GHG 6-K 2024 - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

November 2024

Commission File Number: 001-38425

GreenTree HospitalityGroup Ltd.

(Registrant’s name)

1228 Zhongshan North Road, Putuo District

Shanghai 200065

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

GREENTREE HOSPITALITY GROUP LTD.
By:	/s/ Alex S. Xu
Name:	Alex S. Xu
Title:	Chairman and Chief Executive Officer

Date: November 25, 2024

EXHIBIT INDEX

Exhibit No.	Description
99.1	GreenTree Hospitality Group Ltd. Reports Third Quarter 2024 Financial Results

Exhibit99.1

GreenTreeHospitality Group Ltd. Reports Third Quarter of 2024 Financial Results

·	Totalrevenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million)^[1]^.
·	Income from operations was RMB106.4 million (US$15.2 million)^[1]^ compared to RMB137.8 million for the third quarter of 2023.
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·	Net income was RMB65.2 million (US$9.3 million)^[1]^ compared to RMB117.4 million for the third quarter of 2023.
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·	AdjustedEBITDA (non-GAAP)^^^[2]^decreased 32.1% year over year to RMB122.5million (US$17.5 million)^[1]^
---	---
·	Core net income (non-GAAP)^[3]^decreased 26.6% year over year to RMB93.5million (US$13.3 million)^[1]^.
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SHANGHAI, November 21, 2024 /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 third quarter of 2024.

Third Quarterof 2024 Operational Highlights

Hotels

·	A<br> total of 4,336 hotels with 316,461 hotel rooms were in operation as of September 30, 2024.
·	The<br> Company opened 109 hotels and had a pipeline of 1,085 hotels contracted for or under development<br> as of September 30, 2024.
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·	The<br> average daily room rate was RMB181, a decrease of 6.0% from RMB192 in the third quarter of<br> 2023.
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·	The<br> occupancy rate was 74.6%, decreased from 81.2% in the third quarter of 2023.
---	---
·	Revenue<br> per available room, or RevPAR, was RMB135, a 13.6% year-over-year decrease.
---	---

1.The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.0176 on September 30, 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.Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities and other general expenses, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.

3.Core net income is calculated as net income plus share-based compensation, losses from investments in equity securities (net of 25% tax), other expense(net of 25% tax), one-time fees and expense, and other general expenses but excludes government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax).

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Restaurants

·	A<br> total of 182 restaurants were in operation as of September 30, 2024
·	The<br> AC (average check) was RMB46, a 15.9% year-over-year decrease.
---	---
·	The<br> ADT (average daily tickets) was 106, decreased from 120 in the third quarter of 2023.
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·	The<br> ADS (average daily sales per store) was RMB4,891, a decrease of 25.6% from RMB6,570 in the<br> third quarter of 2023.
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Our hotel business improved in the third quarter over the first two quarters of this year as the economy continued to recover. Travel consumption returned to a more normal pattern following last year’s surge, which has influenced year-over-year comparisons. We are back to a more positive environment, focusing on growing our pipeline and upgrading numerous hotels across our portfolio. We are confident that we are on the right track and will benefit from the ongoing stimulus measures implemented by the government.

Our restaurant business’ net income remained positive for a second consecutive quarter as we continued to grow the number of franchised street stores and stores with stable consumer traffic. Such stores now account for 55.5% of our store count compared to 44.6% a year ago. Following the closing of unprofitable stores over the past year, the number restaurants in operation had stabilized at 182 at the end of quarter and we are now focused on growing that number,” said Mr. Alex S. Xu, Chairman and Chief Executive Office of GreenTree.

Third Quarter Of2024 Financial Results

	Quarter<br> Ended
	September<br><br> 30, 2023		September<br><br> 30, 2023		September<br><br> 30, 2023		September<br><br> 30, 2023
	RMB		RMB		RMB		RMB
	Hotel		Restaurant		Elimination		Total
Revenues
Leased-and-operated<br> revenues		151,839,044		80,358,490		49,624		232,247,158
Franchised-and-managed revenues		186,043,016		4,070,541		-		190,113,557
Wholesales<br> and others		1,168,017		37,355,462		-		38,523,479
Total<br> revenues		339,050,077		121,784,493		49,624		460,884,194

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	Quarter<br> Ended
	September<br><br> 30, 2024		September<br><br> 30, 2024		September<br><br> 30, 2024			September<br><br> 30, 2024		September<br> <br> 30, 2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Revenues
Leased-and-operated<br> revenues		118,159,125		41,117,277		-			159,276,402
Franchised-and-managed revenues		167,928,127		1,757,933		-			169,686,060
Wholesales<br> and others		796,488		27,766,790		(544,290	)		28,018,988
Total<br> revenues		286,883,740		70,642,000		(544,290	)		356,981,450

All values are in US Dollars.

