Stock Code: 000613, 200613 Short Form of the Stock: *ST Donghai-A, *ST 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 2017 (FULL-TEXT) Date of disclosure: 28 October 2017 司公限有份股心中游旅海东大南海 2017 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 2017 文全告报度季三第年 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 94,820,236.97 105,444,153.63 -10.08% Net assets attributable to shareholders 74,517,502.41 74,276,415.44 0.32% of listed company (RMB) Increase/decrease in Increase/decrease in comparison with comparison with Year-begin to end of Current period year-begin to same period of last the Period Period-end of last year year Operating revenue (RMB) 5,239,573.04 46.26% 20,335,846.46 29.98% Net profit attributable to shareholders -1,478,166.83 19.47% 241,086.97 114.49% of the listed company (RMB) Net profit attributable to shareholders of the listed company after deducting -1,478,166.83 19.47% 241,086.97 113.85% non-recurring gains and losses (RMB) Net cash flow arising from operating -- -- 2,313,337.12 76.54% activities (RMB) Basic earnings per share (RMB/Share) -0.0041 18.00% 0.0007 115.22% Diluted earnings per share -0.0041 18.00% 0.0007 115.22% (RMB/Share) Weighted average ROE -1.99% 17.43% 0.32% 114.61% Items and amount of extraordinary profit (gains)/losses □Applicable √Not applicable The Company has no items of extraordinary profit (gains)/losses in the reporting period. 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 3 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Total common shareholders in Total preference shareholders with voting rights 23,374 0 reporting period-end recovered at end of reporting period Top ten shareholders Number of Amount share Proporti of pledged/froze Nature of on of Amount of Shareholders restricte n shareholder shares shares held d shares State held Amo held of unt share Domestic non Luoniushan Co., Ltd. state-owned 17.55% 63,885,980 0 corporate Domestic nature Pan Guoping 8.48% 30,879,791 0 person Foreign First Shanghai Securities Limited 2.62% 9,545,528 0 corporate HGNH International Asset Management Co., Ltd – Foreign 2.29% 8,327,502 0 Client’s capital corporate Domestic non Hai Nan Ya An Ju Property Service Co., Ltd. state-owned 2.25% 8,205,800 0 corporate Domestic nature Hu Jianguo 1.71% 6,227,640 0 person Domestic non Wanhua Tianzhi Investment Development Co., Ltd. state-owned 1.45% 5,277,400 0 corporate China Investment Securities (HK) Co., Ld. – Foreign 1.30% 4,722,300 0 customer deposit corporate Domestic nature Zhang Fengxiu 1.07% 3,901,372 0 person Domestic nature Jiang Shuntou 1.01% 3,668,800 0 person 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. 63,885,980 RMB ordinary shares 63,885,980 Pan Guoping 30,879,791 Domestically listed 30,879,791 4 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 foreign shares Domestically listed First Shanghai Securities Limited 9,545,528 9,545,528 foreign shares HGNH International Asset Management Co., Ltd – 8,327,502 RMB ordinary shares 8,327,502 Client’s capital Hai Nan Ya An Ju Property Service Co., Ltd. 8,205,800 RMB ordinary shares 8,205,800 Hu Jianguo 6,227,640 RMB ordinary shares 6,227,640 Wanhua Tianzhi Investment Development Co., Ltd. 5,277,400 RMB ordinary shares 5,277,400 China Investment Securities (HK) Co., Ld. – customer 4,722,300 RMB ordinary shares 4,722,300 deposit Zhang Fengxiu 3,901,372 RMB ordinary shares Jiang Shuntou 3,668,800 RMB ordinary shares 3,668,800 Among the shareholders, Hai Nan Ya An Ju Property Service Co., Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd., the Company Explanation on associated relationship among the is unknown whether there exists associated relationship or belongs to aforesaid shareholders the consistent actor regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company among the other shareholders. Explanation on shareholders involving margin N/A business 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 2017 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 Opening Changes Reasons balance balance (%) (Amount at (Amount at the period) last period) Monetary funds 6,730,011.76 27,210,248.01 -75.27% Debt investment loan out in the period Accounts receivable 372,921.04 690,444.72 -45.99% In normal collection scope for receivables Prepay for the elevator project, the linens for Advance payment 407,179.10 58,783.23 592.68% guest room and account for ordering furnitures etc. Article purchasing ready for settlement Other account receivable 827,933.20 174,103.52 375.54% increased Non-current assets maturing within one The amortization of long-term amortized 160,425.08 584369.42 -72.55% year expenses listed in current assets Other current assets 11,037,360.17 1,876,449.22 488.20% Debt investment loan out in the period Employee compensation payable 1,439,152.88 2,148,514.36 -33.02% Year-end bonus paid in the period Other payable 13,179,463.6823,084,504.73 -42.91% Paying the fines to CSRC in the period Revenue from housekeeping and restaurant Business income 20,335,846.4615,645,132.93 29.98% increased in the period Fund free by government since second half Non-business income 260.00 77,406.00 -99.66% year of 2016, and the handling charge decreased Operation revenue from hotel business Net profit 241,086.97 -1,663,497.65 -114.49% increased in the year Operation revenue from hotel business Total comprehensive income 241,086.97 -1,663,497.65 -114.49% increased in the year Operation revenue from hotel business Basic earnings per share 0.0007 -0.0046 -114.49% increased in the year Cash received from selling goods or Operation revenue from hotel business 21,451,896.6216,089,632.28 33.33% providing services increased in the year Cash paid for purchasing goods and labor Article purchasing increased for the soaring 6,833,152.05 4,960,123.78 37.76% service received hotel business Net cash flow arising from operating 2,524,811.00 1,674,807.44 50.75% Operation revenue from hotel business 6 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 activities increased in the year Cash paid for purchasing fixed assets, intangible assets and other long-term 3,793,573.37 500,633.95 657.75% Decoration for C-building and villa rooms assets Cash received related with other financing Intercourse funds received from Luoniushan 19,810,000.00 activities Group Paying the fines to CSRC in the period and Cash paid for other financing activities 29,810,000.00 paying intercourse funds with Luoniushan Group II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable 1. On 8 March 2001, the Company received a written decision of administrative penalty ZJFZi [2001] No.3 “Penalty Decision on Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. in Violation of Securities Laws and Regulations” from CSRC for false profit and rule-violation. Penalty including confiscate their illegal income of 19.31 million Yuan and impose a fine of 0.5 million Yuan. On 20 February 2017, the Company paid the penalty in full to CSRC. 2. Lawyer’s Letter received by the Company: Based on the preliminary calculation by Sanya Power Supply Bureau, totally 10313373 KWH was undercounted from July 2006 to April 2016 under the name of South China Hotel. Found more in the “Notice of Receiving the Lawyer’s Letter (Notice No.: 2016-016)” released on Securities Times, Hong Kong Commercial Daily and Juchao Website dated 31 May 2016. Currently, the Company still in negotiation and communication with Sanya Power Supply Bureau, relevant results are not comes out. 3. Long-term investment and current account verification: On 25 October 2017, the plan of Long-term Investment and Current Account Verification has been deliberated and approved by the Board, and submitted to shareholders meeting for deliberation, which including: (1) plans to verrify three long-term investment projects for Hubei Jingshan Dadonghai Club Co., Ltd. etc., original book value counted as 14,716,374.26 Yuan in total, provision for impairment reduction counted as 14,716,374.26 Yuan; (2) plans to verify 205 accounts of receivable creditor’s rights, total original book vlaue was 80,243,805.62 Yuan, provision for impairment reduction was 80,243,805.62 Yuan, and (3) plans to verify 201 accounts of debt payables, original book vlaue was 1,303,540.11 Yuan. The verification of long-term investment projects and receivable creditor’s rights did not impact the financial status of the Company as well as gains/losses for the year. Accounts of debt payables verified has 1,303,540.11 Yuan impact on financial status of the Company and gain/losses for the year. Overview Date for disclosure Information index for temporary report disclosure Announcement number with Lawyer’s Letter Received – 2016-016, name “Notice Received Lawyer’s of Received Lawyer’s Letter”. Released on Securities Times, Hong Kong 2016-05-31 Letter Commercial Daily and Juchao Website (www.cninfo.com.cn) respectively dated 31 May 2016 Announcement number with Long-term investment and current account Long-term investment verification –2017-080, name “Notice of Long-term investment and current and current account 2017-10-26 account verification”. Released on Securities Times, Hong Kong Commercial verification Daily and Juchao Website (www.cninfo.com.cn) respectively dated 26 October 2017 7 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies √Applicable □ Not applicable Com Comm mitm Impleme Commitments Accepter Type Contents itment ent ntation time perio d On May 30, 2007, Luoniushan Co., Ltd. made commitments in the Company’s "Instructions for reform of non-tradable shares" (Revision) and Till end "Instructions for reform of of the non-tradable shares" reportin (Abstract of revision) that in g period, view of Dadonghai the Commit Company’s losses in ments original for successive years and on the 27 6 Commitments for Luoniushan plans of Share verge of delisting, in order to June mont Share Merger Reform Co., Ltd material Merger reverse the company's 2017 hs assets Reform business difficulties, improve reorgani profitability and recover the zation continuous business capacity, was Luoniushan Co., Ltd., the terminat controlling shareholder of ed Dadonghai Company made commitments to actively seek restructuring parties to reorganize the assets of Dadonghai Company at the appropriate time. Commitments