12:55:45 EDT Wed 29 Apr 2026
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GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

2026-04-29 09:31 ET - News Release

GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

PR Newswire

  • Total revenues for the fourth quarter decreased by 24.9% year over year to RMB 228.7 million (US$32.7 million)[1].
  • Net income was RMB-55.7million (US$-8.0 million)[1] compared to RMB-72.8 million for the fourth quarter of 2024.
  • Core net income[4] was RMB63.2 million (US$9.0 million)[1] compared to RMB57.8 million for the fourth quarter of 2024.

SHANGHAI, April 29, 2026 /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 fourth quarter and fiscal year of 2025.

Fourth Quarter of 2025 Operational Highlights

Hotels

  • A total of 4,580 hotels with 327,060 hotel rooms were in operation as of December 31, 2025.
  • The Company opened 76 hotels and had a pipeline of 1,260 hotels contracted for or under development as of December 31, 2025.
  • The average daily room rate was RMB162, a decrease of 4.0% from RMB169 in the fourth quarter of 2024.
  • The occupancy rate was 64.7%, down from 68.6% in the fourth quarter of 2024.
  • Revenue per available room, or RevPAR, was RMB105, a 9.5% 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 6.9931 on December 31, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260105/.



 2. Adjusted net income is defined as net income excluding the impact by the exemption of fees from franchisees, impact from disposal of L&O hotel assets, impairment of goodwill and trademarks of restaurant business, impairment of assets, provisions for loan to franchisee loans, foreign exchange losses., and earnings from the disposal of investment.


  3. 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.


  4. 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).



 5. Each ADS represents one ordinary share.

Restaurants

  • A total of 191 restaurants were in operation as of December 31, 2025.
  • The AC (average check) was RMB38, a 17.8% year-over-year decrease.
  • The ADT (average daily tickets) was 88, down from 93 in the fourth quarter of 2024.
  • The ADS (average daily sales per store) was RMB3,312, a decrease of 21.8% from RMB4,234 in the fourth quarter of 2024.
                                                        
          
         Quarter Ended


                                         December 31,     December 31,                     December 31,        December 31,
                                                   2024                 2024                              2024              2024


                                                   RMB               RMB                             RMB                 RMB


                                                  Hotel          Restaurant                      Elimination            Total



        
            Revenues



        Leased-and-operated                 90,969,160           28,534,041                         (207,412)      119,295,789
revenues



        Franchised-and-managed revenues    148,174,447            4,759,771                                        152,934,218



        Wholesales and others                1,026,363           31,759,229                         (495,936)       32,289,656



        
            Total revenues        240,169,970           65,053,041                         (703,348)      304,519,663

                                                                
     
 Quarter Ended


                                     December 31,   December 31,         December 31,        December 31,      December 31,
                                               2025              2025                   2025              2025               2025


                                               RMB            RMB                  RMB                 RMB               US$


                                              Hotel       Restaurant           Elimination            Total             Total



        
            Revenues



        Leased-and-operated             85,005,220        21,237,340                             106,242,560         15,192,484
revenues



        Franchised-and-managed         104,151,920           954,557                             105,106,477         15,030,026
revenues



        Wholesales and others              724,362        16,926,284              (338,210)       17,312,436          2,475,646



        
            Total revenues    189,881,502        39,118,181              (338,210)      228,661,473         32,698,156

2025 Financial Results

                                                    
          
        Year Ended


                                     December 31,     December 31,                 December 31,        December 31,
                                               2024                2024                           2024              2024


                                               RMB              RMB                          RMB                 RMB


                                              Hotel         Restaurant                   Elimination            Total



        
            Revenues



        Leased-and-operated            437,521,898         159,326,153                       -207,411       596,640,640
revenues



        Franchised-and-managed         625,072,856          10,287,457                                     635,360,313
revenues



        Wholesales and others            3,908,057         109,031,616                     -1,500,428       111,439,245



        
            Total revenues  1,066,502,811         278,645,226                     -1,707,839     1,343,440,198

                                                             
    
 Year Ended


                                     December     December            December          December       December
                                         31, 2025       31, 2025             31, 2025       31, 2025       31, 2025


                                             RMB          RMB                 RMB               RMB            US$


                                            Hotel     Restaurant          Elimination          Total          Total



        
            Revenues



        Leased-and-operated          381,361,912     106,812,441             (241,982)    487,932,371      69,773,401
revenues



        Franchised-and-managed       528,472,018       5,979,850                          534,451,868      76,425,601
revenues



        Wholesales and others          2,514,491      73,456,665           (1,002,001)     74,969,155      10,720,446



        
            Total revenues  912,348,421     186,248,956           (1,243,983)  1,097,353,394     156,919,448

Total revenue

Total revenues were RMB228.7 million (US$32.7 million)[1]?a 24.9% year-over-year decrease.

Hotel revenues were RMB189.9 million (US$27.2 million)[1], a 20.9% year-over-year decrease due to a 9.5% year-over-year decrease in RevPAR, the closure of 15 L&O hotels since the first quarter of 2025 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB39.1 million (US$5.6 million)[1], a 39.9% year-over-year decrease, mainly due to a 21.8% decrease in ADS and the decrease in the number of L&O stores.

Total revenues for the year ended December 31, 2025 were RMB1,097.4 million (US$156.9 million)[1], an 18.3% year-over-year decrease.

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB106.2million (US$15.2 million)[1], a 10.9% year-over-year decrease.

Total revenues from L&O hotels were RMB85.0 million (US$12.2 million)[1], a 6.6% year-over-year decrease. The decrease was primarily attributable to a 4.6% year-over-year decrease in L&O hotels' RevPAR, the closure of 15 L&O hotels since the first quarter of 2025, and the reduction in sublease income resulting from the closure of L&O hotels, offset by revenues from the opening of 5 L&O hotels during 2025.

Total revenues from L&O restaurants were RMB21.2 million (US$3.0 million)[1], a 25.6 % year-over-year decrease. The decrease was mainly due to the closure of 6 L&O stores since the first quarter of 2025 and a 14.1% year-over-year decrease in L&O stores' ADS. Same L&O store revenues in the fourth quarter of 2025 decreased by 10.4% year over year.

Total revenues from L&O hotels and restaurants for the year ended December 31, 2025 were RMB487.9 million (US$69.8 million)[1], an 18.2% year-over-year decrease.

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB105.1 million (US$15.0 million)[1], a 31.3% year-over-year decrease.

Total revenues from F&M hotels were RMB104.2 million (US$14.9 million)[1], a 29.7% year-over-year decrease, primarily attributable to a temporary waiver of RMB21.0 million of management fees for hotels facing business difficulties, and a decline of RMB6.9 million in membership revenues. The decrease was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically underperformed. Excluding these impacts, revenues from F&M hotels decreased 10.9% year over year, due to a 9.6% decrease in F&M hotels' RevPAR.