	Nine<br> Month Ended
	September<br><br> 30, 2023		September<br><br> 30, 2023		September<br><br> 30, 2023			September<br><br> 30, 2023
	RMB		RMB		RMB			RMB
	Hotel		Restaurant		Elimination			Total
Revenues
Leased-and-operated<br> revenues		365,402,970		248,698,564		(1,075,555	)		613,025,979
Franchised-and-managed revenues		533,460,017		7,235,800		-			540,695,817
Wholesales<br> and others		3,393,596		97,978,792		-			101,372,388
Total<br> revenues		902,256,583		353,913,156		(1,075,555	)		1,255,094,184

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	Nine<br> Month Ended
	September<br><br> 30, 2024		September<br><br> 30, 2024		September<br><br> 30, 2024			September<br><br> 30, 2024		September<br> 30, 2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Revenues
Leased-and-operated<br> revenues		346,552,738		130,792,112		-			477,344,850
Franchised-and-managed revenues		476,898,409		5,527,686		-			482,426,095
Wholesales<br> and others		2,881,694		77,272,388		(1,004,493	)		79,149,589
Total<br> revenues		826,332,841		213,592,186		(1,004,493	)		1,038,920,534

All values are in US Dollars.

Total revenueswere RMB357.0 million (US$50.9 million), a 22.5% year-over-year decrease.

Hotel revenues were RMB286.9 million (US$40.9 million), a 15.4% year-over-year decrease due to a 13.6% year-over-year decrease in Revpar and the closure of 6 L&O hotels in the third quarter due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB70.6 million (US$10.1 million), a 42.0% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores. By the end of the third quarter, we had completed the strategic transformation of our business model.

Total revenues for the first nine months of 2024 were RMB1,038.9 million (US$148.0 million)^[1]^, a 17.2% year-over-year decrease.

Totalrevenues from leased-and-operated, or L&O, hotels and restaurants were RMB159.3 million (US$22.7 million)^[1]^, a 31.4% year-over-year decrease.

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Total revenues from L&O hotels were RMB118.2 million (US$16.8 million)^[1]^, a 22.2% year-over-year decrease. The decrease was primarily attributable to an 7.5% year-over-year decrease in the third quarter RevPAR of L&O hotels, the closing of 6 L&O hotels, and a reduction in sublease revenues mainly due to the disposal of a property.

Total revenues from L&O restaurants were RMB41.1 million (US$5.9 million)^[1]^, a 48.8% year-over-year decrease, mainly due to the closure of 29 L&O restaurants since the third quarter of 2023 and the year-over-year decrease in ADS.

Total revenues from L&O hotels and restaurants for the first nine months of 2024 were RMB477.3 million (US$68.0 million)^[1]^, a 22.1% year-over-year decrease.

Totalrevenues from franchised-and-managed, or F&M, hotels and restaurants were RMB169.7 million (US$24.2 million), a 10.7% year-over-year decrease.

Total revenues from F&M hotels were RMB167.9 million (US$23.9 million), a 9.7% year-over-year decrease, primary due to a 13.8% decrease in F&M hotels' Revpar and partially offset by new openings.

Total revenues from F&M restaurants were RMB1.8 million (US$0.3 million), a 56.8% year-over-year decrease, mainly due to the year-over-year decrease in ADS.

Total revenues from F&M hotels and restaurants for the first nine months of 2024 were RMB482.4 million (US$68.7 million)^[1]^, a 10.8% year-over-year decrease.

Totalrevenues from wholesale and others were RMB28.0M (US$4.0 million), a 27.3% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.

Total revenues from wholesale and others for the first nine months of 2024 were RMB79.1 million (US$11.3 million), a 21.9% year-over-year decrease.

Total operatingcosts and expenses

	Quarter<br> Ended
	September<br><br> 30, 2023		September<br><br> 30, 2023		September<br><br> 30, 2023		September<br><br> 30, 2023
	RMB		RMB		RMB		RMB
	Hotel		Restaurant		Elimination		Total
Operating costs and expenses
Operating costs		159,920,582		87,814,484		49,623		247,784,689
Selling and marketing expenses		14,277,225		12,026,085		-		26,303,310
General and administrative expenses		26,655,780		11,858,500		-		38,514,280
Other operating expenses		180,515		120,654		-		301,169
Other general<br> expenses		11,322,509		-		-		11,322,509
Total<br> operating costs and expenses		212,356,611		111,819,723		49,623		324,225,957

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	Quarter<br> Ended
	September<br><br> 30, 2024		September<br><br> 30, 2024		September<br><br> 30, 2024			September<br><br> 30, 2024		September<br> 30, 2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Operating costs and expenses
Operating costs		152,278,796		53,365,650		(475,648	)		205,168,798
Selling and marketing expenses		12,899,411		2,881,942		(68,642	)		15,712,711
General and administrative expenses		35,309,079		7,023,449		-			42,332,528
Other operating expenses		1,363,201		654,777		-			2,017,978
Other general<br> expenses		-		-		-			-
Total<br> operating costs and expenses		201,850,487		63,925,818		(544,290	)		265,232,015

All values are in US Dollars.

