v3.25.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING
28. SEGMENT REPORTING

 

In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM has been identified as the CEO of the Group. The Group reports its financial results in two operating segments: (1) Hotel Business, which consists of leased-and-operated hotels and franchised-and-managed hotels operating under the hotel related brand, and (2) Restaurant Business, which consists of leased-and-operated restaurants and franchised-and-managed restaurants operating under the brands of Da Niang and Bellagio. The reportable segments align with the manner in which the CODM currently receives and uses financial information to allocate resource and evaluate the performance of the segments.

 

The Group derives the results of the segments directly from its internal management reporting system. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the consolidated financial statements. Inter-segment sales are accounted for as if the sales were to third parties, that is, at current market prices. The CODM compares actual segment income (loss) from operations and segment net income (loss) with historical results on a regular basis when assessing the operating results and making resource decisions to improve profitability, and to develop strategic initiatives and capital allocation priorities

 

The Group’s CODM does not evaluate its operating segments using discrete asset information. There is no asset information that are supplemental to those disclosed in these consolidated financial statements, that are regularly provided to the CODM.

The following tables provide information about reported segment revenues, and measures of a segment’s profit or loss, together with relevant reconciliations and other required disclosures:

 

   Year Ended December 31, 2022 
   Hotel business   Restaurant business   Consolidated 
   RMB   RMB   RMB 
Revenue from external customers   936,801,282    532,272,993    1,469,074,275 
Intersegment revenue   
—
    1,514,259    1,514,259 
    936,801,282    533,787,252    1,470,588,534 
Reconciliation of revenue:               
Elimination of intersegment revenues             (1,514,259)
Total revenues             1,469,074,275 
                
Less:               
Total operating costs and expenses *   (1,399,392,154)   (580,020,769)   (1,979,412,923)
Segment income (loss) from operations   (462,590,872)   (46,233,517)   (508,824,389)
                
Reconciliation of income (loss) from operations:               
Other operating income   19,448,889    4,544,259    23,993,148 
Elimination of intersegment gross margin             (1,698,589)
Income from operations             (486,529,830)
                
Reconciliation of net (loss) income               
Other segment income (expense)**   (15,918,607)   (1,715,618)   (17,634,225)
Income tax benefit (expense)   45,592,418    (1,944,162)   43,648,256 
Share of loss in equity method investments, net of tax   (1,598,301)   
—
    (1,598,301)
Segment net (loss) income   (415,066,473)   (45,349,038)   (460,415,511)
Elimination of intersegment income tax impact             424,647 
Net Loss             (461,689,453)
                
Other segment disclosures               
Interest revenue   47,383,941    721,184    48,105,125 
Interest expense   (25,375,848)   (2,611,994)   (27,987,842)
    Year Ended December 31, 2023  
    Hotel business     Restaurant business     Consolidated  
    RMB     RMB     RMB  
Revenue from external customers     1,191,906,073       435,351,616       1,627,257,689  
Intersegment revenue     —       6,284,350       6,284,350  
      1,191,906,073       441,635,966       1,633,542,039  
Reconciliation of revenue:                        
Elimination of intersegment revenues                     (6,284,350 )
Total revenues                     1,627,257,689  
                         
Less:                        
Total operating costs and expenses*     (881,148,053 )     (448,102,058 )     (1,329,250,111 )
Segment income (loss) from operations     310,758,020       (6,466,092 )     304,291,928  
                         
Reconciliation of income (loss) from operations:                        
Other operating income     24,525,333       2,644,568       27,169,901  
Elimination of intersegment gross margin                     4,187,097  
Income from operations                     335,648,926  
                         
Reconciliation of net (loss) income                        
Other segment income (expense) **     44,832,395       (109,463 )     44,722,932  
Income tax benefit (expense)     (113,125,742 )     (4,279,739 )     (117,405,481 )
Share of loss in equity method investments, net of tax     (1,392,002 )     —       (1,392,002 )
Segment net (loss) income     265,598,004       (8,210,726 )     257,387,278  
Elimination of intersegment income tax impact                     (1,046,774 )
Net income                     260,527,601  
                         
Other segment disclosures                        
Interest revenue     41,240,610       130,552       41,371,162  
Interest expense     (13,706,157 )     (347,684 )     (14,053,841 )
   Year Ended December 31, 2024 
   Hotel business   Restaurant business   Consolidated   Consolidated 
   RMB   RMB   RMB   USD 
Revenue from external customers   1,066,502,811    276,937,385    1,343,440,196    184,050,552 
Intersegment revenue   207,413    1,500,428    1,707,841    233,973 
    1,066,710,224    278,437,813    1,345,148,037    184,284,525 
Reconciliation of revenue:                    
Elimination of intersegment revenues             (1,707,841)   (233,973)
Total revenues             1,343,440,196    184,050,552 
                     
Less:                    
Total operating costs and expenses*   (851,935,422)   (391,435,679)   (1,243,371,101)   (170,341,142)
Segment income (loss) from operations   214,774,802    (112,997,866)   101,776,936    13,943,384 
                     
Reconciliation of income (loss) from operations:                    
Other operating income   56,818,174    3,329,384    60,147,558    8,240,182 
Elimination of intersegment gross margin             
—
    
—
 
Income (loss) from operations             161,924,494    22,183,566 
                     
Reconciliation of net (loss) income                    
Other segment income (expense) **   39,741,684    71,217    39,812,901    5,454,346 
Income tax benefit (expense)   (107,223,277)   18,496,308    (88,726,969)   (12,155,545)
Share of loss in equity method investments, net of tax   (1,165,474)   
—
    (1,165,474)   (159,669)
Segment net (loss) income   202,945,909    (91,100,957)   111,844,952    15,322,698 
Elimination of intersegment income tax impact             (4,530,600)   (620,690)
Net income             107,314,352    14,702,008 
                     
Other segment disclosures                    
Interest revenue   39,982,179    89,889    40,072,068    5,489,851 
Interest expense   (6,310,152)   —    (6,310,152)   (864,487)

The following table presents the Group’s revenues disaggregated by segment and by types of products or services.

 

   Year Ended December 31, 
   2022   2023   2024   2024 
   RMB   RMB   RMB   USD 
Revenue:                
Leased-and-operated hotels   338,506,220    490,924,060    437,521,898    59,940,254 
Franchised-and-managed hotels   582,441,077    696,321,236    625,072,856    85,634,630 
Wholesale and others   15,853,985    4,660,777    4,115,470    563,818 
Hotel business subtotal   936,801,282    1,191,906,073    1,066,710,224    146,138,702 
Revenue:                    
Leased-and-operated restaurants   362,806,697    296,890,282    159,118,741    21,799,178 
Franchised-and-managed restaurants   6,022,291    8,923,712    10,287,456    1,409,376 
Wholesale and others   164,958,264    135,821,972    109,031,616    14,937,270 
Restaurant business subtotal   533,787,252    441,635,966    278,437,813    38,145,824 
Inter-segment*   (1,514,259)   (6,284,350)   (1,707,841)   (233,974)
Total revenue   1,469,074,275    1,627,257,689    1,343,440,196    184,050,552 

 

*The inter segment eliminations mainly consist of labor services related to restaurant staff and prepared meals and frozen foods provided by restaurant business segment to hotel business segment.

 

The Group primarily generates its revenues from customers in the PRC. Accordingly, no geographical segments are presented. Substantially all of the Group’s long-lived assets are located in the PRC.