海南大东海旅游中心股份有限公司
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Semi-Annual Report 2010
(Full-Text)
Disclosure Date: August 26, 2010Section I. Important Statement, Paraphrase and Contents
(I) Important Notice
Board of Directors and 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.
No director would claim that he or she could not guarantee the authenticity, accuracy
or completeness of the semi-annual report’s contents or that he or she holds different
opinions.
All the directors presented the meeting.
Mr. Li Yuanbin, Principal of the Company; Mr. Chen Liurong, Person in Charge of
Financial Works; and Mr. Li Zhi, Person in Charge of Accounting Organ (Accounting
Supervisor) declare: the financial report in the Semi-annual Report is true and
complete.
The Report is prepared in both Chinese and English. If there is difference between the
Two, the Chinese version shall be prevailed.
Financial report in the period has not been audited.
(II) Explanations
Except indicated, the following short forms refer to:
The Company, Company and Dadonghai: Hainan Dadonghai Tourism Centre
(Holdings) Co., Ltd.
[Note] The standard currency in the financial data or amount in this report was all
RMB (excluded the specific explanations).
(III) Contents
Section I. Important Statement, Paraphrase and Contents........................................1
Section II. Company Profile.........................................................................…….....2
Section III. Changes in Equity and Share Held of Major Shareholders……………4
Section IV. Particulars about the Directors, Supervisors and Senior Executives….7
Section V. Report of Board of Directors...................................................................7
Section VI. Significant Events………………………………………………….....10
Section VII. Financial Report.......................................................................... ……14
Section VIII. Documents for Reference...............................................…………….14Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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Section II. Company Profile
(I) General information
1. Legal name in Chinese: 海南大东海旅游中心股份有限公司
Short form of the legal name in Chinese: 大东海
Legal name in English: Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Short form of the legal name in English: DADONGHAI
2. Legal representative: Li Yuanbin
3. Secretary of Board of Directors: Wang Hongjuan
Authorized Representative in Charge of Securities Affairs: Wang Hongjuan
Contact Address: Dadonghai, Sanya
Tel: 0898-88219888 Ext.8264
Fax: 0898-88212298
Email: hnddht@21cn.com
4. Registered address: Dadonghai, Sanya
Office address: Dadonghai, Sanya
Post code: 572021
5. Newspapers Chosen for Disclosing the Information of the Company:
Securities Times and Hong Kong Commercial Daily
Internet Web Site for Publishing the Semi-annual Report:
http://www.cninfo.com.cn
The Place Where the Semi-annual Report is Prepared and Placed: Securities
Department of the Company
6. Stock Exchange Listed with: Shenzhen Stock Exchange
Short Form of the Stock: ST Donghai-A, ST Donghai-B
Stock Code: 000613, 200613
7. Other Relevant Information of the Company
(1) Initial date of registration: April 26, 1993.
Place of registration: Dadonghai, Hedong District, Sanya.
(2) Registered date after the latest change: May 13, 2009
Registered address: Dadonghai, Hedong District, Sanya.
(3) Business license number: 460000000145145
(4) Tax registration number: 460200201357188
(5) Name and address of public accountants the Company engaged:
Certified accountant engaged by the Company: ZONZUN Accounting Office Ltd.
Office address: 4/F, Guoxing Building, No. 22, Shouti South Road, Haidian District,
Beijing, China.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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(II). Major financial data and index
1. Major financial data and index in the report period
Unit: RMB
At the end of this
report period
At the
period-end of
last year
Increase/decrease at the end of
this report period compared
with that in period-end of last
year (%)
Total assets 126,506,228.32 127,282,080.92 -0.61%
Owners’ equity attributable to shareholders of
the listed company
87,087,010.87 86,585,398.67 0.58%
Share capital 364,100,000.00 364,100,000.00 0.00%
Net assets per share attributable to shareholders
of the listed company(RMB/Share)
0.24 0.24 0.00%
This report period
(Jan. to Jun.)
The same period
of last year
Increase/decrease in this report
period year-on-year (%)
Total operating income 20,018,480.32 16,063,765.21 24.62%
Operating profit 471,851.22 -2,175,711.36 121.69%
Total profit 643,092.57 -2,239,209.50 128.72%
Net profit attributable to shareholders of the
listed company
501,612.20 -2,239,209.50 122.40%
Net profit attributable to shareholders of the
listed company after deducting non-recurring
gains and losses
330,370.85 -2,175,711.36 121.69%
Basic earnings per share (RMB/Share) 0.0014 -0.0061 122.95%
Diluted earnings per share (RMB/Share) 0.0014 -0.0061 122.95%
Return on equity (%) 0.58% -2.56% 3.14%
Net cash flow arising from operating activities 180,292.29 -1,248,622.76 114.44%
Net cash flow per share arising from operating
activities (RMB/Share)
0.0005 -0.0034 114.71%
Items and amount of non-recurring gains and losses
Unit: RMB
Items of non-recurring gains and losses Amount Notes (If applicable)
Non-operating income 201,241.35 -
Non-operating expense 30,000.00 -
Total 171,241.35 -
2. Explanation on the difference on adjustment of net profit in accordance with IAS
and CAS in the report period. (Unit: RMB)
Net profit attributable to
shareholders of listed company
Owners’ equity attributable to
shareholders of listed companyHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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Amount in the
report period
Amount in last period Amount in period-end
Amount in
period-begin
IAS 501,612.20 -2,239,209.50 87,087,010.87 86,585,398.67
CAS 501,612.20 -2,239,209.50 87,087,010.87 86,585,398.67
Sub-items and total adjusted based on IAS:
Total amount of differences
between CAS and IAS
0.00 0.00 0.00 0.00
Explanations on differences
between CAS and IAS
No difference
3. The data of profit listed in supplemental statement of profit are calculated
according to the requirements of No. 9 of Regulations on the Information Disclosure
of Companies Publicly Issuing Shares released by CSRC.
Return on equity (%) Earnings per share (RMB/Share)
Profit in the report period
Fully diluted
Weighted
average
Fully diluted
Weighted
average
Net profit attributable to common
shareholders of the Company
0.0058 0.0058
0.0014 0.0014
Net profit attributable to common
shareholders of the Company after
deducting non-recurring gains and losses
0.0038 0.0038 0.0009 0.0009
Section III. Changes in Equity and Share Held of Major
Shareholders
(I) Changes in share capital
1. Statement of changes in shares in the report period
Unit: Share
Before the Changes Increase/Decrease in the Change (+, -) After the Change
Amount
Proportion
(%)
New
shares
issued
Bonus
shares
Conversi
on of
public
reserve
Others Subtotal Amount
Proportion
(%)
I. Restricted shares 73,072,684 20.07% 0 0 0 -4,562,600 -4,562,600 68,510,084 18.82%
1. State-owned shares
2. State-owned legal
person’s shares
9,354,000 2.57% 0 0 0 0 0 9,354,000 2.57%
3. Other domestic shares 63,718,684 17.50% 0 0 0 -4,562,600 -4,562,600 59,156,084 16.25%
Including: Domestic
non-state-owned legal
person’s shares
63,545,500 17.45% 0 0 0 -4,562,600 -4,562,600 58,982,900 16.20%Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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Domestic natural person’s
shares
173,184 0.05% 0 0 0 0 0 173,184 0.05%
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
5. Senior executives’ shares
II. Unrestricted shares 291,027,316 79.93% 0 0 0 4,562,600 4,562,600 295,589,916 81.18%
1. RMB Ordinary shares 203,027,316 55.76% 0 0 0 4,562,600 4,562,600 207,589,916 57.01%
2. Domestically listed
foreign shares
88,000,000 24.17% 0 0 0 0 0 88,000,000 24.17%
3. Overseas listed foreign
shares
4. Others
III. Total shares 364,100,000 100.00% 0 0 0 0 364,100,000 100.00%
Explanation on reason of change: In the report period, part shareholders of the
Company transacted repayment for the substitutive shares in share merger reform and
the procedure of releasing restriction, which resulted in the change of aforementioned
share structure.
(II) Particulars about shareholder
1. Total shareholders ended the report period
Ended June 30th 2010, there totally were 34,831 shareholders of the Company,
including 27,254 of A-share holders, 7,577 of B-share holders.
2. Shares held by the shareholders at the end of report period
Particulars on shares held by top ten shareholders and top ten shareholders with
unrestricted conditions (Unit: Share)
Total amount of shareholders 34,831
Particulars about the shares held by the top ten shareholders
Full Name of shareholder
Nature of
shareholders
Proportion
of shares
held
Total amount
of shares held
Amount of the
restricted
shares held
Amount of
shares pledged
or frozen
Haikou Agriculture & Industry & Trade
(Luoniushan) Co., Ltd.
