GreenTree Hospitality Group Ltd. Reports Third Quarter of 2025 Financial Results | GHG Stock News

Total revenues decreased by 15.0% year over year to RMB303.6 million (US$42.6 million)[1].Income from operations was RMB70.1 million (US$9.8 million)[1] compared to RMB106.4 million for the third quarter of 2024. Net income was RMB60.3 million (US$8.5 million)[1] compared to RMB65.2 million for the third quarter of 2024.Adjusted EBITDA (non-GAAP) [2] decreased 6.1% year over year to RMB115.0 million (US$16.1 million)[1]Cash from operations increased 3.8% year over year to RMB144.5 million (US$20.3 million) [1]SHANGHAI, Dec. 23, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the third quarter of 2025.Third Quarter of 2025 Operational HighlightsHotels A total of 4,533 hotels with 323,510 hotel rooms were in operation as of September 30, 2025.The Company opened 41 hotels and had a pipeline of 1,248 hotels contracted for or under development as of September 30, 2025.The average daily room rate was RMB173, a decrease of 4.1% from RMB181 in the third quarter of 2024.The occupancy rate was 71.3%, decreased from 74.6% in the third quarter of 2024.Revenue per available room, or RevPAR, was RMB124, an 8.4% year-over-year decrease.[1]. The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1190 on September 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/h10/20251006/.[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, other general expenses, and other expense, net, 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 (non-GAAP) 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, income tax expenses related to dividend distribution, 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).[4]. Each ADS represents one ordinary share.RestaurantsA total of 185 restaurants were in operation as of September 30, 2025.The AC (average check) was RMB37, a 19.3% year-over-year decrease.The ADT (average daily tickets) was 100, down from 106 in the third quarter of 2024.The ADS (average daily sales per store) was RMB3,714, a decrease of 24.1% from RMB4,891 in the third quarter of 2024.Third Quarter of 2025 Financial ResultsQuarter EndedSeptember 30, 2024RMBRMBRMBRMBHotelRestaurantEliminationTotalRevenuesLeased-and-operated revenues118,159,12541,117,277159,276,402Franchised-and-managed revenues167,928,1271,757,933169,686,060Wholesales and others796,48827,766,790-544,29028,018,988Total revenues286,883,74070,642,000-544,290356,981,450Quarter EndedSeptember 30, 2025RMBRMBRMBRMBUS$HotelRestaurantEliminationTotalTotalRevenuesLeased-and-operated revenues115,597,16526,516,648-34,568142,079,24519,957,753Franchised-and-managed revenues138,566,9051,848,818140,415,72319,724,080Wholesales and others311,83121,018,623-219,98621,110,4682,965,370Total revenues254,475,90149,384,089-254,554303,605,43642,647,203Nine Month EndedSeptember 30, 2024RMBRMBRMBRMBHotelRestaurantEliminationTotalRevenuesLeased-and-operated revenues346,552,738130,792,112477,344,850Franchised-and-managed revenues476,898,4095,527,686482,426,095Wholesales and others2,881,69477,272,388-1,004,49379,149,589Total revenues826,332,841213,592,186-1,004,4931,038,920,534Nine Month EndedSeptember 30, 2025RMBRMBRMBRMBUS$HotelRestaurantEliminationTotalTotalRevenuesLeased-and-operated revenues310,356,69285,575,101-241,982395,689,81155,582,218Franchised-and-managed revenues424,320,0985,025,292429,345,39060,309,789Wholesales and others1,790,12956,530,382-663,79157,656,7208,098,991Total revenues736,466,919147,130,775-905,773882,691,921123,990,998Total revenues were RMB303.6 million (US$42.6 million)[1]，a 15.0% year-over-year decrease.Hotel revenues were RMB254.5 million (US$35.7 million)[1], a 11.3% year-over-year decrease due to an 8.4% year-over-year decrease in RevPAR and the closure of 7 L&O hotels since the fourth quarter of 2024 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings.Restaurant revenues were RMB49.4 million (US$6.9 million)[1], a 30.1% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores.Total revenues for the first nine months of 2025 were RMB882.7 million (US$124.0 million)[1], a 15.0% year-over-year decrease.Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB142.1 million (US$20.0 million)[1], a 10.8% year-over-year decrease.Total revenues from L&O hotels were RMB115.6 million (US$16.2 million)[1], a 2.2% year-over-year decrease. The decrease was primarily attributable to a 7.9% year-over-year decrease in L&O hotels' RevPAR, the closure of 7 L&O hotels since the fourth quarter of 2024, offset by revenues from the opening of 4 L&O hotels since the fourth quarter of 2024.Total revenues from L&O restaurants were RMB26.5 million (US$3.7 million)[1], a 35.5% year-over-year decrease, mainly due to the closure of 8 L&O restaurants since the fourth quarter of 2024 and the year-over-year decrease in ADS.Total revenues from L&O hotels and restaurants for the first nine months of 2025 were RMB395.7 million (US$55.6 million)[1], a 17.1% year-over-year decrease.Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB140.4 million (US$19.7 million)[1], a 17.2% year-over-year decrease.Total revenues from F&M hotels were RMB138.6 million (US$19.5 million)[1], a 17.5% year-over-year decrease, primarily due to a temporary waiver of RMB15 million of management fees for hotels facing business difficulties. Excluding this temporary fee waiver, revenues from F&M hotels decreased 8.6% year over year, due to an 8.3% decrease in F&M hotels' RevPAR.Total revenues from F&M restaurants were RMB1.8 million (US$0.3 million)[1], a 5.2% year-over-year increase, mainly due to the opening of 28 franchised restaurants since the fourth quarter of 2024.Total revenues from F&M hotels and restaurants for the first nine months of 2025 were RMB429.3 million (US$60.3 million)[1], a 11.0% year-over-year decrease.Total revenues from wholesale and others were RMB21.1 million (US$3.0 million)[1], a 24.7% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.Total revenues from wholesale and others for the first nine months of 2025 were RMB57.7 million (US$8.1 million)[1], a 27.2% year-over-year decrease.Total operating costs and expensesQuarter EndedSeptember 30, 2024RMBRMBRMBRMBHotelRestaurantEliminationTotalOperating costs and expensesOperating costs155,278,79653,365,650-475,648208,168,798Selling and marketing expenses12,899,4112,881,942-68,64215,712,711General and administrative expenses32,309,0797,023,44939,332,528Other operating expenses1,363,201654,7772,017,978Other general expensesTotal operating costs and expenses201,850,48763,925,818-544,290265,232,015Quarter EndedSeptember 30, 2025RMBRMBRMBRMBUS$HotelRestaurantEliminationTotalTotalOperating costs and expensesOperating costs134,346,84443,015,455-254,554177,107,74524,878,178Selling and marketing expenses11,314,2332,133,81613,448,0491,889,036General and administrative expenses22,001,3732,180,54624,181,9193,396,814Other operating expenses5,652,4331,158,6236,811,056956,743Other general expenses19,483,57619,483,5762,736,842Total operating costs and expenses192,798,45948,488,440-254,554241,032,34533,857,613Nine Month EndedSeptember 30, 2024RMBRMBRMBRMBHotelRestaurantEliminationTotalOperating costs and expensesOperating costs450,888,078170,642,273-916,517620,613,834Selling and marketing expenses41,576,9258,473,078-87,97549,962,028General and administrative expenses119,706,27722,802,128142,508,405Other operating expenses2,301,4452,136,7264,438,171Other general expenses11,756,53111,756,531Total operating costs and expenses626,229,256204,054,205-1,004,492829,278,969Nine Month EndedSeptember 30, 2025RMBRMBRMBRMBUS$HotelRestaurantEliminationTotalTotalOperating costs and expensesOperating costs429,606,985127,143,822-905,774555,845,03378,079,089Selling and marketing expenses34,279,1776,698,30640,977,4835,756,073General and administrative expenses93,293,49412,655,909105,949,40314,882,624Other operating expenses9,942,6721,600,92011,543,5921,621,519Other general expenses31,094,88731,094,8874,367,873Total operating costs and expenses598,217,215148,098,957-905,774745,410,398104,707,178Operating costs were RMB177.1 million (US$24.9 million)[1], a 14.9% year-over-year decrease.Operating costs of the hotel business were RMB134.3 million (US$18.9 million)[1], a 13.5% year-over-year decrease. The decrease was mainly attributable to lower rental resulting from the closure of L&O hotels.Operating costs of the restaurant business in the third quarter of 2025 were RMB43.0 million (US$6.0 million)[1], a 19.4% year-over-year decrease, due to the closure of L&O stores.For the first nine months of 2025, operating costs were RMB555.8 million (US$78.1 million)[1], a 10.4% year-over-year decrease.Selling and marketing expenses were RMB13.4 million (US$1.9 million)[1], a 14.4% year-over-year decrease.Selling and marketing expenses of the hotel business were RMB11.3 million (US$1.6 million)[1], a 12.3% year-over-year