	Nine<br> Month Ended
	September<br><br> 30, 2023		September<br><br> 30, 2023		September<br><br> 30, 2023			September<br><br> 30, 2023
	RMB		RMB		RMB			RMB
	Hotel		Restaurant		Elimination			Total
Operating costs and expenses
Operating costs		444,284,960		292,122,643		(560,465	)		735,847,138
Selling and marketing expenses		39,115,830		21,411,730		-			60,527,560
General and administrative expenses		117,191,327		33,197,310		-			150,388,637
Other operating expenses		1,024,079		7,111,308		-			8,135,387
Other general<br> expenses		27,296,093		-		-			27,296,093
Total<br> operating costs and expenses		628,912,289		353,842,991		(560,465	)		982,194,815

	Nine<br> Month Ended
	September<br> <br> 30, 2024		September<br> <br> 30, 2024		September<br> <br> 30, 2024			September<br> <br> 30, 2024		September<br> 30, 2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Operating costs and expenses
Operating costs		441,888,078		170,642,273		(916,517	)		611,613,834
Selling and marketing expenses		41,576,925		8,473,078		(87,975	)		49,962,028
General and administrative expenses		128,706,277		22,802,128		-			151,508,405
Other operating expenses		2,301,445		2,136,726		-			4,438,171
Other general<br> expenses		11,756,531		-		-			11,756,531
Total<br> operating costs and expenses		626,229,256		204,054,205		(1,004,492	)		829,278,969

All values are in US Dollars.

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Operating costswere 205.2 million (US$ 29.2 million)^[1]^, a 17.2% year-over-year decrease.

Operating costs of the hotel business were RMB152.3 million (US$21.7million)^[1]^, a 4.8% year-over-year decrease. The decrease was mainly attributable to lower staff related costs due to the disposal of L&O hotels.

Operating costs of the restaurant business in the third quarter of 2024 were RMB53.4 million (US$ 7.6 million)^[1]^, a 39.2% year-over-year decrease, due to the closure of L&O stores.

For the first nine months of 2024, operating costs were RMB611.6 million (US$87.2 million)^[1]^, a 16.9% decrease.

Selling andmarketing expenses were RMB15.7 million (US$2.2 million)^[1]^, a 40.3% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB12.9 million (US$1.8 million)^[1]^, a 9.7% year-over-year decrease. The decrease was mainly due to lower advertising expenses.

Selling and marketing expenses of the restaurant business were RMB2.9 million (US$0.4 million)^[1]^, a 76.0% year-over-year decrease, mainly attributable to lower sales staff related expenses and lower sales-channel commissions.

For the first nine months of 2024, selling and marketing expenses were RMB50.0 million (US$7.1 million)^[1]^, a 17.5% decrease.

General andadministrative, or G&A expenses were RMB42.3 million (US$6.0 million)^[1]^, a 9.9% year-over-year increase.

G&A expenses of the hotel business were RMB35.3 million (US$5.0 million)^[1]^, a 32.5% year-over-year increase. The increase was mainly due to an increase of approximately RMB11 million in bad debt provisions for long-aged account receivables.

G&A expenses of the restaurant business were RMB7.0 million (US$1.0 million)^[1]^, a 40.8% year-over-year decrease, mainly due to lower staff related expenses.

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General and administrative expenses for the first nine months of 2024 were RMB151.5 million (US$21.6 million)^[1]^, a 0.7% year-over-year increase.

Other generalexpenses were nil for this quarter, and for the first nine months of 2024 were RMB11.8 million (US$1.7 million) ^[1]^, a 56.9% year-over-year decrease.

Gross profitwas RMB151.8 million (US$21.6 million)^[1]^, a year-over-year decrease of 28.8%. Gross margin was 42.5%, compared to 46.2% a year ago. The gross profit of the hotel business was RMB134.6 million (US$19.2 million)^[1]^, an 24.9% year-over-year decrease. The gross profit of the restaurant business was RMB17.3 million (US$2.5 million)^[1]^, a 49.1% year-over-year decrease.

Incomefrom operations in the third quarter of 2024 was RMB106.4 million (US$15.2 million)^[1]^ , compared to income from operations of RMB137.8 million in the third quarter of 2023, with a margin of 29.8%. The lower profitability was due to the decline in revenue, despite lower operating costs and expenses.

Income from operations of the hotel business was RMB99.5 million (US$14.2 million)^[1]^, compared to an income from operations of RMB127.5 million in the third quarter of 2023, with a margin of 34.7%.

Income from operations of the restaurant business in the third quarter of 2024 was RMB6.9 million (US$1.0 million)^[1]^, compared to income from operations of RMB10.3 million in the third quarter of 2023, with a margin of 9.7%.

Income from operations for the first nine months of 2024 was RMB263.1 million (US$37.5 million)^[1]^ compared to income from operations of RMB288.7 million in 2023, with a margin of 25.3%.

Net income in the third quarter of 2024 was RMB65.2 million (US$9.3 million)^[1]^, compared to a net income of RMB117.4 million in the third quarter of 2023, and net margin was 18.3%. Net income was partially negatively impacted by a foreign exchange loss of approximately RMB33 million.

Net income of the hotel business was RMB58.6 million (US$8.4 million)^[1]^, compared to a net income of RMB108.5 million in the third quarter of 2023, and net margin was 20.4%.

Net income of the restaurant business in the third quarter of 2024 was RMB6.6 million (US$0.9 million)^[1]^, compared to a net income of RMB8.8 million in the third quarter of 2023, and net margin was 9.4%.

Net income for the first nine months of 2024 was RMB184.8 million (US$26.3million)^[1]^, compared to a net income of RMB 251.9 million in 2023, and net margin was 17.8%.

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Adjusted EBITDA(non-GAAP)^[2]^ in the third quarter of 2024 was RMB122.5 million (US$17.5 million)^[1]^, a year-over-year decrease of 32.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 34.3%, compared to 39.2% a year ago.

