GreenTree Hospitality Group Ltd (NYSE:GHG) Q3 2020 Earnings Conference Call December 2, 2020 8:00 PM ET Company Participants Rene Vanguestaine - Investor Relations Alex Xu - Chairman and Chief Executive Officer Megan Huang - Vice President of Sales and Marketing Selina Yang - Chief Financial Officer Conference Call Participants Justin Kwok - Goldman Sachs Bruce Mi - UBS Jisheng Liu - CLSA Billy Ng - Bank of America Nate Deng - China Renaissance Operator Hello, ladies and gentlemen, and thank you for standin ...

Financial Data and Key Metrics Changes - Total revenues decreased by 21.4% year-over-year to RMB216 million [8] - Gross profit decreased by 38.2% to RMB121.1 million, with gross margin dropping from 71.3% to 56.1% [21] - Net income decreased by 26.3% to RMB93.7 million, with net margin decreasing from 46.2% to 43.4% [21] - Non-GAAP adjusted EBITDA decreased by 47.2% to RMB91.4 million, with adjusted EBITDA margin decreasing to 42.3% [21] - Net income per ADS decreased by 19.7% to RMB1.01, while core net income per ADS decreased by 40.9% to RMB0.72 [22] Business Line Data and Key Metrics Changes - Total revenue from franchised-and-managed (F&M) hotels decreased by 22.7% to RMB165.7 million, while revenue from leased-and-operated (L&O) hotels decreased by 16.8% to RMB50.3 million [18] - RevPAR for F&M hotels decreased by 35.2% to RMB90, while RevPAR for L&O hotels decreased by 47.1% to RMB80 [16] - The number of hotels in operation increased by 37.6% year-over-year to 4,066, with 111 new hotels opened during the quarter [14] Market Data and Key Metrics Changes - The occupancy rate averaged 63.4%, with a significant recovery from a low of 21.5% at the end of January [7][11] - RevPAR for tier 3 and smaller cities decreased by 27%, while tier 2 cities saw a decrease of 42%, and tier 1 cities experienced a decrease of 50% [60] - The economy segment's RevPAR decreased by 39%, mid-scale by 30%, mid-to-upscale by 29%, and luxury by 54% [62] Company Strategy and Development Direction - The company is focusing on expanding its market presence across China, with a pipeline of 1,087 hotels, up 82.4% year-over-year [7] - The strategy includes increasing cooperation with corporate clients and travel management companies to attract more business travelers [11] - The company aims to enhance its position in tier 3 and smaller cities, where 66.8% of its hotels are located [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery in domestic tourism and business travel following the lifting of interprovincial travel restrictions [13] - The company expects a decline in total revenues of 10% to 15% for the full year 2020 compared to 2019 [24] - Management noted that the business model is resilient due to a loyal membership base and strong operational capabilities [13] Other Important Information - The company had a total balance of cash and cash equivalents of RMB1.7 billion as of June 30, 2020, an increase from RMB1.6 billion at the end of Q1 2020 [22] - The company is evaluating options for a potential secondary listing in Hong Kong or other markets to increase liquidity [33] Q&A Session Summary Question: Guidance on RevPAR for Q3 and Q4 compared to 2019 - Management is optimistic about a 10% to 15% recovery in RevPAR for Q3 and expects Q4 to be around 5% to 10% below last year [25][27] Question: Level of competition in the market - Management noted increased competition from various hotel classes, which may compress ADR, but they believe their business model remains resilient [25][28] Question: Considerations for a secondary listing - Management is exploring options for a secondary listing to increase liquidity and financial resources [33] Question: Prebooking status for the upcoming October 1 Golden Week - Prebooking is slightly less than last year, but there is strong demand in the pipeline [35][36] Question: Competition in lower-tier cities - Management observed less competition in lower-tier cities as many competitors have exited the market [39] Question: Details on bad debt accrual - The bad debt accrual is a precautionary measure related to potential financial burdens on franchisees due to COVID-19 [40][41] Question: Changes in business demand from corporate clients - Management noted that business travelers are cautious but demand remains strong for essential travel [44][45] Question: Factors driving ADR changes - Management indicated that ADR is under pressure due to competition and promotional packages, but they aim to maintain a stable pricing strategy [51][55]

GreenTree Hospitality Group Ltd. (NYSE:GHG) Q1 2020 Earnings Conference Call June 4, 2020 9:00 PM ET Company Participants Rene Vanguestaine - Christensen, Investor Relations Alex Xu - Chairman & Chief Executive Officer Megan Huang - Director, IT Department Selina Yang - Chief Financial Officer Conference Call Participants Justin Kwok - Goldman Sachs Praveen Choudhary - Morgan Stanley Jisheng Liu - CLSA Lydia Ling - Citibank Operator Good day and welcome to the GreenTree Hospitality Group Ltd.’s First Quarte ...

| UNITED STATES | | --- | | SECURITIES AND EXCHANGE COMMISSION | | WASHINGTON, D.C. 20549 | | FORM 20-F | | ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 | | OR | | ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | For the fiscal year ended December 31, 2019. | | OR | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | OR | | ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 ...

