SHANGHAI, May 15, 2018 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading franchised hotel operator in China, today announced its unaudited financial results for the first quarter ended March 31, 2018.
First Quarter of 2018 Operational Highlights
As of March 31, 2018, we had approximately 22 million individual loyal members and over 860,000 corporate members, compared to approximately 21 million and over 820,000, respectively, as of December 31, 2017. During the first quarter of 2018, we sold approximately 96% of our room nights through our direct sales channels, including our individual loyal members and corporate members, while online travel agencies, or OTAs, only contributed approximately 4% of our room nights.
"After 13 years of hard work by our team and fast organic growth, we are proud to have completed our IPO on the NYSE on March 27, 2018,' commented Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree. "Historically, the first quarter has been our softest quarter due to the Chinese New Year holiday. However we were able to achieve solid operating results for the quarter. We are quite pleased with our start as a public company, and we are confident in our positioning going forward. We will continue to focus on our existing business model which we believe will benefit our customers and franchisees, grow our membership program and invest in our brands and our technology. We have a strong pipeline and are on track to open more new hotels. We are particularly excited to premier our three new business to mid-to-up-scale brands this year, namely Gme, Gya and VX. With additional cash on our balance sheet, we intend to make selective acquisitions to further expand our hotel network. Overall, continued strong economic growth and increasing consumer spending, along with our distinct portfolio of brands, strong pipeline, and asset-light model, should help us continue to deliver strong operational performance and value to our shareholders over the long term."
| First Quarter of 2018 Financial Results |
||||
| Quarter Ended |
||||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
||
| RMB |
RMB |
USD |
||
| Revenues |
||||
| Leased-and-operated hotels |
41,762,816 |
44,175,458 |
7,042,607 |
|
| Franchised-and-managed hotels |
112,236,364 |
143,868,763 |
22,936,065 |
|
| Membership fees |
12,267,607 |
16,899,200 |
2,694,130 |
|
| Total revenues |
166,266,787 |
204,943,421 |
32,672,802 |
|
Total revenues for the first quarter of 2018 were RMB204.9 million (US$32.7 million)[1], representing a 23.3% increase over the first quarter of 2017. This year-over-year increase was primarily attributable to the net additional 65 F&M hotels to our network, the opening of a GreenTree Eastern L&O hotel in Shanghai in June 2017, improved RevPAR for both F&M and L&O hotels as well as membership growth; and was partially offset by the closure of one L&O hotel and the conversion of six L&O hotels to F&M hotels.
| Quarter Ended |
||||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
||
| RMB |
RMB |
USD |
||
| Initial franchise fee |
7,122,581 |
12,494,913 |
1,991,983 |
|
| Recurring franchise management fee |
105,113,783 |
131,373,850 |
20,944,082 |
|
| Revenues from franchised-and-managed hotels |
112,236,364 |
143,868,763 |
22,936,065 |
|
| Quarter Ended |
|||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
|
| RMB |
RMB |
USD |
|
| Operating cost and expenses |
|||
| Hotel operating costs |
57,034,812 |
65,111,072 |
10,380,237 |
| Selling and marketing expenses |
9,653,945 |
11,349,067 |
1,809,308 |
| General and administrative expenses |
18,434,930 |
20,400,857 |
3,252,376 |
| Other operating expenses |
852,735 |
143,262 |
22,839 |
| Total operating cost and expenses |
85,976,422 |
97,004,258 |
15,464,760 |
Hotel operating costs for the first quarter of 2018 were RMB65.1 million (US$10.4 million)[1], compared to RMB57.0 million in the first quarter of 2017, representing a 14.2% year-over-year increase. The year-over-year increase were mainly attributable to the increased general managers in our hotel network and other costs associated with the expansion of our F&M hotels, and higher rental costs in the GreenTree Eastern L&O hotel and other L&O hotels; and was partially offset by reduced rental costs, depreciation and amortization and operating costs related to the closure and conversion of seven L&O hotels.
