GreenTree Hospitality Group Ltd. Reports First Half 2025 Financial Results

Total revenues decreased by 14.2 % year over year to RMB 585.1 million (US$ 81 . 7 million) [1] . Income from operations was RMB 91.5 million (US$ 12.8 million) [1] compared to RMB 156 .7 million for the first half of 202 4 . Net income was RMB 198.8 million (US$ 27.7 million) [1] compared to RMB 119.6 million for the first half of 202 4 . Adjusted EBITDA (non-GAAP) [ 2 ] de creased by 22.2 % year over year to RMB 149.7 million (US$ 20.9 million) [1]。 Core net income (non-GAAP) [ 3 ] de creased by 29.6 % year over year to RMB 92.1 million (US$ 12.9 million) [1] . , /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the first half of 2025. First Half 2025 Operational Highlights Hotels A total of 4,509 hotels with 321,977 hotel rooms were in operation as of June 30, 2025. The Company opened 138 hotels and had a pipeline of 1,245 hotels contracted for or under development as of June 30, 2025. The average daily room rate was RMB157 in the first quarter of 2025, a decrease of 6.9% from RMB169 in the first quarter of 2024, and RMB166 in the second quarter of 2025, a 3.9% year-over-year decrease. The occupancy rate was 64.0% in the first quarter of 2025, down from 67.8% in the first quarter of 2024, and 67.9% in the second quarter of 2025, compared to 72.5% in the second quarter of 2024. Revenue per available room, or RevPAR, was RMB100 in the first quarter of 2025, a 12.1% year-over-year decrease, and RMB113 in the second quarter of 2025, a 10.0% year-over-year decrease. 1.The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1636 on June 30, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20250707/. 2.Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.3.Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax). Restaurants A total of 183 restaurants were in operation as of June 30, 2025 The AC (average check) was RMB48 in the first quarter of 2025, a 21.5% year-over-year decrease, and RMB43 in the second quarter of 2025, a 23.8% year-over-year decrease. The ADT (average daily tickets) was 83 in the first quarter of 2025, down from 94 in the first quarter of 2024, and 85 in the second quarter of 2025, compared to 90 in the second quarter of 2024. The ADS (average daily sales per store) was RMB 4,029 in the first quarter of 2025, a decrease of 37.1% from RMB 5,525 in the first quarter of 2024, and RMB 3,629 in the second quarter of 2025, a 30.5% year-over-year decrease. First Half 202 5 Financial Results Six months Ended June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 228,393,612 89,674,836 - 318,068,448 Franchised-and-managed revenues 308,970,282 3,769,753 - 312,740,035 Wholesales and others 2,085,205 49,505,598 -460,202 51,130,601 Total revenues 539,449,099 142,950,187 -460,202 681,939,084 Six months Ended June 30, 2025 June 30, 2025 June 30, 2025 June 30, 2025 June 30, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 194,759,527 59,058,453 -207,413 253,610,567 35,402,670 Franchised-and-managed revenues 291,753,194 3,176,474 - 294,929,668 41,170,594 Wholesales and others 1,478,298 35,511,759 -443,807 36,546,250 5,101,660 Total revenues 487,991,019 97,746,686 -651,220 585,086,485 81,674,924 Total revenues for the first half of 2025 were RMB585.1 million (US$81.7 million)[1], a 14.2% year-over-year decrease. Hotel revenues were RMB488.0 million (US$68.1 million), a 9.5% year-over-year decrease due to an 11% year-over-year decrease in blended RevPAR across the first half year and the closure of 9 L&O hotels since the third quarter of last year. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB97.7 million (US$13.6 million), a 31.6% year-over-year decrease, mainly due to the decrease in the number of L&O stores and lower ADS in the second quarter low season. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB253.6 million (US$35.4 million)[1], a 20.3% year-over-year decrease. Total revenues from L&O hotels were RMB 194.8 million (US$27.2 million)[1], a 14.7% year-over-year decrease. The decrease was primarily attributable to the closing of 9 L&O hotels since the third quarter of last year, a 3.4% year-over-year decrease in RevPAR, and a reduction in sublease revenues mainly due to lease expiration. Total revenues from L&O restaurants were RMB59.1 million (US$8.2 million)[1], a 34.1% year-over-year decrease, mainly due to the closure of 13 L&O restaurants since the third quarter of 2024 and the year-over-year decrease in ADS. