司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Stock Code: 000613, 200613 Short Form of the Stock: Dadonghai-A, Dadonghai-B 海南大东海旅游中心股份有限公司 Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. The First Quarterly Report 2018 (Full Text) Disclosure Date: 14 April 2018 1 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Section I. Important Notice 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 should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint. All Directors are attended the Board Meeting for Quarterly Report deliberation Yuan Xiaoping, Person in charge of the Company, Fu Zongren, person in charge of accounting works and Fu Zongren, person in charge of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete. 2 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Section II. Company Information I. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data or not □ Yes √No Same period of Changes of this period over Current Period last year same period of last year Operating income (RMB) 9,888,991.83 9,383,454.29 5.39% Net profit attributable to shareholders of the listed 1,973,425.41 2,410,257.23 -18.12% company(RMB) Net profit attributable to shareholders of the listed company 1,973,903.39 2,410,257.23 -18.10% after deducting non-recurring gains and losses(RMB) Net cash flow arising from operating activities(RMB) 2,610,752.65 2,609,325.33 0.05% Basic earnings per share (RMB/Share) 0.0054 0.0066 -18.18% Diluted earnings per share (RMB/Share) 0.0054 0.0066 -18.18% Weighted average ROE 2.53% 3.19% -0.66% At the end of Changes of this period-end At the end of the reporting over same period-end of last last year period year (%) Total assets (RMB) 88,969,478.37 87,466,661.80 1.72% Net assets attributable to shareholder of listed company 79,108,839.51 77,135,414.10 2.56% (RMB) Items of non-recurring gains and losses √Applicable □ Not applicable In RMB Amount from year-begin Item Note to period-end Gain/loss of disposal of non-current assets (including the write-off Losses on scrapping of fixed -477.98 part of the provision for assets impairment) assets Total -477.98 -- 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 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 3 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 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. Total number of shareholders at the end of this report period and top ten shareholders 1. Common and preferred stockholders with voting rights recover and the top ten share-holding In Share Total common shareholders at the Total preferred stockholders with voting rights 26,271 0 end of report period recover at the end of report period Top ten shareholders Proport Amount of Number of share Nature of ion of Amount of Shareholder’s name restricted pledged/frozen shareholder shares shares held held shares held State of share Amount Domestic Luoniushan Co., Ltd. non-state-owned 17.55% 63,885,980 0 legal person Domestic nature Pan Guoping 8.48% 30,879,791 0 person HGNH International Asset Management Overseas legal 2.29% 8,327,502 0 Co., Ltd – customer deposit person Domestic Hainan Yanju Property Service Co., Ltd. non-state-owned 2.25% 8,205,800 0 legal person China Investment Securities (HK) Co., Overseas legal 1.30% 4,722,300 0 Ld. – customer deposit person Domestic nature Hu Jianguo 1.24% 4,498,640 0 person Domestic nature Zhang Fengxiu 1.07% 3,901,372 0 person Domestic Yangpu Tongrong Investment non-state-owned 0.99% 3,609,000 0 Management Consultation Co., Ltd. legal person Overseas legal CITRINE CAPITAL LIMITED 0.90% 3,265,200 0 person Domestic nature Sun Huiming 0.79% 2,888,690 0 person Top ten shareholders with unrestricted shares held Amount of unrestricted Type of shares Shareholder’s name shares held Type Amount Luoniushan Co., Ltd. 63,885,980 RMB common share 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 2018 文全告报度季一第年 foreign share HGNH International Asset Management Co., Ltd – 8,327,502 RMB common share 8,327,502 customer deposit Hainan Yanju Property Service Co., Ltd. 8,205,800 RMB common share 8,205,800 China Investment Securities (HK) Co., Ld. – 4,722,300 RMB common share 4,722,300 customer deposit Hu Jianguo 4,498,640 RMB common share 4,498,640 Zhang Fengxiu 3,901,372 RMB common share 3,901,372 Yangpu Tongrong Investment Management 3,609,000 RMB common share 3,609,000 Consultation Co., Ltd. Domestically listed CITRINE CAPITAL LIMITED 3,265,200 3,265,200 foreign share Domestically listed Sun Huiming 2,888,690 2,888,690 foreign share Among the above mentioned shareholders, Hainan Yanju Property Service Co., Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd.; The Company is Explanation on associated relationship among the unknown whether there exists associated relationship or belongs to the aforesaid shareholders consistent actor regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company among the other shareholders. Explanation on top 10 common shareholders N/A involving margin business 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 The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period. 2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with preferred stock held □ Applicable √ Not applicable 5 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Section III. Significant Events I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons √Applicable □Not applicable In RMB Same period of +.