GHG

Total revenues decreased by 18.7% year over year to RMB235.1 million (US$34.7 million)[1]. Income from operations was RMB48.2 million (US$7.1 million)[1] compared to RMB49.2 million for the second quarter of 2025. Net income was RMB21.3 million (US$3.1 million)[1] compared to RMB160.0 million for the second quarter of 2025. Core net income (non-GAAP)[3] increased 4.4% year over year to RMB47.2 million (US$7.0 million)[1] SHANGHAI, Aug. 24, 2026 /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 2026. Second Quarter of 2026 Operational Highlights Hotels A total of 4,615 hotels with 330,029 hotel rooms were in operation as of June 30, 2026. The Company opened 18 hotels in the second quarter of 2026 and had a pipeline of 1,278 hotels contracted for or under development as of June 30, 2026. The average daily room rate was RMB157, a decrease of 5.3% from RMB166 in the second quarter of 2025. The occupancy rate was 65.2%, decreased from 67.9% in the second quarter of 2025. Revenue per available room, or RevPAR, was RMB103, a 9.1% year-over-year decrease. Restaurants A total of 198 restaurants were in operation as of June 30, 2026. The AC (average check) was RMB36, a 15.5% year-over-year decrease. The ADT (average daily tickets) was 81, decreased from 85 in the second quarter of 2025. The ADS (average daily sales per store) was RMB2,893, a decrease of 20.3% from RMB3,629 in the second quarter of 2025. Second Quarter of 2026 Financial Results Total revenues were RMB235.1 million (US$34.7 million)[1], an 18.7% year-over-year decrease. Hotel revenues were RMB204.6 million (US$30.2 million)[1], a 16.2% year-over-year decrease due to a 9.1% year-over-year decrease in RevPAR and a net closure of 13 L&O hotels since the second quarter of 2025 due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB30.5 million (US$4.5 million)[1], a 33.5% year-over-year decrease, mainly due to a 20.3% decrease in ADS and a net closure of 2 L&O stores since the second quarter of 2025 due to strategic reviews, offset by revenues from new F&M store openings. Total revenues for the first six months of 2026 were RMB462.8 million (US$68.2 million)[1], a 16.5% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB95.9 million (US$14.1 million)[1], a 28.5% year-over-year decrease. Total revenues from L&O hotels were RMB77.6 million (US$11.4 million)[1], a 26.8% year-over-year decrease. The decrease was primarily attributable to a 15.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, a net closure of 13 L&O hotels since the second quarter of 2025, and the reduction in sublease revenues resulting from the closure of L&O hotels. Total revenues from L&O restaurants were RMB18.2 million (US$2.7 million)[1], a 35.7% year-over-year decrease, mainly due to a net closure of 2 L&O stores and the year-over-year decrease of 15.1% in L&O store's ADS. Total revenues from L&O hotels and restaurants for the first six months of 2026 were RMB190.4 million (US$28.1 million)[1], a 24.7% year-over-year decrease. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB126.8 million (US$18.7 million)[1], an 8.8% year-over-year decrease. Total revenues from F&M hotels were RMB126.3 million (US$18.6 million)[1], an 8.2% year-over-year decrease, primarily due to an 8.8% decrease in F&M hotels' RevPAR, an exemption of management fees for hotels facing business difficulties, and a decline of RMB3.0 million in membership revenues. For comparability, the year-over-year change is presented on a basis that applies the same fee-exemption treatment to the corresponding period of 2025. The decrease in membership revenues was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically under-performed. Total revenues from F&M restaurants were RMB0.5 million (US$74,498.4)[1], a 64.4% year-over-year decrease, mainly due to a decrease of 12.8% in the ADS of F&M stores and an exemption of management fees. Total revenues from F&M hotels and restaurants for the first six months of 2026 were RMB242.1 million (US$35.7 million)[1], an 8.5% year-over-year decrease. Total revenues from wholesale and others were RMB12.5 million (US$1.8 million)[1], a 22.9% 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 six months of 2026 were RMB30.4 million (US$4.5 million)[1], a 16.9% year-over-year decrease. Total operating costs and expenses Operating costs were RMB146.5 million (US$21.6 million)[1], a 20.0% year-over-year decrease. Operating costs of the hotel business were RMB120.6 million (US$17.8 million)[1], a 16.4% year-over-year decrease. The decrease was mainly attributable to lower staff related costs, lower depreciation and amortization, and lower rental costs caused by the net closure of 13 L&O hotels since the second quarter of 2025. Operating costs of the restaurant business in the second quarter of 2026 were RMB26.0 million (US$3.8 million)[1], a 34.4% year-over-year decrease, due to the closure of L&O stores. For the first six months of 2026, operating costs were RMB305.3 million (US$45.0 million)[1], a 17.6% decrease. Selling and marketing expenses were RMB10.2 million (US$1.5 million)[1], a 2.7% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB8.9 million (US$1.3 million)[1], a 5.6% year-over-year increase. The increase was mainly due to higher advertising and commission expenses. Selling and marketing expenses of the restaurant business were RMB1.3 million (US$0.2 million)[1], a 36.6% year-over-year decrease, mainly attributable to lower advertising expenses and lower sales-channel commissions. For the first six months of 2026, selling and marketing expenses were RMB21.6 million (US$3.2 million)[1], a 21.5% decrease. General and administrative, or G&A expenses were RMB28.1 million (US$4.1 million)[1], a 35.0% year-over-year decrease. G&A expenses of the hotel business were RMB25.1 million (US$3.7 million)[1], a 34.0% year-over-year decrease. The decrease was mainly due to lower G&A staff related expenses, lower credit losses for accounts receivable and lower consulting fees. G&A expenses of the restaurant business were RMB3.0 million (US$0.4 million)[1], a 41.6% year-over-year decrease, mainly due to lower G&A staff related expenses and lower credit losses for accounts receivable. General and administrative expenses for the first six months of 2026 were RMB55.1 million (US$8.1 million)[1], a 38.9% year-over-year decrease. Other operating expenses were RMB0.2 million (US$28,235.0)[1].Other operating expenses for the first six months of 2026 were RMB3.4 million (US$0.5 million)[1], decreased from RMB4.7 million one year ago. Other general expenses were RMB4.6 million (US$0.7 million)[1], mainly attributable to provisions for franchisee loans. Other general expenses for the first six months of 2026 were RMB9.7 million (US$1.4 million)[1], a decrease from RMB11.6 million one year ago. Gross profit was RMB88.6 million (US$13.1 million)[1], a year-over-year decrease of 16.6%. Gross margin was 37.7%, compared to 36.7% a year ago. The gross profit of the hotel business was RMB84.0 million (US$12.4 million)[1], a 15.9% year-over-year decrease. The gross profit of the restaurant business was RMB4.6 million (US$0.7 million)[1], a 27.5% year-over-year decrease. Income from operations in the second quarter of 2026 was RMB48.2 million (US$7.1 million)[1], compared to income from operations of RMB49.2 million in the second quarter of 2025, with a margin of 20.5%. The stable profitability was mainly attributable to lower operating costs and expenses, despite the decline in revenue. Income from operations of the hotel business was RMB46.7 million (US$6.9 million)[1], compared to an income from operations of RMB50.2 million in the second quarter of 2025, with a margin of 22.8%. Income from operations of the restaurant business in the second quarter of 2026 was RMB1.6 million (US$0.2 million)[1], compared to loss from operations of RMB1.0 million in the second quarter of 2025, with a margin of 5.2%. Income from operations for the first six months of 2026 was RMB76.9 million (US$11.3 million)[1] compared to income from operations of RMB60.5 million in 2025, with a margin of 16.6%. Net income in the second quarter of 2026 was RMB21.3 million (US$3.1 million)[1], compared to a net income of RMB160.0 million in the second quarter of 2025, and net margin was 9.0%. Net income of the hotel business was RMB19.7 million (US$2.9 million)[1], compared to a net income of RMB161.2 million in the second quarter of 2025, and net margin was 9.7%. Hotel net income in the second quarter of 2025 was impacted by the one-time divestment of our ownership in Argyle and fair value fluctuation in securities. Besides, hotel net income was also impacted by foreign exchange losses, bad debt expenses driven by accounts receivables, and withholding tax due to dividends distributions. Net income of the restaurant business in the second quarter of 2026 was RMB1.5 million (US$0.2 million)[1], compared to a net loss of RMB1.2 million in the second quarter of 2025, and net margin was 4.9%. Net income for the first six months of 2026 was RMB35.3 million (US$5.2 million)[1], compared to a net income of RMB167.8 million in 2025, and net margin was 7.6%. Adjusted EBITDA (non-GAAP)[2] in the second quarter of 2026 was RMB68.9 million (US$10.2 million)[1], a year-over-year decrease of 12.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 29.3%, compared to 27.1% a year ago. Adjusted EBITDA (non-GAAP)[2] for the first six months of 2026 was RMB122.1 million (US$18.0 million)[1], a year-over-year increase of 3.5%. Core net income (non-GAAP)[3] in the second quarter of 2026 was RMB47.2 million (US$7.0 million)[1], a year-over-year increase of 4.4%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 20.1%, compared to 15.6% one year ago. Core net income (non-GAAP)[3] for the first six months of 2026 was RMB71.1 million (US$10.5 million)[1], a year-over-year increase of 16.2%. Earnings per American Depositary Share, or ADS[4] (basic and diluted) were RMB0.21 (US$0.03)[1], decreased from RMB1.59 one year ago. Earnings per American Depositary Share, or ADS[4] (basic and diluted) for the first six months of 2026 were RMB0.36 (US$0.05)[1], decreased from RMB1.68 one year ago. Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.47 (US$0.07)[1], increased from RMB0.45 a year ago. Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.70 (US$0.10)[1] for the first six months of 2026, an increase from RMB0.60 a year ago. Cash Flow. Operating cash inflow in the second quarter of 2026 was RMB23.3 million (US$3.4 million)[1] as a result of income from operations. The amount decreased by RMB23.3 million compared with the second quarter of 2025, primarily due to a net decline of approximately RMB31.0 million in accounts payable to franchisees. Investing cash outflow was RMB25.0 million (US$3.7 million)[1], which was primarily due to purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews. Financing cash outflow was RMB0.2 million (US$29,476.0)[1], mainly due to repayment of bank borrowings. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2026, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,000.3 million (US$294.8 million)[1], compared to RMB2,010.2 million as of March 31, 2026. The decrease was mainly due to investment on purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews, partially offset by cash from operating activities. Guidance Based on our performance in the first half year, we maintain our previous revenue guidance for the hotel business, that we expect revenue to decrease by 10% to 15% year over year for the year of 2026. 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. Recent Development In 2025, we entered into an agreement to acquire a hotel property located opposite the Twin Towers in Malaysia for strategic purposes. This property was handed over in July 2026 and will serve as our flagship asset to scale our hotel network across Malaysia and the broader Southeast Asian market. In 2025, we entered into a letter of intent to acquire a landmark property along the Huangpu River waterfront in Yangpu District, Shanghai, and subsequently won the bid for the property through a competitive bidding process. The property is planned to be developed into the Company's signature flagship hotel in Shanghai, anchoring our mid-to-up-scale strategy at one of the city's prime riverfront locations. Beyond hotel operations, the property will feature a curated regional lifestyle center with food-and-beverage and other amenities designed to complement the hotel, enhance the guest experience and generate additional recurring revenue streams, while one floor will house the Company's corporate offices. The remaining closing procedures are expected to be completed before the end of the third quarter of 2026, subject to customary closing conditions. Share Repurchase Program The Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to US$5 million of its Class A ordinary shares over a two-year period, effective from the date of approval. Repurchases may be conducted through open market transactions at prevailing market prices, privately negotiated transactions, block trades or other legally permitted methods, at the Company's discretion, subject to market conditions, applicable securities laws and regulations, and the trading price of the Company's ADSs. The program may be suspended, modified or terminated at any time at the Board's discretion without prior notice. 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, 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 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, 2026, GreenTree had a total number of 4,615 hotels and 198 restaurants. GreenTree was the fourth largest hospitality company in China in 2025 according to the China Hospitality Association. In 2025, HOTELS magazine ranked GreenTree 12th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, mid-to-up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, 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. Financial Tables and Operational Data Follow Hotel Operational Data Restaurant Operational Data For more information, please contact: GreenTree Ms. Selina YangPhone: +86-158-2166-6251E-mail: [email protected] Ms. Hannah ZhangPhone: +86-182-2560-8592E-mail: [email protected] Christensen In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: [email protected] In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: [email protected] In the US Ms. Linda Bergkamp Phone: +1-480-614-3004E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-second-quarter-of-2026-financial-results-302858931.html

Total revenues decreased by 14.0% year over year to RMB227.7 million (US$33.0 million)[1]. Income from operations was RMB28.7 million (US$4.2 million) [1] compared to RMB11.3 million for the first quarter of 2025. Net income was RMB14.0 million (US$2.0 million)[1] compared to RMB7.8 million for the first quarter of 2025. Core net income (non-GAAP)[3] increased 31.7% year over year to RMB23.9 million (US$3.5 million)[1]. Cash from operations maintained nearly stable year over year to RMB58.1 million (US$8.4 million)[1]. SHANGHAI, June 30, 2026 /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 first quarter of 2026. First Quarter of 2026 Operational Highlights Hotels A total of 4,605 hotels with 328,646 hotel rooms were in operation as of March 31, 2026. The Company opened 43 hotels and had a pipeline of 1,268 hotels contracted for or under development as of March 31, 2026. The average daily room rate was RMB152, a decrease of 3.4% from RMB157 in the first quarter of 2025. The occupancy rate was 62.5%, decreased from 64.0% in the first quarter of 2025. Revenue per available room, or RevPAR, was RMB95, a 5.7% year-over-year decrease. Restaurants A total of 192 restaurants were in operation as of March 31, 2026 The AC (average check) was RMB45, a 7.6% year-over-year decrease. The ADT (average daily tickets) was 73, decreased from 83 in the first quarter of 2025. The ADS (average daily sales per store) was RMB3,270, a decrease of 18.8% from RMB4,029 in the first quarter of 2025. First Quarter Of 2026 Financial Results Total revenues were RMB227.7 million (US$33.0 million)[1]，a 14.0% year-over-year decrease. Hotel revenues were RMB188.7 million (US$27.4 million)[1], an 11.4% year-over-year decrease due to a 5.7% year-over-year decrease in Revpar and a net closure of 13 L&O hotels since the first quarter of 2025 due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB39.1 million (US$5.7 million)[1], a 24.6% year-over-year decrease, mainly due to an 18.8% decrease in ADS and a net closure of 3 L&O stores since the first quarter of 2025 due to strategic reviews, offset by revenues from new F&M store openings. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB94.5 million (US$13.7 million)[1], a 20.4% year-over-year decrease. Total revenues from L&O hotels were RMB74.5 million (US$10.8 million)[1], a 15.5% year-over-year decrease. The decrease was primarily attributable to an 8.2% year-over-year decrease in the first quarter RevPAR of L&O hotels, a net closure of 13 L&O hotels since the first quarter of 2025, and the reduction in sublease revenues resulting from the closure of L&O hotels. Total revenues from L&O restaurants were RMB20.0 million (US$2.9 million)[1], a 34.7% year-over-year decrease, mainly due to a net closure of 3 L&O stores and the year-over-year decrease of 18.1% in L&O store's ADS. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB115.3 million (US$16.7 million)[1], an 8.2% year-over-year decrease. Total revenues from F&M hotels were RMB113.4 million (US$16.4 million)[1], an 8.5% year-over-year decrease, primary due to a 5.6% decrease in F&M hotels' Revpar, an exemption of management fees for hotels facing business difficulties, and a decline of RMB1.5 million in membership revenues. Considering the ongoing impact from exemptions, we have assessed this impact since the first quarter of 2026 and adjusted the corresponding data of 2025 on a comparable basis. The decrease in membership revenues was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically underperformed. Total revenues from F&M restaurants were RMB1.9 million (US$0.3 million)[1], a 10.2% year-over-year increase, mainly due to an increase of 6.6% in the number of F&M stores. Total revenues from wholesale and others were RMB17.9 million (US$2.6 million)[1], a 12.2% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business. Total operating costs and expenses Operating costs were RMB158.8 million (US$23.0 million)[1], a 15.2% year-over-year decrease. Operating costs of the hotel business were RMB125.0 million (US$18.1 million)[1], a 12.4% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization, lower staff related costs, and lower rental costs caused by the net closure of 13 L&O hotels since the first quarter of 2025. Operating costs of the restaurant business in the first quarter of 2026 were RMB33.8 million (US$ 4.9 million)[1], a 24.1% year-over-year decrease, due to the closure of L&O stores. Selling and marketing expenses were RMB11.4 million (US$1.7 million)[1], a 33.0% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB9.2 million (US$1.3 million)[1], a 36.6% year-over-year decrease. The decrease was mainly due to lower staff related expenses. Selling and marketing expenses of the restaurant business were RMB2.2 million (US$0.3 million)[1], an 11.9% year-over-year decrease, mainly attributable to lower sales staff related expenses and lower sales-channel commissions. General and administrative, or G&A expenses were RMB27.0 million (US$3.9 million)[1], a 42.5% year-over-year decrease. G&A expenses of the hotel business were RMB24.1 million (US$3.5 million)[1], a 42.2% year-over-year decrease. The decrease was mainly due to lower staff G&A staff related expenses, lower credit losses for accounts receivable and lower consulting fees. G&A expenses of the restaurant business were RMB2.9 million (US$0.4 million)[1], a 44.6% year-over-year decrease, mainly due to lower G&A staff related expenses and lower credit losses for accounts receivable. Other operating expenses were RMB3.2 million (US$0.5 million)[1], mainly due to the disposal of L&O hotel assets. Other general expenses were RMB5.1 million (US$0.7 million)[1], mainly due to provisions for loan receivables related to franchisee loans. Gross profit was RMB68.9 million (US$10.0 million)[1], a year-over-year decrease of 11.1%. Gross margin was 30.3%, compared to 29.3% a year ago. The gross profit of the hotel business was RMB63.7 million (US$9.2 million)[1], a 9.3% year-over-year decrease. The gross profit of the restaurant business was RMB5.3 million (US$0.8 million)[1], a 28.2% year-over-year decrease. Income from operations in the first quarter of 2026 was RMB28.7 million (US$4.2 million)[1], compared to income from operations of RMB11.3 million in the first quarter of 2025, with a margin of 12.6%. The increased profitability was mainly attributable to lower operating costs and expenses, despite the decline in revenue. Income from operations of the hotel business was RMB28.5 million (US$4.1 million)[1], compared to an income from operations of RMB11.8 million in the first quarter of 2025, with a margin of 15.1%. Income from operations of the restaurant business in the first quarter of 2026 was RMB0.1 million (US$18.9 k)[1], compared to loss from operations of RMB0.5 million in the first quarter of 2025, with a margin of 0.3%. Net income in the first quarter of 2026 was RMB14.0 million (US$2.0 million)[1], compared to a net income of RMB7.8 million in the first quarter of 2025, and net margin was 6.2%. Net income of the hotel business was RMB14.3 million (US$2.1 million)[1], compared to a net income of RMB8.5 million in the first quarter of 2025, and net margin was 7.6%. Net loss of the restaurant business in the first quarter of 2026 was RMB0.3 million (US$46.1 k)[1], compared to a net loss of RMB0.7 million in the first quarter of 2025, and net margin was -0.8%. Adjusted EBITDA (non-GAAP)[2] in the first quarter of 2026 was RMB53.2 million (US$7.7 million)[1], a year-over-year increase of 34.3%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 23.4%, compared to 15.0% a year ago. Core net income (non-GAAP) in the first quarter of 2026 was RMB23.9 million (US$3.5 million)[1], a year-over-year increase of 31.7%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 10.5%, compared to 6.8% one year ago. Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB0.15 (US$0.02)[1], increased from RMB0.09 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.24 (US$0.03)[1], increased from RMB0.18 a year ago. Cash flow Operating cash inflow in the first quarter of 2026 was RMB58.1 million (US$8.4 million) as a result of income from operations. Investing cash outflow was RMB50.3 million (US$7.3 million)[1], which was primarily due to advance payment for the purchase of strategic assets. Financing cash inflow was RMB46.8 million (US$6.8 million)[1],mainly due to proceeds from bank borrowings for the purpose of purchase of strategic assets. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of March 31, 2026, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,010.2 million (US$291.4 million)[1],compared to RMB1,964.0 million as of December 31, 2025. The increase was mainly attributable to cash from operating activities and proceeds from bank borrowings. The bank borrowings were simultaneously paid for the purchase of strategic assets. Guidance Taking into account the strategic reviews leading to the closure of L&O hotels and the standardization process resulting in a slowdown in hotel openings, we expect the total revenues of our organic hotel business to -10% ~ -15% year over year. 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. 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. 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 March 31, 2026, GreenTree had a total number of 4,605 hotels and 192 restaurants. GreenTree was the fourth largest hospitality company in China in 2025 according to the China Hospitality Association. In 2024, HOTELS magazine ranked GreenTree 13th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. 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, and efficient system, 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. Financial Tables and Operational Data Follow 2,080,227GreenTree Hospitality Group Ltd.Unaudited Restaurant Business ResultsQuarter Ended March 31, 2025 March 31, 2026 March 31, 2026RMBRMBUS$RevenuesLeased-and-operated revenues30,668,59920,021,9762,902,577Franchised-and-managed revenues1,754,7861,933,155280,249Wholesales and others19,435,74817,125,5112,482,678Total revenues51,859,13339,080,6425,665,504Operating costs and expensesRestaurant operating costs(44,539,665)(33,824,914)(4,903,583)Selling and marketing expenses(2,501,787)(2,203,214)(319,399)General and administrative expenses(5,288,684)(2,927,781)(424,439)Other operating expenses(221,149)(33,325)(4,831)Total operating costs and expenses(52,551,285)(38,989,234)(5,652,252)Other operating income235,91739,1205,671Income from operations(456,235)130,52818,923Interest income and other, net30,2513,681534Other income, net(11,682)(48,345)(7,009)Income before income taxes(437,666)85,86412,448Income tax expense(233,333)(403,881)(58,551)Income (loss) before share of gains in equity investees(670,999)(318,017)(46,103)Net income(loss)(670,999)(318,017)(46,103) Hotel Operational Data Restaurant Operational Data For more information, please contact: GreenTree Ms. Selina YangPhone: +86-158-2166-6251E-mail: [email protected] Ms. Hannah ZhangPhone: +86-182-2560-8592E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-quarter-of-2026-financial-results-302814467.html

GreenTree Hospitality Group Ltd.'s (NYSE:GHG) robust recent earnings didn't do much to move the stock. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. For the year to December 2025, GreenTree Hospitality Group had an accrual ratio of 0.64. Ergo, its free cash flow is significantly weaker than its profit. As a general rule, that bodes poorly for future profitability. To wit, it produced free cash flow of CNﾥ21m during the period, falling well short of its reported profit of CNﾥ166.8m. GreenTree Hospitality Group shareholders will no doubt be hoping that its free cash flow bounces back next year, since it was down over the last twelve months. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. The good news for shareholders is that GreenTree Hospitality Group's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. Shareholders should look for improved cashflow relative to profit in the current year, if that is indeed the case. See our latest analysis for GreenTree Hospitality Group Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of GreenTree Hospitality Group. Unfortunately (in the short term) GreenTree Hospitality Group saw its profit reduced by unusual items worth CN¥79m. In the case where this was a non-cash charge it would have made it easier to have high cash conversion, so it's surprising that the accrual ratio tells a different story. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. GreenTree Hospitality Group took a rather significant hit from unusual items in the year to December 2025. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power. GreenTree Hospitality Group saw unusual items weigh on its profit, which should have made it easier to show high cash conversion, which it did not do, according to its accrual ratio. Given the contrasting considerations, we don't have a strong view as to whether GreenTree Hospitality Group's profits are an apt reflection of its underlying potential for profit. So while earnings quality is important, it's equally important to consider the risks facing GreenTree Hospitality Group at this point in time. Case in point: We've spotted 2 warning signs for GreenTree Hospitality Group you should be mindful of and 1 of these shouldn't be ignored. In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

SHANGHAI, April 30, 2026 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree" or the "Company"), a leading hospitality management group in China, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission ("SEC") on April 30, 2026 U.S. Eastern Time. The annual report can be accessed on the Company's investor relations website at http://ir.998.com/ as well as the SEC's website at http://www.sec.gov. The Company will provide a hard copy of its annual report containing the audited consolidated financial statements, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to the Company's IR Department at [email protected]. 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 December 31, 2025, GreenTree had a total number of 4,580 hotels and 191 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th 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 2024 according to the China Hospitality Association. 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. Or contact: GreenTree Ms. Selina Yang Phone: +86-158-2166-6251 E-mail: [email protected] Ms. Hannah Zhang Phone: +86-182-2560-8592 E-mail: [email protected] Christensen In Shanghai Mr. Jerry Xu Phone: +86-138-1680-0706 E-mail: [email protected] In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: [email protected] In the US Ms. Linda Bergkamp Phone: +1-480-614-3004 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-filed-annual-report-on-form-20-f-for-fiscal-year-2025-302759513.html

Total revenues for the fourth quarter decreased by 24.9% year over year to RMB 228.7 million (US$32.7 million)[1]. Net income was RMB-55.7million (US$-8.0 million)[1] compared to RMB-72.8 million for the fourth quarter of 2024. Core net income[4] was RMB63.2 million (US$9.0 million)[1] compared to RMB57.8 million for the fourth quarter of 2024. SHANGHAI, April 29, 2026 /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 fourth quarter and fiscal year of 2025. Fourth Quarter of 2025 Operational Highlights Hotels A total of 4,580 hotels with 327,060 hotel rooms were in operation as of December 31, 2025. The Company opened 76 hotels and had a pipeline of 1,260 hotels contracted for or under development as of December 31, 2025. The average daily room rate was RMB162, a decrease of 4.0% from RMB169 in the fourth quarter of 2024. The occupancy rate was 64.7%, down from 68.6% in the fourth quarter of 2024. Revenue per available room, or RevPAR, was RMB105, a 9.5% year-over-year decrease. Restaurants A total of 191 restaurants were in operation as of December 31, 2025. The AC (average check) was RMB38, a 17.8% year-over-year decrease. The ADT (average daily tickets) was 88, down from 93 in the fourth quarter of 2024. The ADS (average daily sales per store) was RMB3,312, a decrease of 21.8% from RMB4,234 in the fourth quarter of 2024. 2025 Financial Results Total revenue Total revenues were RMB228.7 million (US$32.7 million)[1]，a 24.9% year-over-year decrease. Hotel revenues were RMB189.9 million (US$27.2 million)[1], a 20.9% year-over-year decrease due to a 9.5% year-over-year decrease in RevPAR, the closure of 15 L&O hotels since the first quarter of 2025 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB39.1 million (US$5.6 million)[1], a 39.9% year-over-year decrease, mainly due to a 21.8% decrease in ADS and the decrease in the number of L&O stores. Total revenues for the year ended December 31, 2025 were RMB1,097.4 million (US$156.9 million)[1], an 18.3% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB106.2million (US$15.2 million)[1], a 10.9% year-over-year decrease. Total revenues from L&O hotels were RMB85.0 million (US$12.2 million)[1], a 6.6% year-over-year decrease. The decrease was primarily attributable to a 4.6% year-over-year decrease in L&O hotels' RevPAR, the closure of 15 L&O hotels since the first quarter of 2025, and the reduction in sublease income resulting from the closure of L&O hotels, offset by revenues from the opening of 5 L&O hotels during 2025. Total revenues from L&O restaurants were RMB21.2 million (US$3.0 million)[1], a 25.6 % year-over-year decrease. The decrease was mainly due to the closure of 6 L&O stores since the first quarter of 2025 and a 14.1% year-over-year decrease in L&O stores' ADS. Same L&O store revenues in the fourth quarter of 2025 decreased by 10.4% year over year. Total revenues from L&O hotels and restaurants for the year ended December 31, 2025 were RMB487.9 million (US$69.8 million)[1], an 18.2% year-over-year decrease. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB105.1 million (US$15.0 million)[1], a 31.3% year-over-year decrease. Total revenues from F&M hotels were RMB104.2 million (US$14.9 million)[1], a 29.7% year-over-year decrease, primarily attributable to a temporary waiver of RMB21.0 million of management fees for hotels facing business difficulties, and a decline of RMB6.9 million in membership revenues. The decrease was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically underperformed. Excluding these impacts, revenues from F&M hotels decreased 10.9% year over year, due to a 9.6% decrease in F&M hotels' RevPAR. Total revenues from F&M restaurants were RMB1.0 million (US$0.1 million)[1], a 79.9% year-over-year decrease. The decrease was mainly due to a 10.9% decrease in ADS. Total revenues from F&M hotels and restaurants for the year were RMB534.5million (US$76.4million)[1], a 15.9% year-over-year decrease. Total revenues from wholesale and others were RMB17.3 million (US$2.5 million)[1], a 46.4% year-over-year decrease. Total revenues from wholesale and others for the year were RMB75.0 million (US$10.7 million)[1], a 32.7% year-over-year decrease. Total operating costs and expenses Operating costs were RMB158.5 million (US$22.7 million)[1], a 20.3% year-over-year decrease. Operating costs of the hotel business were RMB123.3 million (US$17.6million)[1], an 11.