Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Entity Registrant Name | GreenTree Hospitality Group Ltd. |
Entity Central Index Key | 0001724755 |
Trading Symbol | GHG |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2018 |
Document Type | 20-F |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 66,789,300 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 34,762,909 |
STATEMENTS OF CONSOLIDATED BALA
STATEMENTS OF CONSOLIDATED BALANCE SHEETS | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,264,025,785 | $ 183,844,925 | ¥ 161,963,665 |
Short-term investments | 685,512,063 | 99,703,594 | 781,850,000 |
Trading securities | 307,693,782 | 44,752,204 | 307,754,960 |
Accounts receivable, net of allowance for doubtful accounts of RMB4,714,042 and RMB6,433,215 (USD935,672) as of December 31, 2017 and 2018 respectively | 64,864,184 | 9,434,104 | 53,882,894 |
Amounts due from related parties | 228,600 | 33,248 | 3,248,692 |
Prepaid rent | 4,478,413 | 651,358 | 4,292,472 |
Inventories | 2,547,729 | 370,552 | 2,355,154 |
Other current assets | 53,969,039 | 7,849,474 | 127,269,801 |
Loans receivable, net | 67,196,568 | 9,773,335 | 6,600,000 |
Deferred tax assets | 36,207,884 | ||
Total current assets | 2,450,516,163 | 356,412,794 | 1,485,425,522 |
Amounts due from related parties | 2,600,000 | ||
Restricted cash | 3,300,000 | 479,965 | 3,000,000 |
Loans receivable, net | 39,352,863 | 5,723,637 | |
Property and equipment, net | 222,389,573 | 32,345,222 | 96,669,251 |
Intangible assets, net | 27,213,391 | 3,958,024 | 3,727,383 |
Goodwill | 5,787,068 | 841,694 | 2,959,183 |
Long-term investments | 112,219,460 | 16,321,644 | 122,508,832 |
Other assets | 85,701,523 | 12,464,768 | 5,741,301 |
Deferred tax assets | 67,909,969 | 9,877,095 | 33,351,457 |
TOTAL ASSETS | 3,014,390,010 | 438,424,843 | 1,755,982,929 |
Current liabilities: | |||
Short-term debt | 60,000,000 | 8,726,638 | |
Accounts payable | 9,182,058 | 1,335,475 | 7,293,341 |
Advance from customers | 36,370,325 | 5,289,844 | 33,662,363 |
Amounts due to related parties | 285,578 | 41,536 | 473,018 |
Salary and welfare payable | 42,767,219 | 6,220,234 | 44,577,683 |
Deferred rent | 4,421,427 | 643,070 | 2,916,205 |
Deferred revenue | 153,389,895 | 22,309,635 | 109,101,986 |
Accrued expenses and other current liabilities | 264,058,985 | 38,405,786 | 293,741,951 |
Income tax payable | 104,988,638 | 15,269,964 | 103,830,578 |
Dividends payable | 39,691,103 | ||
Deferred tax liabilities | 27,745,951 | ||
Total current liabilities | 675,464,125 | 98,242,182 | 663,034,179 |
Deferred rent | 20,519,682 | 2,984,464 | 23,050,635 |
Deferred revenue | 145,545,929 | 21,168,777 | 144,258,584 |
Other long-term liabilities | 96,573,810 | 14,046,079 | 73,937,277 |
Deferred tax liabilities | 43,538,624 | 6,332,430 | 5,797,260 |
Unrecognized tax benefits | 169,619,409 | 24,670,120 | 113,299,633 |
Total liabilities | 1,151,261,579 | 167,444,052 | 1,023,377,568 |
Shareholders’ equity: | |||
Additional paid-in capital | 1,003,026,803 | 145,884,198 | 212,309,734 |
Retained earnings | 456,398,812 | 66,380,454 | 223,134,889 |
Accumulated other comprehensive (loss) income | 62,367,692 | 9,071,005 | (4,086,149) |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,854,749,384 | 269,762,110 | 732,245,241 |
Noncontrolling interests | 8,379,047 | 1,218,681 | 360,120 |
Total shareholders’ equity | 1,863,128,431 | 270,980,791 | 732,605,361 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,014,390,010 | 438,424,843 | 1,755,982,929 |
Common Class A | |||
Shareholders’ equity: | |||
Ordinary shares, value | 217,421,867 | 31,622,699 | 160,189,926 |
Total shareholders’ equity | 217,421,867 | 31,622,699 | 160,189,926 |
Common Class B | |||
Shareholders’ equity: | |||
Ordinary shares, value | 115,534,210 | 16,803,754 | 140,696,841 |
Total shareholders’ equity | ¥ 115,534,210 | $ 16,803,754 | ¥ 140,696,841 |
STATEMENTS OF CONSOLIDATED BA_2
STATEMENTS OF CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares |
Allowance for doubtful accounts receivable | ¥ 6,433,215 | $ 935,672 | ¥ 4,714,042 |
Common Class A | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 400,000,000 | 60,000,000 |
Common stock, issued | 66,789,300 | 66,789,300 | 48,635,252 |
Common stock, outstanding | 66,789,300 | 66,789,300 | 48,635,252 |
Common Class B | |||
Common stock, par value | $ / shares | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 100,000,000 | 200,000,000 |
Common stock, issued | 34,762,909 | 34,762,909 | 42,716,957 |
Common stock, outstanding | 34,762,909 | 34,762,909 | 42,716,957 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | ¥ 945,005,934 | $ 137,445,413 | ¥ 778,131,813 | ¥ 647,788,607 |
Operating costs and expenses: | ||||
Hotel operating costs | (280,954,345) | (40,863,115) | (233,646,052) | (240,132,208) |
Selling and marketing expenses | (50,393,151) | (7,329,380) | (45,032,441) | (26,609,110) |
General and administrative expenses | (95,261,152) | (13,855,159) | (121,657,492) | (77,932,944) |
Other operating expenses | (5,946,226) | (864,843) | (5,629,448) | (3,072,559) |
Total operating costs and expenses | (432,554,874) | (62,912,497) | (405,965,433) | (347,746,821) |
Other operating income | 22,570,806 | 3,282,787 | 15,283,828 | 12,221,732 |
Income from operations | 535,021,866 | 77,815,703 | 387,450,208 | 312,263,518 |
Interest income and other, net | 49,659,928 | 7,222,737 | 26,238,440 | 22,039,369 |
Interest expense | (541,876) | (78,813) | (1,442,709) | |
Gains (Loss) from trading securities | (57,774,952) | (8,403,018) | 59,165,221 | 24,564,162 |
Other income, net | 35,735,374 | 5,197,495 | 1,191,211 | 1,321,699 |
Income before income taxes and share of loss of equity investees | 562,100,340 | 81,754,104 | 472,602,371 | 360,188,748 |
Income tax expense | (160,185,845) | (23,298,065) | (186,651,155) | (83,923,610) |
Income before share of loss in equity investees | 401,914,495 | 58,456,039 | 285,951,216 | 276,265,138 |
Share of loss in equity investees, net of tax | (8,300,584) | (1,207,270) | (899,584) | (10,464,579) |
Net income | 393,613,911 | 57,248,769 | 285,051,632 | 265,800,559 |
Net loss attributable to noncontrolling interests | 490,930 | 71,403 | 348,550 | 173,040 |
Net income attributable to ordinary shareholders | 394,104,841 | 57,320,172 | 285,400,182 | 265,973,599 |
Other comprehensive income, net of tax | ||||
-Foreign currency translation adjustments | 66,453,841 | 9,665,310 | 1,317,020 | 1,875,003 |
Comprehensive income, net of tax | 460,067,752 | 66,914,079 | 286,368,652 | 267,675,562 |
Comprehensive loss attributable to noncontrolling interests | 490,930 | 71,403 | 348,550 | 173,040 |
Comprehensive income attributable to ordinary shareholders | 460,558,682 | 66,985,482 | 286,717,202 | 267,848,602 |
Leased And Operated Hotels | ||||
Revenues: | ||||
Total revenues | 213,172,025 | 31,004,585 | 193,542,455 | 189,285,028 |
Franchised And Managed Hotels | ||||
Revenues: | ||||
Total revenues | ¥ 731,833,909 | $ 106,440,828 | ¥ 584,589,358 | ¥ 458,503,579 |
Common Class A | ||||
Net earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 3.97 | $ 0.58 | ¥ 3.12 | ¥ 2.91 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 62,860,578 | 62,860,578 | 48,635,252 | 48,635,252 |
Common Class B | ||||
Net earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 3.97 | $ 0.58 | ¥ 3.12 | ¥ 2.91 |
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 36,288,343 | 36,288,343 | 42,716,957 | 42,716,957 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Franchised And Managed Hotels | |||
Franchise revenue from related parties | ¥ 434,346 | ¥ 633,405 | ¥ 693,111 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | CNY (¥) | USD ($) | Initial Public OfferingCNY (¥) | Common Class ACNY (¥)shares | Common Class AUSD ($)shares | Common Class AInitial Public OfferingCNY (¥)shares | Common Class BCNY (¥)shares | Common Class BUSD ($)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Additional Paid-in CapitalInitial Public OfferingCNY (¥) | Retained EarningsCNY (¥) | Retained EarningsUSD ($) | AOCI Attributable to ParentCNY (¥) | AOCI Attributable to ParentUSD ($) | ParentCNY (¥) | ParentUSD ($) | ParentInitial Public OfferingCNY (¥) | Noncontrolling InterestCNY (¥) | Noncontrolling InterestUSD ($) |
Balance at Dec. 31, 2015 | ¥ 777,202,979 | ¥ 160,189,926 | ¥ 140,696,841 | ¥ 174,261,734 | ¥ 308,450,940 | ¥ (7,278,172) | ¥ 776,321,269 | ¥ 881,710 | ||||||||||||
Balance, shares at Dec. 31, 2015 | shares | 48,635,252 | 48,635,252 | 42,716,957 | 42,716,957 | ||||||||||||||||
Distribution to the shareholders | (17,956,030) | (17,956,030) | (17,956,030) | |||||||||||||||||
Net income (loss) | 265,800,559 | 265,973,599 | 265,973,599 | (173,040) | ||||||||||||||||
Foreign currency translation adjustments | 1,875,003 | 1,875,003 | 1,875,003 | |||||||||||||||||
Balance at Dec. 31, 2016 | 1,026,922,511 | ¥ 160,189,926 | ¥ 140,696,841 | 174,261,734 | 556,468,509 | (5,403,169) | 1,026,213,841 | 708,670 | ||||||||||||
Balance, shares at Dec. 31, 2016 | shares | 48,635,252 | 48,635,252 | 42,716,957 | 42,716,957 | ||||||||||||||||
Distribution to the shareholders | (618,733,802) | (618,733,802) | (618,733,802) | |||||||||||||||||
Net income (loss) | 285,051,632 | 285,400,182 | 285,400,182 | (348,550) | ||||||||||||||||
Foreign currency translation adjustments | 1,317,020 | 1,317,020 | 1,317,020 | |||||||||||||||||
Share-based compensation | 38,048,000 | 38,048,000 | 38,048,000 | |||||||||||||||||
Balance at Dec. 31, 2017 | 732,605,361 | ¥ 160,189,926 | ¥ 140,696,841 | 212,309,734 | 223,134,889 | (4,086,149) | 732,245,241 | 360,120 | ||||||||||||
Balance, shares at Dec. 31, 2017 | shares | 48,635,252 | 48,635,252 | 42,716,957 | 42,716,957 | ||||||||||||||||
Redesignation Class B ordinary shares as ClassA ordinary shares | ¥ 25,162,631 | ¥ (25,162,631) | ||||||||||||||||||
Redesignation Class B ordinary shares as Class A ordinary shares, shares | shares | 7,954,048 | 7,954,048 | (7,954,048) | (7,954,048) | ||||||||||||||||
Distribution to the shareholders | (160,840,918) | (160,840,918) | (160,840,918) | |||||||||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of issuance cost | ¥ 806,677,429 | ¥ 32,069,310 | ¥ 774,608,119 | ¥ 806,677,429 | ||||||||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of issuance cost, shares | shares | 10,200,000 | |||||||||||||||||||
Acquisitions of subsidiaries and business | 8,509,857 | 8,509,857 | ||||||||||||||||||
Net income (loss) | 393,613,911 | $ 57,248,769 | 394,104,841 | 394,104,841 | (490,930) | |||||||||||||||
Foreign currency translation adjustments | 66,453,841 | 9,665,310 | 66,453,841 | 66,453,841 | ||||||||||||||||
Share-based compensation | 16,108,950 | 16,108,950 | 16,108,950 | |||||||||||||||||
Balance at Dec. 31, 2018 | ¥ 1,863,128,431 | $ 270,980,791 | ¥ 217,421,867 | $ 31,622,699 | ¥ 115,534,210 | $ 16,803,754 | ¥ 1,003,026,803 | $ 145,884,198 | ¥ 456,398,812 | $ 66,380,454 | ¥ 62,367,692 | $ 9,071,005 | ¥ 1,854,749,384 | $ 269,762,110 | ¥ 8,379,047 | $ 1,218,681 | ||||
Balance, shares at Dec. 31, 2018 | shares | 66,789,300 | 66,789,300 | 34,762,909 | 34,762,909 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Operating activities: | ||||
Net income (loss) | ¥ 393,613,911 | $ 57,248,769 | ¥ 285,051,632 | ¥ 265,800,559 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 25,549,965 | 3,716,088 | 24,956,433 | 35,354,865 |
Impairment of long-lived assets | 5,008,677 | 728,482 | ||
Share of loss in equity method investments | 8,300,584 | 1,207,270 | 899,584 | 10,464,579 |
Gain from disposal of a long-term investment | (36,723,048) | (5,341,146) | (1,649,041) | (35,719,805) |
Interest income | (20,447,590) | (2,973,979) | (14,698,429) | (15,310,169) |
Interest expenses | 1,442,709 | |||
Bad debt expense | 1,978,374 | 287,743 | 483,610 | 1,866,310 |
(Gain) loss from trading securities | 57,774,952 | 8,403,018 | (59,165,221) | (24,564,162) |
Loss (Gain) on disposal of property and equipment | (267,849) | (38,957) | 3,899,331 | 2,750,182 |
Foreign exchange (gain) loss | 430,430 | 62,603 | 2,784,857 | (4,452,855) |
Share-based compensation | 16,108,950 | 2,342,950 | 38,048,000 | |
Income tax expenses related to dividend distribution | 23,345,894 | 3,395,519 | 67,675,809 | |
Gains from the acquisition of an equity method investment | (1,344,212) | (195,508) | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | 7,200,000 | (10,200,000) | ||
Accounts receivable | (12,368,310) | (1,798,896) | (17,931,396) | (1,436,586) |
Prepaid rent | (185,941) | (27,044) | 8,548,750 | 1,874,561 |
Inventories | 621,293 | 90,363 | (510,999) | 53,480 |
Amounts due from related parties | 1,694,216 | 246,413 | 13,816,640 | 16,804,025 |
Other current assets | (13,933,400) | (2,026,527) | (5,892,325) | (10,018,050) |
Loans receivable | 1,515,836 | |||
Other assets | (1,964,823) | (285,772) | 1,728,263 | 849,292 |
Accounts payable | 1,183,032 | 172,065 | (407,953) | 134,100 |
Amounts due to related parties | (187,440) | (27,262) | 290,093 | 182,925 |
Salary and welfare payable | (2,203,639) | (320,506) | 7,507,074 | 5,922,207 |
Deferred revenue | 45,575,254 | 6,628,646 | 52,004,162 | 50,255,944 |
Advance from customers | 2,707,962 | 393,857 | (2,116,543) | 17,310,323 |
Accrued expenses and other current liabilities | (4,468,873) | (649,971) | 44,287,986 | 105,419,762 |
Income tax payable | 4,328,055 | 629,489 | 20,753,618 | 6,062,490 |
Unrecognized tax benefits | 56,319,776 | 8,191,372 | 9,610,768 | 25,212,613 |
Deferred rent | (1,025,731) | (149,186) | (15,846,523) | (5,935,719) |
Other long-term liabilities | 22,636,533 | 3,292,347 | 10,672,479 | 15,656,106 |
Deferred taxes | (17,107,359) | (2,488,162) | (6,777,448) | (12,296,224) |
Net cash provided by operating activities | 554,949,643 | 80,714,078 | 476,665,920 | 443,556,589 |
Investing activities: | ||||
Purchases of property and equipment | (138,471,216) | (20,139,803) | (16,552,148) | (5,837,534) |
Purchases of intangible assets | (3,491,958) | (507,884) | (15,386) | (255,788) |
Proceeds from disposal of property and equipment | 126,301 | 18,370 | 2,678,696 | |
Acquisitions, net of cash received | (13,302,894) | (1,934,826) | ||
Increase in long-term investments | (100,701,474) | (2,090,123) | ||
Proceeds from disposal of a long-term investment | 89,182,803 | 12,971,101 | 63,986,039 | |
Advance for acquisitions | (18,121,700) | (2,635,692) | ||
Advance to equity method investees | (14,200,539) | |||
Prepayments for investments | (9,000,000) | |||
Purchases of short-term investments | (772,540,145) | (112,361,304) | (781,850,000) | (368,000,000) |
Proceeds from short-term investments | 889,325,672 | 129,347,054 | 564,709,574 | |
Increase of long-term time deposits | (60,000,000) | (8,726,638) | ||
Purchases of trading securities | (88,258,150) | (12,836,616) | (39,972,398) | (164,576,117) |
Proceeds from disposal of trading securities | 30,544,376 | 4,442,495 | 64,874,851 | 129,262,486 |
Loan to related parties | (4,300,000) | (625,409) | (3,500,000) | (150,000,000) |
Repayment of loan from a related party | 128,110,474 | 30,000,000 | ||
Repayment from a related party | 8,671,250 | |||
Loan to third parties | (166,819,164) | (24,262,841) | ||
Repayment from third party | 118,380,000 | 17,217,657 | ||
Loan to franchisees | (54,060,267) | (7,862,740) | (6,600,000) | |
Repayment from franchisees | 10,050,000 | 1,461,712 | ||
Net cash generated from (used in) investing activities | (181,756,342) | (26,435,364) | (744,856,135) | 73,997,998 |
Financing activities: | ||||
Distribution to the shareholders (Note 1) | (200,532,021) | (29,166,173) | (579,042,699) | (17,956,030) |
Income tax paid related to the above distribution | (3,000,000) | (436,332) | (64,675,809) | |
(Increase) Decrease in Restricted cash | (300,000) | (43,633) | 180,000,000 | (115,000,000) |
Proceeds from short-term borrowings | 60,000,000 | 8,726,638 | 60,000,000 | |
Repayment of short-term borrowings | (61,442,709) | |||
Proceeds from issuance of Class A ordinary shares | 837,505,007 | 121,810,051 | ||
Payment for initial public offering costs | (30,827,578) | (4,483,685) | ||
Net cash (used in) generated from financing activities | 662,845,408 | 96,406,866 | (465,161,217) | (132,956,030) |
Effect of exchange rate changes on cash and cash equivalents | 66,023,411 | 9,602,707 | (1,467,838) | 6,327,858 |
Net increase (decrease) in cash and cash equivalents | 1,102,062,120 | 160,288,287 | (734,819,270) | 390,926,415 |
Cash and cash equivalents at the beginning of the year | 161,963,665 | 23,556,638 | 896,782,935 | 505,856,520 |
Cash and cash equivalents at the end of the year | 1,264,025,785 | 183,844,925 | 161,963,665 | 896,782,935 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (1,442,709) | |||
Income taxes paid | (93,299,479) | (13,569,847) | ¥ (160,064,218) | (64,944,731) |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Consideration payable for acquisition of a business | 10,000,000 | 1,454,440 | ||
Acquisition of a subsidiary transferred from long-term investment | 3,330,000 | 484,328 | ||
Loan receivable settled for acquisition of a subsidiary | ¥ 8,225,876 | $ 1,196,404 | ||
Acquisition of investment through conversion of loan | 20,000,000 | |||
Receivable from disposal of investment included in other assets | 65,743,639 | |||
Unrealized gain from disposal of investment included in other long-term liabilities | ¥ 36,723,048 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2018 | |
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 74.51% 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. For the year ended December 31, 2017, the Company declared a dividend of RMB30,382,838 to GTI to fund the repurchase of ordinary shares and declared a dividend of RMB588,350,964 to GTI in conjunction to the Reorganization. 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 (USD4,483,685) were recorded as reduction of the proceeds from the IPO in shareholders’ equity. 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, 2018: Major subsidiaries Percentage of Ownership Date of Incorporation, Merger or Acquisition Place of Incorporation Major Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Sichuan) Management, Inc. 100 % January 8, 2008 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. 100 % October 20, 2011 PRC Information (“Shanghai Evergreen”) technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co,.Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co,.Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co.Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co.Ltd 100 % May 3, 2018 PRC Hotel property 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) Leased-and-operated hotels The Group owns hotel property or leases hotel properties from property owners and is responsible for all aspects of hotel operations and management, including hiring, training and supervising the managers and employees required to operate the hotels. In addition, the Group is responsible for hotel development and customization to conform to the standards of the “GreenTree” brand, as well as repairs and maintenance, operating expenses and management of properties over the term of the lease, which ranges from 10 to 20 years. Under the lease arrangements, the Group typically receives rental holidays of three to twenty-four months and pays fixed rent on a monthly or quarterly 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. 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 ongoing management service 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, 2018 | |
