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GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

1. GreenTree's total revenues declined 18.2% year over year to RMB304.5 million. 2. Hotel revenue decreased 17.1%, mainly due to lower RevPAR and hotel closures. 3. Restaurant revenue fell 25.8%, driven by closures and lower sales per store. 4. Net income for Q4 2024 was RMB-72.8 million, a significant drop from previous year. 5. Cash from operations increased to RMB74.2 million, highlighting operational resilience despite losses.

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Why Bearish?

GreenTree's significant revenue and net income declines indicate struggling operations, which could lower investor sentiment.

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The article presents critical financial results and outlook, directly influencing market perception of GHG.

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Immediate negative sentiment will likely impact stock price, but long-term recovery strategies might stabilize future performance.

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Total revenues decreased by 18.2% year over year to RMB304.5 million (US$41.7 million)[1]. Net income was RMB-72.8million (US$-10.0 million)[1] compared to RMB8.6 million for the fourth quarter of 2023. Adjusted net income[2] was RMB77.3 million (US$10.6 million)[1] compared to RMB60.9 million for the fourth quarter of 2023. Cash from operations increased year over year to RMB74.2 million (US$10.2 million)[1]. , /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2024. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of GreenTree Inns Hotel Management Group, Inc., until their acquisition by the Company, the acquisition was accounted for a common-control acquisition in a manner similar to the pooling -of-interests method. The consolidated balance sheets and consolidated statements of comprehensive income/(loss) include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control. In this report, the comparative financial data have been restated to reflect the business combinations under common control. Fourth Quarter of 2024 Operational Highlights Hotels  A total of 4,425 hotels with 321,282 hotel rooms were in operation as of December 31, 2024. The Company opened 143 hotels and had a pipeline of 1,214 hotels contracted for or under development as of December 31, 2024.  The average daily room rate was RMB169, a decrease of 4.6% from RMB177 in the fourth quarter of 2023. The occupancy rate was 68.6%, down from 72.4% in the fourth quarter of 2023. Revenue per available room, or RevPAR, was RMB116, a 9.6% year-over-year decrease.  Restaurants A total of 182 restaurants were in operation as of December 31, 2024. The AC (average check) was RMB46, a 11.0% year-over-year decrease. The ADT (average daily tickets) was 93, down from 99 in the fourth quarter of 2023. The ADS (average daily sales per store) was RMB4,234, a decrease of 16.8% from RMB5,090 in the fourth quarter of 2023. [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2993 on December 31, 2024 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20220103/.  [2] Adjustd net income is defined as net income excluding the impairment of goodwill and trademarks of restaurant business，impairment of assets, and provisions for loan receviables related to franchisee loans. Our performance in the fourth quarter was negatively impacted by the closure of 12 leased and managed hotels during the year, lower RevPar compared to a high base last year, and the continued optimization of our restaurant business. In our hotel business we are simultaneously accelerating the opening of new hotels, with a planned 480 in 2025, and upgrading our existing portfolio with an absolute focus on quality to ensure higher standards of products and services. We believe that the rejuvenation of our portfolio that was slowed down by the pandemic will be completed by the Summer of 2026. While Midscale remains our core segment, hotel openings in 2024 and our pipeline highlight our strategic commitment to expanding our Mid-to-upscale segment where we expect growth over the next two years to deliver significant economies of scale. Finally, we will continue the phased closure of leased and managed hotels, retaining only select flagship properties in key cities to serve as showcases of our capabilities for prospective franchisees.  The strategic transformation of our restaurant business made further progress on our two priorities. At the end of the quarter, franchised and managed stores accounted for almost 90% of all stores up from 78% a year ago , and street stores that benefit from more stable consumer traffic accounted for 50% of all stores, up from 40% a year ago. Additionally, we have been rightsizing many of our stores, reflecting the new economic reality, to improve overall profitability. We believe we now have a strong foundation to build on and will grow the overall number of restaurants in 2025 with a particular focus on franchised and managed as well as street stores. Quarter Ended  December 31, 2023  December 31, 2023  December 31, 2023  December 31, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 125,521,090 48,191,718 1,075,555 174,788,363 Franchised-and-managed revenues 162,861,219 1,687,913 - 164,549,132 Wholesales and others 1,267,181 37,843,179 (6,284,349) 32,826,011 Total revenues 289,649,490 87,722,810 (5,208,794) 372,163,506 Quarter Ended   December 31, 2024   December 31, 2024   December 31, 2024   December 31, 2024   December 31, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 90,969,160 28,534,041 (207,412) 119,295,789 16,343,456 Franchised-and-managed revenues 148,174,447 4,759,771 - 152,934,218 20,951,902 Wholesales and others 1,026,363 