| Quarter Ended |
|||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
|
| RMB |
RMB |
USD |
|
| Rental |
15,300,179 |
17,632,067 |
2,810,966 |
| Utilities |
4,696,087 |
5,111,000 |
814,814 |
| Personnel cost |
6,402,224 |
7,231,850 |
1,152,927 |
| Depreciation and amortization |
6,141,427 |
4,820,413 |
768,487 |
| Consumable, food and beverage |
2,745,119 |
4,436,637 |
707,304 |
| Costs of general managers of franchised-and-operated hotels |
12,921,722 |
15,585,608 |
2,484,713 |
| Other costs of franchised-and-operated hotels |
5,591,800 |
6,750,036 |
1,076,115 |
| Others |
3,236,254 |
3,543,461 |
564,911 |
| Hotel Operating Costs |
57,034,812 |
65,111,072 |
10,380,237 |
Selling and marketing expenses for the first quarter of 2018 were RMB11.3 million (US$1.8 million)[1], compared to RMB9.7 million in the first quarter of 2017. The year-over-year increase of 17.6% in the first quarter of 2018 was mainly attributable to advertising and promotion expenses mainly related to our three new business to mid-to-up-scale brands (Gme, Gya and VX), increased personnel, compensation and other costs (i.e. travel expenses) of business development personnel, as a result of the increased opening of hotels.
General and administrative expenses for the first quarter of 2018 were RMB20.4 million (US$3.3 million)[1], compared to RMB18.4 million in the first quarter of 2017. The year-over-year increase of 10.7% was mainly due to IPO-related expenses and increased compensation of staff at our headquarters resulting from the growth of our business.
Gross profit for the first quarter of 2018 was RMB139.8 million (US$22.3 million)[1], compared to RMB109.2 million in the first quarter of 2017, representing a year-over-year increase of 28.0%. Gross margin improved to 68.2%, compared to 65.7% a year ago.
Income from operations for the first quarter of 2018 was RMB121.8 million (US$19.4 million)[1], compared to RMB80.6 million in the first quarter of 2017, representing a year-over-year increase of 51.0%. Operating margin improved to 59.4%, compared to 48.5% a year ago.
Adjusted EBITDA (non-GAAP) for the first quarter of 2018 was RMB113.6 million (US$18.1 million)[1], compared to RMB87.7 million for the first quarter of 2017, a year-over-year increase of 29.6%. The adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as percentage of total revenues, was 55.4% in the first quarter of 2018, compared to 52.7% in the first quarter of 2017.
Net income attributable to GreenTree Hospitality Group Ltd. for the first quarter of 2018 was RMB90.2 million (US$14.4 million)[1], or 44.0% of net revenues, compared to RMB74.5 million, or 44.8% of net revenues, in the first quarter of 2017, a year-over-year increase of 21.0%.
Core net income (non-GAAP) for the first quarter of 2018 was RMB84.0 million (US$13.4 million)[1], compared to RMB65.9million in the first quarter of 2017, representing a 27.5% year-over-year increase. The core net margin, defined as core net income (non-GAAP) as percentage of total revenues, was 41.0% in the first quarter of 2018, compared to 39.6% in the first quarter of 2017.
Basic and diluted earnings per ADS for the first quarter of 2018 were RMB0.98 (US$0.16)[1], compared to RMB0.82 for the first quarter of 2017, representing a year-over-year increase of 19.5%.
Cash flow. Operating cash inflow for the first quarter of 2018 was RMB116.0 million (US$18.5 million)[1], due primarily to improved operating performance across our hotel portfolio. Investing cash inflow for the first quarter of 2018 was RMB160.1 million (US$25.5 million)[1], which was attributable primarily to changes in short term investments, and partially offset by purchase of property and equipment of RMB58.3 million. Financing cash inflow for the first quarter of 2018 was RMB790.5 million (US$126.0 million)[1], which was attributable primarily to IPO proceeds net of capitalized expenses of RMB833.2 million, partially offset by dividends to pre-IPO shareholders and related taxes of RMB42.7 million.
