GreenTree (NYSE: GHG) okays $5m buyback as 2026 sales decline

Rhea-AI Filing Summary

GreenTree Hospitality Group Ltd. (NYSE: GHG) reported weaker top-line results but resilient profitability for the second quarter of 2026. Total revenues were RMB235.1 million (US$34.7 million), an 18.7% year-over-year decline, with hotel revenues down 16.2% and restaurant revenues down 33.5%, driven by lower RevPAR/ADS and net closures of leased-and-operated hotels and stores.

Despite the revenue pressure, operating efficiency improved. Gross profit was RMB88.6 million, down 16.6% year over year, but gross margin rose to 37.7% from 36.7%. Income from operations was RMB48.2 million with a 20.5% margin, nearly flat versus last year as operating costs and G&A fell sharply. Adjusted EBITDA (non‑GAAP) was RMB68.9 million, down 12.1%, yet the Adjusted EBITDA margin increased to 29.3%. Core net income (non‑GAAP) grew 4.4% to RMB47.2 million, lifting core net margin to 20.1%.

Reported net income dropped to RMB21.3 million from RMB160.0 million a year ago, when results were boosted by one-time gains from the Argyle divestment and securities revaluation. For the first six months of 2026, revenues fell 16.5% to RMB462.8 million, but income from operations increased to RMB76.9 million and Adjusted EBITDA to RMB122.1 million. Cash, restricted cash, short-term investments, investments in equity securities and time deposits totaled RMB2,000.3 million (US$294.8 million) as of June 30, 2026. The company maintains guidance for a 10%–15% full-year revenue decline in its hotel business and announced a US$5 million share repurchase authorization while progressing on flagship hotel projects in Malaysia and Shanghai.

Positive

• Despite an 18.7% revenue drop, income from operations held at RMB48.2 million with a strong 20.5% margin, supported by significantly lower operating costs and G&A.
• Adjusted EBITDA (non‑GAAP) margin improved to 29.3% from 27.1%, and core net income (non‑GAAP) increased 4.4% to RMB47.2 million, raising core net margin to 20.1% from 15.6%.
• For the first six months of 2026, income from operations increased to RMB76.9 million from RMB60.5 million, and Adjusted EBITDA (non‑GAAP) rose to RMB122.1 million, up 3.5% year over year.
• The company reported substantial liquidity with total cash, restricted cash, short-term investments, investments in equity securities and time deposits of RMB2,000.3 million (US$294.8 million) as of June 30, 2026.
• A US$5 million share repurchase program was approved, authorizing repurchases of Class A ordinary shares over two years via various transaction methods.
• Strategic expansion continues with a flagship hotel property opposite the Twin Towers in Malaysia handed over in July 2026 and a landmark Shanghai riverfront property expected to close by the end of Q3 2026.

Negative

• Total revenues fell to RMB235.1 million, an 18.7% year-over-year decline, with hotel revenues down 16.2% and restaurant revenues down 33.5%, reflecting weaker RevPAR/ADS and closures of leased-and-operated units.
• Reported net income in Q2 2026 declined sharply to RMB21.3 million from RMB160.0 million a year earlier, and first-half net income fell to RMB35.3 million from RMB167.8 million.
• Management maintains guidance that full-year 2026 hotel revenues are expected to decrease by 10%–15% year over year, indicating continued top-line pressure.
• Operational metrics weakened, with leased-and-owned hotel RevPAR down from RMB177 to RMB150 and blended hotel RevPAR down from RMB113 to RMB103; leased-and-owned restaurant ADS decreased from RMB18,931 to RMB16,081.

Filing Explained

The buyback is a maximum authorization, while Malaysia has been handed over and Shanghai remains conditional on closing procedures.

As a Form 6-K, this filing furnishes interim material information; its project disclosures place the Malaysia hotel property after handover in July 2026, while the Shanghai property remains before closing.

The share repurchase program authorizes purchases of up to US$5 million of Class A ordinary shares over two years, creating repurchase capacity rather than documenting a completed transaction.

Repurchases may occur through market, privately negotiated, block-trade or other permitted methods, subject to market conditions and applicable law; the board may suspend, modify or terminate the program.

For Shanghai, remaining closing procedures are expected before the end of the third quarter of 2026, subject to customary closing conditions, making that the named milestone for resolving the acquisition's current status.

Key Figures

Total revenues Q2 2026: RMB235,108,392 Income from operations Q2 2026: RMB48,240,659 Net income Q2 2026: RMB21,257,892 +5 more

8 metrics

Total revenues Q2 2026 RMB235,108,392 Quarter ended June 30, 2026; 18.7% year-over-year decrease

Income from operations Q2 2026 RMB48,240,659 Quarter ended June 30, 2026; margin 20.5%

Net income Q2 2026 RMB21,257,892 Quarter ended June 30, 2026; down from RMB159,985,388 in Q2 2025

Adjusted EBITDA Q2 2026 (non-GAAP) RMB68,877,605 Quarter ended June 30, 2026; margin 29.3%, down 12.1% year over year

Core net income Q2 2026 (non-GAAP) RMB47,166,135 Quarter ended June 30, 2026; 4.4% year-over-year increase, 20.1% margin

Total cash and investments RMB2,000,300,000 Cash, restricted cash, short-term investments, investments in equity securities and time deposits as of June 30, 2026

Guided hotel revenue change 2026 10%–15% decrease Expected full-year 2026 hotel revenue decline versus 2025

Hotels in operation 4,615 Total hotels as of June 30, 2026; up from 4,509 a year earlier

Key Terms

Adjusted EBITDA, core net income, RevPAR, leased-and-operated, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA (non-GAAP)[2] in the second quarter of 2026 was RMB68.9 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

core net income financial

"Core net income (non-GAAP)[3] in the second quarter of 2026 was RMB47.2 million"

Core net income is the company’s profit after taxes from its ordinary, ongoing business activities, excluding one-time gains, losses or unusual items. Think of it like a household’s regular salary minus one-off windfalls or repairs — it shows the steady earnings the business can be expected to produce. Investors use it to judge the company’s underlying performance and to compare profitability across periods without distortion from rare events.

RevPAR financial

"due to a 9.1% year-over-year decrease in RevPAR and a net closure of 13 L&O hotels"

RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.

leased-and-operated financial

"Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB95.9 million"

Leased-and-operated describes an asset or facility that a company rents from another party but also runs day-to-day itself — like leasing a storefront and staffing it under your own brand. For investors, this matters because the company gains operational control and revenue potential without the capital outlay of ownership, but also takes on operating costs and certain liabilities, affecting cash flow, margins and risk profile.

