Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Entity Registrant Name | GreenTree Hospitality Group Ltd. |
Entity Central Index Key | 0001724755 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2020 |
Document Type | 20-F |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
ICFR Auditor Attestation Flag | true |
Entity Ex Transition Period | false |
Entity Interactive Data Current | Yes |
Entity File Number | 001-38425 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 2451 Hongqiao Road |
Entity Address, Address Line Two | Changning District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200335 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 2451 Hongqiao Road |
Entity Address, Address Line Two | Changning District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200335 |
Contact Personnel Name | Dr. Yiping Yang |
City Area Code | +86 |
Local Phone Number | 21-3617-4886 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 34,762,909 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing one Class A ordinary share |
Trading Symbol | GHG |
Security Exchange Name | NYSE |
Common Class A | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 68,286,954 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.50 per share * |
No Trading Symbol Flag | true |
STATEMENTS OF CONSOLIDATED BALA
STATEMENTS OF CONSOLIDATED BALANCE SHEETS | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 611,358,209 | $ 93,694,745 | ¥ 319,847,701 |
Short-term investments | 301,983,182 | 46,280,947 | 437,279,026 |
Investments in equity securities | 242,378,696 | 37,146,160 | 207,007,926 |
Accounts receivable, net of allowance for doubtful accounts of RMB22,420,168 and RMB12,489,562 (USD1,914,109) as of December 31, 2019 and 2020 respectively | 101,511,057 | 15,557,250 | 99,701,226 |
Amounts due from related parties | 9,770,871 | 1,497,451 | 31,739,731 |
Prepaid rent | 13,597,867 | 2,083,964 | 18,794,665 |
Inventories | 3,804,680 | 583,093 | 2,537,717 |
Other current assets | 77,649,794 | 11,900,352 | 66,004,017 |
Loans receivable, net | 222,244,629 | 34,060,480 | 82,312,201 |
Total current assets | 1,584,298,985 | 242,804,442 | 1,265,224,210 |
Restricted cash | 22,369,900 | 3,428,337 | 22,312,522 |
Long-term time deposits | 490,000,000 | 75,095,785 | 560,000,000 |
Loans receivable, net | 145,703,988 | 22,330,113 | 121,563,742 |
Property and equipment, net | 668,605,661 | 102,468,301 | 614,936,505 |
Intangible assets, net | 491,513,073 | 75,327,674 | 496,280,316 |
Goodwill | 100,231,487 | 15,361,147 | 100,078,236 |
Long-term investments | 369,525,917 | 56,632,324 | 398,637,701 |
Other assets | 66,635,394 | 10,212,322 | 76,957,992 |
Deferred tax assets | 156,070,112 | 23,918,791 | 160,488,193 |
TOTAL ASSETS | 4,094,954,517 | 627,579,236 | 3,816,479,417 |
Current liabilities: | |||
Short-term bank loans | 150,000,000 | 22,988,506 | 60,000,000 |
Accounts payable | 19,606,344 | 3,004,804 | 15,296,042 |
Advance from customers | 34,305,508 | 5,257,549 | 40,105,627 |
Amounts due to related parties | 3,198,253 | 490,154 | 3,518,031 |
Salary and welfare payable | 51,567,587 | 7,903,078 | 42,650,527 |
Deferred rent | 1,356,132 | 207,836 | 5,179,664 |
Deferred revenue | 221,314,997 | 33,918,007 | 231,925,272 |
Accrued expenses and other current liabilities | 300,696,673 | 46,083,782 | 302,448,361 |
Income tax payable | 87,483,970 | 13,407,505 | 93,909,177 |
Total current liabilities | 869,529,464 | 133,261,221 | 795,032,701 |
Deferred rent | 28,642,973 | 4,389,728 | 17,821,686 |
Deferred revenue | 361,901,369 | 55,463,811 | 410,807,248 |
Other long-term liabilities | 115,862,713 | 17,756,737 | 118,112,511 |
Deferred tax liabilities | 178,413,413 | 27,343,052 | 195,303,547 |
Unrecognized tax benefits | 290,679,902 | 44,548,644 | 261,641,717 |
Total liabilities | 1,845,029,834 | 282,763,193 | 1,798,719,410 |
Shareholders’ equity: | |||
Additional paid-in capital | 1,149,280,404 | 176,134,928 | 1,152,108,217 |
Retained earnings | 570,042,924 | 87,362,900 | 308,698,533 |
Accumulated other comprehensive income | 45,586,647 | 6,986,460 | 65,300,854 |
Total GreenTree Hospitality Group Ltd. shareholders’ equity | 2,103,031,255 | 322,303,641 | 1,861,168,513 |
Noncontrolling interests | 146,893,428 | 22,512,402 | 156,591,494 |
Total shareholders’ equity | 2,249,924,683 | 344,816,043 | 2,017,760,007 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 4,094,954,517 | 627,579,236 | 3,816,479,417 |
Common Class A | |||
Shareholders’ equity: | |||
Ordinary shares, value | 222,587,070 | 34,112,961 | 219,526,699 |
Common Class B | |||
Shareholders’ equity: | |||
Ordinary shares, value | ¥ 115,534,210 | $ 17,706,392 | ¥ 115,534,210 |
STATEMENTS OF CONSOLIDATED BA_2
STATEMENTS OF CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares |
Allowance for doubtful accounts receivable | ¥ 12,489,562 | $ 1,914,109 | ¥ 22,420,168 |
Common Class A | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, issued | 68,286,954 | 68,286,954 | 67,416,046 |
Common stock, outstanding | 68,286,954 | 68,286,954 | 67,416,046 |
Common Class B | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 |
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | ¥ 930,010,096 | $ 142,530,283 | ¥ 1,091,793,135 | ¥ 905,614,669 |
Operating costs and expenses: | ||||
Hotel operating costs (including purchase from related parties of nil, RMB 357,539 and RMB764,045 (USD117,095) for the years ended December 31, 2018, 2019 and 2020, respectively) | (392,522,306) | (60,156,675) | (338,826,479) | (274,419,263) |
Selling and marketing expenses (including service from a related party of nil, RMB24,941and RMB6,021,433 (USD922,825) for the years ended December 31, 2018, 2019 and 2020, respectively) | (75,347,166) | (11,547,458) | (84,970,401) | (47,397,767) |
General and administrative expenses (including purchase from a related party of nil, RMB3,576,659 and nil for the years ended December 31, 2018, 2019 and 2020, respectively) | (172,557,554) | (26,445,602) | (184,989,324) | (95,261,152) |
Other operating expenses | (1,731,405) | (265,350) | (3,286,652) | (5,946,226) |
Total operating costs and expenses | (642,158,431) | (98,415,085) | (612,072,856) | (423,024,408) |
Other operating income | 31,399,552 | 4,812,192 | 24,832,269 | 22,570,806 |
Income from operations | 319,251,217 | 48,927,390 | 504,552,548 | 505,161,067 |
Interest income and other, net (including interest income from related parties of RMB263,366, RMB3,100,049 and RMB21,336,855 (USD3,270,016) for the years ended December 31, 2018, 2019 and 2020, respectively) | 72,934,212 | 11,177,657 | 66,088,425 | 49,659,928 |
Interest expenses | (3,456,316) | (529,704) | (2,505,904) | (541,876) |
(Losses and impairment) Gains on equity securities held | (36,773,521) | (5,635,789) | 55,253,744 | (57,774,952) |
Other income, net | 2,296,981 | 352,028 | 2,690,742 | 35,735,374 |
Income before income taxes and share of (losses) gains in equity method investments | 354,252,573 | 54,291,582 | 626,079,555 | 532,239,541 |
Income tax expense | (110,459,202) | (16,928,613) | (189,567,817) | (152,718,668) |
Income before share of (losses) gains in equity method investments | 243,793,371 | 37,362,969 | 436,511,738 | 379,520,873 |
Share of (losses) gains in equity method investments, net of tax | 909,365 | 139,366 | 1,262,431 | (8,300,584) |
Net income | 244,702,736 | 37,502,335 | 437,774,169 | 371,220,289 |
Net loss attributable to noncontrolling interests | 16,641,655 | 2,550,445 | 4,944,094 | 490,930 |
Net income attributable to ordinary shareholders | 261,344,391 | 40,052,780 | 442,718,263 | 371,711,219 |
Other comprehensive income, net of tax | ||||
-Foreign currency translation adjustments | (19,714,207) | (3,021,335) | 2,933,162 | 66,453,841 |
Other comprehensive income (loss), net of tax | (19,714,207) | (3,021,335) | 2,933,162 | 66,453,841 |
Comprehensive income, net of tax | 224,988,529 | 34,481,000 | 440,707,331 | 437,674,130 |
Comprehensive loss attributable to noncontrolling interests | 16,641,655 | 2,550,445 | 4,944,094 | 490,930 |
Comprehensive income attributable to ordinary shareholders | ¥ 241,630,184 | $ 37,031,445 | ¥ 445,651,425 | ¥ 438,165,060 |
Common Class A | ||||
Earnings per share | ||||
Basic and diluted earnings per share | (per share) | ¥ 2.54 | $ 0.39 | ¥ 4.34 | ¥ 3.75 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 68,286,954 | 68,286,954 | 67,315,727 | 62,860,578 |
Common Class B | ||||
Earnings per share | ||||
Basic and diluted earnings per share | (per share) | ¥ 2.54 | $ 0.39 | ¥ 4.34 | ¥ 3.75 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 34,762,909 | 34,762,909 | 34,762,909 | 36,288,343 |
Leased And Operated Hotels | ||||
Revenues: | ||||
Total revenues | ¥ 227,074,041 | $ 34,800,619 | ¥ 253,420,676 | ¥ 212,671,930 |
Franchised And Managed Hotels | ||||
Revenues: | ||||
Total revenues | 677,480,818 | 103,828,478 | 831,340,340 | ¥ 692,942,739 |
Others | ||||
Revenues: | ||||
Total revenues | ¥ 25,455,237 | $ 3,901,186 | ¥ 7,032,119 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Due from related parties | ¥ 21,336,855 | ¥ 3,100,049 | ¥ 263,366 | $ 3,270,016 | |
Hotel Operating Costs | |||||
Due to related parties | 764,045 | 357,539 | 117,095 | ||
Selling And Marketing Expenses | |||||
Due to related parties | 6,021,433 | 24,941 | $ 922,825 | ||
General And Administrative Expenses | |||||
Due to related parties | 3,576,659 | ||||
Leased And Operated Hotels | |||||
Revenue from related parties | 320,179 | $ 49,070 | 385,355 | ||
Franchised And Managed Hotels | |||||
Revenue from related parties | ¥ 852,287 | $ 130,619 | ¥ 2,358,491 | ¥ 434,346 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | CNY (¥) | USD ($) | Initial Public OfferingCNY (¥) | Common Class ACNY (¥)shares | Common Class AUSD ($)shares | Common Class AInitial Public OfferingCNY (¥)shares | Common Class BCNY (¥)shares | Common Class BUSD ($)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Additional Paid-in CapitalInitial Public OfferingCNY (¥) | Retained EarningsCNY (¥) | Retained EarningsUSD ($) | AOCI Attributable to ParentCNY (¥) | AOCI Attributable to ParentUSD ($) | ParentCNY (¥) | ParentUSD ($) | ParentInitial Public OfferingCNY (¥) | Noncontrolling InterestCNY (¥) | Noncontrolling InterestUSD ($) |
Balance at Dec. 31, 2017 | ¥ 551,217,621 | ¥ 160,189,926 | ¥ 140,696,841 | ¥ 212,309,734 | ¥ 41,747,149 | ¥ (4,086,149) | ¥ 550,857,501 | ¥ 360,120 | ||||||||||||
Balance, shares at Dec. 31, 2017 | shares | 48,635,252 | 48,635,252 | 42,716,957 | 42,716,957 | ||||||||||||||||
Redesignation Class B ordinary shares as ClassA ordinary shares | ¥ 25,162,631 | ¥ (25,162,631) | ||||||||||||||||||
Redesignation Class B ordinary shares as Class A ordinary shares, shares | shares | 7,954,048 | 7,954,048 | (7,954,048) | (7,954,048) | ||||||||||||||||
Distribution to the shareholders | (160,840,918) | (160,840,918) | (160,840,918) | |||||||||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of issuance cost | ¥ 806,677,429 | ¥ 32,069,310 | ¥ 774,608,119 | ¥ 806,677,429 | ||||||||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of issuance cost, shares | shares | 10,200,000 | |||||||||||||||||||
Acquisitions of subsidiaries and business | 8,509,857 | 8,509,857 | ||||||||||||||||||
Net income (loss) | 371,220,289 | 371,711,219 | 371,711,219 | (490,930) | ||||||||||||||||
Foreign currency translation adjustments | 66,453,841 | 66,453,841 | 66,453,841 | |||||||||||||||||
Share-based compensation | 16,108,950 | 16,108,950 | 16,108,950 | |||||||||||||||||
Balance at Dec. 31, 2018 | 1,659,347,069 | ¥ 217,421,867 | ¥ 115,534,210 | 1,003,026,803 | 252,617,450 | 62,367,692 | 1,650,968,022 | 8,379,047 | ||||||||||||
Balance, shares at Dec. 31, 2018 | shares | 66,789,300 | 66,789,300 | 34,762,909 | 34,762,909 | ||||||||||||||||
Distribution to the shareholders | (386,637,180) | (386,637,180) | (386,637,180) | |||||||||||||||||
Capital contribution from noncontrolling interest holders | 14,719,481 | 14,719,481 | ||||||||||||||||||
Acquisitions of subsidiaries and business | 263,132,911 | ¥ 2,104,832 | 122,591,019 | 124,695,851 | 138,437,060 | |||||||||||||||
Acquisitions of subsidiaries and business, shares | shares | 626,746 | 626,746 | ||||||||||||||||||
Net income (loss) | 437,774,169 | 442,718,263 | 442,718,263 | (4,944,094) | ||||||||||||||||
Foreign currency translation adjustments | 2,933,162 | 2,933,162 | 2,933,162 | |||||||||||||||||
Share-based compensation | 26,490,395 | 26,490,395 | 26,490,395 | |||||||||||||||||
Balance at Dec. 31, 2019 | 2,017,760,007 | ¥ 219,526,699 | ¥ 115,534,210 | 1,152,108,217 | 308,698,533 | 65,300,854 | 1,861,168,513 | 156,591,494 | ||||||||||||
Balance, shares 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 Shandong Xinghui | ¥ 3,060,371 | (3,060,371) | ||||||||||||||||||
Issuance of Class A ordinary shares as a payment to the acquisition of Shandong Xinghui, shares | shares | 870,908 | 870,908 | ||||||||||||||||||
Capital contribution from noncontrolling interest holders | 6,943,589 | 6,943,589 | ||||||||||||||||||
Net income (loss) | 244,702,736 | $ 37,502,335 | 261,344,391 | 261,344,391 | (16,641,655) | |||||||||||||||
Foreign currency translation adjustments | (19,714,207) | (3,021,335) | (19,714,207) | (19,714,207) | ||||||||||||||||
Share-based compensation | 232,558 | 232,558 | 232,558 | |||||||||||||||||
Balance at Dec. 31, 2020 | ¥ 2,249,924,683 | $ 344,816,043 | ¥ 222,587,070 | $ 34,112,961 | ¥ 115,534,210 | $ 17,706,392 | ¥ 1,149,280,404 | $ 176,134,928 | ¥ 570,042,924 | $ 87,362,900 | ¥ 45,586,647 | $ 6,986,460 | ¥ 2,103,031,255 | $ 322,303,641 | ¥ 146,893,428 | $ 22,512,402 | ||||
Balance, shares at Dec. 31, 2020 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating activities: | ||||
Net income (loss) | ¥ 244,702,736 | $ 37,502,335 | ¥ 437,774,169 | ¥ 371,220,289 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 65,869,970 | 10,095,015 | 40,366,299 | 25,549,965 |
Impairment of long-lived assets | 5,008,677 | |||
Share of loss (gain) in equity method investments | (909,364) | (139,366) | (140,564) | 8,300,584 |
Gain from disposal of a long-term investment | (1,097,790) | (36,723,048) | ||
Gain from disposal of a subsidiary | (1,779,000) | (272,644) | ||
Interest income | (11,542,121) | (1,768,907) | (35,659,822) | (20,447,590) |
Bad debt expense | 29,953,404 | 4,590,560 | 38,423,347 | 1,978,374 |
Losses and impairment (Gains) on equity securities held | 44,506,823 | 6,820,970 | (55,253,744) | 57,774,952 |
(Gain) Loss on disposal of property and equipment | 860,000 | (267,849) | ||
Foreign exchange loss (gain) | 4,723,948 | 723,977 | (1,408,437) | 430,430 |
Share-based compensation | 232,558 | 35,641 | 26,490,395 | 16,108,950 |
Withholding tax | 19,845,708 | 23,345,894 | ||
Gains from the acquisition of an equity investee | (1,344,212) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (28,789,041) | (4,412,114) | (52,263,625) | (12,368,310) |
Prepaid rent | 5,196,798 | 796,444 | (14,316,252) | (185,941) |
Inventories | (1,281,009) | (196,323) | 351,518 | 621,293 |
Amounts due from related parties | 10,329,181 | 1,583,016 | (3,228,596) | 1,694,216 |
Other current assets | (18,807,170) | (2,882,325) | 10,990,176 | (13,933,400) |
Other assets | (19,680,102) | (3,016,108) | (22,637,263) | (1,964,823) |
Accounts payable | 4,546,551 | 696,789 | 4,814,800 | 1,183,032 |
Amounts due to related parties | (319,778) | (49,008) | 3,232,453 | (187,440) |
Salary and welfare payable | 8,913,678 | 1,366,081 | (2,047,293) | (2,203,639) |
Deferred revenue | (59,516,154) | (9,121,250) | 18,973,331 | 78,439,349 |
Advance from customers | (5,800,119) | (888,907) | 3,735,302 | 2,707,962 |
Accrued expenses and other current liabilities | 13,169,673 | 2,018,341 | 27,198,083 | (7,472,169) |
Income tax payable | (6,354,794) | (973,915) | (12,476,008) | 4,328,055 |
Unrecognized tax benefits | 29,038,185 | 4,450,297 | 92,022,308 | 56,319,776 |
Deferred rent | 6,997,755 | 1,072,453 | (1,939,759) | (1,025,731) |
Other long-term liabilities | (5,549,798) | (850,544) | 21,538,701 | 22,636,533 |
Deferred taxes | (12,595,878) | (1,930,403) | (30,207,540) | (24,574,536) |
Net cash provided by operating activities | 295,256,932 | 45,250,105 | 513,939,897 | 554,949,643 |
Investing activities: | ||||
Purchases of property and equipment | (111,929,994) | (17,154,022) | (213,329,308) | (138,471,216) |
Purchases of intangible assets | (887,893) | (136,076) | (2,240,298) | (3,491,958) |
Proceeds from disposal of property and equipment | 80,355 | 12,315 | 1,800,000 | 126,301 |
Acquisitions, net of cash received | (18,415,807) | (2,822,346) | (325,016,059) | (13,302,894) |
Advance for acquisitions | (6,550,000) | (1,003,831) | (38,869,400) | (18,121,700) |
Collection of acquisition advances | 36,352,700 | 5,571,296 | ||
Purchases of short-term investments | (206,596,401) | (31,662,284) | (823,183,360) | (772,540,145) |
Proceeds from short-term investments | 453,434,366 | 69,491,857 | 1,107,076,219 | 889,325,672 |
Increase of long-term time deposits | (30,000,000) | (4,597,701) | (500,000,000) | (60,000,000) |
Purchases of investments in equity securities | (65,829,314) | (10,088,784) | (328,228,962) | (88,258,150) |
Proceeds from disposal of equity securities | 198,976 | 30,494 | 222,015,253 | 30,544,376 |
Proceeds from disposal of equity method investments | 6,380,000 | 977,778 | 1,671,092 | 89,182,803 |
Proceeds from disposal of a subsidiary | 2,183,350 | 334,613 | ||
Loan to related parties | (528,356,500) | (80,974,176) | (634,638,425) | (4,300,000) |
Repayment from related parties | 539,996,179 | 82,758,035 | 458,752,530 | |
Loan to third parties | (62,000,000) | (9,501,916) | (10,340,000) | (166,819,164) |
Repayment from third parties | 118,380,000 | |||
Loan to franchisees | (218,821,974) | (33,535,935) | (157,411,151) | (54,060,267) |
Repayment from franchisees | 99,209,300 | 15,204,490 | 21,985,474 | 10,050,000 |
Net cash used in investing activities | (111,552,657) | (17,096,193) | (1,219,956,395) | (181,756,342) |
Financing activities: | ||||
Distribution to the shareholders (Note 1) | (226,951,236) | (200,532,021) | ||
Income tax paid related to the above distribution | (3,000,000) | |||
Proceeds from short-term borrowings | 160,000,000 | 24,521,073 | 60,000,000 | |
Repayment of short-term borrowings | (70,000,000) | (10,727,969) | ||
Loan from non-controlling interest | 20,585,804 | 3,154,912 | ||
Capital contribution from noncontrolling interest holders | 6,943,589 | 1,064,152 | 14,719,481 | |
Proceeds from issuance of Class A ordinary shares (Note 1) | 837,505,007 | |||
Payment for initial public offering costs | (30,827,578) | |||
Payment for contingent consideration | (2,001,521) | (306,747) | ||
Net cash generated (used in) from financing activities | 115,527,872 | 17,705,421 | (212,231,755) | 663,145,408 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (7,664,261) | (1,174,599) | (6,917,309) | 66,023,411 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 291,567,886 | 44,684,734 | (925,165,562) | 1,102,362,120 |
Cash and cash equivalents and restricted cash at the beginning of the year | 342,160,223 | 52,438,348 | 1,267,325,785 | 164,963,665 |
Cash and cash equivalents and restricted cash at the end of the year | 633,728,109 | 97,123,082 | 342,160,223 | 1,267,325,785 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (4,470,953) | (685,204) | (2,133,568) | |
Income taxes paid | (105,591,179) | (16,182,556) | (120,341,664) | (93,299,479) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Dividend payable settled by loan to a related party | 157,461,267 | |||
Consideration payable for acquisitions | 16,776,500 | 10,000,000 | ||
Current assets settled for acquisition of a subsidiary | 37,255,016 | 8,225,876 | ||
Ordinary shares issued or to be issued for acquisitions | 124,695,851 | |||
Contingent consideration included in other current liabilities arising from acquisition during the year | 4,027,207 | |||
Returnable consideration included in other assets arising from acquisition during the year | 3,333,421 | |||
Acquisition of a subsidiary transferred from long-term investment | 3,330,000 | |||
Reconciliation of cash, cash and equivalents and restricted cash | ||||
Cash and cash equivalents | 611,358,209 | 93,694,745 | 319,847,701 | 1,264,025,785 |
Restricted cash | 22,369,900 | 3,428,337 | 22,312,522 | 3,300,000 |
