Stock Code: 000613, 200613 Short Form of the Stock: Donghai-A, Donghai-B 海南大东海旅游中心股份有限公司 Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2016 (FULL-TEXT) Date of disclosure: 22 October 2016 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Section I. Important Notes Board of Directors and the Supervisory Committee of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. All directors of the Company are attended the Meeting for quarterly report deliberation. Principal of the Company Li Yuanbin, Person in Charge of Accounting Works Fu Zongren and Person in Charge of Accounting Organ (Accounting Officer) Fu Zongren hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 2 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Section II. Main accounting data and changes of shareholders I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not □Yes √ No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 102,427,061.83 104,887,596.60 -2.35% Net assets attributable to shareholders of listed company 75,273,970.28 76,937,467.93 -2.16% (RMB) Increase/decrease in Increase/decrease in Current Year-begin to end comparison with same comparison with year-begin period of the Period period of last year to Period-end of last year Operating revenue (RMB) 3,582,335.33 26.14% 15,645,132.93 38.93% Net profit attributable to shareholders of the listed company -1,835,620.17 39.90% -1,663,497.65 74.19% (RMB) Net profit attributable to shareholders of the listed company -1,835,620.17 40.51% -1,740,903.65 77.92% after deducting non-recurring gains and losses(RMB) Net cash flow arising from operating -- -- 1,310,384.68 736.86% activities(RMB) Basic earnings per share -0.0050 40.48% -0.0046 74.01% (RMB/Share) Diluted earnings per share -0.0050 40.48% -0.0046 74.01% (RMB/Share) Weighted average ROE -2.41% 35.90% -2.19% 72.42% In RMB Amount from year-begin to Item Note end of the Period Other non-operating income and expenditure except for the 77,406.00 Main of compensation income aforementioned items Total 77,406.00 -- Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to 3 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons □ Applicable √ Not applicable In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss. II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period 1. Number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders In share Total preference shareholders Total common shareholders in reporting period-end 19,807 with voting rights recovered 0 at end of reporting period Top ten shareholders Proportion Amount Amount of Number of share Shareholders Nature of shareholder of shares of shares restricted shares pledged/frozen held held held State of share Amount Domestic non 61,515,3 Luoniushan Co., Ltd. state-owned 16.90% 0 70 corporate Domestic nature 30,879,7 Pan Guoping 8.48% 0 person 91 Domestic nature 9,629,03 Li Qingsong 2.64% 0 person 1 9,585,09 First Shanghai Securities Limited Foreign corporate 2.63% 0 8 Domestic non Yangpu Tongrong Investment Management 4,618,80 state-owned 1.27% 0 Consultation Co., Ltd. 0 corporate HGNH International Asset Management 3,441,00 Foreign corporate 0.95% 0 Co., Ltd – Client’s capital 2 3,265,20 CITRINE CAPITAL LIMITED Foreign corporate 0.90% 0 0 Domestic nature 2,888,69 Sun Huiming 0.79% 0 person 0 2,704,93 China Everbright Securities (HK) Limited Foreign corporate 0.74% 0 0 Sanya Zhongxing Development Company Domestic non 0.70% 2,541,00 2,541,000 4 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 state-owned 0 corporate Particular about top ten shareholders with un-restrict shares held Amount of unrestricted Type of shares Shareholders’ name shares held at reporting Type Amount period-end Luoniushan Co., Ltd. 61,515,370 RMB ordinary shares 61,515,370 Pan Guoping 30,879,791 Domestically listed foreign shares 30,879,791 Li Qingsong 9,629,031 RMB ordinary shares 9,629,031 First Shanghai Securities Limited 9,585,098 Domestically listed foreign shares 9,585,098 Yangpu Tongrong Investment Management 4,618,800 RMB ordinary shares 4,618,800 Consultation Co., Ltd. HGNH International Asset Management Co., Ltd – 3,441,002 RMB ordinary shares 3,441,002 Client’s capital CITRINE CAPITAL LIMITED 3,265,200 Domestically listed foreign shares 3,265,200 Sun Huiming 2,888,690 Domestically listed foreign shares 2,888,690 China Everbright Securities (HK) Limited 2,704,930 Domestically listed foreign shares 2,704,930 Sanya Rural Credit Cooperatives 2,310,000 RMB ordinary shares 2,310,000 The Company is unknown whether there exists associated relationship or Explanation on associated relationship among the belongs to the consistent actor regulated by the Management Measure of aforesaid shareholders Information Disclosure on Change of Shareholding for Listed Company among the other shareholders. Explanation on shareholders involving margin business N/A about top ten common shareholders Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period □ Yes √ No Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in reporting period. 