Total revenues from F&M restaurants were RMB1.0 million (US$0.1 million)[1], a 79.9% year-over-year decrease. The decrease was mainly due to a 10.9% decrease in ADS.

Total revenues from F&M hotels and restaurants for the year were RMB534.5million (US$76.4million)[1], a 15.9% year-over-year decrease.

Total revenues from wholesale and others were RMB17.3 million (US$2.5 million)[1], a 46.4% year-over-year decrease.

Total revenues from wholesale and others for the year were RMB75.0 million (US$10.7 million)[1], a 32.7% year-over-year decrease.

Total operating costs and expenses

                                                                       
          
         Quarter Ended


                                                  December 31, 2024 December 31, 2024                 December 31, 2024         December 31, 2024


                                                               RMB                  RMB                               RMB                    RMB


                                                              Hotel             Restaurant                        Elimination               Total



          
            Operating costs and
expenses



          Operating costs                              139,910,728              59,854,076                           (791,324)         198,973,480



          Selling and marketing expenses                13,451,271               4,083,785                              87,975           17,623,031



          General and administrative                    39,695,498               3,347,191                                              43,042,689
expenses



          Other operating expenses                       2,635,870                  16,422                                               2,652,292



          Impairment loss of goodwill                                          81,008,000                                              81,008,000



          Impairment of indefinite-lived                                       39,072,000                                              39,072,000
intangible asset



          Other general expenses                        30,012,799                                                                     30,012,799



          
            Total operating costs and       225,706,166             187,381,474                           (703,349)         412,384,291
expenses

                                                                                   
     
 Quarter Ended


                                                           December     December              December          December       December
                                                               31, 2025        31, 2025              31, 2025       31, 2025       31, 2025


                                                                   RMB           RMB                  RMB               RMB            US$


                                                                  Hotel      Restaurant           Elimination          Total          Total



          
            Operating costs and expenses



          Operating costs                                  123,262,562       35,625,047              (338,210)    158,549,399      22,672,263



          Selling and marketing expenses                    11,805,604        2,001,482                            13,807,086       1,974,387



          General and administrative expenses               18,578,972        5,933,471                            24,512,443       3,505,233



          Other operating expenses                          40,245,786         (57,902)                           40,187,884       5,746,791



          Impairment loss of goodwill                                       66,491,000                            66,491,000       9,508,087



          Impairment of indefinite-lived                                    17,331,000                            17,331,000       2,478,300
intangible asset



          Other general expenses                            31,779,622                                            31,779,622       4,544,424



          
            Total operating costs and expenses  225,672,546      127,324,098              (338,210)    352,658,434      50,429,485

                                                                     
          
        Year Ended


                                                      December 31,    December 31,                  December 31,        December 31,
                                                                2024                2024                           2024              2024


                                                                RMB              RMB                          RMB                 RMB


                                                               Hotel         Restaurant                   Elimination            Total



     
            Operating costs and expenses



     Operating costs                                    593,798,806         230,496,349                    (1,707,841)      822,587,314



     Selling and marketing expenses                      55,028,196          12,556,863                                      67,585,059



     General and administrative expenses                156,401,775          26,149,319                                     182,551,094



     Other operating expenses                             4,937,315           2,153,148                                       7,090,463



     Impairment loss of goodwill                                            81,008,000                                      81,008,000



     Impairment of indefinite-lived intangible                              39,072,000                                      39,072,000
asset



     Other general expenses                              41,769,330                                                         41,769,330



     
            Total operating costs and expenses    851,935,422         391,435,679                    (1,707,841)    1,241,663,260

                                                                              
    
 Year Ended


                                                     December     December             December          December       December
                                                         31, 2025        31, 2025             31, 2025       31, 2025       31, 2025


                                                             RMB           RMB                 RMB               RMB            US$


                                                            Hotel      Restaurant          Elimination          Total          Total



          
            Operating costs and expenses



          Operating costs                            552,869,547      162,768,869           (1,243,984)    714,394,432     102,157,045



          Selling and marketing expenses              46,084,781        8,699,788                           54,784,569       7,834,089



          General and administrative expenses        111,872,466       18,589,380                          130,461,846      18,655,796



          Other operating expenses                    50,188,458        1,543,018                           51,731,476       7,397,503



          Impairment loss of goodwill                                 66,491,000                           66,491,000       9,508,087



          Impairment of indefinite-lived                              17,331,000                           17,331,000       2,478,300
intangible asset



          Other general expenses                      82,874,509                                           82,874,509      11,850,897



          
            Total operating costs and     843,889,761      275,423,055           (1,243,984)  1,118,068,832     159,881,717
expenses

Operating costs were RMB158.5 million (US$22.7 million)[1], a 20.3% year-over-year decrease.

Operating costs of the hotel business were RMB123.3 million (US$17.6million)[1], an 11.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization, lower staff related costs, and lower consumable, food and beverage caused by the closing of 15 L&O hotels, partially offset by the rental increase caused by 5 new L&O hotels and the renewal of certain lease agreements.

Operating costs of the restaurant business were RMB35.6million (US$5.1 million)[1], a 40.5% year-over-year decrease. The decrease was mainly due to the closure of L&O stores.

For the year, operating costs were RMB714.4 million (US$102.2 million) [1], representing a 13.2% decrease.

Selling and marketing expenses in the fourth quarter of 2025 was RMB13.8 million (US$2.0 million)[1], a 21.7% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB11.8 million (US$1.7 million)[1], a 12.2% year-over-year decrease. The decrease was mainly due to lower staff related costs, and lower traveling and meal expenses.

Selling and marketing expenses of the restaurant business were RMB2.0 million (US$0.3 million)[1]., a 51.0% year-over-year decrease. The decrease was mainly due to lower staff related expenses, and lower sales-channel commissions.

For the year, selling and marketing expenses were RMB54.8 million (US$7.8million) [1], an 18.9% decrease.

General and administrative, or G&A expenses were RMB24.5 million (US$3.5 million)[1], a 43.1% year-over-year decrease.

G&A expenses of the hotel business were RMB18.6 million (US$2.7 million)[1], a 53.2% year-over-year decrease. The decrease was mainly due to lower staff G&A staff related expenses, lower traveling and meal expenses, and lower consulting fees.

G&A expenses of the restaurant business were RMB5.9 million (US$0.8 million)[1], a 77.3 % year-over-year increase. The increase was mainly due to higher bad debt provisions for long-aged account receivables.

For the year, G&A expenses were RMB130.5 million (US$18.7 million)[1], a 28.5% year-over-year decrease.

Other operating expenses were RMB40.2 million (US$5.7 million)[1], mainly due to the disposal of L&O hotel assets. For the year, other operating expenses were RMB51.7 million, (US$7.4 million)[1], increased from RMB7.1 million in 2024.