Cash and cash equivalents and restricted cash at the end of the year | ¥ 633,728,109 | $ 97,123,082 | ¥ 342,160,223 | ¥ 1,267,325,785 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 78.19% 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 In February and March 2018, the Company declared and paid a cash dividend of USD25,578,618 pursuant to a board resolution. 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 In January 2019, the Company declared and paid a cash dividend of USD30,559,675 pursuant to a board resolution. 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”). In December 2019, the Company declared and paid a cash dividend of USD25,544,739 pursuant to a board resolution. 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 (“Shandong Xinghui”). 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, 2020: Major subsidiaries Percentage of Ownership Date of Incorporation, Merger or Acquisition Place of Incorporation Major 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. 100 % October 20, 2011 PRC Information (“Shanghai Evergreen”) 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 Argyle Beijing 60 % April 1, 2019 PRC Hotel management Shandong Xinghui 70 % November 30,2019 PRC Hotel management 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, which ranges from 10 to 20 years. Under the lease arrangements, the Group typically receives rental holidays of three to six months and pays fixed rent on a quarterly or semi-annual basis for the first three or five years of the lease term, 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, 2020 | |
Accounting Policies [Abstract] | |
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 consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the ultimate primary beneficiary. All intercompany transactions and balances are 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. Variable Interest Entities The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. 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, contingent liabilities, purchase price allocation and share-based compensation arrangements (Note 16). Cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits placed with commercial banks or other financial institutions. The Group considers 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 to be cash equivalents. 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 guarantee for lease agreement, the guarantees for short-term debt (Note 11) and the guarantees for prepaid cards. Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one to three years. Unrealized gains from long-term time deposit of nil 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments Short-term investments Short-term investments include one-year time deposits 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 — The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321 (“ASC 321”), Investments – Equity Securities. These securities 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 gains (losses) on equity securities held in the consolidated statements of comprehensive income. The realized Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with readily determinable fair values, equity investments 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 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Long-term investments (continued) 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 in net income in the consolidated statements of comprehensive income. The realized gains of nil 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 These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive income equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption of ASU 2016-01 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. No cumulative impact was recognized as of January 1, 2019. The available-for-sale debt investment is convertible debt instruments issued by a private company that is redeemable at the Group’s option, which are measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of these debt investments are recognized in other comprehensive income. 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 interest income of RMB18,667,117 (USD2,860,861 ) was recognized in the earnings for the year ended December 31, 2020. No impairment or significant fair value changes were recorded for these investments during any of the presented periods. 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 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 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. Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization 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 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 from such business combination transactions 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. 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 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The trademarks acquired in the acquisition of Argyle Group and Urban Hotel Group (Note 3) can be renewed without substantial obstacles. As a result, the useful life is determined to be indefinite. The Group evaluates the trademark at the end of each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. 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, 2019 and 2020 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and business acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance to 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. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Goodwill (continued) In 2018 and 2019, the Group performed a qualitative assessment for its reporting unit. In 2020, the Group elected to choose to bypass the qualitative assessment and proceed directly to perform a quantitative test. No impairment was recorded during any of the presented periods. Impairment of long-lived assets The Group evaluates impairment of its long-lived assets to be held and used, including property and equipment, definite-lived intangible assets and other non-current assets, when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment-Overall 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, 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, which are recognized on a straight-line basis over the contractual lease term. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income amounted to RMB53,852,195, 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 2018, 2019 and 2020, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB99,185,965, RMB115,638,242 and RMB112,729,886 (USD17,276,611), 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 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 to five years depending on membership level. Membership points earned by members 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. 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 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 as incurred, and amounted to RMB15,654,573, RMB23,934,351 and RMB38,934,867 (USD5,967,029) for the years ended December 31, 2018, 2019 and 2020, 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, 2018, 2019 and 2020, the Group received financial subsidies of RMB15,150,107, RMB9,880,735 and RMB20,094,745 (USD3,079,654), 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 income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. 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 are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2019 and 2020. The Group leases hotel space under certain operating lease agreements. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The excess of rent expense and rent paid, as the case may be for respective leases, is recorded as deferred rent. Rental expenses amounted to RMB78,272,335, RMB81,379,034 and RMB122,590,230 (USD18,787,775) for the years ended December 31, 2018, 2019 and 2020, respectively. 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 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Income taxes (Continued) 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. For the annual period ended December 31, 2018, the Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and classified all deferred income tax assets as noncurrent on the consolidated balance sheets on a prospectively basis. 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. 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 income (loss) in the consolidated statements of comprehensive income. Convenience translation Translations of amounts from RMB into U.S. dollars and HKD into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.5250 and USD1 to HKD7.7534 on December 31, 2020, 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, 2020, or at any other rate. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 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 investment, the Group uses a combination of valuation methodologies, including income approach and Black-Scholes-Merton valuation model based on the Grou |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 3. BUSINESS COMBINATIONS 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 (USD337,165), among which RMB153,251 (USD23,487) 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. Business combinations in 2019: During the years ended 2019, the Group completed four business combinations Argyle Group On April 4, 2019, the Group completed the acquisition of Argyle Group through acquiring 60% equity interest in Argyle Beijing. Argyle Group is an owner and operator of hotels, with a network of mid-scale and up-scale brands in China and Southeast Asia. The total consideration amounted to RMB126,819,172, which was measured at the fair value of the 626,746 ordinary shares on the acquisition date and cash consideration of RMB65,779,032. The business acquisition was accounted for under purchase accounting. The net revenue and net loss of the acquire included in the consolidated statements of operations for the year ended December 31, 2019 were RMB11,882,976 and RMB7,694,834, respectively. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets 3,777,860 Property and equipment 1,013,378 3 - 17 years Intangible assets Purchased software 669,206 4 - 7 years Trademark 230,500,000 Indefinite life Goodwill 42,198,903 Current liabilities (7,618,079) ) Deferred tax liabilities (57,625,000) ) Non current liabilities (15,642,000) ) Noncontrolling interest (70,455,096) ) Total 126,819,172 3. BUSINESS COMBINATIONS (CONTINUED) Business combinations in 2019 (continued): Urban Hotel Group On November 30, 2019, the Group completed the acquisition of Urban Hotel Group through acquiring 70% equity interest in Shandong Xinghui. Urban Hotel Group is a leading franchised hotel operator in China. The total consideration amounted to RMB 190,349,496, The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets (i) 50,482,296 Property and equipment 6,913,189 3 - 10 years Intangible assets Favorable leases 20,100,000 Remaining lease terms Trademark 212,800,000 Indefinite life Purchased software 34,739 2 years Deferred tax assets 4,000,000 Other assets 4,537,000 Goodwill 49,037,577 Current liabilities (19,831,341) ) Non current liabilities (11,517,000) ) Deferred tax liabilities (58,225,000) ) Noncontrolling interest (67,981,964) ) Total 190,349,496 (i) Current assets acquired primarily included cash and cash equivalent of RMB28,162,864, other receivables of RMB16,928,966 and accounts receivable of RMB5,116,320. Others On July 1, 2019, the Group completed the acquisition of a company at consideration of RMB37,255,016 On August 31, 2019, the Group completed the acquisition of one hotel at a cash consideration of RMB5,530,000. 3 . BUSINESS COMBINATIONS (CONTINUED) Business combination in 2018: During the year ended 2018, the Group completed four acquisitions. The results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since their respective dates of acquisition. The Group completed the valuation necessary to assess the fair value of the acquired assets and liabilities and the non-controlling interests 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. In January 2015, the Group acquired 50% of the equity interest in Yancheng Zexin Hotel Management Co., Ltd. (the “Zexin”) and the investment was accounted for under equity method given the Group had the ability to exercise significant influence over Zexin. In July 2018, the Group acquired additional 1% of the equity interest in Zexin for a cash consideration of RMB80,000. The acquisition closed on July 1, 2018 when the Group obtained control of Zexin’s operations holding in aggregate 51% of its equity interest. The fair value of previously held equity interest is RMB3,333,000 at the acquisition date. A gain of RMB1,344,212 in relation to the revaluation of the previously held equity interest was recorded in other income, net in the consolidated statement of comprehensive income for the year ended December 31, 2018. In July 2018, the Group acquired 100% of the equity interest in a hotel chain and 70% of the equity interest in an individual hotel for an aggregate cash consideration of RMB10,000,000 and RMB13,000,000, respectively. In August 2018, the Group acquired 70% of the equity interest in an individual hotel for an aggregate cash consideration of RMB1,400,000. These business acquisitions were accounted for under purchase accounting. The net revenue and net loss of the acquiree included in the consolidated statements of operations for the year ended December 31, 2018 were RMB14,148,551 and RMB 332,960, respectively. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2018 Amortization Period Current assets (i) 11,520,969 Property and equipment 32,618,088 3 - 17 years Intangible assets Favorable leases 20,095,000 Remaining lease terms Trademark 1,530,000 Remaining beneficial period Goodwill 2,827,885 Current liabilities (18,636,959 ) Deferred tax liabilities (5,406,250 ) Noncontrolling interest (8,509,857 ) Total 36,038,876 (i) Current assets acquired primarily included cash and cash equivalent of RMB1,177,106, other receivables of RMB1,438,641 and loans receivable of RMB7,500,000. 3 . BUSINESS COMBINATIONS (CONTINUED) Business combinations in 2018 (continued): As the acquires are unlisted companies, the fair value measurements for the non-controlling interest and previously held equity interest are estimated with reference to the purchase price per share as of the acquisition date and adjustment for the lack of control and marketability. The business acquisitions were accounted for under purchase accounting. The assets and liabilities of these two acquirees were immaterial to the consolidated financial statements. The Group incurred transaction cost of RMB2,589,034 for the abovementioned four acquisitions, which was expensed and recorded in general and administrative expenses in the year ended December 31, 2019. The valuations used in the purchase price allocation described above were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flow (c) financial multiple of companies in the same industry and (d) adjustment for lack of control and marketability. Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that do not qualify for separate recognition. Goodwill is not amortized and is not deductible for tax purposes. In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. All the acquired business has been integrated with the Group’s business. The Group concluded that it has only one reporting unit. Accordingly, goodwill is allocated to one single reporting unit. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Leased and operated hotels revenue 212,671,930 253,420,676 227,074,041 34,800,619 Franchise and managed hotels revenues 692,942,739 831,340,340 677,480,818 103,828,478 Initial franchise fee 42,806,330 54,930,266 61,051,369 9,356,532 Continuing franchise fees 650,136,409 776,410,074 616,429,449 94,471,946 Others - 7,032,119 25,455,237 3,901,186 Total 905,614,669 1,091,793,135 930,010,096 142,530,283 Substantially all revenues are generated in the PRC. 4. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) 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, 2019 and December 31, 2020. 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, 2019 2020 2020 RMB RMB USD Advance from customers 40,105,627 34,305,508 5,257,549 Deferred revenue-current 231,925,272 221,314,997 33,918,007 Deferred revenue-non current 410,807,248 361,901,369 55,463,811 Total contract liabilities 682,838,147 617,521,874 94,639,367 The deferred revenue balances above, as of December 31, 2019 and 2020 were comprised of the following: Years Ended December 31, 2019 2020 2020 RMB RMB USD Initial fees received from franchisees owners 295,443,732 280,478,697 42,985,241 Cash received for membership fees and not recognized as revenue 257,351,279 215,009,108 32,951,587 Cash received for prepaid card and sublease 58,075,704 48,137,090 7,377,332 Deferred revenue related to the membership program 31,861,805 39,591,471 6,067,658 Total contract liabilities 642,732,520 583,216,366 89,381,818 The Group recognized revenues that were previously deferred as contract liabilities of RMB212,226,297 (USD30,484,400) and RMB206,913,137 (USD31,710,826) during the years ended December 31, 2019 and 2020, 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 31,2020, the Group had RMB280,478,697 (USD42,985,241) 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 to 30 years. The Group had RMB215,009,108 (USD32,951,587) of deferred revenues related to membership fees that are expected to be recognized as revenues over the remaining membership life, which is estimated to be one to five years. The Group had RMB39,591,471 (USD6,067,658) of deferred revenues related to unsatisfied performance obligations under Greentree Reward membership program that will be recognized as revenues when the points are redeemed, which we estimate will occur over the next two years. The Group also had RMB48,137,090 (USD7,377,332) related to cash received for prepaid card and sublease, which are expected to be recognized as revenues in future periods over the terms of the related contracts. |
Loans Receivable Net
Loans Receivable Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 5. LOANS RECEIVABLE, NET Loans receivable, net is comprised of the following: As of December 31, 2019 2020 2020 RMB RMB USD Loans receivable, current portion Franchisees 79,572,201 191,687,640 29,377,416 Third parties 17,740,000 48,556,989 7,441,684 Less: bad debt provision (15,000,000 ) (18,000,000 ) (2,758,620 ) Total 82,312,201 222,244,629 34,060,480 Loans receivable, non-current portion Franchisees 113,963,742 121,460,977 18,614,709 Third parties 7,600,000 24,243,011 3,715,404 121,563,742 145,703,988 22,330,113 Loan receivables 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 Loan receivables 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 six months to two years and the interest rate from 7.9% to 12.0% per annum. As of December 31, 2019 and 2020, the Group recognized an allowance of RMB15,000,000 and RMB18,000,000 (USD2,758,620) in relation to loans to a third party and a franchisee. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of December 31, 2019 2020 2020 RMB RMB USD Buildings 543,500,662 544,298,466 83,417,390 Leasehold improvements 289,710,814 384,266,061 58,891,350 Furniture, fixtures and equipment 57,302,434 77,605,170 11,893,513 Motor vehicles 2,912,805 2,909,387 445,883 Total 893,426,715 1,009,079,084 154,648,136 Less: Accumulated depreciation (295,096,805 ) (353,833,524 ) (54,227,360 ) 598,329,910 655,245,560 100,420,776 Construction in progress 16,606,595 13,360,101 2,047,525 Property and equipment, net 614,936,505 668,605,661 102,468,301 On June 3, 2019, the Group acquired 100% equity interests in a company from third party for a total cash consideration of RMB183,555,000. The said company had no operations and was not qualified as a business as it had no input or process to create output. The Group adopted ASU No.2017-01, Business Combinations (Topic 802): Clarifying the Definition of a Business 6. PROPERTY AND EQUIPMENT, NET (CONTINUED) Depreciation expense was RMB23,919,015, RMB37,340,304 and RMB59,719,534 (USD9,152,419) for the years ended December 31, 2018, 2019 and 2020, respectively, and were included in the following captions: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Hotel operating costs 21,313,405 31,671,274 50,324,493 7,712,566 General and administrative costs 2,605,610 5,669,030 9,395,041 1,439,853 Total 23,919,015 37,340,304 59,719,534 9,152,419 Impairment of RMB5,008,677, nil and nil were recognized on the property and equipment for the year ended December 31, 2018, 2019 and 2020, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 7. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2019 2020 2020 RMB RMB USD Intangible assets with indefinite life: Trademark 443,300,000 443,300,000 67,938,697 Intangible assets with definite life: Trademark 4,724,493 4,724,493 724,060 Technology 4,200,000 4,200,000 643,678 Network rights 390,317 390,317 59,819 Purchased software 14,339,844 15,227,737 2,333,753 Reacquired rights 2,531,418 2,531,418 387,957 Favorable leases 41,600,548 42,095,848 6,451,471 Others 435,185 435,185 66,695 Total 511,521,805 512,904,998 78,606,130 Less: Accumulated amortization (15,241,489 ) (21,391,925 ) (3,278,456 ) Total. 496,280,316 491,513,073 75,327,674 Amortization expense of intangible assets for the years ended December 31, 2018, 2019 and 2020 amounted to RMB1,630,950, RMB3,025,995 and RMB6,150,436 (USD942,596), respectively. No impairment charges were recognized for the years ended December 31, 2018, 2019 and 2020. The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2021 5,183,779 794,449 2022 5,231,146 801,708 2023 4,852,963 743,749 2024 4,718,766 723,183 2025 4,292,118 657,796 Thereafter 23,934,301 3,668,092 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 were as follows: For the years ended December 31, 2019 2020 2020 RMB RMB USD Balance as of January 1 5,787,068 100,078,236 15,337,660 Acquisitions 94,291,168 153,251 23,487 Balance as of December 31 100,078,236 100,231,487 15,361,147 No impairment loss was recognized in any of the periods presented. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Investments [Abstract] | |