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB294.9 million (US$41.2 million), a 5.7% year-over-year decrease. Total revenues from F&M hotels were RMB291.8 million (US$40.7 million)[1], a 5.6% year-over-year decrease, primarily due to a 11% decrease in F&M hotels' blended RevPAR across the first half year and partially offset by new openings. Total revenues from F&M restaurants were RMB3.2 million (US$0.4 million)[1], a 15.7% year-over-year decrease, mainly due to the year-over-year decrease in ADS and partially offset by new openings. Total revenues from wholesale and others were RMB36.5 million (US$ 5.1 million)[1], a 28.5% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business. Total operating costs and expenses Six Months Ended June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 295,609,282 117,276,623 -440,869 412,445,036 Selling and marketing expenses 28,677,514 5,591,136 -19,334 34,249,316 General and administrative expenses 87,397,198 15,778,679 - 103,175,877 Other operating expenses 938,244 1,481,949 - 2,420,193 Other general expenses 11,756,531 - - 11,756,531 Total operating costs and expenses 424,378,769 140,128,387 -460,203 564,046,953 Six Months Ended June 30, 2025 June 30, 2025 June 30, 2025 June 30, 2025 June 30, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 286,868,623 84,128,367 -651,220 370,345,770 51,698,276 Selling and marketing expenses 22,964,944 4,564,490 - 27,529,434 3,842,961 General and administrative expenses 79,683,639 10,475,363 - 90,159,002 12,585,711 Other operating expenses 4,290,239 442,297 - 4,732,536 660,637 Other general expenses 11,611,311 - - 11,611,311 1,620,877 Total operating costs and expenses 405,418,756 99,610,517 -651,220 504,378,053 70,408,462 Operating costs were RMB370.3 million (US$51.7 million)[1], a 10.2% year-over-year decrease. Operating costs of the hotel business were RMB286.9 million (US$40.0 million)[1], a 0.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization and lower consumable, food and beverage caused by the closing of L&O hotels, partially offset by the rental increase caused by the renewal of certain lease agreements. Operating costs of the restaurant business were RMB84.1 million (US$11.7 million)[1], a 28.3% year-over-year decrease. The decrease was mainly due to the closure of L&O stores. Selling and marketing expenses were RMB27.5 million (US$3.8 million)[1], a 19.6% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB23.0 million (US$3.2 million)[1], a19.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses, traveling and meal expenses. Selling and marketing expenses of the restaurant business were RMB4.6 million (US$0.6 million)[1], an 18.4% year-over-year decrease. General and administrative, or G&A expenses were RMB90.2 million (US$12.6 million)[1], a 12.6% year-over-year decrease. G&A expenses of the hotel business were RMB79.7 million (US$11.1 million)[1], a 14.7% year-over-year decrease. The decrease was mainly due to a decrease in depreciation and amortization and lower consulting fees. G&A expenses of the restaurant business were RMB10.5 million (US$1.5 million)[1], a 33.6% year-over-year decrease, mainly due to lower staff related expenses. Other general expenses of the hotel business were RMB11.6 million (US$1.6 million)[1], a 1.2% year-over-year decrease. These expenses for the first half of 2025 include only the provisions for loan receivables related to franchisee loans. Gross profit was RMB214.7 million (US$30.0 million)[1], a year-over-year decrease of 22.1%. Gross margin was 36.7%, compared to 40.4% in the first half of 2024. Gross profit of the hotel business was RMB201.1 million (US$28.1 million)[1], a 19.5% year-over-year decrease. Gross profit of the restaurant business was RMB13.6 million (US$1.9 million)[1], a 47.0% year-over-year decrease. Income from operations was RMB91.5 million (US$12.8 million)[1] , compared to RMB156.7 million in the first half of 2024, with a margin of 15.6%. Income from operations of