SHANGHAI, Sept. 19, 2023 /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 2023. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of our founder, Alex S. Xu, until their acquisition by the Company, the Company accounted for the common-control acquisitions by using the pooling of interest method. The consolidated balance sheets and consolidated statements of comprehensive income/(loss) include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control. In this report, the comparative financial data have been restated to reflect the business combinations under common control.
First Half 2023 Operational Highlights
Hotels
Restaurants
"For our hotel business, the first quarter of 2023 marked a new beginning thanks to the recovery in the hospitality industry and the entire economy in China. RevPAR recovered to 94.3% of its first quarter of 2019 level. RevPAR during the national Labor Day holiday in early May reached more than 120% of its level in the same period in 2019, capitalizing on the popularity of travel during the national holiday period. And due to an increase in the number of people traveling during the summer vacation, RevPAR in July and August was nearly stable at 110% of its level in the same period in 2019.
As previously disclosed, the Company completed the acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China from our controlling shareholder. Our strategy and execution in our restaurant business focus on further expansion in the proportion of franchised-and-managed restaurants and greater penetration to street stores. To ensure the profitability of our restaurant business, we closed unprofitable stores. In the first half of 2023, the ADS of restaurant business recovered to 122.9% of its first half of 2022 level.
"We are grateful for the hard work of our team, franchisees, and partners, and the support of our customers that made it possible to recover quickly starting from the first quarter of 2023 as China began returning to normal life," said Mr. Alex S. Xu, Chairman and Chief Executive Officer of GreenTree.
First Half 2023 Financial Results
Six months Ended |
||||
June 30, |
June 30, |
June 30, |
June 30, |
|
RMB |
RMB |
RMB |
RMB |
|
Hotel |
Restaurant |
Elimination |
Total |
|
Revenues |
||||
Leased-and-operated revenues |
171,272,365 |
171,008,920 |
(229,756) |
342,051,529 |
Franchised-and-managed revenues |
275,539,547 |
18,229,310 |
293,768,857 |
|
Wholesales and others |
10,564,787 |
62,284,229 |
72,849,016 |
|
Total revenues |
457,376,699 |
251,522,459 |
(229,756) |
708,669,402 |
Six months Ended |
|||||
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
Hotel |
Restaurant |
Elimination |
Total |
Total |
|
Revenues |
|||||
Leased-and-operated |
213,563,927 |
168,340,074 |
(1,125,179) |
380,778,822 |
52,511,801 |
Franchised-and-managed |
347,417,000 |
17,355,892 |
364,772,892 |
50,304,482 |
|
Wholesales and others |
2,225,580 |
46,432,697 |
48,658,277 |
6,710,283 |
|
Total revenues |
563,206,507 |
232,128,663 |
(1,125,179) |
794,209,991 |
109,526,566 |
Total revenues for the first half of 2023 were RMB794.2 million (US$109.5 million)[1], a 12.1% year-over-year increase.
Hotel revenues were RMB563.2 million (US$77.7 million), a 23.1% year-over-year increase. The increase was mainly attributable to the recovery in RevPAR and the increase in the number of hotels.
Restaurant revenues were RMB232.1 million (US$32.0 million), a 7.7% year-over-year decrease. The decrease was mainly due to the closure of 64 stores, and partially offset by an increase in ADS.
Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB380.8 million (US$52.5 million)[1], a 11.3% year-over-year increase.
Total revenues from L&O hotels for the first half of 2023 were RMB213.6 million (US$29.5 million)[1], a 24.7% year-over-year increase. The increase was primarily attributable to a 47.8% year-over-year increase in L&O hotels' first half RevPAR and more newly opened L&O hotels in the first half of 2023 as compared to the first half of 2022.
Total revenues from L&O restaurants for the first half of 2023 were RMB168.3 million (US$23.2 million)[1], a 1.6% year-over-year decrease. The decrease was mainly due to the closure of 47 L&O stores, and partially offset by an increase in ADS.
Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB364.8 million (US$ 50.3 million)[1], a 24.2% year-over-year increase.
Total revenues from F&M hotels were RMB347.4 million (US$47.9 million)[1], a 26.1% year-over-year increase. Initial franchise fees increased 9.3% year over year, mainly because of the increase in the gross opening number of F&M hotels. Recurring franchisee management fees and others increased by 27.8% year over year, primarily due to a 46.4% increase in F&M hotels' RevPAR and the increase of 167 F&M hotels.
Total revenues from F&M restaurants were RMB17.4 million (US$2.4 million)[1], a 4.8% year-over-year decrease. The decrease was mainly due to a decrease of 17 F&M stores numbers,and partially offset by a 22.9% increase in F&M stores' average daily sales.
Total revenues from wholesale and others were RMB48.7 million (US$ 6.7 million)[1], a 33.2% year-over-year decrease, mainly because of reduced business from supermarkets, partially offset by increased business through distributors.