decrease. The decrease was mainly due to lower staff related costs.Selling and marketing expenses of the restaurant business were RMB2.1 million (US$0.3 million)[1], a 26.0% year-over-year decrease, mainly attributable to lower travelling expenses and lower sales-channel commissions.For the first nine months of 2025, selling and marketing expenses were RMB41.0 million (US$5.8 million)[1], a 18.0% year-over-year decrease.General and administrative, or G&A expenses were RMB24.2 million (US$3.4 million)[1], a 38.5% year-over-year decrease.G&A expenses of the hotel business were RMB22.0 million (US$3.1 million)[1], a 31.9% year-over-year decrease. The decrease was mainly attributable to lower bad debt provisions for long-aged account receivables, lower staff related expenses, and lower consulting fees.G&A expenses of the restaurant business were RMB2.2 million (US$0.3 million)[1], a 69.0% year-over-year decrease, mainly due to lower staff related expenses, lower office expenses, and a decrease in depreciation and amortization and bad debt provisions for long-aged account receivables.General and administrative expenses for the first nine months of 2025 were RMB105.9 million (US$14.9 million)[1], a 25.7% year-over-year decrease.Other general expenses were RMB19.5 million (US$2.7 million)[1], entirely attributable to provisions for loan receivables related to franchisee loans.Other general expenses for the first nine months of 2025 were RMB31.1 million (US$4.4 million)[1], up from RMB11.8 million one year ago.Gross profit was RMB126.5 million (US$17.8 million)[1], a year-over-year decrease of 15.0%. Gross margin was 41.7%, the same as the third quarter of 2024. Gross profit of the hotel business was RMB120.1 million (US$16.9 million)[1], an 8.7% year-over-year decrease. Gross profit of the restaurant business was RMB6.4 million (US$0.9 million)[1], a 63.1% year-over-year decrease.Income from operations in the third quarter of 2025 was RMB70.1 million (US$9.8 million)[1], compared to income from operations of RMB106.4 million in the third quarter of 2024, with a margin of 23.1%. The lower profitability was due to the exemption of fees from franchisees, the loss from disposal of L&O hotels, and bad debt provisions. Excluding these, the adjusted income from operations decreased 1.9% year over year, and the margin for the third quarter of 2025 was 34.6%, up from 31.5% one year ago, thanks to lower operating costs and expenses.Income from operations of the hotel business was RMB69.1 million (US$9.7 million)[1], compared to income from operations of RMB99.5 million in the third quarter of 2024, with a margin of 27.2%. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business increased 3.6% year over year, and the margin for the third quarter of 2025 was 40.5%, up from 36.8% one year ago, due to lower operating costs and expenses.Income from operations of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to income from operations of RMB6.9 million in the third quarter of 2024, with a margin of 1.9%.Income from operations for the first nine months of 2025 was RMB155.5 million (US$21.8 million)[1] compared to income from operations of RMB263.1 million in 2024, with a margin of 17.6%.Net income in the third quarter of 2025 was RMB60.3 million (US$8.5 million)[1], compared to a net income of RMB65.2 million in the third quarter of 2024, and net margin was 19.9%. The decrease was mainly due to the decline in income from operations, which were negatively impacted by the above-mentioned items, and foreign exchange losses. Excluding these one-time or non-operation impacts, adjusted net income was RMB90.5 million, an increase of 5.7%, with a margin of 28.4%.Net income of the hotel business was RMB59.5 million (US$8.4 million)[1], up from net income of RMB58.6 million in the third quarter of 2024, and net margin was 23.4%. Excluding the impact of the above-mentioned items, which were composed of impacts by exemption of fees from franchisees in 2025Q3, the disposal of L&O hotels, the bad debt provisions, as well as foreign exchange losses, the adjusted net income of hotel business was RMB89.6 million, an increase of 13.4% year over year, with a margin of 33.3%.Net income of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to a net income of RMB6.6 million in the third quarter of 2024, and net margin was 1.8%.Net income for the first nine months of 2025 was RMB253.1 million (US$35.6 million)[1], compared to a net income of RMB184.8 million in 2024, and net margin was 28.7%.Adjusted EBITDA (non-GAAP)[2] in the third quarter of 2025 was RMB115.0 million (US$16.1 million)[1], a year-over-year decrease of 6.