Impairment loss of goodwill was RMB66.5million (US$9.5 million)[1] , a 17.9% decrease year over year. Impairment of indefinite-lived intangible asset was RMB17.3 million(US$2.5 million), a 55.6% decrease year over year. These expenses were impairment of goodwill and trademarks related to the restaurant business.

Other general expenses were RMB31.8million (US$4.5 million)[1], a 5.9% year-over-year increase. These expenses include provisions for loan receivables related to franchisee loans, and impairment of assets.

For the year, other general expenses were RMB82.9 million (US$11.9 million)[1].

Gross profit, defined as total revenues deducted by hotel and restaurant costs, was RMB70.1 million (US$10.0 million)[1], a year-over-year decrease of 33.6%. Gross margin was 30.7%, compared to 34.7% a year ago. The gross profit of the hotel business was RMB66.6 million (US$9.5 million)[1], a 33.6% year-over-year decrease. The gross profit of the restaurant business was RMB3.5 million (US$0.5 million)[1], a 32.8% year-over-year decrease. Gross profit for the year was RMB383.0 million (US$54.8 million) [1], a 26.5% year-over-year decrease.

Income from operations was RMB-64.9 million (US$-9.3 million)[1] , compared to income from operations of RMB-95.0million in the fourth quarter of 2024, with a margin of -28.4%. The loss was due to certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, while offset by impact from disposal of L&O hotel assets. Excluding these, the adjusted income from operations decreased 8.3% year over year, mainly due to the year-over-year 9.6% decrease in Revpar. The margin for the adjusted income from operations was 24.3%, up from 19.9% one year ago, thanks to lower operating costs and expenses.

Income from operations of the hotel business was RMB23.2 million (US$3.3 million)[1], compared to an income from operations of RMB26.1 million in the fourth quarter of 2024. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business decreased 2.8% year over year, and the margin for the third quarter of 2025 was 22.1%, up from 21.6% one year ago, due to lower operating costs and expenses.

Loss from operations of the restaurant business was RMB88.1 million (US$12.6 million)[1], compared to loss from operations of RMB121.1 million in the fourth quarter of 2024. Excluding impairment loss of goodwill, and impairment of indefinite-lived intangible asset, loss from operations of the restaurant business was RMB4.3 million(US$0.6million) with a negative margin of 11.0%.

Income from operations for the year was RMB56.7 million (US$8.1 million) [1] compared to income from operations of RMB161.9 million in 2024.

Net income in the fourth quarter of 2025 was RMB-55.7million (US$-8.0 million)[1], compared to a net income of RMB-72.8 million in the fourth quarter of 2024, and net margin was -24.4%. The loss was impacted by certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, and foreign exchange losses, while offset by earnings from the disposal of investment in equity securities and disposal of L&O hotel assets. Excluding the impact of the above-mentioned items on hotels, adjusted net income [2] was RMB60.5 million, an increase of 6.7%, with a margin of 26.5%.

Net income of the hotel business was RMB29.5 million (US$4.2 million)[1], compared to a net income of RMB28.4million in the fourth quarter of 2024, and net margin was15.5%. Excluding the impact of the above-mentioned items on hotels, adjusted net income[2] of the hotel business increased 63.9% to RMB61.9million (US$8.9 million)[1] with a margin of 32.6%.

Net loss of the restaurant business was RMB85.2million (US$12.2million)[1], compared to a net loss of RMB101.2million in the fourth quarter of 2024. Excluding the impairment of trademarks and goodwill, adjusted net loss of the restaurant business was RMB1.4 million(US$0.2 million)[1] with a margin of -3.6%.

Net income for the year was RMB163.4 million (US$23.4 million) [1] compared to net income of RMB107.3 million in 2024, with a margin of 14.9%.

Adjusted EBITDA (non-GAAP)[3] in the fourth quarter of 2025 was RMB41.9 million (US$6.0 million)[1], a year-over-year decrease of 41.3%. Adjusted EBITDA[3] margin, defined as adjusted EBITDA (non-GAAP) [3] as a percentage of total revenues, was 18.3%, compared to 23.5% a year ago. Adjusted EBITDA (non-GAAP) [3] for the year was RMB286.6 million (US$41.0 million)[1], a year-over-year decrease of 25.8%.

Core net income (non-GAAP) [4] in the fourth quarter of 2025 was RMB63.2 million (US$9.0 million)[1], a year-over-year increase of 9.2%. The core net margin, defined as core net income (non-GAAP) [4] as a percentage of total revenues, was 27.6%, up from 19.0% one year ago. Core net income (non-GAAP) [4] for the year was RMB211.2 million (US$30.2million)[1], a year-over-year decrease of 23.9%.

Earnings per American Depositary Share, or ADS, (basic and diluted) in the fourth quarter of 2025 was RMB-0.55(US$-0.08)[1], down from RMB-0.70 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) [4] was RMB0.63 (US$0.09)[1], increase from RMB0.57 a year ago.

Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)[1], as stable as one year ago. Core net income per ADS (basic and diluted) (non-GAAP) [4] for the hotel business were RMB0.63 (US$0.09)[1], increase from RMB0.45 a year ago.

Earnings per ADS (basic and diluted) for the year of 2025 was RMB1.65 (US$0.24)[1] increased from RMB1.08 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) [4] was RMB2.09 (US$0.30)[1] for the year, a decrease from RMB2.73 a year ago.

Cash flow Operating cash inflow in the fourth quarter of 2025 was RMB32.5 million (US$4.6 million)[1] as a result of income from operations. Investing cash inflow for the fourth quarter 2025 was RMB27.6 million (US$3.9million)[1], which was primarily attributable to proceeds from disposal of long-term investments?offset by an advance payment for the purchase of strategic assets. Financing cash outflow in the fourth quarter of 2025 was RMB43.2 million (US$6.2 million)[1], mainly attributable to dividends distributed to the shareholders.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of December 31, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,964.0 million (US$280.8 million)[1], compared to RMB2,014.6million as of September 30, 2025. The decrease was primarily due to dividends distributed to the shareholders, an advance payment for the purchase of strategic assets, partially offset by cash from operating activities, and disposal of investment on equity securities.

Guidance

Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the decline of total revenues of our organic hotel business for the full year of 2026 to be flat compared to their 2025 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.

