GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

GreenTree Hospitality Group Ltd. Reports Fourth Quarter and Fiscal Year 2025 Financial Results News provided by GreenTree Hospitality Group Ltd. Apr 29, 2026, 09:31 ET Share this article Share to X Share this article Share to X 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$9.0 million) [1] compared to RMB57.8 million for the fourth quarter of 2024. SHANGHAI , April 29, 2026 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG ) ("GreenTree", the "Company", "we", "us" and "our"), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the fourth quarter and fiscal year of 2025. Fourth Quarter of 2025 Operational Highlights Hotels A total of 4,580 hotels with 327,060 hotel rooms were in operation as of December 31, 2025. The Company opened 76 hotels and had a pipeline of 1,260 hotels contracted for or under development as of December 31, 2025. The average daily room rate was RMB162, a decrease of 4.0% from RMB169 in the fourth quarter of 2024. The occupancy rate was 64.7%, down from 68.6% in the fourth quarter of 2024. Revenue per available room, or RevPAR, was RMB105, a 9.5% year-over-year decrease. [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 6.9931 on December 31, 2025 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/20260105/. 2. Adjusted net income is defined as net income excluding the impact by the exemption of fees from franchisees, impact from disposal of L&O hotel assets, impairment of goodwill and trademarks of restaurant business, impairment of assets, provisions for loan to franchisee loans, foreign exchange losses., and earnings from the disposal of investment. 3. 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. 4. 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 government subsidies (net of 25% tax), gains from investment in equity securities (net of 25% tax), and other income (net of 25% tax). 5. Each ADS represents one ordinary share. 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. Quarter Ended December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 90,969,160 28,534,041 (207,412) 119,295,789 Franchised-and-managed revenues 148,174,447 4,759,771 - 152,934,218 Wholesales and others 1,026,363 31,759,229 (495,936) 32,289,656 Total revenues 240,169,970 65,053,041 (703,348) 304,519,663 Quarter Ended December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 85,005,220 21,237,340 - 106,242,560 15,192,484 Franchised-and-managed revenues 104,151,920 954,557 - 105,106,477 15,030,026 Wholesales and others 724,362 16,926,284 (338,210) 17,312,436 2,475,646 Total revenues 189,881,502 39,118,181 (338,210) 228,661,473 32,698,156 2025 Financial Results Year Ended December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Revenues Leased-and-operated revenues 437,521,898 159,326,153 -207,411 596,640,640 Franchised-and-managed revenues 625,072,856 10,287,457 - 635,360,313 Wholesales and others 3,908,057 109,031,616 -1,500,428 111,439,245 Total revenues 1,066,502,811 278,645,226 -1,707,839 1,343,440,198 Year Ended December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Revenues Leased-and-operated revenues 381,361,912 106,812,441 (241,982) 487,932,371 69,773,401 Franchised-and-managed revenues 528,472,018 5,979,850 - 534,451,868 76,425,601 Wholesales and others 2,514,491 73,456,665 (1,002,001) 74,969,155 10,720,446 Total revenues 912,348,421 186,248,956 (1,243,983) 1,097,353,394 156,919,448 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$10.7 million) [1] , a 32.7% year-over-year decrease. Total operating costs and expenses Quarter Ended December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 139,910,728 59,854,076 (791,324) 198,973,480 Selling and marketing expenses 13,451,271 4,083,785 87,975 17,623,031 General and administrative expenses 39,695,498 3,347,191 - 43,042,689 