Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38425 |
Entity Registrant Name | GreenTree Hospitality Group Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Country | CN |
Entity Address, Address Line One | 1228 Zhongshan North Road |
Entity Address, Address Line Two | Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200065 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001724755 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1408 |
Auditor Location | Shanghai, the People’s Republic of China |
Business Contact | |
Document and Entity Information | |
Entity Address, Country | CN |
Entity Address, Address Line One | 1228 Zhongshan North Road |
Entity Address, Address Line Two | Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200065 |
Contact Personnel Name | Dr. Yiping Yang |
Country Region | 86 |
City Area Code | 21 |
Local Phone Number | 3617-4886 |
Common Class A | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.50 per share * |
Entity Common Stock, Shares Outstanding | 66,780,612 |
No Trading Symbol Flag | true |
Common Class B | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 34,762,909 |
American Depositary Shares | |
Document and Entity Information | |
Trading Symbol | GHG |
Title of 12(b) Security | American depositary shares, each representing one Class A ordinary share |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 765,547,547 | $ 107,825,117 | ¥ 699,244,375 |
Restricted cash | 6,576,906 | 926,338 | 7,937,683 |
Short-term investments | 417,711,617 | 58,833,451 | 186,031,572 |
Investments in equity securities | 26,076,169 | 3,672,752 | 41,361,346 |
Accounts receivable, net of allowance of RMB8,840,708 and RMB3,532,016 (USD497,474) as of December 31, 2022 and 2023, respectively | 123,887,879 | 17,449,243 | 134,916,930 |
Amounts due from related parties | ¥ 19,928,781 | $ 2,806,910 | ¥ 425,741,077 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Inventories | ¥ 20,462,490 | $ 2,882,081 | ¥ 21,920,802 |
Other current assets | 117,047,122 | 16,485,741 | 115,762,697 |
Loans receivable, net | 129,521,094 | 18,242,665 | 181,667,170 |
Total current assets | 1,626,759,605 | 229,124,298 | 1,814,583,652 |
Amounts due from related parties | ¥ 110,000,000 | $ 15,493,176 | ¥ 112,360,000 |
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Restricted cash | ¥ 19,476,259 | $ 2,743,174 | ¥ 26,779,673 |
Long-term time deposits | 63,340,000 | 8,921,252 | 130,000,000 |
Loans receivable, net | 70,690,305 | 9,956,521 | 177,172,509 |
Property, plant and equipment, net | 814,949,026 | 114,783,170 | 883,020,528 |
Intangible assets, net | 117,720,693 | 16,580,613 | 159,686,705 |
Operating lease right-of-use assets | 1,535,330,762 | 216,246,815 | 1,674,595,179 |
Goodwill | 177,082,468 | 24,941,544 | 177,082,468 |
Long-term investments | 184,758,800 | 26,022,733 | 176,854,460 |
Other assets | 104,725,600 | 14,750,292 | 119,764,831 |
Deferred tax assets | 241,965,360 | 34,080,108 | 231,995,274 |
TOTAL ASSETS | 5,066,798,878 | 713,643,696 | 5,683,895,279 |
Current liabilities: | |||
Short-term bank loans | 116,800,000 | 16,450,936 | 156,300,000 |
Long-term bank loans, current portion | 200,000 | 28,169 | 141,800,000 |
Accounts payable | 73,126,677 | 10,299,677 | 123,577,770 |
Advance from customers | 22,393,097 | 3,154,002 | 25,604,363 |
Amounts due to related parties | ¥ 16,310,293 | $ 2,297,257 | ¥ 21,717,203 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Salary and welfare payable | ¥ 86,332,096 | $ 12,159,621 | ¥ 89,343,058 |
Deferred revenue | 186,281,838 | 26,237,248 | 193,352,239 |
Operating lease liabilities, current | 267,536,846 | 37,681,777 | 272,700,888 |
Accrued expenses and other current liabilities | 459,832,717 | 64,766,083 | 439,762,393 |
Income tax payable | 112,782,712 | 15,885,113 | 79,920,862 |
Total current liabilities | 1,341,596,276 | 188,959,883 | 1,544,078,776 |
Operating lease liabilities, non-current | 1,391,909,308 | 196,046,326 | 1,516,274,996 |
Deferred revenue, non-current | 207,905,769 | 29,282,915 | 234,374,415 |
Long-term loans, non current portion | 56,800,000 | 8,000,113 | 160,000,000 |
Other long-term liabilities | 111,711,750 | 15,734,271 | 124,504,589 |
Deferred tax liabilities | 94,716,495 | 13,340,539 | 92,713,768 |
Unrecognized tax benefits | 382,125,785 | 53,821,291 | 353,555,843 |
Total liabilities | 3,586,765,383 | 505,185,338 | 4,025,502,387 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Treasury Stock | (36,677,832) | (5,165,965) | (16,971,057) |
Additional paid-in capital | 1,680,713,349 | 236,723,524 | 2,080,450,699 |
Accumulated losses | (568,339,799) | (80,048,986) | (817,544,056) |
Accumulated other comprehensive income | 28,401,282 | 4,000,237 | 27,732,104 |
Total GreenTree Hospitality Group Ltd.'s shareholders' equity | 1,442,218,280 | 203,132,196 | 1,611,788,970 |
Noncontrolling interests | 37,815,215 | 5,326,162 | 46,603,922 |
Total shareholders' equity | 1,480,033,495 | 208,458,358 | 1,658,392,892 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,066,798,878 | 713,643,696 | 5,683,895,279 |
Class A ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares, value | 222,587,070 | 31,350,733 | 222,587,070 |
Class B ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares, value | ¥ 115,534,210 | $ 16,272,653 | ¥ 115,534,210 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares |
Allowance for doubtful accounts receivable | ¥ 3,532,016 | $ 497,474 | ¥ 8,840,708 |
Net of allowance | ¥ 3,532,016 | $ 497,474 | ¥ 8,840,708 |
Class A ordinary shares | |||
Ordinary shares, par value | $ / shares | $ 0.50 | ||
Ordinary shares, authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Ordinary shares, issued | 66,780,612 | 66,780,612 | 67,416,046 |
Ordinary shares, outstanding | 66,780,612 | 66,780,612 | 67,416,046 |
Class B ordinary shares | |||
Ordinary shares, par value | $ / shares | $ 0.50 | ||
Ordinary shares, authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Ordinary shares, issued | 34,762,909 | 34,762,909 | 34,762,909 |
Ordinary shares, outstanding | 34,762,909 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Revenues: | ||||
Total revenues | ¥ 1,627,257,689 | $ 229,194,451 | ¥ 1,469,074,275 | ¥ 1,967,815,019 |
Operating costs and expenses: | ||||
Operating costs (including purchase from related parties of RMB1,722,351, RMB299,861 and RMB1,574,642 (USD221,784) for the years ended December 31, 2021, 2022 and 2023, respectively) | (947,438,814) | (133,443,966) | (1,066,512,951) | (1,312,516,298) |
Selling and marketing expenses (including service from related parties of RMB9,087,960, RMB6,163,675 and RMB1,276,474 (USD179,788) for the years ended December 31, 2021, 2022 and 2023, respectively) | (71,618,033) | (10,087,189) | (68,490,439) | (103,756,493) |
General and administrative expenses | (208,433,678) | (29,357,270) | (259,513,862) | (318,971,686) |
Other operating expenses | (11,704,553) | (1,648,552) | (8,416,358) | (13,188,962) |
Impairment loss of goodwill | ¥ | 0 | (91,236,480) | ||
Other general expenses | (79,583,586) | (11,209,114) | (485,427,163) | (120,179,989) |
Total operating costs and expenses | (1,318,778,664) | (185,746,091) | (1,979,597,253) | (1,868,613,428) |
Other operating income | 27,169,901 | 3,826,801 | 23,993,148 | 29,998,233 |
Income (loss) from operations | 335,648,926 | 47,275,161 | (486,529,830) | 129,199,824 |
Interest income (including interest income from related parties of RMB544,352, RMB12,333 and RMB465,500 (USD65,564) for the years ended December 31, 2021, 2022 and 2023, respectively) | 41,371,162 | 5,827,006 | 48,105,125 | 60,659,015 |
Interest expenses | (14,053,841) | (1,979,442) | (27,987,842) | (15,303,462) |
Gains (losses and impairment) on equity securities held | (5,378,104) | (757,490) | (62,156,235) | 9,170,588 |
Other income, net | 22,783,715 | 3,209,019 | 24,404,728 | 11,750,278 |
Income (loss) before income taxes and share of losses in equity method investments | 380,371,858 | 53,574,254 | (504,164,054) | 195,476,243 |
Income tax (expense) benefit | (118,452,255) | (16,683,651) | 44,072,902 | (112,287,231) |
Income (loss) before share of losses in equity method investments | 261,919,603 | 36,890,603 | (460,091,152) | 83,189,012 |
Share of income(loss) in equity method investments, net of tax | (1,392,002) | (196,059) | (1,598,301) | 382,874 |
Net income (loss) | 260,527,601 | 36,694,544 | (461,689,453) | 83,571,886 |
Net loss attributable to noncontrolling interests | 8,788,707 | 1,237,864 | 36,536,272 | 5,134,870 |
Net income(loss) attributable to ordinary shareholders | 269,316,308 | 37,932,408 | (425,153,181) | 88,706,756 |
Other comprehensive (loss) income, net of tax | ||||
-Foreign currency translation adjustments | 672,112 | 94,665 | (11,361,872) | (6,497,403) |
-Unrealized gains(losses) on available-for-sale investments | (2,934) | (413) | (2,786,931) | 2,791,663 |
Other comprehensive (loss) income, net of tax | 669,178 | 94,252 | (14,148,803) | (3,705,740) |
Comprehensive income(loss), net of tax | 261,196,779 | 36,788,796 | (475,838,256) | 79,866,146 |
Comprehensive loss attributable to noncontrolling interests | 8,788,707 | 1,237,864 | 36,536,272 | 5,134,870 |
Comprehensive income(loss) attributable to ordinary shareholders | ¥ 269,985,486 | $ 38,026,660 | ¥ (439,301,984) | ¥ 85,001,016 |
Class A ordinary shares | ||||
Earnings(losses) per share | ||||
Basic earnings (losses) per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Diluted earnings (losses) per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic | 67,321,003 | 67,321,003 | 68,201,056 | 68,286,954 |
Weighted average shares outstanding diluted | 67,321,003 | 67,321,003 | 68,201,056 | 68,286,954 |
Class B ordinary shares | ||||
Earnings(losses) per share | ||||
Basic earnings (losses) per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Diluted earnings (losses) per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Weighted average shares outstanding diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Leased-and-operated revenue | ||||
Revenues: | ||||
Total revenues | ¥ 787,814,342 | $ 110,961,329 | ¥ 700,022,649 | ¥ 963,727,199 |
Franchised-and-managed revenue | ||||
Revenues: | ||||
Total revenues | 705,244,948 | 99,331,673 | 588,463,368 | 782,572,078 |
Wholesale and others | ||||
Revenues: | ||||
Total revenues | ¥ 134,198,399 | $ 18,901,449 | ¥ 180,588,258 | ¥ 221,515,742 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Total revenues | ¥ 1,627,257,689 | $ 229,194,451 | ¥ 1,469,074,275 | ¥ 1,967,815,019 |
Cost of revenues | 947,438,814 | 133,443,966 | 1,066,512,951 | 1,312,516,298 |
Selling and marketing expenses | 71,618,033 | 10,087,189 | 68,490,439 | 103,756,493 |
Interest income | 41,371,162 | 5,827,006 | 48,105,125 | 60,659,015 |
Related party | ||||
Cost of revenues | 1,574,642 | 221,784 | 299,861 | 1,722,351 |
Selling and marketing expenses | 1,276,474 | 179,788 | 6,163,675 | 9,087,960 |
Interest income | 465,500 | 65,564 | 12,333 | 544,352 |
Leased-and-operated revenue | ||||
Total revenues | 787,814,342 | 110,961,329 | 700,022,649 | 963,727,199 |
Leased-and-operated revenue | Related party | ||||
Total revenues | 82,396 | 11,605 | 112,847 | 331,558 |
Franchised-and-managed revenue | ||||
Total revenues | 705,244,948 | 99,331,673 | 588,463,368 | 782,572,078 |
Franchised-and-managed revenue | Related party | ||||
Total revenues | 788,179 | 111,013 | 1,285,068 | 1,251,888 |
Wholesale and others | ||||
Total revenues | 134,198,399 | 18,901,449 | 180,588,258 | 221,515,742 |
Wholesale and others | Related party | ||||
Total revenues | ¥ 1,757,629 | $ 247,557 | ¥ 0 | ¥ 756,899 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Common Class A Ordinary Shares CNY (¥) shares | Common Class A Ordinary Shares USD ($) shares | Common Class A Treasury stock CNY (¥) shares | Common Class A Treasury stock USD ($) shares | Common Class A shares | Common Class B Ordinary Shares CNY (¥) shares | Common Class B Ordinary Shares USD ($) shares | Common Class B shares | Additional Paid-in Capital CNY (¥) | Additional Paid-in Capital USD ($) | Retained Earnings Adjustment CNY (¥) | Retained Earnings CNY (¥) | Retained Earnings USD ($) | AOCI Attributable to Parent CNY (¥) | AOCI Attributable to Parent USD ($) | Parent Adjustment CNY (¥) | Parent CNY (¥) | Parent USD ($) | Noncontrolling Interest CNY (¥) | Noncontrolling Interest USD ($) | Adjustment CNY (¥) | CNY (¥) | USD ($) |
Balance at Dec. 31, 2020 | ¥ 222,587,070 | ¥ 115,534,210 | ¥ 2,078,409,153 | ¥ (119,915,075) | ¥ 45,586,647 | ¥ 2,342,202,005 | ¥ 153,955,535 | ¥ 2,496,157,540 | |||||||||||||||
Balance, shares beginning at Dec. 31, 2020 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 | |||||||||||||||||||
Distribution to the shareholders | (361,182,556) | (361,182,556) | (361,182,556) | ||||||||||||||||||||
Capital contribution from noncontrolling interest holders | 8,191,000 | 8,191,000 | |||||||||||||||||||||
Acquisition of noncontrolling interest | (360,861) | (360,861) | (657,526) | (1,018,387) | |||||||||||||||||||
Acquisitions of subsidiaries and business | 34,576,536 | 34,576,536 | |||||||||||||||||||||
Net income (loss) | 88,706,756 | 88,706,756 | (5,134,870) | 83,571,886 | |||||||||||||||||||
Foreign currency translation adjustments | (6,497,403) | (6,497,403) | (6,497,403) | ||||||||||||||||||||
Unrealized gains on available-for-sale investments, net of reclassification | 2,791,663 | 2,791,663 | 2,791,663 | ||||||||||||||||||||
Share-based compensation (Note 21) | 2,464,763 | 2,464,763 | 2,464,763 | ||||||||||||||||||||
Balance at Dec. 31, 2021 | ¥ 222,587,070 | ¥ 115,534,210 | 2,080,513,055 | (392,390,875) | 41,880,907 | 2,068,124,367 | 190,930,675 | 2,259,055,042 | |||||||||||||||
Balance, shares at Dec. 31, 2021 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 | |||||||||||||||||||
Capital contribution from noncontrolling interest holders | 400,000 | 400,000 | |||||||||||||||||||||
Net income (loss) | (425,153,181) | (425,153,181) | (36,536,272) | (461,689,453) | |||||||||||||||||||
Share repurchase | ¥ (16,971,057) | (16,971,057) | (16,971,057) | ||||||||||||||||||||
Share repurchase (in shares) | shares | (870,908) | (870,908) | |||||||||||||||||||||
Deconsolidation or disposal of subsidiaries | (108,190,481) | (108,190,481) | |||||||||||||||||||||
Foreign currency translation adjustments | (11,361,872) | (11,361,872) | (11,361,872) | ||||||||||||||||||||
Unrealized gains on available-for-sale investments, net of reclassification | (2,786,931) | (2,786,931) | (2,786,931) | ||||||||||||||||||||
Share-based compensation (Note 21) | (62,356) | (62,356) | (62,356) | ||||||||||||||||||||
Balance at Dec. 31, 2022 | ¥ 222,587,070 | ¥ (16,971,057) | ¥ 115,534,210 | 2,080,450,699 | (817,544,056) | 27,732,104 | 1,611,788,970 | 46,603,922 | 1,658,392,892 | ||||||||||||||
Balance, shares at Dec. 31, 2022 | shares | 68,286,954 | 68,286,954 | (870,908) | (870,908) | 67,416,046 | 34,762,909 | 34,762,909 | 34,762,909 | |||||||||||||||
Net income (loss) | 269,316,308 | 269,316,308 | (8,788,707) | 260,527,601 | $ 36,694,544 | ||||||||||||||||||
Share repurchase | ¥ (19,706,775) | (19,706,775) | (19,706,775) | ||||||||||||||||||||
Share repurchase (in shares) | shares | (635,434) | (635,434) | |||||||||||||||||||||
Business combinations under common control | 399,800,000 | 399,800,000 | 399,800,000 | ||||||||||||||||||||
Foreign currency translation adjustments | 672,112 | 672,112 | 672,112 | 94,665 | |||||||||||||||||||
Unrealized gains on available-for-sale investments, net of reclassification | (2,934) | (2,934) | (2,934) | (413) | |||||||||||||||||||
Share-based compensation (Note 21) | 62,650 | 62,650 | 62,650 | ||||||||||||||||||||
Balance at Dec. 31, 2023 | ¥ 222,587,070 | $ 31,350,733 | ¥ (36,677,832) | $ (5,165,965) | ¥ 115,534,210 | $ 16,272,653 | ¥ 1,680,713,349 | $ 236,723,524 | ¥ (20,112,051) | ¥ (568,339,799) | $ (80,048,986) | ¥ 28,401,282 | $ 4,000,237 | ¥ (20,112,051) | ¥ 1,442,218,280 | $ 203,132,196 | ¥ 37,815,215 | $ 5,326,162 | ¥ (20,112,051) | ¥ 1,480,033,495 | $ 208,458,358 | ||
Balance, shares at Dec. 31, 2023 | shares | 68,286,954 | 68,286,954 | (1,506,342) | (1,506,342) | 66,780,612 | 34,762,909 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operating activities: | ||||
Net income (loss) | ¥ 260,527,601 | $ 36,694,544 | ¥ (461,689,453) | ¥ 83,571,886 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 116,870,237 | 16,460,829 | 125,338,901 | 119,336,508 |
Share of (income) loss in equity method investments | 1,392,002 | 196,059 | 1,598,301 | (382,874) |
Impairment loss of goodwill | 0 | 91,236,480 | ||
Impairment of indefinite-lived intangible assets | 16,027,000 | 2,257,356 | 30,892,345 | 14,047,000 |
Impairment of long-lived assets | 40,559,449 | 5,712,679 | 53,244,063 | 6,246,986 |
Noncash lease expense | 271,156,173 | 38,191,548 | 310,802,786 | |
Losses from disposal of subsidiaries | 1,223,952 | 172,390 | 16,117,056 | |
Interest income | (6,009,370) | (846,402) | (1,411,662) | (4,118,687) |
Bad debt expenses | 38,858,275 | 5,473,074 | 431,180,588 | 136,908,842 |
(Gains) losses and impairment on equity securities held | 6,998,104 | 985,662 | 62,156,235 | (9,137,875) |
Losses on disposal of property, plant and equipment | 2,166,990 | 305,214 | 4,518,601 | 3,348,638 |
Foreign exchange gains | (372,187) | (52,421) | (17,843,559) | (1,242,065) |
Share-based compensation | 62,650 | 8,824 | (62,356) | 2,464,763 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (5,359,275) | (754,838) | (53,611,693) | (24,381,337) |
Prepaid rent | (3,106,262) | |||
Inventories | 4,764,959 | 671,130 | 10,626,796 | 9,404,672 |
Amounts due from related parties | 8,372,296 | 1,179,213 | (8,425,000) | (3,436,744) |
Other current assets | (47,920,887) | (6,749,516) | 63,924,588 | (46,705,102) |
Other assets | 17,250,340 | 2,429,660 | 9,253,744 | (48,408,656) |
Accounts payable | (50,451,092) | (7,105,888) | (15,933,692) | 5,371,215 |
Amounts due to related parties | (5,406,910) | (761,547) | 3,561,244 | 6,090,572 |
Salary and welfare payable | (3,010,962) | (424,085) | 10,348,812 | 2,170,104 |
Deferred revenue | (33,539,045) | (4,723,876) | (77,754,052) | (55,575,600) |
Advance from customers | (3,211,266) | (452,297) | (18,834,737) | 4,287,025 |
Accrued expenses and other current liabilities | 26,174,961 | 3,686,666 | 69,046,891 | 59,226,646 |
Income tax payable | 32,861,850 | 4,628,495 | 6,664,115 | (15,540,477) |
Unrecognized tax benefits | 28,569,943 | 4,023,992 | 21,146,549 | 38,581,568 |
Operating lease liabilities | (256,017,527) | (36,059,314) | (233,948,343) | |
Deferred rent | 44,185,810 | |||
Other long-term liabilities | (5,065,347) | (713,439) | (10,555,063) | 15,532,192 |
Deferred taxes | (2,423,339) | (341,320) | (127,047,022) | 40,510,113 |
Net cash provided by operating activities | 455,049,575 | 64,092,392 | 294,541,463 | 379,248,861 |
Investing activities: | ||||
Purchases of property, plant and equipment | (87,764,045) | (12,361,308) | (83,723,370) | (360,706,474) |
Purchases of intangible assets | (740,406) | (104,284) | (108,028) | (201,746) |
Proceeds from disposal of property, plant and equipment | 2,951,611 | 415,726 | 5,951,096 | 2,961,611 |
Acquisitions, net of cash received | (147,608,325) | |||
Advances for acquisitions | (39,483,494) | |||
Collections of acquisition advances | 12,154,500 | |||
Advances for purchases of property, plant and equipment | (220,877,020) | |||
Repayments from advances for purchases of property, plant and equipment | 3,247,390 | 22,400,000 | ||
Purchases of short-term investments | (262,680,045) | (36,997,711) | (161,760,000) | (410,189,081) |
Proceeds from maturities of short-term investments | 167,009,370 | 23,522,778 | 550,663,022 | 536,383,232 |
Proceeds from maturities of long-term time deposits | 50,000,000 | |||
Purchase of long-term time deposits | (63,340,000) | (8,921,252) | (130,000,000) | |
Purchases of investments in equity securities | (8,940,000) | |||
Proceeds from disposal of equity securities | 116,555,911 | 284,004,591 | ||
Proceeds from disposal of subsidiaries | 37,800,000 | 5,324,019 | 79,666,586 | 1,693,392 |
Loans to related parties | (168,695,802) | (564,818,942) | ||
Repayment from related parties | 43,555,000 | 268,133,500 | ||
Loans to third parties | (14,628,629) | (36,944,271) | ||
Repayment from third parties | 14,553,007 | 2,049,748 | 1,638,833 | 55,127,367 |
Loan to franchisees | (22,643,066) | (3,189,209) | (47,760,740) | (423,399,028) |
Repayment from franchisees | 121,145,169 | 17,062,940 | 95,844,426 | 133,380,285 |
Others | (1,118,387) | |||
Net cash (used in) generated from investing activities | (93,708,405) | (13,198,553) | 420,445,695 | (978,048,290) |
Financing activities: | ||||
Distribution to the shareholders (Note 1) | (40,999,458) | (320,253,160) | ||
Repurchase of ordinary shares | (19,706,775) | (2,775,641) | ||
Proceeds from bank loans | 174,000,000 | 24,507,387 | 305,600,000 | 858,000,000 |
Repayment of bank loans | (458,300,000) | (64,550,205) | (605,500,000) | (315,300,000) |
Loan from non-controlling interest | 272,500 | 38,381 | 5,103,299 | 9,689,903 |
Capital contribution from noncontrolling interest holders | 400,000 | 8,191,000 | ||
Net cash generated from (used in) financing activities | (303,734,275) | (42,780,078) | (335,396,159) | 240,327,743 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 32,086 | 4,520 | 1,248,139 | (1,412,474) |
Net (decrease) increase in cash and cash equivalents and restricted cash | 57,638,981 | 8,118,281 | 380,839,138 | (359,884,160) |
Cash and cash equivalents and restricted cash at the beginning of the year | 733,961,731 | 103,376,348 | 353,122,593 | 713,006,753 |
Cash and cash equivalents and restricted cash at the end of the year | 791,600,712 | 111,494,629 | 733,961,731 | 353,122,593 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (14,053,841) | (1,979,442) | (27,987,842) | (15,303,462) |
Income taxes paid | (61,735,423) | $ (8,695,252) | (59,441,030) | (50,604,876) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Consideration payable for acquisitions | 15,342,675 | |||
Share consideration of disposal of Urban Group | 16,971,057 | |||
Reconciliation of cash, cash and equivalents and restricted cash | ||||
Cash and cash equivalents | 765,547,547 | 699,244,375 | 330,198,744 | |
Restricted cash, current | 6,576,906 | 7,937,683 | 3,588,622 | |
Restricted cash, non-current | 19,476,259 | 26,779,673 | 19,335,227 | |
Total cash, cash and equivalents and restricted cash shown in the statements of cash flow | ¥ 791,600,712 | ¥ 733,961,731 | ¥ 353,122,593 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES GreenTree Hospitality Group Ltd. (the “Company”) was incorporated in the Cayman Islands on October 18, 2017. Alex S. Xu is the founder, Chief Executive Officer (“CEO”) and controlling shareholder of the Company. The Company and its subsidiaries are hereinafter referred to as the “Group.” On March 27, 2018, the Company completed an initial public offering (“IPO”) on the New York Stock Exchange and offered 10,200,000 ADSs representing 10,200,000 Class A ordinary shares at USD14.00 per ADS. 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”, ”Argyle Hotel Group”). On January 15, 2020, the Company issued 870,908 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 70% equity interest in Shandong Xinghui Urban Hotel Management Group Co., Ltd (“Urban”). On December 20, 2021, the Company announced that its board of directors approved the payment of a cash dividend of USD0.55 per ordinary share and the total amount of cash distributed for the dividend was USD56,667,425, among which USD50,243,715 (equivalent to RMB320,253,160) was paid in 2021 and the rest USD6,423,710 (equivalent to RMB40,999,458) was paid in January 2022. In October and December 2023, the Company repurchased 554,158 and 81,276 Class A ordinary shares respectively and the total amount of cash paid to repurchase these shares are RMB19,706,775 (USD2,775,641). In June 2022, the Group deconsolidated Argyle Beijing and its subsidiaries due to loss of effective control. In November 2022, the Group deconsolidated Urban and its subsidiaries (Note 4). In March 2023, the Group completed the acquisition of Da Niang Dumpling Catering Group Co., Ltd. (“Da Niang”) and Huge Cyber Ltd (“Bellagio”) and their subsidiaries, two restaurant chain businesses in China (collectively, the “Restaurant Business”) from GTI. As the Group and the Restaurant Business are under the common control of GTI before and after the acquisition, the acquisition was accounted for as a common control transaction in a manner similar to the pooling-of-interests method (Note 3). Therefore, the Group is required to recast its prior period financial statements to include the Restaurant Business for all periods presented as if the combination had been in effect since the inception of common control, which was prior to the beginning of the earliest presented period. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) The principal business activities of the Group are to develop leased-and-operated and franchised-and-managed economy hotels and restaurants under the “GreenTree”, “Da Niang” and “Lu Gang” (or “Bellagio”) brands in the PRC. The Group’s major direct and indirect invested subsidiaries consist of the following as of December 31, 2023: Date of Incorporation, Percentage of Merger or Place of Major Major subsidiaries Ownership Acquisition Incorporation Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. (“Shanghai Evergreen”) 100 % October 20, 2011 PRC Information technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co., Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co., Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co., Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co., Ltd. 100 % May 3, 2018 PRC Hotel property Suzhou Ganglongkaiyuan Hotel Management Co., Ltd. 100 % May 31, 2019 PRC Hotel property Shanghai Sipei Technology Co., Ltd. (“Shanghai Sipei”) 100 % October 20, 2011 PRC Information technology services Da Niang Dumpling Catering Group Co., Ltd. 100 % April 30, 2017 PRC Restaurant management Jiangsu Daniang Trading Co., Ltd 100 % April 30, 2017 PRC Wholesaling Jiangsu Daniang Food Co., Ltd 100 % April 30, 2017 PRC Food manufacturing Huge Cyber Ltd 83.9 % August 21, 2020 Hong Kong Restaurant management Bellagio (Shanghai) Catering Management Co., Ltd 83.9 % August 21, 2020 PRC Restaurant management Bellagio (Beijing) Catering Management Co., Ltd 83.9 % August 21, 2020 PRC Restaurant management Leased-and-operated hotels The Group owns hotel properties or leases hotel properties from property owners and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the “GreenTree” brand, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease, most initial terms of which ranges from 5 to 20 years. Leased-and-operated restaurants The Group leases properties from property owners and is responsible for restaurant operations and management. The Group offers uniform products in the restaurants in order to conform to the standards of the brands of Da Niang and Bellagio. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) 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 usually 5 to 20 years and is renewable only upon a mutual agreement between the Group and the franchisee. Franchised-and-managed restaurants 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 restaurant. The franchisee is responsible for the costs of restaurant decoration and improvement, as well as the costs of its operations. Wholesales Revenues from wholesales are primarily derived from agreements signed with supermarkets, distributors and restaurant franchisees for sales of prepared meals and frozen foods manufactured by the Group. |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. 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. 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Use of estimates (continued) 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 credit losses of financial instruments, fair value measurement and impairment of investments, the useful lives and impairment of property, plant and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, purchase price allocation, share-based compensation arrangements and discount rate used to measure lease liabilities. Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits placed with commercial banks or other financial institutions and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. All cash and cash equivalents are unrestricted as to withdrawal and use. Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantees for prepaid cards and deposits restricted due to lawsuit. Investments Short-term investment s Short-term investments include time deposits with maturities of less than one year and investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in debt in accordance with ASC topic 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as “held-to-maturity”, “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities, are included in earnings. Any realized gains or losses on the sale of the short-term investments, are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. The securities that the Group has the positive intent and the ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. Investments in equity securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321, Investments – Equity Securities 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments (continued) Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with and without readily determinable fair values and an available-for-sale debt investment. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in gains (losses and impairment) on equity securities held in the consolidated statements of comprehensive income (loss). For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures The available-for-sale debt investment is redeemable shares issued by a private company that is redeemable any time at the Group’s option, which are remeasured at fair value. All changes in the carrying amount of these debt investments are recognized in other comprehensive (loss) 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 amount of the total other-than-temporary impairment related to the credit loss shall be recognized in earnings. The amount of the total other-than-temporary impairment related to other factors shall be recognized in other comprehensive income (loss), net of applicable taxes. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Adoption of ASU 2016-13 On January 1, 2023, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Group changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance resulted in a cumulative-effect adjustment to increase the opening balance of accumulated losses on January 1, 2023, by RMB20,112,051 (USD2,832,723), primarily with respect to the allowance for credit losses for loans receivable and accounts receivable. Accounts receivable, net Accounts receivable are carried at the original invoice amounts less allowances for credit losses and the charges to the allowances are recorded as “General and administrative expenses” in the consolidated statements of comprehensive income (loss). Prior to the Group’s adoption of ASU 2016-13, 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. The Group establishes a provision for doubtful receivables when there is objective evidence that the Group may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposure, as well as the historical trends of collections. After the adoption of ASU 2016-13, the allowance for credit losses for accounts receivable is based upon the current expected credit losses (“CECL”) model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Group applies a roll rate-based method that considers historical collectability based on past due status, the age of the balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect from customers. 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. Loans receivable, net Loans receivable are carried at the original loan principal balances less allowance for uncollectible accounts. The accrued interests, gross and net of allowances, are insignificant for all the periods presented. The Group classified loans receivable as long-term or short-term investments according to their contractual maturity. The estimated credit losses charged to the allowance is classified as “Other general expenses” in the consolidated statements of comprehensive income. Prior to the adoption of ASU 2016-13, 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. After the adoption of ASU 2016-13, the Group assesses collectability of its loans receivable individually or on a collective basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Group applies a roll rate-based method and adjusted for various qualitative factors that reflect current conditions and reasonable and supportable forecasts of future economic conditions. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment, net Property, plant and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property, plant 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 and plants 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, plant 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, plant and equipment are capitalized as additions to the related assets. Gain or loss on disposal of property, plant and equipment, if any, is recognized in the consolidated statements of comprehensive income (loss) as the difference between the net sales proceeds and the carrying amount of the underlying asset. Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with indefinite useful lives are not amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired in accordance with ASC 350-30, Intangibles-Goodwill and Other: General Intangibles Other than Goodwill. 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. 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: Finite-lived trademarks 10 years Technology 10 years Network rights 10 years Purchased software 5-10 years Reacquired rights the remaining franchise term 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Business combinations The Group accounts for business combinations, except for acquisitions of entities under common control, under the purchase method in accordance with ASC 805, Business Combinations Acquisitions of entities under common control requires retrospective combination of entities for all periods presented, as if the combination had been in effect since the inception of common control. Assets and liabilities transferred are recorded at their historical carrying amounts on the date of the transfer. The difference between purchase consideration and historical value of the net assets on the date of the transfer are recognized in total stockholders’ equity on the consolidated balance sheets. Goodwill Goodwill represents the excess of the purchase price over the fair values of the identifiable assets acquired less liabilities assumed of an acquired business. Goodwill arose from business combinations is not amortized, but instead tested for impairment at the reporting unit level at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. A reporting unit is an operating segment or one level below the operating segment. As of December 31, 2022 and 2023, the Group has three reporting units, consisting of hotel business, Da Niang business and Bellagio business. 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 On disposal of a portion of reporting unit that constitutes a business, the attributable amount of goodwill is included in the determination of the amount of gain or loss recognized upon disposal. When the Group disposes of a business within the reporting unit, the amount of goodwill disposed is measured on the basis of the relative fair value of the business disposed and the portion of the reporting unit retained. No impairment was recorded for the years ended December 31, 2021 and 2023. Impairment loss of RMB91,236,480 of goodwill was recorded before the Group deconsolidated Argyle Beijing and Urban during the year ended December 31, 2022 (Note 4). 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Impairment of long-lived assets The Group evaluates the recoverability of its long-lived assets for impairment individually or as a group at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of the other assets and liabilities. Whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, the Group compares the carrying amount of the asset (or group of assets) to the sum of future undiscounted net cash flows expected to result from the use of the asset (or group of assets) and its eventual disposition. If the carrying amount is higher than the sum of undiscounted future cash flows, an impairment loss is measured based on the excess of the carrying amount of the asset (or group of assets) over its fair value and recorded in “Other general expenses” in the consolidated statements of comprehensive income (loss). The carrying amount of the asset (or the long-lived assets in the asset group on a pro rata basis using the relative carrying amounts) is reduced to the extent not lower than the fair value of the asset. The adjusted carrying amounts after an impairment charge represent the new cost basis and is depreciated over the remaining useful lives. Fair values of the long-lived assets (or groups of assets) were estimated by the Group based on the income approach using the discounted cash flow associated with the underlying assets. The Group recognized impairment losses of RMB6,246,986, RMB53,244,063 and RMB40,559,449 (USD5,712,679) for the years ended December 31, 2021, 2022 and 2023, respectively, out of which impairment losses of nil, RMB48,306,360 and RMB40,559,449 (USD5,712,679) for the years ended December 31,2021, 2022 and 2023, respectively, were charge to the long-lived assets (excluding indefinite-lived intangible asset, Note 10) in hotel business segment and impairment losses of RMB6,246,986, RMB4,937,703 and nil for the years ended December 31, 2021, 2022 and 2023, respectively, were charge to the long-lived assets in restaurant business segment. Revenue recognition Leased and operated hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations including the rental of rooms. Each of these services represent 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 when the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties. In accordance with the provisions of ASC 842, since the Group has not been relieved as the primary obligor of the head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. The Group records sub-lease rental revenue over the term of the subleases on a straight-line basis. The sublease rental revenue included in leased-and-operated hotels revenue amounted to RMB74,689,226, RMB61,578,703 and RMB102,194,590 (USD14,393,807) for the years ended December 31, 2021, 2022 and 2023, respectively. Leased and operated restaurant revenues Revenues from leased-and-operated restaurants are primarily derived from restaurant operations, including the dine-in orders in restaurants and take-out orders sold through third-party platforms. Revenues are recognized when a customer takes possession of the food, which is when our obligation to perform is satisfied. Payment terms with respect to these sales are short-term in nature. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: ● Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. ● System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. ● Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, the Group has a performance obligation to provide franchisees a license to its hotel system intellectual property for use of certain of its brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. During the years ended December 31, 2021, 2022 and 2023, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB131,027,473, RMB115,738,098 and RMB134,798,805 (USD18,986,015), respectively. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Franchise and managed restaurant revenues Franchise and managed restaurant revenues consist of initial one-time non-refundable franchise fees and continuing franchise fees. 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. Such revenues have been insignificant during the presented periods. 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. Continuing franchise fees are based upon a percentage of franchisee sales, as those sales occur. 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 monthly over the term of the agreement as those amounts become payable. Wholesale and other revenues Wholesale revenues are primarily derived from sales of prepared meals and frozen foods to supermarkets, distributors and restaurant franchisees. The revenues from product sales are recognized at a point in time when the control of the product is transferred to the customer. The Group recognizes revenues net of discounts, return allowances and sales rebate. The Group estimates product returns based on historical experience, which historically have not been significant. Payment terms with respect to these sales are short-term in nature. Other revenues are derived from hotel business segment selling hotel related products through the Group’s online mall and to franchisees. Revenues are recognized upon customers’ acceptance. Such revenues have been insignificant during the presented periods. Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three five years Membership points 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. The Group recognized revenue net of reimbursement paid to franchisees as its performance obligation is to facilitate the transaction between the member and the franchised and managed hotels. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) PRC Value-Added Taxes and related tax surcharges The accommodation services of the Group are subject to 6% of Value-Added Taxes (“VAT”) and the restaurant services of the Group are subject to 13% of Value - Added Taxes. Revenues are recorded net of VAT. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income (loss) as incurred, and amounted to RMB37,347,260, RMB35,872,725 and RMB24,170,599 (USD3,404,358) for the years ended December 31, 2021, 2022 and 2023, 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, 2021, 2022 and 2023, the Group received financial subsidies of RMB16,993,539, RMB11,466,168 and RMB13,076,243 (USD1,849,483), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. Interest Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. Leases The Group leases properties from property owners. In evaluating whether an agreement constitute a lease. the Group reviews the contractual terms to determine which party obtains both the economic benefits and control of the assets at the inception of the contract. The Group categorizes leases with contractual terms longer than twelve months as either operating or finance lease at the commencement date of a lease. However, the Group has no finance leases for any of the periods presented. The Group recognizes a lease liability for future fixed lease payments and a right-of-use (“ROU”) asset representing the right to use the underlying asset for the lease term. The lease term is based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise the option. Lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term using the rate implicit in the lease, if available, or the Group’s incremental borrowing rate. As its leases do not provide an implicit borrowing rate, the Group uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. Current maturities of operating lease liabilities are classified as operating lease liabilities, current in the Group’s consolidated balance sheets. Most leases have initial terms ranging from 5 to 20 years. The Group’s lease agreements may include non-lease components, mainly common area maintenance, which are combined with the lease components as the Group elects to account for these components as a single lease component, as permitted. Besides, the Group’s lease payments are fixed. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Group’s lease agreements do not contain any significant residual value guarantees or restricted covenants. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Leases (continued) The ROU assets are measured at the amount of the lease liabilities with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by the Group, deferred rent and lease incentives, and any off-market terms (that is, favorable or unfavorable terms) present in the lease when the Group acquired leases in a business combination in which the acquiree acts as a lessee. The Group evaluates the carrying value of ROU assets if there are indicators of impairment and reviews the recoverability of the related asset group. The Group reassesses of a contract is or contains a leasing arrangement and re-measures ROU assets and liabilities upon modification of the contract. The Group will derecognize ROU assets and liabilities, with difference recognized in the income statement on the contract termination. Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estim |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATIONS Common control acquisition in 2023: In March 2023, the Group completed acquisition of the Restaurant Business from GTI with a total consideration amounting RMB399,800,000 (USD56,310,652), which effectively settled the amounts of RMB326,440,000, RMB28,278,520 and RMB45,081,480 due from GTI, Beifu Hongkong Indutrial Co, Limited (“Beifu HK”) and Shanghai Aotao Industrial Co., Ltd (together with its subsidiaries and VIE, known as “Aotao”), respectively, as of December 31, 2022 (Note 25). Before and after the acquisition, the Restaurant Business and the Group were both ultimately controlled by GTI. Thus, the acquisition was accounted for as business combinations under common control using the pooling-of-interests method. The Group as the receiving entity recast its comparative consolidated financial statements for the prior periods as if the Restaurant Business was part of the Group since the inception of common control. Assets and liabilities received were recorded at historical carrying amounts of the Restaurant Business on the date of the transfer with no gain or losses recorded. The only goodwill that is recognized is any existing goodwill relating to the acquired business. The income (loss) from operations, income (loss) before income taxes and share of losses in equity method investments, net income (loss) and other comprehensive loss, net of tax for the year ended December 31, 2021 and 2022, have been recast as follows: Year Ended December 31,2021 As previously reported Restaurant Business As adjusted RMB RMB RMB Income (loss) from operations 153,923,380 (24,723,556) 129,199,824 Income(loss) before income taxes and share of losses in equity method investments 222,182,847 (26,706,604) 195,476,243 Net income(loss) 113,676,839 (30,104,953) 83,571,886 Other comprehensive loss, net of tax (3,705,740) — (3,705,740) For the year ended December 31, 2021, the Company’s basic and diluted earnings per share as reported was RMB1.14 to both class shares both class shares Year Ended December 31,2022 As previously reported Restaurant Business As adjusted RMB RMB RMB Loss from operations (443,141,983) (43,387,847) (486,529,830) Loss before income taxes and share of losses in equity method investments (459,060,589) (45,103,465) (504,164,054) Net loss (415,066,472) (46,622,981) (461,689,453) Other comprehensive loss, net of tax (14,148,803) — (14,148,803) For the year ended December 31, 2022, the Company’s basic and diluted loss per share as reported was RMB3.71 to both shares shares both shares class 3. BUSINESS COMBINATIONS (CONTINUED) Business combinations in 2021: During the years ended 2021, the Group completed three business combinations. The total consideration amounted to RMB23,000,000. The consideration paid is RMB19,530,000. The results of the acquired hotel’s operation have been included in the Group’s consolidated financial statements since its respective dates of acquisition. The Group completed the valuations necessary to assess the fair value of the acquired assets and liabilities and the non-controlling interests (if applicable) with the assistance from an independent valuation firm, resulting from which the amounts of goodwill were determined and recognized as of the respective acquisition dates. Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions. The initial accounting is incomplete as the valuations of intangible assets. The net revenue and net loss of the acquire included in the consolidated statements of comprehensive income for the year ended December 31, 2021 were not material. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Group’s consolidated results of operations. The following is a summary of the fair values of the aggregate assets acquired and liabilities assumed: 2021 Amortization Period Property, plant and equipment 92,075 3 Intangible assets Trademark 36,896,000 10 years Goodwill 20,588,461 Noncontrolling interest (34,576,536) Total 23,000,000 |
DECONSOLIDATIONS
DECONSOLIDATIONS | 12 Months Ended |
Dec. 31, 2023 | |
DECONSOLIDATIONS | |
DECONSOLIDATIONS | 4. DECONSOLIDATIONS Deconsolidation of Argyle The Group became the major shareholder of Argyle Beijing and its subsidiaries (“Argyle”) in April 2019. Starting late May 2022, the Group has been in a dispute with Mr. Kevin Zhang, the minority shareholder and general manager of Argyle, as to the performance of relevant transaction documents and/or compliance with local laws and regulations by Mr. Zhang. Since then, Mr. Zhang refused, and caused other management team members of Argyle to refuse, to provide the Group with any operational or financial information of Argyle. The Group passed a board resolution to replace Mr. Zhang as Argyle’s general manager with effect from June 1, 2022. However, Mr. Zhang continued to run the daily operations of Argyle and refused to transfer any of his roles and responsibilities to the new management team appointed by the Group. Mr. Zhang also refused, and caused others at Argyle to refuse, to hand over Argyle’s assets, including office space, original licenses, official seals and bank security tokens, which are needed to conduct operational and financial activities, and effectively denied the Group’s access to and control of the bank accounts of Argyle. Despite the Group legally holding a 60% equity ownership in Argyle, the Group concluded that starting from June 1, 2022, it lost the power and ability to direct the relevant activities of Argyle in accordance with ASC 810-10-40-4 and ASC 810-10-55-4A: ● The Group could not access or obtain sufficient financial information or operational documents, and has effectively lost the power and ability to manage funds and operations of Argyle; and ● The minority interest shareholder has obtained substantive participating rights as defined in ASC 810-10-25-11, which would overcome the presumption that the Group with a majority voting interest shall consolidate Argyle. Specifically, Mr. Zhang as the former general manager of Argyle by the above-mentioned actions and inactions effectively took the rights and responsibilities for implementing Argyle’s policies and procedures; and establishing operating and capital decisions of Argyle. 4. DECONSOLIDATIONS Deconsolidation of Argyle (continued) As a result, the Group has deconsolidated Argyle since June 2022. As of December 31, 2023, the dispute with Mr. Zhang was still ongoing. The Group conducted an impairment assessment and recorded impairment of RMB17,054,641, RMB700,762 and RMB42,198,904 for the property, plant and equipment, intangible assets with definite lives and goodwill respectively, related to the business of Argyle before the deconsolidation. The Group measured the retained interest in Argyle at the then fair value of RMB48,000,000 estimated with the assistance of a third-party independent valuer and recorded a disposal loss of RMB13,944,925. The impairment of long-lived assets and disposal losses before and upon the deconsolidation in 2022 are included in “Other general expenses” in the consolidated statements of comprehensive income (loss). The Group has been and will continue to vigorously pursue all legal remedies available to it; however, it has not been able to make any management decisions or have any meaningful influence over the operation of Argyle. Therefore, the Group accounts for its equity interests in Argyle using the measurement alternative method under ASC 321 (Note 13) and an impairment loss of RMB42,000,000 was subsequently recorded in “(Losses and impairment) Gains on equity securities held” in the consolidated statements of comprehensive income (loss) for the year ended December 31, 2022. The carrying value of the investment in Argyle at December 31, 2022 and 2023 was insignificant. The Group estimated fair value using the income approach and the market approach. The fair value determined using the income approach was compared with comparable market data and reconciled, as necessary, which is determined by using information including but not limited to the future cash flow forecast, discount rate, and a discount for lack of marketability and control. Deconsolidation of Urban In November 2022, the Group and the minority shareholder of Urban entered into definitive agreements for the minority shareholder and its designated person to repurchase all of the equity interest in Urban and its subsidiaries held by the Group. As of November 25, 2022, the transaction was completed and since then the Group deconsolidated Urban. The total consideration of RMB142,971,057 consisted of 870,908 ordinary shares of the Group with a fair value of RMB16,971,057 and RMB126,000,000 in cash. RMB88,200,000 of total cash consideration was received in 2022 and the remaining receivables are included in “Other current assets” of consolidated balance sheets as of December 31,2022. The shares and remaining cash consideration amounting RMB37,800,000 were received in 2023. The Group conducted impairment assessments and recognized impairment losses of RMB12,000,345, and RMB10,640,503 for the indefinite-lived trademark and property, plant and equipment, respectively, before the deconsolidation. The Group also recorded an impairment loss of RMB49,037,576 for the goodwill related to the business of Urban and recognized a disposal loss of RMB855,223 for the year ended December 31,2022. Disposal losses and all impairment losses of long-lived assets excluding goodwill are included in “Other general expenses” in the consolidated statements of comprehensive income (loss). The Group estimated fair value using the income approach and the market approach. The fair value determined using the income approach was compared with comparable market data and reconciled, as necessary. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 5. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Leased and operated revenues 963,727,199 700,022,649 787,814,342 110,961,329 Hotel 391,960,031 338,506,220 490,924,060 69,145,208 Restaurant 571,767,168 361,516,429 296,890,282 41,816,121 Franchise and managed revenues 782,572,078 588,463,368 705,244,948 99,331,673 Hotel 774,359,348 582,441,077 696,321,236 98,074,795 Restaurant 8,212,730 6,022,291 8,923,712 1,256,878 Wholesales and others 221,515,742 180,588,258 134,198,399 18,901,449 Total 1,967,815,019 1,469,074,275 1,627,257,689 229,194,451 Substantially all revenues are generated in the PRC. Contract Balances The Group’s payments from customers are based on the billing terms established in contracts. Customer billings are classified as accounts receivable when the Group’s right to consideration is unconditional. If the right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Our contract assets are insignificant at December 31, 2022 and 2023. 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, 2022 2023 2023 RMB RMB USD (As adjusted) Advance from customers 25,604,363 22,393,097 3,154,002 Deferred revenue-current 193,352,239 186,281,838 26,237,248 Deferred revenue-non-current 234,374,415 207,905,769 29,282,915 Total contract liabilities 453,331,017 416,580,704 58,674,165 The deferred revenue balances above, as of December 31, 2022 and 2023 were comprised of the following: Years Ended December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Initial fees received from franchisees owners 193,210,093 169,240,060 23,836,964 Cash received for membership fees and not recognized as revenue 138,656,460 126,864,736 17,868,524 Cash received for prepaid card and sublease 43,719,235 40,828,943 5,750,636 Deferred revenue related to the membership program 52,140,866 57,253,868 8,064,039 Total deferred revenue 427,726,654 394,187,607 55,520,163 5. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Contract Balances (continued) The Group recognized revenues that were previously deferred as contract liabilities of RMB181,300,596 and RMB157,377,305 (USD22,166,130) during the years ended December 31, 2022 and 2023, 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, 2023, the Group had RMB169,240,060 (USD23,836,964) of deferred revenues related to initial fees received from franchisees owners are expected to be recognized as revenues over the remaining contract periods over one one The Group did not estimate revenues expected to be recognized related to the Group’s unsatisfied performance for the following: ● Revenues related to on-going management and franchise service fees, as they are considered sales-based royalty fees. ● Revenues related to central reservation system usage fees, IT system maintenance fees, and reimbursement for hotel manager fee, as the related revenues from the satisfaction of these performance obligations is recognized when the Group is entitled to invoice the amount. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 6. ACCOUNTS RECEIVABLE, NET Accounts receivable, net is comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Receivables from franchise and managed hotels 84,191,516 82,023,109 11,552,713 Receivables from third-party merchandisers for sublease rental 9,911,179 23,923,294 3,369,526 Receivable from individual and corporate customers and travel agents 36,180,399 13,872,840 1,953,949 Receivables from distributors, supermarkets and franchise and managed restaurants 13,474,544 7,600,652 1,070,529 Less: allowances (8,840,708) (3,532,016) (497,474) Total 134,916,930 123,887,879 17,449,243 6. ACCOUNTS RECEIVABLE, NET (CONTINUED) The movements in the allowance for credit losses were as follows: 2022 2023 RMB RMB USD (As adjusted) Balance of the beginning of the year 3,763,286 8,840,708 1,245,188 Effect on the opening balance of adoption of ASU 2016-03 — 1,504,518 211,907 Provision 29,405,627 12,377,993 1,743,404 Write-off (24,328,205) (19,191,203) (2,703,025) Balance of the end of the year 8,840,708 3,532,016 497,474 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
INVENTORIES | 7. INVENTORIES The Group’s inventories consist primarily of products to be sold to customers and packing materials as follows: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Products 9,292,497 9,993,021 1,407,488 Hotel consumables 2,236,082 5,090,286 716,952 Raw materials 7,688,012 3,615,120 509,179 Packing materials and others 2,704,211 1,764,063 248,462 Total 21,920,802 20,462,490 2,882,081 |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2023 | |
LOANS RECEIVABLE, NET | |