Long-Term Investments | 9. LONG-TERM INVESTMENTS As at December 31, 2019 and 2020, long-term investments consisted of the following: As of December 31, 2019 2020 2020 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. 23,579,728 24,489,092 3,753,117 Other - 1,000,000 153,257 Equity securities with readily determinable fair values China Gingko Education Group Company Limited 70,193,934 56,354,913 8,636,768 Zhejiang New Century Hotel Management Co., Ltd. 192,639,353 180,457,226 27,656,280 Equity securities without readily determinable fair values Yibon Hotel Group Co., Ltd ("Yibon") 103,701,474 - - Other 8,523,212 3,523,212 539,956 Available-for-sale debt investment Yibon - 103,701,474 15,892,946 Total 398,637,701 369,525,917 56,632,324 Equity method investments None of the Group’s equity method investments was considered individually or in aggregate significant for the years ended December 31, 2019 and 2020. Equity securities with readily determinable fair values In January 2019, the Group acquired 5.56% equity interest, 27,776,000 ordinary shares, in China Gingko Education Group Company Limited with HK$40.40 million during its initial public offering in the Hong Kong Stock Exchange and further acquired 2.71% equity interest, 13,560,000 ordinary shares with HK$19.53 million through secondary market. On March 11, 2019, the Group acquired 4.95% of shares in Zhejiang New Century Hotel Management Co., Ltd. in its global offering in the Hong Kong Stock Exchange, for a total amount of USD29.2 million. 9 . LONG-TERM INVESTMENTS (CONTINUED) Investment in Yibon 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 is 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 has elapsed and the criterion has 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 RMB103,701,474 (USD15,892,946). 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. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Assets | 10. As of December 31, 2019 2020 2020 RMB RMB USD Acquisition deposits 38,869,400 8,216,700 1,259,265 Rental deposit 6,685,000 7,410,000 1,135,632 Interest receivable 17,326,910 33,772,617 5,175,880 Returnable consideration from the acquisition of Urban Hotel Group 3,333,421 1,833,421 280,984 Others 10,743,261 15,402,656 2,360,561 Total 76,957,992 66,635,394 10,212,322 |
Short-Term Bank Loans
Short-Term Bank Loans | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Borrowings [Abstract] | |
Short-Term Bank Loans | 11. SHORT-TERM BANK LOANS As of December 31, 2019 2020 2020 RMB RMB USD Short-term bank loans 60,000,000 150,000,000 22,988,506 As of December 31, 2020, the principal amount outstanding was RMB150,000,000 (USD22,988,506), bearing the interest rate of 4.60% per annum. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 12. As of December 31, 2019 2020 2020 RMB RMB USD Other payables 210,561,540 197,643,431 30,290,181 Business taxes and related tax surcharge 64,345,243 78,300,960 12,000,147 Accrued rental 2,250,443 20,675,146 3,168,605 Consideration payables for acquisitions 16,776,500 309,500 47,433 Accrued utilities 2,306,796 2,307,672 353,667 Other accrued expenses 2,180,632 934,279 143,184 Payables for contingent consideration 4,027,207 525,685 80,565 Total 302,448,361 300,696,673 46,083,782 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Financial Position [Abstract] | |
Other Long-term Liabilities | 13. As of December 31, 2019 and 2020, other long-term liabilities are mainly comprised of deposits from franchisees. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Class Of Stock Disclosures [Abstract] | |
Ordinary Shares | 14. The Group’s Class A and Class B ordinary shares are identical in all respects except for voting and conversion rights. On all matters upon which the holders are entitled to vote, the Class A shares and Class B shares then outstanding shall constitute 39.6% and 60.4% 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, 2020 | |
Operating Expenses [Abstract] | |
Hotel Operating Costs | 15. 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, 2018 2019 2020 2020 RMB RMB RMB USD Rental 76,055,484 79,597,408 118,295,183 18,129,530 Utilities 19,264,487 19,119,300 15,372,385 2,355,921 Personnel cost 33,715,007 38,277,298 41,330,758 6,334,216 Depreciation and amortization 21,313,405 34,727,153 50,324,493 7,712,566 Consumable, food and beverage 19,275,688 32,337,115 43,257,796 6,629,547 Costs of hotel manager of franchised-and-managed hotels 70,480,306 96,565,044 91,664,745 14,048,237 Other costs of franchised-and-managed hotels 22,353,424 29,192,923 22,985,917 3,522,746 Others 11,961,462 9,010,238 9,291,029 1,423,912 Total 274,419,263 338,826,479 392,522,306 60,156,675 |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 16. Grant of fully vested GTI ordinary shares to directors of the Company On November 11, 2017, GTI issued 352,500 fully vested ordinary shares to certain directors of the company in recognition of their past services to the Company. Accordingly, the Company recorded share-based compensation expense on the date of issuance of these shares of RMB38,048,000 which was recorded in general and administrative expenses for the year ended December 31, 2017. 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. As of December 31, 2020, the Group had granted 1,829,000 Share-based compensation expense of RMB16,108,950, RMB27,676,666 and RMB232,558 (USD35,641) was recognized in general and administrative expenses for the years ended December 31, 2018, 2019 and 2020. During the year ended December 31, 2019, cash used to settle the related share-based compensation is RMB1,186,271. For options granted during the years ended December 31, 2018 and 2019, the weighted-average grant date fair value for options granted was USD5.54 and USD3.57 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. Prior to the IPO, the estimated fair value of the ordinary shares, at the option grant dates prior to the IPO, was determined with assistance from an independent third-party valuation firm. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The fair value of share options was estimated using the following significant assumptions: Granted in 2018 Granted in 2019 Risk-free interest rate 2.42 % 1.60%-2.60% Volatility 34.00 % 35.66%-37.98% Dividend yield - 2.5 % Life of option 6 years 6 years The aggregate grant date fair value of the outstanding options was determined to be RMB60,525,042, RMB39,628,188 and RMB35,828,331 (USD5,490,932) as of December 31, 2018, 2019 and 2020, 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, 2018, 2019 and 2020 were RMB5,431,798, RMB11,316,415 and RMB8,610,259 (USD1,319,580). As of December 31, 2018, 2019 and 2020, there was RMB42,791,057, RMB12,314,260 and RMB3,405,695 (USD521,946) in total unrecognized compensation expense related to unvested options, which is expected to be recognized over a weighted-average period of 3.11, 2.58 and 1.34 years. 16. SHARE BASED COMPENSATION (CONTINUED) The following table summarized the Group’s share option activity under the option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value USD Years USD Share options outstanding at December 31, 2019 1,022,000 12.28 3.96 - Granted - N/A Exercised - N/A Forfeited (14,000 ) 12.57 Expired (17,000 ) 12.00 Share options outstanding at December 31, 2020 991,000 12.27 3.13 1,257,200 Vested and expected to vest at December 31, 2020 991,000 12.27 3.13 1,257,200 Exercisable as of December 31, 2020 497,750 12.27 3.12 631,750 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. INCOME TAXES Samoa Under the current laws of Samoa, GreenTree Samoa is not subject to tax on income or capital gain. Cayman Island Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. 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, 2018, 2019 and 2020. 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. 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 uniform tax rate of 25%. Enterprises qualified as "High New Technology Enterprises ("HNTEs") enjoy a preferential income tax rate of 15%. Shanghai Evergreen was qualified as an HNTE during 2017 to November 2020 under the CIT Law. Shanghai Evergreen has been entitled to a preferential income tax rate of 15% during 2017 to 2019. As of December 31, 2020, Shanghai Evergreen is in the process of application for renewal of the HNTE qualification from November 2020 to November 2023. In March 2021, Shanghai Evergreen has received the renewed qualification. 17. INCOME TAXES ( The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Current tax 153,947,310 197,233,190 122,931,256 18,840,039 Deferred tax (1,228,642 ) (7,665,373 ) (12,472,054 ) (1,911,426 ) Total 152,718,668 189,567,817 110,459,202 16,928,613 Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31 2018 2019 2020 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 4 % 3 % 0 % Effect of international rate difference (1 %) 0 % 1 % Effect of preferential tax rate (3 %) (5 %) 0 % Tax effect of expenses that are not deductible in determining taxable profit 4 % 7 % 5 % Effective tax rate 29 % 30 % 31 % The principal components of the Group’s deferred income tax assets and liabilities as of December 31, As of December 31, 2019 2020 2020 RMB RMB USD Deferred tax assets: Net loss carryforward 15,741,149 22,229,252 3,406,782 Deferred revenue 146,046,006 132,881,621 20,365,000 Deferred rent 5,683,389 7,499,776 1,149,391 Bad debt expenses 5,268,134 7,622,390 1,168,182 Accrued expenses 7,368,561 15,971,223 2,447,697 Unrealised losses from equity securities - 5,213,960 799,074 Valuation allowance (19,619,046 ) (24,186,707 ) (3,706,775 ) Total deferred tax assets 160,488,193 167,231,515 25,629,351 Deferred tax liabilities: Depreciation of property and equipment (3,864,132 ) (3,990,387 ) (611,554 ) Unrealized gains from equity securities (4,304,431 ) (805,803 ) (123,495 ) Intangible assets arising from acquisition (143,943,382 ) (141,587,024 ) (21,699,161 ) Withholding tax on PRC earnings to be distributed (43,191,602 ) (43,191,602 ) (6,619,402 ) Total deferred tax liabilities (195,303,547 ) (189,574,816 ) (29,053,612 ) The Group offset deferred tax liabilities and assets pertaining to a particular tax-paying component of the Group within a particular jurisdiction. Valuation allowances have been provided for net deferred tax assets in the legal entity where, based on all available evidence, it was determined by management that more likely than not to be realized in future years. As of December 31, 2020, the Group had tax losses carryforwards of RMB88,917,006 (USD13,627,127) which will expire between 2021 and 2025 if not utilized. 17. INCOME TAXES ( 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 RMB698,717,403 (USD107,083,127) as of December 31, 2020.The Group intends to indefinitely reinvest the remaining undistributed earnings of the Group’s PRC subsidiaries. As of December 31, 2020, the related PRC withholding tax liability accrued was RMB43,191,602 (USD6,619,402). The Group made its assessment of the level of authority for each of its uncertain tax positions (including the potential application of interests and penalties) 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. RMB290,679,902 (USD44,548,644) of the uncertain tax positions, if ultimately recognized, would affect the effective tax rate. In the years ended December 31, 2020, the Company recorded interest expense of RMB18,462,564 (USD2,829,512). As of December 31, 2020, the accumulated interest expense and penalty recorded by the Group was RMB87,764,535 (USD13,450,503) and nil respectively. As of December 31, 2019, the accumulated interest expense and penalty recorded by the Group was RMB69,301,971 and nil respectively. Unrecognized tax benefits — January 1, 2019 169,619,409 Increases — tax positions in the current period 104,031,858 Decreases — tax positions in prior period (12,009,550 ) Unrecognized tax benefits — December 31, 2019 261,641,717 Unrecognized tax benefits — January 1, 2020 261,641,717 Increases — tax positions in the current period 37,621,483 Decreases — tax positions in prior period (8,583,298 ) Unrecognized tax benefits — December 31, 2020 290,679,902 The Group’s PRC subsidiaries are subject to examination by the PRC tax authorities from 2015 through 2020 on non-transfer pricing matters, and from 2010 through 2020 on transfer pricing matters. |
Mainland and China Contribution
Mainland and China Contribution Plan and Profit Appropriation | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland and China Contribution Plan and Profit Appropriation | 18. 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 RMB22,289,686, RMB28,700,397 and RMB25,666,575 (USD3,933,575) for the years ended December 31, 2018, 2019 and 2020, 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, 2020 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net assets | 19. 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, 2018, 2019 and 2020, the PRC statutory reserve funds amounted to RMB57,726,641, RMB63,030,266 and RMB 69,953,178 (USD10,720,794), 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 RMB394,424,291, RMB509,435,466 and RMB777,732,187 (USD119,192,672) as of December 31, 2018, 2019 and 2020, 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, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | 20. 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 2018, 2019 and 2020 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 Vice president, human resources and administration of the Group 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 Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) * Catering management Controlled by GTI Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) 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 TB** Franchised hotels Former Equity investee of the Group Yancheng Zexin Hotel Co., Ltd Hotel management Former Equity investee of the Group * Aotao became a related party as it was acquired by a company controlled by GTI in January 2019. Shiquanmeiwei is also included in Aotao in 2019 and 2020. ** TB ceased to be related party due to liquidation in August 2019. *** As the Group acquired Ze Xin on July 1, 2018, Ze Xin was included as a subsidiary of the Group and ceased to be a related party. 20. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (a) Related party balances Due from related parties: As of December 31, 2019 2020 2020 RMB RMB USD Current: Yibon 722,114 9,101,161 1,394,814 Napa . 2,506,484 500,000 76,628 Aotao 20,086,504 122,719 18,807 JYHM - 46,991 7,202 GTI 8,424,629 - - 31,739,731 9,770,871 1,497,451 Amounts due from Yibon mainly comprised of a loan maturing in one year with an interest rate of 6% per annum. Due to related parties: As of December 31, 2019 2020 2020 RMB RMB USD Current: Yibon 3,205,890 1,995,465 305,819 Napa - 1,120,826 171,774 Da Niang Group - 54,000 8,276 JYHM 312,141 27,962 4,285 3,518,031 3,198,253 490,154 Amount due to Yibon comprised of receipts on behalf of Yibon which were unsecured, interest free and repayable upon demand. Amount due to Napa comprised of the payable for purchase from Napa which were unsecured, interest free, and repayable upon demand. 20. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (b) Related party transactions During the years ended December 31, 2018, 2019 and 2020, related party transactions consisted of the following: Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Loan to Aotao - (167,279,750 ) (479,356,500 ) (73,464,598 ) Repayment from Aotao - 157,279,750 499,421,550 76,539,701 Advertising service from Aotao - - (3,920,000 ) (600,766 ) Interest income from Aotao - 1,316,854 2,316,856 355,074 Franchise management fee to Aotao - (24,941 ) (41,867 ) (6,416 ) Loan to Da Niang Group - (274,800,000 ) (40,000,000 ) (6,130,268 ) Repayment from Da Niang Group - 274,800,000 40,000,000 6,130,268 Interest income from Da Niang Group - 875,315 352,882 54,081 Service purchased from Da Niang Group - (339,121 ) (724,045 ) (110,965 ) Sublease revenue from Da Niang Group - - 36,000 5,517 Sublease revenue from JYHM - 385,355 284,179 43,552 Service purchased from JYHM - (18,418 ) (40,000 ) (6,130 ) Advance from JYHM 221,028 312,141 - - Loan to GTI - (192,558,675 ) - - Repayment from GTI 1,717,539 184,134,046 8,424,629 1,291,131 Interest income from GTI - 907,880 - - Purchase from Napa - (3,576,659 ) (2,059,566 ) (315,642 ) Revenue from Napa - 2,358,491 - - Loan to Yibon - - (9,000,000 ) (1,379,310 ) Franchised revenue from Yibon - 681,239 852,287 130,619 Interest income from Yibon - - 18,667,117 2,860,861 Franchised revenue from TB 389,583 - - - Advance to Shiquanmeiwei (3,600 ) - - - Franchised revenue from Ze Xin 44,763 - - - Loan to Ze Xin (4,300,000 ) - - - Interest income from Ze Xin 263,366 - - - |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. COMMITMENTS AND CONTINGENCIES Operating lease commitments As lessee The Group has entered into lease agreements for business office and certain hotels which it operates. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2020 were as follows: Year Ended December 31, 2020 2020 RMB USD 2021 130,695,728 20,029,997 2022 116,028,562 17,782,155 2023 111,252,708 17,050,223 2024 100,695,245 15,432,221 2025 92,812,089 14,224,075 Thereafter 482,651,095 73,969,517 Total 1,034,135,427 158,488,188 As lessor The Group subleases its leased assets under operating lease arrangements for terms ranging from one to twenty years. The terms of the leases generally also require the tenants to pay security deposits and provide for periodic rent adjustments according to the then prevailing market conditions. At 31 December 2020, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2020 2020 RMB USD 2021 92,929,728 14,242,104 2022 77,561,287 11,886,787 2023 72,750,642 11,149,524 2024 67,048,084 10,275,568 2025 63,861,746 9,787,241 Thereafter 299,068,165 45,834,202 Total 673,219,652 103,175,426 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 Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 22. EARNINGS PER SHARE Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 371,711,219 442,718,263 261,344,391 40,052,780 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 62,860,578 67,315,727 68,286,954 68,286,954 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 36,288,343 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings — basic and diluted: To Class A Shares 235,665,522 291,950,431 173,182,301 26,541,349 To Class B Shares 136,045,697 150,767,832 88,162,090 13,511,431 Basic and diluted earnings per share: To Class A Shares 3.75 4.34 2.54 0.39 To Class B Shares 3.75 4.34 2.54 0.39 In January 2020, the Company issued 870,908 Class A ordinary shares as a portion of purchase consideration for the acquisition of Urban Hotel Group, are included in the computation of basic and diluted earnings per shares for the year ended December 31, 2019 upon the completion of the acquisition of Urban Hotel Group. The Group did not include share options in the computation of diluted earnings per share for the years ended December 31, 2018, 2019 and 2020 because those share options were anti-dilutive for earnings per share. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | 23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2019 2020 2020 RMB RMB USD ASSETS Current assets Cash and cash equivalents 22,137,640 193,351,177 29,632,364 Investments in equity securities - 65,420,098 10,026,069 Amounts due from subsidiaries 6,271,868 14,683,443 2,250,336 Amounts due from a related party 8,424,629 - - Other current assets 2,416,728 1,356,058 207,825 Total current assets 39,250,865 274,810,776 42,116,594 Non-current assets: Investments in subsidiaries 1,577,484,393 1,852,091,157 283,845,388 Equity securities with readily determinable fair values 262,833,287 236,812,139 36,293,048 TOTAL ASSETS 1,879,568,545 2,363,714,072 362,255,030 LIABILITIES AND EQUITY Current liabilities: Other payable 6,000,000 - - Amounts due to subsidiaries 4,924,176 248,360,177 38,062,862 Other long-term liabilities 7,475,856 12,322,640 1,888,527 Total liabilities 18,400,032 260,682,817 39,951,389 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000, 400,000,000 and 400,000,000 shares authorized as of December 31, 2018, 2019 and 2020; 66,789,300, 67,416,046 and 68,286,954 shares issued and outstanding as of December 31, 2018, 2019 and 2020, respectively) 219,526,699 222,587,070 34,112,961 Class B ordinary shares (USD0.50 par value per share; 100,000,000 , 100,000,000 and 100,000,000 shares authorized as of December 31, 2018, 2019 and 2020; 34,762,909, 34,762,909 and 34,762,909 shares issued and outstanding as of December 31, 2018, 2019 and 2020, respectively) 115,534,210 115,534,210 17,706,392 Additional paid-in capital 1,152,108,217 1,149,280,404 176,134,928 Retained earnings 308,698,533 570,042,924 87,362,900 Accumulated other comprehensive income 65,300,854 45,586,647 6,986,460 Total Shareholders’ Equity 1,861,168,513 2,103,031,255 322,303,641 TOTAL LIABILITIES AND EQUITY 1,879,568,545 2,363,714,072 362,255,030 23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD General and administrative expenses (1,307,753 ) (33,538,433 ) (9,967,834 ) (1,527,638 ) interest income 13,785,679 5,970,063 8,173 1,253 Interest expense – (646,315 ) – – (Losses) Gains on investments in equity securities – 6,473,358 (11,392,623 ) (1,745,996 ) Share of profit in subsidiaries, net (Note a) 359,233,293 464,459,590 282,696,675 43,325,161 Income before tax and net income 371,711,219 442,718,263 261,344,391 40,052,780 Other comprehensive income, net of tax - Foreign currency translation adjustments 66,453,841 2,933,162 (19,714,207 ) (3,021,335 ) Comprehensive income 438,165,060 445,651,425 241,630,184 37,031,445 2 3 . PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION ( Continued ) Condensed statements of cash flows Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Operating activities: Net income 371,711,219 442,718,263 261,344,391 40,052,780 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation 1,307,753 26,490,395 232,558 35,641 (Gains) Losses from investments in equity securities - (6,473,358 ) 11,392,623 1,745,996 Share of profit in subsidiaries, net (359,233,293 ) (464,459,590 ) (282,696,675 ) (43,325,161 ) Changes in operating assets and liabilities: Other current assets (4,117,311 ) 1,700,582 1,060,670 162,555 Amounts due from subsidiaries - (6,271,868 ) (8,411,575 ) (1,289,130 ) Amounts due to subsidiaries 7,090,700 (2,166,524 ) 243,436,001 37,308,199 Other long-term liabilities - 7,475,856 4,846,781 742,802 Net cash provided by (used in) operating activities 16,759,068 (986,244 ) 231,204,774 35,433,682 Investing activities: Advances for acquisitions (6,875,561 ) - - - Payment for acquisitions - (52,903,471 ) (6,041,736 ) (925,937 ) Investment to subsidiaries - (2,938,656 ) (2,938,656 ) (450,369 ) Purchases of investments in equity securities - (247,415,003 ) (65,114,997 ) (9,979,309 ) Loan to a related party - (192,558,675 ) - - Repayment from a related party - 26,672,779 8,424,629 1,291,131 Net cash used in investing activities (6,875,561 ) (469,143,026 ) (65,670,760 ) (10,064,484 ) Financing activities: Proceeds from issuance of Class A ordinary shares (note 1) 837,505,007 - - - Payment for initial public offering costs (30,827,578 ) - - - Distribution to the shareholders (note 1) (200,532,021 ) (226,951,236 ) - - Dividends from subsidiaries 39,691,103 - - - Net cash generated from (used in) financing activities 645,836,511 (226,951,236 ) - - Effect of exchange rate changes on cash and cash equivalents and restricted cash 65,853,475 (2,355,347 ) 5,679,523 870,425 Net increase (decrease) in cash and cash equivalents and restricted cash 721,573,493 (699,435,853 ) 171,213,537 26,239,623 Cash and cash equivalents and restricted cash at beginning of the year - 721,573,493 22,137,640 3,392,742 Cash and cash equivalents and restricted cash at end of the year 721,573,493 22,137,640 193,351,177 29,632,364 (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, 2020 | |
Accounting Policies [Abstract] | |
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 consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the ultimate primary beneficiary. All intercompany transactions and balances are 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. |
Variable Interest Entities | Variable Interest Entities The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. |
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, contingent liabilities, purchase price allocation and share-based compensation arrangements (Note 16). |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits placed with commercial banks or other financial institutions. The Group considers 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 to be cash equivalents. 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 guarantee for lease agreement, the guarantees for short-term debt (Note 11) and the guarantees for prepaid cards. |
Long-term Time Deposits | Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one to three years. Unrealized gains from long-term time deposit of nil |
Investments | Investments Short-term investments Short-term investments include one-year time deposits 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 — The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321 (“ASC 321”), Investments – Equity Securities. These securities 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 gains (losses) on equity securities held in the consolidated statements of comprehensive income. The realized Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with readily determinable fair values, equity investments 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 Long-term investments (continued) 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 in net income in the consolidated statements of comprehensive income. The realized gains of nil 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 These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive income equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption of ASU 2016-01 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. No cumulative impact was recognized as of January 1, 2019. The available-for-sale debt investment is convertible debt instruments issued by a private company that is redeemable at the Group’s option, which are measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of these debt investments are recognized in other comprehensive income. 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 interest income of RMB18,667,117 (USD2,860,861 ) was recognized in the earnings for the year ended December 31, 2020. No impairment or significant fair value changes were recorded for these investments during any of the presented periods. |
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 | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 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 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. |
Property and Equipment, Net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization 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 |
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 from such business combination transactions 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. 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 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The trademarks acquired in the acquisition of Argyle Group and Urban Hotel Group (Note 3) can be renewed without substantial obstacles. As a result, the useful life is determined to be indefinite. The Group evaluates the trademark at the end of each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. |
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, 2019 and 2020 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and business acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance to 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. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. Goodwill (continued) In 2018 and 2019, the Group performed a qualitative assessment for its reporting unit. In 2020, the Group elected to choose to bypass the qualitative assessment and proceed directly to perform a quantitative test. No impairment was recorded during any of the presented periods. |
Impairment of Long-lived Assets | Impairment of long-lived assets The Group evaluates impairment of its long-lived assets to be held and used, including property and equipment, definite-lived intangible assets and other non-current assets, when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment-Overall |
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, 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, which are recognized on a straight-line basis over the contractual lease term. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income amounted to RMB53,852,195, 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 2018, 2019 and 2020, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB99,185,965, RMB115,638,242 and RMB112,729,886 (USD17,276,611), respectively. |
Other Revenues | 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 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 to five years depending on membership level. Membership points earned by members 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. |
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 as incurred, and amounted to RMB15,654,573, RMB23,934,351 and RMB38,934,867 (USD5,967,029) for the years ended December 31, 2018, 2019 and 2020, 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, 2018, 2019 and 2020, the Group received financial subsidies of RMB15,150,107, RMB9,880,735 and RMB20,094,745 (USD3,079,654), 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 Income and Other, Net | Interest income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. 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 Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2019 and 2020. The Group leases hotel space under certain operating lease agreements. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The excess of rent expense and rent paid, as the case may be for respective leases, is recorded as deferred rent. Rental expenses amounted to RMB78,272,335, RMB81,379,034 and RMB122,590,230 (USD18,787,775) for the years ended December 31, 2018, 2019 and 2020, respectively. |
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 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Income taxes (Continued) 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. For the annual period ended December 31, 2018, the Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and classified all deferred income tax assets as noncurrent on the consolidated balance sheets on a prospectively basis. |
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. 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 income (loss) in the consolidated statements of comprehensive income. |
Convenience Translation | Convenience translation Translations of amounts from RMB into U.S. dollars and HKD into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.5250 and USD1 to HKD7.7534 on December 31, 2020, 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, 2020, 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 investment, the Group uses a combination of valuation methodologies, including income approach and Black-Scholes-Merton valuation model 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, a discount for lack of marketability, the probability of exit events and the selection of comparable companies. 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value (Continued) The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2019 and 2020 on a recurring basis: Fair Value Measurements at Reporting Date Using Description As of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 3,333,421 3,333,421 Short-term investments Investments in wealth management products 437,279,026 437,279,026 Investments in equity securities Equity securities with readily determinable fair value 207,007,926 207,007,926 Long-term investments Equity securities with readily determinable fair value 262,833,287 262,833,287 Accrued expenses and other current liabilities Payables for contingent consideration from acquisition of Urban Hotel Group 4,027,207 4,027,207 914,480,867 469,841,213 437,279,026 7,360,628 Fair Value Measurements at Reporting Date Using Description As of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 1,833,421 1,833,421 Short-term investments Investments in wealth management products 201,983,182 201,983,182 Investments in equity securities Equity securities with readily determinable fair value 242,378,696 242,378,696 Long-term investments Equity securities with readily determinable fair value 236,812,140 236,812,140 Available-for-sale debt investment 103,701,474 103,701,474 Accrued Expenses and other current liabilities Payables for contingent consideration from acquisition of Urban Hotel Group 525,685 525,685 787,234,598 479,190,836 305,684,656 2,359,106 Fair value (Continued) Reconciliations of assets and liabilities categorized within Level 3 under the fair value hierarchy are as follows: Returnable consideration Payables for contingent consideration Available-for- sale debt investment December 31, 2019 3,333,421 4,027,207 - Addition - - 103,701,474 Net unrealized fair value increase recognized in earnings (1,500,000 ) 546,065 - Payment - (4,047,587 ) - December 31, 2020 1,833,421 525,685 103,701,474 December 31, 2020 (USD) 280,984 80,565 15,892,946 Assets Measured at Fair Value on a non-recurring basis 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. Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value adjustment Impairment RMB RMB RMB RMB RMB RMB Fair value measurements on a non-recurring basis As of December 31, 2019 Long-term investments – Equity securities without readily determinable fair values 8,523,212 8,523,212 8,223,212 As of December 31, 2020 Long-term investments – Equity securities without readily determinable fair values 3,523,212 3,523,212 5,000,000 |
Comprehensive Income | Comprehensive income Comprehensive income is defined as the increase 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 gain of the Group includes the foreign currency translation adjustments. |
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. |
Comparative information | Comparative information Certain of the prior year comparative figures have been reclassified to conform to the current year’s presentation. |
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, RMB22,289,686, RMB28,700,397 and RMB25,666,575 (USD3,933,575) for the years ended December 31, 2018, 2019 and 2020, 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 EPS 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, 2019, the Group had RMB267,063,036, RMB72,645,289, RMB410,523 and RMB165,850 held in cash and bank deposits by entity located in the Mainland China, Cayman Island, Hong Kong, and Japan, respectively. As of December 31, 2020, the Group had RMB434,229,811 (USD66,548,630), RMB196,456,442 (USD30,108,267), RMB185,772 (USD28,471) and RMB1,183,983 (USD181,453) held in cash and bank deposits by entity located in the Mainland China, Cayman Island, Hong Kong and Japan, 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Concentration of credit risk (Continued) 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, 2018, 2019 and 2020, there were RMB106,549,431, RMB239,515,622 and RMB394,948,617 (USD60,528,524) 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. During the years ended December 31, 2018, 2019 and 2020, the Group recognized an allowance of doubtful debts of nil, RMB15,000,000 and RMB18,000,000 (USD2,758,620), respectively. |
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 depreciation of the USD against the RMB was approximately 6.27% in 2020. 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, 2018 and 2019, the net foreign currency translation gain resulting from the translation from USD to RMB reporting currency recorded in other comprehensive income was RMB66,453,841, RMB2,933,162, respectively. For the years ended December 31, 2020, the net foreign currency translation loss recorded RMB19,714,207 (USD3,021,335). |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements As a company with less than USD1.07 billion in revenue for the last fiscal year, the company qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Company has adopted the extended transition period. Adopted Accounting Standards The Group adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement on 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases, or ASU 2016-02, which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, or ASU 2018-10, to supersede ASU 2016-02. In addition, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements that provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). Subsequently, FASB issued Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of our portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In November 2019, FASB issued ASU 2019-10 to delay the effective date of this standard for private companies. The amendments in this ASU are effective for the Group beginning January 1, 2023 including interim periods within the fiscal year. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for the Group for the annual reporting periods beginning January 1, 2022 and interim periods beginning January 1, 2023. Early adoption is permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities Investments-Equity Method and Joint Ventures Derivatives and Hedging |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Group's Major Direct and Indirect Subsidiaries of Investments | 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, 2020: Major subsidiaries Percentage of Ownership Date of Incorporation, Merger or Acquisition Place of Incorporation Major 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. 100 % October 20, 2011 PRC Information (“Shanghai Evergreen”) 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 Argyle Beijing 60 % April 1, 2019 PRC Hotel management Shandong Xinghui 70 % November 30,2019 PRC Hotel management |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization 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 Property and equipment, net consists of the following: As of December 31, 2019 2020 2020 RMB RMB USD Buildings 543,500,662 544,298,466 83,417,390 Leasehold improvements 289,710,814 384,266,061 58,891,350 Furniture, fixtures and equipment 57,302,434 77,605,170 11,893,513 Motor vehicles 2,912,805 2,909,387 445,883 Total 893,426,715 1,009,079,084 154,648,136 Less: Accumulated depreciation (295,096,805 ) (353,833,524 ) (54,227,360 ) 598,329,910 655,245,560 100,420,776 Construction in progress 16,606,595 13,360,101 2,047,525 Property and equipment, net 614,936,505 668,605,661 102,468,301 |
Amortization of Intangible Assets, Estimated Useful Lives | 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 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value | The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2019 and 2020 on a recurring basis: Fair Value Measurements at Reporting Date Using Description As of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 3,333,421 3,333,421 Short-term investments Investments in wealth management products 437,279,026 437,279,026 Investments in equity securities Equity securities with readily determinable fair value 207,007,926 207,007,926 Long-term investments Equity securities with readily determinable fair value 262,833,287 262,833,287 Accrued expenses and other current liabilities Payables for contingent consideration from acquisition of Urban Hotel Group 4,027,207 4,027,207 914,480,867 469,841,213 437,279,026 7,360,628 Fair Value Measurements at Reporting Date Using Description As of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 1,833,421 1,833,421 Short-term investments Investments in wealth management products 201,983,182 201,983,182 Investments in equity securities Equity securities with readily determinable fair value 242,378,696 242,378,696 Long-term investments Equity securities with readily determinable fair value 236,812,140 236,812,140 Available-for-sale debt investment 103,701,474 103,701,474 Accrued Expenses and other current liabilities Payables for contingent consideration from acquisition of Urban Hotel Group 525,685 525,685 787,234,598 479,190,836 305,684,656 2,359,106 |
Reconciliations of Assets And Liabilities Under Fair Value Hierarchy | Reconciliations of assets and liabilities categorized within Level 3 under the fair value hierarchy are as follows: Returnable consideration Payables for contingent consideration Available-for- sale debt investment December 31, 2019 3,333,421 4,027,207 - Addition - - 103,701,474 Net unrealized fair value increase recognized in earnings (1,500,000 ) 546,065 - Payment - (4,047,587 ) - December 31, 2020 1,833,421 525,685 103,701,474 December 31, 2020 (USD) 280,984 80,565 15,892,946 |
Assets Measured at Fair Value on Non-Recurring Basis | Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value adjustment Impairment RMB RMB RMB RMB RMB RMB Fair value measurements on a non-recurring basis As of December 31, 2019 Long-term investments – Equity securities without readily determinable fair values 8,523,212 8,523,212 8,223,212 As of December 31, 2020 Long-term investments – Equity securities without readily determinable fair values 3,523,212 3,523,212 5,000,000 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Argyle Group | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets 3,777,860 Property and equipment 1,013,378 3 - 17 years Intangible assets Purchased software 669,206 4 - 7 years Trademark 230,500,000 Indefinite life Goodwill 42,198,903 Current liabilities (7,618,079) ) Deferred tax liabilities (57,625,000) ) Non current liabilities (15,642,000) ) Noncontrolling interest (70,455,096) ) Total 126,819,172 |