Other operating expenses 2,635,870 16,422 - 2,652,292 Impairment loss of goodwill - 81,008,000 - 81,008,000 Impairment of indefinite-lived intangible asset - 39,072,000 - 39,072,000 Other general expenses 30,012,799 - - 30,012,799 Total operating costs and expenses 225,706,166 187,381,474 (703,349) 412,384,291 Quarter Ended December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 123,262,562 35,625,047 (338,210) 158,549,399 22,672,263 Selling and marketing expenses 11,805,604 2,001,482 - 13,807,086 1,974,387 General and administrative expenses 18,578,972 5,933,471 - 24,512,443 3,505,233 Other operating expenses 40,245,786 (57,902) - 40,187,884 5,746,791 Impairment loss of goodwill - 66,491,000 - 66,491,000 9,508,087 Impairment of indefinite-lived intangible asset - 17,331,000 - 17,331,000 2,478,300 Other general expenses 31,779,622 - - 31,779,622 4,544,424 Total operating costs and expenses 225,672,546 127,324,098 (338,210) 352,658,434 50,429,485 Year Ended December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 RMB RMB RMB RMB Hotel Restaurant Elimination Total Operating costs and expenses Operating costs 593,798,806 230,496,349 (1,707,841) 822,587,314 Selling and marketing expenses 55,028,196 12,556,863 - 67,585,059 General and administrative expenses 156,401,775 26,149,319 - 182,551,094 Other operating expenses 4,937,315 2,153,148 - 7,090,463 Impairment loss of goodwill - 81,008,000 - 81,008,000 Impairment of indefinite-lived intangible asset - 39,072,000 - 39,072,000 Other general expenses 41,769,330 - - 41,769,330 Total operating costs and expenses 851,935,422 391,435,679 (1,707,841) 1,241,663,260 Year Ended December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 RMB RMB RMB RMB US$ Hotel Restaurant Elimination Total Total Operating costs and expenses Operating costs 552,869,547 162,768,869 (1,243,984) 714,394,432 102,157,045 Selling and marketing expenses 46,084,781 8,699,788 - 54,784,569 7,834,089 General and administrative expenses 111,872,466 18,589,380 - 130,461,846 18,655,796 Other operating expenses 50,188,458 1,543,018 - 51,731,476 7,397,503 Impairment loss of goodwill - 66,491,000 - 66,491,000 9,508,087 Impairment of indefinite-lived intangible asset - 17,331,000 - 17,331,000 2,478,300 Other general expenses 82,874,509 - - 82,874,509 11,850,897 Total operating costs and expenses 843,889,761 275,423,055 (1,243,984) 1,118,068,832 159,881,717 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 RMB 7.1 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 -2 8.4 %. 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$4.2 million) [1] , compared to a net income of RMB28.4million in the fourth quarter of 2024, and net margin was15.5%. Excluding the impact of the above-mentioned items on hotels, adjusted net income [2] of the hotel business increased 6 3.9 % to RMB61.9million (US$ 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 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Balance Sheets December 31 December 31 December 31 2024 2025 2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,490,235,562 1,652,179,474 236,258,523 Restricted cash 16,096,476 7,389,650 1,056,706 Short-term investments 10,475 - - Accounts receivable, net of allowance 99,688,034 81,335,494 11,630,821 Amounts due from related parties 21,839,929 18,843,062 2,694,522 Inventories 6,881,470 4,922,160 703,860 Other current assets 114,898,590 92,557,400 13,235,532 Loans receivable, net 85,463,467 38,798,333 5,548,088 Total current assets 1,835,114,003 1,896,025,573 271,128,052 Non-current assets: Amounts due from a related party 110,000,000 110,000,000 15,729,791 Restricted cash 18,869,900 18,869,900 2,698,360 Long-term time deposits 285,570,000 285,570,000 40,835,967 Loans receivable, net 15,372,238 12,034,825 1,720,957 Property and equipment, net 649,528,210 559,918,957 80,067,346 