LOANS RECEIVABLE, NET | 8. LOANS RECEIVABLE, NET Loans receivable, net is comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Loans receivable, current portion Franchisees 197,473,408 374,022,230 52,679,930 Third parties 38,862,429 32,595,889 4,591,035 Less: allowances (54,668,667) (277,097,025) (39,028,300) Total 181,667,170 129,521,094 18,242,665 Loans receivable, non-current portion Franchisees 373,477,244 90,484,128 12,744,423 Third parties 28,344,271 20,000,000 2,816,941 Less: allowances (224,649,006) (39,793,823) (5,604,843) Total 177,172,509 70,690,305 9,956,521 Loans receivable to franchisees represent loan agreements entered with certain franchisees to finance the renovation of certain franchised-and-managed hotels with maturity from one month to six years and the interest rate from 4.7% to 9.9% per annum. Loans receivable to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from one year to three years and the interest rate from 7.9% to 18.0% per annum. 8. LOANS RECEIVABLE, NET (CONTINUED) The Group recognized allowances of RMB99,886,003, RMB161,431,671 and RMB15,396,673 (USD2,168,576) in relation to loans receivables in “Other general expenses” in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2021, 2022 and 2023, respectively. The following table presents the aging of past-due gross loans receivable as of December 31, 2022 and 2023: 1 to 3 months 4 to 6 months 7 to 12 months Over 1 year past due past due past due past due Total RMB RMB RMB RMB December 31, 2022 (As adjusted) 37,705,971 17,747,676 101,491,036 134,179,464 291,124,147 December 31, 2023 16,572,823 24,199,825 63,451,054 215,286,707 319,510,409 December 31, 2023 (USD) 2,334,233 3,408,474 8,936,894 30,322,499 45,002,100 Movement of allowance for loans receivable for the year ended December 31, 2022 and 2023 are as follows: 2022 2023 RMB RMB USD (As adjusted) Balance of the beginning of the year 117,886,002 279,317,673 39,341,071 Effect on the opening balance of adoption of ASU 2016-03 — 22,176,502 3,123,496 Provision 161,431,671 15,396,673 2,168,576 Balance of the end of the year 279,317,673 316,890,848 44,633,143 Evaluated for impairment on an individual basis 116,852,875 116,302,348 16,380,843 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 9. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consists of the following: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Buildings and plants 685,779,415 685,779,415 96,590,010 Leasehold improvements 700,721,935 705,905,133 99,424,659 Furniture, fixtures and equipment 291,802,076 289,733,445 40,808,102 Motor vehicles 6,852,254 9,358,564 1,318,126 Total 1,685,155,680 1,690,776,557 238,140,897 Less: Accumulated depreciation (775,084,743) (841,035,233) (118,457,335) Impairment (49,354,581) (54,747,393) (7,711,009) Construction in progress 22,304,172 19,955,095 2,810,617 Property, plant and equipment, net 883,020,528 814,949,026 114,783,170 Depreciation expense was RMB114,192,402, RMB119,299,006 and RMB110,184,167 (USD15,519,115) for the years ended December 31, 2021, 2022 and 2023, respectively. 9. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED) As of December 31, 2022, three of the Group’s buildings and a land use right with a net carrying amount of approximately RMB288,220,463 (USD40,595,003) were pledged to secure general banking facilities granted to the Group, respectively (Note 15). As of December 31, 2023, these three buildings and the land use right had been released of pledge (Note 15). |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET As of December 31, 2022(As adjusted) Gross carrying Accumulated Accumulated Net carrying value impairment amortization value RMB RMB RMB RMB Indefinite-lived intangible asset: Da Niang Trademark 495,000,000 375,554,000 — 119,446,000 Finite-lived intangible assets: Trademarks 41,435,000 — 7,298,266 34,136,734 Technology 4,200,000 — 1,470,000 2,730,000 Network rights 210,755 — 209,550 1,205 Purchased software 23,951,358 — 21,424,106 2,527,252 Reacquired rights 2,531,418 — 1,685,904 845,514 Others 435,185 — 435,185 — Total 567,763,716 375,554,000 32,523,011 159,686,705 As of December 31, 2023 Gross carrying Accumulated Accumulated value impairment amortization Net carrying value Net carrying value RMB RMB RMB RMB USD Intangible asset with indefinite life: Da Niang Trademark 495,000,000 391,580,999 — 103,419,001 14,566,262 Finite-lived intangible assets: Trademarks 41,435,000 20,305,606 11,918,554 9,210,840 1,297,320 Technology 4,200,000 — 1,890,000 2,310,000 325,357 Network rights 210,755 — 209,550 1,205 170 Purchased software 24,888,810 — 22,772,548 2,116,262 298,069 Reacquired rights 2,531,418 — 1,868,033 663,385 93,435 Others 435,185 — 435,185 — — Total 568,701,168 411,886,605 39,093,870 117,720,693 16,580,613 Amortization expense of intangible assets for the years ended December 31, 2021, 2022 and 2023 amounted to RMB5,144,106, RMB6,039,895 and RMB6,686,070 (USD941,714), respectively. Due to unexpected closures of leased-and-operated restaurants for varying reasons in each year, the Group recognized impairment losses of RMB14,047,000, RMB18,892,000 and RMB16,027,000 (USD2,257,356) for the years ended December 31, 2021, 2022 and 2023, respectively, to Da Niang Trademark in restaurant business segment. The Group evaluated the fair value of Da Niang Trademark using the relief from royalty method with the assistance of a third-party valuer based on assumptions including projected revenue, royalty rate and discount rate, that involve considerable management judgements. Accordingly, actual results may vary significantly from the Group estimates as they are forward-looking and include assumptions about economic and market conditions with uncertain future outcome. 10. INTANGIBLE ASSETS, NET (CONTINUED) The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2024 5,134,456 723,173 2025 2,409,138 339,320 2026 1,977,189 278,481 2027 1,608,595 226,566 2028 1,200,812 169,131 Thereafter 1,971,502 277,680 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | 11. LEASES The Group has operating leases arrangements for their leased and operated hotels. A summary of supplemental information related to operating leases as of December 31, 2022 and 2023 is as follows: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Operating lease right-of-use assets 1,674,595,179 1,535,330,762 216,246,815 Operating lease liabilities, current 272,700,888 267,536,846 37,681,777 Operating lease liabilities, non-current 1,516,274,996 1,391,909,308 196,046,326 Total operating lease liabilities 1,788,975,884 1,659,446,154 233,728,103 Right-of-use assets obtained in exchange for operating lease liabilities 5,636,290 154,520,189 21,763,713 Weighted average remaining lease term (in years) 11 9 Weighted average discount rate 5 % 4 % Lease expense for all the Group’s operating leases for the years ended December 31, 2021, 2022 and 2023 were RMB375,446,341, RMB319,102,819 and RMB279,301,541(USD39,338,799), respectively. A summary of maturity of operating lease liabilities under the Group’s non-cancelable operating leases as of December 31, 2023 is as follows: As of December 31, 2023 RMB USD 2024 275,660,096 38,825,913 2025 205,917,308 29,002,846 2026 180,402,897 25,409,217 2027 161,971,532 22,813,213 2028 142,867,512 20,122,468 Thereafter 983,318,006 138,497,445 Total future lease payments 1,950,137,351 274,671,102 Less: imputed interest 290,691,197 40,942,999 Total operating lease liabilities 1,659,446,154 233,728,103 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL | |
GOODWILL | 12. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023 were as follows: Hotel Business Restaurant Business Total Balance as of January 1, 2022(As adjusted) 120,819,948 147,499,000 268,318,948 Impairment (Note 4) (91,236,480) — (91,236,480) Balance as of December 31,2022 29,583,468 147,499,000 177,082,468 Balance as of December 31,2023 29,583,468 147,499,000 177,082,468 Balance as of December 31,2023(USD) 4,166,744 20,774,800 24,941,544 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS | |
INVESTMENTS | 13. INVESTMENTS Short-term investments Short-term investments as of December 31, 2022 and 2023 consisted of the following: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Wealth management products 156,031,572 287,711,617 40,523,334 Time deposits 30,000,000 130,000,000 18,310,117 Total 186,031,572 417,711,617 58,833,451 Investments in equity securities with readily determinable fair values Equity securities with readily determinable fair value represent investments in the equity securities of publicly listed companies, for which the Group does not have significant influence. Total unrealized and realized gains and losses of investments in equity securities in current assets for the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Total net losses recognized (9,195,509) (2,622,450) (15,344,616) (2,161,244) Less: Net realized (losses) gains on equity securities sold (452,014) 11,294,390 — — Net unrealized losses recognized on equity securities held (8,743,495) (13,916,840) (15,344,616) (2,161,244) 13. INVESTMENTS (CONTINUED) Long-term investments As at December 31, 2022 and 2023, long-term investments consisted of the following: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd(“Wiselong”) 26,118,102 25,630,564 3,609,989 Other 9,795,562 7,274,032 1,024,526 Equity securities with readily determinable fair values 27,408,447 38,324,789 5,397,934 Equity securities without readily determinable fair values 9,826,143 9,826,143 1,383,984 Available-for-sale debt investment 103,706,206 103,703,272 14,606,300 Total 176,854,460 184,758,800 26,022,733 Equity securities with readily determinable fair values Total unrealized and realized gains and losses of equity securities with readily determinable fair values included in long-term investments for the years ended December 31, 2021, 2022 and 2023 were as follows: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Total net gains (losses) recognized 15,623,340 (15,126,672) 9,966,512 1,403,754 Less: Net realized gains on equity securities sold 14,058,448 — — — Net unrealized gains (losses) recognized on equity securities held 1,564,892 (15,126,672) 9,966,512 1,403,754 Equity securities without readily determinable fair values The equity investments without readily determinable fair value held as of December 31, 2022 and 2023 were as follows: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Initial cost 51,523,212 51,523,212 7,256,893 Cumulative unrealized gains 302,931 302,931 42,667 Cumulative unrealized losses (including impairment) (42,000,000) (42,000,000) (5,915,576) Total carrying value 9,826,143 9,826,143 1,383,984 During the year ended December 31, 2022, impairment of RMB42,000,000 was recorded in “Other general expenses” in the consolidated financial statements of comprehensive income (loss). No impairment was recorded during the years ended December 31, 2021 and 2023. Available-for-sale debt securities Available-for-sale debt securities represent the Group’s investment in 30% interest of Yibon, which the Group has the option to require Yibon to redeem the investment at the Group’s discretion. No impairment was recorded for this investment during any of other presented periods. 13. INVESTMENTS (CONTINUED) Long-term investments (continued) Available-for-sale debt securities (continued) Short-term and long-term debt securities as of December 31, 2022 and 2023 were shown as below: As of December 31, 2022 (As adjusted) Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Wealth management products 156,031,572 — — — — 156,031,572 Available-for-sale debt securities of Yibon 103,701,474 — — 2,791,663 (2,786,931) 103,706,206 As of December 31, 2023 Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Wealth management products 287,711,617 — — — — 287,711,617 Available-for-sale debt securities of Yibon 103,701,474 — — 2,791,663 (2,789,865) 103,703,272 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
OTHER ASSETS | |
OTHER ASSETS | 14. OTHER ASSETS As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Current Receivable from on-line payment platforms 30,037,799 39,540,599 5,569,177 Interest receivable 4,944,657 13,666,330 1,924,862 Deposits 16,777,691 16,066,771 2,262,957 Advance to suppliers 9,168,211 12,190,988 1,717,065 VAT recoverable 9,633,270 13,096,157 1,844,555 Others 45,201,069 22,486,277 3,167,125 Total 115,762,697 117,047,122 16,485,741 Non-current Rental deposit 54,765,709 56,649,069 7,978,855 Purchase and rental deposits for buildings 192,305,859 192,305,859 27,085,714 VAT recoverable 20,123,329 17,872,226 2,517,250 Others 44,875,793 31,613,426 4,452,657 Less: impairment provision (192,305,859) (193,714,980) (27,284,184) Total 119,764,831 104,725,600 14,750,292 Purchase and rental deposits for certain real estate properties paid to a third party were full provided due to the financial crisis of the counterparty. The provision of RMB192,305,859 was recorded in “Other general expenses” of the consolidated statements of comprehensive loss for the year ended December 31, 2022. |
BANK LOANS
BANK LOANS | 12 Months Ended |
Dec. 31, 2023 | |
BANK LOANS | |
BANK LOANS | 15. BANK LOANS Short-term bank loans Short-term bank loans consisted of RMB denominated borrowings from financial institutions in the PRC that are repayable within one year. The weighted average interest rates for the outstanding short-term bank loans as of December 31, 2022 and 2023 were 4.09% and 3.85%, respectively. In February 2023, the Group entered into a secured loan agreement with Shanghai Pudong Development Bank, pursuant to which the Group was entitled to borrow a RMB denominated loan of RMB117,000,000 for interest rate at a fixed annual interest rate of 3.85% and maturity date on March 24, 2024. As of December 31, 2023, the remaining amount was amounting to RMB116,800,000 (USD16,450,936), which would be paid in 2024. The Group collateralized such borrowing with time deposits of RMB130,000,000 with maturities of less than one year. Long-term bank loans In December 2021, the Group entered into a secured loan agreement with Shanghai Pudong Development Bank, pursuant to which the Group was entitled to borrow a RMB denominated loan of RMB152,000,000 for interest rate at a fixed annual interest rate of 5% and maturity date on February 17, 2023. The Group collateralize such borrowing with short-term investments and long-term time deposits of RMB30,000,000 and RMB130,000,000, respectively. The amount RMB152,000,000 (USD21,408,752) were repaid during 2023. In December 2021, pursuant to the secured loan agreement with Bank of DaLian, the Group borrowed a secured RMB denominated loan of RMB200,000,000 for interest rate at a fixed annual interest rate of 5% and maturity date on December 27, 2024. The remaining amount RMB180,000,000(USD25,352,470) were all repaid during 2023. In November 2023, the Group entered into a secured loan agreement with Shanghai Pudong Development Bank, pursuant to which the Group was entitled to borrow a RMB denominated loan of RMB57,000,000 for interest rate at a fixed annual interest rate of 3.50% and maturity date on November 14, 2026. The Group collateralize such borrowing with long-term time deposits of RMB63,340,000. As of December 31, 2023, aggregate loan principal payments on long-term borrowings are due according to the following schedule: Year ending December 31, RMB USD 2024 200,000 28,169 2025 200,000 28,169 2026 56,600,000 7,971,944 Total 57,000,000 8,028,282 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 16. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Payable to franchisees 208,604,931 210,052,467 29,585,271 VAT and tax surcharges 121,470,798 129,067,113 18,178,723 Construction payable 15,587,528 22,211,219 3,128,385 Deposits payable 20,162,737 24,759,270 3,487,270 Payable for business combination and asset acquisitions 13,342,676 13,743,026 1,935,664 Others 60,593,723 59,999,622 8,450,770 Total 439,762,393 459,832,717 64,766,083 |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
OTHER LONG-TERM LIABILITIES | |
OTHER LONG-TERM LIABILITIES | 17. OTHER LONG-TERM LIABILITIES As of December 31, 2022 and 2023, other long-term liabilities of RMB124,504,589 and RMB111,711,750 (USD15,734,271), respectively, are mainly comprised of deposits from franchisees. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES | |
ORDINARY SHARES | 18. ORDINARY SHARES The Group’s Class A and Class B ordinary shares are identical in all respects except for voting and conversion rights. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof, and Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. On all matters upon which the holders are entitled to vote, the Class A shares and Class B shares then outstanding shall constitute 39.0% and 61.0% of the total voting power of the issued and outstanding shares of the Group, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 19. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The changes in accumulated other comprehensive income by component, net of tax, were as follows: Unrealized Foreign gains(losses) currency on available- translation for-sale adjustments investments Total RMB RMB RMB Balance at January 1, 2022 (As adjusted) 39,089,244 2,791,663 41,880,907 Net current-period other comprehensive losses (11,361,872) (2,786,931) (14,148,803) Balance at December 31, 2022 (As adjusted) 27,727,372 4,732 27,732,104 Net current-period other comprehensive gains (losses) 672,112 (2,934) 669,178 Balance at December 31, 2023 28,399,484 1,798 28,401,282 Balance at December 31, 2023 (USD) 3,999,984 253 4,000,237 |
OPERATING COSTS
OPERATING COSTS | 12 Months Ended |
Dec. 31, 2023 | |
OPERATING COSTS | |
OPERATING COSTS | 20. OPERATING COSTS Operating costs include all direct costs incurred in the operation of the leased-and-operated hotels and restaurants, cost of providing franchise services, cost of manufacturing products and consist of the following: Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Rental 373,927,843 317,562,563 277,652,599 39,106,551 Utilities 49,096,488 44,864,225 42,865,151 6,037,430 Personnel cost 214,561,372 167,637,463 145,561,157 20,501,860 Depreciation and amortization 99,017,155 104,582,040 92,987,860 13,097,066 Consumable, food and beverage 84,387,597 32,443,116 54,360,427 7,656,506 Costs of hotel manager of franchised-and-managed hotels 114,779,305 107,852,170 114,328,002 16,102,762 Material cost 299,678,656 226,713,708 171,832,538 24,202,107 Other costs of franchised-and-managed hotels 26,123,578 14,340,427 17,518,603 2,467,444 Others 50,944,304 50,517,239 30,332,477 4,272,240 Total 1,312,516,298 1,066,512,951 947,438,814 133,443,966 |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 21. SHARE BASED COMPENSATION 2018 Share Incentive Plan In January 2018, the Group adopted the 2018 Share Incentive Plan which allows the Group to offer incentive awards to employees, directors and consultants (the “Participants”). Under the 2018 Share Incentive Plan, the Group may issue incentive awards to the Participants to purchase not more than 9,000,000 Class A ordinary shares. The incentive awards granted under the Share Incentive Plans typically have a maximum life of six years and vest in typical ways as vest ratably over the following four years starting after the first/second/third anniversary of the stated vesting commencement date. Share-based compensation expense of RMB2,464,763 was recognized in general and administrative expenses for the years ended December 31, 2021. Share-based compensation expense of RMB62,356 was reversed in general and administrative expenses due to forfeitures during the year ended December 31, 2022. Share-based compensation expense of RMB62,650 (USD8,824) was recognized in general and administrative expenses during the year ended December 31, 2023. During the year ended December 31, 2021, 2022 and 2023, cash used to settle the related share-based compensation is nil, nil and nil. For options granted during the years ended December 31, 2021 and 2022, the weighted-average grant date fair value for options granted was USD2.42 and USD1.34, respectively computed using the binomial option pricing model. The binomial model requires the input of subjective assumptions including the expected stock price volatility and the expected price multiple at which employees are likely to exercise stock options. The Group uses historical data to estimate forfeiture rate. Expected volatilities are based on the average volatility of the Group and comparable companies. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. During the year ended December 31, 2023, no options were granted. 21. SHARE BASED COMPENSATION (CONTINUED) 2018 Share Incentive Plan (continued) The fair value of share options was estimated using the following significant assumptions: Granted in 2021 Granted in 2022 Risk-free interest rate 0.92 % 1.35 % Volatility 40 % 39 % Dividend yield 2.5 % 2.5 % Expected Life 6 years 6 years The aggregate grant date fair value of the outstanding options was determined to be RMB34,994,421, RMB35,706,209 and RMB36,103,497 (USD5,085,071) as of December 31, 2021, 2022 and 2023, 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, 2021, 2022 and 2023 were RMB8,319,569, RMB8,998,734 and RMB9,145,095 (USD1,288,060). Total unrecognized compensation expense related to unvested options was insignificant as of December 31, 2023. The following table summarized the Group’s share option activity under the option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Life Value USD Years USD Share options outstanding at December 31, 2021 (As adjusted) 992,500 12.27 2.14 — Granted 10,000 14.00 6 — Forfeited (62,000) 12.84 — — Share options outstanding at December 31, 2022 (As adjusted) 940,500 12.26 1.18 — Forfeited (15,500) 12.52 — — Share options outstanding at December 31, 2023 925,000 12.25 0.18 — Vested and expected to vest at December 31, 2023 925,000 12.25 0.18 — Exercisable as of December 31, 2023 914,250 12.22 0.18 — |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 22. INCOME TAXES Samoa Under the current laws of Samoa, GreenTree Samoa is not subject to tax on income or capital gain. Upon payment of dividends by the Company to its shareholders, no Samoa withholding tax will be imposed. Cayman Island Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. 22. INCOME TAXES (CONTINUED) Hong Kong Subsidiaries in Hong Kong are subject to Hong Kong profit tax at a rate of 16.5%, and foreign-derived income is exempted from income tax. There are no withholding taxes upon payment of dividends by the subsidiaries incorporated in Hong Kong to its shareholders. Mainland China On March 16, 2007, the PRC government promulgated the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008. Under the New EIT Law, domestically-owned enterprises and foreign-invested enterprises are subject to a statutory tax rate of 25%. Enterprises qualified as “High New Technology Enterprises (“HNTEs”) enjoy a preferential income tax rate of 15%. Dividends, interest, rent or royalties and proceeds from any such assets located in the PRC (after deducting the net value of such assets) shall be subject to a 10% withholding tax. Shanghai Evergreen and Shanghai Sipei were recognized as qualified HNTEs since 2017 and 2020, respectively. Their latest qualified periods are for 2023 to 2025 and enjoy a preferential tax rate of 15%. Income (loss) before income taxes and share of losses in equity method investments consists of: Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Mainland China 198,215,455 (301,862,814) 351,791,690 49,548,823 Others (2,739,212) (202,301,240) 28,580,168 4,025,431 Total 195,476,243 (504,164,054) 380,371,858 53,574,254 The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income (loss) are as follows: Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Current tax 112,009,150 86,534,248 120,875,594 17,024,971 Deferred tax 278,081 (130,607,150) (2,423,339) (341,320) Total 112,287,231 (44,072,902) 118,452,255 16,683,651 Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31, 2021 2022 2023 (As adjusted) (As adjusted) PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 11 % 9 % 3 % Effect of international rate difference 1 % (9) % (2) % Effect of preferential tax rate (8) % 0 % (1) % FIN48 accrual and reversal 18 % (4) % 7 % Valuation allowance 19 % (10) % 3 % Tax effect of expenses that are not deductible in determining taxable profit (9) % (2) % (4) % Effective tax rate 57 % 9 % 31 % 22. INCOME TAXES (CONTINUED) Mainland China (continued) The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2021, 2022 and 2023 are as follows: As of December 31 2022 2023 2023 RMB RMB USD (As adjusted) Deferred tax assets: Net loss carryforward 148,078,332 156,003,878 21,972,687 Lease liabilities 447,847,914 417,112,367 58,749,048 Bad debt expenses 79,889,329 89,464,616 12,600,828 Deferred revenue 92,320,709 83,228,802 11,722,532 Impairment of long-lived assets and other assets 58,292,381 65,542,792 9,231,509 Accrued expenses 19,923,623 19,373,529 2,728,705 Unrealized losses from equity securities 717,944 1,342,225 189,048 Outside basis difference 5,759,144 — — Valuation allowance (180,469,287) (192,143,009) (27,062,777) Total deferred tax assets 672,360,089 639,925,200 90,131,580 Deferred tax liabilities: Depreciation of property and equipment (10,504,158) (2,479,000) (349,160) Unrealized gains from equity securities (5,360,418) (1,939,227) (273,134) Intangible assets arising from acquisition (82,416,163) (75,820,498) (10,679,094) Withholding tax on PRC earnings to be distributed (20,730,212) (30,504,731) (4,296,502) Right-of-use assets (414,067,632) (381,932,879) (53,794,121) Total deferred tax liabilities (533,078,583) (492,676,335) (69,392,011) The Group offset deferred tax liabilities and assets pertaining to a particular tax-paying component of the Group within a particular jurisdiction. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2023, management recorded a valuation allowance against the amount of deferred tax assets that it determines is not more-likely-than-not to be realized. As of December 31, 2023, the Group had tax losses carryforwards of RMB624,015,512 (USD87,890,747), mainly deriving from the entities in the PRC. The tax losses in the PRC can be carried forward for five years to offset future taxable profit and which will expire between 2024 and 2028 if not utilized. The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The cumulated undistributed earnings of the Group’s subsidiaries in mainland China intends to indefinitely reinvested were RMB625,124,881 (USD88,046,998) as of December 31, 2023. As of December 31, 2023, the related withholding tax liability unrecognized was RMB62,512,488 (USD8,804,700). 22. INCOME TAXES (CONTINUED) Mainland China (continued) The Group made its assessment of the level of authority for each of its uncertain tax positions based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. It is possible that the amount of uncertain tax benefits will change in the next 12 months, however, an estimate of the range of the possible outcomes cannot be made at this time. RMB278,696,225 (USD39,253,542) of the uncertain tax positions, if ultimately recognized, would affect the effective tax rate. A reconciliation of unrecognized tax benefits is as follows: Unrecognized tax benefits —December 31, 2021(As adjusted) 249,553,169 Increases — tax positions in the current period 27,552,369 Decreases — tax positions in prior period (19,805,374) Unrecognized tax benefits — December 31, 2022(As adjusted) 257,300,164 Unrecognized tax benefits — January 1, 2023 257,300,164 Increases — tax positions in the current period 61,493,198 Decreases — tax positions in prior period (40,097,137) Unrecognized tax benefits — December 31, 2023 278,696,225 In the year ended December 31, 2023, the Company recorded interest expense of RMB36,687,692 (USD5,167,353). In the year ended December 31, 2023, the Company reversed interest expense of RMB29,836,683 (USD4,202,409). As of December 31, 2023, the accumulated interest expense and penalty recorded by the Group was RMB111,237,228 (USD15,667,436) and nil, respectively. The Group’s subsidiaries in mainland China are subject to examination by the PRC tax authorities from 2018 through 2023 on non-transfer pricing matters, and from 2013 through 2023 on transfer pricing matters. |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2023 | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 23. 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 RMB59,058,712, RMB63,954,002 and RMB54,737,023 (USD7,709,548) for the years ended December 31, 2021, 2022 and 2023, 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, 2023 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 24. 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 Group in terms of cash dividends, loans or advances, nor are they allowed for distribution except under liquidation. As of December 31, 2022 and 2023, the PRC statutory reserve funds amounted to RMB150,208,980 and RMB152,416,879 (USD21,467,468), 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 Group 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 RMB898,596,672 and RMB901,492,604 (USD126,972,578) as of December 31, 2022 and 2023, 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 Group, or otherwise satisfy their foreign currency denominated obligations. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | 25. 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 2021, 2022 and 2023 consisted of: Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Quality Control Manager GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Aotao Restaurant management Controlled by GTI Getao Industrial (HK) Limited. (“Getao”) Restaurant management Controlled by GTI Shiquanmeiwei (Beijing) Catering and Management Co., Ltd. (“Shiquanmeiwei”) Restaurant management Controlled by GTI Beifu HK Restaurant management Controlled by GTI Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Yibon Hotel management Equity investee of the Group Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) * Hotel management Equity investee of the Group Woyaojiu Information Technology (Shanghai) Co.,Ltd. (“Woyaojiu”) Restaurant management Controlled by Hui Xu Shanxi Yueyuanbaili Hotel Management Co., Ltd. (“Yueyuan”) Hotel management Equity investee of the Group Apex(Weihai) Industrial Co., Ltd. (“Apex”) Construction Controlled by Hui Xu Geweimei Biotechnology (Wuxi) Co., Ltd. (“Geweimei”) Food manufacturing Controlled by GTI Gelu (Shanghai) Catering Management Co., Ltd. (“Gelu”) Restaurant management Controlled by GTI Shanghai Geyi Catering Management Co., Ltd. (“Geyi”) Restaurant management Controlled by GTI Shanghai Xiaoyi Health Services Co., Ltd. (“Xiaoyi”) Care service provider Controlled by GTI Shanghai Xiangcai Catering Management Co., Ltd. (“Xiangcai”) Restaurant management Equity investee of the Group Wiselong IT consulting Equity investee of the Group Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Restaurant Management Previously controlled by GTI, and disposed by GTI during 2022 * Hanyuan was a subsidiary of the Group before December 2021. Since the Group disposed 5% of the equity interests of Hanyuan on December 6, 2021, Hanyuan has been an equity investee of the Group. 25. RELATED PARTY TRANSACTIONS AND BALANCES ( CONTINUED ) (a) Related party balances Due from related parties: As of December 31 2022 2023 2023 RMB RMB USD (As adjusted) Current: Yibon (ii) 7,039,315 7,321,246 1,031,176 Hanyuan (iii) 6,643,508 6,732,977 948,320 Wen Qi (iv) — 2,360,000 332,399 Yueyuan (iii) 608,394 688,064 96,912 Aotao (i) 45,174,828 141,069 19,869 Others (v) 11,556,512 3,217,386 453,159 GTI (i) 326,440,000 — — Beifu HK (i) 28,278,520 — — Less: provision — (531,961) (74,925) Total 425,741,077 19,928,781 2,806,910 Non-current: Apex (vi) 110,000,000 110,000,000 15,493,176 Qiwen (iv) 2,360,000 — — Total 112,360,000 110,000,000 15,493,176 (i). In March 2023, the amounts of RMB399,800,000 (USD56,310,652) in aggregate due from GTI, Aotao and Beifu HK were settled by 100% equity interests of Da Niang and 83.9% equity interests of Bellagio transferred from GTI to the Group. These transactions were accounted for as business combinations under common control (Note 3). (ii). Current amounts due from Yibon mainly comprised of a loan repayable on demand with an interest rate of 6% per annum with pledge of one Yibon’s leased-and-operated hotel. (iii). Current amounts due from Hanyuan and Yueyuan are loans to them, who are the equity investees of the Group, for hotel improvement. (iv). Current amounts due from Wen Qi is a loan with a principal of RMB2,360,000 (USD 342,168 (v). The current amounts mainly consisted of accounts receivable due to daily operations with the related parties which were unsecured, interest free, and repayable upon demand. (vi). Noncurrent amounts due from related parties as of December 31, 2023 comprised of RMB110,000,000 (USD15,493,176) prepayments made by the Group to Apex to acquire buildings for hotel businesses development. In March 2024, the engineering and fire control acceptance of construction in progress in Weihai, Shandong has been completed. 25. RELATED PARTY TRANSACTIONS AND BALANCES ( CONTINUED ) (a) Related party balances (continued) Due to related parties: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Current: Aotao *(i) 12,808,201 12,660,573 1,783,204 Yibon (ii) 7,238,237 — — Others (ii) 1,670,765 3,649,720 514,053 Total 21,717,203 16,310,293 2,297,257 (i) Amounts due to Aotao comprised of the payable for advertising service from Aotao and loans from Aotao which were unsecured, interest free, and repayable upon demand. (ii) Amounts due to Yibon and others represents the trade payables due to the normal business operation with related parties which were unsecured, interest free, and repayable upon demand. (b) Related party transactions During the years ended December 31, 2021, 2022 and 2023, related party transactions consisted of the following: Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Loan to related parties Loan to GTI (206,256,382) (162,490,000) — — Loan to Hanyuan — (3,237,408) — — Loan to Qiwen — (2,360,000) — — Loan to Yueyuan — (608,394) — — Repayment from GTI — 42,305,000 — — Repayment from Yibon 3,750,000 1,250,000 — — Loan to Aotao (186,051,400) — — — Repayment from Aotao 121,000,000 — — — Loan to Beifu HK (169,511,160) — — — Repayment from Getao on behalf of Beifu HK 143,383,500 — — — Loan to Yibon (3,000,000) — — — Interest income from Yibon 544,352 12,333 465,500 65,564 Service provided by related parties (7,208,533) (5,770,739) (14,044) (1,978) Goods purchased from related parties (3,601,778) (692,797) (2,837,072) (399,593) Service provided to related parties 1,583,446 1,397,915 2,604,417 366,824 Goods sold to related parties 756,899 — 23,787 3,350 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 26. COMMITMENTS AND CONTINGENCIES Litigation and contingencies The Group 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 Group 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 Group accrues the minimum amount. The Group expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 27. EARNINGS (LOSS) PER SHARE Basic and diluted earnings (loss) per share for each of the years presented is calculated as follows: Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Numerator: Net income (loss) used in calculating earnings per share-basic and diluted 88,706,756 (425,153,181) 269,316,308 37,932,408 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings (loss) per share 68,286,954 68,201,056 67,321,003 67,321,003 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings (loss) per share 34,762,909 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings(loss) — basic and diluted: To Class A Shares 58,782,360 (281,612,076) 177,605,302 25,015,184 To Class B Shares 29,924,396 (143,541,105) 91,711,006 12,917,224 Basic and diluted earnings(loss) per share: To Class A Shares 0.86 (4.13) 2.64 0.37 To Class B Shares 0.86 (4.13) 2.64 0.37 In November 2022, the Group received 870,908 Class A ordinary shares as a portion of repurchase consideration for the repurchase of Urban Hotel Group, were excluded in the computation of basic and diluted earnings per shares for the year ended December 31, 2022 upon the completion of the disposition of Urban Hotel Group. |
