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Greene King Holdings (GHG) Stock Dips Amidst Industry Downtrend
GuruFocus· 2024-10-03 19:51
Company Overview - Greene King Holdings (GHG) is a Chinese franchise hotel operator with approximately 4,059 hotels and nearly 302,497 rooms across China [2] Financial Performance - The company reported revenues of $45.53 million and net profits of $8.52 million, with earnings per share at $0.08 [1] - Gross profit was recorded at $18.14 million, maintaining a price-to-earnings ratio of 9.45 [1] Stock Performance - GHG experienced a significant stock price decline of 5.37%, bringing its share value down to $3.09 [1] - The trading volume was 1,912 shares, with no turnover or price fluctuation reported at the time of the summary [1] - The sole institutional rating suggests holding the stock, with no recommendation to buy or sell [1] Industry Context - The accommodation industry sector reported an overall decline of 0.27% [1] - Luxurban Hotels Inc. and Sonder Holdings Inc. saw significant gains, indicating variability within the sector [1] - Luxurban Hotels Inc. had a turnover rate of 2.88% and a price swing of 9.54%, marking it as one of the more volatile stocks [1]
GreenTree(GHG) - 2024 Q2 - Quarterly Report
2024-08-16 20:08
Financial Performance - Total revenues decreased by 20.5% year over year to RMB 329.7 million (US$45.4 million) in Q2 2024[7] - Net income was RMB 62.3 million (US$8.6 million), down from RMB 101.9 million in Q2 2023[7] - Adjusted EBITDA (non-GAAP) decreased 34.5% year over year to RMB 83.1 million (US$11.4 million)[7] - Gross profit for the second quarter of 2024 was RMB 131.4 million (US$18.1 million), reflecting a 22.8% year-over-year decrease, with a gross margin of 39.8%[31] - Net income for the second quarter of 2024 was RMB 62.3 million (US$8.6 million), down from RMB 101.9 million in the same quarter of 2023, resulting in a net margin of 18.9%[34] - Adjusted EBITDA for the second quarter of 2024 was RMB 83.1 million (US$11.4 million), a year-over-year decrease of 34.5%[37] - Core net income for the second quarter of 2024 was RMB 70.2 million (US$9.7 million), a year-over-year increase of 2.4%[38] - Net income attributable to ordinary shareholders for the quarter was RMB 61,690,274, down 40.2% from RMB 103,255,064 in the same quarter last year[64] - The company reported a net earnings per share of RMB 0.61 for the quarter, compared to RMB 1.01 in the same quarter of 2023, reflecting a decline of 39.6%[64] - Comprehensive income attributable to ordinary shareholders for the quarter was RMB 61,202,418, down from RMB 97,288,262 in the same quarter of 2023, a decline of 37.1%[64] Revenue Breakdown - Restaurant revenues were RMB 65.3 million (US$9.0 million), a 37.8% year-over-year decrease[17] - Total revenues from leased-and-operated hotels and restaurants were RMB 149.2 million (US$20.5 million), a 28.9% year-over-year decrease[18] - Total revenues from franchised-and-managed hotels and restaurants were RMB 160.0 million (US$22.0 million), an 11.2% year-over-year decrease[21] - Total revenues for the quarter ended June 30, 2024, were RMB 329,711,656, a decrease of 20.5% compared to RMB 414,989,569 for the same quarter in 2023[63] - Total revenues for the quarter ended June 30, 2024, were RMB 264,603,069, a decrease of 14.8% compared to RMB 310,615,960 in the same quarter of 2023[66] - Leased-and-operated revenues for the six months ended June 30, 2024, increased to RMB 228,393,613, up 6.0% from RMB 213,563,927 in the same period of 2023[66] - Total revenues for the restaurant business for the quarter ended June 30, 2024, were RMB 65,293,568, a decrease of 37.9% compared to RMB 104,939,572 in the same quarter of 2023[68] Operational Metrics - The occupancy rate was 72.5%, down from 77.8% in Q2 2023[8] - Revenue per available room (RevPAR) was RMB 125, a 10.8% year-over-year decrease[8] - The average daily room rate was RMB 173, a decrease of 4.3% from RMB 181 in Q2 2023[8] - The company opened 44 hotels and had a pipeline of 1,022 hotels contracted for or under development as of June 30, 2024[8] - Total hotels in operation increased to 4,272 as of June 30, 2024, up from 4,108 in the same period last year, representing a growth of 4%[77] - The