2. Total of shareholders with preferred stock held and the top ten shareholdings □Applicable √Not applicable 5 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Section III. Important events I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable Item Closing balance Opening balance Changes Reasons (or Amount at (or Amount at (%) the period) last period) Monetary funds 11,592,142.99 19,782,392.26 -41.40% Borrowing the creditor’s rights investment Account paid in advance 147,971.35 42,358.16 249.33% The foreground system account paid for the Westsoft Other account receivable 402,327.73 211,946.37 89.83% Borrowing come-and-go money Non-current assets maturing 133,125.00 532,500.00 -75.00% The long-term amortization in one year are amortized within one year Other current assets 9,000,000.00 100.00% Borrowing the creditor’s rights investment Operating cost 221,054.05 128,520.40 72.00% Due to the growth of revenue in restaurant Taxes and additional 19,645.92 159,035.25 -87.65% Changes in listing of the operation revenue and tax&surcharge due to the implementation of “Replace the business tax with a VAT” Financial expenses 9,605.70 -25,670.65 137.42% The interest income for the deposit decreased in the period Non-business income 0.00 31,911.00 -100.00% There are no indemnity income occurred in the Period Net profit -1,835,620.17 -3,054,236.00 39.90% Revenue in the Period increased, and expenseses declined Net cash flow arising from 1,310,384.68 -205,755.73 736.86% Revenue in the Period increased, and expenseses operating activities declined Cash paid for purchasing fixed 500,633.95 1,352,943.00 -63.00% Transformation and renovation of the business facilities assets, intangible assets and other are decreased over that of last period long-term assets II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable 1. As for the Lawyer’s Letter, found more in the Notice of Receiving the Lawyer’s Letter (Notice No.: 2016-016) released in Securities Times, Hong Kong Commercial Daily and Juchao Website dated 31 May 2016. The Company was deeply investigated to confirm and communicate with the Sanya Power Supply Bureau through friendly consultations. And more progress shall be disclose in line with the abligation of information disclosure. 2. On 28 June 2012, the Company-South China Hotel entered into a Lease Contract with nature person Peng Guoxing. According to the Contract, the Chinese restaurant (including the beach restaurant) of South China Hotel rent to Peng Guoxing for term of 4 years (From 1 July 2012 to 30 April 2016) and with 1.8 million Yuan / Year for the rental. Due to the industry downturn in catering 6 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 services, Chinese Restaurant suspense of business. For the purpose of vitalized the restaurant, the Chinese restaurant shall be separated. On 1 September 2014, another Lease Contract signed between the South China Hotel and Peng Guoxing. The beach restaurant of South China Hotel (including sea food house, former beach mall, Qifeng Ge and Dishes House) rent to Peng Guoxing for one and a half year (From 1 September 2014 to 30 April 2016) with rental of 1.8 million Yuan /Year. The assets rent-out constitute no related transactions. The abatement contracts have implemented in line with the Contract without any violations between two parties. As the downturn in catering services, rent out the assets benefit a lost in improving assets utilization efficiency for increasing revenue of the Company. There are no adverse effect on financial and operation of the Company arising from the above mentioned transactions and no interest of the Company has been ruined. The rent-out assets were recognized as temporary building with risks of disposing, then failed to make a specific disclosure timely. In later operation, the Company will strength management, strictly in line with relevant regulations and rules, earnestly fulfill information disclosure obligation timely. Date for Information index for temporary Overview disclosure report disclosure In electricity verification from Sanya Power Supply Bureau, the current transformer (CT) in measuring counters decorated in switch board room of South China Hotel have different record with the files in marketing management system of Sanya Power Supply Bureau (site’s record of the CT transformation ratio was 75/5 The Notice of Receiving the 1500times; marketing system CT transformation ratio was 40/5 800times). The Lawyer’s Letter (Notice No.: inconsistent time was from the July 2006, when the Hotel change its electricity 2016-016) released in Securities 2016-05-31 meters to April 2016. By means of statistics, the understatement power counted as Times, Hong Kong Commercial 10313373 KWH. South