31,759,229 (495,936) 32,289,656 4,423,665 Total revenues 240,169,970 65,053,041 (703,348) 304,519,663 41,719,023 2024 Financial Results Year Ended   December 31, 2023   December 31, 2023   December 31, 2023   December 31, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 490,924,060 296,890,282 - 787,814,342 Franchised-and-managed revenues 696,321,236 8,923,712 - 705,244,948 Wholesales and others 4,660,777 135,821,972 (6,284,350) 134,198,399 Total revenues 1,191,906,073 441,635,966 (6,284,350) 1,627,257,689 Year Ended   December 31, 2024   December 31, 2024   December 31, 2024   December 31, 2024   December 31, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 437,521,898 159,326,153 (207,411) 596,640,640 81,739,433 Franchised-and-managed revenues 625,072,856 10,287,457 - 635,360,313 87,044,006 Wholesales and others 3,908,057 109,031,616 (1,500,428) 111,439,245 15,267,114 Total revenues 1,066,502,811 278,645,226 (1,707,839) 1,343,440,198 184,050,553 Total revenues were RMB304.5 million (US$41.7 million)[1]，a 18.2% year-over-year decrease. Hotel revenues were RMB240.2 million (US$32.9 million)[1], a 17.1% year-over-year decrease. The decrease was mainly attributable to a 9.8% decrease in F&M hotels' Revpar and the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease. Restaurant revenues were RMB65.1 million (US$8.9 million)[1], a 25.8% year-over-year decrease. The decrease was mainly due to the closure of L&O stores, and a 16.8% decrease in ADS. Total revenues for the year were RMB1,343.4 million (US$184.1 million)[1], a 17.4% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB119.3 million (US$16.3 million)[1], a 31.7% year-over-year decrease.  Total revenues from L&O hotels were RMB91.0 million (US$12.5 million)[1], a 27.5% year-over-year decrease. The decrease was mainly attributable to the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease. Same L&O hotel revenues in the fourth quarter of 2024 decreased by 2.4% year over year.  Total revenues from L&O restaurants were RMB28.5 million (US$3.9 million)[1], a 40.8 % year-over-year decrease. The decrease was mainly due to the closure of 24 L&O stores during the year and offset by 47.1% increase in ADS. Same L&O store revenues in the fourth quarter of 2024 decreased by 3.1% year over year. Total revenues from L&O hotels and restaurants for the year were RMB596.6 million (US$81.7 million)[1], a 24.3% year-over-year decrease.  Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB152.9 million (US$21.0 million)[1], a 7.1% year-over-year decrease. Total revenues from F&M hotels were RMB148.2 million (US$20.3 million)[1], a 9.0% year-over-year decrease, mainly due to a 9.8% decrease in F&M hotels' Revpar.  Total revenues from F&M restaurants were RMB4.8 million (US$0.7 million)[1], a 182.0% year-over-year increase. The increase was mainly due to the opening of 39 F&M restaurants during the year. Total revenues from F&M hotels and restaurants for the year were RMB635.4 million (US$87.0 million)[1], a 9.9% year-over-year decrease.  Total revenues from wholesale and others were RMB32.3 million (US$4.4 million)[1], a 1.6% year-over-year decrease. Total revenues from wholesale and others for the year were RMB111.4 million (US$15.3 million)[1], a 17.0% year-over-year decrease. Total operating costs and expenses Quarter Ended  December 31, 2023  December 31, 2023  December 31, 2023  December 31, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 154,556,991 66,896,044 (9,861,359) 211,591,676 Selling and marketing expenses 8,318,853 2,821,243 (49,623) 11,090,473 General and administrative expenses 49,670,060 8,374,981 - 58,045,041 Other operating expenses 3,429,367 139,799 - 3,569,166 Impairment loss of goodwill - - - - Other general expenses 36,260,493 16,027,000 - 52,287,493 Total operating costs and expenses 252,235,764 94,259,067 (9,910,982) 336,583,849 Quarter Ended  December 31, 2024  December 31, 2024  December 31, 2024  December 31, 2024  December 31, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 139,910,728 59,854,076 (791,324) 198,973,480 27,259,255 Selling and marketing expenses 13,451,271 4,083,785 87,975 17,623,031 2,414,345 General and administrative expenses 39,695,498 3,347,191 - 43,042,689 5,896,824 Other operating expenses 2,635,870 16,422 - 2,652,292 363,363 Impairment loss of goodwill 81,008,000 81,008,000 11,098,050 Other general expenses 30,012,799 39,072,000 - 69,084,799 9,464,579 Total operating costs and expenses 225,706,166 187,381,474 (703,349) 412,384,291 56,496,416 Year Ended  December 31, 2023  December 31, 2023  December 31, 2023  December 31, 2023 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 598,841,951 359,018,687 (10,421,824) 947,438,814 Selling and marketing expenses 47,434,683 24,232,973 (49,623) 71,618,033 General and administrative expenses 166,861,387 41,572,291 - 208,433,678 Other operating expenses 4,453,446 7,251,107 - 11,704,553 Impairment loss of goodwill - - - - Other general expenses 63,556,586 16,027,000 - 79,583,586 Total operating costs and expenses 881,148,053 448,102,058 (10,471,447) 1,318,778,664 Year Ended  December 31, 2024  December 31, 2024  December 31, 2024  December 31, 2024  December 31, 2024 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 593,798,806 230,496,349 (1,707,841) 822,587,314 112,694,000 Selling and marketing expenses 55,028,196 12,556,863 - 67,585,059 9,259,115 General and administrative expenses 156,401,775 26,149,319 - 182,551,094 25,009,397 Other operating expenses 4,937,315 2,153,148 - 7,090,463 971,389 Impairment loss of goodwill - 81,008,000 - 81,008,000 11,098,050 Other general expenses 41,769,330 39,072,000 - 80,841,330 11,075,217 Total operating costs and expenses 851,935,422 391,435,679 (1,707,841) 1,241,663,260 170,107,169 Operating costs were RMB199.0 