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 and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Use of estimates (continued) The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, impairment of equity-method investment, 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, costs of awarded products and services related to its membership program and share-based compensation arrangements (Note 15). Cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits placed with commercial banks or other financial institutions. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantee for lease agreement and the guarantees for short-term debt (note 10). Short-term investments Short-term investments include one-year time deposits and investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in accordance with ASC topic 320 (“ASC 320”), Investments – Debt and Equity Securities. The Group classifies the short-term investments in debt and equity securities 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. The securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Investments not classified as trading or as held-to-maturity are classified as available-for-sale securities. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of income when the decline in value is determined to be other-than-temporary. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Short-term investments (continued) As of December 31, 2017 and 2018, wealth management products amount to RMB70,000,000 and RMB685,512,063 (USD99,703,594), respectively, whereas time deposits were RMB711,850,000 and nil, respectively. Realized gains from time deposits of RMB11,709,574, nil and RMB2,935,815(USD 426,997) were recognized for the years ended December 31, 2016, 2017 and 2018, respectively. Trading securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 320 (“ASC 320”), Investments – Debt and Equity Securities. ASC 320 classifies the investments in equity securities as “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by the accounting standard for financial instruments. These securities are generally held for resale in anticipation of short-term market movements and therefore the Group classifies them as trading securities which are carried at fair value at each balance sheet date. Gains and losses, both realized and unrealized, are included in gains (losses) from trading securities in the consolidated statements of comprehensive income. As of December 31, 2017 and 2018, the trading securities amounted to RMB307,754,960 and RMB307,693,782 (USD44,752,204), respectively. The realized gains of RMB24,236,815, RMB22,565,408 and RMB14,381,423 (USD2,091,691) were recognized for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2016, 2017 and 2018, there were unrealized gains of RMB95,052,226, RMB110,983,805 and RMB38,827,430 (USD5,647,215) respectively. 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 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets Long-term investments The Company’s long-term investments consist of cost method investments and equity method investments. The Group accounts for the investment in an unlisted entity of which the Group owns less than 20% of the voting securities and does not have the ability to exercise significant influence over operating and financial policies of the entity as cost-method investment in accordance to ASC325-20, Investments – Other: Cost Method Investments The Group uses the equity method in accordance to ASC323-10 , Investments – Equity Method and Joint Ventures: Overall No impairment loss was recognized in any of the periods presented. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Business combinations The Group accounts for all business combinations under the purchase method in accordance with ASC 805, Business Combinations The determination and allocation of fair values to the identifiable net assets acquired, liabilities assumed and noncontrolling interest is based on various assumptions and valuation methodologies requiring considerable judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the acquiree’s current business model and industry comparisons. Although the Group believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. 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 Network rights 10 years Purchased software 5 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The Group does not have any indefinite-lived intangibles other than goodwill. 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, 2017 and 2018 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and business acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance to ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In 2017 and 2018, the Group performed a qualitative assessment for the reporting unit. Based on the requirements of ASC350-20, the Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing on goodwill was not necessary as of December 31, 2017 and 2018. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 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 Accruals for membership program The Group invites its customers to participate in a membership program. The Group has 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. The membership 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. The estimated incremental costs to provide gifts, membership upgrades and room night awards are accrued and recorded as selling and marketing expenses in the consolidated statements of comprehensive income. As members redeem awards or their entitlements expire, the provision is reduced correspondingly. The Group’s estimated liabilities for those points that are expected to be redeemed in the future include breakage for points that are not expected to be redeemed or claimed by its members based on historical data. As of December 31, 2016, 2017 and 2018, the accruals for membership program amounted to RMB7,034,452, RMB19,684,705 and RMB22,259,376 (USD3,237,492), respectively, based on the estimated liabilities under the membership program, and were recorded in accrued expenses and other current liabilities in the consolidated balance sheets. Deferred revenue Deferred revenue generally consists of initial franchise fees received from franchisees prior to the Group fulfilling its service commitments as a franchisor, cash received for membership fees, and advance rental payments the Group has received for subleased properties to third-party merchandisers. Advance from customers Advance from customers consists of advance rental payments from hotel guests and prepaid membership fees from franchisees. Proceeds from the sale of membership cards to franchisees are initially recognized as advance from customers and reclassified to deferred revenue upon sale to the end users. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Revenue recognition Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. The Group recognizes revenues when all of the following have occurred: persuasive evidence of arrangement with the customer, services have been performed, fees are fixed or determinable and collectability of the fees is reasonably assured, as prescribed by ASC 605-10, Revenue Recognition, Overall Revenue is recognized when rooms are occupied and food and beverages are sold. 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 RMB27,234,661, RMB42,218,264 and RMB53,852,195 (USD 7,832,477) for the years ended December 31, 2016, 2017 and 2018, respectively. 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. The one-time franchise fee is recognized when the Group has fulfilled all its commitments and obligations, including the assistance to the franchisees in property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, which is generally when the franchised-and-managed hotel opens for business. The ongoing management and service fees are recognized when the underlying service revenue is recognized by the franchisees’ operations. The CRS usage fees are recognized when the services are provided. 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, 2016, 2017 and 2018, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB70,433,507, RMB83,482,652 and RMB99,185,965 (USD14,426,000), respectively. One-time fees from the sale of membership cards under the Group’s paid membership program are recognized on a straight-line basis over the estimated life of the membership. The Group monitors its membership activity patterns to re-assess the estimated lives of memberships based on the Group’s historical membership data on a periodic basis to reflect changes in membership retention. Revisions to the estimated lives of memberships are accounted for as a change in accounting estimate prospectively in accordance with ASC Topic 250, Accounting Changes and Error Corrections 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Business tax and related tax surcharges The Group is subject to business tax, education surtax and urban maintenance and construction tax, on the services provided in the PRC until April 2016. Business tax and related surcharges are based on revenues at rates ranging from 5% to 5.65% and are recorded as a reduction of revenues. On March 23, 2016, the Ministry of Finance of China and the State Administration of Taxation of China jointly issued the Circular on the Nationwide Implementation of Pilot Program for the Collection of Value Added-Tax Instead of Business Tax, or Circular 36, which became effective on May 1, 2016. Subsequent to the effectiveness of Circular 36, most of the Group’s PRC subsidiaries’ business will be subject to value-added tax, or VAT, at a rate of 6% and they would be permitted to offset input VAT by providing valid VAT invoices received from vendors against their VAT liability. 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 RMB10,379,012, RMB11,369,822 and RMB15,654,573 (USD2,276,863) for the years ended December 31, 2016, 2017 and 2018, 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, 2016, 2017 and 2018, the Group received financial subsidies of RMB8,632,105, RMB10,220,995 and RMB15,150,107 (USD2,203,492), respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. Interest income and other, net Interest income and other, net consists primarily of interest income, and to a much lesser extent foreign exchange gains or losses. Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method. Leases Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. The Group did not have any leases that qualified as capital leases for the years ended December 31, 2017 and 2018. 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 RMB66,416,232, RMB60,839,102 and RMB78,272,335 (USD11,384,239) for the years ended December 31,2016, 2017 and 2018, respectively. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Income taxes Income taxes are provided for using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or change in tax status is recognized in income in the period the change in tax status occurs or the change in tax rates or tax law is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some or all of the deferred tax assets will not be realized. In accordance with ASC subtopic 740-10, Income Taxes, Overall The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit or appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each tax audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group has elected to include interest and penalties related to an uncertain tax position in “income tax expense (benefit)” in the consolidated statements of comprehensive income. For the annual period ended December 31, 2018, the Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and classified all deferred income tax assets as noncurrent on the consolidated balance sheets on a prospectively basis. Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of GTWH and the other PRC subsidiaries of GreenTree Samoa, GreenTree Suites, PHI, and GTWH are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Convenience translation Translations of amounts from RMB into U.S. dollars and HKD into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.8755 and USD1 to HKD7.8316 on December 31, 2018, 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, 2018, 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. Trading securities, representing the equity investment with intent for resale in anticipation of short-term market movement, are recorded at fair values at each balance sheet date. The carrying values of other financial instruments, which consist of cash and cash equivalents, 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, 2017 and 2018: Fair Value Measurements at Reporting Date Using Description Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading securities 307,754,960 307,754,960 – – Short-term investments 781,850,000 711,850,000 70,000,000 – 1,089,604,960 1,019,604,960 70,000,000 – Fair Value Measurements at Reporting Date Using Description Year Ended December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 3. ACQUISITIONS During the years ended 2018, the Group completed four acquisitions. The results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since their respective dates of acquisition. The Group completed the valuation necessary to assess the fair value of the acquired assets and liabilities and the non-controlling interests with the assistance from an independent valuation firm, resulting from which the amounts of goodwill were determined and recognized as of the respective acquisition dates. In January 2015, the Group acquired 50% of the equity interest in Yancheng Zexin Hotel Management Co., Ltd. (the “Zexin”) and the investment was accounted for under equity method given the Group had the ability to exercise significant influence over Zexin. In July 2018, the Group acquired additional 1% of the equity interest in Zexin for a cash consideration of RMB80,000. The acquisition closed on July 1, 2018 when the Group obtained control of Zexin’s operations holding in aggregate 51% of its equity interest. The fair value of previously held equity interest is RMB3,333,000 at the acquisition date. A gain of RMB1,344,212 (USD195,508) in relation to the revaluation of the previously held equity interest was recorded in other income, net in the consolidated statement of comprehensive income for the year ended December 31, 2018. In July 2018, the Group acquired 100% of the equity interest in a hotel chain and 70% of the equity interest in an individual hotel for an aggregate cash consideration of RMB10,000,000 and RMB13,000,000, respectively. In August 2018, the Group acquired 70% of the equity interest in an individual hotel for an aggregate cash consideration of RMB1,400,000. These business acquisitions were accounted for under purchase accounting. The net revenue and net loss of the acquirees included in the consolidated statements of operations for the year ended December 31, 2018 were RMB14,148,551 and RMB 332,960, respectively. Pro forma financial information of the acquirees are not presented as the effects of the acquisitions on the Group’s consolidated financial statements were immaterial. The following is a summary of the fair values of the assets acquired and liabilities assumed: 2018 Amortization Period Current assets (i) 11,520,969 Property and equipment 32,618,088 3 - 17 years Intangible assets Favorable leases 20,095,000 Remaining lease terms Trademark 1,530,000 Remaining beneficial period Goodwill 2,827,885 Current liabilities (18,636,959 ) Deferred tax liabilities (5,406,250 ) Noncontrolling interest (8,509,857 ) Total 36,038,876 (i) Current assets acquired primarily included cash and cash equivalent of RMB1,177,106, other receivables of RMB1,438,641 and loans receivable of RMB7,500,000. As the acquirees 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 or lack of marketability. Goodwill was recognized as a result of expected synergies from combining operations of the Group and acquired business and other intangible assets that do not qualify for separate recognition. Goodwill is not amortized and is not deductible for tax purposes. In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. All the acquired business has been migrated to the Group’s business. The Group concluded that it has only one reporting unit. Accordingly, goodwill is allocated to one single reporting unit. |
Loans Receivable Net
Loans Receivable Net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 4. LOANS RECEIVABLE, NET Loans receivable, net is comprised of the following: As of December 31, 2017 2018 2018 RMB RMB USD Loans receivable, current portion Franchisees 6,600,000 18,757,404 2,728,151 Third parties – 48,439,164 7,045,184 Total 6,600,000 67,196,568 9,773,335 Loans receivable, non-current portion Franchisees – 39,352,863 5,723,637 In 2018, the Group entered into a one-year loan agreement with certain franchisees to finance the renovation of certain franchised-and-managed hotels with maturity from one year to three years and an interest rate of 9.9% per annum. In 2018, the Group entered into a one-year loan agreement with Shanghai Zhengjin E-Commerce Co., Ltd. with an amount of RMB33,439,164 (USD4,863,525) to support its daily operation in 168 online shopping mall for the Group annual interest rate is 4.35%. In 2018, the Group entered into entrusted loan agreement with Tibet Yuzhenglong Trading Co., Ltd. with an amount of RMB15,000,000 (USD2,181,660) to support its daily operation in catering service and annual interest rate is 12.00%. No impairment loss for these loans receivables was made as of December 31, 2018. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of December 31, 2017 2018 2018 RMB RMB USD Buildings 86,801,082 191,222,937 27,812,223 Leasehold improvements 224,431,821 254,720,926 37,047,622 Furniture, fixtures and equipment 32,283,771 40,771,896 5,930,026 Motor vehicles 1,693,006 2,486,375 361,628 Total 345,209,680 489,202,134 71,151,499 Less: Accumulated depreciation (248,540,429 ) (265,449,689 ) (38,608,055 ) Impairment – (5,008,677 ) (728,482 ) 96,669,251 218,743,768 31,814,962 Construction in progress – 3,645,805 530,260 Property and equipment, net 96,669,251 222,389,573 32,345,222 5. PROPERTY AND EQUIPMENT, NET (CONTINUED) Depreciation expense was RMB34,045,260, RMB24,076,465 and RMB23,919,015 (USD3,478,876) for the years ended December 31, 2016, 2017 and 2018, respectively, and were included in the following captions: As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Hotel operating costs 33,213,969 22,978,585 21,313,405 3,099,906 General and administrative costs 831,291 1,097,880 2,605,610 378,970 Total 34,045,260 24,076,465 23,919,015 3,478,876 No impairment charges were recognized on the property and equipment for the years ended December 31, 2016 and 2017. Impairment of RMB5,008,677 was recognized for the year ended December 31, 2018. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 6. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2017 2018 2018 RMB RMB USD Trademark 183,361 4,724,493 687,149 Network rights – 259,048 37,677 Purchased software 10,666,224 10,980,093 1,596,988 Reacquired rights 2,594,781 2,531,418 368,180 Favorable leases 432,376 20,498,648 2,981,405 Others 435,185 435,185 63,295 Total 14,311,927 39,428,885 5,734,694 Less: Accumulated amortization (10,584,544 ) (12,215,494 ) (1,776,670 ) Total. 3,727,383 27,213,391 3,958,024 Amortization expense of intangible assets for the years ended December 31, 2016, 2017 and 2018 amounted to RMB1,309,605, RMB879,968 and RMB1,630,950 (USD237,212), respectively. Others, net as of December 31, 2017 and 2018 are RMB64,501 and RMB27,655 (USD 4,022), respectively. No impairment charges were recognized on the intangible asset for the years ended December 31, 2016, 2017 and 2018. The estimated aggregate amortization expense for each of the five succeeding years is as follows: Year ending December 31, RMB 2019 4,955,438 2020 4,931,299 2021 4,858,956 2022 4,359,441 2023 4,084,318 Thereafter 4,023,937 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 7. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31,2017 and 2018 were as follows: Balance of goodwill RMB USD Balance at January 1, 2017 and December 31, 2017 2,959,183 430,395 Increase in goodwill related to acquisition (Note 3) 2,827,885 411,299 Balance at December 31, 2018 5,787,068 841,694 As of December 31, 2016, 2017 and 2018, the Group assessed impairment on its goodwill derived from the acquisitions. No impairment loss was recognized in any of the periods presented. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Long Term Investments [Abstract] | |