in report of acquisition or equity change Commitments in assets reorganization Commitments make in initial public offering or re-financing Equity incentive commitment Other commitments for medium and small shareholders 8 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Completed on time (Y/N) Yes If the commitments is not fulfilled on time, shall explain the specify reason N/A and the next work plan IV. Estimation of operation performance for year of 2017 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 Indivi Investor Mr./Ms. Wu from Wuhan- recombination and resumption counseling, no 2017-06-16 communicati dual any material provided on Telephone Indivi Investor Mr./Ms. Zhou from Shanghai- business performance counseling for the first 2017-06-29 communicati dual half year, no any material provided on Telephone Indivi Investor Mr./Ms. Wang from Shanghai- recombination progress counseling and no 2017-07-07 communicati dual any material provided on Telephone Indivi Investor Mr./Ms. Zhang from Guangdong- recombination progress counseling and 2017-07-18 communicati dual no any material provided on Telephone Indivi Investor Mr./Ms. Huang from Shenzhen- recombination counseling and no any 2017-07-26 communicati dual material provided 9 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 on Telephone Indivi Investor Mr./Ms. Li from Beijing- commitment performance counseling by majority 2017-08-02 communicati dual shareholder and no any material provided on Telephone Indivi Investor Mr./Ms. Huang from Jiling- operation performance counseling for first half 2017-08-10 communicati dual year and disclosure time, no any material provided on Telephone Investor Mr./Ms. Lin from Shenzhen- follow-up plans after stop restructure Indivi 2017-08-24 communicati counseling and influence on the annual business performance, no any material dual on provided Telephone Indivi Investor Mr./Ms. Zhang from Shanghai- the 3 Q operation performance counseling 2017-09-12 communicati dual and no any material provided on Telephone Indivi Investor Mr./Ms. Zhang from Guangdong- stop restructure counseling and no any 2017-09-27 communicati dual material provided on 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. X. Execution of social responsibility of targeted poverty alleviation 1. Summary of targeted poverty alleviation for 3Q Nil 2. Targeted poverty alleviation of the listed company for 3Q Nil 3. Follow-up targeted poverty alleviation plans Nil 10 司公限有份股心中游旅海东大南海 2017 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. 2017-09-30 In RMB Balance at Balance at Items period-end period-begin Current assets: Monetary funds 6,730,011.76 27,210,248.01 Settlement provisions Capital lent Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes receivable Accounts receivable 372,921.04 690,444.72 Accounts paid in advance 407,179.10 58,783.23 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable Dividend receivable Other receivables 827,933.20 174,103.52 Purchase restituted finance asset Inventories 274,907.08 219,179.72 Divided into assets held for sale Non-current asset due within one year 160,425.08 584,369.42 Other current assets 11,037,360.17 1,876,449.22 Total current assets 19,810,737.43 30,813,577.84 Non-current assets: Loans and payments on behalf Finance asset available for sales 11 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Held-to-maturity investment Long-term account receivable Long-term equity investment Investment property 8,977,634.88 9,333,527.55 Fixed assets 39,001,672.63 40,395,680.91 Construction in progress 2,691,208.03 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 23,220,732.99 23,830,023.36 Expense on Research and Development Goodwill Long-term expenses to be apportioned 1,118,251.01 1,071,343.97 Deferred income tax asset Other non-current asset Total non-current asset 75,009,499.54 74,630,575.79 Total assets 94,820,236.97 105,444,153.63 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 2,387,427.84 1,967,565.51 Accounts received in advance 1,347,587.23 1,894,524.28 Selling financial asset of repurchase Commission charge and commission payable Wage payable 1,439,152.88 2,148,514.36 Taxes payable 459,417.89 582,944.27 Interest payable 12 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Dividend payable Other accounts payable 13,179,463.68 23,084,504.73 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 18,813,049.52 29,678,053.15 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 1,489,685.04 1,489,685.04 Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 1,489,685.04 1,489,685.04 Total liabilities 20,302,734.56 31,167,738.19 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 Reasonable reserve Surplus public reserve 13 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Provision of general risk Retained profit -343,725,347.60 -343,966,434.57 Total owner’s equity attributable to parent company 74,517,502.41 74,276,415.44 Minority interests Total owner’s equity 74,517,502.41 74,276,415.44 Total liabilities and owner’s equity 94,820,236.97 105,444,153.63 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 5,239,573.04 