million (US$ 27.3 million)[1], a 6.0% year-over-year decrease. Operating costs of the hotel business were RMB139.9 million (US$19.2million)[1], a 9.5% year-over-year decrease. The decrease was mainly attributable to the closure of 12 L&O stores in 2024, which resulted in lower rental, consumable, food and beverage, and staff related costs. Operating costs of the restaurant business were RMB59.9million (US$8.2 million)[1], a 10.5% year-over-year decrease. The decrease was mainly due to the closure of 24 L&O stores. For the year, operating costs were RMB822.6 million (US$112.7 million)[1], representing an 13.2% decrease. Selling and marketing expenses were RMB17.6 million (US$2.4 million)[1], a 58.9% year-over-year increase. Selling and marketing expenses of the hotel business were RMB13.5 million (US$1.8 million)[1], a 61.7% year-over-year increase. Selling and marketing expenses of the restaurant business were RMB4.1 million (US$0.6 million)[1].. For the year, selling and marketing expenses were RMB67.6 million (US$9.3 million)[1], a 5.6% decrease.  General and administrative, or G&A expenses were RMB43.0 million (US$5.9 million)[1], a 25.8% year-over-year decrease. G&A expenses of the hotel business were RMB39.7 million (US$5.4 million)[1], a 20.1% year-over-year decrease. The decrease was mainly due to lower consulting fees, lower bad debts from accounts receivables, and lower G&A staff related expenses. G&A expenses of the restaurant business were RMB3.3 million (US$0.5 million)[1], a 60.0 % year-over-year decrease. The decrease was mainly due to lower staff related expenses. For the year, G&A expenses were RMB182.6 million (US$25.0 million)[1], a 12.4% year-over-year decrease.  Impairment loss of goodwill were RMB81.0million (US$11.1 million)[1], These expenses were impairment of goodwill related to the restaurant business. Other general expenses were RMB69.1million (US$9.5 million)[1], a 32.1% year-over-year increase. These expenses include impairment of trademarks related to the restaurant business, impairment of assets, and provisions for franchisee loans receivables related to franchisee loans. Gross profit was RMB105.5 million (US$14.5 million)[1], a year-over-year decrease of 34.3%. Gross margin was 34.7%, compared to 43.1% a year ago. The gross profit of the hotel business was RMB100.3 million (US$13.7 million)[1], an 25.8% year-over-year decrease. The gross profit of the restaurant business was RMB5.2 million (US$0.7 million)[1], a 75.0% year-over-year decrease. Gross profit for the year was RMB520.9 million (US$71.4 million) [1], a 23.4% year-over-year decrease. Income from operations was RMB-95.0 million (US$-13.0 million)[1] ,compared to income from operations of RMB46.9million in the fourth quarter of 2023, with a margin of -31.2%. Excluding impairment loss of goodwill and other general expenses, income from operations was RMB55.1 million(US$7.6million) with a margin of 18.1%. Income from operations of the hotel business was RMB26.1 million (US$3.6 million)[1], compared to an income from operations of RMB47.4 million in the fourth quarter of 2023, with a margin of10.9%. Excluding other general expenses, income from operations of the hotel business was RMB56.1 million (US$7.7 million), a decrease of 32.9%, with a margin of 23.4%. Loss from operations of the restaurant business was RMB121.1 million (US$16.6 million)[1], compared to loss from operations of RMB5.1 million in the fourth quarter of 2023, with a margin of -186.1%. Excluding impairment loss of goodwill and other general expenses, loss from operations of the restaurant business was RMB1.0 million(US$0.1million) with a margin of -1.5%. Income from operations for the year was RMB161.9 million (US$22.2 million) [1] compared to income from operations of RMB335.6 million in 2023, with a margin of 12.1%. Net income was RMB-72.8million (US$-10.0 million)[1], compared to a net income of RMB8.6  million in the fourth quarter of 2023, and net margin was -23.9%. Excluding impairment loss of goodwill and other general expenses, adjusted net income increased 26.8% year over year to RMB77.3 million(US$10.6 million) [1]  with a margin of 25.4%. Net income of the hotel business was RMB28.4 million (US$3.9 million)[1], compared to a net income of RMB8.1 million in the fourth quarter of 2023, and net margin was 11.8%. Excluding other general expenses, adjusted net income of the hotel business increased 31.7% to RMB58.4 million (US$8.0 million)[1] with a margin of 24.3%. Net loss of the restaurant business was RMB101.2million (US$13.9million)[1], compared to a net loss of RMB2.9million in the fourth quarter of 2023, and net margin was -155.5%. Excluding the impairment of trademarks and goodwill, adjusted net income of the restaurant business was RMB18.9 million(US$2.6 million)[1] with a margin of 29.1%. Net income for the year was RMB107.3 million (US$14.7 million)[1] compared to net income of RMB260.5 million in 2023, with a margin of 8.0%. Excluding the impairment of goodwill due to the restaurant business and other general expenses, adjusted net income decreased 20.9% to RMB269.2 million with a margin of 20.0%. Adjusted EBITDA (non-GAAP)[2] was RMB71.5 million (US$9.8 million)[1], a year-over-year  decrease of 38.3%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 23.5%, compared to 31.1% a year ago. Adjusted EBITDA (non-GAAP) for the year was RMB386.5 million (US$52.9 million)[1], a year-over-year decrease of 25.2%. Core net income (non-GAAP) was RMB57.8million (US$7.9 million)[1], a year-over-year decrease of 22.3%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 19.0%, compared to 20.0% one year ago. Core net income (non-GAAP) for the year was RMB277.6 million (US$38.0 million)[1], a year-over-year decrease of 13.3%. Earnings per American Depositary Share, or ADS, (basic and diluted) were  RMB-0.70(US$-0.10 )[1], down from RMB0.12 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.57 (US$0.08 )[1], down from RMB0.73 a year ago. Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)[1], increaed from RMB 0.10 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) for the hotel business were RMB0.45 (US$0.06)[1]. Earnings per ADS (basic and diluted) for the year of 2024 was RMB1.08 (US$0.15)[1] down from RMB2.64 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB2.73 (US$0.37)[1] for the year, a decrease from RMB3.14 a year ago.   Cash flow Operating cash inflow was RMB 74.2 million (US$10.2 million)[1] as a result of income from operations. Investing cash outflow for the fourth quarter 2024 was RMB 25.2million (US$3.5million)[1], which was primarily attributable to investment of property and purchases of equipment, and was partially offset by proceeds from disposal of equity securities. Financing cash outflow was RMB 70.4 million (US$9.7 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. Asof December 31, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB 1,839.1 million (US$252.0 million)[1], compared to RMB1,883.9million as of September 30, 2024. The decrease was primarily due to dividends distributed to the shareholders and investment of property, partially offset by cash from operating activities. 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 2025 to be flat compared to their 2024 levels. The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year. Conference Call GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on April 24, 2025, (8:00 PM Beijing/Hong Kong Time on April 24, 2025). Dial-in numbers for the live conference call are as follows: International  1-412-902-4272  Mainland China 4001-201-203  US  1-888-346-8982  Hong Kong  800-905-945 or 852-3018-4992  Singapore 800-120-6157  Participants should ask to join the GreenTree call, please dial in approximately 10 minutes before the scheduled time of the call. A telephone replay of the conference call will be available after the conclusion of the live conference call until May 1, 2025. Dial-in numbers for the replay are as follows: International Dial-in  1-412-317-0088 U.S. Toll Free  1-877-344-7529 Canada Toll Free 855-669-9658 Passcode: 2742742 Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com. Use of Non-GAAP Financial Measures We believe that Adjusted EBITDA and core net income, as we present them, are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions, income taxes and certain non-core and non-recurring items in our financial statements. The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business. The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets, income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization, interest expense/income, gains/losses from investments in equity securities, income tax expenses, share-based compensation, share of loss in equity investees, government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance. The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP, and Adjusted EBITDA and core net income are not measures of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance, you should not consider this data in isolation or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do. Reconciliations of the Company's non-GAAP financial measures, including Adjusted EBITDA and core net income, to the consolidated statement of operations information are included at the end of this press release. About GreenTree Hospitality Group Ltd. GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of December 31, 2024, GreenTree had a total number of 4,425 hotels and 182 restaurants. In 2023, HOTELS magazine ranked GreenTree 12th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2022 according to the China Hospitality Association. In 2023, GreenTree completed its acquisition of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China. GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, superior system management with moderate charges, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value. For more information on GreenTree, please visit http://ir.998.com Safe Harbor Statements This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," "confident," "future," or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree's current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree's goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events. Financial Tables and Operational Data Follow  GreenTree Hospitality Group Ltd.  Unaudited Condensed Consolidated Balance Sheets  December 31,  December 31,  December 31, 2023 2024 2024  RMB  RMB  US$  ASSETS  Current assets:  Cash and cash equivalents 765,547,547 1,490,235,562 204,161,435  Restricted cash 6,576,906 16,096,476 2,205,208  Short-term investments 417,711,617 10,475 1,435  Investments in equity securities 26,076,169 - -  Accounts receivable, net of allowance 123,887,879 99,688,034 13,657,205  Amounts due from related parties 19,928,781 21,839,929 2,992,058  Prepaid rent - - -  Inventories 20,462,490 6,881,470 942,758  Other current assets 117,047,122 114,898,590 15,741,042  Loans receivable, net 129,521,094 85,463,467 11,708,447  Deferred tax assets - - -  Total current assets 1,626,759,605 1,835,114,003 251,409,588  Non-current assets:  Amounts due from a related party 110,000,000 110,000,000 15,069,938  Restricted cash 19,476,259 18,869,900 2,585,166  Long-term time deposits 63,340,000 285,570,000 39,122,930  Loans receivable, net 70,690,305 15,372,238 2,105,988  Property and equipment, net 814,949,026 649,528,210 88,985,000  Intangible assets, net 117,720,693 75,677,551 10,367,782  Goodwill 177,082,468 96,074,468 13,162,148  Long-term investments 