Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38425 |
Entity Registrant Name | GreenTree Hospitality Group Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1228 Zhongshan North Road |
Entity Address, Address Line Two | Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200065 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Entity Ex Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1408 |
Auditor Location | Shanghai, the People’s Republic of China |
Entity Central Index Key | 0001724755 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 1228 Zhongshan North Road |
Entity Address, Address Line Two | Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200065 |
Contact Personnel Name | Dr. Yiping Yang |
Country Region | 86 |
City Area Code | 21 |
Local Phone Number | 3617-4886 |
Common Class A | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.50 per share * |
Entity Common Stock, Shares Outstanding | 67,416,046 |
No Trading Symbol Flag | true |
Common Class B | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 34,762,909 |
American Depositary Shares | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares, each representing one Class A ordinary share |
Trading Symbol | GHG |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 637,150,219 | $ 92,378,098 | ¥ 298,428,709 |
Restricted cash | 7,937,397 | 1,150,814 | 3,300,000 |
Short-term investments | 186,031,572 | 26,972,043 | 557,458,675 |
Investments in equity securities | 41,361,346 | 5,996,831 | 157,988,851 |
Accounts receivable, net of allowance for doubtful accounts of RMB3,429,201 and RMB7,527,631 (USD1,091,404) as of December 31, 2021 and 2022 respectively | 115,505,310 | 16,746,696 | 95,589,936 |
Amounts due from related parties | 437,165,271 | 63,383,006 | 310,419,860 |
Prepaid rent | 15,454,967 | ||
Inventories | 2,236,082 | 324,201 | 2,297,584 |
Other current assets | 92,851,350 | 13,462,181 | 142,737,163 |
Loans receivable, net | 181,667,170 | 26,339,264 | 247,530,580 |
Total current assets | 1,701,905,717 | 246,753,134 | 1,831,206,325 |
Amounts due from a related party | 112,360,000 | 16,290,669 | |
Restricted cash | 25,359,592 | 3,676,795 | 18,869,900 |
Long-term time deposits | 130,000,000 | 18,848,228 | 160,000,000 |
Loans receivable, net | 177,172,509 | 25,687,599 | 290,967,680 |
Property and equipment, net | 834,771,681 | 121,030,517 | 1,045,356,265 |
Intangible assets, net | 38,111,936 | 5,525,711 | 520,117,479 |
Operating lease right-of-use assets | 1,544,739,494 | 223,966,174 | 1,830,043,887 |
Goodwill | 29,583,468 | 4,289,200 | 120,819,948 |
Long-term investments | 175,554,460 | 25,453,004 | 188,790,785 |
Other assets | 94,606,582 | 13,716,665 | 329,366,340 |
Deferred tax assets | 231,913,646 | 33,624,318 | 161,565,839 |
TOTAL ASSETS | 5,096,079,085 | 738,862,014 | 4,667,060,561 |
Current liabilities: | |||
Short-term bank loans | 99,800,000 | 14,469,640 | 356,000,000 |
Long-term bank loans, current portion | 141,800,000 | 20,559,067 | 50,200,000 |
Accounts payable | 20,745,204 | 3,007,772 | 24,036,544 |
Advance from customers | 18,681,010 | 2,708,492 | 39,773,738 |
Amounts due to related parties | 13,812,954 | 2,002,690 | 9,530,627 |
Salary and welfare payable | 68,684,825 | 9,958,364 | 60,154,565 |
Deferred rent | 1,926,957 | ||
Deferred revenue | 189,105,747 | 27,417,756 | 215,147,975 |
Operating lease liabilities, current | 210,388,801 | 30,503,509 | 177,938,604 |
Accrued expenses and other current liabilities | 400,054,308 | 58,002,422 | 381,282,062 |
Income tax payable | 71,788,163 | 10,408,305 | 70,897,366 |
Dividends payable | 40,999,458 | ||
Total current liabilities | 1,234,861,012 | 179,038,017 | 1,249,949,292 |
Deferred rent | 68,842,692 | ||
Operating lease liabilities, non-current | 1,449,422,906 | 210,146,568 | 1,702,532,277 |
Deferred revenue | 232,695,351 | 33,737,655 | 314,472,488 |
Long-term loans, non current portion | 160,000,000 | 23,197,819 | 301,800,000 |
Other long-term liabilities | 120,196,036 | 17,426,787 | 132,046,925 |
Deferred tax liabilities | 60,456,710 | 8,765,399 | 228,201,745 |
Unrecognized tax benefits | 349,559,101 | 50,681,305 | 328,820,281 |
Total liabilities | 3,607,191,116 | 522,993,550 | 2,624,133,423 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Treasury Stock | (16,971,057) | (2,460,572) | |
Additional paid-in capital | 1,151,321,950 | 166,925,992 | 1,151,384,306 |
Retained earnings(accumulated losses) | (55,918,341) | (8,107,397) | 326,298,618 |
Accumulated other comprehensive income | 27,732,104 | 4,020,776 | 41,880,907 |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,444,285,936 | 209,401,777 | 1,857,685,111 |
Noncontrolling interests | 44,602,033 | 6,466,687 | 185,242,027 |
Total shareholders' equity | 1,488,887,969 | 215,868,464 | 2,042,927,138 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,096,079,085 | 738,862,014 | 4,667,060,561 |
Class A ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares, value | 222,587,070 | 32,272,092 | 222,587,070 |
Class B ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares, value | ¥ 115,534,210 | $ 16,750,886 | ¥ 115,534,210 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares |
Allowance for doubtful accounts receivable | ¥ 7,527,631 | $ 1,091,404 | ¥ 3,429,201 |
Class A ordinary shares | |||
Common shares, par value | $ / shares | $ 0.50 | ||
Common shares, authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common shares, issued | 68,201,056 | 68,201,056 | 68,286,954 |
Common shares, outstanding | 68,201,056 | 68,201,056 | 68,286,954 |
Class B ordinary shares | |||
Common shares, par value | $ / shares | $ 0.50 | ||
Common shares, authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common shares, issued | 34,762,909 | 34,762,909 | 34,762,909 |
Common shares, outstanding | 34,762,909 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Revenues: | ||||
Total revenues | ¥ 936,801,282 | $ 135,823,418 | ¥ 1,206,145,958 | ¥ 930,010,096 |
Operating costs and expenses: | ||||
Hotel operating costs (including purchase from related parties of RMB764,045, RMB889,140 and RMB832,087 (USD120,641) for the years ended December 31, 2020, 2021 and 2022, respectively) | (594,019,322) | (86,124,706) | (651,376,905) | (401,659,306) |
Selling and marketing expenses (including service from a related party of RMB6,021,433, RMB9,438,030 and RMB3,943,381 (USD571,737) for the years ended December 31, 2020, 2021 and 2022, respectively) | (38,534,427) | (5,586,967) | (66,921,718) | (75,347,166) |
General and administrative expenses | (210,759,610) | (30,557,271) | (256,160,262) | (160,420,554) |
Other operating expenses | (3,244,855) | (470,460) | (4,937,625) | (1,731,405) |
Impairment loss of goodwill | (91,236,480) | (13,228,046) | 0 | |
Other general expenses | (461,597,460) | (66,925,340) | (99,886,003) | (3,000,000) |
Total operating costs and expenses | (1,399,392,154) | (202,892,790) | (1,079,282,513) | (642,158,431) |
Other operating income | 19,448,889 | 2,819,824 | 27,059,935 | 31,399,552 |
Income (Loss) from operations | (443,141,983) | (64,249,548) | 153,923,380 | 319,251,217 |
Interest income (including interest income from related parties of RMB21,336,855, RMB544,352 and RMB12,333 (USD1,788) for the years ended December 31, 2020, 2021 and 2022, respectively) | 47,383,941 | 6,870,026 | 59,974,418 | 72,934,212 |
Interest expenses | (25,375,848) | (3,679,152) | (12,671,385) | (3,456,316) |
(Losses and impairment) Gains on equity securities held | (62,156,235) | (9,011,807) | 9,137,875 | (36,773,521) |
Other income, net | 24,229,536 | 3,512,952 | 11,818,559 | 2,296,981 |
Income/(Loss) before income taxes and share of losses in equity method investments | (459,060,589) | (66,557,529) | 222,182,847 | 354,252,573 |
Income tax (expense)/benefits | 45,592,418 | 6,610,279 | (108,888,882) | (110,459,202) |
Income before share of losses in equity method investments | (413,468,171) | (59,947,250) | 113,293,965 | 243,793,371 |
Share of income/(loss) in equity method investments, net of tax | (1,598,301) | (231,732) | 382,874 | 909,365 |
Net income/(loss) | (415,066,472) | (60,178,982) | 113,676,839 | 244,702,736 |
Net loss attributable to noncontrolling interests | 32,849,513 | 4,762,732 | 3,761,411 | 16,641,655 |
Net income/(loss) attributable to ordinary shareholders | (382,216,959) | (55,416,250) | 117,438,250 | 261,344,391 |
Other comprehensive loss, net of tax | ||||
Foreign currency translation adjustments, net of tax of nil | (11,361,872) | (1,647,317) | (6,497,403) | (19,714,207) |
Unrealized gains(loss) on available-for-sale investments, net of tax | (2,786,931) | (404,067) | 2,791,663 | |
Other comprehensive loss, net of tax | (14,148,803) | (2,051,384) | (3,705,740) | (19,714,207) |
Comprehensive income/(loss), net of tax | (429,215,275) | (62,230,365) | 109,971,099 | 224,988,529 |
Comprehensive loss attributable to noncontrolling interests | 32,849,513 | 4,762,731 | 3,761,411 | 16,641,655 |
Comprehensive income/(loss) attributable to ordinary shareholders | ¥ (396,365,762) | $ (57,467,634) | ¥ 113,732,510 | ¥ 241,630,184 |
Class A ordinary shares | ||||
Earnings/(Loss) per share | ||||
Basic earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Diluted earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic | 68,201,056 | 68,201,056 | 68,286,954 | 68,286,954 |
Weighted average shares outstanding diluted | 68,201,056 | 68,201,056 | 68,286,954 | 68,286,954 |
Class B ordinary shares | ||||
Earnings/(Loss) per share | ||||
Basic earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Diluted earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Weighted average shares outstanding diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Leased and operated hotels revenues | ||||
Revenues: | ||||
Total revenues | ¥ 338,506,220 | $ 49,078,788 | ¥ 391,960,031 | ¥ 227,074,041 |
Franchise and managed hotels revenues | ||||
Revenues: | ||||
Total revenues | 582,441,077 | 84,446,018 | 774,359,348 | 677,480,818 |
Others | ||||
Revenues: | ||||
Total revenues | ¥ 15,853,985 | $ 2,298,612 | ¥ 39,826,579 | ¥ 25,455,237 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Due from related parties | ¥ 12,333 | ¥ 544,352 | ¥ 21,336,855 | $ 1,788 | |
Hotel operating costs | |||||
Due to related parties | 20,754 | 889,140 | 764,045 | 3,009 | |
Selling and marketing expenses | |||||
Due to related parties | 6,167,777 | 9,438,030 | 6,021,433 | $ 894,243 | |
Leased and operated hotels revenues | |||||
Revenue from related parties | 47,704 | $ 6,916 | 288,392 | 320,179 | |
Franchise and managed hotels revenues | |||||
Revenue from related parties | ¥ 1,285,068 | $ 186,317 | ¥ 1,251,888 | ¥ 852,287 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Common Class A Class A Treasury stock CNY (¥) shares | Common Class A Class A Treasury stock USD ($) shares | Common Class A CNY (¥) shares | Common Class A USD ($) shares | Common Class B CNY (¥) shares | Common Class B USD ($) shares | Additional Paid-in Capital CNY (¥) | Additional Paid-in Capital USD ($) | Retained Earnings CNY (¥) | Retained Earnings USD ($) | AOCI Attributable to Parent CNY (¥) | AOCI Attributable to Parent USD ($) | Parent CNY (¥) | Parent USD ($) | Noncontrolling Interest CNY (¥) | Noncontrolling Interest USD ($) | CNY (¥) | USD ($) |
Balance at Dec. 31, 2019 | ¥ 219,526,699 | ¥ 115,534,210 | ¥ 1,152,108,217 | ¥ 308,698,533 | ¥ 65,300,854 | ¥ 1,861,168,513 | ¥ 156,591,494 | ¥ 2,017,760,007 | ||||||||||
Balance, shares beginning at Dec. 31, 2019 | shares | 67,416,046 | 67,416,046 | 34,762,909 | 34,762,909 | ||||||||||||||
Issuance of Class A ordinary shares as a payment to the acquisition of Urban | ¥ 3,060,371 | (3,060,371) | ||||||||||||||||
Issuance of Class A ordinary shares as a payment to the acquisition of Urban, shares | shares | 870,908 | 870,908 | ||||||||||||||||
Capital contribution from noncontrolling interest holders | 6,943,589 | 6,943,589 | ||||||||||||||||
Net income(loss) | 261,344,391 | 261,344,391 | (16,641,655) | 244,702,736 | ||||||||||||||
Foreign currency translation adjustments | (19,714,207) | (19,714,207) | (19,714,207) | |||||||||||||||
Share-based compensation | 232,558 | 232,558 | 232,558 | |||||||||||||||
Balance at Dec. 31, 2020 | ¥ 222,587,070 | ¥ 115,534,210 | 1,149,280,404 | 570,042,924 | 45,586,647 | 2,103,031,255 | 146,893,428 | 2,249,924,683 | ||||||||||
Balance, shares at Dec. 31, 2020 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 | ||||||||||||||
Distribution to the shareholders | (361,182,556) | (361,182,556) | (361,182,556) | |||||||||||||||
Capital contribution from noncontrolling interest holders | 8,191,000 | 8,191,000 | ||||||||||||||||
Acquisition of noncontrolling interest | (360,861) | (360,861) | (657,526) | (1,018,387) | ||||||||||||||
Acquisitions of subsidiaries and business | 34,576,536 | 34,576,536 | ||||||||||||||||
Net income(loss) | 117,438,250 | 117,438,250 | (3,761,411) | 113,676,839 | ||||||||||||||
Foreign currency translation adjustments | (6,497,403) | (6,497,403) | (6,497,403) | |||||||||||||||
Unrealized gains on available-for-sale investments | 2,791,663 | 2,791,663 | 2,791,663 | |||||||||||||||
Share-based compensation | 2,464,763 | 2,464,763 | 2,464,763 | |||||||||||||||
Balance at Dec. 31, 2021 | ¥ 222,587,070 | ¥ 115,534,210 | 1,151,384,306 | 326,298,618 | 41,880,907 | 1,857,685,111 | 185,242,027 | 2,042,927,138 | ||||||||||
Balance, shares at Dec. 31, 2021 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 | ||||||||||||||
Capital contribution from noncontrolling interest holders | 400,000 | 400,000 | ||||||||||||||||
Net income(loss) | (382,216,959) | (382,216,959) | (32,849,513) | (415,066,472) | $ (60,178,982) | |||||||||||||
Share consideration for disposal of Urban | ¥ (16,971,057) | (16,971,057) | (16,971,057) | |||||||||||||||
Share consideration for disposal of Urban, shares | shares | (870,908) | (870,908) | ||||||||||||||||
Deconsolidation or disposal of subsidiaries | (108,190,481) | (108,190,481) | ||||||||||||||||
Foreign currency translation adjustments | (11,361,872) | (11,361,872) | (11,361,872) | (1,647,317) | ||||||||||||||
Unrealized gains on available-for-sale investments | (2,786,931) | (2,786,931) | (2,786,931) | (404,067) | ||||||||||||||
Share-based compensation | (62,356) | (62,356) | (62,356) | |||||||||||||||
Balance at Dec. 31, 2022 | ¥ (16,971,057) | $ (2,460,572) | ¥ 222,587,070 | $ 32,272,092 | ¥ 115,534,210 | $ 16,750,886 | ¥ 1,151,321,950 | $ 166,925,992 | ¥ (55,918,341) | $ (8,107,397) | ¥ 27,732,104 | $ 4,020,776 | ¥ 1,444,285,936 | $ 209,401,777 | ¥ 44,602,033 | $ 6,466,687 | ¥ 1,488,887,969 | $ 215,868,464 |
Balance, shares at Dec. 31, 2022 | shares | 68,201,056 | 68,201,056 | 34,762,909 | 34,762,909 | ||||||||||||||
Balance, shares ending (Treasury stock) at Dec. 31, 2022 | shares | (870,908) | (870,908) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Operating activities: | ||||
Net income(loss) | ¥ (415,066,472) | $ (60,178,982) | ¥ 113,676,839 | ¥ 244,702,736 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 109,873,526 | 15,930,164 | 98,110,657 | 65,869,971 |
Share of (gains)losses in equity method investments | 1,598,301 | 231,732 | (382,874) | (909,364) |
Impairment of goodwill | 91,236,480 | 13,228,046 | 0 | |
Impairment of intangible assets with indefinite life | 12,000,345 | 1,739,886 | ||
Impairment of long-lived assets | 48,306,360 | 7,003,764 | ||
Noncash lease expense | 176,432,750 | 25,580,344 | ||
(Gains)losses from disposal of subsidiaries | 16,117,056 | 2,336,753 | 118,443 | (1,779,000) |
Interest income | (844,175) | (122,394) | (3,669,643) | (11,542,121) |
Bad debt expenses | 428,304,998 | 62,098,387 | 132,591,726 | 29,953,404 |
Losses and impairment (Gains) on equity securities held | 62,156,235 | 9,011,807 | (9,137,875) | 44,506,823 |
Losses on disposal of property and equipment | 1,303,452 | 188,983 | 604,017 | |
Foreign exchange losses (gains) | (17,668,367) | (2,561,672) | (1,310,346) | 4,723,948 |
Share-based compensation | (62,356) | (9,041) | 2,464,763 | 232,558 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (56,670,603) | (8,216,465) | (22,329,328) | (28,789,041) |
Prepaid rent | (1,857,100) | 5,196,798 | ||
Inventories | (793,081) | (114,986) | 1,495,974 | (1,281,009) |
Amounts due from related parties | (4,464,609) | (647,307) | (3,963,547) | 10,329,181 |
Other current assets | 46,230,006 | 6,702,721 | (60,345,480) | (18,807,170) |
Other assets | (2,349,148) | (340,594) | (49,214,290) | (19,680,102) |
Accounts payable | 574,260 | 83,260 | 4,520,260 | 4,546,551 |
Amounts due to related parties | 4,282,327 | 620,879 | 6,332,374 | (319,778) |
Salary and welfare payable | 10,100,358 | 1,464,414 | 8,586,978 | 8,913,678 |
Deferred revenue | (75,948,621) | (11,011,515) | (53,595,903) | (59,516,154) |
Advance from customers | (16,334,755) | (2,368,317) | 5,468,230 | (5,800,119) |
Accrued expenses and other current liabilities | 88,799,912 | 12,874,777 | 71,545,537 | 13,169,672 |
Income tax payable | (169,894) | (24,632) | (16,586,604) | (6,354,794) |
Unrecognized tax benefits | 20,738,820 | 3,006,846 | 38,140,379 | 29,038,185 |
Operating lease liabilities | (106,975,668) | (15,510,014) | ||
Deferred rent | 40,770,544 | 6,997,755 | ||
Other long-term liabilities | (6,594,188) | (956,067) | 14,648,804 | (5,549,798) |
Deferred taxes | (121,900,554) | (17,673,919) | 44,292,605 | (12,595,878) |
Net cash provided by operating activities | 292,212,695 | 42,366,858 | 360,975,140 | 295,256,932 |
Investing activities: | ||||
Purchases of property and equipment | (69,012,279) | (10,005,840) | (341,715,516) | (111,929,994) |
Purchases of intangible assets | (108,028) | (15,663) | (201,746) | (887,893) |
Proceeds from disposal of property and equipment | 2,388,399 | 346,285 | 80,355 | |
Acquisitions, net of cash received | (147,608,325) | (18,415,807) | ||
Advances for acquisitions | (39,483,494) | (6,550,000) | ||
Collections of acquisition advances | 12,154,500 | 36,352,700 | ||
Advances for purchases of property and equipment | (219,346,261) | |||
Repayments from advances for purchases of property and equipment | 3,247,390 | 470,827 | 22,400,000 | |
Purchases of short-term investments | (161,760,000) | (23,452,995) | (378,189,082) | (206,596,401) |
Proceeds from maturities of short-term investments | 517,528,048 | 75,034,514 | 536,383,232 | 453,434,366 |
Proceeds from maturities of long-term time deposits | 50,000,000 | |||
Increase of long-term time deposits | (130,000,000) | (30,000,000) | ||
Purchases of investments in equity securities | (8,940,000) | (65,829,314) | ||
Proceeds from disposal of equity securities | 116,555,911 | 16,899,019 | 284,004,591 | 198,976 |
Proceeds from disposal of equity method investments | 6,380,000 | |||
Proceeds from disposal of subsidiaries | 79,666,586 | 11,550,569 | 1,693,391 | 2,183,350 |
Loans to related parties | (168,695,802) | (24,458,592) | (604,618,942) | (528,356,500) |
Repayment from related parties | 43,555,000 | 6,314,881 | 307,933,500 | 539,996,179 |
Loans to third parties | (14,628,629) | (2,120,952) | (36,944,271) | (62,000,000) |
Repayment from third parties | 1,638,833 | 237,608 | 55,127,367 | |
Loan to franchisees | (47,760,740) | (6,924,656) | (423,399,028) | (218,821,974) |
Repayment from franchisees | 95,844,426 | 13,896,136 | 133,380,285 | 99,209,300 |
Others | (1,018,387) | |||
Net cash used in/(generated from) investing activities | 398,459,115 | 57,771,141 | (928,388,186) | (111,552,657) |
Financing activities: | ||||
Distribution to the shareholders | (40,999,458) | (5,944,363) | (320,253,160) | |
Proceeds from bank loans | 99,800,000 | 14,469,640 | 808,000,000 | 160,000,000 |
Repayment of bank loans | (406,200,000) | (58,893,464) | (250,000,000) | (70,000,000) |
Loan from non-controlling interest | 5,103,299 | 739,909 | 9,689,903 | 20,585,804 |
Capital contribution from noncontrolling interest holders | 400,000 | 57,995 | 8,191,000 | 6,943,589 |
Payment for contingent consideration | (2,001,521) | |||
Net cash generated from/(used in) financing activities | (341,896,159) | (49,570,283) | 255,627,743 | 115,527,872 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1,072,948 | 155,563 | (1,344,197) | (7,664,261) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 349,848,599 | 50,723,279 | (313,129,500) | 291,567,886 |
Cash and cash equivalents and restricted cash at the beginning of the year | 320,598,609 | 46,482,428 | 633,728,109 | |
Cash and cash equivalents and restricted cash at the end of the year | 670,447,208 | 97,205,707 | 320,598,609 | 633,728,109 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (25,579,525) | (3,708,683) | (7,363,066) | (4,470,953) |
Income taxes paid | (53,827,717) | (7,804,285) | (78,296,994) | (105,591,179) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Consideration payable for acquisitions | 15,342,675 | |||
Share consideration of disposal of Urban Group | 16,971,057 | $ 2,460,572 | ||
Reconciliation of cash, cash and equivalents and restricted cash | ||||
Cash and cash equivalents | 637,150,219 | 298,428,709 | 611,358,209 | |
Restricted cash, current | 7,937,397 | 3,300,000 | ||
Restricted cash, non-current | 25,359,592 | 18,869,900 | 22,369,900 | |
Total cash, cash and equivalents and restricted cash shown in the statements of cash flow | ¥ 670,447,208 | ¥ 320,598,609 | ¥ 633,728,109 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES GreenTree Hospitality Group Ltd. (the “Company”) was incorporated in the Cayman Islands on October 18, 2017. Alex S. Xu is the founder, Chief Executive Officer (“CEO”) and controlling shareholder of the Company (through his shareholding of Class A ordinary shares and Class B ordinary shares of Green Tree Inns Hotel Management Group. Inc. “GTI”) which account for 78.59% of the voting interest of the Company (the “Founder”). In preparation of its initial public offering in the United States, the Company had undergone a reorganization in 2017 whereby the Company became the parent entity of its consolidated subsidiaries. As part of the reorganization, the business operations of the consolidated subsidiaries were transferred to the Company. In return, the Company issued 48,635,252 Class A ordinary shares and 42,716,957 Class B ordinary shares to GTI, a company controlled by the Founder (the “Reorganization”). Subsequent to the Reorganization, GTI became the sole shareholder of the Company. As the Company, its subsidiaries are all under the control of the Founder, the reorganization was accounted for as a transaction under common control in a manner similar to a pooling of interests. Therefore, the accompanying consolidated financial statements have been prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented. On March 11, 2018, 7,594,048 Class B ordinary shares were redesignated as Class A ordinary shares. On March 27, 2018, the Company completed an initial public offering (“IPO”) on the New York Stock Exchange. The Company offered 10,200,000 ADSs representing 10,200,000 Class A ordinary shares at USD14.00 per ADS. Net proceeds from the IPO deducting underwriting discount were USD133,518,000. IPO costs of RMB30,827,578 were recorded as reduction of the proceeds from the IPO in shareholders’ equity. On January 25, 2019 and June 27, 2019, the Company issued an aggregate of 626,746 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 60% equity interest mainly in Argyle Hotel Management (Beijing) Co., Ltd (“Argyle Beijing”). On January 15, 2020, the Company issued 870,908 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 70% equity interest in Shandong Xinghui Urban Hotel Management Group Co., Ltd (“Urban”). On December 20, 2021, the Company announced that its board of directors approved the payment of a cash dividend of USD0.55 per ordinary share and the total amount of cash distributed for the dividend was USD56,667,425, among which USD50,243,715 (equivalent to RMB320,253,160) was paid in 2021 and the rest USD6,423,710 (equivalent to RMB40,999,458) was paid in January 2022. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) The Company and its subsidiaries are hereinafter referred to as the Group. The principal business activities of the Group are to develop leased-and-operated and franchised-and-managed economy hotels under the “GreenTree” brand in the PRC. The Group’s major direct and indirect invested subsidiaries consist of the following as of December 31, 2022: Date of Incorporation, Percentage of Merger or Place of Major Major subsidiaries Ownership Acquisition Incorporation Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. (“Shanghai Evergreen”) 100 % October 20, 2011 PRC Information technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co., Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co., Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co., Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co., Ltd. 100 % May 3, 2018 PRC Hotel property Suzhou Ganglongkaiyuan Hotel Management Co., Ltd. 100 % May 31, 2019 PRC Hotel property Shanghai Sipei Technology Co., Ltd. (“Shanghai Sipei”) 100 % October 20, 2011 PRC Information technology services Since June 2022 , the Group deconsolidated Argyle Beijing and its subsidiaries due to loss of effective control (Note 4). In November 2022, the Group deconsolidated Urban and its subsidiaries (Note 4). 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) Leased-and-operated hotels The Group owns hotel property or leases hotel properties from property owners and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the “GreenTree” brand, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease, most initial terms of which ranges from 5 to 22 years. Franchised-and-managed hotels The Group enters into franchise arrangements with property owners or franchisees who lease hotel properties from property owners for which the Group is not responsible for employee recruiting and compensation, except for the general manager of most franchised-and-managed hotels. Under a typical franchise agreement, the franchisee is required to pay an initial franchise fee and recurring franchise management fees equal to a certain percentage of the revenues of the hotel. The franchisee is responsible for the costs of hotel development and customization and the costs of its operations. The term of the franchise agreement is 5 to 20 years and is renewable only upon a mutual agreement between the Group and the franchisee. |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, fair value measurement and impairment of investments, the useful lives and impairment of property and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, purchase price allocation, share-based compensation arrangements and discount rate used to measure lease liabilities. Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits placed with commercial banks or other financial institutions and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. All cash and cash equivalents are unrestricted as to withdrawal and use. Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantees for prepaid cards and borrowings and deposits restricted due to lawsuit. Investments Short-term investment s Short-term investments include time deposits with maturities of less than one year and investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in debt in accordance with ASC topic 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as “held-to-maturity”, “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities, are included in earnings. Any realized gains or losses on the sale of the short-term investments, are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. The securities that the Group has the positive intent and the ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. Investments in equity securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321, Investments – Equity Securities (“ASC 321”). These securities have readily determinable fair values and are generally held for resale in anticipation of short-term market movements and therefore the Group classifies them as investment in equity securities in current assets which are carried at fair value at each balance sheet date. Gains and losses, both realized and unrealized, are included in (Losses and impairment) Gains on equity securities held in the consolidated statements of comprehensive income/(loss). 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments (continued) Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with and without readily determinable fair values and an available-for-sale debt investment. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized (Losses and impairment) Gains on equity securities held in the consolidated statements of comprehensive income/(loss). For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures The available-for-sale debt investment is redeemable shares issued by a private company that is redeemable any time at the Group’s option, which are remeasured at fair value. All changes in the carrying amount of these debt investments are recognized in other comprehensive income/(loss). An impairment loss on the available-for-sale debt investments, if any, is recognized in earnings when the decline in value is determined to be other-than-temporary. The amount of the total other-than-temporary impairment related to the credit loss shall be recognized in earnings. The amount of the total other-than-temporary impairment related to other factors shall be recognized in other comprehensive income/(loss), net of applicable taxes. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Accounts receivable, net of allowance for doubtful accounts Trade receivables mainly consist of franchise fees receivable, rental amounts due from individual and corporate customers and travel agents, and sublease rental receivables due from third-party merchandisers, which are recognized and carried at the original invoice amounts less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific franchisees, customers, and merchandisers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables are expensed when used. Loans receivable Loans receivable are carried at the original loan principal and accrued interest based on the contract rate, less an allowance for uncollectible accounts, as appropriate. The Group classified loans receivable as long-term or short-term investments according to their contractual maturity. The allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. As of December 31, 2021 and 2022, all loans receivable which are past due are nonaccrual. Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income/(loss) as the difference between the net sales proceeds and the carrying amount of the underlying asset. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion, and are measured at fair value upon acquisition. Favorable leases acquired in business combinations before the adoption of ASC Topic 842, Leases (“ASC 842”) are amortized over the remaining operating lease term. Reacquired rights represent the franchise right the Group previously granted to the acquiree through franchise agreements and are amortized over the next renewal date in the applicable agreement. The favorable lease agreements lease agreements in which the Group acts as a lessee were reclassified to operating lease right-of-use assets on January 1, 2022, upon adoption of ASC 842, Leases, which are amortized combining with right-of-use assets over remaining operating lease terms. The favorable lease agreements in which the Group acts as a lessee were accounted as intangible assets as before, which are amortized over remaining operating lease terms. Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5-10 years Reacquired rights the remaining franchise term The Group at the end of each reporting period evaluates whether events and circumstances continue to support the indefinite useful life of relevant intangible assets. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. Impairment loss is recognized based on the excess of the carrying value of the indefinite-lived intangible asset over its fair value at the time of the assessment. As of December 31, 2020 and 2021, the estimated fair values of the indefinite-lived intangible assets significantly exceeded of their respective carrying values. No impairment loss was recognized for the intangible assets the years ended December 31, 2020 and 2021 and an impairment loss of RMB 12,000,345 (USD 1,739,886) of indefinite-lived trademark was recorded in other general expenses in the consolidated statement of comprehensive loss before the deconsolidation of Urban during the year ended December 31, 2022 (Note 4). 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2020 and 2021 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill In accordance with ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment In 2020, the Group elected to choose to bypass the qualitative assessment and proceed directly to perform a quantitative test. In 2021, the Group performed a qualitative assessment for its operating unit. No impairment was recorded for the years ended December 31, 2020 and 2021. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Goodwill (continued) The Group adopted ASU 2017-04 on January 1, 2022 on a prospective basis. which requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. Impairment loss of RMB91,236,480 (USD13,228,046) of goodwill was recorded before the Group deconsolidated Argyle Beijing and Urban during the year ended December 31, 2022(Note 4). Impairment of long-lived assets The Group evaluates its property and equipment, other finite-lived assets and operating lease right-of-use assets for impairment individually or as a group at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of the other assets and liabilities. Whenever events or changes in circumstances indicate that these assets may not be recoverable, the Group compares the carrying amount of the asset (or group of assets) to the sum of future undiscounted net cash flows expected to result from the use of the asset (or group of assets) and its eventual disposition. If the carrying amount is higher than the sum of undiscounted future cash flows, an impairment loss is measured based on the excess of the carrying amount of the asset (or group of asset) over its fair value. The carrying amount of the asset (or the long-lived assets in the asset group on a pro rata basis using the relative carrying amounts) is reduced to the extent not lower than the fair value of the asset. The adjusted carrying amounts after an impairment charge represent the new cost basis and is depreciated over their remaining useful lives. No impairment was recorded for the years ended December 31, 2020 and 2021. During the year ended December 31, 2022, due to the continued underperformances relative to the projected operating results, the Group recorded a total impairment loss of RMB 48,306,360 (USD 7,003,764) for certain hotels, among which RMB 28,395,905 (USD 4,117,019) were recorded before the deconsolidation of Argyle Beijing and Shandong Xinhui (Note 4). Revenue recognition Leased and operated hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Each of these products and services represents an individual performance obligation and, in exchange for these services and goods, the Group receives fixed amounts based on fixed rates or fixed standalone selling price. Revenue is recognized when rooms are occupied, and food and beverages are sold as the respective performance obligations are satisfied. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Leased and operated hotel revenues (continued) Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties. In accordance with the provisions of ASC 842, since the Group has not been relieved as the primary obligor of the head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. The Group’s practice has been, and will continue to, straight-line the sub-lease income over the term of the sublease, which is consistent with the accounting treatment under ASC 840. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income/(loss) amounted to RMB77,676,665, RMB74,689,226 and RMB61,578,703 (USD8,928,073) for the years ended December 31, 2020, 2021 and 2022, respectively. Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: ● Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. ● System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. ● Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Franchise and managed hotel revenues (continued) Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, the Group has a performance obligation to provide franchisees a license to its hotel system intellectual property for use of certain of its brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. The hotel manager fee is recognized as revenue on a monthly basis. During the years ended December 31, 2020, 2021 and 2022, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB112,729,886, RMB131,027,473 and RMB115,738,098 (USD16,780,447), respectively. Other Revenues Other revenues are derived from selling of goods through the Company’s online mall and sale of hotel related products to franchisees. Revenues are recognized upon customers’ acceptance. Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three five years 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Membership Program (continued) Membership points that are earned by members when they stay at the hotels represent a material right to free or discounted goods or services in the future. The membership program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. The amount of revenue the Group recognize upon point redemption is impacted by the estimate of the “breakage” for points that members will never redeem, which amount were included in revenues from leased and operated hotel or revenues from franchised and managed hotels depending on the type of hotels the membership was sold at. The Group estimates breakage based on the Group’s historical experience and expectations of future member behavior and will true up the estimated breakage at end of each period. The Group recognized revenue net of reimbursement paid to franchisees as its performance obligation is to facilitate the transaction between the member and the franchised and managed hotels. PRC Value-Added Taxes and related tax surcharges Starting from May 2016, the accommodation services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income/(loss) as incurred, and amounted to RMB38,934,867, RMB22,906,044 and RMB12,347,881 (USD1,790,274) for the years ended December 31, 2020, 2021 and 2022, respectively. Government subsidies Government subsidies are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. During the years ended December 31, 2020, 2021 and 2022, the Group received financial subsidies of RMB20,094,745, RMB16,993,539 and RMB11,466,168 (USD1,662,438), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. Interest Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Leases Operating Leases – Lessee under ASC 842 The Group leases hotel properties from property owners. In evaluating whether an agreement constitute a lease. the Group reviews the contractual terms to determine which party obtains both the economic benefits and control of the assets at the inception of the contract. The Group categorizes leases with contractual terms longer than twelve months as either operating or finance lease at the commencement date of a lease. However, the Group has no finance leases for any of the periods presented. The Group recognizes a lease liability for future fixed lease payments and a right-of-use (“ROU”) asset representing the right to use the underlying asset for the lease term. The lease term is based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise the option. Lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term using the rate implicit in the lease, if available, or the Group’s incremental borrowing rate. As its leases do not provide an implicit borrowing rate, the Group uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. Current maturities of operating lease liabilities are classified as operating lease liabilities, current in the Group’s consolidated balance sheets. Most leases have initial terms ranging from 5 to 22 years. The Group’s lease agreements may include non-lease components, mainly common area maintenance, which are combined with the lease components as the Group elects to account for these components as a single lease component, as permitted. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Group’s lease agreements do not contain any significant residual value guarantees or restricted covenants. The ROU assets are measured at the amount of the lease liabilities with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by the Group, deferred rent and lease incentives, and any off-market terms (that is, favorable or unfavorable terms) present in the lease when the Group acquired leases in a business combination in which the acquiree acts as a lessee. The Group evaluates the carrying value of ROU assets if there are indicators of impairment and reviews the recoverability of the related asset group. The Group reassesses of a contract is or contains a leasing arrangement and re-measures ROU assets and liabilities upon modification of the contract. The Group will derecognize ROU assets and liabilities, with difference recognized in the income statement on the contract termination. Operating Leases – Lessee under ASC 840 Before January 1, 2022, leases where the Group is the lessee, and substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are recognized on a straight-line basis over the lease term. Certain of the operating lease agreements contain rent holidays. Rent holidays are considered in determining the straight-line rent expense to be recorded over the lease term. Operating Leases – Sublease under ASC 842 and ASC 840 The Group subleases property which are not used to operate hotels to third parties under operating leases. In accordance with the provisions of ASC 842, since the Group has not been relieved as the primary obligor of the head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. Our practice has been, and will continue to, straight-line the sub-lease income over the term of the sublease, which is consistent with the accounting treatment under ASC 840. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each tax audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group has elected to include interest and penalties related to an uncertain tax position in “income tax expense (benefit)” in the consolidated statements of comprehensive income/(loss). Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of PRC subsidiaries of the Company are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATIONS Business combinations in 2021: During the years ended 2021, the Group completed three business combinations. The total consideration amounted to RMB23,000,000 (USD3,609,202). The consideration paid is RMB19,530,000 (USD3,064,683). The results of the acquired hotel’s operation have been included in the Company’s consolidated financial statements since its respective dates of acquisition. The Group completed the valuations necessary to assess the fair value of the acquired assets and liabilities and the non-controlling interests (if applicable) with the assistance from an independent valuation firm, resulting from which the amounts of goodwill were determined and recognized as of the respective acquisition dates. Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions. The initial accounting is incomplete as the valuations of intangible assets. The net revenue and net loss of the acquire included in the consolidated statements of operations for the year ended December 31, 2021 were not material. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Company’s consolidated results of operations. The following is a summary of the fair values of the aggregate assets acquired and liabilities assumed: 2021 Amortization Period Property and equipment 92,075 3-5 years Intangible assets Trademark 36,896,000 10 years Goodwill 20,588,461 Noncontrolling interest (34,576,536) Total 23,000,000 Business combinations in 2020: During the years ended 2020, the Group completed one business combinations of one hotel. The total consideration amounted to RMB2,200,000, among which RMB153,251 was allocated to goodwill. The business acquisition was accounted for under purchase accounting. The acquired hotel was considered insignificant. The results of the acquired hotel’s operation have been included in the Company’s consolidated financial statements since its respective dates of acquisition. |
DECONSOLIDATIONS
DECONSOLIDATIONS | 12 Months Ended |
Dec. 31, 2022 | |
DECONSOLIDATIONS | |
DECONSOLIDATIONS | 4. Deconsolidation of Argyle The Group became the major shareholder of Argyle Beijing and its subsidiaries (“Argyle”) since April 2019. Starting late May 2022, the Group has been in a dispute with Mr. Kevin Zhang, the minority shareholder of Argyle, as to the performance of relevant transaction documents and/or compliance with local laws and regulations by Mr. Zhang. As a result, the Group no longer has the power and ability to direct the relevant activities of Argyle, and therefore, has deconsolidated it since June 2022. The Group conducted an impairment assessment and recorded impairment of RMB 17,054,641 (USD 2,472,691 ), RMB 700,762 (USD 101,600 ) and RMB 42,198,903 (USD 6,118,266 ) for the property and equipment, intangible assets with definite lives and goodwill respectively, related to the business of Argyle before the deconsolidation. The Group measured the retained interest in Argyle at the then fair value of RMB 48,000,000 (US $6,959,346 ) estimated with the assistance of a third-party independent valuer and recorded a disposal loss of RMB 13,944,925 (USD 2,021,824 ). The impairment of property and equipment, intangible assets with definite lives and disposal losses are included in “Other general expenses” in the consolidated statements of comprehensive income/(loss) before and upon the deconsolidation in 2022. The Group has been and will continue to vigorously pursue all legal remedies available to it; however, it has not been able to make any management decisions or have any meaningful influence over the operation of Argyle. Therefore, the Group accounts for its equity interests in Argyle using the measurement alternative method under ASC 321 (Note 11) and an impairment loss of RMB 42,000,000 (USD 6,089,428) was subsequently recorded in “(Losses and impairment) Gains on equity securities held” in the consolidated statements of comprehensive income/(loss) for the year ended December 31, 2022. The carrying value of the investment in Argyle at December 31, 2022 was insignificant. The Group estimated fair value using the income approach and the market approach. The fair value determined using the income approach was compared with comparable market data and reconciled, as necessary , which is determined by using information including but not limited to the future cash flow forecast, discount rate, and a discount for lack of marketability and control. Deconsolidation of Urban In November 2022, the Group and the minority shareholder of Urban entered into definitive agreements for the minority shareholder and its designated person to repurchase all of the equity interest in Urban and its subsidiaries held by the Group. As of November 25, 2022, the transaction was completed and since then the Group deconsolidated Urban. The total consideration of RMB 142,971,057 consisted of 870,908 ordinary shares of the Company with a fair value of RMB 16,971,057 (USD 2,460,572 ) and RMB 126,000,000 (USD 18,268,283 ) in cash. RMB 88,200,000 (USD 12,787,798 ) of total cash consideration was received in 2022 and the remaining receivables are included in “Other current assets” of consolidated balance sheets as of December 31,2022. The shares were received in March 2023. The Group conducted impairment assessments and recognized impairment losses of RMB 12,000,345 (USD 1,739,886 ), and RMB 10,640,502 (USD 1,542,728 ) for the trademark with indefinite life and property and equipment, respectively, before the deconsolidation. The Group also recorded an impairment loss of RMB 49,037,576 (USD 7,109,780 ) for the goodwill related to the business of Urban and recognized a disposal loss of RMB 855,223 (USD 123,996 ). All impairment losses of long-lived assets excluding goodwill and disposal losses are included in other general expenses in the consolidated statements of comprehensive income/(loss). The Group estimated fair value using the income approach and the market approach. The fair value determined using the income approach was compared with comparable market data and reconciled, as necessary. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 5. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Leased and operated hotels revenues 227,074,041 391,960,031 338,506,220 49,078,788 Franchise and managed hotels revenues 677,480,818 774,359,348 582,441,077 84,446,018 Initial franchise fee 61,051,369 76,263,574 42,423,951 6,150,894 Continuing franchise fees 616,429,449 698,095,774 540,017,126 78,295,124 Others 25,455,237 39,826,579 15,853,985 2,298,612 Total 930,010,096 1,206,145,958 936,801,282 135,823,418 Substantially all revenues are generated in the PRC. Contract Balances The Group’s payments from customers are based on the billing terms established in contracts. Customer billings are classified as accounts receivable when the Group’s right to consideration is unconditional. If the right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Our contract assets are insignificant at December 31, 2021 and December 31, 2022. Payments received in advance of performance under the contract are classified as current or non-current contract liabilities on the Group’s consolidated balance sheets and are recognized as revenue as the Group performs under the contract. Years Ended December 31, 2021 2022 2022 RMB RMB USD Advance from customers 39,773,738 18,681,010 2,708,492 Deferred revenue-current 215,147,975 189,105,747 27,417,756 Deferred revenue-non current 314,472,488 232,695,351 33,737,655 Total contract liabilities 569,394,201 440,482,108 63,863,903 5. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Contract Balances (continued) The deferred revenue balances above, as of December 31, 2021 and 2022 were comprised of the following: Years Ended December 31, 2021 2022 2022 RMB RMB USD Initial fees received from franchisees owners 248,406,284 190,381,636 27,602,743 Cash received for membership fees and not recognized as revenue 186,976,973 138,656,460 20,103,297 Cash received for prepaid card and sublease 47,604,011 40,622,136 5,889,656 Deferred revenue related to the membership program 46,633,195 52,140,866 7,559,715 Total deferred revenue 529,620,463 421,801,098 61,155,411 The Group recognized revenues that were previously deferred as contract liabilities of RMB183,736,546 and RMB179,416,343 (USD26,012,925) during the years ended December 31, 2021 and 2022, respectively. Revenue Allocated to Remaining Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2022, the Group had RMB190,381,636 (USD27,602,743) of deferred revenues related to initial fees received from franchisees owners are expected to be recognized as revenues over the remaining contract periods over one one The Group did not estimate revenues expected to be recognized related to the Group’s unsatisfied performance for the following: ● Revenues related to on-going management and franchise service fees, as they are considered sales-based royalty fees. ● Revenues related to central reservation system usage fees, IT system maintenance fees, and reimbursement for hotel manager fee, as the related revenues from the satisfaction of these performance obligations is recognized when the Group is entitled to invoice the amount. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
LOANS RECEIVABLE, NET | |
