Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38425 |
Entity Registrant Name | GreenTree Hospitality Group Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 2451 Hongqiao Road |
Entity Address, Address Line Two | Changning District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200335 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Entity Ex Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1408 |
Auditor Location | Shanghai, the People’s Republic of China |
Entity Central Index Key | 0001724755 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 2451 Hongqiao Road |
Entity Address, Address Line Two | Changning District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200335 |
Contact Personnel Name | Dr. Yiping Yang |
Country Region | 86 |
City Area Code | 21 |
Local Phone Number | 3617-4886 |
Common Class A | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.50 per share * |
Entity Common Stock, Shares Outstanding | 68,286,954 |
No Trading Symbol Flag | true |
Common Class B | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 34,762,909 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing one Class A ordinary share |
Trading Symbol | GHG |
Security Exchange Name | NYSE |
STATEMENTS OF CONSOLIDATED BALA
STATEMENTS OF CONSOLIDATED BALANCE SHEETS | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 298,428,709 | $ 46,829,977 | ¥ 611,358,209 |
Restricted cash | 3,300,000 | 517,842 | |
Short-term investments | 557,458,675 | 87,477,431 | 301,983,182 |
Investments in equity securities | 157,988,851 | 24,791,898 | 242,378,696 |
Accounts receivable, net of allowance for doubtful accounts of RMB12,489,562 and RMB3,429,201 (USD538,1176) as of December 31, 2020 and 2021 respectively | 95,589,936 | 15,000,147 | 101,511,057 |
Amounts due from related parties | 310,419,860 | 48,711,650 | 9,770,871 |
Prepaid rent | 15,454,967 | 2,425,222 | 13,597,867 |
Inventories | 2,297,584 | 360,541 | 3,804,680 |
Other current assets | 142,737,163 | 22,398,576 | 77,649,794 |
Loans receivable, net | 247,530,580 | 38,842,950 | 222,244,629 |
Total current assets | 1,831,206,325 | 287,356,234 | 1,584,298,985 |
Restricted cash | 18,869,900 | 2,961,099 | 22,369,900 |
Long-term time deposits | 160,000,000 | 25,107,491 | 490,000,000 |
Loans receivable, net | 290,967,680 | 45,659,178 | 145,703,988 |
Property and equipment, net | 1,045,356,265 | 164,039,209 | 668,605,661 |
Intangible assets, net | 520,117,479 | 81,617,782 | 491,513,073 |
Goodwill | 120,819,948 | 18,959,286 | 100,231,487 |
Long-term investments | 188,790,785 | 29,625,394 | 369,525,917 |
Other assets | 329,366,340 | 51,684,766 | 66,635,394 |
Deferred tax assets | 161,565,839 | 25,353,206 | 156,070,112 |
TOTAL ASSETS | 4,667,060,561 | 732,363,645 | 4,094,954,517 |
Current liabilities: | |||
Short-term bank loans | 356,000,000 | 55,864,168 | 150,000,000 |
Long-term bank loans, current portion | 50,200,000 | 7,877,475 | |
Accounts payable | 24,036,544 | 3,771,858 | 19,606,344 |
Advance from customers | 39,773,738 | 6,241,367 | 34,305,508 |
Amounts due to related parties | 9,530,627 | 1,495,563 | 3,198,253 |
Salary and welfare payable | 60,154,565 | 9,439,564 | 51,567,587 |
Deferred rent | 1,926,957 | 302,382 | 1,356,132 |
Deferred revenue | 215,147,975 | 33,761,412 | 221,314,997 |
Accrued expenses and other current liabilities | 381,282,062 | 59,831,476 | 300,696,673 |
Income tax payable | 70,897,366 | 11,125,344 | 87,483,970 |
Dividends payable | 40,999,458 | 6,433,710 | |
Total current liabilities | 1,249,949,292 | 196,144,319 | 869,529,464 |
Deferred rent | 68,842,692 | 10,802,921 | 28,642,973 |
Deferred revenue | 314,472,488 | 49,347,596 | 361,901,369 |
Long-term loans, non current portion | 301,800,000 | 47,359,006 | |
Other long-term liabilities | 132,046,925 | 20,721,044 | 115,862,713 |
Deferred tax liabilities | 228,201,745 | 35,809,834 | 178,413,413 |
Unrecognized tax benefits | 328,820,281 | 51,599,077 | 290,679,902 |
Total liabilities | 2,624,133,423 | 411,783,797 | 1,845,029,834 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | 1,151,384,306 | 180,677,323 | 1,149,280,404 |
Retained earnings | 326,298,618 | 51,203,374 | 570,042,924 |
Accumulated other comprehensive income | 41,880,907 | 6,572,028 | 45,586,647 |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,857,685,111 | 291,511,332 | 2,103,031,255 |
Noncontrolling interests | 185,242,027 | 29,068,516 | 146,893,428 |
Total shareholders' equity | 2,042,927,138 | 320,579,848 | 2,249,924,683 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,667,060,561 | 732,363,645 | 4,094,954,517 |
Common Class A | |||
Shareholders' equity: | |||
Ordinary shares, value | 222,587,070 | 34,928,768 | 222,587,070 |
Common Class B | |||
Shareholders' equity: | |||
Ordinary shares, value | ¥ 115,534,210 | $ 18,129,839 | ¥ 115,534,210 |
STATEMENTS OF CONSOLIDATED BA_2
STATEMENTS OF CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares |
Allowance for doubtful accounts receivable | ¥ 3,429,201 | $ 538,116 | ¥ 12,489,562 |
Common Class A | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, issued | 68,286,954 | 68,286,954 | 68,286,954 |
Common stock, outstanding | 68,286,954 | 68,286,954 | 68,286,954 |
Common Class B | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 |
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | ¥ 1,206,145,958 | $ 189,270,620 | ¥ 930,010,096 | ¥ 1,091,793,135 |
Operating costs and expenses: | ||||
Hotel operating costs (including purchase from related parties of RMB 357,539, RMB 764,045 and RMB 889,140 (USD 139,525) for the years ended December 31, 2019, 2020 and 2021, respectively) | (651,376,905) | (102,215,250) | (401,659,306) | (338,826,479) |
Selling and marketing expenses (including service from a related party of RMB 24,941, RMB 6,021,433 and RMB 9,438,030 (USD 1,481,033) for the years ended December 31, 2019, 2020 and 2021, respectively) | (66,921,718) | (10,501,478) | (75,347,166) | (84,970,401) |
General and administrative expenses (including purchase from a related party of RMB 3,576,659, nil and nil for the years ended December 31, 2019, 2020 and 2021, respectively) | (356,046,265) | (55,871,428) | (163,420,554) | (184,989,324) |
Other operating expenses | (4,937,625) | (774,821) | (1,731,405) | (3,286,652) |
Total operating costs and expenses | (1,079,282,513) | (169,362,977) | (642,158,431) | (612,072,856) |
Other operating income | 27,059,935 | 4,246,294 | 31,399,552 | 24,832,269 |
Income from operations | 153,923,380 | 24,153,937 | 319,251,217 | 504,552,548 |
Interest income and other, net (including interest income from related parties of RMB 3,100,049, RMB 21,336,855 and RMB 544,352 (USD 85,421) for the years ended December 31, 2019, 2020 and 2021, respectively) | 59,974,418 | 9,411,295 | 72,934,212 | 66,088,425 |
Interest expenses | (12,671,385) | (1,988,417) | (3,456,316) | (2,505,904) |
(Losses and impairment) Gains on equity securities held | 9,137,875 | 1,433,932 | (36,773,521) | 55,253,744 |
Other income, net | 11,818,559 | 1,854,590 | 2,296,981 | 2,690,742 |
Income before income taxes and share of gains in equity method investments | 222,182,847 | 34,865,337 | 354,252,573 | 626,079,555 |
Income tax expense | (108,888,882) | (17,087,042) | (110,459,202) | (189,567,817) |
Income before share of gains in equity method investments | 113,293,965 | 17,778,295 | 243,793,371 | 436,511,738 |
Share of gains in equity method investments, net of tax | 382,874 | 60,081 | 909,365 | 1,262,431 |
Net income | 113,676,839 | 17,838,376 | 244,702,736 | 437,774,169 |
Net loss attributable to noncontrolling interests | 3,761,411 | 590,248 | 16,641,655 | 4,944,094 |
Net income attributable to ordinary shareholders | 117,438,250 | 18,428,624 | 261,344,391 | 442,718,263 |
Other comprehensive income(loss), net of tax | ||||
-Foreign currency translation adjustments | (6,497,403) | (1,019,584) | (19,714,207) | 2,933,162 |
-Unrealized gains on available-for-sale investments, net of reclassification | 2,791,663 | 438,073 | ||
Other comprehensive income (loss), net of tax | (3,705,740) | (581,511) | (19,714,207) | 2,933,162 |
Comprehensive income, net of tax | 109,971,099 | 17,256,865 | 224,988,529 | 440,707,331 |
Comprehensive loss attributable to noncontrolling interests | 3,761,411 | 590,248 | 16,641,655 | 4,944,094 |
Comprehensive income attributable to ordinary shareholders | ¥ 113,732,510 | $ 17,847,113 | ¥ 241,630,184 | ¥ 445,651,425 |
Common Class A | ||||
Earnings per share | ||||
Basic earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Diluted earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic | 68,286,954 | 68,286,954 | 68,286,954 | 67,315,727 |
Weighted average shares outstanding diluted | 68,286,954 | 68,286,954 | 68,286,954 | 67,315,727 |
Common Class B | ||||
Earnings per share | ||||
Basic earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Diluted earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Weighted average shares outstanding diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Leased And Operated Hotels | ||||
Revenues: | ||||
Total revenues | ¥ 391,960,031 | $ 61,507,082 | ¥ 227,074,041 | ¥ 253,420,676 |
Franchised And Managed Hotels | ||||
Revenues: | ||||
Total revenues | 774,359,348 | 121,513,879 | 677,480,818 | 831,340,340 |
Others | ||||
Revenues: | ||||
Total revenues | ¥ 39,826,579 | $ 6,249,659 | ¥ 25,455,237 | ¥ 7,032,119 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Due from related parties | ¥ 544,352 | ¥ 21,336,855 | ¥ 3,100,049 | $ 85,421 | |
Hotel Operating Costs | |||||
Due to related parties | 889,140 | 764,045 | 357,539 | 139,525 | |
Selling And Marketing Expenses | |||||
Due to related parties | 9,438,030 | 6,021,433 | 24,941 | $ 1,481,033 | |
General And Administrative Expenses | |||||
Due to related parties | 3,576,659 | ||||
Leased And Operated Hotels | |||||
Revenue from related parties | 288,392 | $ 45,255 | 320,179 | 385,355 | |
Franchised And Managed Hotels | |||||
Revenue from related parties | ¥ 1,251,888 | $ 196,449 | ¥ 852,287 | ¥ 2,358,491 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Common Class ACNY (¥)shares | Common Class AUSD ($)shares | Common Class BCNY (¥)shares | Common Class BUSD ($)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Retained EarningsCNY (¥) | Retained EarningsUSD ($) | AOCI Attributable to ParentCNY (¥) | AOCI Attributable to ParentUSD ($) | ParentCNY (¥) | ParentUSD ($) | Noncontrolling InterestCNY (¥) | Noncontrolling InterestUSD ($) | CNY (¥) | USD ($) |
Balance at Dec. 31, 2018 | ¥ 217,421,867 | ¥ 115,534,210 | ¥ 1,003,026,803 | ¥ 252,617,450 | ¥ 62,367,692 | ¥ 1,650,968,022 | ¥ 8,379,047 | ¥ 1,659,347,069 | ||||||||
Balance, shares at Dec. 31, 2018 | shares | 66,789,300 | 66,789,300 | 34,762,909 | 34,762,909 | ||||||||||||
Distribution to the shareholders | (386,637,180) | (386,637,180) | (386,637,180) | |||||||||||||
Capital contribution from noncontrolling interest holders | 14,719,481 | 14,719,481 | ||||||||||||||
Acquisitions of subsidiaries and business | ¥ 2,104,832 | 122,591,019 | 124,695,851 | 138,437,060 | 263,132,911 | |||||||||||
Acquisitions of subsidiaries and business, shares | shares | 626,746 | 626,746 | ||||||||||||||
Net income | 442,718,263 | 442,718,263 | (4,944,094) | 437,774,169 | ||||||||||||
Foreign currency translation adjustments | 2,933,162 | 2,933,162 | 2,933,162 | |||||||||||||
Share-based compensation | 26,490,395 | 26,490,395 | 26,490,395 | |||||||||||||
Balance at Dec. 31, 2019 | ¥ 219,526,699 | ¥ 115,534,210 | 1,152,108,217 | 308,698,533 | 65,300,854 | 1,861,168,513 | 156,591,494 | 2,017,760,007 | ||||||||
Balance, shares at Dec. 31, 2019 | shares | 67,416,046 | 67,416,046 | 34,762,909 | 34,762,909 | ||||||||||||
Issuance of Class A ordinary shares as a payment to the acquisition of Shandong Xinghui | ¥ 3,060,371 | (3,060,371) | ||||||||||||||
Issuance of Class A ordinary shares as a payment to the acquisition of Shandong Xinghui, shares | shares | 870,908 | 870,908 | ||||||||||||||
Capital contribution from noncontrolling interest holders | 6,943,589 | 6,943,589 | ||||||||||||||
Net income | 261,344,391 | 261,344,391 | (16,641,655) | 244,702,736 | ||||||||||||
Foreign currency translation adjustments | (19,714,207) | (19,714,207) | (19,714,207) | |||||||||||||
Share-based compensation | 232,558 | 232,558 | 232,558 | |||||||||||||
Balance at Dec. 31, 2020 | ¥ 222,587,070 | ¥ 115,534,210 | 1,149,280,404 | 570,042,924 | 45,586,647 | 2,103,031,255 | 146,893,428 | 2,249,924,683 | ||||||||
Balance, shares at Dec. 31, 2020 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 | ||||||||||||
Distribution to the shareholders | (361,182,556) | (361,182,556) | (361,182,556) | |||||||||||||
Capital contribution from noncontrolling interest holders | 8,191,000 | 8,191,000 | ||||||||||||||
Acquisition of noncontrolling interest | (360,861) | (360,861) | (657,526) | (1,018,387) | ||||||||||||
Acquisitions of subsidiaries and business | 34,576,536 | 34,576,536 | ||||||||||||||
Net income | 117,438,250 | 117,438,250 | (3,761,411) | 113,676,839 | $ 17,838,376 | |||||||||||
Foreign currency translation adjustments | (6,497,403) | (6,497,403) | (6,497,403) | (1,019,584) | ||||||||||||
Unrealized gains on available-for-sale investments, net of reclassification | 2,791,663 | 2,791,663 | 2,791,663 | 438,073 | ||||||||||||
Share-based compensation | 2,464,763 | 2,464,763 | 2,464,763 | |||||||||||||
Balance at Dec. 31, 2021 | ¥ 222,587,070 | $ 34,928,768 | ¥ 115,534,210 | $ 18,129,839 | ¥ 1,151,384,306 | $ 180,677,323 | ¥ 326,298,618 | $ 51,203,374 | ¥ 41,880,907 | $ 6,572,028 | ¥ 1,857,685,111 | $ 291,511,332 | ¥ 185,242,027 | $ 29,068,516 | ¥ 2,042,927,138 | $ 320,579,848 |
Balance, shares at Dec. 31, 2021 | shares | 68,286,954 | 68,286,954 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating activities: | ||||
Net income | ¥ 113,676,839 | $ 17,838,376 | ¥ 244,702,736 | ¥ 437,774,169 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 98,110,657 | 15,395,703 | 65,869,971 | 40,366,299 |
Share of gains in equity method investments | (382,874) | (60,081) | (909,364) | (140,564) |
Gain from disposal of a long-term investment | (1,097,790) | |||
(Gain) Loss from disposal of a subsidiary | 118,443 | 18,586 | (1,779,000) | |
Interest income | (3,669,643) | (575,847) | (11,542,121) | (35,659,822) |
Bad debt expense | 132,591,726 | 20,806,535 | 29,953,404 | 38,423,347 |
Losses and impairment (Gain) on equity securities held | (9,137,875) | (1,433,932) | 44,506,823 | (55,253,744) |
Gain on disposal of property and equipment | 604,017 | 94,783 | 860,000 | |
Foreign exchange loss (gain) | (1,310,346) | (205,622) | 4,723,948 | (1,408,437) |
Share-based compensation | 2,464,763 | 386,775 | 232,558 | 26,490,395 |
Withholding tax | 19,845,708 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (22,329,328) | (3,503,959) | (28,789,041) | (52,263,625) |
Prepaid rent | (1,857,100) | (291,419) | 5,196,798 | (14,316,252) |
Inventories | 1,495,974 | 234,751 | (1,281,009) | 351,518 |
Amounts due from related parties | (3,963,547) | (621,967) | 10,329,181 | (3,228,596) |
Other current assets | (60,345,480) | (9,469,523) | (18,807,170) | 10,990,176 |
Other assets | (49,214,290) | (7,722,796) | (19,680,102) | (22,637,263) |
Accounts payable | 4,520,260 | 709,327 | 4,546,551 | 4,814,800 |
Amounts due to related parties | 6,332,374 | 993,688 | (319,778) | 3,232,453 |
Salary and welfare payable | 8,586,978 | 1,347,484 | 8,913,678 | (2,047,293) |
Deferred revenue | (53,595,903) | (8,410,367) | (59,516,154) | 18,973,331 |
Advance from customers | 5,468,230 | 858,085 | (5,800,119) | 3,735,302 |
Accrued expenses and other current liabilities | 71,545,537 | 11,227,056 | 13,169,672 | 27,198,083 |
Income tax payable | (16,586,604) | (2,602,800) | (6,354,794) | (12,476,008) |
Unrecognized tax benefits | 38,140,379 | 5,985,058 | 29,038,185 | 92,022,308 |
Deferred rent | 40,770,544 | 6,397,788 | 6,997,755 | (1,939,759) |
Other long-term liabilities | 14,648,804 | 2,298,717 | (5,549,798) | 21,538,701 |
Deferred taxes | 44,292,605 | 6,950,476 | (12,595,878) | (30,207,540) |
Net cash provided by operating activities | 360,975,140 | 56,644,875 | 295,256,932 | 513,939,897 |
Investing activities: | ||||
Purchases of property and equipment | (341,715,516) | (53,622,621) | (111,929,994) | (213,329,308) |
Purchases of intangible assets | (201,746) | (31,658) | (887,893) | (2,240,298) |
Proceeds from disposal of property and equipment | 80,355 | 1,800,000 | ||
Payments for acquisition of minority equity | (1,018,387) | (159,807) | ||
Acquisitions, net of cash received | (147,608,325) | (23,162,967) | (18,415,807) | (325,016,059) |
Advances for acquisitions | (39,483,494) | (6,195,822) | (6,550,000) | (38,869,400) |
Collections of acquisition advances | 12,154,500 | 1,907,306 | 36,352,700 | |
Advances for purchases of property and equipment | (219,346,261) | (34,420,215) | ||
Repayments from advances for purchases of property and equipment | 22,400,000 | 3,515,049 | ||
Purchases of short-term investments | (378,189,082) | (59,346,120) | (206,596,401) | (823,183,360) |
Proceeds from short-term investments | 536,383,232 | 84,170,234 | 453,434,366 | 1,107,076,219 |
Proceeds from sales of long-term time deposits | 50,000,000 | 7,846,091 | ||
Increase of long-term time deposits | (130,000,000) | (20,399,837) | (30,000,000) | (500,000,000) |
Purchases of investments in equity securities | (8,940,000) | (1,402,881) | (65,829,314) | (328,228,962) |
Proceeds from disposal of equity securities | 284,004,591 | 44,566,518 | 198,976 | 222,015,253 |
Proceeds from disposal of equity method investments | 6,380,000 | 1,671,092 | ||
Proceeds from disposal of a subsidiary | 1,693,391 | 265,730 | 2,183,350 | |
Loans to related parties | (604,618,942) | (94,877,906) | (528,356,500) | (634,638,425) |
Repayment from related parties | 307,933,500 | 48,321,486 | 539,996,179 | 458,752,530 |
Loans to third parties | (36,944,271) | (5,797,362) | (62,000,000) | (10,340,000) |
Repayment from third parties | 55,127,367 | 8,650,687 | ||
Loan to franchisees | (423,399,028) | (66,440,547) | (218,821,974) | (157,411,151) |
Repayment from franchisees | 133,380,285 | 20,930,277 | 99,209,300 | 21,985,474 |
Net cash used in investing activities | (928,388,186) | (145,684,365) | (111,552,657) | (1,219,956,395) |
Financing activities: | ||||
Distribution to the shareholders (Note 1) | (320,253,160) | (50,254,709) | (226,951,236) | |
Proceeds from bank loans | 808,000,000 | 126,792,832 | 160,000,000 | |
Repayment of bank loans | (250,000,000) | (39,230,455) | (70,000,000) | |
Loan from non-controlling interest | 9,689,903 | 1,520,557 | 20,585,804 | |
Capital contribution from noncontrolling interest holders | 8,191,000 | 1,285,347 | 6,943,589 | 14,719,481 |
Payment for contingent consideration | (2,001,521) | |||
Net cash (used in)/ generated from financing activities | 255,627,743 | 40,113,572 | 115,527,872 | (212,231,755) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,344,197) | (210,933) | (7,664,261) | (6,917,309) |
Net (decrease)/ increase in cash and cash equivalents and restricted cash | (313,129,500) | (49,136,851) | 291,567,886 | (925,165,562) |
Cash and cash equivalents and restricted cash at the beginning of the year | 633,728,109 | 99,445,769 | 342,160,223 | 1,267,325,785 |
Cash and cash equivalents and restricted cash at the end of the year | 320,598,609 | 50,308,918 | 633,728,109 | 342,160,223 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (7,363,066) | (1,155,426) | (4,470,953) | (2,133,568) |
Income taxes paid | (78,296,994) | (12,286,507) | (105,591,179) | (120,341,664) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Dividend payable settled by loan to a related party | 157,461,267 | |||
Consideration payable for acquisitions | 15,342,675 | $ 2,407,601 | 16,776,500 | |
Current assets settled for acquisition of a subsidiary | 37,255,016 | |||
Ordinary shares issued or to be issued for acquisitions | 124,695,851 | |||
Contingent consideration included in other current liabilities arising from acquisition during the year | 4,027,207 | |||
Returnable consideration included in other assets arising from acquisition during the year | 3,333,421 | |||
Reconciliation of cash, cash and equivalents and restricted cash | ||||
Cash and cash equivalents | 298,428,709 | 611,358,209 | 319,847,701 | |
Restricted cash, current | 3,300,000 | |||
Restricted cash, non-current | 18,869,900 | 22,369,900 | 22,312,522 | |
Total cash, cash and equivalents and restricted cash shown in the statements of cash flow | ¥ 320,598,609 | ¥ 633,728,109 | ¥ 342,160,223 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES GreenTree Hospitality Group Ltd. (the “Company”) was incorporated in the Cayman Islands on October 18, 2017. Alex S. Xu is the founder, Chief Executive Officer (“CEO”) and controlling shareholder of the Company (through his shareholding of Class A ordinary shares and Class B ordinary shares of Green Tree Inns Hotel Management Group. Inc. “GTI”) which account for 78.19% of the voting interest of the Company (the “Founder”). In preparation of its initial public offering in the United States, the Company had undergone a reorganization in 2017 whereby the Company became the parent entity of its consolidated subsidiaries. As part of the reorganization, the business operations of the consolidated subsidiaries were transferred to the Company. In return, the Company issued 48,635,252 Class A ordinary shares and 42,716,957 Class B ordinary shares to GTI, a company controlled by the Founder (the “Reorganization”). Subsequent to the Reorganization, GTI became the sole shareholder of the Company. As the Company, its subsidiaries are all under the control of the Founder, the reorganization was accounted for as a transaction under common control in a manner similar to a pooling of interests. Therefore, the accompanying consolidated financial statements have been prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented. In February and March 2018, the Company declared and paid a cash dividend of USD25,578,618 pursuant to a board resolution. On March 11, 2018, 7,594,048 Class B ordinary shares were redesignated as Class A ordinary shares. On March 27, 2018, the Company completed an initial public offering (“IPO”) on the New York Stock Exchange. The Company offered 10,200,000 ADSs representing 10,200,000 Class A ordinary shares at USD14.00 per ADS. Net proceeds from the IPO deducting underwriting discount were USD133,518,000. IPO costs of RMB30,827,578 were recorded as reduction of the proceeds from the IPO in shareholders’ equity. In January 2019, the Company declared and paid a cash dividend of USD30,559,675 pursuant to a board resolution. On January 25, 2019 and June 27, 2019, the Company issued an aggregate of 626,746 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 60% equity interest mainly in Argyle Hotel Management (Beijing) Co., Ltd (“Argyle Beijing”). In December 2019, the Company declared and paid a cash dividend of USD25,544,739 pursuant to a board resolution. On January 15, 2020, the Company issued 870,908 Class A ordinary shares as a portion of the purchase consideration for the acquisition of 70% equity interest in Shandong Xinghui Urban Hotel Management Group Co., Ltd (“Shandong Xinghui”). 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 was paid in 2021 and the rest was paid in January 2022. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) The Company and its subsidiaries are hereinafter referred to as the Group. The principal business activities of the Group are to develop leased-and-operated and franchised-and-managed economy hotels under the “GreenTree” brand in the PRC. The Group’s major direct and indirect invested subsidiaries consist of the following as of December 31, 2021: 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 Argyle Beijing 60 % April 1, 2019 PRC Hotel management Shandong Xinghui 70 % November 30, 2019 PRC Hotel management Shanghai Sipei Technology Co., Ltd. (“Shanghai Sipei”) 100 % October 20, 2011 PRC Information technology services Leased-and-operated hotels The Group owns hotel property or leases hotel properties from property owners and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the “GreenTree” brand, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease, which ranges from 10 to 20 years. Under the lease arrangements, the Group typically receives rental holidays of three to six months and pays fixed rent on a quarterly or semi-annual basis for the first three or five years of the lease term, after which the rental payments may be subject to an increase every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term. 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 5 to 20 years and is renewable only upon a mutual agreement between the Group and the franchisee. |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the ultimate primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. Variable Interest Entities The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, fair value measurement and impairment of investments, the useful lives and impairment of property and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, contingent liabilities, purchase price allocation and share-based compensation arrangements. 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 guarantee for lease agreement and the guarantees for prepaid cards. Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments Short-term investments 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. RMB80,000,000 (USD12,553,746) of which was pledged with banks as security in relation to the guarantee for the short-term bank loans and restricted to use (Note 11). Investments in equity securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321, Investments – Equity Securities 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 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments (continued) Long-term investments (continued) Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in net income in the consolidated statements of comprehensive income. The realized gains of RMB4,674,446, RMB4,746,032 and RMB1,564,892 (USD245,566) were recognized for the years ended December 31, 2019, 2020 and 2021, respectively. For the year ended December 31, 2019, there were unrealized gains of RMB6,473,358. For the year ended December 31, 2020 and 2021, there were unrealized losses of RMB9,247,254 and RMB14,058,448 (USD2,206,077) respectively. 