American Depositary Share financial

"Earnings per American Depositary Share, or ADS[4] (basic and diluted) were RMB0.21"

An American Depositary Share (ADS) is a U.S.-listed certificate that represents a specified number of shares in a foreign company, held by a custodian bank; it works like a receipt that allows U.S. investors to buy and trade foreign equity on American exchanges without dealing with another country’s markets. Investors care because ADSs make foreign stocks easier to access, improve liquidity and settlement in dollars, and can affect dividend payments, voting rights and regulatory oversight compared with buying the underlying foreign shares directly.

share repurchase program financial

"The Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to US$5 million"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

FAQ

How did GHG's total revenue perform in the second quarter of 2026?

Total revenue was RMB235.1 million (US$34.7 million), an 18.7% year-over-year decline. Hotel revenues were RMB204.6 million, down 16.2%, and restaurant revenues were RMB30.5 million, down 33.5%, mainly due to lower RevPAR/ADS and closures of leased-and-operated sites.

What was GreenTree (GHG)'s profitability in Q2 2026?

Income from operations was RMB48.2 million with a 20.5% margin. Net income was RMB21.3 million, down from RMB160.0 million a year earlier, when results benefited from a one-time Argyle divestment and fair value gains on securities.

How did GHG's non-GAAP metrics Adjusted EBITDA and core net income change?

Adjusted EBITDA (non‑GAAP) in Q2 2026 was RMB68.9 million, down 12.1% year over year, but margin improved to 29.3%. Core net income (non‑GAAP) rose 4.4% to RMB47.2 million, lifting core net margin to 20.1% from 15.6%.

What guidance did GreenTree (GHG) give for its 2026 hotel business?

The company maintained prior guidance that 2026 hotel revenues are expected to decrease by 10%–15% year over year, based on performance in the first half and current recovery trends.

What is GHG's cash and investment position as of June 30, 2026?

As of June 30, 2026, the company held RMB2,000.3 million (US$294.8 million) in total cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits.

Did GreenTree (GHG) announce a share repurchase program?

Yes. The Board approved a share repurchase program authorizing up to US$5 million of Class A ordinary shares to be repurchased over two years via open market, block trades, privately negotiated transactions or other permitted methods.

What key development projects is GHG pursuing in 2026?

The company received a Malaysian flagship hotel property opposite the Twin Towers in July 2026 and is finalizing acquisition of a landmark Huangpu River waterfront property in Shanghai, planned as a signature flagship hotel with a lifestyle center and corporate offices.

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Form 6-K: How Foreign Companies Report to the SEC →

Available on EDGAR 08/25/2026 - 07:43 AM Accepted by SEC EDGAR 08/25/2026 - 07:42 AM Learn about SEC filing dates

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER 

PURSUANT TO RULE 13a-16 OR 15d-16 

UNDER THE SECURITIES EXCHANGE ACT OF 1934

August 2026

Commission File Number: 001-38425

GreenTree Hospitality Group Ltd. 

(Registrant’s name)

3F, No. 1058 Yangshupu Road, Yangpu District, Shanghai, China.200082

People’s Republic of China 

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☒            Form 40-F   ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GREENTREE HOSPITALITY GROUP LTD.
	By:	/s/ Alex S. Xu
	Name:	Alex S. Xu
	Title:	Chairman and Chief Executive Officer

Date: August 24, 2026 

1

EXHIBIT INDEX

Exhibit No.		Description
99.1		GreenTree Hospitality Group Ltd. Reports Second Quarter of 2026 Financial Results

2

Exhibit 99.1

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

● Total revenues decreased by 18.7% year over year to RMB235.1 million (US$34.7 million)^[1].

● Income from operations was RMB48.2 million (US$7.1 million)^[1] compared to RMB49.2 million for the second quarter of 2025.

● Net income was RMB21.3 million (US$3.1 million)^[1] compared to RMB160.0 million for the second quarter of 2025.

● Core net income (non-GAAP)^[3] increased 4.4% year over year to RMB47.2 million (US$7.0 million)^[1].

SHANGHAI, August 24, 2026 /PRNewswire/ -- GreenTree Hospitality Group Ltd. (NYSE: GHG) (“GreenTree”, the “Company”, “we”, “us” and “our”), a leading hospitality and restaurant management group in China, today announced its unaudited financial results for the second quarter of 2026.

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

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

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

^[4] Each ADS represents one ordinary share.

1 / 16

Second Quarter of 2026 Operational Highlights

Hotels

● A total of 4,615 hotels with 330,029 hotel rooms were in operation as of June 30, 2026.

● The Company opened 18 hotels in the second quarter of 2026 and had a pipeline of 1,278 hotels contracted for or under development as of June 30, 2026.

● The average daily room rate was RMB157, a decrease of 5.3% from RMB166 in the second quarter of 2025.

● The occupancy rate was 65.2%, decreased from 67.9% in the second quarter of 2025.

● Revenue per available room, or RevPAR, was RMB103, a 9.1% year-over-year decrease.

Restaurants

● A total of 198 restaurants were in operation as of June 30, 2026.

● The AC (average check) was RMB36, a 15.5% year-over-year decrease.

● The ADT (average daily tickets) was 81, decreased from 85 in the second quarter of 2025.

● The ADS (average daily sales per store) was RMB2,893, a decrease of 20.3% from RMB3,629 in the second quarter of 2025.

Second Quarter of 2026 Financial Results

		Quarter Ended
		June 30, 2025				June 30, 2025				June 30, 2025				June 30, 2025
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			105,970,283				28,389,854				(207,413	)			134,152,724
Franchised-and-managed revenues			137,496,914				1,421,688				-				138,918,602
Wholesales and others			561,244				16,076,011				(443,807	)			16,193,448
Total revenues			244,028,441				45,887,553				(651,220	)			289,264,774

2 / 16

		Quarter Ended
		June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			77,613,926				18,246,301				-				95,860,227				14,128,049
Franchised-and-managed revenues			126,253,871				505,479				-				126,759,350				18,682,016
Wholesales and others			717,195				11,771,620				-				12,488,815				1,840,624
Total revenues			204,584,992				30,523,400				-				235,108,392				34,650,689

		Six Months Ended
		June 30, 2025				June 30, 2025				June 30, 2025				June 30, 2025
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Revenues
Leased-and-operated revenues			194,165,718				59,058,453				(207,413	)			253,016,758
Franchised-and-managed revenues			261,353,522				3,176,474				-				264,529,996
Wholesales and others			1,478,298				35,511,759				(443,807	)			36,546,250
Total revenues			456,997,538				97,746,686				(651,220	)			554,093,004

		Six Months Ended
		June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Revenues
Leased-and-operated revenues			152,151,688				38,268,277				-				190,419,965				28,064,430
Franchised-and-managed revenues			239,620,481				2,438,634				-				242,059,115				35,675,099
Wholesales and others			1,508,083				28,897,131				(39,176	)			30,366,038				4,475,400
Total revenues			393,280,252				69,604,042				(39,176	)			462,845,118				68,214,929

Total revenues were RMB235.1 million (US$34.7 million)^[1], an 18.7% year-over-year decrease.

