6-K - GHG - 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

August 2024

Commission File Number: 001-38425

GreenTree Hospitality Group 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: August 16, 2024

EXHIBIT INDEX

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

Exhibit 99.1

GreenTree Hospitality Group Ltd.Reports Second Quarter of 2024 Financial Results

·	Total revenues decreased by 20.5% year overyear to RMB 329.7million (US$45.4 million)^[1].^
·	Income from operations was RMB84.4 million(US$11.6 million)^[1]^ compared to RMB98.6 million for the second quarter of 2023.
---	---
·	Net income was RMB62.3 million (US$8.6 million)^[1]^compared to RMB101.9 million for the second quarter of 2023.
---	---
·	Adjusted EBITDA (non-GAAP)^[2]^ decreased34.5% year over year to RMB83.1 million (US$11.4 million)^[1]^.
---	---
·	Core net income (non-GAAP)^[3]^increased 2.4% year over year to RMB70.2million (US$9.7 million)^[1]^
---	---

SHANGHAI, August 15, 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 second quarter of 2024.

Second Quarter of 2024 Operational Highlights

Hotels

·	A<br>total of 4,272 hotels with 312,734 hotel rooms were in operation as of June 30, 2024.
·	The Company opened 44 hotels and had a pipeline<br>of 1,022 hotels contracted for or under development as of June 30, 2024.
·	The<br>average daily room rate was RMB173, a decrease of 4.3% from RMB181 in the second quarter of 2023.
·	The<br>occupancy rate was 72.5%, down from 77.8% in the second quarter of 2023.
·	Revenue<br>per available room, or RevPAR, was RMB125, a 10.8% 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 7.2672 on March 31, 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).

1 / 21

Restaurants

·	A<br>total of 183 restaurants were in operation as of June 30, 2024.
·	The AC (average check) was RMB53, a 6.0% year-over-year<br>decrease.
·	The<br>ADT (average daily tickets) was 90, down from 109 in the second quarter of 2023.
·	The<br>ADS (average daily sales per store) was RMB4,737, a decrease of 22.1% from RMB6,082 in the second quarter of 2023.

“In the second quarter, we faced challenges as China’s economy continued to recover. We believe both consumers and businesses exercised caution in discretionary spending, which had a negative impact on our overall performance. However, we continued to upgrade a number of hotels in our portfolio in order to better respond to increasing competition. While we believe this will help our performance in the future, second quarter hotel revenues decreased 14.8% year-over-year.

We continued to execute on our strategy to return our restaurant business to profitability by moving away from leased-and-operated restaurants in supermarkets and regional shopping centers towards franchised street stores. As a result, the net income turned positive this quarter after breaking even last quarter compared to losses in both corresponding quarters a year ago. Our focus is now fully on growing the number of franchised street stores and stores with stable consumer traffic,” said Mr. Alex S. Xu, Chairman and Chief Executive Office of GreenTree.

Second Quarter Of 2024 Financial Results

	Quarter Ended
	June 30,<br>2023		June 30,<br>2023		June 30,<br>2023			June 30,<br>2023
	RMB		RMB		RMB			RMB
	Hotel		Restaurant		Elimination			Total
Revenues
Leased-and-operated revenues		131,490,687		78,963,181		(565,963	)		209,887,905
Franchised-and-managed revenues		177,936,543		2,201,340		-			180,137,883
Wholesales and others		1,188,730		23,775,051		-			24,963,781
Total revenues		310,615,960		104,939,572		(565,963	)		414,989,569

2 / 21

	Quarter Ended
	June 30,<br>2024		June 30,<br>2024		June 30,<br>2024			June 30,<br>2024		June 30,2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Revenues
Leased-and-operated revenues		105,851,820		43,306,857		-			149,158,677
Franchised-and-managed revenues		157,810,770		2,234,412		-			160,045,182
Wholesales and others		940,479		19,752,299		(184,981	)		20,507,797
Total revenues		264,603,069		65,293,568		(184,981	)		329,711,656

All values are in US Dollars.

	Six Month Ended
	June 30,<br>2023		June 30,<br>2023		June 30,<br>2023			June 30,<br>2023
	RMB		RMB		RMB			RMB
	Hotel		Restaurant		Elimination			Total
Revenues
Leased-and-operated revenues		213,563,927		168,340,074		(1,125,179	)		380,778,822
Franchised-and-managed revenues		347,417,000		3,165,259		-			350,582,259
Wholesales and others		2,225,579		60,623,330		-			62,848,909
Total revenues		563,206,506		232,128,663		(1,125,179	)		794,209,990

3 / 21

	Six Month Ended
	June 30,<br>2024		June 30,<br>2024		June 30,<br>2024			June 30,<br>2024		June 30,2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Revenues
Leased-and-operated revenues		228,393,613		89,674,836		-			318,068,449
Franchised-and-managed revenues		308,970,282		3,769,753		-			312,740,035
Wholesales and others		2,085,206		49,505,598		(460,202	)		51,130,602
Total revenues		539,449,101		142,950,187		(460,202	)		681,939,086

All values are in US Dollars.