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 37.9%, compared to 34.3% a year ago, primarily due to lower operating costs and disciplined expense management.Adjusted EBITDA (non-GAAP)[2] of the hotel business in the third quarter of 2025 was RMB110.2 million (US$15.5 million)[1], a year-over-year decrease of 0.3%, with a margin of 43.3%, up from 38.5% one year ago.Adjusted EBITDA (non-GAAP)[2] of the restaurant business in the third quarter of 2025 was RMB4.8 million (US$0.7 million)[1], a year-over-year decrease of 52.5%.Adjusted EBITDA (non-GAAP)[2] for the first nine months of 2025 was RMB258.7 million (US$36.3 million)[1], a year-over-year decrease of 17.9%.Core net income (non-GAAP)[3] in the third quarter of 2025 was RMB78.0 million (US$11.0 million)[1], a year-over-year decrease of 16.5%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 25.7%, compared to 26.2% one year ago.Core net income (non-GAAP)[3] of the hotel business in the third quarter of 2025 was RMB77.2 million (US$10.8 million)[1], a year-over-year decrease of 11.2%, with a margin of 30.3%, the same as one year ago.Core net income (non-GAAP)[3] of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], a year-over-year decrease of 86.7%.Core net income (non-GAAP)[3] for the first nine months of 2025 was RMB158.0 million (US$22.2 million)[1], a year-over-year decrease of 29.6%.Earnings per American Depositary Share, or ADS[4], (basic and diluted) were RMB0.60 (US$0.08)[1], decreased from RMB0.65 one year ago.Earnings per American Depositary Share, or ADS[4], (basic and diluted) for the first nine months of 2025 were RMB2.53 (US$0.36)[1], decreased from RMB1.83 one year ago.Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.77 (US$0.11)[1], decreased from RMB0.92 a year ago.Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB1.56 (US$0.22)[1] for the first nine months of 2025, a decrease from RMB2.21 a year ago.Cash flow: Operating Cash inflow was RMB144.5 million (US$20.3 million)[1], as a result of income from operations. Investing cash outflow for the third quarter of 2025 was RMB167.4 million (US$23.5 million)[1], primarily due to an advance payment for the purchase of strategic assets. Financing cash outflow was nil (US$0.0 million)[1] in the third quarter.Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of September 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,014.6 million (US$283.0 million)[1],compared to RMB2,034.9 million as of June 30, 2025. The decrease of RMB20.3 million was mainly due to an advance payment for the purchase of strategic assets, and was offset by cash from operating activities.Guidance Based on our performance in the first nine months of this year and considering the impact from the closure of certain L&O hotels due to lease expirations and business strategy adjustments, we maintain our previous revenue guidance for the hotel business to be in the range of -10% to -13% year-over-year.Use of Non-GAAP Financial MeasuresWe 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 September 30, 2025, GreenTree had a total number of 4,533 hotels and 185 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 http://ir.998.comSafe Harbor StatementsThis 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 September 30 September 30 2,0242,0252,025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents1,490,235,5621,638,695,772230,186,230 Restricted cash16,096,47614,733,0542,069,540 Short-term investments10,47525,7473,617 Accounts receivable, net of allowance99,688,034105,663,74414,842,498 Amounts due from related parties21,839,92921,184,0992,975,713 Inventories6,881,4706,774,539951,614 Other current assets114,898,590107,569,09615,110,140 Loans receivable, net85,463,46746,212,0046,491,362 Total current assets1,835,114,0031,940,858,055272,630,714 Non-current assets: Amounts due from a related party110,000,000110,000,00015,451,608 Restricted cash18,869,90018,869,9002,650,639 Long-term time deposits285,570,000285,570,00040,113,780 Loans receivable, net15,372,23813,842,7561,944,480 Property and equipment, net649,528,210622,995,14887,511,609 Intangible assets, net75,677,55173,999,66410,394,671 Goodwill96,074,46896,074,46813,495,500 Long-term