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 GreenTree's third quarter 2021 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 is being recorded. I would now like to turn the meeting over to your host for today's call, Mr. Rene Vungestein of Christensen, GreenTree's investor relations firm. Please proceed, Rene.

Thank you, Matt. Hello, everyone, and thank you for joining us. 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 Green3 are Mr. Alex Hsu, Chairman and Chief Executive Officer, Ms. Celina Yang, Chief Financial Officer, Ms. Megan Huang, Vice President of Sales and Marketing, and Mr. Nicky Jang, IR Director. Mr. Hsu will present the company's Q3 2021 performance overview, followed by Ms. Huang, 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. The forward-looking statements can be identified by terminology such as may, will, expects, anticipates, aims, future, intends, plans, believes, 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 a 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. Further information regarding these and other risks, uncertainties or factors is included in the company's findings with the US 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 Xu. Mr. Xu, please go ahead.

Thanks, Rene. Thanks, everyone, for joining our call today. Before we begin, let me mention that because of the impact of the COVID-19 on our operations in Q3 2020, we will occasionally during this call provide Q3 2019 numbers where we believe this provides a more meaningful comparison Now let's turn to slide five of the presentation. We are glad to report a satisfactory performance in third quarter, given the resurgence of COVID in various parts of China throughout the quarter. Compared with Q3 2020, raw power decreased 1.4% to 118 RMB, Total revenues increased 16.3% to 310.4 million RMBs. Income from operations decreased 45.6% to 54.9 million RMBs with a margin of 17.7%. Net income decreased 61.5% to 33 million RMBs with a margin of 10.6%. Non-GAAP adjusted EBITDA decreased 33.5% to 73.7 million RMB with a margin of 23.7%. And earnings per share decreased 59.3% to 0.33 RMB. Slide 6 provides more detailed numbers for total revenues, income from operations, net income, and adjusted EBITDA. Please turn to slide seven. Operating performance was similarly impacted compared with the last quarter. Our occupancy rate on raw power recovered to 84.3% and 79.1%, respectively, after 2019 levels, a better performance than the industry average. Slide eight shows historical weekly raw power performance and the comparison with 2019. During the third quarter, raw power decreased in July due to the worsened COVID-19 situations in Nanjing cities and Jiangsu province. Fortunately, by the middle of September, raw power rebounded quickly to around 100% of its 2019 level. but due to the resurgence of outbreak of cases in different cities nationwide, it dropped to about 81.3% of its 2019 levels during the first week of November, but then recovered gradually, reaching 98.5% of its 2019 level in the last week of December. with the help of a resilient business model, well-segmented and robust brand portfolio, and the loyalty of our members. As in the last few quarters, the impact on our occupancy and raw power has always been lesser than the average of other hotels in China. Now, starting with slide 10, let's talk about strategy and execution. First, We are further expanding our hotel network in the mid to upscale segment and into the tier three and the lower cities. And the second, we continue to optimize our management and operating system constantly. Now, let's look at slide 11. We have been continuously growing our mid to upscale and luxury segment over the past few years. By the end of the third quarter, hotels in this segment had increased to 11.2% of our total portfolio, compared with only 2.2% in 2017. We plan to open more hotels in these segments this year. Please turn to slide 12. Over the past four years, The vast majority of our new hotel openings have been China's thriving Tier 3 and the lower cities, where the pace of recovery at our hotels has been faster than in other cities in most quarters. As we continue to execute our strategic plan, 68.7% of all new hotels in our current pipeline are located in such cities, and will further capitalize on the substantial opportunities in such locations. We constantly strive to optimize our management and operating system, including design, technology features, sales and marketing programs, to improve hotel quality and operating performance. Our ongoing efforts in researching and testing property improvement materials allows us to lower our construction costs that also ensure hotel quality and excellent customer experience. This has been an extraordinarily tough period, but it is one that has been shared across industry. As for ourselves, we feel certain that we'll get through the current pandemic wave thanks to our business model, to experience that our team and franchisee have accumulated while combating COVID. Now, let me turn the call over to Megan, who will summarize our business operations in third quarter. Megan, please go ahead.