occupancy rate for leased-and-owned hotels dropped to 70.7% in Q2 2024 from 74.6% in Q2 2023[77] - Average daily rate for franchised hotels decreased to RMB 171 in Q2 2024, down from RMB 179 in Q2 2023[77] - Total hotel rooms in operation rose to 312,734 as of June 30, 2024, compared to 303,387 a year earlier, marking a 3.5% increase[77] - The number of franchised hotels grew to 4,210 in Q2 2024, up from 4,043 in Q2 2023, indicating a growth of 4.1%[77] Cost Management - Operating costs for the second quarter of 2024 were RMB 198.3 million (US$27.3 million), a 19.0% year-over-year decrease[25] - Hotel operating costs decreased by 4.5% year-over-year to RMB 143.4 million (US$19.7 million) due to lower personnel costs and material consumption[25] - Restaurant operating costs saw a significant decrease of 42.0% year-over-year to RMB 55.1 million (US$7.6 million) primarily due to the closure of L&O stores[26] - General and administrative expenses increased by 13.7% year-over-year to RMB 61.5 million (US$8.5 million), with hotel G&A expenses rising by 23.6%[28] - Operating costs and expenses for the quarter were RMB 281,842,514, a decrease of 14.0% from RMB 327,885,996 in the same quarter of 2023[63] - Operating costs and expenses for the quarter ended June 30, 2024, were RMB 217,716,997, an increase of 2.0% from RMB 213,335,047 in the same quarter of 2023[66] Asset and Equity Management - Total current assets increased from RMB 1,626,759,605 on December 31, 2023, to RMB 1,768,547,807 on June 30, 2024, reflecting a growth of approximately 8.7%[60] - Total liabilities decreased from RMB 3,586,765,383 on December 31, 2023, to RMB 3,533,705,343 on June 30, 2024, indicating a reduction of about 1.5%[61] - Shareholders' equity rose from RMB 1,480,033,495 on December 31, 2023, to RMB 1,589,680,395 on June 30, 2024, representing an increase of approximately 7.4%[61] - Cash and cash equivalents increased significantly from RMB 765,547,547 to RMB 1,374,876,965, a growth of about 80%[60] - GreenTree's total assets increased from RMB 5,066,798,878 on December 31, 2023, to RMB 5,123,385,738 on June 30, 2024, reflecting a growth of approximately 1.1%[60] Strategic Initiatives - The company revised its revenue guidance for the hotel business in 2024 to remain flat compared to 2023 due to strategic decisions and lease expirations[44] - A cash dividend of US$0.10 per ordinary share has been approved for distribution to shareholders[45] - The company emphasizes its commitment to future growth strategies and market expansion in the hospitality industry[57] - The company plans to focus on market expansion and new product development to drive future growth[67] - The company is exploring potential mergers and acquisitions to strengthen its market position[78] - Strategic initiatives are being implemented to optimize supply chain management and reduce operational costs[78] - Future guidance indicates a positive outlook for revenue growth driven by increased restaurant openings and enhanced service offerings[78] Challenges and Adjustments - The company experienced a foreign currency translation adjustment loss of RMB 487,856 for the quarter, compared to a gain of RMB 185,533 in the same quarter of 2023[64] - The net loss attributable to non-controlling interests for the quarter was RMB 571,587, compared to a net income of RMB 1,308,704 in the same quarter of 2023[64] - Net cash provided by operating activities for the quarter was RMB 69,165,002, down 53% from RMB 147,574,909 in the same quarter last year[72] - Net loss for the quarter ended June 30, 2024, was RMB 62,261,861, a decrease of 39% compared to RMB 101,946,360 for the same quarter in 2023[71] - Bad debt expenses increased significantly to RMB 16,294,501 for the quarter, compared to RMB 6,320,196 in the same quarter of 2023, marking a 158% rise[71]
GreenTree(GHG) - 2024 Q2 - Earnings Call Presentation
2024-08-15 17:19
GreenTree Hospitality Group 大 娘水 饺 一名大会本优质 2024 Q2 Results August 15, 2024 日 格林东方酒店 区 繁華民 V 格羅酒店 格菲酒店 VX HOTEL 👍 无限 酒 周 格 丽 源 版 👍 👍 特 楽 象 拥 网 - D 世纪 小吃 格 盟 酒店 "Vatica e 贝克酒店 ShallHotel al Disclaimer This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities. Neither this presentation nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whats ...
