Total revenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million)[1].

Income from operations was RMB106.4 million (US$15.2 million)[1] compared to RMB137.8 million for the third quarter of 2023.

Net income was RMB65.2 million (US$9.3 million)[1] compared to RMB117.4 million for the third quarter of 2023.

Adjusted EBITDA (non-GAAP)[2] decreased 32.1% year over year to RMB122.5million (US$17.5 million)[1].

Core net income (non-GAAP)[3] decreased 26.6% year over year to RMB93.5million (US$13.3 million)[1].

SHANGHAI,Nov. 21,2024 --GreenTree Hospitality Group Ltd. (NYSE: GHG) ("GreenTree",the "Company","we","us" and "our"),a leading hospitality and restaurantmanagement groupin China,today announced its unaudited financial results for the thirdquarterof 2024.

[1] The conversion ofRenminbi("RMB")intoUnitedStatesdollars("US$")isbasedontheexchangerateofUS$1.00=RMB7.0176onSeptember30,2024assetforthinH.10statisticalreleaseoftheU.S.FederalReserveBoardandavailableathttps://www.federalreserve.gov/releases/h10/20220103/.

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

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

Third Quarter of2024Operational Highlights

Hotels

A total of 4,336 hotels with 316,461 hotel rooms were in operation as of September 30,2024.

The Company opened 109 hotels and had a pipeline of 1,085 hotels contracted for or under development as of September 30,2024.

The average daily room rate was RMB181,a decrease of 6.0% from RMB192 in the third quarter of 2023.

The occupancy rate was 74.6%,decreased from 81.2% in the third quarter of 2023.

Revenue per available room,orRevPAR,was RMB135,a 13.6% year-over-year decrease.

Restaurants

A total of 182 restaurants were in operation as of September 30,2024

The AC (average check) was RMB46,a 15.9% year-over-year decrease.

TheADT (average daily tickets)was 106,decreasedfrom120in the thirdquarter of 2023.

The ADS (average daily sales per store) was RMB4,891,a decrease of 25.6% from RMB6,570 in the third quarter of 2023.

Our hotel business improved in the third quarter over the first two quarters of this year as the economy continued to recover. Travel consumption returned to a more normal pattern following last year's surge,which has influenced year-over-year comparisons. We are back to a more positive environment,focusing on growing our pipeline and upgrading numerous hotels across our portfolio. We are confident that we are on the right track and will benefit from the ongoing stimulus measures implemented by the government.

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

Quarter Ended

September

30,2023

September

30,2023

September

30,2023

RMB

RMB

RMB

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated revenues

151,839,044

80,358,490

49,624

232,247,158

Franchised-and-managed

revenues

186,043,016

4,070,541

-

190,113,557

Wholesales and others

1,168,017

37,355,462

-

38,523,479

Total revenues

339,050,077

121,784,493

49,624

460,884,194

Quarter Ended

September

30,2024

September

30,2024

RMB

RMB

RMB

RMB

US$

Hotel

Restaurant

Elimination

Total

Total

Revenues

Leased-and-operated

revenues

118,159,125

41,117,277

-

159,276,402

22,696,706

Franchised-and-managed

revenues

167,928,127

1,757,933

-

169,686,060

24,180,070

Wholesales and others

796,488

27,766,790

(544,290)

28,018,988

3,992,674

Total revenues

286,883,740

70,642,000

(544,290)

356,981,450

50,869,450

Nine Month Ended

September

30,2023

RMB

RMB

RMB

RMB

Hotel

Restaurant

Elimination

Total

Revenues

Leased-and-operated

revenues

365,402,970

248,698,564

(1,075,555)

613,025,979

Franchised-and-managed

revenues

533,460,017

7,235,800

-

540,695,817

Wholesales and others

3,393,596

97,978,792

-

101,372,388

Total revenues

902,256,583

353,913,156

(1,555)

1,255,094,184

Nine Month Ended

September

30,2024

RMB

RMB

RMB

RMB

US$

Hotel

Restaurant

Elimination

Total

Total

Revenues

Leased-and-operated

revenues

346,552,738

130,792,112

-

477,344,850

68,021,097

Franchised-and-managed

revenues

476,898,409

5,527,686

-

482,426,095

68,745,169

Wholesales and others

2,881,694

77,272,388

(1,004,493)

79,149,589

11,278,726

Total revenues

826,332,841

213,592,186

(1,493)

1,038,920,534

148,044,992

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

Hotel revenueswere RMB286.9million (US$40.9million),a 15.4% year-over-year decreasedue toa 13.6%year-over-year decrease in Revparand the closure of 6L&O hotels inthe third quarterdue to lease expiration and strategicreviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues wereRMB70.6million (US$10.1million),a 42.0% year-over-year decrease,mainly due to lower ADS and the decrease in the number of L&O stores. By the end of the third quarter,we had completed the strategic transformation of our business model.