Cash and cash equivalents, restricted cash, Short term investments and Trading securities. As of March 31, 2018, the Company had a total balance of cash and cash equivalents, restricted cash, short term investments and trading securities of RMB2,077.2 million (US$331.2 million)[1], as compared to RMB1,251.6 million as of December 31, 2017, primarily due to the proceeds of our IPO net of capitalized expenses and net operating cash inflow.
Guidance
For the full year 2018, the Company expects growth in total revenues of 20-25% from 2017.
The guidance set forth above reflects the Company's current and preliminary view based on our estimates, and may not be indicative of our financial results for future interim periods and the full year ended December 31, 2018 and is subject to change.
Conference Call
GreenTree's management will hold an earnings conference call at 8:00 AM on May 15, 2018, U.S. Eastern Time (8:00 PM on the same day Beijing/Hong Kong Time).
Dial-in numbers for the live conference call are as follows:
| International |
1-412-902-4272 |
| China |
4001-201203 |
| US |
1-888-346-8982 |
| Hong Kong |
800-905945 or 852-3018-4992 |
Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call.
A telephone replay of the call will be available after the conclusion of the conference call through May 22, 2018.
Dial-in numbers for the replay are as follows:
| International Dial-in |
1-412-317-0088 |
| U.S. Toll Free |
1-877-344-7529 |
| Passcode: |
10120243 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.
Use of Non-GAAP Financial Measures
We believe that Adjusted EBITDA and core net income, as we present it, is a useful financial metric to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements.
The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.
The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income does not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from trading securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.
The term Adjusted EBITDA and core net income is not defined under U.S. GAAP, and Adjusted EBITDA and core net income is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.
Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading franchised hotel operator in China. As of December 31, 2017, GreenTree had the highest proportion of franchised-and-managed hotels among the top four economy to mid-scale hotel networks in China. In 2017, GreenTree was the fourth largest economy to mid-scale hotel group in China in terms of number of hotel rooms according to the China Hospitality Association. The Company has built a strong suite of brands including its flagship "GreenTree Inns" brand as a result of its long-standing dedication to the hospitality industry in China, the consistent quality of its services, signature hotel designs, broad geographic coverage and convenient locations. GreenTree has positioned its brands to appeal to value- and quality-conscious business and leisure travelers.
For more information on GreenTree, please visit http://ir.998.com
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.
| [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.2726 on March 30, 2018 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm. |
| [2] "Tier 1 cities" refers to the term used by the National Bureau of Statistics of China and refer to Beijing, Shanghai, Shenzhen and Guangzhou. |