SEGMENT REPORT
SEGMENT REPORT | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORT | |
SEGMENT REPORT | 28. SEGMENT REPORTING The Group reports its financial results in two operating segments: (1) Hotel Business and (2) Restaurant Business, which align with the manner in which the CODM currently receives and uses financial information to allocate resource and evaluate the performance of the segments. The Group derives the results of the segments directly from its internal management reporting system. The CODM reviews the performance of each segment based on its operating results and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the consolidated financial statements. Inter-segment sales are accounted for as if the sales were to third parties, that is, at current market prices. The CODM uses multiple performance measures in evaluating the performance of the operating segments and allocating assets but determined that income (loss) from operations is the measurement principle that is most consistent with those used in measuring the corresponding amounts in the Group’s consolidated financial statements. The Group currently does not allocate assets to its operating segments, as the CODM does not use such information to allocate resources to or evaluate the performance of the operating segments. The Company retrospectively revised prior period segment information to conform to current period presentation. The table below provides a summary of the Group’s operating segment operating results for the year ended December 31, 2021. Year Ended December 31,2021 Hotel business Restaurant business Eliminations Consolidated RMB RMB RMB RMB Total revenues 1,206,145,958 765,185,811 (3,516,750) 1,967,815,019 Total operating costs and expenses (1,079,282,513) (790,359,158) 1,028,243 (1,868,613,428) Income (loss) from operations 153,923,380 (22,235,049) (2,488,507) 129,199,824 Income (loss) before income taxes and share of losses in equity method investments 222,182,847 (24,218,097) (2,488,507) 195,476,243 Net income(loss) 113,676,839 (28,238,573) (1,866,380) 83,571,886 28. SEGMENT REPORT (CONTINUED) The table below provides a summary of the Group’s operating segment operating results for the year ended December 31, 2022. Year Ended December 31,2022 Hotel business Restaurant business Eliminations Consolidated RMB RMB RMB RMB Total revenues 936,801,282 533,787,252 (1,514,259) 1,469,074,275 Total operating costs and expenses (1,399,392,154) (580,020,769) (184,330) (1,979,597,253) Loss from operations (443,141,983) (41,689,258) (1,698,589) (486,529,830) Loss before income taxes and share of losses in equity method investments (459,060,589) (43,404,876) (1,698,589) (504,164,054) Net loss (415,066,472) (45,349,039) (1,273,942) (461,689,453) The table below provides a summary of the Group’s operating segment operating results for the year ended December 31, 2023. Year Ended December 31,2023 Hotel business Restaurant business Eliminations Consolidated RMB USD RMB USD RMB USD RMB USD Total revenues 1,191,906,073 167,876,459 441,635,966 62,203,124 (6,284,350) (885,132) 1,627,257,689 229,194,451 Total operating costs and expenses (881,148,053) (124,107,108) (448,102,058) (63,113,855) 10,471,447 1,474,872 (1,318,778,664) (185,746,091) Income (loss) from operation 335,283,353 47,223,672 (3,821,524) (538,251) 4,187,097 589,740 335,648,926 47,275,161 Income (loss) before income taxes and share of losses in equity method investments 380,115,748 53,538,182 (3,930,987) (553,668) 4,187,097 589,740 380,371,858 53,574,254 Net income (loss) 265,598,004 37,408,695 (8,210,726) (1,156,456) 3,140,323 442,305 260,527,601 36,694,544 The following table presents the Group’s revenues disaggregated by segment and by types of products or services. Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Revenue: Leased-and-operated hotels 391,960,031 338,506,220 490,924,060 69,145,208 Franchised-and-managed hotels 774,359,348 582,441,077 696,321,236 98,074,795 Wholesale and others 39,826,579 15,853,985 4,660,777 656,456 Hotel business subtotal 1,206,145,958 936,801,282 1,191,906,073 167,876,459 Revenue: Leased-and-operated restaurants 575,062,530 362,806,697 296,890,282 41,816,122 Franchised-and-managed restaurants 8,212,730 6,022,291 8,923,712 1,256,879 Wholesale and others 181,910,551 164,958,264 135,821,972 19,130,123 Restaurant business subtotal 765,185,811 533,787,252 441,635,966 62,203,124 Inter-segment* (3,516,750) (1,514,259) (6,284,350) (885,132) Total revenue 1,967,815,019 1,469,074,275 1,627,257,689 229,194,451 * The inter segment eliminations mainly consist of labor services related to restaurant staff and prepared meals and frozen foods provided by restaurant business segment to hotel business segment. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 29. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) ASSETS Current assets Cash and cash equivalents 15,788,863 13,423,750 1,890,696 Investments in equity securities 3,094,133 978,841 137,867 Amounts due from subsidiaries 122,364,821 125,960,969 17,741,231 Amounts due from a related party 348,019,981 — — Other current assets — 321,495 45,282 Total current assets 489,267,798 140,685,055 19,815,076 Non-current assets: Investments in subsidiaries 1,803,139,078 2,179,129,452 306,923,964 Investments in equity securities 33,408,446 44,324,789 6,243,016 TOTAL ASSETS 2,325,815,322 2,364,139,296 332,982,056 LIABILITIES AND EQUITY Current liabilities: Dividends payable — — — Short-term bank loans — 116,800,000 16,450,936 Long -term bank loans, current portion 121,800,000 200,000 28,169 Amounts due to subsidiaries 592,226,352 748,121,016 105,370,642 Total current liabilities 714,026,352 865,121,016 121,849,747 Non-current liabilities: Long-term bank loans, non-current portion — 56,800,000 8,000,113 Other long-term liabilities — — — Total liabilities 714,026,352 921,921,016 129,849,860 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share;400,000,000 and 400,000,000 shares authorized as of December 31, 2022 and 2023; 67,416,046 and 66,780,612 shares issued outstanding 222,587,070 222,587,070 31,350,733 Class B ordinary shares (USD0.50 par value per share; 100,000,000 and 100,000,000 shares authorized as of December 31, 2022 and 2023; 34,762,909 and 34,762,909 shares issued and outstanding as of December 31, 2022 and 2023, respectively) 115,534,210 115,534,210 16,272,653 Treasury stock (16,971,057) (36,677,832) (5,165,965) Additional paid-in capital 2,080,450,699 1,680,713,349 236,723,524 Accumulated losses (817,544,056) (568,339,799) (80,048,986) Accumulated other comprehensive income 27,732,104 28,401,282 4,000,237 Total Shareholders’ Equity 1,611,788,970 1,442,218,280 203,132,196 TOTAL LIABILITIES AND EQUITY 2,325,815,322 2,364,139,296 332,982,056 29. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) General and administrative expenses (18,917,120) (6,740,255) (6,637,389) (934,857) Other general expense — (13,944,926) — — Interest income 173,316 1,924 15,128 2,131 Interest expense — (5,192,054) (4,723,335) (665,268) Other income — 22,765,816 19,969,182 2,812,600 Gains(losses) on investments in equity securities 11,519,174 (76,105,482) 7,927,075 1,116,505 Share of profit (losses) in subsidiaries, net (Note a) 95,931,386 (345,938,204) 252,765,647 35,601,297 Net income (loss) 88,706,756 (425,153,181) 269,316,308 37,932,408 Other comprehensive losses, net of tax – Foreign currency translation adjustments (3,705,740) (11,361,872) 672,112 94,665 – Unrealized gains (losses) on available-for-sale investments — (2,786,931) (2,934) (413) Comprehensive income (loss) 85,001,016 (439,301,984) 269,985,486 38,026,660 Condensed statements of cash flows Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Net cash provided by operating activities (13,786,532) (4,198,307) (12,424,134) (1,749,903) Net cash used in investing activities (113,026,343) (156,276,810) (352,234,205) (49,611,150) Net cash (used in) provided by financing activities (46,235,224) 155,679,057 362,690,064 51,083,827 Effect of exchange rate changes on cash and cash equivalents and restricted cash 2,306,901 (2,025,056) (396,838) (55,893) Net decrease in cash and cash equivalents and restricted cash (170,741,198) (6,821,116) (2,365,113) (333,119) Cash and cash equivalents and restricted cash at beginning of the year 193,351,177 22,609,979 15,788,863 2,223,815 Cash and cash equivalents and restricted cash at end of the year 22,609,979 15,788,863 13,423,750 1,890,696 (a) Basis of presentation In the Group-only financial statements, the Group’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception. The Group 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, 2023 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. 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. |
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 credit losses of financial instruments, fair value measurement and impairment of investments, the useful lives and impairment of property, plant and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, purchase price allocation, share-based compensation arrangements and discount rate used to measure lease liabilities. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits placed with commercial banks or other financial institutions and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Restricted cash | Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantees for prepaid cards and deposits restricted due to lawsuit. |
Investments | Investments Short-term investment s Short-term investments include time deposits with maturities of less than one year and investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in debt in accordance with ASC topic 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as “held-to-maturity”, “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities, are included in earnings. Any realized gains or losses on the sale of the short-term investments, are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. The securities that the Group has the positive intent and the ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. Investments in equity securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321, Investments – Equity Securities Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one Long-term investments The Group’s long-term investments consist of equity-method investments, equity investments with and without readily determinable fair values and an available-for-sale debt investment. Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in gains (losses and impairment) on equity securities held in the consolidated statements of comprehensive income (loss). For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures The available-for-sale debt investment is redeemable shares issued by a private company that is redeemable any time at the Group’s option, which are remeasured at fair value. All changes in the carrying amount of these debt investments are recognized in other comprehensive (loss) 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 amount of the total other-than-temporary impairment related to the credit loss shall be recognized in earnings. The amount of the total other-than-temporary impairment related to other factors shall be recognized in other comprehensive income (loss), net of applicable taxes. |
Adoption of ASU 2016-13 | Adoption of ASU 2016-13 On January 1, 2023, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Group changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance resulted in a cumulative-effect adjustment to increase the opening balance of accumulated losses on January 1, 2023, by RMB20,112,051 (USD2,832,723), primarily with respect to the allowance for credit losses for loans receivable and accounts receivable. |
Accounts receivable, net | Accounts receivable, net Accounts receivable are carried at the original invoice amounts less allowances for credit losses and the charges to the allowances are recorded as “General and administrative expenses” in the consolidated statements of comprehensive income (loss). Prior to the Group’s adoption of ASU 2016-13, 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. The Group establishes a provision for doubtful receivables when there is objective evidence that the Group may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposure, as well as the historical trends of collections. After the adoption of ASU 2016-13, the allowance for credit losses for accounts receivable is based upon the current expected credit losses (“CECL”) model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Group applies a roll rate-based method that considers historical collectability based on past due status, the age of the balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect from customers. 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. |
Loans receivable, net | Loans receivable, net Loans receivable are carried at the original loan principal balances less allowance for uncollectible accounts. The accrued interests, gross and net of allowances, are insignificant for all the periods presented. The Group classified loans receivable as long-term or short-term investments according to their contractual maturity. The estimated credit losses charged to the allowance is classified as “Other general expenses” in the consolidated statements of comprehensive income. Prior to the adoption of ASU 2016-13, 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. After the adoption of ASU 2016-13, the Group assesses collectability of its loans receivable individually or on a collective basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Group applies a roll rate-based method and adjusted for various qualitative factors that reflect current conditions and reasonable and supportable forecasts of future economic conditions. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property, plant 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 and plants 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, plant 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, plant and equipment are capitalized as additions to the related assets. Gain or loss on disposal of property, plant and equipment, if any, is recognized in the consolidated statements of comprehensive income (loss) as the difference between the net sales proceeds and the carrying amount of the underlying asset. |
Intangible assets | Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with indefinite useful lives are not amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired in accordance with ASC 350-30, Intangibles-Goodwill and Other: General Intangibles Other than Goodwill. 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. 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: Finite-lived trademarks 10 years Technology 10 years Network rights 10 years Purchased software 5-10 years Reacquired rights the remaining franchise term |
Business combinations | Business combinations The Group accounts for business combinations, except for acquisitions of entities under common control, under the purchase method in accordance with ASC 805, Business Combinations Acquisitions of entities under common control requires retrospective combination of entities for all periods presented, as if the combination had been in effect since the inception of common control. Assets and liabilities transferred are recorded at their historical carrying amounts on the date of the transfer. The difference between purchase consideration and historical value of the net assets on the date of the transfer are recognized in total stockholders’ equity on the consolidated balance sheets. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair values of the identifiable assets acquired less liabilities assumed of an acquired business. Goodwill arose from business combinations is not amortized, but instead tested for impairment at the reporting unit level at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. A reporting unit is an operating segment or one level below the operating segment. As of December 31, 2022 and 2023, the Group has three reporting units, consisting of hotel business, Da Niang business and Bellagio business. 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 On disposal of a portion of reporting unit that constitutes a business, the attributable amount of goodwill is included in the determination of the amount of gain or loss recognized upon disposal. When the Group disposes of a business within the reporting unit, the amount of goodwill disposed is measured on the basis of the relative fair value of the business disposed and the portion of the reporting unit retained. No impairment was recorded for the years ended December 31, 2021 and 2023. Impairment loss of RMB91,236,480 of goodwill was recorded before the Group deconsolidated Argyle Beijing and Urban during the year ended December 31, 2022 (Note 4). |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates the recoverability of its long-lived assets for impairment individually or as a group at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of the other assets and liabilities. Whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, the Group compares the carrying amount of the asset (or group of assets) to the sum of future undiscounted net cash flows expected to result from the use of the asset (or group of assets) and its eventual disposition. If the carrying amount is higher than the sum of undiscounted future cash flows, an impairment loss is measured based on the excess of the carrying amount of the asset (or group of assets) over its fair value and recorded in “Other general expenses” in the consolidated statements of comprehensive income (loss). The carrying amount of the asset (or the long-lived assets in the asset group on a pro rata basis using the relative carrying amounts) is reduced to the extent not lower than the fair value of the asset. The adjusted carrying amounts after an impairment charge represent the new cost basis and is depreciated over the remaining useful lives. Fair values of the long-lived assets (or groups of assets) were estimated by the Group based on the income approach using the discounted cash flow associated with the underlying assets. The Group recognized impairment losses of RMB6,246,986, RMB53,244,063 and RMB40,559,449 (USD5,712,679) for the years ended December 31, 2021, 2022 and 2023, respectively, out of which impairment losses of nil, RMB48,306,360 and RMB40,559,449 (USD5,712,679) for the years ended December 31,2021, 2022 and 2023, respectively, were charge to the long-lived assets (excluding indefinite-lived intangible asset, Note 10) in hotel business segment and impairment losses of RMB6,246,986, RMB4,937,703 and nil for the years ended December 31, 2021, 2022 and 2023, respectively, were charge to the long-lived assets in restaurant business segment. |
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. Each of these services represent 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 when the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties. In accordance with the provisions of ASC 842, since the Group has not been relieved as the primary obligor of the head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. The Group records sub-lease rental revenue over the term of the subleases on a straight-line basis. The sublease rental revenue included in leased-and-operated hotels revenue amounted to RMB74,689,226, RMB61,578,703 and RMB102,194,590 (USD14,393,807) for the years ended December 31, 2021, 2022 and 2023, respectively. Leased and operated restaurant revenues Revenues from leased-and-operated restaurants are primarily derived from restaurant operations, including the dine-in orders in restaurants and take-out orders sold through third-party platforms. Revenues are recognized when a customer takes possession of the food, which is when our obligation to perform is satisfied. Payment terms with respect to these sales are short-term in nature. Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: ● Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. ● System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. ● Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, the Group has a performance obligation to provide franchisees a license to its hotel system intellectual property for use of certain of its brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. During the years ended December 31, 2021, 2022 and 2023, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB131,027,473, RMB115,738,098 and RMB134,798,805 (USD18,986,015), respectively. Franchise and managed restaurant revenues Franchise and managed restaurant revenues consist of initial one-time non-refundable franchise fees and continuing franchise fees. 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. Such revenues have been insignificant during the presented periods. 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. Continuing franchise fees are based upon a percentage of franchisee sales, as those sales occur. 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 monthly over the term of the agreement as those amounts become payable. Wholesale and other revenues Wholesale revenues are primarily derived from sales of prepared meals and frozen foods to supermarkets, distributors and restaurant franchisees. The revenues from product sales are recognized at a point in time when the control of the product is transferred to the customer. The Group recognizes revenues net of discounts, return allowances and sales rebate. The Group estimates product returns based on historical experience, which historically have not been significant. Payment terms with respect to these sales are short-term in nature. Other revenues are derived from hotel business segment selling hotel related products through the Group’s online mall and to franchisees. Revenues are recognized upon customers’ acceptance. Such revenues have been insignificant during the presented periods. |
Membership Program | Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three five years Membership points 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. The Group recognized revenue net of reimbursement paid to franchisees as its performance obligation is to facilitate the transaction between the member and the franchised and managed hotels. |
PRC Value-Added Taxes and related tax surcharges | PRC Value-Added Taxes and related tax surcharges The accommodation services of the Group are subject to 6% of Value-Added Taxes (“VAT”) and the restaurant services of the Group are subject to 13% of Value - Added Taxes. Revenues are recorded net of VAT. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. |
Advertising and promotional expenses | Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income (loss) as incurred, and amounted to RMB37,347,260, RMB35,872,725 and RMB24,170,599 (USD3,404,358) for the years ended December 31, 2021, 2022 and 2023, 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, 2021, 2022 and 2023, the Group received financial subsidies of RMB16,993,539, RMB11,466,168 and RMB13,076,243 (USD1,849,483), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. |
Interest | Interest Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. |
Leases | Leases The Group leases properties from property owners. In evaluating whether an agreement constitute a lease. the Group reviews the contractual terms to determine which party obtains both the economic benefits and control of the assets at the inception of the contract. The Group categorizes leases with contractual terms longer than twelve months as either operating or finance lease at the commencement date of a lease. However, the Group has no finance leases for any of the periods presented. The Group recognizes a lease liability for future fixed lease payments and a right-of-use (“ROU”) asset representing the right to use the underlying asset for the lease term. The lease term is based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise the option. Lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term using the rate implicit in the lease, if available, or the Group’s incremental borrowing rate. As its leases do not provide an implicit borrowing rate, the Group uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. Current maturities of operating lease liabilities are classified as operating lease liabilities, current in the Group’s consolidated balance sheets. Most leases have initial terms ranging from 5 to 20 years. The Group’s lease agreements may include non-lease components, mainly common area maintenance, which are combined with the lease components as the Group elects to account for these components as a single lease component, as permitted. Besides, the Group’s lease payments are fixed. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Group’s lease agreements do not contain any significant residual value guarantees or restricted covenants. The ROU assets are measured at the amount of the lease liabilities with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by the Group, deferred rent and lease incentives, and any off-market terms (that is, favorable or unfavorable terms) present in the lease when the Group acquired leases in a business combination in which the acquiree acts as a lessee. The Group evaluates the carrying value of ROU assets if there are indicators of impairment and reviews the recoverability of the related asset group. The Group reassesses of a contract is or contains a leasing arrangement and re-measures ROU assets and liabilities upon modification of the contract. The Group will derecognize ROU assets and liabilities, with difference recognized in the income statement on the contract termination. |
Income taxes | Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each tax audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group has elected to include interest and penalties related to an uncertain tax position in “income tax (expense) benefit” in the consolidated statements of comprehensive income (loss). |
Foreign currency translation and transactions | Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Group, 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 Group 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 loss (income) in the consolidated statements of comprehensive income (loss). |