Total revenues were RMB329.7 million (US$45.4 million)^[1]^，a 20.5% year-over-year decrease.

Hotel revenues of 2024 were RMB264.6 million (US$36.4 million)^[1]^, a 14.8% year-over-year decrease. There were two major reasons: first, a 10.8% year-over-year decrease in Revpar ; second, the closure of 5 L&O hotels in the second quarter due to lease expiration and strategic decisions; and partially setoff by new openings.

Restaurant revenues were of 2024 RMB65.3 million (US$9.0 million)^[1]^, a 37.8% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores due to the closure of unprofitable L&O stores.

Total revenues for the first half of 2024 were RMB681.9 million (US$93.8 million)^[1]^, a 14.1% year-over-year decrease.

Total revenues from leased-and-operated,or L&O, hotels and restaurants were RMB149.2 million (US$20.5 million)^[1]^, a 28.9% year-over-year decrease.

Total revenues from L&O hotels were RMB105.9 million (US$14.6 million)^[1]^, a 19.5% year-over-year decrease. The decrease was primarily attributable to a 7.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, 5 L&O hotels closed and reduction of sublease revenues mainly due to the disposal of a property.

4 / 21

Total revenues from L&O restaurants were RMB43.3 million (US$6.0 million)^[1]^, a 45.2% year-over-year decrease, mainly due to the closure of 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 half of 2024 were RMB318.1 million (US$43.8 million)^[1]^, a 16.5% year-over-year decrease.

Total revenues fromfranchised-and-managed, or F&M, hotels and restaurants were RMB160.0 million (US$22.0 million)^[1]^, a 11.2% year-over-year decrease.

Total revenues from F&M hotels were RMB157.8 million (US$21.7 million)^[1]^, a 11.3% year-over-year decrease, primary due to a 10.9% decrease in F&M hotels' Revpar and remodeling.

Total revenues from F&M restaurants were RMB2.2 million (US$0.3 million)^[1]^, a 1.5% year-over-year increase, as we opened more F&M stores.

Total revenues from F&M hotels and restaurants for the first half of 2024 were RMB312.7 million (US$43.0 million)^[1]^, a 10.8% year-over-year decrease.

Total revenues fromwholesale and others were RMB17.8% 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 half of 2024 were RMB51.1 million (US$7.0 million)^[1]^, a 18.6% year-over-year decrease.

Total operating costs and expenses

	Quarter Ended
	June 30,<br>2023		June 30,<br>2023		June 30,<br>2023			June 30,<br>2023
	RMB		RMB		RMB			RMB
	Hotel		Restaurant		Elimination			Total
Operating costs and expenses
Operating costs		150,127,380		95,088,176		(308,417	)		244,907,139
Selling and marketing expenses		13,762,606		4,446,065		-			18,208,671
General and administrative expenses		44,443,478		9,675,734		-			54,119,212
Other operating expenses		692,344		5,649,391		-			6,341,735
Other general expenses		4,309,239		-		-			4,309,239
Total operating costs and expenses		213,335,047		114,859,366		(308,417	)		327,885,996

5 / 21

	Quarter Ended
	June 30,<br>2024		June 30,<br>2024			June 30,<br>2024			June 30,<br>2024		June 30,2024
	RMB		RMB			RMB			RMB		US
	Hotel		Restaurant			Elimination			Total		Total
Operating costs and expenses
Operating costs		143,382,640		55,127,026			(184,981	)		198,324,685
Selling and marketing expenses		13,222,891		2,636,823			-			15,859,714
General and administrative expenses		54,927,567		6,606,681			-			61,534,248
Other operating expenses		271,943		(60,032	)		-			211,911
Other general expenses		5,911,956		-			-			5,911,956
Total operating costs and expenses		217,716,997		64,310,498			(184,981	)		281,842,514

All values are in US Dollars.

	Six Month Ended
	June 30,<br>2023		June 30,<br>2023		June 30,<br>2023			June 30,<br>2023
	RMB		RMB		RMB			RMB
	Hotel		Restaurant		Elimination			Total
Operating costs and expenses
Operating costs		284,364,378		204,308,159		(610,088	)		488,062,449
Selling and marketing expenses		24,838,605		9,385,645		-			34,224,250
General and administrative expenses		90,535,547		21,338,810		-			111,874,357
Other operating expenses		843,564		6,990,654		-			7,834,218
Other general expenses		15,973,584		-		-			15,973,584
Total operating costs and expenses		416,555,678		242,023,268		(610,088	)		657,968,858

	Six Month Ended
	June 30,<br>2024		June 30,<br>2024		June 30,<br>2024			June 30,<br>2024		June 30,2024
	RMB		RMB		RMB			RMB		US
	Hotel		Restaurant		Elimination			Total		Total
Operating costs and expenses
Operating costs		289,609,282		117,276,623		(440,869	)		406,445,036
Selling and marketing expenses		28,677,514		5,591,136		(19,333	)		34,249,317
General and administrative expenses		93,397,198		15,778,679		-			109,175,877
Other operating expenses		938,244		1,481,949		-			2,420,193
Other general expenses		11,756,531		-		-			11,756,531
Total operating costs and expenses		424,378,769		140,128,387		(460,202	)		564,046,954

All values are in US Dollars.