Urban Hotel Group | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets (i) 50,482,296 Property and equipment 6,913,189 3 - 10 years Intangible assets Favorable leases 20,100,000 Remaining lease terms Trademark 212,800,000 Indefinite life Purchased software 34,739 2 years Deferred tax assets 4,000,000 Other assets 4,537,000 Goodwill 49,037,577 Current liabilities (19,831,341) ) Non current liabilities (11,517,000) ) Deferred tax liabilities (58,225,000) ) Noncontrolling interest (67,981,964) ) Total 190,349,496 (i) Current assets acquired primarily included cash and cash equivalent of RMB28,162,864, other receivables of RMB16,928,966 and accounts receivable of RMB5,116,320. |
2018 Business Combinations | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2018 Amortization Period Current assets (i) 11,520,969 Property and equipment 32,618,088 3 - 17 years Intangible assets Favorable leases 20,095,000 Remaining lease terms Trademark 1,530,000 Remaining beneficial period Goodwill 2,827,885 Current liabilities (18,636,959 ) Deferred tax liabilities (5,406,250 ) Noncontrolling interest (8,509,857 ) Total 36,038,876 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Type of Services | The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Leased and operated hotels revenue 212,671,930 253,420,676 227,074,041 34,800,619 Franchise and managed hotels revenues 692,942,739 831,340,340 677,480,818 103,828,478 Initial franchise fee 42,806,330 54,930,266 61,051,369 9,356,532 Continuing franchise fees 650,136,409 776,410,074 616,429,449 94,471,946 Others - 7,032,119 25,455,237 3,901,186 Total 905,614,669 1,091,793,135 930,010,096 142,530,283 |
Summary of Contract Liabilities | 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, 2019 2020 2020 RMB RMB USD Advance from customers 40,105,627 34,305,508 5,257,549 Deferred revenue-current 231,925,272 221,314,997 33,918,007 Deferred revenue-non current 410,807,248 361,901,369 55,463,811 Total contract liabilities 682,838,147 617,521,874 94,639,367 |
Schedule of Components of Deferred Revenue | The deferred revenue balances above, as of December 31, 2019 and 2020 were comprised of the following: Years Ended December 31, 2019 2020 2020 RMB RMB USD Initial fees received from franchisees owners 295,443,732 280,478,697 42,985,241 Cash received for membership fees and not recognized as revenue 257,351,279 215,009,108 32,951,587 Cash received for prepaid card and sublease 58,075,704 48,137,090 7,377,332 Deferred revenue related to the membership program 31,861,805 39,591,471 6,067,658 Total contract liabilities 642,732,520 583,216,366 89,381,818 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loans Receivable, Net | Loans receivable, net is comprised of the following: As of December 31, 2019 2020 2020 RMB RMB USD Loans receivable, current portion Franchisees 79,572,201 191,687,640 29,377,416 Third parties 17,740,000 48,556,989 7,441,684 Less: bad debt provision (15,000,000 ) (18,000,000 ) (2,758,620 ) Total 82,312,201 222,244,629 34,060,480 Loans receivable, non-current portion Franchisees 113,963,742 121,460,977 18,614,709 Third parties 7,600,000 24,243,011 3,715,404 121,563,742 145,703,988 22,330,113 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization 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 Property and equipment, net consists of the following: As of December 31, 2019 2020 2020 RMB RMB USD Buildings 543,500,662 544,298,466 83,417,390 Leasehold improvements 289,710,814 384,266,061 58,891,350 Furniture, fixtures and equipment 57,302,434 77,605,170 11,893,513 Motor vehicles 2,912,805 2,909,387 445,883 Total 893,426,715 1,009,079,084 154,648,136 Less: Accumulated depreciation (295,096,805 ) (353,833,524 ) (54,227,360 ) 598,329,910 655,245,560 100,420,776 Construction in progress 16,606,595 13,360,101 2,047,525 Property and equipment, net 614,936,505 668,605,661 102,468,301 |
Schedule of Depreciation Expense | Depreciation expense was RMB23,919,015, RMB37,340,304 and RMB59,719,534 (USD9,152,419) for the years ended December 31, 2018, 2019 and 2020, respectively, and were included in the following captions: For the years ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Hotel operating costs 21,313,405 31,671,274 50,324,493 7,712,566 General and administrative costs 2,605,610 5,669,030 9,395,041 1,439,853 Total 23,919,015 37,340,304 59,719,534 9,152,419 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2019 2020 2020 RMB RMB USD Intangible assets with indefinite life: Trademark 443,300,000 443,300,000 67,938,697 Intangible assets with definite life: Trademark 4,724,493 4,724,493 724,060 Technology 4,200,000 4,200,000 643,678 Network rights 390,317 390,317 59,819 Purchased software 14,339,844 15,227,737 2,333,753 Reacquired rights 2,531,418 2,531,418 387,957 Favorable leases 41,600,548 42,095,848 6,451,471 Others 435,185 435,185 66,695 Total 511,521,805 512,904,998 78,606,130 Less: Accumulated amortization (15,241,489 ) (21,391,925 ) (3,278,456 ) Total. 496,280,316 491,513,073 75,327,674 |
Schedule of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2021 5,183,779 794,449 2022 5,231,146 801,708 2023 4,852,963 743,749 2024 4,718,766 723,183 2025 4,292,118 657,796 Thereafter 23,934,301 3,668,092 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 were as follows: For the years ended December 31, 2019 2020 2020 RMB RMB USD Balance as of January 1 5,787,068 100,078,236 15,337,660 Acquisitions 94,291,168 153,251 23,487 Balance as of December 31 100,078,236 100,231,487 15,361,147 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Investments [Abstract] | |
Schedule of Long-Term Investments | As at December 31, 2019 and 2020, long-term investments consisted of the following: As of December 31, 2019 2020 2020 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. 23,579,728 24,489,092 3,753,117 Other - 1,000,000 153,257 Equity securities with readily determinable fair values China Gingko Education Group Company Limited 70,193,934 56,354,913 8,636,768 Zhejiang New Century Hotel Management Co., Ltd. 192,639,353 180,457,226 27,656,280 Equity securities without readily determinable fair values Yibon Hotel Group Co., Ltd ("Yibon") 103,701,474 - - Other 8,523,212 3,523,212 539,956 Available-for-sale debt investment Yibon - 103,701,474 15,892,946 Total 398,637,701 369,525,917 56,632,324 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets | As of December 31, 2019 2020 2020 RMB RMB USD Acquisition deposits 38,869,400 8,216,700 1,259,265 Rental deposit 6,685,000 7,410,000 1,135,632 Interest receivable 17,326,910 33,772,617 5,175,880 Returnable consideration from the acquisition of Urban Hotel Group 3,333,421 1,833,421 280,984 Others 10,743,261 15,402,656 2,360,561 Total 76,957,992 66,635,394 10,212,322 |
Short-Term Bank Loans (Tables)
Short-Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Borrowings [Abstract] | |
Schedule of Short-term Debt | As of December 31, 2019 2020 2020 RMB RMB USD Short-term bank loans 60,000,000 150,000,000 22,988,506 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2019 2020 2020 RMB RMB USD Other payables 210,561,540 197,643,431 30,290,181 Business taxes and related tax surcharge 64,345,243 78,300,960 12,000,147 Accrued rental 2,250,443 20,675,146 3,168,605 Consideration payables for acquisitions 16,776,500 309,500 47,433 Accrued utilities 2,306,796 2,307,672 353,667 Other accrued expenses 2,180,632 934,279 143,184 Payables for contingent consideration 4,027,207 525,685 80,565 Total 302,448,361 300,696,673 46,083,782 |
Hotel Operating Costs (Tables)
Hotel Operating Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Expenses [Abstract] | |
Schedule Of 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, 2018 2019 2020 2020 RMB RMB RMB USD Rental 76,055,484 79,597,408 118,295,183 18,129,530 Utilities 19,264,487 19,119,300 15,372,385 2,355,921 Personnel cost 33,715,007 38,277,298 41,330,758 6,334,216 Depreciation and amortization 21,313,405 34,727,153 50,324,493 7,712,566 Consumable, food and beverage 19,275,688 32,337,115 43,257,796 6,629,547 Costs of hotel manager of franchised-and-managed hotels 70,480,306 96,565,044 91,664,745 14,048,237 Other costs of franchised-and-managed hotels 22,353,424 29,192,923 22,985,917 3,522,746 Others 11,961,462 9,010,238 9,291,029 1,423,912 Total 274,419,263 338,826,479 392,522,306 60,156,675 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Share Options | The fair value of share options was estimated using the following significant assumptions: Granted in 2018 Granted in 2019 Risk-free interest rate 2.42 % 1.60%-2.60% Volatility 34.00 % 35.66%-37.98% Dividend yield - 2.5 % Life of option 6 years 6 years |
Summary of Share Option Activity Under Option Plans | The following table summarized the Group’s share option activity under the option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value USD Years USD Share options outstanding at December 31, 2019 1,022,000 12.28 3.96 - Granted - N/A Exercised - N/A Forfeited (14,000 ) 12.57 Expired (17,000 ) 12.00 Share options outstanding at December 31, 2020 991,000 12.27 3.13 1,257,200 Vested and expected to vest at December 31, 2020 991,000 12.27 3.13 1,257,200 Exercisable as of December 31, 2020 497,750 12.27 3.12 631,750 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Current and Deferred Components of Income Tax Expense | The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Current tax 153,947,310 197,233,190 122,931,256 18,840,039 Deferred tax (1,228,642 ) (7,665,373 ) (12,472,054 ) (1,911,426 ) Total 152,718,668 189,567,817 110,459,202 16,928,613 |
Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31 2018 2019 2020 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 4 % 3 % 0 % Effect of international rate difference (1 %) 0 % 1 % Effect of preferential tax rate (3 %) (5 %) 0 % Tax effect of expenses that are not deductible in determining taxable profit 4 % 7 % 5 % Effective tax rate 29 % 30 % 31 % |
Components of Deferred Income Tax Assets and Liabilities | The principal components of the Group’s deferred income tax assets and liabilities as of December 31, As of December 31, 2019 2020 2020 RMB RMB USD Deferred tax assets: Net loss carryforward 15,741,149 22,229,252 3,406,782 Deferred revenue 146,046,006 132,881,621 20,365,000 Deferred rent 5,683,389 7,499,776 1,149,391 Bad debt expenses 5,268,134 7,622,390 1,168,182 Accrued expenses 7,368,561 15,971,223 2,447,697 Unrealised losses from equity securities - 5,213,960 799,074 Valuation allowance (19,619,046 ) (24,186,707 ) (3,706,775 ) Total deferred tax assets 160,488,193 167,231,515 25,629,351 Deferred tax liabilities: Depreciation of property and equipment (3,864,132 ) (3,990,387 ) (611,554 ) Unrealized gains from equity securities (4,304,431 ) (805,803 ) (123,495 ) Intangible assets arising from acquisition (143,943,382 ) (141,587,024 ) (21,699,161 ) Withholding tax on PRC earnings to be distributed (43,191,602 ) (43,191,602 ) (6,619,402 ) Total deferred tax liabilities (195,303,547 ) (189,574,816 ) (29,053,612 ) |
Schedule of Unrecognized Tax Benefits | Unrecognized tax benefits — January 1, 2019 169,619,409 Increases — tax positions in the current period 104,031,858 Decreases — tax positions in prior period (12,009,550 ) Unrecognized tax benefits — December 31, 2019 261,641,717 Unrecognized tax benefits — January 1, 2020 261,641,717 Increases — tax positions in the current period 37,621,483 Decreases — tax positions in prior period (8,583,298 ) Unrecognized tax benefits — December 31, 2020 290,679,902 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions or Balances with the Group | The related parties that had transactions or balances with the Group in 2018, 2019 and 2020 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 Vice president, human resources and administration of the Group 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 Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) * Catering management Controlled by GTI Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) 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 TB** Franchised hotels Former Equity investee of the Group Yancheng Zexin Hotel Co., Ltd Hotel management Former Equity investee of the Group * Aotao became a related party as it was acquired by a company controlled by GTI in January 2019. Shiquanmeiwei is also included in Aotao in 2019 and 2020. ** TB ceased to be related party due to liquidation in August 2019. *** As the Group acquired Ze Xin on July 1, 2018, Ze Xin was included as a subsidiary of the Group and ceased to be a related party. |
Schedule of Related Party Balances | (a) Related party balances Due from related parties: As of December 31, 2019 2020 2020 RMB RMB USD Current: Yibon 722,114 9,101,161 1,394,814 Napa . 2,506,484 500,000 76,628 Aotao 20,086,504 122,719 18,807 JYHM - 46,991 7,202 GTI 8,424,629 - - 31,739,731 9,770,871 1,497,451 Due to related parties: As of December 31, 2019 2020 2020 RMB RMB USD Current: Yibon 3,205,890 1,995,465 305,819 Napa - 1,120,826 171,774 Da Niang Group - 54,000 8,276 JYHM 312,141 27,962 4,285 3,518,031 3,198,253 490,154 |
Schedule of Related Party Transactions | (b) Related party transactions During the years ended December 31, 2018, 2019 and 2020, related party transactions consisted of the following: Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Loan to Aotao - (167,279,750 ) (479,356,500 ) (73,464,598 ) Repayment from Aotao - 157,279,750 499,421,550 76,539,701 Advertising service from Aotao - - (3,920,000 ) (600,766 ) Interest income from Aotao - 1,316,854 2,316,856 355,074 Franchise management fee to Aotao - (24,941 ) (41,867 ) (6,416 ) Loan to Da Niang Group - (274,800,000 ) (40,000,000 ) (6,130,268 ) Repayment from Da Niang Group - 274,800,000 40,000,000 6,130,268 Interest income from Da Niang Group - 875,315 352,882 54,081 Service purchased from Da Niang Group - (339,121 ) (724,045 ) (110,965 ) Sublease revenue from Da Niang Group - - 36,000 5,517 Sublease revenue from JYHM - 385,355 284,179 43,552 Service purchased from JYHM - (18,418 ) (40,000 ) (6,130 ) Advance from JYHM 221,028 312,141 - - Loan to GTI - (192,558,675 ) - - Repayment from GTI 1,717,539 184,134,046 8,424,629 1,291,131 Interest income from GTI - 907,880 - - Purchase from Napa - (3,576,659 ) (2,059,566 ) (315,642 ) Revenue from Napa - 2,358,491 - - Loan to Yibon - - (9,000,000 ) (1,379,310 ) Franchised revenue from Yibon - 681,239 852,287 130,619 Interest income from Yibon - - 18,667,117 2,860,861 Franchised revenue from TB 389,583 - - - Advance to Shiquanmeiwei (3,600 ) - - - Franchised revenue from Ze Xin 44,763 - - - Loan to Ze Xin (4,300,000 ) - - - Interest income from Ze Xin 263,366 - - - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements | Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2020 were as follows: Year Ended December 31, 2020 2020 RMB USD 2021 130,695,728 20,029,997 2022 116,028,562 17,782,155 2023 111,252,708 17,050,223 2024 100,695,245 15,432,221 2025 92,812,089 14,224,075 Thereafter 482,651,095 73,969,517 Total 1,034,135,427 158,488,188 |
Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants | At 31 December 2020, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2020 2020 RMB USD 2021 92,929,728 14,242,104 2022 77,561,287 11,886,787 2023 72,750,642 11,149,524 2024 67,048,084 10,275,568 2025 63,861,746 9,787,241 Thereafter 299,068,165 45,834,202 Total 673,219,652 103,175,426 |
Earnings Per Share (Table)
Earnings Per Share (Table) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 371,711,219 442,718,263 261,344,391 40,052,780 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 62,860,578 67,315,727 68,286,954 68,286,954 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 36,288,343 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings — basic and diluted: To Class A Shares 235,665,522 291,950,431 173,182,301 26,541,349 To Class B Shares 136,045,697 150,767,832 88,162,090 13,511,431 Basic and diluted earnings per share: To Class A Shares 3.75 4.34 2.54 0.39 To Class B Shares 3.75 4.34 2.54 0.39 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, 2019 2020 2020 RMB RMB USD ASSETS Current assets Cash and cash equivalents 22,137,640 193,351,177 29,632,364 Investments in equity securities - 65,420,098 10,026,069 Amounts due from subsidiaries 6,271,868 14,683,443 2,250,336 Amounts due from a related party 8,424,629 - - Other current assets 2,416,728 1,356,058 207,825 Total current assets 39,250,865 274,810,776 42,116,594 Non-current assets: Investments in subsidiaries 1,577,484,393 1,852,091,157 283,845,388 Equity securities with readily determinable fair values 262,833,287 236,812,139 36,293,048 TOTAL ASSETS 1,879,568,545 2,363,714,072 362,255,030 LIABILITIES AND EQUITY Current liabilities: Other payable 6,000,000 - - Amounts due to subsidiaries 4,924,176 248,360,177 38,062,862 Other long-term liabilities 7,475,856 12,322,640 1,888,527 Total liabilities 18,400,032 260,682,817 39,951,389 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000, 400,000,000 and 400,000,000 shares authorized as of December 31, 2018, 2019 and 2020; 66,789,300, 67,416,046 and 68,286,954 shares issued and outstanding as of December 31, 2018, 2019 and 2020, respectively) 219,526,699 222,587,070 34,112,961 Class B ordinary shares (USD0.50 par value per share; 100,000,000 , 100,000,000 and 100,000,000 shares authorized as of December 31, 2018, 2019 and 2020; 34,762,909, 34,762,909 and 34,762,909 shares issued and outstanding as of December 31, 2018, 2019 and 2020, respectively) 115,534,210 115,534,210 17,706,392 Additional paid-in capital 1,152,108,217 1,149,280,404 176,134,928 Retained earnings 308,698,533 570,042,924 87,362,900 Accumulated other comprehensive income 65,300,854 45,586,647 6,986,460 Total Shareholders’ Equity 1,861,168,513 2,103,031,255 322,303,641 TOTAL LIABILITIES AND EQUITY 1,879,568,545 2,363,714,072 362,255,030 |
Condensed Statements of Operations | 23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD General and administrative expenses (1,307,753 ) (33,538,433 ) (9,967,834 ) (1,527,638 ) interest income 13,785,679 5,970,063 8,173 1,253 Interest expense – (646,315 ) – – (Losses) Gains on investments in equity securities – 6,473,358 (11,392,623 ) (1,745,996 ) Share of profit in subsidiaries, net (Note a) 359,233,293 464,459,590 282,696,675 43,325,161 Income before tax and net income 371,711,219 442,718,263 261,344,391 40,052,780 Other comprehensive income, net of tax - Foreign currency translation adjustments 66,453,841 2,933,162 (19,714,207 ) (3,021,335 ) Comprehensive income 438,165,060 445,651,425 241,630,184 37,031,445 |
Condensed Statements of Cash Flows | Condensed statements of cash flows Year Ended December 31, 2018 2019 2020 2020 RMB RMB RMB USD Operating activities: Net income 371,711,219 442,718,263 261,344,391 40,052,780 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation 1,307,753 26,490,395 232,558 35,641 (Gains) Losses from investments in equity securities - (6,473,358 ) 11,392,623 1,745,996 Share of profit in subsidiaries, net (359,233,293 ) (464,459,590 ) (282,696,675 ) (43,325,161 ) Changes in operating assets and liabilities: Other current assets (4,117,311 ) 1,700,582 1,060,670 162,555 Amounts due from subsidiaries - (6,271,868 ) (8,411,575 ) (1,289,130 ) Amounts due to subsidiaries 7,090,700 (2,166,524 ) 243,436,001 37,308,199 Other long-term liabilities - 7,475,856 4,846,781 742,802 Net cash provided by (used in) operating activities 16,759,068 (986,244 ) 231,204,774 35,433,682 Investing activities: Advances for acquisitions (6,875,561 ) - - - Payment for acquisitions - (52,903,471 ) (6,041,736 ) (925,937 ) Investment to subsidiaries - (2,938,656 ) (2,938,656 ) (450,369 ) Purchases of investments in equity securities - (247,415,003 ) (65,114,997 ) (9,979,309 ) Loan to a related party - (192,558,675 ) - - Repayment from a related party - 26,672,779 8,424,629 1,291,131 Net cash used in investing activities (6,875,561 ) (469,143,026 ) (65,670,760 ) (10,064,484 ) Financing activities: Proceeds from issuance of Class A ordinary shares (note 1) 837,505,007 - - - Payment for initial public offering costs (30,827,578 ) - - - Distribution to the shareholders (note 1) (200,532,021 ) (226,951,236 ) - - Dividends from subsidiaries 39,691,103 - - - Net cash generated from (used in) financing activities 645,836,511 (226,951,236 ) - - Effect of exchange rate changes on cash and cash equivalents and restricted cash 65,853,475 (2,355,347 ) 5,679,523 870,425 Net increase (decrease) in cash and cash equivalents and restricted cash 721,573,493 (699,435,853 ) 171,213,537 26,239,623 Cash and cash equivalents and restricted cash at beginning of the year - 721,573,493 22,137,640 3,392,742 Cash and cash equivalents and restricted cash at end of the year 721,573,493 22,137,640 193,351,177 29,632,364 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) | Jan. 15, 2020shares | Jun. 27, 2019shares | Jan. 25, 2019shares | Mar. 27, 2018CNY (¥)shares | Mar. 27, 2018USD ($)$ / sharesshares | Mar. 11, 2018shares | Dec. 31, 2019CNY (¥) | Jan. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2020shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017shares | Nov. 30, 2019 | Jun. 03, 2019 | Apr. 04, 2019 |