Total operating costs and expenses
Six Months Ended |
||||
June 30, |
June 30, |
June 30, |
June 30, |
|
RMB |
RMB |
RMB |
RMB |
|
Hotel |
Restaurant |
Elimination |
Total |
|
Operating costs and expenses |
||||
Operating costs |
307,750,028 |
234,911,742 |
289,605 |
542,951,375 |
Selling and marketing expenses |
18,852,606 |
9,717,435 |
28,570,041 |
|
General and administrative expenses |
99,724,402 |
21,847,196 |
121,571,598 |
|
Other operating expenses |
2,048,734 |
2,240,920 |
4,289,654 |
|
Other general expenses |
490,619,710 |
490,619,710 |
||
Total operating costs and |
918,995,480 |
268,717,293 |
289,605 |
1,188,002,378 |
Six Months Ended |
|||||
June 30, |
June 30, |
June 30, |
June 30, |
June 30, |
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
Hotel |
Restaurant |
Elimination |
Total |
Total |
|
Operating costs and |
|||||
Operating costs |
284,364,378 |
204,308,159 |
(610,088) |
488,062,449 |
67,306,890 |
Selling and marketing |
24,838,605 |
9,385,645 |
34,224,250 |
4,719,740 |
|
General and |
90,535,547 |
21,338,810 |
111,874,357 |
15,428,179 |
|
Other operating |
843,564 |
6,990,654 |
7,834,218 |
1,080,388 |
|
Other general expenses |
15,973,584 |
15,973,584 |
2,202,858 |
||
Total operating costs |
416,555,678 |
242,023,268 |
(610,088) |
657,968,858 |
90,738,055 |
Operating costs were RMB488.1 million (US$67.3 million)[1], a 10.1% year-over-year decrease.
Operating costs of the hotel business were RMB284.4 million (US$39.2 million)[1], a 7.6% year-over-year decrease. The decrease was mainly due to the deconsolidation of Argyle Hotel Management Group (Australia) Pty Ltd., or Argyle, and the disposal of our interest in Urban Hotel Group, or Urban, and was partially offset by higher consumables and higher utility costs as business rebounded, as well as higher rents with lower exemption compared to last year.
Operating costs of the restaurant business were RMB204.3 million (US$28.2 million)[1], a 13.0% year-over-year decrease. The decrease was due to the closure of 64 stores.
Selling and marketing expenses were RMB34.2 million (US$4.7 million)[1], a 19.8% year-over-year increase.
Selling and marketing expenses of the hotel business were RMB24.8 million (US$3.4 million)[1], a 31.8% year-over-year increase. The increase was mainly attributable to higher sales-channel commissions, higher sales staff salaries, and higher travel expenses.
Selling and marketing expenses of the restaurant business were RMB9.4 million (US$1.3 million)[1], a 3.4% year-over-year decrease. The decrease was mainly attributable to lower advertising expenses and lower sales-channel commissions.
General and administrative, or G&A expenses were RMB111.9 million (US$15.4 million)[1], an 8.0% year-over-year decrease.
G&A expenses of the hotel business were RMB90.5 million (US$12.5 million)[1], a 9.2% year-over-year decrease. The decrease was mainly due to the deconsolidation of Argyle and the disposal of our interest in Urban,and partially offset by higher consulting fees and higher staff related expenses.
G&A expenses of the restaurant business were RMB21.3 million (US$2.9 million)[1], a 2.3 % year-over-year decrease. The decrease was mainly due to lower staff related expenses and lower rents due to the closure of 64 stores.
Other general expenses of the hotel business were RMB16.0 million (US$2.2 million)[1], a 96.7% year-over-year decrease.These expenses include the provisions for loan receivables related to franchisee loans, and impairments caused by the disposal of 4 unprofitable hotels.
Gross profit was RMB306.1 million (US$42.2 million)[1], a year-over-year increase of 84.7%. Gross margin was 38.5%, compared to 23.4% a year ago. The gross profit of the hotel business was RMB278.8 million (US$38.5 million)[1], an 86.4% year-over-year increase. The gross profit of the restaurant business was RMB27.8 million (US$3.8 million)[1], a 67.5% year-over-year increase.
Income from operations was RMB150.9 million (US$20.8 million)[1] , compared to a loss from operations of RMB474.3 million in the first half of 2022, with a margin of 19.0%.
Income from operations of the hotel business was RMB160.4 million (US$22.1 million)[1], compared to a loss from operations of RMB457.7 million in the first half of 2022, with a margin of 28.5%.
Loss from operations of the restaurant business was RMB9.0 million (US$1.2 million)[1], compared to a loss from operations of RMB16.1 million in the first half of 2022, with a margin of -3.9%.
Net income was RMB177.3 million (US$24.5 million)[1], compared to a net loss of RMB384.5 million in the first half of 2022, and net margin was 22.3%.
Net income of the hotel business was RMB191.8 million (US$26.5 million)[1], compared to a net loss of RMB360.9 million in the first half of 2022, and net margin was 34.1%.
Net loss of the restaurant business was RMB14.1 million (US$1.9 million)[1], compared to a net loss of RMB23.2 million in the first half of 2022, and net margin was -6.1%.
Adjusted EBITDA (non-GAAP)[2] was RMB226.9 million (US$31.3 million)[1], a year-over-year increase of 137.8%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 28.6%, compared to 13.5% a year ago.
Core net income (non-GAAP) was RMB136.1 million (US$18.8 million)[1], a year-over-year increase of 65.2%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the first half of 2023 was 17.1%, compared to 11.6% one year ago.
Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB1.79 (US$0.25)[1], up from RMB-3.38 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) for the first half of 2023 was RMB1.33 (US$0.18)[1], up from RMB0.80 a year ago.
Cash flow Operating cash inflow was RMB313.1 million (US$43.2 million)[1] as a result of income from operations. Investing cash inflow for the first half of 2023 was RMB128.2 million (US$17.7 million)[1], which was primarily attributable to proceeds from short-term investments and repayment from franchisees. The investing cash inflow was partially offset by purchases of property and equipment and short-term investments. Financing cash outflow was RMB37.4 million (US$5.2 million)[1], mainly attributable to the repayment of bank loans by the end of the June 30, 2023.
Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2023, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,440.1 million (US$198.6 million)[1], compared to RMB1,119.4 million as of December 31, 2022. The increase was primarily due to cash from operating activities and repayment from franchisees, proceeds from disposal of subsidiaries, partially offset by repayment of bank loans and investment of property.
Guidance
Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect total revenues of organic hotels for the full year of 2023 to grow 30%-35% of the 2022 levels. Total revenues for our restaurant business and our organic hotel business, for the full year of 2023 are expected to grow 15%-20% over the 2022 levels.
The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.
Conference Call
GreenTree's management will hold an earnings conference call at 9:00 PM U.S. Eastern Time on September 18, 2023, (9:00 AM Beijing/Hong Kong Time on September 19, 2023).
Dial-in numbers for the live conference call are as follows:
International |
1-412-902-4272 |
Mainland China |
4001-201-203 |
US |
1-888-346-8982 |
Hong Kong |
800-905-945 or 852-3018-4992 |
Singapore |
800-120-6157 |
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 conference call will be available after the conclusion of the live conference call until September 25, 2023.
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: |
8450773 |
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 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, 2023, GreenTree had a total number of 4,108 hotels and 218 restaurants. In 2023, HOTELS magazine ranked GreenTree 12th 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 2022 according to the China Hospitality Association. In 2023, GreenTree completed its acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China.
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, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, 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 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.
Financial Tables and Operational Data Follow
GreenTree Hospitality Group Ltd. |
||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||
December 31, |
June 30, |
June 30, |
||||
2022 |
2023 |
2023 |
||||
RMB |
RMB |
US$ |
||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
701,332,213 |
1,115,384,452 |
153,818,550 |
|||
Restricted cash |
7,937,397 |
- |
- |
|||
Short-term investments |
186,031,572 |
235,416,298 |
32,465,392 |
|||
Investments in equity securities |
41,361,346 |
27,460,488 |
3,786,974 |
|||
Accounts receivable, net of allowance |
140,429,505 |
126,306,120 |
17,418,410 |
|||
Amounts due from related parties |
451,786,275 |
44,473,106 |
6,133,122 |
|||
Prepaid rent |
- |
- |
- |
|||
Inventories |
30,503,712 |
23,052,986 |
3,179,152 |
|||
Other current assets |
142,169,713 |
147,472,648 |
20,337,408 |
|||
Loans receivable, net |
181,667,170 |
152,938,524 |
21,091,187 |
|||
Total current assets |
1,883,218,903 |
1,872,504,622 |
258,230,195 |
|||
Non-current assets: |
||||||
Amounts due from a related party |
112,360,000 |
112,360,000 |
15,495,153 |
|||
Restricted cash |
25,359,592 |
23,544,862 |
3,246,985 |
|||
Long-term time deposits |
130,000,000 |
- |
- |
|||
Loans receivable, net |
177,172,509 |
98,598,159 |
13,597,308 |
|||
Property and equipment, net |
899,985,340 |
883,944,435 |
121,901,512 |
|||
Intangible assets, net |
174,748,932 |
171,687,271 |
23,676,757 |
|||
Goodwill |
128,752,950 |
128,752,950 |
17,755,844 |
|||
Long-term investments |
176,854,460 |
186,909,291 |
25,775,970 |
|||
Operating lease right-of-use assets |
1,676,544,520 |
1,633,368,783 |
225,251,856 |
|||
Other assets |
120,620,533 |
114,673,765 |
15,814,236 |
|||
Deferred tax assets |
242,186,616 |
260,348,940 |
35,903,761 |
|||
TOTAL ASSETS |
5,747,804,355 |
5,486,693,078 |
756,649,577 |
|||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Short-term bank loans |
298,100,000 |
270,700,000 |
37,331,237 |
|||
Long-term bank loans, current portion |
- |
- |
- |
|||
Accounts payable |
123,522,029 |
113,604,869 |
15,666,828 |
|||
Advance from customers |
26,480,779 |
22,822,957 |
3,147,430 |
|||
Amounts due to related parties |
24,810,304 |
23,130,913 |
3,189,899 |
|||
Salary and welfare payable |