LOANS RECEIVABLE, NET | 6. LOANS RECEIVABLE, NET Loans receivable, net is comprised of the following: As of December 31, 2021 2022 2022 RMB RMB USD Loans receivable, current portion Franchisees 308,016,920 197,473,408 28,630,953 Third parties 45,216,904 38,862,429 5,634,523 Less: bad debt provision (105,703,244) (54,668,667) (7,926,212) Total 247,530,580 181,667,170 26,339,264 Loans receivable, non-current portion Franchisees 294,150,438 373,477,244 54,149,110 Third parties 9,000,000 28,344,271 4,109,533 Less: bad debt provision (12,182,758) (224,649,006) (32,571,044) Total 290,967,680 177,172,509 25,687,599 Loans receivable to franchisees represent loan agreements entered with certain franchisees to finance the renovation of certain franchised-and-managed hotels with maturity from one month to six years and the interest rate from 4.7% to 9.9% per annum. Loans receivable to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from one year to three years and the interest rate from 7.9% to 18.0% per annum. As of December 31, 2021 and 2022, the Group recognized an allowance of RMB117,886,002 and RMB 279,317,673 (USD40,497,256) in relation to loans to third parties and certain franchisees in Other general operating expenses in the consolidated statements of comprehensive income/(loss). The following table presents the aging of past-due gross loans receivable as of December 31, 2021 and 2022: 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB RMB December 31, 2021 42,412,387 25,028,613 33,136,695 39,751,902 140,329,597 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB RMB December 31, 2022 37,705,971 17,747,676 95,949,547 134,179,464 285,582,658 December 31, 2022 (USD) 5,466,852 2,573,171 13,911,377 19,454,193 41,405,593 6. LOANS RECEIVABLE, NET (CONTINUED) Movement of allowance for loans receivable for the year ended December 31, 2021 and 2022 are as follows: Years Ended December 31, 2021 2022 2022 RMB RMB USD Balance of the beginning of the year 18,000,000 117,886,002 17,091,864 Provision 99,886,002 161,431,671 23,405,392 Balance of the end of the year 117,886,002 279,317,673 40,497,256 Evaluated for impairment on an individual basis 117,886,002 116,852,875 16,942,074 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of December 31, 2021 2022 2022 RMB RMB USD Buildings 626,908,935 637,783,560 92,469,924 Leasehold improvements 630,691,571 598,805,361 86,818,616 Furniture, fixtures and equipment 93,440,638 100,499,326 14,571,033 Motor vehicles 3,204,381 2,493,487 361,522 Total 1,354,245,525 1,339,581,734 194,221,095 Less: Accumulated depreciation (436,314,189) (506,440,843) (73,427,020) Impairment — (19,910,455) (2,886,745) 917,931,336 813,230,436 117,907,330 Construction in progress 127,424,929 21,541,245 3,123,187 Property and equipment, net 1,045,356,265 834,771,681 121,030,517 Depreciation expense was RMB59,719,535, RMB89,617,316 and RMB104,605,645 (USD15,166,393) for the years ended December 31, 2020, 2021 and 2022, respectively. As of 31 December, 2021 and 2022, two of the Group’s buildings with a net carrying amount of approximately RMB288,313,328 and RMB270,646,005 (USD39,239,982) were pledged to secure general banking facilities granted to the Group, respectively (Note 13). |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2021 2022 2022 RMB RMB USD Intangible assets with indefinite lives: Trademarks 443,300,000 — — Intangible assets with finite lives: Trademarks 41,620,493 41,435,000 6,007,510 Technology 4,200,000 4,200,000 608,943 Network rights 390,317 210,755 30,557 Purchased software 15,429,484 13,574,658 1,968,140 Reacquired rights 2,531,418 2,531,418 367,021 Favorable leases 42,095,848 — — Others 435,185 435,185 63,096 Total 550,002,745 62,387,016 9,045,267 Less: Accumulated amortization (29,885,266) (24,275,080) (3,519,556) Total. 520,117,479 38,111,936 5,525,711 The value of favorable lease agreements is amortized using the straight-line method over the remaining lease term before January 1, 2022. Favorable lease agreements in which the Group acts as a lessee were reclassified to operating lease right-of-use assets on January 1, 2022, upon adoption of ASC 842. Amortization expense of intangible assets for the years ended December 31, 2020, 2021 and 2022 amounted to RMB6,150,436, RMB8,493,341 and RMB5,267,881 (USD763,771), respectively. No impairment losses on intangible assets are recognized for the year ended December 31, 2020 and 2021. The Group recognized impairment losses of intangible assets with indefinite life and intangible assets with finite lives of RMB12,000,345 (USD1,739,886) and RMB700,762(USD101,600) respectively for the year ended December 31, 2022(Note 4). As of December 31,2022, there was no trademark with indefinite life, due to deconsolidation of Argyle and Urban. The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2023 5,360,169 777,151 2024 5,251,853 761,447 2025 4,849,872 703,165 2026 4,644,938 673,453 2027 4,298,162 623,175 Thereafter 13,706,942 1,987,320 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | 9. LEASES The Group has operating leases arrangements for their leased and operated hotels. A summary of supplemental information related to operating leases as of December 31, 2021 and 2022 is as follows: For the years ended December 31, 2022 2022 RMB USD Operating lease right-of-use assets 1,544,739,494 223,966,174 Operating lease liabilities, current 210,388,801 30,503,509 Operating lease liabilities, non-current 1,449,422,906 210,146,568 Total operating lease liabilities 1,659,811,707 240,650,077 Cash paid for amounts included in the measurement of operating lease liabilities 142,082,493 20,600,025 Right-of-use assets obtained in exchange for operating lease liabilities 4,852,371 703,528 Weighted average remaining lease term (in years) 11.59 Weighted average discount rate 4.44 % Lease expense for all the Group’s operating leases for the years ended December 31, 2020, 2021 and 2022 were RMB118,295,183, RMB235,568,383 and RMB 224,536,299(USD 33,522,387), respectively. A summary of maturity of operating lease liabilities under the Group’s non-cancelable operating leases as of December 31, 2022 is as follows: As of December 31, 2022 RMB USD 2023 282,807,254 41,003,197 2024 197,605,091 28,650,045 2025 192,081,787 27,849,241 2026 186,104,746 26,982,652 2027 167,736,439 24,319,498 Thereafter 1,135,384,672 164,615,304 Total future lease payments 2,161,719,989 313,419,937 Less: imputed interest 501,908,282 72,769,860 Total operating lease liabilities 1,659,811,707 240,650,077 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
GOODWILL | 10. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2022 were as follows: For the years ended December 31, 2021 2022 2022 RMB RMB USD Balance as of January 1 100,231,487 120,819,948 17,517,246 Acquisitions 20,588,461 — — Impairments (Note 4) — (91,236,480) (13,228,046) Balance as of December 31 120,819,948 29,583,468 4,289,200 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS | |
INVESTMENTS | 11. INVESTMENTS Short-term investments Short-term investments as of December 31, 2021 and 2022 consisted of the following: As of December 31, 2021 2022 2022 RMB RMB USD Investments in wealth management products 147,458,675 156,031,572 22,622,451 Time deposits 410,000,000 30,000,000 4,349,592 Total 557,458,675 186,031,572 26,972,043 Investments in equity securities with readily determinable fair values Equity securities with readily determinable fair value represent investments in the equity securities of publicly listed companies, for which the Group does not have significant influence. Total unrealized and realized gains and losses of investments in equity securities in current assets for the years ended December 31, 2020, 2021 and 2022 were as follows: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Total net (losses) recognized (27,272,299) (9,195,509) (2,622,450) (380,219) Less: Net realized gains(losses) on equity securities sold 2,314,688 (452,014) 11,294,390 1,637,533 Net unrealized (losses) recognized on equity securities held (29,586,987) (8,743,495) (13,916,840) (2,017,752) Long-term investments As at December 31, 2021 and 2022, long-term investments consisted of the following: As of December 31, 2021 2022 2022 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. 25,424,106 26,118,102 3,786,769 Other 10,787,859 8,495,562 1,231,741 Total equity method investments 36,211,965 34,613,664 5,018,510 Equity securities with readily determinable fair values 39,852,428 27,408,447 3,973,851 Equity securities without readily determinable fair values 6,233,255 9,826,143 1,424,657 Available-for-sale debt securities 106,493,137 103,706,206 15,035,986 Total 188,790,785 175,554,460 25,453,004 11. INVESTMENTS (CONTINUED) Equity securities with readily determinable fair values Total unrealized and realized gains and losses of equity securities with readily determinable fair values included in long-term investments for the years ended December 31, 2020, 2021 and 2022 were as follows: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Total net (losses) gains recognized (4,501,222) 15,623,340 (15,126,672) (2,193,161) Less: net realized gains on equity securities sold 4,746,032 14,058,448 — — Net unrealized (losses) recognized on equity securities held (9,247,254) 1,564,892 (15,126,672) (2,193,161) Equity securities without readily determinable fair values The equity investments without readily determinable fair value held as of December 31, 2021 and 2022 were as follows: As of December 31, 2021 2022 2022 RMB RMB USD Initial cost 3,523,212 51,523,212 7,470,164 Cumulative unrealized gains 2,710,043 302,931 43,921 Cumulative unrealized losses (including impairment) — (42,000,000) (6,089,428) Total carrying value 6,233,255 9,826,143 1,424,657 Available-for-sale debt securities In April 2017, the Group acquired a 30% interest in Yibon for cash consideration of RMB103,701,474 in form of capital injection into the target company. The terms of investment in 30% equity interest in the ordinary shares of Yibon includes a contingent redemption clause if certain specified criteria are not met. As a result, the investment was accounted for as a cost method investment as the shares are not in-substance common stock prior to January 1, 2019. Along with the adoption of ASU 2016-01, the Group accounted it as equity securities without readily determinable fair values. As of December 31, 2020, the performance period had elapsed and the criterion had been determined to be not met, therefore the Group has the option to require Yibon to redeem the investment at the Group’s discretion. Therefore, the Group reclassified it to available-for-sale debt security and recorded it at its fair value. The holders of 70% of equity interest in Yibon had the right to exchange their equity interest in Yibon into the Company’s shares within a certain period after Yibon delivered an audited consolidated financial report for the year of 2019 in accordance with a formula using Yibon’s net profit achieved in the year of 2019 as calculation basis. Yibon recorded a net loss in 2019, as such, those holders were unable to exchange their equity interests in Yibon for the Company’s shares. No impairment were recorded for this investments during any of other presented periods. 11. INVESTMENTS (CONTINUED) Short-term and long-term debt securities as of December 31, 2021 and 2022 were shown as below: As of December 31, 2021 Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Investments in wealth management products 147,458,675 — — — — 147,458,675 Available-for-sale debt securities of Yibon 103,701,474 2,791,663 — — — 106,493,137 As of December 31, 2022 Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Investments in wealth management products 156,031,572 — — — — 156,031,572 Available-for-sale debt securities of Yibon 103,701,474 2,791,663 (2,786,931) — — 103,706,206 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER ASSETS | |
OTHER ASSETS | 12. OTHER ASSETS As of December 31, 2021 2022 2022 RMB RMB USD Current Receivable from on-line payment platforms 53,983,324 27,079,159 3,926,109 Interest receivable 49,347,369 4,944,657 716,908 Deposits 11,168,379 7,974,326 1,156,169 Advance to suppliers 5,206,428 2,724,889 395,071 VAT recoverable 5,009,469 5,625,956 815,687 Others 18,022,194 44,502,363 6,452,237 Total 142,737,163 92,851,350 13,462,181 Non-current Acquisition deposits 6,650,200 804,329 116,617 Rental deposit 56,962,580 40,016,200 5,801,804 Interest receivable 5,737,675 8,048,083 1,166,862 Purchase and rental deposits for buildings 197,723,649 192,305,859 27,881,729 Returnable consideration from the acquisition of Urban Hotel Group 5,385,583 — — VAT recoverable 10,774,251 11,101,867 1,609,619 Others 46,132,402 34,636,103 5,021,763 Less: provision — (192,305,859) (27,881,729) Total 329,366,340 94,606,582 13,716,665 Purchase and rental deposits for certain real estate properties paid to a third party were full provided due to the financial crisis of the counterparty. The provision of RMB192,305,859 (US$27,881,279) was recorded in “Other general expense” of the consolidated statements of comprehensive loss for the year ended December 31, 2022. |
BANK LOANS
BANK LOANS | 12 Months Ended |
Dec. 31, 2022 | |
BANK LOANS | |
BANK LOANS | 13. BANK LOANS Short-term bank loans Short-term bank loans consisted of RMB denominated borrowings from financial institutions in the PRC that are repayable within one year. The weighted average interest rates for the outstanding short-term bank loans as of December 31, 2021 and 2022 were 4.42% and 4.10%, respectively. Long-term bank loans In December 2021, the Group entered into a secured loan agreement with Shanghai Pudong Development Bank, pursuant to which the Group was entitled to borrow a RMB denominated loan of RMB152,000,000 for interest rate at a fixed annual interest rate of 4% and maturity date on February 17, 2023. The Group collateralize such borrowing with short-term investments and long-term time deposits of RMB30,000,000 and RMB130,000,000, respectively. In December 2021, pursuant to the secured loan agreement with Bank of DaLian, the Group borrowed a secured RMB denominated loan of RMB200,000,000 for interest rate at a fixed annual interest rate of 5% and maturity date on December 27, 2024. The repayment of the loan was guaranteed by two buildings owned by the Group, which have a carrying amount of RMB270,646,005(USD39,239,982) as of December 31, 2022. As of December 31, 2022, aggregate loan principal payments on long-term borrowings are due according to the following schedule: Year ending December 31, RMB USD 2023 141,800,000 20,559,067 2024 160,000,000 23,197,819 Total 301,800,000 43,756,886 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 14. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2021 2022 2022 RMB RMB USD Payable to franchisees 155,853,992 204,789,935 29,691,750 Business taxes and related tax surcharge 111,076,878 115,813,719 16,791,411 Accrued rental 27,957,242 — — Construction payable 13,888,585 15,587,528 2,259,979 Deposits payable 17,269,154 19,652,737 2,849,379 Payable for business combination and asset acquisitions 15,342,675 13,342,676 1,934,506 Accrued utilities 1,177,631 3,355,489 486,500 Others 38,715,905 27,512,224 3,988,897 Total 381,282,062 400,054,308 58,002,422 |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER LONG-TERM LIABILITIES | |
OTHER LONG-TERM LIABILITIES | 15. OTHER LONG-TERM LIABILITIES As of December 31, 2021 and 2022, other long-term liabilities are mainly comprised of deposits from franchisees of RMB118,803,438 and RMB114,874,876 (USD16,655,291), respectively. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2022 | |
ORDINARY SHARES | |
ORDINARY SHARES | 16. ORDINARY SHARES The Group’s Class A and Class B ordinary shares are identical in all respects except for voting and conversion rights. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof, and Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. On all matters upon which the holders are entitled to vote, the Class A shares and Class B shares then outstanding shall constitute 39.3% and 60.7% of the total voting power of the issued and outstanding shares of the Group, respectively. |
HOTEL OPERATING COSTS
HOTEL OPERATING COSTS | 12 Months Ended |
Dec. 31, 2022 | |
HOTEL OPERATING COSTS | |
HOTEL OPERATING COSTS | 17. HOTEL OPERATING COSTS Hotel operating costs include all direct costs incurred in the operation of the leased-and-operated hotels and cost of providing franchise services and consist of the following: Year ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Rental 118,295,183 235,568,383 224,536,299 32,554,703 Utilities 15,372,385 25,782,913 27,877,272 4,041,825 Personnel cost 46,941,757 82,114,394 74,280,671 10,769,685 Depreciation and amortization 53,850,494 80,575,644 92,797,895 13,454,430 Consumable, food and beverage 43,257,796 69,495,702 41,281,830 5,985,302 Costs of hotel manager of franchised-and-managed hotels 91,664,745 114,779,305 107,852,170 15,637,095 Other costs of franchised-and-managed hotels 22,985,917 26,123,578 14,340,427 2,079,166 Others 9,291,029 16,936,986 11,052,758 1,602,500 Total 401,659,306 651,376,905 594,019,322 86,124,706 |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 18. SHARE BASED COMPENSATION 2018 Share Incentive Plan In January 2018, the Group adopted the 2018 Share Incentive Plan which allows the Group to offer incentive awards to employees, directors and consultants (the “Participants”). Under the 2018 Share Incentive Plan, the Group may issue incentive awards to the Participants to purchase not more than 9,000,000 Class A ordinary shares. The incentive awards granted under the Share Incentive Plans typically have a maximum life of six years and vest in typical ways as vest ratably over the following four years starting after the first/second/third anniversary of the stated vesting commencement date. Share-based compensation expense of RMB232,558 and RMB2,464,763 was recognized in general and administrative expenses for the years ended December 31, 2020 and 2021. Share-based compensation expense of RMB62,356(USD9,041) was reversed in general and administrative expenses due to forfeitures during the year ended December 31, 2022. During the year ended December 31, 2020, 2021 and 2022, cash used to settle the related share-based compensation is nil. For options granted during the years ended December 31, 2021 and 2022, the weighted-average grant date fair value for options granted was USD2.42 and USD1.34, respectively computed using the binomial option pricing model. The binomial model requires the input of subjective assumptions including the expected stock price volatility and the expected price multiple at which employees are likely to exercise stock options. The Group uses historical data to estimate forfeiture rate. Expected volatilities are based on the average volatility of the Group and comparable companies. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 18. SHARE BASED COMPENSATION (CONTINUED) The fair value of share options was estimated using the following significant assumptions: Granted in 2021 Granted in 2022 Risk-free interest rate 0.92 % 1.35 % Volatility 40 % 39 % Dividend yield 2.5 % 2.5 % Life of option 6 years 6 years 2018 Share Incentive Plan (continued) The aggregate grant date fair value of the outstanding options was determined to be RMB35,828,331, RMB34,994,421 and RMB35,706,209 (USD5,176,914) for the years ended December 31, 2020, 2021 and 2022, respectively and such amount shall be recognized as compensation expenses using the accelerate method for all employee share options granted. The total fair value of share options vested during the years ended December 31, 2020, 2021 and 2022 were RMB8,610,259, RMB8,319,569 and RMB8,998,734 (USD1,304,694). As of December 31, 2022, there was RMB39,537 (USD5,732) in total unrecognized compensation expense related to unvested options, which is expected to be recognized over a weighted-average period of 0.42 years. The following table summarized the Group’s share option activity under the option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Life Value USD Years USD Share options outstanding at December 31, 2021 992,500 12.27 2.14 — Granted 10,000 14.00 6 — Exercised — — — — Forfeited (62,000) 12.84 — — Expired — — — — Share options outstanding at December 31, 2022 940,500 12.26 1.18 — Vested and expected to vest at December 31, 2022 940,500 12.26 1.18 — Exercisable as of December 31, 2022 932,250 12.22 1.18 — |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 19. INCOME TAXES Samoa Under the current laws of Samoa, GreenTree Samoa is not subject to tax on income or capital gain. Upon payment of dividends by the Company to its shareholders, no Samoa withholding tax will be imposed. Cayman Island Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. 19. INCOME TAXES (CONTINUED) Hong Kong GreenTree Hotels (Hong Kong), Limited is subject to Hong Kong profit tax at a rate of 16.5% in the years ended December 31, 2020, 2021 and 2022 and it may be exempted from income tax on its foreign-derived income. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the years presented. There are no withholding taxes in Hong Kong on remittance of dividends. PRC On March 16, 2007, the PRC government promulgated the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008. Under the New EIT Law, domestically-owned enterprises and foreign-invested enterprises are subject to a statutory tax rate of 25%. Enterprises qualified as “High New Technology Enterprises (“HNTEs”) enjoy a preferential income tax rate of 15%. Dividends, interest, rent or royalties and proceeds from any such assets located in the PRC (after deducting the net value of such assets) shall be subject to a 10% withholding tax. Shanghai Evergreen qualified as an HNTE in November 2017 and was entitled to a preferential income tax rate of 15% from 2017 to 2019. Shanghai Evergreen reapplied for HNTE in 2020 and was successful in obtaining the HNTE certificate. It is entitled to the preferential income tax rate of 15% from 2020 to 2022. Shanghai Sipei qualified as an HNTE in 2020 and is entitled to a preferential income tax rate of 15% during 2020 to 2022. The current and deferred components of income tax (expense) benefit appearing in the consolidated statements of comprehensive income/(loss) are as follows: Year ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Current tax 122,931,256 105,353,756 80,209,774 11,629,324 Deferred tax (12,472,054) 3,535,126 (125,802,192) (18,239,603) Total 110,459,202 108,888,882 (45,592,418) (6,610,279) Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31, 2020 2021 2022 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution — % 10 % 9 % Effect of international rate difference 1 % 1 % (10) % Effect of preferential tax rate — % (7) % 1 % Tax effect of expenses that are not deductible in determining taxable profit 4 % 6 % (7) % Valuation Allowance 1 % 14 % (8) % Effective tax rate 31 % 49 % 10 % 19. INCOME TAXES (CONTINUED) PRC (continued) The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 2022 RMB RMB USD Deferred tax assets: Net loss carryforward 53,089,828 64,191,537 9,306,898 Deferred revenue 115,049,834 91,552,823 13,273,912 Deferred rent 17,692,412 — — Lease liability — 414,797,817 60,140,030 Bad debt expenses 30,328,801 79,570,368 11,536,619 Accrued expenses 17,687,519 16,350,750 2,370,636 Unrealized losses from equity securities 7,534,182 717,944 104,092 Impairment of Long-lived assets and other assets — 53,054,078 7,692,118 Valuation allowance (59,426,713) (76,326,389) (11,066,286) Total deferred tax assets 181,955,863 643,908,928 93,358,019 Deferred tax liabilities: Depreciation of property and equipment (6,099,754) (7,765,478) (1,125,888) Unrealized gains from equity securities (880,803) (5,360,418) (777,188) Intangible assets arising from acquisition (176,681,292) (52,570,078) (7,621,945) Withholding tax on PRC earnings to be distributed (64,929,920) (20,730,212) (3,005,598) Right-of-use assets — (386,025,806) (55,968,481) Total deferred tax liabilities (248,591,769) (472,451,992) (68,499,100) Net deferred tax (liabilities) assets (66,635,906) 171,456,936 24,858,919 The Group offset deferred tax liabilities and assets pertaining to a particular tax-paying component of the Group within a particular jurisdiction. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2022, management recorded a valuation allowance against the amount of deferred tax assets that it determines is not more-likely-than-not to be realized. As of December 31, 2022, the Group had tax losses carryforwards of RMB 256,766,146 (USD 37,227,592), mainly deriving from the entities in the PRC. The tax losses in the PRC can be carried forward for five years to offset future taxable profit and which will expire between 2022 and 2026 if not utilized. The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The cumulated undistributed earnings of the Group’s PRC subsidiaries the Group intends to indefinitely reinvested were RMB 445,148,415 (USD64,540,453) as of December 31, 2022. As of December 31, 2022, the related PRC withholding tax liability unrecognized was RMB44,514,842 (USD6,454,045). 19. INCOME TAXES (CONTINUED) PRC (continued) The Group made its assessment of the level of authority for each of its uncertain tax positions based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. It is possible that the amount of uncertain tax benefits will change in the next 12 months, however, an estimate of the range of the possible outcomes cannot be made at this time. RMB246,635,312 (USD 35,758,759) of the uncertain tax positions, if ultimately recognized, would affect the effective tax rate. A reconciliation of unrecognized tax benefits is as follows: Unrecognized tax benefits — January 1, 2021 202,915,367 Increases — tax positions in the current period 74,057,733 Decreases — tax positions in prior period (38,114,470) Unrecognized tax benefits — December 31, 2021 238,858,630 Unrecognized tax benefits — January 1, 2022 238,858,630 Increases — tax positions in the current period 25,680,473 Decreases — tax positions in prior period (17,903,791) Unrecognized tax benefits — December 31, 2022 246,635,312 In the years ended December 31, 2022, the Company recorded interest expense of RMB39,943,119 (USD 5,791,208). In the years ended December 31, 2022, the Company reversed interest expense of RMB26,980,981 (USD3,911,875). As of December 31, 2022, the accumulated interest expense and penalty recorded by the Group was RMB102,923,789 (USD14,922,547) and nil, respectively. The Group’s PRC subsidiaries are subject to examination by the PRC tax authorities from 2017 through 2022 on non-transfer pricing matters, and from 2012 through 2022 on transfer pricing matters. |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2022 | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 20. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION Full time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees’ salaries, subject to certain ceilings. The total contribution for such employee benefits were RMB25,666,575, RMB36,617,173 and RMB45,051,494 (USD6,531,853) for the years ended December 31, 2020, 2021 and 2022, respectively. The Group has no ongoing obligation to its employees subsequent to its contributions to the PRC plan. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 21. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to make appropriations to certain statutory reserves, namely a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax profits to a general reserve fund until such fund has reached 50% of its respective registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus funds are at the discretion of the board of directors for the foreign invested enterprises. For other subsidiaries incorporated in the PRC, the general reserve fund was appropriated based on 10% of net profits as reported in each subsidiary’s PRC statutory accounts. General reserve and statutory surplus funds are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company. Staff welfare and bonus fund and statutory public welfare funds are restricted to capital expenditures for the collective welfare of employees. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they allowed for distribution except under liquidation. As of December 31, 2021 and 2022, the PRC statutory reserve funds amounted to RMB77,453,118 and RMB 78,286,662 (USD 11,350,499), respectively. In addition, under PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their ability to transfer their net assets to the Company in the form of dividend payments, loans or advances. Amounts of net assets restricted include paid up capital and statutory reserve funds of the Group’s PRC totaling RMB936,799,320 and RMB898,596,672 (USD130,284,271) as of December 31, 2021 and 2022, respectively. Furthermore, cash transfers from the Group’s PRC subsidiaries to the Group’s subsidiaries outside of the PRC are subject to the PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the Group’s PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | 22. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. The related parties that had transactions or balances with the Group in 2020, 2021 and 2022 consisted of: Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Quality Control Manager GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) Catering management Controlled by GTI Getao Industrial (HK) Limited (“Getao”) Catering management Controlled by GTI Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Beifu HongKong Indutrial Co,Limited (“Beifu HK”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Catering management Controlled by GTI Bellagio Restaurant Management Group (“Bellagio”) Catering management Controlled by GTI Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Yibon Hotel management Equity investee of the Group Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) * Hotel management Equity investee of the Group Woyaojiu Information Technology (Shanghai) Co.,Ltd. (“Woyaojiu”) Catering management Controlled by Hui Xu Shanxi Yueyuanbaili Hotel Management Co., Ltd. (“Yueyuan”) Hotel management Equity investee of the Group Apex(Weihai) Industrial Co., Ltd (“Apex”) Construction Controlled by Hui Xu * Hanyuan was a subsidiary of the Group before December 2021, when the Group disposed 5% of the equity interests of Hanyuan and Hanyuan became equity investee of the Group. 22. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (a) Related party balances Due from related parties: As of December 31, 2021 2022 2022 RMB RMB USD Current: GTI 206,256,382 326,440,000 47,329,351 Aotao 65,206,135 65,206,135 9,454,000 Beifu HK 26,127,660 28,278,520 4,100,000 Yibon 8,330,198 7,039,315 1,020,605 Hanyuan 3,406,100 6,643,508 963,218 Napa 500,000 587,246 85,143 JYHM 481,227 1,739,578 252,215 Getao 112,158 121,391 17,600 Yueyuan — 608,394 88,209 Da Niang Group — 500,184 72,520 Woyaojiu — 1,000 145 Total 310,419,860 437,165,271 63,383,006 On May 16, 2022, GTI has entered in an agreement with GHG to settle the amounts due from GTI, Aotao and Beifu HK with 100% equity interests of Da Niang Dumplings business and 83.9% equity interests of Bellagio Café business. The transaction was completed in March 2023 (Note 26). Amounts due from Yibon mainly comprised of a loan repayable on demand with an interest rate of 6% per annum with pledge of one Yibon’s leased-and-operated hotel. The remaining current amounts represented the receivables arising from the ordinary course of business with related parties. Noncurrent amounts due from related parties as of December 31, 2022 comprised of RMB110,000,000 (USD15,948,501) prepayments made by the Group to Apex to acquire buildings for hotel businesses development and a loan with a principal of RMB2,360,000 (USD342,168) receivable from Wen Qi with an interest rate of 7.9% per annum maturing in July 2024. Due to related parties: As of December 31, 2021 2022 2022 RMB RMB USD Current: Yibon 6,602,643 7,238,237 1,049,446 Aotao — 5,550,000 804,674 Napa 2,868,685 536,857 77,837 Da Niang Group 31,307 459,868 66,675 JYHM 27,992 27,992 4,058 9,530,627 13,812,954 2,002,690 Amount due to Yibon comprised of receipts of hotel reservation fees on behalf of Yibon. Amount due to Aotao comprised of payables for advertising services provided by Aotao. Amount due to Napa comprised of the payable of goods purchased from Napa. 22. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (b) Related party transactions During the years ended December 31, 2020, 2021 and 2022, related party transactions consisted of the following: Year ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Loan to GTI — (206,256,382) (162,490,000) (23,558,835) Repayment of loan from GTI 8,424,629 — 42,305,000 6,133,648 Repayment of loan from Aotao 499,421,550 121,000,000 — — Loan to Aotao (479,356,500) (186,051,400) — — Advertising service from Aotao (3,920,000) (6,473,400) (5,550,000) (804,674) Interest income from Aotao 2,316,856 — — — Franchise management fee to Aotao (41,867) (49,648) — — Purchase from Napa (2,059,566) (2,547,178) (413,690) (59,979) Loan to Hanyuan — (3,406,100) (3,237,408) (469,380) Franchised revenue from Yibon 852,287 1,251,888 1,285,068 186,317 Repayment of loan from Yibon — 3,750,000 1,250,000 181,233 Interest income from Yibon 18,667,117 544,352 12,333 1,788 Loan to Yibon (9,000,000) (3,000,000) — — Loan to Wen Qi — — (2,360,000) (342,168) Service purchased from JYHM (40,000) (667,751) (20,754) (3,009) Sublease revenue from JYHM 284,179 261,392 47,704 6,916 Loan to Yueyuan — — (608,394) (88,209) Service purchased form Bellagio — (367,804) (204,087) (29,590) Loan to Beifu HK — (169,511,160) — — Repayment of loan from Getao on behalf of Beifu HK — 143,383,500 — — Loan to Da Niang Group (40,000,000) (39,800,000) — — Repayment of loan from Da Niang Group 40,000,000 39,800,000 — — Interest income from Da Niang Group 352,882 — — — Service purchased from Da Niang Group (724,045) (221,389) — — Sublease revenue from Da Niang Group 36,000 27,000 — — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 23. COMMITMENTS AND CONTINGENCIES Litigation and contingencies The Company and its operations from time to time are, and in the future may be, parties to or targets of lawsuits, claims, investigations, and proceedings, including but not limited to non-compliance respect to licenses and permits, franchise agreements and lease contracts, which are handled and defended in the ordinary course of business. The Group may be unable to estimate the reasonably possible loss or a range of reasonably possible losses until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, or the progress of settlement negotiations. The Company accrues a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 24. EARNINGS (LOSS) PER SHARE Basic and diluted earnings (Loss) per share for each of the years presented is calculated as follows: Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Numerator: Net income(loss) used in calculating earnings per share-basic and diluted 261,344,391 117,438,250 (382,216,959) (55,416,249) Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings(loss) per share 68,286,954 68,286,954 68,201,056 68,201,056 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings(loss) per share 34,762,909 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings(loss) — basic and diluted: To Class A Shares 173,182,301 77,821,553 (253,172,070) (36,706,500) To Class B Shares 88,162,090 39,616,697 (129,044,888) (18,709,750) Basic and diluted earnings(loss) per share: To Class A Shares 2.54 1.14 (3.71) (0.54) To Class B Shares 2.54 1.14 (3.71) (0.54) In November 2022, the Company disposed Urban in exchange for cash considerations and 870,908 Class A ordinary shares of the Company (Note 4). These shares were excluded in the computation of basic and diluted earnings per shares for the year ended December 31, 2022 since the date of deconsolidation of Urban. The shares were received in March 2023. The Group did not include share options in the computation of diluted earnings per share for the years ended December 31, 2020, 2021 and 2022 because those share options were anti-dilutive for earnings(loss) per share. |
OTHER COMPREHENSIVE INCOME_( LO
OTHER COMPREHENSIVE INCOME/( LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER COMPREHENSIVE INCOME/( LOSS) | |
OTHER COMPREHENSIVE INCOME/( LOSS) | 25. OTHER COMPREHENSIVE INCOME/( LOSS) The changes in accumulated other comprehensive income by component, net of tax, were as follows: Unrealized Foreign gains(losses) currency on available- translation for-sale adjustments investments Total RMB RMB RMB Balance at December 31,2019 65,300,854 — 65,300,854 Net current-period other comprehensive loss (19,714,207) — (19,714,207) Balance at December 31,2020 45,586,647 — 45,586,647 Net current-period other comprehensive (loss) income (6,497,403) 2,791,663 (3,705,740) Balance at December 31,2021 39,089,244 2,791,663 41,880,907 Net current-period other comprehensive loss (11,361,872) (2,786,931) (14,148,803) Balance at December 31,2022 27,727,372 4,732 27,732,104 Balance at December 31, 2022 (USD) 4,020,091 685 4,020,776 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26. SUBSEQUENT EVENTS On March 29, 2023, the Company closed and completed its previously announced acquisition (the “Acquisition”) of Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China (collectively, the “Target Businesses”), from GTI, contemplated by the definitive agreement entered into by the parties (the “Agreement”). As the Group and the Target Businesses are under the common control of GTI before and after the acquisition, the acquisition will be accounted as a common control transaction in a manner similar to the pooling-of-interests method. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 27. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2021 2022 2022 RMB RMB USD ASSETS Current assets Cash and cash equivalents 22,609,979 15,788,863 2,289,170 Investments in equity securities 59,114,452 3,094,133 448,607 Amounts due from subsidiaries 113,057,771 122,364,821 17,741,232 Amounts due from a related party 202,502,545 348,019,981 50,458,154 Total current assets 397,284,747 489,267,798 70,937,163 Non-current assets: Investments in subsidiaries 1,977,459,895 1,635,636,043 237,144,935 Investments in equity securities 39,852,428 33,408,446 4,843,769 TOTAL ASSETS 2,414,597,070 2,158,312,287 312,925,867 LIABILITIES AND EQUITY Current liabilities: Dividends payable 40,999,458 — — Long -term bank loans, current portion 30,200,000 121,800,000 17,659,340 Amounts due to subsidiaries 350,308,050 592,226,352 85,864,750 Total current liabilities 421,507,508 714,026,352 103,524,090 Non-current liabilities: Long-term bank loans, non-current portion 121,800,000 — — Other long-term liabilities 13,604,451 — — Total liabilities 556,911,959 714,026,352 103,524,090 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000 and 400,000,000 shares authorized as of December 31, 2021 and 2022; 68,286,954 and 68,201,056 shares issued outstanding 222,587,070 222,587,070 32,272,092 Class B ordinary shares (USD0.50 par value per share; 100,000,000 and 100,000,000 shares authorized as of December 31, 2021 and 2022; 34,762,909 and 34,762,909 shares issued outstanding 115,534,210 115,534,210 16,750,886 Treasury stock — (16,971,057) (2,460,572) Additional paid-in capital 1,151,384,306 1,151,321,950 166,925,992 Retained earnings / (Accumulated losses) 326,298,618 (55,918,342) (8,107,397) Accumulated other comprehensive income 41,880,907 27,732,104 4,020,776 Total Shareholders’ Equity 1,857,685,111 1,444,285,935 209,401,777 TOTAL LIABILITIES AND EQUITY 2,414,597,070 2,158,312,287 312,925,867 27. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD General and administrative expenses (9,967,834) (18,917,120) (6,740,255) (977,245) Other general expense — — (13,944,926) (2,021,824) Interest income 8,173 173,316 1,924 279 Interest expense — — (5,192,054) (752,777) Other income — — 22,765,816 3,300,733 (Losses) Gains on investments in equity securities (11,392,623) 11,519,174 (76,105,482) (11,034,258) Share of profit (losses) in subsidiaries, net (Note a) 282,696,675 124,662,880 (303,001,982) (43,931,158) Net income(losses) 261,344,391 117,438,250 (382,216,959) (55,416,250) Other comprehensive losses, net of tax - Foreign currency translation adjustments (19,714,207) (6,497,403) (11,361,872) (1,647,317) - Unrealized gains (losses) on available-for-sale investments — 2,791,663 (2,786,931) (404,067) Comprehensive income /(loss) 241,630,184 113,732,510 (396,365,762) (57,467,634) 27. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of cash flows Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Net cash provided by (used in) operating activities 231,204,774 (16,338,658) 222,680,208 32,285,596 Net cash used in investing activities (65,670,760) (113,026,343) (156,276,810) (22,658,008) Net cash used in financing activities — (43,683,098) (71,199,458) (10,322,953) Effect of exchange rate changes on cash and cash equivalents and restricted cash 5,679,523 2,306,901 (2,025,056) (293,604) Net increase (decrease) in cash and cash equivalents and restricted cash 171,213,537 (170,741,198) (6,821,116) (988,969) Cash and cash equivalents and restricted cash at beginning of the year 22,137,640 193,351,177 22,609,979 3,278,139 Cash and cash equivalents and restricted cash at end of the year 193,351,177 22,609,979 15,788,863 2,289,170 (a) Basis of presentation In the Company-only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception. The Company records its investment in its subsidiary under the equity method of accounting as prescribed in ASC 323-10 Investment-Equity Method and Joint Ventures Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted and as such, these Company-only financial statements should be read in conjunction with the Group’s consolidated financial statements. |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, fair value measurement and impairment of investments, the useful lives and impairment of property and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, purchase price allocation, share-based compensation arrangements and discount rate used to measure lease liabilities. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits placed with commercial banks or other financial institutions and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Restricted cash | Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantees for prepaid cards and borrowings and deposits restricted due to lawsuit. |
Investments | Investments Short-term investment s Short-term investments include time deposits with maturities of less than one year and investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in debt in accordance with ASC topic 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as “held-to-maturity”, “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities, are included in earnings. Any realized gains or losses on the sale of the short-term investments, are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. The securities that the Group has the positive intent and the ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. Investments in equity securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321, Investments – Equity Securities (“ASC 321”). These securities have readily determinable fair values and are generally held for resale in anticipation of short-term market movements and therefore the Group classifies them as investment in equity securities in current assets which are carried at fair value at each balance sheet date. Gains and losses, both realized and unrealized, are included in (Losses and impairment) Gains on equity securities held in the consolidated statements of comprehensive income/(loss). Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with and without readily determinable fair values and an available-for-sale debt investment. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized (Losses and impairment) Gains on equity securities held in the consolidated statements of comprehensive income/(loss). For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures The available-for-sale debt investment is redeemable shares issued by a private company that is redeemable any time at the Group’s option, which are remeasured at fair value. All changes in the carrying amount of these debt investments are recognized in other comprehensive income/(loss). An impairment loss on the available-for-sale debt investments, if any, is recognized in earnings when the decline in value is determined to be other-than-temporary. The amount of the total other-than-temporary impairment related to the credit loss shall be recognized in earnings. The amount of the total other-than-temporary impairment related to other factors shall be recognized in other comprehensive income/(loss), net of applicable taxes. |
Accounts receivable, net of allowance for doubtful accounts | Accounts receivable, net of allowance for doubtful accounts Trade receivables mainly consist of franchise fees receivable, rental amounts due from individual and corporate customers and travel agents, and sublease rental receivables due from third-party merchandisers, which are recognized and carried at the original invoice amounts less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific franchisees, customers, and merchandisers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables are expensed when used. |
Loans receivable | Loans receivable Loans receivable are carried at the original loan principal and accrued interest based on the contract rate, less an allowance for uncollectible accounts, as appropriate. The Group classified loans receivable as long-term or short-term investments according to their contractual maturity. The allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. As of December 31, 2021 and 2022, all loans receivable which are past due are nonaccrual. |
Property and equipment, net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income/(loss) as the difference between the net sales proceeds and the carrying amount of the underlying asset. |
Intangible assets | Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion, and are measured at fair value upon acquisition. Favorable leases acquired in business combinations before the adoption of ASC Topic 842, Leases (“ASC 842”) are amortized over the remaining operating lease term. Reacquired rights represent the franchise right the Group previously granted to the acquiree through franchise agreements and are amortized over the next renewal date in the applicable agreement. The favorable lease agreements lease agreements in which the Group acts as a lessee were reclassified to operating lease right-of-use assets on January 1, 2022, upon adoption of ASC 842, Leases, which are amortized combining with right-of-use assets over remaining operating lease terms. The favorable lease agreements in which the Group acts as a lessee were accounted as intangible assets as before, which are amortized over remaining operating lease terms. Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5-10 years Reacquired rights the remaining franchise term The Group at the end of each reporting period evaluates whether events and circumstances continue to support the indefinite useful life of relevant intangible assets. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. Impairment loss is recognized based on the excess of the carrying value of the indefinite-lived intangible asset over its fair value at the time of the assessment. As of December 31, 2020 and 2021, the estimated fair values of the indefinite-lived intangible assets significantly exceeded of their respective carrying values. No impairment loss was recognized for the intangible assets the years ended December 31, 2020 and 2021 and an impairment loss of RMB 12,000,345 (USD 1,739,886) of indefinite-lived trademark was recorded in other general expenses in the consolidated statement of comprehensive loss before the deconsolidation of Urban during the year ended December 31, 2022 (Note 4). |
Business combinations | Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2020 and 2021 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill In accordance with ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment In 2020, the Group elected to choose to bypass the qualitative assessment and proceed directly to perform a quantitative test. In 2021, the Group performed a qualitative assessment for its operating unit. No impairment was recorded for the years ended December 31, 2020 and 2021. The Group adopted ASU 2017-04 on January 1, 2022 on a prospective basis. which requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. Impairment loss of RMB91,236,480 (USD13,228,046) of goodwill was recorded before the Group deconsolidated Argyle Beijing and Urban during the year ended December 31, 2022(Note 4). |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its property and equipment, other finite-lived assets and operating lease right-of-use assets for impairment individually or as a group at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of the other assets and liabilities. Whenever events or changes in circumstances indicate that these assets may not be recoverable, the Group compares the carrying amount of the asset (or group of assets) to the sum of future undiscounted net cash flows expected to result from the use of the asset (or group of assets) and its eventual disposition. If the carrying amount is higher than the sum of undiscounted future cash flows, an impairment loss is measured based on the excess of the carrying amount of the asset (or group of asset) over its fair value. The carrying amount of the asset (or the long-lived assets in the asset group on a pro rata basis using the relative carrying amounts) is reduced to the extent not lower than the fair value of the asset. The adjusted carrying amounts after an impairment charge represent the new cost basis and is depreciated over their remaining useful lives. No impairment was recorded for the years ended December 31, 2020 and 2021. During the year ended December 31, 2022, due to the continued underperformances relative to the projected operating results, the Group recorded a total impairment loss of RMB 48,306,360 (USD 7,003,764) for certain hotels, among which RMB 28,395,905 (USD 4,117,019) were recorded before the deconsolidation of Argyle Beijing and Shandong Xinhui (Note 4). |
Revenue recognition | Revenue recognition Leased and operated hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Each of these products and services represents an individual performance obligation and, in exchange for these services and goods, the Group receives fixed amounts based on fixed rates or fixed standalone selling price. Revenue is recognized when rooms are occupied, and food and beverages are sold as the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties. In accordance with the provisions of ASC 842, since the Group has not been relieved as the primary obligor of the head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. The Group’s practice has been, and will continue to, straight-line the sub-lease income over the term of the sublease, which is consistent with the accounting treatment under ASC 840. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income/(loss) amounted to RMB77,676,665, RMB74,689,226 and RMB61,578,703 (USD8,928,073) for the years ended December 31, 2020, 2021 and 2022, respectively. Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: ● Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. ● System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. ● Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, the Group has a performance obligation to provide franchisees a license to its hotel system intellectual property for use of certain of its brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. The hotel manager fee is recognized as revenue on a monthly basis. During the years ended December 31, 2020, 2021 and 2022, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB112,729,886, RMB131,027,473 and RMB115,738,098 (USD16,780,447), respectively. Other Revenues Other revenues are derived from selling of goods through the Company’s online mall and sale of hotel related products to franchisees. Revenues are recognized upon customers’ acceptance. |
Membership Program | Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three five years Membership points that are earned by members when they stay at the hotels represent a material right to free or discounted goods or services in the future. The membership program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. The amount of revenue the Group recognize upon point redemption is impacted by the estimate of the “breakage” for points that members will never redeem, which amount were included in revenues from leased and operated hotel or revenues from franchised and managed hotels depending on the type of hotels the membership was sold at. The Group estimates breakage based on the Group’s historical experience and expectations of future member behavior and will true up the estimated breakage at end of each period. The Group recognized revenue net of reimbursement paid to franchisees as its performance obligation is to facilitate the transaction between the member and the franchised and managed hotels. |
PRC Value-Added Taxes and related tax surcharges | PRC Value-Added Taxes and related tax surcharges Starting from May 2016, the accommodation services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. |
Advertising and promotional expenses | Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income/(loss) as incurred, and amounted to RMB38,934,867, RMB22,906,044 and RMB12,347,881 (USD1,790,274) for the years ended December 31, 2020, 2021 and 2022, respectively. |
Government subsidies | Government subsidies Government subsidies are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. During the years ended December 31, 2020, 2021 and 2022, the Group received financial subsidies of RMB20,094,745, RMB16,993,539 and RMB11,466,168 (USD1,662,438), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. |
Interest | Interest Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. |
Leases | Leases Operating Leases – Lessee under ASC 842 The Group leases hotel properties from property owners. In evaluating whether an agreement constitute a lease. the Group reviews the contractual terms to determine which party obtains both the economic benefits and control of the assets at the inception of the contract. The Group categorizes leases with contractual terms longer than twelve months as either operating or finance lease at the commencement date of a lease. However, the Group has no finance leases for any of the periods presented. The Group recognizes a lease liability for future fixed lease payments and a right-of-use (“ROU”) asset representing the right to use the underlying asset for the lease term. The lease term is based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise the option. Lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term using the rate implicit in the lease, if available, or the Group’s incremental borrowing rate. As its leases do not provide an implicit borrowing rate, the Group uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. Current maturities of operating lease liabilities are classified as operating lease liabilities, current in the Group’s consolidated balance sheets. Most leases have initial terms ranging from 5 to 22 years. The Group’s lease agreements may include non-lease components, mainly common area maintenance, which are combined with the lease components as the Group elects to account for these components as a single lease component, as permitted. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Group’s lease agreements do not contain any significant residual value guarantees or restricted covenants. The ROU assets are measured at the amount of the lease liabilities with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by the Group, deferred rent and lease incentives, and any off-market terms (that is, favorable or unfavorable terms) present in the lease when the Group acquired leases in a business combination in which the acquiree acts as a lessee. The Group evaluates the carrying value of ROU assets if there are indicators of impairment and reviews the recoverability of the related asset group. The Group reassesses of a contract is or contains a leasing arrangement and re-measures ROU assets and liabilities upon modification of the contract. The Group will derecognize ROU assets and liabilities, with difference recognized in the income statement on the contract termination. Operating Leases – Lessee under ASC 840 Before January 1, 2022, leases where the Group is the lessee, and substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are recognized on a straight-line basis over the lease term. Certain of the operating lease agreements contain rent holidays. Rent holidays are considered in determining the straight-line rent expense to be recorded over the lease term. Operating Leases – Sublease under ASC 842 and ASC 840 The Group subleases property which are not used to operate hotels to third parties under operating leases. In accordance with the provisions of ASC 842, since the Group has not been relieved as the primary obligor of the head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. Our practice has been, and will continue to, straight-line the sub-lease income over the term of the sublease, which is consistent with the accounting treatment under ASC 840. |