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization, lower staff related costs, and lower consumable, food and beverage caused by the closing of 15 L&O hotels, partially offset by the rental increase caused by 5 new L&O hotels and the renewal of certain lease agreements. Operating costs of the restaurant business were RMB35.6million (US$5.1 million)[1], a 40.5% year-over-year decrease. The decrease was mainly due to the closure of L&O stores. For the year, operating costs were RMB714.4 million (US$102.2 million) [1], representing a 13.2% decrease. Selling and marketing expenses in the fourth quarter of 2025 was RMB13.8 million (US$2.0 million)[1], a 21.7% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB11.8 million (US$1.7 million)[1], a 12.2% year-over-year decrease. The decrease was mainly due to lower staff related costs, and lower traveling and meal expenses. Selling and marketing expenses of the restaurant business were RMB2.0 million (US$0.3 million)[1]., a 51.0% year-over-year decrease. The decrease was mainly due to lower staff related expenses, and lower sales-channel commissions. For the year, selling and marketing expenses were RMB54.8 million (US$7.8million) [1], an 18.9% decrease. General and administrative, or G&A expenses were RMB24.5 million (US$3.5 million)[1], a 43.1% year-over-year decrease. G&A expenses of the hotel business were RMB18.6 million (US$2.7 million)[1], a 53.2% year-over-year decrease. The decrease was mainly due to lower staff G&A staff related expenses, lower traveling and meal expenses, and lower consulting fees. G&A expenses of the restaurant business were RMB5.9 million (US$0.8 million)[1], a 77.3 % year-over-year increase. The increase was mainly due to higher bad debt provisions for long-aged account receivables. For the year, G&A expenses were RMB130.5 million (US$18.7 million)[1], a 28.5% year-over-year decrease. Other operating expenses were RMB40.2 million (US$5.7 million)[1], mainly due to the disposal of L&O hotel assets. For the year, other operating expenses were RMB51.7 million, (US$7.4 million)[1], increased from RMB7.1 million in 2024. Impairment loss of goodwill was RMB66.5million (US$9.5 million)[1] , a 17.9% decrease year over year. Impairment of indefinite-lived intangible asset was RMB17.3 million(US$2.5 million), a 55.6% decrease year over year. These expenses were impairment of goodwill and trademarks related to the restaurant business. Other general expenses were RMB31.8million (US$4.5 million)[1], a 5.9% year-over-year increase. These expenses include provisions for loan receivables related to franchisee loans, and impairment of assets. For the year, other general expenses were RMB82.9 million (US$11.9 million)[1]. Gross profit, defined as total revenues deducted by hotel and restaurant costs, was RMB70.1 million (US$10.0 million)[1], a year-over-year decrease of 33.6%. Gross margin was 30.7%, compared to 34.7% a year ago. The gross profit of the hotel business was RMB66.6 million (US$9.5 million)[1], a 33.6% year-over-year decrease. The gross profit of the restaurant business was RMB3.5 million (US$0.5 million)[1], a 32.8% year-over-year decrease. Gross profit for the year was RMB383.0 million (US$54.8 million) [1], a 26.5% year-over-year decrease. Income from operations was RMB-64.9 million (US$-9.3 million)[1] , compared to income from operations of RMB-95.0million in the fourth quarter of 2024, with a margin of -28.4%. The loss was due to certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, while offset by impact from disposal of L&O hotel assets. Excluding these, the adjusted income from operations decreased 8.3% year over year, mainly due to the year-over-year 9.6% decrease in Revpar. The margin for the adjusted income from operations was 24.3%, up from 19.9% one year ago, thanks to lower operating costs and expenses. Income from operations of the hotel business was RMB23.2 million (US$3.3 million)[1], compared to an income from operations of RMB26.1 million in the fourth quarter of 2024. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business decreased 2.8% year over year, and the margin for the third quarter of 2025 was 22.1%, up from 21.6% one year ago, due to lower operating costs and expenses. Loss from operations of the restaurant business was RMB88.1 million (US$12.6 million)[1], compared to loss from operations of RMB121.1 million in the fourth quarter of 2024. Excluding impairment loss of goodwill, and impairment of indefinite-lived intangible asset, loss from operations of the restaurant business was RMB4.3 million(US$0.6million) with a negative margin of 11.0%. Income from operations for the year was RMB56.7 million (US$8.1 million) [1] compared to income from operations of RMB161.9 million in 2024. Net income in the fourth quarter of 2025 was RMB-55.7million (US$-8.0 million)[1], compared to a net income of RMB-72.8 million in the fourth quarter of 2024, and net margin was -24.4%. The loss was impacted by certain one-time or non-operation impacts, including impairment loss of goodwill and trademarks related to restaurant business, provisions for loan receivables related to franchisee loans, impairment of assets, and foreign exchange losses, while offset by earnings from the disposal of investment in equity securities and disposal of L&O hotel assets. Excluding the impact of the above-mentioned items on hotels, adjusted net income [2] was RMB60.5 million, an increase of 6.7%, with a margin of 26.5%. Net income of the hotel business was RMB29.5 million (US$4.2 million)[1], compared to a net income of RMB28.4million in the fourth quarter of 2024, and net margin was15.5%. Excluding the impact of the above-mentioned items on hotels, adjusted net income[2] of the hotel business increased 63.9% to RMB61.9million (US$8.9 million)[1] with a margin of 32.6%. Net loss of the restaurant business was RMB85.2million (US$12.2million)[1], compared to a net loss of RMB101.2million in the fourth quarter of 2024. Excluding the impairment of trademarks and goodwill, adjusted net loss of the restaurant business was RMB1.4 million(US$0.2 million)[1] with a margin of -3.6%. Net income for the year was RMB163.4 million (US$23.4 million) [1] compared to net income of RMB107.3 million in 2024, with a margin of 14.9%. Adjusted EBITDA (non-GAAP)[3] in the fourth quarter of 2025 was RMB41.9 million (US$6.0 million)[1], a year-over-year decrease of 41.3%. Adjusted EBITDA[3] margin, defined as adjusted EBITDA (non-GAAP) [3] as a percentage of total revenues, was 18.3%, compared to 23.5% a year ago. Adjusted EBITDA (non-GAAP) [3] for the year was RMB286.6 million (US$41.0 million)[1], a year-over-year decrease of 25.8%. Core net income (non-GAAP) [4] in the fourth quarter of 2025 was RMB63.2 million (US$9.0 million)[1], a year-over-year increase of 9.2%. The core net margin, defined as core net income (non-GAAP) [4] as a percentage of total revenues, was 27.6%, up from 19.0% one year ago. Core net income (non-GAAP) [4] for the year was RMB211.2 million (US$30.2million)[1], a year-over-year decrease of 23.9%. Earnings per American Depositary Share, or ADS, (basic and diluted) in the fourth quarter of 2025 was RMB-0.55(US$-0.08)[1], down from RMB-0.70 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) [4] was RMB0.63 (US$0.09)[1], increase from RMB0.57 a year ago. Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)[1], as stable as one year ago. Core net income per ADS (basic and diluted) (non-GAAP) [4] for the hotel business were RMB0.63 (US$0.09)[1], increase from RMB0.45 a year ago. Earnings per ADS (basic and diluted) for the year of 2025 was RMB1.65 (US$0.24)[1] increased from RMB1.08 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) [4] was RMB2.09 (US$0.30)[1] for the year, a decrease from RMB2.73 a year ago. Cash flow Operating cash inflow in the fourth quarter of 2025 was RMB32.5 million (US$4.6 million)[1] as a result of income from operations. Investing cash inflow for the fourth quarter 2025 was RMB27.6 million (US$3.9million)[1], which was primarily attributable to proceeds from disposal of long-term investments，offset by an advance payment for the purchase of strategic assets. Financing cash outflow in the fourth quarter of 2025 was RMB43.2 million (US$6.2 million)[1], mainly attributable to dividends distributed to the shareholders. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of December 31, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB1,964.0 million (US$280.8 million)[1], compared to RMB2,014.6million as of September 30, 2025. The decrease was primarily due to dividends distributed to the shareholders, an advance payment for the purchase of strategic assets, partially offset by cash from operating activities, and disposal of investment on equity securities. Guidance Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the decline of total revenues of our organic hotel business for the full year of 2026 to be flat compared to their 2025 levels. 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. 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. 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 December 31, 2025, GreenTree had a total number of 4,580 hotels and 191 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th 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 2024 according to the China Hospitality Association. 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. Financial Tables and Operational Data Follow Hotel Operational Data Restaurant Operational Data For more information, please contact: GreenTree Ms. Selina Yang Phone: +86-158-2166-6251 E-mail: [email protected] Ms. Hannah Zhang Phone: +86-182-2560-8592 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-fourth-quarter-and-fiscal-year-2025-financial-results-302757311.html

