GreenTree Q2 Revenue Falls 18.7% but Core Profit Rises; Board Authorizes $5M Buyback
GHG is trading near its 52-week low of $1.08 (1.9% above the low).
Summary
GreenTree reported an 18.7% revenue decline in Q2 2026 but held operating income nearly flat through cost cuts, while core net income rose 4.4%. The Board authorized a US$5 million buyback.
Key Events · Earnings and Guidance · GHG
-
Q2 Revenue Falls 18.7%
Total revenues declined to RMB235.1 million (US$34.7 million) from RMB289.3 million a year ago, driven by a 9.1% drop in RevPAR to RMB103 and net closure of 13 leased-and-operated hotels.
-
Net Income Plunges on Prior-Year One-Times
Net income fell to RMB21.3 million from RMB160.0 million in Q2 2025, but the prior-year figure included one-time gains from the Argyle divestment and securities fair-value changes. Core net income (non-GAAP) rose 4.4% to RMB47.2 million.
-
Operating Margin Holds at 20.5%
Income from operations was RMB48.2 million, nearly flat versus RMB49.2 million a year ago, as operating costs fell 20.0% and G&A expenses dropped 35.0% — cost discipline offsetting the revenue decline.
-
US$5M Share Repurchase Authorized
The Board approved a two-year program to repurchase up to US$5 million of Class A ordinary shares through open market or negotiated transactions, effective immediately.
Analysis · GHG · Real Estate & Construction
GreenTree's Q2 results show a sharp revenue decline of 18.7% to RMB235.1 million, driven by a 9.1% drop in RevPAR and net hotel closures. Net income collapsed from RMB160.0 million to RMB21.3 million, but that prior-year figure was inflated by one-time gains from the Argyle divestment and securities fair-value changes. Core net income (non-GAAP) actually rose 4.4% to RMB47.2 million, and operating income held nearly flat at RMB48.2 million despite the revenue drop, reflecting aggressive cost cutting. The Board also authorized a US$5 million share repurchase program, a modest but notable capital-return signal for a company trading near its 52-week low. The company maintained its full-year hotel revenue guidance of a 10-15% decline, suggesting management sees no near-term recovery in Chinese hospitality demand.
How filings like this one have moved
In the 30 days to Aug 25, 2026, 29.6% of the 2856 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.04%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, GHG was trading at $1.10 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $111M. The 52-week trading range was $1.08 to $2.57. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.