GreenTree Hospitality Group Ltd. Reports Second Quarter of 2026 Financial Results

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

Restaurants

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of 6.7851 on June 30, 2026 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260706/. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate or at any other rate.

[2] Adjusted EBITDA (non-GAAP) is calculated as net income plus other operating expenses, income tax expense, share of loss in equity investees, net of tax, interest expense, depreciation and amortization, losses from investment in equity securities, other general expenses, and other expense, net, but excludes other operating income, interest income and other, net, gains from investment in equity securities, share of gains in equity investees (net of tax), and other income, net. The calculation of Adjusted EBITDA (non-GAAP) included in this report has been aligned according to the above mentioned definition.

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

[4] Each ADS represents one ordinary share.

Second Quarter of 2026 Financial Results

Quarter Ended

June

30, 2025

June

30, 2025

June

30, 2025

June

30, 2025

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

105,970,283

28,389,854

(207,413)

134,152,724

Franchised-and-managed revenues

137,496,914

1,421,688

138,918,602

Wholesales and others

561,244

16,076,011

(443,807)

16,193,448

Total revenues

244,028,441

45,887,553

(651,220)

289,264,774

Quarter Ended

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

RMB

US$

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

77,613,926

18,246,301

95,860,227

14,128,049

Franchised-and-managed revenues

126,253,871

505,479

126,759,350

18,682,016

Wholesales and others

717,195

11,771,620

12,488,815

1,840,624

Total revenues

204,584,992

30,523,400

235,108,392

34,650,689

Six Months Ended

June

30, 2025

June

30, 2025

June

30, 2025

June

30, 2025

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

194,165,718

59,058,453

(207,413)

253,016,758

Franchised-and-managed revenues

261,353,522

3,176,474

264,529,996

Wholesales and others

1,478,298

35,511,759

(443,807)

36,546,250

Total revenues

456,997,538

97,746,686

(651,220)

554,093,004

Six Months Ended

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

RMB

US$

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

152,151,688

38,268,277

190,419,965

28,064,430

Franchised-and-managed revenues

239,620,481

2,438,634

242,059,115

35,675,099

Wholesales and others

1,508,083

28,897,131

(39,176)

30,366,038

4,475,400

Total revenues

393,280,252

69,604,042

(39,176)

462,845,118

68,214,929

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

Quarter Ended

June

30, 2025

June

30, 2025

June

30, 2025

June

30, 2025

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

144,150,447

39,588,702

(651,220)

183,087,929

Selling and marketing expenses

8,424,702

2,062,702

10,487,404

General and administrative expenses

38,032,276

5,186,679

43,218,955

Other operating expenses

4,241,044

221,149

4,462,193

Other general expenses

5,805,656

Total operating costs and expenses

200,654,125

47,059,232

(651,220)

247,062,137

Quarter Ended

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

RMB

US$

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

120,581,608

25,958,440

146,540,048

21,597,331

Selling and marketing expenses

8,896,407

1,308,420

10,204,827

1,504,005

General and administrative expenses

25,084,172

3,026,966

28,111,138

4,143,069

Other operating expenses

182,467

9,112

191,579

28,235

Other general expenses

4,607,450

679,054

Total operating costs and expenses

159,352,104

30,302,938

189,655,042

27,951,694

Six Months Ended

June

30, 2025

June

30, 2025

June

30, 2025

June

30, 2025

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

286,868,622

84,128,367

(651,220)

370,345,769

Selling and marketing expenses

22,964,944

4,564,490

27,529,434

General and administrative expenses

79,683,638

10,475,363

90,159,001

Other operating expenses

4,290,239

442,297

4,732,536

Other general expenses

11,611,311

Total operating costs and expenses

405,418,755

99,610,517

(651,220)

504,378,052

Six Months Ended

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

June

30, 2026

RMB

US$

Hotel

Restaurant

Elimination

Total

Operating costs and expenses

Operating costs

245,589,032

59,783,354

(39,176)