Domestic
non-state-owned
legal person
16.48% 60,000,000 30,638,180 0
Yangpu Tongrong Investment Management
Consultation Co., Ltd.
Domestic
non-state-owned
legal person
2.76% 10,052,720 10,052,720 0
Hainan Sanya Yinnong Industrial
Development Co., Ltd.
Domestic
non-state-owned
legal person
1.90% 6,930,000 0 0
China AMC Domestic 1.81% 6,600,000 6,600,000 0Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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non-state-owned
legal person
WU MING XIAO
Domestic natural
person
1.39% 5,068,971 0 0
Sanya Zhongxing Development Co., Ltd.
Domestic
non-state-owned
legal person
1.00% 3,630,000 3,630,000 0
Agriculture Bank of China Haikou Jinmao
Branch
Domestic
non-state-owned
legal person
0.91% 3,300,000 3,300,000 0
CITRINE CAPITAL LIMITED
Foreign legal
person
0.90% 3,265,200 0 0
China Foreign Economic and Trade Trust Co.,
Ltd.
Domestic legal
person
0.76% 2,772,000 0 0
CHINA MERCHANTS SECURITIES (HK)
CO., LTD.
Domestic legal
person
0.73% 2,655,007 0 0
Particulars about the shares held by the top ten unrestricted shareholders
Full name of shareholder Full name of shareholder
Full name of
shareholder
Haikou Agriculture & Industry & Trade (Luoniushan) Co., Ltd. 29,361,820 RMB common share
Hainan Sanya Yinnong Industrial Development Co., Ltd. 6,930,000 RMB common share
WU MING XIAO 5,068,971 RMB common share
CITRINE CAPITAL LIMITED 3,265,200
Domestically listed
foreign share
China Foreign Economic and Trade Trust Co., Ltd. 2,772,000 RMB common share
China Merchants Securities Hong Kong Ltd. 2,655,007
Domestically listed
foreign share
SANYA RURAL CREDIT UNION. 2,310,000 RMB common share
ZHANG DONG QI 1,983,500 RMB common share
Zhongshan Industrial Group Co., Ltd. 1,848,000 RMB common share
Ansheng Real Estate Development Co., Ltd in Chao’an County 1,847,990 RMB common share
Explanation on associated relationship or
accordant action among the aforesaid
shareholders
Among the ten shareholders, the top 1st and 2nd shareholders had related
relationships; the 2nd shareholder was jointly funded by top 1st shareholder
and other investors.
The Company was unaware of whether there existed associated relationship
or whether there existed consistent actionist regulated in the Management
Measure of Information Disclosure on Change of Shareholding for Listed
Companies.
3. Particulars about shares held by the top ten restricted shareholders and its restricted
conditions ended as June 30, 2010.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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Note: （1）The Company has implemented Share Merger Reform Prospectus on August 8, 2007.
The aforesaid statement did not include the shares which were not repaid substitutive shares but
not released the restriction; after repaying the part substitutive shares in Share Merger Reform, the
relevant shares could obtain the trade.
(2)the final confirmed date for tradable in market recognized as the date of approval by Stock
Exchange.
(III) Particulars about controlling shareholder of the Company
The controlling shareholder and actual controller of the Company remained
unchanged in the report period.
Section IV. Particulars about Directors, Supervisors and Senior
Executives
(I)In the report period, directors, supervisors and senior executives of the Company
did not hold the Company’s shares.
(II)Post-leaving, new engagement or dismissal of directors, supervisors and senior
executives didn’t take place in the Company in reporting period.
Section V. Report of Board of Directors
(I). General analysis on operating results and financial status of the report period
Unit: RMB
No. Item
Amount for this
period
Amount for the
same period of last
year
Increase or
decrease
proportion（%）
1 Operation income 20,018,480.32 16,063,765.21 24.62
2 Operation cost 3,371,403.38 2,688,025.65 25.42
3 Sales expense 8,368,177.03 7,265,382.38 15.18
4 Financial expense 152,944.30 88,590.29 72.64
5 Operation profit 471,851.22 -2,175,711.36 121.69
N
o. Name of the restricted shareholders
Amount of the
restricted
shares held
Date when could
be listed for trade
Amount of
additional
shares
which could
be listed
Restricted
condition
1
Haikou Agriculture & Industry & Trade
(Luoniushan) Co., Ltd.
30,638,180 2010-08-19 30,638,180
2
Yangpu Tongrong Investment
Management Consultation Co., Ltd.
10,052,720 2010-08-19 10,052,720
Please see Section
VI. 10 in the reportHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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6 Net profit 501,612.20 -2,239,209.50 122.40
7 Net cash flow arising from
operation activities
180,292.29 -1,248,622.76 114.44
Reason for change:
1. Increase of operating income was mainly due to recovery of tourism market which led to a
certain growth of average housing price and checking in rate of the hotel compared to the one at
the same time of last year.
2. Increase of operating cost was manily due to increase of income.
3. Increase of sales expense was mainly due to adjustment increase of staff salary and price
adjustment of utilities.
4. Increase of financial expense was mainly due to increase of procedure fees of credit.
5. Increase of operating profit was mainly due to significant increase of income and better control
of cost.
6. Increase of net profit was mainly due to significant increase of income and better control of
cost.
7. Increase of net cash flow arising from operating activities was mainly due to increase of
income.
(II) Operation in the report period
1. General introduction about operation
In reporting period, resulting from recovery of global economy and stable
development of national economy as well as that establishment of Hainan
International Tourism Island formally became national strategy, number of domestic
and foreign tourist of Hainan dramatically ascended, tourism developed well.
Domestic and overseas client market of the Company also improved, thus effectively
stopped the continuous descending of the hotel of the Company and retained the
stability of operation of the Company. Till end of this report period, the Company
realized main business income of RMB 20,018,500, 24.62% up year-on year; profit
from main business of RMB 501,600, 122.40% up year-on year; net amount of cash
flow arising from operating activities of RMB 180,300, 114.44% up year-on year.
2. Industry or product accounting for over 10% (10% included) of main business
income or main business profit of the report period:
Unit: RMB’0000
Product Income from selling
product Cost for selling product Gross profit ratio (%)
Income from room
affair
1,526.6 1.91 99.87
Food & beverage 475.25 335.23 29.46
Main business of the Company classified according to industry or product
Unit: RMB’0000
Main business classified according to industry
Classified according
to industries or
products
Operating
revenue
Operating cost
Gross profit
ratio (%)
Increase or
decrease of
operating
revenue over
the same
Increase or
decrease of
operating cost
over the same
period of last
Increase
or
decrease
of gross
profitHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
9
period of last
year (%)
year (%) ratio over
the same
period of
last year
(%)
Hotel service 2001.85 337.14 83.16 24.62 25.42 -0.11
Main business classified according to product
Guest room 1,526.6 1.91 99.87 25.21 218.33 -0.08
Food & beverage 475.25 335.23 29.46 22.76 24.99 -1.26
Among which: the total amount of related transaction that listed company provided products and
labor service to its controlling shareholder or subsidiaries was RMB 40,200.
Main business of the Company classified according to area
Unit: RMB’0000
Area Operating revenue
Increase or decrease of
operating revenue over the
same period of last year (%)
Hainan Sanya 2,001.85 24.62
3. In the report period, no significant change happened to profit constitution, main
business and its structure of the Company.
4. In the report period, the Company had no other operation activities which brought
significant influence upon net profit.
5. In the report period, the Company had not received investment income from
invested company.
6. Problems and difficulties in operation, and relevant solution methods:
With constant development of tourism spots around the country, constant shunt of
tourists and constant building of new hotels of various grades in Sanya, tourism
market in Sanya presented to be supersaturated, with a furious competition in
operation. For this, the operation group of the Company is actively researching for
various measures to fight against. It gradually made upgrade and reform in facility
establishments of the Hotel strengthened neatening of external environment of the
Hotel and reinforced employees’ trainings, to advance the Hotel in market
competition and ability of fighting against various unpredictable natural disasters.
(III)Investment of the report period
1. In the report period, the Company didn’t raise proceeds, and there were no proceeds
raised in last report period but were used till the report period.
2. In the report period, there was no application of project invested with the
non-raised proceeds.
(IV) The Company didn’t make profit prediction, relevant plan and prospect.