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 December 31, 2025, GreenTree had a total number of 4,580 hotels and 191 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, 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   December 31   December 31


                                                                                                     2024           2025           2025


                                                                                                  RMB           RMB           US$



           ASSETS



           Current assets:



           Cash and cash equivalents                                                       1,490,235,562  1,652,179,474    236,258,523



           Restricted cash                                                                    16,096,476      7,389,650      1,056,706



           Short-term investments                                                                 10,475



           Accounts receivable, net of                                                        99,688,034     81,335,494     11,630,821
allowance



           Amounts due from related parties                                                   21,839,929     18,843,062      2,694,522



           Inventories                                                                         6,881,470      4,922,160        703,860



           Other current assets                                                              114,898,590     92,557,400     13,235,532



           Loans receivable, net                                                              85,463,467     38,798,333      5,548,088



           Total current assets                                                            1,835,114,003  1,896,025,573    271,128,052





           Non-current assets:



           Amounts due from a related party                                                  110,000,000    110,000,000     15,729,791



           Restricted cash                                                                    18,869,900     18,869,900      2,698,360



           Long-term time deposits                                                           285,570,000    285,570,000     40,835,967



           Loans receivable, net                                                              15,372,238     12,034,825      1,720,957



           Property and equipment, net                                                       649,528,210    559,918,957     80,067,346



           Intangible assets, net                                                             75,677,551     56,403,818      8,065,639



           Goodwill                                                                           96,074,468     25,721,262      3,678,092



           Long-term investments                                                             184,024,217    156,929,090     22,440,561



           Operating lease right-of-use assets                                             1,328,582,419  1,130,088,595    161,600,520



           Other assets                                                                      102,545,848    297,560,050     42,550,519



           Deferred tax assets                                                               245,760,095    237,098,634     33,904,654



            TOTAL ASSETS                                                                   4,947,118,949  4,786,220,704    684,420,458







           LIABSLITIES AND EQUITY



          
            Current liabilities:



           Long-term bank loans, current                                                         400,000     56,800,000      8,122,292
portion



           Accounts payable                                                                   56,488,405     44,687,183      6,390,182



           Advance from customers                                                             25,684,437     21,946,599      3,138,322



           Amounts due to related parties                                                     17,462,176     17,518,102      2,505,055



           Salary and welfare payable                                                         78,234,585     73,657,641     10,532,903



           Deferred revenue                                                                  175,046,178    169,139,889     24,186,682



           Accrued expenses and other current                                                481,910,291    539,836,968     77,195,660
liabilities



           Income tax payable                                                                 88,876,497     72,129,824     10,314,428



           Operating lease liabilities, current                                              241,363,244    184,665,265     26,406,782



           Total current liabilities                                                       1,165,465,813  1,180,381,471    168,792,306





           Long-term bank loans                                                              256,200,000    199,400,000     28,513,821



           Deferred revenue                                                                  176,353,919    134,414,010     19,220,948



           Other long-term liabilities                                                       120,975,955    117,513,512     16,804,208



           Operating lease liabilities, non-current                                        1,215,776,075  1,032,472,822    147,641,650



           Deferred tax liabilities                                                           79,670,908     55,941,338      7,999,505



           Unrecognized tax benefits                                                         440,072,214    457,930,743     65,483,225



          
            Total liabilities                                                   3,454,514,884  3,178,053,896    454,455,663





          
            Shareholders' equity:



          Class A ordinary shares                                                            222,587,070    222,587,070     31,829,528



          Class B ordinary shares                                                            115,534,210    115,534,210     16,521,172



          Treasury Stock                                                                    (37,043,116)  (48,054,863)   (6,871,754)



          Additional paid-in capital                                                       1,609,972,272  1,566,949,877    224,070,852



          Retained earnings (Accumulated                                                   (458,337,571) (291,545,545)  (41,690,458)
losses)



          Accumulated other comprehensive                                                      6,033,263     11,093,099      1,586,292
income



          
            Total GreenTree Hospitality Group                                   1,458,746,128  1,576,563,848    225,445,632
Ltd. shareholders' equity





          Non-controlling interests                                                           33,857,937     31,602,960      4,519,163



          
            Total shareholders' equity                                          1,492,604,065  1,608,166,808    229,964,795





          
            TOTAL LIABSLITIES AND                                               4,947,118,949  4,786,220,704    684,420,458
SHAREHOLDERS' EQUITY

                                                              
      
            GreenTree Hospitality Group Ltd.


                                                
      
        Unaudited Condensed Consolidated Statements of Comprehensive Income


                                                                               Quarter Ended                                                 
         
    Year Ended


                                                    December                  December                      December                    December             December          December
                                                       31, 2024                  31, 2025                      31, 2025                    31, 2024             31, 2025          31, 2025


                                                            RMB                       RMB                           US$                         RMB                  RMB               US$



          
            Revenues



          Leased-and-operated                      119,295,789                106,242,560                     15,192,484                  596,640,640           487,932,371         69,773,401
revenues



          Franchised-and-managed                   152,934,218                105,106,477                     15,030,026                  635,360,313           534,451,868         76,425,601
revenues



          Wholesales and others                     32,289,656                 17,312,436                      2,475,646                  111,439,245            74,969,155         10,720,446



          
            Total revenues              304,519,663                228,661,473                     32,698,156                1,343,440,198         1,097,353,394        156,919,448





          
            Operating costs and
expenses



          Operating costs                        (198,973,480)             (158,549,399)                  (22,672,263)               (822,587,314)        (714,394,432)     (102,157,045)



          Selling and marketing                   (17,623,031)              (13,807,086)                   (1,974,387)                (67,585,059)         (54,784,569)       (7,834,089)
expenses



          General and                             (43,042,689)              (24,512,443)                   (3,505,233)               (182,551,094)        (130,461,846)      (18,655,796)
administrative expenses



          Other operating expenses                 (2,652,292)              (40,187,884)                   (5,746,791)                 (7,090,463)         (51,731,476)       (7,397,503)



          Impairment loss of                      (81,008,000)              (66,491,000)                   (9,508,087)                (81,008,000)         (66,491,000)       (9,508,087)
goodwill



          Impairment of                           (39,072,000)              (17,331,000)                   (2,478,300)                (39,072,000)         (17,331,000)       (2,478,300)
indefinite-lived intangible
asset



          Other general expenses                  (30,012,799)              (31,779,622)                   (4,544,424)                (41,769,330)         (82,874,509)      (11,850,897)


                        Total operating costs     (412,384,291)             (352,658,434)                  (50,429,485)             (1,241,663,260)      (1,118,068,832)     (159,881,717)
and expenses





          Other operating income                    12,898,817                 59,110,768                      8,452,727                   60,147,558            77,371,723         11,064,010


                        Income from operations     (94,965,811)              (64,886,193)                   (9,278,602)                 161,924,496            56,656,285          8,101,741





          Interest income and                       12,633,535                  9,393,209                      1,343,211                   40,072,068            37,806,975          5,406,326
other, net



          Interest expense                         (1,824,933)               (2,095,890)                     (299,708)                 (6,310,152)          (7,644,628)       (1,093,167)



          Gains (losses) from                      (9,544,253)              (24,444,565)                   (3,495,526)                (14,953,679)            5,000,000            714,990
investment in equity
securities



          Other income, net                         34,336,161                 22,218,586                      3,177,215                   16,474,064           113,255,005         16,195,250


                        Income before income       (59,365,301)              (59,814,853)                   (8,553,410)                 197,206,797           205,073,637         29,325,140
taxes





          Income tax expense                      (12,758,025)                 3,254,084                        465,328                 (88,726,969)         (45,880,022)       (6,560,756)