305,333,210

45,000,547

Selling and marketing expenses

18,109,839

3,511,634

21,621,473

3,186,611

General and administrative expenses

49,169,114

5,954,747

55,123,861

8,124,252

Other operating expenses

3,354,535

42,437

3,396,972

500,652

Other general expenses

9,718,569

1,432,340

Total operating costs and expenses

325,941,089

69,292,172

(39,176)

395,194,085

58,244,402

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

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

December 31

June 30

2025

2026

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

1,652,179,474

1,689,632,928

249,021,080

Restricted cash

7,389,650

6,209,434

915,157

Short-term investments

285,570,000

42,087,810

Accounts receivable, net of allowance

81,335,494

67,987,065

10,020,053

Amounts due from related parties

18,843,062

18,889,143

2,783,915

Inventories

4,922,160

5,140,534

757,621

Other current assets

92,557,400

100,329,837

14,786,788

Loans receivable, net

38,798,333

44,431,478

6,548,390

Total current assets

1,896,025,573

2,218,190,419

326,920,814

Non-current assets:

Amounts due from a related party

110,000,000

16,211,994

Restricted cash

18,869,900

18,870,700

2,781,197

Long-term time deposits

285,570,000

Loans receivable, net

12,034,825

12,880,353

1,898,329

Property and equipment, net

559,918,957

531,254,248

78,297,188

Intangible assets, net

56,403,818

54,609,365

8,048,424

Goodwill

25,721,262

25,650,746

3,780,452

Long-term investments

156,929,090

154,751,060

22,807,484

Operating lease right-of-use assets

1,130,088,595

1,110,322,494

163,641,287

Other assets

297,560,050

325,549,861

47,980,112

Deferred tax assets

237,098,634

233,667,462

34,438,323

TOTAL ASSETS

4,786,220,704

4,795,746,708

706,805,604

LIABILITIES AND EQUITY

Current liabilities:

Long-term bank loans, current portion

56,800,000

256,000,000

37,729,731

Accounts payable

44,687,183

44,670,517

6,583,620

Advance from customers

21,946,599

20,056,437

2,955,953

Amounts due to related parties

17,518,102

16,190,050

2,386,118

Salary and welfare payable

73,657,641

75,502,874

11,127,747

Deferred revenue

169,139,889

166,024,779

24,469,025

Accrued expenses and other current liabilities

539,836,968

523,274,741

77,121,154

Income tax payable

72,129,824

36,878,708

5,435,249

Operating lease liabilities, current

184,665,265

163,899,705

24,155,827

Total current liabilities

1,180,381,471

1,302,497,811

191,964,424

Long-term bank loans

199,400,000

45,597,470

6,720,236

Deferred revenue

134,414,010

115,474,940

17,018,900

Other long-term liabilities

117,513,512

110,137,975

16,232,329

Operating lease liabilities, non-current

1,032,472,822

1,047,898,560

154,441,137

Deferred tax liabilities

55,941,338

50,682,606

7,469,692

Unrecognized tax benefits

457,930,743

468,007,303

68,975,741

TOTAL LIABILITIES

3,178,053,896

3,140,296,665

462,822,459

Shareholders' equity:

Class A ordinary shares

222,587,070

32,805,275

Class B ordinary shares

115,534,210

17,027,636

Treasury Stock

(48,054,863)

(7,082,410)

Additional paid-in capital

1,566,949,877

230,939,835

Retained earnings (Accumulated losses)

(291,545,545)

(255,247,242)

(37,618,789)

Accumulated other comprehensive income

11,093,099

23,087,047

3,402,610

Total GreenTree Hospitality Group Ltd.shareholders'

equity

1,576,563,848

1,624,856,099

239,474,157

Non-controlling interests

31,602,960

30,593,944

4,508,988

Total shareholders' equity

1,608,166,808

1,655,450,043

243,983,145

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

4,786,220,704

4,795,746,708

706,805,604

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended

Six Months Ended

June

30, 2025

June

30, 2026

June

30, 2026

June

30, 2025

June

30, 2026

June

30, 2026

RMB

US$

RMB

US$

Revenues

Leased-and-operated revenues

134,152,724

95,860,227

14,128,049

253,016,758

190,419,964

28,064,430

Franchised-and-managed revenues

138,918,602

126,759,349

18,682,016

264,529,997

242,059,115

35,675,099

Wholesales and others

16,193,449

12,488,815

1,840,624

36,546,250

30,366,038

4,475,400

Total revenues

289,264,774

235,108,391

34,650,689

554,093,005

462,845,118

68,214,929

Operating costs and expenses

Operating costs

(183,087,930)

