 

Operational Data

 

As of September 30, 2017

As of September 30,2 018

Total hotels in operation:

2,119

2,558

  Leased and owned hotels

27

30

  Franchised hotels

2,092

2,528

Total hotel rooms in operation

178,535

209,463

  Leased and owned hotels

3,396

3,857

  Franchised hotels

175,139

205,606

Number of cities

244

278


 

Quarter Ended

 

September 30, 2017

September 30, 2018

Occupancy rate (as a percentage)

   

  Leased and owned hotels

76.9%

72.6%

  Franchised hotels

87.7%

87.5%

  Blended

87.4%

87.2%

Average daily room rate  (in RMB)

   

  Leased and owned hotels

189

210

  Franchised hotels

159

166

  Blended

160

167

RevPAR  (in RMB)

   

  Leased and owned hotels

145

152

  Franchised hotels

139

145

  Blended

140

146

 

 

 

Number of Hotels in Operation

Number of Hotel Rooms in Operation

 

As of September 30, 2017

 

As of September 30, 2018

As of September 30, 2017

 

As of September 30, 2018

Economy hotels

201

 

358

11,307

 

19,160

Vatica 

92

 

117

6,822

 

8,698

Shell

109

 

241

4,485

 

10,462

Mid-scale

1,878

 

2,119

162,490

 

181,434

GreenTree Inn

1,655

 

1,824

144,639

 

158,174

GT Alliance

223

 

294

17,851

 

23,199

Wumian Hotel[4]

-

 

1

-

 

61

Business to Mid-to-up-scale

40

 

81

4,738

 

8,869

GreenTree Eastern

40

 

74

4,738

 

8,270

Gme

-

 

2

-

 

170

Gya

-

 

1

-

 

70

VX

-

 

4

-

 

359

Total

2,119

 

2,558

178,535

 

209,463

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

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
E-mail: lbergkamp@ChristensenIR.com

 
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