GreenTree Hospitality Group Ltd. Reports First Half 2025 Financial Results

Total revenues decreased by 14.2% year over year to RMB585.1 million (US$81.7million)[1].
Income from operations was RMB91.5 million (US$12.8million)[1]compared to RMB156.7million for the first half of 2024.
Net income was RMB198.8million (US$27.7million)[1]compared to RMB119.6million for the first half of 2024.
Adjusted EBITDA (non-GAAP) [2]decreased by 22.2% year over year to RMB149.7 million (US$20.9 million)[1]。
Core net income (non-GAAP) [3]decreased by 29.6% year over year to RMB92.1 million (US$12.9 million)[1].

SHANGHAI, Oct. 1, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the first half of 2025.

First Half 2025 Operational Highlights

Hotels

A total of 4,509 hotels with 321,977 hotel rooms were in operation as of June 30, 2025.
The Company opened 138 hotels and had a pipeline of 1,245 hotels contracted for or under development as of June 30, 2025.
The average daily room rate was RMB157 in the first quarter of 2025, a decrease of 6.9% from RMB169 in the first quarter of 2024, and RMB166 in the second quarter of 2025, a 3.9% year-over-year decrease.
The occupancy rate was 64.0% in the first quarter of 2025, down from 67.8% in the first quarter of 2024, and 67.9% in the second quarter of 2025, compared to 72.5% in the second quarter of 2024.
Revenue per available room, or RevPAR, was RMB100 in the first quarter of 2025, a 12.1% year-over-year decrease, and RMB113 in the second quarter of 2025, a 10.0% year-over-year decrease.

1.The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1636 on June 30, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20250707/.
2.Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.
3.Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).

Restaurants

A total of 183 restaurants were in operation as of June 30, 2025
The AC (average check) was RMB48 in the first quarter of 2025, a 21.5% year-over-year decrease, and RMB43 in the second quarter of 2025, a 23.8% year-over-year decrease.
The ADT (average daily tickets) was 83 in the first quarter of 2025, down from 94 in the first quarter of 2024, and 85 in the second quarter of 2025, compared to 90 in the second quarter of 2024.
The ADS (average daily sales per store) was RMB 4,029 in the first quarter of 2025, a decrease of 37.1% from RMB 5,525 in the first quarter of 2024, and RMB 3,629 in the second quarter of 2025, a 30.5% year-over-year decrease.

First Half 2025Financial Results

Six months Ended

June 30, 2024

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

228,393,612

89,674,836

318,068,448

Franchised-and-managed revenues

308,970,282

3,769,753

312,740,035

Wholesales and others

2,085,205

49,505,598

-460,202

51,130,601

Total revenues

539,449,099

142,950,187

-460,202

681,939,084

Six months Ended

June 30, 2025

RMB

US$

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

194,759,527

59,058,453

-207,413

253,610,567

35,402,670

Franchised-and-managed revenues

291,753,194

3,176,474

294,929,668

41,170,594

Wholesales and others

1,478,298

35,511,759

-443,807

36,546,250

5,101,660

Total revenues

487,991,019

97,746,686

-651,220

585,086,485

81,674,924

Total revenues for the first half of 2025 were RMB585.1 million (US$81.7 million)[1], a 14.2% year-over-year decrease.

Hotel revenues were RMB488.0 million (US$68.1 million), a 9.5% year-over-year decrease due to an 11% year-over-year decrease in blended RevPAR across the first half year and the closure of 9 L&O hotels since the third quarter of last year. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB97.7 million (US$13.6 million), a 31.6% year-over-year decrease, mainly due to the decrease in the number of L&O stores and lower ADS in the second quarter low season.

Total revenues from leased-and-operated, or L&O, hotelsand restaurants were RMB253.6 million (US$35.4 million)[1], a 20.3% year-over-year decrease.

Total revenues from L&O hotels were RMB 194.8 million (US$27.2 million)[1], a 14.7% year-over-year decrease. The decrease was primarily attributable to the closing of 9 L&O hotels since the third quarter of last year, a 3.4% year-over-year decrease in RevPAR, and a reduction in sublease revenues mainly due to lease expiration.

Total revenues from L&O restaurants were RMB59.1 million (US$8.2 million)[1], a 34.1% year-over-year decrease, mainly due to the closure of 13 L&O restaurants since the third quarter of 2024 and the year-over-year decrease in ADS.