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

Total revenues from leased-and-operated,or L&O,hotelsand restaurantswere RMB159.3million (US$22.7million)[1],a 31.4% year-over-year decrease.

Total revenues from L&Ohotels were RMB118.2million (US$16.8million)[1],a 22.2% year-over-year decrease. The decrease was primarily attributable to an7.5%year-over-year decrease in the thirdquarter RevPAR of L&O hotels,the closing of6L&O hotels,and a reduction in sublease revenues mainly due to the disposal of a property.

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

Total revenues from L&O hotels and restaurants for the first nine monthsof 2024wereRMB477.3 million(US$68.0million)[1],a 22.1% year-over-year decrease.

Total revenues from franchised-and-managed,or F&M,hotelsand restaurantswere RMB169.7 million (US$24.2 million),a 10.7% year-over-year decrease.

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

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

Total revenues from F&M hotels and restaurants for the first nine monthsof 2024wereRMB482.4million (US$68.7million)[1],a 10.8% year-over-year decrease.

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

Total revenues from wholesale and others for the first nine months of 2024 wereRMB79.1 million (US$11.3 million),a 21.9% year-over-year decrease.

Total operating costs and expenses

Quarter Ended

September

30,2023

RMB

RMB

RMB

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and

expenses

Operating costs

159,582

87,814,484

49,623

247,689

Selling and marketing

expenses

14,277,225

12,026,085

-

26,303,310

General and administrative

expenses

26,655,780

11,858,500

-

38,514,280

Other operating expenses

180,515

120,654

-

301,169

Other general expenses

11,322,509

-

-

11,509

Total operating costs and

expenses

212,356,611

111,819,723

49,623

324,225,957

Quarter Ended

September

30,2024

RMB

RMB

RMB

RMB

US$

Hotel

Restaurant

Elimination

Total

Total

Operating costs and

expenses

Operating costs

152,796

53,365,650

(475,648)

205,798

29,236,320

Selling and marketing

expenses

12,899,411

2,942

(68,642)

15,712,711

2,239,043

General and

administrative

expenses

35,309,079

7,023,449

-

42,528

6,032,337

Other operating

expenses

1,363,201

654,777

-

2,017,978

287,560

Other general

expenses

-

-

-

-

-

Total operating costs

and expenses

201,850,487

63,925,818

(544,290)

265,232,015

37,795,260

Nine Month Ended

September

30,2023

RMB

RMB

RMB

RMB

Hotel

Restaurant

Elimination

Total

Operating costs and

expenses

Operating costs

444,284,960

292,122,643

(560,465)

735,847,138

Selling and marketing

expenses

39,115,830

21,411,730

-

60,560

General and administrative

expenses

117,191,327

33,197,310

-

150,388,637

Other operating expenses

1,024,111,308

-

8,135,387

Other general expenses

27,296,093

-

-

27,093

Total operating costs and

expenses

628,912,289

353,842,991

(560,465)

982,194,815

Nine Month Ended

September

30,2024

RMB

RMB

RMB

RMB

US$

Hotel

Restaurant

Elimination

Total

Total

Operating costs and

expenses

Operating costs

441,888,078

170,273

(916,517)

611,613,834

87,154,274

Selling and marketing

expenses

41,576,925

8,473,078

(87,975)

49,962,028

7,119,532

General and

administrative

expenses

128,706,277

22,802,128

-

151,508,405

21,589,775

Other operating

expenses

2,301,445

2,136,726

-

4,438,171

632,434

Other general

expenses

11,756,531

-

-

11,531

1,675,292

Total operating costs

and expenses

626,229,256

204,054,205

(1,492)

829,969

118,171,308

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

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

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

For the first nine months of 2024,operating costs wereRMB611.6 million (US$87.2 million)[1],a 16.9% decrease.

Selling and marketing expenseswere RMB15.7 million (US$2.2million)[1],a40.3% year-over-year decrease.

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

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

For the first nine months of 2024,selling and marketing expenses wereRMB50.0 million(US$7.1 million)[1],a 17.5% decrease.

General and administrative,or G&A expenseswere RMB42.3 million (US$6.0 million)[1],a 9.9% year-over-year increase.

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

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

General and administrative expenses for the first nine months of 2024 wereRMB151.5 million(US$21.6 million)[1],a 0.7% year-over-year increase.

Other general expenses were nil for this quarter,andfor the first nine months of 2024 wereRMB11.8 million(US$1.7 million)[1],a 56.9% year-over-year decrease.

Gross profitwas RMB151.8million (US$21.6million)[1],a year-over-year decrease of28.8%. Gross margin was42.5%,compared to 46.2% a year ago. The gross profit of the hotel business was RMB134.6million(US$19.2 million)[1],an24.9% year-over-year decrease.The gross profit of the restaurant business was RMB17.3million(US$2.5million)[1],a 49.1% year-over-year decrease.