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 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The available-for-sale debt investment is convertible debt instruments issued by a private company that is redeemable at the Group’s option, which are measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of these debt investments are recognized in other comprehensive income. An impairment loss on the available-for-sale debt investments, if any, is recognized in earnings when the decline in value is determined to be other-than-temporary. The interest income of nil, RMB18,667,117 and RMB544,352 (USD 85,421) was recognized in the earnings for the years ended December 31, 2019, 2020 and 2021, respectively. The fair value change of RMB2,791,663 (USD438,073) was recognized in the other comprehensive income during the year ended December 31, 2021. No impairment or significant fair value changes were recorded for these investments during any of other presented periods. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Accounts receivable, net of allowance for doubtful accounts Trade receivables mainly consist of franchise fees receivable, rental amounts due from individual and corporate customers and travel agents, and sublease rental receivables due from third-party merchandisers, which are recognized and carried at the original invoice amounts less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific franchisees, customers, and merchandisers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables are expensed when used. Loans receivable Loans receivable are carried at the original loan principal and accrued interest based on the contract rate, less an allowance for uncollectible accounts, as appropriate. The Group classified loans receivable as long-term or short-term investments according to their contractual maturity. The allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. As of December 31, 2020 and 2021, all loans receivable which are past due are nonaccrual Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income as the difference between the net sales proceeds and the carrying amount of the underlying asset. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion, and are measured at fair value upon acquisition. Favorable leases from such business combination transactions are amortized over the remaining operating lease term. Reacquired rights represent the franchise right the Group previously granted to the acquiree through franchise agreements and are amortized over the next renewal date in the applicable agreement. Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5-10 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The trademarks acquired in the acquisition of Argyle Group and Urban Hotel Group (Note 3) can be renewed without substantial obstacles. As a result, the useful life is determined to be indefinite. The Group evaluates the trademark at the end of each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2020 and 2021 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill In accordance with ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment In 2020, the Group elected to choose to bypass the qualitative assessment and proceed directly to perform a quantitative test. In 2019 and 2021, the Group performed a qualitative assessment for its operating unit. No impairment was recorded during any of the presented periods. Impairment of long-lived assets The Group evaluates impairment of its long-lived assets to be held and used, including property and equipment, definite-lived intangible assets and other non-current assets, when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment-Overall 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition Leased and operated hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Each of these products and services represents an individual performance obligation and, in exchange for these services, the Group receives fixed amounts based on fixed rates or fixed standalone selling price. Revenue is recognized when rooms are occupied, and food and beverages are sold as the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties, which are recognized on a straight-line basis over the contractual lease term. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income amounted to RMB74,893,930, RMB77,676,665 and RMB74,689,226 (USD11,720,369) for the years ended December 31, 2019, 2020 and 2021, respectively. Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: ● Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. ● System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. ● Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Franchise and managed hotel revenues (continued) Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, the Group has a performance obligation to provide franchisees a license to its hotel system intellectual property for use of certain of its brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. The hotel manager fee is recognized as revenue on a monthly basis. During the years ended December 31, 2019, 2020 and 2021, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB115,638,242, RMB112,729,886 and RMB131,027,473 (USD20,561,070), respectively. Other Revenues Other revenues are derived from selling of goods through the Company’s online mall and sale of hotel related products to franchisees. Revenues are recognized upon customers’ acceptance. Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Membership Program (continued) 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 Starting from May 2016, the accommodation services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB23,934,351, RMB38,934,867 and RMB22,906,044 (USD3,594,458) for the years ended December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021, the Group received financial subsidies of RMB9,880,735, RMB20,094,745 and RMB16,993,539 (USD2,666,657), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. Interest income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Leases Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2020 and 2021. The Group leases hotel space under certain operating lease agreements. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The excess of rent expense and rent paid, as the case may be for respective leases, is recorded as deferred rent. Rental expenses amounted to RMB81,379,034, RMB122,590,230 and RMB238,493,602 (USD37,424,850) for the years ended December 31, 2019, 2020 and 2021, respectively. Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall 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. Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of PRC subsidiaries of the Company are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Foreign currency translation and transactions (continued) Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. Convenience translation Translations of amounts from RMB into U.S. dollars into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.3726 on December 31, 2021, 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, 2021, or at any other rate. 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value (continued) Assets and Liabilities Measured at Fair Value on a recurring basis Investments in equity securities with readily determinable fair values are measured using quoted market prices, and are recorded at fair values at each balance sheet date. The fair value of the Group’s Investments in wealth management products are measured using the income approach, based on quoted market interest rates of a similar instrument and other significant inputs derived from or corroborated by observable market data. The payable for contingent consideration and the returnable consideration from Urban Hotel Group are based on the achievement of certain financial targets in accordance with the acquisition agreements for the various periods. For the available-for-sale debt investment, the Group uses a combination of valuation methodologies, including income approach and Black-Scholes-Merton valuation model based on the Group’s best estimate, which is determined by using information including but not limited to the future cash flow forecast, discount rate, expected volatility, a discount for lack of marketability, the probability of exit events and the selection of comparable companies. The carrying values of other financial instruments, which consist of cash and cash equivalents, time deposits, accounts receivable, loans receivable, amounts due from related parties, accounts payable and amounts due to related parties are recorded at cost which ap |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | 3. BUSINESS COMBINATIONS Business combinations in 2021: During the years ended 2021, the Group completed three business combinations. The total consideration amounted to RMB23,000,000 (USD3,609,202). The consideration paid is RMB19,530,000 (USD3,064,683). The results of the acquired hotel’s operation have been included in the Company’s consolidated financial statements since its respective dates of acquisition. The Group completed the valuations necessary to assess the fair value of the acquired assets and liabilities and the non-controlling interests (if applicable) with the assistance from an independent valuation firm, resulting from which the amounts of goodwill were determined and recognized as of the respective acquisition dates. Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions. The initial accounting is incomplete as the valuations of intangible assets are provisional. The net revenue and net loss of the acquire included in the consolidated statements of operations for the year ended December 31, 2021 were not material. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Company’s consolidated results of operations. The following is a summary of the fair values of the aggregate assets acquired and liabilities assumed: 2021 Amortization Period Property and equipment 92,075 10 years Intangible assets Trademark 36,896,000 10 years Goodwill 20,588,461 Noncontrolling interest (34,576,536) Total 23,000,000 Business combinations in 2020: During the years ended 2020, the Group completed one business combinations of one hotel. The total consideration amounted to RMB2,200,000, among which RMB153,251 was allocated to goodwill. The business acquisition was accounted for under purchase accounting. The acquired hotel was considered insignificant. The results of the acquired hotel’s operation have been included in the Company’s consolidated financial statements since its respective dates of acquisition. Business combinations in 2019: During the years ended 2019, the Group completed four business combinations, including Argyle Group, Urban Hotel Group and other two companies. The results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since their respective dates of acquisition. The Group completed the 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. 3. BUSINESS COMBINATIONS (CONTINUED) Argyle Group On April 4, 2019, the Group completed the acquisition of Argyle Group through acquiring 60% equity interest in Argyle Beijing. Argyle Group is an owner and operator of hotels, with a network of mid-scale and up-scale brands in China and Southeast Asia. The total consideration amounted to RMB126,819,172, which was measured at the fair value of the 626,746 ordinary shares on the acquisition date and cash consideration of RMB65,779,032. The business acquisition was accounted for under purchase accounting. The net revenue and net loss of the acquire included in the consolidated statements of operations for the year ended December 31, 2019 were RMB11,882,976 and RMB7,694,834, respectively. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets 3,777,860 Property and equipment 1,013,378 3 - 17 years Intangible assets Purchased software 669,206 4 - 7 years Trademark 230,500,000 Indefinite life Goodwill 42,198,903 Current liabilities (7,618,079) Deferred tax liabilities (57,625,000) Non current liabilities (15,642,000) Noncontrolling interest (70,455,096) Total 126,819,172 Urban Hotel Group On November 30, 2019, the Group completed the acquisition of Urban Hotel Group through acquiring 70% equity interest in Shandong Xinghui. Urban Hotel Group is a leading franchised hotel operator in China. The total consideration amounted to RMB 190,349,496, 3. BUSINESS COMBINATIONS (CONTINUED) Urban Hotel Group (continued) The following is a summary of the fair values of the assets acquired and liabilities assumed: 2019 Amortization Period Current assets (i) 50,482,296 Property and equipment 6,913,189 3 - 10 years Intangible assets Favorable leases 20,100,000 Remaining lease terms Trademark 212,800,000 Indefinite life Purchased software 34,739 2 years Deferred tax assets 4,000,000 Other assets 4,537,000 Goodwill 49,037,577 Current liabilities (19,831,341) Non current liabilities (11,517,000) Deferred tax liabilities (58,225,000) Noncontrolling interest (67,981,964) Total 190,349,496 (i) Current assets acquired primarily included cash and cash equivalent of RMB 28,162,864 , other receivables of RMB 16,928,966 and accounts receivable of RMB 5,116,320 . Others On July 1, 2019, the Group completed the acquisition of a company at consideration of RMB37,255,016 On August 31, 2019, the Group completed the acquisition of one hotel at a cash consideration of RMB5,530,000. As the acquires are unlisted companies, the fair value measurements for the non-controlling interest and previously held equity interest are estimated with reference to the purchase price per share as of the acquisition date and adjustment for the lack of control and marketability. The business acquisitions were accounted for under purchase accounting. The assets and liabilities of these two acquirees were immaterial to the consolidated financial statements. The Group incurred transaction cost of RMB2,589,034 for the abovementioned four acquisitions, which was expensed and recorded in general and administrative expenses in the year ended December 31, 2019. The valuations used in the purchase price allocation described above were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flow (c) financial multiple of companies in the same industry and (d) adjustment for lack of control and marketability. 3. BUSINESS COMBINATIONS (CONTINUED) Others (continued) Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that do not qualify for separate recognition. Goodwill is not amortized and is not deductible for tax purposes. In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. All the acquired business has been integrated with the Group’s business. The Group concluded that it has only one reporting unit. Accordingly, goodwill is allocated to one single reporting unit. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Leased and operated hotels revenues 253,420,676 227,074,041 391,960,031 61,507,082 Franchise and managed hotels revenues 831,340,340 677,480,818 774,359,348 121,513,879 Initial franchise fee 54,930,266 61,051,369 76,263,574 11,967,419 Continuing franchise fees 776,410,074 616,429,449 698,095,774 109,546,460 Others 7,032,119 25,455,237 39,826,579 6,249,659 Total 1,091,793,135 930,010,096 1,206,145,958 189,270,620 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, 2020 and December 31, 2021. 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, 2020 2021 2021 RMB RMB USD Advance from customers 34,305,508 39,773,738 6,241,367 Deferred revenue-current 221,314,997 215,147,975 33,761,412 Deferred revenue-non current 361,901,369 314,472,488 49,347,596 Total contract liabilities 617,521,874 569,394,201 89,350,375 4. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Contract Balances (continued) The deferred revenue balances above, as of December 31, 2020 and 2021 were comprised of the following: Years Ended December 31, 2020 2021 2021 RMB RMB USD Initial fees received from franchisees owners 280,478,697 248,406,284 38,980,367 Cash received for membership fees and not recognized as revenue 215,009,108 186,976,973 29,340,767 Cash received for prepaid card and sublease 48,137,090 47,604,011 7,470,108 Deferred revenue related to the membership program 39,591,471 46,633,195 7,317,766 Total contract liabilities 583,216,366 529,620,463 83,109,008 The Group recognized revenues that were previously deferred as contract liabilities of RMB206,913,137 and RMB183,736,546 (USD28,832,273) during the years ended December 31, 2020 and 2021, 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, 2021, the Group had RMB248,406,284 (USD38,980,367) 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 |
Loans Receivable Net
Loans Receivable Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 5. LOANS RECEIVABLE, NET Loans receivable, net is comprised of the following: As of December 31, 2020 2021 2021 RMB RMB USD Loans receivable, current portion Franchisees 191,687,640 308,016,920 48,334,576 Third parties 48,556,989 45,216,904 7,095,519 Less: bad debt provision (18,000,000) (105,703,244) (16,587,145) Total 222,244,629 247,530,580 38,842,950 Loans receivable, non-current portion Franchisees 121,460,977 294,150,438 46,158,623 Third parties 24,243,011 9,000,000 1,412,296 Less: bad debt provision — (12,182,758) (1,911,741) Total 145,703,988 290,967,680 45,659,178 Loans receivable to franchisees represent loan agreements entered with certain franchisees to finance the renovation of certain franchised-and-managed hotels with maturity from one month to six years and the interest rate from 4.7% to 9.9% per annum. Loans receivable to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from one year to three years and the interest rate from 7.9% to 18.0% per annum. As of December 31, 2020 and 2021, the Group recognized an allowance of RMB18,000,000 and RMB117,886,002 (USD18,498,886) in relation to loans to a third party and certain franchisees. The following table presents the aging of past-due gross loans receivable as of December 31, 2020 and 2021: 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB December 31, 2020 37,251,907 51,957,304 6,673,574 15,000,000 110,882,786 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB December 31, 2021 42,412,387 25,028,613 33,136,695 39,751,902 140,329,597 December 31, 2021 (USD) 6,655,429 3,927,535 5,199,871 6,237,941 22,020,776 5. LOANS RECEIVABLE, NET (CONTINUED) Movement of allowance for loans receivable for the year ended December 31, 2020 and 2021 are as follows: 2020 2021 RMB RMB USD Balance of the beginning of the year 15,000,000 18,000,000 2,824,593 Provision 3,000,000 99,886,003 15,674,293 Balance of the end of the year 18,000,000 117,886,003 18,498,886 Evaluated for impairment on an individual basis 18,000,000 117,886,003 18,498,886 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of December 31, 2020 2021 2021 RMB RMB USD Buildings 544,298,466 626,908,935 98,375,692 Leasehold improvements 384,266,061 630,691,571 98,969,270 Furniture, fixtures and equipment 77,605,170 93,440,638 14,662,875 Motor vehicles 2,909,387 3,204,381 502,837 Total 1,009,079,084 1,354,245,525 212,510,674 Less: Accumulated depreciation (353,833,524) (436,314,189) (68,467,217) 655,245,560 917,931,336 144,043,457 Construction in progress 13,360,101 127,424,929 19,995,752 Property and equipment, net 668,605,661 1,045,356,265 164,039,209 Depreciation expense was RMB37,340,304, RMB59,719,535 and RMB89,617,316 (USD14,062,913) for the years ended December 31, 2019, 2020 and 2021, respectively, and were included in the following captions: For the years ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Hotel operating costs 31,671,274 53,850,494 80,575,644 12,644,077 General and administrative costs 5,669,030 5,869,041 9,041,672 1,418,836 Total 37,340,304 59,719,535 89,617,316 14,062,913 No impairment of was recognized on the property and equipment for any of the presented periods. At 31 December 2021, two of the Group's buildings with a net carrying amount of approximately RMB288,313,328 (USD45,242,653) (as of December 31, 2020: nil) were pledged to secure general banking facilities granted to the Group (note 11). |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 7. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2020 2021 2021 RMB RMB USD Intangible assets with indefinite life: Trademark 443,300,000 443,300,000 69,563,442 Intangible assets with definite life: Trademark 4,724,493 41,620,493 6,531,164 Technology 4,200,000 4,200,000 659,072 Network rights 390,317 390,317 61,249 Purchased software 15,227,737 15,429,484 2,421,223 Reacquired rights 2,531,418 2,531,418 397,235 Favorable leases 42,095,848 42,095,848 6,605,757 Others 435,185 435,185 68,290 Total 512,904,998 550,002,745 86,307,432 Less: Accumulated amortization (21,391,925) (29,885,266) (4,689,650) Total. 491,513,073 520,117,479 81,617,782 Amortization expense of intangible assets for the years ended December 31, 2019, 2020 and 2021 amounted to RMB3,025,995, RMB6,150,436 and RMB8,493,341 (USD1,332,790), respectively. No impairment charges were recognized for the years ended December 31, 2019, 2020 and 2021. The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2022 9,296,919 1,458,889 2023 8,964,793 1,406,772 2024 8,830,200 1,385,651 2025 8,402,997 1,318,614 2026 8,153,147 1,279,407 Thereafter 33,169,422 5,205,007 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 were as follows: For the years ended December 31, 2020 2021 2021 RMB RMB USD Balance as of January 1 100,078,236 100,231,487 15,728,507 Acquisitions 153,251 20,588,461 3,230,779 Balance as of December 31 100,231,487 120,819,948 18,959,286 No impairment loss was recognized in any of the periods presented. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Investments [Abstract] | |
Long-Term Investments | 9. LONG-TERM INVESTMENTS As at December 31, 2020 and 2021, long-term investments consisted of the following: As of December 31, 2020 2021 2021 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. 24,489,092 25,424,106 3,989,597 Other 1,000,000 10,787,859 1,692,850 Equity securities with readily determinable fair values China Gingko Education Group Company Limited 56,354,913 39,852,428 6,253,716 Zhejiang New Century Hotel Management Co., Ltd. 180,457,226 — — Equity securities without readily determinable fair values Other 3,523,212 6,233,255 978,134 Available-for-sale debt investment Yibon 103,701,474 106,493,137 16,711,097 Total 369,525,917 188,790,785 29,625,394 Equity method investments None of the Group’s equity method investments was considered individually or in aggregate significant for the years ended December 31, 2020 and 2021. Equity securities with readily determinable fair values In January 2019, the Group acquired 5.56% equity interest, 27,776,000 ordinary shares, in China Gingko Education Group Company Limited with HK$40.40million during its initial public offering in the Hong Kong Stock Exchange and further acquired 2.71% equity interest, 13,560,000 ordinary shares with HK$19.53million through secondary market. On March 11, 2019, the Group acquired 4.95% of shares in Zhejiang New Century Hotel Management Co., Ltd. in its global offering in the Hong Kong Stock Exchange, for a total amount of USD29.2 million. In April 2021, the Group disposed all its shares for a total amount of USD32.4million. 9. LONG-TERM INVESTMENTS (Continued) Investment in Yibon In April 2017, the Group acquired a 30% interest in Yibon for cash consideration of RMB103,701,474 in form of capital injection into the target company. The terms of investment in 30% equity interest in the ordinary shares of Yibon includes a contingent redemption clause if certain specified criteria are not met. As a result, the investment is accounted for as a cost method investment as the shares are not in-substance common stock prior to January 1, 2019. Along with the adoption of ASU 2016-01, the Group accounted it as equity securities without readily determinable fair values. As of December 31, 2020, the performance period had elapsed and the criterion had been determined to be not met, therefore the Group has the option to require Yibon to redeem the investment at the Group’s discretion. Therefore, the Group reclassified it to available-for-sale debt security and recorded it at its fair value. The holders of 70% of equity interest in Yibon had the right to exchange their equity interest in Yibon into the Company’s shares within a certain period after Yibon delivered an audited consolidated financial report for the year of 2019 in accordance with a formula using Yibon’s net profit achieved in the year of 2019 as calculation basis. Yibon recorded a net loss in 2019, as such, those holders were unable to exchange their equity interests in Yibon for the Company’s shares. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets | |
Other Assets | 10. OTHER ASSETS As of December 31, 2020 2021 2021 RMB RMB USD Current Receivable from on-line payment platforms 40,831,573 53,983,324 8,471,162 Interest receivable 5,298,869 49,347,369 7,743,679 Deposits 5,262,478 11,168,379 1,752,562 Advance to suppliers 5,581,884 5,206,428 817,002 VAT recoverable — 5,009,469 786,095 Others 20,674,990 18,022,194 2,828,076 Total 77,649,794 142,737,163 22,398,576 Non-current Acquisition deposits 8,216,700 6,650,200 1,043,561 Rental deposit 7,410,000 56,962,580 8,938,672 Interest receivable 33,772,617 5,737,675 900,366 Purchase deposits for buildings — 197,723,649 31,027,156 Returnable consideration from the acquisition of Urban Hotel Group 1,833,421 5,385,583 845,115 VAT recoverable — 10,774,251 1,690,715 Others 15,402,656 46,132,402 7,239,181 Total 66,635,394 329,366,340 51,684,766 |
Bank Loans
Bank Loans | 12 Months Ended |
Dec. 31, 2021 | |
Bank Loans | |