Total revenues from franchised-and-managed, or F&M, hotelsand restaurants were RMB294.9 million (US$41.2 million), a 5.7% year-over-year decrease.

Total revenues from F&M hotels were RMB291.8 million (US$40.7 million)[1], a 5.6% year-over-year decrease, primarily due to a 11% decrease in F&M hotels' blended RevPAR across the first half year and partially offset by new openings.

Total revenues from F&M restaurants were RMB3.2 million (US$0.4 million)[1], a 15.7% year-over-year decrease, mainly due to the year-over-year decrease in ADS and partially offset by new openings.

Total revenues from wholesale and others were RMB36.5 million (US$ 5.1 million)[1], a 28.5% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.

Total operating costs and expenses

Six Months Ended

June 30, 2024

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

295,609,282

117,276,623

-440,869

412,445,036

Selling and marketing expenses

28,677,514

5,591,136

-19,334

34,249,316

General and administrative expenses

87,397,198

15,778,679

103,175,877

Other operating expenses

938,244

1,481,949

2,420,193

Other general expenses

11,756,531

Total operating costs and expenses

424,378,769

140,128,387

-460,203

564,046,953

Six Months Ended

June 30, 2025

RMB

US$

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

286,868,623

84,128,367

-651,220

370,345,770

51,698,276

Selling and marketing expenses

22,964,944

4,564,490

27,529,434

3,842,961

General and administrative expenses

79,683,639

10,475,363

90,159,002

12,585,711

Other operating expenses

4,290,239

442,297

4,732,536

660,637

Other general expenses

11,611,311

1,620,877

Total operating costs and expenses

405,418,756

99,610,517

-651,220

504,378,053

70,408,462

Operating costs were RMB370.3 million (US$51.7 million)[1], a 10.2% year-over-year decrease.

Operating costs of the hotel business were RMB286.9 million (US$40.0 million)[1], a 0.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization and lower consumable, food and beverage caused by the closing of L&O hotels, partially offset by the rental increase caused by the renewal of certain lease agreements.

Operating costs of the restaurant business were RMB84.1 million (US$11.7 million)[1], a 28.3% year-over-year decrease. The decrease was mainly due to the closure of L&O stores.

Selling and marketing expenses were RMB27.5 million (US$3.8 million)[1], a 19.6% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB23.0 million (US$3.2 million)[1], a19.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses, traveling and meal expenses.

Selling and marketing expenses of the restaurant business were RMB4.6 million (US$0.6 million)[1], an 18.4% year-over-year decrease.

General and administrative, or G&A expenses were RMB90.2 million (US$12.6 million)[1], a 12.6% year-over-year decrease.

G&A expenses of the hotel business were RMB79.7 million (US$11.1 million)[1], a 14.7% year-over-year decrease. The decrease was mainly due to a decrease in depreciation and amortization and lower consulting fees.

G&A expenses of the restaurant business were RMB10.5 million (US$1.5 million)[1], a 33.6% year-over-year decrease, mainly due to lower staff related expenses.

Other general expenses of the hotel business were RMB11.6 million (US$1.6 million)[1], a 1.2% year-over-year decrease. These expenses for the first half of 2025 include only the provisions for loan receivables related to franchisee loans.

Gross profit was RMB214.7 million (US$30.0 million)[1], a year-over-year decrease of 22.1%. Gross margin was 36.7%, compared to 40.4% in the first half of 2024. Gross profit of the hotel business was RMB201.1 million (US$28.1 million)[1], a 19.5% year-over-year decrease. Gross profit of the restaurant business was RMB13.6 million (US$1.9 million)[1], a 47.0% year-over-year decrease.

Income from operations was RMB91.5 million (US$12.8 million)[1] , compared to RMB156.7 million in the first half of 2024, with a margin of 15.6%.

Income from operations of the hotel business was RMB93.0 million (US$13.0 million)[1] , compared to income from operations of RMB151.9 million in the first half of 2024, with a margin of 19.1%.

Income from operations of the hotel business in the first half of 2024 included the gain form the disposal of a property. Excluding this impact and the impact from the closing of L&O hotels, as well as the impact of bad debts, income from operations purely related to operations decreased by approximately 12.1%.