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

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

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

Income from operations for the first nine months of 2024 wasRMB263.1 million(US$37.5 million)[1]compared to income from operations ofRMB288.7 millionin 2023,with a margin of 25.3%.

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

Net income of the hotel business was RMB58.6million (US$8.4million)[1],compared to a net incomeof RMB108.5million in the thirdquarter of 2023,and net margin was20.4%.

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

Net income for the first nine monthsof 2024was RMB184.8 million (US$26.3million)[1],compared to a net incomeofRMB 251.9millionin 2023,and net margin was 17.8%.

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

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

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

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

Earnings per American Depositary Share,or ADS,(basic and diluted)were RMB0.65(US$0.09)[1],decreased fromRMB1.15one year ago.

Earnings per American Depositary Share,(basic and diluted)for the first nine monthsof 2024 were RMB1.83(US$0.26)[1],decreased fromRMB2.52one year ago.

Core net income per ADS (basic and diluted) (non-GAAP)was RMB0.92 (US$0.13)[1],decreasedfrom RMB1.25a year ago.

Core net income per ADS (basic and diluted) (non-GAAP)wasRMB2.21(US$0.31)[1]for the first nine monthsof 2024,andecrease fromRMB2.41a year ago.

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

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

Guidance

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

Conference Call

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

Dial-in numbers for the live conference call are as follows:

International

1-412-902-4272

Mainland China

4001-201-203

US

1-888-346-8982

Hong Kong

800-905-945 or 852-3018-4992

Singapore

800-120-6157

Participants should ask to join the GreenTree call,please dial in approximately 10 minutes before the scheduled time of the call.

A telephone replay of the conference call will be available after the conclusion of the live conference call until november 28,2024.

Dial-in numbers for the replay are as follows:

International Dial-in

1-412-317-0088

U.S. Toll Free

1-877-344-7529

Canada Toll Free

855-669-9658

Passcode:

5184244

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

Use of Non-GAAP Financial Measures

We believe that Adjusted EBITDA and core net income,as we present them,are useful financial metrics to assess our operating and financial performance before the impact of investing and financing transactions,income taxes and certain non-core and non-recurring items in our financial statements.

The presentation of Adjusted EBITDA and core net income should not be construed as an indication that our future results will be unaffected by other charges and gains we consider to be outside the ordinary course of our business.

The use of Adjusted EBITDA and core net income has certain limitations because it does not reflect all items of income and expenses that affect our operations. Items excluded from Adjusted EBITDA and core net income are significant components in understanding and assessing our operating and financial performance. Depreciation and amortization expense for various long-term assets,income tax and share-based compensation have been and will be incurred and are not reflected in the presentation of Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally,Adjusted EBITDA and core net income do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation and amortization,interest expense/income,gains/losses from investments in equity securities,income tax expenses,share-based compensation,share of loss in equity investees,government subsidies and other relevant items both in our reconciliations to the corresponding U.S. GAAP financial measures and in our consolidated financial statements,all of which should be considered when evaluating our performance.

The terms Adjusted EBITDA and core net income are not defined under U.S. GAAP,and Adjusted EBITDA and core net income are not measures of net income,operating income,operating performance or liquidity presented in accordance with U.S. GAAP. When assessing our operating and financial performance,you should not consider this data in isolation or as a substitute for our net income,operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition,our Adjusted EBITDA and core net income may not be comparable to Adjusted EBITDA and core net income or similarly titled measures utilized by other companies since such other companies may not calculate Adjusted EBITDA and core net income in the same manner as we do.

Reconciliations of the Company's non-GAAP financial measures,including Adjusted EBITDA and core net income,to the consolidated statement of operations information are included at the end of this press release.

About GreenTree Hospitality Group Ltd.

GreenTree Hospitality Group Ltd. ("GreenTree" or the "Company") (NYSE: GHG) is a leading hospitality and restaurant management group in China.As of September30,GreenTree had a total number of 4,336hotels and 182 restaurants. In 2023,HOTELS magazine ranked GreenTree 11th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS' 225. GreenTree was the fourth largest hospitality company in China in 2023according to the China Hospitality Association. In 2023,GreenTree completed its acquisition of Da Niang Dumplings and Bellagio,two leading restaurant chain businesses in China.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale,up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base,expansive booking network,superior system management with moderate charges,and fully supported by its operating departments including Decoration,Engineering,Purchasing,Operation,IT and Finance,GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort,style and value.