Income taxes | Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each tax audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group has elected to include interest and penalties related to an uncertain tax position in “income tax expense (benefit)” in the consolidated statements of comprehensive income/(loss). |
Foreign currency translation and transactions | Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of PRC subsidiaries of the Company are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income/(loss). Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of comprehensive income/(loss). |
Convenience translation | Convenience translation Translations of amounts from RMB into U.S. dollars into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.8972 on December 31, 2022, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2022, or at any other rate. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Group follows ASC subtopic 820-10, Fair Value Measurements and Disclosures, which establishes a three-tier fair value hierarchy, and prioritizes the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Assets and Liabilities Measured at Fair Value on a recurring basis Investments in equity securities with readily determinable fair values are measured using quoted market prices, and are recorded at fair values at each balance sheet date. The fair value of the Group’s investments in wealth management products are measured using the income approach, based on quoted market interest rates of a similar instrument and other significant inputs derived from or corroborated by observable market data. The payable for contingent consideration and the returnable consideration from Urban Hotel Group are based on the achievement of certain financial targets in accordance with the acquisition agreements for the various periods. For the available-for-sale debt securities, the Group uses a combination of valuation methodologies, including income approach and option pricing models based on the Group’s best estimate, which is determined by using information including but not limited to the future cash flow forecast, discount rate, expected volatility, and discounts for lack of marketability and control. The carrying values of other financial instruments, which consist of cash and cash equivalents, time deposits, accounts receivable, loans receivable, amounts due from related parties, accounts payable and amounts due to related parties are recorded at cost which approximates their fair value due to the short-term nature of these instruments. The Group does not use derivative instruments to manage risks. The Group measures equity investments without readily determinable fair value and elected to use the measurement alternative at fair value on a nonrecurring basis, in the cases of an impairment charge is recognized, fair value of an investment is remeasured in an acquisition/a disposal, and an orderly transaction for identical or similar investments of the same issuer was identified. The non-recurring fair value measurements to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. The valuation methodologies involved require management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as volatility of comparable companies and probability of exit events as it relates to liquidation and redemption preferences. Fair value of the long-lived assets was determined by the Group based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected hotels’ revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. Considerable management judgement is used to estimate future cashflows, particularly revenues expected to be generated from the usage of the long-lived assets and estimates of the price market participants would pay to lease the operating lease right-use assets, which are based on comparable market rental information that could be reasonably obtained for the property. Accordingly, actual results may vary significantly from the Company estimates as they are forward-looking and include assumptions about economic and market conditions with uncertain future outcomes. |
Comprehensive income/(loss) | Comprehensive income/(loss) Comprehensive income/(loss) is defined as the changes in equity of the Group during a year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive income of the Group includes the foreign currency translation adjustments and unrealized gains(loss) on available-for-sale investments. |
Comparative information | Comparative information Certain of the prior year comparative figures have been reclassified to conform to the current year’s presentation. |
Segment reporting | Segment reporting The Group operates and manages its business as a single segment. The Group’s chief operating decision maker has been identified as the CEO of the Group. The results of operations of the Group are regularly reviewed by the Chief Executive Officer on a consolidated basis. The Group primarily generates its revenues from customers in the PRC. Accordingly, no geographical segments are presented. Substantially all of the Group’s long-lived assets are located in the PRC. |
Employee benefits | Employee benefits The full-time employees of the Group’s PRC subsidiaries participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary of the Group to make contributions to the government for these benefits beyond the contribution made. The total amounts for such employee benefits, which were expensed as incurred, RMB25,666,575, RMB36,617,173 and RMB45,051,494 (USD6,531,853) for the years ended December 31, 2020, 2021 and 2022, respectively. |
Share-based compensation | Share-based compensation Share based awards granted to employees are accounted for under ASC 718, “Compensation—Stock Compensation”, which requires that such equity awards granted to employees be measured based on the grant date fair value and recognized as compensation expense a) immediately at grant date if no vesting conditions are required; or b) using accelerated method, net of estimated forfeitures, over the requisite service period, which is the vesting period. |
Earnings per share | Earnings per share Class A and Class B ordinary shares have the same rights with regard to dividends and distributions upon liquidation of the Group. Net income is allocated on a pro rata basis to the Class A and Class B ordinary shares to the extent that each class shares in income for the period. Basic EPS for each class of ordinary shares is computed by dividing net income attributable to that class by the weighted average number of ordinary shares outstanding of that class for the period. Diluted earnings per share is calculated by dividing net income attributable to the Class A and Class B ordinary shares as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti-dilutive. Contingently issuable shares relating to shares to be issued as a part of purchase consideration associated with business combinations, are included in the computation of basic earnings per share only when there is no circumstance under which those shares would not be issued. Contingently issuable shares are included in the denominator of the diluted calculation as of the beginning of the period or as of the inception date of the contingent share arrangement, if later, only when dilutive and when all the necessary conditions have been satisfied as of the reporting period end. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related and loans receivable. As of December 31, 2021, the Group had RMB288,545,669 and RMB29,070,237 of cash and cash equivalents and restricted cash that are held by financial institutions in the PRC and by international financial institutions outside of the PRC, respectively. As of December 31, 2022, the Group had RMB663,759,671 (USD96,236,106) and RMB2,544,290 (USD368,887) of cash and cash equivalents and restricted cash that are held by financial institutions in the PRC and by international financial institutions outside of the PRC, respectively. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Group conducts credit evaluations on its customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The Group made loans to third-party individuals and related parties under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheet date. As of December 31, 2021 and 2022, there were RMB965,475,805 and RMB1,073,930,780 (USD155,705,327) of loans receivable outstanding. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. |
Currency Convertibility Risk | Currency Convertibility Risk Substantially all of the Group’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized by the PRC government to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. |
Foreign Currency Exchange Rate Risk | Foreign Currency Exchange Rate Risk The functional currency of the Company is USD, and the reporting currency is RMB. Since July 21, 2005, RMB has been permitted by the PRC government to fluctuate within a managed band against a basket of certain foreign currencies. The appreciation of the USD against the RMB was approximately 8.23% in 2022. Any significant revaluation of RMB may materially and adversely affect the cash flows, operating results and financial position of the Group. As a result, an appreciation of RMB against USD would result in foreign currency translation loss when translating the net assets of the Group from USD into RMB. For the years ended December 31, 2020, 2021 and 2022, the net foreign currency translation loss resulting from the translation from USD to RMB reporting currency recorded in other comprehensive loss recorded RMB19,714,207, RMB6,497,403 and RMB11,361,872 (USD1,647,317), respectively. |
Adopted Accounting Standards and Accounting Standards Not Yet Adopted | Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (ASC 842), as amended, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. ASC 842 requires most leases to be recognize a ROU asset and lease liability on the balance. On January 1, 2022, the Company adopted ASU 2016-02, using the modified retrospective transition method and elected the transition option to use an effective date of January 1, 2022 as the date of initial application. As a result, the comparative periods were not restated. The Group has elected the package of practical expedients permitted which allows the Company not to reassess the following at adoption date: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The cumulative effect of the changes made to the Group’s consolidated balance sheet as of January 1, 2022 for the adoption of ASU 2016-02 is as follows: December 31, 2021 January 1, 2022 Effect of adoption As reported ASU 2016-02 As adjusted Assets Favorable lease 32,844,929 (32,844,929) — Prepaid rent 15,454,967 (15,454,967) — Operating lease right-of-use assets — 1,830,043,887 1,830,043,887 Total assets 48,299,896 1,781,743,991 1,830,043,887 Liabilities Accrued expenses and other current liabilities 27,957,242 (27,957,242) — Deferred rent 70,769,648 (70,769,648) — Operating lease liability, current — 177,938,604 177,938,604 Operating lease liability, non-current — 1,702,532,277 1,702,532,277 Total liabilities 98,726,890 1,781,743,991 1,880,470,881 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Adopted Accounting Standards (continued) The adoption of ASU 2016-02 did not materially affect the consolidated statements of income or consolidated statements of cash flows and had no impact on the debt covenant compliance under the current agreements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods therein. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Summary of Group's Major Direct and Indirect Subsidiaries of Investments | Date of Incorporation, Percentage of Merger or Place of Major Major subsidiaries Ownership Acquisition Incorporation Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. (“Shanghai Evergreen”) 100 % October 20, 2011 PRC Information technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co., Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co., Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co., Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co., Ltd. 100 % May 3, 2018 PRC Hotel property Suzhou Ganglongkaiyuan Hotel Management Co., Ltd. 100 % May 31, 2019 PRC Hotel property Shanghai Sipei Technology Co., Ltd. (“Shanghai Sipei”) 100 % October 20, 2011 PRC Information technology services |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Summary of Property and Equipment Net, Expected Useful Lives | Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years |
Amortization of Intangible Assets, Estimated Useful Lives | Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5-10 years Reacquired rights the remaining franchise term |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2021 (Level 1) (Level 2) (Level 3) Other assets Returnable consideration from acquisition of Urban 5,385,583 — — 5,385,583 Short-term investments Investments in wealth management products 147,458,675 — 147,458,675 — Investments in equity securities Equity securities with readily determinable fair value 157,988,851 157,988,851 — — Long-term investments Equity securities with readily determinable fair value 39,852,428 39,852,428 — — Available-for-sale debt securities 106,493,137 — — 106,493,137 457,178,674 197,841,279 147,458,675 111,878,720 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Short-term investments Investments in wealth management products 156,031,572 — 156,031,572 — Investments in equity securities Equity securities with readily determinable fair value 41,361,346 41,361,346 — — Long-term investments Equity securities with readily determinable fair value 27,408,446 27,408,446 — — Available-for-sale debt securities 103,706,206 — — 103,706,206 328,507,570 68,769,792 156,031,572 103,706,206 |
Reconciliations of Assets And Liabilities Under Fair Value Hierarchy | Available-for- Returnable sale debt consideration securities December 31, 2021 5,385,583 106,493,137 Disposal of Urban (5,385,583) — Net unrealized fair value decrease recognized in other comprehensive loss — (2,786,931) December 31, 2022 — 103,706,206 December 31, 2022 (USD) — 15,035,986 |
Summary of Unobservable Inputs | Inputs Inputs As of December As of December Financial Assets Unobservable Input 31, 2021 31, 2022 Available-for-sale debt securities WACC 12 % 12 % Discounts for lack of marketability and control 34 % 44 % Expected volatility 42 % 52 % |
Schedule of impact on consolidated balance sheet upon adoption of ASU 2016-02 | December 31, 2021 January 1, 2022 Effect of adoption As reported ASU 2016-02 As adjusted Assets Favorable lease 32,844,929 (32,844,929) — Prepaid rent 15,454,967 (15,454,967) — Operating lease right-of-use assets — 1,830,043,887 1,830,043,887 Total assets 48,299,896 1,781,743,991 1,830,043,887 Liabilities Accrued expenses and other current liabilities 27,957,242 (27,957,242) — Deferred rent 70,769,648 (70,769,648) — Operating lease liability, current — 177,938,604 177,938,604 Operating lease liability, non-current — 1,702,532,277 1,702,532,277 Total liabilities 98,726,890 1,781,743,991 1,880,470,881 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
2021 Business Combinations | |
BUSINESS COMBINATIONS | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | 2021 Amortization Period Property and equipment 92,075 3-5 years Intangible assets Trademark 36,896,000 10 years Goodwill 20,588,461 Noncontrolling interest (34,576,536) Total 23,000,000 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of revenues disaggregated by type of services | Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Leased and operated hotels revenues 227,074,041 391,960,031 338,506,220 49,078,788 Franchise and managed hotels revenues 677,480,818 774,359,348 582,441,077 84,446,018 Initial franchise fee 61,051,369 76,263,574 42,423,951 6,150,894 Continuing franchise fees 616,429,449 698,095,774 540,017,126 78,295,124 Others 25,455,237 39,826,579 15,853,985 2,298,612 Total 930,010,096 1,206,145,958 936,801,282 135,823,418 |
Schedule of contract liabilities | Years Ended December 31, 2021 2022 2022 RMB RMB USD Advance from customers 39,773,738 18,681,010 2,708,492 Deferred revenue-current 215,147,975 189,105,747 27,417,756 Deferred revenue-non current 314,472,488 232,695,351 33,737,655 Total contract liabilities 569,394,201 440,482,108 63,863,903 |
Schedule of components of deferred revenue | Years Ended December 31, 2021 2022 2022 RMB RMB USD Initial fees received from franchisees owners 248,406,284 190,381,636 27,602,743 Cash received for membership fees and not recognized as revenue 186,976,973 138,656,460 20,103,297 Cash received for prepaid card and sublease 47,604,011 40,622,136 5,889,656 Deferred revenue related to the membership program 46,633,195 52,140,866 7,559,715 Total deferred revenue 529,620,463 421,801,098 61,155,411 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOANS RECEIVABLE, NET | |
Schedule of Loans receivable, net | As of December 31, 2021 2022 2022 RMB RMB USD Loans receivable, current portion Franchisees 308,016,920 197,473,408 28,630,953 Third parties 45,216,904 38,862,429 5,634,523 Less: bad debt provision (105,703,244) (54,668,667) (7,926,212) Total 247,530,580 181,667,170 26,339,264 Loans receivable, non-current portion Franchisees 294,150,438 373,477,244 54,149,110 Third parties 9,000,000 28,344,271 4,109,533 Less: bad debt provision (12,182,758) (224,649,006) (32,571,044) Total 290,967,680 177,172,509 25,687,599 |
Schedule of aging of past-due loans receivables | The following table presents the aging of past-due gross loans receivable as of December 31, 2021 and 2022: 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB RMB December 31, 2021 42,412,387 25,028,613 33,136,695 39,751,902 140,329,597 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB RMB December 31, 2022 37,705,971 17,747,676 95,949,547 134,179,464 285,582,658 December 31, 2022 (USD) 5,466,852 2,573,171 13,911,377 19,454,193 41,405,593 |
Schedule of movement of allowance for loans receivable | Years Ended December 31, 2021 2022 2022 RMB RMB USD Balance of the beginning of the year 18,000,000 117,886,002 17,091,864 Provision 99,886,002 161,431,671 23,405,392 Balance of the end of the year 117,886,002 279,317,673 40,497,256 Evaluated for impairment on an individual basis 117,886,002 116,852,875 16,942,074 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property and equipment net | As of December 31, 2021 2022 2022 RMB RMB USD Buildings 626,908,935 637,783,560 92,469,924 Leasehold improvements 630,691,571 598,805,361 86,818,616 Furniture, fixtures and equipment 93,440,638 100,499,326 14,571,033 Motor vehicles 3,204,381 2,493,487 361,522 Total 1,354,245,525 1,339,581,734 194,221,095 Less: Accumulated depreciation (436,314,189) (506,440,843) (73,427,020) Impairment — (19,910,455) (2,886,745) 917,931,336 813,230,436 117,907,330 Construction in progress 127,424,929 21,541,245 3,123,187 Property and equipment, net 1,045,356,265 834,771,681 121,030,517 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
Schedule of intangible assets, net | As of December 31, 2021 2022 2022 RMB RMB USD Intangible assets with indefinite lives: Trademarks 443,300,000 — — Intangible assets with finite lives: Trademarks 41,620,493 41,435,000 6,007,510 Technology 4,200,000 4,200,000 608,943 Network rights 390,317 210,755 30,557 Purchased software 15,429,484 13,574,658 1,968,140 Reacquired rights 2,531,418 2,531,418 367,021 Favorable leases 42,095,848 — — Others 435,185 435,185 63,096 Total 550,002,745 62,387,016 9,045,267 Less: Accumulated amortization (29,885,266) (24,275,080) (3,519,556) Total. 520,117,479 38,111,936 5,525,711 |
Schedule of estimated aggregate amortization expense | Year ending December 31, RMB USD 2023 5,360,169 777,151 2024 5,251,853 761,447 2025 4,849,872 703,165 2026 4,644,938 673,453 2027 4,298,162 623,175 Thereafter 13,706,942 1,987,320 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Schedule of supplemental information related to operating leases | For the years ended December 31, 2022 2022 RMB USD Operating lease right-of-use assets 1,544,739,494 223,966,174 Operating lease liabilities, current 210,388,801 30,503,509 Operating lease liabilities, non-current 1,449,422,906 210,146,568 Total operating lease liabilities 1,659,811,707 240,650,077 Cash paid for amounts included in the measurement of operating lease liabilities 142,082,493 20,600,025 Right-of-use assets obtained in exchange for operating lease liabilities 4,852,371 703,528 Weighted average remaining lease term (in years) 11.59 Weighted average discount rate 4.44 % |
Schedule of maturity of operating lease liabilities under the non-cancelable operating leases | As of December 31, 2022 RMB USD 2023 282,807,254 41,003,197 2024 197,605,091 28,650,045 2025 192,081,787 27,849,241 2026 186,104,746 26,982,652 2027 167,736,439 24,319,498 Thereafter 1,135,384,672 164,615,304 Total future lease payments 2,161,719,989 313,419,937 Less: imputed interest 501,908,282 72,769,860 Total operating lease liabilities 1,659,811,707 240,650,077 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
Schedule of changes in carrying amount of goodwill | For the years ended December 31, 2021 2022 2022 RMB RMB USD Balance as of January 1 100,231,487 120,819,948 17,517,246 Acquisitions 20,588,461 — — Impairments (Note 4) — (91,236,480) (13,228,046) Balance as of December 31 120,819,948 29,583,468 4,289,200 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS | |
Schedule of short-term investments | As of December 31, 2021 2022 2022 RMB RMB USD Investments in wealth management products 147,458,675 156,031,572 22,622,451 Time deposits 410,000,000 30,000,000 4,349,592 Total 557,458,675 186,031,572 26,972,043 |
Schedule of total unrealized and realized gains and losses of Investments in equity securities | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Total net (losses) recognized (27,272,299) (9,195,509) (2,622,450) (380,219) Less: Net realized gains(losses) on equity securities sold 2,314,688 (452,014) 11,294,390 1,637,533 Net unrealized (losses) recognized on equity securities held (29,586,987) (8,743,495) (13,916,840) (2,017,752) |
Summary of unrealized and realized gains and losses of equity securities in current assets with readily | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Total net (losses) gains recognized (4,501,222) 15,623,340 (15,126,672) (2,193,161) Less: net realized gains on equity securities sold 4,746,032 14,058,448 — — Net unrealized (losses) recognized on equity securities held (9,247,254) 1,564,892 (15,126,672) (2,193,161) |
Schedule of long-term investments | As of December 31, 2021 2022 2022 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. 25,424,106 26,118,102 3,786,769 Other 10,787,859 8,495,562 1,231,741 Total equity method investments 36,211,965 34,613,664 5,018,510 Equity securities with readily determinable fair values 39,852,428 27,408,447 3,973,851 Equity securities without readily determinable fair values 6,233,255 9,826,143 1,424,657 Available-for-sale debt securities 106,493,137 103,706,206 15,035,986 Total 188,790,785 175,554,460 25,453,004 |
Schedule of total unrealized and realized gains and losses of equity securities without readily determinable | As of December 31, 2021 2022 2022 RMB RMB USD Initial cost 3,523,212 51,523,212 7,470,164 Cumulative unrealized gains 2,710,043 302,931 43,921 Cumulative unrealized losses (including impairment) — (42,000,000) (6,089,428) Total carrying value 6,233,255 9,826,143 1,424,657 |
Reconciliation of investment from amortized cost to fair value | As of December 31, 2021 Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Investments in wealth management products 147,458,675 — — — — 147,458,675 Available-for-sale debt securities of Yibon 103,701,474 2,791,663 — — — 106,493,137 As of December 31, 2022 Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Investments in wealth management products 156,031,572 — — — — 156,031,572 Available-for-sale debt securities of Yibon 103,701,474 2,791,663 (2,786,931) — — 103,706,206 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER ASSETS | |
Schedule of Other Assets | As of December 31, 2021 2022 2022 RMB RMB USD Current Receivable from on-line payment platforms 53,983,324 27,079,159 3,926,109 Interest receivable 49,347,369 4,944,657 716,908 Deposits 11,168,379 7,974,326 1,156,169 Advance to suppliers 5,206,428 2,724,889 395,071 VAT recoverable 5,009,469 5,625,956 815,687 Others 18,022,194 44,502,363 6,452,237 Total 142,737,163 92,851,350 13,462,181 Non-current Acquisition deposits 6,650,200 804,329 116,617 Rental deposit 56,962,580 40,016,200 5,801,804 Interest receivable 5,737,675 8,048,083 1,166,862 Purchase and rental deposits for buildings 197,723,649 192,305,859 27,881,729 Returnable consideration from the acquisition of Urban Hotel Group 5,385,583 — — VAT recoverable 10,774,251 11,101,867 1,609,619 Others 46,132,402 34,636,103 5,021,763 Less: provision — (192,305,859) (27,881,729) Total 329,366,340 94,606,582 13,716,665 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BANK LOANS | |
Schedule of principal payments on long-term borrowings | Year ending December 31, RMB USD 2023 141,800,000 20,559,067 2024 160,000,000 23,197,819 Total 301,800,000 43,756,886 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2021 2022 2022 RMB RMB USD Payable to franchisees 155,853,992 204,789,935 29,691,750 Business taxes and related tax surcharge 111,076,878 115,813,719 16,791,411 Accrued rental 27,957,242 — — Construction payable 13,888,585 15,587,528 2,259,979 Deposits payable 17,269,154 19,652,737 2,849,379 Payable for business combination and asset acquisitions 15,342,675 13,342,676 1,934,506 Accrued utilities 1,177,631 3,355,489 486,500 Others 38,715,905 27,512,224 3,988,897 Total 381,282,062 400,054,308 58,002,422 |
HOTEL OPERATING COSTS (Tables)
HOTEL OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
HOTEL OPERATING COSTS | |
Schedule Of Hotel Operating Costs | Year ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Rental 118,295,183 235,568,383 224,536,299 32,554,703 Utilities 15,372,385 25,782,913 27,877,272 4,041,825 Personnel cost 46,941,757 82,114,394 74,280,671 10,769,685 Depreciation and amortization 53,850,494 80,575,644 92,797,895 13,454,430 Consumable, food and beverage 43,257,796 69,495,702 41,281,830 5,985,302 Costs of hotel manager of franchised-and-managed hotels 91,664,745 114,779,305 107,852,170 15,637,095 Other costs of franchised-and-managed hotels 22,985,917 26,123,578 14,340,427 2,079,166 Others 9,291,029 16,936,986 11,052,758 1,602,500 Total 401,659,306 651,376,905 594,019,322 86,124,706 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE BASED COMPENSATION | |
Schedule of Assumptions Used to Estimate Fair Value of Share Options | Granted in 2021 Granted in 2022 Risk-free interest rate 0.92 % 1.35 % Volatility 40 % 39 % Dividend yield 2.5 % 2.5 % Life of option 6 years 6 years |