the hotel business was RMB93.0 million (US$13.0 million)[1] , compared to income from operations of RMB151.9 million in the first half of 2024, with a margin of 19.1%. Income from operations of the hotel business in the first half of 2024 included the gain form the disposal of a property. Excluding this impact and the impact from the closing of L&O hotels, as well as the impact of bad debts, income from operations purely related to operations decreased by approximately 12.1%. Income (loss) from operations of the restaurant business in the first half of 2025 was a loss of RMB1.5 million (US$0.2 million)[1], compared to income from operations of RMB4.7 million in the first half of 2024, with a margin of -1.5%. Net income in the first half of 2025 was RMB198.8 million (US$27.7 million)[1], compared to net income of RMB119.6 million in the first half of 2024, and net margin was 34.0%. N et income of the hotel business was RMB200.6 million (US$28.0 million)[1], compared to a net income of RMB120.4 million in the first half of 2024, and net margin was 41.1%. Hotel net income was impacted by the divestment of our ownership in Argyle, the realized gain from an equity investment, foreign exchange losses, the closure of L&O hotels, and bad debt expenses driven by accounts receivables. Excluding these factors, net income decreased by almost 9.5%. Net income (loss) of the restaurant business in the first half of 2025 was a loss of RMB1.8 million (US$0.3 million)[1], compared to a net income of RMB3.7 million in the first half of 2024, and net margin was -1.9%. Adjusted EBITDA (non-GAAP) [2] was RMB149.7 million (US$20.9 million)[1], a year-over-year decrease of 22.2%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 25.6%, compared to 28.2% in the first half of 2024. Core net income (non-GAAP) was RMB92.1 million (US$12.9 million)[1], a year-over-year decrease of 29.6%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the first half of 2025 was 15.7%, compared to 19.2% in the first half of 2024. Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB1.99 (US$0.28)[1], increased from RMB1.19 in the first half of 2024. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.91 (US$0.13)[1], decreased from RMB1.29 in the first half of 2024. Cash flow- Operating cash inflow was RMB104.8 million (US$14.6 million)[1] as a result of income from operations. Investing cash inflow for the first half of 2025 was RMB77.0 million (US$10.8 million)[1], which was primarily due to the disposal of our ownership in Argyle. Financing cash outflow was RMB0.2 million (US$0.03 million)[1], due to the repayment of bank loans by the end of June 2025. C ash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,034.9 million (US$284.1 million)[1],compared to RMB1,839.1 million as of December 31, 2024. The increase was mainly attributable to continued operating cash inflow and the divestment of our investment in Argyle. Guidance Based on our performance in the first half of 2025 and considering the impact from closure of certain L&O hotels due to lease expiration and business strategy adjustments, we adjust our previous revenue guidance for the hotel business to -10% to -13% year-over-year. Dividend distribution The board of directors has approved the payment of a cash dividend of US$0.06 per ordinary share, or US$0.06 per American Depositary Share ("ADS") payable to holders of the Company's ordinary shares shown on the Company's record at the close of trading on October 31, 2025 (the "Record Date"). Use of Non-GAAP Financial Measures We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements. The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business. The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance. The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do. Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release. About GreenTree Hospitality Group Ltd. GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2025, GreenTree had a total number of 4,509 hotels and 183 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2024 according to the China Hospitality Association. GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value. For more information on GreenTree, please visit 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, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,490,235,562 1,666,620,666 232,651,274 Restricted cash 16,096,476 11,391,736 1,590,225 Short-term investments 10,475 33,622 4,693 Investments in equity securities - - - Accounts receivable, net of allowance 99,688,034 118,040,098 16,477,762 Amounts due from related parties 21,839,929 21,683,467 3,026,895 Inventories 6,881,470 7,269,088 1,014,726 Other current assets 114,898,590 140,022,478 19,546,384 Loans receivable, net 85,463,467 64,146,183 8,954,462 Total current assets 1,835,114,003 2,029,207,338 283,266,421 Non-current assets: Amounts due from a related party 110,000,000 110,000,000 15,355,408 Restricted cash 18,869,900 18,869,900 2,634,136 Long-term time deposits 285,570,000 285,570,000 39,864,035 Loans receivable, net 15,372,238 12,404,118 1,731,548 Property and equipment, net 649,528,210 631,282,765 88,123,676 Intangible assets, net 75,677,551 74,635,340 10,418,692 Goodwill 96,074,468 96,074,468 13,411,479 Long-term investments 184,024,217 202,703,037 28,296,253 Operating lease right-of-use assets 1,328,582,419 1,352,475,974 188,798,366 Other assets 102,545,848 136,936,782 19,115,638 Deferred tax assets 245,760,095 243,030,389 33,925,734 TOTAL ASSETS 4,947,118,949 5,193,190,111 724,941,386 LIABILITIES AND EQUITY Current liabilities: Long-term bank loans, current portion - - - Short-term bank loans 400,000 400,000 55,838 Accounts payable 56,488,405 48,217,419 6,730,892 Advance from customers 25,684,437 27,171,457 3,792,989 Amounts due to related parties 17,462,176 15,717,073 2,194,019 Salary and welfare payable 78,234,585 78,631,590 10,976,547 Deferred revenue 175,046,178 158,656,395 22,147,579 Accrued expenses and other current liabilities 481,910,291 528,230,470 73,738,130 Income tax payable 88,876,497 85,376,977 11,918,166 Dividends payable - - - Operating lease liabilities, current 241,363,244 253,428,345 35,377,233 Total current liabilities 1,165,465,813 1,195,829,726 166,931,393 Long-term bank loans 256,200,000 256,000,000 35,736,222 Deferred revenue 176,353,919 167,654,624 23,403,683 Other long-term liabilities 120,975,955 119,503,626 16,682,063 Operating lease liabilities, non-current 1,215,776,075 1,259,009,381 175,750,933 Deferred tax liabilities 79,670,908 59,930,841 8,366,023 Unrecognized tax benefits 440,072,214 445,234,185 62,152,296 TOTAL LIABILITIES 3,454,514,884 3,503,162,383 489,022,613 Shareholders' equity: Class A ordinary shares 222,587,070 222,587,070 31,071,957 Class B ordinary shares 115,534,210 115,534,210 16,127,954 Treasury Stock -37,043,116 -48,049,536 -6,707,457 Additional paid-in capital 1,680,148,272 1,609,972,272 224,743,463 Retained earnings (Accumulated losses) -528,513,570 -256,875,683 -35,858,463 Accumulated other comprehensive income 6,033,263 15,696,666 2,191,170 Total GreenTree Hospitality Group Ltd. shareholders' equity 1,458,746,128 1,658,864,999 231,568,624 Non-controlling interests 33,857,937 31,162,729 4,350,149 Total shareholders' equity 1,492,604,065 1,690,027,728 235,918,773 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,947,118,949 5,193,190,111 724,941,386 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income Six Months Ended June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ Revenues Leased-and-operated revenues 318,068,448 253,610,567 35,402,670 Franchised-and-managed revenues 312,740,035 294,929,668 41,170,594 Wholesales and others 51,130,601 36,546,250 5,101,660 Total revenues 681,939,084 585,086,485 81,674,924 Operating costs and expenses Operating costs -412,445,036 -370,345,770 -51,698,276 Selling and marketing expenses -34,249,316 -27,529,434 -3,842,961 General and administrative expenses -103,175,877 -90,159,002 -12,585,711 Other operating expenses -2,420,193 -4,732,536 -660,637 Other general expenses -11,756,531 -11,611,311 -1,620,877 Total operating costs and expenses -564,046,953 -504,378,053 -70,408,462 Other operating income 38,768,237 10,762,347 1,502,366 Income from operations 156,660,367 91,470,779 12,768,828 Interest income and other, net 19,950,499 18,563,426 2,591,354 Interest expense -4,369,058 -3,817,915 -532,960 Gains (losses) from investment in equity securities -15,424,655 24,800,795 3,462,057 