Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was RMB 304 million, a decrease of 18.2% year-over-year [12] - Hotel revenues were RMB 240.2 million, a decrease of 17.1% primarily due to the closure of 12 leased and managed hotels and a year-over-year decrease in RevPAR of 9% [12][21] - Net income was negative RMB 72.8 million, mainly due to impairment of goodwill and trademarks [13] - Adjusted net income, excluding these impacts, was RMB 77.3 million, an increase of 26.8% with a margin of 25.4% [13] - Cash from operations increased to RMB 74.2 million from a negative RMB 13.5 million a year ago [14][30] Business Line Data and Key Metrics Changes Hotel Business - RevPAR for L&O hotels decreased by 9.6% to RMB 116, while F&M hotels saw a decrease of 9.8% to RMB 115 [12][15] - Total Hotel operating costs decreased by 10.5% year-over-year to RMB 225.7 million [23] - Net income from the Hotel business was RMB 28.4 million, compared to RMB 8.1 million in Q4 2023 [26] Restaurant Business - Restaurant revenues were RMB 65.1 million, a decrease of 25.8% year-over-year [27] - Same-store revenue decreased by 3.1% to RMB 31.2 million [28] - Cash from operations for the Restaurant business turned positive at RMB 5.5 million in Q4 2024 [29] Market Data and Key Metrics Changes - Individual memberships grew to 102 million, up from 91 million a year ago, while corporate memberships grew to 2.17 million from 2.05 million [16] Company Strategy and Development Direction - The company plans to open approximately 480 new hotels in 2025, an increase from 405 in 2024, while continuing to upgrade existing hotels [8][44] - Focus on expanding the mid to upscale segment, with a strategic commitment to retain flagship properties in key cities [9] - The Restaurant business is shifting towards franchised and managed stores, which accounted for almost 90% of all stores by the end of the quarter [10][19] Management's Comments on Operating Environment and Future Outlook - Management expects RevPAR to remain flat for 2025, with a gradual recovery anticipated in the second and third quarters [38] - There is a noted increase in leisure travel demand compared to business travel [38] - The company is focused on improving operational efficiency and profitability across both Hotel and Restaurant segments [45][53] Other Important Information - As of December 31, 2024, total cash and cash equivalents were RMB 1,839.1 million, a decrease from RMB 1,883.9 million as of September 30, 2024 [33] - The company expects to close about 200 hotels for a net addition of 280 hotels in 2025 [34] Q&A Session Summary Question: What is the RevPAR assumption for the full year flat Organic Hotel revenue forecast? - Management expects RevPAR to be flat for 2025, with a 5% decrease observed in Q1 and a gradual recovery anticipated in subsequent quarters [36][38] Question: Can you provide an overview of the strategy for the Hotel business in 2025? - The company plans to open 480 new hotels and upgrade existing aged hotels, with a completion target by summer 2026 [42][44] Question: Why are so many L&O hotels being closed? - Closures are due to expired leases and a strategic focus on flagship hotels in Tier 1 locations, with a shift towards franchised and managed segments [46][47] Question: Will the trend of increasing Street stores continue in the Restaurant business? - Management expects this trend to continue, focusing on Street stores due to stable consumer traffic and better control over operating hours [50][51] Question: What can be expected in 2025 regarding new restaurant openings? - The company aims to deliver 60 new restaurant openings in 2025, following a profitable operation for existing restaurants [54][55] Question: Any progress on increasing trading liquidity in shares? - Management is evaluating options to increase liquidity, including a planned reverse merger [58][60]