Adjusted EBITDA (non-GAAP) for the first nine months of 2024 was RMB315.0 million (US$44.9 million), a year-over-year decrease of 21.4%.

Core net income(non-GAAP) in the third quarter of 2024 was RMB93.5 million (US$13.3 million)^[1]^, a year-over-year decrease of 26.6%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 26.2%, compared to 27.6% one year ago.

Core net income (non-GAAP) for the first nine months of 2024 was RMB224.4 million (US$ 32.0 million)^[1]^, a year-over-year decrease of 8.7%.

Earnings perAmerican Depositary Share, or ADS, (basic and diluted) were RMB0.65 (US$0.09 )^[1]^, decreased from RMB1.15 one year ago.

Earnings perAmerican Depositary Share, or ADS, (basic and diluted) for the first nine months of 2024 were RMB1.83 (US$0.26 )^[1]^, decreased from RMB2.52 one year ago.

Core net incomeper ADS (basic and diluted) (non-GAAP) was RMB0.92 (US$0.13 )^[1]^, decreased from RMB1.25 a year ago.

Core netincome per ADS (basic and diluted) (non-GAAP) was RMB2.21 (US$0.31)^[1]^ for the first nine months of 2024, an decrease from RMB2.41 a year ago.

Cash flow Operatingcash inflow was RMB139.2 million (US$19.8 million)^[1]^ as a result of income from operations. Investing cash outflow for the third quarter of 2024 was RMB0.1 million (US$0.01 million)^[1]^, which was primarily due to purchase of equipment for the newly opened LO store in the second quarter and offset by repayment of loans from franchisees. Financing cash outflow was RMB1.3 million (US$0.2 million)^[1]^,mainly due to the repurchase of ordinary shares.

**Cash and cashequivalents, restricted cash, short-term investments, investments in equity securities and time deposits.**As of September 30, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,883.9million (US$268.5 million)^[1]^,compared to RMB1,737.2 million as of June 30, 2024. The increase was mainly attributable to continued operating cash inflow and repayment of loans from franchisees.

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Guidance

We now anticipate revenue for our hotel business for the full year 2024 to decrease approximately 8% compared to 2023. This is based on our operating performance so far this year, in particular lower than expected travel in the third quarter, and the strategic review of our LO hotels segment that led to the net closure of 9 hotels by the end of the third quarter and contributed nearly half of the decline.

Conference Call

GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on November 21, 2024, (9:00 PM Beijing/Hong Kong Time on November 21, 2024).

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 november 28, 2024.

Dial-in numbers for the replay are as follows:

International<br> Dial-in	1-412-317-0088
U.S. Toll Free	1-877-344-7529
Canada Toll Free	855-669-9658
Passcode:	5184244

Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com.

Use of Non-GAAPFinancial 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.

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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 GreenTreeHospitality Group Ltd.

GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of September 30, 2024, GreenTree had a total number of 4,336 hotels and 182 restaurants. In 2023, HOTELS magazine ranked GreenTree 11th 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 2023 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.

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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 HarborStatements

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

12 / 23

GreenTreeHospitality Group Ltd.

UnauditedCondensed Consolidated Balance Sheets

	December<br> 31			September<br> 30			September<br> 30
	2023			2024			2024
	RMB			RMB			US
ASSETS
Current assets:
Cash and cash equivalents		765,547,547			1,513,020,988
Restricted cash		6,576,906			7,240,598
Short-term investments		417,711,617			64,034
Investments in equity securities		26,076,169			22,798,811
Accounts receivable, net of allowance		123,887,879			112,807,834
Amounts due from related parties		19,928,781			17,890,534
Inventories		20,462,490			6,423,582
Other current assets		117,047,122			125,926,677
Loans receivable, net		129,521,094			79,569,204
Total current assets		1,626,759,605			1,885,742,262
Non-current assets:
Amounts due from a related party		110,000,000			110,000,000
Restricted cash		19,476,259			19,397,031
Long-term time deposits		63,340,000			285,570,000
Loans receivable, net		70,690,305			43,154,241
Property and equipment, net		814,949,026			634,881,632
Intangible assets, net		117,720,693			114,380,472
Goodwill		177,082,468			177,082,468
Long-term investments		184,758,800			188,946,438
Operating lease right-of-use assets		1,535,330,762			1,353,807,671
Other assets		104,725,600			106,200,135
Deferred tax assets		241,965,360			180,650,424
TOTAL ASSETS		5,066,798,878			5,099,812,774
LIABILITIES AND EQUITY
Current liabilities:	****	****	****	****	****	****		****
Long-term bank loans, current<br> portion		200,000			-
Short-term bank loans		116,800,000			400,000
Accounts payable		73,126,677			45,619,837
Advance from customers		22,393,097			21,258,689
Amounts due to related parties		16,310,293			15,694,608
Salary and welfare payable		86,332,096			74,484,735
Deferred revenue		186,281,838			197,495,166
Accrued expenses and other current liabilities		459,832,717			493,142,341
Income tax payable		112,782,712			124,691,079
Dividends payable		-			70,176,000
Operating lease liabilities, current		267,536,846			183,764,847
Total current<br> liabilities		1,341,596,276			1,226,727,302
Long-term bank loans		56,800,000			256,400,000
Deferred revenue		207,905,769			182,882,796
Other long-term liabilities		111,711,748			117,713,049
Operating lease liabilities, non-current		1,391,909,309			1,300,009,022
Deferred tax liabilities		94,716,495			54,099,834
Unrecognized tax benefits		382,125,786			371,085,335
TOTAL LIABILITIES		3,586,765,383			3,508,917,338
Shareholders’ equity:
Class A ordinary shares		222,587,070			222,587,070
Class B ordinary shares		115,534,210			115,534,210
Treasury Stock		(36,677,832	)		(36,977,954	)		)
Additional paid-in capital		1,680,713,349			1,680,194,335
Retained earnings (Accumulated<br> losses)		(568,339,799	)		(452,428,018	)		)
Accumulated<br> other comprehensive income		28,401,282			26,759,125
Total<br> GreenTree Hospitality Group Ltd. shareholders’ equity		1,442,218,280			1,555,668,768
Non-controlling<br> interests		37,815,215			35,226,668
Total<br> shareholders’ equity		1,480,033,495			1,590,895,436
TOTAL<br> LIABILITIES AND SHAREHOLDERS’ EQUITY		5,066,798,878			5,099,812,774