- Chenges Items of balance sheets Current period Reasons last year ratio (%) Advance payment 38,688.64 49,530.21 -21.89% Change of normal settlement Mainly due to the business travel loans and utilities ready Other account receivable 404,598.04 139,561.29 189.91% for settlement increased Same period of +.- Chenges Items of profit statement Current period Reasons last year ratio (%) Due to the increase of human resources costs and Sale expenses 1,401,184.37 1,155,136.94 21.30% facilities installation and maintenances increased Financial expenses 7,296.20 3,495.65 108.72% The expenses from credit card fee increased Same period of +.- Chenges Items of cash flow statement Current period Reasons last year ratio (%) Cash paid for purchasing Increase of the operation costs and purchasing of commodities and receiving labor 2,665,733.25 1,989,689.67 33.98% goods/materials service Cash paid with operation activity 1,307,478.97 788,177.04 65.89% Agency costs and business travel loans increased concerned Cash paid for purchasing fixed, Tail payment of the decoration project are paid in the 763,739.59 95,981.42 695.72% intangible and other long-term assets period Cash paid for investmetn 9,000,000.00 -100.00% There are investment payment at same period of last year Other cash received concerning Intercourse funds received from Luoniushan at same 19,810,000.00 -100.00% financing activities period of last year Other cash paid concerning 19,810,000.00 -100.00% Paying the fines to CSRC at same period of last year financing activities II. Progress of important events and its influence as well as the analysis on solutions √Applicable □ Not applicable Overview Disclosure date Inquiry index for the announcement released Major Assets Reorganization Plans: ”Notice of Stock Suspension for Major Events” (Notice No.: Luoniushan Co., Ltd.- the first majority 2018-01-31 2018-003) on Securities Times, Hong Kong Commercial Daily and shareholder of the Company plans relevant Juchao Website 6 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 major events with the Company. After ”Progress of Stock Suspension for Major Events” (Notice No.: 2018-010) 2018-02-07 application, stock of the Company will on Securities Times, Hong Kong Commercial Daily and Juchao Website st suspend since 31 Jan. 2018 and resumption ”Notice of Stock Resumption” (Notice No.: 2018-011) on Securities Times, of trading since 8th Feb. 2018. At present, 2018-02-08 Hong Kong Commercial Daily and Juchao Website relevant parties are prepared for relevant ”Progress of Trading Events” (Notice No.: 2018-015) on Securities Times, plans, it is expected to constitute major 2018-02-14 Hong Kong Commercial Daily and Juchao Website assets reorganization. ”Progress of Major Assets Reorganization Plans” (Notice No.: 2018-023) 2018-03-06 on Securities Times, Hong Kong Commercial Daily and Juchao Website ”Progress of Major Assets Reorganization Plans” (Notice No.: 2018-032) 2018-03-20 on Securities Times, Hong Kong Commercial Daily and Juchao Website ”Progress of Major Assets Reorganization Plans” (Notice No.: 2018-033) 2018-03-31 on Securities Times, Hong Kong Commercial Daily and Juchao Website ”Correction on Progress of Major Assets Reorganization Plans” (Notice 2018-04-02 No.: 2018-034) on Securities Times, Hong Kong Commercial Daily and Juchao Website The Lawyer’s Letter received by the Company: by preliminary accounting from Sanya Power Bureau, the 10313373 Kwh electricity was understated under the name “Notice of Lawyer’s Letter received by Hainan Dadonghai Tourism Center of South China Hotel from July 2006 to 2016-05-31 (Holdings) Co., Ltd.” (Notice No.: 2016-016) on Securities Times, Hong April 2016. Presently, the Company is Kong Commercial Daily and Juchao Website communicated and negotiates with Sanya Power Bureau in the above mentioned event without negotiation results so far. 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 Commitment Commitme Commitments Accepter Type Contents Implementation time nt period On May 30, 2007, Stock of the Company suspended Luoniushan Co., Ltd. since 15 Feb. 2017 for made commitments in Luoniushan planning to fulfill the the Company’s commitments. On 15 August Share Share Merger Luoniushan "Instructions for reform 2017, the original major assets Merger 2017-06-27 6 months Reform Co., Ltd. of non-tradable shares" reorganization plan is decided to Reform (Revision) and terminate for relevant proposals "Instructions for reform with major assts reorganization of non-tradable shares" concerned are note approved by (Abstract of revision) the Board. 7 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 that in view of On 22 December 2017, the Dadonghai Company’s “proposal of Change the losses in successive commitment period by first years and on the verge of majority shareholder” is not delisting, in order to approved by the 4th extraordinary reverse the company's shareholders general meeting for business difficulties, year of 2017. improve profitability and On 31 Jan. 2018, stock of the recover the continuous Company suspended for planning business capacity, relevant major assets Luoniushan Co., Ltd., reorganization with the the controlling Luoniushan, and resumption for shareholder of trading date 8 Feb. 2018. At Dadonghai Company present, relevant parties are made commitments to prepared for relevant plans; it is actively seek expected to constitute major restructuring parties to assets reorganization. 