Long-Term Investments | 8. LONG-TERM INVESTMENTS As at December 31, 2017 and 2018, long-term investments consisted of the following: As of December 31, 2017 2018 2018 RMB RMB USD Equity method investments Yancheng Zexin Hotel Management Co., Ltd. 2,565,871 – – Tianjin GreenTree Tianbao Hotel Management Co., Ltd. 10,008,647 2,650,405 385,485 Steigenberger (Beijing) Hotel Management Co., Ltd. ("Steigenberger") 5,932,840 5,567,581 809,771 Cost method investments Shanghai Liming Intelligent Technology Limited 300,000 300,000 43,633 Yibon Hotel Group Co., Ltd ("Yibon") 103,701,474 103,701,474 15,082,755 Total 122,508,832 112,219,460 16,321,644 Equity method investments None of the Group’s equity method investments was considered individually significant for the years ended December 31, 2017 and 2018. The Group summarized the condensed financial information of the Group’s equity investments as a group below in accordance with Rule 4-08 of Regulation S-X: Balance sheet data: As of December 31, 2017 2018 2018 RMB RMB USD Current assets 14,961,672 10,402,882 1,513,036 Non-current assets 39,741,645 15,038,080 2,187,198 Current liabilities 8,294,529 5,250,596 763,668 Non-current liabilities 11,214,974 3,581,957 520,974 8. LONG-TERM INVESTMENTS (CONTINUED) Operating data: As of December 31, 2017 2018 2018 RMB RMB USD Revenues 21,486,273 17,131,157 2,491,623 Gross profit 12,397,526 10,483,609 1,524,778 Operating loss (1,976,331 ) (2,760,962 ) (401,565 ) Net loss (1,799,168 ) (4,539,052 ) (660,178 ) Cost method investment Investment in Yibon In April 2017, the Group acquired a 30% interest in Yibon for cash consideration of RMB103,701,474 (USD15,938,625) 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 is not met. As a result, the investment is accounted for as a cost method investment as the shares are not in-substance common stock. Concurrently, the Group issued two options to the other shareholders of Yibon. The Group provided all the other shareholders of Yibon a right to exchange the shares of Yibon for the shares of the Company in April 2020 in accordance to an agreed formula. The Group also provided one of the shareholders of Yibon the right to put its 12.5% equity interest to the Company if the Company fails to list by an agreed date or the said shareholder of Yibon does not exercise the other option. As these are freestanding options, they are liability-classified and are remeasured at the end of each reporting period with an adjustment for fair value recorded to the current period expense. The fair value of these options have been determined to be insignificant. The Company has determined the fair value of these options with the assistance of an independent third party valuation firm. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
Other Assets | 9. OTHER ASSETS As of December 31, 2017 2018 2018 RMB RMB USD Long-term time deposits – 60,000,000 8,726,638 Acquisition deposits – 18,120,615 2,635,534 Rental deposit 5,065,000 5,065,000 736,674 Others 676,301 2,515,908 365,922 Total . 5,741,301 85,701,523 12,464,768 |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Short Term Borrowings [Abstract] | |
Short-term Debt | 10. SHORT-TERM DEBT As of December 31, 2017 2018 2018 RMB RMB USD Short-term bank borrowings – 60,000,000 8,726,638 In November 2018, the Group entered into a one-year loan contract with a bank for an aggregate principal amount of RMB60,000,000. As of December 31, 2018, the principal amount outstanding was RMB 60,000,000, bearing the interest rate of 4.60% per annum and was guaranteed by GreenTree Inns Hotel (Shanghai) Management, Inc. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2017 2018 2018 RMB RMB USD Other payables 175,237,562 169,861,713 24,705,360 Value added tax and other taxes payable 50,863,338 52,639,207 7,656,055 Accrued rental 2,987,206 2,151,623 312,941 Accrued utilities 2,482,032 3,307,734 481,090 Accrual for membership program 19,684,705 22,259,376 3,237,492 Other accrued expenses 5,764,060 3,839,332 558,408 Unrealized gains from disposal of long-term investment 36,723,048 – – Payable for business acquisition – 10,000,000 1,454,440 Total 293,741,951 264,058,985 38,405,786 |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
OTHER LONG-TERM LIABILITIES | 12. OTHER LONG-TERM LIABILITIES As of December 31, 2017 and 2018, other long-term liabilities are mainly comprised of deposits from franchisees. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2018 | |
Class Of Stock Disclosures [Abstract] | |
Ordinary Shares | 13. 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% and 61% 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, 2018 | |
Operating Expenses [Abstract] | |
Hotel Operating Costs | 14. 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, 2016 2017 2018 2018 RMB RMB RMB USD Rental 65,616,232 60,252,952 76,055,484 11,061,811 Utilities 17,274,356 16,692,172 19,264,487 2,801,903 Personnel cost 32,754,011 27,546,240 33,715,007 4,903,644 Depreciation and amortization 33,751,208 22,978,585 21,313,405 3,099,906 Consumable, food and beverage 14,161,810 13,470,072 19,275,688 2,803,533 Costs of general managers of franchised-and-operated hotels 45,515,832 54,291,625 70,480,306 10,250,935 Other costs of franchised-and-operated hotels 18,822,094 23,497,850 28,888,506 4,201,659 Others 12,236,665 14,916,556 11,961,462 1,739,724 Total 240,132,208 233,646,052 280,954,345 40,863,115 |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 15. Grant of fully vested GTI ordinary shares to directors of the Company On November 11, 2017, GTI issued 352,500 fully vested ordinary shares to certain directors of the company in recognition of their past services to the Company. Accordingly, the Company recorded share-based compensation expense on the date of issuance of these shares of RMB38,048,000 (USD5,847,871) which was recorded in general and administrative expenses for the year ended December 31, 2017. 2018 Share Incentive Plan In January 2018, the Group adopted the 2018 Share Incentive Plan which allows the Group to offer incentive awards to employees, directors and consultants (the “Participants”). Under the 2018 Share Incentive Plan, the Group may issue incentive awards to the Participants to purchase not more than 9,000,000 Class A ordinary shares. The incentive awards granted under the Share Incentive Plans typically have a maximum life of six years and vest in typical ways as listed below: a) Vest ratably over the following four years starting after the first/second/third anniversary of the IPO date; b) Vest 100% on the first anniversary of the IPO date c) Vest 50% on the IPO date and another 50% on December 31, 2018. As of December 31, 2018, the Group had granted 1,733,000 options. Share-based compensation expense of RMB16,108,951 (USD2,342,950) was recognized for the year ended December 31,2018. The weighted-average grant date fair value for options granted during the year ended December 31, 2018 was USD5.54, computed using the binomial option pricing model. The binomial model requires the input of subjective assumptions including the expected stock price volatility and the expected price multiple at which employees are likely to exercise stock options. The Group uses historical data to estimate forfeiture rate. Expected volatilities are based on the average volatility of the Group and comparable companies. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Prior to the IPO, the estimated fair value of the ordinary shares, at the option grant dates prior to the IPO, was determined with assistance from an independent third party valuation firm. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The fair value of share options was estimated using the following significant assumptions: Granted in 2018 Risk-free interest rate 2.42 % Volatility 34.00 % Dividend yield – Life of option 6 years The aggregate grant date fair value of the outstanding options was determined to be RMB60,525,042 (USD8,803,002) as of December 31, 2018 and such amount shall be recognized as compensation expenses using the accelerated method for all employee share options granted. The total fair value of share options vested during the year ended December 31, 2018 was RMB5,431,798 (USD790,022). As of December 31, 2018, there was RMB42,791,057 (USD6,223,701) in total unrecognized compensation expense related to unvested options, which is expected to be recognized over a weighted-average period of 3.11 years. 15. The following table summarized the Group’s share option activity under the option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value USD Years USD Share options outstanding at January 1, 2018 – – – – Granted 1,733,000 12.93 Forfeited (141,500 ) 12.48 Share options outstanding at December 31, 2018 1,591,500 12.94 3.11 1,180,080 Vested and expected to vest at December 31, 2018 1,452,720 12.93 3.07 1,080,644 Exercisable as of December 31, 2018 135,000 12.00 0.5 133,650 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. 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, 2016, 2017 and 2018. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the years presented. PRC On March 16, 2007, the PRC government promulgated the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008. Under the New EIT Law, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Enterprises qualified as "High New Technology Enterprises ("HNTEs") enjoy a preferential income tax rate of 15%. Shanghai Evergreen was qualified as an HNTE during 2017 to 2020 under the CIT Law. Shanghai Evergreen has been entitled to a preferential income tax rate of 15% during 2017 to 2019. The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive income are as follows: As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Current tax 96,219,834 193,428,603 153,947,311 22,390,708 Deferred tax (12,296,224 ) (6,777,448 ) 6,238,534 907,357 Total 83,923,610 186,651,155 160,185,845 23,298,065 16. INCOME TAXES (CONTINUED) Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31 2016 2017 2018 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution – 14 % 4 % Effect of international rate difference (1 %) 2 % (1 %) Effect of preferential tax rate (2 %) (3 %) (3 %) Tax effect of expenses that are not deductible in determining taxable profit 1 % 1 % 4 % Effective tax rate 23 % 39 % 29 % The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 2018 RMB RMB USD Deferred tax assets: Net loss carryforward 3,830,587 3,378,686 491,410 Deferred revenue 37,792,874 46,280,663 6,731,243 Deferred rent 6,491,710 6,235,277 906,883 Bad debt expenses 1,178,511 1,608,304 233,918 Accrued expenses 14,757,386 13,439,648 1,954,716 Unrealized gains from disposal of long-term investment 9,180,762 – – Impairment of long-lived assets – 1,252,169 182,120 Valuation allowance (3,672,489 ) (4,284,778 ) (623,195 ) Total deferred tax assets 69,559,341 67,909,969 9,877,095 Deferred tax liabilities: Depreciation of property and equipment (4,782,353 ) (4,028,230 ) (585,882 ) Unrealized gains from trading securities (27,745,951 ) (10,312,983 ) (1,499,961 ) Intangible assets (1,014,907 ) (5,851,517 ) (851,068 ) Withholding tax on PRC earnings to be distributed – (23,345,894 ) (3,395,519 ) Total deferred tax liabilities (33,543,211 ) (43,538,624 ) (6,332,430 ) 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, 2018, the Group had tax losses carryforwards of RMB13,514,744 (USD3,378,686) which will expire between 2019 and 2023 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 were RMB742,615,814 (USD108,008,990) as of December 31, 2018. In January 2019, the Group announced that its board of directors approved the payment of a cash dividend of USD0.30 per ordinary shares, which is distributed from the Group’s PRC entities’ 2018 earnings. Other than these dividends distributions, the Group intends to indefinitely reinvest the remaining undistributed earnings of the Group’s PRC subsidiaries. As of December 31, 2018, the related PRC withholding tax liability accrued was RMB23,345,894 (USD3,395,519). 16. INCOME TAXES (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 expenses and 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. RMB 130,266,822 (USD 18,946,523) of the uncertain tax positions, if ultimately recognized, would affect the effective tax rate. In the years ended December 31, 2018, the Company recorded interest expense of RMB 19,481,272 (USD 2,833,433). As of December 31, 2018, the accumulated interest expense and penalty recorded by the Group was RMB42,802,483 (USD 6,225,363) and nil respectively. As of December 31, 2017, the accumulated interest expense and penalty recorded by the Group was RMB23,312,212 and nil respectively. Unrecognized tax benefits — January 1, 2017 103,688,865 Increases — tax positions in the current period 21,916,258 Decreases — tax positions in prior period (12,305,490 ) Unrecognized tax benefits — December 31, 2017 113,299,633 Unrecognized tax benefits — January 1, 2018 113,299,633 Increases — tax positions in the current period 58,693,484 Decreases — tax positions in prior period (2,373,708 ) Unrecognized tax benefits — December 31, 2018 169,619,409 The Group’s PRC subsidiaries are subject to examination by the PRC tax authorities from 2013 through 2018 on non-transfer pricing matters, and from 2008 through 2018 on transfer pricing matters. |
Mainland and China Contribution
Mainland and China Contribution Plan and Profit Appropriation | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland and China Contribution Plan and Profit Appropriation | 17. 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 RMB21,410,446, RMB22,859,925 and RMB22,289,686 (USD3,241,900) for the years ended December 31, 2016, 2017 and 2018, 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, 2018 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net assets | 18. 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, 2017 and 2018, the PRC statutory reserve funds amounted to RMB57,726,641 and RMB57,726,641 (USD8,395,992), respectively. 18. STATUTORY RESERVES AND RESTRICTED NET ASSETS (CONTINUED) 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 RMB391,045,190 and RMB 394,424,291 (USD 57,366,634) as of December 31, 2017 and 2018, 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, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | 19. 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 2017 and 2018 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 Senior management of the Group 1250 Bayshore Highway, LLC (“Bayshore”) Hotel management Controlled by Alex S.Xu APAM Holdings, LLC(“APAM”) Investment holding Controlled by Alex S.Xu Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu 519 Information Technology (Shanghai) Inc. (“519”) Wine distributor Controlled by Hui Xu Pacific Hotel Management (Rongcheng) Co., Ltd. (“Rongcheng”) Hotel management Controlled by Hui Xu GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Tianjin GreenTree Tianbao Hotel Management CO., Ltd. (“TB”) Franchised hotels Equity investee of the Group JYH Hotel management Equity investee of the Group Yancheng Zexin Hotel Management Co., Ltd.(“Ze Xin”) ** Hotel management Equity investee of the Group Steigenberger Franchised hotels Equity investee of the Group Beifu Hong Kong Industrial Co. Limited (“HK Beifu”) Investment holding Controlled by Alex S.Xu Shiquanmeiwei (Beijing) Catering and Management CO., Ltd.(“Shiquanmeiwei”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management CO., Ltd.(“JYHM”) Catering management Controlled by GTI *Ceased to be a related party subsequent to her resignation on December 5, 2017 ** As the Group acquired Ze Xin on July 1, 2018, Ze Xin was included as a subsidiary of the Group and ceased to be a related party. (a) Related party balances Due from related parties: As of December 31, 2017 2018 2018 RMB RMB USD Current: GTI 1,717,539 – – Steigenberger 225,000 225,000 32,725 Ze Xin 1,306,153 – – Shiquanmeiwei – 3,600 523 3,248,692 228,600 33,248 Non-current: Ze Xin 2,600,000 – – 19. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) Amounts due from Steigenberger of RMB225,000(USD34,582) is a loan to Steigenberger maturing in one year with an interest rate of 6% per annum. Amount due from Shiquanmeiwei of RMB3,600 represents the payment on behalf of related parties which were unsecured, interest free, and repayable upon demand. Due to related parties: As of December 31, 2017 2018 2018 RMB RMB USD JYHM – 221,028 32,147 TB 473,018 64,550 9,389 473,018 285,578 41,536 Amount due to related parties are primarily comprised of advance from and receipts on behalf related parties which were unsecured, interest free, and repayable upon demand. (b) Related party transactions During the years ended December 31, 2017 and 2018, related party transactions consisted of the following: As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Loan to Yan Zhang (150,000,000 ) Interest income from Yan Zhang 4,595,116 3,515,358 – – Interest income from Ze Xin – 75,460 263,366 38,305 Repayment from Yan Zhang 30,000,000 128,110,474 – – Repayment from GTI 17,309,623 9,730,276 1,717,539 249,806 Repayment to JYH (14,200,539 ) – – – Franchised revenue from TB 540,827 400,639 389,583 56,662 Franchised revenue from Ze Xin 152,284 232,766 44,763 6,511 Advance from TB 224,516 294,193 – – Repayment from Bayshore – 8,671,250 – – (Repayment to)/Advance from Rongcheng (141,380 ) 141,380 – – Advance to Napa (434,826 ) – – – Advance to Shiquanmeiwei – – 3,600 524 Advance from JYHM – – (221,028 ) (32,147 ) Purchase from Napa – 4,035,262 – – Loan to Steigenberger – (225,000 ) – – Loan to Ze Xin – (3,500,000 ) (4,300,000 ) (625,409 ) Repayment from Ze Xin 579,167 367,488 – – Advance from/(Repayment to) 519 4,100 (4,100 ) – – (c) Guarantee The Group guaranteed a credit line taken by APAM, a company controlled by the Founder, to finance its investments in United States of America. As a result of the guarantee, RMB70 million of cash are pledged as security and restricted as to use as of December 31, 2016. The Group guaranteed an acquisition made by HK Beifu, a company controlled by the Founder, with RMB110 million cash restricted to use as of December 31, 2016. 19. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) In March 2017, the Group guaranteed a bank loan taken by HK Beifu, a company controlled by the Founder, to finance an acquisition in China. As a result of the guarantee, RMB900 million of cash was pledged as security and restricted to use. As December 31, 2017, the above guarantees are released. There was no other material guarantee as of December 31, 2017 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. COMMITMENTS AND CONTINGENCIES Operating lease commitments As lessee The Group has entered into lease agreements for business office and certain hotels which it operates. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2018 were as follows: Year Ended December 31, 2018 2018 RMB USD 2019 82,142,137 11,947,078 2020 78,923,815 11,478,993 2021 75,246,421 10,944,138 2022 61,747,409 8,980,788 2023 54,551,591 7,934,200 Thereafter 220,116,253 32,014,581 Total 572,727,626 83,299,778 As lessor The Group subleases its leased assets under operating lease arrangements for terms ranging from one to twenty years. The terms of the leases generally also require the tenants to pay security deposits and provide for periodic rent adjustments according to the then prevailing market conditions. At 31 December 2018, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2018 2018 RMB USD 2019 43,846,815 6,377,255 2020 36,109,529 5,251,913 2021 33,746,012 4,908,154 2022 26,798,827 3,897,728 2023 24,107,631 3,506,310 Thereafter 91,634,251 13,327,648 Total 256,243,065 37,269,008 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, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 21. EARNINGS PER SHARE Basic and diluted earnings per share for each of the years presented is calculated as follows: Year Ended December 31, 2016 2017 2018 2018 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 265,973,599 285,400,182 394,104,841 57,320,172 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 48,635,252 48,635,252 62,860,578 62,860,578 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 42,716,957 42,716,957 36,288,343 36,288,343 Allocation of undistributed earnings — basic To Class A Shares 141,602,409 151,944,981 249,863,114 36,341,083 To Class B Shares 124,371,190 133,455,201 144,241,727 20,979,089 Basic and diluted earnings per share: To Class A Shares 2.91 3.12 3.97 0.58 To Class B Shares 2.91 3.12 3.97 0.58 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. SUBSEQUENT EVENTS On January 18, 2019, the Group acquired 5.56% equity interest, 27,776,000 ordinary shares, in China Gingko Education Group Company Limited with HK$40.40 million (USD5.16 million) during its initial public offering in the Hong Kong Stock Exchange. In January 2019, the Group additionally acquired 2.71% equity interest, 13,560,000 ordinary shares with HK$19.60 million (USD2.50 million). On January 22, 2019, the Board approved of a cash dividend of USD0.30 per ordinary share. The total amount of cash to be distributed for the dividends is approximately USD30.5 million. In January and April 2019, the Group entered into two share purchase agreements to respectively acquire 60% equity interest in Argyle Hotel Management Group (Australia) Pty Ltd and 70% equity stake in Urban Hotel Group. 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. |
Parent Company Condensed Financ
Parent Company Condensed Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Condensed Financial Information | 23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, 2017 2018 2018 RMB RMB USD ASSETS Current assets Cash and cash equivalents – 721,573,493 104,948,512 Dividends receivable 39,691,103 – – Other current assets – 4,117,311 598,838 Total current assets 39,691,103 725,690,804 105,547,350 Non-current assets: Other assets – 6,875,561 1,000,009 Investments in subsidiaries 732,245,241 1,129,273,719 164,246,051 TOTAL ASSETS 771,936,344 1,861,840,084 270,793,410 LIABILITIES AND EQUITY Current liabilities: Dividends payable 39,691,103 – – Amounts due to subsidiaries – 7,090,700 1,031,300 Total liabilities 39,691,103 7,090,700 1,031,300 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 60,000,000 and 400,000,000 shares authorized as of December 31, 2017, 2018; 48,635,252 and 66,789,300 shares issued and outstanding as of December 31, 2017 and 2018) 160,189,926 217,421,867 31,622,699 Class B ordinary shares (USD0.50 par value per share; 200,000,000 and 100,000,000 shares authorized as of December 31, 2017, 2018; 42,716,957 and 34,762,909 shares issued and outstanding as of December 31, 2017 and 2018) 140,696,841 115,534,210 16,803,754 Additional paid-in capital 212,309,734 1,003,026,803 145,884,198 Retained earnings 223,134,889 456,398,812 66,380,454 Accumulated other comprehensive (loss) income (4,086,149 ) 62,367,692 9,071,005 Total Shareholders’ Equity 732,245,241 1,854,749,384 269,762,110 TOTAL LIABILITIES AND EQUITY 771,936,344 1,861,840,084 270,793,410 Condensed statements of operations As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD General and administrative expenses – – (1,307,753) (190,205) Interest income – – 13,785,679 2,005,044 Share of profit in subsidiaries, net (Note a) 265,973,599 285,400,182 381,626,915 55,505,333 Income before tax and net income 265,973,599 285,400,182 394,104,841 57,320,172 Other comprehensive income, net of tax - Foreign currency translation adjustments 1,875,003 1,317,020 66,453,841 9,665,310 Comprehensive income 267,848,602 286,717,202 460,558,682 66,985,482 23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Continued) Condensed statements of cash flows As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Operating activities: Net income 265,973,599 285,400,182 394,104,841 57,320,172 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation – – 1,307,753 190,205 Changes in operating assets and liabilities: Other current assets – – (4,117,311 ) (598,838 ) Amounts due to subsidiaries – – 7,090,700 1,031,300 Share of profit in subsidiaries, net (265,973,599 ) (285,400,182 ) (381,626,915 ) (55,505,333 ) Net cash provided by operating activities – 16,759,068 2,437,506 Investing activities: Advances for acquisitions – – (6,875,561 ) (1,000,009 ) Net cash used in investing activities – – (6,875,561 ) (1,000,009 ) Financing activities: Proceeds from issuance of Class A ordinary shares – – 837,505,007 121,810,051 Payment for initial public offering costs – – (30,827,578 ) (4,483,685 ) Distribution to the shareholders (note 1) (17,956,030 ) (579,042,699 ) (200,532,021 ) (29,166,173 ) Dividends from subsidiaries 17,956,030 579,042,699 39,691,103 5,772,832 Net cash generated from financing activities – – 645,836,511 93,933,025 Effect of exchange rate changes on cash and cash equivalents – – 65,853,475 9,577,990 Net increase in cash and cash equivalents – – 721,573,493 104,948,512 Cash and cash equivalents at beginning of the year – – – – Cash and cash equivalents at end of the year – – 721,573,493 104,948,512 (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, 2018 | |
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 and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. The Group evaluates its business activities and arrangements with the entities that operate the franchised-and-managed hotels to identify potential variable interest entities. Generally, these entities qualify for the business scope exception; therefore, consolidation is not appropriate under the variable interest entity consolidation guidance. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences could be material to the consolidated financial statements. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Use of estimates (continued) The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts receivable, impairment of loans receivable, impairment of equity-method investment, 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, costs of awarded products and services related to its membership program and share-based compensation arrangements (Note 15). |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits placed with commercial banks or other financial institutions. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Restricted Cash | Restricted cash Restricted cash comprise of deposits pledged with banks as security in relation to the guarantee for lease agreement and the guarantees for short-term debt (note 10). |
Short-term Investments | Short-term investments Short-term investments include one-year time deposits and investments in wealth management products, where certain deposits with variable interest rates or where principal amounts are not guaranteed, are placed with certain financial institutions. The Group accounts for short-term investments in accordance with ASC topic 320 (“ASC 320”), Investments – Debt and Equity Securities. The Group classifies the short-term investments in debt and equity securities 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. The securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Investments not classified as trading or as held-to-maturity are classified as available-for-sale securities. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of income when the decline in value is determined to be other-than-temporary. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Short-term investments (continued) As of December 31, 2017 and 2018, wealth management products amount to RMB70,000,000 and RMB685,512,063 (USD99,703,594), respectively, whereas time deposits were RMB711,850,000 and nil, respectively. Realized gains from time deposits of RMB11,709,574, nil and RMB2,935,815(USD 426,997) were recognized for the years ended December 31, 2016, 2017 and 2018, respectively. |
Trading Securities | Trading securities The Group accounts for its investments in equity securities in accordance with ASC Subtopic 320 (“ASC 320”), Investments – Debt and Equity Securities. ASC 320 classifies the investments in equity securities as “trading” or “available-for-sale”, whose classification determines the respective accounting methods stipulated by the accounting standard for financial instruments. These securities are generally held for resale in anticipation of short-term market movements and therefore the Group classifies them as trading securities which are carried at fair value at each balance sheet date. Gains and losses, both realized and unrealized, are included in gains (losses) from trading securities in the consolidated statements of comprehensive income. As of December 31, 2017 and 2018, the trading securities amounted to RMB307,754,960 and RMB307,693,782 (USD44,752,204), respectively. The realized gains of RMB24,236,815, RMB22,565,408 and RMB14,381,423 (USD2,091,691) were recognized for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2016, 2017 and 2018, there were unrealized gains of RMB95,052,226, RMB110,983,805 and RMB38,827,430 (USD5,647,215) respectively. |
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 allowance for uncollectible accounts is estimated based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtors. |
Property and Equipment, Net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets |
Long-term Investments | The Company’s long-term investments consist of cost method investments and equity method investments. The Group accounts for the investment in an unlisted entity of which the Group owns less than 20% of the voting securities and does not have the ability to exercise significant influence over operating and financial policies of the entity as cost-method investment in accordance to ASC325-20, Investments – Other: Cost Method Investments The Group uses the equity method in accordance to ASC323-10 , Investments – Equity Method and Joint Ventures: Overall No impairment loss was recognized in any of the periods presented. |
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. |
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 Network rights 10 years Purchased software 5 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term The Group does not have any indefinite-lived intangibles other than goodwill. |
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, 2017 and 2018 was related to its acquisition of subsidiaries and business. The Group follows ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill. Goodwill and business acquired in a business combination are not amortized, but instead tested for impairment at least annually, or more frequently if certain circumstances indicate a possible impairment may exist. In accordance to ASC 350-20, the Group has assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Testing Goodwill for Impairment. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In 2017 and 2018, the Group performed a qualitative assessment for the reporting unit. Based on the requirements of ASC350-20, the Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing on goodwill was not necessary as of December 31, 2017 and 2018. |
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 |
Accruals for Membership Program Policy | Accruals for membership program The Group invites its customers to participate in a membership program. The Group has 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. The membership 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. The estimated incremental costs to provide gifts, membership upgrades and room night awards are accrued and recorded as selling and marketing expenses in the consolidated statements of comprehensive income. As members redeem awards or their entitlements expire, the provision is reduced correspondingly. The Group’s estimated liabilities for those points that are expected to be redeemed in the future include breakage for points that are not expected to be redeemed or claimed by its members based on historical data. As of December 31, 2016, 2017 and 2018, the accruals for membership program amounted to RMB7,034,452, RMB19,684,705 and RMB22,259,376 (USD3,237,492), respectively, based on the estimated liabilities under the membership program, and were recorded in accrued expenses and other current liabilities in the consolidated balance sheets. |
Deferred Revenue | Deferred revenue Deferred revenue generally consists of initial franchise fees received from franchisees prior to the Group fulfilling its service commitments as a franchisor, cash received for membership fees, and advance rental payments the Group has received for subleased properties to third-party merchandisers. |
Advance from Customers | Advance from customers Advance from customers consists of advance rental payments from hotel guests and prepaid membership fees from franchisees. Proceeds from the sale of membership cards to franchisees are initially recognized as advance from customers and reclassified to deferred revenue upon sale to the end users. |
Revenue Recognition | Revenue recognition Revenues from leased-and-operated hotels are primarily derived from hotel operations, including the rental of rooms and food and beverage sales. The Group recognizes revenues when all of the following have occurred: persuasive evidence of arrangement with the customer, services have been performed, fees are fixed or determinable and collectability of the fees is reasonably assured, as prescribed by ASC 605-10, Revenue Recognition, Overall Revenue is recognized when rooms are occupied and food and beverages are sold. 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 RMB27,234,661, RMB42,218,264 and RMB53,852,195 (USD 7,832,477) for the years ended December 31, 2016, 2017 and 2018, respectively. 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. The one-time franchise fee is recognized when the Group has fulfilled all its commitments and obligations, including the assistance to the franchisees in property design, leasehold improvement, construction project management, systems installation, personnel recruiting and training, which is generally when the franchised-and-managed hotel opens for business. The ongoing management and service fees are recognized when the underlying service revenue is recognized by the franchisees’ operations. The CRS usage fees are recognized when the services are provided. 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, 2016, 2017 and 2018, the hotel manager fees that were recognized as part of franchised-and-managed hotels revenue were RMB70,433,507, RMB83,482,652 and RMB99,185,965 (USD14,426,000), respectively. One-time fees from the sale of membership cards under the Group’s paid membership program are recognized on a straight-line basis over the estimated life of the membership. The Group monitors its membership activity patterns to re-assess the estimated lives of memberships based on the Group’s historical membership data on a periodic basis to reflect changes in membership retention. Revisions to the estimated lives of memberships are accounted for as a change in accounting estimate prospectively in accordance with ASC Topic 250, Accounting Changes and Error Corrections |
Business Tax and Related Tax Surcharges Policy | Business tax and related tax surcharges The Group is subject to business tax, education surtax and urban maintenance and construction tax, on the services provided in the PRC until April 2016. Business tax and related surcharges are based on revenues at rates ranging from 5% to 5.65% and are recorded as a reduction of revenues. |
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 RMB10,379,012, RMB11,369,822 and RMB15,654,573 (USD2,276,863) for the years ended December 31, 2016, 2017 and 2018, 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, 2016, 2017 and 2018, the Group received financial subsidies of RMB8,632,105, RMB10,220,995 and RMB15,150,107 (USD2,203,492), 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, 2017 and 2018. 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 RMB66,416,232, RMB60,839,102 and RMB78,272,335 (USD11,384,239) for the years ended December 31,2016, 2017 and 2018, 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. For the annual period ended December 31, 2018, the Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and classified all deferred income tax assets as noncurrent on the consolidated balance sheets on a prospectively basis. |
Foreign Currency Translation and Transactions | Foreign currency translation and transactions The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Company, GreenTree Samoa, GreenTree Suites, PHI and the entities incorporated in Hong Kong is the United States dollar (“USD”). The financial records of GTWH and the other PRC subsidiaries of GreenTree Samoa, GreenTree Suites, PHI, and GTWH are maintained in the local currency, the Renminbi (“RMB”), which is their functional currency. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are re-measured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing on the transaction dates. Transaction gains and losses are recognized in “interest income and other, net” in the consolidated statements of comprehensive income. Assets and liabilities are translated into RMB at the exchange rate at the balance sheet date. Equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. |
