GreenTree(US:GHG)2025-04-25 15:32Financial 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]