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 Completed on N time(Y/N) If the Stock of the Company suspended since 15 Feb. 2017 for Luoniushan planning to fulfill the commitments. On 13 8 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 commitments August 2017, the 12 proposals including “proposal of major assets acquisition under the name of Hainan Dadonghai is not fulfilled Tourism Center Co., Ltd. and Report on Related Transactions (Pre-plan)” are not approved by the 11th extraordinary on time, shall meeting of 8th BOD. On 15 Aug. 2017, the Company released a Notice to terminate the major assets reorganization explain the and stock resumption on 17 August. specify reason The Company's stock commenced suspension of trading from the opening session on 15 February 2017 as it planned and the next to fulfill its commitments. On 13 August 2017, 12 proposals relating to Material Asset Acquisition and Connected work plan Transaction Report (Plan) of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. were denied at the 11th extraordinary general meeting of the 8th session of board of directors of the Company. On 15 August 2017, the Company announced to terminate this restructuring relating to material assets acquisition, and the stock of the Company commenced trading since 17 August 2017. On 4 December 2017, the “proposal of Change the commitment period by first majority shareholder” was approved by the Board and supervisory committee. Luoniushan Co., Ltd. –the first majority shareholder of the Company, plans to extend the commitment period for 2 years since 27 Dec. 2017, that is end of the reorganization commitment changed to 26 December 2019. and the 4th extraordinary shareholders general meeting 2017 has approved the above mentioned proposal dated 22 Dec. 2017 On 31 Jan. 2018, stock of the Company suspended for planning relevant major assets reorganization with the Luoniushan, and resumption for trading date 8 Feb. 2018. At present, relevant parties are prepared for relevant plans; it is expected to constitute major assets reorganization, and there are no information unreleased that should be disclosed IV. Predict of the business performance from January to June 2018 Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year □Applicable √Not applicable V. Securities Investment □Applicable √Not applicable The Company has no securities investment occurred in the Period VI. Derivative investment □ Applicable √ Not applicable No derivative investment in the Period. VII. Registration form for receiving research, communication and interview in the report period √ Applicable □ Not applicable Type of Date Method Index for the interview and research investors Telephone Investor Mr./Ms. Ou from Beijing, asking about the operation performance of 2017 2018-01-09 Individual communication without material required Telephone Investor Mr./Ms. Huang from Shenzhen, asking about the operation performance of 2018-01-25 Individual communication 2017 and time of annual report released, and without material required Telephone Investor Mr./Ms. Lin from Shanghai, asking about the revocation of the warning for 2018-02-27 Individual communication delisting risk, and without material required 9 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Telephone Investor Mr./Ms. Zhang from Guangdong province, asking about the progress of major 2018-03-19 Individual communication assets panning, and without material required VIII. External security against the rules □ Applicable √ Not applicable The Company has no external security against the rules in the Period IX. Controlling shareholders' and its related party's non-business capital occupying of the listed company □ Applicable √ Not applicable There are no controlling shareholders' and its related party's non-business capital occupying of the listed company 10 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Section IV. Financial Statement I. Financial statement 1. Balance sheet Prepared by HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD. 2018-03-31 In RMB Item Closing balance Opening balance Current assets: Monetary funds 11,557,919.84 9,681,607.16 Settlement provisions Capital lent Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable Accounts receivable 625,380.05 594,130.89 Accounts paid in advance 38,688.64 49,530.21 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable Dividend receivable Other receivables 404,598.04 139,561.29 Purchase restituted finance asset Inventories 229,291.91 227,005.11 Assets held for sale Non-current asset due within one year 1,018,029.17 1,173,597.68 Other current assets 2,321,199.41 1,957,863.56 Total current assets 16,195,107.06 13,823,295.90 Non-current assets: Loans and payments on behalf 11 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Finance asset available for sales Held-to-maturity investment Long-term account receivable Long-term equity investment Investment