Bank Loans | 11. BANK LOANS Short-term bank loans Short-term bank loans as of December 31, 2021 amounted to RMB356,000,000 (USD55,864,168) (as of December 31, 2020: RMB150,000,000), which 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, 2020 and 2021 were 4.60% and 4.71%, respectively. As of December 31, 2021, the repayments of short-term bank loans amounting to RMB240,000,000 (USD37,661,237) and RMB76,000,000 (USD11,926,058) are respectively guaranteed by the Company’s PRC subsidiaries and collateralized by short-term time deposits of RMB80,000,000 (USD12,553,746), which were classified as short-term investments as provided by one of the Group's wholly-owned subsidiaries. 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 is entitled to borrow a RMB denominated loan of RMB152,000,000 (USD23,852,117) 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 (USD4,707,655) and RMB130,000,000 (USD20,399,837), respectively. The amount RMB30,200,000 (USD4,739,039) repayable within the next twelve months are classified as “Long-term bank loans, current portion”. In December 2021, the Group entered into a secured loan agreement with Bank of DaLian, pursuant to which the Group is entitled to borrow a secured RMB denominated loan of RMB200,000,000 (USD31,384,364) for interest rate at a fixed annual interest rate of 5% and maturity date on December 27, 2024. The repayment of the loan is guaranteed by the Group’s 100% equity interests one Group's wholly-owned subsidiary and two buildings owed by the Group, which have a carrying amount of RMB288,313,328 (USD45,242,653) as of December 31, 2021. The amount RMB20,000,000 (USD3,138,436) repayable within the next twelve months are classified as “Long-term bank loans, current portion”. As of December 31, 2021, aggregate loan principal payments on long-term borrowings are due according to the following schedule: Year ending December 31, RMB USD 2022 50,200,000 7,877,475 2023 141,800,000 22,251,514 2024 160,000,000 25,107,492 Total 352,000,000 55,236,481 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2020 2021 2021 RMB RMB USD Payable to franchisees 145,807,668 155,853,992 24,456,892 Business taxes and related tax surcharge 78,300,960 111,076,878 17,430,387 Accrued rental 20,675,146 27,957,242 4,387,101 Construction payable 11,902,821 13,888,585 2,179,422 Deposits payable 15,342,758 17,269,154 2,709,907 Payable for business combination and asset acquisitions 309,500 15,342,675 2,407,601 Accrued utilities 2,307,672 1,177,631 184,796 Others 26,050,148 38,715,905 6,075,370 Total 300,696,673 381,282,062 59,831,476 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Long-term Liabilities | |
Other Long-term Liabilities | 13. OTHER LONG-TERM LIABILITIES As of December 31, 2020 and 2021, other long-term liabilities are mainly comprised of deposits from franchisees of RMB104,562,713 and RMB118,803,438 (USD18,642,852), respectively. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
Class Of Stock Disclosures [Abstract] | |
Ordinary Shares | 14. ORDINARY SHARES The Group’s Class A and Class B ordinary shares are identical in all respects except for voting and conversion rights. On all matters upon which the holders are entitled to vote, the Class A shares and Class B shares then outstanding shall constitute 39.6% and 60.4% of the total voting power of the issued and outstanding shares of the Group, respectively. |
Hotel Operating Costs
Hotel Operating Costs | 12 Months Ended |
Dec. 31, 2021 | |
Operating Expenses [Abstract] | |
Hotel Operating Costs | 15. HOTEL OPERATING COSTS Hotel operating costs include all direct costs incurred in the operation of the leased-and-operated hotels and cost of providing franchise services and consist of the following: Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Rental 79,597,408 118,295,183 235,568,383 36,965,820 Utilities 19,119,300 15,372,385 25,782,913 4,045,902 Personnel cost 38,277,298 46,941,757 82,114,394 12,885,540 Depreciation and amortization 34,727,153 53,850,494 80,575,644 12,644,077 Consumable, food and beverage 32,337,115 43,257,796 69,495,702 10,905,392 Costs of hotel manager of franchised-and-managed hotels 96,565,044 91,664,745 114,779,305 18,011,378 Other costs of franchised-and-managed hotels 29,192,923 22,985,917 26,123,578 4,099,359 Others 9,010,238 9,291,029 16,936,986 2,657,782 Total 338,826,479 401,659,306 651,376,905 102,215,250 |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 16. 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 RMB26,490,395, RMB232,558 and RMB2,464,763 (USD386,775) was recognized in general and administrative expenses for the years ended December 31, 2019, 2020 and 2021. During the year ended December 31, 2019, 2020 and 2021, cash used to settle the related share-based compensation is nil, RMB1,186,271 and nil. For options granted during the years ended December 31, 2019 and 2021, the weighted-average grant date fair value for options granted was USD3.57 and USD2.42, 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. The fair value of share options was estimated using the following significant assumptions: Granted in 2019 Granted in 2021 Risk-free interest rate 1.60%-2.60 % 0.92 % Volatility 35.66%-37.98 % 40 % Dividend yield 2.5 % 2.5 % Life of option 6 years 6 years The aggregate grant date fair value of the outstanding options was determined to be RMB39,628,188, RMB35,828,331 and RMB34,994,421 (USD5,491,388) as of December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021 were RMB11,316,415, RMB8,610,259 and RMB8,319,569 (USD1,305,522). As of December 31, 2021, there was RMB592,966 (USD 93,049) in total unrecognized compensation expense related to unvested options, which is expected to be recognized over a weighted-average period of 0.37 years. 16. SHARE BASED COMPENSATION (CONTINUED) 2018 Share Incentive Plan (continued) 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, 2020 991,000 12.27 3.13 1,257,200 Granted 6,000 12.00 — — Exercised — — — — Forfeited (4,500) 12.27 — — Expired — — — — Share options outstanding at December 31, 2021 992,500 12.27 2.14 — Vested and expected to vest at December 31, 2021 992,500 12.28 2.14 — Exercisable as of December 31, 2021 742,125 12.24 2.14 — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. INCOME TAXES Samoa Under the current laws of Samoa, GreenTree Samoa is not subject to tax on income or capital gain. Cayman Island Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Hong Kong GreenTree Hotels (Hong Kong), Limited is subject to Hong Kong profit tax at a rate of 16.5% in the years ended December 31, 2019, 2020 and 2021. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the years presented. 17. INCOME TAXES (CONTINUED) PRC On March 16, 2007, the PRC government promulgated the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008. Under the New EIT Law, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Enterprises qualified as "High New Technology Enterprises ("HNTEs") enjoy a preferential income tax rate of 15%. Shanghai Evergreen qualified as an HNTE in November 2017 and was entitled to a preferential income tax rate of 15% from 2017 to 2019. Shanghai Evergreen reapplied for HNTE in 2020 and was successful in obtaining the HNTE certificate. It is entitled to the preferential income tax rate of 15% from 2020 to 2023. Shanghai Sipei qualified as an HNTE in 2020 and is entitled to a preferential income tax rate of 15% during 2021 to 2023. The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Current tax 197,233,190 122,931,256 105,353,756 16,532,303 Deferred tax (7,665,373) (12,472,054) 3,535,126 554,739 Total 189,567,817 110,459,202 108,888,882 17,087,042 Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31, 2019 2020 2021 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 3 % 0 % 10 % Effect of international rate difference 0 % 1 % 1 % Effect of preferential tax rate (5) % 0 % (7) % Tax effect of expenses that are not deductible in determining taxable profit 7 % 5 % 20 % Effective tax rate 30 % 31 % 49 % 17. INCOME TAXES (CONTINUED) PRC (continued) The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2019 2020 and 2021 are as follows: As of December 31, 2020 2021 2021 RMB RMB USD Deferred tax assets: Net loss carryforward 22,229,252 53,089,828 8,330,952 Deferred revenue 132,881,621 115,049,834 18,053,829 Deferred rent 7,499,776 17,692,412 2,776,326 Bad debt expenses 7,622,390 30,328,801 4,759,251 Accrued expenses 15,971,223 17,687,519 2,775,558 Unrealised losses from equity securities 5,213,960 7,534,182 1,182,278 Valuation allowance (24,186,707) (59,426,713) (9,325,349) Total deferred tax assets 167,231,515 181,955,863 28,552,845 Deferred tax liabilities: Depreciation of property and equipment (3,990,387) (6,099,754) (957,185) Unrealized gains from equity securities (805,803) (880,803) (138,217) Intangible assets arising from acquisition (141,587,024) (176,681,292) (27,725,150) Withholding tax on PRC earnings to be distributed (43,191,602) (64,929,920) (10,188,921) Total deferred tax liabilities (189,574,816) (248,591,769) (39,009,473) The Group offset deferred tax liabilities and assets pertaining to a particular tax-paying component of the Group within a particular jurisdiction. Valuation allowances have been provided for net deferred tax assets in the legal entity where, based on all available evidence, it was determined by management that more likely than not to be realized in future years. As of December 31, 2021, the Group had tax losses carryforwards of RMB212,359,312 (USD33,323,810) which will expire between 2021 and 2025 if not utilized. The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise ("FIE") to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The cumulated undistributed earnings of the Group’s PRC subsidiaries the Group intends to indefinitely reinvested were RMB319,502,143 (USD50,136,858) as of December 31, 2021. The Group intends to indefinitely reinvest the remaining undistributed earnings of the Group’s PRC subsidiaries. As of December 31, 2021, the related PRC withholding tax liability unrecognized was RMB31,950,214 (USD5,013,686). 17. INCOME TAXES (CONTINUED) PRC (continued) The Group made its assessment of the level of authority for each of its uncertain tax positions (including the potential application of interests and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. It is possible that the amount of uncertain tax benefits will change in the next 12 months, however, an estimate of the range of the possible outcomes cannot be made at this time. RMB328,820,281 (USD51,599,077) of the uncertain tax positions, if ultimately recognized, would affect the effective tax rate. Unrecognized tax benefits — January 1, 2020 261,641,717 Increases — tax positions in the current period 37,621,483 Decreases — tax positions in prior period (8,583,298) Unrecognized tax benefits — December 31, 2020 290,679,902 Unrecognized tax benefits — January 1, 2021 290,679,902 Increases — tax positions in the current period 108,672,095 Decreases — tax positions in prior period (70,531,716) Unrecognized tax benefits — December 31, 2021 328,820,281 In the years ended December 31, 2021, the Company recorded interest expense of RMB34,614,362 (USD5,431,749). In the years ended December 31, 2021, the Company reversed interest expense of RMB32,417,246 (USD5,086,973) due to lapse of statute of limitation. As of December 31, 2021, the accumulated interest expense and penalty recorded by the Group was RMB89,961,651 (USD14,116,946) and nil, respectively. The Group’s PRC subsidiaries are subject to examination by the PRC tax authorities from 2016 through 2021 on non-transfer pricing matters, and from 2011 through 2021 on transfer pricing matters. |
Mainland China Contribution Pla
Mainland China Contribution Plan and Profit Appropriation | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland China Contribution Plan and Profit Appropriation | 18. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION Full time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require the Group to accrue for these benefits based on a certain percentage of the employees’ salaries, subject to certain ceilings. The total contribution for such employee benefits were RMB28,700,397, RMB25,666,575 and RMB36,617,173 (USD5,746,033) for the years ended December 31, 2019, 2020 and 2021, 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, 2021 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net assets | 19. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to make appropriations to certain statutory reserves, namely a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax profits to a general reserve fund until such fund has reached 50% of its respective registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus funds are at the discretion of the board of directors for the foreign invested enterprises. For other subsidiaries incorporated in the PRC, the general reserve fund was appropriated based on 10% of net profits as reported in each subsidiary’s PRC statutory accounts. General reserve and statutory surplus funds are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company. Staff welfare and bonus fund and statutory public welfare funds are restricted to capital expenditures for the collective welfare of employees. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they allowed for distribution except under liquidation. As of December 31, 2019, 2020 and 2021, the PRC statutory reserve funds amounted to RMB63,030,266, RMB 69,953,178 and RMB77,453,118 (USD12,154,084), respectively. In addition, under PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their ability to transfer their net assets to the Company in the form of dividend payments, loans or advances. Amounts of net assets restricted include paid up capital and statutory reserve funds of the Group’s PRC totaling RMB509,435,466, RMB777,732,187 and RMB936,799,320 (USD147,004,256) as of December 31, 2019, 2020 and 2021, respectively. Furthermore, cash transfers from the Group’s PRC subsidiaries to the Group’s subsidiaries outside of the PRC are subject to the PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the Group’s PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | 20. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. The related parties that had transactions or balances with the Group in 2019, 2020 and 2021 consisted of: Related Party Nature of the party Relationship with the Group Alex S. Xu Individual Founder and CEO Hui Xu Individual Brother of Alex S. Xu Yan Zhang Individual Executive officer for catering management entities controlled by GTI Wen Qi Individual Vice president, human resources and administration of the Group GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) * Catering management Controlled by GTI Getao Industrial (HK) Limited (“Getao”) Catering management Controlled by GTI Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) * Catering management Controlled by GTI Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Beifu HongKong Indutrial Co,Limited (“Beifu HK”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Catering management Controlled by GTI Bellagio Restaurant Management Group (“Bellagio”) Catering management Controlled by GTI Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Yibon Hotel management Equity investee of the Group Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) ** Hotel management Equity investee of the Group * Aotao became a related party as it was acquired by a company controlled by GTI in January 2019. Shiquanmeiwei is also included in Aotao in 2019 and 2020. ** Hanyuan was a subsidiary of the Group as in 2019 and 2020. In December 2021, the Group disposed 5% of the equity interests of Hanyuan and Hanyuan became equity investee of the Group. 20. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (a) Related party balances Due from related parties: As of December 31, 2020 2021 2021 RMB RMB USD Current: GTI — 206,256,382 32,366,128 Aotao 122,719 65,206,135 10,232,265 Beifu HK — 26,127,660 4,100,000 Yibon 9,101,161 8,330,198 1,307,190 Hanyuan — 3,406,100 534,491 Napa 500,000 500,000 78,461 JYHM 46,991 481,227 75,515 Getao — 112,158 17,600 9,770,871 310,419,860 48,711,650 Amounts due from GTI, Aotao and Beifu HK mainly comprised of loans maturing in one year. On May 16, 2022, GTI has entered in an agreement with GHG to settle these amounts with 100% equity interests of Da Niang Dumplings business and 83.9% equity interests of Bellagio Café business (Note 23). 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. Due to related parties: As of December 31, 2020 2021 2021 RMB RMB USD Current: Yibon 1,995,465 6,602,643 1,036,099 Napa 1,120,826 2,868,685 450,159 Da Niang Group 54,000 31,307 4,913 JYHM 27,962 27,992 4,392 3,198,253 9,530,627 1,495,563 Amount due to Yibon comprised of receipts on behalf of Yibon which were unsecured, interest free and repayable upon demand. Amount due to Napa comprised of the payable for purchase from Napa which were unsecured, interest free, and repayable upon demand. 20. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) (b) Related party transactions During the years ended December 31, 2019, 2020 and 2021, related party transactions consisted of the following: Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Loan to Aotao (167,279,750) (479,356,500) (186,051,400) (29,195,524) Repayment from Aotao 157,279,750 499,421,550 121,000,000 18,987,540 Advertising service from Aotao — (3,920,000) (6,473,400) (1,015,818) Interest income from Aotao 1,316,854 2,316,856 — — Franchise management fee to Aotao (24,941) (41,867) (49,648) (7,791) Loan to Da Niang Group (274,800,000) (40,000,000) (39,800,000) (6,245,488) Repayment from Da Niang Group 274,800,000 40,000,000 39,800,000 6,245,488 Interest income from Da Niang Group 875,315 352,882 — — Service purchased from Da Niang Group (339,121) (724,045) (221,389) (34,741) Sublease revenue from Da Niang Group — 36,000 27,000 4,237 Sublease revenue from JYHM 385,355 284,179 261,392 41,018 Service purchased from JYHM (18,418) (40,000) (667,751) (104,785) Advance from JYHM 312,141 — — — Loan to GTI (192,558,675) — (206,256,382) (32,366,127) Repayment from GTI 184,134,046 8,424,629 — — Interest income from GTI 907,880 — — — Purchase from Napa (3,576,659) (2,059,566) (2,547,178) (399,708) Revenue from Napa 2,358,491 — — — Loan to Yibon — (9,000,000) (3,000,000) (470,766) Repayment from Yibon — — 3,750,000 588,457 Franchised revenue from Yibon 681,239 852,287 1,251,888 196,449 Interest income from Yibon — 18,667,117 544,352 85,421 Loan to Beifu HK — — (169,511,160) (26,600,000) Repayment from Getao on behalf of Beifu HK — — 143,383,500 22,500,000 Loan to Hanyuan — — (3,406,100) (534,491) Service purchased form Bellagio — — (367,804) (57,716) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. COMMITMENTS AND CONTINGENCIES Operating lease commitments As lessee The Group has entered into lease agreements for business office and certain hotels which it operates. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable operating lease agreements as of December 31, 2021 were as follows: Year Ended December 31, 2021 2021 RMB USD 2022 242,184,649 38,004,056 2023 245,430,752 38,513,441 2024 237,485,118 37,266,597 2025 227,387,087 35,681,996 2026 221,263,039 34,720,999 Thereafter 1,544,810,968 242,414,551 Total 2,718,561,613 426,601,640 As lessor The Group subleases its leased assets under operating lease arrangements for terms ranging from one As of December 31, 2021, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2021 2021 RMB USD 2022 76,370,033 11,984,125 2023 69,781,327 10,950,213 2024 63,727,168 10,000,183 2025 60,375,233 9,474,192 2026 55,245,491 8,669,223 Thereafter 226,933,574 35,610,830 Total 552,432,826 86,688,766 21. COMMITMENTS AND CONTINGENCIES (CONTINUED) Litigation and contingencies The Company and its operations from time to time are, and in the future may be, parties to or targets of lawsuits, claims, investigations, and proceedings, including but not limited to non-compliance respect to licenses and permits, franchise agreements and lease contracts, which are handled and defended in the ordinary course of business. The Group may be unable to estimate the reasonably possible loss or a range of reasonably possible losses until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, or the progress of settlement negotiations. The Company accrues a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 22. EARNINGS PER SHARE Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 442,718,263 261,344,391 117,438,250 18,428,624 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 67,315,727 68,286,954 68,286,954 68,286,954 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 34,762,909 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings — basic and diluted: To Class A Shares 291,950,431 173,182,301 77,821,553 12,211,900 To Class B Shares 150,767,832 88,162,090 39,616,697 6,216,724 Basic and diluted earnings per share: To Class A Shares 4.34 2.54 1.14 0.18 To Class B Shares 4.34 2.54 1.14 0.18 In January 2020, the Company issued 870,908 Class A ordinary shares as a portion of purchase consideration for the acquisition of Urban Hotel Group, are included in the computation of basic and diluted earnings per shares for the year ended December 31, 2020 upon the completion of the acquisition of Urban Hotel Group. The Group did not include share options in the computation of diluted earnings per share for the years ended December 31, 2019, 2020 and 2021 because those share options were anti-dilutive for earnings per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. SUBSEQUENT EVENTS On May 13, 2022, the Company announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$20 million worth of its outstanding (i) American depositary shares (“ADSs”), each representing one Class A ordinary share, and/or (ii) Class A ordinary shares over the next 12 months. Subsequent to December 31, 2021, the Group made new loans of RMB162million (USD25.4million) to GTI and its subsidiaries, and these companies repaid RMB42million (USD6.6million). As of May 16, 2022, amounts due from GTI and its subsidiaries amounted to RMB403.5 million (USD63.1 million), and the amount due to GTI was RMB3.7 million (USD0.6 million). On May 16, 2022, the Company entered into a definitive agreement (the “Sale and Purchase Agreement”) to acquire Da Niang Dumplings and Bellagio, two leading restaurant chain businesses in China (collectively, the “Target Businesses”), from GTI, the Company’s controlling shareholder, and a letter agreement (the “Letter Agreement”) in relation to the Sale and Purchase Agreement. Pursuant to the Sale and Purchase Agreement, the Company will acquire all of the issued and outstanding shares in Gen-Spring Limited, which at closing will own (i) all of the issued and outstanding equity interests in the Da Niang Dumplings business, and (ii) approximately 83.9% of the issued and outstanding equity interests in the Bellagio business, for an aggregate purchase price equal to the USD equivalent of RMB399.8 million (the “Proposed Acquisition”). Upon closing, GTI and its subsidiaries will fully settle all outstanding amounts due to the Company and from the Company aforementioned above in lieu of receiving consideration for the purchase price to be paid by the Company (“Consideration”). The board of directors of the Company formed a special committee (the “Special Committee”) consisting solely of independent directors to consider the Proposed Acquisition. With the assistance of its own independent financial and legal advisors, the Special Committee assessed the Proposed Acquisition and conducted arm's-length negotiations with GTI in relation to the Proposed Acquisition. The Special Committee has received from its independent financial advisor a written opinion to the effect that the Consideration is fair, from a financial point of view, to the Company. Acting upon the unanimous recommendation of the Special Committee, the board of directors approved the Proposed Acquisition. The closing of the Proposed Acquisition is subject to the satisfaction or waiver of customary closing conditions. Management and the directors of the Group have assessed that it is probable that the waiver of the above conditions will be obtained, and currently expects that the closing will occur in the second half of 2022. As the Group and the Target Businesses are under the common control of GTI before and after the Proposed Acquisition, management expects to account for the acquisition as a common control transaction in a manner similar to the pooling-of-interests method. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2020 2021 2021 RMB RMB USD ASSETS Current assets Cash and cash equivalents 193,351,177 22,609,979 3,547,999 Investments in equity securities 65,420,098 59,114,452 9,276,347 Amounts due from subsidiaries 14,683,443 113,057,771 17,741,232 Amounts due from a related party — 202,502,545 31,777,068 Other current assets 1,356,058 — — Total current assets 274,810,776 397,284,747 62,342,646 Non-current assets: Investments in subsidiaries 1,852,091,157 1,977,459,895 310,306,609 Equity securities with readily determinable fair values 236,812,139 39,852,428 6,253,716 TOTAL ASSETS 2,363,714,072 2,414,597,070 378,902,971 LIABILITIES AND EQUITY Current liabilities: Dividends payable — 40,999,458 6,433,710 Short-term bank loans — 30,200,000 4,739,039 Long-term bank loans — 121,800,000 19,113,078 Amounts due to subsidiaries 248,360,177 350,308,050 54,970,977 Total current liabilities 248,360,177 543,307,508 85,256,804 Non-current liabilities: Other long-term liabilities 12,322,640 13,604,452 2,134,835 Total liabilities 260,682,817 556,911,960 87,391,639 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000, 400,000,000 and 400,000,000 shares authorized as of December 31, 2019, 2020 and 2021; 67,416,046, 68,286,954 and 68,286,954 shares issued outstanding 2021 222,587,070 222,587,070 34,928,768 Class B ordinary shares (USD0.50 par value per share; 100,000,000 , 100,000,000 and 100,000,000 shares authorized as of December 31, 2019, 2020 and 2021; 34,762,909, 34,762,909 and 34,762,909 shares issued outstanding 2021 115,534,210 115,534,210 18,129,839 Additional paid-in capital 1,149,280,404 1,151,384,306 180,677,323 Retained earnings 570,042,924 326,298,618 51,203,374 Accumulated other comprehensive income 45,586,647 41,880,907 6,572,028 Total Shareholders’ Equity 2,103,031,255 1,857,685,111 291,511,332 TOTAL LIABILITIES AND EQUITY 2,363,714,072 2,414,597,070 378,902,971 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD General and administrative expenses (33,538,433) (9,967,834) (18,917,120) (2,968,509) interest income 5,970,063 8,173 173,316 27,197 Interest expense (646,315) — — — Gains on investments in equity securities 6,473,358 (11,392,623) 11,519,174 1,807,610 Share of profit in subsidiaries, net (Note a) 464,459,590 282,696,675 124,662,880 19,562,326 Income before tax and net income 442,718,263 261,344,391 117,438,250 18,428,624 Other comprehensive income, net of tax - Foreign currency translation adjustments 2,933,162 (19,714,207) (6,497,403) (1,019,584) Unrealized gains on available-for-sale investments, net of reclassification — — 2,791,663 438,073 Comprehensive income 445,651,425 241,630,184 113,732,510 17,847,113 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of cash flows Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Operating activities: Net income 442,718,263 261,344,391 117,438,250 18,428,624 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Share-based compensation 26,490,395 232,558 2,464,762 386,775 Losses and impairment (Gains) on equity securities held (6,473,358) 11,392,623 (11,519,174) (1,807,610) Share of profit in subsidiaries, net (464,459,590) (282,696,675) (124,662,880) (19,562,326) Changes in operating assets and liabilities: Other current assets 1,700,582 1,060,670 — — Bad debt — — 1,356,058 212,795 Amounts due from subsidiaries (6,271,868) (8,411,575) (145,361) (22,810) Amounts due to subsidiaries (2,166,524) 243,436,001 (2,552,126) (400,484) Other long-term liabilities 7,475,856 4,846,781 1,281,813 201,144 Net cash provided by (used in) operating activities (986,244) 231,204,774 (16,338,658) (2,563,892) Investing activities: Payment on behalf of subsidiaries — — (98,589,828) (15,470,895) Payment for acquisitions (52,903,471) (6,041,736) Investment to subsidiaries (2,938,656) (2,938,656) — — Proceeds from disposal of equity securities and dividends received from equity securities — — 210,930,633 33,099,619 Purchases of investments in equity securities (247,415,003) (65,114,997) — — Loan to a related party (192,558,675) — (368,750,648) (57,865,024) Repayment from a related party 26,672,779 8,424,629 143,383,500 22,500,000 Net cash used in investing activities (469,143,026) (65,670,760) (113,026,343) (17,736,300) Financing activities: Proceeds from bank loans — — 152,000,000 23,852,117 Payment for initial public offering costs — — — — Distribution to the shareholders (note 1) (226,951,236) — (195,683,098) (30,706,948) Net cash used in financing activities (226,951,236) — (43,683,098) (6,854,831) Effect of exchange rate changes on cash and cash equivalents and restricted cash (2,355,347) 5,679,523 2,306,901 362,003 Net increase (decrease) in cash and cash equivalents and restricted cash (699,435,853) 171,213,537 (170,741,198) (26,793,020) Cash and cash equivalents and restricted cash at beginning of the year 721,573,493 22,137,640 193,351,177 30,341,019 Cash and cash equivalents and restricted cash at end of the year 22,137,640 193,351,177 22,609,979 3,547,999 24. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) (a) Basis of presentation In the Company-only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception. The Company records its investment in its subsidiary under the equity method of accounting as prescribed in ASC 323-10 Investment-Equity Method and Joint Ventures Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted and as such, these Company-only financial statements should be read in conjunction with the Group’s consolidated financial statements. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of Consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIEs for which the Company is the ultimate primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. |