Intangible assets, net 75,677,551 56,403,818 8,065,639 Goodwill 96,074,468 25,721,262 3,678,092 Long-term investments 184,024,217 156,929,090 22,440,561 Operating lease right-of-use assets 1,328,582,419 1,130,088,595 161,600,520 Other assets 102,545,848 297,560,050 42,550,519 Deferred tax assets 245,760,095 237,098,634 33,904,654 TOTAL ASSETS 4,947,118,949 4,786,220,704 684,420,458 LIABSLITIES AND EQUITY Current liabilities: Long-term bank loans, current portion 400,000 56,800,000 8,122,292 Accounts payable 56,488,405 44,687,183 6,390,182 Advance from customers 25,684,437 21,946,599 3,138,322 Amounts due to related parties 17,462,176 17,518,102 2,505,055 Salary and welfare payable 78,234,585 73,657,641 10,532,903 Deferred revenue 175,046,178 169,139,889 24,186,682 Accrued expenses and other current liabilities 481,910,291 539,836,968 77,195,660 Income tax payable 88,876,497 72,129,824 10,314,428 Operating lease liabilities, current 241,363,244 184,665,265 26,406,782 Total current liabilities 1,165,465,813 1,180,381,471 168,792,306 Long-term bank loans 256,200,000 199,400,000 28,513,821 Deferred revenue 176,353,919 134,414,010 19,220,948 Other long-term liabilities 120,975,955 117,513,512 16,804,208 Operating lease liabilities, non-current 1,215,776,075 1,032,472,822 147,641,650 Deferred tax liabilities 79,670,908 55,941,338 7,999,505 Unrecognized tax benefits 440,072,214 457,930,743 65,483,225 Total liabilities 3,454,514,884 3,178,053,896 454,455,663 Shareholders' equity: Class A ordinary shares 222,587,070 222,587,070 31,829,528 Class B ordinary shares 115,534,210 115,534,210 16,521,172 Treasury Stock (37,043,116) (48,054,863) (6,871,754) Additional paid-in capital 1,609,972,272 1,566,949,877 224,070,852 Retained earnings (Accumulated losses) (458,337,571) (291,545,545) (41,690,458) Accumulated other comprehensive income 6,033,263 11,093,099 1,586,292 Total GreenTree Hospitality Group Ltd. shareholders' equity 1,458,746,128 1,576,563,848 225,445,632 Non-controlling interests 33,857,937 31,602,960 4,519,163 Total shareholders' equity 1,492,604,065 1,608,166,808 229,964,795 TOTAL LIABSLITIES AND SHAREHOLDERS' EQUITY 4,947,118,949 4,786,220,704 684,420,458 GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income Quarter Ended Year Ended December 31, 2024 December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 119,295,789 106,242,560 15,192,484 596,640,640 487,932,371 69,773,401 Franchised-and-managed revenues 152,934,218 105,106,477 15,030,026 635,360,313 534,451,868 76,425,601 Wholesales and others 32,289,656 17,312,436 2,475,646 111,439,245 74,969,155 10,720,446 Total revenues 304,519,663 228,661,473 32,698,156 1,343,440,198 1,097,353,394 156,919,448 Operating costs and expenses Operating costs (198,973,480) (158,549,399) (22,672,263) (822,587,314) (714,394,432) (102,157,045) Selling and marketing expenses (17,623,031) (13,807,086) (1,974,387) (67,585,059) (54,784,569) (7,834,089) General and administrative expenses (43,042,689) (24,512,443) (3,505,233) (182,551,094) (130,461,846) (18,655,796) Other operating expenses (2,652,292) (40,187,884) (5,746,791) (7,090,463) (51,731,476) (7,397,503) Impairment loss of goodwill (81,008,000) (66,491,000) (9,508,087) (81,008,000) (66,491,000) (9,508,087) Impairment of indefinite-lived intangible asset (39,072,000) (17,331,000) (2,478,300) (39,072,000) (17,331,000) (2,478,300) Other general expenses (30,012,799) (31,779,622) (4,544,424) (41,769,330) (82,874,509) (11,850,897) Total operating costs and expenses (412,384,291) (352,658,434) (50,429,485) (1,241,663,260) (1,118,068,832) (159,881,717) Other operating income 12,898,817 59,110,768 8,452,727 60,147,558 77,371,723 11,064,010 Income from operations (94,965,811) (64,886,193) (9,278,602) 161,924,496 56,656,285 8,101,741 Interest income and other, net 12,633,535 9,393,209 1,343,211 