For more information on GreenTree,please visithttp://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

September 30

September 30

2023

2024

2024

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

765,547,547

1,513,020,988

215,603,766

Restricted cash

6,906

7,240,598

1,031,777

Short-term investments

417,711,617

64,034

9,125

Investments in equity securities

26,076,169

22,798,811

3,248,805

Accounts receivable,net of

allowance

123,887,879

112,807,834

16,074,988

Amounts due from related parties

19,781

17,890,534

2,549,381

Inventories

20,462,490

6,423,582

915,353

Other current assets

117,047,122

125,926,677

17,944,408

Loans receivable,net

129,521,094

79,569,204

11,338,521

Total current assets

1,626,759,605

1,885,742,262

268,716,124

Non-current assets:

Amounts due from a related party

110,000,000

110,000

15,674,875

Restricted cash

19,476,259

19,397,031

2,764,055

Long-term time deposits

63,340,000

285,570,000

40,693,399

Loans receivable,net

70,690,305

43,241

6,430

Property and equipment,net

814,949,026

634,632

90,469,909

Intangible assets,net

117,720,693

114,380,472

16,299,087

Goodwill

177,082,468

177,468

25,234,050

Long-term investments

184,758,800

188,946,438

26,924,652

Operating lease right-of-use

assets

1,535,330,762

1,353,671

192,916,050

Other assets

104,725,600

106,200,135

15,133,398

Deferred tax assets

241,965,360

180,650,424

25,479

TOTAL ASSETS

5,066,878

5,099,812,774

726,717,508

LIABILITIES AND EQUITY

Current liabilities:

Long-term bank loans,current

portion

200,000

-

-

Short-term bank loans

116,800,000

400,000

57,000

Accounts payable

73,126,677

45,619,837

6,500,775

Advance from customers

22,097

21,258,689

3,029,339

Amounts due to related parties

16,310,293

15,694,608

2,464

Salary and welfare payable

86,096

74,484,735

10,990

Deferred revenue

186,281,838

197,495,166

28,142,836

Accrued expenses and other

current liabilities

459,832,717

493,341

70,221

Income tax payable

112,782,712

124,691,079

17,768,337

Dividends payable

-

70,176,000

10,000

Operating lease liabilities,current

267,536,846

183,847

26,186,281

Total current liabilities

1,341,596,276

1,226,727,302

174,243

Long-term bank loans

56,000

256,400,000

36,708

Deferred revenue

207,905,769

182,882,796

26,060,590

Other long-term liabilities

111,748

117,713,049

16,773,975

Operating lease liabilities,

non-current

1,391,909,309

1,300,009,022

185,249,804

Deferred tax liabilities

94,495

54,834

7,709,165

Unrecognized tax benefits

382,125,786

371,085,335

52,879,237

TOTAL LIABILITIES

3,586,765,383

3,917,338

500,016,722

Shareholders' equity:

Class A ordinary shares

222,587,070

222,070

31,718,404

Class B ordinary shares

115,534,210

115,210

16,463,493

Treasury Stock

(36,677,832)

(36,977,954)

(5,269,316)

Additional paid-in capital

1,680,349

1,335

239,425,777

Retained earnings (Accumulated

losses)

(568,339,799)

(452,428,018)

(64,470,477)

Accumulated other

comprehensive income

28,401,282

26,125

3,813,145

Total GreenTree Hospitality

Group Ltd. shareholders' equity

1,442,218,280

1,555,668,768

221,681,026

Non-controlling interests

37,815,215

35,668

5,019,760

Total shareholders' equity

1,480,033,495

1,590,895,436

226,700,786

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY

5,508

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended

Nine Month Ended

September

30,2024

September

30,2024

RMB

RMB

US$

RMB

RMB

US$

Revenues

Leased-and-operated

revenues

232,158

159,706

613,979

477,097

Franchised-and-

managed

revenues

190,557

169,070

540,817

482,169

Wholesales and

others

38,479

28,674

101,388

79,726

Total revenues

460,194

356,450

1,184

1,992

Operating costs

and expenses

Operating costs

(247,689)

(205,798)

(29,320)

(735,138)

(611,834)

(87,274)

Selling and

marketing

expenses

(26,310)

(15,711)

(2,043)

(60,560)

(49,028)

(7,532)

General and

administrative

expenses

(38,280)

(42,528)

(6,337)

(150,637)

(151,405)

(21,775)

Other operating

expenses

(301,169)

(2,978)

(287,560)

(8,387)

(4,171)

(632,434)

Other general

expenses

(11,509)

-

-

(27,093)

(11,531)

(1,292)

Total operating

costs and

expenses

(324,957)

(265,015)

(37,260)

(982,815)

(829,969)

(118,308)

Other operating

income

1,022

14,654,068

2,088,188

15,806,939

53,422,304

7,612,617

Income from

operations

137,794,259

106,403,503

15,162,378

288,308

263,063,869

37,486,301

Interest income

and other,net

13,662,038

7,488,034

1,067,036

31,041,389

27,533

3,960

Interest expense

(3,740,491)

(116,161)

(16,553)