Variable Interest Entities | Variable Interest Entities The Group evaluates the need to consolidate certain variable interest entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company is deemed as the primary beneficiary of and consolidates variable interest entities when the Company has the power to direct the activities that most significantly impact the economic success of the entities and effectively assumes the obligation to absorb losses and has the rights to receive benefits that are potentially significant to the entities. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, fair value measurement and impairment of investments, the useful lives and impairment of property and equipment and intangible assets, valuation allowance for deferred tax assets, impairment of goodwill, average life of memberships, estimates involved in the accounting for its membership program, contingent liabilities, purchase price allocation and share-based compensation arrangements. |
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 guarantee for lease agreement and the guarantees for prepaid cards. |
Long-term Time Deposits | Long-term time deposits Long-term time deposits comprise of deposits placed with certain bank with a maturity of one |
Investments | Investments Short-term investments 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. RMB80,000,000 (USD12,553,746) of which was pledged with banks as security in relation to the guarantee for the short-term bank loans and restricted to use (Note 11). Investments in equity securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 321, Investments – Equity Securities 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 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Investments (continued) Long-term investments (continued) Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in net income in the consolidated statements of comprehensive income. The realized gains of RMB4,674,446, RMB4,746,032 and RMB1,564,892 (USD245,566) were recognized for the years ended December 31, 2019, 2020 and 2021, respectively. For the year ended December 31, 2019, there were unrealized gains of RMB6,473,358. For the year ended December 31, 2020 and 2021, there were unrealized losses of RMB9,247,254 and RMB14,058,448 (USD2,206,077) respectively. 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 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The available-for-sale debt investment is convertible debt instruments issued by a private company that is redeemable at the Group’s option, which are measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of these debt investments are recognized in other comprehensive income. An impairment loss on the available-for-sale debt investments, if any, is recognized in earnings when the decline in value is determined to be other-than-temporary. The interest income of nil, RMB18,667,117 and RMB544,352 (USD 85,421) was recognized in the earnings for the years ended December 31, 2019, 2020 and 2021, respectively. The fair value change of RMB2,791,663 (USD438,073) was recognized in the other comprehensive income during the year ended December 31, 2021. No impairment or significant fair value changes were recorded for these investments during any of other presented periods. |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for doubtful accounts Trade receivables mainly consist of franchise fees receivable, rental amounts due from individual and corporate customers and travel agents, and sublease rental receivables due from third-party merchandisers, which are recognized and carried at the original invoice amounts less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific franchisees, customers, and merchandisers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories Inventories mainly consist of small appliances, bedding and daily consumables. Small appliances and bedding are stated at cost, less accumulated amortization, and are amortized over their estimated useful lives, generally one year, from the time they are put into use. Daily consumables are expensed when used. |
Loans Receivable | Loans receivable Loans receivable are carried at the original loan principal and accrued interest based on the contract rate, less an allowance for uncollectible accounts, as appropriate. The Group classified loans receivable as long-term or short-term investments according to their contractual maturity. The allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. As of December 31, 2020 and 2021, all loans receivable which are past due are nonaccrual |
Property and Equipment, Net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive income as the difference between the net sales proceeds and the carrying amount of the underlying asset. |
Intangible Assets | Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion, and are measured at fair value upon acquisition. Favorable leases from such business combination transactions are amortized over the remaining operating lease term. Reacquired rights represent the franchise right the Group previously granted to the acquiree through franchise agreements and are amortized over the next renewal date in the applicable agreement. Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5-10 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The trademarks acquired in the acquisition of Argyle Group and Urban Hotel Group (Note 3) can be renewed without substantial obstacles. As a result, the useful life is determined to be indefinite. The Group evaluates the trademark at the end of each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Impairment is tested annually or more frequently if events or changes in circumstances indicate that it might be impaired. |
Business Combinations | Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable assets acquired less liabilities assumed of an acquired business. The Group’s goodwill at December 31, 2020 and 2021 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill In accordance with ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment In 2020, the Group elected to choose to bypass the qualitative assessment and proceed directly to perform a quantitative test. In 2019 and 2021, the Group performed a qualitative assessment for its operating unit. No impairment was recorded during any of the presented periods. |
Impairment of Long-lived Assets | Impairment of long-lived assets The Group evaluates impairment of its long-lived assets to be held and used, including property and equipment, definite-lived intangible assets and other non-current assets, when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment-Overall |
Revenue Recognition | Revenue recognition Leased and operated hotel revenues Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Each of these products and services represents an individual performance obligation and, in exchange for these services, the Group receives fixed amounts based on fixed rates or fixed standalone selling price. Revenue is recognized when rooms are occupied, and food and beverages are sold as the respective performance obligations are satisfied. Sublease rental revenues are derived from subleasing partial space of the leased-and-operated hotels to third-parties, which are recognized on a straight-line basis over the contractual lease term. The sublease rental revenue is recorded in leased-and-operated hotels revenue in the consolidated statements of comprehensive income amounted to RMB74,893,930, RMB77,676,665 and RMB74,689,226 (USD11,720,369) for the years ended December 31, 2019, 2020 and 2021, respectively. Franchise and managed hotel revenues The franchise and managed agreement contains the following promised services: ● Intellectual Property (“IP”) license grant the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services include providing services (e.g., property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, etc.) to the franchisees to assist in preparing for the hotel opening. ● System maintenance services include providing standardization hotel property management system (PMS), central reservation system (CRS) and other internet related services. ● Hotel management services include providing day-to-day management services of the hotels for the franchisees. The promises to provide pre-opening services and system maintenance services are not distinct performance obligation because they are attendant to the license of IP. Therefore, the promises to provide pre-opening services and system maintenance services are combined with the license of IP to form a single performance obligation. Hotel management services forms a single distinct performance obligation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition (continued) Franchise and managed hotel revenues (continued) Revenues from franchised-and-managed hotels are derived from franchise agreements where the franchisees are required to pay (i) an initial one-time non-refundable franchise fee, and (ii) continuing franchise fees, which mainly consist of on-going management and service fees based on a certain percentage of the room revenues of the franchised-and-managed hotels and central reservation system (“CRS”) usage fee based on a fixed rate per transaction. For franchised-and-managed hotels, the Group has a performance obligation to provide franchisees a license to its hotel system intellectual property for use of certain of its brand names. The one-time franchise fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. The Group does not consider this advance consideration to include a significant financing component, since it is used to protect the Group from the franchisees failing to adequately complete some or all of its obligations under the contract. The continuing fees represent variable consideration, as the transaction price is based on a percentage of underlying service revenue is recognized by the franchisees’ operations. The Group recognizes continuing franchise fees on a monthly basis over the term of the agreement as those amounts become payable. In addition, the Group designates hotel managers to certain hotels and accounts for hotel manager fees related to the hotels under the franchise program as revenues. Pursuant to the franchise-and-management agreements, the Group charges the franchisees fixed hotel manager fees to compensate the Group for the franchised-and-managed hotel managers’ salaries, social welfare benefits and certain other out-of-pocket expenses as incurred. The hotel manager fee is recognized as revenue on a monthly basis. During the years ended December 31, 2019, 2020 and 2021, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB115,638,242, RMB112,729,886 and RMB131,027,473 (USD20,561,070), respectively. Other Revenues Other revenues are derived from selling of goods through the Company’s online mall and sale of hotel related products to franchisees. Revenues are recognized upon customers’ acceptance. |
Membership Program | Membership Program The Group invites its customers to participate in a membership program with four tiers of membership – E-membership, R-membership, gold membership and platinum membership. A one-time membership fee is charged for new members except for the E-membership. The membership automatically expires after two years in the event of non-usage and is automatically renewed if used at least once within a two-year period. Members enjoy discounts on room rates, priority in hotel reservation, and accumulate membership points for their paid stays, which can be redeemed for membership upgrades, room night awards and other gifts within two years after the points are earned. Membership fees from the Group’s membership program are earned and recognized on a straight-line basis over the expected membership duration of the different membership levels. Such duration is estimated based on the Group’s and management’s experience and is adjusted on a periodic basis to reflect changes in membership retention. The membership duration is estimated to be three 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Membership Program (continued) 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 Starting from May 2016, the accommodation services of the Group are subject to 6% of Value-Added Taxes. The Group is subject to education surtax and urban maintenance and construction tax, on the services provided in the PRC. |
Advertising and Promotional Expenses | Advertising and promotional expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred, and amounted to RMB23,934,351, RMB38,934,867 and RMB22,906,044 (USD3,594,458) for the years ended December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021, the Group received financial subsidies of RMB9,880,735, RMB20,094,745 and RMB16,993,539 (USD2,666,657), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. |
Interest Income and Other, Net | Interest income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. |
Leases | Leases Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2020 and 2021. The Group leases hotel space under certain operating lease agreements. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The excess of rent expense and rent paid, as the case may be for respective leases, is recorded as deferred rent. Rental expenses amounted to RMB81,379,034, RMB122,590,230 and RMB238,493,602 (USD37,424,850) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Income Taxes | Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall 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. |
Foreign Currency Translation and Transactions | Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of PRC subsidiaries of the Company are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Foreign currency translation and transactions (continued) Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. |
Convenience Translation | Convenience translation Translations of amounts from RMB into U.S. dollars into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.3726 on December 31, 2021, 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, 2021, 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value (continued) Assets and Liabilities Measured at Fair Value on a recurring basis Investments in equity securities with readily determinable fair values are measured using quoted market prices, and are recorded at fair values at each balance sheet date. The fair value of the Group’s Investments in wealth management products are measured using the income approach, based on quoted market interest rates of a similar instrument and other significant inputs derived from or corroborated by observable market data. The payable for contingent consideration and the returnable consideration from Urban Hotel Group are based on the achievement of certain financial targets in accordance with the acquisition agreements for the various periods. For the available-for-sale debt investment, the Group uses a combination of valuation methodologies, including income approach and Black-Scholes-Merton valuation model based on the Group’s best estimate, which is determined by using information including but not limited to the future cash flow forecast, discount rate, expected volatility, a discount for lack of marketability, the probability of exit events and the selection of comparable companies. The carrying values of other financial instruments, which consist of cash and cash equivalents, time deposits, accounts receivable, loans receivable, amounts due from related parties, accounts payable and amounts due to related parties are recorded at cost which approximates their fair value due to the short-term nature of these instruments. The Group does not use derivative instruments to manage risks. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value (continued) The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2020 and 2021 on a recurring basis: 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 2020 (Level 1) (Level 2) (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 1,833,421 1,833,421 Short-term investments Investments in wealth management products 201,983,182 201,983,182 Investments in equity securities Equity securities with readily determinable fair value 242,378,696 242,378,696 Long-term investments Equity securities with readily determinable fair value 236,812,140 236,812,140 Available-for-sale debt investment 103,701,474 103,701,474 Accrued expenses and other current liabilities Payables for contingent consideration from acquisition of Urban Hotel Group 525,685 525,685 787,234,598 479,190,836 201,983,182 106,060,580 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2021 (Level 1) (Level 2) (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 5,385,583 5,385,583 Short-term investments Investments in wealth management products 147,458,675 147,458,675 Investments in equity securities Equity securities with readily determinable fair value 157,988,851 157,988,851 Long-term investments Equity securities with readily determinable fair value 39,852,428 39,852,428 Available-for-sale debt investment 106,493,137 106,493,137 457,178,674 197,841,279 147,458,675 111,878,720 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Fair value (continued) Reconciliations of assets and liabilities categorized within Level 3 under the fair value hierarchy are as follows: Payables for Available-for- Returnable contingent sale debt consideration consideration investment December 31, 2020 1,833,421 525,685 103,701,474 Net unrealized fair value increase recognized in earnings 3,552,162 (525,685) — Net unrealized fair value increase recognized in other comprehensive income — — 2,791,663 December 31, 2021 5,385,583 — 106,493,137 December 31, 2021 (USD) 845,115 — 16,711,097 Significant Unobservable Inputs Inputs Inputs As of December As of December Financial Assets Unobservable Input 31, 2020 31, 2021 Available-for-sale debt investments WACC 12 % 12 % Discount for lack of marketability 35 % 34 % Expected volatility 34.5 % 42 % Probability of redeem preferences 100 % 100 % Assets Measured at Fair Value on a non-recurring basis The Group measures equity investments without readily determinable fair value and elected to use the measurement alternative at fair value on a nonrecurring basis, in the cases of an impairment charge is recognized, fair value of an investment is remeasured in an acquisition/a disposal, and an orderly transaction for identical or similar investments of the same issuer was identified. The non-recurring fair value measurements to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. The valuation methodologies involved require management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as volatility of comparable companies and probability of exit events as it relates to liquidation and redemption preferences. Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair Value Fair Value (Level 1) (Level 2) (Level 3) adjustment Impairment RMB RMB RMB RMB RMB RMB Fair value measurements on a non-recurring basis As of December 31, 2020 Long-term investments – 3,523,212 3,523,212 5,000,000 As of December 31, 2021 Long-term investments – 6,233,255 6,233,255 2,710,043 — |
Comprehensive Income | Comprehensive income Comprehensive income is defined as the increase in equity of the Group during a year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive gain of the Group includes the foreign currency translation adjustments and unrealized gains on available-for-sale investments. |
Comparative information | Comparative information Certain of the prior year comparative figures have been reclassified to conform to the current year’s presentation. |
Segment Reporting | Segment reporting The Group operates and manages its business as a single segment. The Group’s chief operating decision maker has been identified as the CEO of the Group. The results of operations of the Group are regularly reviewed by the Chief Executive Officer on a consolidated basis. The Group primarily generates its revenues from customers in the PRC. Accordingly, no geographical segments are presented. Substantially all of the Group’s long-lived assets are located in the PRC. |
Employee Benefits | Employee benefits The full-time employees of the Group’s PRC subsidiaries participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary of the Group to make contributions to the government for these benefits beyond the contribution made. The total amounts for such employee benefits, which were expensed as incurred, RMB28,700,397, RMB25,666,575 and RMB36,617,173 (USD5,746,033) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Share-based Compensation | Share-based compensation Share based awards granted to employees are accounted for under ASC 718, “Compensation—Stock Compensation”, which requires that such equity awards granted to employees be measured based on the grant date fair value and recognized as compensation expense a) immediately at grant date if no vesting conditions are required; or b) using accelerated method, net of estimated forfeitures, over the requisite service period, which is the vesting period. |
Earnings Per Share | Earnings per share Class A and Class B ordinary shares have the same rights with regard to dividends and distributions upon liquidation of the Group. Net income is allocated on a pro rata basis to the Class A and Class B ordinary shares to the extent that each class shares in income for the period. Basic EPS for each class of ordinary shares is computed by dividing net income attributable to that class by the weighted average number of ordinary shares outstanding of that class for the period. Diluted earnings per share is calculated by dividing net income attributable to the Class A and Class B ordinary shares as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti-dilutive. Contingently issuable shares relating to shares to be issued as a part of purchase consideration associated with business combinations, are included in the computation of basic earnings per share only when there is no circumstance under which those shares would not be issued. Contingently issuable shares are included in the denominator of the diluted EPS calculation as of the beginning of the period or as of the inception date of the contingent share arrangement, if later, only when dilutive and when all the necessary conditions have been satisfied as of the reporting period end. |
