意见反馈 手机随时随地看行情

公司公告

*ST东海B:2017年半年度财务报告及财务报表(英文版)2017-08-19  

						Section X Financial Report

          HAINAN DADONGHAI TOURISM CENTER
          (HOLDINGS) CO., LTD

              Financial Report and Financial Statement



              Semi-Annual 2017
HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO.,
                    LTD

           Financial Report and Financial Statement
                            (Jan. 1, 2017- Jun. 30, 2017)




                             Content                          Page


   I.    Financial Statement


         Balance Sheet                                                1-2


         Profit Statement                                              3


         Statement of Cash Flow                                        4


         Statement of Changes in Owners’ Equity                      5-6


   II.   Notes to Financial Statement                                1-48
                           HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                              Balance Sheet
                                              June 30, 2017
                                       (Expressed in Renminbi unless otherwise stated)
                              Assets                              Note V      Ending balance      Beginning balance

Current assets:

Monetary funds                                                       (I)         10,108,175.91        27,210,248.01

Financial assets measured at fair value through rofit or
loss for the current period

Derivative financial assets

Notes receivable

Accounts receivable                                                 (II)            337,187.05           690,444.72

Prepayments                                                         (III)            38,660.36            58,783.23

Interests receivable

Dividends receivable

Other receivables                                                  (IV)             316,384.24           174,103.52

Inventories                                                         (V)             253,215.05           219,179.72

Assets classified as held for sale

Non-current assets maturing within one year                        (VI)             292,184.72           584,369.42

Other current assets                                               (VII)         11,020,867.76          1,876,449.22

Total current assets                                                             22,366,675.09        30,813,577.84

Non-current assets:

Available-for-sale financial assets                                (VIII)

Held-to-maturity investments

Long-term receivables

Long-term equity investments                                       (IX)

Investment property                                                 (X)            9,096,265.77         9,333,527.55

Fixed assets                                                       (XI)          39,264,470.61        40,395,680.91

Construction in progress                                           (XII)            978,211.64

Project materials

Disposal of fixed assets

Productive biological assets

Oil and gas assets

Intangible assets                                                  (XIII)        23,423,829.78        23,830,023.36

Development expenses

Goodwill

Long-term deferred expenses                                        (XIV)           1,071,343.97         1,071,343.97

Deferred income tax assets
                                                           报表第 1 页
Other non-current assets

Total non-current assets                                                              73,834,121.77       74,630,575.79

Total assets                                                                          96,200,796.86      105,444,153.63
The accompanying notes to the financial statements are an integral part of the financial statements.

Legal Representative:             Accounting Principal:              The Accounting Firm’s Principal:




                                                          报表第 2 页
                           HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                         Balance Sheet (continued)
                                              June 30, 2017
                                          (Expressed in Renminbi unless otherwise stated)
                Liabilities and owners 'equity                     Note V        Ending balance     Beginning balance
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value through profit
or loss for the current period
Derivative financial liabilities
Notes payable

Accounts payable                                                   (XVI)             2,042,988.73         1,967,565.51

Accounts received in advance                                       (XVII)            1,246,924.32         1,894,524.28

Employee benefits payable                                         (XVIII)            1,799,762.38         2,148,514.36

Taxes and surcharges payable                                       (XIX)               539,524.00           582,944.27
Interests payable
Dividends payable

Other payables                                                      (XX)            13,086,243.15        23,084,504.73

Liabilities classified as held for sale
Non-current liabilities maturing within one year
Other current liabilities
Total current liabilities                                                           18,715,442.58        29,678,053.15
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual capital securities
Long-term payables
Long-term employee benefits payable
Special payables

Estimated liabilities                                              (XXI)             1,489,685.04         1,489,685.04

Provisions
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities                                                        1,489,685.04         1,489,685.04
Total liabilities                                                                   20,205,127.62        31,167,738.19
Owners 'equity:

Share capital                                                      (XXII)          364,100,000.00       364,100,000.00

Other equity instruments
Including: preferred shares
Perpetual capital securities

Capital reserves                                                  (XXIII)                                54,142,850.01
                                                           报表第 3 页
                                                                                       54,142,850.01
 Less: treasury stock
 Other comprehensive income
 Special reserves
 Surplus reserves
 General risk reserves

 Undistributed profit                                               (XXIV)           -342,247,180.77      -343,966,434.57

 Total owners 'equity                                                                  75,995,669.24       74,276,415.44
 Total liabilities and owners 'equity                                                  96,200,796.86      105,444,153.63
The accompanying notes to the financial statements are an integral part of the financial statements.

Legal Representative:                Accounting Principal:            The Accounting Firm’s Principal:

                          HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                             Profit Statement
                                            Semi-Annual 2017
                                          (Expressed in Renminbi unless otherwise stated)
                              Item                                  Note V          Current period        Last period

 I. Operating income                                                (XXV)               15,096,273.42      12,062,797.60

 Less: operating cost                                               (XXV)                5,256,112.51        4,460,023.31

 Business taxes and surcharges                                      (XXVI)                 754,244.27         566,956.63

 Selling expenses                                                   (XXVII)              2,458,144.93        2,099,035.74

 Administrative expenses                                           (XXVIII)              5,089,450.57        4,989,443.77

 Financial expenses                                                 (XXIX)                -180,672.66         -204,752.54

 Losses from asset impairment                                       (XXX)

 Plus: gains from changes in fair value ("-" for losses)

 Investment income ("- " for loss)
 Including: income from investments in associates and
 joint ventures

 II. Operating profits ("-" for losses)                                                  1,718,993.80         152,090.69

 Plus: non-operating income                                         (XXXI)                     260.00           77,406.00

 Including: Gains from disposal of non-current assets

 Less: non-operating expenses

 Including: Loss on disposal of non-current assets

 III. Total profits ("-" for total losses)                                               1,719,253.80         229,496.69

 Less: income tax expenses                                                                                      57,374.17

 IV. Net profit ("-" for net loss)                                                       1,719,253.80         172,122.52

 V. Net after-tax of other comprehensive income
 (I) Other comprehensive income items which will not be
 reclassified subsequently to profit of loss
      1.    Changes as a result of remeasurement of net
            defined benefit plan liability or asset

      2.    Share of the other comprehensive income of
                                                             报表第 4 页
           the investee accounted for using equity method
           which will not be reclassified subsequently to
           profit and loss
 (II) Other comprehensive income items which will be
 reclassified subsequently to profit or loss
      1.   Share of the other comprehensive income of
           the investee accounted for using equity method
           which will be reclassified subsequently to
           profit or loss
      2.   Gains or losses arising from changes in fair
           value of available-for-sale financial assets
      3.   Gains or losses arising from reclassification of
           held-to-maturity investment as
           available-for-sale financial assets
      4.   The effect hedging portion of gains or losses
           arising from cash flow hedging instruments
      5.   Translation differences arising on translation of
           foreign currency financial statements

      6.   Others
 VI. Total comprehensive income                                                        1,719,253.80           172,122.52

 VII. Earnings per share:                                          X. (II)

 (I) Basic earnings per share                                                                 0.0047              0.0005

 (II) Diluted earnings per share                                                              0.0047              0.0005
Legal Representative:              Accounting Principal:           The Accounting Firm’s Principal:




                        HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                       Statement of Cash Flow
                                          Semi-Annual 2017
                                          (Expressed in Renminbi unless otherwise stated)
                                   Item                                      Note V      Current period     Last period
I. Cash flows from operating activities
  Cash received from sale of goods and rendering of services                                15,736,183.76   12,211,146.88
  Refunds of taxes and surcharges                                                                                4,801.73

  Cash received from other operating activities                              (XXXII)          677,415.38      545,761.73

Sub-total of cash inflows from operating activities                                         16,413,599.14   12,761,710.34
  Cash paid for goods purchased and services received                                        3,826,391.38    3,278,812.89
  Cash paid to and on behalf of employees                                                    5,608,808.99    4,775,931.92
  Cash paid for taxes and surcharges                                                         1,610,025.50    1,706,387.86

  Cash paid for other operating activities                                   (XXXII)         2,137,300.17    1,546,880.23

Sub-total of cash outflows from operating activities                                        13,182,526.04   11,308,012.90
Net cash flows from operating activities                                                     3,231,073.10    1,453,697.44
II. Cash flows from investing activities
  Cash received from disposal of investments

                                                           报表第 5 页
  Cash received from returns on investments
  Net cash received from disposal of fixed assets, intangible assets
and other long-term assets
  Net cash received from disposal of subsidiaries and other business
units
  Cash received from other investing activities
Sub-total of cash inflows from investing activities
  Cash paid to acquire and construct fixed assets, intangible assets
                                                                                          1,333,145.20     410,799.00
and other long-term assets
  Cash paid for investments                                                               9,000,000.00    9,000,000.00
  Net cash paid to acquire subsidiaries and other business units
  Cash paid for other investing activities
Sub-total of cash outflows from investing activities                                     10,333,145.20    9,410,799.00
Net cash flows from investing activities                                                -10,333,145.20   -9,410,799.00
III. Cash flows from financing activities
  Cash from absorption of investments
  Cash received from borrowings
  Cash received from bonds issue

  Cash received from other financing activities                          (XXXII)         19,810,000.00

Sub-total of cash inflows from financing activities                                      19,810,000.00

  Cash paid for debt repayments
   Cash paid for distribution of dividends and profits or payment of
interests
  Cash paid for other financing activities                                               29,810,000.00

Sub-total of cash outflows from financing activities                     (XXXII)         29,810,000.00

Net cash flows from financing activities                                                -10,000,000.00
IV. Effect of fluctuation on exchange rate on cash and cash
equivalents
V. Net increase in cash and cash equivalents                                            -17,102,072.10   -7,957,101.56
  Plus: balance of cash and cash equivalents at the beginning of the
                                                                                         27,210,248.01   19,782,392.26
period
VI. Balance of cash and cash equivalents at the end of the period                        10,108,175.91   11,825,290.70
The accompanying notes to the financial statements are an integral part of the financial statements.
Legal Representative:             Accounting Principal:              The Accounting Firm’s Principal:




                                                         报表第 6 页
                                                                     HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                                                               Statement of Changes in Owners' Equity
                                                                                         Semi-Annual 2017
                                                                                 (Expressed in Renminbi unless otherwise stated)
                                                                                                                           Current period
                                                                                  Other                                                   Other
                                                                            equity instrument                                           compreh
                                                                                                                                                   Speci
                      Item                                                                                                   Less:        ensive
                                                                                 Perpetua                     Capital                                al    Surplus    Undistributed     Total owner's
                                                    Share capital                                                          treasury      income
                                                                      Preferre   l capital                    reserve                              reser   reserves      profit            equity
                                                                                                Other                        stock
                                                                      d stock    securitie                                                          ve
                                                                                     s
I. Balance as at the end of last year               364,100,000.00                                         54,142,850.01                                              -343,966,434.57    74,276,415.44
Plus: Changes in accounting policies
  Correction of accounting errors in prior
periods
  Others
II. Balance as at the beginning of year             364,100,000.00                                         54,142,850.01                                              -343,966,434.57    74,276,415.44
III. Increases/decreases in the period (“-” for
                                                                                                                                                                         1,719,253.80     1,719,253.80
decreases)
(I) Total comprehensive income                                                                                                                                           1,719,253.80     1,719,253.80
(II) Capital contributed or reduced by owners
1. Ordinary shares contributed by owners
2. Contributions from holders of other equity
instruments
3.Amounts of share-based payments
recognized in owners’ equity
4.Others
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Profit distributed to owners (or
shareholders)
3. Others
(IV) Internal carry-forward of owners' equity
                                                                                                        报表第 7 页
1. Conversion of capital reserves into paid-in
capital (or share capital)
2. Conversion of surplus reserves into paid-in
capital (or share capital)
3. Making up losses with surplus reserves
4. Others
(V) Special reserves
1. Withdrawal in the period
2. Use in the period
(VI) Others
IV. Balance as at the end of the period          364,100,000.00                                      54,142,850.01   -342,247,180.77   75,995,669.24
   The accompanying notes to the financial statements are an integral part of the financial statements.
   Legal representative:            Accounting Principal:                   The Accounting Firm’s Principal:




                                                                                                 报表第 8 页
                                                                HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                                                      Statement of Changes in Owners' Equity (continued)
                                                                                      Semi-Annual 2017
                                                                            (Expressed in Renminbi unless otherwise stated)
                                                                                                                     Last period
                                                                                Other                                            Other
                                                                          equity instrument                                    compreh
                                                                                                                                 ensive   Specia   Surplu
                      Item                                                      Perpet                                Less:
                                                                                                                                income       l        s     Undistributed     Total owner's
                                                    Share capital                 ual              Capital reserve   treasur
                                                                     Preferre                                                             reserv   reserv      profit            equity
                                                                                capital    Other                     y stock
                                                                     d stock                                                                 e       es
                                                                                securiti
                                                                                  es
I. Balance as at the end of last year               364,100,000.00                                  54,142,850.01                                           -341,305,382.08    76,937,467.93
Plus: Changes in accounting policies
  Correction of accounting errors in prior
periods
  Others
II. Balance as at the beginning of year             364,100,000.00                                  54,142,850.01                                           -341,305,382.08    76,937,467.93
III. Increases/decreases in the period (“-” for                                                                                                                172,122.52       172,122.52
decreases)
(I) Total comprehensive income                                                                                                                                   172,122.52       172,122.52

(II) Capital contributed or reduced by owners
1. Ordinary shares contributed by owners
2. Contributions from holders of other equity
instruments
3.Amounts of share-based payments
recognized in owners’ equity
4.Others
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Profit distributed to owners (or
shareholders)

                                                                                              报表第 9 页
3. Others
(IV) Internal carry-forward of owners' equity
1. Conversion of capital reserves into paid-in
capital (or share capital)
2. Conversion of surplus reserves into paid-in
capital (or share capital)
3. Making up losses with surplus reserves
4. Others
(V) Special reserves
1. Withdrawal in the period
2. Use in the period
(VI) Others
IV. Balance as at the end of the period          364,100,000.00                                      54,142,850.01   -341,133,259.56   77,109,590.45
The accompanying notes to the financial statements are an integral part of the financial statements.
Legal representative:            Accounting Principal:                   The Accounting Firm’s Principal:




                                                                                             报表第 10 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


  HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO.,
                        LTD
           NOTES TO FINANCIAL STATEMENT
                  SEMI-ANNUAL 2017



1. Company basic information

1.1   Company profile

      Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (hereinafter referred to as “the
      Company”), was founded as a standardized LLC on April 26, 1993, reorganized and
      incorporated on the basis of the former Hainan Sanya Dadonghai Tourism Center
      Development Ltd. and approved by the Hainan Provincial Stock System Experimentation
      Leading Team Office with a document of Qiong Gu Ban Zi [1993] No. 11. On May 6, 1996,
      the Company underwent a restructuring and a corresponding division under the approval of
      the Hainan Provincial Securities Administration Office with a document of Qiong Zheng Ban
      [1996] No. 58. On October 8, 1996 and January 28, 1997, the Company, with duly approval,
      went public by issuing 80 million shares of B stock and 14 million shares of A stock
      respectively on Shenzhen Security Exchange. On June 20, 2007, the Company experienced a
      reform of non-tradable shares, through which non-tradable share holders of the Company got
      circulating right of their shares by paying shares to tradable share holders, and tradable share
      holders got paid three shares for every ten of their shares. The Company operates business in
      the industry of tourism and catering services.