Total revenues decreased by 15.0% year over year to RMB303.6 million (US$42.6 million)[1]. Income from operations was RMB70.1 million (US$9.8 million)[1] compared to RMB106.4 million for the third quarter of 2024. Net income was RMB60.3 million (US$8.5 million)[1] compared to RMB65.2 million for the third quarter of 2024. Adjusted EBITDA (non-GAAP) [2] decreased 6.1% year over year to RMB115.0 million (US$16.1 million)[1] Cash from operations increased 3.8% year over year to RMB144.5 million (US$20.3 million) [1] SHANGHAI, Dec. 23, 2025 /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 2025. Third Quarter of 2025 Operational Highlights Hotels A total of 4,533 hotels with 323,510 hotel rooms were in operation as of September 30, 2025. The Company opened 41 hotels and had a pipeline of 1,248 hotels contracted for or under development as of September 30, 2025. The average daily room rate was RMB173, a decrease of 4.1% from RMB181 in the third quarter of 2024. The occupancy rate was 71.3%, decreased from 74.6% in the third quarter of 2024. Revenue per available room, or RevPAR, was RMB124, an 8.4% year-over-year decrease. Restaurants A total of 185 restaurants were in operation as of September 30, 2025. The AC (average check) was RMB37, a 19.3% year-over-year decrease. The ADT (average daily tickets) was 100, down from 106 in the third quarter of 2024. The ADS (average daily sales per store) was RMB3,714, a decrease of 24.1% from RMB4,891 in the third quarter of 2024. Third Quarter of 2025 Financial Results Total revenues were RMB303.6 million (US$42.6 million)[1]，a 15.0% year-over-year decrease. Hotel revenues were RMB254.5 million (US$35.7 million)[1], a 11.3% year-over-year decrease due to an 8.4% year-over-year decrease in RevPAR and the closure of 7 L&O hotels since the fourth quarter of 2024 due to lease expirations and strategic reviews. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB49.4 million (US$6.9 million)[1], a 30.1% year-over-year decrease, mainly due to lower ADS and the decrease in the number of L&O stores. Total revenues for the first nine months of 2025 were RMB882.7 million (US$124.0 million)[1], a 15.0% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB142.1 million (US$20.0 million)[1], a 10.8% year-over-year decrease. Total revenues from L&O hotels were RMB115.6 million (US$16.2 million)[1], a 2.2% year-over-year decrease. The decrease was primarily attributable to a 7.9% year-over-year decrease in L&O hotels' RevPAR, the closure of 7 L&O hotels since the fourth quarter of 2024, offset by revenues from the opening of 4 L&O hotels since the fourth quarter of 2024. Total revenues from L&O restaurants were RMB26.5 million (US$3.7 million)[1], a 35.5% year-over-year decrease, mainly due to the closure of 8 L&O restaurants since the fourth quarter of 2024 and the year-over-year decrease in ADS. Total revenues from L&O hotels and restaurants for the first nine months of 2025 were RMB395.7 million (US$55.6 million)[1], a 17.1% year-over-year decrease. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB140.4 million (US$19.7 million)[1], a 17.2% year-over-year decrease. Total revenues from F&M hotels were RMB138.6 million (US$19.5 million)[1], a 17.5% year-over-year decrease, primarily due to a temporary waiver of RMB15 million of management fees for hotels facing business difficulties. Excluding this temporary fee waiver, revenues from F&M hotels decreased 8.6% year over year, due to an 8.3% decrease in F&M hotels' RevPAR. Total revenues from F&M restaurants were RMB1.8 million (US$0.3 million)[1], a 5.2% year-over-year increase, mainly due to the opening of 28 franchised restaurants since the fourth quarter of 2024. Total revenues from F&M hotels and restaurants for the first nine months of 2025 were RMB429.3 million (US$60.3 million)[1], a 11.0% year-over-year decrease. Total revenues from wholesale and others were RMB21.1 million (US$3.0 million)[1], a 24.7% 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 2025 were RMB57.7 million (US$8.1 million)[1], a 27.2% year-over-year decrease. Total operating costs and expenses Operating costs were RMB177.1 million (US$24.9 million)[1], a 14.9% year-over-year decrease. Operating costs of the hotel business were RMB134.3 million (US$18.9 million)[1], a 13.5% year-over-year decrease. The decrease was mainly attributable to lower rental resulting from the closure of L&O hotels. Operating costs of the restaurant business in the third quarter of 2025 were RMB43.0 million (US$6.0 million)[1], a 19.4% year-over-year decrease, due to the closure of L&O stores. For the first nine months of 2025, operating costs were RMB555.8 million (US$78.1 million)[1], a 10.4% year-over-year decrease. Selling and marketing expenses were RMB13.4 million (US$1.9 million)[1], a 14.4% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB11.3 million (US$1.6 million)[1], a 12.3% year-over-year decrease. The decrease was mainly due to lower staff related costs. Selling and marketing expenses of the restaurant business were RMB2.1 million (US$0.3 million)[1], a 26.0% year-over-year decrease, mainly attributable to lower travelling expenses and lower sales-channel commissions. For the first nine months of 2025, selling and marketing expenses were RMB41.0 million (US$5.8 million)[1], a 18.0% year-over-year decrease. General and administrative, or G&A expenses were RMB24.2 million (US$3.4 million)[1], a 38.5% year-over-year decrease. G&A expenses of the hotel business were RMB22.0 million (US$3.1 million)[1], a 31.9% year-over-year decrease. The decrease was mainly attributable to lower bad debt provisions for long-aged account receivables, lower staff related expenses, and lower consulting fees. G&A expenses of the restaurant business were RMB2.2 million (US$0.3 million)[1], a 69.0% year-over-year decrease, mainly due to lower staff related expenses, lower office expenses, and a decrease in depreciation and amortization and bad debt provisions for long-aged account receivables. General and administrative expenses for the first nine months of 2025 were RMB105.9 million (US$14.9 million)[1], a 25.7% year-over-year decrease. Other general expenses were RMB19.5 million (US$2.7 million)[1], entirely attributable to provisions for loan receivables related to franchisee loans. Other general expenses for the first nine months of 2025 were RMB31.1 million (US$4.4 million)[1], up from RMB11.8 million one year ago. Gross profit was RMB126.5 million (US$17.8 million)[1], a year-over-year decrease of 15.0%. Gross margin was 41.7%, the same as the third quarter of 2024. Gross profit of the hotel business was RMB120.1 million (US$16.9 million)[1], an 8.7% year-over-year decrease. Gross profit of the restaurant business was RMB6.4 million (US$0.9 million)[1], a 63.1% year-over-year decrease. Income from operations in the third quarter of 2025 was RMB70.1 million (US$9.8 million)[1], compared to income from operations of RMB106.4 million in the third quarter of 2024, with a margin of 23.1%. The lower profitability was due to the exemption of fees from franchisees, the loss from disposal of L&O hotels, and bad debt provisions. Excluding these, the adjusted income from operations decreased 1.9% year over year, and the margin for the third quarter of 2025 was 34.6%, up from 31.5% one year ago, thanks to lower operating costs and expenses. Income from operations of the hotel business was RMB69.1 million (US$9.7 million)[1], compared to income from operations of RMB99.5 million in the third quarter of 2024, with a margin of 27.2%. Excluding the impact of the above-mentioned items on hotels, adjusted income from operations of the hotel business increased 3.6% year over year, and the margin for the third quarter of 2025 was 40.5%, up from 36.8% one year ago, due to lower operating costs and expenses. Income from operations of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to income from operations of RMB6.9 million in the third quarter of 2024, with a margin of 1.9%. Income from operations for the first nine months of 2025 was RMB155.5 million (US$21.8 million)[1] compared to income from operations of RMB263.1 million in 2024, with a margin of 17.6%. Net income in the third quarter of 2025 was RMB60.3 million (US$8.5 million)[1], compared to a net income of RMB65.2 million in the third quarter of 2024, and net margin was 19.9%. The decrease was mainly due to the decline in income from operations, which were negatively impacted by the above-mentioned items, and foreign exchange losses. Excluding these one-time or non-operation impacts, adjusted net income was RMB90.5 million, an increase of 5.7%, with a margin of 28.4%. Net income of the hotel business was RMB59.5 million (US$8.4 million)[1], up from net income of RMB58.6 million in the third quarter of 2024, and net margin was 23.4%. Excluding the impact of the above-mentioned items, which were composed of impacts by exemption of fees from franchisees in 2025Q3, the disposal of L&O hotels, the bad debt provisions, as well as foreign exchange losses, the adjusted net income of hotel business was RMB89.6 million, an increase of 13.4% year over year, with a margin of 33.3%. Net income of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], compared to a net income of RMB6.6 million in the third quarter of 2024, and net margin was 1.8%. Net income for the first nine months of 2025 was RMB253.1 million (US$35.6 million)[1], compared to a net income of RMB184.8 million in 2024, and net margin was 28.7%. Adjusted EBITDA (non-GAAP)[2] in the third quarter of 2025 was RMB115.0 million (US$16.1 million)[1], a year-over-year decrease of 6.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)[2] as a percentage of total revenues, was 37.9%, compared to 34.3% a year ago, primarily due to lower operating costs and disciplined expense management. Adjusted EBITDA (non-GAAP)[2] of the hotel business in the third quarter of 2025 was RMB110.2 million (US$15.5 million)[1], a year-over-year decrease of 0.3%, with a margin of 43.3%, up from 38.5% one year ago. Adjusted EBITDA (non-GAAP)[2] of the restaurant business in the third quarter of 2025 was RMB4.8 million (US$0.7 million)[1], a year-over-year decrease of 52.5%. Adjusted EBITDA (non-GAAP)[2] for the first nine months of 2025 was RMB258.7 million (US$36.3 million)[1], a year-over-year decrease of 17.9%. Core net income (non-GAAP)[3] in the third quarter of 2025 was RMB78.0 million (US$11.0 million)[1], a year-over-year decrease of 16.5%. The core net margin, defined as core net income (non-GAAP)[3] as a percentage of total revenues, was 25.7%, compared to 26.2% one year ago. Core net income (non-GAAP)[3] of the hotel business in the third quarter of 2025 was RMB77.2 million (US$10.8 million)[1], a year-over-year decrease of 11.2%, with a margin of 30.3%, the same as one year ago. Core net income (non-GAAP)[3] of the restaurant business in the third quarter of 2025 was RMB0.9 million (US$0.1 million)[1], a year-over-year decrease of 86.7%. Core net income (non-GAAP)[3] for the first nine months of 2025 was RMB158.0 million (US$22.2 million)[1], a year-over-year decrease of 29.6%. Earnings per American Depositary Share, or ADS[4], (basic and diluted) were RMB0.60 (US$0.08)[1], decreased from RMB0.65 one year ago. Earnings per American Depositary Share, or ADS[4], (basic and diluted) for the first nine months of 2025 were RMB2.53 (US$0.36)[1], decreased from RMB1.83 one year ago. Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB0.77 (US$0.11)[1], decreased from RMB0.92 a year ago. Core net income per ADS[4] (basic and diluted) (non-GAAP) was RMB1.56 (US$0.22)[1] for the first nine months of 2025, a decrease from RMB2.21 a year ago. Cash flow: Operating Cash inflow was RMB144.5 million (US$20.3 million)[1], as a result of income from operations. Investing cash outflow for the third quarter of 2025 was RMB167.4 million (US$23.5 million)[1], primarily due to an advance payment for the purchase of strategic assets. Financing cash outflow was nil (US$0.0 million)[1] in the third quarter. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of September 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,014.6 million (US$283.0 million)[1],compared to RMB2,034.9 million as of June 30, 2025. The decrease of RMB20.3 million was mainly due to an advance payment for the purchase of strategic assets, and was offset by cash from operating activities. Guidance Based on our performance in the first nine months of this year and considering the impact from the closure of certain L&O hotels due to lease expirations and business strategy adjustments, we maintain our previous revenue guidance for the hotel business to be in the range of -10% to -13% year-over-year. 