GreenTree(GHG) - 2024 Q2 - Earnings Call Transcript
2024-08-15 17:19
Financial Data and Key Metrics Changes - In Q2 2024, total revenues decreased by 20.5% year-over-year to RMB329.7 million, with hotel revenues down 14.8% to RMB264.6 million and restaurant revenues down 37.8% to RMB35.3 million [10][14][17] - Net income was RMB62.3 million, down 38.9% year-over-year, with a margin of 18.9% [10] - Adjusted EBITDA decreased by 34.5% to RMB83.1 million, with a margin of 25.2% [10] Business Line Data and Key Metrics Changes - Hotel RevPAR decreased by 10.8% year-over-year to RMB125, with LO hotels experiencing a RevPAR drop of 7.3% and FM hotels a drop of 10.9% [10][11] - Restaurant average daily sales (ADS) decreased by 22.1% year-over-year to RMB4,737 [10][12] - The number of franchised and managed restaurants increased to 86.9% of total, with street stores accounting for 45.4% [13] Market Data and Key Metrics Changes - The company observed a trend of increased leisure travel compared to business travel, particularly in third-tier cities [30] - RevPAR in first-tier cities dropped by 12.5%, second-tier by 11.7%, and third-tier cities saw a lesser impact with a 9% reduction [32] Company Strategy and Development Direction - The company is focusing on upgrading hotels to respond to competition and is shifting its restaurant strategy towards franchised street stores [8][9] - Plans to open approximately 480 new hotels in 2024, despite a slower opening rate in Q2 due to regulatory challenges [24][42] - The company aims to maintain a disciplined approach to growth, prioritizing quality over quantity in hotel openings [43] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer and business caution in discretionary spending negatively impacted performance [8] - The company anticipates flat revenue performance for the hotel business in 2024 compared to 2023, citing various operational challenges [24] - Management expressed confidence in the long-term growth potential and profitability of the restaurant business, despite current challenges [48] Other Important Information - The company declared a cash dividend of US$0.10 per ordinary share, indicating a commitment to returning value to shareholders [19] - As of June 30, 2024, total cash and equivalents increased to RMB1,737.2 million from RMB1,517.1 million as of March 31, 2024 [18] Q&A Session Summary Question: Can you provide insights on RevPAR trends for July and August and the outlook for the second half? - Management indicated a steep drop in July's RevPAR of around 15%, with a recovery to less than a 10% drop in August [23] Question: Is there a difference between business and leisure demand? - Management noted a shift towards more leisure travel, especially in third-tier cities, with leisure hotels performing well [30] Question: How does the company compare to peers in the industry? - Management believes the company is performing better than peers in terms of price, occupancy, and reservation numbers [36] Question: What are the reasons for the low number of hotel openings in Q2? - Delays in scheduled openings were attributed to stricter regulations and licensing requirements [42] Question: What are the plans for the restaurant business moving forward? - The company plans to open about 60 new restaurants, focusing on community street stores, while remaining cautious about expansion [49]
GreenTree Hospitality Group Ltd. Announces Cash Dividend
Prnewswire· 2024-08-15 13:15
Core Viewpoint - GreenTree Hospitality Group Ltd. has announced a cash dividend of US$0.10 per ordinary share, totaling approximately US$10 million, as part of its commitment to delivering value to shareholders [1][2][3]. Company Overview - GreenTree Hospitality Group Ltd. is a leading hospitality and restaurant management group in China, with 4,272 hotels and 183 restaurants as of June 30, 2024 [4]. - The company was ranked 11th among the 225 largest global hotel groups by HOTELS magazine in 2023 and is the fourth largest hospitality company in China according to the China Hospitality Association [4]. - In 2023, GreenTree completed acquisitions of Da Niang Dumplings and Bellagio, enhancing its restaurant portfolio [4]. Financial Actions - The board of directors has approved a cash dividend of US$0.10 per ordinary share, with payments expected to be made around October 16, 2024, for ordinary shares and October 23, 2024, for American Depositary Shares (ADS) [1][2]. - The company will continue its planned share buyback program, reinforcing its commitment to sustainable profitable growth [3].
GreenTree to Report Second Quarter 2024 Financial Results on August 15, 2024
Prnewswire· 2024-08-12 08:45
SHANGHAI, Aug. 12, 2024 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree" or the "Company"), a leading hospitality management group in China, today announced that it will report its unaudited financial results for the second quarter ended June 30, 2024, on Thursday August 15, 2024. GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on August 15, 2024 (8:00 PM Beijing/Hong Kong Time on August 15, 2024).Dial-in numbers for the live conference call ...