40,072,068 37,806,975 5,406,326 Interest expense (1,824,933) (2,095,890) (299,708) (6,310,152) (7,644,628) (1,093,167) Gains (losses) from investment in equity securities (9,544,253) (24,444,565) (3,495,526) (14,953,679) 5,000,000 714,990 Other income, net 34,336,161 22,218,586 3,177,215 16,474,064 113,255,005 16,195,250 Income before income taxes (59,365,301) (59,814,853) (8,553,410) 197,206,797 205,073,637 29,325,140 Income tax expense (12,758,025) 3,254,084 465,328 (88,726,969) (45,880,022) (6,560,756) Income (loss) before share of gains in equity investees (72,123,326) (56,560,769) (8,088,082) 108,479,828 159,193,615 22,764,384 Share of loss/(income) in equity investees, net of tax (700,781) 818,603 117,058 (1,165,474) 4,163,620 595,390 Net income(loss) (72,824,107) (55,742,166) (7,971,024) 107,314,354 163,357,235 23,359,774 Net loss/(income) attributable to non-controlling interests 1,368,731 258,970 37,032 2,687,878 3,434,790 491,168 Net income attributable to ordinary shareholders (71,455,377) (55,483,196) (7,933,992) 110,002,232 166,792,025 23,850,942 Net earnings per share Class A ordinary share-basic and diluted (0.70) (0.55) (0.08) 1.08 1.65 0.24 Class B ordinary share-basic and diluted (0.70) (0.55) (0.08) 1.08 1.65 0.24 Net earnings per ADS Class A ordinary share-basic and diluted (0.70) (0.55) (0.08) 1.08 1.65 0.24 Class B ordinary share-basic and diluted (0.70) (0.55) (0.08) 1.08 1.65 0.24 Weighted average shares outstanding Class A ordinary share-basic and diluted 66,765,032 66,134,813 66,134,813 66,776,243 66,366,641 66,366,641 Class B ordinary share-basic and diluted 34,762,909 34,762,909 34,762,909 34,762,909 34,762,909 34,762,909 Other comprehensive income, net of tax Foreign currency translation adjustments (20,725,862) 7,667,013 1,096,369 (22,368,019) 5,059,836 723,547 Comprehensive income, net of tax (93,549,969) (48,075,153) (6,874,655) 84,946,335 168,417,071 24,083,321 Comprehensive loss/(income) attributable to non-controlling interests 1,368,731 258,970 37,032 2,687,878 3,434,790 491,168 Comprehensive income (loss) attributable to ordinary shareholders (92,181,238) (47,816,183) (6,837,623) 87,634,213 171,851,861 24,574,489 GreenTree Hospitality Group Ltd. Unaudited Condensed Hotel Statements of Comprehensive Income Quarter Ended Year Ended December 31, 2024 December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 90,969,160 85,005,220 12,155,585 437,521,898 381,361,912 54,534,028 Franchised-and-managed revenues 148,174,447 104,151,920 14,893,526 625,072,856 528,472,018 75,570,493 Wholesales and others 1,026,363 724,362 103,583 3,908,057 2,514,491 359,567 Total revenues 240,169,970 189,881,502 27,152,694 1,066,502,811 912,348,421 130,464,088 Operating costs and expenses Operating costs (139,910,728) (123,262,562) (17,626,312) (593,798,806) (552,869,547) (79,059,294) Selling and marketing expenses (13,451,271) (11,805,604) (1,688,179) (55,028,196) (46,084,781) (6,590,036) General and administrative expenses (39,695,498) (18,578,972) (2,656,758) (156,401,775) (111,872,466) (15,997,550) Other operating expenses (2,635,870) (40,245,786) (5,755,071) (4,937,315) (50,188,458) (7,176,854) Other general expenses (30,012,799) (31,779,622) (4,544,425) (41,769,330) (82,874,509) (11,850,897) Total operating costs and expenses (225,706,166) (225,672,546) (32,270,745) (851,935,422) (843,889,761) (120,674,631) Other operating income 11,644,397 59,024,549 8,440,398 56,818,174 76,874,333 10,992,883 Income from operations 26,108,201 23,233,505 3,322,347 271,385,563 145,332,993 20,782,340 Interest income and other, net 12,606,174 9,365,397 1,339,234 39,982,179 37,684,201 5,388,769 Interest expense (1,825,243) (2,168,449) (310,084) (6,310,152) (7,644,628) (1,093,167) Gains (losses) from investment in equity securities (9,544,253) (24,444,565) (3,495,526) (10,314,000) 5,000,000 714,990 