Summary of Share Option Activity Under Option Plans | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Life Value USD Years USD Share options outstanding at December 31, 2021 992,500 12.27 2.14 — Granted 10,000 14.00 6 — Exercised — — — — Forfeited (62,000) 12.84 — — Expired — — — — Share options outstanding at December 31, 2022 940,500 12.26 1.18 — Vested and expected to vest at December 31, 2022 940,500 12.26 1.18 — Exercisable as of December 31, 2022 932,250 12.22 1.18 — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Summary of Current and Deferred Components of Income Tax Expense | Year ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Current tax 122,931,256 105,353,756 80,209,774 11,629,324 Deferred tax (12,472,054) 3,535,126 (125,802,192) (18,239,603) Total 110,459,202 108,888,882 (45,592,418) (6,610,279) |
Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | Years ended December 31, 2020 2021 2022 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution — % 10 % 9 % Effect of international rate difference 1 % 1 % (10) % Effect of preferential tax rate — % (7) % 1 % Tax effect of expenses that are not deductible in determining taxable profit 4 % 6 % (7) % Valuation Allowance 1 % 14 % (8) % Effective tax rate 31 % 49 % 10 % |
Components of Deferred Income Tax Assets and Liabilities | As of December 31, 2021 2022 2022 RMB RMB USD Deferred tax assets: Net loss carryforward 53,089,828 64,191,537 9,306,898 Deferred revenue 115,049,834 91,552,823 13,273,912 Deferred rent 17,692,412 — — Lease liability — 414,797,817 60,140,030 Bad debt expenses 30,328,801 79,570,368 11,536,619 Accrued expenses 17,687,519 16,350,750 2,370,636 Unrealized losses from equity securities 7,534,182 717,944 104,092 Impairment of Long-lived assets and other assets — 53,054,078 7,692,118 Valuation allowance (59,426,713) (76,326,389) (11,066,286) Total deferred tax assets 181,955,863 643,908,928 93,358,019 Deferred tax liabilities: Depreciation of property and equipment (6,099,754) (7,765,478) (1,125,888) Unrealized gains from equity securities (880,803) (5,360,418) (777,188) Intangible assets arising from acquisition (176,681,292) (52,570,078) (7,621,945) Withholding tax on PRC earnings to be distributed (64,929,920) (20,730,212) (3,005,598) Right-of-use assets — (386,025,806) (55,968,481) Total deferred tax liabilities (248,591,769) (472,451,992) (68,499,100) Net deferred tax (liabilities) assets (66,635,906) 171,456,936 24,858,919 |
Schedule of Unrecognized Tax Benefits | Unrecognized tax benefits — January 1, 2021 202,915,367 Increases — tax positions in the current period 74,057,733 Decreases — tax positions in prior period (38,114,470) Unrecognized tax benefits — December 31, 2021 238,858,630 Unrecognized tax benefits — January 1, 2022 238,858,630 Increases — tax positions in the current period 25,680,473 Decreases — tax positions in prior period (17,903,791) Unrecognized tax benefits — December 31, 2022 246,635,312 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of Related Party Transactions or Balances with the Group | Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Quality Control Manager GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) Catering management Controlled by GTI Getao Industrial (HK) Limited (“Getao”) Catering management Controlled by GTI Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Beifu HongKong Indutrial Co,Limited (“Beifu HK”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Catering management Controlled by GTI Bellagio Restaurant Management Group (“Bellagio”) Catering management Controlled by GTI Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Yibon Hotel management Equity investee of the Group Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) * Hotel management Equity investee of the Group Woyaojiu Information Technology (Shanghai) Co.,Ltd. (“Woyaojiu”) Catering management Controlled by Hui Xu Shanxi Yueyuanbaili Hotel Management Co., Ltd. (“Yueyuan”) Hotel management Equity investee of the Group Apex(Weihai) Industrial Co., Ltd (“Apex”) Construction Controlled by Hui Xu * Hanyuan was a subsidiary of the Group before December 2021, when the Group disposed 5% of the equity interests of Hanyuan and Hanyuan became equity investee of the Group. |
Schedule of Related Party Balances | (a) Related party balances Due from related parties: As of December 31, 2021 2022 2022 RMB RMB USD Current: GTI 206,256,382 326,440,000 47,329,351 Aotao 65,206,135 65,206,135 9,454,000 Beifu HK 26,127,660 28,278,520 4,100,000 Yibon 8,330,198 7,039,315 1,020,605 Hanyuan 3,406,100 6,643,508 963,218 Napa 500,000 587,246 85,143 JYHM 481,227 1,739,578 252,215 Getao 112,158 121,391 17,600 Yueyuan — 608,394 88,209 Da Niang Group — 500,184 72,520 Woyaojiu — 1,000 145 Total 310,419,860 437,165,271 63,383,006 Due to related parties: As of December 31, 2021 2022 2022 RMB RMB USD Current: Yibon 6,602,643 7,238,237 1,049,446 Aotao — 5,550,000 804,674 Napa 2,868,685 536,857 77,837 Da Niang Group 31,307 459,868 66,675 JYHM 27,992 27,992 4,058 9,530,627 13,812,954 2,002,690 |
Schedule of Related Party Transactions | (b) Related party transactions Year ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Loan to GTI — (206,256,382) (162,490,000) (23,558,835) Repayment of loan from GTI 8,424,629 — 42,305,000 6,133,648 Repayment of loan from Aotao 499,421,550 121,000,000 — — Loan to Aotao (479,356,500) (186,051,400) — — Advertising service from Aotao (3,920,000) (6,473,400) (5,550,000) (804,674) Interest income from Aotao 2,316,856 — — — Franchise management fee to Aotao (41,867) (49,648) — — Purchase from Napa (2,059,566) (2,547,178) (413,690) (59,979) Loan to Hanyuan — (3,406,100) (3,237,408) (469,380) Franchised revenue from Yibon 852,287 1,251,888 1,285,068 186,317 Repayment of loan from Yibon — 3,750,000 1,250,000 181,233 Interest income from Yibon 18,667,117 544,352 12,333 1,788 Loan to Yibon (9,000,000) (3,000,000) — — Loan to Wen Qi — — (2,360,000) (342,168) Service purchased from JYHM (40,000) (667,751) (20,754) (3,009) Sublease revenue from JYHM 284,179 261,392 47,704 6,916 Loan to Yueyuan — — (608,394) (88,209) Service purchased form Bellagio — (367,804) (204,087) (29,590) Loan to Beifu HK — (169,511,160) — — Repayment of loan from Getao on behalf of Beifu HK — 143,383,500 — — Loan to Da Niang Group (40,000,000) (39,800,000) — — Repayment of loan from Da Niang Group 40,000,000 39,800,000 — — Interest income from Da Niang Group 352,882 — — — Service purchased from Da Niang Group (724,045) (221,389) — — Sublease revenue from Da Niang Group 36,000 27,000 — — |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
Schedule of Basic and Diluted Earning Per Share | Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Numerator: Net income(loss) used in calculating earnings per share-basic and diluted 261,344,391 117,438,250 (382,216,959) (55,416,249) Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings(loss) per share 68,286,954 68,286,954 68,201,056 68,201,056 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings(loss) per share 34,762,909 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings(loss) — basic and diluted: To Class A Shares 173,182,301 77,821,553 (253,172,070) (36,706,500) To Class B Shares 88,162,090 39,616,697 (129,044,888) (18,709,750) Basic and diluted earnings(loss) per share: To Class A Shares 2.54 1.14 (3.71) (0.54) To Class B Shares 2.54 1.14 (3.71) (0.54) |
OTHER COMPREHENSIVE INCOME_( _2
OTHER COMPREHENSIVE INCOME/( LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER COMPREHENSIVE INCOME/( LOSS) | |
Schedule of changes in accumulated other comprehensive income | Unrealized Foreign gains(losses) currency on available- translation for-sale adjustments investments Total RMB RMB RMB Balance at December 31,2019 65,300,854 — 65,300,854 Net current-period other comprehensive loss (19,714,207) — (19,714,207) Balance at December 31,2020 45,586,647 — 45,586,647 Net current-period other comprehensive (loss) income (6,497,403) 2,791,663 (3,705,740) Balance at December 31,2021 39,089,244 2,791,663 41,880,907 Net current-period other comprehensive loss (11,361,872) (2,786,931) (14,148,803) Balance at December 31,2022 27,727,372 4,732 27,732,104 Balance at December 31, 2022 (USD) 4,020,091 685 4,020,776 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, 2021 2022 2022 RMB RMB USD ASSETS Current assets Cash and cash equivalents 22,609,979 15,788,863 2,289,170 Investments in equity securities 59,114,452 3,094,133 448,607 Amounts due from subsidiaries 113,057,771 122,364,821 17,741,232 Amounts due from a related party 202,502,545 348,019,981 50,458,154 Total current assets 397,284,747 489,267,798 70,937,163 Non-current assets: Investments in subsidiaries 1,977,459,895 1,635,636,043 237,144,935 Investments in equity securities 39,852,428 33,408,446 4,843,769 TOTAL ASSETS 2,414,597,070 2,158,312,287 312,925,867 LIABILITIES AND EQUITY Current liabilities: Dividends payable 40,999,458 — — Long -term bank loans, current portion 30,200,000 121,800,000 17,659,340 Amounts due to subsidiaries 350,308,050 592,226,352 85,864,750 Total current liabilities 421,507,508 714,026,352 103,524,090 Non-current liabilities: Long-term bank loans, non-current portion 121,800,000 — — Other long-term liabilities 13,604,451 — — Total liabilities 556,911,959 714,026,352 103,524,090 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000 and 400,000,000 shares authorized as of December 31, 2021 and 2022; 68,286,954 and 68,201,056 shares issued outstanding 222,587,070 222,587,070 32,272,092 Class B ordinary shares (USD0.50 par value per share; 100,000,000 and 100,000,000 shares authorized as of December 31, 2021 and 2022; 34,762,909 and 34,762,909 shares issued outstanding 115,534,210 115,534,210 16,750,886 Treasury stock — (16,971,057) (2,460,572) Additional paid-in capital 1,151,384,306 1,151,321,950 166,925,992 Retained earnings / (Accumulated losses) 326,298,618 (55,918,342) (8,107,397) Accumulated other comprehensive income 41,880,907 27,732,104 4,020,776 Total Shareholders’ Equity 1,857,685,111 1,444,285,935 209,401,777 TOTAL LIABILITIES AND EQUITY 2,414,597,070 2,158,312,287 312,925,867 |
Condensed Statements of Operations | Condensed statements of operations Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD General and administrative expenses (9,967,834) (18,917,120) (6,740,255) (977,245) Other general expense — — (13,944,926) (2,021,824) Interest income 8,173 173,316 1,924 279 Interest expense — — (5,192,054) (752,777) Other income — — 22,765,816 3,300,733 (Losses) Gains on investments in equity securities (11,392,623) 11,519,174 (76,105,482) (11,034,258) Share of profit (losses) in subsidiaries, net (Note a) 282,696,675 124,662,880 (303,001,982) (43,931,158) Net income(losses) 261,344,391 117,438,250 (382,216,959) (55,416,250) Other comprehensive losses, net of tax - Foreign currency translation adjustments (19,714,207) (6,497,403) (11,361,872) (1,647,317) - Unrealized gains (losses) on available-for-sale investments — 2,791,663 (2,786,931) (404,067) Comprehensive income /(loss) 241,630,184 113,732,510 (396,365,762) (57,467,634) |
Condensed Statements of Cash Flows | Condensed statements of cash flows Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB USD Net cash provided by (used in) operating activities 231,204,774 (16,338,658) 222,680,208 32,285,596 Net cash used in investing activities (65,670,760) (113,026,343) (156,276,810) (22,658,008) Net cash used in financing activities — (43,683,098) (71,199,458) (10,322,953) Effect of exchange rate changes on cash and cash equivalents and restricted cash 5,679,523 2,306,901 (2,025,056) (293,604) Net increase (decrease) in cash and cash equivalents and restricted cash 171,213,537 (170,741,198) (6,821,116) (988,969) Cash and cash equivalents and restricted cash at beginning of the year 22,137,640 193,351,177 22,609,979 3,278,139 Cash and cash equivalents and restricted cash at end of the year 193,351,177 22,609,979 15,788,863 2,289,170 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 20, 2021 USD ($) $ / shares | Dec. 20, 2021 CNY (¥) | Jan. 15, 2020 shares | Jun. 27, 2019 shares | Jan. 25, 2019 shares | Mar. 27, 2018 USD ($) $ / shares shares | Mar. 27, 2018 CNY (¥) shares | Mar. 11, 2018 shares | Jan. 31, 2022 USD ($) | Jan. 31, 2022 CNY (¥) | Dec. 31, 2022 | Dec. 31, 2020 shares | Dec. 31, 2017 shares | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Entity incorporation date | Oct. 18, 2017 | ||||||||||||
Cash dividend | $ | $ 56,667,425 | ||||||||||||
Cash dividend per ordinary share | $ / shares | $ 0.55 | ||||||||||||
Payments of dividend | $ 50,243,715 | ¥ 320,253,160 | $ 6,423,710 | ¥ 40,999,458 | |||||||||
Minimum | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Lease term | 5 years | ||||||||||||
Maximum | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Lease term | 22 years | ||||||||||||
Leased And Operated Hotels | Minimum | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Lease term | 5 years | ||||||||||||
Leased And Operated Hotels | Maximum | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Lease term | 22 years | ||||||||||||
Franchised And Managed Hotels | Minimum | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Lease term | 5 years | ||||||||||||
Franchised And Managed Hotels | Maximum | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Lease term | 20 years | ||||||||||||
Argyle Beijing | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Business acquisition, equity interest acquired | 60% | ||||||||||||
Initial Public Offering | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Payment for initial public offering costs | ¥ | ¥ 30,827,578 | ||||||||||||
Class B Ordinary Shares to Class A Ordinary Shares | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Number of shares were redesignated | 7,594,048 | ||||||||||||
Common Class A | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Business acquisition, shares issued | 870,908 | ||||||||||||
Common Class A | Argyle Beijing | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Business acquisition, shares issued | 626,746 | 626,746 | |||||||||||
Common Class A | Shandong Xinghui | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Business acquisition, shares issued | 870,908 | ||||||||||||
Business acquisition, equity interest acquired | 70% | ||||||||||||
Common Class A | Initial Public Offering | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Stock issued during period | 10,200,000 | 10,200,000 | |||||||||||
Shares issued price per share | $ / shares | $ 14 | ||||||||||||
Proceeds from issuance of shares | $ | $ 133,518,000 | ||||||||||||
Common Class A | GreenTree Inns Hotel Management Group, Inc. | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Shares issued for services contributed by founders | 48,635,252 | ||||||||||||
Common Class B | GreenTree Inns Hotel Management Group, Inc. | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Shares issued for services contributed by founders | 42,716,957 | ||||||||||||
Alex S. Xu (CEO) | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||||
Percentage of ownership interest hold by founder | 78.59% |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of Group's Major Direct and Indirect Subsidiaries of Investments (Details) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity incorporation date | Oct. 18, 2017 |
Entity Incorporation, State or Country Code | E9 |
GreenTree Inns Hotel (Shanghai) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Nov. 30, 2004 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (China) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jun. 30, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Aug. 09, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Hexie (Changzhou) Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Sep. 14, 2006 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Jiangsu) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Changning) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Tianjin) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Aug. 02, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Zhejiang) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Aug. 13, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Beijing) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Mar. 17, 2008 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shiruide Hotel Management (Shanghai) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 16, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Jinan Dongrunbao Inns Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Apr. 22, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Suites Management Corp ("GreenTree Suites") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | E9 |
Major Operation | Investment holding |
Pacific Hotel Investment, Inc.("PHI") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Inns Hotel Management Group, Inc. ("GreenTree Samoa") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Oct. 28, 2010 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Hotels (Hong Kong), Limited. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 17, 2011 |
Entity Incorporation, State or Country Code | K3 |
Major Operation | Investment holding |
Shanghai Evergreen Technology Co., Ltd. ("Shanghai Evergreen") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
Shanghai Beifu Industrial Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 25, 2014 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shenzhen Gegao Investment Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | May 07, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Investment holding |
Yancheng Ruixin Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 70% |
Entity incorporation date | Jun. 05, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Jingjia Hotel Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 15, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Wumian Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 66.70% |
Entity incorporation date | Jan. 16, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Yancheng Zexin Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 51% |
Entity incorporation date | Jul. 01, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Foshan Baiqinghui Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 70% |
Entity incorporation date | Aug. 31, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Hotel (Xuzhou) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 05, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Banyan Hotel (Xuzhou) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | May 03, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Suzhou Ganglongkaiyuan Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | May 31, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2022 CNY (¥) tier segment | Dec. 31, 2022 USD ($) tier segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | May 31, 2016 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Unrealized gains from long-term time deposit | ¥ 4,534,833 | $ 657,489 | ¥ 4,726,875 | ¥ 19,880,287 | |||
Long-term time deposits pledged with banks as security | ¥ 130,000,000 | 130,000,000 | $ 18,848,228 | ||||
Number of reporting unit | segment | 1 | 1 | |||||
Impairment loss of goodwill | ¥ 91,236,480 | $ 13,228,046 | 0 | ||||
Sublease rental revenue | 61,578,703 | 8,928,073 | 74,689,226 | 77,676,665 | |||
Hotel manager fees | ¥ 115,738,098 | $ 16,780,447 | 131,027,473 | 112,729,886 | |||
Number of tiers membership | tier | 4 | 4 | |||||
Expiration period of non usage membership program | 2 years | 2 years | |||||
Membership program of renewal period | 2 years | 2 years | |||||
VAT rate | 6% | ||||||
Advertising and promotional expenses | ¥ 12,347,881 | $ 1,790,274 | 22,906,044 | 38,934,867 | |||
Government subsidies | 11,466,168 | 1,662,438 | 16,993,539 | 20,094,745 | |||
Employee benefits | 45,051,494 | 6,531,853 | 36,617,173 | 25,666,575 | |||
Net foreign currency translation loss | 11,361,872 | 1,647,317 | 6,497,403 | 19,714,207 | |||
Impairment of long-lived assets | 0 | 0 | |||||
Carrying amount of long-term investment | 9,826,143 | 6,233,255 | 1,424,657 | ||||
Shandong Xinghui | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Impairment of long-lived assets | 28,395,905 | ||||||
Argyle Beijing | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Impairment of long-lived assets | 48,306,360 | ||||||
Hotel | Shandong Xinghui | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Impairment of long-lived assets | $ | 4,117,019 | ||||||
Hotel | Argyle Beijing | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Impairment of long-lived assets | $ | $ 7,003,764 | ||||||
Trademarks | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Impairment loss | 12,000,345 | $ 1,739,886 | ¥ 0 | ||||
Loans Receivable | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Receivables outstanding | ¥ 1,073,930,780 | 965,475,805 | 155,705,327 | ||||
Loans Receivable | Credit Concentration Risk | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Appreciation in functional currency | 8.23% | 8.23% | |||||
Mainland China | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Concentration of credit risk | ¥ 2,544,290 | 288,545,669 | $ 368,887 | ||||
Cayman Island | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Concentration of credit risk | 29,070,237 | ||||||
Hong Kong | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Concentration of credit risk | 663,759,671 | ||||||
Japan | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Concentration of credit risk | ¥ 96,236,106 | ||||||
RMB | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Foreign currency exchange rate | 6.8972 | 6.8972 | |||||
Minimum | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Estimated life of paid membership program | 3 years | 3 years | |||||
Long term, maturity period | 1 year | 1 year | |||||
Initial lease term | 5 years | 5 years | |||||
Maximum | |||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||||
Estimated life of paid membership program | 5 years | 5 years | |||||
Long term, maturity period | 3 years | 3 years | |||||
Initial lease term | 22 years | 22 years |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of Property and Equipment Net, Expected Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Leasehold improvements | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives, description | Over the shorter of the lease term or estimated useful lives |
Buildings | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 20 years |
Furniture, fixtures and equipment | Minimum | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 3 years |
Furniture, fixtures and equipment | Maximum | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 5 years |
Motor vehicles | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 5 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Amortization of Intangible Assets, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Trademark | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Intangible assets estimated useful lives | 10 years |
Technology | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Intangible assets estimated useful lives | 10 years |
Network rights | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Intangible assets estimated useful lives | 10 years |
Purchased software | Minimum | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Intangible assets estimated useful lives | 5 years |
Purchased software | Maximum | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Intangible assets estimated useful lives | 10 years |
Reacquired rights | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Intangible assets estimated useful lives | the remaining franchise term |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Investments in equity securities - equity securities with readily determinable fair value | ¥ 41,361,346 | $ 5,996,831 | ¥ 157,988,851 |
Fair Value, Recurring | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Other assets - returnable consideration from acquisition of Urban | 5,385,583 | ||
Short-term investments - Investments in wealth management products | 156,031,572 | 147,458,675 | |
Investments in equity securities - equity securities with readily determinable fair value | 41,361,346 | 157,988,851 | |
Long-term investments - equity securities with readily determinable fair value | 27,408,446 | 39,852,428 | |
Long-term investments -available-for-sale debt securities | 103,706,206 | 106,493,137 | |
Fair Value Measurements | 328,507,570 | 457,178,674 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Investments in equity securities - equity securities with readily determinable fair value | 41,361,346 | 157,988,851 | |
Long-term investments - equity securities with readily determinable fair value | 27,408,446 | 39,852,428 | |
Fair Value Measurements | 68,769,792 | 197,841,279 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Short-term investments - Investments in wealth management products | 156,031,572 | 147,458,675 | |
Fair Value Measurements | 156,031,572 | 147,458,675 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Other assets - returnable consideration from acquisition of Urban | 5,385,583 | ||
Long-term investments -available-for-sale debt securities | 103,706,206 | $ 15,035,986 | 106,493,137 |
Fair Value Measurements | ¥ 103,706,206 | ¥ 111,878,720 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Reconciliations of Assets and Liabilities (Details) - 12 months ended Dec. 31, 2022 - Fair Value, Recurring | CNY (¥) | USD ($) |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Returnable consideration, Beginning balance | ¥ 5,385,583 | |
Available-for-sale debt investment, Beginning balance | 106,493,137 | |
Available-for-sale debt investment, Ending balance | 103,706,206 | |
Significant Unobservable Inputs (Level 3) | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Returnable consideration, Beginning balance | 5,385,583 | |
Disposal of Urban | (5,385,583) | |
Available-for-sale debt investment, Beginning balance | 106,493,137 | |
Available-for- sale debt investment, Net unrealized fair value increase recognized in other comprehensive income | (2,786,931) | |
Available-for-sale debt investment, Ending balance | ¥ 103,706,206 | $ 15,035,986 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Unobservable Inputs (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
WACC | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Available-for-sale debt investments, measurement input | 12 | 12 |
Discount for lack of marketability | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Available-for-sale debt investments, measurement input | 44 | 34 |
Expected volatility | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Available-for-sale debt investments, measurement input | 52 | 42 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Adopted Accounting Standards (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid rent | ¥ 15,454,967 | ||
Operating lease right-of-use assets | ¥ 1,544,739,494 | $ 223,966,174 | 1,830,043,887 |
Total assets | 1,830,043,887 | ||
Accrued expenses and other current liabilities | 400,054,308 | 58,002,422 | 381,282,062 |
Deferred rent | 68,842,692 | ||
Operating lease liabilities, current | 210,388,801 | 30,503,509 | 177,938,604 |
Operating lease liabilities, non-current | 1,449,422,906 | 210,146,568 | 1,702,532,277 |
Total liabilities | 1,880,470,881 | ||
Lease liabilities | ¥ 1,659,811,707 | $ 240,650,077 | |
ASU 2016-02 | As reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Favorable lease | 32,844,929 | ||