      As of June 30, 2017, the Company’s total capital stock is 364,100,000 shares. The Company’s
      registered capital is RMB 364.1 million. The legal representative is Li Yuanbin. The
      registration number of its Business License for Enterprise Legal Person (Duplicate) is
      4600001003983. The legal registerred residence is Dadonghai, Hedong District, Sanya. Its
      scope of business includes: accommodation and catering industry (limited to those operated
      by branches); photography; operation of ornamental plant bonsai, knitwear and textiles,
      general merchandise, hardware and electrical equipment, chemical products (excluding those
      require specialized licenses), daily necessities, industrial means of production (excluding
      those require specialized licenses), metal materials and machinery equipment; commission
      sale of plane, bus, train and ship tickets (items in require of administrative permission shall be



                                          财务报表附注第 1 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


    operated under license). The Company’s largest shareholder is the Hainan Luoniushan
    (Holdings) Co., Ltd.


    These financial statements have been approved by all directors of the Company on August 17,
    2017 for disclosure.

1.2 Scope of consolidation (aggregation) of financial statements
    Until June 30, 2017, the scope of consolidation (aggregation) of financial statements as below:

                                Company Name                                 Relationship

        South China Grand Hotel of Hainan Dadonghai Tourism Center

          (Holdings) Co., Ltd (hereinafter referred to as “South China       Subsidiary

                                 Grand Hotel”)

       The consolidate (Summarize) financial statement range in the period and its changes found
       more in the “VI Change of Consolidate Range” in Note


2   Basis of preparation for financial statements
     2.1 Basis of preparation
        Based on going concern, according to actually occurred transactions and events, the
        Company prepares its financial statements in accordance with the Accounting Standards
        for Business Enterprises – Basic Standards and concrete accounting standards,
        Accounting Standards for Business Enterprises – Application Guidelines, Accounting
        Standards for Business Enterprises – Interpretations and other relevant provisions
        (collectively known as “Accounting Standards for Business Enterprises”), as well as the
        disclosure requirements of Regulation on the Preparation of Information Disclosure of
        Companies Issuing Public Shares No.15 - General Requirements for Financial Reports (as
        revised in 2014) by the China Securities Regulatory Commission.


     2.2 Going concern
        The Company is currently operating normal, net cash flows from operating activities is
        positive, the Company is expected to continue operate as going concern in the next twelve
        months.


3   Principal accounting policies and estimates



                                            财务报表附注第 2 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


     3.1 Statement on compliance with Accounting Standards for Business
         Enterprises
        The financial statements prepared by the Company meet the requirements of the
        Accounting Standards for Business Enterprises and truly and completely reflect the
        Company’s financial position, and its operating results, cash flows and other related
        information.


     3.2 Accounting period
        The accounting year is from January 1 to December 31 in calendar year.


     3.3 Operating cycle
        The operating cycle of the Company is twelve months.


     3.4 Functional currency
        RMB is adopted as the functional currency.


     3.5 Recognition criteria of cash and cash equivalents
        For the purpose of preparing the statement of cash flows, the term “cash” refers to the
        cash on hand and the unrestricted deposit. The term “cash equivalents” refers to
        short-term (maturing within three months from acquisition) and highly liquid investments
        that are readily convertible to known amounts of cash and which are subject to an
        insignificant risk of change in value.


     3.6 Foreign currency transactions
        Foreign currency transactions are converted into RMB for recording purpose at the spot
        exchange rate on the date when the transaction occurs.


        Balances of foreign currency monetary items are measured at the spot exchange rate on
        the balance sheet date. The exchange difference arising therefrom shall be included in the
        current profit and loss, except that those exchange differences arising from the special
        borrowings of foreign currency related to the acquired and constructed assets qualified for
        capitalization shall be dealt with according to the principle of borrowing cost
        capitalization. Foreign currency non-monetary items measured at historical costs shall



                                        财务报表附注第 3 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        still be converted at the spot exchange rates on the date when the transactions occur, and
        the amount in functional currency shall remain unchanged. Foreign currency
        non-monetary items measured at fair value shall be translated at the spot exchange rates
        on the date when the fair value is determined. The exchange difference arising therefrom
        shall be included in the current profit and loss or capital reserves.



     3.7 Financial instruments
        Financial instruments include financial assets, financial liabilities and equity instruments.


          3.7.1     Classification of financial instruments

              Financial assets and liabilities are classified into the following categories according
              to the purpose of acquisition: financial assets or financial liabilities measured at fair
              value and whose variation is included in the current profit and loss, including
              financial assets or financial liabilities held for trading and financial assets or
              financial liabilities directly designated to be measured at fair value through current
              profit    and    loss,    held-to-maturity     investments,       accounts   receivables,
              available-for-sale financial assets and other financial liabilities, etc.




          3.7.2     Recognition basis and measurement method of financial instruments

              (1) Financial assets (financial liabilities) measured at fair value and whose
                    variation is included in the current profit and loss
                   Financial assets (financial liabilities) are initially recorded at fair values when
                   acquired (deducting cash dividends that have been declared but not distributed
                   and bond interests that have matured but not been drawn). Relevant transaction
                   expenses are included in the current profit and loss.


                   The interests or cash dividends to be received during the holding period are
                   recognized as investment income. Change in fair values is included in the
                   current profit and loss at the end of the period.


                   Difference between the fair value and initial book-entry value is recognized as
                   investment income upon disposal; meanwhile, adjustment is made to gains or



                                         财务报表附注第 4 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                  losses from changes in fair values.


              (2) Held-to-maturity investments
                  Held-to-maturity investments are initially recorded at fair values plus the
                  related trade expenses when acquired (deducting bond interests that have
                  matured but not been drawn).


                  The interest revenue calculated at amortization cost and effective interest rate
                  (nominal interest rate is adopted when the difference between the actual
                  interest rate and the nominal interest rate is minor) during the holding period is
                  recognized as investment income. Effective interest is recognized when
                  obtained, and remains unchanged in the predictable holding period or
                  applicable shorter period.


                  The difference between the amount received and the book value of the
                  investment is included in the investment profit and loss upon disposal.


              (3) Accounts receivable
                  For creditor’s rights receivable arising from external sales of goods or
                  rendering of service by the Company and other creditor's rights of other
                  enterprises (excluding liability instruments quoted in an active market) held by
                  the Company, including accounts receivable, other receivables, notes
                  receivable and prepayments, etc., the initial recognition amount shall be the
                  contract price or agreement price receivable from purchasing party. Accounts
                  receivable with financing nature are initially recognized at their present values.


                  The difference between the amount received and the book value of the
                  accounts receivable is included in the current profit and loss upon recovery or
                  disposal.


              (4) Available-for-sale financial assets
                  Available-for-sale financial assets are initially recorded at fair values plus the
                  related trade expenses when acquired (deducting cash dividends that have been
                  declared but not been paid or bond interests that have matured but not been


                                       财务报表附注第 5 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                  drawn).


                  The interests or cash dividends to be received during the holding period are
                  recognized as investment income. It is measured in fair value at the end of the
                  period and change in fair values is included in other comprehensive income at
                  the end of the period. However, the equity instrument investments unquoted in
                  an active market and whose fair value cannot be measured reliably, and the
                  derivative financial assets which are connected with the said equity instrument
                  and must be settled by delivering the said equity instrument shall be measured
                  on the costs basis.


                  The difference between the amount received and the book value of the
                  financial asset is included in the investment profit and loss upon disposal.
                  Meanwhile, the corresponding part of fair value accumulated change accounted
                  as other comprehensive income is transferred into investment profit or loss.


              (5) Other financial liabilities
                  Other financial liabilities are initially recognized at the sum of fair value and
                  transaction expenses and subsequently measured at amortized costs.



          3.7.3    Recognition basis and measurement method of transfer of financial assets

              When transfer of financial assets occurs, if nearly all of the risks and rewards of
              ownership of the financial assets have been transferred to the transferee, the
              Company derecognizes the financial assets; if nearly all of the risks and rewards of
              ownership of the financial assets are retained, the Company shall not derecognize
              the financial assets.


              The principle of substance over form is adopted to determine whether the transfer
              of a financial asset satisfies the criteria as described above for derecognition of a
              financial asset. The Company shall classify the transfer of a financial asset into the
              entire transfer and the partial transfer of financial asset. If the entire transfer of
              financial asset satisfies the criteria for derecognition, the difference between the
              amounts of the following two items shall be included in the current profit and loss:


                                        财务报表附注第 6 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              (1) The book value of the transferred financial asset;
              (2) The sum of the consideration received from the transfer and the accumulated
                   amount of the changes in fair value originally and directly included in owners’
                   equity    (the   situation   where    the      financial asset   transferred   is   an
                   available-for-sale financial asset is involved in)


              If the partial transfer of financial asset satisfies the criteria for derecognition, the
              entire book value of the transferred financial asset shall be split into the
              derecognized and recognized part according to their respective fair value and the
              difference between the amounts of the following two items shall be included in the
              current profit and loss:
              (1) The book value of derecognized part;
              (2) The sum of the consideration for the derecognized part and the portion of
                   derecognition corresponding to the accumulated amount of the changes in fair
                   value originally and directly included in owners’ equity (the situation where
                   the financial asset transferred is an available-for-sale financial asset is
                   involved in).


                   If the transfer of financial assets does not meet the derecognition criteria, the
                   financial assets shall continue to be recognized, and the consideration received
                   will be recognized as a financial liability.




           3.7.4   Derecognition criteria of financial liabilities

              A financial liability shall be totally or partly derecognized if its present obligations
              are totally or partly dissolved. Where the Company enters into an agreement with a
              creditor so as to substitute the existing financial liabilities with any new financial
              liability, and the new financial liability is substantially different from the
              contractual stipulations regarding the existing financial liability, it shall
              derecognize the existing financial liability, and shall at the same time recognize a
              new financial liability.


              Where substantial revisions are made to some or all of the contractual stipulations



                                         财务报表附注第 7 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                 of the existing financial liability, the Company shall derecognize the existing
                 financial liability totally or partly, and at the same time recognize the financial
                 liability with revised contractual stipulations as a new financial liability.


                  Upon total or partial derecognition of financial liabilities, the difference between
                 the book value of the financial liabilities derecognized and the consideration paid
                 (including non-cash assets surrendered or new financial liabilities assumed) shall
                 be included in the current profit and loss.


                 Where the Company redeems part of its financial liabilities, it shall, on the
                 redemption date, allocate the entire book value of whole financial liabilities
                 according to the comparative fair value of the part that continues to be recognized
                 and the de-recognized part. The difference between the book value allocated to the
                 derecognized part and the considerations paid (including non-cash assets
                 surrendered and the new financial liabilities assumed) shall be included in the
                 current profit and loss.




              3.7.5   Method of determining the fair value of financial assets and financial
liabilities

                 For financial instruments with active market, their fair values are determined with
                 quoted market price. For financial instruments without active market, their fair
                 values are determined by using valuation technique. During the valuation, the
                 Company use valuation techniques that are appropriate in the circumstances and for
                 which sufficient data and other information are available to measure fair value,
                 select inputs that are consistent with the characteristics of the asset or liability that
                 market participants would take into account in a transaction for the asset or liability,
                 and give priority to the use of relevant observable inputs. Unobservable inputs are
                 only adopted when relevant observable inputs cannot be obtained or are
                 impracticable to obtain.




                                            财务报表附注第 8 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


     3.7.6    Providing of impairment provision on financial assets (exclude receivable
accounts)

              The Company performs inspection on the book value of financial assets apart from
              those financial assets measured at fair value through current profit and loss on the
              balance sheet date. Impairment provision is required if objective evidences of
              impairment occurs to the financial assets.



                 (1) Impairment provision of available-for-sale financial assets:

                 If there is a serious decline in fair value of the available-for-sale financial assets
                 at the end of the period, or such decline is not temporary after considering
                 various factors, the impairment shall be confirmed, the accumulated losses due
                 to decreases in fair value previously included in owner’s equity shall be
                 reversed, and the impairment loss shall be recognized.



                 If, in a subsequent period, the carrying amount of available-for-sale debt
                 instruments investments increases and the increase can be related objectively to
                 an event occurring after the impairment was recognized, the previously
                 recognized impairment losses are reversed, included in current profit or loss.



                 The impairment losses of available-for-sale equity instruments cannot be
                 reversed through profit or loss.



                 (2) Impairment provision of held-to-maturity investment:
                 Measurement of held-to-maturity investment impairment loss is governed by
                 measurement of account receivables impairment loss.


     3.8 Provision for bad debts of receivables

     3.8.1    Provision for bad debts of account receivables that are individually significant:

              Assessment basis or standard of amount individually significant: top five accounts
              receivable and other receivables in terms of individual amount at the end of the
              year.



                                       财务报表附注第 9 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




              Method of provision for bad debts of accounts receivable that are individually
              significant: after separate impairment test, provision for bad debts shall be made at
              the difference of present value of estimated future cash flows in short of their book
              values, and shall be include in current profit and loss. For accounts receivable with
              no impairment found after separate tests, they shall be included in corresponding
              portfolios for provisions for bad debts. For accounts receivable with confirmed
              impairment losses after separate tests, they shall not be included in portfolios of
              accounts receivable with similar credit risk features for impairment tests.




    3.8.2     Provision for bad debts of accounts receivable made on the basis of
portfolio:

                                                     Basis of determining portfolio

              Aging portfolio                                Length of the aging

                                   Method of making provision for bad debts on the basis of portfolio

              Aging portfolio                                Aging analysis method



              Proportions of provision for bad debts on the basis of aging analysis in portfolios
              are as follows:
                                                      Proportion of provision for      Proportion of provision for other
                           Aging
                                                        account receivable (%)                  receivables (%)

              Within 1 year (including 1 year)

              1-2 years                                            5                                     5

              2-3 years                                           15                                    15

              3-4 years                                           25                                    25

              4-5 years                                           50                                    50

              More than five years                                100                                   100



   3.8.3      Accounts receivable that are individually insignificant but with bad debt
provision provided on an individual basis:

              Reason for bad debt provision provided on an individual basis: For account


                                           财务报表附注第 10 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              receivable with an individual balance lower than the top five at the end of the year
              and with objective evidence showing it may be impaired, and for uncollectible
              accounts receivable arising from repeal and liquidation of debtor after taking legal
              clearance procedures, their provision for bad debts shall be provided on an
              individual basis.


              Method of provision for bad debt: For accounts receivable with objective evidence
              showing they may be impaired, they shall be separate from relevant portfolios and
              separately tested for impairment to recognize the impairment losses.
              Other remarks: provision for impairment of accounts receivable, excluding debts
              receivable and other receivables, shall be made at the specific identification
              method.