                        Income (loss) before       (72,123,326)              (56,560,769)                   (8,088,082)                 108,479,828           159,193,615         22,764,384
share of gains in equity
investees





          Share of loss/(income) in                  (700,781)                   818,603                        117,058                  (1,165,474)            4,163,620            595,390
equity investees, net of
tax


                        Net income(loss)           (72,824,107)              (55,742,166)                   (7,971,024)                 107,314,354           163,357,235         23,359,774





          Net loss/(income)                          1,368,731                    258,970                         37,032                    2,687,878             3,434,790            491,168
attributable to
non-controlling interests


                        Net income attributable    (71,455,377)              (55,483,196)                   (7,933,992)                 110,002,232           166,792,025         23,850,942
to ordinary
shareholders





          
            Net earnings per share



          Class A ordinary                              (0.70)                    (0.55)                        (0.08)                        1.08                  1.65               0.24
share-basic and diluted



          Class B ordinary                              (0.70)                    (0.55)                        (0.08)                        1.08                  1.65               0.24
share-basic and diluted





          
            Net earnings per ADS



          Class A ordinary                              (0.70)                    (0.55)                        (0.08)                        1.08                  1.65               0.24
share-basic and diluted



          Class B ordinary                              (0.70)                    (0.55)                        (0.08)                        1.08                  1.65               0.24
share-basic and diluted





          
            Weighted average
shares outstanding



          Class A ordinary                          66,765,032                 66,134,813                     66,134,813                   66,776,243            66,366,641         66,366,641
share-basic and diluted



          Class B ordinary                          34,762,909                 34,762,909                     34,762,909                   34,762,909            34,762,909         34,762,909
share-basic and diluted





          
            Other comprehensive
income, net of tax



          Foreign currency                        (20,725,862)                 7,667,013                      1,096,369                 (22,368,019)            5,059,836            723,547
translation adjustments





          
            Comprehensive              (93,549,969)              (48,075,153)                   (6,874,655)                  84,946,335           168,417,071         24,083,321
income, net of tax





          Comprehensive                              1,368,731                    258,970                         37,032                    2,687,878             3,434,790            491,168
loss/(income) attributable
to non-controlling
interests


                        Comprehensive income       (92,181,238)              (47,816,183)                   (6,837,623)                  87,634,213           171,851,861         24,574,489
(loss) attributable to
ordinary shareholders

                                                                           
  
            GreenTree Hospitality Group Ltd.


                                                                       
 
   Unaudited Condensed Hotel Statements of Comprehensive Income


                                                                                                            
          
            Quarter Ended                 
   
        Year Ended


                                                                                              December 31, 2024               December 31, 2025   December 31, 2025     December 31, 2024    December 31, 2025     December 31, 2025


                                                                                                           RMB                             RMB                 US$                   RMB                  RMB                   US$



 
            Revenues



 Leased-and-operated revenues                                                                       90,969,160                       85,005,220           12,155,585            437,521,898           381,361,912             54,534,028



 Franchised-and-managed revenues                                                                   148,174,447                      104,151,920           14,893,526            625,072,856           528,472,018             75,570,493



 Wholesales and others                                                                               1,026,363                          724,362              103,583              3,908,057             2,514,491                359,567



 
            Total revenues                                                                       240,169,970                      189,881,502           27,152,694          1,066,502,811           912,348,421            130,464,088





 
            Operating costs and expenses



 Operating costs                                                                                 (139,910,728)                   (123,262,562)        (17,626,312)         (593,798,806)        (552,869,547)          (79,059,294)



 Selling and marketing expenses                                                                   (13,451,271)                    (11,805,604)         (1,688,179)          (55,028,196)         (46,084,781)           (6,590,036)



 General and administrative expenses                                                              (39,695,498)                    (18,578,972)         (2,656,758)         (156,401,775)        (111,872,466)          (15,997,550)



 Other operating expenses                                                                          (2,635,870)                    (40,245,786)         (5,755,071)           (4,937,315)         (50,188,458)           (7,176,854)



 Other general expenses                                                                           (30,012,799)                    (31,779,622)         (4,544,425)          (41,769,330)         (82,874,509)          (11,850,897)



 
            Total operating costs and expenses                                                 (225,706,166)                   (225,672,546)        (32,270,745)         (851,935,422)        (843,889,761)         (120,674,631)





 Other operating income                                                                             11,644,397                       59,024,549            8,440,398             56,818,174            76,874,333             10,992,883



 
            Income from operations                                                                26,108,201                       23,233,505            3,322,347            271,385,563           145,332,993             20,782,340





 Interest income and other, net                                                                     12,606,174                        9,365,397            1,339,234             39,982,179            37,684,201              5,388,769



 Interest expense                                                                                  (1,825,243)                     (2,168,449)           (310,084)           (6,310,152)          (7,644,628)           (1,093,167)



 Gains (losses) from investment in equity securities                                               (9,544,253)                    (24,444,565)         (3,495,526)          (10,314,000)            5,000,000                714,990



 Other income, net                                                                                  34,321,711                       22,941,763            3,280,628             16,383,657           114,001,612             16,302,016



 
            Income before income taxes                                                            61,666,590                       28,927,651            4,136,599            311,127,247           294,374,178             42,094,948





 Income tax expense                                                                               (32,610,806)                       (261,788)            (37,435)         (107,223,277)         (48,997,177)           (7,006,503)



 
            Income (loss) before share of gains in equity investees                               29,055,784                       28,665,863            4,099,164            203,903,970           245,377,001             35,088,445





 Share of loss/(income) in equity investees, net of tax                                              (700,781)                         818,603              117,059            (1,165,474)            4,163,620                595,390



 
            Net income(loss)                                                                      28,355,003                       29,484,466            4,216,223            202,738,496           249,540,621             35,683,835

                                                                           
     
            GreenTree Hospitality Group Ltd.


                                                                       
 
   Unaudited Condensed Restaurant Statements of Comprehensive Income


                                                                                                               
          
            Quarter Ended                                
         
    Year Ended


                                                                                                 December 31, 2024               December 31, 2025   December 31, 2025   December 31, 2024      December 31, 2025     December 31, 2025


                                                                                                              RMB                             RMB                 US$                 RMB                    RMB                   US$



 
            Revenues



 Leased-and-operated revenues                                                                          28,534,041                       21,237,340            3,036,899          159,326,153             106,812,441             15,273,976



 Franchised-and-managed revenues                                                                        4,759,771                          954,557              136,500           10,287,457               5,979,850                855,107



 Wholesales and others                                                                                 31,759,229                       16,926,284            2,420,426          109,031,616              73,456,665             10,504,163



 
            Total revenues                                                                           65,053,041                       39,118,181            5,593,825          278,645,226             186,248,956             26,633,246





 
            Operating costs and expenses



 Operating costs                                                                                     (59,854,076)                    (35,625,047)         (5,094,314)       (230,496,349)          (162,768,869)          (23,275,639)