89,343,058 |
95,815,922 |
13,213,620 |
|||
Deferred rent |
- |
- |
- |
|||
Deferred revenue |
199,656,130 |
201,488,954 |
27,786,597 |
|||
Accrued expenses and other current liabilities |
455,519,530 |
505,932,951 |
69,771,345 |
|||
Income tax payable |
74,672,133 |
116,954,407 |
16,128,750 |
|||
Dividends payable |
- |
- |
- |
|||
Operating lease liabilities, current |
271,518,556 |
280,717,711 |
38,712,743 |
|||
Deferred tax liabilities |
34,473,265 |
34,344,492 |
4,736,322 |
|||
Total current liabilities |
1,598,095,784 |
1,665,513,176 |
229,684,771 |
|||
Long-term bank loans |
160,000,000 |
150,000,000 |
20,685,946 |
|||
Deferred rent |
- |
- |
- |
|||
Deferred revenue |
232,857,456 |
225,165,519 |
31,051,745 |
|||
Other long-term liabilities |
128,196,031 |
112,114,674 |
15,461,320 |
|||
Operating lease liabilities, non-current |
1,521,589,481 |
1,473,955,554 |
203,267,766 |
|||
Deferred tax liabilities |
63,815,023 |
50,773,630 |
7,002,004 |
|||
Unrecognized tax benefits |
350,002,241 |
381,962,640 |
52,675,057 |
|||
TOTAL LIABILITIES |
4,054,556,016 |
4,059,485,193 |
559,828,609 |
|||
Shareholders' equity: |
||||||
Class A ordinary shares |
222,587,070 |
222,587,070 |
30,696,161 |
|||
Class B ordinary shares |
115,534,210 |
115,534,210 |
15,932,896 |
|||
Paid-in capital |
94,000,801 |
94,000,801 |
12,963,303 |
|||
Treasury Stock |
(16,971,057) |
(16,971,057) |
(2,340,416) |
|||
Additional paid-in capital |
1,911,328,052 |
1,491,556,644 |
205,695,068 |
|||
Retained earnings (Accumulated losses) |
(698,677,163) |
(540,865,018) |
(74,588,697) |
|||
Accumulated other comprehensive income |
27,732,104 |
28,728,211 |
3,961,801 |
|||
Total GreenTree Hospitality Group Ltd. shareholders' |
1,655,534,017 |
1,394,570,861 |
192,320,116 |
|||
Non-controlling interests |
37,714,322 |
32,637,024 |
4,500,852 |
|||
Total shareholders' equity |
1,693,248,339 |
1,427,207,885 |
196,820,968 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
5,747,804,355 |
5,486,693,078 |
756,649,577 |
|||
GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income |
|||||||||
Six Months |
Three Months Ended |
Six Months Ended |
|||||||
June 30, 2022 |
March 31, |
June 30, |
June 30, 2023 |
June 30, |
|||||
RMB |
RMB |
RMB |
RMB |
US$ |
|||||
Revenues |
|||||||||
Leased-and-operated revenues |
342,051,529 |
170,890,916 |
209,887,906 |
380,778,822 |
52,511,801 |
||||
Franchised-and-managed revenues |
293,768,857 |
178,526,853 |
186,246,039 |
364,772,892 |
50,304,482 |
||||
Wholesales and others |
72,849,016 |
29,802,650 |
18,855,627 |
48,658,277 |
6,710,283 |
||||
Total revenues |
708,669,402 |
379,220,419 |
414,989,572 |
794,209,991 |
109,526,566 |
||||
Operating costs and |
|||||||||
Operating costs |
(542,951,375) |
(243,155,310) |
(244,907,139) |
(488,062,449) |
(67,306,890) |
||||
Selling and marketing |
(28,570,041) |
(16,015,579) |
(18,208,671) |
(34,224,250) |
(4,719,740) |
||||
General and |
(121,571,598) |
(57,755,145) |
(54,119,212) |
(111,874,357) |
(15,428,179) |
||||
Other operating expenses |
(4,289,654) |
(1,492,483) |
(6,341,735) |
(7,834,218) |
(1,080,388) |
||||
Other general expenses |
(490,619,710) |
(11,664,345) |
(4,309,239) |
(15,973,584) |
(2,202,858) |
||||
Total operating costs |
(1,188,002,378) |
(330,082,862) |
(327,885,996) |
(657,968,858) |
(90,738,055) |
||||
Other operating income |
5,043,707 |
3,159,519 |
11,511,398 |
14,670,917 |
2,023,212 |
||||
Income from operations |
(474,289,269) |
52,297,076 |
98,614,974 |
150,912,050 |
20,811,723 |
||||
Interest income and other, |
24,042,558 |
7,629,014 |
9,750,337 |
17,379,351 |
2,396,722 |
||||
Interest expense |
(17,441,575) |
(5,528,061) |
(3,868,469) |
(9,396,530) |
(1,295,841) |
||||
Gains (losses) from |
21,687,584 |
(4,536,562) |
(263,836) |
(4,800,398) |
(662,005) |
||||
Other income, net |
14,751,769 |
(2,149,582) |
77,119,089 |
74,969,507 |
10,338,768 |
||||
Income before income |
(431,248,933) |
47,711,885 |
181,352,095 |
229,063,980 |
31,589,367 |
||||
Income tax expense |
46,658,590 |
7,022,835 |
(57,972,918) |
(50,950,083) |
(7,026,338) |
||||
Income (loss) before |
(384,590,343) |
54,734,720 |
123,379,177 |
178,113,897 |
24,563,029 |
||||
Share of loss/(income) in |
75,125 |
(445,618) |
(341,265) |
(786,883) |
(108,516) |
||||