(146,540,048)

(21,597,331)

(370,345,769)

(305,333,210)

(45,000,547)

Selling and marketing expenses

(10,487,404)

(10,204,827)

(1,504,005)

(27,529,434)

(21,621,473)

(3,186,611)

General and administrative expenses

(43,218,955)

(28,111,138)

(4,143,069)

(90,159,001)

(55,123,861)

(8,124,252)

Other operating expenses

(4,462,193)

(191,579)

(28,235)

(4,732,536)

(3,396,972)

(500,652)

Other general expenses

(5,805,656)

(4,607,450)

(679,054)

(11,611,311)

(9,718,569)

(1,432,339)

Total operating costs and expenses

(247,062,137)

(189,655,042)

(27,951,694)

(504,378,052)

(395,194,085)

(58,244,401)

Other operating income

6,961,716

2,787,310

410,799

10,762,348

9,259,293

1,364,651

Income from operations

49,164,353

48,240,659

7,109,794

60,477,301

76,910,325

11,335,179

Interest income and other, net

7,941,224

8,260,486

1,217,445

18,563,426

17,093,664

2,519,294

Interest expense

(1,940,043)

(1,818,422)

(268,002)

(3,817,915)

(3,678,202)

(542,100)

Gains (losses) from investment in equity

securities

24,800,795

Other income, net

105,686,128

(22,673,585)

(3,341,673)

97,329,451

(33,327,474)

(4,911,861)

Income before income taxes

185,652,457

32,009,138

4,717,564

197,353,058

56,998,313

8,400,512

Income tax expense

(25,969,005)

(9,829,293)

(1,448,659)

(30,183,730)

(19,530,999)

(2,878,513)

Income (loss) before share of gains in equity

investees

159,683,452

22,179,845

3,268,905

167,169,328

37,467,314

5,521,999

Share of income/(loss) in equity investees, net of tax

301,937

(921,953)

(135,879)

603,873

(2,178,030)

(321,002)

Net income (loss)

159,985,388

21,257,892

3,133,026

167,773,201

35,289,284

5,200,997

Net income/(loss) attributable to non-controlling interests

1,650,876

(464,173)

(68,411)

2,695,208

1,009,019

148,711

Net income attributable to ordinary

shareholders

161,636,264

20,793,719

3,064,615

170,468,409

36,298,303

5,349,708

Net earnings per share

Class A ordinary share-basic and diluted

1.59

0.21

0.03

1.68

0.36

0.05

Class B ordinary share-basic and diluted

1.59

0.21

0.03

1.68

0.36

0.05

Net earnings per ADS [4]

Class A ordinary share-basic and diluted

1.59

0.21

0.03

1.68

0.36

0.05

Class B ordinary share-basic and diluted

1.59

0.21

0.03

1.68

0.36

0.05

Weighted average shares outstanding

Class A ordinary share-basic and diluted

66,636,925

66,134,416

66,636,925

66,134,416

Class B ordinary share-basic and diluted

34,762,909

Other comprehensive income, net of tax

Foreign currency translation adjustments

4,831,702

8,024,096

1,182,605

9,663,403

11,993,948

1,767,689

Comprehensive income, net of tax

164,817,090

29,281,988

4,315,631

177,436,604

47,283,232

6,968,686

Comprehensive income/(loss) attributable to

non-controlling interests

1,650,876

(464,173)

(68,411)