Q4 2024 Performance Overview - Total revenues decreased by 18.2% to RMB 304.5 million compared to Q4 2023[19] - Hotel revenues decreased by 17.1% to RMB 240.2 million compared to Q4 2023[19] - Restaurant ADS (Average Daily Sales Per Store) decreased by 22.3%[19] - Net income was negative RMB 72.8 million, a significant decrease compared to the RMB 8.6 million net income in Q4 2023[19, 114] - Adjusted EBITDA decreased by 38.3% to RMB 71.5 million with a margin of 23.5%[19] Hotel Business Highlights - Hotel RevPAR decreased to RMB 116[19] - Revenue from F&M hotels decreased to RMB 148.2 million[77] - Revenue from L&O hotels decreased to RMB 70.6 million[75] - Total hotels in operation increased from 4,238 in 2023Q4 to 4,425 in 2024Q4[147] Restaurant Business Highlights - Restaurant total revenue decreased to RMB 65.1 million[97] - Restaurant net income excluding impairment of goodwill and trademarks increased to RMB 18.9 million[104] - Total restaurants in operation decreased from 194 in 2023Q4 to 182 in 2024Q4[148]

GreenTree Hospitality Group (GHG) Q4 2024 Earnings Call April 24, 2025 08:00 AM ET Company Participants René Vanguestaine - OwnerAlex Xu - Founder, Chairman & CEOYiping Yang - CFO Conference Call Participants None - Analyst Operator Good day, and welcome to the GreenTree Hospitality Group Limited Fourth Quarter and Fiscal Year twenty twenty four Financial Results Conference Call. All participants will be in listen only mode. Today's presentation, there will be an opportunity to ask questions. Please note to ...

Core Viewpoint - GreenTree Hospitality Group Ltd. reported its unaudited financial results for the fourth quarter and fiscal year of 2024, highlighting significant challenges in both hotel and restaurant segments, with total revenues decreasing by 18.2% year-over-year to RMB304.5 million (US$41.7 million) and a net loss of RMB72.8 million (US$10.0 million) in Q4 2024. Financial Performance - Total revenues for the year were RMB1,343.4 million (US$184.1 million), a 17.4% year-over-year decrease [12][10]. - Adjusted net income for Q4 2024 was RMB77.3 million (US$10.6 million), up from RMB60.9 million in Q4 2023, indicating a 26.8% increase [29][30]. - Cash from operations increased year-over-year to RMB74.2 million (US$10.2 million) [37]. Hotel Segment - The hotel business generated revenues of RMB240.2 million (US$32.9 million) in Q4 2024, a 17.1% year-over-year decrease, primarily due to a 9.8% decrease in RevPAR and the closure of 12 leased and operated hotels [11][12]. - As of December 31, 2024, the company operated 4,425 hotels with 321,282 rooms, having opened 143 hotels during the year [8][10]. - The average daily room rate was RMB169, down 4.6% from RMB177 in Q4 2023, with an occupancy rate of 68.6%, down from 72.4% [8]. Restaurant Segment - Restaurant revenues were RMB65.1 million (US$8.9 million) in Q4 2024, a 25.8% year-over-year decrease, attributed to the closure of leased and operated stores and a 16.8% decrease in average daily sales per store [12][14]. - The company had 182 restaurants in operation as of December 31, 2024, with franchised and managed stores accounting for almost 90% of all stores, up from 78% a year ago [5][48]. Operating Costs and Expenses - Total operating costs and expenses for Q4 2024 were RMB412.4 million (US$56.5 million), reflecting a significant increase in impairment losses related to the restaurant business [19][20]. - Operating costs for the hotel business decreased by 9.5% year-over-year to RMB139.9 million (US$19.2 million) [20]. - Selling and marketing expenses increased by 58.9% year-over-year to RMB17.6 million (US$2.4 million) [21]. Strategic Initiatives - The company plans to open 480 new hotels in 2025 while focusing on upgrading existing properties to enhance service quality [4]. - The strategic transformation of the restaurant business is ongoing, with a focus on increasing the number of franchised and managed stores [5]. Guidance - The company expects total revenues from its organic hotel business to remain flat compared to 2024 levels, reflecting a cautious outlook amid ongoing industry fluctuations [39].