Concentration of Credit Risk | Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related and loans receivable. As of December 31, 2020, the Group had RMB434,229,811, RMB196,456,442, RMB185,772 and RMB1,183,983 held in cash and bank deposits by entity located in the Mainland China, Cayman Island, Hong Kong and Japan, respectively. As of December 31, 2021, the Group had RMB283,847,034 (USD44,541,794), RMB31,973,714 (USD5,017,373), RMB72,907 (USD11,441) and RMB1,722,251 (USD270,259) held in cash and bank deposits by entity located in the Mainland China, Cayman Island, Hong Kong and Japan, respectively. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Group conducts credit evaluations on its customers and generally does not require collateral or other security from such customers. The Group periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. 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, 2020 and 2021, there were RMB394,948,617 and RMB965,475,805 (USD151,504,222) of loans receivable outstanding. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. |
Currency Convertibility Risk | Currency Convertibility Risk Substantially all of the Group’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized by the PRC government to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. |
Foreign Currency Exchange Rate Risk | Foreign Currency Exchange Rate Risk The functional currency of the Company is USD, and the reporting currency is RMB. Since July 21, 2005, RMB has been permitted by the PRC government to fluctuate within a managed band against a basket of certain foreign currencies. The depreciation of the USD against the RMB was approximately 2.34% in 2021. Any significant revaluation of RMB may materially and adversely affect the cash flows, operating results and financial position of the Group. As a result, an appreciation of RMB against USD would result in foreign currency translation loss when translating the net assets of the Group from USD into RMB. For the years ended December 31, 2019 and 2020, the net foreign currency translation gain resulting from the translation from USD to RMB reporting currency recorded in other comprehensive income was RMB2,933,162, loss recorded RMB19,714,207, respectively. For the years ended December 31, 2021, the net foreign currency translation loss recorded RMB6,497,403 (USD1,019,584). |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements As a company with less than USD1.07 billion in revenue for the last fiscal year, the company qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Company has adopted the extended transition period. Adopted Accounting Standards The Group adopted ASU No. 2018-13, Fair Value Measurement (Topic 820 ): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases Leases Leases (Topic 842): Targeted Improvements Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) The Group will adopt new leasing standard using the modified retrospective method and will not restate comparable periods. The Group will elect the package of practical expedients permitted under the transition guidance, which allow the Group to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Group will also elect the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less. Certain operating leases related to buildings and offices will be subject to ASU 2016-02 and right-of-use assets and lease liabilities will be recognized on the Group’s consolidated balance sheet. The Group currently believes the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Group’s balance sheet for certain in-scope operating leases. The Group does not expect any material impact on net assets and the consolidated statement of comprehensive income as a result of adopting the new standard. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Accounting Standards Not Yet Adopted (continued) In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities Investments-Equity Method and Joint Ventures Derivatives and Hedging In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Group's Major Direct and Indirect Subsidiaries of Investments | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) The Company and its subsidiaries are hereinafter referred to as the Group. The principal business activities of the Group are to develop leased-and-operated and franchised-and-managed economy hotels under the “GreenTree” brand in the PRC. The Group’s major direct and indirect invested subsidiaries consist of the following as of December 31, 2021: 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 Argyle Beijing 60 % April 1, 2019 PRC Hotel management Shandong Xinghui 70 % November 30, 2019 PRC Hotel management Shanghai Sipei Technology Co., Ltd. (“Shanghai Sipei”) 100 % October 20, 2011 PRC Information technology services |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and any recorded impairment. Depreciation of property and equipment is provided using the straight-line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years |
Amortization of Intangible Assets, Estimated Useful Lives | Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years or indefinite life Technology 10 years Network rights 10 years Purchased software 5-10 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value | The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2020 and 2021 on a recurring basis: 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 2020 (Level 1) (Level 2) (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 1,833,421 1,833,421 Short-term investments Investments in wealth management products 201,983,182 201,983,182 Investments in equity securities Equity securities with readily determinable fair value 242,378,696 242,378,696 Long-term investments Equity securities with readily determinable fair value 236,812,140 236,812,140 Available-for-sale debt investment 103,701,474 103,701,474 Accrued expenses and other current liabilities Payables for contingent consideration from acquisition of Urban Hotel Group 525,685 525,685 787,234,598 479,190,836 201,983,182 106,060,580 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2021 (Level 1) (Level 2) (Level 3) Other assets Returnable consideration from acquisition of Urban Hotel Group 5,385,583 5,385,583 Short-term investments Investments in wealth management products 147,458,675 147,458,675 Investments in equity securities Equity securities with readily determinable fair value 157,988,851 157,988,851 Long-term investments Equity securities with readily determinable fair value 39,852,428 39,852,428 Available-for-sale debt investment 106,493,137 106,493,137 457,178,674 197,841,279 147,458,675 111,878,720 |
Reconciliations of Assets And Liabilities Under Fair Value Hierarchy | Reconciliations of assets and liabilities categorized within Level 3 under the fair value hierarchy are as follows: Payables for Available-for- Returnable contingent sale debt consideration consideration investment December 31, 2020 1,833,421 525,685 103,701,474 Net unrealized fair value increase recognized in earnings 3,552,162 (525,685) — Net unrealized fair value increase recognized in other comprehensive income — — 2,791,663 December 31, 2021 5,385,583 — 106,493,137 December 31, 2021 (USD) 845,115 — 16,711,097 |
Summary of Unobservable Inputs | Inputs Inputs As of December As of December Financial Assets Unobservable Input 31, 2020 31, 2021 Available-for-sale debt investments WACC 12 % 12 % Discount for lack of marketability 35 % 34 % Expected volatility 34.5 % 42 % Probability of redeem preferences 100 % 100 % |
Assets Measured at Fair Value on Non-Recurring Basis | Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair Value Fair Value (Level 1) (Level 2) (Level 3) adjustment Impairment RMB RMB RMB RMB RMB RMB Fair value measurements on a non-recurring basis As of December 31, 2020 Long-term investments – 3,523,212 3,523,212 5,000,000 As of December 31, 2021 Long-term investments – 6,233,255 6,233,255 2,710,043 — |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
2021 Business Combinations | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | 2021 Amortization Period Property and equipment 92,075 10 years Intangible assets Trademark 36,896,000 10 years Goodwill 20,588,461 Noncontrolling interest (34,576,536) Total 23,000,000 |
Argyle Group | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | 2019 Amortization Period Current assets 3,777,860 Property and equipment 1,013,378 3 - 17 years Intangible assets Purchased software 669,206 4 - 7 years Trademark 230,500,000 Indefinite life Goodwill 42,198,903 Current liabilities (7,618,079) Deferred tax liabilities (57,625,000) Non current liabilities (15,642,000) Noncontrolling interest (70,455,096) Total 126,819,172 |
Urban Hotel Group | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | 2019 Amortization Period Current assets (i) 50,482,296 Property and equipment 6,913,189 3 - 10 years Intangible assets Favorable leases 20,100,000 Remaining lease terms Trademark 212,800,000 Indefinite life Purchased software 34,739 2 years Deferred tax assets 4,000,000 Other assets 4,537,000 Goodwill 49,037,577 Current liabilities (19,831,341) Non current liabilities (11,517,000) Deferred tax liabilities (58,225,000) Noncontrolling interest (67,981,964) Total 190,349,496 (i) Current assets acquired primarily included cash and cash equivalent of RMB 28,162,864 , other receivables of RMB 16,928,966 and accounts receivable of RMB 5,116,320 . |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Type of Services | The following tables present our revenues disaggregated by the type of the services: Years Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Leased and operated hotels revenues 253,420,676 227,074,041 391,960,031 61,507,082 Franchise and managed hotels revenues 831,340,340 677,480,818 774,359,348 121,513,879 Initial franchise fee 54,930,266 61,051,369 76,263,574 11,967,419 Continuing franchise fees 776,410,074 616,429,449 698,095,774 109,546,460 Others 7,032,119 25,455,237 39,826,579 6,249,659 Total 1,091,793,135 930,010,096 1,206,145,958 189,270,620 |
Summary of Contract Liabilities | Payments received in advance of performance under the contract are classified as current or non-current contract liabilities on the Group’s consolidated balance sheets and are recognized as revenue as the Group performs under the contract. Years Ended December 31, 2020 2021 2021 RMB RMB USD Advance from customers 34,305,508 39,773,738 6,241,367 Deferred revenue-current 221,314,997 215,147,975 33,761,412 Deferred revenue-non current 361,901,369 314,472,488 49,347,596 Total contract liabilities 617,521,874 569,394,201 89,350,375 |
Schedule of Components of Deferred Revenue | The deferred revenue balances above, as of December 31, 2020 and 2021 were comprised of the following: Years Ended December 31, 2020 2021 2021 RMB RMB USD Initial fees received from franchisees owners 280,478,697 248,406,284 38,980,367 Cash received for membership fees and not recognized as revenue 215,009,108 186,976,973 29,340,767 Cash received for prepaid card and sublease 48,137,090 47,604,011 7,470,108 Deferred revenue related to the membership program 39,591,471 46,633,195 7,317,766 Total contract liabilities 583,216,366 529,620,463 83,109,008 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Summary of Loans Receivable, Net | Loans receivable, net is comprised of the following: As of December 31, 2020 2021 2021 RMB RMB USD Loans receivable, current portion Franchisees 191,687,640 308,016,920 48,334,576 Third parties 48,556,989 45,216,904 7,095,519 Less: bad debt provision (18,000,000) (105,703,244) (16,587,145) Total 222,244,629 247,530,580 38,842,950 Loans receivable, non-current portion Franchisees 121,460,977 294,150,438 46,158,623 Third parties 24,243,011 9,000,000 1,412,296 Less: bad debt provision — (12,182,758) (1,911,741) Total 145,703,988 290,967,680 45,659,178 |
Schedule of aging of past-due loans receivables | The following table presents the aging of past-due gross loans receivable as of December 31, 2020 and 2021: 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB December 31, 2020 37,251,907 51,957,304 6,673,574 15,000,000 110,882,786 7 to 12 1 to 3 months 4 to 6 months months past Over 1 year past due past due due past due Total RMB RMB RMB RMB December 31, 2021 42,412,387 25,028,613 33,136,695 39,751,902 140,329,597 December 31, 2021 (USD) 6,655,429 3,927,535 5,199,871 6,237,941 22,020,776 |
Schedule of movement of allowance for loans receivable | 2020 2021 RMB RMB USD Balance of the beginning of the year 15,000,000 18,000,000 2,824,593 Provision 3,000,000 99,886,003 15,674,293 Balance of the end of the year 18,000,000 117,886,003 18,498,886 Evaluated for impairment on an individual basis 18,000,000 117,886,003 18,498,886 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | As of December 31, 2020 2021 2021 RMB RMB USD Buildings 544,298,466 626,908,935 98,375,692 Leasehold improvements 384,266,061 630,691,571 98,969,270 Furniture, fixtures and equipment 77,605,170 93,440,638 14,662,875 Motor vehicles 2,909,387 3,204,381 502,837 Total 1,009,079,084 1,354,245,525 212,510,674 Less: Accumulated depreciation (353,833,524) (436,314,189) (68,467,217) 655,245,560 917,931,336 144,043,457 Construction in progress 13,360,101 127,424,929 19,995,752 Property and equipment, net 668,605,661 1,045,356,265 164,039,209 |
Schedule of Depreciation Expense | For the years ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Hotel operating costs 31,671,274 53,850,494 80,575,644 12,644,077 General and administrative costs 5,669,030 5,869,041 9,041,672 1,418,836 Total 37,340,304 59,719,535 89,617,316 14,062,913 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2020 2021 2021 RMB RMB USD Intangible assets with indefinite life: Trademark 443,300,000 443,300,000 69,563,442 Intangible assets with definite life: Trademark 4,724,493 41,620,493 6,531,164 Technology 4,200,000 4,200,000 659,072 Network rights 390,317 390,317 61,249 Purchased software 15,227,737 15,429,484 2,421,223 Reacquired rights 2,531,418 2,531,418 397,235 Favorable leases 42,095,848 42,095,848 6,605,757 Others 435,185 435,185 68,290 Total 512,904,998 550,002,745 86,307,432 Less: Accumulated amortization (21,391,925) (29,885,266) (4,689,650) Total. 491,513,073 520,117,479 81,617,782 |
Schedule of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB USD 2022 9,296,919 1,458,889 2023 8,964,793 1,406,772 2024 8,830,200 1,385,651 2025 8,402,997 1,318,614 2026 8,153,147 1,279,407 Thereafter 33,169,422 5,205,007 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 were as follows: For the years ended December 31, 2020 2021 2021 RMB RMB USD Balance as of January 1 100,078,236 100,231,487 15,728,507 Acquisitions 153,251 20,588,461 3,230,779 Balance as of December 31 100,231,487 120,819,948 18,959,286 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Investments [Abstract] | |
Schedule of Long-Term Investments | As at December 31, 2020 and 2021, long-term investments consisted of the following: As of December 31, 2020 2021 2021 RMB RMB USD Equity method investments Shanghai Wiselong Enterprise Management Co., Ltd. 24,489,092 25,424,106 3,989,597 Other 1,000,000 10,787,859 1,692,850 Equity securities with readily determinable fair values China Gingko Education Group Company Limited 56,354,913 39,852,428 6,253,716 Zhejiang New Century Hotel Management Co., Ltd. 180,457,226 — — Equity securities without readily determinable fair values Other 3,523,212 6,233,255 978,134 Available-for-sale debt investment Yibon 103,701,474 106,493,137 16,711,097 Total 369,525,917 188,790,785 29,625,394 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets | |
Schedule of Other Assets | As of December 31, 2020 2021 2021 RMB RMB USD Current Receivable from on-line payment platforms 40,831,573 53,983,324 8,471,162 Interest receivable 5,298,869 49,347,369 7,743,679 Deposits 5,262,478 11,168,379 1,752,562 Advance to suppliers 5,581,884 5,206,428 817,002 VAT recoverable — 5,009,469 786,095 Others 20,674,990 18,022,194 2,828,076 Total 77,649,794 142,737,163 22,398,576 Non-current Acquisition deposits 8,216,700 6,650,200 1,043,561 Rental deposit 7,410,000 56,962,580 8,938,672 Interest receivable 33,772,617 5,737,675 900,366 Purchase deposits for buildings — 197,723,649 31,027,156 Returnable consideration from the acquisition of Urban Hotel Group 1,833,421 5,385,583 845,115 VAT recoverable — 10,774,251 1,690,715 Others 15,402,656 46,132,402 7,239,181 Total 66,635,394 329,366,340 51,684,766 |
Bank Loans (Tables)
Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Bank Loans | |
Schedule of principal payments on long-term borrowings | Year ending December 31, RMB USD 2022 50,200,000 7,877,475 2023 141,800,000 22,251,514 2024 160,000,000 25,107,492 Total 352,000,000 55,236,481 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2020 2021 2021 RMB RMB USD Payable to franchisees 145,807,668 155,853,992 24,456,892 Business taxes and related tax surcharge 78,300,960 111,076,878 17,430,387 Accrued rental 20,675,146 27,957,242 4,387,101 Construction payable 11,902,821 13,888,585 2,179,422 Deposits payable 15,342,758 17,269,154 2,709,907 Payable for business combination and asset acquisitions 309,500 15,342,675 2,407,601 Accrued utilities 2,307,672 1,177,631 184,796 Others 26,050,148 38,715,905 6,075,370 Total 300,696,673 381,282,062 59,831,476 |
Hotel Operating Costs (Tables)
Hotel Operating Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operating Expenses [Abstract] | |
Schedule Of Hotel Operating Costs | Hotel operating costs include all direct costs incurred in the operation of the leased-and-operated hotels and cost of providing franchise services and consist of the following: Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Rental 79,597,408 118,295,183 235,568,383 36,965,820 Utilities 19,119,300 15,372,385 25,782,913 4,045,902 Personnel cost 38,277,298 46,941,757 82,114,394 12,885,540 Depreciation and amortization 34,727,153 53,850,494 80,575,644 12,644,077 Consumable, food and beverage 32,337,115 43,257,796 69,495,702 10,905,392 Costs of hotel manager of franchised-and-managed hotels 96,565,044 91,664,745 114,779,305 18,011,378 Other costs of franchised-and-managed hotels 29,192,923 22,985,917 26,123,578 4,099,359 Others 9,010,238 9,291,029 16,936,986 2,657,782 Total 338,826,479 401,659,306 651,376,905 102,215,250 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Share Options | The fair value of share options was estimated using the following significant assumptions: Granted in 2019 Granted in 2021 Risk-free interest rate 1.60%-2.60 % 0.92 % Volatility 35.66%-37.98 % 40 % Dividend yield 2.5 % 2.5 % Life of option 6 years 6 years |
Summary of Share Option Activity Under Option Plans | The following table summarized the Group’s share option activity under the option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Life Value USD Years USD Share options outstanding at December 31, 2020 991,000 12.27 3.13 1,257,200 Granted 6,000 12.00 — — Exercised — — — — Forfeited (4,500) 12.27 — — Expired — — — — Share options outstanding at December 31, 2021 992,500 12.27 2.14 — Vested and expected to vest at December 31, 2021 992,500 12.28 2.14 — Exercisable as of December 31, 2021 742,125 12.24 2.14 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Current and Deferred Components of Income Tax Expense | The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Current tax 197,233,190 122,931,256 105,353,756 16,532,303 Deferred tax (7,665,373) (12,472,054) 3,535,126 554,739 Total 189,567,817 110,459,202 108,888,882 17,087,042 |
Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31, 2019 2020 2021 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution 3 % 0 % 10 % Effect of international rate difference 0 % 1 % 1 % Effect of preferential tax rate (5) % 0 % (7) % Tax effect of expenses that are not deductible in determining taxable profit 7 % 5 % 20 % Effective tax rate 30 % 31 % 49 % |
Components of Deferred Income Tax Assets and Liabilities | The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2019 2020 and 2021 are as follows: As of December 31, 2020 2021 2021 RMB RMB USD Deferred tax assets: Net loss carryforward 22,229,252 53,089,828 8,330,952 Deferred revenue 132,881,621 115,049,834 18,053,829 Deferred rent 7,499,776 17,692,412 2,776,326 Bad debt expenses 7,622,390 30,328,801 4,759,251 Accrued expenses 15,971,223 17,687,519 2,775,558 Unrealised losses from equity securities 5,213,960 7,534,182 1,182,278 Valuation allowance (24,186,707) (59,426,713) (9,325,349) Total deferred tax assets 167,231,515 181,955,863 28,552,845 Deferred tax liabilities: Depreciation of property and equipment (3,990,387) (6,099,754) (957,185) Unrealized gains from equity securities (805,803) (880,803) (138,217) Intangible assets arising from acquisition (141,587,024) (176,681,292) (27,725,150) Withholding tax on PRC earnings to be distributed (43,191,602) (64,929,920) (10,188,921) Total deferred tax liabilities (189,574,816) (248,591,769) (39,009,473) |
Schedule of Unrecognized Tax Benefits | Unrecognized tax benefits — January 1, 2020 261,641,717 Increases — tax positions in the current period 37,621,483 Decreases — tax positions in prior period (8,583,298) Unrecognized tax benefits — December 31, 2020 290,679,902 Unrecognized tax benefits — January 1, 2021 290,679,902 Increases — tax positions in the current period 108,672,095 Decreases — tax positions in prior period (70,531,716) Unrecognized tax benefits — December 31, 2021 328,820,281 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
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 Vice president, human resources and administration of the Group GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) * Catering management Controlled by GTI Getao Industrial (HK) Limited (“Getao”) Catering management Controlled by GTI Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) * Catering management Controlled by GTI Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) Catering management Controlled by GTI Beifu HongKong Indutrial Co,Limited (“Beifu HK”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) Catering management Controlled by GTI Bellagio Restaurant Management Group (“Bellagio”) Catering management Controlled by GTI Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu Yibon Hotel management Equity investee of the Group Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) ** Hotel management Equity investee of the Group * Aotao became a related party as it was acquired by a company controlled by GTI in January 2019. Shiquanmeiwei is also included in Aotao in 2019 and 2020. ** Hanyuan was a subsidiary of the Group as in 2019 and 2020. In December 2021, the Group disposed 5% of the equity interests of Hanyuan and Hanyuan became equity investee of the Group. |
Schedule of Related Party Balances | (a) Related party balances Due from related parties: As of December 31, 2020 2021 2021 RMB RMB USD Current: GTI — 206,256,382 32,366,128 Aotao 122,719 65,206,135 10,232,265 Beifu HK — 26,127,660 4,100,000 Yibon 9,101,161 8,330,198 1,307,190 Hanyuan — 3,406,100 534,491 Napa 500,000 500,000 78,461 JYHM 46,991 481,227 75,515 Getao — 112,158 17,600 9,770,871 310,419,860 48,711,650 Due to related parties: As of December 31, 2020 2021 2021 RMB RMB USD Current: Yibon 1,995,465 6,602,643 1,036,099 Napa 1,120,826 2,868,685 450,159 Da Niang Group 54,000 31,307 4,913 JYHM 27,962 27,992 4,392 3,198,253 9,530,627 1,495,563 |
Schedule of Related Party Transactions | (b) Related party transactions Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Loan to Aotao (167,279,750) (479,356,500) (186,051,400) (29,195,524) Repayment from Aotao 157,279,750 499,421,550 121,000,000 18,987,540 Advertising service from Aotao — (3,920,000) (6,473,400) (1,015,818) Interest income from Aotao 1,316,854 2,316,856 — — Franchise management fee to Aotao (24,941) (41,867) (49,648) (7,791) Loan to Da Niang Group (274,800,000) (40,000,000) (39,800,000) (6,245,488) Repayment from Da Niang Group 274,800,000 40,000,000 39,800,000 6,245,488 Interest income from Da Niang Group 875,315 352,882 — — Service purchased from Da Niang Group (339,121) (724,045) (221,389) (34,741) Sublease revenue from Da Niang Group — 36,000 27,000 4,237 Sublease revenue from JYHM 385,355 284,179 261,392 41,018 Service purchased from JYHM (18,418) (40,000) (667,751) (104,785) Advance from JYHM 312,141 — — — Loan to GTI (192,558,675) — (206,256,382) (32,366,127) Repayment from GTI 184,134,046 8,424,629 — — Interest income from GTI 907,880 — — — Purchase from Napa (3,576,659) (2,059,566) (2,547,178) (399,708) Revenue from Napa 2,358,491 — — — Loan to Yibon — (9,000,000) (3,000,000) (470,766) Repayment from Yibon — — 3,750,000 588,457 Franchised revenue from Yibon 681,239 852,287 1,251,888 196,449 Interest income from Yibon — 18,667,117 544,352 85,421 Loan to Beifu HK — — (169,511,160) (26,600,000) Repayment from Getao on behalf of Beifu HK — — 143,383,500 22,500,000 Loan to Hanyuan — — (3,406,100) (534,491) Service purchased form Bellagio — — (367,804) (57,716) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements | Future minimum lease payments under non-cancellable operating lease agreements as of December 31, 2021 were as follows: Year Ended December 31, 2021 2021 RMB USD 2022 242,184,649 38,004,056 2023 245,430,752 38,513,441 2024 237,485,118 37,266,597 2025 227,387,087 35,681,996 2026 221,263,039 34,720,999 Thereafter 1,544,810,968 242,414,551 Total 2,718,561,613 426,601,640 |
Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants | As of December 31, 2021, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2021 2021 RMB USD 2022 76,370,033 11,984,125 2023 69,781,327 10,950,213 2024 63,727,168 10,000,183 2025 60,375,233 9,474,192 2026 55,245,491 8,669,223 Thereafter 226,933,574 35,610,830 Total 552,432,826 86,688,766 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 442,718,263 261,344,391 117,438,250 18,428,624 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 67,315,727 68,286,954 68,286,954 68,286,954 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 34,762,909 34,762,909 34,762,909 34,762,909 Allocation of undistributed earnings — basic and diluted: To Class A Shares 291,950,431 173,182,301 77,821,553 12,211,900 To Class B Shares 150,767,832 88,162,090 39,616,697 6,216,724 Basic and diluted earnings per share: To Class A Shares 4.34 2.54 1.14 0.18 To Class B Shares 4.34 2.54 1.14 0.18 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, 2020 2021 2021 RMB RMB USD ASSETS Current assets Cash and cash equivalents 193,351,177 22,609,979 3,547,999 Investments in equity securities 65,420,098 59,114,452 9,276,347 Amounts due from subsidiaries 14,683,443 113,057,771 17,741,232 Amounts due from a related party — 202,502,545 31,777,068 Other current assets 1,356,058 — — Total current assets 274,810,776 397,284,747 62,342,646 Non-current assets: Investments in subsidiaries 1,852,091,157 1,977,459,895 310,306,609 Equity securities with readily determinable fair values 236,812,139 39,852,428 6,253,716 TOTAL ASSETS 2,363,714,072 2,414,597,070 378,902,971 LIABILITIES AND EQUITY Current liabilities: Dividends payable — 40,999,458 6,433,710 Short-term bank loans — 30,200,000 4,739,039 Long-term bank loans — 121,800,000 19,113,078 Amounts due to subsidiaries 248,360,177 350,308,050 54,970,977 Total current liabilities 248,360,177 543,307,508 85,256,804 Non-current liabilities: Other long-term liabilities 12,322,640 13,604,452 2,134,835 Total liabilities 260,682,817 556,911,960 87,391,639 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 400,000,000, 400,000,000 and 400,000,000 shares authorized as of December 31, 2019, 2020 and 2021; 67,416,046, 68,286,954 and 68,286,954 shares issued outstanding 2021 222,587,070 222,587,070 34,928,768 Class B ordinary shares (USD0.50 par value per share; 100,000,000 , 100,000,000 and 100,000,000 shares authorized as of December 31, 2019, 2020 and 2021; 34,762,909, 34,762,909 and 34,762,909 shares issued outstanding 2021 115,534,210 115,534,210 18,129,839 Additional paid-in capital 1,149,280,404 1,151,384,306 180,677,323 Retained earnings 570,042,924 326,298,618 51,203,374 Accumulated other comprehensive income 45,586,647 41,880,907 6,572,028 Total Shareholders’ Equity 2,103,031,255 1,857,685,111 291,511,332 TOTAL LIABILITIES AND EQUITY 2,363,714,072 2,414,597,070 378,902,971 |
Condensed Statements of Operations | Condensed statements of operations Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD General and administrative expenses (33,538,433) (9,967,834) (18,917,120) (2,968,509) interest income 5,970,063 8,173 173,316 27,197 Interest expense (646,315) — — — Gains on investments in equity securities 6,473,358 (11,392,623) 11,519,174 1,807,610 Share of profit in subsidiaries, net (Note a) 464,459,590 282,696,675 124,662,880 19,562,326 Income before tax and net income 442,718,263 261,344,391 117,438,250 18,428,624 Other comprehensive income, net of tax - Foreign currency translation adjustments 2,933,162 (19,714,207) (6,497,403) (1,019,584) Unrealized gains on available-for-sale investments, net of reclassification — — 2,791,663 438,073 Comprehensive income 445,651,425 241,630,184 113,732,510 17,847,113 |
Condensed Statements of Cash Flows | Condensed statements of cash flows Year Ended December 31, 2019 2020 2021 2021 RMB RMB RMB USD Operating activities: Net income 442,718,263 261,344,391 117,438,250 18,428,624 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Share-based compensation 26,490,395 232,558 2,464,762 386,775 Losses and impairment (Gains) on equity securities held (6,473,358) 11,392,623 (11,519,174) (1,807,610) Share of profit in subsidiaries, net (464,459,590) (282,696,675) (124,662,880) (19,562,326) Changes in operating assets and liabilities: Other current assets 1,700,582 1,060,670 — — Bad debt — — 1,356,058 212,795 Amounts due from subsidiaries (6,271,868) (8,411,575) (145,361) (22,810) Amounts due to subsidiaries (2,166,524) 243,436,001 (2,552,126) (400,484) Other long-term liabilities 7,475,856 4,846,781 1,281,813 201,144 Net cash provided by (used in) operating activities (986,244) 231,204,774 (16,338,658) (2,563,892) Investing activities: Payment on behalf of subsidiaries — — (98,589,828) (15,470,895) Payment for acquisitions (52,903,471) (6,041,736) Investment to subsidiaries (2,938,656) (2,938,656) — — Proceeds from disposal of equity securities and dividends received from equity securities — — 210,930,633 33,099,619 Purchases of investments in equity securities (247,415,003) (65,114,997) — — Loan to a related party (192,558,675) — (368,750,648) (57,865,024) Repayment from a related party 26,672,779 8,424,629 143,383,500 22,500,000 Net cash used in investing activities (469,143,026) (65,670,760) (113,026,343) (17,736,300) Financing activities: Proceeds from bank loans — — 152,000,000 23,852,117 Payment for initial public offering costs — — — — Distribution to the shareholders (note 1) (226,951,236) — (195,683,098) (30,706,948) Net cash used in financing activities (226,951,236) — (43,683,098) (6,854,831) Effect of exchange rate changes on cash and cash equivalents and restricted cash (2,355,347) 5,679,523 2,306,901 362,003 Net increase (decrease) in cash and cash equivalents and restricted cash (699,435,853) 171,213,537 (170,741,198) (26,793,020) Cash and cash equivalents and restricted cash at beginning of the year 721,573,493 22,137,640 193,351,177 30,341,019 Cash and cash equivalents and restricted cash at end of the year 22,137,640 193,351,177 22,609,979 3,547,999 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) | Dec. 20, 2021USD ($)$ / shares | Jan. 15, 2020shares | Jun. 27, 2019shares | Jan. 25, 2019shares | Mar. 27, 2018USD ($)$ / sharesshares | Mar. 27, 2018CNY (¥)shares | Mar. 11, 2018shares | Dec. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2021 | Dec. 31, 2020shares | Dec. 31, 2017shares | Nov. 30, 2019 | Apr. 04, 2019 |
Organization And Principal Activities [Line Items] | ||||||||||||||||
Entity incorporation date | Oct. 18, 2017 | |||||||||||||||
Cash dividend | $ | $ 56,667,425 | |||||||||||||||
Cash dividend per ordinary share | $ / shares | $ 0.55 | |||||||||||||||
Payments of dividend | $ | $ 50,243,715 | |||||||||||||||
Leased And Operated Hotels | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease description | the Group typically receives rental holidays of three to six months and pays fixed rent on a quarterly or semi-annual basis for the first three or five years of the lease term, after which the rental payments may be subject to an increase every three to five years. The Group recognizes rental expense on a straight-line basis over the lease term. | |||||||||||||||
Frequency of fixed rent payment | quarterly or semi-annual | |||||||||||||||
Leased And Operated Hotels | Minimum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 10 years | |||||||||||||||
Leased And Operated Hotels | Maximum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 20 years | |||||||||||||||
Rental holidays receivable term | 6 months | |||||||||||||||
Fixed rent payable term | 5 years | |||||||||||||||
Period subject to increase in rent value | 5 years | |||||||||||||||
Franchised And Managed Hotels | Minimum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 5 years | |||||||||||||||
Franchised And Managed Hotels | Maximum | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Lease term | 20 years | |||||||||||||||
Argyle Beijing | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 60.00% | 60.00% | ||||||||||||||
Shandong Xinghui | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Initial Public Offering | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Payment for initial public offering costs | ¥ | ¥ 30,827,578 | |||||||||||||||
Class B Ordinary Shares to Class A Ordinary Shares | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Number of shares were redesignated | 7,594,048 | |||||||||||||||
GreenTree Inns Hotel Management Group, Inc. | Dividend Declared | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Cash dividend | $ | $ 25,544,739 | $ 30,559,675 | $ 25,578,618 | $ 25,578,618 | ||||||||||||
Common Class A | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 870,908 | |||||||||||||||
Common Class A | Argyle Beijing | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 626,746 | 626,746 | ||||||||||||||
Common Class A | Shandong Xinghui | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Business acquisition, shares issued | 870,908 | |||||||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||||||||
Common Class A | Initial Public Offering | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Stock issued during period | 10,200,000 | 10,200,000 | ||||||||||||||
Shares issued price per share | $ / shares | $ 14 | |||||||||||||||
Proceeds from issuance of shares | $ | $ 133,518,000 | |||||||||||||||
Common Class A | GreenTree Inns Hotel Management Group, Inc. | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Shares issued for services contributed by founders | 48,635,252 | |||||||||||||||
Common Class B | GreenTree Inns Hotel Management Group, Inc. | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Shares issued for services contributed by founders | 42,716,957 | |||||||||||||||
Alex S. Xu (CEO) | ||||||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||||||
Percentage of ownership interest hold by founder | 78.19% |
Organization and Principal Ac_4
Organization and Principal Activities - Summary of Group's Major Direct and Indirect Subsidiaries of Investments (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Organization And Principal Activities [Line Items] | |
Entity incorporation date | Oct. 18, 2017 |
Entity Incorporation, State or Country Code | E9 |
GreenTree Inns Hotel (Shanghai) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Nov. 30, 2004 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (China) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 9, 2005 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Hexie (Changzhou) Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Sep. 14, 2006 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Jiangsu) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Changning) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jan. 30, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Tianjin) Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 2, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Zhejiang) Management, Inc | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Aug. 13, 2007 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Inns Hotel (Beijing) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Mar. 17, 2008 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shiruide Hotel Management (Shanghai) Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 16, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Jinan Dongrunbao Inns Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Apr. 22, 2009 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Suites | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | E9 |
Major Operation | Investment holding |
PHI | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Inns Hotel Management Group, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Oct. 28, 2010 |
Entity Incorporation, State or Country Code | Y0 |
Major Operation | Investment holding |
GreenTree Hotels (Hong Kong), Limited. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 17, 2011 |
Entity Incorporation, State or Country Code | K3 |
Major Operation | Investment holding |
Shanghai Evergreen Technology Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
Shanghai Beifu Industrial Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 25, 2014 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shenzhen Gegao Investment Management Co., Ltd | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 7, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Investment holding |
Yancheng Ruixin Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Jun. 5, 2015 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Jingjia Hotel Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 15, 2017 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Wumian Hotel Management Co,.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 66.70% |
Entity incorporation date | Jan. 16, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Ze Xin | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 51.00% |
Entity incorporation date | Jul. 1, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Foshan Baiqinghui Hotel Management Co,.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Aug. 31, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
GreenTree Hotel (Xuzhou) Co.Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Feb. 5, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Banyan Hotel (Xuzhou) Co.Ltd | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 3, 2018 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Suzhou Ganglongkaiyuan Hotel Management Co., Ltd | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | May 31, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel property |
Argyle Beijing | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 60.00% |
Entity incorporation date | Apr. 1, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shandong Xinghui | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 70.00% |
Entity incorporation date | Nov. 30, 2019 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Hotel management |
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Oct. 20, 2011 |
Entity Incorporation, State or Country Code | F4 |
Major Operation | Information technology services |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2021USD ($)tiersegment | Dec. 31, 2021CNY (¥)tiersegment | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | May 31, 2016 | |
Significant Accounting Policies [Line Items] | |||||||
Unrealized gains from long-term time deposit | $ 2,767,160 | ¥ 17,634,006 | ¥ 19,880,287 | ¥ 16,897,702 | |||
Time Deposits Pledged For Repayments Of Short-Term Bank Loans | 12,553,746 | ¥ 80,000,000 | |||||
Equity securities, realized gains | 245,566 | 1,564,892 | 4,746,032 | 4,674,446 | |||
Equity securities, unrealized gain | 425,265 | 2,710,043 | |||||
Impairment loss | 5,000,000 | ||||||
Unrealized gains on available-for-sale investments, net of reclassification | 438,073 | 2,791,663 | |||||
Interest income recognized in earnings | $ 85,421 | ¥ 544,352 | 18,667,117 | 0 | |||
Number of reporting unit | segment | 1 | 1 | |||||
Impairment of goodwill | $ 0 | ¥ 0 | $ 0 | 0 | 0 | ||
Sublease rental revenue | 11,720,369 | 74,689,226 | 77,676,665 | 74,893,930 | |||
Hotel manager fees | $ 20,561,070 | ¥ 131,027,473 | 112,729,886 | 115,638,242 | |||
Number of tiers membership | tier | 4 | 4 | |||||
Expiration period of non usage membership program | 2 years | 2 years | |||||
Membership program of renewal period | 2 years | 2 years | |||||
VAT rate | 6.00% | ||||||
Advertising and promotional expenses | $ 3,594,458 | ¥ 22,906,044 | 38,934,867 | 23,934,351 | |||
Government subsidies | 2,666,657 | 16,993,539 | 20,094,745 | 9,880,735 | |||
Operating lease rental expenses | 37,424,850 | 238,493,602 | 122,590,230 | 81,379,034 | |||
Employee benefits | 5,746,033 | 36,617,173 | 25,666,575 | 28,700,397 | |||
Loans receivable, allowance | 16,587,145 | 18,000,000 | ¥ 105,703,244 | ||||
Foreign currency translation adjustments | (1,019,584) | (6,497,403) | (19,714,207) | 2,933,162 | |||
Revenues | $ 189,270,620 | ¥ 1,206,145,958 | 930,010,096 | 1,091,793,135 | |||
Change in accounting principle, accounting standards update, adopted | true | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | Jan. 1, 2021 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201813Member | us-gaap:AccountingStandardsUpdate201813Member | |||||
Long-term time deposits pledged with banks as security | $ 20,399,837 | ¥ 130,000,000 | |||||
Impairment of long-lived assets | ¥ 0 | 0 | 0 | ||||
Loans Receivable | |||||||
Significant Accounting Policies [Line Items] | |||||||
Receivables outstanding | $ 151,504,222 | 394,948,617 | 965,475,805 | ||||
Loans Receivable | Credit Concentration Risk | |||||||
Significant Accounting Policies [Line Items] | |||||||
Appreciation in functional currency | 2.34% | 2.34% | |||||
Mainland China | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | $ 44,541,794 | 434,229,811 | 283,847,034 | ||||
Cayman Island | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | 5,017,373 | 196,456,442 | 31,973,714 | ||||
Hong Kong | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | 11,441 | 185,772 | 72,907 | ||||
Japan | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | $ 270,259 | 1,183,983 | ¥ 1,722,251 | ||||
RMB | |||||||
Significant Accounting Policies [Line Items] | |||||||
Foreign currency exchange rate | 6.3726 | 6.3726 | |||||
ASU 2016-01 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Equity securities, unrealized gain | 8,223,212 | ||||||
Short-term Investments | |||||||
Significant Accounting Policies [Line Items] | |||||||
Equity securities, realized gains | 2,314,688 | 65,715,647 | |||||
Equity securities, realized loss | $ 70,931 | ¥ 452,014 | |||||
Equity securities, unrealized losses | 1,372,045 | 8,743,495 | 29,586,987 | 29,832,919 | |||
Long-term Investments | |||||||
Significant Accounting Policies [Line Items] | |||||||
Equity securities, unrealized gains (losses) | $ (2,206,077) | ¥ (14,058,448) | ¥ (9,247,254) | ¥ (6,473,358) | |||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated life of paid membership program | 3 years | 3 years | |||||
Long term, maturity period | 1 year | 1 year | |||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated life of paid membership program | 5 years | 5 years | |||||
Long term, maturity period | 3 years | 3 years | |||||
Revenues | $ | $ 1,070,000,000 |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies - Summary of Property and Equipment Net, Expected Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Leasehold Improvements | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives, description | Over the shorter of the lease term or estimated useful lives |
Buildings | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 20 years |
Furniture, Fixture and Equipment | Minimum | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 3 years |
Furniture, Fixture and Equipment | Maximum | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 5 years |
Motor Vehicles | |
Summary Of Principle Accounting Policies [Line Items] | |
Property and equipment net, expected useful lives | 5 years |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies - Amortization of Intangible Assets, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Trademark | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Network Rights | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Technology | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Purchased Software | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Purchased Software | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Favorable Leases | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining lease term |
Reacquired Rights | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining franchise term |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments in equity securities - equity securities with readily determinable fair value | ¥ 157,988,851 | $ 24,791,898 | ¥ 242,378,696 |
Fair Value, Recurring | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Other assets - returnable consideration from acquisition of Urban Hotel Group | 5,385,583 | 1,833,421 | |
Short-term investments - Investments in wealth management products | 147,458,675 | 201,983,182 | |
Investments in equity securities - equity securities with readily determinable fair value | 157,988,851 | 242,378,696 | |
Long-term investments - equity securities with readily determinable fair value | 39,852,428 | 236,812,140 | |
Long-term investments -available-for-sale debt investment | 106,493,137 | 103,701,474 | |
Accrued expenses and other current liabilities - payables for contingent consideration from acquisition of Urban Hotel Group | 525,685 | ||
Fair Value Measurements | 457,178,674 | 787,234,598 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments in equity securities - equity securities with readily determinable fair value | 157,988,851 | 242,378,696 | |
Long-term investments - equity securities with readily determinable fair value | 39,852,428 | 236,812,140 | |
Fair Value Measurements | 197,841,279 | 479,190,836 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Short-term investments - Investments in wealth management products | 147,458,675 | 201,983,182 | |
Long-term investments -available-for-sale debt investment | 103,701,474 | ||
Fair Value Measurements | 147,458,675 | 201,983,182 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Other assets - returnable consideration from acquisition of Urban Hotel Group | 5,385,583 | 845,115 | 1,833,421 |
Long-term investments -available-for-sale debt investment | 106,493,137 | $ 16,711,097 | 103,701,474 |
Accrued expenses and other current liabilities - payables for contingent consideration from acquisition of Urban Hotel Group | 525,685 | ||
Fair Value Measurements | ¥ 111,878,720 | ¥ 106,060,580 |
Summary of Principal Accounti_8
Summary of Principal Accounting Policies - Reconciliations of Assets and Liabilities (Details) - 12 months ended Dec. 31, 2021 - Fair Value, Recurring | CNY (¥) | USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Returnable consideration, Beginning balance | ¥ 1,833,421 | |
Returnable consideration, Ending balance | 5,385,583 | |
Payables for contingent consideration, Beginning balance | 525,685 | |
Available-for-sale debt investment, Beginning balance | 103,701,474 | |
Available-for-sale debt investment, Ending balance | 106,493,137 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Returnable consideration, Beginning balance | 1,833,421 | |
Returnable consideration, Net unrealized fair value increase recognized in earnings | 3,552,162 | |
Returnable consideration, Ending balance | 5,385,583 | $ 845,115 |
Payables for contingent consideration, Beginning balance | 525,685 | |
Payables for contingent consideration, Net unrealized fair value increase recognized in earnings | (525,685) | |
Available-for-sale debt investment, Beginning balance | 103,701,474 | |
Available-for- sale debt investment, Net unrealized fair value increase recognized in other comprehensive income | 2,791,663 | |
Available-for-sale debt investment, Ending balance | ¥ 106,493,137 | $ 16,711,097 |
Summary of Principal Accounti_9
Summary of Principal Accounting Policies - Unobservable Inputs (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
WACC | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale debt investments, measurement input | 12 | 12 |
Discount for lack of marketability | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale debt investments, measurement input | 34 | 35 |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale debt investments, measurement input | 42 | 34.5 |
Probability of redeem preferences | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale debt investments, measurement input | 100 | 100 |
Summary of Principal Account_10
Summary of Principal Accounting Policies - Assets Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Nonrecurring - CNY (¥) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary Of Principle Accounting Policies [Line Items] | ||
Long-term investments - Equity securities without readily determinable fair values | ¥ 6,233,255 | ¥ 3,523,212 |
Fair value adjustment | 2,710,043 | |
Impairment | 5,000,000 | |
Significant Unobservable Inputs (Level 3) | ||
Summary Of Principle Accounting Policies [Line Items] | ||
Long-term investments - Equity securities without readily determinable fair values | ¥ 6,233,255 | ¥ 3,523,212 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | Nov. 30, 2019CNY (¥)shares | Apr. 04, 2019CNY (¥)shares | Aug. 31, 2019CNY (¥)item | Dec. 31, 2021CNY (¥)item | Dec. 31, 2021USD ($)item | Dec. 31, 2020CNY (¥)item | Dec. 31, 2019CNY (¥)item | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 01, 2019CNY (¥) |
Business Acquisition [Line Items] | ||||||||||
Goodwill | ¥ 120,819,948 | ¥ 100,231,487 | ¥ 100,078,236 | $ 18,959,286 | $ 15,728,507 | |||||
2021 Business Combinations | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, number of acquisitions completed | item | 3 | 3 | ||||||||
Business acquisition, Total consideration amount | ¥ 23,000,000 | $ 3,609,202 | ||||||||
Goodwill | 20,588,461 | |||||||||
Business acquisition, cash consideration paid | ¥ 19,530,000 | $ 3,064,683 | ||||||||
2020 Business Combinations | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, number of acquisitions completed | item | 1 | |||||||||
Business acquisition, Total consideration amount | ¥ 2,200,000 | |||||||||
Goodwill | ¥ 153,251 | |||||||||
2019 Business Combinations | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, number of acquisitions completed | item | 4 | |||||||||
Argyle Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, Total consideration amount | ¥ 126,819,172 | |||||||||
Goodwill | ¥ 42,198,903 | |||||||||
Business acquisition, shares issued | shares | 626,746 | |||||||||
Business acquisition, cash consideration paid | ¥ 65,779,032 | |||||||||
Business acquisitions, net revenue of acquiree | ¥ 11,882,976 | |||||||||
Business acquisitions, net loss of acquiree | ¥ 7,694,834 | |||||||||
Business Combination, recognized identifiable current assets | ¥ 3,777,860 | |||||||||
Argyle Beijing | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, equity interest acquired | 60.00% | 60.00% | 60.00% | |||||||
Urban Hotel Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, Total consideration amount | ¥ 190,349,496 | |||||||||
Goodwill | ¥ 49,037,577 | |||||||||
Business acquisition, shares issued | shares | 870,908 | |||||||||
Business acquisition, cash consideration paid | ¥ 126,000,000 | |||||||||
Business acquisition, returnable consideration | 3,333,421 | |||||||||
Business acquisition, contingent consideration | 4,027,207 | |||||||||
Business Combination, recognized identifiable current assets | 50,482,296 | |||||||||
Urban Hotel Group | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, estimated contingent consideration | 105,000,000 | |||||||||
Business acquisition, estimated returnable consideration | ¥ 69,000,000 | |||||||||
Shandong Xinghui | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, equity interest acquired | 70.00% | |||||||||