2,695,208

1,009,019

148,711

Comprehensive income (loss) attributable to

ordinary shareholders

166,467,965

28,817,815

4,247,220

180,131,812

48,292,251

7,117,397

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

Quarter Ended

Six Months Ended

June

30, 2025

June

30, 2026

June

30, 2026

June

30, 2025

June

30, 2026

June

30, 2026

RMB

US$

RMB

US$

Revenues

Leased-and-operated revenues

105,970,283

77,613,926

11,438,877

194,165,718

152,151,688

22,424,384

Franchised-and-managed revenues

137,496,914

126,253,871

18,607,518

261,353,522

239,620,481

35,315,689

Others

561,244

717,195

105,701

1,478,298

1,508,083

222,264

Total revenues

244,028,441

204,584,992

30,152,097

456,997,538

393,280,252

57,962,337

Operating costs and expenses

Hotel operating costs

(144,150,447)

(120,581,608)

(17,771,530)

(286,868,622)

(245,589,032)

(36,195,345)

Selling and marketing expenses

(8,424,702)

(8,896,407)

(1,311,168)

(22,964,944)

(18,109,839)

(2,669,060)

General and administrative expenses

(38,032,276)

(25,084,172)

(3,696,949)

(79,683,638)

(49,169,114)

(7,246,631)

Other operating expenses

(4,241,044)

(182,467)

(26,892)

(4,290,239)

(3,354,535)

(494,397)

Other general expenses

(5,805,656)

(4,607,450)

(679,054)

(11,611,311)

(9,718,569)

(1,432,340)

Total operating costs and expenses

(200,654,125)

(159,352,104)

(23,485,594)

(405,418,755)

(325,941,089)

(48,037,773)

Other operating income

6,826,954

1,434,752

211,456

10,391,669

7,867,615

1,159,543

Income from operations

50,201,269

46,667,640

6,877,959

61,970,453

75,206,778

11,084,107

Interest income and other, net

7,910,974

8,255,562

1,216,719

18,502,925

17,085,059

2,518,026

Interest expense

(1,891,327)

(1,818,422)

(268,002)

(3,769,199)

(3,678,202)

(542,100)

Gains (losses) from investment in equity

securities

24,800,795

Other income, net

105,697,809

(22,629,180)

(3,335,128)

97,352,813

(33,234,724)

(4,898,191)

Income before income taxes

186,719,520

30,475,600

4,491,548

198,857,787

55,378,911

8,161,842

Income tax expense

(25,869,423)

(9,804,376)

(1,444,986)

(29,850,815)

(19,102,201)

(2,815,316)

Income (loss) before share of gains in

equity investees

160,850,097

20,671,224

3,046,561

169,006,972

36,276,710

5,346,526

Share of income/(loss) in equity investees, net of tax

301,937

(921,953)

(135,879)

603,873

(2,178,030)

(321,002)

Net income (loss)

161,152,033

19,749,271

2,910,682

169,610,845

34,098,680

5,025,524

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

Quarter Ended

Six Months Ended

June

30, 2025

June

30, 2026

June

30, 2026

June

30, 2025

June

30, 2026

June

30, 2026

RMB

US$

RMB

US$

Revenues

Leased-and-operated revenues

28,389,854

18,246,301

2,689,172

59,058,453

38,268,277

5,640,046

Franchised-and-managed revenues

1,421,688

505,479

74,498

3,176,474

2,438,634

359,410

Wholesales and others

16,076,011

11,771,620

1,734,922

35,511,759

28,897,131

4,258,910

Total revenues

45,887,553

30,523,400

4,498,593

97,746,686

69,604,042

10,258,366

Operating costs and expenses

Restaurant operating costs

(39,588,702)

(25,958,440)

(3,825,801)

(84,128,367)

(59,783,354)

(8,810,976)

Selling and marketing expenses

(2,062,703)

(1,308,420)

(192,837)

(4,564,490)

(3,511,634)

(517,551)

General and administrative expenses

(5,186,679)

(3,026,966)

(446,120)

(10,475,363)

(5,954,747)

(877,621)

Other operating expenses

(221,149)

(9,112)

(1,343)

(442,297)

(42,437)

(6,254)

Total operating costs and expenses

(47,059,232)

(30,302,938)

(4,466,100)

(99,610,517)

(69,292,172)

(10,212,402)

Other operating income

134,762

1,352,558

199,342

370,679

1,391,678

205,108

Income from operations

(1,036,917)

1,573,020

231,834

(1,493,152)