investments184,024,217208,539,97629,293,437 Operating lease right-of-use assets1,328,582,4191,297,598,192182,272,537 Other assets102,545,847273,179,69738,373,325 Deferred tax assets245,760,095241,431,97633,913,749 TOTAL ASSETS4,947,118,9485,182,959,832728,046,049 LIABILITIES AND EQUITY Current liabilities:Long-term bank loans, current portion 400,000400,00056,188 Accounts payable56,488,40549,486,4576,951,321 Advance from customers25,684,43727,019,3733,795,389 Amounts due to related parties17,462,17618,341,6492,576,436 Salary and welfare payable78,234,58274,551,05110,472,124 Deferred revenue175,046,178170,182,79023,905,435 Accrued expenses and other current liabilities481,910,291535,728,66375,253,359 Income tax payable88,876,49791,412,79912,840,680 Operating lease liabilities, current241,363,244217,018,05530,484,345 Total current liabilities1,165,465,8101,184,140,837166,335,277 Long-term bank loans256,200,000256,000,00035,960,107 Deferred revenue176,353,919147,187,98920,675,374 Other long-term liabilities120,975,955123,126,89617,295,533 Operating lease liabilities, non-current1,215,776,0751,228,789,575172,607,048 Deferred tax liabilities79,670,90869,755,9149,798,555 Unrecognized tax benefits440,072,214441,868,75162,068,935 TOTAL LIABILITIES3,454,514,8813,450,869,962484,740,829Shareholders' equity:Class A ordinary shares222,587,070222,587,07031,266,620Class B ordinary shares115,534,210115,534,21016,228,994Treasury Stock-37,043,116-48,049,536-6,749,478Additional paid-in capital1,609,972,2721,609,972,272226,151,464Retained earnings (Accumulated losses)-458,337,569-202,062,349-28,383,530Accumulated other comprehensive income6,033,2633,426,086481,259Total GreenTree Hospitality Group Ltd. shareholders' equity1,458,746,1301,701,407,753238,995,329Non-controlling interests33,857,93730,682,1174,309,891Total shareholders' equity1,492,604,0671,732,089,870243,305,220TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY4,947,118,9485,182,959,832728,046,049 GreenTree Hospitality Group Ltd.Unaudited Condensed Consolidated Statements of Comprehensive IncomeQuarter EndedNine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025RMBRMBUS$RMBRMBUS$RevenuesLeased-and-operated revenues159,276,402142,079,24519,957,753477,344,850395,689,81155,582,218Franchised-and-managed revenues169,686,060140,415,72319,724,080482,426,095429,345,39060,309,789Wholesales and others28,018,98821,110,4682,965,37079,149,58957,656,7208,098,991Total revenues356,981,450303,605,43642,647,2031,038,920,534882,691,921123,990,998Operating costs and expensesOperating costs-208,168,798-177,107,745-24,878,178-611,613,834-555,845,033-78,079,089Selling and marketing expenses-15,712,711-13,448,049-1,889,036-49,962,028-40,977,483-5,756,073General and administrative expenses-39,332,528-24,181,919-3,396,814-151,508,405-105,949,403-14,882,624Other operating expenses-2,017,978-6,811,056-956,743-4,438,171-11,543,592-1,621,519Other general expenses-19,483,576-2,736,842-11,756,531-31,094,887-4,367,873Total operating costs and expenses-265,232,015-241,032,345-33,857,613-829,278,969-745,410,398-104,707,178Other operating income14,654,0687,498,6081,053,32353,422,30418,260,9562,565,101Income from operations106,403,50370,071,6999,842,913263,063,869155,542,47921,848,921Interest income and other, net7,488,0349,850,3401,383,66927,438,53328,413,7663,991,258Interest expense-116,161-1,730,823-243,127-4,485,219-5,548,738-779,427Gains (losses) from investment in equity securities10,015,2294,643,770652,307-5,409,42629,444,5654,136,054Other income, net-34,653,121-6,293,033-883,977-17,862,09791,036,41812,787,810Income before income taxes89,137,48476,541,95310,751,785262,745,660298,888,49041,984,616Income tax expense-24,330,641-18,950,376-2,661,944-77,512,335-49,134,106-6,901,827Income (loss) before share of gains in equity investees64,806,84357,591,5778,089,841185,233,325249,754,38435,082,789Share of loss/(income) in equity investees, net of tax405,0642,741,144385,046-464,6933,345,017469,872Net income(loss)65,211,90760,332,7218,474,887184,768,632253,099,40135,552,661Net loss/(income) attributable to non-controlling interests288,968480,61267,5111,319,1473,175,820446,105Net income attributable to ordinary shareholders65,500,87560,813,3338,542,398186,087,779256,275,22135,998,766Net earnings per shareClass A ordinary share-basic and diluted0.650.60.081.832.530.36Class B ordinary share-basic and diluted0.650.60.081.832.530.36Net earnings per ADS[4]Class A ordinary