Hotel revenues were RMB204.6 million (US$30.2 million)^[1], a 16.2% year-over-year decrease due to a 9.1% year-over-year decrease in RevPAR and a net closure of 13 L&O hotels since the second quarter of 2025 due to lease expiration and strategic reviews. The decrease was partially offset by revenues from new openings.

Restaurant revenues were RMB30.5 million (US$4.5 million)^[1], a 33.5% year-over-year decrease, mainly due to a 20.3% decrease in ADS and a net closure of 2 L&O stores since the second quarter of 2025 due to strategic reviews, offset by revenues from new F&M store openings.

Total revenues for the first six months of 2026 were RMB462.8 million (US$68.2 million)^[1], a 16.5% year-over-year decrease.

3 / 16

Total revenues from leased-and-operated, or L&O, hotels and restaurants were RMB95.9 million (US$14.1 million)^[1], a 28.5% year-over-year decrease.

Total revenues from L&O hotels were RMB77.6 million (US$11.4 million)^[1], a 26.8% year-over-year decrease. The decrease was primarily attributable to a 15.3% year-over-year decrease in the second quarter RevPAR of L&O hotels, a net closure of 13 L&O hotels since the second quarter of 2025, and the reduction in sublease revenues resulting from the closure of L&O hotels.

Total revenues from L&O restaurants were RMB18.2 million (US$2.7 million)^[1], a 35.7% year-over-year decrease, mainly due to a net closure of 2 L&O stores and the year-over-year decrease of 15.1% in L&O store’s ADS.

Total revenues from L&O hotels and restaurants for the first six months of 2026 were RMB190.4 million (US$28.1 million)^[1], a 24.7% year-over-year decrease.

Total revenues from franchised-and-managed, or F&M, hotels and restaurants were RMB126.8 million (US$18.7 million)^[1], an 8.8% year-over-year decrease.

Total revenues from F&M hotels were RMB126.3 million (US$18.6 million)^[1], an 8.2% year-over-year decrease, primarily due to an 8.8% decrease in F&M hotels’ RevPAR, an exemption of management fees for hotels facing business difficulties, and a decline of RMB3.0 million in membership revenues. For comparability, the year-over-year change is presented on a basis that applies the same fee-exemption treatment to the corresponding period of 2025. The decrease in membership revenues was partially due to the amortization cycle started from the pandemic period three years ago, in which the sales of membership cards were historically under-performed.

Total revenues from F&M restaurants were RMB0.5 million (US$74,498.4)^[1], a 64.4% year-over-year decrease, mainly due to a decrease of 12.8% in the ADS of F&M stores and an exemption of management fees.

Total revenues from F&M hotels and restaurants for the first six months of 2026 were RMB242.1 million (US$35.7 million)^[1], an 8.5% year-over-year decrease.

Total revenues from wholesale and others were RMB12.5 million (US$1.8 million)^[1], a 22.9% year-over-year decrease, mainly due to the decline in the wholesale segment of the restaurant business.

Total revenues from wholesale and others for the first six months of 2026 were RMB30.4 million (US$4.5 million)^[1], a 16.9% year-over-year decrease.

Total operating costs and expenses

		Quarter Ended
		June 30, 2025				June 30, 2025				June 30, 2025				June 30, 2025
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			144,150,447				39,588,702				(651,220	)			183,087,929
Selling and marketing expenses			8,424,702				2,062,702				-				10,487,404
General and administrative expenses			38,032,276				5,186,679				-				43,218,955
Other operating expenses			4,241,044				221,149				-				4,462,193
Other general expenses			5,805,656				-				-				5,805,656
Total operating costs and expenses			200,654,125				47,059,232				(651,220	)			247,062,137

		Quarter Ended
		June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			120,581,608				25,958,440				-				146,540,048				21,597,331
Selling and marketing expenses			8,896,407				1,308,420				-				10,204,827				1,504,005
General and administrative expenses			25,084,172				3,026,966				-				28,111,138				4,143,069
Other operating expenses			182,467				9,112				-				191,579				28,235
Other general expenses			4,607,450				-				-				4,607,450				679,054
Total operating costs and expenses			159,352,104				30,302,938				-				189,655,042				27,951,694

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		Six Months Ended
		June 30, 2025				June 30, 2025				June 30, 2025				June 30, 2025
		RMB				RMB				RMB				RMB
		Hotel				Restaurant				Elimination				Total
Operating costs and expenses
Operating costs			286,868,622				84,128,367				(651,220	)			370,345,769
Selling and marketing expenses			22,964,944				4,564,490				-				27,529,434
General and administrative expenses			79,683,638				10,475,363				-				90,159,001
Other operating expenses			4,290,239				442,297				-				4,732,536
Other general expenses			11,611,311				-				-				11,611,311
Total operating costs and expenses			405,418,755				99,610,517				(651,220	)			504,378,052

		Six Months Ended
		June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026				June 30, 2026
		RMB				RMB				RMB				RMB				US$
		Hotel				Restaurant				Elimination				Total				Total
Operating costs and expenses
Operating costs			245,589,032				59,783,354				(39,176	)			305,333,210				45,000,547
Selling and marketing expenses			18,109,839				3,511,634				-				21,621,473				3,186,611
General and administrative expenses			49,169,114				5,954,747				-				55,123,861				8,124,252
Other operating expenses			3,354,535				42,437				-				3,396,972				500,652
Other general expenses			9,718,569				-				-				9,718,569				1,432,340
Total operating costs and expenses			325,941,089				69,292,172				(39,176	)			395,194,085				58,244,402

Operating costs were RMB146.5 million (US$21.6 million)^[1], a 20.0% year-over-year decrease.

Operating costs of the hotel business were RMB120.6 million (US$17.8 million)^[1], a 16.4% year-over-year decrease. The decrease was mainly attributable to lower staff related costs, lower depreciation and amortization, and lower rental costs caused by the net closure of 13 L&O hotels since the second quarter of 2025.