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. 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 September 30, 2025, GreenTree had a total number of 4,533 hotels and 185 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th 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 2024 according to the China Hospitality Association. 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, and efficient system, 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. Financial Tables and Operational Data Follow Interest income and other, net 7,467,287 9,815,879 1,378,828 27,376,005 28,318,804 3,977,919 Interest expense -115,851 -1,706,980 -239,778 -4,484,909 -5,476,179 -769,234 Gains (losses) from investment in equity securities 10,015,229 4,643,770 652,306 -769,747 29,444,565 4,136,053 Other income, net -34,647,093 -6,292,964 -883,967 -17,938,054 91,059,849 12,791,101 Income before income taxes 82,249,767 75,595,262 10,618,803 255,634,220 299,446,527 42,063,004 Income tax expense -24,053,937 -18,884,574 -2,652,700 -76,155,862 -48,735,389 -6,845,819 Income (loss) before share of gains in equity investees 58,195,830 56,710,688 7,966,103 179,478,358 250,711,138 35,217,185 Share of loss/(income) in equity investees, net of tax 405,064 2,741,144 385,046 -464,693 3,345,017 469,872 Net income(loss) 58,600,894 59,451,832 8,351,149 179,013,665 254,056,155 35,687,057 GreenTree Hospitality Group Ltd. Unaudited Restaurant Business Results Quarter Ended Nine Month Ended September 30, 2024 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 41,117,277 26,516,648 3,724,772 130,792,112 85,575,101 12,020,663 Franchised-and-managed revenues 1,757,933 1,848,818 259,702 5,527,686 5,025,292 705,898 Wholesales and others 27,766,790 21,018,623 2,952,468 77,272,388 56,530,382 7,940,776 Total revenues 70,642,000 49,384,089 6,936,942 213,592,186 147,130,775 20,667,337 Operating costs and expenses Restaurant operating costs -53,365,650 -43,015,455 -6,042,346 -170,642,273 -127,143,822 -17,859,787 Selling and marketing expenses -2,881,942 -2,133,816 -299,735 -8,473,078 -6,698,306 -940,905 General and administrative expenses -7,023,449 -2,180,546 -306,299 -22,802,128 -12,655,909 -1,777,765 Other operating expenses -654,777 -1,158,623 -162,751 -2,136,726 -1,600,920 -224,880 Total operating costs and expenses -63,925,818 -48,488,440 -6,811,131 -204,054,205 -148,098,957 -20,803,337 Other operating income 157,126 40,493 5,688 2,074,964 411,172 57,757 Income from operations 6,873,308 936,142 131,499 11,612,945 -557,010 -78,243 Interest income and other, net 20,746 34,461 4,841 62,528 94,962 13,339 Interest expense -310 -23,843 -3,349 -310 -72,559 -10,192 Other income, net -6,028 -69 -10 -33,122 -23,431 -3,291 Income before income taxes 6,887,716 946,691 132,981 11,642,041 -558,038 -78,387 Income tax expense -276,704 -65,802 -9,243 -1,356,473 -398,717 -56,007 Income (loss) before share of gains in equity investees 6,611,012 880,889 123,738 10,285,568 -956,755 -134,394 Share of loss/(income) in equity investees, net of tax Net income(loss) 6,611,012 880,889 123,738 10,285,568 -956,755 -134,394 Hotel Operational Data Restaurant Operational Data For more information, please contact: GreenTree Ms. Selina Yang Phone: +86-158-2166-6251 E-mail: [email protected] Ms. Hannah Zhang Phone: +86-182-2560-8592 E-mail: [email protected] Christensen In Shanghai Mr. Jerry Xu Phone: +86-138-1680-0706 E-mail: [email protected] In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: [email protected] In the US Ms. Linda Bergkamp Phone: +1-480-614-3004 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-third-quarter-of-2025-financial-results-302648787.html

Total revenues decreased by 14.2 % year over year to RMB 585.1 million (US$ 81 . 7 million) [1] . Income from operations was RMB 91.5 million (US$ 12.8 million) [1] compared to RMB 156 .7 million for the first half of 202 4 . Net income was RMB 198.8 million (US$ 27.7 million) [1] compared to RMB 119.6 million for the first half of 202 4 . Adjusted EBITDA (non-GAAP) [ 2 ] de creased by 22.2 % year over year to RMB 149.7 million (US$ 20.9 million) [1]。 Core net income (non-GAAP) [ 3 ] de creased by 29.6 % year over year to RMB 92.1 million (US$ 12.9 million) [1] . SHANGHAI, Sept. 30, 2025 /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 first half of 2025. First Half 2025 Operational Highlights Hotels A total of 4,509 hotels with 321,977 hotel rooms were in operation as of June 30, 2025. The Company opened 138 hotels and had a pipeline of 1,245 hotels contracted for or under development as of June 30, 2025. The average daily room rate was RMB157 in the first quarter of 2025, a decrease of 6.9% from RMB169 in the first quarter of 2024, and RMB166 in the second quarter of 2025, a 3.9% year-over-year decrease. The occupancy rate was 64.0% in the first quarter of 2025, down from 67.8% in the first quarter of 2024, and 67.9% in the second quarter of 2025, compared to 72.5% in the second quarter of 2024. Revenue per available room, or RevPAR, was RMB100 in the first quarter of 2025, a 12.1% year-over-year decrease, and RMB113 in the second quarter of 2025, a 10.0% year-over-year decrease. Restaurants A total of 183 restaurants were in operation as of June 30, 2025 The AC (average check) was RMB48 in the first quarter of 2025, a 21.5% year-over-year decrease, and RMB43 in the second quarter of 2025, a 23.8% year-over-year decrease. The ADT (average daily tickets) was 83 in the first quarter of 2025, down from 94 in the first quarter of 2024, and 85 in the second quarter of 2025, compared to 90 in the second quarter of 2024. The ADS (average daily sales per store) was RMB 4,029 in the first quarter of 2025, a decrease of 37.1% from RMB 5,525 in the first quarter of 2024, and RMB 3,629 in the second quarter of 2025, a 30.5% year-over-year decrease. First Half 202 5 Financial Results Total revenues for the first half of 2025 were RMB585.1 million (US$81.7 million)[1], a 14.2% year-over-year decrease. Hotel revenues were RMB488.0 million (US$68.1 million), a 9.5% year-over-year decrease due to an 11% year-over-year decrease in blended RevPAR across the first half year and the closure of 9 L&O hotels since the third quarter of last year. The decrease was partially offset by revenues from new openings. Restaurant revenues were RMB97.7 million (US$13.6 million), a 31.6% year-over-year decrease, mainly due to the decrease in the number of L&O stores and lower ADS in the second quarter low season. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB253.6 million (US$35.4 million)[1], a 20.3% year-over-year decrease. Total revenues from L&O hotels were RMB 194.8 million (US$27.2 million)[1], a 14.7% year-over-year decrease. The decrease was primarily attributable to the closing of 9 L&O hotels since the third quarter of last year, a 3.4% year-over-year decrease in RevPAR, and a reduction in sublease revenues mainly due to lease expiration. Total revenues from L&O restaurants were RMB59.1 million (US$8.2 million)[1], a 34.1% year-over-year decrease, mainly due to the closure of 13 L&O restaurants since the third quarter of 2024 and the year-over-year decrease in ADS. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB294.9 million (US$41.2 million), a 5.7% year-over-year decrease. Total revenues from F&M hotels were RMB291.8 million (US$40.7 million)[1], a 5.6% year-over-year decrease, primarily due to a 11% decrease in F&M hotels' blended RevPAR across the first half year and partially offset by new openings. Total revenues from F&M restaurants were RMB3.2 million (US$0.4 million)[1], a 15.7% year-over-year decrease, mainly due to the year-over-year decrease in ADS and partially offset by new openings. Total revenues from wholesale and others were RMB36.5 million (US$ 5.1 million)[1], a 28.5% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business. Total operating costs and expenses Operating costs were RMB370.3 million (US$51.7 million)[1], a 10.2% year-over-year decrease. Operating costs of the hotel business were RMB286.9 million (US$40.0 million)[1], a 0.9% year-over-year decrease. The decrease was mainly attributable to lower depreciation and amortization and lower consumable, food and beverage caused by the closing of L&O hotels, partially offset by the rental increase caused by the renewal of certain lease agreements. Operating costs of the restaurant business were RMB84.1 million (US$11.7 million)[1], a 28.3% year-over-year decrease. The decrease was mainly due to the closure of L&O stores. Selling and marketing expenses were RMB27.5 million (US$3.8 million)[1], a 19.6% year-over-year decrease. Selling and marketing expenses of the hotel business were RMB23.0 million (US$3.2 million)[1], a19.9% year-over-year decrease. The decrease was mainly due to lower advertising expenses, traveling and meal expenses. Selling and marketing expenses of the restaurant business were RMB4.6 million (US$0.6 million)[1], an 18.4% year-over-year decrease. General and administrative, or G&A expenses were RMB90.2 million (US$12.6 million)[1], a 12.6% year-over-year decrease. G&A expenses of the hotel business were RMB79.7 million (US$11.1 million)[1], a 14.7% year-over-year decrease. The decrease was mainly due to a decrease in depreciation and amortization and lower consulting fees. G&A expenses of the restaurant business were RMB10.5 million (US$1.5 million)[1], a 33.6% year-over-year decrease, mainly due to lower staff related expenses. Other general expenses of the hotel business were RMB11.6 million (US$1.6 million)[1], a 1.2% year-over-year decrease. These expenses for the first half of 2025 include only the provisions for loan receivables related to franchisee loans. Gross profit was RMB214.7 million (US$30.0 million)[1], a year-over-year decrease of 22.1%. Gross margin was 36.7%, compared to 40.4% in the first half of 2024. Gross profit of the hotel business was RMB201.1 million (US$28.1 million)[1], a 19.5% year-over-year decrease. Gross profit of the restaurant business was RMB13.6 million (US$1.9 million)[1], a 47.0% year-over-year decrease. Income from operations was RMB91.5 million (US$12.8 million)[1] , compared to RMB156.7 million in the first half of 2024, with a margin of 15.6%. Income from operations of the hotel business was RMB93.0 million (US$13.0 million)[1] , compared to income from operations of RMB151.9 million in the first half of 2024, with a margin of 19.1%. Income from operations of the hotel business in the first half of 2024 included the gain form the disposal of a property. Excluding this impact and the impact from the closing of L&O hotels, as well as the impact of bad debts, income from operations purely related to operations decreased by approximately 12.1%. Income (loss) from operations of the restaurant business in the first half of 2025 was a loss of RMB1.5 million (US$0.2 million)[1], compared to income from operations of RMB4.7 million in the first half of 2024, with a margin of -1.5%. Net income in the first half of 2025 was RMB198.8 million (US$27.7 million)[1], compared to net income of RMB119.6 million in the first half of 2024, and net margin was 34.0%. N et income of the hotel business was RMB200.6 million (US$28.0 million)[1], compared to a net income of RMB120.4 million in the first half of 2024, and net margin was 41.1%. Hotel net income was impacted by the divestment of our ownership in Argyle, the realized gain from an equity investment, foreign exchange losses, the closure of L&O hotels, and bad debt expenses driven by accounts receivables. Excluding these factors, net income decreased by almost 9.5%. Net income (loss) of the restaurant business in the first half of 2025 was a loss of RMB1.8 million (US$0.3 million)[1], compared to a net income of RMB3.7 million in the first half of 2024, and net margin was -1.9%. Adjusted EBITDA (non-GAAP) [2] was RMB149.7 million (US$20.9 million)[1], a year-over-year decrease of 22.2%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 25.6%, compared to 28.2% in the first half of 2024. Core net income (non-GAAP) was RMB92.1 million (US$12.9 million)[1], a year-over-year decrease of 29.6%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, for the first half of 2025 was 15.7%, compared to 19.2% in the first half of 2024. Earnings per American Depositary Share, or ADS, (basic and diluted) were RMB1.99 (US$0.28)[1], increased from RMB1.19 in the first half of 2024. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.91 (US$0.13)[1], decreased from RMB1.29 in the first half of 2024. Cash flow- Operating cash inflow was RMB104.8 million (US$14.6 million)[1] as a result of income from operations. Investing cash inflow for the first half of 2025 was RMB77.0 million (US$10.8 million)[1], which was primarily due to the disposal of our ownership in Argyle. Financing cash outflow was RMB0.2 million (US$0.03 million)[1], due to the repayment of bank loans by the end of June 2025. C ash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2025, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,034.9 million (US$284.1 million)[1],compared to RMB1,839.1 million as of December 31, 2024. The increase was mainly attributable to continued operating cash inflow and the divestment of our investment in Argyle. Guidance Based on our performance in the first half of 2025 and considering the impact from closure of certain L&O hotels due to lease expiration and business strategy adjustments, we adjust our previous revenue guidance for the hotel business to -10% to -13% year-over-year. Dividend distribution The board of directors has approved the payment of a cash dividend of US$0.06 per ordinary share, or US$0.06 per American Depositary Share ("ADS") payable to holders of the Company's ordinary shares shown on the Company's record at the close of trading on October 31, 2025 (the "Record Date"). 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. 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, 2025, GreenTree had a total number of 4,509 hotels and 183 restaurants. In 2024, HOTELS magazine ranked GreenTree 13th 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 2024 according to the China Hospitality Association. 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, and efficient system, 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. Financial Tables and Operational Data Follow Hotel Operational Data Restaurant Operational Data For more information, please contact: GreenTree Ms. Selina Yang Phone: +86-158-2166-6251 E-mail: [email protected] Ms. Hannah Zhang Phone: +86-182-2560-8592 E-mail: [email protected] Christensen In Shanghai Mr. Jerry Xu Phone: +86-138-1680-0706 E-mail: mailto:[email protected] In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: [email protected] In the US Ms. Linda Bergkamp Phone: +1-480-614-3004 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-first-half-2025-financial-results-302571687.html

SHANGHAI, April 30, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree" or the "Company"), a leading hospitality management group in China, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the U.S. Securities and Exchange Commission ("SEC") on April 30, 2025 U.S. Eastern Time. The annual report can be accessed on the Company's investor relations website at http://ir.998.com/ as well as the SEC's website at http://www.sec.gov. The Company will provide a hard copy of its annual report containing the audited consolidated financial statements, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to the Company's IR Department at [email protected]. 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 December 31, 2024, GreenTree had a total number of 4,425 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 2022 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. Or contact: GreenTreeMs. Selina YangPhone: +86-158-2166-6251E-mail: [email protected] Mr. Maple MiaoPhone: +86-181-0184-0639E-mail: [email protected] ChristensenIn ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: [email protected] In Hong KongMs. Karen HuiPhone: +852-9266-4140E-mail: [email protected] In the USMs. Linda BergkampPhone: +1-480-614-3004E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/greentree-filed-annual-report-on-form-20-f-for-fiscal-year-2024-302443352.html SOURCE GreenTree Hospitality Group Ltd.

Total revenues decreased by 18.2% year over year to RMB304.5 million (US$41.7 million)[1]. Net income was RMB-72.8million (US$-10.0 million)[1] compared to RMB8.6 million for the fourth quarter of 2023. Adjusted net income[2] was RMB77.3 million (US$10.6 million)[1] compared to RMB60.9 million for the fourth quarter of 2023. Cash from operations increased year over year to RMB74.2 million (US$10.2 million)[1]. SHANGHAI, April 24, 2025 /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 fourth quarter and fiscal year of 2024. As Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China, were all under the control of GreenTree Inns Hotel Management Group, Inc., until their acquisition by the Company, the acquisition was accounted for a common-control acquisition in a manner similar to the pooling -of-interests method. The consolidated balance sheets and consolidated statements of comprehensive income/(loss) include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control. In this report, the comparative financial data have been restated to reflect the business combinations under common control. Fourth Quarter of 2024 Operational Highlights Hotels  A total of 4,425 hotels with 321,282 hotel rooms were in operation as of December 31, 2024. The Company opened 143 hotels and had a pipeline of 1,214 hotels contracted for or under development as of December 31, 2024. The average daily room rate was RMB169, a decrease of 4.6% from RMB177 in the fourth quarter of 2023. The occupancy rate was 68.6%, down from 72.4% in the fourth quarter of 2023. Revenue per available room, or RevPAR, was RMB116, a 9.6% year-over-year decrease. Restaurants A total of 182 restaurants were in operation as of December 31, 2024. The AC (average check) was RMB46, a 11.0% year-over-year decrease. The ADT (average daily tickets) was 93, down from 99 in the fourth quarter of 2023. The ADS (average daily sales per store) was RMB4,234, a decrease of 16.8% from RMB5,090 in the fourth quarter of 2023.   Our performance in the fourth quarter was negatively impacted by the closure of 12 leased and managed hotels during the year, lower RevPar compared to a high base last year, and the continued optimization of our restaurant business. In our hotel business we are simultaneously accelerating the opening of new hotels, with a planned 480 in 2025, and upgrading our existing portfolio with an absolute focus on quality to ensure higher standards of products and services. We believe that the rejuvenation of our portfolio that was slowed down by the pandemic will be completed by the Summer of 2026. While Midscale remains our core segment, hotel openings in 2024 and our pipeline highlight our strategic commitment to expanding our Mid-to-upscale segment where we expect growth over the next two years to deliver significant economies of scale. Finally, we will continue the phased closure of leased and managed hotels, retaining only select flagship properties in key cities to serve as showcases of our capabilities for prospective franchisees. The strategic transformation of our restaurant business made further progress on our two priorities. At the end of the quarter, franchised and managed stores accounted for almost 90% of all stores up from 78% a year ago , and street stores that benefit from more stable consumer traffic accounted for 50% of all stores, up from 40% a year ago. Additionally, we have been rightsizing many of our stores, reflecting the new economic reality, to improve overall profitability. We believe we now have a strong foundation to build on and will grow the overall number of restaurants in 2025 with a particular focus on franchised and managed as well as street stores.   2024 Financial Results   Total revenues were RMB304.5 million (US$41.7 million)[1]，a 18.2% year-over-year decrease. Hotel revenues were RMB240.2 million (US$32.9 million)[1], a 17.1% year-over-year decrease. The decrease was mainly attributable to a 9.8% decrease in F&M hotels' Revpar and the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease. Restaurant revenues were RMB65.1 million (US$8.9 million)[1], a 25.8% year-over-year decrease. The decrease was mainly due to the closure of L&O stores, and a 16.8% decrease in ADS. Total revenues for the year were RMB1,343.4 million (US$184.1 million)[1], a 17.4% year-over-year decrease. Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB119.3 million (US$16.3 million)[1], a 31.7% year-over-year decrease. Total revenues from L&O hotels were RMB91.0 million (US$12.5 million)[1], a 27.5% year-over-year decrease. The decrease was mainly attributable to the closure of 12 L&O hotels in 2024 while revenues a year ago benefited from a one-time revenue recognition of requisitioned rooms during COVID and a one-time revenue recognition due to a successful lawsuit against sublease. Same L&O hotel revenues in the fourth quarter of 2024 decreased by 2.4% year over year. Total revenues from L&O restaurants were RMB28.5 million (US$3.9 million)[1], a 40.8 % year-over-year decrease. The decrease was mainly due to the closure of 24 L&O stores during the year and offset by 47.1% increase in ADS. Same L&O store revenues in the fourth quarter of 2024 decreased by 3.1% year over year. Total revenues from L&O hotels and restaurants for the year were RMB596.6 million (US$81.7 million)[1], a 24.3% year-over-year decrease. Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB152.9 million (US$21.0 million)[1], a 7.1% year-over-year decrease. Total revenues from F&M hotels were RMB148.2 million (US$20.3 million)[1], a 9.0% year-over-year decrease, mainly due to a 9.8% decrease in F&M hotels' Revpar. Total revenues from F&M restaurants were RMB4.8 million (US$0.7 million)[1], a 182.0% year-over-year increase. The increase was mainly due to the opening of 39 F&M restaurants during the year. Total revenues from F&M hotels and restaurants for the year were RMB635.4 million (US$87.0 million)[1], a 9.9% year-over-year decrease. Total revenues from wholesale and others were RMB32.3 million (US$4.4 million)[1], a 1.6% year-over-year decrease. Total revenues from wholesale and others for the year were RMB111.4 million (US$15.3 million)[1], a 17.0% year-over-year decrease. Total operating costs and expenses       Operating costs were RMB199.0 million (US$ 27.3 million)[1], a 6.0% year-over-year decrease. Operating costs of the hotel business were RMB139.9 million (US$19.2million)[1], a 9.5% year-over-year decrease. The decrease was mainly attributable to the closure of 12 L&O stores in 2024, which resulted in lower rental, consumable, food and beverage, and staff related costs. Operating costs of the restaurant business were RMB59.9million (US$8.2 million)[1], a 10.5% year-over-year decrease. The decrease was mainly due to the closure of 24 L&O stores. For the year, operating costs were RMB822.6 million (US$112.7 million)[1], representing an 13.2% decrease. Selling and marketing expenses were RMB17.6 million (US$2.4 million)[1], a 58.9% year-over-year increase. Selling and marketing expenses of the hotel business were RMB13.5 million (US$1.8 million)[1], a 61.7% year-over-year increase. Selling and marketing expenses of the restaurant business were RMB4.1 million (US$0.6 million)[1].. For the year, selling and marketing expenses were RMB67.6 million (US$9.3 million)[1], a 5.6% decrease. General and administrative, or G&A expenses were RMB43.0 million (US$5.9 million)[1], a 25.8% year-over-year decrease. G&A expenses of the hotel business were RMB39.7 million (US$5.4 million)[1], a 20.1% year-over-year decrease. The decrease was mainly due to lower consulting fees, lower bad debts from accounts receivables, and lower G&A staff related expenses. G&A expenses of the restaurant business were RMB3.3 million (US$0.5 million)[1], a 60.0 % year-over-year decrease. The decrease was mainly due to lower staff related expenses. For the year, G&A expenses were RMB182.6 million (US$25.0 million)[1], a 12.4% year-over-year decrease. Impairment loss of goodwill were RMB81.0million (US$11.1 million)[1], These expenses were impairment of goodwill related to the restaurant business. Other general expenses were RMB69.1million (US$9.5 million)[1], a 32.1% year-over-year increase. These expenses include impairment of trademarks related to the restaurant business, impairment of assets, and provisions for franchisee loans receivables related to franchisee loans. Gross profit was RMB105.5 million (US$14.5 million)[1], a year-over-year decrease of 34.3%. Gross margin was 34.7%, compared to 43.1% a year ago. The gross profit of the hotel business was RMB100.3 million (US$13.7 million)[1], an 25.8% year-over-year decrease. The gross profit of the restaurant business was RMB5.2 million (US$0.7 million)[1], a 75.0% year-over-year decrease. Gross profit for the year was RMB520.9 million (US$71.4 million) [1], a 23.4% year-over-year decrease. Income from operations was RMB-95.0 million (US$-13.0 million)[1] ,compared to income from operations of RMB46.9million in the fourth quarter of 2023, with a margin of -31.2%. Excluding impairment loss of goodwill and other general expenses, income from operations was RMB55.1 million(US$7.6million) with a margin of 18.1%. Income from operations of the hotel business was RMB26.1 million (US$3.6 million)[1], compared to an income from operations of RMB47.4 million in the fourth quarter of 2023, with a margin of10.9%. Excluding other general expenses, income from operations of the hotel business was RMB56.1 million (US$7.7 million), a decrease of 32.9%, with a margin of 23.4%. Loss from operations of the restaurant business was RMB121.1 million (US$16.6 million)[1], compared to loss from operations of RMB5.1 million in the fourth quarter of 2023, with a margin of -186.1%. Excluding impairment loss of goodwill and other general expenses, loss from operations of the restaurant business was RMB1.0 million(US$0.1million) with a margin of -1.5%. Income from operations for the year was RMB161.9 million (US$22.2 million) [1] compared to income from operations of RMB335.6 million in 2023, with a margin of 12.1%. Net income was RMB-72.8million (US$-10.0 million)[1], compared to a net income of RMB8.6  million in the fourth quarter of 2023, and net margin was -23.9%. Excluding impairment loss of goodwill and other general expenses, adjusted net income increased 26.8% year over year to RMB77.3 million(US$10.6 million) [1]  with a margin of 25.4%. Net income of the hotel business was RMB28.4 million (US$3.9 million)[1], compared to a net income of RMB8.1 million in the fourth quarter of 2023, and net margin was 11.8%. Excluding other general expenses, adjusted net income of the hotel business increased 31.7% to RMB58.4 million (US$8.0 million)[1] with a margin of 24.3%. Net loss of the restaurant business was RMB101.2million (US$13.9million)[1], compared to a net loss of RMB2.9million in the fourth quarter of 2023, and net margin was -155.5%. Excluding the impairment of trademarks and goodwill, adjusted net income of the restaurant business was RMB18.9 million(US$2.6 million)[1] with a margin of 29.1%. Net income for the year was RMB107.3 million (US$14.7 million)[1] compared to net income of RMB260.5 million in 2023, with a margin of 8.0%. Excluding the impairment of goodwill due to the restaurant business and other general expenses, adjusted net income decreased 20.9% to RMB269.2 million with a margin of 20.0%. Adjusted EBITDA (non-GAAP)[2] was RMB71.5 million (US$9.8 million)[1], a year-over-year  decrease of 38.3%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as a percentage of total revenues, was 23.5%, compared to 31.1% a year ago. Adjusted EBITDA (non-GAAP) for the year was RMB386.5 million (US$52.9 million)[1], a year-over-year decrease of 25.2%. Core net income (non-GAAP) was RMB57.8million (US$7.9 million)[1], a year-over-year decrease of 22.3%. The core net margin, defined as core net income (non-GAAP) as a percentage of total revenues, was 19.0%, compared to 20.0% one year ago. Core net income (non-GAAP) for the year was RMB277.6 million (US$38.0 million)[1], a year-over-year decrease of 13.3%. Earnings per American Depositary Share, or ADS, (basic and diluted) were  RMB-0.70(US$-0.10 )[1], down from RMB0.12 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB0.57 (US$0.08 )[1], down from RMB0.73 a year ago. Earnings per ADS (basic and diluted) for the hotel business were RMB 0.29 (US$0.04)[1], increaed from RMB 0.10 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) for the hotel business were RMB0.45 (US$0.06)[1]. Earnings per ADS (basic and diluted) for the year of 2024 was RMB1.08 (US$0.15)[1] down from RMB2.64 one year ago. Core net income per ADS (basic and diluted) (non-GAAP) was RMB2.73 (US$0.37)[1] for the year, a decrease from RMB3.14 a year ago. Cash flow Operating cash inflow was RMB 74.2 million (US$10.2 million)[1] as a result of income from operations. Investing cash outflow for the fourth quarter 2024 was RMB 25.2million (US$3.5million)[1], which was primarily attributable to investment of property and purchases of equipment, and was partially offset by proceeds from disposal of equity securities. Financing cash outflow was RMB 70.4 million (US$9.7 million)[1], mainly attributable to dividends distributed to the shareholders. Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. Asof December 31, 2024, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB 1,839.1 million (US$252.0 million)[1], compared to RMB1,883.9million as of September 30, 2024. The decrease was primarily due to dividends distributed to the shareholders and investment of property, partially offset by cash from operating activities. Guidance Taking into account the recovery in long-term trends and short-term industry fluctuations, we expect the decline of total revenues of our organic hotel business for the full year of 2025 to be flat compared to their 2024 levels. 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. Conference Call GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on April 24, 2025, (8:00 PM Beijing/Hong Kong Time on April 24, 2025). Dial-in numbers for the live conference call are as follows: 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 May 1, 2025. Dial-in numbers for the replay are as follows: Additionally, a live and archived webcast of this conference call will be available at http://ir.998.com. 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. 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 December 31, 2024, GreenTree had a total number of 4,425 hotels and 182 restaurants. In 2023, HOTELS magazine ranked GreenTree 12th 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 2022 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. Financial Tables and Operational Data Follow                               Hotel Operational Data     Restaurant Operational Data For more information, please contact: GreenTreeMs. Selina YangPhone: +86-158-2166-6251E-mail: [email protected] Mr. Maple MiaoPhone: +86-181-0184-0639E-mail: [email protected] Christensen In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: [email protected] In Hong Kong Ms. Karen Hui Phone: +852-9266-4140 E-mail: [email protected]  In the US Ms. Linda Bergkamp Phone: +1-480-614-3004E-mail: [email protected]  View original content:https://www.prnewswire.com/news-releases/greentree-hospitality-group-ltd-reports-fourth-quarter-and-fiscal-year-2024-financial-results-302437279.html SOURCE GreenTree Hospitality Group Ltd.

SHANGHAI, April 22, 2025 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree" or the "Company"), a leading hospitality management group in China, today announced that it will report its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on Thursday April 24, 2025. GreenTree's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on April 24, 2025 (8:00 PM Beijing/Hong Kong Time on April 24, 2025). Dial-in numbers for the live conference call are as follows: Participants should ask to join the GreenTree call. A telephone replay of the conference call will be available after the conclusion of the live conference call until May 1, 2025. Dial-in numbers for the replay are as follows: A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.998.com. About GreenTree Hospitality Group Ltd. GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality 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. GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale and up-scale segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, superior system management with modest fees, and fully supported by its operating departments including Decoration, Engineering, Purchasing, Operation, IT and Finance, GreenTree aims to keep closer relationships with all 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 GreenTreeMs. Selina YangPhone: +86-158-2166-6251E-mail: [email protected]; [email protected] Mr. Maple MiaoPhone: +86-181-0184-0639E-mail: [email protected] Christensen In ShanghaiMr. Jerry XuPhone: +86-138-1680-0706E-mail: [email protected] In Hong KongMs. Karen HuiPhone: +852-9266-4140E-mail: [email protected] In USMs. Linda BergkampPhone: +1-480-614-3004Email: [email protected]   View original content:https://www.prnewswire.com/news-releases/greentree-to-report-fourth-quarter-and-fiscal-year-2024-financial-results-on-april-24-2025-302434593.html SOURCE GreenTree Hospitality Group Ltd.