Net income(loss) |
(384,515,218) |
54,289,102 |
123,037,912 |
177,327,014 |
24,454,513 |
||||
Net loss/(income) |
35,800,468 |
3,768,594 |
1,308,704 |
5,077,298 |
700,192 |
||||
Net income attributable |
(348,714,750) |
58,057,696 |
124,346,616 |
182,404,312 |
25,154,705 |
||||
Net earnings per share |
|||||||||
Class A ordinary share- |
(3.38) |
0.57 |
1.22 |
1.79 |
0.25 |
||||
Class B ordinary share- |
(3.38) |
0.57 |
1.22 |
1.79 |
0.25 |
||||
Net earnings per ADS |
|||||||||
Class A ordinary share- |
(3.38) |
0.57 |
1.22 |
1.79 |
0.25 |
||||
Class B ordinary share- |
(3.38) |
0.57 |
1.22 |
1.79 |
0.25 |
||||
Weighted average |
|||||||||
Class A ordinary share- |
68,286,954 |
67,416,046 |
67,416,046 |
67,416,046 |
67,416,046 |
||||
Class B ordinary share- |
34,762,909 |
34,762,909 |
34,762,909 |
34,762,909 |
34,762,909 |
||||
Other comprehensive |
|||||||||
Foreign currency |
(9,730,001) |
810,574 |
185,533 |
996,107 |
137,370 |
||||
Comprehensive income, |
(394,245,219) |
55,099,676 |
123,223,445 |
178,323,121 |
24,591,883 |
||||
Comprehensive |
35,800,468 |
3,768,594 |
(4,843,631) |
(1,075,037) |
(148,254) |
||||
Comprehensive income |
(358,444,751) |
58,868,270 |
118,379,814 |
177,248,084 |
24,443,629 |
||||
GreenTree Hospitality Group Ltd. Unaudited Hotel Business Results |
|||||||||
Six Months |
Three Months Ended |
Six Months Ended |
|||||||
June 30, 2022 |
March 31, |
June 30, |
June 30, 2023 |
June 30, |
|||||
RMB |
RMB |
RMB |
RMB |
US$ |
|||||
Revenues |
|||||||||
Leased-and-operated revenues |
171,272,365 |
82,073,240 |
131,490,687 |
213,563,927 |
29,451,812 |
||||
Franchised-and-managed revenues |
275,539,547 |
169,480,457 |
177,936,543 |
347,417,000 |
47,910,995 |
||||
Others |
10,564,787 |
1,036,848 |
1,188,732 |
2,225,580 |
306,921 |
||||
Total revenues |
457,376,699 |
252,590,545 |
310,615,962 |
563,206,507 |
77,669,728 |
||||
Operating costs and |
|||||||||
Hotel operating costs |
(307,750,028) |
(134,236,998) |
(150,127,380) |
(284,364,378) |
(39,215,641) |
||||
Selling and marketing |
(18,852,606) |
(11,075,999) |
(13,762,606) |
(24,838,605) |
(3,425,400) |
||||
General and |
(99,724,402) |
(46,092,069) |
(44,443,478) |
(90,535,547) |
(12,485,423) |
||||
Other operating expenses |
(2,048,734) |
(151,220) |
(692,344) |
(843,564) |
(116,333) |
||||
Other general expenses |
(490,619,710) |
(11,664,345) |
(4,309,239) |
(15,973,584) |
(2,202,858) |
||||
Total operating costs |
(918,995,480) |
(203,220,631) |
(213,335,047) |
(416,555,678) |
(57,445,655) |
||||
Other operating income |
3,917,398 |
2,608,096 |
11,183,689 |
13,791,785 |
1,901,974 |
||||
Income from operations |
(457,701,383) |
51,978,010 |
108,464,604 |
160,442,614 |
22,126,047 |
||||
Interest income and other, |
23,730,138 |
7,475,298 |
9,597,042 |
17,072,340 |
2,354,383 |
||||
Interest expense |
(15,178,612) |
(4,724,690) |
(3,167,262) |
(7,891,952) |
(1,088,350) |
||||
Gains (losses) from |
21,687,584 |
(4,536,562) |
(263,836) |
(4,800,398) |
(662,005) |
||||
Other income, net |
14,664,617 |
(2,426,540) |
76,946,162 |
74,519,622 |
10,276,727 |
||||
Income before income |
(412,797,656) |
47,765,516 |
191,576,710 |
239,342,226 |
33,006,802 |
||||
Income tax expense |
51,800,695 |
9,365,855 |
(56,097,180) |
(46,731,325) |
(6,444,544) |
||||
Income (loss) before |
(360,996,961) |
57,131,371 |
135,479,530 |
192,610,901 |
26,562,258 |
||||
Share of loss/(income) in |
75,125 |
(445,618) |
(341,265) |
(786,883) |
(108,516) |
||||
Net income(loss) |
(360,921,836) |
56,685,753 |
135,138,265 |
191,824,018 |
26,453,742 |
||||
GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results |
|||||||||
Six Months |
Three Months Ended |
Six Months Ended |
|||||||
June 30, 2022 |
March 31, |
June 30, |
June 30, 2023 |
June 30, |
|||||
RMB |
RMB |
RMB |
RMB |
US$ |
|||||
Revenues |
|||||||||
Leased-and-operated revenues |
171,008,920 |
89,376,893 |
78,963,181 |
168,340,074 |
23,215,158 |
||||
Franchised-and-managed revenues |
18,229,310 |
9,046,396 |
8,309,496 |
17,355,892 |
2,393,487 |
||||
Wholesale and others |
62,284,229 |
28,765,802 |
17,666,895 |
46,432,697 |
6,403,362 |
||||
Total revenues |
251,522,459 |
127,189,091 |
104,939,572 |
232,128,663 |
32,012,007 |
||||
Operating costs and |
|||||||||
Restaurant operating |
(234,911,742) |