Convenience translation | Convenience translation Translations of amounts from RMB into U.S. dollars into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB7.0999 on December 31, 2023, 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, 2023, 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. 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 and a discount for lack of marketability. The carrying values of other financial instruments, which consist of cash and cash equivalents, time deposits, accounts receivable, loans receivable, amounts due from related parties, accounts payable and amounts due to related parties are recorded at cost which approximates their fair value due to the short-term nature of these instruments. The Group does not use derivative instruments to manage risks. The following table summarizes the Group’s financial assets and liabilities measured and recorded at fair value as of December 31, 2022 and 2023 on a recurring basis: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant As of Markets for Other Significant December 31, Identical Observable Unobservable 2022 Assets Inputs Inputs Description (As adjusted) (Level 1) (Level 2) (Level 3) Short-term investments Wealth management products 156,031,572 — 156,031,572 — Investments in equity securities Equity securities with readily determinable fair value 41,361,346 41,361,346 — — Long-term investments Equity securities with readily determinable fair value 27,408,446 27,408,446 — — Available-for-sale debt investment 103,706,206 — — 103,706,206 Total 328,507,570 68,769,792 156,031,572 103,706,206 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2023 (Level 1) (Level 2) (Level 3) Short-term investments Wealth management products 287,711,617 — 287,711,617 — Investments in equity securities Equity securities with readily determinable fair value 26,076,169 26,076,169 — — Long-term investments Equity securities with readily determinable fair value 38,324,789 38,324,789 — — Available-for-sale debt investment 103,703,272 — — 103,703,272 Total 455,815,847 64,400,958 287,711,617 103,703,272 Reconciliations of assets and liabilities categorized within Level 3 under the fair value hierarchy are as follows: Available-for- sale debt investment December 31, 2022 (As adjusted) 103,706,206 Net unrealized fair value change recognized in other comprehensive loss (2,934) December 31, 2023 103,703,272 December 31, 2023 (USD) 14,606,300 Significant Unobservable Inputs Inputs Inputs as of December as of December Financial Assets Unobservable Input 31, 2022 31, 2023 Available-for-sale WACC 12 % 12 % Discount for lack of marketability 34 % 35 % Expected volatility 52 % 36 % |
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 income (loss) of the Group includes the foreign currency translation adjustments and unrealized gains (losses) on available-for-sale investments. |
Segment reporting | Segment reporting In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM has been identified as the CEO of the Group. When there is any change to the Group’s reportable segments, prior period segment information is retrospectively revised to conform to current period presentation. 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. For the year ended December 31, 2021, 2022 and 2023, the segment results were shown in Note 28. |
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, RMB59,058,712, RMB63,954,002 and RMB54,737,023 (USD7,709,548) for the years ended December 31, 2021, 2022 and 2023, 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 (loss) per share | Earnings (loss) 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 (loss) 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 earnings (loss) per share for each class of ordinary shares is computed by dividing net income (loss) attributable to that class by the weighted average number of ordinary shares outstanding of that class for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to the Class A and Class B ordinary shares as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti-dilutive. Contingently issuable shares relating to shares to be issued as a part of purchase consideration associated with business combinations, are included in the computation of basic earnings per share only when there is no circumstance under which those shares would not be issued. Contingently issuable shares are included in the denominator of the diluted calculation as of the beginning of the period or as of the inception date of the contingent share arrangement, if later, only when dilutive and when all the necessary conditions have been satisfied as of the reporting period end. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, long-term deposits, accounts receivable, amounts due from related and loans receivable. As of December 31, 2022, the Group had RMB1,045,181,927 and RMB4,811,376 of cash and cash equivalents and restricted cash, short-term investment and long-term time deposits that are held by financial institutions in the PRC and by international financial institutions outside of the PRC, respectively. As of December 31, 2023, the Group had RMB1,120,364,700 (USD157,800,068) and RMB152,287,629 (USD21,449,264) of cash and cash equivalents and restricted cash, short-term investments and long-term time deposits that are held by financial institutions in the PRC and by international financial institutions outside of the PRC, respectively. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Group conducts credit evaluations on its customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The Group made loans to third-party individuals and related parties under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheet date. As of December 31, 2022 and 2023, there were RMB1,073,930,780 and RMB533,195,219 (USD75,098,976) of loans receivable outstanding, respectively. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. |
Currency Convertibility Risk | Currency Convertibility Risk Substantially all of the Group’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized by the PRC government to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. |
Foreign Currency Exchange Rate Risk | Foreign Currency Exchange Rate Risk The functional currency of the Company is USD, and the reporting currency is RMB. Since July 21, 2005, RMB has been permitted by the PRC government to fluctuate within a managed band against a basket of certain foreign currencies. The appreciation of the USD against the RMB was approximately 2.94% in 2023. 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. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2023, including interim periods therein. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to income tax disclosures |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Summary of Group's Major Direct and Indirect Subsidiaries of Investments | Date of Incorporation, Percentage of Merger or Place of Major Major subsidiaries Ownership Acquisition Incorporation Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. (“Shanghai Evergreen”) 100 % October 20, 2011 PRC Information technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co., Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co., Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co., Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co., Ltd. 100 % May 3, 2018 PRC Hotel property Suzhou Ganglongkaiyuan Hotel Management Co., Ltd. 100 % May 31, 2019 PRC Hotel property Shanghai Sipei Technology Co., Ltd. (“Shanghai Sipei”) 100 % October 20, 2011 PRC Information technology services Da Niang Dumpling Catering Group Co., Ltd. 100 % April 30, 2017 PRC Restaurant management Jiangsu Daniang Trading Co., Ltd 100 % April 30, 2017 PRC Wholesaling Jiangsu Daniang Food Co., Ltd 100 % April 30, 2017 PRC Food manufacturing Huge Cyber Ltd 83.9 % August 21, 2020 Hong Kong Restaurant management Bellagio (Shanghai) Catering Management Co., Ltd 83.9 % August 21, 2020 PRC Restaurant management Bellagio (Beijing) Catering Management Co., Ltd 83.9 % August 21, 2020 PRC Restaurant management |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Summary of Property and Equipment Net, Expected Useful Lives | Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings and plants 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years |
Amortization of Intangible Assets, Estimated Useful Lives | Finite-lived trademarks 10 years Technology 10 years Network rights 10 years Purchased software 5-10 years Reacquired rights the remaining franchise term |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant As of Markets for Other Significant December 31, Identical Observable Unobservable 2022 Assets Inputs Inputs Description (As adjusted) (Level 1) (Level 2) (Level 3) Short-term investments Wealth management products 156,031,572 — 156,031,572 — Investments in equity securities Equity securities with readily determinable fair value 41,361,346 41,361,346 — — Long-term investments Equity securities with readily determinable fair value 27,408,446 27,408,446 — — Available-for-sale debt investment 103,706,206 — — 103,706,206 Total 328,507,570 68,769,792 156,031,572 103,706,206 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2023 (Level 1) (Level 2) (Level 3) Short-term investments Wealth management products 287,711,617 — 287,711,617 — Investments in equity securities Equity securities with readily determinable fair value 26,076,169 26,076,169 — — Long-term investments Equity securities with readily determinable fair value 38,324,789 38,324,789 — — Available-for-sale debt investment 103,703,272 — — 103,703,272 Total 455,815,847 64,400,958 287,711,617 103,703,272 |
Reconciliations of Assets And Liabilities Under Fair Value Hierarchy | Available-for- sale debt investment December 31, 2022 (As adjusted) 103,706,206 Net unrealized fair value change recognized in other comprehensive loss (2,934) December 31, 2023 103,703,272 December 31, 2023 (USD) 14,606,300 |
Summary of Unobservable Inputs | Inputs Inputs as of December as of December Financial Assets Unobservable Input 31, 2022 31, 2023 Available-for-sale WACC 12 % 12 % Discount for lack of marketability 34 % 35 % Expected volatility 52 % 36 % |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATIONS | |
Schedule of results of operations due to presentation of segments | Year Ended December 31,2021 As previously reported Restaurant Business As adjusted RMB RMB RMB Income (loss) from operations 153,923,380 (24,723,556) 129,199,824 Income(loss) before income taxes and share of losses in equity method investments 222,182,847 (26,706,604) 195,476,243 Net income(loss) 113,676,839 (30,104,953) 83,571,886 Other comprehensive loss, net of tax (3,705,740) — (3,705,740) Year Ended December 31,2022 As previously reported Restaurant Business As adjusted RMB RMB RMB Loss from operations (443,141,983) (43,387,847) (486,529,830) Loss before income taxes and share of losses in equity method investments (459,060,589) (45,103,465) (504,164,054) Net loss (415,066,472) (46,622,981) (461,689,453) Other comprehensive loss, net of tax (14,148,803) — (14,148,803) |
2021 Business Combinations | |
BUSINESS COMBINATIONS | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | 2021 Amortization Period Property, plant and equipment 92,075 3 Intangible assets Trademark 36,896,000 10 years Goodwill 20,588,461 Noncontrolling interest (34,576,536) Total 23,000,000 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of revenues disaggregated by type of services | Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Leased and operated revenues 963,727,199 700,022,649 787,814,342 110,961,329 Hotel 391,960,031 338,506,220 490,924,060 69,145,208 Restaurant 571,767,168 361,516,429 296,890,282 41,816,121 Franchise and managed revenues 782,572,078 588,463,368 705,244,948 99,331,673 Hotel 774,359,348 582,441,077 696,321,236 98,074,795 Restaurant 8,212,730 6,022,291 8,923,712 1,256,878 Wholesales and others 221,515,742 180,588,258 134,198,399 18,901,449 Total 1,967,815,019 1,469,074,275 1,627,257,689 229,194,451 |
Schedule of contract liabilities | Years Ended December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Advance from customers 25,604,363 22,393,097 3,154,002 Deferred revenue-current 193,352,239 186,281,838 26,237,248 Deferred revenue-non-current 234,374,415 207,905,769 29,282,915 Total contract liabilities 453,331,017 416,580,704 58,674,165 |
Schedule of components of deferred revenue | Years Ended December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Initial fees received from franchisees owners 193,210,093 169,240,060 23,836,964 Cash received for membership fees and not recognized as revenue 138,656,460 126,864,736 17,868,524 Cash received for prepaid card and sublease 43,719,235 40,828,943 5,750,636 Deferred revenue related to the membership program 52,140,866 57,253,868 8,064,039 Total deferred revenue 427,726,654 394,187,607 55,520,163 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivables | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Receivables from franchise and managed hotels 84,191,516 82,023,109 11,552,713 Receivables from third-party merchandisers for sublease rental 9,911,179 23,923,294 3,369,526 Receivable from individual and corporate customers and travel agents 36,180,399 13,872,840 1,953,949 Receivables from distributors, supermarkets and franchise and managed restaurants 13,474,544 7,600,652 1,070,529 Less: allowances (8,840,708) (3,532,016) (497,474) Total 134,916,930 123,887,879 17,449,243 |
Schedule of movements in allowance for credit losses | 2022 2023 RMB RMB USD (As adjusted) Balance of the beginning of the year 3,763,286 8,840,708 1,245,188 Effect on the opening balance of adoption of ASU 2016-03 — 1,504,518 211,907 Provision 29,405,627 12,377,993 1,743,404 Write-off (24,328,205) (19,191,203) (2,703,025) Balance of the end of the year 8,840,708 3,532,016 497,474 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Schedule of Inventory, Current | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Products 9,292,497 9,993,021 1,407,488 Hotel consumables 2,236,082 5,090,286 716,952 Raw materials 7,688,012 3,615,120 509,179 Packing materials and others 2,704,211 1,764,063 248,462 Total 21,920,802 20,462,490 2,882,081 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS RECEIVABLE, NET | |
Schedule of Loans receivable, net | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Loans receivable, current portion Franchisees 197,473,408 374,022,230 52,679,930 Third parties 38,862,429 32,595,889 4,591,035 Less: allowances (54,668,667) (277,097,025) (39,028,300) Total 181,667,170 129,521,094 18,242,665 Loans receivable, non-current portion Franchisees 373,477,244 90,484,128 12,744,423 Third parties 28,344,271 20,000,000 2,816,941 Less: allowances (224,649,006) (39,793,823) (5,604,843) Total 177,172,509 70,690,305 9,956,521 |
Schedule of aging of past-due loans receivables | The following table presents the aging of past-due gross loans receivable as of December 31, 2022 and 2023: 1 to 3 months 4 to 6 months 7 to 12 months Over 1 year past due past due past due past due Total RMB RMB RMB RMB December 31, 2022 (As adjusted) 37,705,971 17,747,676 101,491,036 134,179,464 291,124,147 December 31, 2023 16,572,823 24,199,825 63,451,054 215,286,707 319,510,409 December 31, 2023 (USD) 2,334,233 3,408,474 8,936,894 30,322,499 45,002,100 |
Schedule of movement of allowance for loans receivable | 2022 2023 RMB RMB USD (As adjusted) Balance of the beginning of the year 117,886,002 279,317,673 39,341,071 Effect on the opening balance of adoption of ASU 2016-03 — 22,176,502 3,123,496 Provision 161,431,671 15,396,673 2,168,576 Balance of the end of the year 279,317,673 316,890,848 44,633,143 Evaluated for impairment on an individual basis 116,852,875 116,302,348 16,380,843 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of Property, plant and equipment, net | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Buildings and plants 685,779,415 685,779,415 96,590,010 Leasehold improvements 700,721,935 705,905,133 99,424,659 Furniture, fixtures and equipment 291,802,076 289,733,445 40,808,102 Motor vehicles 6,852,254 9,358,564 1,318,126 Total 1,685,155,680 1,690,776,557 238,140,897 Less: Accumulated depreciation (775,084,743) (841,035,233) (118,457,335) Impairment (49,354,581) (54,747,393) (7,711,009) Construction in progress 22,304,172 19,955,095 2,810,617 Property, plant and equipment, net 883,020,528 814,949,026 114,783,170 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL | |
Schedule of intangible assets, net | As of December 31, 2022(As adjusted) Gross carrying Accumulated Accumulated Net carrying value impairment amortization value RMB RMB RMB RMB Indefinite-lived intangible asset: Da Niang Trademark 495,000,000 375,554,000 — 119,446,000 Finite-lived intangible assets: Trademarks 41,435,000 — 7,298,266 34,136,734 Technology 4,200,000 — 1,470,000 2,730,000 Network rights 210,755 — 209,550 1,205 Purchased software 23,951,358 — 21,424,106 2,527,252 Reacquired rights 2,531,418 — 1,685,904 845,514 Others 435,185 — 435,185 — Total 567,763,716 375,554,000 32,523,011 159,686,705 As of December 31, 2023 Gross carrying Accumulated Accumulated value impairment amortization Net carrying value Net carrying value RMB RMB RMB RMB USD Intangible asset with indefinite life: Da Niang Trademark 495,000,000 391,580,999 — 103,419,001 14,566,262 Finite-lived intangible assets: Trademarks 41,435,000 20,305,606 11,918,554 9,210,840 1,297,320 Technology 4,200,000 — 1,890,000 2,310,000 325,357 Network rights 210,755 — 209,550 1,205 170 Purchased software 24,888,810 — 22,772,548 2,116,262 298,069 Reacquired rights 2,531,418 — 1,868,033 663,385 93,435 Others 435,185 — 435,185 — — Total 568,701,168 411,886,605 39,093,870 117,720,693 16,580,613 |
Schedule of estimated aggregate amortization expense | Year ending December 31, RMB USD 2024 5,134,456 723,173 2025 2,409,138 339,320 2026 1,977,189 278,481 2027 1,608,595 226,566 2028 1,200,812 169,131 Thereafter 1,971,502 277,680 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Schedule of supplemental information related to operating leases | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Operating lease right-of-use assets 1,674,595,179 1,535,330,762 216,246,815 Operating lease liabilities, current 272,700,888 267,536,846 37,681,777 Operating lease liabilities, non-current 1,516,274,996 1,391,909,308 196,046,326 Total operating lease liabilities 1,788,975,884 1,659,446,154 233,728,103 Right-of-use assets obtained in exchange for operating lease liabilities 5,636,290 154,520,189 21,763,713 Weighted average remaining lease term (in years) 11 9 Weighted average discount rate 5 % 4 % |
Schedule of maturity of operating lease liabilities under the non-cancelable operating leases | As of December 31, 2023 RMB USD 2024 275,660,096 38,825,913 2025 205,917,308 29,002,846 2026 180,402,897 25,409,217 2027 161,971,532 22,813,213 2028 142,867,512 20,122,468 Thereafter 983,318,006 138,497,445 Total future lease payments 1,950,137,351 274,671,102 Less: imputed interest 290,691,197 40,942,999 Total operating lease liabilities 1,659,446,154 233,728,103 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL | |
Schedule of changes in carrying amount of goodwill | Hotel Business Restaurant Business Total Balance as of January 1, 2022(As adjusted) 120,819,948 147,499,000 268,318,948 Impairment (Note 4) (91,236,480) — (91,236,480) Balance as of December 31,2022 29,583,468 147,499,000 177,082,468 Balance as of December 31,2023 29,583,468 147,499,000 177,082,468 Balance as of December 31,2023(USD) 4,166,744 20,774,800 24,941,544 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS | |
Schedule of short-term investments | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Wealth management products 156,031,572 287,711,617 40,523,334 Time deposits 30,000,000 130,000,000 18,310,117 Total 186,031,572 417,711,617 58,833,451 |
Schedule of total unrealized and realized gains and losses of Investments in equity securities | For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Total net losses recognized (9,195,509) (2,622,450) (15,344,616) (2,161,244) Less: Net realized (losses) gains on equity securities sold (452,014) 11,294,390 — — Net unrealized losses recognized on equity securities held (8,743,495) (13,916,840) (15,344,616) (2,161,244) |
Schedule of long-term investments | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd(“Wiselong”) 26,118,102 25,630,564 3,609,989 Other 9,795,562 7,274,032 1,024,526 Equity securities with readily determinable fair values 27,408,447 38,324,789 5,397,934 Equity securities without readily determinable fair values 9,826,143 9,826,143 1,383,984 Available-for-sale debt investment 103,706,206 103,703,272 14,606,300 Total 176,854,460 184,758,800 26,022,733 |
Summary of unrealized and realized gains and losses of equity securities in current assets with readily | For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Total net gains (losses) recognized 15,623,340 (15,126,672) 9,966,512 1,403,754 Less: Net realized gains on equity securities sold 14,058,448 — — — Net unrealized gains (losses) recognized on equity securities held 1,564,892 (15,126,672) 9,966,512 1,403,754 |
Schedule of total unrealized and realized gains and losses of equity securities without readily determinable | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Initial cost 51,523,212 51,523,212 7,256,893 Cumulative unrealized gains 302,931 302,931 42,667 Cumulative unrealized losses (including impairment) (42,000,000) (42,000,000) (5,915,576) Total carrying value 9,826,143 9,826,143 1,383,984 |
Reconciliation of investment from amortized cost to fair value | As of December 31, 2022 (As adjusted) Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Wealth management products 156,031,572 — — — — 156,031,572 Available-for-sale debt securities of Yibon 103,701,474 — — 2,791,663 (2,786,931) 103,706,206 As of December 31, 2023 Gross Gross unrecognized Gross Gross Amortized unrecognized holding unrealized unrealized cost holding gains losses gains losses Fair value RMB RMB RMB RMB RMB RMB Wealth management products 287,711,617 — — — — 287,711,617 Available-for-sale debt securities of Yibon 103,701,474 — — 2,791,663 (2,789,865) 103,703,272 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER ASSETS | |
Schedule of Other Assets | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Current Receivable from on-line payment platforms 30,037,799 39,540,599 5,569,177 Interest receivable 4,944,657 13,666,330 1,924,862 Deposits 16,777,691 16,066,771 2,262,957 Advance to suppliers 9,168,211 12,190,988 1,717,065 VAT recoverable 9,633,270 13,096,157 1,844,555 Others 45,201,069 22,486,277 3,167,125 Total 115,762,697 117,047,122 16,485,741 Non-current Rental deposit 54,765,709 56,649,069 7,978,855 Purchase and rental deposits for buildings 192,305,859 192,305,859 27,085,714 VAT recoverable 20,123,329 17,872,226 2,517,250 Others 44,875,793 31,613,426 4,452,657 Less: impairment provision (192,305,859) (193,714,980) (27,284,184) Total 119,764,831 104,725,600 14,750,292 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BANK LOANS | |
Schedule of principal payments on long-term borrowings | Year ending December 31, RMB USD 2024 200,000 28,169 2025 200,000 28,169 2026 56,600,000 7,971,944 Total 57,000,000 8,028,282 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Payable to franchisees 208,604,931 210,052,467 29,585,271 VAT and tax surcharges 121,470,798 129,067,113 18,178,723 Construction payable 15,587,528 22,211,219 3,128,385 Deposits payable 20,162,737 24,759,270 3,487,270 Payable for business combination and asset acquisitions 13,342,676 13,743,026 1,935,664 Others 60,593,723 59,999,622 8,450,770 Total 439,762,393 459,832,717 64,766,083 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Schedule of accumulated other comprehensive income | Unrealized Foreign gains(losses) currency on available- translation for-sale adjustments investments Total RMB RMB RMB Balance at January 1, 2022 (As adjusted) 39,089,244 2,791,663 41,880,907 Net current-period other comprehensive losses (11,361,872) (2,786,931) (14,148,803) Balance at December 31, 2022 (As adjusted) 27,727,372 4,732 27,732,104 Net current-period other comprehensive gains (losses) 672,112 (2,934) 669,178 Balance at December 31, 2023 28,399,484 1,798 28,401,282 Balance at December 31, 2023 (USD) 3,999,984 253 4,000,237 |
OPERATING COSTS (Tables)
OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OPERATING COSTS | |
Schedule Of Operating Costs | Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Rental 373,927,843 317,562,563 277,652,599 39,106,551 Utilities 49,096,488 44,864,225 42,865,151 6,037,430 Personnel cost 214,561,372 167,637,463 145,561,157 20,501,860 Depreciation and amortization 99,017,155 104,582,040 92,987,860 13,097,066 Consumable, food and beverage 84,387,597 32,443,116 54,360,427 7,656,506 Costs of hotel manager of franchised-and-managed hotels 114,779,305 107,852,170 114,328,002 16,102,762 Material cost 299,678,656 226,713,708 171,832,538 24,202,107 Other costs of franchised-and-managed hotels 26,123,578 14,340,427 17,518,603 2,467,444 Others 50,944,304 50,517,239 30,332,477 4,272,240 Total 1,312,516,298 1,066,512,951 947,438,814 133,443,966 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE BASED COMPENSATION | |
Schedule of Assumptions Used to Estimate Fair Value of Share Options | Granted in 2021 Granted in 2022 Risk-free interest rate 0.92 % 1.35 % Volatility 40 % 39 % Dividend yield 2.5 % 2.5 % Expected Life 6 years 6 years |
Summary of Share Option Activity Under Option Plans | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Life Value USD Years USD Share options outstanding at December 31, 2021 (As adjusted) 992,500 12.27 2.14 — Granted 10,000 14.00 6 — Forfeited (62,000) 12.84 — — Share options outstanding at December 31, 2022 (As adjusted) 940,500 12.26 1.18 — Forfeited (15,500) 12.52 — — Share options outstanding at December 31, 2023 925,000 12.25 0.18 — Vested and expected to vest at December 31, 2023 925,000 12.25 0.18 — Exercisable as of December 31, 2023 914,250 12.22 0.18 — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Summary of income (loss) before income taxes and share of losses in equity method investments | Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Mainland China 198,215,455 (301,862,814) 351,791,690 49,548,823 Others (2,739,212) (202,301,240) 28,580,168 4,025,431 Total 195,476,243 (504,164,054) 380,371,858 53,574,254 |
Summary of Current and Deferred Components of Income Tax Expense | Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Current tax 112,009,150 86,534,248 120,875,594 17,024,971 Deferred tax 278,081 (130,607,150) (2,423,339) (341,320) Total 112,287,231 (44,072,902) 118,452,255 16,683,651 |
Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | Years ended December 31, 2021 2022 2023 (As adjusted) (As adjusted) PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 11 % 9 % 3 % Effect of international rate difference 1 % (9) % (2) % Effect of preferential tax rate (8) % 0 % (1) % FIN48 accrual and reversal 18 % (4) % 7 % Valuation allowance 19 % (10) % 3 % Tax effect of expenses that are not deductible in determining taxable profit (9) % (2) % (4) % Effective tax rate 57 % 9 % 31 % |
Components of Deferred Income Tax Assets and Liabilities | As of December 31 2022 2023 2023 RMB RMB USD (As adjusted) Deferred tax assets: Net loss carryforward 148,078,332 156,003,878 21,972,687 Lease liabilities 447,847,914 417,112,367 58,749,048 Bad debt expenses 79,889,329 89,464,616 12,600,828 Deferred revenue 92,320,709 83,228,802 11,722,532 Impairment of long-lived assets and other assets 58,292,381 65,542,792 9,231,509 Accrued expenses 19,923,623 19,373,529 2,728,705 Unrealized losses from equity securities 717,944 1,342,225 189,048 Outside basis difference 5,759,144 — — Valuation allowance (180,469,287) (192,143,009) (27,062,777) Total deferred tax assets 672,360,089 639,925,200 90,131,580 Deferred tax liabilities: Depreciation of property and equipment (10,504,158) (2,479,000) (349,160) Unrealized gains from equity securities (5,360,418) (1,939,227) (273,134) Intangible assets arising from acquisition (82,416,163) (75,820,498) (10,679,094) Withholding tax on PRC earnings to be distributed (20,730,212) (30,504,731) (4,296,502) Right-of-use assets (414,067,632) (381,932,879) (53,794,121) Total deferred tax liabilities (533,078,583) (492,676,335) (69,392,011) |
Schedule of Unrecognized Tax Benefits | Unrecognized tax benefits —December 31, 2021(As adjusted) 249,553,169 Increases — tax positions in the current period 27,552,369 Decreases — tax positions in prior period (19,805,374) Unrecognized tax benefits — December 31, 2022(As adjusted) 257,300,164 Unrecognized tax benefits — January 1, 2023 257,300,164 Increases — tax positions in the current period 61,493,198 Decreases — tax positions in prior period (40,097,137) Unrecognized tax benefits — December 31, 2023 278,696,225 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of Related Party Transactions or Balances with the Group | Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Quality Control Manager GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Aotao Restaurant management Controlled by GTI Getao Industrial (HK) Limited. (“Getao”) Restaurant management Controlled by GTI Shiquanmeiwei (Beijing) Catering and Management Co., Ltd. (“Shiquanmeiwei”) Restaurant management Controlled by GTI Beifu HK Restaurant management Controlled by GTI Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Yibon Hotel management Equity investee of the Group Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) * Hotel management Equity investee of the Group Woyaojiu Information Technology (Shanghai) Co.,Ltd. (“Woyaojiu”) Restaurant management Controlled by Hui Xu Shanxi Yueyuanbaili Hotel Management Co., Ltd. (“Yueyuan”) Hotel management Equity investee of the Group Apex(Weihai) Industrial Co., Ltd. (“Apex”) Construction Controlled by Hui Xu Geweimei Biotechnology (Wuxi) Co., Ltd. (“Geweimei”) Food manufacturing Controlled by GTI Gelu (Shanghai) Catering Management Co., Ltd. (“Gelu”) Restaurant management Controlled by GTI Shanghai Geyi Catering Management Co., Ltd. (“Geyi”) Restaurant management Controlled by GTI Shanghai Xiaoyi Health Services Co., Ltd. (“Xiaoyi”) Care service provider Controlled by GTI Shanghai Xiangcai Catering Management Co., Ltd. (“Xiangcai”) Restaurant management Equity investee of the Group Wiselong IT consulting Equity investee of the Group Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Restaurant Management Previously controlled by GTI, and disposed by GTI during 2022 * Hanyuan was a subsidiary of the Group before December 2021. Since the Group disposed 5% of the equity interests of Hanyuan on December 6, 2021, Hanyuan has been an equity investee of the Group. |
