v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

25. 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 is 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:

 

   Years 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)
   Years Ended December 31, 2024 
   Hotel business   Restaurant business   Consolidated 
   RMB   RMB   RMB 
Revenue from external customers   1,066,502,811    276,937,385    1,343,440,196 
Intersegment revenue   207,413    1,500,428    1,707,841 
    1,066,710,224    278,437,813    1,345,148,037 
Reconciliation of revenue:               
Elimination of intersegment revenues             (1,707,841)
Total revenues             1,343,440,196 
                
Less:               
Total operating costs and expenses*   (851,935,422)   (391,435,679)   (1,243,371,101)
Segment income (loss) from operations   214,774,802    (112,997,866)   101,776,936 
                
Reconciliation of income (loss) from operations:               
Other operating income   56,818,174    3,329,384    60,147,558 
Elimination of intersegment gross margin             
-
 
Income from operations             161,924,494 
                
Reconciliation of net (loss) income               
Other segment income (expense) **   39,741,684    71,217    39,812,901 
Income tax benefit (expense)   (107,223,277)   18,496,308    (88,726,969)
Share of loss in equity method investments, net of tax   (1,165,474)   
-
    (1,165,474)
Segment net (loss) income   202,945,909    (91,100,957)   111,844,952 
Elimination of intersegment income tax impact             (4,530,600)
Net income             107,314,352 
                
Other segment disclosures               
Interest revenue   39,982,179    89,889    40,072,068 
Interest expense   (6,310,152)   
-
    (6,310,152)
   Years Ended December 31, 2025 
   Hotel business   Restaurant business   Consolidated   Consolidated 
   RMB   RMB   RMB   USD 
Revenue from external customers   912,106,439    185,246,954    1,097,353,393    156,919,448 
Intersegment revenue   241,982    1,002,001    1,243,983    177,887 
    912,348,421    186,248,955    1,098,597,376    157,097,335 
Reconciliation of revenue:                    
Elimination of intersegment revenues             (1,243,983)   (177,887)
Total revenues             1,097,353,393    156,919,448 
                     
Less:                    
Total operating costs and expenses*   (843,889,761)   (275,423,055)   (1,119,312,816)   (160,059,604)
Segment income (loss) from operations   68,458,660    (89,174,100)   (20,715,440)   (2,962,269)
                     
Reconciliation of income (loss) from operations:                    
Other operating income (loss)   76,874,333    497,391    77,371,724    11,064,009 
Elimination of intersegment gross margin             
-
    
-
 
Income from operations             56,656,284    8,101,740 
                     
Reconciliation of net (loss) income                    
Other segment income (expense) **   149,041,185    (623,833)   148,417,352    21,223,399 
Income tax benefit (expense)   (48,997,177)   3,117,155    (45,880,022)   (6,560,756)
Share of income in equity method investments, net of tax   4,163,620    
-
    4,163,620    595,390 
Segment net (loss) income   249,540,621    (86,183,387)   163,357,234    23,359,773 
Elimination of intersegment income tax impact             
-
    
-
 
Net income             163,357,234    23,359,773 
                     
Other segment disclosures                    
Interest revenue   37,684,201    122,774    37,806,975    5,406,326 
Interest expense   (7,644,628)   
-
    (7,644,628)   (1,093,167)

 

*Total operating costs and expenses (i.e. the significant segment expenses) include hotel operating costs, selling expenses, general and administrative expenses, other operating expenses, other general expenses and impairment loss of goodwill and intangible asset with indefinite life.

 

**Other segment income (expense) includes interest income, interest expense, gains (losses and impairment) on equity securities held, and other income, net.

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

 

   Years Ended December 31, 
   2023   2024   2025   2025 
   RMB   RMB   RMB   USD 
Revenue:                
Leased-and-operated hotels   490,924,060    437,521,898    381,361,912    54,534,028 
Franchised-and-managed hotels   696,321,236    625,072,856    528,472,018    75,570,493 
Wholesale and others   4,660,777    4,115,470    2,514,491    359,567 
Hotel business subtotal   1,191,906,073    1,066,710,224    912,348,421    130,464,088 
Revenue:                    
Leased-and-operated restaurants   296,890,282    159,118,741    106,812,441    15,273,976 
Franchised-and-managed restaurants   8,923,712    10,287,456    5,979,850    855,107 
Wholesale and others   135,821,972    109,031,616    73,456,665    10,504,163 
Restaurant business subtotal   441,635,966    278,437,813    186,248,956    26,633,246 
Inter-segment*   (6,284,350)   (1,707,841)   (1,243,984)   (177,886)
Total revenue   1,627,257,689    1,343,440,196    1,097,353,393    156,919,448 

 

*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.