GreenTree Hospitality Group Ltd. (NYSE:GHG) Q4 2019 Earnings Conference Call April 14, 2020 8:00 AM ET Company Participants Rene Vanguestaine - Investor Relations Alex Xu - Chairman and CEO Yiping Yang - CFO Megan Huang - Director, IT Department Conference Call Participants Justin Kwok - Goldman Sachs Praveen Choudhary - Morgan Stanley Billy Ng - Bank of America Operator Good day and good evening and welcome to the GreenTree Hospitality Group Ltd. Fourth Quarter and Fiscal Year 2019 Earnings Conference Cal ...

Financial Data and Key Metrics Changes - Total revenue grew 20.1% year-over-year to RMB 292.1 million [8][15] - Gross profit increased 21.4% to RMB 204.9 million [8][18] - Non-GAAP adjusted EBITDA rose 11.6% to RMB 177.1 million [8][18] - Core net income per ADS improved by 16.5% to RMB 1.3, equivalent to $0.18 [8][19] - Net income decreased by 28.4% to RMB 102.2 million, primarily due to market fluctuations and increased operating costs [19] Business Line Data and Key Metrics Changes - Total revenue from Franchised and Managed (F&M) Hotels rose 19.2% to RMB 219.6 million, while revenue from Leased and Operated (L&O) Hotels rose 22.9% to RMB 72.6 million [15] - The number of hotels in operation increased by 21.3% year-over-year to 3,102 [7][9] - The occupancy rate slightly decreased by 1.3% to 85.9% due to renovations and new hotel openings [8][9] Market Data and Key Metrics Changes - The company expanded its geographic coverage to 309 cities, up from 278 cities a year ago, representing an 11.2% year-over-year growth [7] - The average daily rate (ADR) for F&M hotels improved by 4.2% to RMB 173, while revenue per available room (RevPAR) increased by 2.6% to RMB 149 [10][11] Company Strategy and Development Direction - The company aims to diversify its portfolio by adding hotels in higher-end and economy segments, with a focus on maintaining quality standards [9][13] - The loyalty program has grown to approximately 39 million individual members, which helps reduce sales and marketing expenses [12] - The company plans to continue investing in people, brand, systems, and technology to enhance service and ensure long-term growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and long-term growth strategies despite challenges in the hospitality sector [13] - The company anticipates stable or slightly improved RevPAR for the fourth quarter, with renovations expected to enhance performance post-completion [22] - Management acknowledged increased competition in lower-tier cities but believes their established brand and operational efficiency will sustain profitability [54][56] Other Important Information - The company has a pipeline of 652 new hotels, with a significant portion in the mid-to-upscale and luxury segments [11] - Cash and cash equivalents stood at nearly RMB 2.1 billion, providing ample resources for potential investments [20] Q&A Session Summary Question: RevPAR outlook for the fourth quarter - Management expects RevPAR to remain stable or improve slightly, despite potential negative impacts from ongoing renovations [22] Question: Need for more economy hotels to sustain market share - Management is monitoring the market and evaluating the addition of soft brands but emphasizes maintaining quality standards [24][25] Question: Same hotel RevPAR growth and major cities breakdown - Same hotel RevPAR growth was 2.3% for mid-scale, 3.6% for economy, and a decline of 3.7% for mid-to-upscale and luxury segments [28] Question: Breakdown of operating expense hikes - Significant increases in selling and marketing expenses were attributed to Argyle consolidation and promotional activities [30][31] Question: Comparison of profitability with peers - Management believes their value pricing model and strong membership programs contribute to better performance compared to peers [35] Question: Future expansion plans and cash deployment - The company is focused on domestic growth opportunities and will selectively consider investments in strategically located properties [37][38] Question: Dividend expectations for the next quarter - Management confirmed adherence to the announced dividend policy unless stated otherwise [50]