(V) In the report period, the Company had not made modification on the annual
operation plan disclosed in the Annual Report of last year.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
10
(VI) It was predicted by the Company that loss could occur in the 3rd quarter, which
was mainly due to that:
In report period, resulting from recovery of global economy and stable development
of national economy as well as that establishment of Hainan International Tourism
Island formally became national strategy, number of domestic and foreign tourist of
Hainan dramatically ascended, tourism developed rapidly. Domestic and overseas
client market of the Company also improved. The operation from 1 July to 30
September of 2010 has a deficit approximately RMB 1 million to RMB 1.3 million by
estimated, approximately RMB 0.5 million to RMB 0.8 million loss from 1 January
2010 to 30 September 2010.
Section VI. Significant Events
(I) Corporation governance
In the report period, strictly according to requirements of related laws and regulations
such as Company Law, Code of Corporate Governance for Listed Companies, Stock
Listing Rules of Shenzhen Stock Exchange, and the Company standardized its
operation, recified Articles of Association, Rules of Procedure of Shareholders’
Meeting and Rules of Procedure of Board of Directors, stabilized operation of the
Company. The actual status of legal-person governance structure of the Company has
no difference with the requirement of aforesaid documents.
In order to fulfilling the spirit of Maintaining Stability Work Meeting of National
Securities and Futures Supervisory System and the requirements of Notice on
Strengthening Investors Relationship Management to Protect Steady Capital Market
(No. HNZJF [2009] 61) issued by Hainan Securities Regulatory Bureau, the Company
took Working Guidelines for Investors Relationship Management in Listed Company
and Guidelines for Fair Information Disclosure in Listed Company issued by
Shenzhen Securities Exchange as direction, established Working Plan for Investors
Relationship Management in 2010, Accountability System for Major Mistake in
Information Disclosure of Annual Report, Management System for Insiders of
Internal Information and Management System for Users of External Information, and
the Company actively carried out work according to relevant rules. At present, the
actual condition of legal person governance structure accorded with relevant
requirements of normal document issued by CSRC.
(II) The Company didn’t make a plan in last year on implementing profit distribution
in this report period.
(III) Neither profit distribution nor capitalization of capital public reserves will be
performed in the half year of 2010.
(IV) Material Lawsuits and Arbitration
1. No material lawsuit and arbitration occurred in the report period.
2. No material lawsuit or arbitrative has been disclosed in the previous annual report.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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(V) Material asset buying, selling and restructuring
The Company performs no material asset buying, selling or restructuring in the report
period.
(VI) Material Contracts and Implementation
1. The Company has not been involved in such significant events as keeping as
custodian, contracted or leased any other company’s assets and vice versa in the report
period or extended from the previous periods.
2. In the report period, the Company had no material guarantees offered or any
guarantee which had not been implemented.
3. The Company neither entrusted others to manage cash assets nor had any cash
assets entrusted to others for management in the period or extended from the previous
period.
4. No controlling shareholder or its subsidiary occupies fund of the Company.
(VII) Debt Restructuring
In the report period, the Company had not performed debt restructuring.
(VIII) Related Transactions
In the report period, the actual largest shareholder of the Company-Haikou
Agriculture & Industry & Trade (Luoniushan) Co., Ltd., consumed totally RMB
40,244.60 in the hotel of the Company which was calculated according to market price.
(IX) Special explanation and independent opinions on capital occupation and external
guarantee of related parties
Independent Directors Chen Rijin, Feng Da’an and Li Guangzhong expressed special
explanations and independent opinions on capital occupation and external guarantee
of related parties in the first half year of 2010 as follows:
1. Explanation and independent opinions on capital occupation of controlling
shareholders and related parties
According to relevant regulations of Indirection Opinions on Establishing
Independent Directors System in Listed Company (No.ZJF [2003] 56) and Article of
Association, as independent directors of the Company, we read relevant materials
provided by the Company, and on the standpoint of independent judgment, we
expressed the following independent opinions on capital occupation of controlling
shareholders and related parties:
(1) There was no capital occupation by controlling shareholders or related arties
occurred in the report period.
(2) In the report period, the capital intercourses between the Company and related
parties were normal operating related transaction, with legal trade procedure and fair
price-making, without hurting interests of the Company and all shareholders.
2. Explanation and independent opinions on external guarantee
According to the requirements of Notice on Several Problems of Standardizing
Capital Intercourse between Listed Company and Related Parties and External
Guarantee (ZJF [2003] No. 56) and Notice on Standardizing External Guarantee of
Listed Company (ZJF [2005] No.120), as independent directors of the Company, we
conducted inspection and supervision on external guarantee of the Company which
occurred in the report period,. Now, we made explanation and expressed independentHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
12
opinions on external guarantee:
The Company had no external guarantee or illegal guarantee in the report period.
(X) Commitment made by the Company or shareholder holding over 5% shares in the
report period
Commitment and implementation made by Haikou Grocery Co., Ltd., the attorney of
the controlling shareholder of the Company-Haikou Agriculture & Industry & Trade
(Luoniushan) Co., Ltd.
(1) The debt of RMB 158,974,468.35 and relevant interest of the Company was
carried on and finally exempted and the implementation has been already finished.
(2) For the non-circulating shareholders, who have not clearly showed satisfaction on
the scheme till the equity registration day for this share merger reform scheme and
who can’t implement the consideration arrangement with the following situation: the
ownership of equity is involved in disputations, pledge and justice frozen, the
consideration needed for listed circulation right for the non-circulating shares held by
the aforesaid shareholders would be paid firstly by the first largest shareholder on
their favor. The implementation has been already finished.
(3) Pay the relevant fees for this share merger reform of the Company and the term
has been fulfilled.
(4) Since the implementation of the share merger reform, the non-circulating shares
held by it could not be transacted in listing market or transferred within 12 months;
when the aforesaid regulation expires, the original non-circulating shares could be
transacted through hanging out in Stock Exchange, while the amount sold could not
exceed 5% of its total shares within 12 months and 10% within 24 months.
For the shares together held by Yangpu Tongrong Investment and Management
Consultation Co., Ltd and the company, since the implementation of the share
merger reform, the shares could not be transacted in listing market or transferred
within 12 months; when the aforesaid regulation expires, the original non-circulating
shares could be transacted through hanging out in Stock Exchange, while the total
amount sold by the two companies could not exceed 5% of its total shares within 12
months and 10% within 24 months. Whether how many detailed shares could be listed
for circulation, it could be distributed depending on the shares proportion they
respectively held. The implementation has been already finished.
(5) Seek for restructure party to restructure the assets of the Company in proper time.
Till now, no proper restructure party has been found.
(XI) In the report period, particulars about the Engagement and dismissal for CPAs of
the Company
In the report period, the Company continued to engage ZONZUN Accounting Office
Ltd. as the audit organization.
(XII) Establishment and implementation of internal control system of the Company
In the report period, with the indirection of the board of directors and supervision of
supervisory committee, the Company constantly perfected system according to self
operation features and environment. According to laws, administrative rules and
department regulations such as Company Law, Securities Law and GovernmanceHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
13
Rules for Listed Companies, Stock Listing Rules for Shenzhen Stock Exchange, the
Company revised management systems such as Articles of Association, Rules of
Procedure of Shareholders’ Meeting and Rules of Procedure of Board of Directors,
further perfected internal control system, promoted normal operation and healthy
development of the Company and protected legal interests of investors.
(XIII) Securities investment and income
There was no securities investment in the report period.
(XIV) Relevant particulars about holding equity of other listed companies, unlisted
companies and companies planned to be listed
Till the end of the report period, the Company did not hold any equity of other listed
companies, unlisted companies and companies planned to be listed.
(XV) Particulars about shareholders who held over 5% shares of the Company
making additional commitment to limit sales of shares
Shareholders who held over 5% shares of the Company did not make additional
commitment to limit sales of shares.
(XVI) Particulars about reception, investigation and interview of the Company
In the report period, strictly according to Guidelines for Fair Information Disclosure
in Listed Company issued by Shenzhen Securities Exchange, the Company seriously
started the work of investors’ relationship with the principle of publicity, justness and
fairness. The Company received investors consultant mainly in spot shareholders’
general meeting and telephone, and objectively, truly, exactly and integrally
introduced production, operation and development of the Company to investors. The
Company strictly accorded with the principle of fair information disclosure, neither
having behavior of different treatment, selectively or privately disclosing nonpublic
significant information to special persons, nor violating the requirement of Guidelines
for Fair Information Disclosure in Listed Company.
In the report period, the Company had no reception, investigation and interview.
(XVII) In the report period, none of the Company, the Board of Directors or any
director had ever been inspected, experienced administrative penalty or been
criticized by circulating a notice of criticism by China Securities Regulatory
Commission, or condemned in public by Shenzhen Stock Exchange. No director or
the management has been involved in judicial enforcement in the period.