    3.8.4     Reversal of bad debt provisions

              If there is evidence showing that the value of the account receivable has been
              recovered, and that the recovery is objectively related to events after recognition of
              the loss, the originally recognized impairment loss should be reversed and included
              in current profit and loss. However, the book values after such reversal shall not
              exceed the amortized costs of the account receivable on the reversal date, assuming
              there is no provision for impairment.


     3.9 Inventories

    3.9.1     Classification of inventories

              Inventories are classified into raw materials, stock commodities, low-cost
              consumables, food materials, fuels, etc.




    3.9.2     Measurement method of dispatched inventories

              Stock commodities are measured at selling price and their purchase and sale price
              differential are amortized over every month at the method of comprehensive
              differential. The purchasing and storage of stock materials are measured at actual



                                      财务报表附注第 11 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              cost, and at the first-in-first-out method when fetched for use. Low-cost
              consumables are amortized in full when fetched for use.




    3.9.3     Determination basis of net realizable values of inventories and provision
method of inventory depreciation reserve

              After the comprehensive inventory count at the end of the period, provisions for
              inventory depreciation reserve are made or adjusted at the lower of their costs or net
              realizable values.


              In normal operation process, for merchandise inventories for direct sale, including
              stock commodities and materials for sale, their net realizable values are determined
              at the estimated selling prices minus the estimated selling expenses and relevant
              taxes and surcharges; for inventories held to execute sales contract or service
              contract, their net realizable values are calculated on the basis of contract price. If
              the quantities of inventories specified in sales contracts are less than the quantities
              held by the Company, the net realizable value of the excess portion of inventories
              shall be based on general selling prices.


              At the end of the period, provisions for inventory depreciation reserve are made on
              an individual basis. For inventories with large quantity and low unit price, the
              provisions for inventory depreciation reserve are made on a category basis. For
              inventories related to the product portfolios manufactured and sold in the same area,
              and of which the final usage or purpose is identical or similar thereto, and which is
              difficult to separate from other items for measurement purposes, the provisions for
              inventory depreciation reserve shall be made on a portfolio basis.


              If any factor rendering write-downs of the inventories has been eliminated, the
              amounts written down are recovered and reversed from the inventory depreciation
              reserve, which has been provided for. The reversed amounts are included into the
              current profit and loss.




                                         财务报表附注第 12 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


    3.9.4      Inventory system

               Perpetual inventory system is adopted.




    3.9.5      Amortization method of low-cost consumables and packaging materials

               (1) Low-cost consumables are amortized at lump-sum method;


               (2) Packaging materials are amortized at lump-sum method.


     3.10     Long-term equity investments

    3.10.1     Determination basis of joint control or significant influence over the investee

               Joint control is the relevant agreed sharing of control over an arrangement, and the
               arranged relevant activity must be decided under unanimous consent of the parties
               sharing control. When the Company and other joint parties do joint control and
               have rights to the net assets over an investee, the investee shall be the Company’s
               joint venture.



             Significant influence is the power to participate in the financial and operating policy
             decisions of the investee but is not control or joint control over those polices (such as
             has a representative in the Board or similar authority organ under the name of the
             invested unit). When an investing enterprise is able to have significant influences on
             an investee, the investee shall be its associate.




        3.10.2      Determination of investment cost

               (1) Long-term equity investments acquired from business combinations
                   For business combination under common control: if the Company makes
                   payment in cash, transfer non-cash assets or bear debts and issues equity
                   securities as the consideration for the business combination, the book value of
                   the owners’ equity of the combinee obtained is recognized as the initial cost of
                   the long-term equity investment on the combination date. The difference
                   between the initial investment cost and the carrying amount of cash paid,


                                         财务报表附注第 13 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                  non-cash assets transferred, liabilities assumed and par value of share issued
                  shall be adjusted to the stock premium in the capital reserved; if there is no
                  sufficient premium in the capital reserve for write-downs, the retained earnings
                  are adjusted.


                  When exercising control over an investee under common control due to
                  additional investment or other reasons, the initial investment cost of the
                  long-term equity investment shall be determined by the absorbing party’s share
                  of the net assets of the party being absorbed in the consolidated financial
                  statements of the ultimate controlling party at combination date. The difference
                  between the initial investment cost of the long-term equity investment at
                  combination date and the sum of the total of the carrying amount of equity
                  investment held by the acquirer before the combination date and the newly
                  increased investment on the combination date shall be adjusted to share
                  premium. If the balance of share premium is not sufficient, any excess shall be
                  adjusted to retained earnings.



                  For business combination not under common control, the Company recognizes
                  the combination cost determined on the combination date as the initial cost of
                  long-term equity investment. When exercising control over an investee not
                  under common control due to additional investment or other reasons, in
                  stand-alone financial statements, the investor shall change to the cost method
                  and use the carrying amount of the previously-held equity investment, together
                  with the additional investment cost, as the initial investment cost under the cost
                  method. The audit, legal, valuation and consulting fees, other intermediary fees,
                  and related administrative fees paid by the absorbing party or acquirer for the
                  business combination, shall be recognized in profit or loss as incurred; the cost
                  of issuing equity securities or debt securities as the combination consideration
                  shall be included in the initial cost of the equity securities or debt securities.



              (2) Long-term equity investments acquired by other means
                  For long-term equity investments acquired from making payments in cash, the
                  initial cost is the actually paid purchase cost.


                                       财务报表附注第 14 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




                      For long-term equity investments acquired from issuance of equity securities,
                      the initial cost is the fair value of the issued equity securities.



                      If the exchange of non-monetary assets has commercial substance, and the fair
                      values of assets traded out and traded in can be measured reliably, the initial
                      cost of long-term equity investment traded in with non-monetary assets are
                      determined based on the fair values of the assets traded out together with
                      relevant taxes unless there is any conclusive evidence that the fair values of the
                      assets traded in are more reliable. If the exchange of non-monetary assets does
                      not meet the above criteria, the book value of the assets traded out and relevant
                      taxes are recognized as the initial cost of long-term equity investment traded in.


                      For long-term equity investment acquired from debt restructuring, the initial
                      cost is determined based on the fair value.




       3.10.3         Subsequent measurement and recognition of profit or loss

                (1) Long-term equity investment adopting cost method
                      Long-term equity investments of the Company in its subsidiaries are accounted
                      for at cost method, except for the actual price paid for acquisition of
                      investment or the cash dividends or profits contained in the consideration
                      which have been declared but not yet distributed, the Company recognizes the
                      proportion it shall enjoy in the cash dividends or profits declared by the
                      investee as current investment income.


                (2)    Long-term equity investment adopting equity method
                      A long-term equity investment in an associate or a joint venture shall be
                      accounted for using the equity method. If the cost of initial investment is in
                      excess of the proportion of the fair value of the net identifiable assets in the
                      investee when the investment is made, the difference will not be adjusted to the
                      initial cost of long-term equity investment; if the cost of initial investment is in
                      short of the proportion of the fair value of the net identifiable assets in the
                      investee when the investment is made, the difference will be included in the

                                           财务报表附注第 15 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                  current profit and loss.


                  The Company recognizes the share of the investee’s net profits or losses, as
                  well as its share of the investee’s other comprehensive income, as investment
                  income or losses and other comprehensive income, and adjusts the carrying
                  amount of the investment accordingly. The carrying amount of the investment
                  shall be reduced by the portion of any profit distributions or cash dividends
                  declared by the investee that is attributable to the investor. The investor’s share
                  of the investee’s owners’ equity changes, other than those arising from the
                  investee’s net profit or loss, other comprehensive income or profit distribution,
                  would be recognized in the investor’s equity, and the carrying amount of the
                  long-term equity investment shall be adjusted accordingly.


                  The Company recognizes its share of the investee’s net profits or losses after
                  making appropriate adjustments based on the fair values of the investee’s
                  identifiable net assets at the acquisition date according to the Company’s
                  accounting policies and accounting period. When holding the investment, if the
                  investee is capable of providing consolidated financial statements, the profit or
                  loss shall be measured based on the net profit, other comprehensive income
                  and other changes in owners’ equity attributed to the Company recorded in the
                  consolidated financial statements.


                  The unrealized profits or losses resulting from transactions between the
                  Company and its associate or joint venture are eliminated in proportion to the
                  Company’s equity interest in the investee, based on which investment income
                  or losses shall be recognised. Any losses resulting from transactions between
                  the investor and the investee, which are attributable to asset impairment shall
                  be recognized in full. The transactions of investing or selling assets between
                  the Company and its associate or joint venture are accounted for under relevant
                  accounting policies when the asset constitutes a business.



                  When the Company confirms that it should share losses of the investee,
                  treatment shall be done in following sequence: firstly, the book value of the
                  long-term equity investment shall be reduced; secondly, where the book value
                  is insufficient to cover the share of losses, investment losses are recognized to


                                       财务报表附注第 16 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                    the extent of book value of long-term equity which form net investment in the
                    investee in substance and the book value of long-term equity shall be reduced;
                    finally, after all the above treatments, if the Company is still responsible for
                    any additional liabilities in accordance with the provisions stipulated in the
                    investment contracts or agreements, estimated liabilities are recognized and
                    included into current investment loss according to the obligations estimated to
                    undertake. If the investee achieves profit in subsequent periods, the treatment is
                    in the reversed sequence described above, i.e. after deduct any unrecognized
                    investment losses, reduce book value of estimated liabilities recognized, restore
                    book values of other long-term equity which form net investment in the
                    investee in substance, and of long-term equity investment, and recognize
                    investment income at the same time.


              (3)    Disposal of long-term equity investment
                    On disposal of a long-term equity investment, the difference between the
                    proceeds actually received and the carrying amount shall be recognized in
                    profit or loss for the current period.


                    For a long-term equity investment accounted for using the equity method, any
                    other comprehensive income previously recognized shall be accounted for on
                    the same basis as would have been required if the investee had directly
                    disposed of the related assets or liabilities on a por-rata basis upon the disposal
                    of the equity investment. The owners’ equity recognised due to the investor’s
                    share of the investee’s owners’ equity changes, other than those arising from
                    the investee’s net profit or loss, other comprehensive income or profit
                    distribution, is included in current profit or loss on a pro-rata basis.


                    When the Company can no longer exercise joint control of or significant
                    influence over an investee due to partial disposal of equity investment or other
                    reasons, the remaining equity investment shall be accounted for in accordance
                    with “Accounting Standard for Business Enterprises No.22-Financial
                    Instruments: Recognition and Measurement”. The difference between the fair
                    value and the carrying amount at the date of the loss of joint control or



                                         财务报表附注第 17 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                  significant influence shall be charged to profit or loss for the current period.
                  When the previously-held equity investment is accounted for under the equity
                  method, any other comprehensive income previously recognized shall be
                  accounted for on the same basis as would have been required if the investee
                  had directly disposed of the related assets or liabilities for the current period
                  upon discontinuation of the equity method. The owners’ equity recognised due
                  to the investor’s share of the investee’s owners’ equity changes, other than
                  those arising from the investee’s net profit or loss, other comprehensive income
                  or profit distribution, is transferred to current profit or loss upon
                  discontinuation of the equity method.


                  When no longer exercise control over an investee due to partial disposal of
                  equity investment or other reasons, and with the retained interest, still has joint
                  control of , or significant influence over, the investee, when preparing the
                  individual financial statements, the Company shall change to the equity method
                  and adjust the remaining equity investment as if the equity method had been
                  applied from the date of the first acquisition. If the Company can not exercise
                  joint control of or significant influence over the investee after partial disposal
                  of equity investment, the remaining equity investment shall be accounted for in
                  accordance     with     “Accounting    Standard     for   Business    Enterprises
                  No.22-Financial Instruments: Recognition and Measurement”, and the
                  difference between the fair value and carrying amount at the date of the loss of
                  control shall be charged to profit or loss for the current period.


                  The equity investment disposed was obtained over additional investment or
                  other reasons through business combination, when preparing the individual
                  financial statements, and the remaining equity investment accounted on cost
                  method or equity method, the other comprehensive income and other owner’s
                  equity recognized due to the equity investment held before acquisition date was
                  accounted for under the equity method are carried forward on a pro-rata basis;
                  when the remaining equity investment is accounted for in accordance with
                  “Accounting Standard for Business Enterprises No. 22 – Financial Instruments:
                  Recognition and Measurement”, the other comprehensive income and other



                                        财务报表附注第 18 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                  owner’s equity are totally carried forward.


     3.11    Investment property
                  Investment property refers to possessing real estate for gaining rent or capital
                  appreciation, or both, including the rental of the land use right, possession and
                  prepare to value-added after the transfer of the land use rights and the rental of
                  buildings leased (Including rental buildings after completion of construction or
                  development activities or in the development processing).


                  Investment property is measured at their actual cost in the Company. Due to
                  the method of determining is actual cost model for investment property-its
                  method of provision for depreciation policy is same with fixed assets’ when the
                  investment properties are constructions or buildings, its method of provision
                  for amortization policy is same with Intangible assets’ when the investment
                  property is land usage right.



     3.12    Fixed assets

   3.12.1     Recognition criteria of fixed assets

              Fixed assets refer to the tangible assets held for the purpose of producing
              commodities, rendering services, renting or business management with useful lives
              exceeding one year. Fixed assets will only be recognized when all the following
              criteria are satisfied:
              (1) It is probable that the economic benefits relating to the fixed assets will flow
                   into the Company;
              (2) The costs of the fixed assets can be measured reliably.



   3.12.2     Classification of fixed assets

              Fixed assets are classified into buildings and constructions, machinery equipment,
              transportation equipment, electronic entertainment equipment, other equipment and
              Improvement.




                                        财务报表附注第 19 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


   3.12.3     Initial measurement of fixed assets

              Fixed assets are initially measured at their actual cost when acquired.


              The costs of a purchased fixed asset are determined at the purchase price, the
              relevant taxes, and the traffic expenses, loading and unloading fees, installation
              fees and professional service fees arising from preparing the fixed asset for its
              intended use.


              If the payment for a fixed asset is delayed beyond the normal credit conditions and
              it is of financing nature in effect, the costs of the fixed asset shall be determined
              based on the present value of the purchase price.


              The cost of a self-constructed fixed asset shall be formed by the necessary expenses
              incurred for preparing the asset for its intended use.


              The fixed assets which the debtor uses to pay back the debt in debt restructuring
              should be recognized at the fair value of the fixed assets. The difference between
              the book value of restructured debts and the fair value of fixed assets used to pay
              back the debt should be recorded into current profit and loss;


              On the premise that non-monetary asset trade is of commercial nature and the fair
              value of the asset traded in or out can be measured reliably, the fixed asset traded in
              with non-monetary asset should be recognized at the fair value of the asset traded
              out, unless any unambiguous evidence indicates that the fair value of the asset
              traded in is more reliable; as to the non-monetary asset trade not meeting the
              aforesaid premise, the book value of the asset traded out and related taxes and
              surcharges payable should be recognized as the cost of the fixed asset, with gains or
              losses not recognized.