Other income, net 16,791,024 97,329,451 13,586,667 Income before income taxes 173,608,177 228,346,536 31,875,946 Income tax expense -53,181,694 -30,183,730 -4,213,486 Income (loss) before share of gains in equity investees 120,426,483 198,162,806 27,662,460 Share of loss/(income) in equity investees, net of tax -869,757 603,873 84,297 Net income(loss) 119,556,726 198,766,679 27,746,757 Net loss/(income) attributable to non-controlling interests 1,030,179 2,695,208 376,237 Net income attributable to ordinary shareholders 120,586,905 201,461,887 28,122,994 Net earnings per share1 Class A ordinary share-basic and diluted 1.19 1.99 0.28 Class B ordinary share-basic and diluted 1.19 1.99 0.28 Net earnings per ADS Class A ordinary share-basic and diluted 1.19 1.99 0.28 Class B ordinary share-basic and diluted 1.19 1.99 0.28 Weighted average shares outstanding Class A ordinary share-basic and diluted 66,780,612 66,636,925 66,636,925 Class B ordinary share-basic and diluted 34,762,909 34,762,909 34,762,909 Other comprehensive income, net of tax Foreign currency translation adjustments -8,105,751 9,663,403 1,348,959 Unrealized gains(loss) on available-for-sale investments, net of tax Comprehensive income, net of tax 111,450,975 208,430,082 29,095,716 Comprehensive loss/(income) attributable to non-controlling interests 1,030,179 2,695,208 376,237 Comprehensive income (loss) attributable to ordinary shareholders 112,481,154 211,125,290 29,471,953 1. Each ADS represents one ordinary share. EPS per ADS equals EPS per ordinary share. GreenTree Hospitality Group Ltd. Unaudited Hotel Business Results Six Months Ended June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ Revenues Leased-and-operated revenues 228,393,613 194,759,527 27,187,382 Franchised-and-managed revenues 308,970,282 291,753,194 40,727,175 Others 2,085,206 1,478,297 206,362 Total revenues 539,449,101 487,991,018 68,120,919 Operating costs and expenses Hotel operating costs -295,609,282 -286,868,623 -40,045,316 Selling and marketing expenses -28,677,514 -22,964,944 -3,205,783 General and administrative expenses -87,397,198 -79,683,639 -11,123,407 Other operating expenses -938,244 -4,290,239 -598,894 Other general expenses -11,756,531 -11,611,311 -1,620,877 Total operating costs and expenses -424,378,769 -405,418,756 -56,594,277 Other operating income 36,850,398 10,391,669 1,450,621 Income from operations 151,920,730 92,963,931 12,977,263 Interest income and other, net 19,908,718 18,502,925 2,582,909 Interest expense -4,369,058 -3,769,199 -526,160 Gains (losses) from investment in equity securities -10,784,976 24,800,795 3,462,057 Other income, net 16,709,039 97,352,813 13,589,929 Income before income taxes 173,384,453 229,851,265 32,085,998 Income tax expense -52,101,925 -29,850,815 -4,167,013 Income (loss) before share of gains in equity investees 121,282,528 200,000,450 27,918,985 Share of loss/(income) in equity investees, net of tax -869,757 603,873 84,297 Net income(loss) 120,412,771 200,604,323 28,003,282 GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results Six Months Ended June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ Revenues Leased-and-operated revenues 89,674,836 59,058,453 8,244,242 Franchised-and-managed revenues 3,769,753 3,176,474 443,419 Wholesales and others 49,505,597 35,511,759 4,957,250 Total revenues 142,950,186 97,746,686 13,644,911 Operating costs and expenses Restaurant operating costs -117,276,623 -84,128,367 -11,743,867 Selling and marketing expenses -5,591,136 -4,564,490 -637,178 General and administrative expenses -15,778,679 -10,475,363 -1,462,304 Other operating expenses -1,481,949 -442,297 -61,743 Other general expenses - - - Total operating costs and expenses -140,128,387 -99,610,517 -13,905,092 Other operating income 1,917,838 370,679 51,745 Income from operations 4,739,637 -1,493,152 -208,436 Interest income and other, net 41,782 60,501 8,446 Interest expense - -48,716 -6,800 Gains (losses) from investment in equity securities - - - Other income, net -27,094 -23,362 -3,262 Income before income taxes 4,754,325 -1,504,729 -210,052 Income tax expense -1,079,769 -332,915 -46,473 Income (loss) before share of gains in equity investees 3,674,556 -1,837,644 -256,525 Share of