share-basic and diluted0.650.60.081.832.530.36Class B ordinary share-basic and diluted0.650.60.081.832.530.36Weighted average shares outstandingClass A ordinary share-basic and diluted66,778,80966,134,83666,134,83666,780,00866,467,72366,467,723Class B ordinary share-basic and diluted34,762,90934,762,90934,762,90934,762,90934,762,90934,762,909Other comprehensive income, net of taxForeign currency translation adjustments6,463,594-12,270,580-1,723,638-1,642,157-2,607,177-366,228Comprehensive income, net of tax71,675,50148,062,1416,751,249183,126,475250,492,22435,186,433Comprehensive loss/(income) attributable to non-controlling interests288,968480,61267,5111,319,1473,175,820446,105Comprehensive income (loss) attributable to ordinary shareholders71,964,46948,542,7536,818,760184,445,622253,668,04435,632,538 GreenTree Hospitality Group Ltd.Unaudited Hotel Business ResultsQuarter EndedNine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025RMBRMBUS$RMBRMBUS$RevenuesLeased-and-operated revenues118,159,125115,597,16516,237,837346,552,738310,356,69243,595,546Franchised-and-managed revenues167,928,127138,566,90519,464,378476,898,409424,320,09859,603,891Others796,488311,83143,8032,881,6941,790,129251,458Total revenues286,883,740254,475,90135,746,018826,332,841736,466,919103,450,895Operating costs and expensesHotel operating costs-155,278,796-134,346,844-18,871,589-450,888,078-429,606,985-60,346,535Selling and marketing expenses-12,899,411-11,314,233-1,589,301-41,576,925-34,279,177-4,815,168General and administrative expenses-32,309,079-22,001,373-3,090,514-119,706,277-93,293,494-13,104,859Other operating expenses-1,363,201-5,652,433-793,993-2,301,445-9,942,672-1,396,639Other general expenses-19,483,576-2,736,842-11,756,531-31,094,887-4,367,873Total operating costs and expenses-201,850,487-192,798,459-27,082,239-626,229,256-598,217,215-84,031,074Other operating income14,496,9427,458,1151,047,63551,347,34017,849,7842,507,344Income from operations99,530,19569,135,5579,711,414251,450,925156,099,48821,927,165Interest income and other, net7,467,2879,815,8791,378,82827,376,00528,318,8043,977,919Interest expense-115,851-1,706,980-239,778-4,484,909-5,476,179-769,234Gains (losses) from investment in equity securities10,015,2294,643,770652,306-769,74729,444,5654,136,053Other income, net-34,647,093-6,292,964-883,967-17,938,05491,059,84912,791,101Income before income taxes82,249,76775,595,26210,618,803255,634,220299,446,52742,063,004Income tax expense-24,053,937-18,884,574-2,652,700-76,155,862-48,735,389-6,845,819Income (loss) before share of gains in equity investees58,195,83056,710,6887,966,103179,478,358250,711,13835,217,185Share of loss/(income) in equity investees, net of tax405,0642,741,144385,046-464,6933,345,017469,872Net income(loss)58,600,89459,451,8328,351,149179,013,665254,056,15535,687,057GreenTree Hospitality Group Ltd.Unaudited Restaurant Business ResultsQuarter EndedNine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025RMBRMBUS$RMBRMBUS$RevenuesLeased-and-operated revenues41,117,27726,516,6483,724,772130,792,11285,575,10112,020,663Franchised-and-managed revenues1,757,9331,848,818259,7025,527,6865,025,292705,898Wholesales and others27,766,79021,018,6232,952,46877,272,38856,530,3827,940,776Total revenues70,642,00049,384,0896,936,942213,592,186147,130,77520,667,337Operating costs and expensesRestaurant operating costs-53,365,650-43,015,455-6,042,346-170,642,273-127,143,822-17,859,787Selling and marketing expenses-2,881,942-2,133,816-299,735-8,473,078-6,698,306-940,905General and administrative expenses-7,023,449-2,180,546-306,299-22,802,128-12,655,909-1,777,765Other operating expenses-654,777-1,158,623-162,751-2,136,726-1,600,920-224,880Total operating costs and expenses-63,925,818-48,488,440-6,811,131-204,054,205-148,098,957-20,803,337Other operating income157,12640,4935,6882,074,964411,17257,757Income from operations6,873,308936,142131,49911,612,945-557,010-78,243Interest income and other, net20,74634,4614,84162,52894,96213,339Interest expense-310-23,843-3,349-310-72,559-10,192Other income, net-6,028-69-10-33,122-23,431-3,291Income before income taxes6,887,716946,691132,98111,642,041-558,038-78,387Income tax expense-276,704-65,802-9,243-1,356,473-398,717-56,007Income (loss) before share of gains in equity investees6,611,012880,889123,73810,285,568-956,755-134,394Share of loss/(income) in equity investees, net of taxNet income(loss)6,611,012880,889123,73810,285,568-956,755-134,394 