              As for the book-entry value, the fixed assets acquired from the absorption and
              merger of an enterprise under common control are recognized at the book value of
              the merged enterprise; the fixed assets acquired from the absorption and merger of
              an enterprise not under common control are recognized at the fair value.



                                       财务报表附注第 20 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




              The book-entry value of a fixed asset acquired under financing lease is measured at
              the asset’s fair value on the commencement date of the lease or the present value of
              the minimum lease payment, whichever is lower.




   3.12.4     Method of provision for impairment of fixed assets

              The fixed assets are depreciated at straight-line-method, and the depreciation rates
              are determined as follows based on the category, estimated economic useful lives
              and estimated residual values (5% of original values):



                                                                Estimated net residual   Annual depreciation
                                        Estimated useful life
                     Category                                            rate                   rate
                                               (Year)
                                                                         (%)                    (%)

              Buildings and
                                               20-40                      5                   4.75-2.37
              constructions

              Machinery equipment               8-20                      5                  11.87-4.75

              Electronic

              entertainment                     5-16                      5                   19-5.93

              equipment

              Transportation
                                                7-12                      5                  13.57-7.91
              equipment

              Other equipment                    8                        5                    11.87

              Improvement                        5                                               19



3.13     Construction in progress
        The initial book values of the fixed assets are stated at total expenditures incurred before
        construction in progress reaches the working condition for their intended use. For
        construction in progress that has reached working conditions for its intended use but for
        which the completion of settlement has not been handled, it shall be transferred into fixed
        assets at the estimated value according to the project budget, construction price or actual
        cost, etc. from the date when it reaches the working conditions for its intended use. And

                                       财务报表附注第 21 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        the fixed assets shall be depreciated in accordance with the Company’s policy on fixed
        asset depreciation. Adjustment shall be made to the originally and provisionally estimated
        value based on the actual cost after the completion of settlement is handled, but
        depreciation already provided will not be adjusted.


     3.14     Borrowing costs

   3.14.1     Recognition principles of capitalization of borrowing costs

              Borrowing costs include the interest of borrowings, the amortization of discount or
              premium, auxiliary expenses, exchange differences incurred by foreign currency
              borrowings, etc.


              The borrowing costs incurred to the Company and directly attributable to the
              acquisition and construction or production of assets eligible for capitalization
              should be capitalized and recorded into asset costs; other borrowing costs should be
              recognized as costs according to the amount incurred and be included into current
              profit and loss.


              Assets eligible for capitalization refer to fixed assets, investment property,
              inventories and other assets which may reach their intended use or sale status only
              after long-time acquisition and construction or production activities.


              Borrowing costs may be capitalized only when all the following conditions are met
              at the same time:
              (1) Asset disbursements, which include those incurred by cash payment, the
                   transfer of non-cash assets or the undertaking of interest-bearing debts for
                   acquiring and constructing or producing assets eligible for capitalization, have
                   already been incurred;


              (2) Borrowing costs have already been incurred;


              (3) The acquisition and construction or production activities which are necessary
                   to prepare the assets for their intended use or sale have already been started.




                                       财务报表附注第 22 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


   3.14.2     Capitalization period of borrowing costs

              Capitalization period refers to the period from the beginning of capitalization to the
              cease of capitalization, excluding the period of capitalization suspension of
              borrowing costs.


              Capitalization of borrowing costs should be ceased when the acquired and
              constructed or produced assets eligible for capitalization have reached their
              intended use or sale condition.


              When some projects among the acquired and constructed or produced assets
              eligible for capitalization are completed and can be used separately, the
              capitalization of borrowing costs of such projects should be ceased.


              If all parts of the acquired and constructed or produced assets are completed but the
              assets cannot be used or sold externally until overall completion, the capitalization
              of borrowing costs should be ceased at the time of overall completion of the said
              assets.




    3.14.3    Period of capitalization suspension

              If the acquisition and construction or production activities of assets eligible for
              capitalization are interrupted abnormally and this condition lasts for more than
              three months, the capitalization of borrowing costs should be suspended; if the
              interruption is necessary for the acquisition and construction or production to
              prepare the assets for their intended use or sale, the capitalization of borrowing
              costs should continue. The borrowing costs incurred during interruption are
              recognized in the current profit and loss, and the capitalization of borrowing costs
              continues after the restart of the acquisition and construction or production
              activities of the assets.




   3.14.4     Calculation method of capitalization amount of borrowing costs

              As for special borrowings borrowed for acquiring and constructing or producing


                                          财务报表附注第 23 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              assets eligible for capitalization, borrowing costs of special borrowing actually
              incurred in the current period less the interest income of the loans unused and
              deposited in bank or return on temporary investment should be recognized as the
              capitalization amount of borrowing costs.


              As for general borrowings used for acquiring and constructing or producing assets
              eligible for capitalization, the interest of general borrowings to be capitalized
              should be calculated by multiplying the weighted average of asset disbursements of
              the part of accumulated asset disbursements exceeding special borrowings at the
              end of every month by the capitalization rate of used general borrowings. The
              capitalization rate is calculated by weighted average interest rate of general loans.


              As for borrowings with discount or premium, the to-be-amortized discount or
              premium in each accounting period should be recognized by effective interest rate
              method, and the interest for each period should be adjusted.


          3.15     Intangible assets

        3.15.1     Measurement method of intangible assets

              (1) The Company initially measures intangible assets at cost on acquisition;
                  The cost of an externally acquired intangible asset comprises its purchase price,
                  related taxes and surcharges and any other directly attributable expenditure of
                  preparing the asset for its intended use. If the deferred payment of purchase
                  price of intangible assets exceeding normal credit terms is substantially of
                  financial nature, the cost of intangible assets should be recognized at the
                  present value of the purchase price.


                  The intangible assets which the debtor uses to pay back the debt in debt
                  restructuring should be recognized at the fair value of the intangible assets. The
                  difference between the book value of restructured debts and the fair value of
                  intangible assets used to pay back the debt should be recorded into the current
                  profit and loss;




                                       财务报表附注第 24 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                   On the premise that non-monetary assets trade is of commercial nature and the
                   fair value of the assets traded in or out can be measured reliably, the intangible
                   assets traded in by the trade of non-monetary assets should be recognized at the
                   fair value of the assets traded out, unless any unambiguous evidence indicates
                   that the fair value of the assets traded in is more reliable; as to the
                   non-monetary assets trade not meeting the aforesaid premise, the book value of
                   the assets traded out and related taxes payable should be recognized as the cost
                   of the intangible assets traded in, with gains or losses not recognized.


                   The intangible assets obtained by the absorption and merger of an enterprise
                   under common control are recognized at the book value of the merged
                   enterprise; the intangible assets obtained by the absorption and merger of an
                   enterprise not under common control are recognized at the fair value.


                   Costs of intangible assets developed internally and independently include: the
                   costs of materials and labor services used to develop the intangible assets, the
                   registration fee, the amortization of other patents and franchise used in the
                   process of development, the interest of capitalization, and other direct expenses
                   for preparing the intangible assets for their intended use.


              (2) Subsequent measurement
                   The useful life of intangible asset is analyzed on acquisition.


                   As for intangible assets with limited useful lives, straight-line amortization
                   method is adopted in the period when the intangible assets generate economic
                   benefit for enterprise; if the period when the intangible assets generate
                   economic benefit for enterprise cannot be forecasted, the intangible assets
                   should be deemed as those with indefinite useful lives and should not be
                   amortized.




    3.15.2    Estimation of useful life of intangible assets with limited useful life

                                Item                 Estimated useful life                      Basis

               Land use right                              50 years              Validity term of land use certificate



                                       财务报表附注第 25 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              The useful lives and amortization method of intangible assets with limited useful
              lives are reviewed at the end of each period.
              Upon review, the useful lives and amortization method of the intangible assets as at
              the end of the year are not different from those estimated before.




   3.15.3     Determination basis of intangible assets with indefinite useful lives

              As at the balance sheet date, the Company has no intangible assets with indefinite
              useful lives.


     3.16     Impairment of long-term assets
        If there is any indication that the long-term assets such as long-term equity investment,
        investment properties accounted through cost pattern, fixed assets, construction in
        progress, intangible assets etc. may be impaired at the balance sheet date, an impairment
        test would be implemented. If the result of impairment test indicates the recoverable
        amounts of the long-term assets are lower than their book values, the difference between
        the recoverable amounts and book values is recognized as impairment loss, provisions for
        impairment of the long-term assets are made. The recoverable amounts of the long-term
        assets are the higher of their fair values less costs to disposal and the present values of the
        estimated future cash flows of the long-term assets. The provision for impairment is
        recognized and calculated on the individual basis. If it is difficult to estimate the
        recoverable amount of the individual asset, the Company estimates the recoverable
        amount of the asset group that the individual asset belongs to. The asset group is the
        minimum asset group which can generate cash flows independently.


        The mentioned impairment loss will not be reversed in subsequent accounting period
        once it had been recognized.


     3.17     Long-term deferred expenses
        Long-term deferred expenses are various expenses already incurred, which shall be
        amortized over current and subsequent periods with the amortization period exceeding
        one year.




                                        财务报表附注第 26 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


   3.17.1      Amortization method

             Long-term deferred expenses are evenly amortized over the beneficial period.




   3.17.2      Amortization period

                                      Item                                   Amortization period

              Hotel exterior wall decoration                                                           4 years



     3.18     Employee compensation

    3.18.1       Short-term employee benefits

               The Company recognizes, in the accounting period in which an employee provides
               service, actually occurred short-term employee benefits as a liability, with a
               corresponding charge to current profit or loss or relevant cost of assets.


               Payments made by the Company of social security contributions for employees,
               and union running costs and employee education costs provided in accordance with
               relevant requirements, in the accounting period in which employees provide
               services, is calculated according to prescribed bases and percentages of provision in
               determining the amount of employee benefits.


               Employee benefits which are non-monetary benefits are measured at fair value.




    3.18.2       Termination benefits

               When the Company cannot unilaterally withdraw the offer of termination benefits
               because of an employment termination plan or a curtailment proposal, or when the
               Company recognizes costs or expenses related to a restructuring that involves the
               payment of termination benefits (the earlier is adopted), the employee benefits
               liabilities caused by termination benefits are recognized and included in current
               profit or loss.




                                          财务报表附注第 27 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




      3.18.3     Post-employment benefits

               Payments made by the Company of basic endowment insurance and unemployment
               insurance in accordance with relevant requirements of local government, in the
               accounting period in which employees provide services, is calculated according to
               prescribed bases and percentages of provision of local requirements in determining
               the amount payable, is recognized as a liability, with a corresponding charge to
               current profit or loss or relevant cost of assets.


     3.19      Estimated liabilities
               When the Company is involved in proceedings, debt guarantees, onerous contracts
               and reorganization events, if such events may require delivery of assets or
               rendering of services in the future and the amounts of such events can be reliably
               measured, estimated liabilities are recognized.




   3.19.1      Recognition criteria of estimated liabilities

               The Company recognizes the estimated liabilities when obligations related to
               contingencies satisfy all the following conditions:
               (1) The obligation is a present obligation of the Company;


               (2) The performance of the obligation is likely to result in outflow of economic
                    benefits from the Company; and


               (3) The amount of the obligation can be measured reliably.




   3.19.2      Measurement method of estimated liabilities

               The estimated liabilities of the Company are initially measured as the best estimate
               of expenses required for the performance of relevant present obligations.


               The Company, when determining the best estimate, has had a comprehensive



                                         财务报表附注第 28 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              consideration of risks with respect to contingencies, uncertainties and the time
              value of money. If the time value of money is significant, the best estimate shall be
              determined after discounting the relevant future outflow of cash.


              The best estimate shall be accounted as follows in different circumstances:


              If there is continuous range (or interval) for the necessary expenses, and
              probabilities of occurrence of all the outcomes within this range are equal, the best
              estimate shall be determined at the average amount of upper and lower limits
              within the range.



              If there is no continuous range (or interval) for the necessary expenses, or
              probabilities of occurrence of all the outcomes within this range are unequal despite
              such a range exists, the outcomes within this range are unequally likely to occur, in
              case that the contingency involves a single item, the best estimate shall be
              determined at the most likely outcome; if the contingency involves two or more
              items, the best estimate should be determined according to all the possible
              outcomes with their relevant probabilities.


              When all or part of the expenses necessary for the settlement of an estimated
              liability of the Company is expected to be compensated by a third party, the
              compensation should be separately recognized as an asset only when it is virtually
              certain that the compensation will be received. The amount recognized for the
              compensation should not exceed the book value of the estimated liability.


     3.20     Revenue

    3.20.1     Recognition and measurement principles of revenue from sales of goods

              (1) Overall recognition and measurement principles of revenue from sales of
                   goods
                  When the Company has transferred significant risks and rewards of ownership
                  of the goods to the buyer; the Company retains neither continuous management
                  rights associated with ownership of the goods sold nor effective control over



                                      财务报表附注第 29 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                    the goods sold; the relevant amount of revenue can be measured reliably; it is
                    highly likely that the economic benefits associated with the transaction will
                    flow into the enterprise, and the relevant amount of cost incurred or to be
                    incurred can be measured reliably, revenue from sales of goods shall be
                    recognized.


              (2) Recognition criteria of revenue from selling goods and specific recognition
                    timing criteria of revenue of the Company
                    The Company provides hotel accommodation service as well as goods. After
                    the recognition of both housekeeping department and hotel reception desk, the
                    daily business report is established. The accounting department makes sure the
                    significant risks and rewards of ownership of the goods have been transferred
                    to the client, the selling revenue is recognized.


    3.20.2      Recognition and measurement principles of revenue from providing labor
services
              (1)    The hotel room service, catering (breakfast) service etc. of the Company, after
                    the hotel room service, catering (breakfast) service etc. had provided, and each
                    consumption department had checked with the receptionist, the daily business
                    report and detailed report of account receivables are established, and the
                    reports are submitted to accounting department, which recognizes the revenue
                    after examining the daily reports.


              (2)    Revenue from outsourced restaurant and site rental is recognized according to
                    contract or agreement time period and time of collecting.




   3.20.3     Recognition basis of revenue from transferring the use right of assets

              The economic benefits related to the transaction may flow into entities and the
              amount of revenue can be reliably measured. The amount of revenue from
              transferring use right of assets is recognized as follows in different circumstances:
              (1) The amount of interest income is determined by the time and effective interest
                    rate for others to use the monetary fund of the Company.


                                        财务报表附注第 30 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              (2) The amount of revenue from usage is determined according to the charging
                   time and method as agreed in relevant contract or agreement.


     3.21     Government subsidies

   3.21.1     Types

              Government subsidies are monetary assets and non-monetary assets acquired free
              of charge by the Company from the government. Government subsidies are
              classified into government subsidies related to assets and government subsidies
              related to income.



