GreenTree Hospitality Group Ltd. Reports Third Quarter 2018 Financial Results

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

.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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