All values are in US Dollars.

13 / 23

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

	Quarter Ended								Nine Month Ended
	September<br><br>30, 2023			September<br><br> 30, 2024			September<br> 30, 2024		September<br><br> 30, 2023			September<br><br> 30, 2024			September<br> 30, 2024
	RMB			RMB			US		RMB			RMB			US
Revenues
Leased-and-operated revenues		232,247,158			159,276,402					613,025,979			477,344,850
Franchised-and-managed revenues		190,113,557			169,686,060					540,695,817			482,426,095
Wholesales and others		38,523,479			28,018,988					101,372,388			79,149,589
Total revenues		460,884,194			356,981,450					1,255,094,184			1,038,920,534
Operating costs and expenses
Operating costs		(247,784,689	)		(205,168,798	)		)		(735,847,138	)		(611,613,834	)		)
Selling and marketing expenses		(26,303,310	)		(15,712,711	)		)		(60,527,560	)		(49,962,028	)		)
General and administrative expenses		(38,514,280	)		(42,332,528	)		)		(150,388,637	)		(151,508,405	)		)
Other operating expenses		(301,169	)		(2,017,978	)		)		(8,135,387	)		(4,438,171	)		)
Other general expenses		(11,322,509	)		-					(27,296,093	)		(11,756,531	)		)
Total operating costs and expenses		(324,225,957	)		(265,232,015	)		)		(982,194,815	)		(829,278,969	)		)
Other operating income		1,136,022			14,654,068					15,806,939			53,422,304
Income from operations		137,794,259			106,403,503					288,706,308			263,063,869
Interest income and other, net		13,662,038			7,488,034					31,041,389			27,438,533
Interest expense		(3,740,491	)		(116,161	)		)		(13,137,021	)		(4,485,219	)		)
Gains (losses) from investment in equity securities		365,577			10,015,229					(4,434,821	)		(5,409,426	)		)
Other income, net		1,779,998			(34,653,121	)		)		42,926,246			(17,862,097	)		)
Income before income taxes		149,861,381			89,137,484					345,102,101			262,745,660
Income tax expense		(32,385,239	)		(24,330,641	)		)		(92,335,322	)		(77,512,335	)		)
Income (loss) before share of gains in equity investees		117,476,142			64,806,843					252,766,779			185,233,325
Share of loss/(income) in equity investees, net of tax		(83,027	)		405,064					(869,910	)		(464,693	)		)
Net income(loss)		117,393,115			65,211,907					251,896,869			184,768,632
Net loss/(income) attributable to non-controlling interests		227,170			288,968					5,304,468			1,319,147
Net income attributable to ordinary shareholders		117,620,285			65,500,875					257,201,337			186,087,779
Net earnings per share
Class A ordinary share-basic and diluted		1.15			0.65					2.52			1.83
Class B ordinary share-basic and diluted		1.15			0.65					2.52			1.83
Net earnings per ADS
Class A ordinary share-basic and diluted		1.15			0.65					2.52			1.83
Class B ordinary share-basic and diluted		1.15			0.65					2.52			1.83
Weighted average shares outstanding
Class A ordinary share-basic and diluted		67,416,046			66,778,809					67,416,046			66,780,008
Class B ordinary share-basic and diluted		34,762,909			34,762,909					34,762,909			34,762,909
Other comprehensive income, net of tax
Foreign currency translation adjustments		(68,502	)		6,463,594					927,605			(1,642,157	)		)
Unrealized gains(loss) on available-for-sale investments, net of tax
Comprehensive income, net of tax		117,324,613			71,675,501					252,824,474			183,126,475
Comprehensive loss/(income) attributable to non-controlling interests		6,379,505			288,968					5,304,468			1,319,147
Comprehensive income (loss) attributable to ordinary shareholders		123,704,118			71,964,469					258,128,942			184,445,622

All values are in US Dollars.