Convenience Translation Policy | Convenience translation Translations of amounts from RMB into U.S. dollars and HKD into U.S. dollars are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 to RMB6.8755 and USD1 to HKD7.8316 on December 31, 2018, 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, 2018, 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. Trading securities, representing the equity investment with intent for resale in anticipation of short-term market movement, are recorded at fair values at each balance sheet date. The carrying values of other financial instruments, which consist of cash and cash equivalents, 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, 2017 and 2018: Fair Value Measurements at Reporting Date Using Description Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading securities 307,754,960 307,754,960 – – Short-term investments 781,850,000 711,850,000 70,000,000 – 1,089,604,960 1,019,604,960 70,000,000 – Fair Value Measurements at Reporting Date Using Description Year Ended December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading securities 307,693,782 307,693,782 – – Short-term investments 685,512,063 – 685,512,063 – 993,205,845 307,693,782 685,512,063 – |
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 loss of the Group includes the foreign currency translation adjustments. |
Segment Reporting | Segment reporting The Group operates and manages its business as a single segment. The Group’s chief operating decision maker has been identified as the CEO of the Group. The results of operations of the Group are regularly reviewed by the Chief Executive Officer on a consolidated basis. The Group primarily generates its revenues from customers in the PRC. Accordingly, no geographical segments are presented. Substantially all of the Group’s long-lived assets are located in the PRC. |
Comparative Information | Comparative information Certain of the prior year comparative figures have been reclassified to conform to the current year’s presentation. |
Employee Benefits | Employee benefits The full-time employees of the Group’s PRC subsidiaries participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary of the Group to make contributions to the government for these benefits beyond the contribution made. The total amounts for such employee benefits, which were expensed as incurred, RMB21,410,446, RMB22,859,925 and RMB22,289,686 (USD 3,241,900) for the years ended December 31, 2016, 2017 and 2018, 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. |
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, 2017, the Group had RMB917,808,935, RMB 22,172,389 and RMB5,325,418 held in cash and bank deposits by entity located in the PRC, Cayman Island and Hong Kong, respectively. As of December 31, 2018, the Group had RMB 538,780,644 (USD78,362,395), RMB721,573,480 (USD104,948,510) and RMB5,621,368 (USD817,594) held in cash and bank deposits by entity located in the PRC, Cayman Island and Hong Kong, 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 who are former franchisees, third-party corporates and third-party franchisees 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, 2017, and 2018, there were RMB6,600,000 and RMB106,549,431 (USD15,496,972) 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
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 RMB in 2017 was approximately 6.3% and the appreciation is 5.7% in 2018, respectively. 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, 2016, 2017 and 2018, the net foreign currency translation gain resulting from the translation from USD to RMB reporting currency recorded in other comprehensive income was RMB1,875,003, RMB1,317,020 and RMB66,453,841 (USD9,665,310), respectively. |
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. In May 2014, the Financial Accounting Standard Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Recently issued accounting pronouncements (continued) Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Group will adopt these amendments on January 1, 2019. The Group will adopt the new revenue standards using the full retrospective method. While the Group continue to evaluate possible impacts on our consolidated financial statements, ASU 2014-09 and the related ASUs are currently expected to impact either the amount or timing of revenue recognition as follows: • Under the existing guidance, initial one-time franchise fee was recognized when the hotels opened for business and the Group had fulfilled its commitments and obligations. Upon adoption of new revenue standard, the one-time franchise fee will be recognized over the term of the franchise contract. This change is expected to reduce franchise revenue by approximately RMB25,601,110 (USD 3,723,527) for year ended December 31, 2018. • Under the existing guidance, the Group adopted the incremental cost model to account for customer loyalty program. The estimated incremental costs are accrued and recorded as accruals for customer loyalty program as members accumulate points and are recognized as selling and marketing expense in the accompanying consolidated statements of comprehensive income. Under the new revenue standard, loyalty program is considered a separate performance obligation and the consideration allocated to the loyalty program will be recognized as revenue upon point redemption, net of any cost paid to the franchisees and other third parties. These changes are expected to decrease total revenues and selling and marketing expense expenses by RMB7,262,985 (USD 1,056,357) and RMB2,995,384 (USD 435,660) respectively for year ended December 31, 2018. The new standard will require the Group to provide more robust disclosures than required by previous guidance, including disclosures related to disaggregation of revenue into appropriate categories, performance obligations, and the judgments made in revenue recognition determinations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall In February 2016, the FASB issued ASU No. 2016-02, Leases which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, or ASU 2018-10, to supersede ASU 2016-02. In addition, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Improvements , that provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). The u pdated guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. As of December 31, 2018, the Group has certain leases for its leased-and-operated hotels that are not currently recognized on its consolidated balance sheets. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Recently issued accounting pronouncements (continued) These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The adoption of ASU 2016-15 will modify the Group’s current disclosures and classifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Group’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows In January 2017, the FASB issued ASU 2017-01, Business Combinations 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Recently issued accounting pronouncements (continued) In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In February 2017, the FASB issued ASU 2017-05 (“ASU 2017-05”), Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Major subsidiaries Percentage of Ownership Date of Incorporation, Merger or Acquisition Place of Incorporation Major Operation GreenTree Inns Hotel (Shanghai) Management, Inc. 100 % November 30, 2004 PRC Hotel management GreenTree Inns Hotel (China) Management, Inc. 100 % June 30, 2005 PRC Hotel management GreenTree Inns Jiangpu Hotel (Shanghai) Company Limited. 100 % August 9, 2005 PRC Hotel management Hexie (Changzhou) Hotel Management Co., Ltd. 100 % September 14, 2006 PRC Hotel management GreenTree Inns Hotel (Jiangsu) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Changning) Management, Inc. 100 % January 30, 2007 PRC Hotel management GreenTree Inns Hotel (Tianjin) Co., Ltd. 100 % August 2, 2007 PRC Hotel management GreenTree Inns Hotel (Zhejiang) Management, Inc. 100 % August 13, 2007 PRC Hotel management GreenTree Inns Hotel (Sichuan) Management, Inc. 100 % January 8, 2008 PRC Hotel management GreenTree Inns Hotel (Beijing) Management, Inc. 100 % March 17, 2008 PRC Hotel management Shiruide Hotel Management (Shanghai) Co., Ltd. 100 % February 16, 2009 PRC Hotel management Jinan Dongrunbao Inns Management Co., Ltd. 100 % April 22, 2009 PRC Hotel management GreenTree Suites Management Corp (“GreenTree Suites”) 100 % June 30, 2009 Cayman Islands Investment holding Pacific Hotel Investment, Inc.(“PHI”) 100 % June 30, 2009 Samoa Investment holding GreenTree Inns Hotel Management Group, Inc. (“GreenTree Samoa”) 100 % October 28, 2010 Samoa Investment holding GreenTree Hotels (Hong Kong), Limited. 100 % February 17, 2011 Hong Kong Investment holding Shanghai Evergreen Technology Co., Ltd. 100 % October 20, 2011 PRC Information (“Shanghai Evergreen”) technology services Shanghai Beifu Industrial Co., Ltd. 100 % February 25, 2014 PRC Hotel management Shenzhen Gegao Investment Management Co., Ltd. 100 % May 7, 2015 PRC Investment holding Yancheng Ruixin Hotel Management Co., Ltd. 70 % June 5, 2015 PRC Hotel management Shanghai Jingjia Hotel Co., Ltd. 100 % February 15, 2017 PRC Hotel management Shanghai Wumian Hotel Management Co,.Ltd. 66.7 % January 16, 2018 PRC Hotel management Yancheng Zexin Hotel Management Co., Ltd. 51 % July 1, 2018 PRC Hotel management Foshan Baiqinghui Hotel Management Co,.Ltd. 70 % August 31, 2018 PRC Hotel management GreenTree Hotel (Xuzhou) Co.Ltd. 100 % February 5, 2018 PRC Hotel property Banyan Hotel (Xuzhou) Co.Ltd 100 % May 3, 2018 PRC Hotel property |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Property and equipment, net consists of the following: As of December 31, 2017 2018 2018 RMB RMB USD Buildings 86,801,082 191,222,937 27,812,223 Leasehold improvements 224,431,821 254,720,926 37,047,622 Furniture, fixtures and equipment 32,283,771 40,771,896 5,930,026 Motor vehicles 1,693,006 2,486,375 361,628 Total 345,209,680 489,202,134 71,151,499 Less: Accumulated depreciation (248,540,429 ) (265,449,689 ) (38,608,055 ) Impairment – (5,008,677 ) (728,482 ) 96,669,251 218,743,768 31,814,962 Construction in progress – 3,645,805 530,260 Property and equipment, net 96,669,251 222,389,573 32,345,222 |
Amortization of Intangible Assets, Estimated Useful Lives | Amortization is computed using the straight-line method over the following estimated useful lives: Trademark 10 years Network rights 10 years Purchased software 5 years Favorable leases the remaining lease term Reacquired rights the remaining franchise term |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value | The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value as of December 31, 2017 and 2018: Fair Value Measurements at Reporting Date Using Description Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading securities 307,754,960 307,754,960 – – Short-term investments 781,850,000 711,850,000 70,000,000 – 1,089,604,960 1,019,604,960 70,000,000 – Fair Value Measurements at Reporting Date Using Description Year Ended December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Trading securities 307,693,782 307,693,782 – – Short-term investments 685,512,063 – 685,512,063 – 993,205,845 307,693,782 685,512,063 – |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following is a summary of the fair values of the assets acquired and liabilities assumed: 2018 Amortization Period Current assets (i) 11,520,969 Property and equipment 32,618,088 3 - 17 years Intangible assets Favorable leases 20,095,000 Remaining lease terms Trademark 1,530,000 Remaining beneficial period Goodwill 2,827,885 Current liabilities (18,636,959 ) Deferred tax liabilities (5,406,250 ) Noncontrolling interest (8,509,857 ) Total 36,038,876 (i) Current assets acquired primarily included cash and cash equivalent of RMB1,177,106, other receivables of RMB1,438,641 and loans receivable of RMB7,500,000. |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loans Receivable, Net | Loans receivable, net is comprised of the following: As of December 31, 2017 2018 2018 RMB RMB USD Loans receivable, current portion Franchisees 6,600,000 18,757,404 2,728,151 Third parties – 48,439,164 7,045,184 Total 6,600,000 67,196,568 9,773,335 Loans receivable, non-current portion Franchisees – 39,352,863 5,723,637 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment Net, Expected Useful Lives | Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight line method over the following expected useful lives: Leasehold improvements Over the shorter of the lease term or estimated useful lives Buildings 20 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Property and equipment, net consists of the following: As of December 31, 2017 2018 2018 RMB RMB USD Buildings 86,801,082 191,222,937 27,812,223 Leasehold improvements 224,431,821 254,720,926 37,047,622 Furniture, fixtures and equipment 32,283,771 40,771,896 5,930,026 Motor vehicles 1,693,006 2,486,375 361,628 Total 345,209,680 489,202,134 71,151,499 Less: Accumulated depreciation (248,540,429 ) (265,449,689 ) (38,608,055 ) Impairment – (5,008,677 ) (728,482 ) 96,669,251 218,743,768 31,814,962 Construction in progress – 3,645,805 530,260 Property and equipment, net 96,669,251 222,389,573 32,345,222 |
Schedule of Depreciation Expense | Depreciation expense was RMB34,045,260, RMB24,076,465 and RMB23,919,015 (USD3,478,876) for the years ended December 31, 2016, 2017 and 2018, respectively, and were included in the following captions: As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Hotel operating costs 33,213,969 22,978,585 21,313,405 3,099,906 General and administrative costs 831,291 1,097,880 2,605,610 378,970 Total 34,045,260 24,076,465 23,919,015 3,478,876 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2017 2018 2018 RMB RMB USD Trademark 183,361 4,724,493 687,149 Network rights – 259,048 37,677 Purchased software 10,666,224 10,980,093 1,596,988 Reacquired rights 2,594,781 2,531,418 368,180 Favorable leases 432,376 20,498,648 2,981,405 Others 435,185 435,185 63,295 Total 14,311,927 39,428,885 5,734,694 Less: Accumulated amortization (10,584,544 ) (12,215,494 ) (1,776,670 ) Total. 3,727,383 27,213,391 3,958,024 |
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 2019 4,955,438 2020 4,931,299 2021 4,858,956 2022 4,359,441 2023 4,084,318 Thereafter 4,023,937 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 31,2017 and 2018 were as follows: Balance of goodwill RMB USD Balance at January 1, 2017 and December 31, 2017 2,959,183 430,395 Increase in goodwill related to acquisition (Note 3) 2,827,885 411,299 Balance at December 31, 2018 5,787,068 841,694 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long Term Investments [Abstract] | |
Schedule of Long-Term Investments | As at December 31, 2017 and 2018, long-term investments consisted of the following: As of December 31, 2017 2018 2018 RMB RMB USD Equity method investments Yancheng Zexin Hotel Management Co., Ltd. 2,565,871 – – Tianjin GreenTree Tianbao Hotel Management Co., Ltd. 10,008,647 2,650,405 385,485 Steigenberger (Beijing) Hotel Management Co., Ltd. ("Steigenberger") 5,932,840 5,567,581 809,771 Cost method investments Shanghai Liming Intelligent Technology Limited 300,000 300,000 43,633 Yibon Hotel Group Co., Ltd ("Yibon") 103,701,474 103,701,474 15,082,755 Total 122,508,832 112,219,460 16,321,644 |
Schedule of Condensed Financial Information of Groups Equity Investments | The Group summarized the condensed financial information of the Group’s equity investments as a group below in accordance with Rule 4-08 of Regulation S-X: Balance sheet data: As of December 31, 2017 2018 2018 RMB RMB USD Current assets 14,961,672 10,402,882 1,513,036 Non-current assets 39,741,645 15,038,080 2,187,198 Current liabilities 8,294,529 5,250,596 763,668 Non-current liabilities 11,214,974 3,581,957 520,974 8. LONG-TERM INVESTMENTS (CONTINUED) Operating data: As of December 31, 2017 2018 2018 RMB RMB USD Revenues 21,486,273 17,131,157 2,491,623 Gross profit 12,397,526 10,483,609 1,524,778 Operating loss (1,976,331 ) (2,760,962 ) (401,565 ) Net loss (1,799,168 ) (4,539,052 ) (660,178 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | |
Schedule of Other Assets | As of December 31, 2017 2018 2018 RMB RMB USD Long-term time deposits – 60,000,000 8,726,638 Acquisition deposits – 18,120,615 2,635,534 Rental deposit 5,065,000 5,065,000 736,674 Others 676,301 2,515,908 365,922 Total . 5,741,301 85,701,523 12,464,768 |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short Term Borrowings [Abstract] | |
Schedule of Short-term Debt | As of December 31, 2017 2018 2018 RMB RMB USD Short-term bank borrowings – 60,000,000 8,726,638 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2017 2018 2018 RMB RMB USD Other payables 175,237,562 169,861,713 24,705,360 Value added tax and other taxes payable 50,863,338 52,639,207 7,656,055 Accrued rental 2,987,206 2,151,623 312,941 Accrued utilities 2,482,032 3,307,734 481,090 Accrual for membership program 19,684,705 22,259,376 3,237,492 Other accrued expenses 5,764,060 3,839,332 558,408 Unrealized gains from disposal of long-term investment 36,723,048 – – Payable for business acquisition – 10,000,000 1,454,440 Total 293,741,951 264,058,985 38,405,786 |
Hotel Operating Costs (Tables)
Hotel Operating Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 2017 2018 2018 RMB RMB RMB USD Rental 65,616,232 60,252,952 76,055,484 11,061,811 Utilities 17,274,356 16,692,172 19,264,487 2,801,903 Personnel cost 32,754,011 27,546,240 33,715,007 4,903,644 Depreciation and amortization 33,751,208 22,978,585 21,313,405 3,099,906 Consumable, food and beverage 14,161,810 13,470,072 19,275,688 2,803,533 Costs of general managers of franchised-and-operated hotels 45,515,832 54,291,625 70,480,306 10,250,935 Other costs of franchised-and-operated hotels 18,822,094 23,497,850 28,888,506 4,201,659 Others 12,236,665 14,916,556 11,961,462 1,739,724 Total 240,132,208 233,646,052 280,954,345 40,863,115 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Share Options | The fair value of share options was estimated using the following significant assumptions: Granted in 2018 Risk-free interest rate 2.42 % Volatility 34.00 % Dividend yield – Life of option 6 years |
Summary of Share Option Activity Under Option Plans | The following table summarized the Group’s share option activity under the option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value USD Years USD Share options outstanding at January 1, 2018 – – – – Granted 1,733,000 12.93 Forfeited (141,500 ) 12.48 Share options outstanding at December 31, 2018 1,591,500 12.94 3.11 1,180,080 Vested and expected to vest at December 31, 2018 1,452,720 12.93 3.07 1,080,644 Exercisable as of December 31, 2018 135,000 12.00 0.5 133,650 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Current tax 96,219,834 193,428,603 153,947,311 22,390,708 Deferred tax (12,296,224 ) (6,777,448 ) 6,238,534 907,357 Total 83,923,610 186,651,155 160,185,845 23,298,065 |
Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | 16. INCOME TAXES (CONTINUED) Reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Years ended December 31 2016 2017 2018 PRC statutory tax rate 25 % 25 % 25 % Withholding tax on the PRC earnings distribution – 14 % 4 % Effect of international rate difference (1 %) 2 % (1 %) Effect of preferential tax rate (2 %) (3 %) (3 %) Tax effect of expenses that are not deductible in determining taxable profit 1 % 1 % 4 % Effective tax rate 23 % 39 % 29 % |
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, 2017 and 2018 are as follows: As of December 31, 2017 2018 2018 RMB RMB USD Deferred tax assets: Net loss carryforward 3,830,587 3,378,686 491,410 Deferred revenue 37,792,874 46,280,663 6,731,243 Deferred rent 6,491,710 6,235,277 906,883 Bad debt expenses 1,178,511 1,608,304 233,918 Accrued expenses 14,757,386 13,439,648 1,954,716 Unrealized gains from disposal of long-term investment 9,180,762 – – Impairment of long-lived assets – 1,252,169 182,120 Valuation allowance (3,672,489 ) (4,284,778 ) (623,195 ) Total deferred tax assets 69,559,341 67,909,969 9,877,095 Deferred tax liabilities: Depreciation of property and equipment (4,782,353 ) (4,028,230 ) (585,882 ) Unrealized gains from trading securities (27,745,951 ) (10,312,983 ) (1,499,961 ) Intangible assets (1,014,907 ) (5,851,517 ) (851,068 ) Withholding tax on PRC earnings to be distributed – (23,345,894 ) (3,395,519 ) Total deferred tax liabilities (33,543,211 ) (43,538,624 ) (6,332,430 ) |
Schedule of Unrecognized Tax Benefits | . Unrecognized tax benefits — January 1, 2017 103,688,865 Increases — tax positions in the current period 21,916,258 Decreases — tax positions in prior period (12,305,490 ) Unrecognized tax benefits — December 31, 2017 113,299,633 Unrecognized tax benefits — January 1, 2018 113,299,633 Increases — tax positions in the current period 58,693,484 Decreases — tax positions in prior period (2,373,708 ) Unrecognized tax benefits — December 31, 2018 169,619,409 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions or Balances with the Group | The related parties that had transactions or balances with the Group in 2017 and 2018 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 Senior management of the Group 1250 Bayshore Highway, LLC (“Bayshore”) Hotel management Controlled by Alex S.Xu APAM Holdings, LLC(“APAM”) Investment holding Controlled by Alex S.Xu Napa Infinity Winery (Shanghai) Inc. (“Napa”) Wine distributor Controlled by Hui Xu 519 Information Technology (Shanghai) Inc. (“519”) Wine distributor Controlled by Hui Xu Pacific Hotel Management (Rongcheng) Co., Ltd. (“Rongcheng”) Hotel management Controlled by Hui Xu GTI Investment holding Shareholder of the Group, controlled by Alex S. Xu Tianjin GreenTree Tianbao Hotel Management CO., Ltd. (“TB”) Franchised hotels Equity investee of the Group JYH Hotel management Equity investee of the Group Yancheng Zexin Hotel Management Co., Ltd.(“Ze Xin”) ** Hotel management Equity investee of the Group Steigenberger Franchised hotels Equity investee of the Group Beifu Hong Kong Industrial Co. Limited (“HK Beifu”) Investment holding Controlled by Alex S.Xu Shiquanmeiwei (Beijing) Catering and Management CO., Ltd.(“Shiquanmeiwei”) Catering management Controlled by GTI Shanghai JYHM Restaurant Management CO., Ltd.(“JYHM”) Catering management Controlled by GTI |
Schedule of Related Party Balances | (a) Related party balances Due from related parties: As of December 31, 2017 2018 2018 RMB RMB USD Current: GTI 1,717,539 – – Steigenberger 225,000 225,000 32,725 Ze Xin 1,306,153 – – Shiquanmeiwei – 3,600 523 3,248,692 228,600 33,248 Non-current: Ze Xin 2,600,000 – – Due to related parties: As of December 31, 2017 2018 2018 RMB RMB USD JYHM – 221,028 32,147 TB 473,018 64,550 9,389 473,018 285,578 41,536 |
Schedule of Related Party Transactions | (b) Related party transactions During the years ended December 31, 2017 and 2018, related party transactions consisted of the following: As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Loan to Yan Zhang (150,000,000 ) Interest income from Yan Zhang 4,595,116 3,515,358 – – Interest income from Ze Xin – 75,460 263,366 38,305 Repayment from Yan Zhang 30,000,000 128,110,474 – – Repayment from GTI 17,309,623 9,730,276 1,717,539 249,806 Repayment to JYH (14,200,539 ) – – – Franchised revenue from TB 540,827 400,639 389,583 56,662 Franchised revenue from Ze Xin 152,284 232,766 44,763 6,511 Advance from TB 224,516 294,193 – – Repayment from Bayshore – 8,671,250 – – (Repayment to)/Advance from Rongcheng (141,380 ) 141,380 – – Advance to Napa (434,826 ) – – – Advance to Shiquanmeiwei – – 3,600 524 Advance from JYHM – – (221,028 ) (32,147 ) Purchase from Napa – 4,035,262 – – Loan to Steigenberger – (225,000 ) – – Loan to Ze Xin – (3,500,000 ) (4,300,000 ) (625,409 ) Repayment from Ze Xin 579,167 367,488 – – Advance from/(Repayment to) 519 4,100 (4,100 ) – – |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements | Future minimum lease payments under non-cancellable operating lease agreements at December 31, 2018 were as follows: Year Ended December 31, 2018 2018 RMB USD 2019 82,142,137 11,947,078 2020 78,923,815 11,478,993 2021 75,246,421 10,944,138 2022 61,747,409 8,980,788 2023 54,551,591 7,934,200 Thereafter 220,116,253 32,014,581 Total 572,727,626 83,299,778 |
Schedule of Future Minimum Lease Receivables under Non-Cancellable Operating Leases with Tenants | At 31 December 2018, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows: Year Ended December 31, 2018 2018 RMB USD 2019 43,846,815 6,377,255 2020 36,109,529 5,251,913 2021 33,746,012 4,908,154 2022 26,798,827 3,897,728 2023 24,107,631 3,506,310 Thereafter 91,634,251 13,327,648 Total 256,243,065 37,269,008 |
Earnings Per Share (Table)
Earnings Per Share (Table) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 2017 2018 2018 RMB RMB RMB USD Numerator: Net income used in calculating earnings per share-basic and diluted 265,973,599 285,400,182 394,104,841 57,320,172 Denominator: Weighted average number of Class A ordinary shares outstanding used in calculating basic and diluted earnings per share 48,635,252 48,635,252 62,860,578 62,860,578 Weighted average number of Class B ordinary shares outstanding used in calculating basic and diluted earnings per share 42,716,957 42,716,957 36,288,343 36,288,343 Allocation of undistributed earnings — basic To Class A Shares 141,602,409 151,944,981 249,863,114 36,341,083 To Class B Shares 124,371,190 133,455,201 144,241,727 20,979,089 Basic and diluted earnings per share: To Class A Shares 2.91 3.12 3.97 0.58 To Class B Shares 2.91 3.12 3.97 0.58 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, 2017 2018 2018 RMB RMB USD ASSETS Current assets Cash and cash equivalents – 721,573,493 104,948,512 Dividends receivable 39,691,103 – – Other current assets – 4,117,311 598,838 Total current assets 39,691,103 725,690,804 105,547,350 Non-current assets: Other assets – 6,875,561 1,000,009 Investments in subsidiaries 732,245,241 1,129,273,719 164,246,051 TOTAL ASSETS 771,936,344 1,861,840,084 270,793,410 LIABILITIES AND EQUITY Current liabilities: Dividends payable 39,691,103 – – Amounts due to subsidiaries – 7,090,700 1,031,300 Total liabilities 39,691,103 7,090,700 1,031,300 Shareholders’ Equity: Class A ordinary shares (USD0.50 par value per share; 60,000,000 and 400,000,000 shares authorized as of December 31, 2017, 2018; 48,635,252 and 66,789,300 shares issued and outstanding as of December 31, 2017 and 2018) 160,189,926 217,421,867 31,622,699 Class B ordinary shares (USD0.50 par value per share; 200,000,000 and 100,000,000 shares authorized as of December 31, 2017, 2018; 42,716,957 and 34,762,909 shares issued and outstanding as of December 31, 2017 and 2018) 140,696,841 115,534,210 16,803,754 Additional paid-in capital 212,309,734 1,003,026,803 145,884,198 Retained earnings 223,134,889 456,398,812 66,380,454 Accumulated other comprehensive (loss) income (4,086,149 ) 62,367,692 9,071,005 Total Shareholders’ Equity 732,245,241 1,854,749,384 269,762,110 TOTAL LIABILITIES AND EQUITY 771,936,344 1,861,840,084 270,793,410 |
Condensed Statements of Operations | Condensed statements of operations As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD General and administrative expenses – – (1,307,753) (190,205) Interest income – – 13,785,679 2,005,044 Share of profit in subsidiaries, net (Note a) 265,973,599 285,400,182 381,626,915 55,505,333 Income before tax and net income 265,973,599 285,400,182 394,104,841 57,320,172 Other comprehensive income, net of tax - Foreign currency translation adjustments 1,875,003 1,317,020 66,453,841 9,665,310 Comprehensive income 267,848,602 286,717,202 460,558,682 66,985,482 |
Condensed Statements of Cash Flows | 23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Continued) Condensed statements of cash flows As of December 31, 2016 2017 2018 2018 RMB RMB RMB USD Operating activities: Net income 265,973,599 285,400,182 394,104,841 57,320,172 Adjustments to reconcile net income to net cash used in operating activities: Share-based compensation – – 1,307,753 190,205 Changes in operating assets and liabilities: Other current assets – – (4,117,311 ) (598,838 ) Amounts due to subsidiaries – – 7,090,700 1,031,300 Share of profit in subsidiaries, net (265,973,599 ) (285,400,182 ) (381,626,915 ) (55,505,333 ) Net cash provided by operating activities – 16,759,068 2,437,506 Investing activities: Advances for acquisitions – – (6,875,561 ) (1,000,009 ) Net cash used in investing activities – – (6,875,561 ) (1,000,009 ) Financing activities: Proceeds from issuance of Class A ordinary shares – – 837,505,007 121,810,051 Payment for initial public offering costs – – (30,827,578 ) (4,483,685 ) Distribution to the shareholders (note 1) (17,956,030 ) (579,042,699 ) (200,532,021 ) (29,166,173 ) Dividends from subsidiaries 17,956,030 579,042,699 39,691,103 5,772,832 Net cash generated from financing activities – – 645,836,511 93,933,025 Effect of exchange rate changes on cash and cash equivalents – – 65,853,475 9,577,990 Net increase in cash and cash equivalents – – 721,573,493 104,948,512 Cash and cash equivalents at beginning of the year – – – – Cash and cash equivalents at end of the year – – 721,573,493 104,948,512 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Details) | Mar. 27, 2018CNY (¥)shares | Mar. 27, 2018USD ($)$ / sharesshares | Mar. 11, 2018shares | Mar. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017CNY (¥)shares |
Organization And Principal Activities [Line Items] | ||||||||
Entity incorporation date | Oct. 18, 2017 | Oct. 18, 2017 | ||||||
Proceeds from issuance of shares | ¥ 837,505,007 | $ 121,810,051 | ||||||
Payment for initial public offering costs | ¥ 30,827,578 | $ 4,483,685 | ||||||
Leased And Operated Hotels | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Lease description | The Group typically receives rental holidays of three to twenty-four months and pays fixed rent on a monthly or quarterly 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 | The Group typically receives rental holidays of three to twenty-four months and pays fixed rent on a monthly or quarterly 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 | monthly or quarterly | monthly or quarterly | ||||||
Leased And Operated Hotels | Minimum | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Lease term | 10 years | 10 years | ||||||
Rental holidays receivable term | 3 months | 3 months | ||||||
Fixed rent payable term | 3 years | 3 years | ||||||
Period subject to increase in rent value | 3 years | 3 years | ||||||
Leased And Operated Hotels | Maximum | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Lease term | 20 years | 20 years | ||||||
Rental holidays receivable term | 24 months | 24 months | ||||||
Fixed rent payable term | 5 years | 5 years | ||||||
Period subject to increase in rent value | 5 years | 5 years | ||||||
Franchised And Managed Hotels | Minimum | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Lease term | 5 years | 5 years | ||||||
Franchised And Managed Hotels | Maximum | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Lease term | 20 years | 20 years | ||||||
Initial Public Offering | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Payment for initial public offering costs | ¥ 30,827,578 | $ 4,483,685 | ||||||
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. | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Dividend declared to fund the repurchase of ordinary shares | ¥ | ¥ 30,382,838 | |||||||
Dividend declared in conjunction to the Reorganization | ¥ | ¥ 588,350,964 | |||||||
GreenTree Inns Hotel Management Group, Inc. | Dividend Declared | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Cash dividend | $ | $ 25,578,618 | $ 25,578,618 | ||||||
Common Class A | Initial Public Offering | ||||||||
Organization And Principal Activities [Line Items] | ||||||||
Stock issued during period | 10,200,000 | 10,200,000 | 10,200,000 | 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 | 74.51% | 74.51% |
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, 2018 | |
Organization And Principal Activities [Line Items] | |
Entity incorporation date | Oct. 18, 2017 |
GreenTree Inns Hotel (Shanghai) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Nov. 30, 2004 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
Major Operation | Hotel management |
GreenTree Inns Hotel (Sichuan) Management, Inc. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jan. 8, 2008 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
Major Operation | Hotel management |
GreenTree Suites | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Place of Incorporation | Cayman Islands |
Major Operation | Investment holding |
PHI | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Jun. 30, 2009 |
Place of Incorporation | Samoa |
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 |
Place of Incorporation | Samoa |
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 |
Place of Incorporation | Hong Kong |
Major Operation | Investment holding |
Shanghai Evergreen | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 100.00% |
Entity incorporation date | Oct. 20, 2011 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
Major Operation | Hotel management |
Yancheng Zexin Hotel Management Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Percentage of Ownership | 51.00% |
Entity incorporation date | Jul. 1, 2018 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
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 |
Place of Incorporation | PRC |
Major Operation | Hotel property |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2018CNY (¥)Segment | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | May 01, 2016 | Apr. 30, 2016 | |
Significant Accounting Policies [Line Items] | |||||||
Short-term investments | ¥ 685,512,063 | ¥ 781,850,000 | $ 99,703,594 | ||||
Trading securities | 307,693,782 | 307,754,960 | 44,752,204 | ||||
Trading securities realized gain | 14,381,423 | $ 2,091,691 | 22,565,408 | ¥ 24,236,815 | |||
Trading securities unrealized gains | 38,827,430 | $ 5,647,215 | 110,983,805 | 95,052,226 | |||
Impairment loss | ¥ 0 | ||||||
Number of reporting unit | Segment | 1 | 1 | |||||
Impairment of long-lived assets | ¥ 5,008,677 | $ 728,482 | |||||
Accruals for membership program | 22,259,376 | 19,684,705 | 3,237,492 | ||||
Sublease rental revenue | 53,852,195 | 7,832,477 | 42,218,264 | 27,234,661 | |||
Hotel manager fees | 99,185,965 | 14,426,000 | 83,482,652 | 70,433,507 | |||
VAT rate | 6.00% | ||||||
Advertising and promotional expenses | 15,654,573 | 2,276,863 | 11,369,822 | 10,379,012 | |||
Government subsidies | 15,150,107 | 2,203,492 | 10,220,995 | 8,632,105 | |||
Operating lease rental expenses | 78,272,335 | 11,384,239 | 60,839,102 | 66,416,232 | |||
Employee benefits | 22,289,686 | 3,241,900 | 22,859,925 | 21,410,446 | |||
Foreign currency translation adjustments | 66,453,841 | 9,665,310 | 1,317,020 | 1,875,003 | |||
Revenues | 945,005,934 | 137,445,413 | 778,131,813 | 647,788,607 | |||
Selling and marketing expense | 50,393,151 | 7,329,380 | 45,032,441 | 26,609,110 | |||
Restricted cash | 3,300,000 | 3,000,000 | 479,965 | ||||
ASU 2014-09 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Revenue | (7,262,985) | (1,056,357) | |||||
Selling and marketing expense | (2,995,384) | (435,660) | |||||
Franchise | ASU 2014-09 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Revenue | (25,601,110) | $ (3,723,527) | |||||
Loans Receivable | |||||||
Significant Accounting Policies [Line Items] | |||||||
Receivables outstanding | ¥ 106,549,431 | ¥ 6,600,000 | 15,496,972 | ||||
Loans Receivable | Credit Concentration Risk | |||||||
Significant Accounting Policies [Line Items] | |||||||
Appreciation in functional currency | 6.30% | ||||||
Appreciation in functional currency | 5.70% | 5.70% | |||||
PRC | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | ¥ 538,780,644 | ¥ 917,808,935 | 78,362,395 | ||||
Cayman Island | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | 721,573,480 | 22,172,389 | 104,948,510 | ||||
Hong Kong | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration of credit risk | ¥ 5,621,368 | 5,325,418 | $ 817,594 | ||||
RMB | |||||||
Significant Accounting Policies [Line Items] | |||||||
Foreign currency exchange rate | 6.8755 | 6.8755 | |||||
HKD | |||||||
Significant Accounting Policies [Line Items] | |||||||
Foreign currency exchange rate | 7.8316 | 7.8316 | |||||
Accrued Expenses and Other Current Liabilities | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accruals for membership program | ¥ 22,259,376 | 19,684,705 | 7,034,452 | $ 3,237,492 | |||
Other Operating Expenses | |||||||
Significant Accounting Policies [Line Items] | |||||||
Impairment of long-lived assets | ¥ 5,008,677 | $ 728,482 | 0 | 0 | |||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated life of paid membership program | 3 years | 3 years | |||||
Percentage of business tax and related surcharges on revenues | 5.00% | ||||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated life of paid membership program | 5 years | 5 years | |||||
Percentage of business tax and related surcharges on revenues | 5.65% | ||||||
Revenues | $ | $ 1,070,000,000 | ||||||
Restricted cash | ¥ 3,300,000 | 3,000,000 | |||||
Bank Time Deposits | |||||||
Significant Accounting Policies [Line Items] | |||||||
Short-term investments | 0 | 711,850,000 | 0 | ||||
Short-term investments, realized gains | 2,935,815 | $ 426,997 | 0 | ¥ 11,709,574 | |||
Wealth Management Products | |||||||
Significant Accounting Policies [Line Items] | |||||||
Short-term investments | ¥ 685,512,063 | ¥ 70,000,000 | $ 99,703,594 |
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, 2018 | |
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, 2018 | |
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 |
Purchased Software | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Favorable Leases | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining lease term |
Reacquired Rights | |
Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | the remaining franchise term |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Trading securities | ¥ 307,693,782 | $ 44,752,204 | ¥ 307,754,960 |
Short-term investments | 685,512,063 | 781,850,000 | |
Fair Value Measurements | 993,205,845 | 1,089,604,960 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Trading securities | 307,693,782 | 307,754,960 | |