1,703,548

251,072

Interest income and other, net

30,251

4,924

726

60,501

8,605

1,268

Interest expense

(48,716)

Other income, net

(11,681)

(44,405)

(6,544)

(23,362)

(92,750)

(13,670)

Income before income taxes

(1,067,063)

1,533,539

226,016

(1,504,729)

1,619,403

238,670

Income tax expense

(99,582)

(24,917)

(3,672)

(332,915)

(428,798)

(63,197)

Income (loss) before share of gains in

equity investees

(1,166,645)

1,508,622

222,343

(1,837,644)

1,190,605

175,473

Share of income/(loss) in equity investees, net of tax

Net income (loss)

(1,166,645)

1,508,622

222,343

(1,837,644)

1,190,605

175,473

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

Quarter Ended

Six Months Ended

June

30, 2025

30, 2026

30, 2025

30, 2026

RMB

US$

RMB

US$

Operating activities:

Net cash provided by operating activities

46,586,703

23,305,470

3,434,800

104,813,193

81,452,750

12,004,649

Investing activities:

Prepayments and purchases of property, plant and equipment

(18,911,621)

(12,689,579)

(1,870,213)

(44,392,506)

(64,326,633)

(9,480,573)

Purchases of intangible assets

(101,463)

(14,954)

Proceeds from disposal of property, plant and equipment

215,871

605,022

89,169

237,334

605,022

89,169

Proceeds from disposal of long-term investments

109,036,386

100,000

14,738

109,036,386

600,000

88,429

Purchases of short-term investments

(23,147)

Loan to related parties

(625,000)

Repayment from related parties

118,982

Loan to third parties

(16,167,100)

(2,382,736)

(16,167,100)

(2,382,736)

Loan to fanchisees

(215,659)

(31,784)

(2,010,000)

(1,604,559)

(236,483)

Repayment from franchisees

8,624,735

3,343,480

492,769

14,684,093

5,713,396

842,052

Net cash (used in) provided by investing activities

98,436,206

(25,023,836)

(3,688,057)

77,026,142

(75,281,337)

(11,095,096)

Financing activities:

Repayment of bank loans

(200,000)

(29,476)

(200,000)

(29,476)

Proceeds from bank loans

46,754,778

6,890,801

Net cash provided by (used in) financing activities

(200,000)

(29,476)

(200,000)

46,554,778

6,861,325

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(4,979,489)

(7,949,613)

(1,171,627)

(9,958,977)

(16,452,153)

(2,424,746)

Net (decrease) increase in cash and cash equivalents and restricted cash

139,843,421

(9,867,979)

(1,454,360)

171,680,358

36,274,038

5,346,132

Cash and cash equivalents and restricted cash at the beginning of the period

1,557,038,875

1,724,581,041

254,171,794

1,525,201,938

1,678,439,024

247,371,302

Cash and cash equivalents and restricted cash at the end of the period

1,696,882,296

1,714,713,062

252,717,434

1,696,882,296

1,714,713,062

252,717,434

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Quarter Ended

Six Months Ended

June

30, 2025

June

30, 2026

June

30, 2026

June

30, 2025

June

30, 2026

June

30, 2026

RMB

US$

RMB

US$

Net income

159,985,388

21,257,892

3,133,026

167,773,201

35,289,284

5,200,997

Deduct:

Other operating income

6,961,716

2,787,310

410,799

10,762,348

9,259,293

1,364,651

Interest income and other, net

7,941,224

8,260,486

1,217,445

18,563,426

17,093,664

2,519,294

Gains from investment in equity securities

24,800,795

Share of gain in equity investees, net of tax

301,937

603,873

Other income, net

105,686,128

97,329,451

Add:

Other operating expenses

4,462,193

191,579

28,235

4,732,536

3,396,972

500,652

Other general expenses

5,805,656

4,607,450

679,054

11,611,311

9,718,569

1,432,340

Income tax expenses (benefits)