(109,219,983) |
(95,088,176) |
(204,308,159) |
(28,175,384) |
||||
Selling and marketing |
(9,717,435) |
(4,939,580) |
(4,446,065) |
(9,385,645) |
(1,294,340) |
||||
General and |
(21,847,196) |
(11,663,076) |
(9,675,734) |
(21,338,810) |
(2,942,756) |
||||
Other operating expenses |
(2,240,920) |
(1,341,263) |
(5,649,391) |
(6,990,654) |
(964,055) |
||||
Other general expenses |
- |
- |
- |
- |
- |
||||
Total operating costs |
(268,717,293) |
(127,163,902) |
(114,859,366) |
(242,023,268) |
(33,376,535) |
||||
Other operating income |
1,126,309 |
551,423 |
327,709 |
879,132 |
121,238 |
||||
Income from operations |
(16,068,525) |
576,612 |
(9,592,085) |
(9,015,473) |
(1,243,290) |
||||
Interest income and other, |
312,420 |
153,716 |
153,295 |
307,011 |
42,339 |
||||
Interest expense |
(2,262,963) |
(803,371) |
(701,207) |
(1,504,578) |
(207,491) |
||||
Gains (losses) from |
- |
- |
- |
- |
- |
||||
Other income, net |
87,152 |
276,958 |
172,926 |
449,884 |
62,041 |
||||
Income before income |
(17,931,916) |
203,915 |
(9,967,071) |
(9,763,156) |
(1,346,401) |
||||
Income tax expense |
(5,271,945) |
(2,407,407) |
(1,940,124) |
(4,347,531) |
(599,552) |
||||
Income (loss) before |
(23,203,862) |
(2,203,492) |
(11,907,194) |
(14,110,686) |
(1,945,953) |
||||
Share of loss/(income) in |
- |
- |
- |
- |
- |
||||
Net income(loss) |
(23,203,862) |
(2,203,492) |
(11,907,194) |
(14,110,686) |
(1,945,953) |
||||
GreenTree Hospitality Group Ltd. |
|||||||
Unaudited Condensed Consolidated Statements |
|||||||
Six Months |
Six Months |
Six Months |
Six Months |
||||
June 30, 2022 |
June 30, 2022 |
June 30, |
June 30, 2022 |
||||
Hotel |
Restaurant |
Elimination |
Total |
||||
RMB |
RMB |
RMB |
RMB |
||||
Revenues |
|||||||
Leased-and-operated hotels |
171,272,365 |
171,008,920 |
(229,756) |
342,051,529 |
|||
Franchised-and-managed |
275,539,547 |
18,229,310 |
293,768,857 |
||||
Wholesale and Others |
10,564,787 |
62,284,229 |
72,849,016 |
||||
Total revenues |
457,376,699 |
251,522,459 |
(229,756) |
708,669,402 |
|||
Operating costs and |
|||||||
Operating costs |
(307,750,028) |
(234,911,742) |
(289,605) |
(542,951,375) |
|||
Selling and marketing |
(18,852,606) |
(9,717,435) |
(28,570,041) |
||||
General and administrative |
(99,724,402) |
(21,847,196) |
(121,571,598) |
||||
Other operating expenses |
(2,048,734) |
(2,240,920) |
(4,289,654) |
||||
Other general expenses |
(490,619,710) |
(490,619,710) |
|||||
Total operating costs and |
(918,995,480) |
(268,717,293) |
(289,605) |
(1,188,002,378) |
|||
Other operating income |
3,917,398 |
1,126,309 |
5,043,707 |
||||
Income from operations |
(457,701,383) |
(16,068,525) |
(519,361) |
(474,289,269) |
|||
GreenTree Hospitality Group Ltd. |
|||||||
Unaudited Condensed Consolidated Statements |
|||||||
Six Months |
Six Months |
Six Months |
Six Months |
||||
June 30, 2023 |
June 30, 2023 |
June 30, 2023 |
June 30, 2023 |
||||
Hotel |
Restaurant |
Elimination |
Total |
||||
RMB |
RMB |
RMB |
RMB |
||||
Revenues |
|||||||
Leased-and-operated hotels |
213,563,927 |
168,340,074 |
(1,125,179) |
380,778,822 |
|||
Franchised-and-managed |
347,417,000 |
17,355,892 |
364,772,892 |
||||
Wholesales and others |
2,225,579 |
46,432,698 |
48,658,277 |
||||
Total revenues |
563,206,506 |
232,128,664 |
(1,125,179) |
794,209,991 |
|||
Operating costs and |
|||||||
Operating costs |
(284,364,378) |
(204,308,159) |
610,088 |
(488,062,449) |
|||
Selling and marketing expenses |
(24,838,605) |
(9,385,645) |
(34,224,250) |
||||
General and administrative |
(90,535,547) |
(21,338,810) |
(111,874,357) |
||||
Other operating expenses |
(843,564) |
(6,990,654) |
(7,834,218) |
||||
Other general expenses |
(15,973,584) |
(15,973,584) |
|||||
Total operating costs and |
(416,555,678) |
(242,023,268) |
610,088 |
(657,968,858) |
|||
Other operating income |
13,791,785 |
879,132 |
14,670,917 |
||||
Income from operations |
160,442,613 |
(9,015,472) |
(515,091) |
150,912,050 |
|||
GreenTree Hospitality Group Ltd. |
|||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||||
Six Months |
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||
RMB |
RMB |
RMB |
RMB |
US$ |
|||||
Operating |
|||||||||
Net (loss) income |
-384,515,218 |
54,289,102 |
123,037,911 |
177,327,013 |
24,454,513 |
||||
Depreciation and |