GreenTree Hospitality Group Ltd.Unaudited Condensed Consolidated Statements of Cash FlowsQuarter EndedNine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025RMBRMBUS$RMBRMBUS$Operating activities:Net (loss) income65,211,90860,332,7218,474,887184,768,634253,099,40135,552,661Depreciation and amortization28,690,95926,099,0913,666,11889,170,63578,795,29811,068,310Gains from disposal of a long-term investment-114,042,806-16,019,498Others non-cash expense(income)-1,588,624-2,741,144-385,046-5,904,430-3,345,017-469,872Noncash lease expense68,398,68250,999,6067,163,872205,628,129180,173,22825,308,783Loss from disposal of a subsidiary-4,925,221775,483108,931-5,764,903775,483108,931Bad debt expenses12,615,65119,733,2852,771,91834,383,72345,225,0226,352,721(Gains) losses and impairment on equity securities held-10,015,229-4,643,770-652,3075,409,426-29,444,565-4,136,054Loss (gains) on disposal of property, plant and equipment332,997276,29638,811-24,783,238467,06065,608Foreign exchange (gains) losses7,449,4034,237,778595,277-1,314,54810,127,4721,422,598Accounts receivable-5,363,1535,854,925822,436-13,092,304-20,377,565-2,862,420Inventories223,113494,54969,46915,112,676106,93115,021Amounts due from related parties2,188,419139,36819,5772,488,246572,99080,487Other current assets-6,330,20933,546,1814,712,204-1,245,2588,866,1261,245,417Other assets-2,775,493-192,983-27,108-1,474,535-9,548,953-1,341,333Accounts payable-7,758,061-1,610,758-226,262-20,318,304-9,902,317-1,390,970Amounts due to related parties788,9692,624,576368,672-615,685664,49893,341Salary and welfare payable-10,164,582-4,090,971-574,655-11,588,641-3,693,966-518,888Deferred revenue17,893,291-8,940,240-1,255,828-13,809,645-34,029,318-4,780,070Advance from customers-706,088-61,982-8,707-1,123,3751,425,038200,174Accrued expenses and other current liabilities35,754,7737,204,6181,012,02732,469,15753,524,7917,518,583Income tax payable20,169,6906,014,530844,85611,908,3672,515,010353,281Unrecognized tax benefits-4,844,361-3,365,434-472,740-11,040,4511,796,537252,358Operating lease liabilities-80,036,795-62,408,812-8,766,514-189,805,890-160,177,582-22,500,012Other long-term liabilities6,321,1313,623,270508,958-1,998,6982,150,941302,141Deferred taxes7,711,35710,604,6201,489,62221,677,657-6,405,741-899,809Net cash provided by operating activities139,242,527144,504,80320,298,468299,136,745249,317,99635,021,489Investing activities:Purchases of property, plant and equipment-8,771,704-29,290,174-4,114,366-28,965,630-48,647,716-6,833,504Proceeds from disposal of property, plant and equipment451,6604,114578140,184,760241,44833,916Payment for acquisition of minority equity966,000Purchases of a long-term investment -6,800,000-6,800,000Proceeds from disposal of a long-term investment109,036,38615,316,250Advances for purchases of property and equipment-135,480,304-19,030,805-160,515,267-22,547,446Purchases of short-term investments 7,8751,106-15,272-2,145Proceeds from short-term investments419,362,037Purchase of long-term time deposits-222,230,000Proceeds from disposal of subsidiaries1,307,5002,807,500Loan to related parties360,00050,569-270,000-265,000-37,224Repayment from related parties118,98216,713Loan to third parties-1,200,000Repayment of loan from third parties304,1115,900,000Loan to fanchisees-4,050,000-7,121,960-1,000,416-5,650,000-9,131,960-1,282,759Repayment from franchisees16,489,5804,133,925580,68967,466,80118,818,0182,643,351Net cash (used in) provided by investing activities-102,853-167,386,524-23,512,645370,605,468-90,360,381-12,692,848Financing activities:Distribution to the shareholders-760,321Repurchase of ordinary shares-300,122-300,122Repayment of short-term loans -117,000,000-200,000-28,094Proceeds from bank loans200,000,000Capital contribution from non-controlling interest holders-966,000-966,000Net cash provided by (used in) financing activities-1,266,12280,973,557-200,000-28,094Effect of exchange rate changes on cash and cash equivalents and restricted cash142,061-1,701,849-239,057-2,657,865-11,660,827-1,637,984Net (decrease) increase in cash and cash equivalents138,015,613-24,583,570-3,453,234748,057,905147,096,78820,662,563Cash and cash equivalents at the beginning of the period1,401,643,0041,696,882,296238,359,643791,600,7121,525,201,938214,243,846Cash and cash equivalents at the end of the period1,539,658,6171,672,298,726234,906,4091,539,658,6171,672,298,726234,906,409 GreenTree Hospitality Group Ltd.Unaudited