Core Viewpoint - GreenTree Hospitality Group Ltd. will report its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on April 24, 2025, with a conference call scheduled for the same day [1]. Company Overview - GreenTree Hospitality Group Ltd. is a leading hospitality management group in China, with a total of 4,336 hotels and 182 restaurants as of September 30, 2024 [3]. - In 2023, GreenTree was ranked 11th among the 225 largest global hotel groups by HOTELS magazine based on the number of hotels [3]. - The company was recognized as the fourth largest hospitality company in China in 2023 by the China Hospitality Association [3]. - GreenTree completed the acquisition of Da Niang Dumplings and Bellagio, two prominent restaurant chains in China, in 2023 [3]. Business Model and Strategy - GreenTree has a diverse brand portfolio that spans economy, mid-scale, and upscale segments of the hospitality industry, primarily in China [4]. - The company leverages a strong membership base, expansive booking network, and superior system management to maintain close relationships with clients and partners [4].

Group 1 - Global Hemp Group Inc. is suspended effective immediately under CSE Policy 3, categorized as a Regulatory Halt as per National Instrument 23-101 Trading Rules [1][2] - A cease trade order has been issued by the British Columbia Securities Commissions [1][2] - For further information regarding cease trade orders, the Canadian Securities Administrators provide a dedicated database [3]

Financial Data and Key Metrics Changes - Total revenues decreased by 22.5% year-over-year to RMB 357 million [11] - Net income decreased by 44.4% to RMB 65.2 million, with a margin of 18.3% [11][26] - Adjusted EBITDA decreased by 32.1% to RMB 122.5 million, with a margin of 34.3% [11] Business Line Data and Key Metrics Changes - Hotel revenues decreased by 15.4% to RMB 286.9 million, primarily due to a 13.6% decrease in RevPAR [11][19] - Restaurant business revenues decreased by 42% year-over-year to RMB 70.6 million, mainly due to lower ADS and the closure of L&O stores [24] - The number of restaurants in operation stabilized at 182, with 55.5% of stores now being franchise stores [10] Market Data and Key Metrics Changes - Hotel RevPAR was RMB 135, a decrease of 13.6% year-over-year [11] - Restaurant ADS decreased by 25.6% to RMB 4,891 [11] - Occupancy rates for L&O hotels decreased to 75.9% from 79%, while F&M hotels decreased to 74.6% from 81.3% [12] Company Strategy and Development Direction - The company is focusing on expanding its mid- to upscale segment and increasing its presence in Tier 2 and Tier 3 cities, especially in South China [14][15] - The strategic transformation of the restaurant business has been completed, with a focus on areas with greater foot traffic [17] - The company aims to improve profitability by enhancing the performance of legacy hotels and expanding its pipeline of new hotels [40] Management's Comments on Operating Environment and Future Outlook - Management noted a normalization in the hospitality industry following a surge last year, with expectations for improved performance in Q4 compared to Q3 [35] - The company is optimistic about its 2025 outlook, anticipating better performance driven by new hotel openings and improved RevPAR [40] - Management expressed confidence in maintaining the dividend policy despite the drop in net income, attributing part of the decline to a foreign exchange loss [54] Other Important Information - As of September 30, 2024, total cash and cash equivalents increased to RMB 1,883.9 million from RMB 1,737.2 million as of June 30, 2024 [27] - The company anticipates an 8% decrease in hotel revenue for the full year 2024 compared to 2023 [28] Q&A Session Summary Question: Industry trend and company performance comparison - Management indicated that their portfolio has a higher percentage of legacy hotels, which has resulted in a more severe impact on RevPAR compared to newly opened hotels [34] Question: Expectations for restaurant business in Q4 - Management expressed optimism about continued profitability in the restaurant segment, focusing on selecting new locations to sustain growth [36] Question: Sector supply and demand landscape - Management noted intensified competition in the industry but expects a more normalized environment moving forward, with many new hotels in the pipeline [39] Question: Bargaining power with OTAs - Management acknowledged the growth of OTAs and emphasized the importance of working closely with them to create mutually beneficial arrangements [46] Question: Guizhou project details - Management confirmed collaboration with local government on a project in Guizhou, aiming to reposition and reopen nonperforming assets [48] Question: Future dividend plans - Management reassured that the dividend policy will continue despite the drop in net income, citing confidence in future operating income improvements [54] Question: Liquidity improvement plans - Management discussed ongoing reorganization efforts to boost liquidity, including merging the parent company with GHG [55]