6 / 21

Operating costs were RMB 198.3 million (US$27.3 million)^[1]^, a 19.0% year-over-year decrease.

Operating costs of the hotel business were RMB143.4 million (US$19.7 million)^[1]^, a 4.5% year-over-year decrease. The decrease was mainly due to the lower personnel costs, lower hotel related material consumption, and lower utilities given lower occupancy rate and the closure of L&O hotels, offset by increased rental costs and depreciation and amortization due to newly opened L&O hotels since the third quarter of 2023.

Operating costs of the restaurant business were RMB55.1million (US$7.6 million)^[1]^, a 42.0% year-over-year decrease, due to closure of L&O stores.

For the first half of 2024, operating costs were RMB406.4 million (US$55.9 million)^[1]^, representing a 16.7% decrease.

Selling and marketing expenses were RMB15.9 million (US$2.2 million)^[1]^, a 12.9% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB13.2 million (US$1.8 million)^[1]^, a 3.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses.

Selling and marketing expenses of the restaurant business were RMB2.6 million (US$0.4 million)^[1]^, a 40.7% year-over-year decrease, mainly attributable to lower sales staff related expenses.

For the first half of 2024, selling and marketing expenses were RMB34.2 million (US$4.7 million)^[1]^, a 0.1% increase.

General and administrative, or G&A expenses were RMB61.5 million (US$8.5 million)^[1]^, a 13.7% year-over-year increase.

G&A expenses of the hotel business were RMB54.9 million (US$7.6 million)^[1]^, a 23.6% year-over-year increase. The increase was mainly due to an increase in bad debt provisions for long-aged account receivables.

G&A expenses of the restaurant business were RMB6.6 million (US$0.9 million)^[1]^, a 31.7% year-over-year decrease, mainly due to lower staff related expenses.

7 / 21

General and administrative expenses for the first half of 2024 were RMB109.2 million (US$15.0 million)^[1]^, a 2.4% year-over-year decrease.

Other general expenses were RMB5.9 million (US$0.8 million)^[1]^, a 37.2% year-over-year increase. These expenses recorded provisions for loan receivables related to franchisee loans. This provision was made in consideration of the potential increase in bad debt rates for franchisees who were already overdue.

Other general expenses for the first half of 2024 were RMB11.8 million (US$1.6 million)^[1]^, a 26.4% year-over-year decrease.

Gross profit was RMB131.4 million (US$18.1 million)^[1]^, a year-over-year decrease of 22.8%. Gross margin was 39.8%, compared to 41.0% a year ago. The gross profit of the hotel business was RMB121.2 million (US$16.7 million)^[1]^, a 24.5% year-over-year decrease. The gross profit of the restaurant business was RMB10.2 million (US$1.4 million)^[1]^, a 3.2% year-over-year increase.

Income from operations was RMB84.4 million (US$11.6 million)^[1]^ , compared to income from operations of RMB98.6 million in the second quarter of 2023, with a margin of 25.6%.

Income from operations of the hotel business was RMB81.6 million (US$11.2 million)^[1]^, compared to an income from operations of RMB108.5 million in the second quarter of 2023, with a margin of 30.8%.

Income from operations of the restaurant business was RMB2.9 million (US$0.4 million)^[1]^, compared to income from operations of RMB-9.6 million in the second quarter of 2023, with a margin of 4.4%.

Income from operations for the first half of 2024 was RMB156.7 million (US$21.6 million)^[1]^ compared to income from operations of RMB150.9 million in 2023, with a margin of 23.0%.

Net income was RMB62.3million (US$8.6 million)^[1]^, compared to a net income of RMB101.9 million in the second quarter of 2023, and net margin was 18.9%.

Net income of the hotel business was RMB63.1 million (US$8.7 million)^[1]^, compared to a net income of RMB114.0 million in the second quarter of 2023, and net margin was 23.9%.

Net income of the restaurant business of 2024 was RMB3.7 million (US$0.5 million)^[1]^, compared to a net lose of RMB11.9 million in the second quarter of 2023,and net margin was 5.6%.

Net income for the first half of 2024 was RMB 119.6million (US$16.5million)^[1]^, compared to a net loss of RMB 134.5 million in 2023, and net margin was 17.5%.

8 / 21

Adjusted EBITDA (non-GAAP)^[2]^ in the second quarter of 2024 was RMB 83.1 million (US$11.4 million)^[1]^, a year-over-year decrease of 34.5%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)^[2]^ as a percentage of total revenues, was 25.2%, compared to 30.6% a year ago.

Adjusted EBITDA (non-GAAP)^[2]^ for the first half of 2024 was RMB 192.5 million (US$26.5 million)^[1]^, a year-over-year decrease of 12.6%.

Core net income (non-GAAP)^[3]^ in the second quarter of 2024 was RMB 70.2 million (US$9.7 million)^[1]^, a year-over-year increase of 2.4%. The core net margin, defined as core net income (non-GAAP)^[3]^ as a percentage of total revenues, was 21.3%, compared to 16.5% one year ago.

