.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 |
||||||||||||||
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 |
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 |
(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) |
(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 |
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 |
350,422,655 |
839,157,006 |
122,183,606 |
350,422,655 |
839,157,006 |
122,183,606 |
||||||||
Supplemental disclosure of cash |
||||||||||||||
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 |
||||||||||||||
Acquisition of investment through |
- |
(8,225,876) |
(1,197,711) |
- |
(8,225,876) |
(1,197,711) |
||||||||
GreenTree Hospitality Group Ltd. |
||||||||
Quarter Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
September 30, |
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, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||
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
View original content:http://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-third-quarter-2018-financial-results-300752756.html