Operating costs of the restaurant business in the second quarter of 2026 were RMB26.0 million (US$3.8 million)^[1], a 34.4% year-over-year decrease, due to the closure of L&O stores.

For the first six months of 2026, operating costs were RMB305.3 million (US$45.0 million)^[1], a 17.6% decrease.

Selling and marketing expenses were RMB10.2 million (US$1.5 million)^[1], a 2.7% year-over-year decrease.

Selling and marketing expenses of the hotel business were RMB8.9 million (US$1.3 million)^[1], a 5.6% year-over-year increase. The increase was mainly due to higher advertising and commission expenses.

Selling and marketing expenses of the restaurant business were RMB1.3 million (US$0.2 million)^[1], a 36.6% year-over-year decrease, mainly attributable to lower advertising expenses and lower sales-channel commissions.

For the first six months of 2026, selling and marketing expenses were RMB21.6 million (US$3.2 million)^[1], a 21.5% decrease.

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General and administrative, or G&A expenses were RMB28.1 million (US$4.1 million)^[1], a 35.0% year-over-year decrease.

G&A expenses of the hotel business were RMB25.1 million (US$3.7 million)^[1], a 34.0% year-over-year decrease. The decrease was mainly due to lower G&A staff related expenses, lower credit losses for accounts receivable and lower consulting fees.

G&A expenses of the restaurant business were RMB3.0 million (US$0.4 million)^[1], a 41.6% year-over-year decrease, mainly due to lower G&A staff related expenses and lower credit losses for accounts receivable.

General and administrative expenses for the first six months of 2026 were RMB55.1 million (US$8.1 million)^[1], a 38.9% year-over-year decrease.

Other operating expenses were RMB0.2 million (US$28,235.0)^[1].

Other operating expenses for the first six months of 2026 were RMB3.4 million (US$0.5 million)^[1], decreased from RMB4.7 million one year ago.

Other general expenses were RMB4.6 million (US$0.7 million)^[1], mainly attributable to provisions for franchisee loans.

Other general expenses for the first six months of 2026 were RMB9.7 million (US$1.4 million)^[1], a decrease from RMB11.6 million one year ago.

Gross profit was RMB88.6 million (US$13.1 million)^[1], a year-over-year decrease of 16.6%. Gross margin was 37.7%, compared to 36.7% a year ago. The gross profit of the hotel business was RMB84.0 million (US$12.4 million)^[1], a 15.9% year-over-year decrease. The gross profit of the restaurant business was RMB4.6 million (US$0.7 million)^[1], a 27.5% year-over-year decrease.

Income from operations in the second quarter of 2026 was RMB48.2 million (US$7.1 million)^[1], compared to income from operations of RMB49.2 million in the second quarter of 2025, with a margin of 20.5%. The stable profitability was mainly attributable to lower operating costs and expenses, despite the decline in revenue.

Income from operations of the hotel business was RMB46.7 million (US$6.9 million)^[1], compared to an income from operations of RMB50.2 million in the second quarter of 2025, with a margin of 22.8%.

Income from operations of the restaurant business in the second quarter of 2026 was RMB1.6 million (US$0.2 million)^[1], compared to loss from operations of RMB1.0 million in the second quarter of 2025, with a margin of 5.2%.

Income from operations for the first six months of 2026 was RMB76.9 million (US$11.3 million)^[1] compared to income from operations of RMB60.5 million in 2025, with a margin of 16.6%.

Net income in the second quarter of 2026 was RMB21.3 million (US$3.1 million)^[1], compared to a net income of RMB160.0 million in the second quarter of 2025, and net margin was 9.0%.

Net income of the hotel business was RMB19.7 million (US$2.9 million)^[1], compared to a net income of RMB161.2 million in the second quarter of 2025, and net margin was 9.7%. Hotel net income in the second quarter of 2025 was impacted by the one-time divestment of our ownership in Argyle and fair value fluctuation in securities. Besides, hotel net income was also impacted by foreign exchange losses, bad debt expenses driven by accounts receivables, and withholding tax due to dividends distributions.

Net income of the restaurant business in the second quarter of 2026 was RMB1.5 million (US$0.2 million)^[1], compared to a net loss of RMB1.2 million in the second quarter of 2025, and net margin was 4.9%.

Net income for the first six months of 2026 was RMB35.3 million (US$5.2 million)^[1], compared to a net income of RMB167.8 million in 2025, and net margin was 7.6%.

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Adjusted EBITDA (non-GAAP)^[2] in the second quarter of 2026 was RMB68.9 million (US$10.2 million)^[1], a year-over-year decrease of 12.1%. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP)^[2] as a percentage of total revenues, was 29.3%, compared to 27.1% a year ago.

Adjusted EBITDA (non-GAAP)^[2] for the first six months of 2026 was RMB122.1 million (US$18.0 million)^[1], a year-over-year increase of 3.5%.

Core net income (non-GAAP)^[3] in the second quarter of 2026 was RMB47.2 million (US$7.0 million)^[1], a year-over-year increase of 4.4%. The core net margin, defined as core net income (non-GAAP)^[3] as a percentage of total revenues, was 20.1%, compared to 15.6% one year ago.

Core net income (non-GAAP)^[3] for the first six months of 2026 was RMB71.1 million (US$10.5 million)^[1], a year-over-year increase of 16.2%.

Earnings per American Depositary Share, or ADS^[4] (basic and diluted) were RMB0.21 (US$0.03)^[1], decreased from RMB1.59 one year ago.

Earnings per American Depositary Share, or ADS^[4] (basic and diluted) for the first six months of 2026 were RMB0.36 (US$0.05)^[1], decreased from RMB1.68 one year ago. 

Core net income per ADS^[4] (basic and diluted) (non-GAAP) was RMB0.47 (US$0.07)^[1], increased from RMB0.45 a year ago.

Core net income per ADS^[4] (basic and diluted) (non-GAAP) was RMB0.70 (US$0.10)^[1] for the first six months of 2026, an increase from RMB0.60 a year ago.

Cash Flow. Operating cash inflow in the second quarter of 2026 was RMB23.3 million (US$3.4 million)^[1] as a result of income from operations. The amount decreased by RMB23.3 million compared with the second quarter of 2025, primarily due to a net decline of approximately RMB31.0 million in accounts payable to franchisees. Investing cash outflow was RMB25.0 million (US$3.7 million)^[1], which was primarily due to purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews. Financing cash outflow was RMB0.2 million (US$29,476.0)^[1], mainly due to repayment of bank borrowings.