79,849,031 |
31,080,092 |
35,745,507 |
66,825,599 |
9,215,672 |
||||
Impairment of long |
56,212,849 |
2,900,000 |
2,900,000 |
399,928 |
|||||
Impairment of |
91,236,480 |
||||||||
Share of (gains) |
-75,125 |
445,618 |
341,265 |
786,883 |
108,516 |
||||
Non-cash lease |
41,659,260 |
64,053,832 |
70,769,259 |
134,823,091 |
18,592,954 |
||||
Loss from disposal |
13,944,925 |
1,223,952 |
1,223,952 |
168,791 |
|||||
Interest income |
-262,334 |
-390,378 |
-1,267,532 |
-1,657,910 |
-228,636 |
||||
Bad debt expense |
340,846,428 |
12,359,278 |
6,320,196 |
18,679,474 |
2,576,017 |
||||
Losses and |
-21,687,584 |
4,536,562 |
263,836 |
4,800,398 |
662,005 |
||||
(Gains) losses on |
3,050,035 |
-113,587 |
341,428 |
227,841 |
31,421 |
||||
Foreign exchange |
-12,024,153 |
987,543 |
-2,075,742 |
-1,088,199 |
-150,070 |
||||
Share-based |
271,139 |
-11,636 |
40,228 |
28,592 |
3,943 |
||||
Common control |
519,360 |
257,546 |
257,546 |
515,092 |
71,034 |
||||
Changes in |
-65,089,156 |
-6,084,179 |
-86,198,991 |
-92,283,170 |
-12,726,431 |
||||
Net cash provided |
143,935,937 |
165,533,745 |
147,574,911 |
313,108,656 |
43,179,657 |
||||
Investing |
|||||||||
Purchases of |
-30,771,557 |
-34,116,117 |
-37,617,117 |
-71,733,234 |
-9,892,465 |
||||
Purchases of |
-60,215 |
-42,454 |
-309,827 |
-352,281 |
-48,582 |
||||
Proceeds from |
2,288,823 |
6,973,574 |
7,723,107 |
14,696,681 |
2,026,765 |
||||
Purchases of |
-48,860,000 |
-51,370,000 |
-51,370,000 |
-7,084,247 |
|||||
Proceeds from |
506,295,349 |
110,300,378 |
61,142,806 |
171,443,184 |
23,643,096 |
||||
Loan advances |
94,927,368 |
27,302,903 |
48,235,746 |
75,538,649 |
10,417,256 |
||||
Loan collections |
-200,868,160 |
-8,029,596 |
-1,945,000 |
-9,974,596 |
-1,375,560 |
||||
Net cash (used in) |
322,951,608 |
102,388,688 |
25,859,715 |
128,248,403 |
17,686,263 |
||||
Financing |
|||||||||
Distribution to the |
-40,999,458 |
||||||||
Loan from non- |
300,000 |
||||||||
Repayment of |
-169,100,000 |
-136,600,000 |
-17,800,000 |
-154,400,000 |
-21,292,734 |
||||
Proceeds from bank |
25,300,000 |
117,000,000 |
117,000,000 |
16,135,038 |
|||||
Capital contribution |
-1,600,000 |
||||||||
Net cash provided |
-186,099,458 |
-19,600,000 |
-17,800,000 |
-37,400,000 |
-5,157,696 |
||||
Effect of exchange |
649,388 |
-40,524 |
383,575 |
343,051 |
47,309 |
||||
Net (decrease) |
281,437,475 |
248,281,909 |
156,018,201 |
404,300,110 |
55,755,533 |
||||
Cash and cash |
385,452,920 |
734,629,202 |
734,629,202 |
101,310,000 |
|||||
Cash and cash |
666,890,395 |
982,911,111 |
156,018,201 |
1,138,929,312 |
157,065,533 |
||||
GreenTree Hospitality Group Ltd. |
|||||
Unaudited Reconciliation of GAAP and Non-GAAP Results |
|||||
Six Months Ended |
|||||
June 30, 2022 |
June 30, 2023 |
June 30, 2023 |
|||
RMB |
RMB |
US$ |
|||
Net income |
(384,515,218) |
177,327,013 |
24,454,513 |
||
Deduct: |
|||||
Other operating income |
5,043,707 |
14,670,917 |
2,023,212 |
||
Interest income and other, net |
24,042,558 |
17,379,351 |
2,396,722 |
||
Gains from investment in equity |
21,687,584 |
- |
- |
||
Share of gain in equity investees, net |
75,125 |
- |
- |
||
Other income, net |
14,751,769 |
74,969,507 |
10,338,768 |
||
Add: |
|||||
Other operating expenses |
4,289,654 |
7,834,218 |
1,080,388 |
||
Other general expenses |
490,619,710 |
15,973,584 |
2,202,858 |
||
Income tax expenses (benefits) |
(46,658,590) |
50,950,083 |
7,026,338 |
||
Share of loss in equity investees, net |
- |
786,883 |
108,516 |
||
Interest expenses |
17,441,575 |
9,396,530 |
1,295,841 |
||
Depreciation and amortization |
79,849,031 |
66,825,599 |
9,215,672 |
||
Losses from investment in equity |
- |
4,800,398 |
662,005 |
||
Adjusted EBITDA (Non-GAAP) |
95,425,419 |
226,874,533 |
31,287,429 |
||
Six Months Ended |
|||||
June 30, 2022 |
June 30, 2023 |
June 30, 2023 |
|||
RMB |
RMB |
US$ |
|||
Net income |
(384,515,218) |
177,327,013 |
24,454,513 |
||
Deduct: |
|||||
Government subsidies (net of 25% |
1,251,065 |
6,671,305 |
920,015 |
||
Gains from investment in equity |
16,265,688 |
- |
- |
||
Other income (net of 25% tax) |
11,063,827 |
56,227,130 |
7,754,076 |
||
Add: |
|||||
Share-based compensation |
271,139 |
28,592 |
3,943 |
||
Losses from investments in equity |
- |
3,600,299 |
496,504 |
||
One-time fees and expenses |