Core net income (non-GAAP)^[3]^ for the first half of 2024 was RMB 130.9 million (US$18.0 million)^[1]^, a year-over-year increase of 10.4%.

Earnings per American Depositary Share, orADS, (basic and diluted) were RMB0.61 (US$0.36 )^[1]^, a decrease from RMB1.01 one year ago.

Earnings per American Depositary Share, orADS, (basic and diluted) for the first half of 2024 were RMB1.19 (US$0.16 )^[1]^, a decrease from RMB1.37 one year ago.

Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.69 (US$0.10 )^[1]^, an increase from RMB0.67 a year ago.

Core net income per ADS (basic and diluted) (non-GAAP) was RMB1.29 (US$0.18)^[1]^ for the first half of 2024, an increase from RMB1.16 a year ago.

Cash flow Operating cash inflow was RMB69.2 million (US$9.5 million)^[1]^ as a result of income from operations. Investing cash inflow for the second quarter of 2024 was RMB157.6 million (US$21.7 million)^[1]^, which was primarily attributable to the gain from the disposal of a property and also benefit from repayment of loans from franchisees. Financing cash outflow was RMB1.0 million (US$0.1 million)^[1]^,mainly due to the repayment of bank loans.

**Cash and cash equivalents, restricted cash,short-term investments, investments in equity securities and time deposits.**As of June 30, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,737.2million (US$239.0 million)^[1]^,compared to RMB1,517.3 million as of March 31, 2024. The increase was mainly attributable to continued operating cash inflow, disposal of property, and repayment of loans from franchisees.

9 / 21

Guidance

Considering our performance during the first half of the year and the impact of closing certain L&O hotels due to lease expirations and strategic decisions, we have revised our revenue guidance for the hotel business. We now anticipate its performance in 2024 to remain flat compared to 2023.

The guidance set forth above reflects the Company's current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.

Dividend distribution

The board of directors has approved the payment of a cash dividend of US$0.10 per ordinary share, or US$0.10 per American Depositary Sahre(“ADS”) payable to holders of the Company’s ordinary shares shown on the Company’s record at the close of trading on September 30,2024(the “Record Date”).

Conference Call

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 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 August 22, 2024.

Dial-in numbers for the replay are as follows:

International Dial-in	1-412-317-0088
U.S. Toll Free	1-877-344-7529
Canada Toll Free	855-669-9658
Passcode:	2914023

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

10 / 21

Use of Non-GAAP Financial 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.

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.

11 / 21

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 GreenTree Hospitality Group Ltd.

GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2024, GreenTree had a total number of 4,272 hotels and 183 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.

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 Harbor Statements

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.

12 / 21

Financial Tables and Operational Data Follow

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

	December 31			June 30			June 30
	2023			2024			2024
	RMB			RMB			US
ASSETS
Current assets:
Cash and cash equivalents		765,547,547			1,374,876,965
Restricted cash		6,576,906			7,450,696
Short-term investments		417,711,617			33,612
Investments in equity securities		26,076,169			20,161,988
Accounts receivable, net of allowance		123,887,879			121,134,755
Amounts due from related parties		19,928,781			20,078,953
Prepaid rent		-			-
Inventories		20,462,490			6,309,470
Other current assets		117,047,122			121,704,746
Loans receivable, net		129,521,094			96,796,622
Deferred tax assets		-			-
Total current assets		1,626,759,605			1,768,547,807
Non-current assets:
Amounts due from a related party		110,000,000			110,000,000
Restricted cash		19,476,259			19,315,343
Long-term time deposits		63,340,000			285,700,000
Loans receivable, net		70,690,305			36,685,137
Property and equipment, net		814,949,026			669,043,887
Intangible assets, net		117,720,693			115,281,993
Goodwill		177,082,468			177,082,468
Long-term investments		184,758,800			175,521,257
Operating lease right-of-use assets		1,535,330,762			1,444,254,641
Other assets		104,725,600			103,294,642
Deferred tax assets		241,965,360			218,658,563
TOTAL ASSETS		5,066,798,878			5,123,385,738
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion		200,000			400,000
Short-term bank loans		116,800,000			-
Accounts payable		73,126,677			53,525,451
Advance from customers		22,393,097			21,975,810
Amounts due to related parties		16,310,293			14,905,639
Salary and welfare payable		86,332,096			84,908,037
Deferred rent		-			-
Deferred revenue		186,281,838			178,834,473
Accrued expenses and other current liabilities		459,832,717			466,056,353
Income tax payable		112,782,712			104,521,389
Dividends payable		-			-
Operating lease liabilities, current		267,536,846			263,079,422
Deferred tax liabilities		-			-
Total current liabilities		1,341,596,276			1,188,206,574
Long-term bank loans		56,800,000			256,400,000
Deferred rent		-			-
Deferred revenue		207,905,769			183,650,198
Other long-term liabilities		111,711,748			111,391,913
Operating lease liabilities, non-current		1,391,909,309			1,332,750,964
Deferred tax liabilities		94,716,495			85,375,998
Unrecognized tax benefits		382,125,786			375,929,696
TOTAL LIABILITIES		3,586,765,383			3,533,705,343
Shareholders’ equity:
Class A ordinary shares		222,587,070			222,587,070
Class B ordinary shares		115,534,210			115,534,210
Paid-in capital		-			-
Treasury Stock		(36,677,832	)		(36,677,832	)		)
Additional paid-in capital		1,680,713,349			1,680,178,673
Retained earnings (Accumulated losses)		(568,339,799	)		(447,752,894	)		)
Accumulated other comprehensive income		28,401,282			20,295,531
Total GreenTree Hospitality Group Ltd. shareholders’ equity		1,442,218,280			1,554,164,758
Non-controlling interests		37,815,215			35,515,637
Total shareholders’ equity		1,480,033,495			1,589,680,395
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		5,066,798,878			5,123,385,738