Short-term investments | 711,850,000 | ||
Fair Value Measurements | 307,693,782 | 1,019,604,960 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Short-term investments | 685,512,063 | 70,000,000 | |
Fair Value Measurements | ¥ 685,512,063 | ¥ 70,000,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Jul. 01, 2018CNY (¥) | Aug. 31, 2018CNY (¥) | Jul. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥)SegmentAcquisition | Dec. 31, 2018USD ($)SegmentAcquisition | Jan. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Business acquisitions, net revenue of acquirees | ¥ 14,148,551 | |||||
Business acquisitions, net loss of acquirees | ¥ 332,960 | |||||
Number of reporting unit | Segment | 1 | 1 | ||||
2018 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, number of acquisitions completed | Acquisition | 4 | 4 | ||||
Yancheng Zexin Hotel Management Co., Ltd. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, equity interest acquired | 1.00% | 50.00% | ||||
Business acquisition, cash consideration paid | ¥ 80,000 | |||||
Business acquisition, acquisition closing date | Jul. 1, 2018 | |||||
Business acquisition, total equity interest acquired | 51.00% | |||||
Business acquisition, fair value of previously held equity interest | ¥ 3,333,000 | |||||
Business acquisition, gain related to revaluation of previously held equity interest | ¥ 1,344,212 | $ 195,508 | ||||
Business acquisition, gain, related to revaluation of previously held equity interest, recorded in consolidated statement of comprehensive income | Other income, net | Other income, net | ||||
Hotel Chain, Acquired in July 2018 | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, equity interest acquired | 100.00% | |||||
Business acquisition, cash consideration paid | ¥ 10,000,000 | |||||
Individual Hotel, Acquired in July 2018 | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, equity interest acquired | 70.00% | |||||
Business acquisition, cash consideration paid | ¥ 13,000,000 | |||||
Individual Hotel, Acquired in August 2018 | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, equity interest acquired | 70.00% | |||||
Business acquisition, cash consideration paid | ¥ 1,400,000 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Values of the Assets Acquired and Liabilities (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | |
Intangible assets | ||||
Goodwill | ¥ 5,787,068 | $ 841,694 | ¥ 2,959,183 | $ 430,395 |
2018 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Current assets (i) | 11,520,969 | |||
Property and equipment | 32,618,088 | |||
Intangible assets | ||||
Goodwill | 2,827,885 | |||
Current liabilities | (18,636,959) | |||
Deferred tax liabilities | (5,406,250) | |||
Noncontrolling interest | (8,509,857) | |||
Total | ¥ 36,038,876 | |||
2018 Acquisitions | Minimum | ||||
Intangible assets | ||||
Property and equipment net, expected useful lives | 3 years | |||
2018 Acquisitions | Maximum | ||||
Intangible assets | ||||
Property and equipment net, expected useful lives | 17 years | |||
2018 Acquisitions | Favorable Leases | ||||
Intangible assets | ||||
Favorable leases | ¥ 20,095,000 | |||
2018 Acquisitions | Trademark | ||||
Intangible assets | ||||
Favorable leases | ¥ 1,530,000 |
Acquisitions - Summary of Fai_2
Acquisitions - Summary of Fair Values of the Assets Acquired and Liabilities Parenthetical (Details) - 2018 Acquisitions | Dec. 31, 2018CNY (¥) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | ¥ 1,177,106 |
Other receivables | 1,438,641 |
Loans receivable | ¥ 7,500,000 |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Loans Receivable, Net (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, net | ¥ 67,196,568 | $ 9,773,335 | ¥ 6,600,000 |
Loans receivable, non-current portion | 39,352,863 | 5,723,637 | |
Franchisees [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, net | 18,757,404 | 2,728,151 | ¥ 6,600,000 |
Loans receivable, non-current portion | 39,352,863 | 5,723,637 | |
Third Parties [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans receivable, net | ¥ 48,439,164 | $ 7,045,184 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 4.60% | 4.60% | |
Loan amount | ¥ 67,196,568 | $ 9,773,335 | ¥ 6,600,000 |
Impairment loss for loans receivables | 0 | ||
Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan amount | ¥ 18,757,404 | $ 2,728,151 | ¥ 6,600,000 |
One-year Loan Agreement | Franchisees | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 9.90% | 9.90% | |
One-year Loan Agreement | Franchisees | Minimum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan agreement maturity term | 1 year | ||
One-year Loan Agreement | Franchisees | Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loan agreement maturity term | 3 years | ||
One-year Loan Agreement | Shanghai Zhengjin E-Commerce Co., Ltd | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 4.35% | 4.35% | |
Loan amount | ¥ 33,439,164 | $ 4,863,525 | |
Loan Agreement | Tibet Yuzhenglong Trading Co., Ltd | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Debt instrument, interest rate | 12.00% | 12.00% | |
Loan amount | ¥ 15,000,000 | $ 2,181,660 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | ¥ 489,202,134 | $ 71,151,499 | ¥ 345,209,680 | |
Less: Accumulated depreciation | (265,449,689) | (38,608,055) | (248,540,429) | |
Impairment | (5,008,677) | $ (728,482) | ||
Net book value | 218,743,768 | 31,814,962 | 96,669,251 | |
Construction in progress | 3,645,805 | 530,260 | ||
Property and equipment, net | 222,389,573 | 32,345,222 | 96,669,251 | |
Buildings | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 191,222,937 | 27,812,223 | 86,801,082 | |
Leasehold Improvements | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 254,720,926 | 37,047,622 | 224,431,821 | |
Furniture, Fixture and Equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 40,771,896 | 5,930,026 | 32,283,771 | |
Motor Vehicles | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | ¥ 2,486,375 | $ 361,628 | ¥ 1,693,006 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 23,919,015 | $ 3,478,876 | ¥ 24,076,465 | ¥ 34,045,260 |
Impairment charges | 5,008,677 | $ 728,482 | ||
Property and Equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Impairment charges | ¥ 5,008,677 | ¥ 0 | ¥ 0 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 23,919,015 | $ 3,478,876 | ¥ 24,076,465 | ¥ 34,045,260 |
Hotel Operating Costs | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | 21,313,405 | 3,099,906 | 22,978,585 | 33,213,969 |
General and Administrative Costs | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 2,605,610 | $ 378,970 | ¥ 1,097,880 | ¥ 831,291 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | ¥ 39,428,885 | $ 5,734,694 | ¥ 14,311,927 |
Less: Accumulated amortization | (12,215,494) | (1,776,670) | (10,584,544) |
Total. | 27,213,391 | 3,958,024 | 3,727,383 |
Trademark | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | 4,724,493 | 687,149 | 183,361 |
Network Rights | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | 259,048 | 37,677 | |
Purchased Software | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | 10,980,093 | 1,596,988 | 10,666,224 |
Reacquired Rights | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | 2,531,418 | 368,180 | 2,594,781 |
Favorable Leases | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | 20,498,648 | 2,981,405 | 432,376 |
Others | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Gross | ¥ 435,185 | $ 63,295 | ¥ 435,185 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Amortization expense of intangible | ¥ 1,630,950 | $ 237,212 | ¥ 879,968 | ¥ 1,309,605 | |
Other, net | 27,655 | 64,501 | $ 4,022 | ||
Impairment charges recognized on the intangible asset | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Aggregate Amortization Expense (Details) | Dec. 31, 2018CNY (¥) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2019 | ¥ 4,955,438 |
2020 | 4,931,299 |
2021 | 4,858,956 |
2022 | 4,359,441 |
2023 | 4,084,318 |
Thereafter | ¥ 4,023,937 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) - 12 months ended Dec. 31, 2018 | CNY (¥) | USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at January 1, 2017 and December 31, 2017 | ¥ 2,959,183 | $ 430,395 |
Increase in goodwill related to acquisition (Note 3) | 2,827,885 | 411,299 |
Balance at December 31, 2018 | ¥ 5,787,068 | $ 841,694 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill, impairment loss | ¥ 0 | ¥ 0 | ¥ 0 |
Long-Term Investments - Schedul
Long-Term Investments - Schedule of Long-Term Investments (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Investment [Line Items] | |||
Long-term investments | ¥ 112,219,460 | $ 16,321,644 | ¥ 122,508,832 |
Shanghai Liming Intelligent Technology Limited | |||
Investment [Line Items] | |||
Cost method investments | 300,000 | 43,633 | 300,000 |
Yibon Hotel Group Co., Ltd | |||
Investment [Line Items] | |||
Cost method investments | 103,701,474 | 15,082,755 | 103,701,474 |
Yancheng Zexin Hotel Management Co Ltd | |||
Investment [Line Items] | |||
Equity method investments | 2,565,871 | ||
Tianjin GreenTree Tianbao Hotel Management Co Ltd | |||
Investment [Line Items] | |||
Equity method investments | 2,650,405 | 385,485 | 10,008,647 |
Steigenberger (Beijing) Hotel Management Co Ltd ("Steigenberger") | |||
Investment [Line Items] | |||
Equity method investments | ¥ 5,567,581 | $ 809,771 | ¥ 5,932,840 |
Long-Term Investments - Sched_2
Long-Term Investments - Schedule of Condensed Financial Information of Groups Equity Investments (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | |
Balance sheet data: | ||||
Current assets | ¥ 10,402,882 | ¥ 14,961,672 | $ 1,513,036 | |
Non-current assets | 15,038,080 | 39,741,645 | 2,187,198 | |
Current liabilities | 5,250,596 | 8,294,529 | 763,668 | |
Non-current liabilities | 3,581,957 | 11,214,974 | $ 520,974 | |
Operating data: | ||||
Revenues | 17,131,157 | $ 2,491,623 | 21,486,273 | |
Gross profit | 10,483,609 | 1,524,778 | 12,397,526 | |
Operating loss | (2,760,962) | (401,565) | (1,976,331) | |
Net loss | ¥ (4,539,052) | $ (660,178) | ¥ (1,799,168) |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) - 1 months ended Apr. 30, 2017 - Yibon Hotel Group Co., Ltd | CNY (¥) | USD ($) |
Investment [Line Items] | ||
Cost method ownership percentage | 30.00% | 30.00% |
Payment to acquire cost method investment | ¥ 103,701,474 | $ 15,938,625 |
Shareholder option right percentage | 12.50% | 12.50% |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Other assets | ¥ 85,701,523 | $ 12,464,768 | ¥ 5,741,301 |
Long-Term Time Deposits | |||
Other assets | 60,000,000 | 8,726,638 | |
Acquisition Deposits | |||
Other assets | 18,120,615 | 2,635,534 | |
Rental Deposit | |||
Other assets | 5,065,000 | 736,674 | 5,065,000 |
Others | |||
Other assets | ¥ 2,515,908 | $ 365,922 | ¥ 676,301 |
Short-term Debt - Schedule of S
Short-term Debt - Schedule of Short-term Debt (Details) - Dec. 31, 2018 | CNY (¥) | USD ($) |
Short Term Borrowings [Abstract] | ||
Short-term bank borrowings | ¥ 60,000,000 | $ 8,726,638 |
Short-term Debt - Additional In
Short-term Debt - Additional Information (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Nov. 30, 2018CNY (¥) |
Short Term Borrowings [Abstract] | |||
Aggregate principal amount | ¥ 60,000,000 | ||
Principal amount outstanding | ¥ 60,000,000 | $ 8,726,638 | |
Debt instrument, interest rate | 4.60% | 4.60% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Payables And Accruals [Abstract] | |||
Other payables | ¥ 169,861,713 | $ 24,705,360 | ¥ 175,237,562 |
Value added tax and other taxes payable | 52,639,207 | 7,656,055 | 50,863,338 |
Accrued rental | 2,151,623 | 312,941 | 2,987,206 |
Accrued utilities | 3,307,734 | 481,090 | 2,482,032 |
Accruals for membership program | 22,259,376 | 3,237,492 | 19,684,705 |
Other accrued expenses | 3,839,332 | 558,408 | 5,764,060 |
Unrealized gains from disposal of long-term investment | 36,723,048 | ||
Payable for business acquisition | 10,000,000 | 1,454,440 | |
Total | ¥ 264,058,985 | $ 38,405,786 | ¥ 293,741,951 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) | Dec. 31, 2018 |
Common Class A | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 39.00% |
Common Class B | |
Class Of Stock [Line Items] | |
Voting rights, percentage | 61.00% |
Hotel Operating Costs - Schedul
Hotel Operating Costs - Schedule of Hotel Operating Costs (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Operating Expenses [Abstract] | ||||
Rental | ¥ 76,055,484 | $ 11,061,811 | ¥ 60,252,952 | ¥ 65,616,232 |
Utilities | 19,264,487 | 2,801,903 | 16,692,172 | 17,274,356 |
Personnel cost | 33,715,007 | 4,903,644 | 27,546,240 | 32,754,011 |
Depreciation and amortization | 21,313,405 | 3,099,906 | 22,978,585 | 33,751,208 |
Consumable, food and beverage | 19,275,688 | 2,803,533 | 13,470,072 | 14,161,810 |
Costs of general managers of franchised-and-operated hotels | 70,480,306 | 10,250,935 | 54,291,625 | 45,515,832 |
Other costs of franchised-and-operated hotels | 28,888,506 | 4,201,659 | 23,497,850 | 18,822,094 |
Others | 11,961,462 | 1,739,724 | 14,916,556 | 12,236,665 |
Total | ¥ 280,954,345 | $ 40,863,115 | ¥ 233,646,052 | ¥ 240,132,208 |
Share Based compensation - Addi
Share Based compensation - Additional Information (Details) | Dec. 31, 2018CNY (¥) | Nov. 11, 2017CNY (¥)shares | Nov. 11, 2017USD ($)shares | Jan. 31, 2018shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of fully vested ordinary shares | 352,500 | 352,500 | |||||
2018 Share Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation expense | ¥ 16,108,951 | $ 2,342,950 | |||||
Maximum life of option | 6 years | ||||||
Vesting percentage of share based compensation | 50.00% | 50.00% | |||||
Number of stock options granted | 1,733,000 | 1,733,000 | |||||
Weighted-average grant date fair value | $ / shares | $ 5.54 | ||||||
Aggregate grant date fair value of the outstanding options | ¥ 60,525,042 | ¥ 60,525,042 | $ 8,803,002 | ||||
Fair value of share options vested | 5,431,798 | $ 790,022 | |||||
Unrecognized compensation expense related to unvested options, net | ¥ 42,791,057 | ¥ 42,791,057 | $ 6,223,701 | ||||
Weighted-average period | 3 years 1 month 9 days | 3 years 1 month 9 days | |||||
2018 Share Incentive Plan | First Anniversary | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting percentage of share based compensation | 100.00% | ||||||
2018 Share Incentive Plan | Common Class A | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of authorized shares purchased by participants | 9,000,000 | ||||||
General and Administrative Costs | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation expense | ¥ 38,048,000 | $ 5,847,871 |
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, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rate | 2.42% |
Volatility | 34.00% |
Life of option | 6 years |
Share Based Compensation - Summ
Share Based Compensation - Summary of Share Option Activity Under Option Plans (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
2018 Share Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate intrinsic value, Outstanding | $ | $ 1,180,080 |
Aggregate intrinsic value, Vested and expected to vest | $ | 1,080,644 |
Aggregate intrinsic value, Exercisable | $ | $ 133,650 |
2018 Share Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, Granted | shares | 1,733,000 |
Number of options, Forfeited | shares | (141,500) |
Number of options, Ending balance | shares | 1,591,500 |
Number of options, Vested and expected to vest | shares | 1,452,720 |
Number of options, Exercisable | shares | 135,000 |
Weighted average exercise price, Granted | $ / shares | $ 12.93 |
Weighted average exercise price, Forfeited | $ / shares | 12.48 |
Weighted average exercise price, Ending balance | $ / shares | 12.94 |
Weighted average exercise price, Vested and expected to vest | $ / shares | 12.93 |
Weighted average exercise price, Exercisable | $ / shares | $ 12 |
Weighted average remaining contractual life, Outstanding | 3 years 1 month 9 days |
Weighted average remaining contractual life, Vested and expected to vest | 3 years 25 days |
Weighted average remaining contractual life, Exercisable | 6 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Jan. 01, 2008 | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016 | Jan. 31, 2019$ / shares | Dec. 31, 2018USD ($) |
Income Taxes [Line Items] | |||||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ||
Preferential income tax rate | 15.00% | ||||||
Operating loss carryforwards | ¥ 13,514,744 | $ 3,378,686 | |||||
Withholding income tax on dividends distributed to holding company outside of China | 10.00% | 10.00% | |||||
PRC withholding tax liability accrued | ¥ 23,345,894 | 3,395,519 | |||||
Ordinary Shares | Board of Directors | Subsequent Event | |||||||
Income Taxes [Line Items] | |||||||
Payment of cash dividend per ordinary shares | $ / shares | $ 0.30 | ||||||
Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards, expiration date | 2019 | 2019 | |||||
Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards, expiration date | 2023 | 2023 | |||||
Shanghai Evergreen | |||||||
Income Taxes [Line Items] | |||||||
Preferential income tax rate | 15.00% | 15.00% | |||||
Shanghai Evergreen | Earliest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Preferential Income Tax Rate Period | 2017 | 2017 | |||||
Shanghai Evergreen | Latest Tax Year | |||||||
Income Taxes [Line Items] | |||||||
Preferential Income Tax Rate Period | 2019 | 2019 | |||||
Inland Revenue, Hong Kong | GreenTree Hotels (Hong Kong), Limited. | |||||||
Income Taxes [Line Items] | |||||||
Statutory tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |||
PRC Subsidiaries | |||||||
Income Taxes [Line Items] | |||||||
Undistributed earnings of Groups PRC subsidiaries | ¥ 742,615,814 | 108,008,990 | |||||
Uncertain tax positions | 130,266,822 | 18,946,523 | |||||
Interest expense | 19,481,272 | $ 2,833,433 | |||||
Accumulated interest expense | 42,802,483 | ¥ 23,312,212 | $ 6,225,363 | ||||
Accumulated tax penalty recorded | ¥ | ¥ 0 | ¥ 0 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Tax Expense (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Expense Benefit Continuing Operations [Abstract] | ||||
Current tax | ¥ 153,947,311 | $ 22,390,708 | ¥ 193,428,603 | ¥ 96,219,834 |
Deferred tax | 6,238,534 | 907,357 | (6,777,448) | (12,296,224) |
Total | ¥ 160,185,845 | $ 23,298,065 | ¥ 186,651,155 | ¥ 83,923,610 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | Jan. 01, 2008 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Withholding tax on the PRC earnings distribution | 4.00% | 14.00% | 0.00% | |
Effect of international rate difference | (1.00%) | 2.00% | (1.00%) | |
Effect of preferential tax rate | (3.00%) | (3.00%) | (2.00%) | |
Tax effect of expenses that are not deductible in determining taxable profit | 4.00% | 1.00% | 1.00% | |
Effective tax rate | 29.00% | 39.00% | 23.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Deferred tax assets: | |||
Net loss carryforward | ¥ 3,378,686 | $ 491,410 | ¥ 3,830,587 |
Deferred revenue | 46,280,663 | 6,731,243 | 37,792,874 |
Deferred rent | 6,235,277 | 906,883 | 6,491,710 |
Bad debt expenses | 1,608,304 | 233,918 | 1,178,511 |
Accrued expenses | 13,439,648 | 1,954,716 | 14,757,386 |