CROWN ANNOUNCES SIGNIFICANT PROGRESS AGAINST SCOPE 3 GHG EMISSIONS GOAL IN LATEST SUSTAINABILITY REPORT
Prnewswire· 2024-07-29 20:00
Core Insights - Crown Holdings, Inc. has released its 2023 Sustainability Report, highlighting its progress towards achieving the goals set in its Twentyby30™ sustainability program, particularly in reducing Scope 3 emissions ahead of the 2030 deadline [1][2] - The Twentyby30™ program, established in 2020, includes 20 measurable sustainability goals to be completed by or before the end of 2030, using 2019 as a baseline [1] - The report emphasizes the collective efforts of Crown's global team in addressing stakeholder concerns and driving significant change across various sustainability pillars [1][2] Sustainability Goals - The sustainability program is structured around five pillars: Climate Action, Resource Efficiency, Optimum Circularity, Working Together, and Never Compromise [1] - The report titled "A Shared Purpose" showcases the commitment of Crown's global team to sustainability and the importance of collaboration with industry partners, government bodies, and consumers [2][3] Reporting Standards - The 2023 Sustainability Report adheres to the Global Reporting Initiative (GRI) Core Standard and the Ten Principles of the United Nations Global Compact (UNGC) [3] - It maps Crown's progress to indicators defined by the Sustainability Accounting Standards Board (SASB) Containers & Packaging Standard and key United Nations Sustainable Development Goals (SDGs) [3] - The climate reporting follows the guidelines of the Task Force on Climate-Related Financial Disclosures (TCFD) [3] Independent Assurance - The report received independent assurance from Lucideon CICS Limited regarding the total 2023 data for greenhouse gas emissions (Scope 1, 2, and 3) and water usage data [4]
GreenTree(GHG) - 2024 Q1 - Earnings Call Transcript
2024-06-25 14:26
GreenTree Hospitality Group Ltd. (NYSE:GHG) Q1 2024 Earnings Conference Call June 25, 2024 8:00 AM ET Company Participants Rene Vanguestaine - Investor Relations Alex Xu - Chairman & Chief Executive Officer Selina Yang - Chief Financial Officer Conference Call Participants Betty Du - UBS Alpha Wang - Goldman Sachs Operator Good day, and welcome to the GreenTree Hospitality Group First Quarter 2024 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Plea ...
GreenTree(GHG) - 2024 Q1 - Earnings Call Presentation
2024-06-25 11:29
2024 Q1 Results June 25, 2024 1 Disclaimer This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities. Neither this presentation nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, this presentation does not constitute a “prospectus” within the meaning of the Securities Act of 1933, as amended. Our historical resul ...
GreenTree Hospitality Group Ltd. Reports First Quarter of 2024 Financial Results
Prnewswire· 2024-06-25 10:53
Core Insights - GreenTree Hospitality Group Ltd. reported total revenues of RMB352.2 million (US$48.8 million) for Q1 2024, a decrease of 7.1% year-over-year [10][11] - Hotel revenues increased by 8.8% year-over-year to RMB274.8 million (US$38.1 million), while restaurant revenues decreased by 38.9% to RMB77.7 million (US$10.8 million) [10][11] - The company achieved a net income of RMB57.3 million (US$7.9 million), up from RMB32.6 million in Q1 2023, reflecting a net margin of 16.3% [17][18] Financial Performance - Income from operations was RMB72.2 million (US$10 million), compared to RMB52.3 million in Q1 2023, with an operating margin of 20.5% [17] - Adjusted EBITDA increased by 17.2% year-over-year to RMB109.4 million (US$15.2 million), with an adjusted EBITDA margin of 31.1% [18] - Core net income rose by 21.5% year-over-year to RMB60.7 million (US$8.4 million), with a core net margin of 17.2% [18] Operational Highlights - As of March 31, 2024, GreenTree operated 4,256 hotels with 313,531 rooms, having opened 109 new hotels and with a pipeline of 994 hotels under development [4] - The average daily room rate (ADR) was RMB169, a 0.9% increase from RMB167 in Q1 2023, while the occupancy rate decreased to 67.8% from 71.7% [4] - Revenue per available room (RevPAR) decreased by 4.6% year-over-year to RMB114 [4] Restaurant Business - The company operated 185 restaurants as of March 31, 2024, with an average check (AC) of RMB59, a 5.8% year-over-year increase [5] - Average daily tickets (ADT) decreased to 94 from 109 in Q1 2023, while average daily sales (ADS) per store fell by 8.7% to RMB5,525 [5] - The restaurant segment underwent strategic repositioning, resulting in the closure of unprofitable locations and a focus on profitable franchise operations [6] Cash Flow and Liquidity - Operating cash inflow for Q1 2024 was RMB90.7 million (US$12.6 million), with investing cash inflow of RMB213.1 million (US$29.5 million) primarily from short-term investments [19] - As of March 31, 2024, total cash and cash equivalents, including restricted cash and short-term investments, amounted to RMB1,517.3 million (US$210.1 million), an increase from RMB1,337.1 million at the end of 2023 [20] Guidance - The company maintains its revenue growth guidance for the hotel business at 7% to 12% year-over-year, while withdrawing guidance for the restaurant business due to unpredictability from its strategic repositioning [21]