Financial Performance - Total revenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million) in Q3 2024[6] - Net income was RMB65.2 million (US$9.3 million), down from RMB117.4 million in Q3 2023, representing a year-over-year decrease of 44.5%[6] - Adjusted EBITDA (non-GAAP) decreased 32.1% year over year to RMB122.5 million (US$17.5 million)[6] - Gross profit for Q3 2024 was RMB151.8 million (US$21.6 million), a 28.8% year-over-year decrease, with a gross margin of 42.5%[37] - Income from operations in Q3 2024 was RMB106.4 million (US$15.2 million), down from RMB137.8 million in Q3 2023, with a margin of 29.8%[38] - Net income for Q3 2024 was RMB65.2 million (US$9.3 million), compared to RMB117.4 million in Q3 2023, resulting in a net margin of 18.3%[40] - Adjusted EBITDA for Q3 2024 was RMB122.5 million (US$17.5 million), a year-over-year decrease of 32.1%, with an adjusted EBITDA margin of 34.3%[44] - Core net income for Q3 2024 was RMB93.5 million (US$13.3 million), a year-over-year decrease of 26.6%, with a core net margin of 26.2%[45] Revenue Sources - Total revenues from restaurants were RMB70.6 million (US$10.1 million), a 42.0% year-over-year decrease[14] - Total revenues from franchised-and-managed hotels and restaurants were RMB169.7 million (US$24.2 million), a 10.7% year-over-year decrease[21] - The average daily sales per store (ADS) for restaurants was RMB4,891, a decrease of 25.6% from RMB6,570 in Q3 2023[10] Operational Metrics - The average daily room rate was RMB181, a decrease of 6.0% from RMB192 in Q3 2023[6] - The occupancy rate was 74.6%, down from 81.2% in Q3 2023[6] - The number of hotels in operation was 4,336 with a pipeline of 1,085 hotels contracted for or under development as of September 30, 2024[6] - The company reported a total of 307,001 hotel rooms in operation as of September 30, 2024, compared to 316,461 rooms in the previous year, indicating a decrease in total room count[81] - The revenue per available room (RevPAR) for leased and owned hotels was RMB 21,219.60, up from RMB 19,517.00 year-over-year, representing an increase of 8.7%[80] Cost Management - Total operating costs and expenses for Q3 2024 were RMB324.2 million (US$46.0 million), reflecting the impact of decreased revenues[26] - Operating costs for the third quarter of 2024 were RMB205.2 million (US$29.2 million), a 17.2% year-over-year decrease[28] - Hotel operating costs decreased to RMB152.3 million (US$21.7 million), a 4.8% year-over-year decrease, primarily due to lower staff-related costs from the disposal of L&O hotels[28] - Restaurant operating costs in Q3 2024 were RMB53.4 million (US$7.6 million), a 39.2% year-over-year decrease, attributed to the closure of L&O stores[29] Cash and Assets - As of September 30, 2024, total cash and cash equivalents were RMB1,883.9 million (US$268.5 million), an increase from RMB1,737.2 million as of June 30, 2024[52] - Total current assets increased from RMB 1,626,759,605 on December 31, 2023, to RMB 1,885,742,262 on September 30, 2024, representing a growth of approximately 15.9%[68] - Cash and cash equivalents rose significantly from RMB 765,547,547 to RMB 1,513,020,988, indicating an increase of about 97.5%[68] - Total liabilities decreased from RMB 3,586,765,383 on December 31, 2023, to RMB 3,508,917,338 on September 30, 2024, reflecting a reduction of approximately 2.2%[68] - Shareholders' equity increased from RMB 1,480,033,495 to RMB 1,590,895,436, marking an increase of about 7.5%[68] Strategic Initiatives - The company maintains a diverse brand portfolio across various segments of the hospitality industry, aiming to strengthen client relationships through superior system management and a broad booking network[64] - GreenTree's future growth strategies include expanding its market presence and enhancing its operational capabilities through new technology and product offerings[65] - The company plans to focus on market expansion and new product development to drive future growth[79] - Strategic acquisitions are being considered to strengthen market presence and competitive advantage[82] - The management remains optimistic about achieving long-term growth targets despite market challenges[82]