4,588,086 |
2,055,989 |
283,534 |
||
Other general expenses |
490,619,710 |
15,973,584 |
2,202,858 |
||
Impairment charges and provisions |
- |
- |
- |
||
Core net income (Non-GAAP) |
82,383,137 |
136,087,042 |
18,767,261 |
||
Core net income per ADS (Non- |
|||||
Class A ordinary share-basic and |
0.80 |
1.33 |
0.18 |
||
Class B ordinary share-basic and |
0.80 |
1.33 |
0.18 |
||
Hotel Operational Data
June 30, 2022 |
June 30, 2023 |
|
Total hotels in operation: |
4,669 |
4,108 |
Leased and owned hotels |
67 |
65 |
Franchised hotels |
4,602 |
4,043 |
Total hotel rooms in operation |
332,073 |
303,387 |
Leased and owned hotels |
6,986 |
7,137 |
Franchised hotels |
325,087 |
296,250 |
Number of cities |
367 |
357 |
Quarter Ended |
||
2022 Q1 |
2023Q1 |
|
Occupancy rate (as a percentage) |
||
Leased-and-owned hotels |
52.6 % |
62.9 % |
Franchised hotels |
60.2 % |
71.9 % |
Blended |
60.0 % |
71.7 % |
Average daily rate (in RMB) |
||
Leased-and-owned hotels |
199 |
229 |
Franchised hotels |
152 |
166 |
Blended |
153 |
167 |
RevPAR (in RMB) |
||
Leased-and-owned hotels |
105 |
144 |
Franchised hotels |
91 |
119 |
Blended |
92 |
120 |
Quarter Ended |
||
2022 Q2 |
2023Q2 |
|
Occupancy rate (as a percentage) |
||
Leased-and-owned hotels |
57.1 % |
74.6 % |
Franchised hotels |
62.3 % |
77.9 % |
Blended |
62.2 % |
77.8 % |
Average daily rate (in RMB) |
||
Leased-and-owned hotels |
217 |
255 |
Franchised hotels |
145 |
179 |
Blended |
147 |
181 |
RevPAR (in RMB) |
||
Leased-and-owned hotels |
124 |
190 |
Franchised hotels |
90 |
139 |
Blended |
91 |
141 |
Number of Hotels in Operation |
Number of Hotel Rooms in |
|||
June 30, |
June 30, |
June 30, |
June 30, |
|
Mid-to-up-scale |
528 |
438 |
47,347 |
42,338 |
GreenTree Eastern |
201 |
217 |
22,402 |
23,205 |
Deepsleep Hotel |
7 |
7 |
467 |
534 |
Gem |
52 |
54 |
4,728 |
4,873 |
Gya |
66 |
70 |
5,639 |
5,904 |
Vx |
81 |
90 |
7,069 |
7,822 |
Urban Garden and others |
121 |
- |
7,042 |
- |
Mid-scale |
2,999 |
2,933 |
233,950 |
229,270 |
GreenTree Inn |
2,183 |
2259 |
180,255 |
181,015 |
GT Alliance |
521 |
545 |
37,545 |
39,091 |
GreenTree Apartment |
19 |
21 |
1,260 |
1,351 |
Vatica |
110 |
108 |
7,969 |
7,813 |
City 118 Selected and others |
166 |
- |
6,921 |
- |
Economy hotels |
1,142 |
737 |
50,776 |
31,779 |
Shell |
648 |
737 |
28,030 |
31,779 |
City 118 and others |
494 |
- |
22,746 |
- |
Total |
4,669 |
4,108 |
332,073 |
303,387 |
Restaurant Operational Data
June 30, 2022 |
June 30, 2023 |
|
Total restaurants in operation: |
280 |
218 |
Leased and owned restaurants |
146 |
104 |
Franchised restaurants |
134 |
114 |
Number of cities |
81 |
66 |
Da Niang Dumplings |
245 |
182 |
Bellagio |
35 |
36 |
Total restaurants in operation: |
280 |
218 |
Quarter Ended |
||
2022 Q1 |
2023Q1 |
|
ADT |
||
Leased-and-owned restaurants |
170 |
143 |
Franchised restaurants |
95 |
81 |
Blended |
130 |
110 |
AC (in RMB) |
||
Leased-and-owned restaurants |
51 |
61 |
Franchised restaurants |
39 |
46 |
Blended |
46 |
55 |
ADS (in RMB) |
||
Leased-and-owned restaurants |
8,640 |
8,716 |
Franchised restaurants |
3,712 |
3,745 |
Blended |
6,027 |
6,080 |
Quarter Ended |
||
2022 Q2 |
2023Q2 |
|
ADT |
||
Leased-and-owned restaurants |
92 |
142 |
Franchised restaurants |
56 |
86 |
Blended |
78 |
120 |
AC (in RMB) |
||
Leased-and-owned restaurants |
60 |
61 |
Franchised restaurants |
45 |
46 |
Blended |
52 |
53 |
ADS (in RMB) |
||
Leased-and-owned restaurants |
5,505 |
8,657 |
Franchised restaurants |
2,503 |
3,936 |
Blended |
4,051 |
6,371 |
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com
Mr. Allen Wang
Phone: +86-181-0184-0639
E-mail: ir@998.com
Christensen
In Shanghai
Mr. Jerry Xu
Phone: +86-138-1680-0706
E-mail: jerry.xu@christensencomms.com
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: karen.hui@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2513 on June 30, 2023 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/.
[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 the provision for bad debts, 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 abovementioned definition.
[3] Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), one-time fees and expense and asset impairment/accrued bad debts 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).
