GreenTree Hospitality Group (GHG) Q2 2025 earnings summary

Executive summary

• Total revenues for the first half of 2025 declined 14.2% year-over-year to RMB585.1 million (US$81.7 million).

• Net income rose to RMB198.8 million (US$27.7 million) from RMB119.6 million in the prior year period.

• Adjusted EBITDA (non-GAAP) fell 22.2% year-over-year to RMB149.7 million (US$20.9 million).

• Core net income (non-GAAP) dropped 29.6% year-over-year to RMB92.1 million (US$12.9 million).

• Dividend of US$0.06 per ordinary share/ADS approved, payable to holders as of October 31, 2025.

Financial highlights

• Gross profit was RMB214.7 million (US$30.0 million), down 22.1% year-over-year; gross margin declined to 36.7% from 40.4%.

• Income from operations was RMB91.5 million (US$12.8 million), margin 15.6%.

• Earnings per ADS (basic and diluted) increased to RMB1.99 (US$0.28) from RMB1.19.

• Operating cash inflow was RMB104.8 million (US$14.6 million); investing cash inflow RMB77.0 million (US$10.8 million), mainly from Argyle divestment.

• Cash and equivalents, restricted cash, short-term investments, and time deposits totaled RMB2,034.9 million (US$284.1 million) as of June 30, 2025.

Outlook and guidance

• Revenue guidance for the hotel business revised to -10% to -13% year-over-year, reflecting closures of certain leased-and-operated hotels.