(13,137,021)

(4,485,219)

(639,139)

Gains (losses)

from investment

in equity

securities

365,577

10,015,229

1,427,159

(4,434,821)

(5,409,426)

(770,837)

Other income,net

1,779,998

(34,653,121)

(4,938,030)

42,246

(17,862,097)

(2,545,328)

Income before

income taxes

149,861,381

89,484

12,701,990

345,102,101

262,660

37,440,957

Income tax expense

(32,385,239)

(24,641)

(3,467,089)

(92,335,322)

(77,512,335)

(11,045,419)

Income (loss)

before share of

gains in equity

investees

117,142

64,843

9,901

252,779

185,233,325

26,395,538

Share of

loss/(income) in

equity investees,

net of tax

(83,027)

405,064

57,721

(869,910)

(464,693)

(66,218)

Net income(loss)

117,115

65,211,907

9,292,622

251,896,869

184,632

26,329,320

Net loss/(income)

attributable to

non-controlling

interests

227,170

288,968

41,178

5,304,468

1,319,147

187,977

Net income

attributable to

ordinary

shareholders

117,620,285

65,875

9,333,800

257,201,337

186,087,779

26,517,297

Net earnings per

share

Class A ordinary

share-basic and

diluted

1.15

0.65

0.09

2.52

1.83

0.26

Class B ordinary

share-basic and

diluted

1.15

0.65

0.09

2.52

1.83

0.26

Net earnings per

ADS

Class A ordinary

share-basic and

diluted

1.15

0.65

0.09

2.52

1.83

0.26

Class B ordinary

share-basic and

diluted

1.15

0.65

0.09

2.52

1.83

0.26

Weighted

average shares

outstanding

Class A ordinary

share-basic and

diluted

67,416,046

66,778,809

66,809

67,780,008

66,008

Class B ordinary

share-basic and

diluted

34,762,909

34,909

Other

comprehensive

income,net of

tax

Foreign currency

translation

adjustments

(68,502)

6,594

921,055

927,605

(1,157)

(234,006)

Unrealized

gains(loss) on

available-for-sale

investments,net

of tax

Comprehensive

income,net of

tax

117,324,613

71,501

10,213,677

252,824,474

183,475

26,095,314

Comprehensive

loss/(income)

attributable to

non-controlling

interests

6,379,505

288,977

Comprehensive

income (loss)

attributable to

ordinary

shareholders

123,704,118

71,964,469

10,254,855

258,128,942

184,445,622

26,283,291

GreenTree Hospitality Group Ltd.

Unaudited Hotel Business Results

Quarter Ended

Nine Month Ended

September

30,2024

RMB

RMB

US$

RMB

RMB

US$

Revenues

Leased-and-operated

revenues

151,044

118,125

16,837,541

365,970

346,738

49,383,370

Franchised-and-

managed

revenues

186,016

167,127

23,929,567

533,017

476,409

67,957,480

Others

1,017

796,488

113,499

3,596

2,694

410,638

Total revenues

339,077

286,740

40,880,607

902,583

826,841

117,751,488

Operating costs

and expenses

Hotel operating

costs

(159,582)

(152,796)

(21,699,555)

(444,960)

(441,078)

(62,968,547)

Selling and

marketing

expenses

(14,225)

(12,411)

(1,838,151)

(39,830)

(41,925)

(5,664)

General and

administrative

expenses

(26,780)

(35,079)

(5,504)

(117,327)

(128,277)

(18,498)

Other operating

expenses

(180,515)

(1,201)

(194,255)

(1,079)

(2,445)

(327,953)

Other general

expenses

(11,292)

Total operating

costs and

expenses

(212,611)

(201,487)

(28,763,465)

(628,289)

(626,256)

(89,954)

Other operating

income

796,141

14,496,942

2,065,798

14,926

51,347,340

7,316,937

Income from

operations

127,489,607

99,530,195

14,182,940

287,932,220

251,450,925

35,831,471

Interest income

and other,958

7,287

1,064,080

30,298

27,376,005

3,901,050

Interest expense

(3,677)

(115,851)

(16,509)

(10,629)

(4,909)

(639,094)

Gains (losses)

from investment

in equity

securities

365,821)

(769,747)

(109,688)

Other income,

net

2,150,576

(34,647,093)

(4,937,171)

42,846,940

(17,054)

(2,556,152)

Income before

income taxes

140,516,041

82,767

11,499

346,035,008

255,634,220

36,587

Income tax

expense

(31,801)

(24,053,937)

(3,659)

(87,126)

(76,155,862)

(10,852,124)

Income (loss)

before share of

gains in equity

investees

108,627,240

58,195,830

8,840

258,414,882

179,478,358

25,575,463

Share of

loss/(income) in

equity investees,218)

Net

income(loss)

108,544,213

58,600,894

8,350,561

257,972

179,013,665

25,509,245

GreenTree Hospitality Group Ltd.