Unrealized gains from disposal of long-term investment | 9,180,762 | ||
Impairment of long-lived assets | 1,252,169 | 182,120 | |
Valuation allowance | (4,284,778) | (623,195) | (3,672,489) |
Total deferred tax assets | 67,909,969 | 9,877,095 | 69,559,341 |
Deferred tax liabilities: | |||
Depreciation of property and equipment | (4,028,230) | (585,882) | (4,782,353) |
Unrealized gains from trading securities | (10,312,983) | (1,499,961) | (27,745,951) |
Intangible assets | (5,851,517) | (851,068) | (1,014,907) |
Withholding tax on PRC earnings to be distributed | (23,345,894) | (3,395,519) | |
Total deferred tax liabilities | ¥ (43,538,624) | $ (6,332,430) | ¥ (33,543,211) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits beginning balance | ¥ 113,299,633 | ¥ 103,688,865 | |
Increases — tax positions in the current period | 58,693,484 | 21,916,258 | |
Decreases — tax positions in prior period | (2,373,708) | (12,305,490) | |
Unrecognized tax benefits — ending balance | ¥ 169,619,409 | $ 24,670,120 | ¥ 113,299,633 |
Mainland and China Contributi_2
Mainland and China Contribution Plan and Profit Appropriation - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Compensation And Retirement Disclosure [Abstract] | ||||
Employee benefits | ¥ 22,289,686 | $ 3,241,900 | ¥ 22,859,925 | ¥ 21,410,446 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - Additional Information (Details) - PRC | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Statutory Accounting Practices [Line Items] | |||
Statutory reserve funds | ¥ 57,726,641 | $ 8,395,992 | ¥ 57,726,641 |
Restricted net assets | ¥ 394,424,291 | $ 57,366,634 | ¥ 391,045,190 |
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, 2018 | |
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 | Senior management of the Group |
Bayshore | |
Related Party Transaction [Line Items] | |
Related Party | 1250 Bayshore Highway, LLC (“Bayshore”) |
Nature of the party | Hotel management |
Relationship with the Group | Controlled by Alex S.Xu |
APAM | |
Related Party Transaction [Line Items] | |
Related Party | APAM Holdings, LLC(“APAM”) |
Nature of the party | Investment holding |
Relationship with the Group | Controlled by Alex S.Xu |
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 |
519 | |
Related Party Transaction [Line Items] | |
Related Party | 519 Information Technology (Shanghai) Inc. (“519”) |
Nature of the party | Wine distributor |
Relationship with the Group | Controlled by Hui Xu |
Rongcheng | |
Related Party Transaction [Line Items] | |
Related Party | Pacific Hotel Management (Rongcheng) Co., Ltd. (“Rongcheng”) |
Nature of the party | Hotel management |
Relationship with the Group | Controlled by Hui Xu |
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 |
TB | |
Related Party Transaction [Line Items] | |
Related Party | Tianjin GreenTree Tianbao Hotel Management CO., Ltd. (“TB”) |
Nature of the party | Franchised hotels |
Relationship with the Group | Equity investee of the Group |
JYH | |
Related Party Transaction [Line Items] | |
Related Party | JYH |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Ze Xin | |
Related Party Transaction [Line Items] | |
Related Party | Yancheng Zexin Hotel Management Co., Ltd.(“Ze Xin”) ** |
Nature of the party | Hotel management |
Relationship with the Group | Equity investee of the Group |
Steigenberger | |
Related Party Transaction [Line Items] | |
Related Party | Steigenberger |
Nature of the party | Franchised hotels |
Relationship with the Group | Equity investee of the Group |
HK Beifu | |
Related Party Transaction [Line Items] | |
Related Party | Beifu Hong Kong Industrial Co. Limited |
Nature of the party | Investment holding |
Relationship with the Group | Controlled by Alex S.Xu |
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 |
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 |
Related Party Transactions an_4
Related Party Transactions and Balances - Schedule of Related Party Balances (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) |
Current: | ||||
Due from related parties, current | ¥ 228,600 | $ 33,248 | ¥ 3,248,692 | |
Non-current: | ||||
Amounts due from related parties | 2,600,000 | |||
Due to related parties: | ||||
Amounts due to related parties | 285,578 | 41,536 | 473,018 | |
GTI | ||||
Current: | ||||
Due from related parties, current | 1,717,539 | |||
Shiquanmeiwei | ||||
Current: | ||||
Due from related parties, current | 3,600 | 523 | ||
Steigenberger | ||||
Current: | ||||
Due from related parties, current | 225,000 | 32,725 | 225,000 | $ 34,582 |
Ze Xin | ||||
Current: | ||||
Due from related parties, current | 1,306,153 | |||
Non-current: | ||||
Amounts due from related parties | 2,600,000 | |||
JYHM | ||||
Current: | ||||
Due from related parties, current | 3,600 | |||
Due to related parties: | ||||
Amounts due to related parties | 221,028 | 32,147 | ||
TB | ||||
Due to related parties: | ||||
Amounts due to related parties | ¥ 64,550 | $ 9,389 | ¥ 473,018 |
Related Party Transactions an_5
Related Party Transactions and Balances - Additional Information (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Related Party Transaction [Line Items] | ||||||
Due from related parties, current | ¥ 228,600 | $ 33,248 | ¥ 3,248,692 | |||
Interest rate percentage | 4.60% | 4.60% | ||||
Guarantees provided to the related parties | ¥ 0 | 0 | ||||
Steigenberger | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties, current | 225,000 | $ 32,725 | ¥ 225,000 | $ 34,582 | ||
Loan repayable period | 1 year | 1 year | ||||
Interest rate percentage | 6.00% | 6.00% | ||||
JYHM | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties, current | ¥ 3,600 | |||||
APAM | ||||||
Related Party Transaction [Line Items] | ||||||
Restricted cash | ¥ 70,000,000 | |||||
H K Beifu | ||||||
Related Party Transaction [Line Items] | ||||||
Restricted cash | ¥ 900,000,000 | ¥ 110,000,000 |
Related Party Transactions an_6
Related Party Transactions and Balances - Schedule of Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Loan to related parties | ¥ (4,300,000) | $ (625,409) | ¥ (3,500,000) | ¥ (150,000,000) | |
Yan Zhang | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (150,000,000) | ||||
Interest income from related party | 3,515,358 | 4,595,116 | |||
(Repayment to)/Advance from related party | 128,110,474 | 30,000,000 | |||
Ze Xin | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (4,300,000) | (625,409) | (3,500,000) | ||
Interest income from related party | 263,366 | 38,305 | 75,460 | ||
(Repayment to)/Advance from related party | 367,488 | 579,167 | |||
Franchise revenue from related parties | 44,763 | 6,511 | 232,766 | 152,284 | |
GTI | |||||
Related Party Transaction [Line Items] | |||||
(Repayment to)/Advance from related party | 1,717,539 | 249,806 | 9,730,276 | 17,309,623 | |
JYH | |||||
Related Party Transaction [Line Items] | |||||
(Repayment to)/Advance from related party | (14,200,539) | ||||
TB | |||||
Related Party Transaction [Line Items] | |||||
Franchise revenue from related parties | 389,583 | 56,662 | 400,639 | 540,827 | |
Advance from/(Repayment to) related party | 294,193 | 224,516 | |||
Bayshore | |||||
Related Party Transaction [Line Items] | |||||
(Repayment to)/Advance from related party | 8,671,250 | ||||
Rongcheng | |||||
Related Party Transaction [Line Items] | |||||
(Repayment to)/Advance from related party | 141,380 | (141,380) | |||
Napa | |||||
Related Party Transaction [Line Items] | |||||
Advance to Napa | 4,035,262 | (434,826) | |||
Shiquanmeiwei | |||||
Related Party Transaction [Line Items] | |||||
Advance to Napa | 3,600 | $ 524 | |||
Steigenberger | |||||
Related Party Transaction [Line Items] | |||||
Loan to related parties | (225,000) | ||||
JYHM | |||||
Related Party Transaction [Line Items] | |||||
Advance from/(Repayment to) related party | ¥ (221,028) | $ (32,147) | |||
519 | |||||
Related Party Transaction [Line Items] | |||||
Advance from/(Repayment to) related party | ¥ (4,100) | ¥ 4,100 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements (Details) - Dec. 31, 2018 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2019 | ¥ 82,142,137 | $ 11,947,078 |
2020 | 78,923,815 | 11,478,993 |
2021 | 75,246,421 | 10,944,138 |
2022 | 61,747,409 | 8,980,788 |
2023 | 54,551,591 | 7,934,200 |
Thereafter | 220,116,253 | 32,014,581 |
Total | ¥ 572,727,626 | $ 83,299,778 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2018 |
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, 2018 | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2019 | ¥ 43,846,815 | $ 6,377,255 |
2020 | 36,109,529 | 5,251,913 |
2021 | 33,746,012 | 4,908,154 |
2022 | 26,798,827 | 3,897,728 |
2023 | 24,107,631 | 3,506,310 |
Thereafter | 91,634,251 | 13,327,648 |
Total | ¥ 256,243,065 | $ 37,269,008 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earning Per Share (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income used in calculating earnings per share-basic and diluted | ¥ 394,104,841 | $ 57,320,172 | ¥ 285,400,182 | ¥ 265,973,599 |
Common Class A | ||||
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 62,860,578 | 62,860,578 | 48,635,252 | 48,635,252 |
Allocation of undistributed earnings — basic and diluted: | ||||
Allocation of undistributed earnings - basic and diluted | ¥ 249,863,114 | $ 36,341,083 | ¥ 151,944,981 | ¥ 141,602,409 |
Basic and diluted earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 3.97 | $ 0.58 | ¥ 3.12 | ¥ 2.91 |
Common Class B | ||||
Weighted average shares outstanding | ||||
Weighted average shares outstanding basic and diluted | 36,288,343 | 36,288,343 | 42,716,957 | 42,716,957 |
Allocation of undistributed earnings — basic and diluted: | ||||
Allocation of undistributed earnings - basic and diluted | ¥ 144,241,727 | $ 20,979,089 | ¥ 133,455,201 | ¥ 124,371,190 |
Basic and diluted earnings per share: | ||||
Basic and diluted earnings per share | (per share) | ¥ 3.97 | $ 0.58 | ¥ 3.12 | ¥ 2.91 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands, $ in Thousands | Mar. 11, 2019USD ($) | Jan. 22, 2019USD ($)$ / shares | Jan. 18, 2019USD ($)shares | Jan. 31, 2019USD ($)shares | Apr. 29, 2019 | Jan. 31, 2019HKD ($) | Jan. 18, 2019HKD ($) |
Subsequent Event [Line Items] | |||||||
Cash dividend of ordinary per share | $ / shares | $ 0.30 | ||||||
Cash dividend | $ 30,500 | ||||||
Zhejiang New Century Hotel Management Co [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of ownership | 4.95% | ||||||
Equity interest, ordinary shares | $ 29,200 | ||||||
China Gingko Education Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Equity method investment ownership percentage | 5.56% | 2.71% | 2.71% | 5.56% | |||
Equity interest, ordinary shares | shares | 27,776,000 | 13,560,000 | |||||
Equity interest | $ 2,500 | $ 19,600 | |||||
China Gingko Education Group [Member] | Initial Public Offering | |||||||
Subsequent Event [Line Items] | |||||||
Equity interest | $ 5,160 | $ 40,400 | |||||
Argyle Hotel Management Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Equity method investment ownership percentage | 60.00% | 60.00% | |||||
Urban Hotel Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Equity method investment ownership percentage | 70.00% |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Information - Condensed Balance Sheets (Details) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,264,025,785 | $ 183,844,925 | ¥ 161,963,665 |
Other current assets | 53,969,039 | 7,849,474 | 127,269,801 |
Total current assets | 2,450,516,163 | 356,412,794 | 1,485,425,522 |
Non-current assets: | |||
Other assets | 85,701,523 | 12,464,768 | 5,741,301 |
TOTAL ASSETS | 3,014,390,010 | 438,424,843 | 1,755,982,929 |
Current liabilities: | |||
Dividends payable | 39,691,103 | ||
Total liabilities | 1,151,261,579 | 167,444,052 | 1,023,377,568 |
Shareholders’ equity: | |||
Additional paid-in capital | 1,003,026,803 | 145,884,198 | 212,309,734 |
Retained earnings | 456,398,812 | 66,380,454 | 223,134,889 |
Accumulated other comprehensive (loss) income | 62,367,692 | 9,071,005 | (4,086,149) |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,854,749,384 | 269,762,110 | 732,245,241 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,014,390,010 | 438,424,843 | 1,755,982,929 |
Common Class A | |||
Shareholders’ equity: | |||
Ordinary shares, value | 217,421,867 | 31,622,699 | 160,189,926 |
Common Class B | |||
Shareholders’ equity: | |||
Ordinary shares, value | 115,534,210 | 16,803,754 | 140,696,841 |
Parent Company | |||
Current assets: | |||
Cash and cash equivalents | 721,573,493 | 104,948,512 | |
Dividends receivable | 39,691,103 | ||
Other current assets | 4,117,311 | 598,838 | |
Total current assets | 725,690,804 | 105,547,350 | 39,691,103 |
Non-current assets: | |||
Other assets | 6,875,561 | 1,000,009 | |
Investments in subsidiaries | 1,129,273,719 | 164,246,051 | 732,245,241 |
TOTAL ASSETS | 1,861,840,084 | 270,793,410 | 771,936,344 |
Current liabilities: | |||
Dividends payable | 39,691,103 | ||
Amounts due to subsidiaries | 7,090,700 | 1,031,300 | |
Total liabilities | 7,090,700 | 1,031,300 | 39,691,103 |
Shareholders’ equity: | |||
Additional paid-in capital | 1,003,026,803 | 145,884,198 | 212,309,734 |
Retained earnings | 456,398,812 | 66,380,454 | 223,134,889 |
Accumulated other comprehensive (loss) income | 62,367,692 | 9,071,005 | (4,086,149) |
Total GreenTree Hospitality Group Ltd. shareholders' equity | 1,854,749,384 | 269,762,110 | 732,245,241 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,861,840,084 | 270,793,410 | 771,936,344 |
Parent Company | Common Class A | |||
Shareholders’ equity: | |||
Ordinary shares, value | 217,421,867 | 31,622,699 | 160,189,926 |
Parent Company | Common Class B | |||
Shareholders’ equity: | |||
Ordinary shares, value | ¥ 115,534,210 | $ 16,803,754 | ¥ 140,696,841 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Information - Condensed Balance Sheets Parenthetical (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 60,000,000 | ||
Common stock, issued | 66,789,300 | 48,635,252 | ||
Common stock, outstanding | 66,789,300 | 48,635,252 | 48,635,252 | 48,635,252 |
Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 200,000,000 | ||
Common stock, issued | 34,762,909 | 42,716,957 | ||
Common stock, outstanding | 34,762,909 | 42,716,957 | 42,716,957 | 42,716,957 |
Parent Company | Common Class A | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 400,000,000 | 60,000,000 | ||
Common stock, issued | 66,789,300 | 48,635,252 | ||
Common stock, outstanding | 66,789,300 | 48,635,252 | ||
Parent Company | Common Class B | ||||
Common stock, par value | $ 0.50 | $ 0.50 | ||
Common stock, authorized | 100,000,000 | 200,000,000 | ||
Common stock, issued | 34,762,909 | 42,716,957 | ||
Common stock, outstanding | 34,762,909 | 42,716,957 |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Information - Condensed Statements of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
General and administrative expenses | ¥ (95,261,152) | $ (13,855,159) | ¥ (121,657,492) | ¥ (77,932,944) |
Share of loss in equity investees, net of tax | (8,300,584) | (1,207,270) | (899,584) | (10,464,579) |
Income before income taxes and share of loss of equity investees | 562,100,340 | 81,754,104 | 472,602,371 | 360,188,748 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | 66,453,841 | 9,665,310 | 1,317,020 | 1,875,003 |
Comprehensive income attributable to ordinary shareholders | 460,558,682 | 66,985,482 | 286,717,202 | 267,848,602 |
Parent Company | ||||
General and administrative expenses | (1,307,753) | (190,205) | ||
Interest income | 13,785,679 | 2,005,044 | ||
Share of loss in equity investees, net of tax | 381,626,915 | 55,505,333 | 285,400,182 | 265,973,599 |
Income before income taxes and share of loss of equity investees | 394,104,841 | 57,320,172 | 285,400,182 | 265,973,599 |
Other comprehensive income, net of tax - Foreign currency translation adjustments | 66,453,841 | 9,665,310 | 1,317,020 | 1,875,003 |
Comprehensive income attributable to ordinary shareholders | ¥ 460,558,682 | $ 66,985,482 | ¥ 286,717,202 | ¥ 267,848,602 |
Parent Company Condensed Fina_6
Parent Company Condensed Financial Information - Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Operating activities: | ||||
Net income (loss) | ¥ 393,613,911 | $ 57,248,769 | ¥ 285,051,632 | ¥ 265,800,559 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 16,108,950 | 2,342,950 | 38,048,000 | |
Changes in operating assets and liabilities: | ||||
Other current assets | (13,933,400) | (2,026,527) | (5,892,325) | (10,018,050) |
Share of loss in equity method investments | 8,300,584 | 1,207,270 | 899,584 | 10,464,579 |
Net cash provided by operating activities | 554,949,643 | 80,714,078 | 476,665,920 | 443,556,589 |
Investing activities: | ||||
Advance for acquisitions | (18,121,700) | (2,635,692) | ||
Net cash generated from (used in) investing activities | (181,756,342) | (26,435,364) | (744,856,135) | 73,997,998 |
Financing activities: | ||||
Proceeds from issuance of Class A ordinary shares | 837,505,007 | 121,810,051 | ||
Payment for initial public offering costs | (30,827,578) | (4,483,685) | ||
Distribution to the shareholders (Note 1) | (200,532,021) | (29,166,173) | (579,042,699) | (17,956,030) |
Net cash (used in) generated from financing activities | 662,845,408 | 96,406,866 | (465,161,217) | (132,956,030) |
Effect of exchange rate changes on cash and cash equivalents | 66,023,411 | 9,602,707 | (1,467,838) | 6,327,858 |
Net increase (decrease) in cash and cash equivalents | 1,102,062,120 | 160,288,287 | (734,819,270) | 390,926,415 |
Cash and cash equivalents at the beginning of the year | 161,963,665 | 23,556,638 | 896,782,935 | 505,856,520 |
Cash and cash equivalents at the end of the year | 1,264,025,785 | 183,844,925 | 161,963,665 | 896,782,935 |
Parent Company | ||||
Operating activities: | ||||
Net income (loss) | 394,104,841 | 57,320,172 | 285,400,182 | 265,973,599 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 1,307,753 | 190,205 | ||
Changes in operating assets and liabilities: | ||||
Other current assets | (4,117,311) | (598,838) | ||
Amounts due to subsidiaries | 7,090,700 | 1,031,300 | ||
Share of loss in equity method investments | (381,626,915) | (55,505,333) | (285,400,182) | (265,973,599) |
Net cash provided by operating activities | 16,759,068 | 2,437,506 | ||
Investing activities: | ||||
Advance for acquisitions | (6,875,561) | (1,000,009) | ||
Net cash generated from (used in) investing activities | (6,875,561) | (1,000,009) | ||
Financing activities: | ||||
Payment for initial public offering costs | (30,827,578) | (4,483,685) | ||
Distribution to the shareholders (Note 1) | (200,532,021) | (29,166,173) | (579,042,699) | (17,956,030) |
Dividends from subsidiaries | 39,691,103 | 5,772,832 | ¥ 579,042,699 | ¥ 17,956,030 |
Net cash (used in) generated from financing activities | 645,836,511 | 93,933,025 | ||
Effect of exchange rate changes on cash and cash equivalents | 65,853,475 | 9,577,990 | ||
Net increase (decrease) in cash and cash equivalents | 721,573,493 | 104,948,512 | ||
Cash and cash equivalents at the end of the year | 721,573,493 | 104,948,512 | ||
Parent Company | Common Class A | ||||
Financing activities: | ||||
Proceeds from issuance of Class A ordinary shares | ¥ 837,505,007 | $ 121,810,051 |