Other income, net 34,321,711 22,941,763 3,280,628 16,383,657 114,001,612 16,302,016 Income before income taxes 61,666,590 28,927,651 4,136,599 311,127,247 294,374,178 42,094,948 Income tax expense (32,610,806) (261,788) (37,435) (107,223,277) (48,997,177) (7,006,503) Income (loss) before share of gains in equity investees 29,055,784 28,665,863 4,099,164 203,903,970 245,377,001 35,088,445 Share of loss/(income) in equity investees, net of tax (700,781) 818,603 117,059 (1,165,474) 4,163,620 595,390 Net income(loss) 28,355,003 29,484,466 4,216,223 202,738,496 249,540,621 35,683,835 GreenTree Hospitality Group Ltd. Unaudited Condensed Restaurant Statements of Comprehensive Income Quarter Ended Year Ended December 31, 2024 December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025 RMB RMB US$ RMB RMB US$ Revenues Leased-and-operated revenues 28,534,041 21,237,340 3,036,899 159,326,153 106,812,441 15,273,976 Franchised-and-managed revenues 4,759,771 954,557 136,500 10,287,457 5,979,850 855,107 Wholesales and others 31,759,229 16,926,284 2,420,426 109,031,616 73,456,665 10,504,163 Total revenues 65,053,041 39,118,181 5,593,825 278,645,226 186,248,956 26,633,246 Operating costs and expenses Operating costs (59,854,076) (35,625,047) (5,094,314) (230,496,349) (162,768,869) (23,275,639) Selling and marketing expenses (4,083,785) (2,001,482) (286,208) (12,556,863) (8,699,788) (1,244,053) General and administrative expenses (3,347,191) (5,933,471) (848,475) (26,149,319) (18,589,380) (2,658,246) Other operating expenses (16,422) 57,902 8,280 (2,153,148) (1,543,018) (220,649) Impairment loss of goodwill (81,008,000) (66,491,000) (9,508,087) (81,008,000) (66,491,000) (9,508,087) Impairment of indefinite-lived intangible asset (39,072,000) (17,331,000) (2,478,300) (39,072,000) (17,331,000) (2,478,300) Total operating costs and expenses (187,381,474) (127,324,098) (18,207,104) (391,435,679) (275,423,055) (39,384,974) Other operating income 1,254,420 86,219 12,330 3,329,384 497,391 71,127 Income from operations (121,074,013) (88,119,698) (12,600,949) (109,461,069) (88,676,708) (12,680,601) Interest income and other, net 27,361 27,812 3,977 89,889 122,774 17,556 Interest expense 310 72,559 10,376 - - - Other income, net 14,450 (723,176) (103,413) (18,672) (746,607) (106,763) Income before income taxes (121,031,894) (88,742,503) (12,690,009) (109,389,852) (89,300,541) (12,769,808) Income tax expense 19,852,781 3,515,872 502,763 18,496,308 3,117,155 445,748 Income (loss) before share of gains in equity investees (101,179,113) (85,226,631) (12,187,246) (90,893,544) (86,183,386) (12,324,060) Net income(loss) (101,179,113) (85,226,631) (12,187,246) (90,893,544) (86,183,386) (12,324,060) GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements Quarter Ended Quarter Ended Quarter Ended Quarter Ended December 31, 2024 December 31, 2024 December 31, 2024 December 31, 2024 Hotel Restaurant Elimination Total RMB RMB RMB RMB Revenues Leased-and-operated revenues 90,969,160 28,534,041 (207,412) 119,295,789 Franchised-and-managed revenues 148,174,447 4,759,771 - 152,934,218 Wholesales and others 1,026,363 31,759,229 (495,936) 32,289,656 Total revenues 240,169,970 65,053,041 (703,348) 304,519,663 Operating costs and expenses Operating costs (139,910,728) (59,854,076) 791,324 (198,973,480) Selling and marketing expenses (13,451,271) (4,083,785) (87,975) (17,623,031) General and administrative expenses (39,695,498) (3,347,191) - (43,042,689) Other operating expenses (2,635,870) (16,422) - (2,652,292) Impairment loss of goodwill - (81,008,000) (81,008,000) Impairment of indefinite-lived intangible asset - (39,072,000) - (39,072,000) Other general expenses (30,012,799) - - (30,012,799) Total operating costs and expenses (225,706,166) (187,381,474) 703,349 (412,384,291) Other operating income 11,644,397 1,254,420 - 