Income (loss) from operations of the restaurant business in the first half of 2025 was a loss of RMB1.5 million (US$0.2 million)[1], compared to income from operations of RMB4.7 million in the first half of 2024, with a margin of -1.5%.

Net income in the first half of 2025 was RMB198.8 million (US$27.7 million)[1], compared to net income of RMB119.6 million in the first half of 2024, and net margin was 34.0%.

Net income of the hotel business was RMB200.6 million (US$28.0 million)[1], compared to a net income of RMB120.4 million in the first half of 2024, and net margin was 41.1%. Hotel net income was impacted by the divestment of our ownership in Argyle, the realized gain from an equity investment, foreign exchange losses, the closure of L&O hotels, and bad debt expenses driven by accounts receivables. Excluding these factors, net income decreased by almost 9.5%.

Net income (loss) of the restaurant business in the first half of 2025 was a loss of RMB1.8 million (US$0.3 million)[1], compared to a net income of RMB3.7 million in the first half of 2024, and net margin was -1.9%.

Adjusted EBITDA (non-GAAP)[2] was RMB149.7 million (US$20.9 million)[1], a year-over-year decrease of 22.2%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 25.6%, compared to 28.2% in the first half of 2024.

Core net income (non-GAAP) was RMB92.1 million (US$12.9 million)[1], a year-over-year decrease of 29.6%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the first half of 2025 was 15.7%, compared to 19.2% in the first half of 2024.

Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB1.99 (US$0.28)[1], increased from RMB1.19 in the first half of 2024.

Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.91 (US$0.13)[1], decreased from RMB1.29 in the first half of 2024.

Cash flow- Operating cash inflow was RMB104.8 million (US$14.6 million)[1] as a result of income from operations. Investing cash inflow for the first half of 2025 was RMB77.0 million (US$10.8 million)[1], which was primarily due to the disposal of our ownership in Argyle. Financing cash outflow was RMB0.2 million (US$0.03 million)[1], due to the repayment of bank loans by the end of June 2025.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,034.9 million (US$284.1 million)[1],compared to RMB1,839.1 million as of December 31, 2024. The increase was mainly attributable to continued operating cash inflow and the divestment of our investment in Argyle.

Guidance

Based on our performance in the first half of 2025 and considering the impact from closure of certain L&O hotels due to lease expiration and business strategy adjustments, we adjust our previous revenue guidance for the hotel business to -10% to -13% year-over-year.

Dividend distribution
The board of directors has approved the payment of a cash dividend of US$0.06 per ordinary share, or US$0.06 per American Depositary Share ("ADS") payable to holders of the Company's ordinary shares shown on the Company's record at the close of trading on October 31, 2025 (the "Record Date").

Use of Non-GAAP Financial Measures

We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics 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 do 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 investments in equity 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 terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures 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") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2025, GreenTree had a total number of 4,509 hotels and 183 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2024 according to the China Hospitality Association.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value.

For more information on GreenTree, please visit

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.

Financial Tables and Operational Data Follow

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

December 31, 2024

June 30, 2025

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

1,490,235,562

1,666,620,666

232,651,274

Restricted cash

16,096,476

11,391,736

1,590,225

Short-term investments

10,475

33,622

4,693

Investments in equity securities

Accounts receivable, net of allowance

99,688,034

118,040,098

16,477,762

Amounts due from related parties

21,839,929

21,683,467

3,026,895

Inventories

6,881,470

7,269,088

1,014,726

Other current assets

114,898,590

140,022,478

19,546,384

Loans receivable, net

85,463,467

64,146,183

8,954,462

Total current assets

1,835,114,003

2,029,207,338

283,266,421

Non-current assets:

Amounts due from a related party

110,000,000

15,355,408

Restricted cash

18,869,900

2,634,136

Long-term time deposits

285,570,000

39,864,035

Loans receivable, net

15,372,238

12,404,118

1,731,548

Property and equipment, net

649,528,210

631,282,765

88,123,676

Intangible assets, net

75,677,551

74,635,340

10,418,692

Goodwill

96,074,468

13,411,479

Long-term investments

184,024,217

202,703,037

28,296,253

Operating lease right-of-use assets

1,328,582,419

1,352,475,974

188,798,366

Other assets

102,545,848

136,936,782

19,115,638

Deferred tax assets

245,760,095

243,030,389

33,925,734

TOTAL ASSETS

4,947,118,949

5,193,190,111

724,941,386

LIABILITIES AND EQUITY

Current liabilities:

Long-term bank loans, current portion

Short-term bank loans

400,000

55,838

Accounts payable

56,488,405

48,217,419

6,730,892

Advance from customers

25,684,437

27,171,457

3,792,989

Amounts due to related parties

17,462,176

15,717,073

2,194,019

Salary and welfare payable

78,234,585

78,631,590

10,976,547

Deferred revenue

175,046,178

158,656,395

22,147,579

Accrued expenses and other current liabilities

481,910,291

528,230,470

73,738,130

Income tax payable

88,876,497

85,376,977

11,918,166

Dividends payable

Operating lease liabilities, current

241,363,244

253,428,345

35,377,233

Total current liabilities

1,165,465,813

1,195,829,726

166,931,393

Long-term bank loans

256,200,000

256,000,000

35,736,222

Deferred revenue

176,353,919

167,654,624

23,403,683

Other long-term liabilities

120,975,955

119,503,626

16,682,063

Operating lease liabilities, non-current

1,215,776,075

1,259,009,381

175,750,933

Deferred tax liabilities

79,670,908

59,930,841

8,366,023

Unrecognized tax benefits

440,072,214

445,234,185

62,152,296

TOTAL LIABILITIES

3,454,514,884

3,503,162,383

489,022,613

Shareholders' equity:

Class A ordinary shares

222,587,070

31,071,957

Class B ordinary shares

115,534,210

16,127,954

Treasury Stock

-37,043,116

-48,049,536

-6,707,457

Additional paid-in capital

1,680,148,272

1,609,972,272

224,743,463

Retained earnings (Accumulated losses)

-528,513,570

-256,875,683

-35,858,463

Accumulated other comprehensive income

6,033,263

15,696,666

2,191,170

Total GreenTree Hospitality Group Ltd. shareholders' equity

1,458,746,128

1,658,864,999

231,568,624

Non-controlling interests

33,857,937

31,162,729

4,350,149

Total shareholders' equity

1,492,604,065

1,690,027,728

235,918,773

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,947,118,949

5,193,190,111

724,941,386

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Six Months Ended

June 30, 2024

June 30, 2025

RMB

US$

Revenues

Leased-and-operated revenues

318,068,448

253,610,567

35,402,670

Franchised-and-managed revenues

312,740,035

294,929,668

41,170,594

Wholesales and others

51,130,601

36,546,250

5,101,660

Total revenues

681,939,084

585,086,485

81,674,924

Operating costs and expenses

Operating costs

-412,445,036

-370,345,770

-51,698,276

Selling and marketing expenses

-34,249,316

-27,529,434

-3,842,961

General and administrative expenses

-103,175,877

-90,159,002

-12,585,711

Other operating expenses

-2,420,193

-4,732,536

-660,637

Other general expenses

-11,756,531

-11,611,311

-1,620,877

Total operating costs and expenses

-564,046,953

-504,378,053

-70,408,462

Other operating income

38,768,237

10,762,347

1,502,366

Income from operations

156,660,367

91,470,779

12,768,828

Interest income and other, net

19,950,499

18,563,426

2,591,354

Interest expense

-4,369,058

-3,817,915

-532,960

Gains (losses) from investment in equity securities

-15,424,655

24,800,795

3,462,057

Other income, net

16,791,024

97,329,451

13,586,667

Income before income taxes

173,608,177

228,346,536

31,875,946

Income tax expense

-53,181,694

-30,183,730

-4,213,486

Income (loss) before share of gains in equity investees

120,426,483

198,162,806

27,662,460

Share of loss/(income) in equity investees, net of tax

-869,757

603,873

84,297

Net income(loss)