Prepaid rent | 15,454,967 | ||
Total assets | 48,299,896 | ||
Accrued expenses and other current liabilities | 27,957,242 | ||
Deferred rent | 70,769,648 | ||
Total liabilities | 98,726,890 | ||
ASU 2016-02 | Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Favorable lease | (32,844,929) | ||
Prepaid rent | (15,454,967) | ||
Operating lease right-of-use assets | 1,830,043,887 | ||
Total assets | 1,781,743,991 | ||
Accrued expenses and other current liabilities | (27,957,242) | ||
Deferred rent | (70,769,648) | ||
Operating lease liabilities, current | 177,938,604 | ||
Operating lease liabilities, non-current | 1,702,532,277 | ||
Total liabilities | ¥ 1,781,743,991 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2021 CNY (¥) item | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 CNY (¥) item | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
BUSINESS COMBINATIONS | ||||||
Goodwill | ¥ 120,819,948 | ¥ 100,231,487 | ¥ 29,583,468 | $ 4,289,200 | $ 17,517,246 | |
2021 Business Combinations | ||||||
BUSINESS COMBINATIONS | ||||||
Business acquisition, number of acquisitions completed | item | 3 | 3 | ||||
Business acquisition, total consideration amount | ¥ 23,000,000 | $ 3,609,202 | ||||
Goodwill | 20,588,461 | |||||
Business acquisition, cash consideration paid | ¥ 19,530,000 | $ 3,064,683 | ||||
2020 Business Combinations | ||||||
BUSINESS COMBINATIONS | ||||||
Business acquisition, number of acquisitions completed | item | 1 | |||||
Business acquisition, total consideration amount | ¥ 2,200,000 | |||||
Goodwill | ¥ 153,251 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Fair Values of the Assets Acquired and Liabilities (Details) | 12 Months Ended | ||||
Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | |
Intangible assets | |||||
Goodwill | ¥ 120,819,948 | ¥ 29,583,468 | $ 4,289,200 | $ 17,517,246 | ¥ 100,231,487 |
Trademark | |||||
Intangible assets | |||||
Amortization Period | 10 years | ||||
2021 Business Combinations | |||||
BUSINESS COMBINATIONS | |||||
Property and equipment | ¥ 92,075 | ||||
Intangible assets | |||||
Trademark | 36,896,000 | ||||
Goodwill | 20,588,461 | ||||
Noncontrolling interest | (34,576,536) | ||||
Total | ¥ 23,000,000 | ||||
2021 Business Combinations | Property and Equipment | Minimum | |||||
Intangible assets | |||||
Amortization Period | 3 years | ||||
2021 Business Combinations | Property and Equipment | Maximum | |||||
Intangible assets | |||||
Amortization Period | 5 years |
DECONSOLIDATIONS - Deconsolidat
DECONSOLIDATIONS - Deconsolidation of Argyle (Details) | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
DISPOSITION AND DECONSOLIDATION | |||||||||
Impairment of intangible assets with indefinite life | ¥ 12,000,345 | $ 1,739,886 | ¥ 12,000,345 | $ 1,739,886 | |||||
Impairment loss of goodwill | 91,236,480 | 13,228,046 | ¥ 0 | ||||||
Carrying amount of long-term investment | 9,826,143 | 6,233,255 | $ 1,424,657 | ||||||
Cumulative unrealized losses (including impairment) | 302,931 | ¥ 2,710,043 | $ 43,921 | ||||||
Argyle Beijing | Deconsolidation | |||||||||
DISPOSITION AND DECONSOLIDATION | |||||||||
Impairment of intangible assets with indefinite life | ¥ 17,054,641 | $ 2,472,691 | |||||||
Impairment loss of goodwill | 42,198,903 | 6,118,266 | ¥ 42,000,000 | $ 6,089,428 | |||||
Carrying amount of long-term investment | 48,000,000 | $ 6,959,346 | |||||||
Loss on deconsolidation | ¥ 13,944,925 | $ 2,021,824 |
DECONSOLIDATIONS - Deconsolid_2
DECONSOLIDATIONS - Deconsolidation of Urban (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2022 CNY (¥) shares | Nov. 25, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Nov. 25, 2022 USD ($) shares | |
DISPOSITION AND DECONSOLIDATION | |||||||||||
Impairment of intangible assets with indefinite life | ¥ 12,000,345 | $ 1,739,886 | ¥ 12,000,345 | $ 1,739,886 | |||||||
Impairment losses of intangible assets with finite life | 700,762 | 101,600 | |||||||||
Impairment of long-lived assets | ¥ 0 | ¥ 0 | |||||||||
Impairment loss of goodwill | ¥ 91,236,480 | $ 13,228,046 | ¥ 0 | ||||||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other General Expense | Other General Expense | |||||||||
Urban | |||||||||||
DISPOSITION AND DECONSOLIDATION | |||||||||||
Cash consideration | ¥ 126,000,000 | $ 18,268,283 | |||||||||
Impairment of intangible assets with indefinite life | ¥ 12,000,345 | $ 1,739,886 | |||||||||
Impairment losses of intangible assets with finite life | ¥ 700,762 | $ 101,600 | |||||||||
Impairment of long-lived assets | 10,640,502 | 1,542,728 | |||||||||
Impairment loss of goodwill | 49,037,576 | 7,109,780 | |||||||||
Urban | Disposed by sale | |||||||||||
DISPOSITION AND DECONSOLIDATION | |||||||||||
Purchase price | ¥ 142,971,057 | ||||||||||
Number of ordinary shares | shares | 870,908 | 870,908 | |||||||||
Fair value of shares issued as consideration | ¥ 16,971,057 | $ 2,460,572 | |||||||||
Cash consideration | ¥ 88,200,000 | $ 12,787,798 | |||||||||
Loss on disposal | ¥ 855,223 | $ 123,996 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Summary of Revenues Disaggregated by Type of Services (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | ¥ 936,801,282 | $ 135,823,418 | ¥ 1,206,145,958 | ¥ 930,010,096 |
Leased and operated hotels revenues | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 338,506,220 | 49,078,788 | 391,960,031 | 227,074,041 |
Franchised And Managed Hotels | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 582,441,077 | 84,446,018 | 774,359,348 | 677,480,818 |
Initial fees received from franchisees owners | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 42,423,951 | 6,150,894 | 76,263,574 | 61,051,369 |
Continuing franchise fees | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 540,017,126 | 78,295,124 | 698,095,774 | 616,429,449 |
Others | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | ¥ 15,853,985 | $ 2,298,612 | ¥ 39,826,579 | ¥ 25,455,237 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Components of Deferred Revenue (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Deferred revenue | ¥ 421,801,098 | $ 61,155,411 | ¥ 529,620,463 |
Initial Franchise Fee | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Deferred revenue | 190,381,636 | 27,602,743 | 248,406,284 |
Cash received for membership fees and not recognized as revenue | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Deferred revenue | 138,656,460 | 20,103,297 | 186,976,973 |
Cash received for prepaid card and sublease | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Deferred revenue | 40,622,136 | 5,889,656 | 47,604,011 |
Deferred revenue related to the membership program | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Deferred revenue | ¥ 52,140,866 | $ 7,559,715 | ¥ 46,633,195 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Contract liabilities, revenues recognized | ¥ 179,416,343 | $ 26,012,925 | ¥ 183,736,546 | |
Total deferred revenue | 421,801,098 | 529,620,463 | $ 61,155,411 | |
Initial Franchise Fee | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | 190,381,636 | 248,406,284 | 27,602,743 | |
Membership Fees | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | 138,656,460 | 186,976,973 | 20,103,297 | |
Greentree Reward Membership Program | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | 52,140,866 | 46,633,195 | 7,559,715 | |
Cash Received for Prepaid Card and Sublease | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | ¥ 40,622,136 | ¥ 47,604,011 | $ 5,889,656 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details 1) - Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2022-01-01 | Dec. 31, 2022 |
Initial Franchise Fee | Minimum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 1 year |
Initial Franchise Fee | Maximum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 30 years |
Membership Fees | Minimum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 1 year |
Membership Fees | Maximum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 5 years |
Greentree Reward Membership Program | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 2 years |
REVENUE FROM CONTRACTS WITH C_7
REVENUE FROM CONTRACTS WITH CUSTOMERS - Summary of Contract Liabilities (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||
Advance from customers | ¥ 18,681,010 | $ 2,708,492 | ¥ 39,773,738 |
Deferred revenue-current | 189,105,747 | 27,417,756 | 215,147,975 |
Deferred revenue-non current | 232,695,351 | 33,737,655 | 314,472,488 |
Total contract liabilities | ¥ 440,482,108 | $ 63,863,903 | ¥ 569,394,201 |
LOANS RECEIVABLE, NET - Summary
LOANS RECEIVABLE, NET - Summary of Loans Receivable, Net (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | ¥ 181,667,170 | $ 26,339,264 | ¥ 247,530,580 |
Less: bad debt provision, current | (54,668,667) | (7,926,212) | (105,703,244) |
Loans receivable, non-current portion | 177,172,509 | 25,687,599 | 290,967,680 |
Less: bad debt provision, noncurrent | (224,649,006) | (32,571,044) | (12,182,758) |
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 197,473,408 | 28,630,953 | 308,016,920 |
Loans receivable, non-current portion | 373,477,244 | 54,149,110 | 294,150,438 |
Third parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 38,862,429 | 5,634,523 | 45,216,904 |
Less: bad debt provision, current | (279,317,673) | (40,497,256) | (117,886,002) |
Loans receivable, non-current portion | ¥ 28,344,271 | $ 4,109,533 | ¥ 9,000,000 |
LOANS RECEIVABLE, NET - Aging o
LOANS RECEIVABLE, NET - Aging of past-due loans receivables (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | ¥ 285,582,658 | $ 41,405,593 | ¥ 140,329,597 |
1 to 3 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 37,705,971 | 5,466,852 | 42,412,387 |
4 to 6 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 17,747,676 | 2,573,171 | 25,028,613 |
7 to 12 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 95,949,547 | 13,911,377 | 33,136,695 |
Over 1 year past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | ¥ 134,179,464 | $ 19,454,193 | ¥ 39,751,902 |
LOANS RECEIVABLE, NET - Movemen
LOANS RECEIVABLE, NET - Movement of allowance for loans receivable (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
Movement of allowance for loans receivable | ||||
Balance of the beginning of the year | ¥ 117,886,002 | $ 17,091,864 | ¥ 18,000,000 | |
Provision | 161,431,671 | 23,405,392 | 99,886,002 | |
Balance of the end of the year | 279,317,673 | $ 40,497,256 | 117,886,002 | |
Evaluated for impairment on an individual basis | ¥ 116,852,875 | ¥ 117,886,002 | $ 16,942,074 |
LOANS RECEIVABLE, NET - Additio
LOANS RECEIVABLE, NET - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, allowance | ¥ 54,668,667 | $ 7,926,212 | ¥ 105,703,244 |
Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 year | ||
Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 3 years | ||
Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, allowance | ¥ 279,317,673 | $ 40,497,256 | ¥ 117,886,002 |
Loan Agreement | Franchisees | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 month | ||
Debt instrument, interest rate | 4.70% | 4.70% | |
Loan Agreement | Franchisees | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 6 years | ||
Debt instrument, interest rate | 9.90% | 9.90% | |
Loan Agreement | Third Parties | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 year | ||
Debt instrument, interest rate | 7.90% | 7.90% | |
Loan Agreement | Third Parties | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 3 years | ||
Debt instrument, interest rate | 18% | 18% |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment, Net (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 1,339,581,734 | $ 194,221,095 | ¥ 1,354,245,525 |
Less: Accumulated depreciation | (506,440,843) | (73,427,020) | (436,314,189) |
Impairment | (19,910,455) | (2,886,745) | |
Net book value | 813,230,436 | 117,907,330 | 917,931,336 |
Construction in progress | 21,541,245 | 3,123,187 | 127,424,929 |
Property and equipment, net | 834,771,681 | 121,030,517 | 1,045,356,265 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 637,783,560 | 92,469,924 | 626,908,935 |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 598,805,361 | 86,818,616 | 630,691,571 |
Furniture, fixtures and equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 100,499,326 | 14,571,033 | 93,440,638 |
Motor vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 2,493,487 | $ 361,522 | ¥ 3,204,381 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) building | Dec. 31, 2022 USD ($) building | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Property Plant And Equipment [Line Items] | |||||
Depreciation expense | ¥ 104,605,645 | $ 15,166,393 | ¥ 89,617,316 | ¥ 59,719,535 | |
Property and equipment, net | ¥ 834,771,681 | 1,045,356,265 | $ 121,030,517 | ||
Asset Pledged as Collateral | |||||
Property Plant And Equipment [Line Items] | |||||
Number of properties pledges as collateral | 2 | 2 | |||
Property and equipment, net | ¥ 270,646,005 | ¥ 288,313,328 | $ 39,239,982 |
PROPERTY AND EQUIPMENT, NET -_2
PROPERTY AND EQUIPMENT, NET - Schedule of Depreciation Expense (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | ¥ 104,605,645 | $ 15,166,393 | ¥ 89,617,316 | ¥ 59,719,535 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of intangible assets, net (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | ¥ 62,387,016 | $ 9,045,267 | ¥ 550,002,745 |
Less: Accumulated amortization | (24,275,080) | (3,519,556) | (29,885,266) |
Total | 38,111,936 | 5,525,711 | 520,117,479 |
Trademarks | |||
Intangible assets with indefinite lives: | |||
Indefinite lives intangible assets, Gross | 443,300,000 | ||
Trademarks | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | 41,435,000 | 6,007,510 | 41,620,493 |
Technology | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | 4,200,000 | 608,943 | 4,200,000 |
Network rights | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | 210,755 | 30,557 | 390,317 |
Purchased software | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | 13,574,658 | 1,968,140 | 15,429,484 |
Reacquired rights | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | 2,531,418 | 367,021 | 2,531,418 |
Favorable leases | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | 42,095,848 | ||
Others | |||
Intangible assets with finite lives: | |||
Finite-lived intangible assets, Gross | ¥ 435,185 | $ 63,096 | ¥ 435,185 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional information (Details) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 CNY (¥) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
GOODWILL | ||||||
Amortization expense of intangible | ¥ 5,267,881 | $ 763,771 | ¥ 8,493,341 | ¥ 6,150,436 | ||
Impairment charges recognized | ¥ 0 | ¥ 0 | ||||
Impairment of intangible assets with indefinite life | ¥ 12,000,345 | $ 1,739,886 | 12,000,345 | 1,739,886 | ||
Impairment losses of intangible assets with finite life | ¥ 700,762 | $ 101,600 |
INTANGIBLE ASSETS, NET- Estimat
INTANGIBLE ASSETS, NET- Estimated aggregate amortization expense (Details) - Dec. 31, 2022 | CNY (¥) | USD ($) |
GOODWILL | ||
2023 | ¥ 5,360,169 | $ 777,151 |
2024 | 5,251,853 | 761,447 |
2025 | 4,849,872 | 703,165 |
2026 | 4,644,938 | 673,453 |
2027 | 4,298,162 | 623,175 |
Thereafter | ¥ 13,706,942 | $ 1,987,320 |
LEASES - Supplemental informati
LEASES - Supplemental information related to operating leases (Details) | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
LEASES | |||||
Operating lease right-of-use assets | ¥ 1,544,739,494 | ¥ 1,830,043,887 | $ 223,966,174 | ||
Operating lease liabilities, current | 210,388,801 | 177,938,604 | 30,503,509 | ||
Operating lease liabilities, non-current | 1,449,422,906 | 1,702,532,277 | 210,146,568 | ||
Total operating lease liabilities | 1,659,811,707 | $ 240,650,077 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | 142,082,493 | $ 20,600,025 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 4,852,371 | 703,528 | |||
Weighted average remaining lease term (in years) | 11 years 7 months 2 days | 11 years 7 months 2 days | |||
Weighted average discount rate | 4.44% | 4.44% | |||
Lease expense operating leases | ¥ 224,536,299 | $ 33,522,387 | ¥ 235,568,383 | ¥ 118,295,183 |
LEASES - Maturity of operating
LEASES - Maturity of operating lease liabilities (Details) - Dec. 31, 2022 | CNY (¥) | USD ($) |
Maturity of operating lease liabilities | ||
2023 | ¥ 282,807,254 | $ 41,003,197 |
2024 | 197,605,091 | 28,650,045 |
2025 | 192,081,787 | 27,849,241 |
2026 | 186,104,746 | 26,982,652 |
2027 | 167,736,439 | 24,319,498 |
Thereafter | 1,135,384,672 | 164,615,304 |
Total future lease payments | 2,161,719,989 | 313,419,937 |
Less: imputed interest | 501,908,282 | 72,769,860 |
Total operating lease liabilities | ¥ 1,659,811,707 | $ 240,650,077 |
GOODWILL - Schedule of changes
GOODWILL - Schedule of changes in carrying amount of goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
GOODWILL | |||
Balance as of January 1 | ¥ 120,819,948 | $ 17,517,246 | ¥ 100,231,487 |
Acquisitions | 20,588,461 | ||
Impairment loss of goodwill | (91,236,480) | (13,228,046) | 0 |
Balance as of December 31 | ¥ 29,583,468 | $ 4,289,200 | ¥ 120,819,948 |
INVESTMENTS - Short-Term Invest
INVESTMENTS - Short-Term Investments (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
INVESTMENTS | |||
Investments in wealth management products | ¥ 156,031,572 | $ 22,622,451 | ¥ 147,458,675 |
Time deposits | 30,000,000 | 4,349,592 | 410,000,000 |
Total | ¥ 186,031,572 | $ 26,972,043 | ¥ 557,458,675 |
INVESTMENTS - Investments in eq
INVESTMENTS - Investments in equity securities (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
INVESTMENTS | ||||
Total net (losses) recognized | ¥ (2,622,450) | $ (380,219) | ¥ (9,195,509) | ¥ (27,272,299) |
Less: Net realized gains(losses) on equity securities sold | 11,294,390 | 1,637,533 | (452,014) | 2,314,688 |
Net unrealized (losses) recognized on equity securities held | ¥ (13,916,840) | $ (2,017,752) | ¥ (8,743,495) | ¥ (29,586,987) |
INVESTMENTS - Long-Term Investm
INVESTMENTS - Long-Term Investments (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Schedule Of Investments | |||
Equity method investments | ¥ 34,613,664 | $ 5,018,510 | ¥ 36,211,965 |
Equity securities with readily determinable fair values | 27,408,447 | 3,973,851 | 39,852,428 |
Equity securities without readily determinable fair values | 9,826,143 | 1,424,657 | 6,233,255 |
Available-for-sale debt investment | 103,706,206 | 15,035,986 | 106,493,137 |
Long-term Investments, Total | 175,554,460 | 25,453,004 | 188,790,785 |
Shanghai Wiselong Enterprise Management Co., Ltd. | |||
Schedule Of Investments | |||
Equity method investments | 26,118,102 | 3,786,769 | 25,424,106 |
Others | |||
Schedule Of Investments | |||
Equity method investments | ¥ 8,495,562 | $ 1,231,741 | ¥ 10,787,859 |
INVESTMENTS - Fair value of unr
INVESTMENTS - Fair value of unrealized and realized gains and losses of equity securities with readily determinable fair values (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
INVESTMENTS | ||||
Total net (losses) gains recognized | ¥ (15,126,672) | $ (2,193,161) | ¥ 15,623,340 | ¥ (4,501,222) |
Less: net realized gains on equity securities sold | 0 | 0 | 14,058,448 | 4,746,032 |
Net unrealized (losses) recognized on equity securities held | ¥ (15,126,672) | $ (2,193,161) | ¥ 1,564,892 | ¥ (9,247,254) |
INVESTMENTS - Equity securities
INVESTMENTS - Equity securities without readily determinable fair values (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
INVESTMENTS | |||
Initial cost | ¥ 51,523,212 | $ 7,470,164 | ¥ 3,523,212 |
Cumulative unrealized gains | 302,931 | 43,921 | 2,710,043 |
Cumulative unrealized losses (including impairment) | (42,000,000) | (6,089,428) | |
Total carrying value | ¥ 9,826,143 | $ 1,424,657 | ¥ 6,233,255 |
INVESTMENTS - Equity Securiti_2
INVESTMENTS - Equity Securities Without Readily Determinable Fair Values (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
INVESTMENTS | |||
Investments in wealth management products | ¥ 156,031,572 | $ 22,622,451 | ¥ 147,458,675 |
Available-for-sale debt securities of Yibon | |||
Amortized cost | 103,701,474 | 103,701,474 | |
Gross unrecognized holding gains | 2,791,663 | 2,791,663 | |
Gross unrecognized holding losses | (2,786,931) | ||
Available-for-sale debt investment, fair value | ¥ 103,706,206 | $ 15,035,986 | ¥ 106,493,137 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Schedule Of Investments | ||||||
Equity securities without readily determinable fair values | ¥ 9,826,143 | ¥ 6,233,255 | $ 1,424,657 | |||
Proceeds from disposal of equity method investments | ¥ 6,380,000 | |||||
Fair value change recognized in the other comprehensive loss | ¥ 2,786,931 | $ 404,067 | ¥ (2,791,663) | |||
Yibon | ||||||
Schedule Of Investments | ||||||
Equity securities without readily determinable fair values, percentage | 30% | |||||
Payment to acquire, equity securities without readily determinable fair values | ¥ 103,701,474 | |||||
Equity interest held by holders of investee to be exchanged into shares of investor | 70% |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Other Assets [Line Items] | ||||
Current | ¥ 92,851,350 | $ 13,462,181 | ¥ 142,737,163 | |
Non-current | 94,606,582 | 13,716,665 | 329,366,340 | |
Less: impairment provision | (192,305,859) | (27,881,729) | ||
Receivable from on-line payment platforms | ||||
Other Assets [Line Items] | ||||
Current | 27,079,159 | 3,926,109 | 53,983,324 | |
Acquisition Deposits | ||||
Other Assets [Line Items] | ||||
Non-current | 804,329 | 116,617 | 6,650,200 | |
Rental Deposit | ||||
Other Assets [Line Items] | ||||
Non-current | 40,016,200 | 5,801,804 | 56,962,580 | |
Interest Receivable | ||||
Other Assets [Line Items] | ||||
Current | 4,944,657 | 716,908 | 49,347,369 | |
Non-current | 8,048,083 | 1,166,862 | 5,737,675 | |
Deposits | ||||
Other Assets [Line Items] | ||||
Current | 7,974,326 | 1,156,169 | 11,168,379 | |
Advance to suppliers | ||||
Other Assets [Line Items] | ||||
Current | 2,724,889 | 395,071 | 5,206,428 | |
Returnable Consideration from the Acquisition of Urban Hotel Group | ||||
Other Assets [Line Items] | ||||
Non-current | 5,385,583 | |||
Purchase and rental deposits for buildings | ||||
Other Assets [Line Items] | ||||
Non-current | 192,305,859 | 27,881,729 | 197,723,649 | |
VAT recoverable | ||||
Other Assets [Line Items] | ||||
Current | 5,625,956 | 815,687 | 5,009,469 | |
Non-current | 11,101,867 | 1,609,619 | 10,774,251 | |
Others | ||||
Other Assets [Line Items] | ||||
Current | 44,502,363 | 6,452,237 | 18,022,194 | |
Non-current | 34,636,103 | $ 5,021,763 | ¥ 46,132,402 | |
Less: provision | ||||
Other Assets [Line Items] | ||||
Provision | ¥ 192,305,859 | $ 27,881,279 |
BANK LOANS - Short-term bank lo
BANK LOANS - Short-term bank loans (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
BANK LOANS | |||
Short-term bank loans | ¥ 99,800,000 | $ 14,469,640 | ¥ 356,000,000 |
Weighted average interest rates | 4.10% | 4.10% | 4.42% |
BANK LOANS - Long term bank loa
BANK LOANS - Long term bank loans (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Secured loan agreement with Shanghai Pudong Development Bank | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | ¥ 152,000,000 | ||
Debt instrument, interest rate | 4% | ||
Time deposits collateralized, short-term investments | ¥ 30,000,000 | ||
Time deposits collateralized, long-term investments | 130,000,000 | ||
Secured loan agreement with Bank of DaLian | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | ¥ 200,000,000 | ||
Debt instrument, interest rate | 5% | ||
Carrying amount | ¥ 270,646,005 | $ 39,239,982 |
BANK LOANS - Schedule of Princi
BANK LOANS - Schedule of Principal Payments on Long-Term Borrowings (Details) - Dec. 31, 2022 | CNY (¥) | USD ($) |
Principal Payments on Long-Term Borrowings | ||
2023 | ¥ 141,800,000 | $ 20,559,067 |
2024 | 160,000,000 | 23,197,819 |
Total | ¥ 301,800,000 | $ 43,756,886 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Payable to franchisees | ¥ 204,789,935 | $ 29,691,750 | ¥ 155,853,992 |
Business taxes and related tax surcharge | 115,813,719 | 16,791,411 | 111,076,878 |
Accrued rental | 27,957,242 | ||
Construction payable | 15,587,528 | 2,259,979 | 13,888,585 |
Deposits payable | 19,652,737 | 2,849,379 | 17,269,154 |
Payable for business combination and asset acquisitions | 13,342,676 | 1,934,506 | 15,342,675 |
Accrued utilities | 3,355,489 | 486,500 | 1,177,631 |
Others | 27,512,224 | 3,988,897 | 38,715,905 |
Total | ¥ 400,054,308 | $ 58,002,422 | ¥ 381,282,062 |
OTHER LONG-TERM LIABILITIES - D
OTHER LONG-TERM LIABILITIES - Deposits (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other Long Term Liabilities | |||
Other Long Term Liabilities [Line Items] | |||
Deposits from franchisees | ¥ 114,874,876 | $ 16,655,291 | ¥ 118,803,438 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Common Class A | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 39.30% |
Common Class B | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 60.70% |
Number of Class A ordinary shares that each share is convertible into | 1 |
HOTEL OPERATING COSTS - Schedul
HOTEL OPERATING COSTS - Schedule of Hotel Operating Costs (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
HOTEL OPERATING COSTS | ||||
Rental | ¥ 224,536,299 | $ 32,554,703 | ¥ 235,568,383 | ¥ 118,295,183 |
Utilities | 27,877,272 | 4,041,825 | 25,782,913 | 15,372,385 |
Personnel cost | 74,280,671 | 10,769,685 | 82,114,394 | 46,941,757 |
Depreciation and amortization | 92,797,895 | 13,454,430 | 80,575,644 | 53,850,494 |
Consumable, food and beverage | 41,281,830 | 5,985,302 | 69,495,702 | 43,257,796 |
Costs of hotel manager of franchised-and-managed hotels | 107,852,170 | 15,637,095 | 114,779,305 | 91,664,745 |
Other costs of franchised-and-managed hotels | 14,340,427 | 2,079,166 | 26,123,578 | 22,985,917 |
Others | 11,052,758 | 1,602,500 | 16,936,986 | 9,291,029 |
Total | ¥ 594,019,322 | $ 86,124,706 | ¥ 651,376,905 | ¥ 401,659,306 |
SHARE BASED COMPENSATION - Addi
SHARE BASED COMPENSATION - Additional Information (Details) - 2018 Share Incentive Plan | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2018 shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 CNY (¥) $ / shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum life of option | 6 years | ||||||
Number of stock options granted | shares | 10,000 | 10,000 | |||||
Cash used to settle related share-based compensation | ¥ | ¥ 0 | ||||||
Weighted-average grant date fair value | $ / shares | $ 1.34 | $ 2.42 | |||||
Aggregate grant date fair value of the outstanding options | 35,706,209 | ¥ 34,994,421 | $ 34,994,421 | ¥ 35,828,331 | $ 5,176,914 | ||
Fair value of share options vested | 8,998,734 | $ 1,304,694 | ¥ 8,319,569 | 8,610,259 | |||
Unrecognized compensation expense related to unvested options, net | ¥ 39,537 | $ 5,732 | |||||
Weighted-average period | 5 months 1 day | 5 months 1 day | |||||
Common Class A | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of authorized shares purchased by participants | shares | 9,000,000 | ||||||
General And Administrative Expenses | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation expense | ¥ | ¥ 2,464,763 | ¥ 232,558 | |||||
Share-based compensation expense reversed | ¥ 62,356 | $ 9,041 |
SHARE BASED COMPENSATION - Sche