China Hotel is required to contact Sanya Power Supply Daily and Juchao Website dated 31 Bureau as soon as possible or come to an agreement by two parties. Sanya Power May 2016 Supply Bureau has the rights to filed at the People’s Court, one that has jurisdiction, investigate for responsibility for breach of contract, and retain the right to supplying power service to South China Hotel. III. Commitments that the company, shareholders, actual controller, purchaser, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period √ Applicable □Not applicable Com Commi Accepte mitme Commitments Type Contents tment Implementation r nt time period On May 30, 2007, Luoniushan Co., Ltd. made Since the Company's commitments in the Company’s "Instructions for implementation of reform reform of non-tradable shares" (Revision) and of non-tradable shares, the Luonius "Instructions for reform of non-tradable shares" 2014-0 In 3 Company has avoided the Share Merger Reform han Co., Other (Abstract of revision) that in view of Dadonghai 6-27 years risk of delisting and Ltd. Company’s losses in successive years and on the improved the financial verge of delisting, in order to reverse the company's situation accordingly with business difficulties, improve profitability and recover efforts of all parties. Up to 7 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 the continuous business capacity, Luoniushan Co., now, Luoniushan Co., Ltd. Ltd., the controlling shareholder of Dadonghai has not found the Company made commitments to actively seek appropriate restructuring restructuring parties to reorganize the assets of parties for the company’s Dadonghai Company at the appropriate time. reorganization. Commitments in report of acquisition or equity change Commitments in assets reorganization Commitments make in initial public offering or re-financing Equity incentive commitment Based on the confidence in the future sustainable development of Dadonghai, as well as the long-term investment value of domestic capital market, Luoniushan Co., Ltd. shall take practical action and comm participate in maintaining the capital market stability. itment In accordance with the relevant provisions of China s of Securities Regulatory Commission and Shenzhen With Luonius increa Stock Exchange, Luoniushan Co., Ltd. plans to take Other commitments for 2015-0 6 medium and small han Co., sing chances to increase holding of shares in Dadonghai Completed shareholders 7-10 month Ltd or through Shenzhen Stock Exchange within six months s decrea from the date of this announcement, the amount of sing increased holding of shares should be no less than shares RMB 5 million yuan, and does not automatically reduce holding of shares in Dadonghai during the increased holding period, within six months after the increased holding of shares and within the legal time limit. Completed on Yes time(Y/N) If the commitments is not fulfilled on time, shall explain the N/A specify reason and the next work plan 8 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 IV. Estimation of operation performance for year of 2016 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason □Applicable √Not applicable V. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. VI. Particular about security investment □ Applicable √ Not applicable The Company had no security investment in Period. VII. Registration form of receiving research, communication and interview in the report period √ Applicable □Not applicable Time Way Type Basic situation index of investigation Telephone Investor Ms./Mr. Wang from Beijing, consultation of operation condition and 2016-07-08 communica Individual disclosure time of the semi-annual report, no information required tion Telephone Investor Ms./Mr. Jiang from Hangzhou, consultation of recombination commitment 2016-07-22 communica Individual of the largest shareholder, no information required tion Telephone Investor Ms./Mr. Wang from Shenzhen, consultation of progress of the 2016-08-09 communica Individual understatement electricity, no information required tion Telephone Investor Ms./Mr. Yuan from Hunan, consultation of operation condition, no 2016-08-25 communica Individual information required tion Telephone Investor Ms./Mr. Liu from Shanghai, consultation of hotel operation condition, no 2016-09-12 communica Individual information required tion Telephone Investor Ms./Mr. Zhang from Jiling, consultation of operation condition and 2016-09-30 communica Individual disclosure time of the 3Q report, no information required tion 9 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 VIII. Guarantee outside against the regulation □Applicable √Not applicable The Company had no guarantee outside against the regulation in the reporting period. IX. Non-operational fund occupation from controlling shareholders and its related party □ Applicable √ Not applicable The Company had no non-operational fund occupation from controlling shareholders and its related party. 