Cash and cash equivalents, restricted cash, short-term investments, investments in equity securities and time deposits. As of June 30, 2026, the Company had total cash and cash equivalents, restricted cash, short term investments, investments in equity securities and time deposits of RMB2,000.3 million (US$294.8 million)^[1], compared to RMB2,010.2 million as of March 31, 2026. The decrease was mainly due to investment on purchase of equipment for newly opened L&O hotels and loans for the renovation of newly opened resort hotels from strategic reviews, partially offset by cash from operating activities.

Guidance

Based on our performance in the first half year, we maintain our previous revenue guidance for the hotel business, that we expect revenue to decrease by 10% to 15% year over year for the year of 2026. The guidance set forth above reflects the Company’s current and preliminary views based on its recovery and may not be indicative of the final financial results for any future periods or the full year.

Recent Development

In 2025, we entered into an agreement to acquire a hotel property located opposite the Twin Towers in Malaysia for strategic purposes. This property was handed over in July 2026 and will serve as our flagship asset to scale our hotel network across Malaysia and the broader Southeast Asian market.

In 2025, we entered into a letter of intent to acquire a landmark property along the Huangpu River waterfront in Yangpu District, Shanghai, and subsequently won the bid for the property through a competitive bidding process. The property is planned to be developed into the Company’s signature flagship hotel in Shanghai, anchoring our mid-to-up-scale strategy at one of the city's prime riverfront locations. Beyond hotel operations, the property will feature a curated regional lifestyle center with food-and-beverage and other amenities designed to complement the hotel, enhance the guest experience and generate additional recurring revenue streams, while one floor will house the Company's corporate offices. The remaining closing procedures are expected to be completed before the end of the third quarter of 2026, subject to customary closing conditions.

7 / 16

Share Repurchase Program

The Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to US$5 million of its Class A ordinary shares over a two-year period, effective from the date of approval. Repurchases may be conducted through open market transactions at prevailing market prices, privately negotiated transactions, block trades or other legally permitted methods, at the Company’s discretion, subject to market conditions, applicable securities laws and regulations, and the trading price of the Company’s ADSs. The program may be suspended, modified or terminated at any time at the Board’s discretion without prior notice.

Use of Non-GAAP Financial Measures

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

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

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

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

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

About GreenTree Hospitality Group Ltd.

GreenTree Hospitality Group Ltd. (“GreenTree” or the “Company”) (NYSE: GHG) is a leading hospitality and restaurant management group in China. As of June 30, 2026, GreenTree had a total number of 4,615 hotels and 198 restaurants. GreenTree was the fourth largest hospitality company in China in 2025 according to the China Hospitality Association. In 2025, HOTELS magazine ranked GreenTree 12th among the 225 largest global hotel groups in terms of number of hotels in its annual HOTELS’ 225.

GreenTree has a broad portfolio of diverse brands spanning from the economy to mid-scale, mid-to-up-scale and luxury segments of the hospitality industry mainly in China. Through its strong membership base, expansive booking network, and efficient system, GreenTree aims to keep closer relationships with all of its clients and partners by providing a diverse brand portfolio that features comfort, style and value.

For more information on GreenTree, please visit http://ir.998.com

Safe Harbor Statements

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” “confident,” “future,” or other similar expressions. GreenTree may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about or based on GreenTree’s current beliefs, expectations, assumptions, estimates and projections about us and our industry, are forward-looking statements that involve known and unknown factors, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such factors and risks include, but not limited to the following: GreenTree’s goals and growth strategies; its future business development, financial condition and results of operations; trends in the hospitality industry in China and globally; competition in our industry; fluctuations in general economic and business conditions in China and other regions where we operate; the regulatory environment in which we and our franchisees operate; and assumptions underlying or related to any of the foregoing. You should not place undue reliance on these forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made, in this press release are current as of the date of the press release. Except as required by law, GreenTree undertakes no obligation to update any such information or forward-looking statements to reflect events or circumstances after the date on which the information is provided or statements are made, or to reflect the occurrence of unanticipated events.

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Financial Tables and Operational Data Follow

GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Balance Sheets

		December 31				June 30				June 30
		2025				2026				2026
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			1,652,179,474				1,689,632,928				249,021,080
Restricted cash			7,389,650				6,209,434				915,157
Short-term investments			-				285,570,000				42,087,810
Accounts receivable, net of allowance			81,335,494				67,987,065				10,020,053
Amounts due from related parties			18,843,062				18,889,143				2,783,915
Inventories			4,922,160				5,140,534				757,621
Other current assets			92,557,400				100,329,837				14,786,788
Loans receivable, net			38,798,333				44,431,478				6,548,390
Total current assets			1,896,025,573				2,218,190,419				326,920,814
Non-current assets:
Amounts due from a related party			110,000,000				110,000,000				16,211,994
Restricted cash			18,869,900				18,870,700				2,781,197
Long-term time deposits			285,570,000				-				-
Loans receivable, net			12,034,825				12,880,353				1,898,329
Property and equipment, net			559,918,957				531,254,248				78,297,188
Intangible assets, net			56,403,818				54,609,365				8,048,424
Goodwill			25,721,262				25,650,746				3,780,452
Long-term investments			156,929,090				154,751,060				22,807,484
Operating lease right-of-use assets			1,130,088,595				1,110,322,494				163,641,287
Other assets			297,560,050				325,549,861				47,980,112
Deferred tax assets			237,098,634				233,667,462				34,438,323
TOTAL ASSETS			4,786,220,704				4,795,746,708				706,805,604
LIABILITIES AND EQUITY
Current liabilities:
Long-term bank loans, current portion			56,800,000				256,000,000				37,729,731
Accounts payable			44,687,183				44,670,517				6,583,620
Advance from customers			21,946,599				20,056,437				2,955,953
Amounts due to related parties			17,518,102				16,190,050				2,386,118
Salary and welfare payable			73,657,641				75,502,874				11,127,747
Deferred revenue			169,139,889				166,024,779				24,469,025
Accrued expenses and other current liabilities			539,836,968				523,274,741				77,121,154
Income tax payable			72,129,824				36,878,708				5,435,249
Operating lease liabilities, current			184,665,265				163,899,705				24,155,827
Total current liabilities			1,180,381,471				1,302,497,811				191,964,424
Long-term bank loans			199,400,000				45,597,470				6,720,236
Deferred revenue			134,414,010				115,474,940				17,018,900
Other long-term liabilities			117,513,512				110,137,975				16,232,329
Operating lease liabilities, non-current			1,032,472,822				1,047,898,560				154,441,137
Deferred tax liabilities			55,941,338				50,682,606				7,469,692
Unrecognized tax benefits			457,930,743				468,007,303				68,975,741
TOTAL LIABILITIES			3,178,053,896				3,140,296,665				462,822,459
Shareholders’ equity:
Class A ordinary shares			222,587,070				222,587,070				32,805,275
Class B ordinary shares			115,534,210				115,534,210				17,027,636
Treasury Stock			(48,054,863	)			(48,054,863	)			(7,082,410	)
Additional paid-in capital			1,566,949,877				1,566,949,877				230,939,835
Retained earnings (Accumulated losses)			(291,545,545	)			(255,247,242	)			(37,618,789	)
Accumulated other comprehensive income			11,093,099				23,087,047				3,402,610
Total GreenTree Hospitality Group Ltd. shareholders’ equity			1,576,563,848				1,624,856,099				239,474,157
Non-controlling interests			31,602,960				30,593,944				4,508,988
Total shareholders’ equity			1,608,166,808				1,655,450,043				243,983,145
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			4,786,220,704				4,795,746,708				706,805,604