119,556,726

198,766,679

27,746,757

Net loss/(income) attributable to non-controlling interests

1,030,179

2,695,208

376,237

Net income attributable to ordinary shareholders

120,586,905

201,461,887

28,122,994

Net earnings per share1

Class A ordinary share-basic and diluted

1.19

1.99

0.28

Class B ordinary share-basic and diluted

1.19

1.99

0.28

Net earnings per ADS

Class A ordinary share-basic and diluted

1.19

1.99

0.28

Class B ordinary share-basic and diluted

1.19

1.99

0.28

Weighted average shares outstanding

Class A ordinary share-basic and diluted

66,780,612

66,636,925

Class B ordinary share-basic and diluted

34,762,909

Other comprehensive income, net of tax

Foreign currency translation adjustments

-8,105,751

9,663,403

1,348,959

Unrealized gains(loss) on available-for-sale investments, net of tax

Comprehensive income, net of tax

111,450,975

208,430,082

29,095,716

Comprehensive loss/(income) attributable to non-controlling interests

1,030,179

2,695,208

376,237

Comprehensive income (loss) attributable to ordinary shareholders

112,481,154

211,125,290

29,471,953

1. Each ADS represents one ordinary share. EPS per ADS equals EPS per ordinary share.

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

Six Months Ended

June 30, 2024

June 30, 2025

RMB

US$

Revenues

Leased-and-operated revenues

228,393,613

194,759,527

27,187,382

Franchised-and-managed revenues

308,970,282

291,753,194

40,727,175

Others

2,085,206

1,478,297

206,362

Total revenues

539,449,101

487,991,018

68,120,919

Operating costs and expenses

Hotel operating costs

-295,609,282

-286,868,623

-40,045,316

Selling and marketing expenses

-28,677,514

-22,964,944

-3,205,783

General and administrative expenses

-87,397,198

-79,683,639

-11,123,407

Other operating expenses

-938,244

-4,290,239

-598,894

Other general expenses

-11,756,531

-11,611,311

-1,620,877

Total operating costs and expenses

-424,378,769

-405,418,756

-56,594,277

Other operating income

36,850,398

10,391,669

1,450,621

Income from operations

151,920,730

92,963,931

12,977,263

Interest income and other, net

19,908,718

18,502,925

2,582,909

Interest expense

-4,369,058

-3,769,199

-526,160

Gains (losses) from investment in equity securities

-10,784,976

24,800,795

3,462,057

Other income, net

16,709,039

97,352,813

13,589,929

Income before income taxes

173,384,453

229,851,265

32,085,998

Income tax expense

-52,101,925

-29,850,815

-4,167,013

Income (loss) before share of gains in equity investees

121,282,528

200,000,450

27,918,985

Share of loss/(income) in equity investees, net of tax

-869,757

603,873

84,297

Net income(loss)

120,412,771

200,604,323

28,003,282

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

Six Months Ended

June 30, 2024

June 30, 2025

RMB

US$

Revenues

Leased-and-operated revenues

89,674,836

59,058,453

8,244,242

Franchised-and-managed revenues

3,769,753

3,176,474

443,419

Wholesales and others

49,505,597

35,511,759

4,957,250

Total revenues

142,950,186

97,746,686

13,644,911

Operating costs and expenses

Restaurant operating costs

-117,276,623

-84,128,367

-11,743,867

Selling and marketing expenses

-5,591,136

-4,564,490

-637,178

General and administrative expenses

-15,778,679

-10,475,363

-1,462,304

Other operating expenses

-1,481,949

-442,297

-61,743

Other general expenses

Total operating costs and expenses

-140,128,387

-99,610,517

-13,905,092

Other operating income

1,917,838

370,679

51,745

Income from operations

4,739,637

-1,493,152

-208,436

Interest income and other, net

41,782

60,501

8,446

Interest expense

-48,716

-6,800

Gains (losses) from investment in equity securities

Other income, net

-27,094

-23,362

-3,262

Income before income taxes

4,754,325

-1,504,729

-210,052

Income tax expense

-1,079,769

-332,915

-46,473

Income (loss) before share of gains in equity investees

3,674,556

-1,837,644

-256,525

Share of loss/(income) in equity investees, net of tax

Net income(loss)

3,674,556

-1,837,644

-256,525

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

Six Months Ended

June 30, 2024

June 30, 2025

RMB

US$

Operating activities:

Net (loss) income

119,556,728

198,766,679

27,746,759

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

60,479,676

52,696,207

7,356,107

Noncash lease expense

137,229,448

129,173,622

18,031,942

Loss from disposal of a subsidiary

-839,682

Bad debt expenses

21,768,072

25,491,737

3,558,509

Losses (Gains) and impairment on equity securities held

15,424,655

-24,800,795

-3,462,057

(Gains) losses on disposal of property, plant and equipment

-25,116,235

190,764

26,630

Foreign exchange （gains）losses

-8,763,951

5,889,694

822,170

Others non-cash expense(income)