All values are in US Dollars.

13 / 21

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

	Quarter Ended								Six Month Ended
	June 30,<br>2023			June 30,<br>2024			June 30,2024		June 30,<br>2023			June 30,<br>2024			June 30,2024
	RMB			RMB			US		RMB			RMB			US
Revenues
Leased-and-operated revenues		209,887,905			149,158,677					380,778,822			318,068,449
Franchised-and-managed revenues		180,137,883			160,045,182					350,582,259			312,740,035
Wholesales and others		24,963,781			20,507,797					62,848,909			51,130,602
Total revenues		414,989,569			329,711,656					794,209,990			681,939,086
Operating costs and expenses
Operating costs		(244,907,139	)		(198,324,685	)		)		(488,062,449	)		(406,445,036	)		)
Selling and marketing expenses		(18,208,671	)		(15,859,714	)		)		(34,224,250	)		(34,249,317	)		)
General and administrative expenses		(54,119,212	)		(61,534,248	)		)		(111,874,357	)		(109,175,877	)		)
Other operating expenses		(6,341,735	)		(211,911	)		)		(7,834,218	)		(2,420,193	)		)
Other general expenses		(4,309,239	)		(5,911,956	)		)		(15,973,584	)		(11,756,531	)		)
Total operating costs and expenses		(327,885,996	)		(281,842,514	)		)		(657,968,858	)		(564,046,954	)		)
Other operating income		11,511,398			36,542,303					14,670,917			38,768,236
Income from operations		98,614,971			84,411,445					150,912,049			156,660,368
Interest income and other, net		9,750,337			11,003,960					17,379,351			19,950,499
Interest expense		(3,868,469	)		(2,629,228	)		)		(9,396,530	)		(4,369,057	)		)
Gains (losses) from investment in equity securities		(263,836	)		(6,172,071	)		)		(4,800,398	)		(15,424,655	)		)
Other income, net		43,295,830			3,556,454					41,146,248			16,791,024
Income before income taxes		147,528,833			90,170,560					195,240,720			173,608,179
Income tax expense		(45,241,208	)		(26,733,733	)		)		(59,950,083	)		(53,181,694	)		)
Income (loss) before share of gains in equity investees		102,287,625			63,436,827					135,290,637			120,426,485
Share of loss/(income) in equity investees, net of tax		(341,265	)		(1,174,966	)		)		(786,883	)		(869,757	)		)
Net income(loss)		101,946,360			62,261,861					134,503,754			119,556,728
Net loss/(income) attributable to non-controlling interests		1,308,704			(571,587	)		)		5,077,298			1,030,179
Net income attributable to ordinary shareholders		103,255,064			61,690,274					139,581,052			120,586,907
Net earnings per share
Class A ordinary share-basic and diluted		1.01			0.61					1.37			1.19
Class B ordinary share-basic and diluted		1.01			0.61					1.37			1.19
Net earnings per ADS
Class A ordinary share-basic and diluted		1.01			0.61					1.37			1.19
Class B ordinary share-basic and diluted		1.01			0.61					1.37			1.19
Weighted average shares outstanding
Class A ordinary share-basic and diluted		67,416,046			66,780,612					67,416,046			66,780,612
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		185,533			(487,856	)		)		996,107			(8,105,751	)		)
Unrealized gains(loss) on available-for-sale investments, net of tax
Comprehensive income, net of tax		102,131,893			61,774,005					135,499,861			111,450,977
Comprehensive loss/(income) attributable to non-controlling interests		(4,843,631	)		(571,587	)		)		(1,075,037	)		1,030,179
Comprehensive income (loss) attributable to ordinary shareholders		97,288,262			61,202,418					134,424,824			112,481,156

All values are in US Dollars.