SHARE BASED COMPENSATION - Schedule of Assumptions Used to Estimate Fair Value of Share Options (Details) - 2018 Share Incentive Plan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.35% | 0.92% |
Volatility | 39% | 40% |
Dividend yield | 2.50% | 2.50% |
Life of option | 6 years | 6 years |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of Share Option Activity Under Option Plans (Details) - 2018 Share Incentive Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options, Beginning balance | 992,500 | |
Number of options, Granted | 10,000 | |
Number of options, Forfeited | (62,000) | |
Number of options, Ending balance | 940,500 | 992,500 |
Number of options, Vested and expected to vest | 940,500 | |
Number of options, Exercisable | 932,250 | |
Weighted average exercise price, Beginning balance | $ 12.27 | |
Weighted average exercise price, Granted | 14 | |
Weighted average exercise price, Forfeited | 12.84 | |
Weighted average exercise price, Ending balance | 12.26 | $ 12.27 |
Weighted average exercise price, Vested and expected to vest | 12.26 | |
Weighted average exercise price, Exercisable | $ 12.22 | |
Weighted average remaining contractual life, Outstanding | 1 year 2 months 4 days | 2 years 1 month 20 days |
Weighted average remaining contractual life, Granted | 6 years | |
Weighted average remaining contractual life, Vested and expected to vest | 1 year 2 months 4 days | |
Weighted average remaining contractual life, Exercisable | 1 year 2 months 4 days |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 | Dec. 31, 2022 USD ($) | |
Income Taxes [Line Items] | |||||
Statutory tax rate | 25% | 25% | 25% | 25% | |
Preferential income tax rate | 15% | 15% | |||
Withholding tax rate | 10% | 10% | |||
Tax loss carryforwards | ¥ 256,766,146 | $ 37,227,592 | |||
Withholding income tax on dividends distributed to holding company outside of China | 10% | 10% | |||
PRC withholding tax liability unrecognized | ¥ 44,514,842 | 6,454,045 | |||
Amount of interest expenses reversed due to lapse of statute of limitation | ¥ 26,980,981 | $ 3,911,875 | |||
Earliest Tax Year | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration date | 2022 | 2022 | |||
Latest Tax Year | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, expiration date | 2026 | 2026 | |||
Shanghai Evergreen Technology Co., Ltd. | |||||
Income Taxes [Line Items] | |||||
Preferential income tax rate | 15% | 15% | |||
Shanghai Evergreen Technology Co., Ltd. | Earliest Tax Year | |||||
Income Taxes [Line Items] | |||||
Preferential Income Tax Rate Period | 2020 | 2020 | 2017 | ||
Shanghai Evergreen Technology Co., Ltd. | Latest Tax Year | |||||
Income Taxes [Line Items] | |||||
Preferential Income Tax Rate Period | 2022 | 2022 | 2019 | ||
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | |||||
Income Taxes [Line Items] | |||||
Preferential income tax rate | 15% | 15% | |||
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | Earliest Tax Year | |||||
Income Taxes [Line Items] | |||||
Preferential Income Tax Rate Period | 2020 | 2020 | |||
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | Latest Tax Year | |||||
Income Taxes [Line Items] | |||||
Preferential Income Tax Rate Period | 2022 | 2022 | |||
Inland Revenue, Hong Kong | GreenTree Hotels (Hong Kong), Limited. | |||||
Income Taxes [Line Items] | |||||
Statutory tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |
PRC Subsidiaries | |||||
Income Taxes [Line Items] | |||||
Undistributed earnings of Groups PRC subsidiaries | ¥ 445,148,415 | 64,540,453 | |||
Uncertain tax positions | 246,635,312 | 35,758,759 | |||
Interest expense | 39,943,119 | $ 5,791,208 | |||
Accumulated interest expense | ¥ 102,923,789 | $ 14,922,547 | |||
Accumulated tax penalty recorded | ¥ 0 |
INCOME TAXES - Summary of Curre
INCOME TAXES - Summary of Current and Deferred Components of Income Tax Expense (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Current tax | ¥ 80,209,774 | $ 11,629,324 | ¥ 105,353,756 | ¥ 122,931,256 |
Deferred tax | (125,802,192) | (18,239,603) | 3,535,126 | (12,472,054) |
Total | ¥ (45,592,418) | $ (6,610,279) | ¥ 108,888,882 | ¥ 110,459,202 |
INCOME TAXES - Reconciliation B
INCOME TAXES - Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
PRC statutory tax rate | 25% | 25% | 25% |
Withholding tax on the PRC earnings distribution | 9% | 10% | |
Effect of international rate difference | (10.00%) | 1% | 1% |
Effect of preferential tax rate | 1% | (7.00%) | |
Tax effect of expenses that are not deductible in determining taxable profit | (7.00%) | 6% | 4% |
Valuation Allowance | (8.00%) | 14% | 1% |
Effective tax rate | 10% | 49% | 31% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | ¥ 64,191,537 | $ 9,306,898 | ¥ 53,089,828 |
Deferred revenue | 91,552,823 | 13,273,912 | 115,049,834 |
Deferred rent | 17,692,412 | ||
Lease liability | 414,797,817 | 60,140,030 | |
Bad debt expenses | 79,570,368 | 11,536,619 | 30,328,801 |
Accrued expenses | 16,350,750 | 2,370,636 | 17,687,519 |
Unrealized losses from equity securities | 717,944 | 104,092 | 7,534,182 |
Impairment of Long-lived assets and other assets | 53,054,078 | 7,692,118 | |
Valuation allowance | (76,326,389) | (11,066,286) | (59,426,713) |
Total deferred tax assets | 643,908,928 | 93,358,019 | 181,955,863 |
Deferred tax liabilities: | |||
Depreciation of property and equipment | (7,765,478) | (1,125,888) | (6,099,754) |
Unrealized gains from equity securities | (5,360,418) | (777,188) | (880,803) |
Intangible assets arising from acquisition | (52,570,078) | (7,621,945) | (176,681,292) |
Withholding tax on PRC earnings to be distributed | (20,730,212) | (3,005,598) | (64,929,920) |
Right-of-use assets | (386,025,806) | (55,968,481) | |
Total deferred tax liabilities | (472,451,992) | (68,499,100) | (248,591,769) |
Net deferred tax (liabilities) assets | ¥ 171,456,936 | $ 24,858,919 | ¥ 66,635,906 |
INCOME TAXES - Summary of Unrec
INCOME TAXES - Summary of Unrecognized Tax Benefit (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | ||
Unrecognized tax benefits beginning balance | ¥ 238,858,630 | ¥ 202,915,367 |
Increases - tax positions in the current period | 25,680,473 | 74,057,733 |
Decreases - tax positions in prior period | (17,903,791) | (38,114,470) |
Unrecognized tax benefits - ending balance | ¥ 246,635,312 | ¥ 238,858,630 |
MAINLAND CHINA CONTRIBUTION P_2
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | ||||
Employee benefits | ¥ 45,051,494 | $ 6,531,853 | ¥ 36,617,173 | ¥ 25,666,575 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS - Additional Information (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |||
Statutory reserve funds | ¥ 78,286,662 | $ 11,350,499 | ¥ 77,453,118 |
Restricted net assets | ¥ 898,596,672 | $ 130,284,271 | ¥ 936,799,320 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Schedule of Related Party Transactions or Balances with the Group (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Alex S. Xu | |
Related Party Transaction | |
Related Party | Alex S. Xu |
Nature of the party | Individual |
Relationship with the Group | Founder and CEO |
Hui Xu | |
Related Party Transaction | |
Related Party | Hui Xu |
Nature of the party | Individual |
Relationship with the Group | Brother of Alex S. Xu |
Yan Zhang | |
Related Party Transaction | |
Related Party | Yan Zhang |
Nature of the party | Individual |
Relationship with the Group | Executive officer for catering management entities controlled by GTI |
Wen Qi | |
Related Party Transaction | |
Related Party | Wen Qi |
Nature of the party | Individual |
Relationship with the Group | Quality Control Manager |
GTI | |
Related Party Transaction | |
Related Party | GTI |
Nature of the party | Investment holding |
Relationship with the Group | Shareholder of the Group, controlled by Alex S. Xu |
Aotao | |
Related Party Transaction | |
Related Party | Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Getao | |
Related Party Transaction | |
Related Party | Getao Industrial (HK) Limited (“Getao”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Da Niang Group | |
Related Party Transaction | |
Related Party | Beifu HongKong Indutrial Co,Limited (“Beifu HK”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Beifu HK | |
Related Party Transaction | |
Related Party | Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
JYHM | |
Related Party Transaction | |
Related Party | Bellagio Restaurant Management Group (“Bellagio”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Bellagio | |
Related Party Transaction | |
Related Party | Napa Infinity Winery (Shanghai) Inc. (“Napa”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Napa | |
Related Party Transaction | |
Related Party | Yibon |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Yibon | |
Related Party Transaction | |
Related Party | Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) * |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Hanyuan | |
Related Party Transaction | |
Related Party | Woyaojiu Information Technology (Shanghai) Co.,Ltd. (“Woyaojiu”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by Hui Xu |
Woyaojiu | |
Related Party Transaction | |
Related Party | Shanxi Yueyuanbaili Hotel Management Co., Ltd. (“Yueyuan”) |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Yueyuan | |
Related Party Transaction | |
Related Party | Apex(Weihai) Industrial Co., Ltd (“Apex”) |
Nature of the party | Construction |
Relationship with the Group | Controlled by Hui Xu |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Schedule of Related Party Balances (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current: | |||
Due from related parties | ¥ 437,165,271 | $ 63,383,006 | ¥ 310,419,860 |
Non-Current: | |||
Due from related parties | 112,360,000 | 16,290,669 | |
Due to related parties | |||
Due from Related Parties, Noncurrent | 112,360,000 | 16,290,669 | |
Due to related parties | 13,812,954 | 2,002,690 | 9,530,627 |
GTI | |||
Current: | |||
Due from related parties | 326,440,000 | 47,329,351 | 206,256,382 |
Aotao | |||
Current: | |||
Due from related parties | 65,206,135 | 9,454,000 | 65,206,135 |
Due to related parties | |||
Due to related parties | 5,550,000 | 804,674 | |
Beifu HK | |||
Current: | |||
Due from related parties | 28,278,520 | 4,100,000 | 26,127,660 |
Yibon | |||
Current: | |||
Due from related parties | 7,039,315 | 1,020,605 | 8,330,198 |
Due to related parties | |||
Due to related parties | 7,238,237 | 1,049,446 | 6,602,643 |
Hanyuan | |||
Current: | |||
Due from related parties | 6,643,508 | 963,218 | 3,406,100 |
Napa | |||
Current: | |||
Due from related parties | 587,246 | 85,143 | 500,000 |
Due to related parties | |||
Due to related parties | 536,857 | 77,837 | 2,868,685 |
JYHM | |||
Current: | |||
Due from related parties | 1,739,578 | 252,215 | 481,227 |
Due to related parties | |||
Due to related parties | 27,992 | 4,058 | 27,992 |
Getao | |||
Current: | |||
Due from related parties | 121,391 | 17,600 | 112,158 |
Yueyuan | |||
Current: | |||
Due from related parties | 608,394 | 88,209 | |
Da Niang Group | |||
Current: | |||
Due from related parties | 500,184 | 72,520 | |
Due to related parties | |||
Due to related parties | 459,868 | 66,675 | ¥ 31,307 |
Woyaojiu | |||
Current: | |||
Due from related parties | ¥ 1,000 | $ 145 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Details) | 12 Months Ended | |||
May 16, 2022 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 | Dec. 31, 2022 USD ($) | |
Related Party Transaction | ||||
Amounts due from a related party | ¥ 112,360,000 | $ 16,290,669 | ||
Bellagio Cafe Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Related Party Transaction | ||||
Percentage of equity interests disposed | 83.90% | |||
Yibon | ||||
Related Party Transaction | ||||
Interest rate percentage | 6% | 6% | ||
GTI | Da Niang Dumpling Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Related Party Transaction | ||||
Percentage of equity interests disposed | 100% | |||
Hanyuan | ||||
Related Party Transaction | ||||
Percentage of equity interests disposed | 5% | |||
Apex | ||||
Related Party Transaction | ||||
Amounts due from a related party | ¥ 110,000,000 | $ 15,948,501 | ||
Qiwen | ||||
Related Party Transaction | ||||
Interest rate on loans receivable | 7.90% | |||
Loans receivable | ¥ 2,360,000 | $ 342,168 |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND BALANCES - Schedule of Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Related Party Transaction | |||||
Loans to related parties | ¥ (168,695,802) | $ (24,458,592) | ¥ (604,618,942) | ¥ (528,356,500) | |
Sublease revenue from related party | 61,578,703 | 8,928,073 | 74,689,226 | 77,676,665 | |
GTI | |||||
Related Party Transaction | |||||
Loans to related parties | (162,490,000) | (23,558,835) | (206,256,382) | ||
Repayment of loan from related party | 42,305,000 | 6,133,648 | 8,424,629 | ||
Aotao | |||||
Related Party Transaction | |||||
Loans to related parties | (186,051,400) | (479,356,500) | |||
Repayment of loan from related party | (121,000,000) | (499,421,550) | |||
Advertising service from related party | (5,550,000) | (804,674) | (6,473,400) | (3,920,000) | |
Interest income from related party | 2,316,856 | ||||
Franchise management fee to related party | 49,648 | 41,867 | |||
Napa | |||||
Related Party Transaction | |||||
Purchase from related party | (413,690) | (2,547,178) | (2,059,566) | $ (59,979) | |
Hanyuan | |||||
Related Party Transaction | |||||
Loans to related parties | (3,237,408) | (469,380) | (3,406,100) | ||
Yibon | |||||
Related Party Transaction | |||||
Loans to related parties | (3,000,000) | (9,000,000) | |||
Repayment of loan from related party | 1,250,000 | 181,233 | 3,750,000 | ||
Interest income from related party | 12,333 | 1,788 | 544,352 | 18,667,117 | |
Franchise management fee to related party | 1,285,068 | 186,317 | 1,251,888 | 852,287 | |
Qiwen | |||||
Related Party Transaction | |||||
Loans to related parties | ¥ (2,360,000) | $ (342,168) | |||
Interest rate on loans receivable | 7.90% | 7.90% | |||
JYHM | |||||
Related Party Transaction | |||||
Purchase from related party | ¥ (20,754) | (667,751) | (40,000) | (3,009) | |
Sublease revenue from related party | 47,704 | $ 6,916 | 261,392 | 284,179 | |
Yueyuan | |||||
Related Party Transaction | |||||
Loans to related parties | (608,394) | $ (88,209) | |||
Bellagio | |||||
Related Party Transaction | |||||
Purchase from related party | ¥ 204,087 | 367,804 | $ 29,590 | ||
Beifu HK | |||||
Related Party Transaction | |||||
Loans to related parties | (169,511,160) | ||||
Repayment of loan from related party | 143,383,500 | ||||
Da Niang Group | |||||
Related Party Transaction | |||||
Loans to related parties | (39,800,000) | (40,000,000) | |||
Repayment of loan from related party | (39,800,000) | (40,000,000) | |||
Interest income from related party | 352,882 | ||||
Service purchased from related party | (221,389) | (724,045) | |||
Sublease revenue from related party | ¥ 27,000 | ¥ 36,000 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic and Diluted Earning Per Share (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net income(loss) - basic | ¥ (382,216,959) | $ (55,416,249) | ¥ 117,438,250 | ¥ 261,344,391 |
Net income(loss) - diluted | ¥ (382,216,959) | $ (55,416,249) | ¥ 117,438,250 | ¥ 261,344,391 |
Common Class A | ||||
Denominator: | ||||
Weighted average shares outstanding basic | 68,201,056 | 68,201,056 | 68,286,954 | 68,286,954 |
Weighted average shares outstanding diluted | 68,201,056 | 68,201,056 | 68,286,954 | 68,286,954 |
Allocation of undistributed earnings - basic and diluted: | ||||
Allocation of undistributed earnings(loss) - basic | ¥ (253,172,070) | $ (36,706,500) | ¥ 77,821,553 | ¥ 173,182,301 |
Allocation of undistributed earnings(loss) - diluted | ¥ (253,172,070) | $ (36,706,500) | ¥ 77,821,553 | ¥ 173,182,301 |
Basic and diluted earnings per share: | ||||
Basic earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Diluted earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Common Class B | ||||
Denominator: | ||||
Weighted average shares outstanding basic | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Weighted average shares outstanding diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Allocation of undistributed earnings - basic and diluted: | ||||
Allocation of undistributed earnings(loss) - basic | ¥ (129,044,888) | $ (18,709,750) | ¥ 39,616,697 | ¥ 88,162,090 |
Allocation of undistributed earnings(loss) - diluted | ¥ (129,044,888) | $ (18,709,750) | ¥ 39,616,697 | ¥ 88,162,090 |
Basic and diluted earnings per share: | ||||
Basic earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
Diluted earnings (loss) per share | (per share) | ¥ (3.71) | $ (0.54) | ¥ 1.14 | ¥ 2.54 |
EARNINGS (LOSS) PER SHARE - Add
EARNINGS (LOSS) PER SHARE - Additional Information (Details) | 1 Months Ended |
Nov. 30, 2022 shares | |
Urban | Common Class A | |
Earnings Per Share | |
Business acquisition, shares repurchase | 870,908 |
OTHER COMPREHENSIVE INCOME_( _3
OTHER COMPREHENSIVE INCOME/( LOSS) (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | ¥ 2,042,927,138 | |||
Net current-period other comprehensive loss | (14,148,803) | $ (2,051,384) | ¥ (3,705,740) | ¥ (19,714,207) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 1,488,887,969 | 215,868,464 | 2,042,927,138 | |
Foreign currency translation adjustments | ||||
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 39,089,244 | 45,586,647 | 65,300,854 | |
Net current-period other comprehensive loss | (11,361,872) | (6,497,403) | (19,714,207) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 27,727,372 | 4,020,091 | 39,089,244 | 45,586,647 |
Unrealized gains(losses) on available-for-sale investments | ||||
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 2,791,663 | |||
Net current-period other comprehensive loss | (2,786,931) | 2,791,663 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 4,732 | 685 | 2,791,663 | |
Total | ||||
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 41,880,907 | 45,586,647 | 65,300,854 | |
Net current-period other comprehensive loss | (14,148,803) | (3,705,740) | (19,714,207) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | ¥ 27,732,104 | $ 4,020,776 | ¥ 41,880,907 | ¥ 45,586,647 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 637,150,219 | $ 92,378,098 | ¥ 298,428,709 | ¥ 611,358,209 |
Investments in equity securities | 41,361,346 | 5,996,831 | 157,988,851 | |
Amounts due from related parties | 437,165,271 | 63,383,006 | 310,419,860 | |
Total current assets | 1,701,905,717 | 246,753,134 | 1,831,206,325 | |
Non-current assets: | ||||
Equity securities without readily determinable fair values | 9,826,143 | 1,424,657 | 6,233,255 | |
TOTAL ASSETS | 5,096,079,085 | 738,862,014 | 4,667,060,561 | |
Current liabilities: | ||||
Dividends payable | 40,999,458 | |||
Long-term bank loans, current portion | 141,800,000 | 20,559,067 | 50,200,000 | |
Short-term bank loans | 99,800,000 | 14,469,640 | 356,000,000 | |
Long-term bank loans | 301,800,000 | 43,756,886 | ||
Total current liabilities | 1,234,861,012 | 179,038,017 | 1,249,949,292 | |
Non-current liabilities: | ||||
Long-term bank loans, non-current portion | 160,000,000 | 23,197,819 | 301,800,000 | |
Other long-term liabilities | 120,196,036 | 17,426,787 | 132,046,925 | |
Total liabilities | 3,607,191,116 | 522,993,550 | 2,624,133,423 | |
Shareholders' equity: | ||||
Treasury Stock | 16,971,057 | 2,460,572 | ||
Additional paid-in capital | 1,151,321,950 | 166,925,992 | 1,151,384,306 | |
Retained earnings / (Accumulated losses) | (55,918,341) | (8,107,397) | 326,298,618 | |
Accumulated other comprehensive income | 27,732,104 | 4,020,776 | 41,880,907 | |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,444,285,936 | 209,401,777 | 1,857,685,111 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,096,079,085 | 738,862,014 | 4,667,060,561 | |
Common Class A | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 222,587,070 | 32,272,092 | 222,587,070 | |
Common Class B | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 115,534,210 | 16,750,886 | 115,534,210 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 15,788,863 | 2,289,170 | 22,609,979 | |
Investments in equity securities | 3,094,133 | 448,607 | 59,114,452 | |
Amounts due from subsidiaries | 122,364,821 | 17,741,232 | 113,057,771 | |
Amounts due from related parties | 348,019,981 | 50,458,154 | 202,502,545 | |
Total current assets | 489,267,798 | 70,937,163 | 397,284,747 | |
Non-current assets: | ||||
Investments in subsidiaries | 1,635,636,043 | 237,144,935 | 1,977,459,895 | |
Investments in equity securities | 33,408,446 | 4,843,769 | 39,852,428 | |
TOTAL ASSETS | 2,158,312,287 | 312,925,867 | 2,414,597,070 | |
Current liabilities: | ||||
Dividends payable | 40,999,458 | |||
Long-term bank loans, current portion | 121,800,000 | 17,659,340 | 30,200,000 | |
Amounts due to subsidiaries | 592,226,352 | 85,864,750 | 350,308,050 | |
Total current liabilities | 714,026,352 | 103,524,090 | 421,507,508 | |
Non-current liabilities: | ||||
Long-term bank loans, non-current portion | 121,800,000 | |||
Other long-term liabilities | 13,604,451 | |||
Total liabilities | 714,026,352 | 103,524,090 | 556,911,959 | |
Shareholders' equity: | ||||
Treasury Stock | (16,971,057) | (2,460,572) | ||
Additional paid-in capital | 1,151,321,950 | 166,925,992 | 1,151,384,306 | |
Retained earnings / (Accumulated losses) | (55,918,342) | (8,107,397) | 326,298,618 | |
Accumulated other comprehensive income | 27,732,104 | 4,020,776 | 41,880,907 | |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,444,285,935 | 209,401,777 | 1,857,685,111 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,158,312,287 | 312,925,867 | 2,414,597,070 | |
Parent Company | Common Class A | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 222,587,070 | 32,272,092 | 222,587,070 | |
Parent Company | Common Class B | ||||
Shareholders' equity: | ||||
Ordinary shares, value | ¥ 115,534,210 | $ 16,750,886 | ¥ 115,534,210 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | ||
Common stock, issued | 68,201,056 | 68,286,954 | ||
Common stock, outstanding | 68,201,056 | 68,286,954 | 68,286,954 | 67,416,046 |
Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | ||
Common stock, issued | 34,762,909 | 34,762,909 | ||
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Parent Company | Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | ||
Common stock, issued | 68,201,056 | 68,286,954 | ||
Common stock, outstanding | 68,201,056 | 68,286,954 | ||
Parent Company | Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | ||
Common stock, issued | 34,762,909 | 34,762,909 | ||
Common stock, outstanding | 34,762,909 | 34,762,909 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Condensed statements of operations | ||||
General and administrative expenses | ¥ (210,759,610) | $ (30,557,271) | ¥ (256,160,262) | ¥ (160,420,554) |
Other general expense | 461,597,460 | 66,925,340 | 99,886,003 | 3,000,000 |
Interest expense | (25,375,848) | (3,679,152) | (12,671,385) | (3,456,316) |
Share of profit (losses) in subsidiaries, net | (1,598,301) | (231,732) | 382,874 | 909,364 |
Net income(loss) | (415,066,472) | (60,178,982) | 113,676,839 | 244,702,736 |
Other comprehensive loss, net of tax - Foreign currency translation adjustments | (11,361,872) | (1,647,317) | (6,497,403) | (19,714,207) |
Comprehensive income/(loss) attributable to ordinary shareholders | (396,365,762) | (57,467,634) | 113,732,510 | 241,630,184 |
Parent Company | ||||
Condensed statements of operations | ||||
General and administrative expenses | (6,740,255) | (977,245) | (18,917,120) | (9,967,834) |
Other general expense | (13,944,926) | (2,021,824) | ||
Interest income | 1,924 | 279 | 173,316 | 8,173 |
Interest expense | (5,192,054) | (752,777) | ||
Other income | 22,765,816 | 3,300,733 | ||
Total net (losses) gains recognized | (76,105,482) | (11,034,258) | 11,519,174 | (11,392,623) |
Share of profit (losses) in subsidiaries, net | (303,001,982) | (43,931,158) | 124,662,880 | 282,696,675 |
Net income(loss) | (382,216,959) | (55,416,250) | 117,438,250 | 261,344,391 |
Other comprehensive loss, net of tax - Foreign currency translation adjustments | (11,361,872) | (1,647,317) | (6,497,403) | (19,714,207) |
Unrealized gains (losses) on available-for-sale investments | (2,786,931) | (404,067) | 2,791,663 | |
Comprehensive income/(loss) attributable to ordinary shareholders | ¥ (396,365,762) | $ (57,467,634) | ¥ 113,732,510 | ¥ 241,630,184 |
PARENT COMPANY ONLY CONDENSED_6
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Net cash provided by (used in) operating activities | ¥ 292,212,695 | $ 42,366,858 | ¥ 360,975,140 | ¥ 295,256,932 |
Net cash used in investing activities | 398,459,115 | 57,771,141 | (928,388,186) | (111,552,657) |
Net cash used in financing activities | (341,896,159) | (49,570,283) | 255,627,743 | 115,527,872 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 349,848,599 | 50,723,279 | (313,129,500) | 291,567,886 |
Cash and cash equivalents and restricted cash at the beginning of the year | 320,598,609 | 46,482,428 | 633,728,109 | |
Cash and cash equivalents and restricted cash at the end of the year | 670,447,208 | 97,205,707 | 320,598,609 | 633,728,109 |
Parent Company | ||||
Net cash provided by (used in) operating activities | 222,680,208 | 32,285,596 | (16,338,658) | 231,204,774 |
Net cash used in investing activities | (156,276,810) | (22,658,008) | (113,026,343) | (65,670,760) |
Net cash used in financing activities | (71,199,458) | (10,322,953) | (43,683,098) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,025,056) | (293,604) | 2,306,901 | 5,679,523 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (6,821,116) | (988,969) | (170,741,198) | 171,213,537 |
Cash and cash equivalents and restricted cash at the beginning of the year | 22,609,979 | 3,278,139 | 193,351,177 | 22,137,640 |
Cash and cash equivalents and restricted cash at the end of the year | ¥ 15,788,863 | $ 2,289,170 | ¥ 22,609,979 | ¥ 193,351,177 |
DISPOSITION AND DECONSOLIDATION
DISPOSITION AND DECONSOLIDATION (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
DISPOSITION AND DECONSOLIDATION | ||||||||||
Impairment loss of goodwill | ¥ 91,236,480 | $ 13,228,046 | ¥ 0 | |||||||
Impairment of long-lived assets/property and equipment | 0 | ¥ 0 | ||||||||
Impairment of equity securities without readily determinable fair values | 9,826,143 | 6,233,255 | $ 1,424,657 | |||||||
Initial cost basis | 9,826,143 | ¥ 6,233,255 | $ 1,424,657 | |||||||
Impairment losses of trademark with indefinite life | ¥ 12,000,345 | $ 1,739,886 | 12,000,345 | 1,739,886 | ||||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other General Expense | Other General Expense | ||||||||
Argyle Hotel Management (Beijing) Co., Ltd [Member] | Deconsolidation | ||||||||||
DISPOSITION AND DECONSOLIDATION | ||||||||||
Impairment loss of goodwill | ¥ 42,198,903 | $ 6,118,266 | ¥ 42,000,000 | $ 6,089,428 | ||||||
Impairment of equity securities without readily determinable fair values | 48,000,000 | $ 6,959,346 | ||||||||
Loss on deconsolidation | 13,944,925 | 2,021,824 | ||||||||
Impairment losses of trademark with indefinite life | ¥ 17,054,641 | $ 2,472,691 |
INVESTMENTS - Short-Term Inve_2
INVESTMENTS - Short-Term Investments (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
INVESTMENTS | |||
Short-term investments | ¥ 186,031,572 | $ 26,972,043 | ¥ 557,458,675 |