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

Hello, ladies and gentlemen, and thank you for standing by for Green Tree's fourth quarter and full year 2020 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Mr. Rene van Goostein of Christensen Green Tree's investor relations firm. Please proceed, Rene.

Thank you. Hello, everyone. Thank you. Green Tree's 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 Shug, Chairman and Chief Executive Officer, Ms. Celina Yang, Chief Financial Officer, and Mr. Nicky Jang, IR Manager. Ms. Megan Huang, Vice President of Sales and Marketing, is attending an industry-wide conference and is not able to join our call today. Mr. Xu will present the company's Q4 and full year 2020 performance overview, followed by Ms. Yang, who will discuss business operations, financials, and guidance. They will be available to answer your questions during the Q&A sessions, which will follow. 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 terminology 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 risk 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. Further 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 statement 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 2020 Fourth Quarter and the Four-Year Earnest Call today. In this report, we will highlight our Q4 and the Four-Year performance, followed by our strategic focus in 2021. Then we will go into the details of our operation and the financial performance in Q4 and the full year of 2020. Please turn to slide five. We were glad to see the robust recovery continue in the fourth quarter. Compared with the Q3 2020, raw power increased 4.1% to 124.4 RMB. Total revenues increased 8.6% to 289.8 million RMB. Income from operations increased 17.4% to 118.5 million RMB, with a margin of 40.9%. Non-GAAP adjusted EBITDA increased 17.8% to 130.6 million RMB, with a margin of 45.1%. And the non-GAAP core net income increased 18.3% to 109.3 million RMB with a margin of 37.7%. While raw power was slightly lower than in the fourth quarter of 2019, income from operations adjusted EBITDA and the core net income was substantially higher than in the Q4 2019. Let's take a look at slide six. Here, you can see the considerable progress we have made since the pandemic hit our business back in January 2020. Total revenues, income from operations, adjusted EBITDA, and the non-GAAP core net income all increased for three consecutive quarters from the lows in Q1 with consistently improving margins. Let's turn to slide seven. The fourth quarter saw a sustained recovery in occupancy rate, ADR, and RARPAR. We outperformed the industry by leveraging our strategic advantages, including our expansive footprint in Tier 3 and the lower cities, and our industry-leading member loyalty program, as well as the hard work of our franchisees and staff. Slide 8 shows our occupancy rate and the raw power over the past 15 months. Due to the resurgence of the COVID-19 in several provinces and cities, such as Hebei, Shanghai, and Beijing, our occupancy rate declined in Q4 2020 and in January 2021. As you can see, occupancy rate was at its lowest during the Chinese Spring Festival due to the government's stay local policy. However, it rebounded quickly, especially after March 16, when people could travel more freely in low-risk zones. With the rollout of the COVID-19 vaccines, most travel restrictions have been lifted. According to the official microblog of the Ministry of Culture and Tourism, the calm sweeping holiday on April 5th 2021 saw 102 million domestic tourists. That represents a year-over-year growth of 144.6% and 94.5% of the number of domestic tourists in 2019. By early April, our occupancy rate had recovered to 77.7%. and the VRAR PAR recovered to 92.7% of the 2019 levels. The key takeaway is that by the end of 2020, Green Tree proved to be more resilient and still performed better. Please turn to slide 10 to begin in the discussion of our strategic focus. In 2021, Our strategic planning focuses on two key components, hotel and expansion, and the franchisee support. Expansion targets strategic locations, tier three and smaller cities, and the mid to upscale market segment. And for our franchisees, in 2021, we are expanding our plan to renovate over 760 existing hotels in the following years, which should significantly increase our raw power. We'll also continue to improve our direct sales channels and members' support, and continue our investment in the IT and data infrastructure. Let's take a look at slide 11. In Q4 2020, we accelerated our expansion into the middle and higher end markets in Central China, Southeast China, and the Southwest China. During the first quarter of 2021, we opened several L&O hotels in tier one and two cities in these regions, including Chengdu and Wuhan, all well located around transportation hubs, central business districts, or government centers. By showcasing our brand and operating standards, we believe these hotels will help us to attract more high-quality franchisees, further accelerating our growth. Slide 12 highlights our strong presence in China's thriving tier 3 and lower cities. This not by chance, but by design. Over the past four years, the vast majority of our new hotel openings have been in Tier 3 and the lower cities. And 69.8% of all hotels in our current development pipelines are located in such cities. As a testament to the soundness of this strategy, during the pandemic, the pace of recovery at our hotels in Tier 3 and the lower cities was consistently faster than in other cities until the end of the Q4 when business recovery in the Tier 2 cities accelerated. The combination of our existing footprint and our strong performance in these cities gave us a real competitive advantage to capture future opportunities in China's forming hospitality industry. Now, please turn to slide 13. We have been consistently growing our high-end segment over the past few years. And at the end of 2020, hotels in this segment represented 21.2% of our total portfolio. compared to only 5.2% in 2017. This year, we plan to open more hotels in the mid to upscale and luxury segment. In 2021, we also expand our ongoing hotel upgrade program to renovate 760 hotels, which have been in operation for more than seven years. On slide 14, you get a summary of the marketing support which we provide to our franchisees. The same slide also shows the impressive growth in both of our individual and corporate membership programs, which contributed most of our 92.2% of all direct sales in 2020. In addition to the benefits which we provide, our members also receive benefits from our business alliances, which in turn help us to attract more members. In summary, despite the many unprecedented challenges brought upon us by COVID-19, the company delivered a robust Q4 with above average sequential improvement in operating and the financial matrix across the hospitality industry. I am extremely grateful for the achievements of our teams. I cannot thank enough of the smart government policies, strong local government and community support. I cannot thank enough all of our employees, franchisees and our guests and our investors for their support and dedication. Thanks to our resilient business model, we are able to weather an extremely difficult year in the travel industry and perform well above the industry benchmark. When considering our well-segmented and robust brand portfolio, the loyalty of our members, and our strong balance sheet, we are well positioned to capitalize on opportunities and create long-term, and sustainable growth for our shareholders in 2021 and beyond. I will now pass the call over to Selena, who will summarize our business operations and financial for the fourth quarter. Selena, please go ahead.