14 / 21

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

	Quarter Ended								Six Month Ended
	June 30,<br>2023			June 30,<br>2024			June 30,2024		June 30,<br>2023			June 30,<br>2024			June 30,2024
	RMB			RMB			US		RMB			RMB			US
Revenues
Leased-and-operated revenues		131,490,687			105,851,820					213,563,927			228,393,613
Franchised-and-managed revenues		177,936,543			157,810,770					347,417,000			308,970,282
Others		1,188,730			940,479					2,225,579			2,085,206
Total revenues		310,615,960			264,603,069					563,206,506			539,449,101
Operating costs and expenses
Hotel operating costs		(150,127,380	)		(143,382,640	)		)		(284,364,378	)		(289,609,282	)		)
Selling and marketing expenses		(13,762,606	)		(13,222,891	)		)		(24,838,605	)		(28,677,514	)		)
General and administrative expenses		(44,443,478	)		(54,927,567	)		)		(90,535,547	)		(93,397,198	)		)
Other operating expenses		(692,344	)		(271,943	)		)		(843,564	)		(938,244	)		)
Other general expenses		(4,309,239	)		(5,911,956	)		)		(15,973,584	)		(11,756,531	)		)
Total operating costs and expenses		(213,335,047	)		(217,716,997	)		)		(416,555,678	)		(424,378,769	)		)
Other operating income		11,183,689			34,667,783					13,791,785			36,850,398
Income from operations		108,464,602			81,553,855					160,442,613			151,920,730
Interest income and other, net		9,597,042			10,978,362					17,072,340			19,908,718
Interest expense		(3,167,262	)		(2,628,376	)		)		(7,891,952	)		(4,369,058	)		)
Gains (losses) from investment in equity securities		(263,836	)		(1,474,720	)		)		(4,800,398	)		(10,784,976	)		)
Other income, net		43,122,904			3,404,139					40,696,364			16,709,039
Income before income taxes		157,753,450			91,833,260					205,518,967			173,384,453
Income tax expense		(43,365,471	)		(27,545,004	)		)		(55,731,325	)		(52,101,925	)		)
Income (loss) before share of gains in equity investees		114,387,979			64,288,256					149,787,642			121,282,528
Share of loss/(income) in equity investees, net of tax		(341,265	)		(1,174,966	)		)		(786,883	)		(869,757	)		)
Net income(loss)		114,046,714			63,113,290					149,000,759			120,412,771

All values are in US Dollars.

15 / 21

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

	Quarter Ended								Six Month Ended
	June 30,<br>2023			June 30,<br>2024			June 30,2024		June 30,<br>2023			June 30,<br>2024			June 30,2024
	RMB			RMB			US		RMB			RMB			US
Revenues
Leased-and-operated revenues		78,963,181			43,306,857					168,340,074			89,674,836
Franchised-and-managed revenues		2,201,340			2,234,412					3,165,259			3,769,753
Wholesales and others		23,775,051			19,752,299					60,623,330			49,505,598
Total revenues		104,939,572			65,293,568					232,128,663			142,950,187
Operating costs and expenses
Restaurant operating costs		(95,088,176	)		(55,127,026	)		)		(204,308,159	)		(117,276,623	)		)
Selling and marketing expenses		(4,446,065	)		(2,636,823	)		)		(9,385,645	)		(5,591,136	)		)
General and administrative expenses		(9,675,734	)		(6,606,681	)		)		(21,338,810	)		(15,778,679	)		)
Other operating expenses		(5,649,391	)		60,032					(6,990,654	)		(1,481,949	)		)
Other general expenses		-			-					-			-
Total operating costs and expenses		(114,859,366	)		(64,310,498	)		)		(242,023,268	)		(140,128,387	)		)
Other operating income		327,709			1,874,520					879,132			1,917,838
Income from operations		(9,592,085	)		2,857,590					(9,015,473	)		4,739,638
Interest income and other, net		153,295			25,599					307,011			41,782
Interest expense		(701,207	)		(853	)		)		(1,504,578	)		-
Gains (losses) from investment in equity securities		-			(57,672	)		)		-			-
Other income, net		172,926			43,236					449,884			(27,094	)		)
Income before income taxes		(9,967,071	)		2,867,900					(9,763,156	)		4,754,326
Income tax expense		(1,940,124	)		811,271					(4,347,531	)		(1,079,769	)		)
Income (loss) before share of gains in equity investees		(11,907,195	)		3,679,171					(14,110,687	)		3,674,557
Share of loss/(income) in equity investees, net of tax		-			-					-			-
Net income(loss)		(11,907,195	)		3,679,171					(14,110,687	)		3,674,557

All values are in US Dollars.