Schedule of Related Party Balances | Due from related parties: As of December 31 2022 2023 2023 RMB RMB USD (As adjusted) Current: Yibon (ii) 7,039,315 7,321,246 1,031,176 Hanyuan (iii) 6,643,508 6,732,977 948,320 Wen Qi (iv) — 2,360,000 332,399 Yueyuan (iii) 608,394 688,064 96,912 Aotao (i) 45,174,828 141,069 19,869 Others (v) 11,556,512 3,217,386 453,159 GTI (i) 326,440,000 — — Beifu HK (i) 28,278,520 — — Less: provision — (531,961) (74,925) Total 425,741,077 19,928,781 2,806,910 Non-current: Apex (vi) 110,000,000 110,000,000 15,493,176 Qiwen (iv) 2,360,000 — — Total 112,360,000 110,000,000 15,493,176 (i). In March 2023, the amounts of RMB399,800,000 (USD56,310,652) in aggregate due from GTI, Aotao and Beifu HK were settled by 100% equity interests of Da Niang and 83.9% equity interests of Bellagio transferred from GTI to the Group. These transactions were accounted for as business combinations under common control (Note 3). (ii). Current amounts due from Yibon mainly comprised of a loan repayable on demand with an interest rate of 6% per annum with pledge of one Yibon’s leased-and-operated hotel. (iii). Current amounts due from Hanyuan and Yueyuan are loans to them, who are the equity investees of the Group, for hotel improvement. (iv). Current amounts due from Wen Qi is a loan with a principal of RMB2,360,000 (USD 342,168 (v). The current amounts mainly consisted of accounts receivable due to daily operations with the related parties which were unsecured, interest free, and repayable upon demand. (vi). Noncurrent amounts due from related parties as of December 31, 2023 comprised of RMB110,000,000 (USD15,493,176) prepayments made by the Group to Apex to acquire buildings for hotel businesses development. In March 2024, the engineering and fire control acceptance of construction in progress in Weihai, Shandong has been completed. Due to related parties: As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) Current: Aotao *(i) 12,808,201 12,660,573 1,783,204 Yibon (ii) 7,238,237 — — Others (ii) 1,670,765 3,649,720 514,053 Total 21,717,203 16,310,293 2,297,257 (i) Amounts due to Aotao comprised of the payable for advertising service from Aotao and loans from Aotao which were unsecured, interest free, and repayable upon demand. (ii) Amounts due to Yibon and others represents the trade payables due to the normal business operation with related parties which were unsecured, interest free, and repayable upon demand. |
Schedule of Related Party Transactions | Year ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Loan to related parties Loan to GTI (206,256,382) (162,490,000) — — Loan to Hanyuan — (3,237,408) — — Loan to Qiwen — (2,360,000) — — Loan to Yueyuan — (608,394) — — Repayment from GTI — 42,305,000 — — Repayment from Yibon 3,750,000 1,250,000 — — Loan to Aotao (186,051,400) — — — Repayment from Aotao 121,000,000 — — — Loan to Beifu HK (169,511,160) — — — Repayment from Getao on behalf of Beifu HK 143,383,500 — — — Loan to Yibon (3,000,000) — — — Interest income from Yibon 544,352 12,333 465,500 65,564 Service provided by related parties (7,208,533) (5,770,739) (14,044) (1,978) Goods purchased from related parties (3,601,778) (692,797) (2,837,072) (399,593) Service provided to related parties 1,583,446 1,397,915 2,604,417 366,824 Goods sold to related parties 756,899 — 23,787 3,350 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of Basic and Diluted Earning Per Share | Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Numerator: Net income (loss) used in calculating earnings per share-basic and diluted 88,706,756 (425,153,181) 269,316,308 37,932,408 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings (loss) per share 68,286,954 68,201,056 67,321,003 67,321,003 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings (loss) per share 34,762,909 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings(loss) — basic and diluted: To Class A Shares 58,782,360 (281,612,076) 177,605,302 25,015,184 To Class B Shares 29,924,396 (143,541,105) 91,711,006 12,917,224 Basic and diluted earnings(loss) per share: To Class A Shares 0.86 (4.13) 2.64 0.37 To Class B Shares 0.86 (4.13) 2.64 0.37 |
SEGMENT REPORT (Tables)
SEGMENT REPORT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORT | |
Summary of the group's operating segment operating results | Year Ended December 31,2021 Hotel business Restaurant business Eliminations Consolidated RMB RMB RMB RMB Total revenues 1,206,145,958 765,185,811 (3,516,750) 1,967,815,019 Total operating costs and expenses (1,079,282,513) (790,359,158) 1,028,243 (1,868,613,428) Income (loss) from operations 153,923,380 (22,235,049) (2,488,507) 129,199,824 Income (loss) before income taxes and share of losses in equity method investments 222,182,847 (24,218,097) (2,488,507) 195,476,243 Net income(loss) 113,676,839 (28,238,573) (1,866,380) 83,571,886 Year Ended December 31,2022 Hotel business Restaurant business Eliminations Consolidated RMB RMB RMB RMB Total revenues 936,801,282 533,787,252 (1,514,259) 1,469,074,275 Total operating costs and expenses (1,399,392,154) (580,020,769) (184,330) (1,979,597,253) Loss from operations (443,141,983) (41,689,258) (1,698,589) (486,529,830) Loss before income taxes and share of losses in equity method investments (459,060,589) (43,404,876) (1,698,589) (504,164,054) Net loss (415,066,472) (45,349,039) (1,273,942) (461,689,453) Year Ended December 31,2023 Hotel business Restaurant business Eliminations Consolidated RMB USD RMB USD RMB USD RMB USD Total revenues 1,191,906,073 167,876,459 441,635,966 62,203,124 (6,284,350) (885,132) 1,627,257,689 229,194,451 Total operating costs and expenses (881,148,053) (124,107,108) (448,102,058) (63,113,855) 10,471,447 1,474,872 (1,318,778,664) (185,746,091) Income (loss) from operation 335,283,353 47,223,672 (3,821,524) (538,251) 4,187,097 589,740 335,648,926 47,275,161 Income (loss) before income taxes and share of losses in equity method investments 380,115,748 53,538,182 (3,930,987) (553,668) 4,187,097 589,740 380,371,858 53,574,254 Net income (loss) 265,598,004 37,408,695 (8,210,726) (1,156,456) 3,140,323 442,305 260,527,601 36,694,544 |
Summary of group's revenues disaggregated | Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Revenue: Leased-and-operated hotels 391,960,031 338,506,220 490,924,060 69,145,208 Franchised-and-managed hotels 774,359,348 582,441,077 696,321,236 98,074,795 Wholesale and others 39,826,579 15,853,985 4,660,777 656,456 Hotel business subtotal 1,206,145,958 936,801,282 1,191,906,073 167,876,459 Revenue: Leased-and-operated restaurants 575,062,530 362,806,697 296,890,282 41,816,122 Franchised-and-managed restaurants 8,212,730 6,022,291 8,923,712 1,256,879 Wholesale and others 181,910,551 164,958,264 135,821,972 19,130,123 Restaurant business subtotal 765,185,811 533,787,252 441,635,966 62,203,124 Inter-segment* (3,516,750) (1,514,259) (6,284,350) (885,132) Total revenue 1,967,815,019 1,469,074,275 1,627,257,689 229,194,451 * The inter segment eliminations mainly consist of labor services related to restaurant staff and prepared meals and frozen foods provided by restaurant business segment to hotel business segment. |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Condensed Balance Sheets | As of December 31, 2022 2023 2023 RMB RMB USD (As adjusted) ASSETS Current assets Cash and cash equivalents 15,788,863 13,423,750 1,890,696 Investments in equity securities 3,094,133 978,841 137,867 Amounts due from subsidiaries 122,364,821 125,960,969 17,741,231 Amounts due from a related party 348,019,981 — — Other current assets — 321,495 45,282 Total current assets 489,267,798 140,685,055 19,815,076 Non-current assets: Investments in subsidiaries 1,803,139,078 2,179,129,452 306,923,964 Investments in equity securities 33,408,446 44,324,789 6,243,016 TOTAL ASSETS 2,325,815,322 2,364,139,296 332,982,056 LIABILITIES AND EQUITY Current liabilities: Dividends payable — — — Short-term bank loans — 116,800,000 16,450,936 Long -term bank loans, current portion 121,800,000 200,000 28,169 Amounts due to subsidiaries 592,226,352 748,121,016 105,370,642 Total current liabilities 714,026,352 865,121,016 121,849,747 Non-current liabilities: Long-term bank loans, non-current portion — 56,800,000 8,000,113 Other long-term liabilities — — — Total liabilities 714,026,352 921,921,016 129,849,860 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share;400,000,000 and 400,000,000 shares authorized as of December 31, 2022 and 2023; 67,416,046 and 66,780,612 shares issued outstanding 222,587,070 222,587,070 31,350,733 Class B ordinary shares (USD0.50 par value per share; 100,000,000 and 100,000,000 shares authorized as of December 31, 2022 and 2023; 34,762,909 and 34,762,909 shares issued and outstanding as of December 31, 2022 and 2023, respectively) 115,534,210 115,534,210 16,272,653 Treasury stock (16,971,057) (36,677,832) (5,165,965) Additional paid-in capital 2,080,450,699 1,680,713,349 236,723,524 Accumulated losses (817,544,056) (568,339,799) (80,048,986) Accumulated other comprehensive income 27,732,104 28,401,282 4,000,237 Total Shareholders’ Equity 1,611,788,970 1,442,218,280 203,132,196 TOTAL LIABILITIES AND EQUITY 2,325,815,322 2,364,139,296 332,982,056 |
Condensed Statements of Operations | Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) General and administrative expenses (18,917,120) (6,740,255) (6,637,389) (934,857) Other general expense — (13,944,926) — — Interest income 173,316 1,924 15,128 2,131 Interest expense — (5,192,054) (4,723,335) (665,268) Other income — 22,765,816 19,969,182 2,812,600 Gains(losses) on investments in equity securities 11,519,174 (76,105,482) 7,927,075 1,116,505 Share of profit (losses) in subsidiaries, net (Note a) 95,931,386 (345,938,204) 252,765,647 35,601,297 Net income (loss) 88,706,756 (425,153,181) 269,316,308 37,932,408 Other comprehensive losses, net of tax – Foreign currency translation adjustments (3,705,740) (11,361,872) 672,112 94,665 – Unrealized gains (losses) on available-for-sale investments — (2,786,931) (2,934) (413) Comprehensive income (loss) 85,001,016 (439,301,984) 269,985,486 38,026,660 |
Condensed Statements of Cash Flows | Year Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD (As adjusted) (As adjusted) Net cash provided by operating activities (13,786,532) (4,198,307) (12,424,134) (1,749,903) Net cash used in investing activities (113,026,343) (156,276,810) (352,234,205) (49,611,150) Net cash (used in) provided by financing activities (46,235,224) 155,679,057 362,690,064 51,083,827 Effect of exchange rate changes on cash and cash equivalents and restricted cash 2,306,901 (2,025,056) (396,838) (55,893) Net decrease in cash and cash equivalents and restricted cash (170,741,198) (6,821,116) (2,365,113) (333,119) Cash and cash equivalents and restricted cash at beginning of the year 193,351,177 22,609,979 15,788,863 2,223,815 Cash and cash equivalents and restricted cash at end of the year 22,609,979 15,788,863 13,423,750 1,890,696 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 20, 2021 CNY (¥) | Dec. 20, 2021 USD ($) $ / shares | Jan. 15, 2020 shares | Jun. 27, 2019 shares | Jan. 25, 2019 shares | Mar. 27, 2018 $ / shares shares | Dec. 31, 2023 shares | Oct. 31, 2023 shares | Jan. 31, 2022 CNY (¥) | Jan. 31, 2022 USD ($) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Entity incorporation date | Oct. 18, 2017 | Oct. 18, 2017 | ||||||||||
Cash dividend | $ | $ 56,667,425 | |||||||||||
Cash dividend per ordinary share | $ / shares | $ 0.55 | |||||||||||
Payments of dividend | ¥ 320,253,160 | $ 50,243,715 | ¥ 40,999,458 | $ 6,423,710 | ||||||||
Cash paid to repurchase the shares | ¥ 19,706,775 | $ 2,775,641 | ||||||||||
Minimum | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Lease term | 5 years | 5 years | 5 years | |||||||||
Maximum | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Lease term | 20 years | 20 years | 20 years | |||||||||
Leased And Operated Hotels | Minimum | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Lease term | 5 years | 5 years | 5 years | |||||||||
Leased And Operated Hotels | Maximum | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Lease term | 20 years | 20 years | 20 years | |||||||||
Franchise and managed hotels revenues | Minimum | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Lease term | 5 years | 5 years | 5 years | |||||||||
Franchise and managed hotels revenues | Maximum | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Lease term | 20 years | 20 years | 20 years | |||||||||
Argyle Beijing | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Business acquisition, equity interest acquired | 60% | |||||||||||
Common Class A | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Number of shares repurchased | 81,276 | 554,158 | ||||||||||
Cash paid to repurchase the shares | ¥ 19,706,775 | $ 2,775,641 | ||||||||||
Common Class A | Argyle Beijing | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Business acquisition, shares issued | 626,746 | 626,746 | ||||||||||
Common Class A | Shandong Xinghui | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Business acquisition, shares issued | 870,908 | |||||||||||
Business acquisition, equity interest acquired | 70% | |||||||||||
Common Class A | Initial Public Offering | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Stock issued during period | 10,200,000 | |||||||||||
Shares issued price per share | $ / shares | $ 14 | |||||||||||
Common Class B | ||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
Number of Class A ordinary shares that each share is convertible into | 1 | 1 |
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, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity incorporation date | Oct. 18, 2017 |
Entity Incorporation, State or Country Code | E9 |
GreenTree Inns Hotel (Shanghai) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Nov. 30, 2004 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (China) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jun. 30, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Aug. 09, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Hexie (Changzhou) Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Sep. 14, 2006 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Jiangsu) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Changning) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Tianjin) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Aug. 02, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Zhejiang) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Aug. 13, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Beijing) Management, Inc. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Mar. 17, 2008 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shiruide Hotel Management (Shanghai) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 16, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Jinan Dongrunbao Inns Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Apr. 22, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Suites Management Corp ("GreenTree Suites") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | E9 |
Major Operation | Investment holding |
Pacific Hotel Investment, Inc.("PHI") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Inns Hotel Management Group, Inc. ("GreenTree Samoa") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Oct. 28, 2010 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Hotels (Hong Kong), Limited. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 17, 2011 |
Entity Incorporation, State or Country Code | K3 |
Major Operation | Investment holding |
Shanghai Evergreen Technology Co., Ltd. ("Shanghai Evergreen") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
Shanghai Beifu Industrial Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 25, 2014 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shenzhen Gegao Investment Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | May 07, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Investment holding |
Yancheng Ruixin Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 70% |
Entity incorporation date | Jun. 05, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Jingjia Hotel Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 15, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Wumian Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 66.70% |
Entity incorporation date | Jan. 16, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Yancheng Zexin Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 51% |
Entity incorporation date | Jul. 01, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Foshan Baiqinghui Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 70% |
Entity incorporation date | Aug. 31, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Hotel (Xuzhou) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Feb. 05, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Banyan Hotel (Xuzhou) Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | May 03, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Suzhou Ganglongkaiyuan Hotel Management Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | May 31, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
Da Niang Dumpling Catering Group Co., Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Apr. 30, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Restaurant management |
Jiangsu Daniang Trading Co., Ltd | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Apr. 30, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Wholesaling |
Jiangsu Daniang Food Co., Ltd | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 100% |
Entity incorporation date | Apr. 30, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Food manufacturing |
Huge Cyber Ltd. | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 83.90% |
Entity incorporation date | Aug. 21, 2020 |
Entity Incorporation, State or Country Code | K3 |
Major Operation | Restaurant management |
Bellagio (Shanghai) Catering Management Co., Ltd | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 83.90% |
Entity incorporation date | Aug. 21, 2020 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Restaurant management |
Bellagio (Beijing) Catering Management Co., Ltd | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of Ownership | 83.90% |
Entity incorporation date | Aug. 21, 2020 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Restaurant management |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | |||||||
Dec. 31, 2023 CNY (¥) tier segment | Dec. 31, 2023 USD ($) tier segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Jan. 01, 2023 CNY (¥) | Jan. 01, 2023 USD ($) | May 31, 2016 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Unrealized gains from long-term time deposit | ¥ 4,485,000 | $ 631,699 | ¥ 4,534,833 | ¥ 4,726,875 | ||||
Long-term time deposits pledged with banks as security | 63,340,000 | 130,000,000 | $ 8,921,252 | |||||
Impairment loss | 40,559,449 | 5,712,679 | 53,244,063 | 6,246,986 | ||||
Accumulated losses | (568,339,799) | (817,544,056) | (80,048,986) | |||||
Impairment loss of goodwill | 0 | 91,236,480 | ||||||
Sublease rental income | 102,194,590 | 14,393,807 | 61,578,703 | 74,689,226 | ||||
Hotel manager fees | ¥ 134,798,805 | $ 18,986,015 | 115,738,098 | 131,027,473 | ||||
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 | ||||||
Accommodation services, value-added tax rate | 6% | |||||||
Catering services, value-added tax rate | 13% | |||||||
Advertising and promotional expenses | ¥ 24,170,599 | $ 3,404,358 | 35,872,725 | 37,347,260 | ||||
Government subsidies | ¥ 13,076,243 | $ 1,849,483 | 11,466,168 | 16,993,539 | ||||
Operating segments | segment | 2 | 2 | ||||||
Employee benefits | ¥ 54,737,023 | $ 7,709,548 | 63,954,002 | 59,058,712 | ||||
Foreign currency translation adjustments | 672,112 | 94,665 | (11,361,872) | (6,497,403) | ||||
Impairment of long-lived assets | 40,559,449 | 5,712,679 | 48,306,360 | 0 | ||||
Impairment of long-lived assets | 40,559,449 | $ 5,712,679 | 53,244,063 | 6,246,986 | ||||
Carrying amount of long-term investment | 9,826,143 | 9,826,143 | 1,383,984 | |||||
Hotel Business | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Impairment loss | ¥ 0 | 4,937,703 | ¥ 6,246,986 | |||||
Impairment loss of goodwill | 91,236,480 | |||||||
Argyle Beijing | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Impairment loss of goodwill | 91,236,480 | |||||||
Loans Receivable | Credit Concentration Risk | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Appreciation in functional currency | 2.94% | 2.94% | ||||||
PRC | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Concentration of credit risk | ¥ 152,287,629 | 1,045,181,927 | 21,449,264 | |||||
Cayman Island | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Concentration of credit risk | 1,073,930,780 | 4,811,376 | $ 533,195,219 | |||||
Hong Kong | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Concentration of credit risk | ¥ 75,098,976 | 1,120,364,700 | ||||||
Japan | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Concentration of credit risk | ¥ 157,800,068 | |||||||
RMB | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Foreign currency exchange rate | 7.0999 | 7.0999 | ||||||
ASU 2016-13 | Adjustment | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Accumulated losses | ¥ 20,112,051 | $ 2,832,723 | ||||||
Minimum | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Estimated life of paid membership program | 3 years | 3 years | ||||||
Long term, maturity period | 1 year | 1 year | ||||||
Initial lease term | 5 years | 5 years | ||||||
Maximum | ||||||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||||||
Estimated life of paid membership program | 5 years | 5 years | ||||||
Long term, maturity period | 3 years | |||||||
Initial lease term | 20 years | 20 years |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of Property and Equipment Net, Expected Useful Lives (Details) | Dec. 31, 2023 |
Buildings and plants | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 20 years |
Furniture, fixtures and equipment | Minimum | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 3 years |
Furniture, fixtures and equipment | Maximum | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 5 years |
Motor vehicles | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Property and equipment net, expected useful lives | 5 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Amortization of Intangible Assets, Estimated Useful Lives (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | ¥ 16,027,000 | $ 2,257,356 | ¥ 30,892,345 | ¥ 14,047,000 |
Finite-lived trademarks | ||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Intangible assets estimated useful lives | 10 years | 10 years | ||
Technology | ||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Intangible assets estimated useful lives | 10 years | 10 years | ||
Network rights | ||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Intangible assets estimated useful lives | 10 years | 10 years | ||
Purchased software | Minimum | ||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Intangible assets estimated useful lives | 5 years | 5 years | ||
Purchased software | Maximum | ||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Intangible assets estimated useful lives | 10 years | 10 years | ||
Reacquired rights | ||||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Intangible assets estimated useful lives | the remaining franchise term | 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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Investments in equity securities - equity securities with readily determinable fair value | ¥ 26,076,169 | $ 3,672,752 | ¥ 41,361,346 |
Fair Value, Recurring | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Investments - Investments in wealth management products | 287,711,617 | 156,031,572 | |
Investments in equity securities - equity securities with readily determinable fair value | 26,076,169 | 41,361,346 | |
Long-term investments - equity securities with readily determinable fair value | 38,324,789 | 27,408,446 | |
Long-term investments -available-for-sale debt instrument | 103,703,272 | 103,706,206 | |
Fair Value Measurements | 455,815,847 | 328,507,570 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Investments in equity securities - equity securities with readily determinable fair value | 26,076,169 | 41,361,346 | |
Long-term investments - equity securities with readily determinable fair value | 38,324,789 | 27,408,446 | |
Fair Value Measurements | 64,400,958 | 68,769,792 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Investments - Investments in wealth management products | 287,711,617 | 156,031,572 | |
Fair Value Measurements | 287,711,617 | 156,031,572 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | |||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Long-term investments -available-for-sale debt instrument | 103,703,272 | $ 14,606,300 | 103,706,206 |
Fair Value Measurements | ¥ 103,703,272 | ¥ 103,706,206 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Reconciliations of Assets and Liabilities (Details) | Dec. 31, 2023 CNY (¥) |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Available-for- sale debt investment, Net unrealized fair value increase recognized in other comprehensive loss | ¥ (2,934) |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Unobservable Inputs (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
WACC | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Available-for-sale | 12 | 12 |
Discount for lack of marketability | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Available-for-sale | 35 | 34 |
Expected volatility | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Available-for-sale | 36 | 52 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Adopted Accounting Standards (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Adopted Accounting Standards | |||
Intangible assets, net | ¥ 117,720,693 | $ 16,580,613 | ¥ 159,686,705 |
Operating lease right-of-use assets | 1,535,330,762 | 216,246,815 | 1,674,595,179 |
Accrued expenses and other current liabilities | 459,832,717 | 64,766,083 | 439,762,393 |
Operating lease liabilities, current | 267,536,846 | 37,681,777 | 272,700,888 |
Operating lease liabilities, non-current | 1,391,909,308 | 196,046,326 | 1,516,274,996 |
Lease liabilities | ¥ 1,659,446,154 | $ 233,728,103 | ¥ 1,788,975,884 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 15, 2020 shares | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2023 CNY (¥) $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2023 USD ($) | |
BUSINESS COMBINATIONS | ||||||||
Goodwill | ¥ 177,082,468 | ¥ 177,082,468 | ¥ 177,082,468 | ¥ 268,318,948 | $ 24,941,544 | |||
Class A ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Basic earnings (losses) per share | (per share) | ¥ 2.64 | ¥ 0.37 | ¥ (4.13) | ¥ 0.86 | ||||
Diluted earnings (losses) per share | (per share) | 2.64 | 0.37 | (4.13) | 0.86 | ||||
Class B ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Basic earnings (losses) per share | (per share) | 2.64 | 0.37 | (4.13) | 0.86 | ||||
Diluted earnings (losses) per share | (per share) | ¥ 2.64 | ¥ 0.37 | (4.13) | 0.86 | ||||
As reported | Class A ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Basic earnings (losses) per share | 3.71 | 1.14 | ||||||
Diluted earnings (losses) per share | 3.71 | 1.14 | ||||||
As reported | Class B ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Basic earnings (losses) per share | 3.71 | 1.14 | ||||||
Diluted earnings (losses) per share | 3.71 | 1.14 | ||||||
Adjustment | Class A ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Basic earnings (losses) per share | (4.13) | 0.83 | ||||||
Diluted earnings (losses) per share | (4.04) | 0.83 | ||||||
Adjustment | Class B ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Basic earnings (losses) per share | (4.04) | 0.83 | ||||||
Diluted earnings (losses) per share | ¥ (4.04) | ¥ 0.83 | ||||||
2023 Business combinations | ||||||||
BUSINESS COMBINATIONS | ||||||||
Business acquisition, total consideration amount | ¥ 399,800,000 | $ 56,310,652 | ||||||
2023 Business combinations | GTI | ||||||||
BUSINESS COMBINATIONS | ||||||||
Business acquisition, total consideration amount | ¥ | 326,440,000 | |||||||
2023 Business combinations | Beifu HK | ||||||||
BUSINESS COMBINATIONS | ||||||||
Business acquisition, total consideration amount | ¥ | 28,278,520 | |||||||
2023 Business combinations | Aotao | ||||||||
BUSINESS COMBINATIONS | ||||||||
Business acquisition, total consideration amount | ¥ | ¥ 45,081,480 | |||||||
2021 Business Combinations | ||||||||
BUSINESS COMBINATIONS | ||||||||
Business acquisition, total consideration amount | ¥ | ¥ 23,000,000 | |||||||
Brand name | ¥ | 36,896,000 | |||||||
Goodwill | ¥ | 20,588,461 | |||||||
Business acquisition, cash consideration paid | ¥ | ¥ 19,530,000 | |||||||
Shandong Xinghui | Class A ordinary shares | ||||||||
BUSINESS COMBINATIONS | ||||||||
Business acquisition, shares issued | shares | 870,908 |
BUSINESS COMBINATIONS - Operati
BUSINESS COMBINATIONS - Operating profit(loss), income(loss) before income taxes and net income/(loss) (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | ¥ 335,648,926 | $ 47,275,161 | ¥ (486,529,830) | ¥ 129,199,824 |
Income (loss) before income taxes and share of losses in equity method investments | 380,371,858 | 53,574,254 | (504,164,054) | 195,476,243 |
Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest | 380,371,858 | 53,574,254 | (504,164,054) | 195,476,243 |
Net income (loss) | ¥ 260,527,601 | $ 36,694,544 | (461,689,453) | 83,571,886 |
Other comprehensive loss, net of tax | (14,148,803) | (3,705,740) | ||
Operating Segments [Member] | As previously reported | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (443,141,983) | 153,923,380 | ||
Income (loss) before income taxes and share of losses in equity method investments | (459,060,589) | 222,182,847 | ||
Net income (loss) | (415,066,472) | 113,676,839 | ||
Other comprehensive loss, net of tax | (14,148,803) | (3,705,740) | ||
Operating Segments [Member] | Restaurant Business | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (43,387,847) | (24,723,556) | ||
Income (loss) before income taxes and share of losses in equity method investments | (45,103,465) | (26,706,604) | ||
Net income (loss) | ¥ (46,622,981) | ¥ (30,104,953) |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Fair Values of the Assets Acquired and Liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Intangible assets | ||||
Goodwill | ¥ 177,082,468 | $ 24,941,544 | ¥ 177,082,468 | ¥ 268,318,948 |
2021 Business Combinations | ||||