12,898,817 Income from operations 26,108,201 (121,074,012) - (94,965,811) GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements Quarter Ended Quarter Ended Quarter Ended Quarter Ended December 31, 2025 December 31, 2025 December 31, 2025 December 31, 2025 Hotel Restaurant Elimination Total RMB RMB RMB RMB Revenues Leased-and-operated revenues 85,005,220 21,237,340 - 106,242,560 Franchised-and-managed revenues 104,151,920 954,557 - 105,106,477 Wholesales and others 724,362 16,926,284 (338,210) 17,312,436 Total revenues 189,881,502 39,118,181 (338,210) 228,661,473 Operating costs and expenses Operating costs (123,262,562) (35,625,047) 338,210 (158,549,399) Selling and marketing expenses (11,805,604) (2,001,482) - (13,807,086) General and administrative expenses (18,578,972) (5,933,471) - (24,512,443) Other operating expenses (40,245,786) 57,902 - (40,187,884) Impairment loss of goodwill - (66,491,000) - (66,491,000) Impairment of indefinite-lived intangible asset - (17,331,000) - (17,331,000) Other general expenses (31,779,622) - - (31,779,622) Total operating costs and expenses (225,672,546) (127,324,098) 338,210 (352,658,434) Other operating income 59,024,549 86,219 - 59,110,768 Income from operations 23,233,505 (88,119,698) - (64,886,193) GreenTree Hospitality Group Ltd. Unaudited Condensed Consolidated Statements of Cash Flows Quarter Ended Year Ended December 31, 2024 December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025 RMB RMB US$ RMB RMB US$ Operating activities: Net (loss) income (72,824,109) (55,742,166) (7,971,024) 107,314,353 163,357,235 23,359,774 Depreciation and amortization 26,575,903 10,137,484 1,449,641 115,746,538 88,932,782 12,717,219 Impairment of long lived assets 51,672,000 893,149 127,719 51,672,000 20,893,149 2,987,681 Impairment of indefinite-lived intangible assets - 17,331,001 2,478,300 - 17,331,001 2,478,300 Impairment of goodwill 81,008,000 66,491,000 9,508,087 81,008,000 66,491,000 9,508,087 Gains from disposal of a long-term investment - (49,964,806) (7,144,872) - (164,007,612) (23,452,777) Others non-cash expense(income) 7,070,827 (818,603) (117,059) 1,166,397 (4,163,620) (595,390) Noncash lease expense 58,283,373 65,943,269 9,429,762 263,911,503 246,116,498 35,194,191 Losses (gain) from disposal of subsidiaries - 4,623,539 661,157 (488,227) 5,399,022 772,050 Allowances for credit losses 21,857,669 36,473,346 5,215,619 56,241,392 81,698,368 11,682,711 Losses (gain) on disposal of property, plant and equipment (555,551) 35,098,580 5,019,030 (25,338,789) 35,565,640 5,085,819 (Losses and impairment) gains on equity securities held 9,544,253 24,444,565 3,495,527 14,953,679 (5,000,000) (714,990) Gains from early termination of operating leases - (52,949,738) (7,571,712) - (52,949,738) (7,571,712) Foreign exchange (gains)losses (26,182,753) 21,188,452 3,029,908 (27,497,301) 31,315,924 4,478,118 Accounts receivable 9,076,784 23,849,190 3,410,389 (4,015,520) 3,471,625 496,436 Inventories (493,764) 1,852,379 264,887 14,618,912 1,959,310 280,178 Amounts due from related parties (3,904,741) 459,253 65,672 (1,416,495) 1,032,243 147,609 Other current assets (1,821,998) (6,964,809) (995,954) (3,067,256) 1,901,317 271,885 Other assets 5,200,506 4,030,567 576,363 3,725,971 8,481,614 1,212,855 Accounts payable 17,296,435 (9,060,433) (1,295,625) (3,021,869) (18,962,750) (2,711,637) Amounts due to related parties 1,767,567 (608,572) (87,025) 1,151,882 55,926 7,997 Salary and welfare payable 3,672,156 (758,915) (108,523) (7,916,485) (4,452,881) (636,754) Deferred revenue (28,977,865) (13,816,880) (1,975,788) (42,787,510) (47,846,198) (6,841,915) Advance from customers 4,428,730 (5,089,423) (727,778) 3,305,355 (3,664,385) (524,000) Accrued expenses and other current liabilities (29,307,543) 7,400,025 1,058,190 3,161,614 60,924,816 8,712,133 Income tax payable (34,457,583) (19,261,683) (2,754,384) (23,195,720) (16,746,673) (2,394,742) Unrecognized tax benefits 68,986,879 16,061,992 2,296,834 57,946,428 17,858,529 2,553,736 Operating lease liabilities (57,896,801) (74,496,586) (10,652,870) (247,702,691) (234,674,168) (33,557,960) Other long-term liabilities 3,262,911 (5,613,384) (802,703) 1,264,213 (3,462,443) (495,123) Deferred taxes (39,040,264) (8,662,368) (1,238,702) (17,362,607) (15,068,109) (2,154,711) Net cash provided by operating activities 74,241,021 32,469,425 4,643,066 373,377,767 281,787,422 40,295,068 Investing activities: Prepayments and purchases of property, plant and equipment (50,616,409) (51,990,595) (7,434,556) (79,582,039) (261,153,578) (37,344,465) Purchases of intangible assets (37,057) - - (37,057) - - Proceeds from disposal of property and equipment (283,895) 187,693 26,840 139,900,865 429,141 61,366 Purchases of a long-term investment (3,600,000) - - (10,400,000) - - Purchases of short-term investments - 15,272 2,184 - - - Proceeds from short-term investments (1,660,895) 10,475 1,498 417,701,142 10,475 1,498 Increase of long-term time deposits - - - (222,230,000) - - Proceeds from disposal of equity securities 21,812,329 79,023,553 11,300,218 21,812,329 188,059,939 26,892,214 Proceeds from disposal of subsidiaries - - - 2,807,500 - - Loan to related parties (588,000) 265,000 37,894 (858,000) - - Repayment from related parties 363,347 1,845,642 263,923 363,347 1,964,624 280,937 Loan to third parties 1,200,000 - - - - - Repayment of loan from third parties - - - 5,900,000 - - Loans to franchisees (8,673,811) (6,143,481) (878,506) (14,323,812) (15,275,441) (2,184,359) Repayment from franchisees 16,870,520 4,370,466 624,968 84,337,321 23,188,484 3,315,909 Net cash (used in) provided by investing activities (25,213,871) 27,584,025 3,944,463 345,391,596 (62,776,356) (8,976,900) Financing activities: Distribution to the shareholders (70,241,162) (43,027,722) (6,152,883) (71,301,605) (43,027,722) (6,152,883) Repayment of bank loans (200,000) (200,000) (28,600) (117,200,000) (400,000) (57,199) Proceeds from bank loans - - - 200,000,000 - - Capital contribution from noncontrolling interest holders - - - (966,000) - - Net cash used in financing activities (70,441,162) (43,227,722) (6,181,483) 10,532,395 (43,427,722) (6,210,082) Effect of exchange rate changes on cash and cash equivalents and restricted cash 6,957,333 (10,685,429) (1,527,994) 4,299,468 (22,346,256) (3,195,471) Net increase in cash, cash equivalents and restricted cash (14,456,679) 6,140,299 878,052 733,601,226 153,237,088 21,912,615 Cash, cash equivalents and restricted cash at the beginning of the year 1,539,658,617 1,672,298,727 239,135,537 791,600,712 1,525,201,938 218,100,976 Cash, cash equivalents and restricted cash at the end of the year 1,525,201,938 1,678,439,026 240,013,589 1,525,201,938 1,678,439,026 240,013,591 GreenTree Hospitality Group Ltd. Unaudited Reconciliation of GAAP and Non-GAAP Results Quarter Ended Year Ended December 31, 2024 December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025 RMB RMB US$ RMB RMB US$ Net income (72,824,109) (55,742,166) (7,971,024) 107,314,353 163,357,235 23,359,774 Deduct: Other operating income 12,898,817 59,110,768 8,452,727 60,147,558 77,371,724 11,064,009 Interest income and other, net 12,633,535 9,393,209 1,343,211 40,072,068 37,806,975 5,406,326 Gains from investment in equity securities - - - - 5,000,000 714,990 Share of gain in equity investees, net of tax - 818,603 117,059 - 4,163,620 595,390 Other income, net 34,336,161 22,218,587 3,177,216 16,474,064 113,255,005 16,195,250 Add: Other operating expenses 2,652,292 40,187,884 5,746,791 7,090,463 51,731,476 7,397,503 Impairment loss of goodwill 81,008,000 66,491,000 9,508,087 81,008,000 66,491,000 9,508,087 Other general expenses 69,084,799 49,110,622 