Unaudited Restaurant Business Results

Quarter Ended

Nine Month Ended

September

30,2024

RMB

RMB

US$

RMB

RMB

US$

Revenues

Leased-and-operated

revenues

80,490

41,277

5,859,165

248,564

130,112

18,637,727

Franchised-and-

managed

revenues

4,541

1,933

250,503

7,800

5,686

787,689

Wholesales and

others

37,462

27,790

3,956,736

97,792

77,388

11,011,227

Total revenues

121,493

70,000

10,404

353,156

213,186

30,436,643

Operating costs

and expenses

Restaurant

operating costs

(87,484)

(53,650)

(7,604,544)

(292,643)

(170,273)

(24,329)

Selling and

marketing

expenses

(12,085)

(2,942)

(410,673)

(21,730)

(8,078)

(1,207,404)

General and

administrative

expenses

(11,500)

(7,449)

(1,833)

(33,310)

(22,128)

(3,277)

Other operating

expenses

(120,654)

(654,777)

(93,305)

(7,308)

(2,726)

(304,481)

Other general

expenses

-

-

-

-

-

-

Total operating

costs and

expenses

(111,723)

(63,818)

(9,109,355)

(353,991)

(204,205)

(29,077,491)

Other operating

income

339,881

157,126

22,390

1,219,013

2,964

295,680

Income from

operations

10,651

6,873,308

979,439

1,289,178

11,945

1,832

Interest income

and other,net

147,080

20,746

2,956

454,091

62,528

8,910

Interest expense

(735,814)

(310)

(44)

(2,392)

(310)

(44)

Gains (losses)

from investment

in equity

securities

-

-

-

-

-

-

Other income,net

(370,578)

(6,028)

(859)

79,306

(33,122)

(4,720)

Income before

income taxes

9,345,339

6,716

981,492

(417,817)

11,041

1,658,978

Income tax

expense

(496,438)

(276,704)

(39,430)

(4,843,969)

(1,473)

(193,296)

Income (loss)

before share of

gains in equity

investees

8,848,901

6,611,012

942,062

(5,261,786)

10,285,568

1,465,682

Share of

loss/(income) in

equity investees,

net of tax

-

-

-

-

-

-

Net

income(loss)

8,682

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

Quarter Ended

Nine Month Ended

September

30,2024

RMB

RMB

US$

RMB

RMB

US$

Operating

activities:

Net (loss)

income

117,114

65,908

9,623

251,867

184,634

26,320

Adjustments to

reconcile net

income to net

cash provided

by operating

activities:

Depreciation

and

amortization

32,167,798

28,959

4,429

92,487,725

89,170,635

12,714

Impairment of

long-lived

assets

-

-

-

2,900,000

-

-

Share of

(gains) losses

in equity

method

investments

83,027

(405,064)

(57,721)

869,910

464,693

66,218

Noncash lease

expense

58,753

68,398,682

9,746,734

193,844

205,628,129

29,774

Loss from

disposal of a

subsidiary

-

(4,221)

(701,838)

1,223,952

(5,903)

(821,492)

Interest income

(2,838)

(1,199,222)

(170,888)

(3,683,748)

(6,109)

(914,288)

Bad debt

expenses

18,349,856

12,615,651

1,797,716

37,330

34,723

4,641

(Gains) losses

and impairment

on equity

securities held

(365,577)

(10,229)

(1,159)

4,821

5,426

770,837

Loss (gains) on

disposal of

property,plant and

equipment

10,173

332,997

47,452

238,014

(24,783,238)

(3,531,583)

Foreign

exchange

(gains) losses

819,037

7,449,403

1,061,531

(269,162)

(1,314,548)

(187,322)

Share-based

compensation

(11,998)

15,662

2,232

16,594

46,986

6,695

Accounts

receivable

(18,632,382)

(5,153)

(764,243)

(13,688)

(13,092,304)

(1,865,638)

Prepaid rent

(129,472)

-

-

(129,472)

-

-

Inventories

637,459

223,113

31,793

8,185

15,112,676

2,153,539

Amounts due

from related

parties

3,930,789

2,188,419

311,847

5,559,317

2,246

354,572

Other current

assets

(5,238,709)

(6,209)

(902,048)

(40,745)

(1,245,258)

(177,448)

Other assets

1,942,473

(2,775,493)

(395,505)

7,889,240

(1,474,535)

(210,120)

Accounts

payable

(19,131,574)

(7,061)

(1,105,515)

(29,048,734)

(20,318,304)

(2,335)

Amounts due to

related parties

5,227

788,969

112,427

3,373,836

(615,685)

(87,734)

Salary and

welfare payable

(1,443,289)

(10,164,582)

(1,448,441)

5,575

(11,588,641)