Organization And Principal Activities [Line Items] | ||||||||||||||||
Entity incorporation date | Oct. 18, 2017 | |||||||||||||||
Proceeds from issuance of shares | ¥ | ¥ 837,505,007 | |||||||||||||||
Payment for initial public offering costs | ¥ | ¥ 30,827,578 | |||||||||||||||
Business acquisition, equity interest acquired | 100.00% | |||||||||||||||
Leased And Operated Hotels | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease description | the Group typically receives rental holidays of three to six months and pays fixed rent on a quarterly or semi-annual basis for the first three or five years of the lease term, afterwhich the rental payments may be subject to an increase every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term. | |||||||||||||||
Frequency of fixed rent payment | quarterly or semi-annual | |||||||||||||||
Leased And Operated Hotels | Minimum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 10 years | |||||||||||||||
Rental holidays receivable term | 3 months | |||||||||||||||
Fixed rent payable term | 3 years | |||||||||||||||
Period subject to increase in rent value | 3 years | |||||||||||||||
Leased And Operated Hotels | Maximum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 20 years | |||||||||||||||
Rental holidays receivable term | 6 months | |||||||||||||||
Fixed rent payable term | 5 years | |||||||||||||||
Period subject to increase in rent value | 5 years | |||||||||||||||
Franchised And Managed Hotels | Minimum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 5 years | |||||||||||||||
Franchised And Managed Hotels | Maximum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 20 years | |||||||||||||||
Argyle Beijing | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 60.00% | 60.00% | ||||||||||||||
Shandong Xinghui | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Initial Public Offering | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Payment for initial public offering costs | ¥ | ¥ 30,827,578 | |||||||||||||||
Class B Ordinary Shares to Class A Ordinary Shares | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Number of shares were redesignated | 7,594,048 | |||||||||||||||
GreenTree Inns Hotel Management Group, Inc. | Dividend Declared | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Cash dividend | ¥ 25,544,739 | $ 30,559,675 | $ 25,578,618 | $ 25,578,618 | ||||||||||||
Common Class A | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 870,908 | |||||||||||||||
Common Class A | Argyle Beijing | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 626,746 | 626,746 | ||||||||||||||
Common Class A | Shandong Xinghui | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 870,908 | |||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Common Class A | Initial Public Offering | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Stock issued during period | 10,200,000 | 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 [Line Items] | ||||||||||||||||
Shares issued for services contributed by founders | 48,635,252 | |||||||||||||||
Common Class B | GreenTree Inns Hotel Management Group, Inc. | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Shares issued for services contributed by founders | 42,716,957 | |||||||||||||||
Alex S. Xu (CEO) | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Percentage of ownership interest hold by founder | 78.19% |
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, 2020 | |
Organization And Principal Activities [Line Items] | |
Entity incorporation date | Oct. 18, 2017 |
Entity Incorporation, State or Country Code | E9 |
GreenTree Inns Hotel (Shanghai) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 9, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Hexie (Changzhou) Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 2, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Zhejiang) Management, Inc | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Apr. 22, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Suites | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | E9 |
Major Operation | Investment holding |
PHI | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Inns Hotel Management Group, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 17, 2011 |
Entity Incorporation, State or Country Code | K3 |
Major Operation | Investment holding |
Shanghai Evergreen Technology Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 7, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Investment holding |
Yancheng Ruixin Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Jun. 5, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Jingjia Hotel Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
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 [Line Items] | |
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 [Line Items] | |
Percentage of Ownership | 51.00% |
Entity incorporation date | Jul. 1, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Foshan Baiqinghui Hotel Management Co,.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
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 [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 5, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Banyan Hotel (Xuzhou) Co.Ltd | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 3, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Argyle Beijing | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 60.00% |
Entity incorporation date | Apr. 1, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shandong Xinghui | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Nov. 30, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)SegmentTier | Dec. 31, 2020USD ($)SegmentTier | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | May 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||||
Unrealized gains from long-term time deposit | ¥ 19,880,287 | $ 3,046,787 | ¥ 16,897,702 | |||
Equity securities, realized gains | 4,746,032 | 727,361 | 4,674,446 | |||
Impairment loss | 5,000,000 | 766,284 | ||||
Interest income recognized in earnings | ¥ 18,667,117 | $ 2,860,861 | ||||
Number of reporting unit | Segment | 1 | 1 | ||||
Impairment of goodwill | ¥ 0 | $ 0 | 0 | 0 | ||
Impairment of long-lived assets | 5,008,677 | |||||
Sublease rental revenue | 77,676,665 | 11,904,470 | 74,893,930 | 53,852,195 | ||
Hotel manager fees | ¥ 112,729,886 | $ 17,276,611 | 115,638,242 | 99,185,965 | ||
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 | 6.00% | |||||
Advertising and promotional expenses | ¥ 38,934,867 | $ 5,967,029 | 23,934,351 | 15,654,573 | ||
Government subsidies | 20,094,745 | 3,079,654 | 9,880,735 | 15,150,107 | ||
Operating lease rental expenses | 122,590,230 | 18,787,775 | 81,379,034 | 78,272,335 | ||
Employee benefits | 25,666,575 | 3,933,575 | 28,700,397 | 22,289,686 | ||
Loans receivable, allowance | 18,000,000 | 15,000,000 | $ 2,758,620 | |||
Foreign currency translation adjustments | (19,714,207) | (3,021,335) | 2,933,162 | 66,453,841 | ||
Revenues | ¥ 930,010,096 | $ 142,530,283 | 1,091,793,135 | 905,614,669 | ||
Change in accounting principle, accounting standards update, adopted | true | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201813Member | us-gaap:AccountingStandardsUpdate201813Member | ||||
Loans Receivable | ||||||
Significant Accounting Policies [Line Items] | ||||||
Receivables outstanding | ¥ 394,948,617 | 239,515,622 | 106,549,431 | $ 60,528,524 | ||
Loans receivable, allowance | ¥ 18,000,000 | 15,000,000 | 2,758,620 | |||
Loans Receivable | Credit Concentration Risk | ||||||
Significant Accounting Policies [Line Items] | ||||||
Appreciation in functional currency | 6.27% | 6.27% | ||||
Mainland China | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | ¥ 434,229,811 | 267,063,036 | 66,548,630 | |||
Cayman Island | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | 196,456,442 | 72,645,289 | 30,108,267 | |||
Hong Kong | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | 185,772 | 410,523 | 28,471 | |||
Japan | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration of credit risk | ¥ 1,183,983 | 165,850 | $ 181,453 | |||
RMB | ||||||
Significant Accounting Policies [Line Items] | ||||||
Foreign currency exchange rate | 6.5250 | 6.5250 | ||||
HKD | ||||||
Significant Accounting Policies [Line Items] | ||||||
Foreign currency exchange rate | 7.7534 | 7.7534 | ||||
Other Operating Expenses | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment of long-lived assets | 5,008,677 | |||||
ASU 2016-01 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Equity securities, unrealized gain | 8,223,212 | |||||
Short-term Investments | ||||||
Significant Accounting Policies [Line Items] | ||||||
Equity securities, realized gains | ¥ 2,314,688 | $ 354,741 | 65,715,647 | 14,381,423 | ||
Equity securities, unrealized losses | 29,586,987 | 4,534,404 | 29,832,919 | ¥ 72,156,375 | ||
Long-term Investments | ||||||
Significant Accounting Policies [Line Items] | ||||||
Equity securities, unrealized gains (losses) | ¥ (9,247,254) | $ (1,417,204) | ¥ 6,473,358 | |||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated life of paid membership program | 3 years | 3 years | ||||
Long term, maturity period | 1 year | 1 year | ||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated life of paid membership program | 5 years | 5 years | ||||
Long term, maturity period | 3 years | 3 years | ||||
Revenues | $ | $ 1,070,000,000 |
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, 2020 | |
Leasehold Improvements | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives, description | Over the shorter of the lease term or estimated useful lives |
Buildings | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 20 years |
Furniture, Fixture and Equipment | Minimum | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 3 years |
Furniture, Fixture and Equipment | Maximum | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 5 years |
Motor Vehicles | |
Summary Of Principle Accounting Policies [Line Items] | |
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, 2020 | |
Trademark | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Intangible assets estimated useful lives, description | indefinite life |
Network Rights | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Technology | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Purchased Software | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Favorable Leases | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining lease term |
Reacquired Rights | |
Finite Lived Intangible Assets [Line Items] | |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments in equity securities - equity securities with readily determinable fair value… | ¥ 242,378,696 | $ 37,146,160 | ¥ 207,007,926 |
Fair Value, Recurring | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Other assets - returnable consideration from acquisition of Urban Hotel Group | 1,833,421 | 3,333,421 | |
Short-term investments - Investments in wealth management products | 201,983,182 | 437,279,026 | |
Investments in equity securities - equity securities with readily determinable fair value… | 242,378,696 | 207,007,926 | |
Long-term investments - equity securities with readily determinable fair value… | 236,812,140 | 262,833,287 | |
Long-term investments -available-for-sale debt investment | 103,701,474 | ||
Accrued expenses and other current liabilities - payables for contingent consideration from acquisition of Urban Hotel Group | 525,685 | 4,027,207 | |
Fair Value Measurements | 787,234,598 | 914,480,867 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments in equity securities - equity securities with readily determinable fair value… | 242,378,696 | 207,007,926 | |
Long-term investments - equity securities with readily determinable fair value… | 236,812,140 | 262,833,287 | |
Fair Value Measurements | 479,190,836 | 469,841,213 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Short-term investments - Investments in wealth management products | 201,983,182 | 437,279,026 | |
Long-term investments -available-for-sale debt investment | 103,701,474 | ||
Fair Value Measurements | 305,684,656 | 437,279,026 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Other assets - returnable consideration from acquisition of Urban Hotel Group | 1,833,421 | 280,984 | 3,333,421 |
Long-term investments -available-for-sale debt investment | 103,701,474 | 15,892,946 | |
Accrued expenses and other current liabilities - payables for contingent consideration from acquisition of Urban Hotel Group | 525,685 | $ 80,565 | 4,027,207 |
Fair Value Measurements | ¥ 2,359,106 | ¥ 7,360,628 |
Summary of Principal Accounti_8
Summary of Principal Accounting Policies - Reconciliations of Assets and Liabilities (Details) - 12 months ended Dec. 31, 2020 - Fair Value, Recurring | CNY (¥) | USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Returnable consideration, Beginning balance | ¥ 3,333,421 | |
Returnable consideration, Ending balance | 1,833,421 | |
Payables for contingent consideration, Beginning balance | 4,027,207 | |
Payables for contingent consideration, Ending balance | 525,685 | |
Available-for-sale debt investment, Ending balance | 103,701,474 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Returnable consideration, Beginning balance | 3,333,421 | |
Returnable consideration, Net unrealized fair value increase recognized in earnings | (1,500,000) | |
Returnable consideration, Ending balance | 1,833,421 | $ 280,984 |
Payables for contingent consideration, Beginning balance | 4,027,207 | |
Payables for contingent consideration, Net unrealized fair value increase recognized in earnings | 546,065 | |
Payables for contingent consideration, Payment | (4,047,587) | |
Payables for contingent consideration, Ending balance | 525,685 | 80,565 |
Available-for-sale debt investment, Addition | 103,701,474 | |
Available-for-sale debt investment, Ending balance | ¥ 103,701,474 | $ 15,892,946 |
Summary of Principal Accounti_9
Summary of Principal Accounting Policies - Assets Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Nonrecurring - CNY (¥) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary Of Principle Accounting Policies [Line Items] | ||
Long-term investments – Equity securities without readily determinable fair values | ¥ 3,523,212 | ¥ 8,523,212 |
Fair value adjustment | 8,223,212 | |
Impairment | 5,000,000 | |
Significant Unobservable Inputs (Level 3) | ||
Summary Of Principle Accounting Policies [Line Items] | ||
Long-term investments – Equity securities without readily determinable fair values | ¥ 3,523,212 | ¥ 8,523,212 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | Nov. 30, 2019CNY (¥)shares | Nov. 30, 2019USD ($)shares | Jun. 03, 2019CNY (¥) | Apr. 04, 2019CNY (¥)shares | Jul. 01, 2018CNY (¥) | Aug. 31, 2019CNY (¥)Acquisition | Aug. 31, 2018CNY (¥) | Jul. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥)Acquisition | Dec. 31, 2020USD ($)Acquisition | Dec. 31, 2019CNY (¥)Acquisition | Dec. 31, 2018CNY (¥)Acquisition | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 01, 2019CNY (¥) | Jan. 31, 2015 |
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | ¥ 100,231,487 | ¥ 100,078,236 | ¥ 5,787,068 | $ 15,361,147 | $ 15,337,660 | |||||||||||
Business acquisition, equity interest acquired | 100.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 183,555,000 | |||||||||||||||
2020 Business Combinations | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 1 | 1 | ||||||||||||||
Business acquisition, Total consideration amount | ¥ 2,200,000 | $ 337,165 | ||||||||||||||
Goodwill | ¥ 153,251 | $ 23,487 | ||||||||||||||
2019 Business Combinations | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 4 | |||||||||||||||
Argyle Group | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, Total consideration amount | ¥ 126,819,172 | |||||||||||||||
Goodwill | ¥ 42,198,903 | |||||||||||||||
Business acquisition, shares issued | shares | 626,746 | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 65,779,032 | |||||||||||||||
Business acquisitions, net revenue of acquiree | ¥ 11,882,976 | |||||||||||||||
Business acquisitions, net loss of acquiree | ¥ 7,694,834 | |||||||||||||||
Business Combination, recognized identifiable current assets | ¥ 3,777,860 | |||||||||||||||
Argyle Beijing | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 60.00% | 60.00% | 60.00% | |||||||||||||
Urban Hotel Group | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, Total consideration amount | ¥ 190,349,496 | |||||||||||||||
Goodwill | ¥ 49,037,577 | |||||||||||||||
Business acquisition, shares issued | shares | 870,908 | 870,908 | ||||||||||||||
Business acquisition, cash consideration paid | ¥ 126,000,000 | |||||||||||||||
Business acquisition, returnable consideration | 3,333,421 | |||||||||||||||
Business acquisition, contingent consideration | 4,027,207 | |||||||||||||||
Business Combination, recognized identifiable current assets | 50,482,296 | |||||||||||||||
Urban Hotel Group | Maximum | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, estimated contingent consideration | ¥ 105,000,000 | |||||||||||||||
Business acquisition, estimated returnable consideration | $ | $ 69,000,000 | |||||||||||||||
Shandong Xinghui | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Others | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 1 | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 5,530,000 | |||||||||||||||
Business Combination, recognized identifiable current assets | ¥ 37,255,016 | |||||||||||||||
2018 Business Combinations | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, number of acquisitions completed | Acquisition | 4 | 4 | ||||||||||||||
Goodwill | ¥ 2,827,885 | |||||||||||||||
Business acquisitions, net revenue of acquiree | 14,148,551 | |||||||||||||||
Business acquisitions, net loss of acquiree | 332,960 | |||||||||||||||
Business Combination, recognized identifiable current assets | 11,520,969 | |||||||||||||||
2018 Business Combinations | General And Administrative Expenses | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business combination, acquisition related costs | ¥ 2,589,034 | |||||||||||||||
Yancheng Zexin Hotel Management Co., Ltd. | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 1.00% | 50.00% | ||||||||||||||
Business acquisition, cash consideration paid | ¥ 80,000 | |||||||||||||||
Business acquisition, acquisition closing date | Jul. 1, 2018 | |||||||||||||||
Business acquisition, total equity interest acquired | 51.00% | |||||||||||||||
Business acquisition, fair value of previously held equity interest | ¥ 333,000 | |||||||||||||||
Business acquisition, gain related to revaluation of previously held equity interest | ¥ 344,212 | |||||||||||||||
Hotel Chain, Acquired in July 2018 | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 100.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 10,000,000 | |||||||||||||||
Individual Hotel, Acquired in July 2018 | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 13,000,000 | |||||||||||||||
Individual Hotel, Acquired in August 2018 | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Business acquisition, cash consideration paid | ¥ 1,400,000 |
Business Combinations - Summary
Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities (Details) | Nov. 30, 2019CNY (¥) | Apr. 04, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Intangible assets | |||||||
Goodwill | ¥ 5,787,068 | ¥ 100,231,487 | $ 15,361,147 | ¥ 100,078,236 | $ 15,337,660 | ||
Argyle Group | |||||||
Business Acquisition [Line Items] | |||||||
Current assets | ¥ 3,777,860 | ||||||
Property and equipment | 1,013,378 | ||||||
Intangible assets | |||||||
Goodwill | 42,198,903 | ||||||
Current liabilities | (7,618,079) | ||||||
Deferred tax liabilities | (57,625,000) | ||||||
Non current liabilities | (15,642,000) | ||||||
Noncontrolling interest | (70,455,096) | ||||||
Total | ¥ 126,819,172 | ||||||
Argyle Group | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 3 years | ||||||
Argyle Group | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 17 years | ||||||
Argyle Group | Trademark | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 230,500,000 | ||||||
Amortization Period | Indefinite life | ||||||
Argyle Group | Purchased Software | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 669,206 | ||||||