(XVIII) Information index for significant events in the report period
1. Notice on Abnormal Fructuation of Stock Change was published on page B10 in
Securities Times dated January 21, 2010, meanwhile, disclosed in
http://www.cninfo.com.cn (searching route: inputting stock code of the Company in
Inquiry for Individual Stock).
2. Notice on Fulfillment of Equity Transfer of Major Shareholders of the Company
was published on page C2 of Securities Times; page A6 of Hong Kong Commercial
Daily dated Feb 1, 2010, meanwhile, disclosed in http://www.cninfo.com.cn.
3. Notice on Abnormal Fructuation of Stock Change was published on page B3 of
Securities Times; page A17 of Hong Kong Commercial Daily dated Feb 4, 2010,Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
14
meanwhile, disclosed in http://www.cninfo.com.cn.
4. Indicative Notice on Lifting of Restrictions on Sale was published on page D15of
Securities Times; page B7 of Hong Kong Commercial Daily dated Apr, 2010,
meanwhile, disclosed in http://www.cninfo.com.cn.
5. Notice on Decision of the 8th Meeting of the 6th Board of Directors, Summary of 2009 Annual
Report, Notice on Holding 2009 Annual Shareholders’ Meeting and Notice Bulletin on
Performance of Jan-Jun of 2010 was published on page D70 of Securities Times; page
B13 of Hong Kong Commercial Daily dated Apr 28, 2010, meanwhile, disclosed in
http://www.cninfo.com.cn.
6. Notice on the First Quartely Report of 2010 was published on page D70 of Securities
Times; page B13 of Hong Kong Commercial Daily dated Apr 28, 2010, meanwhile,
disclosed in http://www.cninfo.com.cn.
7. Notice on Resolution of the 8th Meeting of the 6th Supervisory Committee was
published on page D70 of Securities Times; page B13 of Hong Kong Commercial
Daily dated Apr 28, 2010, meanwhile, disclosed in http://www.cninfo.com.cn.
8. Notice on Resolution of 2009 Annual Shareholders’ General Meeting was
published on page B4 of Securities Times; page A5 of Hong Kong Commercial Daily
dated May 21st, 2010, meanwhile, disclosed in http://www.cninfo.com.cn.
Section VII. Financial Report (Un-Audited)
(I) The financial report of the Company in the report period has not been audited.
(II)Financial statements (Attachment I)
(III)Notes to financial statements (Attachment II)
Section VIII. Documents for Reference
(I) The 2010 Semi-annual report carrying with personal signatures of Chairman of the
Board.
(II)Financial statements carrying with personal signatures and seals of principal of the
Company, person in charge of the accounting working and person in charge of
accounting institution.
(III) All documents publicly disclosed in the report period on designated newspapers
by CSRC.
(IV) Articles of Association.
(V) Other relevant information.
Chairman of the Board of Directors: Li Yuanbin
Board of Directors of
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
August 24, 2010Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
15
Attachment I.
Balance Sheet
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Jun. 30, 2010 Unit: RMB
Amount at period-end Amount at year-begin
Items
Note
s Merger Parent Company Merger Parent Company
Current assets:
Monetary funds 5.1 3,458,203.94 3,458,203.94 3,425,846.65 3,425,846.65
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable 5.2 8,035,144.75 8,035,144.75 6,254,566.72 6,254,566.72
Accounts paid in advance 1,741,004.68 1,741,004.68 1,324,440.00 1,324,440.00
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 5.4 286,392.09 286,392.09 140,370.25 140,370.25
Purchase restituted finance asset
Inventories 5.5 789,811.77 789,811.77 560,521.66 560,521.66
Non-current asset due within one
year
Other current assets 5.6 8,669,919.00 8,669,919.00 8,669,919.00 8,669,919.00
Total current assets 22,980,476.23 22,980,476.23 20,375,664.28 20,375,664.28
Non-current assets:
Granted loans and advances
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment real estate
Fixed assets 5.8 72,396,362.19 72,396,362.19 75,342,663.16 75,342,663.16
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 5.9 31,129,389.90 31,129,389.90 31,563,753.48 31,563,753.48Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
16
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 103,525,752.09 103,525,752.09 106,906,416.64 106,906,416.64
Total assets 126,506,228.32 126,506,228.32 127,282,080.92 127,282,080.92
Current liabilities:
Short-term loans
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Transaction financial liabilities
Notes payable
Accounts payable 5.11 2,105,814.23 2,105,814.23 1,698,454.68 1,698,454.68
Accounts received in advance 2,017,897.22 2,017,897.22 3,721,351.62 3,721,351.62
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 5.13 5,420,532.76 5,420,532.76 5,019,490.56 5,019,490.56
Taxes payable 5.14 -1,157,506.11 -1,157,506.11 -1,082,414.95 -1,082,414.95
Interest payable
Dividend payable
Other accounts payable 5.15 31,032,479.35 31,032,479.35 31,339,800.34 31,339,800.34
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due within
1 year
Other current liabilities
Total current liabilities 39,419,217.45 39,419,217.45 40,696,682.25 40,696,682.25
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilitiesHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
17
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 39,419,217.45 39,419,217.45 40,696,682.25 40,696,682.25
Owner’s equity (or shareholders’
equity):
Paid-up capital (or share capital) 5.16 364,100,000.00 364,100,000.00 364,100,000.00 364,100,000.00
Capital public reserve 5.17 54,142,850.01 54,142,850.01 54,142,850.01 54,142,850.01
Less: Inventory shares
Reasonable reserve
Surplus public reserve
Provision of general risk
Retained profit 5.18 -331,155,839.14 -331,155,839.14 -331,657,451.34 -331,657,451.34
Balance difference of foreign
currency translation
Total owner’s equity attributable to
parent company
87,087,010.87 87,087,010.87 86,585,398.67 86,585,398.67
Minority interests
Total owner’s equity 87,087,010.87 87,087,010.87 86,585,398.67 86,585,398.67
Total liabilities and owner’s equity 126,506,228.32 126,506,228.32 127,282,080.92 127,282,080.92
Profit Statement
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Jan.-Jun., 2010 Unit: RMB
Amount in this period Amount in last period
Items Note
s Merger
Parent
Company
Merger
Parent
Company
I. Total operating income 5.19 20,018,480.32 20,018,480.32 16,063,765.21 16,063,765.21
Including: Operating income 20,018,480.32 20,018,480.32 16,063,765.21 16,063,765.21
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 5.19 19,546,629.10 19,546,629.10 18,239,476.57 18,239,476.57
Including: Operating cost 3,371,403.38 3,371,403.38 2,688,025.65 2,688,025.65
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 5.20 1,100,224.54 1,100,224.54 883,507.09 883,507.09Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
18
Sales expenses 8,368,177.03 8,368,177.03 7,265,382.38 7,265,382.38
Administration expenses 6,553,879.85 6,553,879.85 7,313,971.16 7,313,971.16
Financial expenses 5.21 152,944.30 152,944.30 88,590.29 88,590.29
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 “-”)
III. Operating profit (Loss is listed with “-”) 471,851.22 471,851.22 -2,175,711.36 -2,175,711.36
Add: Non-operating income 5.22 201,241.35 201,241.35 158,595.00 158,595.00
Less: Non-operating expense 5.23 30,000.00 30,000.00 222,093.14 222,093.14
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) 643,092.57 643,092.57 -2,239,209.50 -2,239,209.50
Less: Income tax expense 141,480.37 141,480.37
V. Net profit (Net loss is listed with “-”) 501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
Net profit attributable to owner’s of parent
company
501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
Minority shareholders’ gains and losses
VI. Earnings per share
i. Basic earnings per share 0.0014 0.0014 -0.0061 -0.0061
ii. Diluted earnings per share 0.0014 0.0014 -0.0061 -0.0061
VII. Other comprehensive income
VIII. Total comprehensive income 501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
Total comprehensive income attributable to owners’
parent company
501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
Total comprehensive income attributable to minority
shareholders
Cash Flow Statement
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Jan.-Jun., 2010 Unit: RMB
Amount in this period Amount in last period
Items
Merger
Parent
Company
Merger
Parent
Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services
17,165,594.70 17,165,594.70 13,751,845.92 13,751,845.92
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institutionHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
19
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of disposal of transaction financial asset
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 780,879.80 780,879.80 187,578.80 187,578.80
Subtotal of cash inflow arising from operating
activities
17,946,474.50 17,946,474.50 13,939,424.72 13,939,424.72
Cash paid for purchasing commodities and receiving
labor service
3,751,093.21 3,751,093.21 3,691,670.13 3,691,670.13
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 5,117,576.51 5,117,576.51 4,207,632.53 4,207,632.53
Taxes paid 1,815,429.02 1,815,429.02 2,763,604.52 2,763,604.52
Other cash paid concerning operating activities 7,082,083.47 7,082,083.47 4,525,140.30 4,525,140.30
Subtotal of cash outflow arising from operating
activities