   3.21.2     Accounting treatment

              Government subsidies related to acquisition and construction of fixed assets,
              intangible assets and other long-term assets are recognized as deferred income, and
              included in non-operating income by stages within the useful life of the assets
              acquired and constructed;


              If government subsidies related to income are used to compensate the enterprise’s
              relevant expenses or losses in future periods, such government subsidies should be
              recognized as deferred income on acquisition and be included into the current
              non-operating income in the period of recognizing relevant expenses; if
              government subsidies related to income are used to compensate the enterprise’s
              relevant expenses or losses incurred, such government subsidies are directly
              included into the current non-operating income on acquisition.


 3.22    Deferred income tax assets and deferred income tax liabilities
              Deductible temporary differences are recognized as deferred income tax assets to
              the extent that it shall not exceed future taxable income possibly available to be
              against the deductible temporary difference.


              Deductible temporary differences are recognized as deferred income tax liabilities
              except in special circumstances.



                                      财务报表附注第 31 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


              Special circumstances in which deferred income tax assets or deferred income tax
              liabilities shall not be recognized include: the initial recognition of goodwill; other
              transactions or matters excluding business combinations, which affect neither
              accounting profits nor the taxable income (or deductible losses) when occurred.


              If the Company has the legal right of netting and intends to settle in net amount or
              to obtain assets and discharge liabilities simultaneously, the income tax assets and
              income tax liabilities of the Company for the current period shall be presented
              based on the net amount after offset.


              When the Company has the legal rights to balance income tax assets and income
              tax liabilities in current period with net settlement, and deferred income tax assets
              and deferred income tax liabilities are related to the income tax which imposed on
              the same taxpaying subject by the same tax collection authority or to different
              taxpaying subjects, but, in each important future period in connection with the
              reverse of deferred income tax assets and liabilities, the involved taxpaying subject
              intends to balance income tax assets and liabilities in current period with net
              settlement at the time of obtaining assets and discharging liabilities, deferred
              income tax assets and deferred income tax liabilities of the Company shall be
              presented based on the net amount after offset.


     3.23     Operating lease

   3.22.1     Accounting of leased assets

              Lease fees paid by the Company for leased asset shall be amortized at straight-line
              method over the whole lease period (including rent-free period) and shall be
              included in the current expenses. Initial direct costs related to lease transactions
              paid by the Company shall be included in the current expenses.


              If the expense related to the lease which shall be paid by the Company is assumed
              by the lessor of the asset, such expenses shall be deducted from total lease fees, and
              residual lease fees shall be amortized over the lease period and included in the
              current expenses.



                                       财务报表附注第 32 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




   3.23.2     Accounting of leasing assets

              Lease fees received by the Company from leasing assets shall be amortized at
              straight-line method over the whole lease period (including rent-free period), and
              shall be recognized as lease income. Initial direct costs related to lease transactions
              paid by the Company shall be included in the current expenses; if the amount is
              large, it shall be capitalized, and shall be included in the current income by stages
              within the whole lease period on same basis for recognition of lease income.


              If the expenses related to the lease which shall be paid by the lessee are borne by
              the Company, such expenses shall be deducted from total lease income by the
              Company, and residual lease fees shall be amortized over the lease period.



     3.24     Adjustments for changes in principal accounting policies and
estimates

   3.24.1     Adjustments for changes in accounting policies

              There are no changes in principal accounting policies for the Company during the
              reporting period.



   3.24.2     Adjustments for changes in accounting estimates

              There are no changes in principal accounting estimates for the Company during the
              reporting period.



 4 Taxation

      Major tax types and tax rates applicable to the Company

                  Taxation type                   Basis of tax assessment                  Tax rate
                                         Differential section of VAT calculated on
                                         revenue from sale of goods and service
                                                                                      5%, 6%, 11%, 17%
        Value added tax (VAT)            deduct VAT paid in current period in




                                       财务报表附注第 33 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注

                                          accordance with tax law

                                          Levy by taxable business revenue
        Business tax                                                                                    5%

        Urban maintenance and             Levy by the taxable business tax and VAT
                                                                                                        7%
        construction tax

                                          Levy by the taxable business tax and VAT
        Education surcharge                                                                             3%
                                          Levy by the taxable business tax and VAT
        Local education surcharge                                                                       2%
                                          Remaining value after deducting 30% of
                                          the original value of houses (including
        Property tax                                                                              1.2%, 12%
                                          land price), Rental income


        Land use tax                      Land area                                               18 yuan/㎡
                                          Levy by taxable income
        Enterprise income tax                                                                           25%

      Other explanation: In accordance with the “Fully Implementation of the Pilot Proposals for
      the Change from Business Tax to Value-Added Tax” (Cai Shui [2016] No.36) issued by
      Ministry of Finance and SAT, the proposals for the change from business tax to VAT will
      carry out since 1 May 2016, the Company pay the VAT with rate of 5%, 6%, 11% and 17%
      respectively for different business revenue.




5   Notes to the main items of financial statements

5.1 Monetary funds
                       Item                    Ending balance                       Beginning balance

        Cash                                                329,071.51                           273,523.86

        Bank Deposit                                      9,779,104.40                        26,936,724.15

                       Total                             10,108,175.91                        27,210,248.01


        The main reason for the decrease in bank deposits is to pay RMB 10 million to
        Luoniushan Group Co., Ltd. and pay RMB 9 million to Wuhan Aierjia Technology
        Development Co., Ltd. for the creditors’ investment.
        Other notes: The closing balance is unsecured, unfrozen or doesn’t have other restrictions
        on realization or the funds deposit in the overseas, or have potential recovery risks.




                                       财务报表附注第 34 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


5.2 Accounts receivable

5.2.1    Accounts receivable by type

                                                               Ending balance                                                          Beginning balance

                                       Book balance              Provision for bad debts                         Book balance             Provision for bad debts
                 Type                                                                           Book                                                                  Book
                                                   Proporti                        Proporti                                 Proporti                       Proporti
                                    Amount                         Amount                       Value         Amount                       Amount                     Value
                                                       on                            on                                         on                           on

        Accounts receivable

        with large single

        amount and accrued          1,466,400.49      57.13%      1,466,400.49    100.00%                    1,466,400.49   50.22%        1,466,400.49     100.00%

        for provision of bad

        debt on a single basis

        Accounts receivable

        accrued for provision
                                    1,100,308.71      42.87%        763,121.66     69.36%       337,187.05   1,453,566.38   49.78%          763,121.66     52.50%     690,444.72
        of bad debt by

        portfolio

        Accounts receivable

        with insignificant single

        amount but accrued for

        provision of bad debt


                                                                                 财务报表附注第 35 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                           Ending balance                                                          Beginning balance

                                    Book balance             Provision for bad debts                         Book balance             Provision for bad debts
                 Type                                                                       Book                                                                  Book
                                                Proporti                       Proporti                                 Proporti                       Proporti
                                 Amount                        Amount                       Value         Amount                       Amount                     Value
                                                   on                            on                                         on                           on

        on a single basis

                 Total           2,566,709.20   100.00%       2,229,522.15     86.86%       337,187.05   2,919,966.87   100.00%       2,229,522.15     76.35%     690,444.72




                                                                             财务报表附注第 36 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


      (1)       Accounts receivable with large single amount and accrued for provision of bad debt
      on a single basis as at June 30, 2017

                                                                           Ending balance
              Content of accounts
                                                           Provision for      Proportion of
         receivable (By Company)          Book balance                                          Reason for provision
                                                            bad debts         provision (%)

                                                                                               Over five years, the bill

        Sanya       Power     Supply                                                            signing expenses was
                                             775,304.98      775,304.98            100.00%
        Company                                                                                   un-collectable for

                                                                                                 personnel changes

                                                                                               Over five years, the bill

        Hainan Hong Kong & Macao                                                                signing expenses was
                                             464,563.21      464,563.21            100.00%
        International Tourism Ltd.                                                             un-collectable for bills

                                                                                                   un-recognized

                                                                                               Over five years, the bill

                                                                                                signing expenses was
        Sanya City Council reception         101,652.32      101,652.32            100.00%
                                                                                                  un-collectable for

                                                                                                 personnel changes

        LLC SOUTH CROSS
                                             124,879.98      124,879.98            100.00%
        TRAVELINN                                                                             Had declared bankruptcy

                     Total                 1,466,400.49    1,466,400.49




        (2)     Accounts receivable accrued for provision of bad debt by aging analysis method in
      portfolio:

                                                                  Ending balance
                Aging
                                     Accounts receivable         Provision for bad debts      Proportion of provision

        Within 1 year                              298,461.50


        1-2 years                                   18,633.00                       931.65             5.00%


        2-3 years                                    5,262.00                       789.30             15.00%


        3-4 years                                    6,942.00                     1,735.50             25.00%


        4-5 years                                   22,690.00                    11,345.00             50.00%



                                             财务报表附注第 37 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        More than five
                                                     748,320.21                748,320.21              100.00%
        years

                Total                              1,100,308.71                763,121.66               69.36%

       5.2.2        Situation of withdrawing or write-off for bad debts provision of accounts
                receivable in current period

               No situation of withdrawing or write-off for bad debts provision of accounts
               receivable in current period.


       5.2.3 Top five accounts receivable

                                      Relationship                                              Proportion in total

                  Name                  with the          Book balance          Aging          accounts receivable
                                                                                                       (%)
                                       Company

        Sanya Power Supply            Non related                           More than five
                                                              775,304.98                              30.21%
        Company                                                                 years
                                         party

        Hainan Hong Kong &
                                      Non related
        Macao       International                             464,563.21    More than five            18.10%
        Tourism Ltd.                     party                                  years

        LLC SOUTH CROSS               Non related
                                                              124,879.98      2-3 years               4.87%
        TRAVELINN
                                         party

        Reception       centre   of
                                      Non related
        Sanya           Municipal                             101,652.32    More than five            3.96%
        Committee                        party                                  years

        Hainan Baoping Travel         Non related                           More than five
                                                               46,798.32                              1.82%
        Agency                                                                  years
                                         party

                   Total                                     1,513,198.81                             58.95%

        5. 3 Prepayments
        5.3.1 Aging analysis of repayment
                                                 Ending balance                         Beginning balance
                  Aging
                                       Book balance            Proportion       Book balance           Proportion

        Within 1 year
                                                 38,660.36        100.00%                 58,783.23         100.00%

                   Total                         38,660.36        100.00%                 58,783.23         100.00%

                 Other explanation: prepayment including the insurance expenses, fuel costs and


                                            财务报表附注第 38 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                 book allowance etc.


        5.3.2 Top five prepayment collected by objects at ending balance
                                                                               Proportion in total
                             Name                          Book balance
                                                                                prepayment (%)

        Sunshine Property Insurance Co., LTD Hainan
                                                                   19,445.29                 50.30%
        Branch

        China Petrochemical Marketing Co. Ltd Sanya
                                                                    9,036.31                 23.37%
        Branch

        China Post Group Corporation Sanya Branch                   5,400.00                 13.97%

        Sanya Daily Office                                          4,778.76                 12.36%

                             Total                                 38,660.36                100.00%




                                         财务报表附注第 39 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


     5.4 Other receivables

    5.4.1      Other receivables by type:

                                                                      Ending balance                                                       Beginning balance

                                               Book balance              Provision for bad debts                     Book balance              Provision for bad debts
                       Type                                                                            Book                                                                 Book
                                                                                        Proportio                               Proporti                       Proportio
                                           Amount        Proportion       Amount                       Value      Amount                        Amount                       Value
                                                                                            n                                       on                            n

        Other receivables with large

        single amount and accrued                                                                                77,363,143.3
                                         77,363,143.31     98.67%      77,363,143.31     100.00%                                98.85%        77,363,143.31    100.00%
                                                                                                                            1
        for provision of bad debt on a

        single basis

        Other receivables accrued for
                                                                                                                                                                           174,103.5
        provision of bad debt by          1,045,483.05        1.33%       729,098.81      69.74%    316,384.24    903,202.33     1.15%          729,098.81      80.72%
                                                                                                                                                                                   2
        portfolio

        Other receivables with

        insignificant single amount

        but accrued for provision of

        bad debt on a single basis
                                                                                                                 78,266,345.6    100.00                                    174,103.5
                       Total             78,408,626.36    100.00%      78,092,242.12      99.60%    316,384.24                                78,092,242.12     99.78%
                                                                                                                            4        %                                             2




                                                                                财务报表附注第 40 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


       (1)       Other receivables with large single amount and accrued for provision of bad debt on a
       single basis as at period-end

               Other                                            Ending balance

        receivables (By                     Provision for     Proportion of
                            Book balance                                               Reason for provision
             Company)                         bad debts        provision

        Hainan                                                                     Over five years account age,

        Dadonghai           54,767,945.15   54,767,945.15         100.00%         un-collectable for debtor has

        Hotel Co., Ltd.                                                                 abnormal operation

        Cash dividends

        distributed in      16,899,000.00   16,899,000.00         100.00%                  un-collectable
        1994-1996

        Hainan Hong
                                                                                   Over five years account age,
        Kong & Macao
                             4,145,704.16    4,145,704.16         100.00%        un-collectable for mis-listing the
        International
        Tourism Ltd.                                                                contract income on account

        Guangdong                                                                 The bonus money before 1996,

        Jinma Tourism        1,200,494.00    1,200,494.00         100.00%      un-collectable for equity change with

        Ltd.                                                                               Shenzhen Difu

                                                                               un-collectable for the trustee fee paid

        Shareholder           350,000.00      350,000.00          100.00%      on behalf of other shareholders while

        custody fee                                                                            listing

               Total        77,363,143.31   77,363,143.31



       (2)       Other receivables accrued for provision of bad debt by aging analysis method in
       portfolio:

                                                                   Beginning balance

                    Aging                                                                     Proportion of provision
                                      Accounts receivable        Provision for bad debts
                                                                                                         (%)

        Within 1 year                            298,329.64

        1-2 years                                 18,468.00                       923.40                           5.00

        2-3 years                                    600.00                        90.00                          15.00




                                             财务报表附注第 41 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                                         Beginning balance

                    Aging                                                                            Proportion of provision
                                               Accounts receivable     Provision for bad debts
                                                                                                              (%)

        More than five years                              728,085.41                728,085.41                        100.00

                    Total                               1,045,483.05                729,098.81




        5.4.2       Provision for bad debts accrued, regain or switch back in the Period
             No provision for bad debts accrued, regain or switch back in the Period.