10 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Section IV. Financial Statement I. Financial statement 1. Balance Sheet Prepared by Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. 2016-09-30 In RMB Items Balance at period-end Balance at period-begin Current assets: Monetary funds 11,592,142.99 19,782,392.26 Settlement provisions Capital lent Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes receivable Accounts receivable 497,733.21 460,197.28 Accounts paid in advance 147,971.35 42,358.16 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable Dividend receivable Other receivables 402,327.73 211,946.37 Purchase restituted finance asset Inventories 209,470.88 218,075.43 Divided into assets held for sale Non-current asset due within one year 133,125.00 532,500.00 Other current assets 9,000,000.00 Total current assets 21,982,771.16 21,247,469.50 Non-current assets: Loans and payments on behalf 11 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Finance asset available for sales 4,500,000.00 4,500,000.00 Held-to-maturity investment Long-term account receivable Long-term equity investment Investment property Fixed assets 48,735,695.52 51,279,986.58 Construction in progress Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 25,699,845.15 26,351,390.52 Expense on Research and Development Goodwill Long-term expenses to be apportioned 1,508,750.00 1,508,750.00 Deferred income tax asset Other non-current asset Total non-current asset 80,444,290.67 83,640,127.10 Total assets 102,427,061.83 104,887,596.60 Current liabilities: Short-term loans Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable Accounts payable 2,220,253.46 2,415,602.37 Accounts received in advance 1,010,616.49 1,153,854.95 Selling financial asset of repurchase Commission charge and commission payable Wage payable 1,655,492.19 2,150,364.40 12 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Taxes payable -1,320,036.19 -1,422,221.33 Interest payable Dividend payable Other accounts payable 23,586,765.60 23,652,528.28 Reinsurance payables Insurance contract reserve Security trading of agency Security sales of agency Divided into liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 27,153,091.55 27,950,128.67 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable Long-term wages payable Special accounts payable Projected liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 27,153,091.55 27,950,128.67 Owner’s equity: Share capital 364,100,000.00 364,100,000.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 54,142,850.01 54,142,850.01 Less: Inventory shares Other comprehensive income 13 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Reasonable reserve Surplus public reserve Provision of general risk Retained profit -342,968,879.73 -341,305,382.08 Total owner’s equity attributable to parent 75,273,970.28 76,937,467.93 company Minority interests Total owner’s equity 75,273,970.28 76,937,467.93 Total liabilities and owner’s equity 102,427,061.83 104,887,596.60 Legal representative: Li Yuanbin Person in charge of accounting works: Fu Zongren Person in charge of accounting institution: Fu Zongren 2. Profit Statement (this report period) In RMB Amount in this Amount in last Item period period I. Total operating income 3,582,335.33 2,839,915.00 Including: Operating income 3,582,335.33 2,839,915.00 Interest income Insurance gained Commission charge and commission income II. Total operating cost 5,475,329.67 5,925,835.00 Including: Operating cost 221,054.05 128,520.40 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Operating tax and extras 19,645.92 159,035.25 Sales expenses 2,955,187.37 3,238,085.45 Administration expenses 2,269,836.63 2,425,864.55 Financial expenses 9,605.70 -25,670.65 Losses of devaluation of asset Add: Changing income of fair value(Loss is listed with “-”) 14 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture Exchange income (Loss is listed with “-”) III. Operating profit (Loss is listed with “-”) -1,892,994.34 -3,085,920.00 Add: Non-operating income 31,911.00 Including: Disposal gains of non-current asset Less: Non-operating expense 227.00 Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with “-”) -1,892,994.34 -3,054,236.00 Less: Income tax expense -57,374.17 V. Net profit (Net loss is listed with “-”) -1,835,620.17 -3,054,236.00 Net profit attributable to owner’s of parent company -1,835,620.17 -3,054,236.00 Minority shareholders’ gains and losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of 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. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income -1,835,620.17 -3,054,236.00 Total comprehensive income attributable to owners of parent Company -1,835,620.17 -3,054,236.00 15 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Total comprehensive income attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share -0.0050 -0.0084 (ii) Diluted earnings per share -0.0050 -0.0084 Legal representative: Li Yuanbin Person in charge of accounting works: Fu Zongren Person in charge of accounting institution: Fu Zongren 3. Profit statement (year-begin to end of this period) In RMB Item Current Period Last Period I. Total operating income 15,645,132.93 11,261,211.50 Including: Operating income 15,645,132.93 11,261,211.50 Interest income Insurance gained Commission charge and commission income II. Total operating cost 17,386,036.58 18,978,046.04 Including: Operating cost 775,773.67 399,824.29 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Operating tax and extras 586,602.55 630,627.87 Sales expenses 8,931,356.80 9,377,913.92 Administration expenses 7,287,450.40 8,825,024.81 Financial expenses -195,146.84 -89,145.39 Losses of devaluation of asset -166,199.46 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) Including: Investment income on affiliated company and joint venture Exchange income (Loss is listed with “-”) III. Operating profit (Loss is listed with “-”) -1,740,903.65 -7,716,834.54 16 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Add: Non-operating income 77,406.00 1,272,934.50 Including: Disposal gains of non-current asset Less: Non-operating expense 2,302.60 Including: Disposal loss of non-current asset 2,075.60 IV. Total Profit (Loss is listed with “-”) -1,663,497.65 -6,446,202.64 Less: Income tax expense V. Net profit (Net loss is listed with “-”) -1,663,497.65 -6,446,202.64 Net profit attributable to owner’s of parent company -1,663,497.65 -6,446,202.64 Minority shareholders’ gains and losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of 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. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income -1,663,497.65 -6,446,202.64 Total comprehensive income attributable to owners of parent Company -1,663,497.65 -6,446,202.64 Total comprehensive income attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share -0.0046 -0.0177 (ii) Diluted earnings per share -0.0046 -0.0177 Legal representative: Li Yuanbin 17 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Person in charge of accounting works: Fu Zongren Person in charge of accounting institution: Fu Zongren 4. Cash Flow Statement (year-begin to end of this period) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 16,089,632.28 13,978,981.72 Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Write-back of tax received 4,801.73 Other cash received concerning operating activities 892,186.05 2,063,551.22 Subtotal of cash inflow arising from operating activities 16,986,620.06 16,042,532.94 Cash paid for purchasing commodities and receiving labor service 4,960,123.78 4,444,684.14 Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 6,840,069.25 7,122,349.24 Taxes paid 2,201,234.91 1,798,322.86 Other cash paid concerning operating activities 1,674,807.44 2,882,932.43 Subtotal of cash outflow arising from operating activities 15,676,235.38 16,248,288.67 Net cash flows arising from operating activities 1,310,384.68 -205,755.73 II. Cash flows arising from investing activities: Cash received from recovering investment 18 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities Cash paid for purchasing fixed, intangible and other long-term assets 500,633.95 1,352,943.00 Cash paid for investment 9,000,000.00 9,000,000.00 Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing activities 9,500,633.95 10,352,943.00 Net cash flows arising from investing activities -9,500,633.95 -10,352,943.00 III. Cash flows arising from financing activities Cash received from absorbing investment Including: Cash received from absorbing minority shareholders’ investment by subsidiaries Cash received from loans Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from financing activities Cash paid for settling debts Cash paid for dividend and profit distributing or interest paying Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities Subtotal of cash outflow from financing activities Net cash flows arising from financing activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash equivalents -8,190,249.27 -10,558,698.73 Add: Balance of cash and cash equivalents at the period -begin 19,782,392.26 22,550,289.54 VI. Balance of cash and cash equivalents at the period -end 11,592,142.99 11,991,590.81 Legal representative: Li Yuanbin Person in charge of accounting works: Fu Zongren Person in charge of accounting institution: Fu Zongren II. Audit Report Whether the third quarter report was audited or not □Yes √No 19 司公限有份股心中游旅海东大南海 2016 文全告报度季三第年 rd The 3 quarter report of the Company has not been audited. Board of Director of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Chairman: Li Yuanbin 20 October 2016 20