184,758,800 184,024,217 25,211,214  Operating lease right-of-use assets 1,535,330,762 1,328,582,419 182,015,045  Other assets 104,725,600 102,545,848 14,048,724  Deferred tax assets 241,965,360 245,760,095 33,668,995   TOTAL ASSETS 5,066,798,878 4,947,118,949 677,752,518  LIABILITIES AND EQUITY Current liabilities:  Long-term bank loans, current portion 200,000 - -  Short-term bank loans 116,800,000 400,000 54,800  Accounts payable 73,126,677 56,488,405 7,738,880  Advance from customers 22,393,097 25,684,437 3,518,753  Amounts due to related parties 16,310,293 17,462,176 2,392,308  Salary and welfare payable 86,332,096 78,234,585 10,718,094  Deferred rent - - -  Deferred revenue 186,281,838 175,046,178 23,981,228  Accrued expenses and other current liabilities 459,832,717 481,910,291 66,021,439  Income tax payable 112,782,712 88,876,497 12,176,030  Dividends payable - - -  Operating lease liabilities, current 267,536,846 241,363,244 33,066,629  Deferred tax liabilities - - -  Total current liabilities 1,341,596,276 1,165,465,813 159,668,161  Long-term bank loans 56,800,000 256,200,000 35,099,256  Deferred rent - - -  Deferred revenue 207,905,769 176,353,919 24,160,388  Other long-term liabilities 111,711,748 120,975,955 16,573,638  Operating lease liabilities, non-current 1,391,909,309 1,215,776,075 166,560,639  Deferred tax liabilities 94,716,495 79,670,908 10,914,870  Unrecognized tax benefits 382,125,786 440,072,214 60,289,646 Total liabilities 3,586,765,383 3,454,514,884 473,266,598 Shareholders' equity: Class A ordinary shares 222,587,070 222,587,070 30,494,304 Class B ordinary shares 115,534,210 115,534,210 15,828,122 Paid-in capital - - - Treasury Stock (36,677,832) (37,043,116) (5,074,886) Additional paid-in capital 1,680,713,349 1,680,148,272 230,179,370 Retained earnings (Accumulated losses) (568,339,799) (528,513,571) (72,406,062) Accumulated other comprehensive income 28,401,282 6,033,263 826,554 Total GreenTree Hospitality Group Ltd. shareholders' equity 1,442,218,280 1,458,746,128 199,847,402 Non-controlling interests 37,815,215 33,857,937 4,638,518 Total shareholders' equity 1,480,033,495 1,492,604,065 204,485,920 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,066,798,878 4,947,118,949 677,752,518 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income Quarter Ended Year Ended   December 31, 2023  December 31, 2024  December 31, 2024   December 31, 2023  December 31, 2024  December 31, 2024 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 174,788,363 119,295,789 16,343,456 787,814,342 596,640,640 81,739,433 Franchised-and-managed revenues 164,549,132 152,934,218 20,951,902 705,244,948 635,360,313 87,044,006 Wholesales and others 32,826,011 32,289,656 4,423,665 134,198,399 111,439,245 15,267,114 Total revenues 372,163,506 304,519,663 41,719,023 1,627,257,689 1,343,440,198 184,050,553 Operating costs and expenses Operating costs (211,591,676) (198,973,480) (27,259,255) (947,438,814) (822,587,314) (112,694,000) Selling and marketing expenses (11,090,473) (17,623,031) (2,414,345) (71,618,033) (67,585,059) (9,259,115) General and administrative expenses (58,045,041) (43,042,689) (5,896,824) (208,433,678) (182,551,094) (25,009,397) Other operating expenses (3,569,166) (2,652,292) (363,363) (11,704,553) (7,090,463) (971,389) Impairment loss of goodwill - (81,008,000) (11,098,050) - (81,008,000) (11,098,050) Other general expenses (52,287,493) (69,084,799) (9,464,579) (79,583,586) (80,841,330) (11,075,217) Total operating costs and expenses (336,583,849) (412,384,291) (56,496,416) (1,318,778,664) (1,241,663,260) (170,107,169) Other operating income 11,362,962 12,898,817 1,767,131 27,169,901 60,147,558 8,240,182 Income from operations 46,942,619 (94,965,811) (13,010,262) 335,648,926 161,924,496 22,183,565 Interest income and other, net 10,329,773 12,633,535 1,730,787 41,371,162 40,072,068 5,489,851 Interest expense (916,820) (1,824,933) (250,015) (14,053,841) (6,310,152) (864,487) Gains (losses) from investment in equity securities (943,283) (9,544,253) (1,307,557) (5,378,104) (14,953,679) (2,048,646) Other income, net (20,142,532) 34,336,161 4,704,035 22,783,714 16,474,064 2,256,938 Income before income taxes 35,269,757 (59,365,301) (8,133,012) 380,371,857 197,206,797 27,017,221 Income tax expense (26,116,933) (12,758,025) (1,747,842) (118,452,255) (88,726,969) (12,155,545) Income (loss) before share of gains in equity investees 9,152,824 (72,123,326) (9,880,854) 261,919,602 108,479,828 14,861,676 Share of loss/(income) in equity investees, net of tax (522,092) (700,781) (96,007) (1,392,002) (1,165,474) (159,669) Net income(loss) 8,630,732 (72,824,107) (9,976,861) 260,527,600 107,314,354 14,702,007 Net loss/(income) attributable to non-controlling interests 3,484,240 1,368,731 187,515 8,788,708 2,687,878 368,238 Net income attributable to ordinary shareholders 12,114,972 (71,455,377) (9,789,346) 269,316,308 110,002,232 15,070,245 Net earnings per share Class A ordinary share-basic and diluted 0.12 (0.70) (0.10) 2.64 1.08 0.15 Class B ordinary share-basic and diluted 0.12 (0.70) (0.10) 2.64 1.08 0.15 Net earnings per ADS Class A ordinary share-basic and diluted 0.12 (0.70) (0.10) 2.64 1.08 0.15 Class B ordinary share-basic and diluted 0.12 (0.70) (0.10) 2.64 1.08 0.15 Weighted average shares outstanding Class A ordinary share-basic and diluted 67,038,968 66,765,032 9,146,772 67,321,003 66,776,243 9,148,308 Class B ordinary share-basic and diluted 34,762,909 34,762,909 4,762,499 34,762,909 34,762,909 4,762,499 Other comprehensive income, net of tax Foreign currency translation adjustments (258,427) (20,725,862) (2,839,431) 669,178 (22,368,019) (3,064,406) Unrealized gains(loss) on available-for-saleinvestments, net of tax Comprehensive income, net of tax 8,372,305 (93,549,969) (12,816,292) 