| [3] "Tier 2 cities" refers to the 32 major cities, other than Tier 1 cities, as categorized by the National Bureau of Statistics of China, including provincial capitals, administrative capitals of autonomous regions, direct-controlled municipalities and other major cities designated as "municipalities with independent planning" by the State Council. |
--Financial Tables and Operational Data Follow--
| GreenTree Hospitality Group Ltd. |
|||
| Unaudited Condensed Consolidated Balance Sheets |
|||
| December 31, |
March 31, |
March 31, |
|
| RMB |
RMB |
USD |
|
| ASSETS |
|||
| Current assets: |
|||
| Cash and cash equivalents |
161,963,665 |
1,227,699,122 |
195,724,121 |
| Short-term investment |
781,850,000 |
553,411,589 |
88,226,826 |
| Trading securities |
307,754,960 |
296,109,261 |
47,206,782 |
| Accounts receivable, net of allowance for doubtful |
53,882,894 |
64,786,226 |
10,328,448 |
| Amounts due from related parties |
3,248,692 |
3,665,050 |
584,295 |
| Prepaid rent |
4,292,472 |
2,706,095 |
431,415 |
| Inventories |
2,355,154 |
1,579,974 |
251,885 |
| Other current assets |
127,269,801 |
138,777,412 |
22,124,384 |
| Loans receivable, net |
6,600,000 |
9,960,000 |
1,587,858 |
| Deferred tax assets |
36,207,884 |
37,004,631 |
5,899,409 |
| Total current assets |
1,485,425,522 |
2,335,699,360 |
372,365,423 |
| Non-current assets: |
|||
| Amounts due from a related party |
2,600,000 |
2,600,000 |
414,501 |
| Restricted cash |
3,000,000 |
3,000,000 |
478,271 |
| Loan receivable, net |
- |
13,140,000 |
2,094,825 |
| Property and equipment, net |
96,669,251 |
94,212,311 |
15,019,659 |
| Intangible assets, net |
3,727,383 |
3,476,141 |
554,179 |
| Goodwill |
2,959,183 |
2,959,183 |
471,763 |
| Long-term investments |
122,508,832 |
121,601,796 |
19,386,187 |
| Other assets |
5,741,301 |
61,387,090 |
9,786,546 |
| Deferred tax assets |
33,351,457 |
33,831,687 |
5,393,567 |
| TOTAL ASSETS |
1,755,982,929 |
2,671,907,568 |
425,964,921 |
| LIABILITIES AND EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
7,293,341 |
11,990,281 |
1,911,533 |
| Advance from customers |
33,662,363 |
25,173,880 |
4,013,309 |
| Amounts due to related parties |
473,018 |
799,714 |
127,493 |
| Salary and welfare payable |
44,577,683 |
42,898,598 |
6,839,046 |
| Deferred rent |
2,916,205 |
2,974,506 |
474,206 |
| Deferred revenue |
109,101,986 |
115,220,777 |
18,368,902 |
| Accrued expenses and other current liabilities |
293,741,951 |
322,017,828 |
51,337,216 |
| Income tax payable |
103,830,578 |
120,564,418 |
19,220,804 |
| Dividends payable |
39,691,103 |
160,840,918 |
25,641,826 |
| Deferred tax liabilities |
27,745,951 |
25,618,132 |
4,084,133 |
| Total current liabilities |
663,034,179 |
828,099,052 |
132,018,468 |
| Deferred rent |
23,050,635 |
21,977,886 |
3,503,792 |
| Deferred revenue |
144,258,584 |
153,048,710 |
24,399,565 |
| Other long-term liabilities |
73,937,277 |
75,710,666 |
12,070,061 |
| Deferred tax liabilities |
5,797,260 |
5,087,072 |
810,999 |
| Unrecognized tax benefits |
113,299,633 |
117,050,785 |
18,660,649 |
| Total liabilities |
1,023,377,568 |
1,200,974,171 |
191,463,534 |
| Shareholders' equity: |
|||
| Class A ordinary shares |
160,189,926 |
217,421,867 |
34,662,160 |
| Class B ordinary shares |
140,696,841 |
115,534,210 |
18,418,871 |
| Additional paid-in capital |
212,309,734 |
989,409,918 |
157,735,216 |
| Retained earnings |
223,134,889 |
152,492,832 |
24,310,945 |
| Accumulated other comprehensive loss |
(4,086,149) |
(4,256,031) |
(678,511) |
| Total GreenTree Hospitality Group Ltd. |
732,245,241 |
1,470,602,796 |