17,766,182.21 17,766,182.21 15,188,047.48 15,188,047.48
Net cash flows arising from operating activities 180,292.29 180,292.29 -1,248,622.76 -1,248,622.76
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
147,935.00 147,935.00 1,309,812.32 1,309,812.32
Cash paid for investment
Net increase of mortgaged loans
Net cash received from disposal of subsidiaries and
other units
Other cash paid concerning investing activitiesHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
20
Subtotal of cash outflow from investing activities 147,935.00 147,935.00 1,309,812.32 1,309,812.32
Net cash flows arising from investing activities -147,935.00 -147,935.00 -1,309,812.32 -1,309,812.32
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 32,357.29 32,357.29 -2,558,435.08 -2,558,435.08
Add: Balance of cash and cash equivalents at the period
-begin
3,425,846.65 3,425,846.65 6,009,603.45 6,009,603.45
VI. Balance of cash and cash equivalents at the period -end 3,458,203.94 3,458,203.94 3,451,168.37 3,451,168.37
Statement of Provision for Devaluation of Assets
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Jan.-June, 2010 Unit: RMB
Decrease in this period
Item
Book balance at
period-begin
Increase of
this period
Switching
back
Transferring
out
Book balance at
period-end
I. Total of provision for bad debts 79,990,846.53 79,990,846.53
II. Provision for falling price of inventory 789,334.23 9,470.24 779,863.99
III. Provision for devaluation of financial
asset available for sales
IV. Provision for devaluation of
held-to-maturity investment
V. Provision for devaluation of long-term
equity investment
14,716,374.26 14,716,374.26
VI. Provision for devaluation of investing
real estate
VII. provision for devaluation of fixed
assets
36,258,618.00 36,258,618.00Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
21
VIII. Provision for devaluation of
engineering materials
IX. Provision for devaluation of
construction in progress
X. Provision for devaluation of
productive biological asset
Including: Provision for devaluation of
mature productive biological asset
XI. Provision for devaluation of oil asset
XII. Provision for devaluation of
intangible asset
29,343,890.98 29,343,890.98
XIII. Provision for devaluation of
goodwill
XIV. Other 2,167,480.26 2,167,480.26
Total 163,266,544.26 9,470.24 163,257,074.02Consolidated Statement on Changes of Owners' Equity
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Semi-Annual of 2010 Unit: RMB
Amount in this report period Amount in last year
Owners' equity attributable to the parent company Owners' equity attributable to the parent company
Item
Paid-up capital
(Share capital)
Capital
reserves
Less:
Treasury
Stock
Reasonablel
reserve
Surplus
reserves
General
risk
provision
Retained profit Others
Minority’s
equity
Total owners’
equity
Paid-up capital
(Share capital)
Capital
reserves
Less:
Treasury
Stock
Reasonablel
reserve
Surplus
reserves
General
risk
provision
Retained profit Others
Minority’s
equity
Total owners’
equity
I. Balance at the
end of last year
364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67 364,100,000.00 54,142,850.01 -328,660,809.77 89,582,040.24
Add: Changes of
accounting
policy
Error correction
of the last period
Others
II. Balance at the
beginning of this
year
364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67 364,100,000.00 54,142,850.01 -328,660,809.77 89,582,040.24
III. Increase/
Decrease in this
year (Decrease is
listed with "-")
501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
(I) Net profit 501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
(II) Other
consolidated
income
Subtotal of (I)
and (II)
501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
(III) Owners'
devoted andHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
23
decreased capital
1. Owners'
devoted capital
2. Amount
calculated into
owners' equity
paid in shares
3. Others
(IV) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution
for owners
(shareholders)
4. Others
(V) Carrying
forward internal
owners' equity
1. Capital
reserves
conversed to
capital (share
capital)Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
24
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Others
(VI) Reasonable
reserve
1. Withdrawal of
this period
2. Use of this
period
IV. Period-end
balance of this
period
364,100,000.00 54,142,850.01 -331,155,839.14 87,087,010.87 364,100,000.00 54,142,850.01 -330,900,019.27 87,342,830.74
Statement on Changes of Owners' Equity of Parent Company
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Semi-Annual of 2010 Unit: RMB
Amount in this report period Amount in last year
Item Paid-up capital
(Share capital)
Capital
reserves
Less:
Treasury
Stock
Reasonable
reserve
Surplus
reserves
General
risk reserve
Retained profit
Total owners’
equity
Paid-up capital
(Share capital)
Capital
reserves
Less:
Treasury
Stock
Reasonable
reserve
Surplus
reserves
General
risk reserve
Retained profit
Total owners’
equity
I. Balance at the end of last
year
364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67 364,100,000.00 54,142,850.01 -328,660,809.77 89,582,040.24
Add: Changes of accounting
policy
Error correction of the lastHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
25
period
Others
II. Balance at the beginning
of this year
364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67 364,100,000.00 54,142,850.01 -328,660,809.77 89,582,040.24
III. Increase/ Decrease in this
year (Decrease is listed with
"-")
501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
(I) Net profit 501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
(II) Other consolidated
income
Subtotal of (I) and (II) 501,612.20 501,612.20 -2,239,209.50 -2,239,209.50
(III) Owners' devoted and
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV) Profit distribution
1. Withdrawal of surplus
reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
owners' equity
1. Capital reserves conversedHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
26
to capital (share capital)
2. Surplus reserves conversed
to capital (share capital)
3. Remedying loss with
surplus reserve
4. Others
(VI) Specialreserve
1. Withdrawal of this period
2. Use of this period
IV. Period-end balance of this
period
364,100,000.00 54,142,850.01 -331,155,839.14 87,087,010.87 364,100,000.00 54,142,850.01 -330,900,019.27 87,342,830.74Attachment II.
Hainan Dadonghai Tourism Center Co., Ltd.
Notes to the Financial Statement
(30 June, 2010)
Currency Unit: RMB yuan
Note 1. Basic Facts of the Company
1.1 Historical evolution of the Company
Hainan Dadonghai Tourism Center Co., Ltd. (hereinafter referred to as the Company),
was founded as a standardized limited company on 26 April, 1993, reorganized on
the basis of the former Hainan Sanya Dadonghai Tourism Center Development
Company limited and approved by Hainan Provincial Stock System Experimentation
Leading Group with its document No. [1993]11. On 6 May, 1996, the Company
underwent a restructuring and a corresponding division with the approval of Hainan
Provincial Securities Administration Office by its document No. [1996]58. On 8
October, 1996 and 28 January, 1997, the Company, with duly approval, went public
by issuing 80 million shares of B stock and 14 million shares of A stock respectively
at Shenzhen Stock Exchange. On 20 June, 2007, the Company carried out the Share
Merger Reform, under which, holders of non-circulating shares shall pay shares to
holders of circulating shares in exchange for circulating. Each holder of circulating
shares is entitled to receiving 3 shares for each 10 shares held. Upon implementation
of such consideration by bonus shares, the total number of shares of the Company
remains unchanged, while the shares structure experiences relative change.
As at 30 June 2010, the aggregate shares of the Company amounted to 364,100,000,
among which, shares with limited sale condition and those without such limit
condition totaled to 68,510,084 and 295,589.91 respectively, representing 18.82% and
81.18% of the total shares. The registered capital of the Company is RMB
364,100,000, and its legal representative is Li Yuanbin. The registered No. for its legal
person business license (copy) is 4600001003983, with the legal registered place
being Dadonghai, Hedong District, Sanya city.
1.2 Major products and labor services rendered by the Company
As the Company operate business in tourism & catering service industry, it mainly
engages in operation in relation to accommodation, catering industry, photography,
miniature garden and bonsai, grains and oil products, knitwear and textiles,
department stores, hardware fittings, chemical products (excluding those needing
specialized licenses), daily goods, industrial production means (excluding those
needing specialized licenses), metal materials, machinery and equipment, and agent
service oriented toward tour ticket (on an item-license basis).
Note 2. Major accounting policies, accounting estimation and prior errorsHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
28
2.1 Basis of preparation of financial statements
The Company operates on no-going basis. Recognitions and measures are conducted
by reference to the actual transactions and matters in accordance to requirements of
Accounting Standards for Enterprises-Basic Standards and other various accounting
standards, and on the basis of which, financial statements are prepared.