261,196,778 84,946,335 11,637,601 Comprehensive loss/(income) attributable to non-controlling interests 3,381,135 1,368,731 187,515 8,685,603 2,687,878 368,238 Comprehensive income (loss) attributable to ordinary shareholders 11,753,440 (92,181,238) (12,628,777) 269,882,381 87,634,213 12,005,839 GreenTree Hospitality Group Ltd. Unaudited Condensed Hotel Statements of Comprehensive Income Quarter Ended Year Ended   December 31, 2023  December 31, 2024  December 31, 2024   December 31, 2023  December 31, 2024  December 31, 2024 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 125,521,090 90,969,160 12,462,724 490,924,060 437,521,898 59,940,254 Franchised-and-managed revenues 162,861,219 148,174,447 20,299,816 696,321,236 625,072,856 85,634,630 Wholesales and others 1,267,181 1,026,363 140,611 4,660,777 3,908,057 535,402 Total revenues 289,649,490 240,169,970 32,903,151 1,191,906,073 1,066,502,811 146,110,286 Operating costs and expenses Operating costs (154,556,991) (139,910,728) (19,167,691) (598,841,951) (593,798,806) (81,350,103) Selling and marketing expenses (8,318,853) (13,451,271) (1,842,817) (47,434,683) (55,028,196) (7,538,832) General and administrative expenses (49,670,060) (39,695,498) (5,438,261) (166,861,387) (156,401,775) (21,426,955) Other operating expenses (3,429,367) (2,635,870) (361,113) (4,453,446) (4,937,315) (676,409) Impairment loss of goodwill - - - - - Other general expenses (36,260,493) (30,012,799) (4,111,737) (63,556,586) (41,769,330) (5,722,375) Total operating costs and expenses (252,235,764) (225,706,166) (30,921,619) (881,148,053) (851,935,422) (116,714,674) Other operating income 9,937,407 11,644,397 1,595,276 24,525,333 56,818,174 7,784,058 Income from operations 47,351,133 26,108,201 3,576,808 335,283,353 271,385,563 37,179,670 Interest income and other, net 10,653,312 12,606,174 1,727,039 41,240,610 39,982,179 5,477,536 Interest expense (2,809,528) (1,825,243) (250,057) (13,706,157) (6,310,152) (864,487) Gains (losses) from investment in equity securities (943,283) (9,544,253) (1,307,557) (5,378,104) (10,314,000) (1,413,012) Other income, net (20,170,894) 34,321,711 4,702,055 22,676,046 16,383,657 2,244,552 Income before income taxes 34,080,740 61,666,590 8,448,288 380,115,748 311,127,247 42,624,259 Income tax expense (25,505,616) (32,610,806) (4,467,662) (113,125,742) (107,223,277) (14,689,529) Income (loss) before share of gains in equity investees 8,575,124 29,055,784 3,980,626 266,990,006 203,903,970 27,934,730 Share of loss/(income) in equity investees, net of tax (522,092) (700,781) (96,007) (1,392,002) (1,165,474) (159,669) Net income(loss) 8,053,032 28,355,003 3,884,619 265,598,004 202,738,496 27,775,061 GreenTree Hospitality Group Ltd. Unaudited Condensed Restaurant Statements of Comprehensive Income Quarter Ended Year Ended   December 31, 2023  December 31, 2024  December 31, 2024   December 31, 2023  December 31, 2024  December 31, 2024 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 48,191,718 28,534,041 3,909,148 296,890,282 159,326,153 21,827,594 Franchised-and-managed revenues 1,687,913 4,759,771 652,086 8,923,712 10,287,457 1,409,376 Wholesales and others 37,843,179 31,759,229 4,350,996 135,821,972 109,031,616 14,937,270 Total revenues 87,722,810 65,053,041 8,912,230 441,635,966 278,645,226 38,174,240 Operating costs and expenses Operating costs (66,896,044) (59,854,076) (8,199,975) (359,018,687) (230,496,349) (31,577,870) Selling and marketing expenses (2,821,243) (4,083,785) (559,476) (24,232,973) (12,556,863) (1,720,283) General and administrative expenses (8,374,981) (3,347,191) (458,563) (41,572,291) (26,149,319) (3,582,442) Other operating expenses (139,799) (16,422) (2,250) (7,251,107) (2,153,148) (294,980) Impairment loss of goodwill - (81,008,000) (11,098,050) - (81,008,000) (11,098,050) Other general expenses (16,027,000) (39,072,000) (5,352,842) (16,027,000) (39,072,000) (5,352,842) Total operating costs and expenses (94,259,067) (187,381,474) (25,671,156) (448,102,058) (391,435,679) (53,626,467) Other operating income 1,425,555 1,254,420 171,855 2,644,568 3,329,384 456,124 Income from operations (5,110,702) (121,074,013) (16,587,071) (3,821,524) (109,461,069) (14,996,103) Interest income and other, net (323,539) 27,361 3,748 130,552 89,889 12,315 Interest expense 1,892,708 310 42 (347,684) - - Gains (losses) from investment in equity securities - - - - - - Other income, net 28,362 14,450 1,980 107,668 (18,672) (2,558) Income before income taxes (3,513,171) (121,031,894) (16,581,301) (3,930,988) (109,389,852) (14,986,346) Income tax expense 564,230 19,852,781 2,719,820 (4,279,739) 18,496,308 2,533,984 Income (loss) before share of gains in equity investees (2,948,941) (101,179,113) (13,861,481) (8,210,727) (90,893,544) (12,452,362) Share of loss/(income) in equity investees, net of tax - - - - - - Net income(loss) (2,948,941) (101,179,113) (13,861,481) (8,210,727) (90,893,544) (12,452,362) GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements Quarter Ended Quarter Ended Quarter Ended Quarter Ended   December 31, 2023   December 31, 2023   December 31, 2023   December 31, 2023 Hotel Restaurant Elimination Total RMB RMB RMB RMB Revenues Leased-and-operated revenues 125,521,090 48,191,718 1,075,555 174,788,363 Franchised-and-managed revenues 162,861,219 1,687,913 - 164,549,132 Wholesales and others 1,267,181 37,843,179 (6,284,349) 32,826,011 Total revenues 289,649,490 87,722,810 (5,208,794) 372,163,506 Operating costs and expenses Operating costs (154,556,991) (66,896,044) 9,861,359 (211,591,676) Selling and marketing expenses (8,318,853) (2,821,243) 49,623 (11,090,473) General and administrative expenses (49,670,060) (8,374,981) - (58,045,041) Other operating expenses (3,429,367) (139,799) - (3,569,166) Impairment loss of goodwill - - - - Other general expenses (36,260,493) (16,027,000) - (52,287,493) Total operating costs and expenses (252,235,764) (94,259,067) 9,910,982 (336,583,849) Other operating income 9,937,407 1,425,555 - 11,362,962 Income from operations 47,351,133 (5,110,702) 4,702,188 46,942,619 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements Quarter Ended Quarter Ended Quarter Ended Quarter Ended   December 31, 2024   December 31, 2024   December 31, 2024   December 31, 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) Other general expenses (30,012,799) (39,072,000) - (69,084,799) 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 of Cash Flows Quarter Ended Year Ended   December 31, 2023  December 31, 2024  December 31, 2024   December 31, 2023  December 31, 2024  December 31, 2024 RMB RMB US$ RMB RMB US$ Operating activities: Net (loss) income 8,630,732 (72,824,109) (9,976,862) 260,527,599 107,314,353 14,702,006 Adjustments to reconcile net income to net Cash provided by operating activities: Depreciation and amortization 24,382,512 26,575,903 3,640,884 116,870,237 115,746,538 15,857,211 Impairment of long lived assets 53,686,449 51,672,000 7,079,035 56,586,449 51,672,000 7,079,035 Impairment of goodwill - 81,008,000 11,098,050 - 81,008,000 11,098,050 Share of (gains) losses in equity method investments - - - - - - Noncash lease expense 77,037,857 58,283,373 7,984,789 271,156,173 263,911,503 36,155,728 Loss from disposal of a subsidiary - - - 1,223,952 (488,227) (66,887) Interest income - - - - - - - Bad debt expenses 1,828,945 21,857,669 2,994,488 38,858,275 56,241,392 7,705,039 Losses and impairment (Gains) on equity securities held 2,563,283 9,544,253 1,307,557 6,998,104 14,953,679 2,048,646 (Gains) losses on disposal of property and equipment 1,928,976 (555,551) (76,110) 2,166,990 (25,338,789) (3,471,400) Foreign exchange (gains) losses (103,025) (26,182,753) (3,587,022) (372,187) (27,497,301) (3,767,115) Share-based compensation - - - - - - Other non-cash expense/(income) (1,757,475) 7,070,827 968,699 (4,554,719) 1,166,397 159,796 Accounts receivable 8,157,413 9,076,784 1,243,514 (5,359,275) (4,015,520) (550,124) Prepaid rent 129,472 - - - - - Inventories (3,323,226) (493,764) (67,645) 4,764,959 14,618,912 2,002,783 Amounts due from related parties 2,812,979 (3,904,741) (534,947) 8,372,296 (1,416,495) (194,059) Other current assets (7,784,142) (1,821,998) (249,613) (47,920,887) (3,067,256) (420,212) Other assets 9,361,100 5,200,506 712,466 17,250,340 3,725,971 510,456 Accounts payable (21,402,358) 17,296,435 2,369,602 (50,451,092) (3,021,869) (413,994) Amounts due to related parties (8,780,746) 1,767,567 242,156 (5,406,910) 1,151,882 157,807 Salary and welfare payable (8,040,537) 3,672,156 503,083 (3,010,962) (7,916,485) (1,084,554) Deferred revenue (8,986,356) (28,977,865) (3,969,951) (33,539,045) (42,787,510) (5,861,865) Advance from customers (4,898,186) 4,428,730 606,734 (3,211,266) 3,305,355 452,832 Accrued expenses and other current liabilities (62,218,027) (29,307,543) (4,015,117) 26,174,963 3,161,614 433,139 Income tax payable (17,782,317) (34,457,583) (4,720,670) 32,861,850 (23,195,720) (3,177,801) Unrecognized tax benefits (14,960,256) 68,986,879 9,451,164 28,569,943 57,946,428 7,938,628 Operating lease liabilities (76,990,749) (57,896,801) (7,931,829) (256,017,527) (247,702,691) (33,935,130) Other long-term liabilities 3,175,965 3,262,911 447,017 (5,065,347) 1,264,213 173,196 Deferred taxes 29,820,352 (39,040,264) (5,348,494) (2,423,339) (17,362,607) (2,378,667) Net cash provided by operating activities (13,511,365) 74,241,021 10,170,978 455,049,574 373,377,767 51,152,544 Investing activities: Purchases of property and equipment (15,197,120) (50,616,409) (6,934,420) (87,764,045) (79,582,039) (10,902,695) Purchases of intangible assets (573,808) (37,057) (5,077) (740,406) (37,057) (5,077) Proceeds from disposal of property and equipment (11,715,110) (283,895) (38,893) 2,951,611 139,900,865 19,166,340 Payment for acquisition of minority equity - - - - - - Purchases of a long-term investment - (3,600,000) (493,198) - (10,400,000) (1,424,794) Repayment of Advances for acquisitions - - - - - - Purchases of short-term investments (60,449,565) - - (262,680,045) - - Proceeds from short-term investments 6,154,723 (1,660,895) (227,542) 167,009,370 417,701,142 57,224,822 Increase of long-term time deposits (63,340,000) - - (63,340,000) (222,230,000) (30,445,385) Purchases of investments in equity securities - - - - - - Proceeds from disposal of equity securities - 21,812,329 2,988,277 - 21,812,329 2,988,277 Proceeds from disposal of subsidiaries - - - 37,800,000 2,807,500 384,626 Loan to related parties - (588,000) (80,556) - (858,000) (117,546) Repayment from related parties - 363,347 49,778 - 363,347 49,778 Loan to third parties - 1,200,000 164,399 - - - Repayment of loan from third parties - - - 14,553,007 5,900,000 808,297 Loan to franchisees (6,609,495) (8,673,811) (1,188,306) (22,643,074) (14,323,812) (1,962,354) Repayment from franchisees 24,896,351 16,870,520 2,311,252 121,145,169 84,337,321 11,554,165 Net cash (used in) provided by investing activities (126,834,024) (25,213,871) (3,454,286) (93,708,413) 345,391,596 47,318,454 Financing activities: Distribution to the shareholders - (70,176,000) (9,614,073) - (70,936,321) (9,718,236) Repurchase of ordinary shares (19,706,775) (65,162) (8,927) (19,706,775) (365,284) (50,044) Loan from non controlling interest 272,500.00 - - 272,500.00 - - Repayment of short-term borrowings (7,700,000) (200,000) (27,400) (458,300,000) (117,200,000) (16,056,334) Proceeds from bank loans 57,000,000 - - 174,000,000 200,000,000 27,399,888 Capital contribution from noncontrolling interest holders - - - - (966,000) (132,341) Net cash used in financing activities 