    5.4.3       Other receivables by fund quality

                     Fund quality                           Ending book balance                  Beginning book balance

        Original relevant companies fund
                                                                        54,767,945.15                          54,767,945.15
        accounts

        Contracting profit receivable                                    4,145,704.16                           4,145,704.16

        Distributing dividends receivable                               18,099,494.00                          18,099,494.00

        Guarantee deposit                                                  563,818.99                             563,818.99

        Advance money for custody fee                                      350,000.00                             350,000.00

        Other fund accounts                                                245,477.64                               23,114.20

        Petty money                                                          78,772.22                              78,772.22

        Utilities                                                            92,411.70                            164,165.49

        Money from invested items                                            30,500.00                              30,500.00

        Personal      social        security    、
                                                                             29,502.50                              37,831.43
        Accumulation fund

        Project funds                                                         3,700.00                               3,700.00

        Cash deposit for invoices                                             1,300.00                               1,300.00

                            Total                                       78,408,626.36                          78,266,345.64




                                                      财务报表附注第 42 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




     5.4.4       Top five other account receivables collected by arrears party at ending balance
                                                                                              Proportion in           Ending
                                           Nature of            Ending
               Company name                                                      Aging          total other       balance of bad
                                            money               balance
                                                                                               receivables        debt provision

        Hainan Dadonghai Hotel             Current                           More than
                                                          54,767,945.15                          69.85%            54,767,945.15
        Co., Ltd.                          accounts                          five years

                                         Dividends
                                        distributed
        Cash                dividends                                        More than
                                        and ought to      16,899,000.00                          21.55%            16,899,000.00
        distributed in 1994-1996                                             five years
                                              be
                                         recovered

        Hainan Hong Kong &
                                           Current                           More than
        Macao           International                       4,145,704.16                         5.29%              4,145,704.16
                                           accounts                          five years
        Tourism Ltd.

        Guangdong              Jinma                                         More than
                                         Dividends          1,200,494.00                         1.53%              1,200,494.00
        Tourism Ltd.                                                         five years

                                                                             More than
        Shareholder custody fee         Custody fee             350,000.00                       0.45%               350,000.00
                                                                             five years

                    Total                     --          77,363,143.31           --             98.67%            77,363,143.31

     5.5 Inventories

    5.5.1        Classification of inventories

                                               Ending balance                                   Beginning balance

                Item                Book           Depreciatio                                       Depreciatio
                                                                    Book value     Book balance                      Book value
                                   balance          n reserve                                         n reserve

        Stock materials           923,401.41       742,966.17       180,435.24         876,822.10    742,966.17       133,855.93

        Stock
                                   22,771.38          11,102.41      11,668.97           22,771.38    11,102.41        11,668.97
        commodities

        Food and
                                   39,315.16                         39,315.16           52,660.42                     52,660.42
        beverages

        Fuels                      21,795.68                         21,795.68           20,994.40                     20,994.40

                Total           1,007,283.63       754,068.58       253,215.05         973,248.30    754,068.58       219,179.72




                                                    财务报表附注第 43 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




    5.5.2        Inventory depreciation reserve

                                            Provision in Period          Decrease in Period
        Category of       Beginning
                                         Withdrawi                     Reversal or                      Ending balance
        inventories        balance                       Other                            Other
                                             ng                         Write-off

        Stock
                          742,966.17                                                                          742,966.17
        materials

        Stock
                             11,102.41                                                                         11,102.41
        commodities

              Total       754,068.58                                                                          754,068.58



     5.6 Non-current liabilities maturing within one year
                      Item                        Ending balance         Beginning balance                Remarks

        Long-term deferred expenses                                                                  Hotel exterior
        needed to be amortised within one                292,184.72                  584,369.42      wall
        year                                                                                         decoration

                      Total                              292,184.72                  584,369.42




        5.7     Other current assets
                                                                           Beginning                    Remarks
                       Item                       Ending balance
                                                                            balance

        Prepay corporate income tax                     1,702,702.80        1,702,702.80

        Prepay VAT                                        318,164.96          173,746.42


        Debt investment                                                                       Wuhan           Aierjia

                                                                                              Technology
                                                        9,000,000.00
                                                                                              Development        Co.,

                                                                                              Ltd.

        Total                                          11,020,867.76        1,876,449.22




                                              财务报表附注第 44 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


     5.8 Available-for-sale financial assets

    5.8.1             Available-for-sale financial assets

                                                                   Ending balance                                                 Beginning balance

                        Item                                           Provision for                                                   Provision for
                                                Book balance                               Book value         Book balance                                     Book value
                                                                       impairment                                                      impairment


        Available-for-sale debts


        Available-for-sale equity
                                                   5,000,000.00          5,000,000.00                              5,000,000.00          5,000,000.00
        instruments.

        Of which:

        Measured at fair value


        Measured at cost                           5,000,000.00          5,000,000.00                              5,000,000.00          5,000,000.00


                        Total                      5,000,000.00          5,000,000.00                              5,000,000.00          5,000,000.00




    5.8.2             Available-for-sale financial assets measured at cost at the end of the period

                                                 Book balance                                          Provision for impairment                        Shareho       Cash

                                                                                                                                                        lding        divid
                                                                                                                        Decr
                                                                                                             Incre
                                                                                                                                                       ratio in      ends
                                               Increa   Decrea                                                           ease
               Item             Beginning                                Ending            Beginning         ase in                   Ending
                                                                                                                                                       investee       in
                                               se in      se in                                                           in
                                 balance                                balance             balance          Perio                    balance
                                                                                                                                                         (%)         Peri
                                               Period    Period                                                         Perio
                                                                                                               d
                                                                                                                                                                      od
                                                                                                                          d

        Shenzhen
        Difu
        Investment &
                                5,000,000.00                            5,000,000.00        5,000,000.00                             5,000,000.00         14.28
        Development
        Ltd


              Total
                                5,000,000.00                            5,000,000.00        5,000,000.00                             5,000,000.00




      5.9             Long-term equity investments

    5.9.1             The classification of long-term equity investment is as follows:

                                                                                 Ending balance                                      Beginning balance


                                Investee                                               Provision for       Book                                Provision for        Book
                                                                  Book balance                                          Book balance
                                                                                        impairment         Value                                impairment         Value




                                                                财务报表附注第 45 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                            Ending balance                           Beginning balance


                           Investee                               Provision for   Book                      Provision for   Book
                                             Book balance                                 Book balance
                                                                  impairment      Value                     impairment      Value


        Hubei Jingsha Dadonghai Club Ltd.      4,566,207.42       4,566,207.42              4,566,207.42     4,566,207.42


        Sanya Shun’an Casino                  5,150,166.84       5,150,166.84              5,150,166.84     5,150,166.84


                            Total              9,716,374.26       9,716,374.26              9,716,374.26     9,716,374.26




                                            财务报表附注第 46 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注



    5.9.2         Details of long-term equity investment

                                                                                                                                       Remark on                        Provisi
                                                                                                        Shareholdi                                                                 Cash
                        Accoun                                                                                        Voting ratio   different ratios                   on for
                                  Investment    Beginning      Increase in   Decrease      Ending       ng ratio in                                     Provision for             dividen
            Investee      ting                                                                                        in investee    of shareholding                    impair
                                    costs         balance        Period      in Period     balance       investee                                       impairment                 ds in
                        Method                                                                                            (%)         and voting in                     ment in
                                                                                                           (%)                                                                    Period
                                                                                                                                        investee                        Period

        Hubei

        Jingsha
                                 4,566,207.42   4,566,207.42                             4,566,207.42        91.00           91.00                      4,566,207.42
        Dadonghai       Cost

        Club Ltd.       method

        Sanya

        Shun’an        Cost     5,150,166.84   5,150,166.84                             5,150,166.84        70.00           70.00                      5,150,166.84

        Casino          method

        Subtotal of
                                 9,716,374.26   9,716,374.26                             9,716,374.26                                                   9,716,374.26
        cost method




                                                                                财务报表附注第 47 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


5.10   Investment real estate
        Investment real estate by cost measurement
                                                         Houses and
                                Item                                      Land use right      Total
                                                          buildings

        I. Original book value:

        1. Beginning balance                              18,856,504.44      5,662,740.59   24,519,245.03

        2. Increase in Period

        (1) Purchase

        (2) Transfer from fixed assets\intangible
        assets

        (3) Increase in business merger

        3. Decrease in Period

        (1) Disposal

        (2) Other transfer

        4. Ending balance                                 18,856,504.44      5,662,740.59   24,519,245.03

        II. Accumulated depreciation and
        accumulated amortization

        1. Beginning balance                               9,771,216.42      2,107,046.45   11,878,262.87

        2. Increase in Period                                209,091.78         28,170.00     237,261.78

        (1) Withdraw or amortize

        3. Decrease in Period

        (1) Disposal

        (2) Other transfer

        4. Ending balance                                  9,980,308.20      2,135,216.45   12,115,524.65

        III. Depreciation reserve

        1. Beginning balance                               1,404,400.47      1,903,054.14    3,307,454.61

        2. Increase in Period

        (1) Withdraw

        3. Decrease in Period

        (1) Disposal

        (2) Other transfer

        4. Ending balance                                  1,404,400.47      1,903,054.14    3,307,454.61

        IV.Book value



                                            财务报表附注第 48 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                                      Houses and
                                   Item                                                       Land use right                Total
                                                                      buildings

        1. Book value at the end of the period                            7,471,795.77            1,624,470.00              9,096,265.77

        2. Book value at the beginning of the period                      7,680,887.55            1,652,640.00              9,333,527.55

      5.11        Fixed assets

    5.11.1        Fixed assets

                                          Buildings and                                      Electronic
                    Item                                   Machines          Vehicles                          Others          Total
                                          Constructions                                     Equipments

        I. Original book value:

                                          136,564,783.1                     2,091,322.7     2,585,268.9       1,703,389.4   156,086,235.2
             1.Beginning balance                          13,141,471.00
                                                      5                                 7                 2             5              9

             2. Increase in
                                                                             253,752.14      -16,489.74        14,423.30       251,685.70
        Period

             (1) Purchase                                                    253,752.14        6,758.12        14,423.30       274,933.56

             (2) transfer in of
                                                                                             -23,247.86                        -23,247.86
        the construction project

             (3) the increase in

        business combination

             3. Decrease in Period

                 (1) Disposal or

        scrap




                                          136,564,783.1                     2,345,074.9     2,568,779.1       1,717,812.7   156,337,920.9
             4.Ending balance                             13,141,471.00
                                                      5                                 1                 8             5              9

        II. Accumulated

        depreciation

                                                                            1,252,935.7                       1,447,909.8
             1.Beginning balance          68,185,246.92    9,092,676.08                     2,111,146.45                    82,089,914.95
                                                                                        0                               0

             2. Increase in Period         1,066,956.49     138,639.24        87,765.30       51,597.85        37,937.12     1,382,896.00


        (1) Withdraw                       1,066,956.49     138,639.24        87,765.30       51,597.85        37,937.12     1,382,896.00

             3. Decrease in Period

                 (1) Disposal or

        scrap

                                                                            1,340,701.0     2,162,744.3       1,485,846.9
             4.Ending balance             69,252,203.41    9,231,315.32                                                     83,472,810.95
                                                                                        0                 0             2



                                                     财务报表附注第 49 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                            Buildings and                                     Electronic
                    Item                                     Machines          Vehicles                         Others            Total
                                            Constructions                                     Equipments

        III.Depreciation reserve

             1.Beginning balance            31,072,788.17    2,527,851.26                                                      33,600,639.43

             2. Increase in Period


        (1) Withdraw

             3. Decrease in Period

                 (1) Disposal or

        scrap

             4.Ending balance               31,072,788.17    2,527,851.26                                                      33,600,639.43


        IV.Book value of fixed

        assets

        (1) Book value at the end                                             1,004,373.9
                                            36,239,791.57    1,382,304.42                      406,034.88      231,965.83      39,264,470.61
        of the period                                                                     1


        (2) Book value at the
                                            37,306,748.06    1,520,943.66     838,387.07       474,122.47      255,479.65      40,395,680.91
        beginning of the period


       Other explanation: no temporary idle fixed assets at end of the period, and no fixed
                 assets mortgage or guarantee


5.12 Construction in process

                                                             Ending balance                                 Beginning balance

                                                                   Provisio                                        Provision
                        Item
                                                                     n for                            Book               for         Book
                                                 Book balance                    Book Value
                                                                   impairm                           balance       impairme         Value

                                                                        ent                                              nt

        Reconstruction                    of
                                                     805,644.64                    805,644.64
        swinging pool

        Hatchway               of        the
                                                     100,000.00                    100,000.00
        sightseeing elevator

        Reconstruction                    of
                                                       46,800.00                    46,800.00
        high-voltage            metering

        cubicle

                                                       25,767.00                    25,767.00
        Reconstruction              of   fire


                                                       财务报表附注第 50 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                    Ending balance                        Beginning balance

                                                         Provisio                              Provision
                  Item
                                                          n for                       Book        for         Book
                                         Book balance                 Book Value
                                                         impairm                     balance   impairme       Value

                                                           ent                                    nt

        stair in Building A

        Total                               978,211.64                 978,211.64




     5.13       Intangible assets
                         Item                            Land use right                         Total


        I. Original book value

                                                                     81,653,137.15                      81,653,137.15
             1. Beginning balance

             2. Increase in the period

             3. Decrease in the period

                                                                     81,653,137.15                      81,653,137.15
             4. Ending balance

        II. Accumulated amortization

                                                                     30,382,276.95                      30,382,276.95
             1. Beginning balance

                                                                       406,193.58                          406,193.58
             2. Increase in the period

             3. Decrease in the period

                                                                     30,788,470.53                      30,788,470.53
             4. Ending balance

        III. Depreciation reserve

                                                                     27,440,836.84                      27,440,836.84
             1. Beginning balance

             2. Increase in the period

             3. Decrease in the period

                                                                     27,440,836.84                      27,440,836.84
             4. Ending balance

        IV. Booking value

                                                                     23,423,829.78                      23,423,829.78
             1. Ending book value

                                                                     23,830,023.36                      23,830,023.36
             2. Beginning book value



                                             财务报表附注第 51 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        Note: The provision for impairment of intangible assets was the excess of the book value
        over the marker price of the lands at Oceanside which was restricted for use under the
        plan of Sanya Municipal Government.