BUSINESS COMBINATIONS | ||||
Property and equipment | 92,075 | |||
Intangible assets | ||||
Trademark | 36,896,000 | |||
Goodwill | 20,588,461 | |||
Noncontrolling interest | (34,576,536) | |||
Total | ¥ 23,000,000 | |||
2021 Business Combinations | Trademark and Brand name | ||||
Intangible assets | ||||
Amortization Period | 10 years | |||
2021 Business Combinations | Property, plant and equipment | Minimum | ||||
Intangible assets | ||||
Amortization Period | 3 years | |||
2021 Business Combinations | Property, plant and equipment | Maximum | ||||
Intangible assets | ||||
Amortization Period | 5 years |
DECONSOLIDATIONS - Deconsolidat
DECONSOLIDATIONS - Deconsolidation of Argyle (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 01, 2022 | Jun. 27, 2019 | |
DISPOSITION AND DECONSOLIDATION | ||||||||
Impairment of indefinite-lived intangible assets | ¥ 16,027,000 | $ 2,257,356 | ¥ 30,892,345 | ¥ 14,047,000 | ||||
Impairment loss of goodwill | 0 | 91,236,480 | ||||||
Carrying amount of long-term investment | 9,826,143 | 9,826,143 | $ 1,383,984 | |||||
Cumulative unrealized losses (including impairment) | ¥ 302,931 | 302,931 | $ 42,667 | |||||
Argyle Beijing | ||||||||
DISPOSITION AND DECONSOLIDATION | ||||||||
Business acquisition, equity interest acquired | 60% | |||||||
Impairment loss of goodwill | 91,236,480 | |||||||
Argyle Beijing | Deconsolidation | ||||||||
DISPOSITION AND DECONSOLIDATION | ||||||||
Impairment of indefinite-lived intangible assets | ¥ 17,054,641 | |||||||
Impairment loss of goodwill | 42,198,904 | ¥ 42,000,000 | ||||||
Loss on deconsolidation | 13,944,925 | |||||||
Cumulative unrealized losses (including impairment) | 48,000,000 | |||||||
Impairment losses of intangible assets with finite life | ¥ 700,762 | |||||||
Argyle Beijing | Deconsolidation | GreenTree Inns Hotel Management Group, Inc. | ||||||||
DISPOSITION AND DECONSOLIDATION | ||||||||
Equity interest held | 60% |
DECONSOLIDATIONS - Deconsolid_2
DECONSOLIDATIONS - Deconsolidation of Urban (Details) | 1 Months Ended | 12 Months Ended | ||||
Nov. 25, 2022 CNY (¥) shares | Nov. 30, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
DISPOSITION AND DECONSOLIDATION | ||||||
Impairment of indefinite-lived intangible assets | ¥ 16,027,000 | $ 2,257,356 | ¥ 30,892,345 | ¥ 14,047,000 | ||
Impairment of long-lived assets | 40,559,449 | $ 5,712,679 | 48,306,360 | ¥ 0 | ||
Impairment loss of goodwill | 0 | 91,236,480 | ||||
Urban | ||||||
DISPOSITION AND DECONSOLIDATION | ||||||
Fair value of shares issued as consideration | ¥ 126,000,000 | |||||
Cash consideration | 88,200,000 | ¥ 37,800,000 | ||||
Impairment of indefinite-lived intangible assets | ¥ 12,000,345 | |||||
Impairment of long-lived assets | 10,640,503 | |||||
Impairment loss of goodwill | ¥ 49,037,576 | |||||
Urban | Disposed by sale | ||||||
DISPOSITION AND DECONSOLIDATION | ||||||
Purchase price | ¥ 142,971,057 | |||||
Number of ordinary shares | shares | 870,908 | |||||
Fair value of shares issued as consideration | ¥ 16,971,057 | |||||
Loss on disposal | ¥ 855,223 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | ¥ 1,627,257,689 | $ 229,194,451 | ¥ 1,469,074,275 | ¥ 1,967,815,019 |
Leased-and-operated revenue | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 787,814,342 | 110,961,329 | 700,022,649 | 963,727,199 |
Leased-and-operated revenue | Hotel | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 490,924,060 | 69,145,208 | 338,506,220 | 391,960,031 |
Leased-and-operated revenue | Restaurant | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 296,890,282 | 41,816,121 | 361,516,429 | 571,767,168 |
Franchise and managed revenues | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 705,244,948 | 99,331,673 | 588,463,368 | 782,572,078 |
Franchise and managed revenues | Hotel | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 696,321,236 | 98,074,795 | 582,441,077 | 774,359,348 |
Franchise and managed revenues | Restaurant | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | 8,923,712 | 1,256,878 | 6,022,291 | 8,212,730 |
Wholesales and other | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Revenues | ¥ 134,198,399 | $ 18,901,449 | ¥ 180,588,258 | ¥ 221,515,742 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS DFGD - Summary of Contract Liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||
Advance from customers | ¥ 22,393,097 | $ 3,154,002 | ¥ 25,604,363 |
Deferred revenue-current | 186,281,838 | 26,237,248 | 193,352,239 |
Deferred revenue-non current | 207,905,769 | 29,282,915 | 234,374,415 |
Total contract liabilities | ¥ 416,580,704 | $ 58,674,165 | ¥ 453,331,017 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Components of Deferred Revenue (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Total deferred revenue | ¥ 394,187,607 | $ 55,520,163 | ¥ 427,726,654 |
Initial Franchise Fee | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Total deferred revenue | 169,240,060 | 23,836,964 | 193,210,093 |
Cash received for membership fees and not recognized as revenue | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Total deferred revenue | 126,864,736 | 17,868,524 | 138,656,460 |
Cash received for prepaid card and sublease | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Total deferred revenue | 40,828,943 | 5,750,636 | 43,719,235 |
Deferred revenue related to the membership program | |||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||
Total deferred revenue | ¥ 57,253,868 | $ 8,064,039 | ¥ 52,140,866 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Contract liabilities, revenues recognized | ¥ 157,377,305 | $ 22,166,130 | ¥ 181,300,596 | |
Total deferred revenue | 394,187,607 | 427,726,654 | $ 55,520,163 | |
Initial Franchise Fee | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | 169,240,060 | 193,210,093 | 23,836,964 | |
Membership Fees | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | 126,864,736 | 138,656,460 | 17,868,524 | |
Greentree Reward Membership Program | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | 57,253,868 | 52,140,866 | 8,064,039 | |
Cash Received for Prepaid Card and Sublease | ||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | ||||
Total deferred revenue | ¥ 40,828,943 | ¥ 43,719,235 | $ 5,750,636 |
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 [Axis]: 2023-01-01 | Dec. 31, 2023 |
Initial Franchise Fee | Minimum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 1 year |
Initial Franchise Fee | Maximum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 23 years |
Membership Fees | Minimum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 1 year |
Membership Fees | Maximum | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 5 years |
Greentree Reward Membership Program | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Deferred revenues, remaining contract periods | 2 years |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||||
Less: allowances | ¥ (3,532,016) | $ (497,474) | ¥ (8,840,708) | $ (1,245,188) | ¥ (3,763,286) |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 123,887,879 | 17,449,243 | 134,916,930 | ||
Receivables from franchise and managed hotels | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Accounts receivable before allowances | 82,023,109 | 11,552,713 | 84,191,516 | ||
Receivables from third-party merchandisers for sublease rental | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Accounts receivable before allowances | 23,923,294 | 3,369,526 | 9,911,179 | ||
Receivable from individual and corporate customers and travel agents | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Accounts receivable before allowances | 13,872,840 | 1,953,949 | 36,180,399 | ||
Receivables from distributors, supermarkets and franchise and managed restaurants | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Accounts receivable before allowances | ¥ 7,600,652 | $ 1,070,529 | ¥ 13,474,544 |
ACCOUNTS RECEIVABLE, NET - Move
ACCOUNTS RECEIVABLE, NET - Movements in allowance for credit losses (Details) | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Balance of the beginning of the year | ¥ 8,840,708 | $ 1,245,188 | ¥ 3,763,286 |
Provision | 12,377,993 | 1,743,404 | 29,405,627 |
Write-off | (19,191,203) | (2,703,025) | (24,328,205) |
Balance of the end of the year | 3,532,016 | 497,474 | 8,840,708 |
Adjustment | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Balance of the beginning of the year | ¥ 1,504,518 | $ 211,907 | 0 |
Balance of the end of the year | ¥ 1,504,518 |
INVENTORIES (Details)
INVENTORIES (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
INVENTORIES | |||
Products | ¥ 9,993,021 | $ 1,407,488 | ¥ 9,292,497 |
Hotel consumables | 5,090,286 | 716,952 | 2,236,082 |
Raw materials | 3,615,120 | 509,179 | 7,688,012 |
Packing materials and others | 1,764,063 | 248,462 | 2,704,211 |
Total | ¥ 20,462,490 | $ 2,882,081 | ¥ 21,920,802 |
LOANS RECEIVABLE, NET - Summary
LOANS RECEIVABLE, NET - Summary of Loans Receivable, Net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | ¥ 129,521,094 | $ 18,242,665 | ¥ 181,667,170 |
Less: bad debt provision | (277,097,025) | (39,028,300) | (54,668,667) |
Loans receivable, non-current portion | 70,690,305 | 9,956,521 | 177,172,509 |
Less: allowances | (39,793,823) | (5,604,843) | (224,649,006) |
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 374,022,230 | 52,679,930 | 197,473,408 |
Loans receivable, non-current portion | 90,484,128 | 12,744,423 | 373,477,244 |
Third parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 32,595,889 | 4,591,035 | 38,862,429 |
Loans receivable, non-current portion | ¥ 20,000,000 | $ 2,816,941 | ¥ 28,344,271 |
LOANS RECEIVABLE, NET - Aging o
LOANS RECEIVABLE, NET - Aging of past-due loans receivables (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | ¥ 319,510,409 | $ 45,002,100 | ¥ 291,124,147 |
1 to 3 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 16,572,823 | 2,334,233 | 37,705,971 |
4 to 6 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 24,199,825 | 3,408,474 | 17,747,676 |
7 to 12 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 63,451,054 | 8,936,894 | 101,491,036 |
Over 1 year past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | ¥ 215,286,707 | $ 30,322,499 | ¥ 134,179,464 |
LOANS RECEIVABLE, NET - Movemen
LOANS RECEIVABLE, NET - Movement of allowance for loans receivable (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
Movement of allowance for loans receivable | ||||
Balance of the beginning of the year | ¥ 279,317,673 | $ 39,341,071 | ¥ 117,886,002 | |
Provision | 15,396,673 | 2,168,576 | 161,431,671 | |
Balance of the end of the year | 316,890,848 | 44,633,143 | 279,317,673 | |
Evaluated for impairment on an individual basis | 116,302,348 | ¥ 116,852,875 | $ 16,380,843 | |
Adjustment | ||||
Movement of allowance for loans receivable | ||||
Balance of the end of the year | ¥ 22,176,502 | $ 3,123,496 |
LOANS RECEIVABLE, NET - Additio
LOANS RECEIVABLE, NET - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Minimum | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Long term, maturity period | 1 year | 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] | ||||
Recognized allowance in relation to loans receivables | ¥ 15,396,673 | $ 2,168,576 | ¥ 161,431,671 | ¥ 99,886,003 |
Loan Agreement | Franchisees | Minimum | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Long term, maturity period | 1 month | 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 | 6 years | ||
Debt instrument, interest rate | 9.90% | 9.90% | ||
Loan Agreement | Third Parties | Minimum | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Long term, maturity period | 1 year | 1 year | ||
Debt instrument, interest rate | 7.90% | 7.90% | ||
Loan Agreement | Third Parties | Maximum | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Long term, maturity period | 3 years | 3 years | ||
Debt instrument, interest rate | 18% | 18% |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property and Equipment, Net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 1,690,776,557 | $ 238,140,897 | ¥ 1,685,155,680 |
Less: Accumulated depreciation | (841,035,233) | (118,457,335) | (775,084,743) |
Impairment | (54,747,393) | (7,711,009) | (49,354,581) |
Construction in progress | 19,955,095 | 2,810,617 | 22,304,172 |
Property, plant and equipment, net | 814,949,026 | 114,783,170 | 883,020,528 |
Buildings and plants | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 685,779,415 | 96,590,010 | 685,779,415 |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 705,905,133 | 99,424,659 | 700,721,935 |
Furniture, fixtures and equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 289,733,445 | 40,808,102 | 291,802,076 |
Motor vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 9,358,564 | $ 1,318,126 | ¥ 6,852,254 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) building | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Property Plant And Equipment [Line Items] | ||||||
Depreciation expense | ¥ 110,184,167 | $ 15,519,115 | ¥ 119,299,006 | ¥ 114,192,402 | ||
Property, plant and equipment, net | ¥ 814,949,026 | ¥ 883,020,528 | $ 114,783,170 | |||
Building and a land | ||||||
Property Plant And Equipment [Line Items] | ||||||
Number of properties pledges as collateral | 3 | |||||
Property, plant and equipment, net | ¥ 288,220,463 | $ 40,595,003 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of intangible assets, net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Intangible assets with indefinite lives: | |||
Gross carrying value - Indefinite-lived intangible asset | ¥ 495,000,000 | ||
Accumulated impairment - Indefinite-lived intangible asset | 375,554,000 | ||
Net carrying value - Indefinite-lived intangible asset | 119,446,000 | ||
Intangible assets with finite lives: | |||
Less: Accumulated amortization | ¥ 39,093,870 | 32,523,011 | |
Net carrying value - Finite-lived intangible assets | 117,720,693 | $ 16,580,613 | 159,686,705 |
Gross carrying value - Total | 568,701,168 | 567,763,716 | |
Accumulated impairment - Total | 411,886,605 | 375,554,000 | |
Net carrying value - Total | 117,720,693 | 16,580,613 | 159,686,705 |
Trademarks | |||
Intangible assets with indefinite lives: | |||
Gross carrying value - Indefinite-lived intangible asset | 495,000,000 | ||
Accumulated impairment - Indefinite-lived intangible asset | 391,580,999 | ||
Net carrying value - Indefinite-lived intangible asset | 103,419,001 | 14,566,262 | |
Trademarks | |||
Intangible assets with finite lives: | |||
Gross carrying value - Finite-lived intangible assets | 41,435,000 | 41,435,000 | |
Less: Accumulated amortization | 11,918,554 | 7,298,266 | |
Less: Accumulated impairment | 20,305,606 | ||
Net carrying value - Finite-lived intangible assets | 9,210,840 | 1,297,320 | 34,136,734 |
Technology | |||
Intangible assets with finite lives: | |||
Gross carrying value - Finite-lived intangible assets | 4,200,000 | 4,200,000 | |
Less: Accumulated amortization | 1,890,000 | 1,470,000 | |
Net carrying value - Finite-lived intangible assets | 2,310,000 | 325,357 | 2,730,000 |
Network rights | |||
Intangible assets with finite lives: | |||
Gross carrying value - Finite-lived intangible assets | 210,755 | 210,755 | |
Less: Accumulated amortization | 209,550 | 209,550 | |
Net carrying value - Finite-lived intangible assets | 1,205 | 170 | 1,205 |
Purchased software | |||
Intangible assets with finite lives: | |||
Gross carrying value - Finite-lived intangible assets | 24,888,810 | 23,951,358 | |
Less: Accumulated amortization | 22,772,548 | 21,424,106 | |
Net carrying value - Finite-lived intangible assets | 2,116,262 | 298,069 | 2,527,252 |
Reacquired rights | |||
Intangible assets with finite lives: | |||
Gross carrying value - Finite-lived intangible assets | 2,531,418 | 2,531,418 | |
Less: Accumulated amortization | 1,868,033 | 1,685,904 | |
Net carrying value - Finite-lived intangible assets | 663,385 | $ 93,435 | 845,514 |
Others | |||
Intangible assets with finite lives: | |||
Gross carrying value - Finite-lived intangible assets | 435,185 | 435,185 | |
Less: Accumulated amortization | ¥ 435,185 | ¥ 435,185 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional information (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
GOODWILL | ||||
Amortization expense of intangible | ¥ 6,686,070 | $ 941,714 | ¥ 6,039,895 | ¥ 5,144,106 |
Impairment charges recognized | 16,027,000 | 2,257,356 | 18,892,000 | 14,047,000 |
Impairment of indefinite-lived intangible assets | ¥ 16,027,000 | $ 2,257,356 | ¥ 30,892,345 | ¥ 14,047,000 |
INTANGIBLE ASSETS, NET- Estimat
INTANGIBLE ASSETS, NET- Estimated aggregate amortization expense (Details) - Dec. 31, 2023 | CNY (¥) | USD ($) |
GOODWILL | ||
2024 | ¥ 5,134,456 | $ 723,173 |
2025 | 2,409,138 | 339,320 |
2026 | 1,977,189 | 278,481 |
2027 | 1,608,595 | 226,566 |
2028 | 1,200,812 | 169,131 |
Thereafter | ¥ 1,971,502 | $ 277,680 |
LEASES - Supplemental informati
LEASES - Supplemental information related to operating leases (Details) | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
LEASES | |||||
Operating lease right-of-use assets | ¥ 1,535,330,762 | ¥ 1,674,595,179 | $ 216,246,815 | ||
Operating lease liabilities, current | 267,536,846 | 272,700,888 | 37,681,777 | ||
Operating lease liabilities, non-current | 1,391,909,308 | 1,516,274,996 | 196,046,326 | ||
Total operating lease liabilities | 1,659,446,154 | 1,788,975,884 | $ 233,728,103 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 154,520,189 | $ 21,763,713 | ¥ 5,636,290 | ||
Weighted average remaining lease term (in years) | 9 years | 11 years | 9 years | ||
Weighted average discount rate | 4% | 5% | 4% | ||
Lease expense operating leases | ¥ 279,301,541 | $ 39,338,799 | ¥ 319,102,819 | ¥ 375,446,341 |
LEASES - Maturity of operating
LEASES - Maturity of operating lease liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Maturity of operating lease liabilities | |||
2024 | ¥ 275,660,096 | $ 38,825,913 | |
2025 | 205,917,308 | 29,002,846 | |
2026 | 180,402,897 | 25,409,217 | |
2027 | 161,971,532 | 22,813,213 | |
2028 | 142,867,512 | 20,122,468 | |
Thereafter | 983,318,006 | 138,497,445 | |
Total future lease payments | 1,950,137,351 | 274,671,102 | |
Less: imputed interest | 290,691,197 | 40,942,999 | |
Total operating lease liabilities | ¥ 1,659,446,154 | $ 233,728,103 | ¥ 1,788,975,884 |
GOODWILL - Schedule of changes
GOODWILL - Schedule of changes in carrying amount of goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Goodwill | |||
Balance as of January 1 (As adjusted) | ¥ 177,082,468 | ¥ 268,318,948 | |
Impairment (Note 4) | 0 | (91,236,480) | |
Balance as of December 31 | 177,082,468 | $ 24,941,544 | 177,082,468 |
Hotel Business | |||
Goodwill | |||
Balance as of January 1 (As adjusted) | 29,583,468 | 120,819,948 | |
Impairment (Note 4) | (91,236,480) | ||
Balance as of December 31 | 29,583,468 | 4,166,744 | 29,583,468 |
Restaurant Business | |||
Goodwill | |||
Balance as of January 1 (As adjusted) | 147,499,000 | 147,499,000 | |
Balance as of December 31 | ¥ 147,499,000 | $ 20,774,800 | ¥ 147,499,000 |
INVESTMENTS - Short-Term Invest
INVESTMENTS - Short-Term Investments (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
INVESTMENTS | |||
Wealth management products | ¥ 287,711,617 | $ 40,523,334 | ¥ 156,031,572 |
Time deposits | 130,000,000 | 18,310,117 | 30,000,000 |
Total | ¥ 417,711,617 | $ 58,833,451 | ¥ 186,031,572 |
INVESTMENTS - Investments in eq
INVESTMENTS - Investments in equity securities (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INVESTMENTS | ||||
Total net losses recognized | ¥ (15,344,616) | $ (2,161,244) | ¥ (2,622,450) | ¥ (9,195,509) |
Less: net realized (losses) gains on equity securities sold | 11,294,390 | (452,014) | ||
Net unrealized losses recognized on equity securities held | ¥ (15,344,616) | $ (2,161,244) | ¥ (13,916,840) | ¥ (8,743,495) |
INVESTMENTS - Long-Term Investm
INVESTMENTS - Long-Term Investments (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Long-term Investments [Line Item] | |||
Equity securities with readily determinable fair values | ¥ 38,324,789 | $ 5,397,934 | ¥ 27,408,447 |
Equity securities without readily determinable fair values | 9,826,143 | 1,383,984 | 9,826,143 |
Available-for-sale debt investment | 103,703,272 | 103,706,206 | |
Long-term Investments, Total | 184,758,800 | 26,022,733 | 176,854,460 |
Shanghai Wiselong Enterprise Management Co., Ltd. | |||
Schedule of Long-term Investments [Line Item] | |||
Equity method investments | 25,630,564 | 3,609,989 | 26,118,102 |
Others | |||
Schedule of Long-term Investments [Line Item] | |||
Equity method investments | 7,274,032 | 1,024,526 | 9,795,562 |
Yibon | |||
Schedule of Long-term Investments [Line Item] | |||
Available-for-sale debt investment | ¥ 103,703,272 | $ 14,606,300 | ¥ 103,706,206 |
INVESTMENTS - Fair value of unr
INVESTMENTS - Fair value of unrealized and realized gains and losses of equity securities with readily determinable fair values (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INVESTMENTS | ||||
Total net gains (losses) recognized | ¥ 9,966,512 | $ 1,403,754 | ¥ (15,126,672) | ¥ 15,623,340 |
Less: Net realized gains on equity securities sold | 14,058,448 | |||
Net unrealized gains (losses) recognized on equity securities held | ¥ 9,966,512 | $ 1,403,754 | ¥ (15,126,672) | ¥ 1,564,892 |
INVESTMENTS - Equity securities
INVESTMENTS - Equity securities without readily determinable fair values (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
INVESTMENTS | |||
Initial cost | ¥ 51,523,212 | $ 7,256,893 | ¥ 51,523,212 |
Cumulative unrealized gains | 302,931 | 42,667 | 302,931 |
Cumulative unrealized losses (including impairment) | (42,000,000) | (5,915,576) | (42,000,000) |
Total carrying value | ¥ 9,826,143 | $ 1,383,984 | ¥ 9,826,143 |
INVESTMENTS - Equity Securiti_2
INVESTMENTS - Equity Securities Without Readily Determinable Fair Values (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
INVESTMENTS | |||
Wealth management products | ¥ 287,711,617 | $ 40,523,334 | ¥ 156,031,572 |
Available-for-sale debt securities of Yibon | |||
Amortized cost | 103,701,474 | 103,701,474 | |
Gross unrecognized holding gains | 2,791,663 | 2,791,663 | |
Gross unrecognized holding losses | (2,789,865) | (2,786,931) | |
Available-for-sale debt investment, fair value | ¥ 103,703,272 | ¥ 103,706,206 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Impairment charges | ¥ 42,000,000 | $ 0 | |
Yibon | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Equity securities without readily determinable fair values, percentage | 30% |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | |
Other Assets [Line Items] | |||
Current | ¥ 115,762,697 | ¥ 117,047,122 | $ 16,485,741 |
Non-current | 119,764,831 | 104,725,600 | 14,750,292 |
Less: impairment provision | (192,305,859) | (193,714,980) | (27,284,184) |
Other general expenses | |||
Other Assets [Line Items] | |||
Provision | 192,305,859 | ||
Receivable from on-line payment platforms | |||
Other Assets [Line Items] | |||
Current | 30,037,799 | 39,540,599 | 5,569,177 |
Rental deposit | |||
Other Assets [Line Items] | |||
Non-current | 54,765,709 | 56,649,069 | 7,978,855 |
Interest receivable | |||
Other Assets [Line Items] | |||
Current | 4,944,657 | 13,666,330 | 1,924,862 |
Deposits | |||
Other Assets [Line Items] | |||
Current | 16,777,691 | 16,066,771 | 2,262,957 |
Advance to suppliers | |||
Other Assets [Line Items] | |||
Current | 9,168,211 | 12,190,988 | 1,717,065 |
Purchase and rental deposits for buildings | |||
Other Assets [Line Items] | |||
Non-current | 192,305,859 | 192,305,859 | 27,085,714 |
VAT recoverable | |||
Other Assets [Line Items] | |||
Current | 9,633,270 | 13,096,157 | 1,844,555 |
Non-current | 20,123,329 | 17,872,226 | 2,517,250 |
Others | |||
Other Assets [Line Items] | |||
Current | 45,201,069 | 22,486,277 | 3,167,125 |
Non-current | ¥ 44,875,793 | ¥ 31,613,426 | $ 4,452,657 |
BANK LOANS - Short-term bank lo
BANK LOANS - Short-term bank loans (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Nov. 30, 2023 CNY (¥) | Feb. 28, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Debt Instrument [Line Items] | ||||||
Short-term bank loans | ¥ 116,800,000 | $ 16,450,936 | ¥ 156,300,000 | |||
Weighted average interest rates | 3.85% | 3.85% | 4.09% | |||
Secured loan agreement with Shanghai Pudong Development Bank | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | ¥ 57,000,000 | ¥ 152,000,000 | ||||
Time deposits collateralized, short-term investments | ¥ 30,000,000 | |||||
Debt instrument, interest rate | 3.50% | 5% | ||||
Secured Loan Agreement With Shanghai pudong development bank, february 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Short-term bank loans | ¥ 116,800,000 | $ 16,450,936 | ||||
Principal amount of debt | ¥ 117,000,000 | |||||
Time deposits collateralized, short-term investments | ¥ 130,000,000 | |||||
Debt instrument, interest rate | 3.85% |
BANK LOANS - Long term bank loa
BANK LOANS - Long term bank loans (Details) | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Nov. 30, 2023 CNY (¥) | Feb. 28, 2023 CNY (¥) | |
Debt Instrument [Line Items] | ||||||
Repayment of bank loans | ¥ 458,300,000 | $ 64,550,205 | ¥ 605,500,000 | ¥ 315,300,000 | ||
Secured loan agreement with Shanghai Pudong Development Bank | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | 152,000,000 | ¥ 57,000,000 | ||||
Time deposits collateralized, long-term investments | ¥ 130,000,000 | |||||
Debt instrument, interest rate | 5% | 3.50% | ||||
Secured loan agreement with Bank of DaLian | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | ¥ 200,000,000 | |||||
Debt instrument, interest rate | 5% | |||||
Repayment of bank loans | 180,000,000 | 25,352,470 | ||||
Secured Loan Agreement With Shanghai pudong development bank, december 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of bank loans | 152,000,000 | $ 21,408,752 | ||||
Secured Loan Agreement With Shanghai pudong development bank, february 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | ¥ 117,000,000 | |||||
Debt instrument, interest rate | 3.85% | |||||
Secured Loan Agreement With Shanghai Pudong Development Bank, November 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Time deposits collateralized, long-term investments | ¥ 63,340,000 |
BANK LOANS - Schedule of Princi
BANK LOANS - Schedule of Principal Payments on Long-Term Borrowings (Details) - Dec. 31, 2023 | CNY (¥) | USD ($) |
Principal Payments on Long-Term Borrowings | ||
2024 | ¥ 200,000 | $ 28,169 |
2025 | 200,000 | 28,169 |
2026 | 56,600,000 | 7,971,944 |
Total | ¥ 57,000,000 | $ 8,028,282 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Payable to franchisees | ¥ 210,052,467 | $ 29,585,271 | ¥ 208,604,931 |
VAT and tax surcharges | 129,067,113 | 18,178,723 | 121,470,798 |
Construction payable | 22,211,219 | 3,128,385 | 15,587,528 |
Deposits payable | 24,759,270 | 3,487,270 | 20,162,737 |
Payable for business combination and asset acquisitions | 13,743,026 | 1,935,664 | 13,342,676 |
Others | 59,999,622 | 8,450,770 | 60,593,723 |
Total | ¥ 459,832,717 | $ 64,766,083 | ¥ 439,762,393 |
OTHER LONG-TERM LIABILITIES - D
OTHER LONG-TERM LIABILITIES - Deposits (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
OTHER LONG-TERM LIABILITIES | |||
Other long-term liabilities | ¥ 111,711,750 | $ 15,734,271 | ¥ 124,504,589 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Common Class A | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 39% |
Common Class B | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 61% |
Number of Class A ordinary shares that each share is convertible into | 1 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | ¥ 1,658,392,892 | |||
Net current-period other comprehensive gains (losses) | 669,178 | $ 94,252 | ¥ (14,148,803) | ¥ (3,705,740) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 1,480,033,495 | 208,458,358 | 1,658,392,892 | |
Foreign currency translation adjustments | ||||
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 27,727,372 | 39,089,244 | ||
Net current-period other comprehensive gains (losses) | 672,112 | (11,361,872) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 28,399,484 | 3,999,984 | 27,727,372 | 39,089,244 |
Unrealized gains(losses) on available-for-sale investments | ||||
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 4,732 | 2,791,663 | ||
Net current-period other comprehensive gains (losses) | (2,934) | (2,786,931) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 1,798 | 253 | 4,732 | 2,791,663 |
Total | ||||
OTHER COMPREHENSIVE LOSS | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 27,732,104 | 41,880,907 | ||
Net current-period other comprehensive gains (losses) | 669,178 | (14,148,803) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | ¥ 28,401,282 | $ 4,000,237 | ¥ 27,732,104 | ¥ 41,880,907 |
OPERATING COSTS - Schedule of O
OPERATING COSTS - Schedule of Operating Costs (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
OPERATING COSTS | ||||
Rental | ¥ 277,652,599 | $ 39,106,551 | ¥ 317,562,563 | ¥ 373,927,843 |
Utilities | 42,865,151 | 6,037,430 | 44,864,225 | 49,096,488 |
Personnel cost | 145,561,157 | 20,501,860 | 167,637,463 | 214,561,372 |
Depreciation and amortization expense | 92,987,860 | 13,097,066 | 104,582,040 | 99,017,155 |
Consumable, food and beverage | 54,360,427 | 7,656,506 | 32,443,116 | 84,387,597 |
Costs of hotel manager of franchised-and-managed hotels | 114,328,002 | 16,102,762 | 107,852,170 | 114,779,305 |
Material cost | 171,832,538 | 24,202,107 | 226,713,708 | 299,678,656 |
Other costs of franchised-and-managed hotels | 17,518,603 | 2,467,444 | 14,340,427 | 26,123,578 |
Others | 30,332,477 | 4,272,240 | 50,517,239 | 50,944,304 |
Total | ¥ 947,438,814 | $ 133,443,966 | ¥ 1,066,512,951 | ¥ 1,312,516,298 |
SHARE BASED COMPENSATION - Addi
SHARE BASED COMPENSATION - Additional Information (Details) - 2018 Share Incentive Plan | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2018 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 CNY (¥) $ / shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 CNY (¥) $ / shares | Dec. 31, 2023 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Maximum life of option | 6 years | |||||||
Number of stock options granted | 10,000 | |||||||
Cash used to settle related share-based compensation | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | |||||
Weighted-average grant date fair value | $ / shares | $ 1.34 | $ 2.42 | ||||||
Aggregate grant date fair value of the outstanding options | 36,103,497 | 35,706,209 | $ 35,706,209 | 34,994,421 | $ 34,994,421 | $ 5,085,071 | ||
Fair value of share options vested | 9,145,095 | $ 1,288,060 | 8,998,734 | 8,319,569 | ||||
