Victor Lee's questions to GreenTree Hospitality Group Ltd (GHG) leadership • Q3 2024
Question
Victor Lee from an unknown firm questioned the company's dividend policy going forward, given the lower-than-expected Q3 performance, and asked for an update on the progress and timeline for improving the stock's liquidity.
Answer
Executive Alex Xu affirmed that the company's dividend policy will continue. He clarified that the Q3 net income drop was significantly impacted by a non-cash RMB 33 million foreign exchange loss and an RMB 11 million bad debt provision, and that he expects operating income to improve. Regarding liquidity, Mr. Xu confirmed the company is proceeding with a reorganization to merge the parent company with GHG. This will result in parent company shareholders becoming direct GHG shareholders, which is expected to increase public float and boost liquidity.