     5.14        Long-term deferred expenses
                                   Beginning balance                                                           Ending balance

                                                                                                                        Long-term
                               Long-term          Long-term         Increase in     Amortization      Long-term
                Item                                                                                                      prepaid
                               deferred        prepaid expenses       Period         in Period          deferred
                                                                                                                       expenses due
                               expenses        due within a year                                       expenses
                                                                                                                       within a year

      Hotel exterior
      wall coating          1,071,343.97             584,369.42                       292,184.70      1,071,343.97        292,184.72
      project

             Total          1,071,343.97             584,369.42                       292,184.70      1,071,343.97        292,184.72



     5.15        Provision for assets impairment
                                                                                       Decrease in Period
                                                    Beginning         Increase in
                        Item                                                         Revers                        Ending balance
                                                      balance           Period                     Write-off
                                                                                        al

        Provision for bad debts                    80,321,764.27                                                    80,321,764.27

        Inventory depreciation reserve                754,068.58                                                       754,068.58

        Provision for impairment of
        available-for-sale financial                 5,000,000.00                                                     5,000,000.00
        assets

        Provision for impairment of
                                                     9,716,374.26                                                     9,716,374.26
        long-term equity investments

        Provision for    impairment of
                                                   33,600,639.43                                                    33,600,639.43
        fixed assets

        Provision for impairment of
                                                   27,440,836.84                                                    27,440,836.84
        intangible assets

        Impairment        provision       of
                                                     3,307,454.61                                                     3,307,454.61
        investment real estate


                                                  财务报表附注第 52 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                                               Decrease in Period
                                            Beginning        Increase in
                       Item                                                   Revers                      Ending balance
                                              balance          Period                     Write-off
                                                                                al

                       Total               160,141,137.99                                                 160,141,137.99



     5.16      Accounts payable

        5.16.1         Details of accounts payable are as follows:

                         Item                           Ending balance                       Beginning balance

        Within 1 year (including 1 year)                            801,070.51                                 856,048.21


        1-2 years (including 2 years)                               329,718.70                                 199,317.78


        2-3 years (including 3 years)                               334,316.59                                 334,316.59


        Over 3 years                                                577,882.93                                 577,882.93


                        Total                                      2,042,988.73                               1,967,565.51

       5.16.2 Accounts payable with major amount and aging of over one year

                           Item                          Ending balance                           Reason

                                                                                     Purchase     amount        recorded
        Provisional estimation                                      719,013.26
                                                                                     without invoice issued

                           Total
                                                                    719,013.26                        /



     5.17     Accounts received in advance


    5.17.1     Accounts received in advance

                         Item                           Ending balance                       Beginning balance

        Within 1 year (including 1 year)                            625,072.93                                1,272,672.89


        1-2 years (including 2 years)                               141,408.02                                 141,408.02


        2-3 years (including 3 years)                                    65,874.80                              65,874.80


        Over 3 years                                                414,568.57                                 414,568.57


                        Total                                      1,246,924.32                               1,894,524.28



                                           财务报表附注第 53 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




     5.17.2         Accounts received in advance with major amount and aging of over one year


                                                                                             Outstanding or carry-over
                                  Item                           Ending balance
                                                                                                        reasons

        Guangzhou South Holiday International Travel
                                                                        101,244.00                 No settlement
        Service Co., Ltd. Sanya Branch

        Hainan       QiongZhong      Ecological     Investment
                                                                            31,314.00              No settlement
        Guarantee Co., Ltd.

        Beijing Yualuxincheng Management Consulting
                                                                            30,540.00              No settlement
        Co., Ltd.

        PEGAS Zheng Qingbo                                                  32,243.02              No settlement

        Sanya Public Security Fire Control Team                             19,420.88              No settlement

                                Total                                   214,761.90




      5.18          Employee compensation payable
       5.18.1       Classification of employee compensation payable

                                                                 Increase in            Decrease in          Beginning
                      Item                  Ending balance
                                                                   Period                 Period                  balance

        Short-term employee benefits              2,148,514.36   5,388,428.75            5,737,180.73         1,799,762.38


        Post-employment benefits -
                                                                   470,188.05              470,188.05
        defined contribution plans

        Termination benefits

        Other benefits due within one

        year

                      Total                       2,148,514.36   5,858,616.80            6,207,368.78         1,799,762.38




       5.18.2        Short-term employee benefits

                         Item                        Beginning       Increase in          Decrease in        Ending balance



                                             财务报表附注第 54 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                                      balance             Period           Period

        (1) Salary, bonus, allowance and
                                                     1,299,545.99       4,273,089.74     4,695,482.96       877,152.77
              subsidy

        (2) Employee welfare                                              674,073.97       674,073.97

        (3) Social insurance premium                                      222,048.79       222,048.79

        Of    which:    including:    medical
                                                                          198,783.08       198,783.08
        insurance expenses

        Work injury insurance expenses                                     10,135.79        10,135.79


        Maternity insurance                                                13,129.92        13,129.92

        (4) Housing provident funds                                        69,293.32        59,593.32         9,700.00

        (5) Labor union expenditures and
                                                       848,968.37         149,922.93        85,981.69       912,909.61
              employee education expenses

        (6) Short-term paid absences

                        Total                        2,148,514.36       5,388,428.75     5,737,180.73     1,799,762.38




       5.18.3    Details of defined contribution plans

                                                     Beginning          Increase in      Decrease in
                        Item                                                                            Ending balance
                                                       balance            Period           Period

        Basic    endowment           insurance
                                                                          455,465.02       455,465.02
        expenses

        Unemployment insurance expenses                                    14,723.03        14,723.03


                        Total                                             470,188.05       470,188.05




     5.19       Taxes and surcharges payable
                        Item                                 Ending balance                   Beginning balance

        VAT                                                                205,157.45                      228,923.41


        Individual income tax                                                                                     1.14


        Urban maintenance and
                                                                              4,842.25                       6,505.86
        construction tax

        Educational surtax                                                    2,075.24                       2,788.22


                                                 财务报表附注第 55 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                         Item                         Ending balance               Beginning balance

        Local educational surtax                                        1,383.50                  1,858.82


        Property tax                                                  199,326.91                234,032.26


        Land use tax                                                  108,590.91                108,588.06


        Stamp tax                                                                                      246.50

                                                                       18,147.74
        Security for disabled person

                                                                      539,524.00                582,944.27
                         Total

        Other explanation: in line with relevant regulation of accounting rules of business
        enterprise, the business income tax prepaid in previous at period-end will re-classified to
        other current assets for calculation


      5.20      Other payables


       5.20.1       Other payables by fund quality

                    Fund quality                     Ending balance                Beginning balance

        Fine for rule-breaking operation
                                                                                              19,810,000.00
        on the stock of the Company

        Audit fee                                                 285,003.21                     285,003.21

        Project funds                                             327,589.46                     317,277.05

        Agency fund                                                30,884.66                     139,319.74

        Quality retention money                                    35,731.15                     230,096.75

        Guarantee deposit                                         333,000.00                     350,600.90

        membership of Board director,
                                                                   40,506.98                     214,506.98
        the board of supervisors

        Personal fund accounts                                     67,918.27                      73,752.85

        Other fund accounts                                    11,144,451.10                   1,001,405.96

        Deposit and rental                                        821,158.32                     662,541.29

                         Total                                 13,086,243.15                  23,084,504.73


       Other explanation: the fine 19,810,000.00 Yuan for illegal stock operation of the Company
                        are paid to CSRC on 20 February 2017


                                           财务报表附注第 56 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        5.20.2             Other payables with large amount and aging of over one year

                                                                                                       Reason for
                     Company name                                 Ending balance                                                   Remark
                                                                                                     non-repayment

        Hong Kong Deloitte & Touche
                                                                           285,003.21                 No settlement
        LLP

        Sanya Shuxin Building
                                                                           170,000.00                 No settlement
        Waterproofing Co. Ltd

        China Building Decoration
                                                                           161,111.03                 No settlement
        Company Hannan Branch

                               Total                                       616,114.24



          5.21 Estimates liabilities

                                 Item                                          Ending balance                             Beginning balance

        Accrual the un-payment electricity
                                                                                                  1,489,685.04                       1,489,685.04
        account

                                 Total                                                            1,489,685.04                       1,489,685.04


      Other explanation: See Note IX



      5.22        Share capital
                                                                                                                                Unit: share

                                         Before this change                        Increase or decrease (+, -)                   After this change


                                                                                          Share


                                                                                          capital

                    Item                               Proporti                 Shares converte                                                  Proportio
                                         Amount                    New issue                           Others       Sub-total     Amount
                                                        on (%)                  granted   d from                                                   n (%)


                                                                                          reserve


                                                                                           fund


        1. Restricted shares              10,455,687      2.87                                                                      10,455,687         2.87


        (1) State shareholding




                                                       财务报表附注第 57 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                       Before this change                       Increase or decrease (+, -)               After this change


                                                                                       Share


                                                                                       capital

                      Item                            Proporti               Shares converte                                               Proportio
                                       Amount                    New issue                         Others       Sub-total   Amount
                                                      on (%)                 granted   d from                                               n (%)


                                                                                       reserve


                                                                                        fund


        (2) State-owned legal
                                         2,369,400       0.65                                                                 2,369,400          0.65
        person shareholding


        (3) Other domestic capital
                                         8,085,000       2.22                                                                 8,085,000          2.22
        shareholding


        Including: domestic legal
                                         7,953,000       2.18                                                                 7,953,000          2.18
        person shareholding


        Domestic natural person
                                           132,000       0.04                                                                   132,000          0.04
        shareholding


        (4) Foreign capital


        shareholding


        Including: overseas legal


        person shareholding


        Overseas natural person


        shareholding


        (5) Senior officers shares            1,287                                                                                1,287


        2. Unrestricted shares         353,644,313      97.13                                                               353,644,313         97.13


        (1) RMB ordinary shares        265,644,313      72.96                                                               265,644,313         72.96


        (2) Foreign shares listed in
                                        88,000,000      24.17                                                                88,000,000         24.17
        China


        (3) Foreign shares listed


        overseas


        (4). Others


        3. Total shares                364,100,000     100.00                                                               364,100,000     100.00


                                                      财务报表附注第 58 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




      5.23        Capital reserves
                   Item             Beginning balance     Increase in Period   Decrease in Period       Ending balance

        Capital (share capital)
                                         33,336,215.58                                                        33,336,215.58
        premium

        Other capital reserves           20,806,634.43                                                        20,806,634.43

                   Total                 54,142,850.01                                                        54,142,850.01



     5.24         Undistributed profits
                             Item                                The Period                         Last period

        Undistributed profits as at June 30, 2016                   -343,966,434.57                      -341,305,382.08

        Plus: net profit attributable to owner of
                                                                        1,719,253.80                            172,122.52
        parent company in Period

        Less: appropriation of statutory surplus
        reserves

        Appropriation of discretionary surplus

        reserve

        Appropriation of reserve funds

        Appropriation of enterprise expansion funds

        Appropriation of bonus and welfare funds

        Appropriation of general risk reserve

        Ordinary share dividends payable

        Ordinary share dividends transferred to
        share capital

        Undistributed profits as at June 30, 2016                   -342,247,180.77                      -341,133,259.56




        5.25 Operating income and operating cost

        5.25.1          Operating income and operating cost

                                                    The Period                                  Last period
                   Item
                                          Income                 Cost                  Income                  Cost


                                             财务报表附注第 59 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                               The Period                                 Last period
                  Item
                                      Income                 Cost                Income                   Cost

        Operating income             13,518,444.89          5,018,862.48       10,836,467.50            4,222,761.53


        Operating cost                1,577,828.53            237,250.03         1,226,330.10             237,261.78

                                     15,096,273.42          5,256,112.51       12,062,797.60            4,460,023.31
                  Total

Other explanation: The current operating income increased by 25.15% compared with the previous
year, of which the main operating income increased by 20.34% compared with the previous year,
mainly due to the increase of Russian tourists in the current period. The main operating costs
increased by 17.85% compared with the previous year, mainly due to the increase in food and
beverage consumption brought by the increase of passenger traffic in the report period.




    5.25.2       Primary business (by industry)

                                                 The Period                                Last period
             Name of industry
                                     Operating income       Operating cost     Operating income     Operating cost

        Tourism, catering and
                                        15,096,273.42          5,256,112.51       12,062,797.60          4,460,023.31
        service industry

                   Total                15,096,273.42          5,256,112.51       12,062,797.60          4,460,023.31




   5.25.3        Primary business (by products)

                                                  The Period                                Last period
             Name of products
                                     Operating income       Operating cost     Operating income     Operating cost

        Guest room income                11,676,662.38          4,079,275.81        9,811,796.58         3,668,041.91

        Catering and entertainment
                                          1,841,782.51           939,586.67         1,024,670.92          554,719.62
        income

        Rental income                     1,577,828.53           237,250.03         1,226,330.10          237,261.78

                    Total                15,096,273.42          5,256,112.51       12,062,797.60         4,460,023.31




                                         财务报表附注第 60 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


         5.25.4         Primary business (by region)

                                                  The Period                                  Last period
                 Name of region
                                      Operating income       Operating cost        Operating income    Operating cost

         Hainan region                   15,096,273.42          5,256,112.51          12,062,797.60         4,460,023.31

                     Total               15,096,273.42          5,256,112.51          12,062,797.60         4,460,023.31




      5.26        Business tax and surcharges
                         Item                            The Period                            Last period

         Urban maintenance and
                                                                       52,296.64                              40,719.96
         construction tax

         Educational surtax                                            37,289.14                              29,085.71


         Property tax                                                 441,630.64


         Land use tax                                                 217,184.65

                                                                        4,980.00
         Vehicle and vessel use tax

         Stamp tax                                                       863.20


         Business tax                                                                                        497,150.96

         Total                                                        754,244.27                             566,956.63


Other explanation:
1. Due to the increase of property tax, land use tax, travel tax, stamp tax and others, the Ministry
     of Finance issued Accounting Regulations for Value-added Tax (CS No. [2016] 22) on
     December 3, 2016, which reclassifies the property tax, land use tax, travel tax, and stamp tax
     generated from the business operation since May 1, 2016 to the “taxes and additional” project,
     and the taxes and dues occurred before May 1, 2016 shall not be adjusted. The comparative
     data shall not be adjusted.
2.   According to the Notice on Comprehensively Launching the Pilot of Business Tax to
     Value-added Tax (CS No.[ 2016] 36) of the Ministry of Finance and the State Administration
     of Taxation, because the business tax to value-added tax policy has been comprehensively
     launched since May 1, 2016.




                                         财务报表附注第 61 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




     5.27       Selling expenses
                         Item                          The Period                 Last period

                                                                   1,532,804.73            1,257,447.17
        Staff wages and benefits

                                                                     224,176.69                 217,223.10
        Social workers insurance expenses

        Depreciation                                                 245,942.02                 272,774.51


        Water and electricity fees                                    83,061.58                  95,815.71


        Repair charges                                                65,649.32                  57,227.50


        Other expenses                                               306,510.59                 198,547.75


        Total                                                      2,458,144.93            2,099,035.74



     5.28       Administrative expenses
                         Item                           The Period                Last period

        Staff wages and benefits                                   2,450,309.99             2,069,711.09

                                                                     325,482.11                 250,843.95
        Social workers insurance expenses

        Taxes                                                                                   646,738.02


        Business entertainment                                       402,028.00                 295,348.47


        Travel expenses                                               97,189.95                  87,737.20


        Social labor insurance premium                               406,193.58                 406,193.58


        Other expenses                                             1,408,246.94             1,232,871.46


                         Total                                     5,089,450.57             4,989,443.77




     5.29       Financial expenses
                         Type                           The Period                Last period

        Interest expenses

        Less: interest income                                       -204,780.17                 -258,930.94

        Gains or losses on exchange

        Handling charges                                              24,107.51                  54,178.40



                                            财务报表附注第 62 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                          Total                                    -180,672.66                       -204,752.54



     5.30        Losses on assets impairment
                          Item                           The Period                       Last period

        Losses on bad debt

        Losses on inventory depreciation

        Losses on impairment of other

        current assets

        Losses on impairment of

        long-term equity investments

        Loss on fixed asset impairment

        Loss on intangible asset

        impairment

                          Total

        Other explanation: there no loss of impairment of fix assets occurred in the period and last
        period


     5.30        Non-operating income

      Non-operating income by items

                                                                                   Amount included in current
                     Item                   The Period            Last period
                                                                                  non-recurring profits or losses

        Total gains on disposal of

        non-current assets

        Including: gain on disposal

        of fixed assets

        Gain on disposal of

        intangible assets

        Income from compensation                                      64,926.00


        Others                                      260.00            12,480.00


                     Total                          260.00            77,406.00


                                           财务报表附注第 63 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注




      5.32       Notes to statement of cash flow

        5.32.1      Other cash receipts related to operating activities

                             Item                          The Period            Last period

        Compensation for articles in the guest
                                                                                           77,406.00
        rooms

                                                                   204,780.17             258,930.94
        Interest income

                                                                   472,635.21             209,424.79
        Other income

                                                                   677,415.38             545,761.73
        Total




        5.32.2      Cash paid for other operating activities

                             Item                          The Period            Last period

        Business entertainment expenses                            402,028.00             295,848.47


        Audit fee                                                  400,000.00             390,000.00


        Announcement fee                                            60,000.00              60,000.00


        Traveling expenses                                         109,715.87              95,971.20


        Promotion expenses                                          21,162.60                  5,312.00


        Repair charge                                              100,191.70              71,380.30


        Directors and supervisors membership dues                  354,000.00             234,000.00


        Others                                                     690,202.00             394,368.26


        Total                                                     2,137,300.17          1,546,880.23




        5.32.3 Cash received with other financing activities concerned

                             Item                          The Period            Last period

                                                                 19,810,000.00
        LUONIUSHAN Group Co. Ltd.