234,448,681 |
| Noncontrolling interests |
360,120 |
330,601 |
52,706 |
| Total shareholders' equity |
732,605,361 |
1,470,933,397 |
234,501,387 |
| TOTAL LIABILITIES AND |
1,755,982,929 |
2,671,907,568 |
425,964,921 |
| GreenTree Hospitality Group Ltd. |
|||
| Unaudited Condensed Consolidated Statements of Comprehensive Income |
|||
| Quarter Ended |
|||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
|
| RMB |
RMB |
USD |
|
| Revenues |
|||
| Leased-and-operated hotels |
41,762,816 |
44,175,458 |
7,042,607 |
| Franchised-and-managed hotels |
112,236,364 |
143,868,763 |
22,936,065 |
| Membership fees |
12,267,607 |
16,899,200 |
2,694,130 |
| Total revenues |
166,266,787 |
204,943,421 |
32,672,802 |
| Operating cost and expenses |
|||
| Hotel operating costs |
(57,034,812) |
(65,111,072) |
(10,380,237) |
| Selling and marketing expenses |
(9,653,945) |
(11,349,067) |
(1,809,308) |
| General and administrative expenses |
(18,434,930) |
(20,400,857) |
(3,252,376) |
| Other operating expenses |
(852,735) |
(143,262) |
(22,839) |
| Total operating cost and expenses |
(85,976,422) |
(97,004,258) |
(15,464,760) |
| Other operating income |
344,499 |
13,825,401 |
2,204,094 |
| Income from operations |
80,634,864 |
121,764,564 |
19,412,136 |
| Interest income and other, net |
6,735,011 |
4,703,862 |
749,906 |
| Gains (losses) from trading securities |
11,582,052 |
(5,173,627) |
(824,798) |
| Other expense, net |
(40,966) |
- |
- |
| Income before income taxes |
98,910,961 |
121,294,799 |
19,337,244 |
| Income tax expense |
(23,837,405) |
(30,218,421) |
(4,817,527) |
| Income before share of loss in equity |
75,073,556 |
91,076,378 |
14,519,717 |
| Share of loss in equity investees, net of tax |
(565,525) |
(907,036) |
(144,603) |
| Net income |
74,508,031 |
90,169,342 |
14,375,114 |
| Net loss attributable to noncontrolling interests |
28,118 |
29,519 |
4,706 |
| Net income attributable to ordinary |
74,536,149 |
90,198,861 |
14,379,820 |
| Net earnings per share |
|||
| Class A ordinary share-basic and diluted |
0.82 |
0.98 |
0.16 |
| Class B ordinary share-basic and diluted |
0.82 |
0.98 |
0.16 |
| Net earnings per ADS |
|||
| Class A ordinary share-basic and diluted |
0.82 |
0.98 |
0.16 |
| Class B ordinary share-basic and diluted |
0.82 |
0.98 |
0.16 |
| Weighted average shares outstanding |
|||
| Class A ordinary share-basic and diluted |
48,635,252 |
50,856,151 |
50,856,151 |
| Class B ordinary share-basic and diluted |
42,716,957 |
40,949,391 |
40,949,391 |
| Other comprehensive income, net of tax |
|||
| -Foreign currency translation adjustments |
(1,152,244) |
(169,882) |
(27,083) |
| Comprehensive income, net of tax |
73,355,787 |
89,999,460 |
14,348,031 |
| Comprehensive loss attributable to |
28,118 |
29,519 |
4,706 |
| Comprehensive income attributable to |
73,383,905 |
90,028,979 |
14,352,737 |
| GreenTree Hospitality Group Ltd. |
||||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows |
||||||||||
| Quarter Ended |
||||||||||
| March 31, |
March 31, |
March 31, |
||||||||
| 2017 |
2018 |
2018 |
||||||||
| RMB |
RMB |
USD |
||||||||
| Operation activities: |
||||||||||
| Net income |
74,508,031 |
90,169,342 |
14,375,114 |
|||||||
| Adjustments to reconcile net income to |
||||||||||
| Depreciation and amortization |
6,558,915 |
5,394,502 |
860,011 |
|||||||
| Share of loss in equity method investments |
565,525 |
907,036 |
144,603 |
|||||||
| Interest income |
(3,050,000) |
(4,703,862) |
(749,906) |