16 / 21

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

	Quarter Ended								Six Month Ended
	June 30,<br>2023			June 30,<br>2024			June 30,2024		June 30,<br>2023			June 30,<br>2024			June 30,2024
	RMB			RMB			US		RMB			RMB			US
Operating activities:
Net (loss) income		101,946,360			62,261,861					134,503,754			119,556,728
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		28,982,289			29,137,972					60,319,927			60,479,676
Impairment of long-lived assets		-			-					2,900,000			-
Share of （income）loss in equity method investments		341,265			1,174,966					786,883			869,757
Noncash lease expense		70,769,259			72,411,404					134,823,091			137,229,448
Loss from disposal of a subsidiary		-			(839,682	)		)		1,223,952			(839,682	)		)
Interest income		(1,267,532	)		(5,216,887	)		)		(1,657,910	)		(5,216,887	)		)
Bad debt expenses		6,320,196			16,294,501					18,679,474			21,768,072
(Gains) losses and impairment on equity securities held		263,836			6,172,071					4,800,398			15,424,655
Loss (gains) on disposal of property, plant and equipment		341,428			(27,468,283	)		)		227,841			(25,116,235	)		)
Foreign exchange （gains）losses		(2,075,742	)		(675,522	)		)		(1,088,199	)		(8,763,951	)		)
Share-based compensation		40,228			15,662					28,592			31,324
Common control acqisition		-			-					-			-
Accounts receivable		12,166,576			(9,573,578	)		)		5,115,694			(7,729,151	)		)
Inventories		6,481,086			2,827,794					7,450,726			14,889,563
Amounts due from related parties		2,589,713			697,431					1,628,528			299,828
Other current assets		(27,171,354	)		10,574,968					(34,898,036	)		5,084,951
Other assets		982,532			3,957,871					5,946,767			1,300,958
Accounts payable		(14,607,485	)		(3,702,034	)		)		(9,917,160	)		(12,560,243	)		)
Amounts due to related parties		(47,036	)		471,776					(1,679,391	)		(1,404,655	)		)
Salary and welfare payable		1,978,299			2,882,934					6,472,864			(1,424,059	)		)
Deferred revenue		(1,377,240	)		(24,826,323	)		)		(5,859,113	)		(31,702,936	)		)
Advance from customers		(7,260,648	)		3,539,512					(3,657,822	)		(417,287	)		)
Accrued expenses and other current liabilities		(8,464,829	)		20,530,026					67,807,146			(3,285,616	)		)
Income tax payable		32,970,813			(16,508,534	)		)		51,282,274			(8,261,323	)		)
Unrecognized tax benefits		16,935,503			(13,752,067	)		)		31,960,399			(6,196,090	)		)
Operating lease liabilities		(68,614,626	)		(67,855,157	)		)		(124,678,168	)		(109,769,095	)		)
Other long-term liabilities		(1,510,480	)		(7,223,642	)		)		(8,081,365	)		(8,319,829	)		)
Deferred taxes		(3,137,502	)		13,855,962					(31,332,490	)		13,966,300
Net cash provided by operating activities		147,574,909			69,165,002					313,108,656			159,894,221
Investing activities:
Purchases of property, plant and equipment		(37,617,117	)		(9,639,401	)		)		(71,733,234	)		(20,193,926	)		)
Purchases of intangible assets		(309,827	)		-					(352,281	)		-
Proceeds from disposal of property, plant and equipment		7,723,107			138,000,000					14,696,681			139,733,100
Payment for acquisition of minority equity		-			(966,000	)		)		-			(966,000	)		)
Purchases of short-term investments		(51,370,000	)							(51,370,000	)
Proceeds from short-term investments		42,242,806			-					133,643,184			419,362,037
Increase of long-term time deposits		-			(222,230,000	)		)		-			(222,230,000	)		)
Purchases of long-term investments		-			222,230,000					-			-
Proceeds from disposal of equity securities		-			-					-			-
Proceeds from disposal of a subsidiary		18,900,000			1,500,000					37,800,000			1,500,000
Loan to related parties		-			(270,000	)		)		-			(270,000	)		)
Repayment from related parties		-			-					-			-
Loan to third parties		1,000,000			(1,200,000	)		)		-			(1,200,000	)		)
Repayment of loan from third parties		13,948,758			4,223,936					14,417,077			5,595,889
Loan to fanchisees		(2,945,000	)		(1,600,000	)		)		(9,974,596	)		(1,600,000	)		)
Repayment from franchisees		34,286,988			27,516,214					61,121,572			50,977,221
Net cash (used in) provided by investing activities		25,859,715			157,564,749					128,248,403			370,708,321
Financing activities:
Distribution to the shareholders		-			(760,321	)		)		-			(760,321	)		)
Repayment of bank loans		136,600,000			(200,000	)		)		-			(117,000,000	)		)
Proceeds from bank loans		(271,400,000	)		-					(154,400,000	)		200,000,000
Capital contribution from non-controlling interest holders		117,000,000			-					117,000,000			-
Net cash provided by (used in) financing activities		(17,800,000	)		(960,321	)		)		(37,400,000	)		82,239,679
Effect of exchange rate changes on cash and cash equivalents and restricted cash		383,577			(149,700	)		)		343,051			(2,799,929	)		)
Net (decrease) increase in cash and cash equivalents		156,018,201			225,619,730					404,300,110			610,042,292
Cash and cash equivalents at the beginning of the period		982,911,111			1,176,023,274					734,629,202			791,600,712
Cash and cash equivalents at the end of the period		1,138,929,312			1,401,643,004					1,138,929,312			1,401,643,004

All values are in US Dollars.