 Selling and marketing expenses                                                                       (4,083,785)                     (2,001,482)           (286,208)        (12,556,863)            (8,699,788)           (1,244,053)



 General and administrative expenses                                                                  (3,347,191)                     (5,933,471)           (848,475)        (26,149,319)           (18,589,380)           (2,658,246)



 Other operating expenses                                                                                (16,422)                          57,902                8,280          (2,153,148)            (1,543,018)             (220,649)



 Impairment loss of goodwill                                                                         (81,008,000)                    (66,491,000)         (9,508,087)        (81,008,000)           (66,491,000)           (9,508,087)



 Impairment of indefinite-lived intangible asset                                                     (39,072,000)                    (17,331,000)         (2,478,300)        (39,072,000)           (17,331,000)           (2,478,300)



 
            Total operating costs and expenses                                                    (187,381,474)                   (127,324,098)        (18,207,104)       (391,435,679)          (275,423,055)          (39,384,974)





 Other operating income                                                                                 1,254,420                           86,219               12,330            3,329,384                 497,391                 71,127



 
            Income from operations                                                                (121,074,013)                    (88,119,698)        (12,600,949)       (109,461,069)           (88,676,708)          (12,680,601)





 Interest income and other, net                                                                            27,361                           27,812                3,977               89,889                 122,774                 17,556



 Interest expense                                                                                             310                           72,559               10,376



 Other income, net                                                                                         14,450                        (723,176)           (103,413)            (18,672)              (746,607)             (106,763)



 
            Income before income taxes                                                            (121,031,894)                    (88,742,503)        (12,690,009)       (109,389,852)           (89,300,541)          (12,769,808)





 Income tax expense                                                                                    19,852,781                        3,515,872              502,763           18,496,308               3,117,155                445,748



 
            Income (loss) before share of gains in equity investees                               (101,179,113)                    (85,226,631)        (12,187,246)        (90,893,544)           (86,183,386)          (12,324,060)





 
            Net income(loss)                                                                      (101,179,113)                    (85,226,631)        (12,187,246)        (90,893,544)           (86,183,386)          (12,324,060)

                                                                     GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated
                                                                                                 Statements


                                                       Quarter Ended          Quarter Ended                           Quarter Ended           Quarter Ended


                                                  December 31,           December 31,                            December 31,          December 31, 2024
                                                                2024                    2024                                     2024


                                                           Hotel                Restaurant                             Elimination                Total


                                                            RMB                    RMB                                     RMB                     RMB



 
            Revenues



 Leased-and-operated revenues                            90,969,160              28,534,041                                (207,412)             119,295,789



 Franchised-and-managed revenues                        148,174,447               4,759,771                                                      152,934,218



 Wholesales and others                                    1,026,363              31,759,229                                (495,936)              32,289,656



 
            Total revenues                            240,169,970              65,053,041                                (703,348)             304,519,663





 
            Operating costs and expenses



 Operating costs                                      (139,910,728)           (59,854,076)                                 791,324            (198,973,480)



 Selling and marketing expenses                        (13,451,271)            (4,083,785)                                (87,975)            (17,623,031)



 General and administrative expenses                   (39,695,498)            (3,347,191)                                                    (43,042,689)



 Other operating expenses                               (2,635,870)               (16,422)                                                     (2,652,292)



 Impairment loss of goodwill                                                  (81,008,000)                                                    (81,008,000)



 Impairment of indefinite-lived intangible asset                              (39,072,000)                                                    (39,072,000)



 Other general expenses                                (30,012,799)                                                                           (30,012,799)



 
            Total operating costs and expenses      (225,706,166)          (187,381,474)                                 703,349            (412,384,291)





 Other operating income                                  11,644,397               1,254,420                                                       12,898,817



 
            Income from operations                     26,108,201           (121,074,012)                                                    (94,965,811)

                                                                       GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated
                                                                                                    Statements


                                                         Quarter Ended          Quarter Ended                           Quarter Ended           Quarter Ended


                                                  December 31, 2025      December 31, 2025                       December 31, 2025       December 31, 2025


                                                             Hotel                Restaurant                             Elimination                Total


                                                              RMB                    RMB                                     RMB                     RMB



 
            Revenues



 Leased-and-operated revenues                              85,005,220              21,237,340                                                      106,242,560



 Franchised-and-managed revenues                          104,151,920                 954,557                                                      105,106,477



 Wholesales and others                                        724,362              16,926,284                                (338,210)              17,312,436



 
            Total revenues                              189,881,502              39,118,181                                (338,210)             228,661,473





 
            Operating costs and expenses



 Operating costs                                        (123,262,562)           (35,625,047)                                 338,210            (158,549,399)



 Selling and marketing expenses                          (11,805,604)            (2,001,482)                                                    (13,807,086)



 General and administrative expenses                     (18,578,972)            (5,933,471)                                                    (24,512,443)



 Other operating expenses                                (40,245,786)                 57,902                                                     (40,187,884)



 Impairment loss of goodwill                                                    (66,491,000)                                                    (66,491,000)



 Impairment of indefinite-lived intangible asset                                (17,331,000)                                                    (17,331,000)



 Other general expenses                                  (31,779,622)                                                                           (31,779,622)



 
            Total operating costs and expenses        (225,672,546)          (127,324,098)                                 338,210            (352,658,434)





 Other operating income                                    59,024,549                  86,219                                                       59,110,768



 
            Income from operations                       23,233,505            (88,119,698)                                                    (64,886,193)

                                                                                      
 
            GreenTree Hospitality Group Ltd.


                                                                                   
 
   Unaudited Condensed Consolidated Statements of Cash Flows


                                                                                                                                              
    
       Quarter Ended                                
         
    Year Ended


                                                                                                                                December 31, 2024    December 31, 2025   December 31, 2025   December 31, 2024      December 31, 2025     December 31, 2025


                                                                                                                                             RMB                  RMB                 US$                 RMB                    RMB                   US$





 
            Operating activities:



 
            Net (loss) income                                                                                                     (72,824,109)         (55,742,166)         (7,971,024)         107,314,353             163,357,235             23,359,774





 Depreciation and amortization                                                                                                        26,575,903            10,137,484            1,449,641          115,746,538              88,932,782             12,717,219



 Impairment of long lived assets                                                                                                      51,672,000               893,149              127,719           51,672,000              20,893,149              2,987,681



 Impairment of indefinite-lived intangible assets                                                                                              -           17,331,001            2,478,300                                  17,331,001              2,478,300



 Impairment of goodwill                                                                                                               81,008,000            66,491,000            9,508,087           81,008,000              66,491,000              9,508,087



 Gains from disposal of a long-term investment                                                                                                 -         (49,964,806)         (7,144,872)                              (164,007,612)          (23,452,777)



 Others non-cash expense(income)                                                                                                       7,070,827             (818,603)           (117,059)           1,166,397             (4,163,620)             (595,390)