|||||||
| Bad debt expense |
573,272 |
319,258 |
50,897 |
|||||||
| (Gains) losses from trading securities |
(11,582,052) |
5,173,627 |
824,798 |
|||||||
| Loss on disposal of property and equipment |
852,736 |
- |
- |
|||||||
| Foreign exchange (gain) loss |
(923,501) |
725,206 |
115,615 |
|||||||
| Share-based compensation |
- |
159,839 |
25,482 |
|||||||
| Changes in operating assets and liabilities: |
||||||||||
| Restricted cash |
7,200,000 |
- |
- |
|||||||
| Accounts receivable |
(10,705,600) |
(11,222,590) |
(1,789,145) |
|||||||
| Prepaid rent |
3,968,362 |
1,586,377 |
252,906 |
|||||||
| Inventories |
217,476 |
775,180 |
123,582 |
|||||||
| Amounts due from related parties |
2,254,024 |
(416,358) |
(66,377) |
|||||||
| Other current assets |
(2,789,799) |
(6,803,749) |
(1,084,678) |
|||||||
| Other assets |
1,728,263 |
- |
- |
|||||||
| Accounts payable |
1,314,586 |
4,696,940 |
748,803 |
|||||||
| Amounts due to related parties |
2,695,971 |
326,696 |
52,083 |
|||||||
| Salary and welfare payable |
(2,818,801) |
(1,679,085) |
(267,686) |
|||||||
| Deferred revenue |
16,892,977 |
14,908,917 |
2,376,832 |
|||||||
| Advance from customers |
3,463,721 |
(8,488,483) |
(1,353,264) |
|||||||
| Accrued expenses and other current liabilities |
12,280,946 |
4,083,287 |
650,972 |
|||||||
| Income tax payable |
15,003,494 |
19,733,840 |
3,146,038 |
|||||||
| Unrecognized tax benefits |
(450,013) |
3,751,152 |
598,022 |
|||||||
| Deferred rent |
(5,208,048) |
(1,014,448) |
(161,727) |
|||||||
| Other long-term liabilities |
(9,038,094) |
1,773,389 |
282,720 |
|||||||
| Deferred taxes |
35,692 |
(4,114,984) |
(656,025) |
|||||||
| Net cash provided by operating activities |
103,548,083 |
116,041,029 |
18,499,670 |
|||||||
| Investing activities: |
||||||||||
| Purchases of property and equipment |
(4,759,726) |
(58,332,109) |
(9,299,510) |
|||||||
| Purchases of short-term investments |
- |
(516,561,589) |
(82,352,069) |
|||||||
| Proceeds from short-term investments |
- |
745,000,000 |
118,770,526 |
|||||||
| Proceeds from disposal of property and |
1,600,000 |
- |
- |
|||||||
| Purchases of trading securities |
(31,142,698) |
(4,795,838) |
(764,569) |
|||||||
| Proceeds from disposal of trading securities |
20,729,356 |
11,267,910 |
1,796,370 |
|||||||
| Loan to a related party |
(1,000,000) |
- |
- |
|||||||
| Loan to franchisees |
(3,500,000) |
(20,000,000) |
(3,188,470) |
|||||||
| Repayment from a franchisee |
- |
3,500,000 |
557,982 |
|||||||
| Net cash (used in) provided by investing |
(18,073,068) |
160,078,374 |
25,520,260 |
|||||||
| Financing activities: |
||||||||||
| Distribution to the shareholders |
- |
(39,691,103) |
(6,327,696) |
|||||||
| Income tax paid related to the above |
- |
(3,000,000) |
(478,271) |
|||||||
| Increase in restricted cash |
(875,000,000) |
- |
- |
|||||||
| Proceeds from IPO, net of capitalized |
- |
833,202,245 |
132,832,039 |
|||||||
| Net cash (used in) provided by financing |
(875,000,000) |
790,511,142 |
126,026,072 |
|||||||
| Effect of exchange rate changes on cash and |
(228,741) |
(895,088) |
(142,698) |
|||||||
| Net increase in cash and cash equivalents |
(789,753,726) |
1,065,735,457 |
169,903,304 |
|||||||
| Cash and cash equivalents at the beginning |
896,782,935 |
161,963,665 |
25,820,817 |
|||||||
| Cash and cash equivalents at the end of the year |
107,029,209 |
1,227,699,122 |
195,724,121 |
|||||||
| Supplemental disclosure of cash flow |
||||||||||
| Income taxes paid |