Others | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, number of acquisitions completed | item | 1 | |||||||||
Business acquisition, cash consideration paid | ¥ 5,530,000 | |||||||||
Business Combination, recognized identifiable current assets | ¥ 37,255,016 | |||||||||
2018 Business Combinations | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, number of acquisitions completed | item | 4 | |||||||||
2018 Business Combinations | General And Administrative Expenses | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, acquisition related costs | ¥ 2,589,034 |
Business Combinations - Summary
Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities (Details) | Nov. 30, 2019CNY (¥) | Apr. 04, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Intangible assets | |||||||
Goodwill | ¥ 120,819,948 | $ 18,959,286 | ¥ 100,231,487 | $ 15,728,507 | ¥ 100,078,236 | ||
2021 Business Combinations | |||||||
Business Acquisition [Line Items] | |||||||
Property and equipment | 92,075 | ||||||
Intangible assets | |||||||
Goodwill | 20,588,461 | ||||||
Noncontrolling interest | (34,576,536) | ||||||
Total | 23,000,000 | ||||||
2021 Business Combinations | Trademark | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 36,896,000 | ||||||
Amortization Period | 10 years | ||||||
2021 Business Combinations | Property and Equipment | |||||||
Intangible assets | |||||||
Amortization Period | 10 years | ||||||
Argyle Group | |||||||
Business Acquisition [Line Items] | |||||||
Current assets | ¥ 3,777,860 | ||||||
Property and equipment | 1,013,378 | ||||||
Intangible assets | |||||||
Goodwill | 42,198,903 | ||||||
Current liabilities | (7,618,079) | ||||||
Deferred tax liabilities | (57,625,000) | ||||||
Non current liabilities | (15,642,000) | ||||||
Noncontrolling interest | (70,455,096) | ||||||
Total | ¥ 126,819,172 | ||||||
Argyle Group | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 3 years | ||||||
Argyle Group | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 17 years | ||||||
Argyle Group | Trademark | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 230,500,000 | ||||||
Amortization Period | Indefinite life | ||||||
Argyle Group | Purchased Software | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 669,206 | ||||||
Argyle Group | Purchased Software | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 4 years | ||||||
Argyle Group | Purchased Software | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 7 years | ||||||
Urban Hotel Group | |||||||
Business Acquisition [Line Items] | |||||||
Current assets | ¥ 50,482,296 | ||||||
Property and equipment | 6,913,189 | ||||||
Intangible assets | |||||||
Goodwill | 49,037,577 | ||||||
Current liabilities | (19,831,341) | ||||||
Deferred tax liabilities | (58,225,000) | ||||||
Non current liabilities | (11,517,000) | ||||||
Noncontrolling interest | (67,981,964) | ||||||
Total | 190,349,496 | ||||||
Deferred tax assets | 4,000,000 | ||||||
Other assets | ¥ 4,537,000 | ||||||
Urban Hotel Group | Minimum | |||||||
Intangible assets | |||||||
Amortization Period | 3 years | ||||||
Urban Hotel Group | Maximum | |||||||
Intangible assets | |||||||
Amortization Period | 10 years | ||||||
Urban Hotel Group | Trademark | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 212,800,000 | ||||||
Amortization Period | Indefinite life | ||||||
Urban Hotel Group | Favorable Leases | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 20,100,000 | ||||||
Amortization Period | Remaining lease terms | ||||||
Urban Hotel Group | Purchased Software | |||||||
Intangible assets | |||||||
Intangible assets | ¥ 34,739 | ||||||
Amortization Period | 2 years |
Business Combinations - Summa_2
Business Combinations - Summary of Fair Values of the Assets Acquired and Liabilities (Parenthetical) (Details) - Urban Hotel Group | Nov. 30, 2019CNY (¥) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | ¥ 28,162,864 |
Other receivables | 16,928,966 |
Loans/accounts receivable | ¥ 5,116,320 |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | ¥ 1,206,145,958 | $ 189,270,620 | ¥ 930,010,096 | ¥ 1,091,793,135 |
Leased And Operated Hotels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 391,960,031 | 61,507,082 | 227,074,041 | 253,420,676 |
Franchised And Managed Hotels | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 774,359,348 | 121,513,879 | 677,480,818 | 831,340,340 |
Initial Franchise Fee | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 76,263,574 | 11,967,419 | 61,051,369 | 54,930,266 |
Continuing Franchise Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 698,095,774 | 109,546,460 | 616,429,449 | 776,410,074 |
Others | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | ¥ 39,826,579 | $ 6,249,659 | ¥ 25,455,237 | ¥ 7,032,119 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Components of Deferred Revenue (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 529,620,463 | $ 83,109,008 | ¥ 583,216,366 |
Initial Franchise Fee | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 248,406,284 | 38,980,367 | 280,478,697 |
Membership Fees | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 186,976,973 | 29,340,767 | 215,009,108 |
Cash Received for Prepaid Card and Sublease | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | 47,604,011 | 7,470,108 | 48,137,090 |
Greentree Reward Membership Program | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | ¥ 46,633,195 | $ 7,317,766 | ¥ 39,591,471 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contract liabilities, revenues recognized | ¥ 183,736,546 | $ 28,832,273 | ¥ 206,913,137 | |
Deferred revenues, expected to be recognized as revenues | 529,620,463 | 583,216,366 | $ 83,109,008 | |
Initial Franchise Fee | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | 248,406,284 | 280,478,697 | 38,980,367 | |
Membership Fees | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | 186,976,973 | 215,009,108 | 29,340,767 | |
Greentree Reward Membership Program | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | 46,633,195 | 39,591,471 | 7,317,766 | |
Cash Received for Prepaid Card and Sublease | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenues, expected to be recognized as revenues | ¥ 47,604,011 | ¥ 48,137,090 | $ 7,470,108 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details 1) - Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date [Axis]: 2022-01-01 | Dec. 31, 2021 |
Initial Franchise Fee | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 1 year |
Initial Franchise Fee | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 30 years |
Membership Fees | Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 1 year |
Membership Fees | Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 5 years |
Greentree Reward Membership Program | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenues, remaining contract periods | 2 years |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Contract Liabilities (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Contract With Customer Asset And Liability [Abstract] | |||
Advance from customers | ¥ 39,773,738 | $ 6,241,367 | ¥ 34,305,508 |
Deferred revenue-current | 215,147,975 | 33,761,412 | 221,314,997 |
Deferred revenue-non current | 314,472,488 | 49,347,596 | 361,901,369 |
Total contract liabilities | ¥ 569,394,201 | $ 89,350,375 | ¥ 617,521,874 |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Receivable, Net (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | ¥ 247,530,580 | $ 38,842,950 | ¥ 222,244,629 |
Less: bad debt provision, current | (105,703,244) | (16,587,145) | (18,000,000) |
Loans receivable, non-current portion | 290,967,680 | 45,659,178 | 145,703,988 |
Less: bad debt provision, noncurrent | (12,182,758) | (1,911,741) | |
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 308,016,920 | 48,334,576 | 191,687,640 |
Loans receivable, non-current portion | 294,150,438 | 46,158,623 | 121,460,977 |
Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, current portion | 45,216,904 | 7,095,519 | 48,556,989 |
Less: bad debt provision, current | (117,886,002) | (18,498,886) | (18,000,000) |
Loans receivable, non-current portion | ¥ 9,000,000 | $ 1,412,296 | ¥ 24,243,011 |
Loans Receivable, Net - Aging o
Loans Receivable, Net - Aging of past-due loans receivables (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | ¥ 140,329,597 | $ 22,020,776 | ¥ 110,882,786 |
1 to 3 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 42,412,387 | 6,655,429 | 37,251,907 |
4 to 6 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 25,028,613 | 3,927,535 | 51,957,304 |
7 to 12 months past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | 33,136,695 | 5,199,871 | 6,673,574 |
Over 1 year past due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivables | ¥ 39,751,902 | $ 6,237,941 | ¥ 15,000,000 |
Loans Receivable, Net - Movemen
Loans Receivable, Net - Movement of allowance for loans receivable (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Movement of allowance for loans receivable | ||||
Balance of the beginning of the year | ¥ 18,000,000 | $ 2,824,593 | ¥ 15,000,000 | |
Provision | 99,886,003 | 15,674,293 | 3,000,000 | |
Balance of the end of the year | 117,886,003 | $ 18,498,886 | 18,000,000 | |
Evaluated for impairment on an individual basis | ¥ 117,886,003 | ¥ 18,000,000 | $ 18,498,886 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, allowance | ¥ 105,703,244 | $ 16,587,145 | ¥ 18,000,000 |
Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 year | ||
Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 3 years | ||
Third Parties | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, allowance | ¥ 117,886,002 | $ 18,498,886 | ¥ 18,000,000 |
Loan Agreement | Franchisees | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 month | ||
Debt instrument, interest rate | 4.70% | 4.70% | |
Loan Agreement | Franchisees | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 6 years | ||
Debt instrument, interest rate | 9.90% | 9.90% | |
Loan Agreement | Third Parties | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 1 year | ||
Debt instrument, interest rate | 7.90% | 7.90% | |
Loan Agreement | Third Parties | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Long term, maturity period | 3 years | ||
Debt instrument, interest rate | 18.00% | 18.00% |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 1,354,245,525 | $ 212,510,674 | ¥ 1,009,079,084 |
Less: Accumulated depreciation | (436,314,189) | (68,467,217) | (353,833,524) |
Net book value | 917,931,336 | 144,043,457 | 655,245,560 |
Construction in progress | 127,424,929 | 19,995,752 | 13,360,101 |
Property and equipment, net | 1,045,356,265 | 164,039,209 | 668,605,661 |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 626,908,935 | 98,375,692 | 544,298,466 |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 630,691,571 | 98,969,270 | 384,266,061 |
Furniture, Fixture and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 93,440,638 | 14,662,875 | 77,605,170 |
Motor Vehicles | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 3,204,381 | $ 502,837 | ¥ 2,909,387 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥)building | Dec. 31, 2021USD ($)building | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Property Plant And Equipment [Line Items] | |||||
Depreciation expense | ¥ 89,617,316 | $ 14,062,913 | ¥ 59,719,535 | ¥ 37,340,304 | |
Impairment charges | ¥ | 0 | 0 | ¥ 0 | ||
Property and equipment, net | ¥ 1,045,356,265 | 668,605,661 | $ 164,039,209 | ||
Asset Pledged as Collateral | |||||
Property Plant And Equipment [Line Items] | |||||
Number of properties pledges as collateral | building | 2 | 2 | |||
Property and equipment, net | ¥ 288,313,328 | $ 45,242,653 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 89,617,316 | $ 14,062,913 | ¥ 59,719,535 | ¥ 37,340,304 |
Hotel Operating Costs | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | 80,575,644 | 12,644,077 | 53,850,494 | 31,671,274 |
General And Administrative Expenses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 9,041,672 | $ 1,418,836 | ¥ 5,869,041 | ¥ 5,669,030 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | ¥ 550,002,745 | $ 86,307,432 | ¥ 512,904,998 |
Less: Accumulated amortization | (29,885,266) | (4,689,650) | (21,391,925) |
Total. | 520,117,479 | 81,617,782 | 491,513,073 |
Trademark | |||
Intangible assets with indefinite life: | |||
Indefinite lives Intangible Assets, Gross | 443,300,000 | 69,563,442 | 443,300,000 |
Trademark | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 41,620,493 | 6,531,164 | 4,724,493 |
Technology | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 4,200,000 | 659,072 | 4,200,000 |
Network Rights | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 390,317 | 61,249 | 390,317 |
Purchased Software | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 15,429,484 | 2,421,223 | 15,227,737 |
Reacquired Rights | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 2,531,418 | 397,235 | 2,531,418 |
Favorable Leases | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | 42,095,848 | 6,605,757 | 42,095,848 |
Others | |||
Intangible assets with definite life: | |||
Finite-Lived Intangible Assets, Gross | ¥ 435,185 | $ 68,290 | ¥ 435,185 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible | ¥ 8,493,341 | $ 1,332,790 | ¥ 6,150,436 | ¥ 3,025,995 |
Impairment charges recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Aggregate Amortization Expense (Details) - Dec. 31, 2021 | CNY (¥) | USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | ¥ 9,296,919 | $ 1,458,889 |
2023 | 8,964,793 | 1,406,772 |
2024 | 8,830,200 | 1,385,651 |
2025 | 8,402,997 | 1,318,614 |
2026 | 8,153,147 | 1,279,407 |
Thereafter | ¥ 33,169,422 | $ 5,205,007 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Balance as of January 1 | ¥ 100,231,487 | $ 15,728,507 | ¥ 100,078,236 |
Acquisitions | 20,588,461 | 3,230,779 | 153,251 |
Balance as of December 31 | ¥ 120,819,948 | $ 18,959,286 | ¥ 100,231,487 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Impairment of goodwill | $ 0 | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Long-Term Investments (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | ¥ 157,988,851 | $ 24,791,898 | ¥ 242,378,696 |
Long-term investments | 188,790,785 | 29,625,394 | 369,525,917 |
Shanghai Wiselong Enterprise Management Co., Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 25,424,106 | 3,989,597 | 24,489,092 |
Others | |||
Schedule Of Investments [Line Items] | |||
Equity method investments | 10,787,859 | 1,692,850 | 1,000,000 |
China Gingko Education Group Company Limited | |||
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | 39,852,428 | 6,253,716 | 56,354,913 |
Zhejiang New Century Hotel Management Co., Ltd. | |||
Schedule Of Investments [Line Items] | |||
Equity securities with readily determinable fair values | 180,457,226 | ||
Yibon | |||
Schedule Of Investments [Line Items] | |||
Available-for-sale debt investment | 106,493,137 | 16,711,097 | 103,701,474 |
Others | |||
Schedule Of Investments [Line Items] | |||
Equity securities without readily determinable fair values | ¥ 6,233,255 | $ 978,134 | ¥ 3,523,212 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) $ in Thousands | Mar. 11, 2019USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2019HKD ($)shares | Apr. 30, 2017CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) |
Schedule Of Investments [Line Items] | ||||||||
Proceeds from disposal of equity method investments | ¥ | ¥ 6,380,000 | ¥ 1,671,092 | ||||||
Yibon | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Equity securities without readily determinable fair values, percentage | 30.00% | |||||||
Payment to acquire, equity securities without readily determinable fair values | ¥ | ¥ 103,701,474 | |||||||
Available-for-sale debt investment, fair value | ¥ 103,701,474 | ¥ 106,493,137 | $ 16,711,097 | |||||
Equity interest held by holders of investee to be exchanged into shares of investor | 70.00% | |||||||
Zhejiang New Century Hotel Management Co [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Percentage of ownership | 4.95% | |||||||
Equity interest, ordinary shares | $ 29,200,000 | |||||||
Proceeds from disposal of equity method investments | $ 32,400,000 | |||||||
China Gingko Education Group Company Limited | Initial Public Offering | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Equity interest, percentage | 5.56% | |||||||
Equity interest, ordinary shares | shares | 27,776,000 | |||||||
Equity interest | $ 40,400 | |||||||
China Gingko Education Group Company Limited | Secondary Market [Member] | ||||||||
Schedule Of Investments [Line Items] | ||||||||
Equity interest, percentage | 2.71% | |||||||
Equity interest, ordinary shares | shares | 13,560,000 | |||||||
Equity interest | $ 19,530 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Other Assets [Line Items] | |||
Current | ¥ 142,737,163 | $ 22,398,576 | ¥ 77,649,794 |
Non-current | 329,366,340 | 51,684,766 | 66,635,394 |
Receivable from on-line payment platforms | |||
Other Assets [Line Items] | |||
Current | 53,983,324 | 8,471,162 | 40,831,573 |
Acquisition Deposits | |||
Other Assets [Line Items] | |||
Non-current | 6,650,200 | 1,043,561 | 8,216,700 |
Rental Deposit | |||
Other Assets [Line Items] | |||
Non-current | 56,962,580 | 8,938,672 | 7,410,000 |
Interest Receivable | |||
Other Assets [Line Items] | |||
Current | 49,347,369 | 7,743,679 | 5,298,869 |
Non-current | 5,737,675 | 900,366 | 33,772,617 |
Deposits | |||
Other Assets [Line Items] | |||
Current | 11,168,379 | 1,752,562 | 5,262,478 |
Advance to suppliers | |||
Other Assets [Line Items] | |||
Current | 5,206,428 | 817,002 | 5,581,884 |
Returnable Consideration from the Acquisition of Urban Hotel Group | |||
Other Assets [Line Items] | |||
Non-current | 5,385,583 | 845,115 | 1,833,421 |
Purchase deposits for buildings | |||
Other Assets [Line Items] | |||
Non-current | 197,723,649 | 31,027,156 | |
VAT recoverable | |||
Other Assets [Line Items] | |||
Current | 5,009,469 | 786,095 | |
Non-current | 10,774,251 | 1,690,715 | |
Others | |||
Other Assets [Line Items] | |||
Current | 18,022,194 | 2,828,076 | 20,674,990 |
Non-current | ¥ 46,132,402 | $ 7,239,181 | ¥ 15,402,656 |
Bank Loans - Short-term bank lo
Bank Loans - Short-term bank loans (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Bank Loans | ||||||
Short-term bank loans | ¥ 356,000,000 | ¥ 150,000,000 | $ 55,864,168 | $ 150,000,000 | ||
Weighted average interest rates | 4.71% | 4.60% | 4.71% | 4.60% | ||
Repayments of short-term bank loans | ¥ 240,000,000 | $ 37,661,237 | ¥ 76,000,000 | $ 11,926,058 | ||
Time deposits pledged for repayments of short-term bank loans | ¥ 80,000,000 | $ 12,553,746 |
Bank Loans - Long term bank loa
Bank Loans - Long term bank loans (Details) | 1 Months Ended | |
Dec. 31, 2021CNY (¥)building | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Long-term bank loans, current portion | ¥ 50,200,000 | $ 7,877,475 |
Secured loan agreement with Shanghai Pudong Development Bank | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | ¥ 152,000,000 | $ 23,852,117 |
Debt instrument, interest rate | 5.00% | 5.00% |
Time deposits collateralized, short-term investments | ¥ 30,000,000 | $ 4,707,655 |
Time deposits collateralized, long-term investments | 130,000,000 | 20,399,837 |
Long-term bank loans, current portion | 30,200,000 | 4,739,039 |
Secured loan agreement with Bank of DaLian | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | ¥ 200,000,000 | $ 31,384,364 |
Debt instrument, interest rate | 5.00% | 5.00% |
Percentage of equity guaranteed for repayments of loan | 100.00% | |
Number of buildings guaranteed for repayments of loan | 2 | |
Carrying amount | ¥ 288,313,328 | $ 45,242,653 |
Long-term bank loans, current portion | ¥ 20,000,000 | $ 3,138,436 |
Bank Loans - Schedule of Princi
Bank Loans - Schedule of Principal Payments on Long-Term Borrowings (Details) - Dec. 31, 2021 | CNY (¥) | USD ($) |
Principal Payments on Long-Term Borrowings | ||
2022 | ¥ 50,200,000 | $ 7,877,475 |
2023 | 141,800,000 | 22,251,514 |
2024 | 160,000,000 | 25,107,492 |
Total | ¥ 352,000,000 | $ 55,236,481 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Payables And Accruals [Abstract] | |||
Payable to franchisees | ¥ 155,853,992 | $ 24,456,892 | ¥ 145,807,668 |
Business taxes and related tax surcharge | 111,076,878 | 17,430,387 | 78,300,960 |
Accrued rental | 27,957,242 | 4,387,101 | 20,675,146 |
Construction payable | 13,888,585 | 2,179,422 | 11,902,821 |
Deposits payable | 17,269,154 | 2,709,907 | 15,342,758 |
Payable for business combination and asset acquisitions | 15,342,675 | 2,407,601 | 309,500 |
Accrued utilities | 1,177,631 | 184,796 | 2,307,672 |
Others | 38,715,905 | 6,075,370 | 26,050,148 |
Total | ¥ 381,282,062 | $ 59,831,476 | ¥ 300,696,673 |
Other Long-term Liabilities - D
Other Long-term Liabilities - Deposits (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Other Long Term Liabilities [Member] | |||
Deposits from franchisees. | ¥ 118,803,438 | $ 18,642,852 | ¥ 104,562,713 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) | Dec. 31, 2021 |
Common Class A | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 39.60% |
Common Class B | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 60.40% |
Hotel Operating Costs - Schedul
Hotel Operating Costs - Schedule of Hotel Operating Costs (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating Expenses [Abstract] | ||||
Rental | ¥ 235,568,383 | $ 36,965,820 | ¥ 118,295,183 | ¥ 79,597,408 |
Utilities | 25,782,913 | 4,045,902 | 15,372,385 | 19,119,300 |
Personnel cost | 82,114,394 | 12,885,540 | 46,941,757 | 38,277,298 |
Depreciation and amortization | 80,575,644 | 12,644,077 | 53,850,494 | 34,727,153 |
Consumable, food and beverage | 69,495,702 | 10,905,392 | 43,257,796 | 32,337,115 |
Costs of hotel manager of franchised-and-managed hotels | 114,779,305 | 18,011,378 | 91,664,745 | 96,565,044 |
Other costs of franchised-and-managed hotels | 26,123,578 | 4,099,359 | 22,985,917 | 29,192,923 |
Others | 16,936,986 | 2,657,782 | 9,291,029 | 9,010,238 |
Total | ¥ 651,376,905 | $ 102,215,250 | ¥ 401,659,306 | ¥ 338,826,479 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Details) - 2018 Share Incentive Plan | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2018shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥)$ / shares | Dec. 31, 2021USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum life of option | 6 years | ||||||
Number of stock options granted | 6,000 | 6,000 | |||||
Cash used to settle related share-based compensation | ¥ | ¥ 0 | ¥ 1,186,271 | ¥ 0 | ||||
Weighted-average grant date fair value | $ / shares | $ 2.42 | $ 3.57 | |||||
Aggregate grant date fair value of the outstanding options | 34,994,421 | 35,828,331 | 39,628,188 | $ 39,628,188 | $ 5,491,388 | ||
Fair value of share options vested | 8,319,569 | $ 1,305,522 | 8,610,259 | 11,316,415 | |||
Unrecognized compensation expense related to unvested options, net | ¥ 592,966 | $ 93,049 | |||||
Weighted-average period | 4 months 13 days | 4 months 13 days | |||||
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 | ¥ 2,464,763 | $ 386,775 | ¥ 232,558 | ¥ 26,490,395 |
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, 2021 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.92% | |
Volatility | 40.00% | |
Dividend yield | 2.50% | 2.50% |
Life of option | 6 years | 6 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.60% | |
Volatility | 37.98% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.60% | |
Volatility | 35.66% |
Share Based Compensation - Summ
Share Based Compensation - Summary of Share Option Activity Under Option Plans (Details) - 2018 Share Incentive Plan - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options, Beginning balance | 991,000 | |
Number of options, Granted | 6,000 | |
Number of options, Forfeited | (4,500) | |
Number of options, Ending balance | 992,500 | 991,000 |
Number of options, Vested and expected to vest | 992,500 | |
Number of options, Exercisable | 742,125 | |
Weighted average exercise price, Beginning balance | $ 12.27 | |
Weighted average exercise price, Granted | 12 | |
Weighted average exercise price, Forfeited | 12.27 | |
Weighted average exercise price, Ending balance | 12.27 | $ 12.27 |
Weighted average exercise price, Vested and expected to vest | 12.28 | |
Weighted average exercise price, Exercisable | $ 12.24 | |
Weighted average remaining contractual life, Outstanding | 2 years 1 month 20 days | 3 years 1 month 17 days |
Weighted average remaining contractual life, Vested and expected to vest | 2 years 1 month 20 days | |
Weighted average remaining contractual life, Exercisable | 2 years 1 month 20 days | |
Aggregate intrinsic value, Outstanding | $ 1,257,200 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Jan. 01, 2008 | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021USD ($) |
Income Taxes [Line Items] | |||||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Preferential income tax rate | 15.00% | ||||||
Operating loss carryforwards | ¥ 212,359,312 | $ 33,323,810 | |||||
Withholding income tax on dividends distributed to holding company outside of China | 10.00% | 10.00% | |||||
PRC withholding tax liability unrecognized | ¥ 31,950,214 | 5,013,686 | |||||
Amount of interest expenses reversed due to lapse of statute of limitation | ¥ 32,417,246 | $ 5,086,973 | |||||
Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards, expiration date | 2021 | 2021 | |||||
Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards, expiration date | 2025 | 2025 | |||||
Shanghai Evergreen Technology Co., Ltd. | |||||||
Income Taxes [Line Items] | |||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | ||||
Shanghai Evergreen Technology Co., Ltd. | Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Preferential Income Tax Rate Period | 2020 | 2020 | 2017 | ||||
Shanghai Evergreen Technology Co., Ltd. | Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Preferential Income Tax Rate Period | 2023 | 2023 | 2019 | ||||
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | |||||||
Income Taxes [Line Items] | |||||||
Preferential income tax rate | 15.00% | 15.00% | |||||
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Preferential Income Tax Rate Period | 2021 | 2021 | |||||