Core Viewpoint - GreenTree Hospitality Group Ltd. reported a significant decline in total revenues and net income for the third quarter of 2024, reflecting challenges in both the hotel and restaurant segments amid a recovering economy in China [1][3][6]. Financial Performance - Total revenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million) [1][3]. - Income from operations was RMB106.4 million (US$15.2 million), down from RMB137.8 million in the same quarter of 2023 [1][6]. - Net income fell to RMB65.2 million (US$9.3 million) compared to RMB117.4 million in the third quarter of 2023 [1][6]. - Adjusted EBITDA decreased by 32.1% year over year to RMB122.5 million (US$17.5 million) [1][8]. - Core net income decreased by 26.6% year over year to RMB93.5 million (US$13.3 million) [1][10]. Operational Highlights Hotels - As of September 30, 2024, the company operated 4,336 hotels with 316,461 rooms [1]. - The average daily room rate (ADR) was RMB181, a decrease of 6.0% from RMB192 in the third quarter of 2023 [1]. - The occupancy rate was 74.6%, down from 81.2% in the same quarter of 2023 [1]. - Revenue per available room (RevPAR) was RMB135, reflecting a 13.6% year-over-year decrease [1]. Restaurants - The company operated 182 restaurants as of September 30, 2024 [1]. - The average check (AC) was RMB46, a 15.9% year-over-year decrease [1]. - Average daily sales (ADS) per store were RMB4,891, down 25.6% from RMB6,570 in the third quarter of 2023 [1]. Cost Management - Total operating costs and expenses were RMB265.2 million (US$37.8 million), a decrease of 17.2% year over year [6]. - Operating costs for the hotel business were RMB152.3 million (US$21.7 million), a 4.8% year-over-year decrease [6]. - Restaurant operating costs were RMB53.4 million (US$7.6 million), a 39.2% year-over-year decrease [6]. Cash Flow and Liquidity - Operating cash inflow was RMB139.2 million (US$19.8 million) due to income from operations [10]. - As of September 30, 2024, total cash and cash equivalents amounted to RMB1,883.9 million (US$268.5 million), an increase from RMB1,737.2 million as of June 30, 2024 [10]. Future Outlook - The company anticipates a revenue decrease of approximately 8% for its hotel business for the full year 2024 compared to 2023, influenced by lower-than-expected travel and strategic reviews leading to hotel closures [10].

Core Viewpoint - GreenTree Hospitality Group Ltd. will report its unaudited financial results for Q3 2024 on November 21, 2024, and will hold an earnings conference call at 8:00 AM U.S. Eastern Time on the same day [1]. Group 1: Financial Reporting - The unaudited financial results for the third quarter ended September 30, 2024, will be announced on November 21, 2024 [1]. - An earnings conference call will take place at 8:00 AM U.S. Eastern Time on November 21, 2024 [1]. Group 2: Company Overview - GreenTree Hospitality Group Ltd. is a leading hospitality management group in China, with a total of 4,272 hotels and 183 restaurants as of June 30, 2024 [5]. - In 2023, GreenTree was ranked 11th among the 225 largest global hotel groups by HOTELS magazine based on the number of hotels [5]. - The company was recognized as the fourth largest hospitality company in China in 2023 by the China Hospitality Association [5]. - GreenTree completed the acquisition of Da Niang Dumplings and Bellagio, two prominent restaurant chains in China, in 2023 [5]. Group 3: Business Strategy - GreenTree has a diverse brand portfolio that spans economy, mid-scale, and upscale segments of the hospitality industry, primarily in China [6]. - The company aims to maintain close relationships with clients and partners through a strong membership base, expansive booking network, and superior system management [6].