(9,283,301) |
(14,599,565) |
(2,327,514) |
|||||||
| GreenTree Hospitality Group Ltd. |
||||
| Unaudited Reconciliation of GAAP and Non-GAAP Results |
||||
| Quarter Ended |
||||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
||
| RMB |
RMB |
USD |
||
| Net income |
74,508,031 |
90,169,342 |
14,375,114 |
|
| Deduct: |
||||
| Other operating income |
344,499 |
13,825,401 |
2,204,094 |
|
| Interest income and other, net |
6,735,011 |
4,703,862 |
749,906 |
|
| Gains from trading securities |
11,582,052 |
- |
- |
|
| Add: |
||||
| Other operating expenses |
852,735 |
143,262 |
22,839 |
|
| Income tax expense |
23,837,405 |
30,218,421 |
4,817,527 |
|
| Share of loss in equity investees, net of tax |
565,525 |
907,036 |
144,603 |
|
| Share-based compensation |
- |
159,839 |
25,482 |
|
| Depreciation and amortization |
6,558,915 |
5,394,502 |
860,011 |
|
| Losses from trading securities |
- |
5,173,627 |
824,798 |
|
| Other expense, net |
40,966 |
- |
- |
|
| Adjusted EBITDA (Non-GAAP) |
87,702,015 |
113,636,766 |
18,116,374 |
|
| Quarter Ended |
||||
| March 31, 2017 |
March 31, 2018 |
March 31, 2018 |
||
| RMB |
RMB |
USD |
||
| Net income |
74,508,031 |
90,169,342 |
14,375,114 |
|
| Deduct: |
||||
| Government subsidies (net of 25% tax) |
38 |
10,236,002 |
1,631,859 |
|
| Gains from trading securities (net of 25% tax) |
8,686,539 |
- |
- |
|
| Add: |
||||
| Share-based compensation |
- |
159,839 |
25,482 |
|
| Losses from trading securities (net of 25% tax) |
- |
3,880,220 |
618,598 |
|
| Other expense (net of 25% tax) |
30,725 |
- |
- |
|
| Core net income (Non-GAAP) |
65,852,179 |
83,973,399 |
13,387,335 |
|
Operational Data
| As of March 31, 2017 |
As of March 31, 2018 |
|
| Total hotels in operation: |
1,964 |
2,354 |
| Leased and owned hotels |
30 |
26 |
| Franchised hotels |
1,934 |
2,328 |
| Total hotel rooms in operation |
168,579 |
195,552 |
| Leased and owned hotels |
3,829 |
3,301 |
| Franchised hotels |
164,750 |
192,251 |
| Number of cities |
233 |
266 |
| Quarter Ended |
||
| March 31, 2017 |
March 31, 2018 |
|
| Occupancy rate (as a percentage) |
||
| Leased and owned hotels |
59.40% |
60.50% |
| Franchised hotels |
78.10% |
79.60% |
| Blended |
77.60% |
79.20% |
| Average daily room rate (in RMB) |
||
| Leased and owned hotels |
168 |
193 |
| Franchised hotels |
152 |
155 |
| Blended |
152 |
156 |
| RevPAR (in RMB) |
||
| Leased and owned hotels |
100 |
117 |
| Franchised hotels |
119 |
124 |
| Blended |
118 |
124 |
Hotel breakdown by segment
| Number of Hotels in Operation |
Number of Hotel Rooms in Operation |
||||||
| As of |
As of |
As of |
As of |
||||
| Economy hotels |
257 |
287 |
14,060 |
15,810 |
|||
| Vatica |
104 |
111 |
7,704 |
8,280 |
|||
| Shell |
153 |
176 |
6,356 |
7,530 |
|||
| Mid-scale |
1,982 |
2,012 |
171,041 |
173,456 |
|||
| GreenTree Inn |
1,733 |
1,755 |
151,154 |
152,821 |
|||
| GreenTree Alliance |
249 |
257 |
19,887 |
20,635 |
|||
| Business to |
50 |
55 |
5,706 |
6,286 |
|||
| GreenTree Eastern |
50 |
55 |
5,706 |
6,286 |
|||
| Total |
2,289 |
2,354 |
190,807 |
195,552 |
|||
For more information, please contact:
GreenTree
Ms. Selina Yang
Phone: +86-21-3617-4886*7999
E-mail: ir@998.com
http://ir.998.com
Christensen
In Hong Kong
Ms. Karen Hui
Phone: +852-9266-4140
E-mail: khui@christensenIR.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@ChristensenIR.com
View original content:http://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-quarter-2018-financial-results-300648342.html