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

Hello, ladies and gentlemen. Thank you for standing by for GreenTree's third quarter 2023 financial results release. At this time, all participants are in 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 Gisten of Christensen, GreenTree's investor relations firm. Please proceed, Rene.

Thank you, MJ. Hello, everyone, and thank you for joining us. Green Freeze 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 through the same IR website. On the call from Green Tree 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 Ms. Ellen Zhao, Financial Director, stepping in for Mr. Bill Zhou, who is not available today. Mr. Hsu will present the company's performance overview for the third quarter of 2023. followed by Ms. Wang and Ms. Zhao, who will discuss business operations, and then Ms. Yang and Ms. Zhao will 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, 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 the company and its industry, are forward-looking statements. Such statements are based upon management's current expectation 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 filing 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 Xu. Mr. Xu, please go ahead.

Thanks, René. And hello, everyone, and thank you for joining us today. We had a good third quarter with a strong recovery in our hotel business year-over-year as tourism and business travel continued to rebound. Rail power increased 30.5% year-over-year, reaching as high as 110%. of its third quarter of 2019 levels in July and August, with a surge in the number of tourists during the summer vacation. The pace of recovery of raw power slowed slightly in September, but remained stable. We will continue to implement our long-term strategic development plan, focused on helping franchisees to maintain high-quality service and operation, and expand our hotel network and the sales channel, provide a stable operating profitability, and maintain long-term stable growth. Please turn to slide five. Compared with the third quarter of 2022, hotel raw power was 156 RMB, up 30.5 percent, And the restaurant ADS, that is average daily sales per store, was 6,548 RMB, up 7.4 percent. Total revenues were 460.9 million RMB, up 15.3 percent. The increase was partially due to the recovery in raw power. The increase in the number of hotels and the increase in the ADS, offset by the closure of 85 restaurants over the past 12 months. Income from operations increased to 137.8 million RMB with a margin of 29.9%. Net income was 117.4 million RMB with a margin of 25.5%. Adjusted EBITDA, that's non-GAAP, was 173.4 million RMB, that's up 215%, with a margin of 37.6%. Core net income, that's non-GAAP, was 127.2 million RMB, with a margin of 27.6%. Cash provided by operating activities was 154.8 million RMB, Slide six shows detailed numbers for hotel, total revenues, income from operations, net incomes, and adjusted EBITDA. On slide seven, operating performance was great. Raw power was 156 RMB. At the bottom of the slide, you can see the weekly rural power performance in the third quarter of 2023 compared with 2019. Rural power gradually recovered to more than 110% of its pre-pandemic levels in July and August, then slowed down gradually in early September. During the mid-autumn festivals and the National Day, we ushered in a new round of development and growth. Slide 8 shows the operating performance of restaurant with ADS continuing an upward trend and reaching the highest level in a long time. Now, starting with slide 10, we will review our strategic execution across our businesses. In our hotel business, We further expanded in the mid to upscale segment and increased our penetration in tier three and the lower cities in South China. As you can see on slide 11, we continue to grow our mid to upscale segment with 455 hotels. That is 10.9% of our total portfolio. at the end of the quarter up from only 50 in 2017. While the mid-scale segment remains the core of our hotel business with 70.8 percent, we continue our expansion into the higher-end segments. The economy segment remains stable at 18.3 percent. Please turn to slide 12. Over the past five years, Most of our new hotels have been in China's thriving Tier 3 and the lower cities. As we pursue greater penetration in Tier 3 and the lower cities, 73.7 percent of hotels in our current pipelines are in such cities, and we will further capitalize on the substantial opportunities in such locations. On slide 13, we continued to focus on increasing profitability in our restaurant business. We closed unprofitable stores, increased the proportion of franchised and managed restaurants, and expanded the number of street stores. On slide 14, during the third quarter of 2023, we closed 10 restaurants in areas of decreasing economic activities helping improving the profitability. On slide 15, you can see the growth in the proportion of our franchise and managed restaurants since the acquisition of Da Nang Dumplings and Bellagio during the first quarter of 2023. We opened six F&M restaurants in the third quarter of 2023. Slide 16 shows the restaurant breakdowns by location. Most of our restaurants are currently in shopping malls. However, we believe there is a substantial potential for street stores, and we intend to grow this segment. Now, let me turn the call over to Megan under Ellen Zhao. Megan.