 Noncash lease expense                                                                                                                58,283,373            65,943,269            9,429,762          263,911,503             246,116,498             35,194,191



 Losses (gain) from disposal of subsidiaries                                                                                                   -            4,623,539              661,157            (488,227)              5,399,022                772,050



 Allowances for credit losses                                                                                                         21,857,669            36,473,346            5,215,619           56,241,392              81,698,368             11,682,711



 Losses (gain) on disposal of property, plant and equipment                                                                            (555,551)           35,098,580            5,019,030         (25,338,789)             35,565,640              5,085,819



 (Losses and impairment) gains on equity securities held                                                                               9,544,253            24,444,565            3,495,527           14,953,679             (5,000,000)             (714,990)



 Gains from early termination of operating leases                                                                                              -         (52,949,738)         (7,571,712)                               (52,949,738)           (7,571,712)



 Foreign exchange (gains)losses                                                                                                     (26,182,753)           21,188,452            3,029,908         (27,497,301)             31,315,924              4,478,118



 Accounts receivable                                                                                                                   9,076,784            23,849,190            3,410,389          (4,015,520)              3,471,625                496,436



 Inventories                                                                                                                           (493,764)            1,852,379              264,887           14,618,912               1,959,310                280,178



 Amounts due from related parties                                                                                                    (3,904,741)              459,253               65,672          (1,416,495)              1,032,243                147,609



 Other current assets                                                                                                                (1,821,998)          (6,964,809)           (995,954)         (3,067,256)              1,901,317                271,885



 Other assets                                                                                                                          5,200,506             4,030,567              576,363            3,725,971               8,481,614              1,212,855



 Accounts payable                                                                                                                     17,296,435           (9,060,433)         (1,295,625)         (3,021,869)           (18,962,750)           (2,711,637)



 Amounts due to related parties                                                                                                        1,767,567             (608,572)            (87,025)           1,151,882                  55,926                  7,997



 Salary and welfare payable                                                                                                            3,672,156             (758,915)           (108,523)         (7,916,485)            (4,452,881)             (636,754)



 Deferred revenue                                                                                                                   (28,977,865)         (13,816,880)         (1,975,788)        (42,787,510)           (47,846,198)           (6,841,915)



 Advance from customers                                                                                                                4,428,730           (5,089,423)           (727,778)           3,305,355             (3,664,385)             (524,000)



 Accrued expenses and other current liabilities                                                                                     (29,307,543)            7,400,025            1,058,190            3,161,614              60,924,816              8,712,133



 Income tax payable                                                                                                                 (34,457,583)         (19,261,683)         (2,754,384)        (23,195,720)           (16,746,673)           (2,394,742)



 Unrecognized tax benefits                                                                                                            68,986,879            16,061,992            2,296,834           57,946,428              17,858,529              2,553,736



 Operating lease liabilities                                                                                                        (57,896,801)         (74,496,586)        (10,652,870)       (247,702,691)          (234,674,168)          (33,557,960)



 Other long-term liabilities                                                                                                           3,262,911           (5,613,384)           (802,703)           1,264,213             (3,462,443)             (495,123)



 Deferred taxes                                                                                                                     (39,040,264)          (8,662,368)         (1,238,702)        (17,362,607)           (15,068,109)           (2,154,711)



 
            Net cash provided by operating activities                                                                               74,241,021            32,469,425            4,643,066          373,377,767             281,787,422             40,295,068





 
            Investing activities:



 Prepayments and purchases of property, plant and equipment                                                                         (50,616,409)         (51,990,595)         (7,434,556)        (79,582,039)          (261,153,578)          (37,344,465)



 Purchases of intangible assets                                                                                                         (37,057)                                                     (37,057)



 Proceeds from disposal of property and equipment                                                                                      (283,895)              187,693               26,840          139,900,865                 429,141                 61,366



 Purchases of a long-term investment                                                                                                 (3,600,000)                                                 (10,400,000)



 Purchases of short-term investments                                                                                                           -               15,272                2,184



 Proceeds from short-term investments                                                                                                (1,660,895)               10,475                1,498          417,701,142                  10,475                  1,498



 Increase of long-term time deposits                                                                                                           -                                                (222,230,000)



 Proceeds from disposal of equity securities                                                                                          21,812,329            79,023,553           11,300,218           21,812,329             188,059,939             26,892,214



 Proceeds from disposal of subsidiaries                                                                                                        -                                                    2,807,500



 Loan to related parties                                                                                                               (588,000)              265,000               37,894            (858,000)



 Repayment from related parties                                                                                                          363,347             1,845,642              263,923              363,347               1,964,624                280,937



 Loan to third parties                                                                                                                 1,200,000



 Repayment of loan from third parties                                                                                                          -                                                    5,900,000



 Loans to franchisees                                                                                                                (8,673,811)          (6,143,481)           (878,506)        (14,323,812)           (15,275,441)           (2,184,359)



 Repayment from franchisees                                                                                                           16,870,520             4,370,466              624,968           84,337,321              23,188,484              3,315,909



 
            Net cash (used in) provided by investing activities                                                                   (25,213,871)           27,584,025            3,944,463          345,391,596            (62,776,356)           (8,976,900)





 
            Financing activities:



 Distribution to the shareholders                                                                                                   (70,241,162)         (43,027,722)         (6,152,883)        (71,301,605)           (43,027,722)           (6,152,883)



 Repayment of bank loans                                                                                                               (200,000)            (200,000)            (28,600)       (117,200,000)              (400,000)              (57,199)



 Proceeds from bank loans                                                                                                                      -                                                  200,000,000



 Capital contribution from noncontrolling interest holders                                                                                     -                                                    (966,000)



 
            Net cash used in financing activities                                                                                 (70,441,162)         (43,227,722)         (6,181,483)          10,532,395            (43,427,722)           (6,210,082)





 Effect of exchange rate changes on cash and cash equivalents and restricted cash                                                      6,957,333          (10,685,429)         (1,527,994)           4,299,468            (22,346,256)           (3,195,471)





 
            Net increase in cash, cash equivalents and restricted cash                                                            (14,456,679)            6,140,299              878,052          733,601,226             153,237,088             21,912,615



 Cash, cash equivalents and restricted cash at the beginning of the year                                                           1,539,658,617         1,672,298,727          239,135,537          791,600,712           1,525,201,938            218,100,976



 
            Cash, cash equivalents and restricted cash at the end of the year                                                    1,525,201,938         1,678,439,026          240,013,589        1,525,201,938           1,678,439,026            240,013,591

                                                  
 
            GreenTree Hospitality Group Ltd.