property 8,740,373.10 8,859,003.99 Fixed assets 38,435,802.92 39,088,708.83 Construction in progress 105,639.00 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 22,814,539.41 23,017,636.20 Expense on Research and Development Goodwill Long-term expenses to be apportioned 2,678,016.88 2,678,016.88 Deferred income tax asset Other non-current asset Total non-current asset 72,774,371.31 73,643,365.90 Total assets 88,969,478.37 87,466,661.80 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 1,834,116.05 2,161,172.26 Accounts received in advance 1,176,584.99 1,271,174.12 Selling financial asset of repurchase Commission charge and commission payable Wage payable 1,973,237.66 2,459,015.93 Taxes payable 568,309.13 539,023.76 12 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Interest payable Dividend payable Other accounts payable 2,818,705.99 2,411,176.59 Reinsurance payables Insurance contract reserve Security trading of agency Security sales of agency Liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 8,370,953.82 8,841,562.66 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 9,860,638.86 10,331,247.70 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 13 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Surplus public reserve Provision of general risk Retained profit -339,134,010.50 -341,107,435.91 Total owner’s equity attributable to parent company 79,108,839.51 77,135,414.10 Minority interests Total owner’s equity 79,108,839.51 77,135,414.10 Total liabilities and owner’s equity 88,969,478.37 87,466,661.80 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren 2. Profit Statement In RMB Item Current Period Last Period I. Total operating income 9,888,991.83 9,383,454.29 Including: Operating income 9,888,991.83 9,383,454.29 Interest income Insurance gained Commission charge and commission income II. Total operating cost 7,915,088.44 6,973,197.06 Including: Operating cost 3,075,128.86 2,600,219.19 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 387,097.33 391,568.27 Sales expenses 1,401,184.37 1,155,136.94 Administration expenses 3,044,381.68 2,822,777.01 Financial expenses 7,296.20 3,495.65 14 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 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 “-”) Asset disposal income (Loss is listed with “-”) Other income III. Operating profit (Loss is listed with “-”) 1,973,903.39 2,410,257.23 Add: Non-operating income Less: Non-operating expense 477.98 IV. Total Profit (Loss is listed with “-”) 1,973,425.41 2,410,257.23 Less: Income tax expense V. Net profit (Net loss is listed with “-”) 1,973,425.41 2,410,257.23 (I) Continuous operation net profit (Net loss is listed with “-”) 1,973,425.41 2,410,257.23 (II) Discontinued operation net profit (Net loss is listed with “-”) Net profit attributable to owner’s of parent company 1,973,425.41 2,410,257.23 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 15 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 6. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 1,973,425.41 2,410,257.23 Total comprehensive income attributable to owners of parent Company 1,973,425.41 2,410,257.23 Total comprehensive income attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0054 0.0066 (ii) Diluted earnings per share 0.0054 0.0066 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren 3. Cash Flow Statement In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 10,522,232.38 9,363,409.03 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 Other cash received concerning operating activities 323,410.03 311,562.09 Subtotal of cash inflow arising from operating activities 10,845,642.41 9,674,971.12 Cash paid for purchasing commodities and receiving labor service 2,665,733.25 1,989,689.67 Net increase of customer loans and advances 16 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 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 3,300,722.59 3,318,340.98 Taxes paid 960,722.59 969,438.10 Other cash paid concerning operating activities 1,307,478.97 788,177.04 Subtotal of cash outflow arising from operating activities 8,234,889.76 7,065,645.79 Net cash flows arising from operating activities 2,610,752.65 2,609,325.33 II. Cash flows arising from investing activities: 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 763,739.59 95,981.42 Cash paid for investment 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 763,739.59 9,095,981.42 Net cash flows arising from investing activities -763,739.59 -9,095,981.42 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 17 司公限有份股心中游旅海东大南海 2018 文全告报度季一第年 Other cash paid concerning financing activities 19,810,000.00 Subtotal of cash outflow from financing activities 19,810,000.00 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 1,847,013.06 -6,486,656.09 Add: Balance of cash and cash equivalents at the period -begin 9,710,906.78 27,210,248.01 VI. Balance of cash and cash equivalents at the period -end 11,557,919.84 20,723,591.92 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren II. Audit report Whether the 1st quarterly report has been audited or not □Yes √ No The 1st quarterly report of the Company was unaudited. BOD of HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD. Chairman: Yuan Xiaoping 12 April 2018 18