Argyle Group | Purchased Software | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 4 years | ||||||
Argyle Group | Purchased Software | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 7 years | ||||||
Urban Hotel Group | |||||||
Business Acquisition [Line Items] | |||||||
Current assets | ¥ 50,482,296 | ||||||
Property and equipment | 6,913,189 | ||||||
Intangible assets | |||||||
Goodwill | 49,037,577 | ||||||
Current liabilities | (19,831,341) | ||||||
Deferred tax liabilities | (58,225,000) | ||||||
Non current liabilities | (11,517,000) | ||||||
Noncontrolling interest | (67,981,964) | ||||||
Total | 190,349,496 | ||||||
Deferred tax assets | 4,000,000 | ||||||
Other assets | ¥ 4,537,000 | ||||||
Urban Hotel Group | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 3 years | ||||||
Urban Hotel Group | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 10 years | ||||||
Urban Hotel Group | Trademark | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 212,800,000 | ||||||
Amortization Period | Indefinite life | ||||||
Urban Hotel Group | Favorable Leases | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 20,100,000 | ||||||
Amortization Period | Remaining lease terms | ||||||
Urban Hotel Group | Purchased Software | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 34,739 | ||||||
Amortization Period | 2 years | ||||||
2018 Business Combinations | |||||||
Business Acquisition [Line Items] | |||||||
Current assets | 11,520,969 | ||||||
Property and equipment | 32,618,088 | ||||||
Intangible assets | |||||||
Goodwill | 2,827,885 | ||||||
Current liabilities | (18,636,959) | ||||||
Deferred tax liabilities | (5,406,250) | ||||||
Noncontrolling interest | (8,509,857) | ||||||
Total | ¥ 36,038,876 | ||||||
2018 Business Combinations | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 3 years | ||||||
2018 Business Combinations | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 17 years | ||||||
2018 Business Combinations | Trademark | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 1,530,000 | ||||||
Amortization Period | Remaining beneficial period | ||||||
2018 Business Combinations | Favorable Leases | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 20,095,000 | ||||||
Amortization Period | Remaining lease terms |
Business Combinations - Summa_2
Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities (Parenthetical) (Details) - CNY (¥) | Nov. 30, 2019 | Dec. 31, 2018 |
Urban Hotel Group | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | ¥ 28,162,864 | |
Other receivables | 16,928,966 | |
Loans/accounts receivable | ¥ 5,116,320 | |
2018 Business Combinations | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | ¥ 1,177,106 | |
Other receivables | 1,438,641 | |
Loans/accounts receivable | ¥ 7,500,000 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | ¥ 930,010,096 | $ 142,530,283 | ¥ 1,091,793,135 | ¥ 905,614,669 |
Leased And Operated Hotels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 227,074,041 | 34,800,619 | 253,420,676 | 212,671,930 |
Franchise and Managed Hotels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 677,480,818 | 103,828,478 | 831,340,340 | 692,942,739 |
Initial Franchise Fee | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 61,051,369 | 9,356,532 | 54,930,266 | 42,806,330 |
Continuing Franchise Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 616,429,449 | 94,471,946 | 776,410,074 | ¥ 650,136,409 |
Others | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | ¥ 25,455,237 | $ 3,901,186 | ¥ 7,032,119 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Contract Liabilities (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Contract With Customer Asset And Liability [Abstract] | |||
Advance from customers | ¥ 34,305,508 | $ 5,257,549 | ¥ 40,105,627 |
Deferred revenue-current | 221,314,997 | 33,918,007 | 231,925,272 |
Deferred revenue-non current | 361,901,369 | 55,463,811 | 410,807,248 |
Total contract liabilities | ¥ 617,521,874 | $ 94,639,367 | ¥ 682,838,147 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Components of Deferred Revenue (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 583,216,366 | $ 89,381,818 | ¥ 642,732,520 |
Initial Franchise Fee | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 280,478,697 | 42,985,241 | 295,443,732 |
Membership Fees | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 215,009,108 | 32,951,587 | 257,351,279 |
Cash Received for Prepaid Card and Sublease | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 48,137,090 | 7,377,332 | 58,075,704 |
Greentree Reward Membership Program | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 39,591,471 | $ 6,067,658 | ¥ 31,861,805 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Contract liabilities, revenues recognized | ¥ 206,913,137 | $ 31,710,826 | ¥ 212,226,297 | $ 30,484,400 | |
Deferred revenues, expected to be recognized as revenues | 583,216,366 | 642,732,520 | $ 89,381,818 | ||
Initial Franchise Fee | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Deferred revenues, expected to be recognized as revenues | 280,478,697 | 295,443,732 | 42,985,241 | ||
Membership Fees | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Deferred revenues, expected to be recognized as revenues | 215,009,108 | 257,351,279 | 32,951,587 | ||
Greentree Reward Membership Program | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Deferred revenues, expected to be recognized as revenues | 39,591,471 | 31,861,805 | 6,067,658 | ||
Cash Received for Prepaid Card and Sublease | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Deferred revenues, expected to be recognized as revenues | ¥ 48,137,090 | ¥ 58,075,704 | $ 7,377,332 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | Dec. 31, 2020 |
Initial Franchise Fee | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 1 year |
Initial Franchise Fee | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 30 years |
Membership Fees | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 1 year |
Membership Fees | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 5 years |
Greentree Reward Membership Program | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 2 years |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Receivable, Net (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | ¥ 222,244,629 | $ 34,060,480 | ¥ 82,312,201 |
Less: bad debt provision | (18,000,000) | (2,758,620) | (15,000,000) |
Loans receivable, non-current portion | 145,703,988 | 22,330,113 | 121,563,742 |
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 191,687,640 | 29,377,416 | 79,572,201 |
Loans receivable, non-current portion | 121,460,977 | 18,614,709 | 113,963,742 |
Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 48,556,989 | 7,441,684 | 17,740,000 |
Less: bad debt provision | (18,000,000) | (2,758,620) | (15,000,000) |
Loans receivable, non-current portion | ¥ 24,243,011 | $ 3,715,404 | ¥ 7,600,000 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 4.60% | 4.60% | |
Loans receivable, allowance | ¥ 18,000,000 | $ 2,758,620 | ¥ 15,000,000 |
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 | ¥ 18,000,000 | $ 2,758,620 | ¥ 15,000,000 |
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 | 6 months | ||
Debt instrument, interest rate | 7.90% | 7.90% | |
Loan Agreement | Third Parties | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 2 years | ||
Debt instrument, interest rate | 12.00% | 12.00% |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 1,009,079,084 | $ 154,648,136 | ¥ 893,426,715 |
Less: Accumulated depreciation | (353,833,524) | (54,227,360) | (295,096,805) |
Net book value | 655,245,560 | 100,420,776 | 598,329,910 |
Construction in progress | 13,360,101 | 2,047,525 | 16,606,595 |
Property and equipment, net | 668,605,661 | 102,468,301 | 614,936,505 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 544,298,466 | 83,417,390 | 543,500,662 |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 384,266,061 | 58,891,350 | 289,710,814 |
Furniture, Fixture and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 77,605,170 | 11,893,513 | 57,302,434 |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 2,909,387 | $ 445,883 | ¥ 2,912,805 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) | Jun. 03, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Property Plant And Equipment [Line Items] | |||||
Business acquisition, equity interest acquired | 100.00% | ||||
Business acquisition, cash consideration paid | ¥ 183,555,000 | ||||
Depreciation expense | ¥ 59,719,534 | $ 9,152,419 | ¥ 37,340,304 | ¥ 23,919,015 | |
Property and Equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Impairment charges | ¥ 5,008,677 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 59,719,534 | $ 9,152,419 | ¥ 37,340,304 | ¥ 23,919,015 |
Hotel Operating Costs | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | 50,324,493 | 7,712,566 | 31,671,274 | 21,313,405 |
General And Administrative Expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 9,395,041 | $ 1,439,853 | ¥ 5,669,030 | ¥ 2,605,610 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | ¥ 512,904,998 | $ 78,606,130 | ¥ 511,521,805 |
Less: Accumulated amortization | (21,391,925) | (3,278,456) | (15,241,489) |
Total. | 491,513,073 | 75,327,674 | 496,280,316 |
Trademark | |||
Intangible assets with indefinite life: | |||
Indefinite lives Intangible Assets, Gross | 443,300,000 | 67,938,697 | 443,300,000 |
Trademark | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 4,724,493 | 724,060 | 4,724,493 |
Network Rights | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 390,317 | 59,819 | 390,317 |
Purchased Software | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 15,227,737 | 2,333,753 | 14,339,844 |
Reacquired Rights | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 2,531,418 | 387,957 | 2,531,418 |
Favorable Leases | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 42,095,848 | 6,451,471 | 41,600,548 |
Technology | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 4,200,000 | 643,678 | 4,200,000 |
Others | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | ¥ 435,185 | $ 66,695 | ¥ 435,185 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible | ¥ 6,150,436 | $ 942,596 | ¥ 3,025,995 | ¥ 1,630,950 |
Impairment charges recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Aggregate Amortization Expense (Details) - Dec. 31, 2020 | CNY (¥) | USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2021 | ¥ 5,183,779 | $ 794,449 |
2022 | 5,231,146 | 801,708 |
2023 | 4,852,963 | 743,749 |
2024 | 4,718,766 | 723,183 |
2025 | 4,292,118 | 657,796 |
Thereafter | ¥ 23,934,301 | $ 3,668,092 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Balance as of January 1 | ¥ 100,078,236 | $ 15,337,660 | ¥ 5,787,068 |
Acquisitions | 153,251 | 23,487 | 94,291,168 |
Balance as of December 31 | ¥ 100,231,487 | $ 15,361,147 | ¥ 100,078,236 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Impairment of goodwill | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Long-Term Investments (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | ¥ 242,378,696 | $ 37,146,160 | ¥ 207,007,926 |
Long-term investments | 369,525,917 | 56,632,324 | 398,637,701 |
Shanghai Wiselong Enterprise Management Co., Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 24,489,092 | 3,753,117 | 23,579,728 |
Others | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 1,000,000 | 153,257 | |
China Gingko Education Group Company Limited | |||
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | 56,354,913 | 8,636,768 | 70,193,934 |
Zhejiang New Century Hotel Management Co., Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | 180,457,226 | 27,656,280 | 192,639,353 |
Yibon Hotel Group Co., Ltd | |||
Schedule Of Investments [Line Items] | |||
Equity securities without readily determinable fair values | 103,701,474 | ||
Available-for-sale debt investment | 103,701,474 | 15,892,946 | |
Others | |||
Schedule Of Investments [Line Items] | |||
Equity securities without readily determinable fair values | ¥ 3,523,212 | $ 539,956 | ¥ 8,523,212 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) $ in Thousands | Mar. 11, 2019USD ($) | Jan. 31, 2019HKD ($)shares | Apr. 30, 2017CNY (¥) | Dec. 31, 2019 | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Yibon Hotel Group Co., Ltd | ||||||
Schedule Of Investments [Line Items] | ||||||
Equity securities without readily determinable fair values, percentage | 30.00% | |||||
Payment to acquire, equity securities without readily determinable fair values | ¥ | ¥ 103,701,474 | |||||
Available-for-sale debt investment, fair value | ¥ 103,701,474 | $ 15,892,946 | ||||
Equity interest held by holders of investee to be exchanged into shares of investor | 70.00% | |||||
Zhejiang New Century Hotel Management Co [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Percentage of ownership | 4.95% | |||||
Equity interest, ordinary shares | $ 29,200,000 | |||||
China Gingko Education Group Company Limited | Initial Public Offering | ||||||
Schedule Of Investments [Line Items] | ||||||
Equity interest, percentage | 5.56% | |||||
Equity interest, ordinary shares | shares | 27,776,000 | |||||
Equity interest | $ 40,400 | |||||
China Gingko Education Group Company Limited | Secondary Market [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Equity interest, percentage | 2.71% | |||||
Equity interest, ordinary shares | shares | 13,560,000 | |||||
Equity interest | $ 19,530 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Other Noncurrent Assets [Line Items] | |||
Other assets | ¥ 66,635,394 | $ 10,212,322 | ¥ 76,957,992 |
Acquisition Deposits | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 8,216,700 | 1,259,265 | 38,869,400 |
Rental Deposit | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 7,410,000 | 1,135,632 | 6,685,000 |
Interest Receivable | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 33,772,617 | 5,175,880 | 17,326,910 |
Returnable Consideration from the Acquisition of Urban Hotel Group | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | 1,833,421 | 280,984 | 3,333,421 |
Others | |||
Other Noncurrent Assets [Line Items] | |||
Other assets | ¥ 15,402,656 | $ 2,360,561 | ¥ 10,743,261 |
Short-Term Bank Loans - Schedul
Short-Term Bank Loans - Schedule of Short-term Debt (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short Term Borrowings [Abstract] | |||
Short-term bank loans | ¥ 150,000,000 | $ 22,988,506 | ¥ 60,000,000 |
Short-Term Bank Loans - Additio
Short-Term Bank Loans - Additional Information (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short Term Borrowings [Abstract] | |||
Principal amount outstanding | ¥ 150,000,000 | $ 22,988,506 | ¥ 60,000,000 |
Debt instrument, interest rate | 4.60% | 4.60% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Payables And Accruals [Abstract] | |||
Other payables | ¥ 197,643,431 | $ 30,290,181 | ¥ 210,561,540 |
Business taxes and related tax surcharge | 78,300,960 | 12,000,147 | 64,345,243 |
Accrued rental | 20,675,146 | 3,168,605 | 2,250,443 |
Consideration payables for acquisitions | 309,500 | 47,433 | 16,776,500 |
Accrued utilities | 2,307,672 | 353,667 | 2,306,796 |
Other accrued expenses | 934,279 | 143,184 | 2,180,632 |
Payables for contingent consideration | 525,685 | 80,565 | 4,027,207 |
Total | ¥ 300,696,673 | $ 46,083,782 | ¥ 302,448,361 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) | Dec. 31, 2020 |
Common Class A | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 39.60% |
Common Class B | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 60.40% |
Hotel Operating Costs - Schedul
Hotel Operating Costs - Schedule of Hotel Operating Costs (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating Expenses [Abstract] | ||||
Rental | ¥ 118,295,183 | $ 18,129,530 | ¥ 79,597,408 | ¥ 76,055,484 |
Utilities | 15,372,385 | 2,355,921 | 19,119,300 | 19,264,487 |
Personnel cost | 41,330,758 | 6,334,216 | 38,277,298 | 33,715,007 |
Depreciation and amortization | 50,324,493 | 7,712,566 | 34,727,153 | 21,313,405 |
Consumable, food and beverage | 43,257,796 | 6,629,547 | 32,337,115 | 19,275,688 |
Costs of hotel manager of franchised-and-managed hotels | 91,664,745 | 14,048,237 | 96,565,044 | 70,480,306 |
Other costs of franchised-and-managed hotels | 22,985,917 | 3,522,746 | 29,192,923 | 22,353,424 |
Others | 9,291,029 | 1,423,912 | 9,010,238 | 11,961,462 |
Total | ¥ 392,522,306 | $ 60,156,675 | ¥ 338,826,479 | ¥ 274,419,263 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Details) | Nov. 11, 2017CNY (¥)shares | Jan. 31, 2018shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥)$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥)$ / shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Issuance of fully vested ordinary shares | 352,500 | |||||||||
2018 Share Incentive Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Maximum life of option | 6 years | |||||||||
Number of stock options granted | 0 | 0 | 1,829,000 | |||||||
Cash used to settle related share-based compensation | ¥ | ¥ 1,186,271 | |||||||||
Weighted-average grant date fair value | $ / shares | $ 3.57 | $ 5.54 | ||||||||
Aggregate grant date fair value of the outstanding options | ¥ 35,828,331 | 39,628,188 | $ 39,628,188 | ¥ 60,525,042 | $ 60,525,042 | ¥ 35,828,331 | $ 5,490,932 | |||
Fair value of share options vested | 8,610,259 | $ 1,319,580 | 11,316,415 | 5,431,798 | ||||||
Unrecognized compensation expense related to unvested options, net | ¥ 3,405,695 | ¥ 12,314,260 | $ 12,314,260 | ¥ 42,791,057 | $ 42,791,057 | ¥ 3,405,695 | $ 521,946 | |||
Weighted-average period | 1 year 4 months 2 days | 1 year 4 months 2 days | 2 years 6 months 29 days | 3 years 1 month 9 days | ||||||
2018 Share Incentive Plan | Common Class A | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of authorized shares purchased by participants | 9,000,000 | |||||||||
General And Administrative Expenses | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | ¥ | ¥ 38,048,000 | |||||||||
General And Administrative Expenses | 2018 Share Incentive Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | ¥ 232,558 | $ 35,641 | ¥ 27,676,666 | ¥ 16,108,950 |
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, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.42% | |
Volatility | 34.00% | |
Dividend yield | 2.50% | |
Life of option | 6 years | 6 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.60% | |
Volatility | 37.98% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.60% | |
Volatility | 35.66% |
Share Based Compensation - Summ
Share Based Compensation - Summary of Share Option Activity Under Option Plans (Details) - 2018 Share Incentive Plan - USD ($) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, Beginning balance | 1,022,000 | ||
Number of options, Granted | 0 | 1,829,000 | |
Number of options, Forfeited | (14,000) | ||
Number of options, Expired | (17,000) | ||
Number of options, Ending balance | 991,000 | 1,022,000 | 991,000 |
Number of options, Vested and expected to vest | 991,000 | 991,000 | |
Number of options, Exercisable | 497,750 | 497,750 | |
Weighted average exercise price, Beginning balance | $ 12.28 | ||
Weighted average exercise price, Forfeited | 12.57 | ||
Weighted average exercise price, Expired | 12 | ||
Weighted average exercise price, Ending balance | 12.27 | $ 12.28 | $ 12.27 |
Weighted average exercise price, Vested and expected to vest | 12.27 | 12.27 | |
Weighted average exercise price, Exercisable | $ 12.27 | $ 12.27 | |
Weighted average remaining contractual life, Outstanding | 3 years 1 month 17 days | 3 years 11 months 15 days | |
Weighted average remaining contractual life, Vested and expected to vest | 3 years 1 month 17 days | ||
Weighted average remaining contractual life, Exercisable | 3 years 1 month 17 days | ||
Aggregate intrinsic value, Outstanding | $ 1,257,200 | $ 1,257,200 | |
Aggregate intrinsic value, Vested and expected to vest | 1,257,200 | 1,257,200 | |
Aggregate intrinsic value, Exercisable | $ 631,750 | $ 631,750 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Jan. 01, 2008 | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | Dec. 31, 2020USD ($) |
Income Taxes [Line Items] | ||||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Preferential income tax rate | 15.00% | |||||
Operating loss carryforwards | ¥ 88,917,006 | $ 13,627,127 | ||||
Withholding income tax on dividends distributed to holding company outside of China | 10.00% | 10.00% | ||||
PRC withholding tax liability accrued | ¥ 43,191,602 | ¥ 43,191,602 | 6,619,402 | |||
Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | 2021 | 2021 | ||||
Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | 2025 | 2025 | ||||
Shanghai Evergreen Technology Co., Ltd. | ||||||
Income Taxes [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | ||||
Shanghai Evergreen Technology Co., Ltd. | Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Preferential Income Tax Rate Period | 2017 | 2017 | ||||
Shanghai Evergreen Technology Co., Ltd. | Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Preferential Income Tax Rate Period | 2019 | 2019 | ||||