-4,315,806

-603,873

-84,297

(Gains) from the disposal of long-term investments

-114,042,806

-15,919,762

Accounts receivable

-7,729,152

-32,232,489

-4,499,482

Inventories

14,889,563

-387,618

-54,109

Amounts due from related parties

299,828

433,622

60,531

Other current assets

5,084,951

-24,680,055

-3,445,203

Other assets

1,300,958

-9,355,971

-1,306,043

Accounts payable

-12,560,243

-8,291,559

-1,157,457

Amounts due to related parties

-1,404,655

-1,960,078

-273,616

Salary and welfare payable

-1,424,059

397,005

55,420

Deferred revenue

-31,702,936

-25,089,078

-3,502,300

Advance from customers

-417,287

1,487,020

207,580

Accrued expenses and other current liabilities

-3,285,616

46,320,173

6,466,047

Income tax payable

-8,261,323

-3,499,520

-488,514

Unrecognized tax benefits

-6,196,090

5,161,971

720,583

Operating lease liabilities

-109,769,095

-97,768,770

-13,647,994

Other long-term liabilities

-8,319,829

-1,472,329

-205,529

Deferred taxes

13,966,300

-17,010,361

-2,374,555

Net cash provided by operating activities

159,894,221

104,813,193

14,631,360

Investing activities:

Purchases of property, plant and equipment

-20,193,926

-19,357,542

-2,702,209

Purchases of intangible assets

Proceeds from disposal of property, plant and equipment

139,733,100

237,334

33,131

Payment for acquisition of minority equity

-966,000

Proceeds from disposal of a long-term investment

109,036,386

15,220,893

Advances for purchases of property and equipment

-25,034,964

-3,494,746

Purchases of short-term investments

-23,147

-3,231

Proceeds from short-term investments

419,362,037

Proceeds from long-term time deposits

-222,230,000

Proceeds from disposal of subsidiaries

1,500,000

Loan to related parties

-270,000

-625,000

-87,247

Repayment from related parties

118,982

16,609

Loan to third parties

-1,200,000

Repayment of loan from third parties

5,595,889

Loan to franchisees

-1,600,000

-2,010,000

-280,585

Repayment from franchisees

50,977,221

14,684,093

2,049,820

Net cash (used in) provided by investing activities

370,708,321

77,026,142

10,752,435

Financing activities:

Distribution to the shareholders

-760,321

Repayment of short-term loans

-117,000,000

-200,000

-27,919

Proceeds from bank loans

200,000,000

Net cash provided by (used in) financing activities

82,239,679

-200,000

-27,919

Effect of exchange rate changes on cash and cash equivalents and restricted cash

-2,799,929

-9,958,977

-1,390,220

Net (decrease) increase in cash and cash equivalents

610,042,292

171,680,358

23,965,656

Cash and cash equivalents at the beginning of the period

791,600,712

1,525,201,938

212,909,981

Cash and cash equivalents at the end of the period

1,401,643,003

1,696,882,296

236,875,637

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Six Months Ended

June 30, 2024

June 30, 2025

RMB

US$

Net income

119,556,728

198,766,679

27,746,759

Deduct:

Other operating income

38,768,236

10,762,348

1,502,366

Interest income and other, net

19,950,499

18,563,426

2,591,354

Gains from investment in equity securities

24,800,795

3,462,057

Share of gain in equity investees, net of tax

603,873

84,297

Other income, net

16,791,024

97,329,451

13,586,667

Add:

Other operating expenses

2,420,193

4,732,536

660,637

Other general expenses

11,756,531

11,611,311

1,620,877

Income tax expenses (benefits)

53,181,694

30,183,730

4,213,486

Share of loss in equity investees, net of tax

869,757

Interest expenses

4,369,058

3,817,915

532,960

Depreciation and amortization

60,479,676

52,696,207

7,356,106

Losses from investment in equity securities

15,424,655

Other expense, net

Adjusted EBITDA (Non-GAAP)

192,548,532

149,748,485

20,904,084

Six Months Ended

June 30, 2024

June 30, 2025

RMB

US$

Net income

119,556,728

198,766,679

27,746,759

Deduct:

Government subsidies (net of 25% tax)