(1,651,368)

Deferred

revenue

(18,576)

17,893,291

2,774

(24,689)

(13,809,645)

(1,967,859)

Advance from

customers

5,742

(706,088)

(100,617)

1,920

(1,123,375)

(160,080)

Accrued

expenses and

other current

liabilities

20,585,844

35,754,773

5,014

88,392,990

32,157

4,818

Income tax

payable

(638,107)

20,169,690

2,874,158

50,644,167

11,908,367

1,929

Unrecognized

tax benefits

11,800

(4,844,361)

(690,316)

43,199

(11,040,451)

(1,573,252)

Operating lease

liabilities

(54,348,610)

(80,036,795)

(11,405,152)

(179,778)

(189,805,890)

(27,123)

Other long-term

liabilities

(159,947)

6,321,131

900,754

(8,241,312)

(1,998,698)

(284,812)

Deferred taxes

(911,201)

7,357

1,098,860

(32,243,691)

21,657

3,089,041

Net cash

provided by

operating

activities

154,812

139,242,527

19,841,901

467,467

299,745

42,644

Investing

activities:

Purchases of

property,plant

and equipment

(833,691)

(8,771,704)

(1,958)

(72,566,925)

(28,630)

(4,127,569)

Purchases of

intangible

assets

185,683

-

-

(166,598)

-

-

Proceeds from

disposal of

property,plant

and equipment

(29,960)

451,660

64,361

14,666,721

140,184,760

19,976,168

Payment for

acquisition of

minority equity

-

966,000

137,654

-

-

-

Purchases of a

long-term

investment

-

(6,000)

(968,992)

-

(6,992)

Repayment of

Advances for

acquisitions

-

-

-

-

-

-

Purchases of

short-term

investments

(150,860,480)

-

-

(202,230,480)

-

-

Proceeds from

short-term

investments

27,463

-

-

160,854,647

419,362,037

59,612

Increase of

long-term time

deposits

-

-

-

-

(222,000)

(31,667,522)

Proceeds from

disposal of

subsidiaries

-

1,307,500

186,317

37,000

2,500

400,066

Loan to related

parties

-

-

-

-

(270,000)

(38,475)

Loan to third

parties

-

-

-

-

(1,000)

(170,999)

Repayment of

loan from third

parties

135,930

304,111

43,335

14,553,007

5,000

840,743

Loan to

fanchisees

(6,058,982)

(4,000)

(577,120)

(16,578)

(5,000)

(805,119)

Repayment

from

franchisees

35,246

16,580

2,746

96,818

67,466,801

9,942

Net cash(used

in) provided by

investing

activities

(95,791)

(102,853)

(14,657)

33,612

370,605,468

52,810,855

Financing

activities:

Distribution to

the

shareholders

-

-

-

-

(760,321)

(108,345)

Repurchase of

ordinary shares

-

(300,122)

(42,767)

-

(300,767)

Repayment of

short-term

loans

(450,000)

-

-

(450,000)

(117,000)

(16,672,367)

Proceeds from

bank loans

271,000

-

-

117,000

200,000

28,499,772

Capital

contribution

from

non-controlling

interest holders

(117,000)

(966,000)

(137,654)

-

(966,654)

Net cash

provided by

(used in)

financing

activities

(296,000)

(1,266,122)

(180,421)

(333,000)

80,973,557

11,538,639

Effect of

exchange rate

changes on

cash and cash

equivalents and

restricted cash

(395,858)

142,062

20,244

(52,807)

(2,657,865)

(378,743)

Net (decrease)

increase in

cash and cash

equivalents

(236,933,837)

138,614

19,067

167,366,272

748,057,905

106,597,395

Cash and cash

equivalents at

the beginning of

the period

1,138,311

1,643,004

167,581,976

734,629,202

791,712

112,199

Cash and cash

equivalents at

the end of the

period

901,995,474

1,539,617

187,043

901,617

219,399,594

GreenTree Hospitality Group Ltd.

Unaudited Reconciliation of GAAP and Non-GAAP Results

Quarter Ended

Nine Month Ended

September

30,2023

September

30,2024

RMB

RMB

US$

RMB

RMB

US$

Net income

117,868

184,320

Deduct:

Other operating

income

1,022

14,068

2,188

15,939

53,304

7,617

Interest income and

other,net

13,038

7,034

1,036

31,389

27,533

3,960

Gains from

investment in

equity

securities

365,577

10,229

1,159

-

-

-

Share of gain in

equity investees,

net of tax

-

405,064.00

57,721.00

-

-

-

Other income,net

1,998

-

-

42,246

-

-

Add:

Other operating

expenses

301,169

2,978

287,560

8,387

4,171

632,434

Other general

expenses

11,509

-

-

27,093

11,531

1,292

Income tax

expenses (benefits)