3,582,335.33 Including: Operating income 5,239,573.04 3,582,335.33 Interest income Insurance gained Commission charge and commission income II. Total operating cost 6,717,739.87 5,475,329.67 Including: Operating cost 2,959,743.77 2,104,017.65 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 337,909.65 331,554.93 Sales expenses 1,252,272.26 1,086,308.77 Administration expenses 2,164,954.70 1,943,842.62 Financial expenses 2,859.49 9,605.70 Losses of devaluation of asset 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 “-”) 14 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Other income III. Operating profit (Loss is listed with “-”) -1,478,166.83 -1,892,994.34 Add: Non-operating income Including: Disposal gains of non-current asset Less: Non-operating expense Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with “-”) -1,478,166.83 -1,892,994.34 Less: Income tax expense -57,374.17 V. Net profit (Net loss is listed with “-”) -1,478,166.83 -1,835,620.17 Net profit attributable to owner’s of parent company -1,478,166.83 -1,835,620.17 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 -1,478,166.83 -1,835,620.17 Total comprehensive income attributable to owners of parent Company -1,478,166.83 -1,835,620.17 Total comprehensive income attributable to minority shareholders 15 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 VIII. Earnings per share: (i) Basic earnings per share -0.0041 -0.0050 (ii) Diluted earnings per share -0.0041 -0.0050 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 20,335,846.46 15,645,132.93 Including: Operating income 20,335,846.46 15,645,132.93 Interest income Insurance gained Commission charge and commission income II. Total operating cost 20,095,019.49 17,386,036.58 Including: Operating cost 8,215,856.28 6,564,040.96 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 1,092,153.92 898,511.56 Sales expenses 3,710,417.19 3,185,344.51 Administration expenses 7,254,405.27 6,933,286.39 Financial expenses -177,813.17 -195,146.84 Losses of devaluation of asset 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 “-”) Other income III. Operating profit (Loss is listed with “-”) 240,826.97 -1,740,903.65 16 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Add: Non-operating income 260.00 77,406.00 Including: Disposal gains of non-current asset Less: Non-operating expense Including: Disposal loss of non-current asset IV. Total Profit (Loss is listed with “-”) 241,086.97 -1,663,497.65 Less: Income tax expense V. Net profit (Net loss is listed with “-”) 241,086.97 -1,663,497.65 Net profit attributable to owner’s of parent company 241,086.97 -1,663,497.65 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 241,086.97 -1,663,497.65 Total comprehensive income attributable to owners of parent Company 241,086.97 -1,663,497.65 Total comprehensive income attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0007 -0.0046 17 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 (ii) Diluted earnings per share 0.0007 -0.0046 Legal representative: Li Yuanbin 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 21,451,896.62 16,089,632.28 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 879,598.17 892,186.05 Subtotal of cash inflow arising from operating activities 22,331,494.79 16,986,620.06 Cash paid for purchasing commodities and receiving labor service 6,833,152.05 4,960,123.78 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 8,454,448.49 6,840,069.25 Taxes paid 2,205,686.00 2,201,234.91 Other cash paid concerning operating activities 2,524,871.13 1,674,807.44 Subtotal of cash outflow arising from operating activities 20,018,157.67 15,676,235.38 Net cash flows arising from operating activities 2,313,337.12 1,310,384.68 II. Cash flows arising from investing activities: 18 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 Cash received from recovering investment 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 3,793,573.37 500,633.95 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 12,793,573.37 9,500,633.95 Net cash flows arising from investing activities -12,793,573.37 -9,500,633.95 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 19,810,000.00 Subtotal of cash inflow from financing activities 19,810,000.00 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 29,810,000.00 Subtotal of cash outflow from financing activities 29,810,000.00 Net cash flows arising from financing activities -10,000,000.00 IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash equivalents -20,480,236.25 -8,190,249.27 Add: Balance of cash and cash equivalents at the period -begin 27,210,248.01 19,782,392.26 VI. Balance of cash and cash equivalents at the period-end 6,730,011.76 11,592,142.99 Legal representative: Li Yuanbin Person in charge of accounting works: Fu Zongren Person in charge of accounting institution: Fu Zongren 19 司公限有份股心中游旅海东大南海 2017 文全告报度季三第年 II. Audit Report Whether the third quarter report was audited or not □Yes √No The 3rd quarter report of the Company has not been audited. Board of Director of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Chairman: Li Yuanbin 26 October 2017 20