The Company applied the Accounting Standards for Enterprises issued by the
Ministry of Finance in 2006 effective from 1 January 2007. the Company also
adjusted retrospectively the comparable financial statements following Accounting
Standards for Enterprises No. 38- the First Adoption of Accounting Standards for
Enterprises and other relevant regulations.
2.2 Statement in respect of compliance with Accounting Standards for
Enterprises
All the financial statements prepared by the Company conform to the requirements of
Accounting Standards for Enterprises, and reflect truthfully and completely the
relevant information concerning the financial status, operational results, cash flow and
movements in shareholders’ equity of the Company.
2.3 The accounting period
The accounting period covers the accounting year beginning on January 1 and ending
on December 31.
2.4 The standard accounting currency
The standard accounting currency is RMB.
2.5 Accounting for business combination under the same control or not under the
same control
2.5.1 Accounting for business combination under the same control:
Equity combination method is adopted for business combination under the same
control, which means that assets and liabilities acquired by a party in a business
combination shall be measured at the carrying value of the assets and liabilities
acquired as at the combination date. Difference between the net carrying value of
assets acquired and the carrying value of combination consideration paid by such
party shall be adjusted against capital reserve. In the event that capital reserve is not
sufficient to offset, then retained profit shall be adjusted.
2.5.2 Accounting for business combination not under the same control:
Purchase method is adopted for business combination not under the same control,
which means that the assets paid and liabilities occurred or assumed by a party as
consideration for business combination as at the purchase date shall be measured at
fair value. As to the difference between fair value and their carrying values, it shall be
accounted in current gains and losses. In the case that the consideration paid by the
purchaser is higher than the fair value of net recognizable assets acquired from the
business combination, the difference shall be recognized as goodwill; while if lower,
then recognized as current gains and losses.
2.6 Recognition standard for cash equivalents
For the purpose of preparing cash flow statement, investments satisfying all the four
conditions including short term (due within 3 months commencing from the purchaseHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
29
day), strong liquidity, easy to convert into cash with specified amount, and low
exposure to value fluctuation, are recognized as cash equivalents.
2.7 Foreign currency business and translation of foreign currency statements
2.7.1 Calculation method for foreign currency business:
Foreign currency business is accounted in RMB converted at the spot exchange rate of
the transaction day.
Balance of monetary items denominated in foreign currency shall be translated at the
spot exchange rate as of the balance sheet date, with the occurred exchange difference
recorded into current gains and losses, provided that those exchange difference arising
from the special foreign currency borrowings related to assets acquisition meeting
capitalization condition shall be dealt with by reference to borrowing expenses
capitalization principle. Non-monetary items of foreign currency measured in
historical cost is still converted at the spot exchange rate of the transaction date,
without changing the accounting currency standard amount. Non-monetary items of
foreign currency measured in fair value is converted at the spot exchange rate of the
confirmation date of the fair value, with the difference arising thereupon recorded as
current gains and losses or capital reserve.
2.7.2Accounting for translation of foreign currency financial statements:
The asset and liability items of the balance sheet are converted at the spot exchange
rate of the balance sheet date. The owner’s equity item, except for undistributed profit,
is converted at the spot exchange rate as of the date of occurrence. Revenue and
expense items in the income statement are converted at the spot exchange rate as of
the date of transaction. The translation difference in the foreign currency financial
statement arising from the above conversions is separately listed under the owner’s
equity item in the balance sheet.
For the purpose of disposing overseas operation, the translation differences of foreign
currency financial statement presented under the owners’ equity in balance sheet and
related to such overseas operation shall be transferred to disposal of current gains and
losses from owners’ equity account. In case of partial disposal as for such overseas
operation, the translation difference of foreign currency financial statement of such
disposed part shall be calculated according to the ratio of disposal, and then be
transferred to disposal of current gains and losses account.
2.8 Financial instruments
2.8.1 Classification of financial assets and financial liabilities
(1) Financial assets are divided into the following four categories at initial
recognition:
a. Financial assets at fair value through current gains and losses, including
transactional financial assets and financial assets specified at fair value through
current gains and losses;
b. Held-to-maturity investments;
c. Loans and account receivables;
d. Financial assets available for sale.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
30
(2) Financial liabilities are divided into the following two categories at initial
recognition:
a. Financial liabilities at fair value through current gains and losses, including
transactional financial liabilities and financial liabilities specified at fair value through
current gains and losses;
b. Other financial liabilities.
2.8.2 Recognition and measure method for financial assets and financial liabilities
(1) Financial assets and financial liabilities at fair value through current gains and
losses
Fair value is deemed as the initial recognition amount upon acquisition (net of cash
dividend declared but not paid yet or debenture interests due but not received yet),
with relevant business expenses recorded in current gains and losses.
Interests or cash dividends acquired during the holding period are recognized as
investment income. Movements to fair values are recorded in current gains and losses
as at year end.
(2) Held-to-maturity investments
The sum of fair values (net of debenture interests due but not received yet) and
relative transaction expenses is recognized as initial recognition amount upon
acquisition.
During the holding period, interest income is recognized under the amortized cost and
effective interest rate (under nominal interest rate if the effective interest rate is
similar to the nominal interest rate), and then recorded in investment income.
Effective interest rate is recognized upon acquisition and remains unchanged during
the expected continuance period or a shorter period (if any).
In case of disposal, difference between amount received from the disposal and
carrying value of the investment shall be recorded in investment income.
(3) Account receivables and loans
As to receivables formed from commodities sales or service provision by the
Company, together with the creditors held by the Company in respect of debt
instruments of other entities (excluding those having quotation in an active market)
which include account receivables, notes receivables, accounts paid in advance, other
receivables and long-term receivables, the agreed payment receivables set out in
agreement or contract entered into with purchasers are deemed as the initial
recognition amount. While for those which have nature of financing, initial
recognition is conducted by reference to their present values.
Upon recovery or disposal, difference between amount received from the recovery or
disposal and carrying value of the receivables shall be recorded in current gains and
losses.
(4) Financial assets available for sale
The sum of fair values (net of cash dividend declared but not paid yet or debenture
interests due but not received yet) and relative transaction expenses is recognized as
initial recognition amount upon acquisition.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
31
During the holding period, interests or cash dividend acquired are recognized as
investment income. At each year end, they are measured at fair value through capital
reserve (other capital reserve).
In case of disposal, difference between amounts paid for acquiring such assets and
their carrying values shall be recorded in investment gains and losses; meanwhile, the
corresponding disposal amount to accumulated change of fair value which are directly
included in owners’ equity shall be switched out to include in investment gains and
losses.
(5) Other financial liabilities
Initial recognition amount equals to the sum of fair value and relative transaction
expense. Consequent measure effects at amortized cost.
2.8.3 Confirmation basis and measurement method of financial assets transfer
The Company terminates recognition of financial asset which satisfies any of the
following conditions:
(1)The right to receive cash flow from such financial assets has been transferred to
another party;
(2)Almost all risks and rewards under the ownership of such financial assets have
been transferred to the transferee;
(3)Control over the financial assets has been abandoned though almost all risks and
rewards under the ownership of the assets have neither been transferred nor
maintained.
As for financial assets satisfying conditions to terminate recognition, the difference
between the following two items is counted as current gains and losses:
(1) Book value of the financial assets transferred;
(2) Consideration received due to the transfer, plus the accumulated change of fair
value (financial assets available for sale) originally counted into owners’ equity
directly.
2.8.4 Recognition method for fair value of major financial assets and liabilities:
The fair value of financial assets or liabilities with an active market is determined
according to their quotations in the active market, including prices quoted regularly by
bourses, brokers, trade associations and pricing institutions which usually represent
prices actually occurring in fair transactions of the market. As for financial assets or
liabilities without an active market, the fair value is determined through estimation
techniques, which includes considering recent actual prices adopted parties familiar to
the relevant situation and transacting on a volunteer basis, referring to current fair
values of other similar or homogeneous financial assets or liabilities, cash flow
discount method, and option pricing model, etc.
2.8.5 Impairment test and impairment provision method in respect of financial assets:
(1)Impairment provision for financial assets available for sale
As at year end, in the event that fair value of financial assets available for sale
declined greatly or it is expected that this decline belongs to a provisional tendency
after taking into account of various related factors, then impairment is determined to
such assets. Accordingly, the accumulated losses arising from decline of fair valueHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
32
originally accounted in owners’ equity directly shall be switched out and impairment
loss shall then be recognized.
(2)Impairment provision for held-to-maturity investment
Impairment loss of held-to-maturity investment is measured by reference to that used
for measuring impairment loss of account receivables.