loss/(income) in equity investees, net of tax - - - Net income(loss) 3,674,556 -1,837,644 -256,525 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ Operating activities: Net (loss) income 119,556,728 198,766,679 27,746,759 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,479,676 52,696,207 7,356,107 Noncash lease expense 137,229,448 129,173,622 18,031,942 Loss from disposal of a subsidiary -839,682 - - Bad debt expenses 21,768,072 25,491,737 3,558,509 Losses (Gains) and impairment on equity securities held 15,424,655 -24,800,795 -3,462,057 (Gains) losses on disposal of property, plant and equipment -25,116,235 190,764 26,630 Foreign exchange （gains）losses -8,763,951 5,889,694 822,170 Others non-cash expense(income) -4,315,806 -603,873 -84,297 (Gains) from the disposal of long-term investments - -114,042,806 -15,919,762 Accounts receivable -7,729,152 -32,232,489 -4,499,482 Inventories 14,889,563 -387,618 -54,109 Amounts due from related parties 299,828 433,622 60,531 Other current assets 5,084,951 -24,680,055 -3,445,203 Other assets 1,300,958 -9,355,971 -1,306,043 Accounts payable -12,560,243 -8,291,559 -1,157,457 Amounts due to related parties -1,404,655 -1,960,078 -273,616 Salary and welfare payable -1,424,059 397,005 55,420 Deferred revenue -31,702,936 -25,089,078 -3,502,300 Advance from customers -417,287 1,487,020 207,580 Accrued expenses and other current liabilities -3,285,616 46,320,173 6,466,047 Income tax payable -8,261,323 -3,499,520 -488,514 Unrecognized tax benefits -6,196,090 5,161,971 720,583 Operating lease liabilities -109,769,095 -97,768,770 -13,647,994 Other long-term liabilities -8,319,829 -1,472,329 -205,529 Deferred taxes 13,966,300 -17,010,361 -2,374,555 Net cash provided by operating activities 159,894,221 104,813,193 14,631,360 Investing activities: Purchases of property, plant and equipment -20,193,926 -19,357,542 -2,702,209 Purchases of intangible assets - - - Proceeds from disposal of property, plant and equipment 139,733,100 237,334 33,131 Payment for acquisition of minority equity -966,000 - - Proceeds from disposal of a long-term investment - 109,036,386 15,220,893 Advances for purchases of property and equipment - -25,034,964 -3,494,746 Purchases of short-term investments - -23,147 -3,231 Proceeds from short-term investments 419,362,037 - - Proceeds from long-term time deposits -222,230,000 - - Proceeds from disposal of subsidiaries 1,500,000 - - Loan to related parties -270,000 -625,000 -87,247 Repayment from related parties - 118,982 16,609 Loan to third parties -1,200,000 - - Repayment of loan from third parties 5,595,889 - - Loan to franchisees -1,600,000 -2,010,000 -280,585 Repayment from franchisees 50,977,221 14,684,093 2,049,820 Net cash (used in) provided by investing activities 370,708,321 77,026,142 10,752,435 Financing activities: Distribution to the shareholders -760,321 - - Repayment of short-term loans -117,000,000 -200,000 -27,919 Proceeds from bank loans 200,000,000 - - Net cash provided by (used in) financing activities 82,239,679 -200,000 -27,919 Effect of exchange rate changes on cash and cash equivalents and restricted cash -2,799,929 -9,958,977 -1,390,220 Net (decrease) increase in cash and cash equivalents 610,042,292 171,680,358 23,965,656 Cash and cash equivalents at the beginning of the period 791,600,712 1,525,201,938 212,909,981 Cash and cash equivalents at the end of the period 1,401,643,003 1,696,882,296 236,875,637 GreenTree Hospitality Group Ltd. Unaudited Reconciliation of GAAP and Non-GAAP Results Six Months Ended June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ Net income 119,556,728 198,766,679 27,746,759 Deduct: Other operating income 38,768,236 10,762,348 1,502,366 Interest income and other, net 19,950,499 18,563,426 2,591,354 Gains from investment in equity securities - 24,800,795 3,462,057 Share of gain in equity investees, net of tax - 603,873 84,297 Other income, net 16,791,024 97,329,451 13,586,667 Add: Other operating expenses 2,420,193 4,732,536 660,637 Other general expenses 11,756,531 11,611,311 1,620,877 Income tax expenses (benefits) 53,181,694 30,183,730 4,213,486 Share of loss in equity investees, net of tax 869,757 - - Interest expenses 4,369,058 3,817,915 532,960 Depreciation and