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GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

		Quarter Ended												Six Months Ended
		June 30, 2025				June 30, 2026				June 30, 2026				June 30, 2025				June  30, 2026				June  30, 2026
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			134,152,724				95,860,227				14,128,049				253,016,758				190,419,964				28,064,430
Franchised-and-managed revenues			138,918,602				126,759,349				18,682,016				264,529,997				242,059,115				35,675,099
Wholesales and others			16,193,449				12,488,815				1,840,624				36,546,250				30,366,038				4,475,400
Total revenues			289,264,774				235,108,391				34,650,689				554,093,005				462,845,118				68,214,929
Operating costs and expenses
Operating costs			(183,087,930	)			(146,540,048	)			(21,597,331	)			(370,345,769	)			(305,333,210	)			(45,000,547	)
Selling and marketing expenses			(10,487,404	)			(10,204,827	)			(1,504,005	)			(27,529,434	)			(21,621,473	)			(3,186,611	)
General and administrative expenses			(43,218,955	)			(28,111,138	)			(4,143,069	)			(90,159,001	)			(55,123,861	)			(8,124,252	)
Other operating expenses			(4,462,193	)			(191,579	)			(28,235	)			(4,732,536	)			(3,396,972	)			(500,652	)
Other general expenses			(5,805,656	)			(4,607,450	)			(679,054	)			(11,611,311	)			(9,718,569	)			(1,432,339	)
Total operating costs and expenses			(247,062,137	)			(189,655,042	)			(27,951,694	)			(504,378,052	)			(395,194,085	)			(58,244,401	)
Other operating income			6,961,716				2,787,310				410,799				10,762,348				9,259,293				1,364,651
Income from operations			49,164,353				48,240,659				7,109,794				60,477,301				76,910,325				11,335,179
Interest income and other, net			7,941,224				8,260,486				1,217,445				18,563,426				17,093,664				2,519,294
Interest expense			(1,940,043	)			(1,818,422	)			(268,002	)			(3,817,915	)			(3,678,202	)			(542,100	)
Gains (losses) from investment in equity securities			24,800,795				-				-				24,800,795				-				-
Other income, net			105,686,128				(22,673,585	)			(3,341,673	)			97,329,451				(33,327,474	)			(4,911,861	)
Income before income taxes			185,652,457				32,009,138				4,717,564				197,353,058				56,998,313				8,400,512
Income tax expense			(25,969,005	)			(9,829,293	)			(1,448,659	)			(30,183,730	)			(19,530,999	)			(2,878,513	)
Income (loss) before share of gains in equity investees			159,683,452				22,179,845				3,268,905				167,169,328				37,467,314				5,521,999
Share of income/(loss) in equity investees, net of tax			301,937				(921,953	)			(135,879	)			603,873				(2,178,030	)			(321,002	)
Net income (loss)			159,985,388				21,257,892				3,133,026				167,773,201				35,289,284				5,200,997
Net income/(loss) attributable to non-controlling interests			1,650,876				(464,173	)			(68,411	)			2,695,208				1,009,019				148,711
Net income attributable to ordinary shareholders			161,636,264				20,793,719				3,064,615				170,468,409				36,298,303				5,349,708
Net earnings per share
Class A ordinary share-basic and diluted			1.59				0.21				0.03				1.68				0.36				0.05
Class B ordinary share-basic and diluted			1.59				0.21				0.03				1.68				0.36				0.05
Net earnings per ADS[4]
Class A ordinary share-basic and diluted			1.59				0.21				0.03				1.68				0.36				0.05
Class B ordinary share-basic and diluted			1.59				0.21				0.03				1.68				0.36				0.05
Weighted average shares outstanding
Class A ordinary share-basic and diluted			66,636,925				66,134,416				66,134,416				66,636,925				66,134,416				66,134,416
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			4,831,702				8,024,096				1,182,605				9,663,403				11,993,948				1,767,689
Comprehensive income, net of tax			164,817,090				29,281,988				4,315,631				177,436,604				47,283,232				6,968,686
Comprehensive income/(loss) attributable to non-controlling interests			1,650,876				(464,173	)			(68,411	)			2,695,208				1,009,019				148,711
Comprehensive income (loss) attributable to ordinary shareholders			166,467,965				28,817,815				4,247,220				180,131,812				48,292,251				7,117,397

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GreenTree Hospitality Group Ltd.