Shanghai Sipei Technology Co., Ltd. ("Shanghai Sipei") | Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Preferential Income Tax Rate Period | 2023 | 2023 | |||||
Inland Revenue, Hong Kong | GreenTree Hotels (Hong Kong), Limited. | |||||||
Income Taxes [Line Items] | |||||||
Statutory tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |||
PRC Subsidiaries | |||||||
Income Taxes [Line Items] | |||||||
Undistributed earnings of Groups PRC subsidiaries | ¥ 319,502,143 | 50,136,858 | |||||
Uncertain tax positions | 328,820,281 | 51,599,077 | |||||
Interest expense | 34,614,362 | $ 5,431,749 | |||||
Accumulated interest expense | 89,961,651 | $ 14,116,946 | |||||
Accumulated tax penalty recorded | ¥ 0 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Tax Expense (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Current tax | ¥ 105,353,756 | $ 16,532,303 | ¥ 122,931,256 | ¥ 197,233,190 |
Deferred tax | 3,535,126 | 554,739 | (12,472,054) | (7,665,373) |
Total | ¥ 108,888,882 | $ 17,087,042 | ¥ 110,459,202 | ¥ 189,567,817 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | Jan. 01, 2008 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Withholding tax on the PRC earnings distribution | 10.00% | 0.00% | 3.00% | ||
Effect of international rate difference | 1.00% | 1.00% | 0.00% | ||
Effect of preferential tax rate | (7.00%) | 0.00% | (5.00%) | ||
Tax effect of expenses that are not deductible in determining taxable profit | 20.00% | 5.00% | 7.00% | ||
Effective tax rate | 49.00% | 31.00% | 30.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | ¥ 53,089,828 | $ 8,330,952 | ¥ 22,229,252 |
Deferred revenue | 115,049,834 | 18,053,829 | 132,881,621 |
Deferred rent | 17,692,412 | 2,776,326 | 7,499,776 |
Bad debt expenses | 30,328,801 | 4,759,251 | 7,622,390 |
Accrued expenses | 17,687,519 | 2,775,558 | 15,971,223 |
Unrealised losses from equity securities | 7,534,182 | 1,182,278 | 5,213,960 |
Valuation allowance | (59,426,713) | (9,325,349) | (24,186,707) |
Total deferred tax assets | 181,955,863 | 28,552,845 | 167,231,515 |
Deferred tax liabilities: | |||
Depreciation of property and equipment | (6,099,754) | (957,185) | (3,990,387) |
Unrealized gains from equity securities | (880,803) | (138,217) | (805,803) |
Intangible assets arising from acquisition | (176,681,292) | (27,725,150) | (141,587,024) |
Withholding tax on PRC earnings to be distributed | (64,929,920) | (10,188,921) | (43,191,602) |
Total deferred tax liabilities | ¥ (248,591,769) | $ (39,009,473) | ¥ (189,574,816) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits beginning balance | ¥ 290,679,902 | ¥ 261,641,717 | |
Increases - tax positions in the current period | 108,672,095 | 37,621,483 | |
Decreases - tax positions in prior period | (70,531,716) | (8,583,298) | |
Unrecognized tax benefits - ending balance | ¥ 328,820,281 | $ 51,599,077 | ¥ 290,679,902 |
Mainland China Contribution P_2
Mainland China Contribution Plan and Profit Appropriation - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Compensation And Retirement Disclosure [Abstract] | ||||
Employee benefits | ¥ 36,617,173 | $ 5,746,033 | ¥ 25,666,575 | ¥ 28,700,397 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - Additional Information (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Statutory Reserves And Restricted Net Assets [Abstract] | ||||
Statutory reserve funds | ¥ 77,453,118 | $ 12,154,084 | ¥ 69,953,178 | ¥ 63,030,266 |
Restricted net assets | ¥ 936,799,320 | $ 147,004,256 | ¥ 777,732,187 | ¥ 509,435,466 |
Related Party Transactions an_3
Related Party Transactions and Balances - Schedule of Related Party Transactions or Balances with the Group (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Alex S. Xu | |
Related Party Transaction [Line Items] | |
Related Party | Alex S. Xu |
Nature of the party | Individual |
Relationship with the Group | Founder and CEO |
Hui Xu | |
Related Party Transaction [Line Items] | |
Related Party | Hui Xu |
Nature of the party | Individual |
Relationship with the Group | Brother of Alex S. Xu |
Yan Zhang | |
Related Party Transaction [Line Items] | |
Related Party | Yan Zhang |
Nature of the party | Individual |
Relationship with the Group | Executive officer for catering management entities controlled by GTI |
Wen Qi | |
Related Party Transaction [Line Items] | |
Related Party | Wen Qi |
Nature of the party | Individual |
Relationship with the Group | Vice president, human resources and administration of the Group |
GTI | |
Related Party Transaction [Line Items] | |
Related Party | GTI |
Nature of the party | Investment holding |
Relationship with the Group | Shareholder of the Group, controlled by Alex S. Xu |
Aotao | |
Related Party Transaction [Line Items] | |
Related Party | Shanghai Aotao Industrial Co., Ltd, together with its subsidiaries and VIE (“Aotao”) * |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Getao | |
Related Party Transaction [Line Items] | |
Related Party | Getao Industrial (HK) Limited (“Getao”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Shiquanmeiwei | |
Related Party Transaction [Line Items] | |
Related Party | Shiquanmeiwei (Beijing) Catering and Management Co., Ltd.(“Shiquanmeiwei”) * |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Da Niang Group | |
Related Party Transaction [Line Items] | |
Related Party | Da Niang Dumpling Catering Group Co., Ltd, together with its subsidiaries (“Da Niang Group”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Beifu | |
Related Party Transaction [Line Items] | |
Related Party | Beifu HongKong Indutrial Co,Limited (“Beifu HK”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
JYHM | |
Related Party Transaction [Line Items] | |
Related Party | Shanghai JYHM Restaurant Management Co., Ltd. (“JYHM”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Bellagio | |
Related Party Transaction [Line Items] | |
Related Party | Bellagio Restaurant Management Group (“Bellagio”) |
Nature of the party | Catering management |
Relationship with the Group | Controlled by GTI |
Napa | |
Related Party Transaction [Line Items] | |
Related Party | Napa Infinity Winery (Shanghai) Inc. (“Napa”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Yibon | |
Related Party Transaction [Line Items] | |
Related Party | Yibon |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Hanyuan | |
Related Party Transaction [Line Items] | |
Related Party | Shanxi Hanyuanbaili Hotel Management Co., Ltd. (“Hanyuan”) ** |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Related Party Transactions an_4
Related Party Transactions and Balances - Schedule of Related Party Balances (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current: | |||
Due from related parties, current | ¥ 310,419,860 | $ 48,711,650 | ¥ 9,770,871 |
Due to related parties, current | 9,530,627 | 1,495,563 | 3,198,253 |
GTI | |||
Current: | |||
Due from related parties, current | 206,256,382 | 32,366,128 | |
Aotao | |||
Current: | |||
Due from related parties, current | 65,206,135 | 10,232,265 | 122,719 |
Beifu | |||
Current: | |||
Due from related parties, current | 26,127,660 | 4,100,000 | |
Yibon | |||
Current: | |||
Due from related parties, current | 8,330,198 | 1,307,190 | 9,101,161 |
Due to related parties, current | 6,602,643 | 1,036,099 | 1,995,465 |
Hanyuan | |||
Current: | |||
Due from related parties, current | 3,406,100 | 534,491 | |
Napa | |||
Current: | |||
Due from related parties, current | 500,000 | 78,461 | 500,000 |
Due to related parties, current | 2,868,685 | 450,159 | 1,120,826 |
JYHM | |||
Current: | |||
Due from related parties, current | 481,227 | 75,515 | 46,991 |
Due to related parties, current | 27,992 | 4,392 | 27,962 |
Getao | |||
Current: | |||
Due from related parties, current | 112,158 | 17,600 | |
Da Niang Group | |||
Current: | |||
Due to related parties, current | ¥ 31,307 | $ 4,913 | ¥ 54,000 |
Related Party Transactions an_5
Related Party Transactions and Balances - Additional Information (Details) | May 16, 2022 | Dec. 31, 2021 |
Bellagio Cafe Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event | ||
Related Party Transaction [Line Items] | ||
Percentage of equity interests disposed | 83.90% | |
Yibon | ||
Related Party Transaction [Line Items] | ||
Interest rate percentage | 6.00% | |
Green Tree Inn, Aotao, Beifu HK | Related Party Loans | ||
Related Party Transaction [Line Items] | ||
Long term, maturity period | 1 year | |
GTI | Da Niang Dumpling Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event | ||
Related Party Transaction [Line Items] | ||
Percentage of equity interests disposed | 100.00% | |
Hanyuan | ||
Related Party Transaction [Line Items] | ||
Percentage of equity interests disposed | 5.00% |
Related Party Transactions an_6
Related Party Transactions and Balances - Schedule of Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Related Party Transaction [Line Items] | |||||
Loans to related parties | ¥ (604,618,942) | $ (94,877,906) | ¥ (528,356,500) | ¥ (634,638,425) | |
Sublease revenue from related party | 74,689,226 | 11,720,369 | 77,676,665 | 74,893,930 | |
Aotao | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | (186,051,400) | (29,195,524) | (479,356,500) | (167,279,750) | |
Repayment from related party | 121,000,000 | 18,987,540 | 499,421,550 | 157,279,750 | |
Advertising service from related party | (6,473,400) | (1,015,818) | (3,920,000) | ||
Interest income from related party | 2,316,856 | 1,316,854 | |||
Franchise management fee to related party | (49,648) | (7,791) | (41,867) | (24,941) | |
Da Niang Group | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | (39,800,000) | (6,245,488) | (40,000,000) | (274,800,000) | |
Repayment from related party | 39,800,000 | 6,245,488 | 40,000,000 | 274,800,000 | |
Interest income from related party | 352,882 | 875,315 | |||
Purchase from related party | (221,389) | (724,045) | (339,121) | $ (34,741) | |
Sublease revenue from related party | 27,000 | 4,237 | 36,000 | ||
JYHM | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (667,751) | (40,000) | (18,418) | (104,785) | |
Sublease revenue from related party | 261,392 | 41,018 | 284,179 | 385,355 | |
Advance from/(Repayment to) related party | 312,141 | ||||
GTI | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | (206,256,382) | (32,366,127) | (192,558,675) | ||
Repayment from related party | 8,424,629 | 184,134,046 | |||
Interest income from related party | 907,880 | ||||
Napa | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | (2,547,178) | (2,059,566) | (3,576,659) | (399,708) | |
Revenue from related party | 2,358,491 | ||||
Yibon | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | (3,000,000) | (470,766) | (9,000,000) | ||
Repayment from related party | 3,750,000 | 588,457 | |||
Interest income from related party | 544,352 | 85,421 | 18,667,117 | ||
Revenue from related party | 1,251,888 | 196,449 | ¥ 852,287 | ¥ 681,239 | |
Beifu | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | (169,511,160) | (26,600,000) | |||
Getao | |||||
Related Party Transaction [Line Items] | |||||
Repayment from related party | 143,383,500 | 22,500,000 | |||
Hanyuan | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | (3,406,100) | $ (534,491) | |||
Bellagio | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | ¥ (367,804) | $ (57,716) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements (Details) - Dec. 31, 2021 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2022 | ¥ 242,184,649 | $ 38,004,056 |
2023 | 245,430,752 | 38,513,441 |
2024 | 237,485,118 | 37,266,597 |
2025 | 227,387,087 | 35,681,996 |
2026 | 221,263,039 | 34,720,999 |
Thereafter | 1,544,810,968 | 242,414,551 |
Total | ¥ 2,718,561,613 | $ 426,601,640 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2021 |
Minimum | |
Operating Leased Assets [Line Items] | |
Lease agreement period | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Lease agreement period | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants (Details) - Dec. 31, 2021 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2022 | ¥ 76,370,033 | $ 11,984,125 |
2023 | 69,781,327 | 10,950,213 |
2024 | 63,727,168 | 10,000,183 |
2025 | 60,375,233 | 9,474,192 |
2026 | 55,245,491 | 8,669,223 |
Thereafter | 226,933,574 | 35,610,830 |
Total | ¥ 552,432,826 | $ 86,688,766 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earning Per Share (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income - basic | ¥ 117,438,250 | $ 18,428,624 | ¥ 261,344,391 | ¥ 442,718,263 |
Net income - diluted | ¥ 117,438,250 | $ 18,428,624 | ¥ 261,344,391 | ¥ 442,718,263 |
Common Class A | ||||
Denominator: | ||||
Weighted average shares outstanding basic | 68,286,954 | 68,286,954 | 68,286,954 | 67,315,727 |
Weighted average shares outstanding diluted | 68,286,954 | 68,286,954 | 68,286,954 | 67,315,727 |
Allocation of undistributed earnings - basic and diluted: | ||||
Allocation of undistributed earnings - basic | ¥ 77,821,553 | $ 12,211,900 | ¥ 173,182,301 | ¥ 291,950,431 |
Allocation of undistributed earnings - diluted | ¥ 77,821,553 | $ 12,211,900 | ¥ 173,182,301 | ¥ 291,950,431 |
Basic and diluted earnings per share: | ||||
Basic earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Diluted earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Common Class B | ||||
Denominator: | ||||
Weighted average shares outstanding basic | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Weighted average shares outstanding diluted | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Allocation of undistributed earnings - basic and diluted: | ||||
Allocation of undistributed earnings - basic | ¥ 39,616,697 | $ 6,216,724 | ¥ 88,162,090 | ¥ 150,767,832 |
Allocation of undistributed earnings - diluted | ¥ 39,616,697 | $ 6,216,724 | ¥ 88,162,090 | ¥ 150,767,832 |
Basic and diluted earnings per share: | ||||
Basic earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Diluted earnings per share | (per share) | ¥ 1.14 | $ 0.18 | ¥ 2.54 | ¥ 4.34 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | Nov. 30, 2019 | Jan. 31, 2020 | Dec. 31, 2020 |
Common Class A | |||
Earnings Per Share [Line Items] | |||
Business acquisition, shares issued | 870,908 | ||
Urban Hotel Group | |||
Earnings Per Share [Line Items] | |||
Business acquisition, shares issued | 870,908 | ||
Urban Hotel Group | Common Class A | |||
Earnings Per Share [Line Items] | |||
Business acquisition, shares issued | 870,908 |
Subsequent Events (Details)
Subsequent Events (Details) | May 16, 2022CNY (¥)item | May 13, 2022USD ($)shares | Jan. 31, 2022CNY (¥) | Jan. 31, 2022USD ($) | May 16, 2022USD ($)item | Jan. 31, 2022USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Subsequent Event [Line Items] | |||||||||
Amounts due from related parties | ¥ 310,419,860 | $ 48,711,650 | ¥ 9,770,871 | ||||||
GTI | |||||||||
Subsequent Event [Line Items] | |||||||||
Amounts due from related parties | 206,256,382 | 32,366,128 | |||||||
Aotao | |||||||||
Subsequent Event [Line Items] | |||||||||
Amounts due from related parties | 65,206,135 | 10,232,265 | ¥ 122,719 | ||||||
Beifu | |||||||||
Subsequent Event [Line Items] | |||||||||
Amounts due from related parties | ¥ 26,127,660 | $ 4,100,000 | |||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares repurchased value | $ | $ 20,000,000 | ||||||||
ADS shares | shares | 1 | ||||||||
Repurchase period | 12 months | ||||||||
Subsequent Event | Sale and purchase agreement with GTI | Gen-Spring Limited | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of restaurants | item | 2 | 2 | |||||||
Subsequent Event | GTI and Subsidiaries | |||||||||
Subsequent Event [Line Items] | |||||||||
Amounts due from related parties | ¥ 403,500,000 | ¥ 162,000,000 | $ 63,100,000 | $ 25,400,000 | |||||
Repayment of debt, related party | ¥ 42,000,000 | $ 6,600,000 | |||||||
Subsequent Event | GTI | |||||||||
Subsequent Event [Line Items] | |||||||||
Amounts due to related parties | ¥ 3,700,000 | $ 600,000 | |||||||
Subsequent Event | Bellagio | Sale and purchase agreement with GTI | Gen-Spring Limited | |||||||||
Subsequent Event [Line Items] | |||||||||
Percentage of issued and outstanding equity interests acquired | 83.90% | 83.90% | |||||||
Consideration | ¥ | ¥ 399,800,000 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 298,428,709 | $ 46,829,977 | ¥ 611,358,209 | ¥ 319,847,701 | |
Investments in equity securities | 157,988,851 | 24,791,898 | 242,378,696 | ||
Amounts due from a related party | 310,419,860 | 48,711,650 | 9,770,871 | ||
Current | 142,737,163 | 22,398,576 | 77,649,794 | ||
Total current assets | 1,831,206,325 | 287,356,234 | 1,584,298,985 | ||
Non-current assets: | |||||
TOTAL ASSETS | 4,667,060,561 | 732,363,645 | 4,094,954,517 | ||
Current liabilities: | |||||
Dividends payable | 40,999,458 | 6,433,710 | |||
Short-term bank loans | 356,000,000 | 55,864,168 | 150,000,000 | $ 150,000,000 | |
Long-term bank loans | 352,000,000 | 55,236,481 | |||
Total current liabilities | 1,249,949,292 | 196,144,319 | 869,529,464 | ||
Non-current liabilities: | |||||
Other long-term liabilities | 132,046,925 | 20,721,044 | 115,862,713 | ||
Total liabilities | 2,624,133,423 | 411,783,797 | 1,845,029,834 | ||
Shareholders' equity: | |||||
Additional paid-in capital | 1,151,384,306 | 180,677,323 | 1,149,280,404 | ||
Retained earnings | 326,298,618 | 51,203,374 | 570,042,924 | ||
Accumulated other comprehensive income | 41,880,907 | 6,572,028 | 45,586,647 | ||
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,857,685,111 | 291,511,332 | 2,103,031,255 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,667,060,561 | 732,363,645 | 4,094,954,517 | ||
Common Class A | |||||
Shareholders' equity: | |||||
Ordinary shares, value | 222,587,070 | 34,928,768 | 222,587,070 | ||
Common Class B | |||||
Shareholders' equity: | |||||
Ordinary shares, value | 115,534,210 | 18,129,839 | 115,534,210 | ||
Parent Company | |||||
Current assets: | |||||
Cash and cash equivalents | 22,609,979 | 3,547,999 | 193,351,177 | ||
Investments in equity securities | 59,114,452 | 9,276,347 | 65,420,098 | ||
Amounts due from subsidiaries | 113,057,771 | 17,741,232 | 14,683,443 | ||
Amounts due from a related party | 202,502,545 | 31,777,068 | |||
Current | 1,356,058 | ||||
Total current assets | 397,284,747 | 62,342,646 | 274,810,776 | ||
Non-current assets: | |||||
Investments in subsidiaries | 1,977,459,895 | 310,306,609 | 1,852,091,157 | ||
Equity securities with readily determinable fair values | 39,852,428 | 6,253,716 | 236,812,139 | ||
TOTAL ASSETS | 2,414,597,070 | 378,902,971 | 2,363,714,072 | ||
Current liabilities: | |||||
Dividends payable | 40,999,458 | 6,433,710 | |||
Short-term bank loans | 30,200,000 | 4,739,039 | |||
Long-term bank loans | 121,800,000 | 19,113,078 | |||
Amounts due to subsidiaries | 350,308,050 | 54,970,977 | 248,360,177 | ||
Total current liabilities | 543,307,508 | 85,256,804 | 248,360,177 | ||
Non-current liabilities: | |||||
Other long-term liabilities | 13,604,452 | 2,134,835 | 12,322,640 | ||
Total liabilities | 556,911,960 | 87,391,639 | 260,682,817 | ||
Shareholders' equity: | |||||
Additional paid-in capital | 1,151,384,306 | 180,677,323 | 1,149,280,404 | ||
Retained earnings | 326,298,618 | 51,203,374 | 570,042,924 | ||
Accumulated other comprehensive income | 41,880,907 | 6,572,028 | 45,586,647 | ||
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,857,685,111 | 291,511,332 | 2,103,031,255 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,414,597,070 | 378,902,971 | 2,363,714,072 | ||
Parent Company | Common Class A | |||||
Shareholders' equity: | |||||
Ordinary shares, value | 222,587,070 | 34,928,768 | 222,587,070 | ||
Parent Company | Common Class B | |||||
Shareholders' equity: | |||||
Ordinary shares, value | ¥ 115,534,210 | $ 18,129,839 | ¥ 115,534,210 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, issued | 68,286,954 | 68,286,954 | 67,416,046 | |
Common stock, outstanding | 68,286,954 | 68,286,954 | 67,416,046 | 66,789,300 |
Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 | |
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 | 34,762,909 |
Parent Company | Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, issued | 68,286,954 | 68,286,954 | 67,416,046 | |
Common stock, outstanding | 68,286,954 | 68,286,954 | 67,416,046 | |
Parent Company | Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | $ 0.50 | |
Common stock, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Common stock, issued | 34,762,909 | 34,762,909 | 34,762,909 | |
Common stock, outstanding | 34,762,909 | 34,762,909 | 34,762,909 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed Statements of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
General and administrative expenses | ¥ (356,046,265) | $ (55,871,428) | ¥ (163,420,554) | ¥ (184,989,324) |
Interest expenses | (12,671,385) | (1,988,417) | (3,456,316) | (2,505,904) |
Share of profit in subsidiaries, net (Note a) | 382,874 | 60,081 | 909,364 | 140,564 |
Income before income taxes and share of gains in equity method investments | 222,182,847 | 34,865,337 | 354,252,573 | 626,079,555 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | (6,497,403) | (1,019,584) | (19,714,207) | 2,933,162 |
Comprehensive income attributable to ordinary shareholders | 113,732,510 | 17,847,113 | 241,630,184 | 445,651,425 |
Parent Company | ||||
General and administrative expenses | (18,917,120) | (2,968,509) | (9,967,834) | (33,538,433) |
interest income | 173,316 | 27,197 | 8,173 | 5,970,063 |
Interest expenses | (646,315) | |||
Gains on investments in equity securities | 11,519,174 | 1,807,610 | (11,392,623) | 6,473,358 |
Share of profit in subsidiaries, net (Note a) | 124,662,880 | 19,562,326 | 282,696,675 | 464,459,590 |
Income before income taxes and share of gains in equity method investments | 117,438,250 | 18,428,624 | 261,344,391 | 442,718,263 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | (6,497,403) | (1,019,584) | (19,714,207) | 2,933,162 |
Unrealized gains on available-for-sale investments, net of reclassification | 2,791,663 | 438,073 | ||
Comprehensive income attributable to ordinary shareholders | ¥ 113,732,510 | $ 17,847,113 | ¥ 241,630,184 | ¥ 445,651,425 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating activities: | ||||
Net income | ¥ 113,676,839 | $ 17,838,376 | ¥ 244,702,736 | ¥ 437,774,169 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Share-based compensation | 2,464,763 | 386,775 | 232,558 | 26,490,395 |
Share of profit in subsidiaries, net | (382,874) | (60,081) | (909,364) | (140,564) |
Changes in operating assets and liabilities: | ||||
Other current assets | (60,345,480) | (9,469,523) | (18,807,170) | 10,990,176 |
Other long-term liabilities | 14,648,804 | 2,298,717 | (5,549,798) | 21,538,701 |
Net cash provided by operating activities | 360,975,140 | 56,644,875 | 295,256,932 | 513,939,897 |
Investing activities: | ||||
Loans to related parties | (604,618,942) | (94,877,906) | (528,356,500) | (634,638,425) |
Repayment from related parties | 307,933,500 | 48,321,486 | 539,996,179 | 458,752,530 |
Net cash used in investing activities | (928,388,186) | (145,684,365) | (111,552,657) | (1,219,956,395) |
Financing activities: | ||||
Distribution to the shareholders (Note 1) | (320,253,160) | (50,254,709) | (226,951,236) | |
Net cash (used in)/ generated from financing activities | 255,627,743 | 40,113,572 | 115,527,872 | (212,231,755) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,344,197) | (210,933) | (7,664,261) | (6,917,309) |
Net (decrease)/ increase in cash and cash equivalents and restricted cash | (313,129,500) | (49,136,851) | 291,567,886 | (925,165,562) |
Cash and cash equivalents and restricted cash at the beginning of the year | 633,728,109 | 99,445,769 | 342,160,223 | 1,267,325,785 |
Cash and cash equivalents and restricted cash at the end of the year | 320,598,609 | 50,308,918 | 633,728,109 | 342,160,223 |
Parent Company | ||||
Operating activities: | ||||
Net income | 117,438,250 | 18,428,624 | 261,344,391 | 442,718,263 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Share-based compensation | 2,464,762 | 386,775 | 232,558 | 26,490,395 |
Losses and impairment (Gains) on equity securities held | (11,519,174) | (1,807,610) | 11,392,623 | (6,473,358) |
Share of profit in subsidiaries, net | (124,662,880) | (19,562,326) | (282,696,675) | (464,459,590) |
Changes in operating assets and liabilities: | ||||
Other current assets | 1,060,670 | 1,700,582 | ||
Bad debt | 1,356,058 | 212,795 | ||
Amounts due from subsidiaries | (145,361) | (22,810) | (8,411,575) | (6,271,868) |
Amounts due to subsidiaries | (2,552,126) | (400,484) | 243,436,001 | (2,166,524) |
Other long-term liabilities | 1,281,813 | 201,144 | 4,846,781 | 7,475,856 |
Net cash provided by operating activities | (16,338,658) | (2,563,892) | 231,204,774 | (986,244) |
Investing activities: | ||||
Payment on behalf of subsidiaries | (98,589,828) | (15,470,895) | ||
Payment for acquisitions | (6,041,736) | (52,903,471) | ||
Investment to subsidiaries | (2,938,656) | (2,938,656) | ||
Proceeds from disposal of equity securities and dividends received from equity securities | 210,930,633 | 33,099,619 | ||
Purchases of investments in equity securities | (65,114,997) | (247,415,003) | ||
Loans to related parties | (368,750,648) | (57,865,024) | (192,558,675) | |
Repayment from related parties | 143,383,500 | 22,500,000 | 8,424,629 | 26,672,779 |
Net cash used in investing activities | (113,026,343) | (17,736,300) | (65,670,760) | (469,143,026) |
Financing activities: | ||||
Proceeds from bank loans | 152,000,000 | 23,852,117 | ||
Distribution to the shareholders (Note 1) | (195,683,098) | (30,706,948) | (226,951,236) | |
Net cash (used in)/ generated from financing activities | (43,683,098) | (6,854,831) | (226,951,236) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 2,306,901 | 362,003 | 5,679,523 | (2,355,347) |
Net (decrease)/ increase in cash and cash equivalents and restricted cash | (170,741,198) | (26,793,020) | 171,213,537 | (699,435,853) |
Cash and cash equivalents and restricted cash at the beginning of the year | 193,351,177 | 30,341,019 | 22,137,640 | 721,573,493 |
Cash and cash equivalents and restricted cash at the end of the year | ¥ 22,609,979 | $ 3,547,999 | ¥ 193,351,177 | ¥ 22,137,640 |