GreenTree Hospitality Group Ltd. American depositary shares, each representing one Class A ordinary share

Good day and welcome to the Green Tree Hospitality Group LTD's first quarter 2020 financial results release conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. And to withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Rene Vangestein of Christensen Green Trees Investor Relations Firm. Please go ahead, sir.

Thank you, Chuck. Hello, everyone, and thank you for joining us. Green Trees earnings release was distributed earlier today and is available on our IR website at ir.998.com as well as on PR Newswire services. As a reminder, we also posted a PowerPoint presentation that accompanies our comments to the same IR website. On the call from Green Tree are Mr. Alex Xu, Chairman and Chief Executive Officer, Ms. Selina Yang, Chief Financial Officer, Ms. Megan Huang, Director of IT Department, and Mr. Nicky Zhang, our IR Manager. Mr. Xu will present the company's first quarter 2020 performance overview, followed by Ms. Wang, who will discuss business operations, and Ms. Yang will then discuss financials and guidance. They will be available to answer your questions during the Q&A session, which follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminologies such as may, will, expect, anticipate, aims, future, intents, plans, beliefs, estimates, continue, target, is or are likely to, going forward, confident, outlook, and similar statements. Any statements that are not historical facts, including statements about the company and its industry, are forward-looking statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known and unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. You should not place undue reliance on these forward-looking statements. Future information regarding these and other risks, uncertainties, or factors is included in the company's filings with the U.S. Securities and Exchange Commission. All information provided, including the forward-looking statements made during this conference call, are current as of today's date. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under applicable law. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Alex Hsu. Mr. Hsu, please go ahead.

Thank you, René. And thanks, everyone, for joining our first quarter earning call today. Let's start with slide five. In the first quarter, our operating performance was severely impacted by COVID-19. Our blended ADR decreased 7.8% year-over-year to 150 RMB. Our occupancy rate dropped to 47.3%. and the raw power decreased 44.1% to 71 RMB. Nonetheless, we continued to expand our market presence across China. During the first quarter, we opened 62 hotels, mainly in the first part of January 2020, and we ended the quarter with 1,025 hotels in our pipeline. That's up 113.1% year over year. By the end of the quarter, we had grown our geographic coverage to 342 cities across China, with 3,998 hotels in operation, up 41.3% over the prior year. Total revenues were 157.4 million RMB, a 33.1% decrease compared to the first quarter of 2019. Gross profit decreased 56.4% to 67.6 million RMB. Non-GAAP adjusted EBITDA decreased 64.5% to 47.6 million RMB. And the core net income per ADS, this basic undiluted non-GAAP, decreased 70.3% to 0.27 RMB. Let's now turn to slide seven for an update on the impact of COVID-19. Thanks to the government's efforts, The outbreak has largely come under control in China. Inevitably, our operating performance declined due to the lockdown of a number of cities, business closures, and the travel restrictions imposed by governments around China. However, Green Tree's overall performance was better than the average performance across the hospitality industry in China. due to the strong dedication and hard work of our staff, franchisees, and partners in the food and beverages business, as well as our strong positioning in tier three and the smaller cities. Now please turn to slide eight. The COVID-19 outbreak created new needs, which together with our franchisees, Green Tree answered immediately. We responded promptly to the government's call and provided rooms to house medical staff, volunteers, and travelers that needed to be quarantined and stayed, anticipating the resumption of the business. We worked with our corporate clients to provide the quarantine rooms for the workers who were returning to work. We provided waivers and other meaningful financial support to our franchisees. And we implemented the new precautionary measures to reinforce our already stringent health, safety, and hygiene standards and protocols. With these assistance from Green Tree, our franchisee have gradually managed to resume business operations, and as a result, our occupancy rate has rebounded and exceeded 65% on average in the second half of May. That's from a low of 21.5% at the end of January. And since March 9th, our individual or corporate members have accounted for more than 80% of all of our guests. Despite these encouraging trends, we expect the revenues for our second quarter to be down 18 to 23% year over year. I cannot thank enough all of our employees, franchisees, and guests, as well as the medical professionals, police, firefighters, and community leaders for their support and dedication in helping us resume our business rapidly. Despite these extremely challenging times, We are well positioned to deliver our multiple missions. That is to serve our guests, to support our franchisees and employees, and to create long-term and sustainable growth for our shareholders. I will now pass the call over to Megan Huang, who is also in charge of our sales marketing. Megan, please go ahead.