2.9 Recognition standard and provision method for impairment provision of
account receivables
2.9.1 Recognition standard and provision method for impairment provision of account
receivables with significant amount in single item
Recognition standard for account receivables with significant amount in single item:
the top 5 account receivables in terms of balance as at year end.
Provision method for impairment provision of account receivables with significant
amount in single item: individual impairment test shall be conducted for account
receivables with significant amount in single item at period end. In case of existence
of evidence showing that the recoverable amount decreases, impairment loss is
recognized on the basis of the difference between present value of its future cash flow
and its carrying value. Meanwhile, impairment provision shall be provided.
2.9.2 Apart from those account receivables which have been provided impairment
provision separately, the Company determines the following percentages of bad debt
provision with consideration of the present condition under the ageing analysis, based
on the actual loss rate of account receivables groups of prior years which have
identical or similar nature and similar credit risks characteristics:
Ageing Percentage(%)
Within a year 0
1 to 2 years 5
2 to 3 years 15
3 to 4 years 25
4 to 5 years 50
Over 5 years 100
2.10 Calculation method for inventories
2.10.1 Category of inventories
Categories of inventories: raw materials, stock goods, low-value consumables, trusted
supply for processing, foodstuffs, etc.
2.10.2 Pricing method for inventories delivered
Stock goods are calculated at selling price. Balance between introduction and selling
prices of commodities is subject to adjustment on a monthly basis by adoption of
comprehensive prices balance amortization method. Stock materials are priced at
effective cost, whether acquired or recorded in stock. However, they are priced at
first-in and first-out method when applied for use and delivered out. Low-value
consumables are amortized at one-off written-off method when applied for use.
2.10.3 Inventory taking system
The Company adopts perpetual inventory taking system.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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2.10.4 Provision method for inventory falling price reserve
The Company has overall review over inventories at period end. It is general for the
Company to provide inventory falling price reserve by reference to balance between
single inventory costs exceeding its net realizable value. As for those inventories in
large quantity and low prices, inventory falling price reserve is provided according to
categories of inventories.
2.11 Calculation of long-term equity investment
2.11.1 Initial measurement
(1) Long-term equity investment formed from business combination
Business combination under the same control: as for those combinations, the
considerations of which are satisfied by the Company through cash payment,
transferring non-cash assets or undertaking obligations and issuance of equity
securities, initial investment cost of long-term equity investment is determined
according to the share of carrying value of owners’ equity of the party combined as at
the combination date. Balance between such initial investment cost and combination
consideration payment is adjusted against capital reserve; when capital reserve is
insufficient to offset, then it shall be adjusted against retained profit. Each direct
related expense arising from combination, including the audit fee, appraisal fee and
legal service fee, shall be recorded in current gains and losses upon occurrence.
Business combination not under the same control: the Company shall take the
combination cost recognized in accordance with Accounting Standards for Enterprises
No. 20-Business Combination on purchase date as the initial investment cost of
long-term equity investment.
(2)Long-term equity investment acquired in other ways
Long-term equity investment acquired by cash: initial investment cost represents the
actual payment for such purchase.
Long-term equity investment acquired by issuance of equity securities: initial
investment cost represents the fair value of equity securities in issue.
Long-term equity investment injected by investors: initial investment cost represents
the value agreed in investment contract or agreement (net of cash dividend or profit
declared but not paid yet), with exclusion of those agreed values which are not fair.
Provided that exchange of non-monetary assets has commercial nature and fair values
of assets exchanged for or with could be reliably measured, initial investment cost of
long-term equity investment exchanged in with non-monetary assets is determined
according to the fair value of assets exchanged with, unless there is evidence proving
that fair value of assets exchanged in is more reliable. As for the exchange of
non-monetary assets not meeting the aforementioned conditions, their initial
investment costs are determined according to the carrying value of assets exchanged
with and relevant taxes payable.
For long-term equity investment acquired through debt reorganization, its initial
investment cost is determined based on fair value.
2.11.2References for common control and material effect over invested company
For such controls jointly shared over certain economic activity according to anHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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agreement, it only exists when other parties to such investment offer unanimous
consent toward significant finance and operation decisions related to such economic
activity. Then, a common control is deemed to effect with other parties over such
invested company. In the event that a party is entitled to participate in decision
making of an enterprise in respect of its finance and operation decisions, while that
party is not able to conduct control or common control with other parties over such
policies, then that party is considered to have significant effect upon such invested
company.
2.11.3Consequent measure and income recognition
For a company having significant effect or common control upon an invested unit, in
the case that initial investment cost is higher than share of fair value of identical net
assets of the invested unit, balance between them is not subject to adjustment against
initial investment cost of long-term equity investment; While if lower, balance shall
be included in current gains and losses.
Long-term equity investment in subsidiaries is calculated at cost method, and shall be
adjusted at equity method upon preparation of consolidated financial statements.
For long-term equity investment where an investment party has no common control or
significant effect over the invested unit and which has no quotation in an active
market and whose fair value can not be measured reliably, it shall be calculated at cost
method.
For long-term equity investment where an investment party has common control or
significant effect over the invested unit, it shall be calculated at equity method.
Investment income recognized under cost method is limited to allocation of
accumulated net profit produced by invested unit since it receives that investment.
Any profit or cash dividend received exceeding such limit will be recovery of initial
investment cost.
When recognizing share of losses of invested unit under equity method, the following
order shall be followed: first of all, offset carrying value of long-term equity
investment. Second, in case of carrying value of long-term equity investment being
insufficient for offset, continue to recognize investment loss to the extent of carrying
value of other long-term equities which substantially constitute net investments in that
invested unit, to offset carrying values of long-term receivables. Last, after the above
actions, if a party still assume additional obligations according to investment contract
or agreement, projected liability then shall be recognized according to the obligations
it is expected to assume, and then included in current investment loss.
In the event that such invested unit begins to realize profit in following periods, the
invest party shall, after deduction of unrecognized share of losses, proceed in an
adverse order as set out above, reduce accounting of book balance (projected
liabilities recognized), resume carrying value of long-term equities and long-term
equity investments which substantially constitute net investments in that invested unit
while recognizing investment income.
Accounting for other movements to owners’ equity (other than net gains and losses) of
invested unit: as for other movements to owners’ equity (other than net gains andHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
35
losses) of invested unit, invest company calculates its shares enjoyed or assumed
based on its shareholding percentage, provided that the shareholding proportion
remains constant. Upon which, the company adjusts carrying value of long-term
equity investment while increasing or decreasing capital reserve (other capital
reserve).
2.12 Kinds of investment real estate and measure model
Investment real estate represents properties held fur purpose of making rental or
capital appreciation, or both. It includes, among other things, land use right leased,
land use right held and ready to transfer upon appreciation and constructions leased.
The Company adopts cost model for measuring investment real estate. Assets for lease,
being investment real estate measured under cost model, follow the same depreciation
policies as to the fixed assets of the Company. Land use right for lease follows the
same amortization policies as to intangible assets; for any impairment indication,
recoverable amount shall be estimated. In case of the recoverable amount being lower
than the carrying value, the Company will accordingly recognize impairment losses.
2.13 Pricing and depreciation method for fixed assets
2.13.1 Recognition conditions for fixed assets
Fixed assets represent the tangible assets held for the purposes of producing goods,
providing labor services, lease or operational management, with service life over one
year. Fixed assets are recognized only when the following conditions are all satisfied:
(1)Economic benefit related to such fixed asset is likely to flow into the Company;
(2)Cost of such fixed asset could be measured reliably.
2.13.2 Classification of fixed assets
Fixed assets are divided into houses and constructions, machinery equipment,
transportation equipment, electrical entertainment equipment and other equipments.
2.13.3 Initial measure of fixed assets
Fixed assets are measured initially at effective cost upon acquisition.
External purchase cost for fixed assets is determined by references to purchase
payment, relative taxes, and freight, loading & uploading fee, installation fee and
professional service fee attributable to fixed assets for bringing such assets to the
expected utilization.
For fixed assets which are acquired with payment terms exceeding normal credit
terms and substantially have nature of financing, their costs are determined according
to the present value of acquisition payment.
For self-developed fixed assets, their costs constitute all necessary expenses arising
from promoting such assets into expected utilization situation.
For fixed assets acquired in debt reorganization as satisfaction for debts, they are
accounted at their fair values. And balance between carrying value of reorganized debt
and fair value of such fixed assets shall be recorded in current gains and losses.