14 / 23

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

	Quarter Ended								Nine Month Ended
	September 30,<br><br> 2023			September 30,<br><br> 2024			September 30,<br> 2024		September 30,<br><br> 2023			September 30,<br><br> 2024			September 30,<br> 2024
	RMB			RMB			US		RMB			RMB			US
Revenues
Leased-and-operated revenues		151,839,044			118,159,125					365,402,970			346,552,738
Franchised-and-managed revenues		186,043,016			167,928,127					533,460,017			476,898,409
Others		1,168,017			796,488					3,393,596			2,881,694
Total revenues		339,050,077			286,883,740					902,256,583			826,332,841
Operating costs and expenses
Hotel operating costs		(159,920,582	)		(152,278,796	)		)		(444,284,960	)		(441,888,078	)		)
Selling and marketing expenses		(14,277,225	)		(12,899,411	)		)		(39,115,830	)		(41,576,925	)		)
General and administrative expenses		(26,655,780	)		(35,309,079	)		)		(117,191,327	)		(128,706,277	)		)
Other operating expenses		(180,515	)		(1,363,201	)		)		(1,024,079	)		(2,301,445	)		)
Other general expenses		(11,322,509	)		-					(27,296,093	)		(11,756,531	)		)
Total operating costs and expenses		(212,356,611	)		(201,850,487	)		)		(628,912,289	)		(626,229,256	)		)
Other operating income		796,141			14,496,942					14,587,926			51,347,340
Income from operations		127,489,607			99,530,195					287,932,220			251,450,925
Interest income and other, net		13,514,958			7,467,287					30,587,298			27,376,005
Interest expense		(3,004,677	)		(115,851	)		)		(10,896,629	)		(4,484,909	)		)
Gains (losses) from investment in equity securities		365,577			10,015,229					(4,434,821	)		(769,747	)		)
Other income, net		2,150,576			(34,647,093	)		)		42,846,940			(17,938,054	)		)
Income before income taxes		140,516,041			82,249,767					346,035,008			255,634,220
Income tax expense		(31,888,801	)		(24,053,937	)		)		(87,620,126	)		(76,155,862	)		)
Income (loss) before share of gains in equity investees		108,627,240			58,195,830					258,414,882			179,478,358
Share of loss/(income) in equity investees, net of tax		(83,027	)		405,064					(869,910	)		(464,693	)		)
Net income(loss)		108,544,213			58,600,894					257,544,972			179,013,665

All values are in US Dollars.

15 / 23

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

	Quarter Ended								Nine Month Ended
	September 30,<br><br> 2023			September 30, <br><br>2024			September 30, <br>2024		September 30, <br><br>2023			September 30, <br><br>2024			September 30, <br>2024
	RMB			RMB			US		RMB			RMB			US
Revenues
Leased-and-operated revenues		80,358,490			41,117,277					248,698,564			130,792,112
Franchised-and-managed revenues		4,070,541			1,757,933					7,235,800			5,527,686
Wholesales and others		37,355,462			27,766,790					97,978,792			77,272,388
Total revenues		121,784,493			70,642,000					353,913,156			213,592,186
Operating costs and expenses
Restaurant operating costs		(87,814,484	)		(53,365,650	)		)		(292,122,643	)		(170,642,273	)		)
Selling and marketing expenses		(12,026,085	)		(2,881,942	)		)		(21,411,730	)		(8,473,078	)		)
General and administrative expenses		(11,858,500	)		(7,023,449	)		)		(33,197,310	)		(22,802,128	)		)
Other operating expenses		(120,654	)		(654,777	)		)		(7,111,308	)		(2,136,726	)		)
Other general expenses		-			-					-			-
Total operating costs and expenses		(111,819,723	)		(63,925,818	)		)		(353,842,991	)		(204,054,205	)		)
Other operating income		339,881			157,126					1,219,013			2,074,964
Income from operations		10,304,651			6,873,308					1,289,178			11,612,945
Interest income and other, net		147,080			20,746					454,091			62,528
Interest expense		(735,814	)		(310	)		)		(2,240,392	)		(310	)		)
Gains (losses) from investment in equity securities		-			-					-			-
Other income, net		(370,578	)		(6,028	)		)		79,306			(33,122	)		)
Income before income taxes		9,345,339			6,887,716					(417,817	)		11,642,041
Income tax expense		(496,438	)		(276,704	)		)		(4,843,969	)		(1,356,473	)		)
Income (loss) before share of gains in equity investees		8,848,901			6,611,012					(5,261,786	)		10,285,568
Share of loss/(income) in equity investees, net of tax		-			-					-			-
Net income(loss)		8,848,901			6,611,012					(5,261,786	)		10,285,568

All values are in US Dollars.