469,886

5,447,641

760,461

Gains from investment in equity securities

18,600,596

3,462,057

Other income (net of 25% tax)

12,593,268

101,507,790

14,169,941

Add:

Share-based compensation

31,324

Losses from investments in equity securities (net of 25% tax)

11,568,491

Other expense (net of 25% tax)

One-time fees and expenses

1,055,008

Other general expenses

11,756,531

11,611,311

1,620,877

Income tax expenses related to dividend distribution

7,299,300

1,018,943

Core net income (Non-GAAP)

130,904,926

92,121,263

11,994,120

Core net income per ADS (Non-GAAP)

Class A ordinary share-basic and diluted

1.29

0.91

0.12

Class B ordinary share-basic and diluted

1.29

0.91

0.12

Hotel Operational Data

June 30, 2024

June 30, 2025

Total hotels in operation:

4,272

4,509

Leased and owned hotels

Franchised hotels

4,210

4,454

Total hotel rooms in operation

312,734

321,977

Leased and owned hotels

6,937

6,772

Franchised hotels

305,797

315,245

Number of cities

353

357

Quarter Ended

2024Q1

2025Q1

Occupancy rate (as a percentage)

Leased-and-owned hotels

66.6 %

61.0 %

Franchised hotels

67.9 %

64.1 %

Blended

67.8 %

64.0 %

Average daily rate (in RMB)

Leased-and-owned hotels

235

236

Franchised hotels

167

155

Blended

169

157

RevPAR (in RMB)

Leased-and-owned hotels

157

144

Franchised hotels

113

Blended

114

100

Quarter Ended

2024Q2

2025Q2

Occupancy rate (as a percentage)

Leased-and-owned hotels

70.7 %

72.3 %

Franchised hotels

72.6 %

67.8 %

Blended

72.5 %

67.9 %

Average daily rate (in RMB)

Leased-and-owned hotels

250

245

Franchised hotels

171

164

Blended

173

166

RevPAR (in RMB)

Leased-and-owned hotels

177

Franchised hotels

124

111

Blended

135

113

Number of Hotels in Operation

Number of Hotel Rooms in Operation

June 30, 2024

June 30, 2025

June 30, 2024

June 30, 2025

Mid-to-up-scale

505

569

47,697

52,773

GreenTree Eastern

227

236

24,493

25,107

Deepsleep Hotel

534

610

Gem

119

7,258

10,781

Gya

6,238

6,012

108

8,695

9,024

Others

499

1,239

Mid-scale

2,948

3,005

229,970

226,336

GreenTree Inn

2,315

2,366

182,957

184,561

GT Alliance

428

408

32,726

25,930

GreenTree Apartment

1,385

1,545

Vatica

109

107

7,705

7,481

Geli

100

5,197

6,819

Economy hotels

819

935

35,067

42,868

Shell

819

935

35,067

42,868

Others

Total

4,272

4,509

312,734

321,977

Restaurant Operational Data

June 30, 2024

June 30, 2025

Total restaurants in operation:

183

Leased and owned restaurants

Franchised restaurants

159

168

Number of cities1

Da Niang Dumplings

155

164

Bellagio

Quarter Ended

2024 Q1

2025 Q1

ADT

Leased-and-owned restaurants

155

210

Franchised restaurants

Blended

AC (in RMB)

Leased-and-owned restaurants

113

Franchised restaurants

Blended

ADS (in RMB)

Leased-and-owned restaurants

17,580

20,545

Franchised restaurants

3,364

2,459

Blended

5,525

4,029

Quarter Ended

2024 Q1

2025 Q1

ADT

Leased-and-owned restaurants

165

215

Franchised restaurants

Blended

AC (in RMB)

Leased-and-owned restaurants

105

Franchised restaurants

Blended

ADS (in RMB)

Leased-and-owned restaurants

17,306

18,931

Franchised restaurants

2,814

2,363

Blended

4,737

3,629

1. Store mix shifted to fewer cities due to closures and relocations.

For more information, please contact:

GreenTree

Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail:

Ms. Hannah Zhang
Phone: +86-182-2560-8592
E-mail:

Christensen

In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: mailto:

In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail:

In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail:

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GreenTree Hospitality Group Ltd. Reports First Half 2025 Financial Results

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Baiya International Group Inc. Announces First Half of Fiscal Year 2025 Financial Results

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