32,239

24,641

3,089

92,322

77,335

11,419

Share of loss in

equity investees,

net of tax

83,027

-

-

869,910

464,693

66,218

Interest expenses

3,491

116,161

16,553

13,021

4,219

639,139

Depreciation and

amortization

32,798

28,959

4,429

92,725

89,635

12,714

Losses from

investment in equity

securities

-

-

-

4,821

5,426

770,837

Other expense,net

-

34,121

4,030

-

17,097

2,328

Adjusted EBITDA

(Non-GAAP)

180,713

122,458,373

17,180

400,818,573

315,006,904

44,124

Quarter Ended

Nine Month Ended

September

30,320

Deduct:

Government

subsidies (net of

25% tax)

-

4,374,750

623,397

6,671,305

4,636

690,355

Gains from

investment in

equity securities

(net of 25% tax)

274,183

7,511,422

1,369

-

-

-

Other income (net

of 25% tax)

1,334,998

-

-

32,684

-

-

Add:

Share-based

compensation

(11,998)

15,662

2,232

16,594

46,986

6,695

Losses from

investments in

equity securities

(net of 25% tax)

-

-

-

3,326,116

4,070

578,128

Other expense(net

of 25% tax)

-

25,989,841

3,703,523

-

13,396,573

1,996

One-time fees and

expenses

220,916

658,981

93,904

2,181,773

1,989

244,242

Other general

expenses

11,292

Income tax

expenses related to

dividend

distribution

-

13,240

1,923,199

-

13,199

Core net income

(Non-GAAP)

127,315,361

93,460

13,714

245,851,454

224,387

31,975,517

Core net income

per ADS

(Non-GAAP)

Class A ordinary

share-basic and

diluted

1.25

0.92

0.13

2.41

2.21

0.31

Class B ordinary

share-basic and

diluted

1.25

0.92

0.13

2.41

2.21

0.31

Hotel Operational Data

September30,

2023

September 30,

2024

Total hotels in operation:

4,185

4,336

Leased and owned hotels

64

56

Franchised hotels

4,121

4,280

Total hotel rooms in operation

307,010

316,461

Leased and owned hotels

7,093

6,367

Franchised hotels

299,917

310,094

Number of cities

354

351

Quarter Ended

September 30,

2024

Occupancy rate (as a percentage)

Leased-and-owned hotels

79.0%

75.9%

Franchised hotels

81.3%

74.6%

Blended

81.2%

74.6%

Average daily rate (in RMB)

Leased-and-owned hotels

268

258

Franchised hotels

190

179

Blended

192

181

RevPAR (in RMB)

Leased-and-owned hotels

212

196

Franchised hotels

155

133

Blended

156

135

Number of Hotels in Operation

Number of Hotel Rooms in

Operation

September

30,2023

September

30,2024

September

30,2024

Mid-to-up-scale

455

527

43,485

49,763

GreenTree Eastern

224

234

23,639

25,245

Deepsleep Hotel

7

7

534

534

Gem

61

91

5,372

8,178

Gya

71

73

5,899

6,071

Vx

92

104

8,041

9,109

Others

-

18

-

626

Mid-scale

2,965

2,965

230,655

230,580

GreenTree Inn

2,282

2,336

182,041

184,086

GT Alliance

552

498

39,379

37,366

GreenTree Apartment

20

23

1,308

1,495

Vatica

111

108

7,927

7,633

Others

-

-

-

-

Economy hotels

765

844

32,870

36,118

Shell

765

844

32,870

36,118

Others

-

-

-

-

Total

4,336

307,461

Restaurant Operational Data

September30,

2024

Total restaurantsin operation:

202

182

Leased and owned restaurants

51

22

Franchised restaurants

151

160

Number of cities

66

53

Da Niang Dumplings

167

159

Bellagio

35

23

Quarter Ended

2023Q3

2024 Q3

ADT

Leased-and-owned restaurants

158

188

Franchised restaurants

101

89

Blended

120

106

AC (in RMB)

Leased-and-owned restaurants

87

100

Franchised restaurants

40

33

Blended

55

46

ADS (in RMB)

Leased-and-owned restaurants

13,785

18,860

Franchised restaurants

4,015

2,950

Blended

6,570

4,891

For more information,please contact:

GreenTree

Ms. Selina Yang

Phone: +86-158-2166-6251

E-mail:ir@998.com

Mr. Maple Miao

Phone: +86-181-0184-0639

E-mail:ir@998.com

Christensen

In Shanghai

Mr. Jerry Xu

Phone: +86-138-1680-0706

E-mail:jerry.xu@christensencomms.com

InHong Kong

Ms.Karen Hui

Phone: +852-9266-4140

E-mail:karen.hui@christensencomms.com

In the US

Ms.Linda Bergkamp

Phone: +1-480-614-3004

E-mail:linda.bergkamp@christensencomms.com