16 / 23

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

	Quarter Ended								Nine Month Ended
	September 30,<br><br> 2023			September 30,<br><br> 2024			September 30,<br> 2024		September 30,<br><br> 2023			September 30,<br><br> 2024			September 30,<br> 2024
	RMB			RMB			US		RMB			RMB			US
Operating activities:
Net (loss) income		117,393,114			65,211,908					251,896,867			184,768,634
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		32,167,798			28,690,959					92,487,725			89,170,635
Impairment of long-lived assets		-			-					2,900,000			-
Share of (gains) losses in equity method<br> investments		83,027			(405,064	)		)		869,910			464,693
Noncash lease expense		58,627,753			68,398,682					193,450,844			205,628,129
Loss from disposal of a subsidiary		-			(4,925,221	)		)		1,223,952			(5,764,903	)		)
Interest income		(2,025,838	)		(1,199,222	)		)		(3,683,748	)		(6,416,109	)		)
Bad debt expenses		18,349,856			12,615,651					37,029,330			34,383,723
(Gains) losses and impairment on equity securities held		(365,577	)		(10,015,229	)		)		4,434,821			5,409,426
Loss (gains) on disposal of property, plant and equipment		10,173			332,997					238,014			(24,783,238	)		)
Foreign exchange (gains) losses		819,037			7,449,403					(269,162	)		(1,314,548	)		)
Share-based compensation		(11,998	)		15,662					16,594			46,986
Accounts receivable		(18,632,382	)		(5,363,153	)		)		(13,516,688	)		(13,092,304	)		)
Prepaid rent		(129,472	)		-					(129,472	)		-
Inventories		637,459			223,113					8,088,185			15,112,676
Amounts due from related parties		3,930,789			2,188,419					5,559,317			2,488,246
Other current assets		(5,238,709	)		(6,330,209	)		)		(40,136,745	)		(1,245,258	)		)
Other assets		1,942,473			(2,775,493	)		)		7,889,240			(1,474,535	)		)
Accounts payable		(19,131,574	)		(7,758,061	)		)		(29,048,734	)		(20,318,304	)		)
Amounts due to related parties		5,053,227			788,969					3,373,836			(615,685	)		)
Salary and welfare payable		(1,443,289	)		(10,164,582	)		)		5,029,575			(11,588,641	)		)
Deferred revenue		(18,693,576	)		17,893,291					(24,552,689	)		(13,809,645	)		)
Advance from customers		5,344,742			(706,088	)		)		1,686,920			(1,123,375	)		)
Accrued expenses and other current liabilities		20,585,844			35,754,773					88,392,990			32,469,157
Income tax payable		(638,107	)		20,169,690					50,644,167			11,908,367
Unrecognized tax benefits		11,569,800			(4,844,361	)		)		43,530,199			(11,040,451	)		)
Operating lease liabilities		(54,348,610	)		(80,036,795	)		)		(179,026,778	)		(189,805,890	)		)
Other long-term liabilities		(159,947	)		6,321,131					(8,241,312	)		(1,998,698	)		)
Deferred taxes		(911,201	)		7,711,357					(32,243,691	)		21,677,657
Net cash provided by operating activities		154,784,812			139,242,527					467,893,467			299,136,745
Investing activities:
Purchases of property, plant and equipment		(833,691	)		(8,771,704	)		)		(72,566,925	)		(28,965,630	)		)
Purchases of intangible assets		185,683			-					(166,598	)		-
Proceeds from disposal of property, plant and equipment		(29,960	)		451,660					14,666,721			140,184,760
Payment for acquisition of minority equity		-			966,000					-			-
Purchases of a long-term investment		-			(6,800,000	)		)		-			(6,800,000	)		)
Repayment of Advances for acquisitions		-			-					-			-
Purchases of short-term investments		(150,860,480	)		-					(202,230,480	)		-
Proceeds from short-term investments		27,211,463			-					160,854,647			419,362,037
Increase of long-term time deposits		-			-					-			(222,230,000	)		)
Proceeds from disposal of subsidiaries		-			1,307,500					37,800,000			2,807,500
Loan to related parties		-			-					-			(270,000	)		)
Loan to third parties		-			-					-			(1,200,000	)		)
Repayment of loan from third parties		135,930			304,111					14,553,007			5,900,000
Loan to fanchisees		(6,058,982	)		(4,050,000	)		)		(16,033,578	)		(5,650,000	)		)
Repayment from franchisees		35,127,246			16,489,580					96,248,818			67,466,801
Net cash (used in) provided by investing activities		(95,122,791	)		(102,853	)		)		33,125,612			370,605,468
Financing activities:
Distribution to the shareholders		-			-					-			(760,321	)		)
Repurchase of ordinary shares		-			(300,122	)		)		-			(300,122	)		)
Repayment of short-term loans		(450,600,000	)		-					(450,600,000	)		(117,000,000	)		)
Proceeds from bank loans		271,400,000			-					117,000,000			200,000,000
Capital contribution from non-controlling interest holders		(117,000,000	)		(966,000	)		)		-			(966,000	)		)
Net cash provided by (used in) financing activities		(296,200,000	)		(1,266,122	)		)		(333,600,000	)		80,973,557
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(395,858	)		142,062					(52,807	)		(2,657,865	)		)
Net (decrease) increase in cash and cash equivalents		(236,933,837	)		138,015,614					167,366,272			748,057,905
Cash and cash equivalents at the beginning of the period		1,138,929,311			1,401,643,004					734,629,202			791,600,712
Cash and cash equivalents at the end of the period		901,995,474			1,539,658,617					901,995,474			1,539,658,617

All values are in US Dollars.