17 / 21

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

	Quarter Ended					Six Month Ended
	June 30,<br>2023		June 30,<br>2024		June 30,2024	June 30,<br>2023		June 30,<br>2024		June 30,2024
	RMB		RMB		US	RMB		RMB		US
Net income		101,946,360		62,261,861			134,503,754		119,556,728
Deduct:
Other operating income		11,511,398		36,542,303			14,670,917		38,768,236
Interest income and other, net		9,750,337		11,003,960			17,379,351		19,950,499
Share of gain in equity investees, net of tax		-		-			-		-
Other income, net		43,295,830		3,556,454			41,146,248		16,791,024
Add:
Other operating expenses		6,341,735		211,911			7,834,218		2,420,193
Other general expenses		4,309,239		5,911,956			15,973,584		11,756,531
Income tax expenses (benefits)		45,241,208		26,733,733			59,950,083		53,181,694
Share of loss in equity investees, net of tax		341,265		1,174,966			786,883		869,757
Interest expenses		3,868,469		2,629,228			9,396,530		4,369,057
Depreciation and amortization		29,239,835		29,137,972			60,319,927		60,479,676
Losses from investment in equity securities		263,836		6,172,071			4,800,398		15,424,655
Other expense, net		-		-			-		-
Adjusted EBITDA (Non-GAAP)		126,994,382		83,130,981			220,368,861		192,548,532

All values are in US Dollars.

	Quarter Ended						Six Month Ended
	June 30,<br>2023			June 30,<br>2024		June 30,2024	June 30,<br>2023		June 30,<br>2024		June 30,2024
	RMB			RMB		US	RMB		RMB		US
Net income		101,946,360			62,261,861			134,503,754		119,556,728
Deduct:
Government subsidies (net of 25% tax)		6,275,245			210,000			6,671,305		469,886
Gains from investment in equity securities (net of 25% tax)		-			-			-		-
Other income (net of 25% tax)		30,859,686			2,667,340			30,859,686		12,593,268
Add:
Share-based compensation		40,228			15,662			28,592		31,324
Losses from investments in equity securities (net of 25% tax)		197,877			4,629,053			3,600,299		11,568,491
Other expense (net of 25% tax)		(1,612,187	)		-			-		-
One-time fees and expenses		813,078			239,820			1,960,856		1,055,008
Other general expenses		4,309,239			5,911,956			15,973,584		11,756,531
Core net income (Non-GAAP)		68,559,664			70,181,012			118,536,094		130,904,928
Core net income per ADS (Non-GAAP)
Class A ordinary share-basic and diluted		0.67			0.69			1.16		1.29
Class B ordinary share-basic and diluted		0.67			0.69			1.16		1.29

All values are in US Dollars.

18 / 21

Hotel Operational Data

	June 30,<br><br>2023		June 30,<br><br>2024
Total hotels in operation:		4,108		4,272
Leased and owned hotels		65		62
Franchised hotels		4,043		4,210
Total hotel rooms in operation		303,387		312,734
Leased and owned hotels		7,137		6,937
Franchised hotels		296,250		305,797
Number of cities		357		353
	Quarter Ended
---	---	---	---	---	---	---
	2023 Q2			2024 Q2
Occupancy rate (as a percentage)
Leased-and-owned hotels		74.6	%		70.7	%
Franchised hotels		77.9	%		72.6	%
Blended		77.8	%		72.5	%
Average daily rate (in RMB)
Leased-and-owned hotels		255			250
Franchised hotels		179			171
Blended		181			173
RevPAR (in RMB)
Leased-and-owned hotels		191			177
Franchised hotels		139			124
Blended		141			125

	Number of Hotels in Operation				Number of Hotel Rooms in Operation
	June 30,<br>2023		June 30,<br>2024		June 30,<br>2023		June 30,<br>2024
Mid-to-up-scale		438		505		42,338		47,697
GreenTree Eastern		217		227		23,205		24,493
Deepsleep Hotel		7		7		534		534
Gem		54		82		4,873		7,258
Gya		70		75		5,904		6,238
Vx		90		99		7,822		8,695
Others		-		15		-		499
Mid-scale		2,933		2,948		229,270		229,970
GreenTree Inn		2,259		2,315		181,015		182,957
GT Alliance		545		503		39,091		37,923
GreenTree Apartment		21		21		1,351		1,385
Vatica		108		109		7,813		7,705
City 118 Selected and others		-		-		-		-
Economy hotels		737		819		31,779		35,067
Shell		737		819		31,779		35,067
City 118 and others		-		-		-		-
Total		4,108		4,272		303,387		312,734

19 / 21

Restaurant Operational Data

	June 30,<br>2023		June 30,<br>2024
Total restaurants in operation:		206		183
Leased and owned restaurants		57		24
Franchised restaurants		149		159
Number of cities		66		57
Da Niang Dumplings		170		155
Bellagio		36		28
	Quarter Ended
---	---	---	---	---
	2023 Q2		2024 Q2
ADT
Leased-and-owned restaurants		148		165
Franchised restaurants		88		73
Blended		109		90
AC (in RMB)
Leased-and-owned restaurants		84		105
Franchised restaurants		41		38
Blended		56		53
ADS (in RMB)
Leased-and-owned restaurants		12,456		17,306
Franchised restaurants		3575		2,815
Blended		6,082		4,737