amortization 60,479,676 52,696,207 7,356,106 Losses from investment in equity securities 15,424,655 - - Other expense, net - - - Adjusted EBITDA (Non-GAAP) 192,548,532 149,748,485 20,904,084 Six Months Ended June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ Net income 119,556,728 198,766,679 27,746,759 Deduct: Government subsidies (net of 25% tax) 469,886 5,447,641 760,461 Gains from investment in equity securities - 18,600,596 3,462,057 Other income (net of 25% tax) 12,593,268 101,507,790 14,169,941 Add: Share-based compensation 31,324 - - Losses from investments in equity securities (net of 25% tax) 11,568,491 - - Other expense (net of 25% tax) - - - One-time fees and expenses 1,055,008 - - Other general expenses 11,756,531 11,611,311 1,620,877 Income tax expenses related to dividend distribution - 7,299,300 1,018,943 Core net income (Non-GAAP) 130,904,926 92,121,263 11,994,120 Core net income per ADS (Non-GAAP) Class A ordinary share-basic and diluted 1.29 0.91 0.12 Class B ordinary share-basic and diluted 1.29 0.91 0.12 Hotel Operational Data June 30, 202 4 June 30, 202 5 Total hotels in operation: 4,272 4,509 Leased and owned hotels 62 55 Franchised hotels 4,210 4,454 Total hotel rooms in operation 312,734 321,977 Leased and owned hotels 6,937 6,772 Franchised hotels 305,797 315,245 Number of cities 353 357 Quarter Ended 202 4 Q 1 202 5 Q 1 Occupancy rate (as a percentage) Leased-and-owned hotels 66.6 % 61.0 % Franchised hotels 67.9 % 64.1 % Blended 67.8 % 64.0 % Average daily rate (in RMB) Leased-and-owned hotels 235 236 Franchised hotels 167 155 Blended 169 157 RevPAR (in RMB) Leased-and-owned hotels 157 144 Franchised hotels 113 99 Blended 114 100 Quarter Ended 202 4 Q 2 202 5 Q 2 Occupancy rate (as a percentage) Leased-and-owned hotels 70.7 % 72.3 % Franchised hotels 72.6 % 67.8 % Blended 72.5 % 67.9 % Average daily rate (in RMB) Leased-and-owned hotels 250 245 Franchised hotels 171 164 Blended 173 166 RevPAR (in RMB) Leased-and-owned hotels 177 177 Franchised hotels 124 111 Blended 135 113 Number of Hotels in Operation Number of Hotel Rooms in Operation June 30, 202 4 June 30, 202 5 June 30, 202 4 June 30, 202 5 Mid-to-up-scale 505 569 47,697 52,773 GreenTree Eastern 227 236 24,493 25,107 Deepsleep Hotel 7 8 534 610 Gem 82 119 7,258 10,781 Gya 75 72 6,238 6,012 Vx 99 108 8,695 9,024 Others 15 26 499 1,239 Mid-scale 2,948 3,005 229,970 226,336 GreenTree Inn 2,315 2,366 182,957 184,561 GT Alliance 428 408 32,726 25,930 GreenTree Apartment 21 24 1,385 1,545 Vatica 109 107 7,705 7,481 Geli 75 100 5,197 6,819 Economy hotels 819 935 35,067 42,868 Shell 819 935 35,067 42,868 Others - - - - Total 4,272 4,509 312,734 321,977 Restaurant Operational Data June 30, 2024 June 30, 2025 Total restaurants in operation: 183 183 Leased and owned restaurants 24 15 Franchised restaurants 159 168 Number of cities1 64 53 Da Niang Dumplings 155 164 Bellagio 28 19 Quarter Ended 2024 Q1 2025 Q1 ADT Leased-and-owned restaurants 155 210 Franchised restaurants 81 71 Blended 94 83 AC (in RMB) Leased-and-owned restaurants 113 98 Franchised restaurants 42 35 Blended 59 48 ADS (in RMB) Leased-and-owned restaurants 17,580 20,545 Franchised restaurants 3,364 2,459 Blended 5,525 4,029 Quarter Ended 2024 Q1 2025 Q1 ADT Leased-and-owned restaurants 165 215 Franchised restaurants 73 74 Blended 90 85 AC (in RMB) Leased-and-owned restaurants 105 88 Franchised restaurants 38 32 Blended 53 43 ADS (in RMB) Leased-and-owned restaurants 17,306 18,931 Franchised restaurants 2,814 2,363 Blended 4,737 3,629 1. Store mix shifted to fewer cities due to closures and relocations. For more information, please contact: GreenTree Ms. Selina YangPhone: +86-158-2166-6251E-mail: [email protected] Ms. Hannah ZhangPhone: +86-182-2560-8592E-mail: [email protected] Christensen In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: mailto:[email protected] In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: [email protected] In the US Ms. Linda Bergkamp Phone: +1-480-614-3004E-mail: [email protected] SOURCE GreenTree Hospitality Group Ltd. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

GreenTree Hospitality Group Ltd. Reports First Half 2025 Financial Results

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