                                                
 
   Unaudited Reconciliation of GAAP and Non-GAAP Results


                                                                                             Quarter Ended                     
         
 Year Ended


                                                              December                      December        December      December          December        December
                                                                 31, 2024                      31, 2025        31, 2025      31, 2024          31, 2025        31, 2025


                                                                      RMB                           RMB             US$           RMB               RMB             US$



 
            Net income                                    (72,824,109)                  (55,742,166)     (7,971,024)   107,314,353        163,357,235       23,359,774





 
            Deduct:



 Other operating income                                       12,898,817                     59,110,768        8,452,727     60,147,558         77,371,724       11,064,009



 Interest income and other, net                               12,633,535                      9,393,209        1,343,211     40,072,068         37,806,975        5,406,326



 Gains from investment in equity securities                            -                                                                     5,000,000          714,990



 Share of gain in equity investees, net of tax                         -                       818,603          117,059                        4,163,620          595,390



 Other income, net                                            34,336,161                     22,218,587        3,177,216     16,474,064        113,255,005       16,195,250





 
            Add:



 Other operating expenses                                      2,652,292                     40,187,884        5,746,791      7,090,463         51,731,476        7,397,503



 Impairment loss of goodwill                                  81,008,000                     66,491,000        9,508,087     81,008,000         66,491,000        9,508,087



 Other general expenses                                       69,084,799                     49,110,622        7,022,726     80,841,330        100,205,509       14,329,197



 Income tax expenses (benefits)                               12,758,025                    (3,254,084)       (465,328)    88,726,969         45,880,022        6,560,756



 Share of loss in equity investees, net of tax                   700,781                                                    1,165,474



 Interest expenses                                             1,824,933                      2,095,890          299,708      6,310,152          7,644,628        1,093,167



 Depreciation and amortization                                26,575,903                     10,137,484        1,449,641    115,746,538         88,932,782       12,717,219



 Losses from investment in equity securities                   9,544,253                     24,444,565        3,495,526     14,953,679



 
            Adjusted EBITDA (Non-GAAP)                      71,456,364                     41,930,028        5,995,914    386,463,268        286,645,328       40,989,738

                                                                                         Quarter Ended                                         Year Ended


                                                                    December        December           December          December           December            December
                                                                           31, 2024        31, 2025           31, 2025          31, 2024           31, 2025            31, 2025


                                                                                RMB             RMB                US$               RMB                RMB                 US$



 
            Net income                                              (72,824,109)    (55,742,166)        (7,971,024)       107,314,353         163,357,235           23,359,774





 
            Deduct:



 Government subsidies (net of 25% tax)                                   7,122,585        1,800,113             257,413         11,967,221          11,105,111            1,588,010



 Gains from investment in equity securities (net of 25% tax)                                                                                     5,000,000              714,990



 Other income (net of 25% tax)                                          25,752,121       16,663,940           2,382,912         12,355,548         113,451,955           16,223,414





 
            Add:



 Share-based compensation                                                 (46,986)



 Losses from investments in equity securities (net of 25% tax)           7,158,190       18,333,424           2,621,645         11,215,259



 One-time fees and expenses                                                621,172        3,439,673             491,867          2,335,161           3,439,673              491,867



 Impairment loss of goodwill                                            81,008,000       66,491,000           9,508,087         81,008,000          66,491,000            9,508,087



 Other general expenses                                                 69,084,799       49,110,622           7,022,726         80,841,330         100,205,509           14,329,197



 
            Income tax expenses related to dividend distribution       5,698,810                                            19,195,050           7,299,300            1,043,786



 
            Core net income (Non-GAAP)                                57,825,169       63,168,500           9,032,976        277,586,384         211,235,651           30,206,297





 
            Core net income per ADS (Non-GAAP)



 Class A ordinary share-basic and diluted                                     0.57             0.63                0.09               2.73                2.09                 0.30



 Class B ordinary share-basic and diluted                                     0.57             0.63                0.09               2.73                2.09                 0.30

Hotel Operational Data

                                            December 31, December 31,
                                                    2024          2025



 
          Total hotels in operation:            4,425         4,580



   Leased and owned hotels                           55            45



   Franchised hotels                              4,370         4,535



 
          Total hotel rooms in operation      321,282       327,060



   Leased and owned hotels                        6,264         5,130



   Franchised hotels                            315,018       321,930



 
          Number of cities                        352           355

                                    Quarter Ended


               2024 Q4              2025 Q4



  Occupancy rate (as a percentage)



  Leased-and-owned hotels           65.5 %     63.9 %



  Franchised hotels                 68.6 %     64.7 %



  Blended                           68.6 %     64.7 %



  Average daily rate (in RMB)



  Leased-and-owned hotels              241         239



  Franchised hotels                    167         160



  Blended                              169         162



 
            RevPAR (in RMB)



  Leased-and-owned hotels              158         153



  Franchised hotels                    115         104



  Blended                              116         105

                                Number of Hotels in                    Number of Hotel Rooms
                                      Operation                         in
                                                             Operation


                       December                     December             December            December
                       31, 2024                     31, 2025             31, 2024            31, 2025



  Mid-to-up-scale          553                           585                51,649               54,980



  GreenTree Eastern        239                           245                25,683               26,761



  Deepsleep Hotel            8                             9                   610                  710



  Gem                      105                           118                 9,386               10,746



  Gya                       74                            76                 6,155                6,360



  Vx                       105                           110                 9,093                9,127



  others                    22                            27                   722                 1276



  Mid-scale              2,978                         3,026               230,298              227,573



  GreenTree Inn          2,340                         2,394               183,439              186,185



  GT Alliance              505                           498                37,631               32,285



  GreenTree Apartment       24                            29                 1,545                1,760



 Vatica                    109                           105                 7,683                7,343



  Economy hotels           894                           969                39,335               44,507



 Shell                     894                           969                39,335               44,507



 
            Total      4,425                         4,580               321,282              327,060

Restaurant Operational Data

                                             December 31, December 31,
                                                     2024          2025



 
          Total restaurants in operation:          182           191



   Leased and owned restaurants                       18            15



   Franchised restaurants                            164           176



 
          Number of cities                          53            53



 
          Da Niang Dumplings                       161           172



 
          Bellagio                                  21            19



 
          Total restaurants in operation:          182           191

                               Quarter Ended


               2024 Q4         2025 Q4



 
            ADT



 Leased-and-owned restaurants     186         199



 Franchised restaurants            78          79



 Blended                           93          88



 
            AC (in RMB)



 Leased-and-owned restaurants      99          79



 Franchised restaurants            33          29



 Blended                           46          37



 
            ADS (in RMB)



 Leased-and-owned restaurants  18,384      15,790



 Franchised restaurants         2,605       2,321



 Blended                        4,234       3,312

For more information, please contact:

GreenTree

Ms. Selina Yang
Phone: +86-158-2166-6251
E-mail: ir@998.com

Ms. Hannah Zhang
Phone: +86-182-2560-8592
E-mail: ir@998.com

View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-fourth-quarter-and-fiscal-year-2025-financial-results-302757311.html

SOURCE GreenTree Hospitality Group Ltd.

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