29,865,725 (70,441,162) (9,650,400) (303,734,275) 10,532,395 1,442,933 Effect of exchange rate changes on cash and cash equivalents and restricted cash 84,902 6,957,333 953,151 32,095 4,299,468 589,025 Net increase in cash, cash equivalents and restricted cash (110,394,762) (14,456,679) (1,980,557) 57,638,981 733,601,226 100,502,956 Cash, cash equivalents and restricted cash at the beginning of the year 901,995,474 1,539,658,617 210,932,366 733,961,731 791,600,712 108,448,853 Cash, cash equivalents and restricted cash at the end of the year 791,600,712 1,525,201,938 208,951,809 791,600,712 1,525,201,938 208,951,809 GreenTree Hospitality Group Ltd. Unaudited Reconciliation of GAAP and Non-GAAP Results Quarter Ended Year Ended  December 31, 2023  December 31, 2024  December 31, 2024  December 31, 2023   December 31, 2024   December 31, 2024 RMB RMB US$ RMB RMB US$ Net income 8,630,731 (72,824,109) (9,976,862) 260,527,599 107,314,353 14,702,006 Deduct: Other operating income 11,362,962 12,898,817 1,767,131 27,169,901 60,147,558 8,240,182 Interest income and other, net 10,329,773 12,633,535 1,730,787 41,371,162 40,072,068 5,489,851 Gains from investment in equity securities - - - - - - Share of gain in equity investees, net of tax - - - - - - Other income, net - 34,336,161 4,704,035 22,783,714 16,474,064 2,256,938 Add: Other operating expenses 3,569,166 2,652,292 363,363 11,704,553 7,090,463 971,389 Impairment loss of goodwill - 81,008,000 11,098,050 - 81,008,000) 11,098,050 Other general expenses 52,287,493 69,084,799 9,464,579 79,583,586 80,841,330) 11,075,217 Income tax expenses (benefits)  26,116,933 12,758,025 1,747,842 118,452,255 88,726,969 12,155,545 Share of loss in equity investees, net of tax 522,092 700,781 96,007 1,392,002 1,165,474 159,669 Interest expenses 916,820 1,824,933 250,015 14,053,841 6,310,152 864,487 Depreciation and amortization 24,382,512 26,575,903 3,640,884 116,870,237 115,746,538 15,857,211 Losses from investment in equity securities 943,283 9,544,253 1,307,557 5,378,104 14,953,679 2,048,646 Other expense, net 20,142,532 - - - - - Adjusted EBITDA (Non-GAAP) 115,818,827 71,456,364 9,789,482 516,637,400 386,463,268 52,945,249 Quarter Ended Year Ended  December 31, 2023  December 31, 2024  December 31, 2024  December 31, 2023  December 31, 2024  December 31, 2024 RMB RMB US$ RMB RMB US$ Net income 8,630,731 (72,824,109) (9,976,862) 260,527,599 107,314,353 14,702,006 Deduct: Government subsidies (net of 25% tax) 3,129,127 7,122,585 975,790 9,800,432 11,967,221 1,639,503 Gains from investment in equity securities (net of 25% tax) - - - - - - Other income (net of 25% tax) - 25,752,121 3,528,026 17,087,786 12,355,548 1,692,703 Add: Share-based compensation (16,594) (46,986) (6,437) - - - Losses from investments in equity securities (net of 25% tax) 707,462 7,158,190 980,668 4,033,578 11,215,259 1,536,484 Other expense (net of 25% tax) 15,106,898 - - - - - One-time fees and expenses 828,267 621,172 85,100 3,010,039 2,335,161 319,916 Impairment loss of goodwill - 81,008,000 11,098,050 - 81,008,000 11,098,050 Other general expenses 52,287,493 69,084,799 9,464,579 79,583,586 80,841,330 11,075,217 Income tax expenses related to dividend distribution - 5,698,810 780,734 - 19,195,050 2,629,711 Core net income (Non-GAAP) 74,415,129 57,825,169 7,922,016 320,266,584 277,586,384 38,029,179 Core net income per ADS (Non-GAAP) Class A ordinary share-basic and diluted 0.73 0.57 0.08 3.14 2.73 0.37 Class B ordinary share-basic and diluted 0.73 0.57 0.08 3.14 2.73 0.37 Hotel Operational Data December 31, 2023 December 31, 2024 Total hotels in operation: 4,238 4,425     Leased and owned hotels 65 55     Franchised hotels 4,173 4,370 Total hotel rooms in operation 309,495 321,182     Leased and owned hotels 7,318 6,624     Franchised hotels 302,177 315,018 Number of cities 360 352 Quarter Ended 2023 Q4 2024 Q4  Occupancy rate (as a percentage)  Leased-and-owned hotels 66.9 % 65.5 %  Franchised hotels 72.5 % 68.6 %  Blended 72.4 % 68.6 %  Average daily rate (in RMB)  Leased-and-owned hotels 241 241  Franchised hotels 175 167  Blended 177 169 RevPAR (in RMB)  Leased-and-owned hotels 161 158  Franchised hotels 127 115  Blended 128 116 Number of Hotels in Operation Number of Hotel Rooms in Operation December 31,2023 December 31, 2024 December 31, 2023 December 31, 2024  Mid-to-up-scale 474 553 45,488 51,649  GreenTree Eastern 222 239 24,377 25,683  Deepsleep Hotel 7 8 534 610  Gem 71 105 6,292 9,386,  Gya 71 74 5,899 6,155  Vx 92 105 8,041 9,093  others 11 22 345 722  Mid-scale 2,975 2,978 230,100 230,298  GreenTree Inn 2,220 2,340 179,631 183,439  GT Alliance 568 505 40,134 37,631  GreenTree Apartment 20 24 1,308 1,545 Vatica                                 110 109 7,805 7,683  Economy hotels 789 894 33,907 39,335 Shell 789 894 33,907 39,335 Total 4,238 4,425 309,495 321,282 Restaurant Operational Data December 31, 2023 December 31, 2024 Total restaurants in operation: 194 182     Leased and owned restaurants 42 18     Franchised restaurants 152 164 Number of cities 65 53 Da Niang Dumplings 162 161 Bellagio 32 21 Total restaurants in operation: 194 182 Quarter Ended 2023 Q4 2024 Q4 ADT Leased-and-owned restaurants 141 186 Franchised restaurants 84 78 Blended 99 93 AC (in RMB) Leased-and-owned restaurants 89 99 Franchised restaurants 37 33 Blended 51 46 ADS (in RMB) Leased-and-owned restaurants 12,501 18,384 Franchised restaurants 3,127 2,605 Blended 5,090 4,234 For more information, please contact: GreenTreeMs. Selina YangPhone: +86-158-2166-6251E-mail: [email protected] Mr. Maple MiaoPhone: +86-181-0184-0639E-mail: [email protected]      Christensen In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: [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. 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