 Unaudited Hotel Business Results

		Quarter Ended												Six Months Ended
		June 30, 2025				June 30, 2026				June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2026
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			105,970,283				77,613,926				11,438,877				194,165,718				152,151,688				22,424,384
Franchised-and-managed revenues			137,496,914				126,253,871				18,607,518				261,353,522				239,620,481				35,315,689
Others			561,244				717,195				105,701				1,478,298				1,508,083				222,264
Total revenues			244,028,441				204,584,992				30,152,097				456,997,538				393,280,252				57,962,337
Operating costs and expenses
Hotel operating costs			(144,150,447	)			(120,581,608	)			(17,771,530	)			(286,868,622	)			(245,589,032	)			(36,195,345	)
Selling and marketing expenses			(8,424,702	)			(8,896,407	)			(1,311,168	)			(22,964,944	)			(18,109,839	)			(2,669,060	)
General and administrative expenses			(38,032,276	)			(25,084,172	)			(3,696,949	)			(79,683,638	)			(49,169,114	)			(7,246,631	)
Other operating expenses			(4,241,044	)			(182,467	)			(26,892	)			(4,290,239	)			(3,354,535	)			(494,397	)
Other general expenses			(5,805,656	)			(4,607,450	)			(679,054	)			(11,611,311	)			(9,718,569	)			(1,432,340	)
Total operating costs and expenses			(200,654,125	)			(159,352,104	)			(23,485,594	)			(405,418,755	)			(325,941,089	)			(48,037,773	)
Other operating income			6,826,954				1,434,752				211,456				10,391,669				7,867,615				1,159,543
Income from operations			50,201,269				46,667,640				6,877,959				61,970,453				75,206,778				11,084,107
Interest income and other, net			7,910,974				8,255,562				1,216,719				18,502,925				17,085,059				2,518,026
Interest expense			(1,891,327	)			(1,818,422	)			(268,002	)			(3,769,199	)			(3,678,202	)			(542,100	)
Gains (losses) from investment in equity securities			24,800,795				-				-				24,800,795				-				-
Other income, net			105,697,809				(22,629,180	)			(3,335,128	)			97,352,813				(33,234,724	)			(4,898,191	)
Income before income taxes			186,719,520				30,475,600				4,491,548				198,857,787				55,378,911				8,161,842
Income tax expense			(25,869,423	)			(9,804,376	)			(1,444,986	)			(29,850,815	)			(19,102,201	)			(2,815,316	)
Income (loss) before share of gains in equity investees			160,850,097				20,671,224				3,046,561				169,006,972				36,276,710				5,346,526
Share of income/(loss) in equity investees, net of tax			301,937				(921,953	)			(135,879	)			603,873				(2,178,030	)			(321,002	)
Net income (loss)			161,152,033				19,749,271				2,910,682				169,610,845				34,098,680				5,025,524

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GreenTree Hospitality Group Ltd.

 Unaudited Restaurant Business Results

		Quarter Ended												Six Months Ended
		June 30, 2025				June 30, 2026				June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2026
		RMB				RMB				US$				RMB				RMB				US$
Revenues
Leased-and-operated revenues			28,389,854				18,246,301				2,689,172				59,058,453				38,268,277				5,640,046
Franchised-and-managed revenues			1,421,688				505,479				74,498				3,176,474				2,438,634				359,410
Wholesales and others			16,076,011				11,771,620				1,734,922				35,511,759				28,897,131				4,258,910
Total revenues			45,887,553				30,523,400				4,498,593				97,746,686				69,604,042				10,258,366
Operating costs and expenses
Restaurant operating costs			(39,588,702	)			(25,958,440	)			(3,825,801	)			(84,128,367	)			(59,783,354	)			(8,810,976	)
Selling and marketing expenses			(2,062,703	)			(1,308,420	)			(192,837	)			(4,564,490	)			(3,511,634	)			(517,551	)
General and administrative expenses			(5,186,679	)			(3,026,966	)			(446,120	)			(10,475,363	)			(5,954,747	)			(877,621	)
Other operating expenses			(221,149	)			(9,112	)			(1,343	)			(442,297	)			(42,437	)			(6,254	)
Total operating costs and expenses			(47,059,232	)			(30,302,938	)			(4,466,100	)			(99,610,517	)			(69,292,172	)			(10,212,402	)
Other operating income			134,762				1,352,558				199,342				370,679				1,391,678				205,108
Income from operations			(1,036,917	)			1,573,020				231,834				(1,493,152	)			1,703,548				251,072
Interest income and other, net			30,251				4,924				726				60,501				8,605				1,268
Interest expense			(48,716	)			-				-				(48,716	)			-				-
Other income, net			(11,681	)			(44,405	)			(6,544	)			(23,362	)			(92,750	)			(13,670	)
Income before income taxes			(1,067,063	)			1,533,539				226,016				(1,504,729	)			1,619,403				238,670
Income tax expense			(99,582	)			(24,917	)			(3,672	)			(332,915	)			(428,798	)			(63,197	)
Income (loss) before share of gains in equity investees			(1,166,645	)			1,508,622				222,343				(1,837,644	)			1,190,605				175,473
Share of income/(loss) in equity investees, net of tax			-				-				-				-				-				-
Net income (loss)			(1,166,645	)			1,508,622				222,343				(1,837,644	)			1,190,605				175,473

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GreenTree Hospitality Group Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows 

		Quarter Ended												Six Months Ended
		June 30,				June 30,				June 30,				June 30,				June 30,				June 30,
		2025				2026				2026				2025				2026				2026
		RMB				RMB				US$				RMB				RMB				US$
Operating activities:
Net cash provided by operating activities			46,586,703				23,305,470				3,434,800				104,813,193				81,452,750				12,004,649
Investing activities:
Prepayments and purchases of property, plant and equipment			(18,911,621	)			(12,689,579	)			(1,870,213	)			(44,392,506	)			(64,326,633	)			(9,480,573	)
Purchases of intangible assets			-				-				-				-				(101,463	)			(14,954	)
Proceeds from disposal of property, plant and equipment			215,871				605,022				89,169				237,334				605,022				89,169
Proceeds from disposal of long-term investments			109,036,386				100,000				14,738				109,036,386				600,000				88,429
Purchases of short-term investments			(23,147	)			-				-				(23,147	)			-				-
Loan to related parties			(625,000	)			-				-				(625,000	)			-				-
Repayment from related parties			118,982				-				-				118,982				-				-
Loan to third parties			-				(16,167,100	)			(2,382,736	)			-				(16,167,100	)			(2,382,736	)
Loan to fanchisees			-				(215,659	)			(31,784	)			(2,010,000	)			(1,604,559	)			(236,483	)
Repayment from franchisees			8,624,735				3,343,480				492,769				14,684,093				5,713,396				842,052
Net cash (used in) provided by investing activities			98,436,206				(25,023,836	)			(3,688,057	)			77,026,142				(75,281,337	)			(11,095,096	)
Financing activities:
Repayment of bank loans			(200,000	)			(200,000	)			(29,476	)			(200,000	)			(200,000	)			(29,476	)
Proceeds from bank loans			-				-				-				-				46,754,778				6,890,801
Net cash provided by (used in) financing activities			(200,000	)			(200,000	)			(29,476	)			(200,000	)			46,554,778				6,861,325
Effect of exchange rate changes on cash and cash equivalents and restricted cash			(4,979,489	)			(7,949,613	)			(1,171,627	)			(9,958,977	)			(16,452,153	)			(2,424,746	)
Net (decrease) increase in cash and cash equivalents and restricted cash			139,843,421				(9,867,979	)			(1,454,360	)			171,680,358				36,274,038				5,346,132
Cash and cash equivalents and restricted cash at the beginning of the period			1,557,038,875				1,724,581,041				254,171,794				1,525,201,938				1,678,439,024				247,371,302
Cash and cash equivalents and restricted cash at the end of the period			1,696,882,296				1,714,713,062				252,717,434				1,696,882,296				1,714,713,062				252,717,434

