GreenTree Hospitality Group reported total revenues of RMB585.1 million (US$81.7 million) for the first half of 2025, marking a 14.2% year-over-year decrease. Hotel revenues decreased by 9.5% to RMB488.0 million (US$68.1 million), primarily due to an 11% year-over-year decrease in blended RevPAR and the closure of nine leased-and-operated (L&O) hotels since the third quarter of last year. Restaurant revenues declined by 31.6% to RMB97.7 million (US$13.6 million), mainly attributed to the decrease in L&O stores and lower average daily sales (ADS) during the second quarter low season.
Despite the revenue decline, net income for the first half of 2025 increased significantly to RMB198.8 million (US$27.7 million), up 66.2% year-over-year from RMB119.6 million in H1 2024, with a net margin of 34.0%. This substantial increase in net income was impacted by the divestment of the company's ownership in Argyle and a realized gain from an equity investment. Earnings per American Depositary Share (ADS) were RMB1.99 (US$0.28), an increase from RMB1.19 in the first half of 2024.
The company generated RMB104.8 million (US$14.6 million) in operating cash inflow and RMB77.0 million (US$10.8 million) in investing cash inflow, primarily from the Argyle divestment. As of June 30, 2025, total cash and cash equivalents, restricted cash, short-term investments, investments in equity securities, and time deposits stood at RMB2,034.9 million (US$284.1 million), an increase from RMB1,839.1 million at the end of 2024. GreenTree adjusted its previous revenue guidance for the hotel business to a year-over-year decrease of 10% to 13%, citing the impact from the closure of certain L&O hotels and business strategy adjustments.
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