17 / 23

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

	Quarter Ended					Nine Month Ended
	September 30,<br><br> 2023		September 30,<br><br> 2024		September 30,<br> 2024	September 30,<br><br> 2023		September 30,<br><br> 2024		September 30,<br> 2024
	RMB		RMB		US	RMB		RMB		US
Net income		117,393,115		65,211,908			251,896,868		184,768,634
Deduct:
Other operating income		1,136,022		14,654,068			15,806,939		53,422,304
Interest income and other, net		13,662,038		7,488,034			31,041,389		27,438,533
Gains from investment in equity securities		365,577		10,015,229			-		-
Share of gain in equity investees, net of tax		-		405,064.00			-		-
Other income, net		1,779,998		-			42,926,246		-
Add:
Other operating expenses		301,169		2,017,978			8,135,387		4,438,171
Other general expenses		11,322,509		-			27,296,093		11,756,531
Income tax expenses (benefits)		32,385,239		24,330,641			92,335,322		77,512,335
Share of loss in equity investees, net of tax		83,027		-			869,910		464,693
Interest expenses		3,740,491		116,161			13,137,021		4,485,219
Depreciation and amortization		32,167,798		28,690,959			92,487,725		89,170,635
Losses from investment in equity securities		-		-			4,434,821		5,409,426
Other expense, net		-		34,653,121			-		17,862,097
Adjusted EBITDA (Non-GAAP)		180,449,713		122,458,373			400,818,573		315,006,904

All values are in US Dollars.

18 / 23

	Quarter Ended						Nine Month Ended
	September 30,<br><br> 2023			September 30,<br><br> 2024		September 30,<br> 2024	September 30,<br><br> 2023		September 30,<br><br> 2024		September 30,<br> 2024
	RMB			RMB		US	RMB		RMB		US
Net income		117,393,115			65,211,908			251,896,868		184,768,634
Deduct:
Government subsidies (net of 25% tax)		-			4,374,750			6,671,305		4,844,636
Gains from investment in equity securities (net of 25% tax)		274,183			7,511,422			-		-
Other income (net of 25% tax)		1,334,998			-			32,194,684		-
Add:
Share-based compensation		(11,998	)		15,662			16,594		46,986
Losses from investments in equity securities (net of 25% tax)		-			-			3,326,116		4,057,070
Other expense (net of 25% tax)		-			25,989,841			-		13,396,573
One-time fees and expenses		220,916			658,981			2,181,773		1,713,989
Other general expenses		11,322,509			-			27,296,093		11,756,531
Income tax expenses related to dividend distribution		-			13,496,240			-		13,496,240
Core net income (Non-GAAP)		127,315,361			93,486,460			245,851,454		224,391,387
Core net income per ADS (Non-GAAP)
Class A ordinary share-basic and diluted		1.25			0.92			2.41		2.21
Class B ordinary share-basic and diluted		1.25			0.92			2.41		2.21

All values are in US Dollars.

19 / 23

Hotel Operational Data

	September 30,<br><br> 2023		September 30,<br><br> 2024
Total hotels in operation:		4,185		4,336
Leased and owned hotels		64		56
Franchised hotels		4,121		4,280
Total hotel rooms in operation		307,010		316,461
Leased and owned hotels		7,093		6,367
Franchised hotels		299,917		310,094
Number of cities		354		351
	Quarter Ended
---	---	---	---	---	---
	September 30,<br><br> 2023			September 30, 2024
Occupancy rate (as a percentage)
Leased-and-owned hotels		79.0	%	75.9	%
Franchised hotels		81.3	%	74.6	%
Blended		81.2	%	74.6	%
Average daily rate (in RMB)
Leased-and-owned hotels		268		258
Franchised hotels		190		179
Blended		192		181
RevPAR (in RMB)
Leased-and-owned hotels		212		196
Franchised hotels		155		133
Blended		156		135

20 / 23

	Number of Hotels in<br><br> Operation				Number of Hotel Rooms in <br><br>Operation
	September 30,<br><br> 2023		September 30,<br><br> 2024		September 30,<br><br> 2023		September 30,<br><br> 2024
Mid-to-up-scale		455		527		43,485		49,763
GreenTree Eastern		224		234		23,639		25,245
Deepsleep Hotel		7		7		534		534
Gem		61		91		5,372		8,178
Gya		71		73		5,899		6,071
Vx		92		104		8,041		9,109
Others		-		18		-		626
Mid-scale		2,965		2,965		230,655		230,580
GreenTree Inn		2,282		2,336		182,041		184,086
GT Alliance		552		498		39,379		37,366
GreenTree Apartment		20		23		1,308		1,495
Vatica		111		108		7,927		7,633
Others		-		-		-		-
Economy hotels		765		844		32,870		36,118
Shell		765		844		32,870		36,118
Others		-		-		-		-
Total		4,185		4,336		307,010		316,461

21 / 23

Restaurant Operational Data

	September 30, <br><br>2023		September 30, <br><br>2024
Total restaurants in operation:		202		182
Leased and owned restaurants		51		22
Franchised restaurants		151		160
Number of cities		66		53
Da Niang Dumplings		167		159
Bellagio		35		23
	Quarter Ended
---	---	---	---
	2023 Q3		2024 Q3
ADT
Leased-and-owned restaurants		158	188
Franchised restaurants		101	89
Blended		120	106
AC (in RMB)
Leased-and-owned restaurants		87	100
Franchised restaurants		40	33
Blended		55	46
ADS (in RMB)
Leased-and-owned restaurants		13,785	18,860
Franchised restaurants		4,015	2,950
Blended		6,570	4,891