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 | ¥ 698,717,403 | 107,083,127 | ||||
Uncertain tax positions | 290,679,902 | 44,548,644 | ||||
Interest expense | 18,462,564 | $ 2,829,512 | ||||
Accumulated interest expense | 87,764,535 | ¥ 69,301,971 | $ 13,450,503 | |||
Accumulated tax penalty recorded | ¥ 0 | ¥ 0 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Tax Expense (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Current tax | ¥ 122,931,256 | $ 18,840,039 | ¥ 197,233,190 | ¥ 153,947,310 |
Deferred tax | (12,472,054) | (1,911,426) | (7,665,373) | (1,228,642) |
Total | ¥ 110,459,202 | $ 16,928,613 | ¥ 189,567,817 | ¥ 152,718,668 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | Jan. 01, 2008 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Withholding tax on the PRC earnings distribution | 0.00% | 3.00% | 4.00% | |
Effect of international rate difference | 1.00% | 0.00% | (1.00%) | |
Effect of preferential tax rate | 0.00% | (5.00%) | (3.00%) | |
Tax effect of expenses that are not deductible in determining taxable profit | 5.00% | 7.00% | 4.00% | |
Effective tax rate | 31.00% | 30.00% | 29.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | ¥ 22,229,252 | $ 3,406,782 | ¥ 15,741,149 |
Deferred revenue | 132,881,621 | 20,365,000 | 146,046,006 |
Deferred rent | 7,499,776 | 1,149,391 | 5,683,389 |
Bad debt expenses | 7,622,390 | 1,168,182 | 5,268,134 |
Accrued expenses | 15,971,223 | 2,447,697 | 7,368,561 |
Unrealised losses from equity securities | 5,213,960 | 799,074 | |
Valuation allowance | (24,186,707) | (3,706,775) | (19,619,046) |
Total deferred tax assets | 167,231,515 | 25,629,351 | 160,488,193 |
Deferred tax liabilities: | |||
Depreciation of property and equipment | (3,990,387) | (611,554) | (3,864,132) |
Unrealized gains from equity securities | (805,803) | (123,495) | (4,304,431) |
Intangible assets arising from acquisition | (141,587,024) | (21,699,161) | (143,943,382) |
Withholding tax on PRC earnings to be distributed | (43,191,602) | (6,619,402) | (43,191,602) |
Total deferred tax liabilities | ¥ (189,574,816) | $ (29,053,612) | ¥ (195,303,547) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits beginning balance | ¥ 261,641,717 | ¥ 169,619,409 | |
Increases — tax positions in the current period | 37,621,483 | 104,031,858 | |
Decreases — tax positions in prior period | (8,583,298) | (12,009,550) | |
Unrecognized tax benefits — ending balance | ¥ 290,679,902 | $ 44,548,644 | ¥ 261,641,717 |
Mainland and China Contributi_2
Mainland and China Contribution Plan and Profit Appropriation - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Compensation And Retirement Disclosure [Abstract] | ||||
Employee benefits | ¥ 25,666,575 | $ 3,933,575 | ¥ 28,700,397 | ¥ 22,289,686 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - Additional Information (Details) - PRC | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Statutory Accounting Practices [Line Items] | ||||
Statutory reserve funds | ¥ 69,953,178 | $ 10,720,794 | ¥ 63,030,266 | ¥ 57,726,641 |
Restricted net assets | ¥ 777,732,187 | $ 119,192,672 | ¥ 509,435,466 | ¥ 394,424,291 |
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, 2020 | |
Alex S. Xu | |
Related Party Transaction [Line Items] | |
Related Party | Alex S. Xu |
Nature of the party | Individual |
Relationship with the Group | Founder and CEO |
Hui Xu | |
Related Party Transaction [Line Items] | |
Related Party | Hui Xu |
Nature of the party | Individual |
Relationship with the Group | Brother of Alex S. Xu |
Yan Zhang | |
Related Party Transaction [Line Items] | |
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 [Line Items] | |
Related Party | Wen Qi |
Nature of the party | Individual |
Relationship with the Group | Vice president, human resources and administration of the Group |
GTI | |
Related Party Transaction [Line Items] | |
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 [Line Items] | |
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 |
Shiquanmeiwei | |
Related Party Transaction [Line Items] | |
Related Party | Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) * |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Da Niang Group | |
Related Party Transaction [Line Items] | |
Related Party | Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
JYHM | |
Related Party Transaction [Line Items] | |
Related Party | Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Napa | |
Related Party Transaction [Line Items] | |
Related Party | Napa Infinity Winery (Shanghai) Inc. (“Napa”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Yibon | |
Related Party Transaction [Line Items] | |
Related Party | Yibon |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
TB | |
Related Party Transaction [Line Items] | |
Related Party | TB** |
Nature of the party | Franchised hotels |
Relationship with the Group | Former Equity investee of the Group |
Ze Xin | |
Related Party Transaction [Line Items] | |
Related Party | Yancheng Zexin Hotel Management Co., Ltd. (“Ze Xin”) *** |
Nature of the party | Hotel management |
Relationship with the Group | Former Equity investee of the Group |
Related Party Transactions an_4
Related Party Transactions and Balances - Schedule of Related Party Balances (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current: | |||
Due from related parties, current | ¥ 9,770,871 | $ 1,497,451 | ¥ 31,739,731 |
Due to related parties | |||
Amounts due to related parties | 3,198,253 | 490,154 | 3,518,031 |
Aotao | |||
Current: | |||
Due from related parties, current | 122,719 | 18,807 | 20,086,504 |
GTI | |||
Current: | |||
Due from related parties, current | 8,424,629 | ||
JYHM | |||
Current: | |||
Due from related parties, current | 46,991 | 7,202 | |
Napa | |||
Current: | |||
Due from related parties, current | 500,000 | 76,628 | 2,506,484 |
Due to related parties | |||
Amounts due to related parties | 1,120,826 | 171,774 | |
Yibon | |||
Current: | |||
Due from related parties, current | 9,101,161 | 1,394,814 | 722,114 |
Due to related parties | |||
Amounts due to related parties | 1,995,465 | 305,819 | 3,205,890 |
JYHM | |||
Due to related parties | |||
Amounts due to related parties | 27,962 | 4,285 | ¥ 312,141 |
Da Niang Group | |||
Due to related parties | |||
Amounts due to related parties | ¥ 54,000 | $ 8,276 |
Related Party Transactions an_5
Related Party Transactions and Balances - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |
Interest rate percentage | 4.60% |
Yibon | |
Related Party Transaction [Line Items] | |
Long term, maturity period | 1 year |
Interest rate percentage | 6.00% |
Related Party Transactions an_6
Related Party Transactions and Balances - Schedule of Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||
Loan to related parties | ¥ (528,356,500) | $ (80,974,176) | ¥ (634,638,425) | ¥ (4,300,000) | |
Sublease revenue from related party | 77,676,665 | 11,904,470 | 74,893,930 | 53,852,195 | |
Aotao | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (479,356,500) | (73,464,598) | (167,279,750) | ||
Repayment from related party | 499,421,550 | 76,539,701 | 157,279,750 | ||
Advertising service from related party | (3,920,000) | (600,766) | |||
Interest income from related party | 2,316,856 | 355,074 | 1,316,854 | ||
Franchise management fee to related party | (41,867) | (6,416) | (24,941) | ||
GTI | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (192,558,675) | ||||
Repayment from related party | 8,424,629 | 1,291,131 | 184,134,046 | 1,717,539 | |
Interest income from related party | 907,880 | ||||
Da Niang Group | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (40,000,000) | (6,130,268) | (274,800,000) | ||
Repayment from related party | 40,000,000 | 6,130,268 | 274,800,000 | ||
Interest income from related party | 352,882 | 54,081 | 875,315 | ||
Purchase from related party | (724,045) | (339,121) | $ (110,965) | ||
Sublease revenue from related party | 36,000 | 5,517 | |||
JYHM | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (40,000) | (18,418) | (6,130) | ||
Sublease revenue from related party | 284,179 | 43,552 | 385,355 | ||
Advance from/(Repayment to) related party | 312,141 | 221,028 | |||
Napa | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (2,059,566) | (3,576,659) | $ (315,642) | ||
Revenue from related party | 2,358,491 | ||||
Yibon | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (9,000,000) | (1,379,310) | |||
Interest income from related party | 18,667,117 | 2,860,861 | |||
Revenue from related party | ¥ 852,287 | $ 130,619 | ¥ 681,239 | ||
TB | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related party | 389,583 | ||||
Shiquanmeiwei | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (3,600) | ||||
Ze Xin | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (4,300,000) | ||||
Interest income from related party | 263,366 | ||||
Revenue from related party | ¥ 44,763 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements (Details) - Dec. 31, 2020 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2021 | ¥ 130,695,728 | $ 20,029,997 |
2022 | 116,028,562 | 17,782,155 |
2023 | 111,252,708 | 17,050,223 |
2024 | 100,695,245 | 15,432,221 |
2025 | 92,812,089 | 14,224,075 |
Thereafter | 482,651,095 | 73,969,517 |
Total | ¥ 1,034,135,427 | $ 158,488,188 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2020 |
Minimum | |
Operating Leased Assets [Line Items] | |
Lease agreement period | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Lease agreement period | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants (Details) - Dec. 31, 2020 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2021 | ¥ 92,929,728 | $ 14,242,104 |
2022 | 77,561,287 | 11,886,787 |
2023 | 72,750,642 | 11,149,524 |
2024 | 67,048,084 | 10,275,568 |
2025 | 63,861,746 | 9,787,241 |
Thereafter | 299,068,165 | 45,834,202 |
Total | ¥ 673,219,652 | $ 103,175,426 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earning Per Share (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income used in calculating earnings per share-basic and diluted | ¥ 261,344,391 | $ 40,052,780 | ¥ 442,718,263 | ¥ 371,711,219 |
Common Class A | ||||
Denominator: | ||||
Weighted average shares outstanding basic and diluted | 68,286,954 | 68,286,954 | 67,315,727 | 62,860,578 |
Allocation of undistributed earnings — basic and diluted: | ||||
Allocation of undistributed earnings - basic | ¥ 173,182,301 | $ 26,541,349 | ¥ 291,950,431 | ¥ 235,665,522 |
Basic and diluted earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 2.54 | $ 0.39 | ¥ 4.34 | ¥ 3.75 |
Common Class B | ||||
Denominator: | ||||
Weighted average shares outstanding basic and diluted | 34,762,909 | 34,762,909 | 34,762,909 | 36,288,343 |
Allocation of undistributed earnings — basic and diluted: | ||||
Allocation of undistributed earnings - basic | ¥ 88,162,090 | $ 13,511,431 | ¥ 150,767,832 | ¥ 136,045,697 |
Basic and diluted earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 2.54 | $ 0.39 | ¥ 4.34 | ¥ 3.75 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | Nov. 30, 2019 | Jan. 31, 2020 | Dec. 31, 2020 |
Common Class A | |||
Earnings Per Share [Line Items] | |||
Business acquisition, shares issued | 870,908 | ||
Urban Hotel Group | |||
Earnings Per Share [Line Items] | |||
Business acquisition, shares issued | 870,908 | ||
Urban Hotel Group | Common Class A | |||
Earnings Per Share [Line Items] | |||
Business acquisition, shares issued | 870,908 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 611,358,209 | $ 93,694,745 | ¥ 319,847,701 | ¥ 1,264,025,785 |
Investments in equity securities | 242,378,696 | 37,146,160 | 207,007,926 | |
Amounts due from a related party | 9,770,871 | 1,497,451 | 31,739,731 | |
Other current assets | 77,649,794 | 11,900,352 | 66,004,017 | |
Total current assets | 1,584,298,985 | 242,804,442 | 1,265,224,210 | |
Non-current assets: | ||||
TOTAL ASSETS | 4,094,954,517 | 627,579,236 | 3,816,479,417 | |
Current liabilities: | ||||
Other payables | 197,643,431 | 30,290,181 | 210,561,540 | |
Other long-term liabilities | 115,862,713 | 17,756,737 | 118,112,511 | |
Total liabilities | 1,845,029,834 | 282,763,193 | 1,798,719,410 | |
Shareholders’ equity: | ||||
Additional paid-in capital | 1,149,280,404 | 176,134,928 | 1,152,108,217 | |
Retained earnings | 570,042,924 | 87,362,900 | 308,698,533 | |
Accumulated other comprehensive income | 45,586,647 | 6,986,460 | 65,300,854 | |
Total GreenTree Hospitality Group Ltd. shareholders’ equity | 2,103,031,255 | 322,303,641 | 1,861,168,513 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 4,094,954,517 | 627,579,236 | 3,816,479,417 | |
Common Class A | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | 222,587,070 | 34,112,961 | 219,526,699 | |
Common Class B | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | 115,534,210 | 17,706,392 | 115,534,210 | |
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 193,351,177 | 29,632,364 | 22,137,640 | |
Investments in equity securities | 65,420,098 | 10,026,069 | ||
Amounts due from subsidiaries | 14,683,443 | 2,250,336 | 6,271,868 | |
Amounts due from a related party | 8,424,629 | |||
Other current assets | 1,356,058 | 207,825 | 2,416,728 | |
Total current assets | 274,810,776 | 42,116,594 | 39,250,865 | |
Non-current assets: | ||||
Investments in subsidiaries | 1,852,091,157 | 283,845,388 | 1,577,484,393 | |
Equity securities with readily determinable fair values | 236,812,139 | 36,293,048 | 262,833,287 | |
TOTAL ASSETS | 2,363,714,072 | 362,255,030 | 1,879,568,545 | |
Current liabilities: | ||||
Other payables | 6,000,000 | |||
Amounts due to subsidiaries | 248,360,177 | 38,062,862 | 4,924,176 | |
Other long-term liabilities | 12,322,640 | 1,888,527 | 7,475,856 | |
Total liabilities | 260,682,817 | 39,951,389 | 18,400,032 | |
Shareholders’ equity: | ||||
Additional paid-in capital | 1,149,280,404 | 176,134,928 | 1,152,108,217 | |
Retained earnings | 570,042,924 | 87,362,900 | 308,698,533 | |
Accumulated other comprehensive income | 45,586,647 | 6,986,460 | 65,300,854 | |
Total GreenTree Hospitality Group Ltd. shareholders’ equity | 2,103,031,255 | 322,303,641 | 1,861,168,513 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,363,714,072 | 362,255,030 | 1,879,568,545 | |
Parent Company | Common Class A | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | 222,587,070 | 34,112,961 | 219,526,699 | |
Parent Company | Common Class B | ||||
Shareholders’ equity: | ||||
Ordinary shares, value | ¥ 115,534,210 | $ 17,706,392 | ¥ 115,534,210 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, issued | 68,286,954 | 67,416,046 | 66,789,300 | |
Common stock, outstanding | 68,286,954 | 67,416,046 | 66,789,300 | 48,635,252 |
Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 | |
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 | 42,716,957 |
Parent Company | Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, issued | 68,286,954 | 67,416,046 | 66,789,300 | |
Common stock, outstanding | 68,286,954 | 67,416,046 | 66,789,300 | |
Parent Company | Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 | |
Common stock, outstanding | 34,762,909 | 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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
General and administrative expenses | ¥ (172,557,554) | $ (26,445,602) | ¥ (184,989,324) | ¥ (95,261,152) |
Interest expenses | (3,456,316) | (529,704) | (2,505,904) | (541,876) |
Share of profit in subsidiaries, net (Note a) | 909,364 | 139,366 | 140,564 | (8,300,584) |
Income before income taxes and share of (losses) gains in equity method investments | 354,252,573 | 54,291,582 | 626,079,555 | 532,239,541 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | (19,714,207) | (3,021,335) | 2,933,162 | 66,453,841 |
Comprehensive income attributable to ordinary shareholders | 241,630,184 | 37,031,445 | 445,651,425 | 438,165,060 |
Parent Company | ||||
General and administrative expenses | (9,967,834) | (1,527,638) | (33,538,433) | (1,307,753) |
interest income | 8,173 | 1,253 | 5,970,063 | 13,785,679 |
Interest expenses | (646,315) | |||
(Losses) Gains on investments in equity securities | (11,392,623) | (1,745,996) | 6,473,358 | |
Share of profit in subsidiaries, net (Note a) | 282,696,675 | 43,325,161 | 464,459,590 | 359,233,293 |
Income before income taxes and share of (losses) gains in equity method investments | 261,344,391 | 40,052,780 | 442,718,263 | 371,711,219 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | (19,714,207) | (3,021,335) | 2,933,162 | 66,453,841 |
Comprehensive income attributable to ordinary shareholders | ¥ 241,630,184 | $ 37,031,445 | ¥ 445,651,425 | ¥ 438,165,060 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Details) | Jun. 03, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Operating activities: | |||||
Net income (loss) | ¥ 244,702,736 | $ 37,502,335 | ¥ 437,774,169 | ¥ 371,220,289 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Share-based compensation | 232,558 | 35,641 | 26,490,395 | 16,108,950 | |
Share of profit in subsidiaries, net | (909,364) | (139,366) | (140,564) | 8,300,584 | |
Changes in operating assets and liabilities: | |||||
Other current assets | (18,807,170) | (2,882,325) | 10,990,176 | (13,933,400) | |
Other long-term liabilities | (5,549,798) | (850,544) | 21,538,701 | 22,636,533 | |
Net cash provided by operating activities | 295,256,932 | 45,250,105 | 513,939,897 | 554,949,643 | |
Investing activities: | |||||
Advance for acquisitions | (6,550,000) | (1,003,831) | (38,869,400) | (18,121,700) | |
Payment for acquisitions | ¥ (183,555,000) | ||||
Loan to related parties | (528,356,500) | (80,974,176) | (634,638,425) | (4,300,000) | |
Repayment from related parties | 539,996,179 | 82,758,035 | 458,752,530 | ||
Net cash used in investing activities | (111,552,657) | (17,096,193) | (1,219,956,395) | (181,756,342) | |
Financing activities: | |||||
Proceeds from issuance of Class A ordinary shares (Note 1) | 837,505,007 | ||||
Payment for initial public offering costs | (30,827,578) | ||||
Distribution to the shareholders (Note 1) | (226,951,236) | (200,532,021) | |||
Net cash generated (used in) from financing activities | 115,527,872 | 17,705,421 | (212,231,755) | 663,145,408 | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (7,664,261) | (1,174,599) | (6,917,309) | 66,023,411 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 291,567,886 | 44,684,734 | (925,165,562) | 1,102,362,120 | |
Cash and cash equivalents and restricted cash at the beginning of the year | 342,160,223 | 52,438,348 | 1,267,325,785 | 164,963,665 | |
Cash and cash equivalents and restricted cash at the end of the year | 633,728,109 | 97,123,082 | 342,160,223 | 1,267,325,785 | |
Parent Company | |||||
Operating activities: | |||||
Net income (loss) | 261,344,391 | 40,052,780 | 442,718,263 | 371,711,219 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Share-based compensation | 232,558 | 35,641 | 26,490,395 | 1,307,753 | |
(Gains) Losses from investments in equity securities | 11,392,623 | 1,745,996 | (6,473,358) | ||
Share of profit in subsidiaries, net | (282,696,675) | (43,325,161) | (464,459,590) | (359,233,293) | |
Changes in operating assets and liabilities: | |||||
Other current assets | 1,060,670 | 162,555 | 1,700,582 | (4,117,311) | |
Amounts due from subsidiaries | (8,411,575) | (1,289,130) | (6,271,868) | ||
Amounts due to subsidiaries | 243,436,001 | 37,308,199 | (2,166,524) | 7,090,700 | |
Other long-term liabilities | 4,846,781 | 742,802 | 7,475,856 | ||
Net cash provided by operating activities | 231,204,774 | 35,433,682 | (986,244) | 16,759,068 | |
Investing activities: | |||||
Advance for acquisitions | (6,875,561) | ||||
Payment for acquisitions | (6,041,736) | (925,937) | (52,903,471) | ||
Investment to subsidiaries | (2,938,656) | (450,369) | (2,938,656) | ||
Purchases of investments in equity securities | (65,114,997) | (9,979,309) | (247,415,003) | ||
Loan to related parties | (192,558,675) | ||||
Repayment from related parties | 8,424,629 | 1,291,131 | 26,672,779 | ||
Net cash used in investing activities | (65,670,760) | (10,064,484) | (469,143,026) | (6,875,561) | |
Financing activities: | |||||
Payment for initial public offering costs | (30,827,578) | ||||
Distribution to the shareholders (Note 1) | (226,951,236) | (200,532,021) | |||
Dividends from subsidiaries | 39,691,103 | ||||
Net cash generated (used in) from financing activities | (226,951,236) | 645,836,511 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 5,679,523 | 870,425 | (2,355,347) | 65,853,475 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 171,213,537 | 26,239,623 | (699,435,853) | 721,573,493 | |
Cash and cash equivalents and restricted cash at the beginning of the year | 22,137,640 | 3,392,742 | 721,573,493 | ||
Cash and cash equivalents and restricted cash at the end of the year | ¥ 193,351,177 | $ 29,632,364 | ¥ 22,137,640 | 721,573,493 | |
Parent Company | Common Class A | |||||
Financing activities: | |||||
Proceeds from issuance of Class A ordinary shares (Note 1) | ¥ 837,505,007 |