Reconciliation of GAAP and Non-GAAP ResultsQuarter EndedNine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025RMBRMBUS$RMBRMBUS$Net income65,211,90860,332,7218,474,887184,768,634253,099,40135,552,661Deduct:Other operating income14,654,0687,498,6081,053,32353,422,30418,260,9562,565,101Interest income and other, net7,488,0349,850,3401,383,66927,438,53328,413,7663,991,258Gains from investment in equity securities10,015,2294,643,770652,30729,444,5654,136,054Share of gain in equity investees, net of tax405,0642,741,144385,0463,345,017469,872Other income, net91,036,41812,787,810Add:Other operating expenses2,017,9786,811,056956,7434,438,17111,543,5921,621,519Other general expenses19,483,5762,736,84211,756,53131,094,8874,367,873Income tax expenses24,330,64118,950,3762,661,94477,512,33549,134,1066,901,827Share of loss in equity investees, net of tax464,693Interest expenses116,1611,730,823243,1274,485,2195,548,738779,427Depreciation and amortization28,690,95926,099,0913,666,11889,170,63578,795,29811,068,310Losses from investment in equity securities5,409,426Other expense, net34,653,1216,293,033883,97717,862,097Adjusted EBITDA (Non-GAAP)[2]122,458,373114,966,81416,149,293315,006,904258,715,30036,341,522Quarter EndedNine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025RMBRMBUS$RMBRMBUS$Net income65,211,90860,332,7218,474,887184,768,634253,099,40135,552,661Deduct:Government subsidies (net of 25% tax)4,374,7503,857,357541,8404,844,6369,304,9981,307,065Gains from investment in equity securities (net of 25% tax)7,511,4224,643,770652,30729,444,5654,136,054Other income (net of 25% tax)96,788,01513,595,732Add:Share-based compensation15,66246,986Losses from investments in equity securities (net of 25% tax)4,057,070Other expense (net of 25% tax)25,989,8414,719,775662,98313,396,573One-time fees and expenses658,9811,713,989Other general expenses19,483,5762,736,84211,756,53131,094,8874,367,873Income tax expenses related to dividend distribution13,496,2402,000,000280,93813,496,2409,299,3001,306,265Core net income (Non-GAAP)[3]93,486,46078,034,94510,961,503224,391,387157,956,01022,187,948Core net income per ADS[4] (Non-GAAP)Class A ordinary share-basic and diluted0.920.770.112.211.560.22Class B ordinary share-basic and diluted0.920.770.112.211.560.22Hotel Operational Data September 30, 2024September 30, 2025Total hotels in operation:4,3364,533Leased and owned hotels5652Franchised hotels4,2804,481Total hotel rooms in operation316,461323,510Leased and owned hotels6,3676,155Franchised hotels310,094317,355Number of cities351356Quarter EndedSeptember 30, 2024September 30, 2025 Occupancy rate (as a percentage) Leased-and-operated hotels75.90 %70.90 % Franchised hotels74.60 %71.40 % Blended74.60 %71.30 % Average daily rate (in RMB) Leased-and-operated hotels258254 Franchised hotels179171 Blended181173RevPAR (in RMB) Leased-and-operated hotels196180 Franchised hotels133122 Blended135124Number of Hotels in OperationNumber of Hotel Rooms in OperationSeptember 30, 2024September 30, 2025September 30, 2024September 30, 2025 Mid-to-up-scale52757249,76353,108 GreenTree Eastern23423725,24525,143 Deepsleep Hotel 78534610 Gem911228,17811,162 Gya73726,0716,010 Vx1041079,1098,944Others18266261,239 Mid-scale2,9653,016230,580227,049 GreenTree Inn2,3362,391184,086186,236 GT Alliance49849537,36631,819 GreenTree Apartment23241,4951,545 Vatica1081067,6337,449 Economy hotels84494536,11843,353Shell84494536,11843,353Total4,3364,533316,461323,510Restaurant Operational DataSeptember 30, 2024September 30, 2025Total restaurants in operation:182185Leased and owned restaurants2214Franchised restaurants160171Number of cities5353Da Niang Dumplings159167Bellagio2318Quarter Ended2024 Q32025 Q3ADTLeased-and-operated restaurants188223Franchised restaurants8989Blended106100AC (in RMB) Leased-and-operated restaurants10079Franchised restaurants3330Blended4637ADS (in RMB) Leased-and-operated restaurants18,86017,556Franchised restaurants2,9502,628Blended4,8913,714For more information, please contact:GreenTreeMs. Selina YangPhone: +86-158-2166-6251E-mail: ir@998.comMs. Hannah ZhangPhone: +86-182-2560-8592E-mail: ir@998.com ChristensenIn ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: jerry.xu@christensencomms.comIn Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: karen.hui@christensencomms.comIn the US Ms. Linda Bergkamp Phone: +1-480-614-3004E-mail: linda.bergkamp@christensencomms.comSOURCE GreenTree Hospitality Group Ltd.