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 | ¥ 62,650 | $ 8,824 | ¥ 2,464,763 | |||||
Share-based compensation expense reversed | ¥ | ¥ 62,356 | |||||||
Number of stock options granted | 0 | 0 |
SHARE BASED COMPENSATION - Sche
SHARE BASED COMPENSATION - Schedule of Assumptions Used to Estimate Fair Value of Share Options (Details) - 2018 Share Incentive Plan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.35% | 0.92% |
Volatility | 39% | 40% |
Dividend yield | 2.50% | 2.50% |
Expected Life | 6 years | 6 years |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of Share Option Activity Under Option Plans (Details) - 2018 Share Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, Beginning balance | 940,500 | 992,500 | |
Number of options, Granted | 10,000 | ||
Number of options, Forfeited | (15,500) | (62,000) | |
Number of options, Ending balance | 925,000 | 940,500 | 992,500 |
Number of options, Vested and expected to vest | 925,000 | ||
Number of options, Exercisable | 914,250 | ||
Weighted average exercise price, Beginning balance | $ 12.26 | $ 12.27 | |
Weighted average exercise price, Granted | 14 | ||
Weighted average exercise price, Forfeited | 12.52 | 12.84 | |
Weighted average exercise price, Ending balance | 12.25 | $ 12.26 | $ 12.27 |
Weighted average exercise price, Vested and expected to vest | 12.25 | ||
Weighted average exercise price, Exercisable | $ 12.22 | ||
Weighted average remaining contractual life, Outstanding | 2 months 4 days | 1 year 2 months 4 days | 2 years 1 month 20 days |
Weighted average remaining contractual life, Granted | 6 years | ||
Weighted average remaining contractual life, Vested and expected to vest | 2 months 4 days | ||
Weighted average remaining contractual life, Exercisable | 2 months 4 days |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 USD ($) | |
Income Taxes [Line Items] | |||||
Statutory tax rate | 25% | 25% | 25% | 25% | |
Preferential income tax rate | 15% | 15% | |||
Tax loss carryforwards | ¥ 624,015,512 | $ 87,890,747 | |||
Withholding income tax on dividends distributed to holding company outside of China | 10% | 10% | |||
Withholding tax liability unrecognized | ¥ 62,512,488 | 8,804,700 | |||
Amount of interest expenses reversed due to lapse of statute of limitation | ¥ 29,836,683 | $ 4,202,409 | |||
Inland Revenue, Hong Kong | |||||
Income Taxes [Line Items] | |||||
Statutory tax rate | 16.50% | 16.50% | |||
PRC Subsidiaries | |||||
Income Taxes [Line Items] | |||||
Undistributed earnings of Groups PRC subsidiaries | ¥ 625,124,881 | 88,046,998 | |||
Uncertain tax positions | 278,696,225 | 39,253,542 | |||
Interest expense | 36,687,692 | $ 5,167,353 | |||
Accumulated interest expense | 111,237,228 | $ 15,667,436 | |||
Accumulated tax penalty recorded | ¥ 0 |
INCOME TAXES - Income (loss) be
INCOME TAXES - Income (loss) before income taxes and share of losses in equity method investments (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INCOME TAXES | ||||
Mainland China | ¥ 351,791,690 | $ 49,548,823 | ¥ (301,862,814) | ¥ 198,215,455 |
Others | 28,580,168 | 4,025,431 | (202,301,240) | (2,739,212) |
Total | ¥ 380,371,858 | $ 53,574,254 | ¥ (504,164,054) | ¥ 195,476,243 |
INCOME TAXES - Summary of Curre
INCOME TAXES - Summary of Current and Deferred Components of Income Tax Expense (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Current tax | ¥ 120,875,594 | $ 17,024,971 | ¥ 86,534,248 | ¥ 112,009,150 |
Deferred tax | (2,423,339) | (341,320) | (130,607,150) | 278,081 |
Total | ¥ 118,452,255 | $ 16,683,651 | ¥ (44,072,902) | ¥ 112,287,231 |
INCOME TAXES - Reconciliation B
INCOME TAXES - Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
PRC statutory tax rate | 25% | 25% | 25% |
Withholding tax on the PRC earnings distribution | 3% | 9% | 11% |
Effect of international rate difference | (2.00%) | (9.00%) | 1% |
Effect of preferential tax rate | (1.00%) | 0% | (8.00%) |
FIN48 accrual and reversal | 7% | (4.00%) | 18% |
Valuation Allowance | 3% | (10.00%) | 19% |
Tax effect of expenses that are not deductible in determining taxable profit | (4.00%) | (2.00%) | (9.00%) |
Effective tax rate | 31% | 9% | 57% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | ¥ 156,003,878 | $ 21,972,687 | ¥ 148,078,332 |
Lease liabilities | 417,112,367 | 58,749,048 | 447,847,914 |
Bad debt expenses | 89,464,616 | 12,600,828 | 79,889,329 |
Deferred revenue | 83,228,802 | 11,722,532 | 92,320,709 |
Impairment of Long-lived assets and other assets | 65,542,792 | 9,231,509 | 58,292,381 |
Accrued expenses | 19,373,529 | 2,728,705 | 19,923,623 |
Unrealized losses from equity securities | 1,342,225 | 189,048 | 717,944 |
Outside basis difference | 5,759,144 | ||
Valuation allowance | (192,143,009) | (27,062,777) | (180,469,287) |
Total deferred tax assets | 639,925,200 | 90,131,580 | 672,360,089 |
Deferred tax liabilities: | |||
Depreciation of property and equipment | (2,479,000) | (349,160) | (10,504,158) |
Unrealized gains from equity securities | (1,939,227) | (273,134) | (5,360,418) |
Intangible assets arising from acquisition | (75,820,498) | (10,679,094) | (82,416,163) |
Withholding tax on PRC earnings to be distributed | (30,504,731) | (4,296,502) | (20,730,212) |
Right-of-use assets | (381,932,879) | (53,794,121) | (414,067,632) |
Total deferred tax liabilities | ¥ (492,676,335) | $ (69,392,011) | ¥ (533,078,583) |
INCOME TAXES - Summary of Unrec
INCOME TAXES - Summary of Unrecognized Tax Benefit (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
Unrecognized tax benefits beginning balance | ¥ 257,300,164 | ¥ 249,553,169 |
Increases - tax positions in the current period | 61,493,198 | 27,552,369 |
Decreases - tax positions in prior period | (40,097,137) | (19,805,374) |
Unrecognized tax benefits - ending balance | ¥ 278,696,225 | ¥ 257,300,164 |
MAINLAND CHINA CONTRIBUTION P_2
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | ||||
Employee benefits | ¥ 54,737,023 | $ 7,709,548 | ¥ 63,954,002 | ¥ 59,058,712 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS - Additional Information (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |||
Statutory reserve funds | ¥ 152,416,879 | $ 21,467,468 | ¥ 150,208,980 |
Restricted net assets | ¥ 901,492,604 | $ 126,972,578 | ¥ 898,596,672 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Schedule of Related Party Transactions or Balances with the Group (Details) - Related party | 12 Months Ended |
Dec. 31, 2023 | |
Alex S. Xu | |
Related Party Transaction | |
Related Party | Alex S. Xu |
Nature of the party | Individual |
Relationship with the Group | Founder and CEO |
Hui Xu | |
Related Party Transaction | |
Related Party | Hui Xu |
Nature of the party | Individual |
Relationship with the Group | Brother of Alex S. Xu |
Yan Zhang | |
Related Party Transaction | |
Related Party | Yan Zhang |
Nature of the party | Individual |
Relationship with the Group | Executive officer for catering management entities controlled by GTI |
Wen Qi | |
Related Party Transaction | |
Related Party | Wen Qi |
Nature of the party | Individual |
Relationship with the Group | Quality Control Manager |
GTI | |
Related Party Transaction | |
Related Party | GTI |
Nature of the party | Investment holding |
Relationship with the Group | Shareholder of the Group, controlled by Alex S. Xu |
Aotao | |
Related Party Transaction | |
Related Party | Aotao |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by GTI |
Getao | |
Related Party Transaction | |
Related Party | Getao Industrial (HK) Limited. (“Getao”) |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by GTI |
Shiquanmeiwei | |
Related Party Transaction | |
Related Party | Shiquanmeiwei (Beijing) Catering and Management Co., Ltd. (“Shiquanmeiwei”) |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by GTI |
Beifu HK | |
Related Party Transaction | |
Related Party | Beifu HK |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by GTI |
Napa | |
Related Party Transaction | |
Related Party | Napa Infinity Winery (Shanghai) Inc. (“Napa”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Yibon | |
Related Party Transaction | |
Related Party | Yibon |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Hanyuan | |
Related Party Transaction | |
Related Party | Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) * |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Woyaojiu | |
Related Party Transaction | |
Related Party | Woyaojiu Information Technology (Shanghai) Co.,Ltd. (“Woyaojiu”) |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by Hui Xu |
Yueyuan | |
Related Party Transaction | |
Related Party | Shanxi Yueyuanbaili Hotel Management Co., Ltd. (“Yueyuan”) |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Apex | |
Related Party Transaction | |
Related Party | Apex(Weihai) Industrial Co., Ltd. (“Apex”) |
Nature of the party | Construction |
Relationship with the Group | Controlled by Hui Xu |
Geweimei | |
Related Party Transaction | |
Related Party | Geweimei Biotechnology (Wuxi) Co., Ltd. (“Geweimei”) |
Nature of the party | Food manufacturing |
Relationship with the Group | Controlled by GTI |
Gelu | |
Related Party Transaction | |
Related Party | Gelu (Shanghai) Catering Management Co., Ltd. (“Gelu”) |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by GTI |
Geyi | |
Related Party Transaction | |
Related Party | Shanghai Geyi Catering Management Co., Ltd. (“Geyi”) |
Nature of the party | Restaurant management |
Relationship with the Group | Controlled by GTI |
Xiaoyi | |
Related Party Transaction | |
Related Party | Shanghai Xiaoyi Health Services Co., Ltd. (“Xiaoyi”) |
Nature of the party | Care service provider |
Relationship with the Group | Controlled by GTI |
Xiangcai | |
Related Party Transaction | |
Related Party | Shanghai Xiangcai Catering Management Co., Ltd. (“Xiangcai”) |
Nature of the party | Restaurant management |
Relationship with the Group | Equity investee of the Group |
Wiselong | |
Related Party Transaction | |
Related Party | Wiselong |
Nature of the party | IT consulting |
Relationship with the Group | Equity investee of the Group |
JYHM | |
Related Party Transaction | |
Related Party | Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) |
Nature of the party | Restaurant Management |
Relationship with the Group | Previously controlled by GTI, and disposed by GTI during 2022 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Schedule of Related Party Balances (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Related Party Transaction | |||
Amounts due from a related party | $ 2,806,910 | ¥ 19,928,781 | ¥ 425,741,077 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related party | Related party | Related party |
Due from related parties - noncurrent | $ 15,493,176 | ¥ 110,000,000 | ¥ 112,360,000 |
Amounts due to related parties | $ 2,297,257 | ¥ 16,310,293 | ¥ 21,717,203 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related party | Related party | Related party |
Related party | |||
Related Party Transaction | |||
Less: provision | $ (74,925) | ¥ (531,961) | |
Yibon | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 1,031,176 | 7,321,246 | ¥ 7,039,315 |
Amounts due to related parties | 7,238,237 | ||
Hanyuan | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 948,320 | 6,732,977 | 6,643,508 |
Wen Qi | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 332,399 | 2,360,000 | |
Qiwen | Related party | |||
Related Party Transaction | |||
Due from related parties - noncurrent | 2,360,000 | ||
Yueyuan | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 96,912 | 688,064 | 608,394 |
Aotao | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 19,869 | 141,069 | 45,174,828 |
Amounts due to related parties | 1,783,204 | 12,660,573 | 12,808,201 |
Others | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 453,159 | 3,217,386 | 11,556,512 |
Amounts due to related parties | 514,053 | 3,649,720 | 1,670,765 |
GTI | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 326,440,000 | ||
Beifu HK | Related party | |||
Related Party Transaction | |||
Amounts due from related parties | 28,278,520 | ||
Apex | Related party | |||
Related Party Transaction | |||
Due from related parties - noncurrent | $ 15,493,176 | ¥ 110,000,000 | ¥ 110,000,000 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) | Dec. 31, 2021 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Mar. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Related Party Transaction | ||||||
Amounts due from related parties | $ 2,806,910 | ¥ 19,928,781 | ¥ 425,741,077 | |||
Hanyuan | ||||||
Related Party Transaction | ||||||
Percentage of equity interests disposed | 5% | |||||
Hanyuan | Related party | ||||||
Related Party Transaction | ||||||
Amounts due from related parties | $ 948,320 | 6,732,977 | 6,643,508 | |||
GTI | Related party | ||||||
Related Party Transaction | ||||||
Amounts due from related parties | 326,440,000 | |||||
GTI | Da Niang Dumpling Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Related Party Transaction | ||||||
Percentage of equity interests disposed | 100% | |||||
GTI | Bellagio Cafe Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Related Party Transaction | ||||||
Percentage of equity interests disposed | 83.90% | |||||
Yibon | ||||||
Related Party Transaction | ||||||
Interest rate percentage | 6% | |||||
Yibon | Related party | ||||||
Related Party Transaction | ||||||
Amounts due from related parties | $ 1,031,176 | 7,321,246 | ¥ 7,039,315 | |||
Wen Qi | ||||||
Related Party Transaction | ||||||
Interest rate percentage | 7.90% | |||||
Wen Qi | Related party | ||||||
Related Party Transaction | ||||||
Amounts due from related parties | $ 332,399 | ¥ 2,360,000 | ||||
GTI, Aotao And Beifu HK | Related party | ||||||
Related Party Transaction | ||||||
Amounts due from related parties | $ 56,310,652 | ¥ 399,800,000 |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND BALANCES - Schedule of Related Party Transactions (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Related Party Transaction | ||||
Loans to related parties | ¥ (168,695,802) | ¥ (564,818,942) | ||
Repayment from related parties | 43,555,000 | 268,133,500 | ||
Interest income | ¥ 41,371,162 | $ 5,827,006 | 48,105,125 | 60,659,015 |
Service provided by related parties | (14,044) | (1,978) | (5,770,739) | (7,208,533) |
Goods purchased from related parties | (2,837,072) | (399,593) | (692,797) | (3,601,778) |
Service provided to related parties | 2,604,417 | 366,824 | 1,397,915 | 1,583,446 |
Goods sold to related parties | 23,787 | 3,350 | 756,899 | |
GTI | ||||
Related Party Transaction | ||||
Loans to related parties | (162,490,000) | (206,256,382) | ||
Repayment from related parties | 42,305,000 | |||
Hanyuan | ||||
Related Party Transaction | ||||
Loans to related parties | (3,237,408) | |||
Qiwen | ||||
Related Party Transaction | ||||
Loans to related parties | (2,360,000) | |||
Yueyuan | ||||
Related Party Transaction | ||||
Loans to related parties | (608,394) | |||
Yibon | ||||
Related Party Transaction | ||||
Loans to related parties | (3,000,000) | |||
Repayment from related parties | 1,250,000 | 3,750,000 | ||
Interest income | ¥ 465,500 | $ 65,564 | ¥ 12,333 | 544,352 |
Aotao | ||||
Related Party Transaction | ||||
Loans to related parties | (186,051,400) | |||
Repayment from related parties | 121,000,000 | |||
Beifu HK | ||||
Related Party Transaction | ||||
Loans to related parties | (169,511,160) | |||
Repayment from related parties | ¥ 143,383,500 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic and Diluted Earning Per Share (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net income(loss) - basic | ¥ 269,316,308 | $ 37,932,408 | ¥ (425,153,181) | ¥ 88,706,756 |
Net income(loss) - diluted | ¥ 269,316,308 | $ 37,932,408 | ¥ (425,153,181) | ¥ 88,706,756 |
Common Class A | ||||
Denominator: | ||||
Weighted average shares outstanding basic | 67,321,003 | 67,321,003 | 68,201,056 | 68,286,954 |
Weighted average shares outstanding diluted | 67,321,003 | 67,321,003 | 68,201,056 | 68,286,954 |
Allocation of undistributed earnings(loss) - basic and diluted: | ||||
Allocation of undistributed earnings(loss) - basic | ¥ 177,605,302 | $ 25,015,184 | ¥ (281,612,076) | ¥ 58,782,360 |
Allocation of undistributed earnings(loss) - diluted | ¥ 177,605,302 | $ 25,015,184 | ¥ (281,612,076) | ¥ 58,782,360 |
Basic and diluted earnings(loss) per share: | ||||
Basic earnings (loss) per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Diluted earnings (loss per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Common Class B | ||||
Denominator: | ||||
Weighted average shares outstanding basic | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Weighted average shares outstanding diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Allocation of undistributed earnings(loss) - basic and diluted: | ||||
Allocation of undistributed earnings(loss) - basic | ¥ 91,711,006 | $ 12,917,224 | ¥ (143,541,105) | ¥ 29,924,396 |
Allocation of undistributed earnings(loss) - diluted | ¥ 91,711,006 | $ 12,917,224 | ¥ (143,541,105) | ¥ 29,924,396 |
Basic and diluted earnings(loss) per share: | ||||
Basic earnings (loss) per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
Diluted earnings (loss per share | (per share) | ¥ 2.64 | $ 0.37 | ¥ (4.13) | ¥ 0.86 |
EARNINGS (LOSS) PER SHARE - Add
EARNINGS (LOSS) PER SHARE - Additional Information (Details) - Common Class A - shares | 1 Months Ended | ||
Dec. 31, 2023 | Oct. 31, 2023 | Nov. 30, 2022 | |
Earnings Per Share | |||
Share repurchase of Urban (in shares) | 81,276 | 554,158 | |
Urban | |||
Earnings Per Share | |||
Share repurchase of Urban (in shares) | 870,908 |
SEGMENT REPORT - Group's operat
SEGMENT REPORT - Group's operating segment (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
SEGMENT REPORT | ||||
Operating segments | segment | 2 | 2 | ||
Total revenues | ¥ 1,627,257,689 | $ 229,194,451 | ¥ 1,469,074,275 | ¥ 1,967,815,019 |
Total operating costs and expenses | (1,318,778,664) | (185,746,091) | (1,979,597,253) | (1,868,613,428) |
Income (loss) from operations | 335,648,926 | 47,275,161 | (486,529,830) | 129,199,824 |
Income (loss) before income taxes and share of losses in equity method investments | 380,371,858 | 53,574,254 | (504,164,054) | 195,476,243 |
Net income (loss) | 260,527,601 | 36,694,544 | (461,689,453) | 83,571,886 |
Eliminations | ||||
SEGMENT REPORT | ||||
Total revenues | (6,284,350) | (885,132) | (1,514,259) | (3,516,750) |
Total operating costs and expenses | 10,471,447 | 1,474,872 | (184,330) | 1,028,243 |
Income (loss) from operations | 4,187,097 | 589,740 | (1,698,589) | (2,488,507) |
Income (loss) before income taxes and share of losses in equity method investments | 4,187,097 | 589,740 | (1,698,589) | (2,488,507) |
Net income (loss) | 3,140,323 | 442,305 | (1,273,942) | (1,866,380) |
Hotel Business | Operating Segments | ||||
SEGMENT REPORT | ||||
Total revenues | 1,191,906,073 | 167,876,459 | 936,801,282 | 1,206,145,958 |
Total operating costs and expenses | (881,148,053) | (124,107,108) | (1,399,392,154) | (1,079,282,513) |
Income (loss) from operations | 335,283,353 | 47,223,672 | (443,141,983) | 153,923,380 |
Income (loss) before income taxes and share of losses in equity method investments | 380,115,748 | 53,538,182 | (459,060,589) | 222,182,847 |
Net income (loss) | 265,598,004 | 37,408,695 | (415,066,472) | 113,676,839 |
Restaurant Business | Operating Segments | ||||
SEGMENT REPORT | ||||
Total revenues | 441,635,966 | 62,203,124 | 533,787,252 | 765,185,811 |
Total operating costs and expenses | (448,102,058) | (63,113,855) | (580,020,769) | (790,359,158) |
Income (loss) from operations | (3,821,524) | (538,251) | (41,689,258) | (22,235,049) |
Income (loss) before income taxes and share of losses in equity method investments | (3,930,987) | (553,668) | (43,404,876) | (24,218,097) |
Net income (loss) | ¥ (8,210,726) | $ (1,156,456) | (45,349,039) | (28,238,573) |
Hotel business | Operating Segments | ||||
SEGMENT REPORT | ||||
Income (loss) from operations | (443,141,983) | 153,923,380 | ||
Income (loss) before income taxes and share of losses in equity method investments | (459,060,589) | 222,182,847 | ||
Net income (loss) | (415,066,472) | 113,676,839 | ||
Restaurant Business | Operating Segments | ||||
SEGMENT REPORT | ||||
Income (loss) from operations | (43,387,847) | (24,723,556) | ||
Income (loss) before income taxes and share of losses in equity method investments | (45,103,465) | (26,706,604) | ||
Net income (loss) | ¥ (46,622,981) | ¥ (30,104,953) |
SEGMENT REPORT - Group's revenu
SEGMENT REPORT - Group's revenues disaggregated (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
SEGMENT REPORT | ||||
Revenues | ¥ 1,627,257,689 | $ 229,194,451 | ¥ 1,469,074,275 | ¥ 1,967,815,019 |
Franchise and managed hotels revenues | ||||
SEGMENT REPORT | ||||
Revenues | 705,244,948 | 99,331,673 | 588,463,368 | 782,572,078 |
Wholesale and others | ||||
SEGMENT REPORT | ||||
Revenues | 134,198,399 | 18,901,449 | 180,588,258 | 221,515,742 |
Inter-segment | ||||
SEGMENT REPORT | ||||
Revenues | (6,284,350) | (885,132) | (1,514,259) | (3,516,750) |
Hotel Business | Operating Segments | ||||
SEGMENT REPORT | ||||
Revenues | 1,191,906,073 | 167,876,459 | 936,801,282 | 1,206,145,958 |
Hotel Business | Operating Segments | Leased And Operated Hotels | ||||
SEGMENT REPORT | ||||
Revenues | 490,924,060 | 69,145,208 | 338,506,220 | 391,960,031 |
Hotel Business | Operating Segments | Franchise and managed hotels revenues | ||||
SEGMENT REPORT | ||||
Revenues | 696,321,236 | 98,074,795 | 582,441,077 | 774,359,348 |
Hotel Business | Operating Segments | Wholesale and others | ||||
SEGMENT REPORT | ||||
Revenues | 4,660,777 | 656,456 | 15,853,985 | 39,826,579 |
Restaurant Business | Operating Segments | ||||
SEGMENT REPORT | ||||
Revenues | 441,635,966 | 62,203,124 | 533,787,252 | 765,185,811 |
Restaurant Business | Operating Segments | Leased And Operated Hotels | ||||
SEGMENT REPORT | ||||
Revenues | 296,890,282 | 41,816,122 | 362,806,697 | 575,062,530 |
Restaurant Business | Operating Segments | Franchise and managed hotels revenues | ||||
SEGMENT REPORT | ||||
Revenues | 8,923,712 | 1,256,879 | 6,022,291 | 8,212,730 |
Restaurant Business | Operating Segments | Wholesale and others | ||||
SEGMENT REPORT | ||||
Revenues | ¥ 135,821,972 | $ 19,130,123 | ¥ 164,958,264 | ¥ 181,910,551 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 765,547,547 | $ 107,825,117 | ¥ 699,244,375 | ¥ 330,198,744 |
Investments in equity securities | 26,076,169 | 3,672,752 | 41,361,346 | |
Amounts due from a related party | 19,928,781 | 2,806,910 | 425,741,077 | |
Other current assets | 117,047,122 | 16,485,741 | 115,762,697 | |
Total current assets | 1,626,759,605 | 229,124,298 | 1,814,583,652 | |
Non-current assets: | ||||
TOTAL ASSETS | 5,066,798,878 | 713,643,696 | 5,683,895,279 | |
Current liabilities: | ||||
Short-term bank loans | 116,800,000 | 16,450,936 | 156,300,000 | |
Long-term bank loans, current portion | 200,000 | 28,169 | 141,800,000 | |
Amounts due to related parties | ¥ 16,310,293 | $ 2,297,257 | ¥ 21,717,203 | |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | |
Total current liabilities | ¥ 1,341,596,276 | $ 188,959,883 | ¥ 1,544,078,776 | |
Non-current liabilities: | ||||
Long-term bank loans, non-current portion | 56,800,000 | 8,000,113 | 160,000,000 | |
Other long-term liabilities | 111,711,750 | 15,734,271 | 124,504,589 | |
Total liabilities | 3,586,765,383 | 505,185,338 | 4,025,502,387 | |
Shareholders' equity: | ||||
Treasury Stock | 36,677,832 | 5,165,965 | 16,971,057 | |
Additional paid-in capital | 1,680,713,349 | 236,723,524 | 2,080,450,699 | |
Retained earnings / (Accumulated losses) | (568,339,799) | (80,048,986) | (817,544,056) | |
Accumulated other comprehensive income | 28,401,282 | 4,000,237 | 27,732,104 | |
Total GreenTree Hospitality Group Ltd.'s shareholders' equity | 1,442,218,280 | 203,132,196 | 1,611,788,970 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,066,798,878 | 713,643,696 | 5,683,895,279 | |
Common Class A | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 222,587,070 | 31,350,733 | 222,587,070 | |
Common Class B | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 115,534,210 | 16,272,653 | 115,534,210 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 13,423,750 | 1,890,696 | 15,788,863 | |
Investments in equity securities | 978,841 | 137,867 | 3,094,133 | |
Other current assets | 321,495 | 45,282 | ||
Total current assets | 140,685,055 | 19,815,076 | 489,267,798 | |
Non-current assets: | ||||
Investments in subsidiaries | 2,179,129,452 | 306,923,964 | 1,803,139,078 | |
Investments in equity securities | 44,324,789 | 6,243,016 | 33,408,446 | |
TOTAL ASSETS | 2,364,139,296 | 332,982,056 | 2,325,815,322 | |
Current liabilities: | ||||
Short-term bank loans | 116,800,000 | 16,450,936 | ||
Long-term bank loans, current portion | 200,000 | 28,169 | 121,800,000 | |
Amounts due to related parties | ¥ 748,121,016 | $ 105,370,642 | ¥ 592,226,352 | |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Subsidiaries | Subsidiaries | Subsidiaries | |
Total current liabilities | ¥ 865,121,016 | $ 121,849,747 | ¥ 714,026,352 | |
Non-current liabilities: | ||||
Long-term bank loans, non-current portion | 56,800,000 | 8,000,113 | ||
Total liabilities | 921,921,016 | 129,849,860 | 714,026,352 | |
Shareholders' equity: | ||||
Treasury Stock | (36,677,832) | (5,165,965) | (16,971,057) | |
Additional paid-in capital | 1,680,713,349 | 236,723,524 | 2,080,450,699 | |
Retained earnings / (Accumulated losses) | (568,339,799) | (80,048,986) | (817,544,056) | |
Accumulated other comprehensive income | 28,401,282 | 4,000,237 | 27,732,104 | |
Total GreenTree Hospitality Group Ltd.'s shareholders' equity | 1,442,218,280 | 203,132,196 | 1,611,788,970 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,364,139,296 | 332,982,056 | 2,325,815,322 | |
Parent Company | Common Class A | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 222,587,070 | 31,350,733 | 222,587,070 | |
Parent Company | Common Class B | ||||
Shareholders' equity: | ||||
Ordinary shares, value | 115,534,210 | 16,272,653 | 115,534,210 | |
Parent Company | Subsidiaries | ||||
Current assets | ||||
Amounts due from a related party | ¥ 125,960,969 | $ 17,741,231 | 122,364,821 | |
Parent Company | Related party | ||||
Current assets | ||||
Amounts due from a related party | ¥ 348,019,981 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common Class A | ||
Common stock, par value | $ 0.50 | |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 66,780,612 | 67,416,046 |
Common stock, outstanding | 66,780,612 | 67,416,046 |
Common Class B | ||
Common stock, par value | $ 0.50 | |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 34,762,909 | 34,762,909 |
Common stock, outstanding | 34,762,909 | 34,762,909 |
Parent Company | Common Class A | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 67,416,046 | 66,780,612 |
Common stock, outstanding | 67,416,046 | 66,780,612 |
Parent Company | Common Class B | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 34,762,909 | 34,762,909 |
Common stock, outstanding | 34,762,909 | 34,762,909 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed statements of operations | ||||
General and administrative expenses | ¥ (208,433,678) | $ (29,357,270) | ¥ (259,513,862) | ¥ (318,971,686) |
Other general expenses | (79,583,586) | (11,209,114) | (485,427,163) | (120,179,989) |
Interest income | 41,371,162 | 5,827,006 | 48,105,125 | 60,659,015 |
Interest expense | (14,053,841) | (1,979,442) | (27,987,842) | (15,303,462) |
Other income, net | 22,783,715 | 3,209,019 | 24,404,728 | 11,750,278 |
Share of profit (losses) in subsidiaries, net (Note a) | (1,392,002) | (196,059) | (1,598,301) | 382,874 |
Net income (loss) | 260,527,601 | 36,694,544 | (461,689,453) | 83,571,886 |
-Foreign currency translation adjustments | 672,112 | 94,665 | (11,361,872) | (6,497,403) |
Comprehensive income(loss) attributable to ordinary shareholders | 269,985,486 | 38,026,660 | (439,301,984) | 85,001,016 |
Parent Company | ||||
Condensed statements of operations | ||||
General and administrative expenses | (6,637,389) | (934,857) | (6,740,255) | (18,917,120) |
Other general expenses | (13,944,926) | |||
Interest income | 15,128 | 2,131 | 1,924 | 173,316 |
Interest expense | (4,723,335) | (665,268) | (5,192,054) | |
Other income, net | 19,969,182 | 2,812,600 | 22,765,816 | |
Gains(losses) on investments in equity securities | 7,927,075 | 1,116,505 | (76,105,482) | 11,519,174 |
Share of profit (losses) in subsidiaries, net (Note a) | 252,765,647 | 35,601,297 | (345,938,204) | 95,931,386 |
Net income (loss) | 269,316,308 | 37,932,408 | (425,153,181) | 88,706,756 |
-Foreign currency translation adjustments | 672,112 | 94,665 | (11,361,872) | (3,705,740) |
-Unrealized gains (losses) on available-for-sale investments | (2,934) | (413) | (2,786,931) | |
Comprehensive income(loss) attributable to ordinary shareholders | ¥ 269,985,486 | $ 38,026,660 | ¥ (439,301,984) | ¥ 85,001,016 |
PARENT COMPANY ONLY CONDENSED_6
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Net cash provided by (used in) operating activities | ¥ 455,049,575 | $ 64,092,392 | ¥ 294,541,463 | ¥ 379,248,861 |
Net cash used in investing activities | (93,708,405) | (13,198,553) | 420,445,695 | (978,048,290) |
Net cash used in provided by financing activities | (303,734,275) | (42,780,078) | (335,396,159) | 240,327,743 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 57,638,981 | 8,118,281 | 380,839,138 | (359,884,160) |
Cash and cash equivalents and restricted cash at the beginning of the year | 733,961,731 | 103,376,348 | 353,122,593 | 713,006,753 |
Cash and cash equivalents and restricted cash at the end of the year | 791,600,712 | 111,494,629 | 733,961,731 | 353,122,593 |
Parent Company | ||||
Net cash provided by (used in) operating activities | (12,424,134) | (1,749,903) | (4,198,307) | (13,786,532) |
Net cash used in investing activities | (352,234,205) | (49,611,150) | (156,276,810) | (113,026,343) |
Net cash used in provided by financing activities | 362,690,064 | 51,083,827 | 155,679,057 | (46,235,224) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (396,838) | (55,893) | (2,025,056) | 2,306,901 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (2,365,113) | (333,119) | (6,821,116) | (170,741,198) |
Cash and cash equivalents and restricted cash at the beginning of the year | 15,788,863 | 2,223,815 | 22,609,979 | 193,351,177 |
Cash and cash equivalents and restricted cash at the end of the year | ¥ 13,423,750 | $ 1,890,696 | ¥ 15,788,863 | ¥ 22,609,979 |