        Total                                                    19,810,000.00




                                          财务报表附注第 64 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        5.32.4 Cash paid for other financing activities

                            Item                                   The Period                      Last period

       LUONIUSHAN Group Co. Ltd.                                          10,000,000.00

       CSRC                                                               19,810,000.00

        Total                                                             29,810,000.00




     5.33       Supplementary information to statement of cash flows

    5.33.1      Supplementary information to statement of cash flows

                                      Item                                       The Period             Last period

        (1) Net profit adjusted to cash flows from operating activities

        Net profit                                                                  1,719,253.80             172,122.52


        Plus: provision for asset impairment

        Depreciation of fixed assets, gas and oil assets and productive
                                                                                    1,591,987.78           1,764,713.08
        biological assets

        Amortization of intangible assets                                             434,363.58             434,363.58


        Amortization of long-term deferred expenses                                   292,184.70             266,250.00


        Loss on disposals of fixed assets, intangible assets and other

        long-term assets ("-" for gains)

        Loss on write-off of fixed assets ("-" for gains)

        Losses from the changes in fair value ("-" for gains)

        Financial expenses ("-" for gains)

        Investments loss ("-" for gains)

        Loss from debts restructuring ("-" for gains)

        Decrease in deferred income tax assets ("-" for increases)

        Increase in deferred income tax liabilities ("-" for decreases)

        Decrease in inventories ("-" for increases)                                   -34,035.33             -17,511.97


        Decrease in operating receivables ("-" for increases)                         159,732.97            -290,307.05


        Increase in operating payables ("-" for decreases)                           -932,414.40            -875,932.72


                                             财务报表附注第 65 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                         Item                              The Period            Last period

        Others (Projected liabilities)

        Net cash flows from operating activities                               3,231,073.10        1,453,697.44


        2. Significant investing and financing activities not involving

        cash receipts and payments

        Conversion of debt into capital

        Convertible corporate bonds maturing within one year

        Fixed assets under financial lease

        3. Net changes in cash and cash equivalents

        Ending balance of cash                                               10,108,175.91        11,825,290.70


        Less: Beginning balance of cash                                      27,210,248.01        19,782,392.26


        Plus: Ending balance of cash equivalents

        Less: Beginning balance of cash equivalents

        Net increase in cash and cash equivalents                            -17,102,072.10        -7,957,101.56




         5.33.2       Breakdowns of cash and cash equivalents:

                                         Item                             Ending balance      Beginning balance

        1. Cash                                                               10,108,175.91       27,210,248.01


        Including: cash on hand                                                  329,071.51          273,523.86


        Bank deposit available for payment at any time                         9,779,104.40       26,936,724.15


        Other monetary funds available for payment at any time

        Deposits in the central bank available for payment

        Deposits with banks and other financial institutions

        Loans to banks and other financial institutions

        2. Cash equivalents

        Including: Bond investment due within three months

        3. Ending balance of cash and cash equivalents                        10,108,175.91       27,210,248.01




                                                财务报表附注第 66 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


   6Business combination and consolidated financial statements


      6.1     Scope of consolidation (aggregation) of financial statements
        The scope of consolidation (aggregation) of financial statements covers the headquarter
        of the Company and the subsidiary South China Grand Hotel of Hainan Dadonghai
        Tourism Center (Holdings) Co., Ltd., which is subject to independent accounting.


      6.2    Changes in scope of consolidation (aggregation) of financial
        statements:
        There is no change in scope of consolidation (aggregation) of the financial statements of
        the Company in the year.




   7 Risks relating to financial instruments


        The Company faces a variety of financial risks in business process: credit risk, market
        risk and liquidity risk. The Company’s Board of Directors is overall responsible for risk
        management objectives and determining policies, and bears the ultimate responsibility for
        risk management objectives and policies, but the board has authorized the Company’s
        enterprise management department to design and executive the procedure which could
        guarantee the effective implementation of risk management objectives and policies. The
        Company’s internal auditors will audit the policies and procedures of risk management as
        well, and will report the discovery to Audit Committee.
        The overall objective of the Company’s risk management is to set the risk management
        policies to reduce risks as possible without giving excessive influence to competitiveness
        and strain capacity of the Company.


      7.1     Credit risk
        Credit risk is the risk of financial loss on one party of a financial instrument due to the
        failure of another party to meet its obligations. The Company mainly faces credit risk
        generated from customers through credit sales. The Company will understand and assess
        the credit risk of the new customer before signing the new contract. The Company makes
        credit rating for existing customers and aging analysis of accounts receivable to ensure
        the Company’s overall credit risk falls within a controllable range.



                                       财务报表附注第 67 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


        7.2          Market risk
         Market risk is the risk of financial instruments’ fair value and future cash flow
         fluctuating due to change of market price, including currency risk, interest risk and
         other pricing risk.


        7.3          Liquidity risk
         Liquidity risk is the risk that an enterprise may encounter deficiency of funds in
         fulfilling the obligations when paying cash or settle in way of other financial assets.
         The policy of the Company is to ensure there are enough cash to pay back mature
         debts. The liquidity risk is centralized controlled by the Company’s accounting
         department. The accounting department ensures the Company to possess enough cash
         to pay back the debts in all reasonable foreseeable circumstances through monitor the
         balance of cash, monitor the securities that can be converted into cash at any time and
         rolling forecasts of future cash flows in twelve months.




   8 Related parties and related party transactions


  8.1      The largest shareholder of the Company

                                                                                           Registered                                           Ultimate
          Name of      Relationship                                             Nature                  Shareholding
                                      Business   Registered       Legal                     Capital                       Voting ratio in the   controller
           parent        with the                                                 of                     ratio in the
                                       Type        place      representative                 (RMB                           Company (%)           of the
          company       Company                                                Business                 Company (%)
                                                                                             0’000)                                            Company


                                                                                                                                                Hainan
                                                                               Plant
                                                                                                                                                LuoNiu
         Luoniushan    The largest    Listed     Haikou                        and
                                                              Xu Zili                      115,151.00             16.90                 16.90   Shan
         Co., Ltd.     shareholder    company    City                          culturing
                                                                                                                                                Holding
                                                                               business
                                                                                                                                                Group


         Note: As of June 30, 2016, Luoniushan Co., Ltd., as the largest shareholder, held
         61,515,400 shares (16.90% of the total share capital of the Company).




                                                    财务报表附注第 68 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


   8.2     Related party transactions


       8.2.1     Sale of goods/rendering of labor services

                                Contents         Pricing method               The Period                        Last period

                                of related             and                              Proportion                      Proportion
           Related party            party        decision-making                         in similar                     in similar
                                                                        Amount                             Amount
                                transactio        procedure of                          transactions                   transaction
                                     ns         related transaction                         (%)                           s (%)

           Luoniushan           Accommo
                                                  Market price         252,303.00            1.67%         20,672.00          0.17%
          Co., Ltd.                  dation



       8.2.2     Receivables and payables of related parties

                      Name                      Related party                Ending balance                  Beginning balance

         Accounts receivable              Luoniushan Co., Ltd.                            51,896.00                      10,668.00




       8.2.3     Remuneration of key management

                             Name                            The Period (RMB ’0,000)                 Last period (RMB ’0,000)

          Remuneration of key management                                            73.15                                     64.58




   9      Contingencies


          At May 26,2016,the Company received lawyer’s letter of Hainan Yunfan law firm which
          is entrusted by Hainan Power Grid Co., LTD Sanya Power Supply Bureau (hereinafter
          referred to as the "Sanya Power Supply Bureau"), the letter claims that Sanya Power
          Supply Bureau found that the Company’s subsidiary South China Grand Hotel of Hainan
          Dadonghai Tourism Center (Holdings) Co., Ltd’s the amount of CT is different with its
          marketing management system record. The inconformity time is July, 2006, and the
          hotel’s CT is changing on April, 2016. Therefore, undercounted electricity consumption
          amount is 10,313,373.00 kilowatt-hours, and estimated cost is 7,200,165.75 Yuan as

                                                  财务报表附注第 69 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


          various electricity prices and charges.


          According to the file “Law Advisory Opinion about Retroactive Power (Charge) Dispute
          between South China Grand Hotel and Sanya Power Supply Bureau” issued by Beijing
          Junhe (Haikou) Law Firm at December 20, 2016, which claims that Sanya Power Supply

          Bureau has responsibility for CT to purchase, install, enseal, unseal and change, therefore,
          the responsibility of the guilty party for undercounted electricity consumption of South
          China Grand Hotel is Sanya Power Supply Bureau. According to the one hundred and

          thirty-five item of “General Rule of Civil Law”, this item claims that limitation of action
          is two years if accuser request people's court’s protection, except situations provided by
          law. The Company has withheld the undercounted electricity consumption cost in 2016
          which is about 1,489,685.04 Yuan during the period from April, 2014 to April, 2016.




   10      Commitments


    There are no commitments required to be disclosed by the Company.




   11      Notes to other significant events


   11.1     Correction of accounting errors in previous period
          11.1.1 Retrospective restatement method
          There is no correction of accounting errors using retrospective restatement method in
          previous period.


           11.1.2 Prospective application method

          There is no correction of accounting errors using prospective application method in previous period



   11.2     Others
In accordance with the requirements of the Regulatory Guidelines of Listed Companies No. 4 -
Actual Controller, Shareholders, Related Parties, Purchaser and Commitments and Fulfillment of
Listed Companies (CSRC Announcement No. [2013] 55) of China Securities Regulatory
Commission, on June 7, 2014, Luoniushan Co., Ltd. (hereinafter referred to as “Luoniushan”) sent

                                             财务报表附注第 70 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


out the Letter about Changing the Commitments of Luoniushan Co., Ltd. to Hainan Dadonghai
Tourism Centre (Holdings) Co., Ltd. to the Company, and made commitments that Luoniushan
shall actively seek reorganization party to reorganize the assets of Dadonghai within three years
from the date the Company’s general meeting of shareholders considered and approved this
commitment. The above matters have been considered and approved by the general meeting of
shareholders of Dadonghai on June 27, 2014.
On February 22, 2017, the company received the Letter about the Progress of Planning and
Preparing for the Fulfillment of Commitments from the largest shareholder Luoniushan,
Luoniushan planned to transfer 100% equity stake it held in the wholly-owned subsidiary -
Industrial Corporation (thereinto, Industrial Corporation shall firstly plan to accept the transfer of
some equity stake of financial assets held by Luoniushan, tentatively confirmed as 6.91% equity
stake of Sanya Rural Commercial Bank, which is subject to the transaction object confirmed by
ultimate negotiation) to the Company, the means of transaction is expected to be cash offer, and
the transaction amount is approximately RMB 300 million. At present, the work is being
promoted.




  13      Supplementary information


       13.1     Details of current non-recurring profits and losses
                                          Item                                    The Period   Introduction

         Profits or losses from disposal of non-current assets

         Tax refunded, reduced or exempted with unauthorized approval or

         without formal documents of approval

         Government subsidies included into current profits and losses (other

         than government subsidies related closely to enterprise business and

         granted by quota or quantity according to national unified standard)

         Fund occupancy expenses collected from non-financial enterprises

         and accounted into current profit and loss

         Gains from differences between the investment costs of acquiring of

         subsidiaries, joint ventures or associates and the share of fair value


                                              财务报表附注第 71 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                          Item                                   The Period   Introduction

        of identifiable net assets of the investees at such investment

        Gains or losses from non-monetary assets exchange

        Gains or losses from commissioned investment or management on

        assets

        Provisions for asset impairment due to force majeure, such as

        natural disasters

        Gain or loss from debt restructuring

        Enterprise reorganizing expenses, such as employee

        accommodation costs and integration expenses

        Gains or losses from excess over fair value due to obvious unfair

        transaction price

        Current net gains or losses of subsidiaries acquired through business

        combination under common control from the beginning of current

        period till the date of consolidation

        Gains or losses incurred by contingencies irrelevant to the

        Company’s normal business

        Gains or losses from changes in fair value of financial assets or

        liabilities held for trading, as well as investment income from

        disposal of financial assets or liabilities held for trading and

        available-for-sale financial assets, other than those in valid hedging

        businesses related to the Company’s normal businesses

        Reversal of provisions for impairment of accounts receivable tested

        for impairment independently

        Gains or losses from external consigned loans

        Gains or losses from external consigned loans

        Effect on current profit and losses of one-off adjustments for current

        profit and loss in accordance with the requirements of laws and

        regulations regarding taxation or accounting

        Trustee fee obtained from entrusted operations


                                                财务报表附注第 72 页
海南大东海旅游中心股份有限公司
2017 年半年度财务报告
财务报表附注


                                          Item                                   The Period          Introduction

        Other non-operating income and expense other than the

        abovementioned ones

        Effect of income tax

        Effect of minority interest (after tax)

                                         Total



     13.2       Return on net assets and earnings per share

                                                            Weighted average          Earnings per share (RMB)

                Profit during the reporting period            return on net     Basic earnings      Diluted earnings
                                                                assets (%)        per share            per share

        Net profits attributable to ordinary shareholders
                                                                 2.29%                0.0047            0.0047
        of the Company

        Net profits attributable to ordinary shareholders

        of the Company after deduction of non-recurring          2.29%                0.0047            0.0047

        profits or losses




     13.3       Accounting difference between IFRS and CAS
        There are no accounting differences between IFRS and CAS.




                                      HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD
                                                                      17August 2017




                                              财务报表附注第 73 页