7,022,726 80,841,330 100,205,509 14,329,197 Income tax expenses (benefits) 12,758,025 (3,254,084) (465,328) 88,726,969 45,880,022 6,560,756 Share of loss in equity investees, net of tax 700,781 - - 1,165,474 - - Interest expenses 1,824,933 2,095,890 299,708 6,310,152 7,644,628 1,093,167 Depreciation and amortization 26,575,903 10,137,484 1,449,641 115,746,538 88,932,782 12,717,219 Losses from investment in equity securities 9,544,253 24,444,565 3,495,526 14,953,679 - - Adjusted EBITDA (Non-GAAP) 71,456,364 41,930,028 5,995,914 386,463,268 286,645,328 40,989,738 Quarter Ended Year Ended December 31, 2024 December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025 RMB RMB US$ RMB RMB US$ Net income (72,824,109) (55,742,166) (7,971,024) 107,314,353 163,357,235 23,359,774 Deduct: Government subsidies (net of 25% tax) 7,122,585 1,800,113 257,413 11,967,221 11,105,111 1,588,010 Gains from investment in equity securities (net of 25% tax) - - - - 5,000,000 714,990 Other income (net of 25% tax) 25,752,121 16,663,940 2,382,912 12,355,548 113,451,955 16,223,414 Add: Share-based compensation (46,986) - - - - - Losses from investments in equity securities (net of 25% tax) 7,158,190 18,333,424 2,621,645 11,215,259 - - One-time fees and expenses 621,172 3,439,673 491,867 2,335,161 3,439,673 491,867 Impairment loss of goodwill 81,008,000 66,491,000 9,508,087 81,008,000 66,491,000 9,508,087 Other general expenses 69,084,799 49,110,622 7,022,726 80,841,330 100,205,509 14,329,197 Income tax expenses related to dividend distribution 5,698,810 - - 19,195,050 7,299,300 1,043,786 Core net income (Non-GAAP) 57,825,169 63,168,500 9,032,976 277,586,384 211,235,651 30,206,297 Core net income per ADS (Non-GAAP) Class A ordinary share-basic and diluted 0.57 0.63 0.09 2.73 2.09 0.30 Class B ordinary share-basic and diluted 0.57 0.63 0.09 2.73 2.09 0.30 Hotel Operational Data December 31, 2024 December 31, 2025 Total hotels in operation: 4,425 4,580 Leased and owned hotels 55 45 Franchised hotels 4,370 4,535 Total hotel rooms in operation 321,282 327,060 Leased and owned hotels 6,264 5,130 Franchised hotels 315,018 321,930 Number of cities 352 355 Quarter Ended 2024 Q4 2025 Q4 Occupancy rate (as a percentage) Leased-and-owned hotels 65.5 % 63.9 % Franchised hotels 68.6 % 64.7 % Blended 68.6 % 64.7 % Average daily rate (in RMB) Leased-and-owned hotels 241 239 Franchised hotels 167 160 Blended 169 162 RevPAR (in RMB) Leased-and-owned hotels 158 153 Franchised hotels 115 104 Blended 116 105 Number of Hotels in Operation Number of Hotel Rooms in Operation December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2025 Mid-to-up-scale 553 585 51,649 54,980 GreenTree Eastern 239 245 25,683 26,761 Deepsleep Hotel 8 9 610 710 Gem 105 118 9,386 10,746 Gya 74 76 6,155 6,360 Vx 105 110 9,093 9,127 others 22 27 722 1276 Mid-scale 2,978 3,026 230,298 227,573 GreenTree Inn 2,340 2,394 183,439 186,185 GT Alliance 505 498 37,631 32,285 GreenTree Apartment 24 29 1,545 1,760 Vatica 109 105 7,683 7,343 Economy hotels 894 969 39,335 44,507 Shell 894 969 39,335 44,507 Total 4,425 4,580 321,282 327,060 Restaurant Operational Data December 31, 2024 December 31, 2025 Total restaurants in operation: 182 191 Leased and owned restaurants 18 15 Franchised restaurants 164 176 Number of cities 53 53 Da Niang Dumplings 161 172 Bellagio 21 19 Total restaurants in operation: 182 191 Quarter Ended 2024 Q4 2025 Q4 ADT Leased-and-owned restaurants 186 199 Franchised restaurants 78 79 Blended 93 88 AC (in RMB) Leased-and-owned restaurants 99 79 Franchised restaurants 33 29 Blended 46 37 ADS (in RMB) Leased-and-owned restaurants 18,384 15,790 Franchised restaurants 2,605 2,321 Blended 4,234 3,312 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] SOURCE GreenTree Hospitality Group Ltd. 21 % more press release views with Request a Demo × Modal title