25,969,005

9,829,293

1,448,659

30,183,730

19,530,999

2,878,513

Share of loss in equity investees, net of tax

921,953

135,879

2,178,030

321,002

Interest expenses

1,940,043

1,818,422

268,002

3,817,915

3,678,202

542,100

Depreciation and amortization

25,875,796

18,625,227

2,745,019

51,900,949

41,298,721

6,086,678

Other expense, net

22,673,585

3,341,673

33,327,474

4,911,861

Adjusted EBITDA (Non-GAAP) [2]

78,346,281

68,877,605

10,151,303

117,959,749

122,065,294

17,990,198

Quarter Ended

Six Months Ended

June

30, 2025

June

30, 2026

June

30, 2026

June

30, 2025

June

30, 2026

June

30, 2026

RMB

US$

RMB

US$

Net income

159,985,388

21,257,892

3,133,026

167,773,201

35,289,284

5,200,997

Deduct:

Subsidies (net of 25% tax)

1,527,866

12,024

1,772

5,447,641

3,252,866

479,413

Gains from investment in equity securities (net

of 25% tax)

18,600,596

Other income (net of 25% tax)

107,775,298

101,507,790

Add:

Other expense (net of 25% tax)

17,005,189

2,506,255

24,995,606

3,683,896

Other general expenses

5,805,656

4,607,450

679,053

11,611,311

9,718,569

1,432,340

Income tax expenses related to dividend distribution

7,299,300

4,307,627

634,866

7,299,300

4,307,627

634,866

Core net income (Non-GAAP) [3]

45,186,584

47,166,135

6,951,428

61,127,785

71,058,221

10,472,686

Core net income per ADS [4] (Non-GAAP)

Class A ordinary share-basic and diluted

0.45

0.47

0.07

0.60

0.70

0.10

Class B ordinary share-basic and diluted

0.45

0.47

0.07

0.60

0.70

0.10

Hotel Operational Data

June 30,

2025

June 30,

2026

Total hotels in operation:

4,509

4,615

Leased-and-owned hotels

Franchised hotels

4,454

4,573

Total hotel rooms in operation

321,977

330,029

Leased-and-owned hotels

6,262

4,902

Franchised hotels

315,715

325,127

Number of cities

357

347

Quarter Ended

June 30,

2025

June 30,

2026

Occupancy rate (as a percentage)

Leased-and-owned hotels

72.30 %

63.50 %

Franchised hotels

67.80 %

65.20 %

Blended

67.90 %

65.20 %

Average daily rate (in RMB)

Leased-and-owned hotels

245

236

Franchised hotels

164

155

Blended

166

157

RevPAR (in RMB)

Leased-and-owned hotels

177

150

Franchised hotels

111

101

Blended

113

103

Number of Hotels in Operation

Number of Hotel Rooms in Operation

June

30, 2025

June

30, 2026

June

30, 2025

June

30, 2026

Mid-to-up-scale

569

596

52,773

56,448

GreenTree Eastern

236

252

25,107

28,316

Deep Sleep Hotel

610

710

Gem

119

118

10,781

10,726

Gya

6,012

6,676

108

110

9,024

9,117

Others

1,239

903

Mid-scale

3,005

3,040

226,336

228,537

GreenTree Inn

2,366

2,343

184,561

185,694

GT Alliance

408

392

25,930

24,936

GreenTree Apartment

1,545

1,860

Vatica

107

102

7,481

7,111

Others

100

173

6,819

8,936

Economy hotels

935

979

42,868

45,044

Shell

935

979

42,868

45,044

Others

Total

4,509

4,615

321,977

330,029

Restaurant Operational Data

June 30,

2025

June 30,

2026

Total restaurants in operation:

183

198

Leased-and-owned restaurants

Franchised restaurants

168

185

Number of cities

Da Niang Dumplings

164

180

Bellagio

Quarter Ended

2025 Q2

2026 Q2

ADT

Leased-and-owned restaurants

215

194

Franchised restaurants

Blended

AC (in RMB)

Leased-and-owned restaurants

Franchised restaurants

Blended

ADS (in RMB)

Leased-and-owned restaurants

18,931

16,081

Franchised restaurants

2,363

2,062

Blended

3,629

2,893

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]

SOURCE GreenTree Hospitality Group Ltd.