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GreenTree Hospitality Group Ltd.
Unaudited Reconciliation of GAAP and Non-GAAP Results
		Quarter Ended												Six Months Ended
		June 30, 2025				June 30, 2026				June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2026
		RMB				RMB				US$				RMB				RMB				US$
Net income		159,985,388				21,257,892				3,133,026				167,773,201				35,289,284				5,200,997
Deduct:
Other operating income			6,961,716				2,787,310				410,799				10,762,348				9,259,293				1,364,651
Interest income and other, net			7,941,224				8,260,486				1,217,445				18,563,426				17,093,664				2,519,294
Gains from investment in equity securities			24,800,795				-				-				24,800,795				-				-
Share of gain in equity investees, net of tax			301,937				-				-				603,873				-				-
Other income, net			105,686,128				-				-				97,329,451				-				-
Add:
Other operating expenses			4,462,193				191,579				28,235				4,732,536				3,396,972				500,652
Other general expenses			5,805,656				4,607,450				679,054				11,611,311				9,718,569				1,432,340
Income tax expenses (benefits)			25,969,005				9,829,293				1,448,659				30,183,730				19,530,999				2,878,513
Share of loss in equity investees, net of tax			-				921,953				135,879				-				2,178,030				321,002
Interest expenses			1,940,043				1,818,422				268,002				3,817,915				3,678,202				542,100
Depreciation and amortization			25,875,796				18,625,227				2,745,019				51,900,949				41,298,721				6,086,678
Other expense, net			-				22,673,585				3,341,673				-				33,327,474				4,911,861
Adjusted EBITDA (Non-GAAP)[2]			78,346,281				68,877,605				10,151,303				117,959,749				122,065,294				17,990,198

		Quarter Ended												Six Months Ended
		June 30, 2025				June 30, 2026				June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2026
		RMB				RMB				US$				RMB				RMB				US$
Net income		159,985,388				21,257,892				3,133,026				167,773,201				35,289,284				5,200,997
Deduct:
Subsidies (net of 25% tax)			1,527,866				12,024				1,772				5,447,641				3,252,866				479,413
Gains from investment in equity securities (net of 25% tax)			18,600,596				-				-				18,600,596				-				-
Other income (net of 25% tax)			107,775,298				-				-				101,507,790				-				-
Add:
Other expense (net of 25% tax)			-				17,005,189				2,506,255				-				24,995,606				3,683,896
Other general expenses			5,805,656				4,607,450				679,053				11,611,311				9,718,569				1,432,340
Income tax expenses related to dividend distribution			7,299,300				4,307,627				634,866				7,299,300				4,307,627				634,866
Core net income (Non-GAAP)[3]			45,186,584				47,166,135				6,951,428				61,127,785				71,058,221				10,472,686
Core net income per ADS[4] (Non-GAAP)
Class A ordinary share-basic and diluted			0.45				0.47				0.07				0.60				0.70				0.10
Class B ordinary share-basic and diluted			0.45				0.47				0.07				0.60				0.70				0.10

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Hotel Operational Data 

		June 30, 2025				June 30, 2026
Total hotels in operation:			4,509				4,615
Leased-and-owned hotels			55				42
Franchised hotels			4,454				4,573
Total hotel rooms in operation			321,977				330,029
Leased-and-owned hotels			6,262				4,902
Franchised hotels			315,715				325,127
Number of cities			357				347

		Quarter Ended
		June 30, 2025				June 30, 2026
Occupancy rate (as a percentage)
Leased-and-owned hotels			72.30	%			63.50	%
Franchised hotels			67.80	%			65.20	%
Blended			67.90	%			65.20	%
Average daily rate (in RMB)
Leased-and-owned hotels			245				236
Franchised hotels			164				155
Blended			166				157
RevPAR (in RMB)
Leased-and-owned hotels			177				150
Franchised hotels			111				101
Blended			113				103

		Number of Hotels in Operation								Number of Hotel Rooms in Operation
		June 30, 2025				June 30, 2026				June 30, 2025				June 30, 2026
Mid-to-up-scale			569				596				52,773				56,448
GreenTree Eastern			236				252				25,107				28,316
Deep Sleep Hotel			8				9				610				710
Gem			119				118				10,781				10,726
Gya			72				79				6,012				6,676
Vx			108				110				9,024				9,117
Others			26				28				1,239				903
Mid-scale			3,005				3,040				226,336				228,537
GreenTree Inn			2,366				2,343				184,561				185,694
GT Alliance			408				392				25,930				24,936
GreenTree Apartment			24				30				1,545				1,860
Vatica			107				102				7,481				7,111
Others			100				173				6,819				8,936
Economy hotels			935				979				42,868				45,044
Shell			935				979				42,868				45,044
Others			-				-				-				-
Total			4,509				4,615				321,977				330,029

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Restaurant Operational Data

		June 30, 2025				June 30, 2026
Total restaurants in operation:			183				198
Leased-and-owned restaurants			15				13
Franchised restaurants			168				185
Number of cities			53				53
Da Niang Dumplings			164				180
Bellagio			19				18

		Quarter Ended
		2025 Q2				2026 Q2
ADT
Leased-and-owned restaurants			215				194
Franchised restaurants			74				74
Blended			85				81
AC (in RMB)
Leased-and-owned restaurants			88				83
Franchised restaurants			32				28
Blended			43				36
ADS (in RMB)
Leased-and-owned restaurants			18,931				16,081
Franchised restaurants			2,363				2,062
Blended			3,629				2,893

For more information, please contact:

GreenTree

Ms. Selina Yang

Phone: +86-158-2166-6251

E-mail: ir@998.com

Ms. Hannah Zhang

Phone: +86-182-2560-8592

E-mail: ir@998.com     

Christensen

In Shanghai

Mr. Jerry Xu

Phone: +86-138-1680-0706

E-mail: jerry.xu@christensencomms.com

In Hong 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

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Filing Exhibits & Attachments

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Press Releases

• EX-99.1 GREENTREE HOSPITALITY GROUP LTD. REPORTS SECOND QUARTER OF 2026 FINANCIAL RESULT 460.9 KB