Provided that exchange of non-monetary assets has commercial nature and fair values
of assets exchanged for or with could be reliably measured, fixed assets exchanged in
is accounted according to the fair value of assets exchanged out, unless there is
evidence proving that fair value of assets exchanged in is more reliable. As for theHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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exchange of non-monetary assets not meeting the aforementioned conditions, costs of
fixed assets exchanged in are determined according to the carrying value of assets
exchanged out and relevant taxes payable, without recognition of gains and losses.
For fixed assets which are acquired through business combination under the same
control, they are accounted according to carrying value of party acquired; for fixed
assets which are acquired through business combination not under the same control,
they are accounted according to fair value.
For fixed assets leased for financing, they are accounted at the lower of fair value of
leased assets as at the commencement date of lease and present value of minimal lease
payment.
2.13.4 Depreciation provision method for fixed assets
Depreciation of fixed assets is calculated under average term method, with the
following depreciation rates determined according to classification of fixed assets,
estimated economic service life and estimated residual value (being 5% of the original
value):
Category of assets Expected service life Estimated net residual
value
Depreciation rate per
annum
Houses &
constructions
20—40 5% 4.75—2.37
Machinery
equipment
8—20 5% 11.87—4.75
Electrical
entertainment
equipment
5—16 5% 19—5.93
Transportation
equipment
7—12 5% 13.57—7.91
Other equipments 8 5% 11.87
Improvements 5 5% 19
2.14 Calculation of construction in process
2.14.1 Classifications of construction in process
Construction in process is calculated on the basis of approved project.
2.14.2Standard and timing for transferring constructions in process into fixed assets
Constructions in process are accounted as fixed assets at all expenses occurred for
making such constructions reaching the expected purpose. As for those constructions
in process which have reached expected purpose while completion settlement has not
been conducted for yet, they shall be accounted against fixed assets at the estimated
value based on project budget, construction cost or actual engineering cost.
Meanwhile, depreciation is provided for such assets under the depreciation policy of
the Company applicable to its fixed assets. Upon completion of completion settlement,
the original temporarily-estimated value shall be adjusted against the actual cost,
while the original depreciation provision is not subject to adjustment.
2.15Capitalization of borrowings expense
2.15.1 Principles for recognition of capitalization of borrowings expense
Borrowings expense arisen by a company which can be directly attributable toHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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purchase or production of assets satisfying capitalization conditions, shall be subject
to capitalization and credited into relative assets cost; other borrowings expenses are
recognized as expenses upon occurrence and credited into current gains and losses.
Asset satisfying capitalization condition represents such fixed asset, investment real
estate and inventory which take a long time purchase or production activities to reach
expected purpose or the situation for sale.
Capitalization commences for borrowings expense when the conditions below all
reached:
(1)Capital expenses occur, which include expenses arising from purchasing or
producing assets satisfying capitalization condition in manners of cash payment,
transferring non-cash assets or assuming interest-bearing debts, etc;
(2)Borrowings expenses have occurred;
(3)Purchase or production activities required for making assets reach expected
purpose or situation for sale have started.
Borrowings expense shall be stopped with capitalization when abnormal interrupt
(over 3 months) happens during the purchase or production process in respect of such
assets satisfying capitalization condition.
Borrowings expense shall be stopped with capitalization when assets satisfying
capitalization condition reach expected purpose or situation for sale during the
purchase or production process.
Borrowings expense of part assets shall be stopped with capitalization when such part
of assets satisfying capitalization condition is separately completed and available to
use separately during the purchase or production process.
2.15.2 Capitalization period of borrowings expense
Capitalization period means the period commencing from the start of capitalization to
the stop of capitalization for borrowings expense, excluding the period when
borrowings expense is temporarily stopped with capitalization.
2.15.3 Calculation for borrowings expense capitalized
Before assets satisfying capitalization conditions purchased or produced arrive
expected purpose or situation for sale, interest expenses (net of interest income or
investment income arising from unutilized borrowings through saving in bank or
making provisional investments) and affiliate expenses of special borrowings shall be
capitalized.
Interest arising from general borrowings which shall be capitalized is calculated based
on the weighted average number of the exceeding part of accumulated assets expenses
over that of special borrowings at the end of each month times capitalization ratio of
occupied general borrowings. Such capitalization ratio is determined according to the
weighted average interest rate of general borrowings.
In case of discount or premium existed in borrowings, the Company will determine
the amortized discount or premium amount for each accounting period at effective
interest method, then to adjust interest of each period.
2.16 Calculation for intangible assets
2.16.1 Pricing for intangible assets
Intangible assets are accounted generally at effective cost upon acquisition;
Cost of externally-acquired intangible assets include purchase payment, related taxes
and other expenses directly attributable to matters making such assets reach expected
purpose. For intangible assets which are acquired with payment terms exceeding
normal credit terms and substantially have nature of financing, their costs areHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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determined according to the present value of acquisition payment.
For intangible assets acquired in debt reorganization as satisfaction for debts, they are
accounted at their fair values. And balance between carrying value of reorganized debt
and fair value of such intangible assets shall be recorded in current gains and losses;
Provided that exchange of non-monetary assets has commercial nature and fair values
of assets exchanged for or with could be reliably measured, intangible assets
exchanged in is accounted according to the fair value of assets exchanged out, unless
there is evidence proving that fair value of assets exchanged in is more reliable. As for
the exchange of non-monetary assets not meeting the aforementioned conditions,
costs of intangible assets exchanged in are determined according to the carrying value
of assets exchanged out and relevant taxes payable, without recognition of gains and
losses.
For intangible assets which are acquired through business combination under the same
control, they are accounted according to carrying value of party acquired; for
intangible assets which are acquired through business combination not under the same
control, they are accounted according to fair value.
2.16.2 Service life and amortization of intangible assets
Intangible assets with limited service life are amortized at straight line method against
the expected service life. Intangible assets with indefinite service life are not subject
to amortization. Amortization tenure of intangible assets with limited service life are
set below:
(1) Those within law regulations are amortized according to law; within contract
stipulations, according to contract; within both, according to the shorter tenure;
without relevant regulations or stipulations, within 10 years of durability.
(2) Land use right is amortized averagely according to specified service life of land
use right.
The Company has review over service life and amortization method of intangible
assets with limited service life at each year end. In view of the review, it is confirmed
that service life and amortization method of service life at the end of this year is the
same as to the previous estimation.
2.17 Amortization method and amortization tenure of long-term deferred
expenses
Long-term deferred expenses are amortized averagely during the beneficial period,
among which:
(1)Rental paid in advance for leased-in fixed asset for purpose of operation is
amortized averagely against the term stipulated by lease contract or other reasonable
method.
(2)Expenses arising from improvement to fixed assets leased by operation lease are
amortized averagely against the shorter period between the remaining lease period or
available service life of lease assets.
2.18 Impairment of other principal assets (other tan inventories, investment real
estate and financial assets)
2.18.1 Long-term equity investment
As for long-term equity investment which is calculated at equity method, has noHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
39
quotation in an active market and whose fair value can not be measured reliably, its
impairment loss is determined based on the balance between its carrying value and
present value of future cash flow of similar financial assets discounted at prevailing
market return rate.
As for other long-term equity investments, if measure result of recoverable amount
shows that the recoverable of such long-term equity investment is lower than its
carrying value, then the balance between them shall be recognized as impairment loss.
Impairment loss of long-term equity investment is not subject to reversal once
recognized.
2.18.2 Long-term non-financial assets including fixed assets, construction in process,
intangible assets and goodwill
For long-term non-financial assets such as fixed assets, construction in process, and
intangible assets, the Company has judgment every year end on whether there is
impairment indication in those assets.
As for goodwill arising from business combination and intangible assets with
indefinite service life, impairment test is conducted every year, no matter whether
impairment indication exists or not.
Recoverable amount of an asset shall be estimated if impairment indication exists in
such asset. Recoverable amount is determined by fair value of asset less the higher of
net amount (after deduction disposal fee) and present value of expected future cash
flow of such asset.
In case of recoverable amount being lower than carrying value of an asset, the
carrying value then shall be reduced to the extent of recoverable amount, with the
reduced part recognized as impairment loss which is accounted in current gains and
losses. Meanwhile, corresponding asset impairment provision shall be provided.
Upon recognition of impairment loss, depreciation or amortization expense of such
impaired asset shall be adjusted accordingly in future periods, so as to make sure that
adjusted carrying value (net of estimated residual value) of the asset is systematically
amortized against the remaining service life of the asset.
Impairment loss of long-term non-financial assets such as fixed assets, construction in
process, and intangible assets is not subject to reversal in following accounting
periods once recognized.
In case of indication showing that an asset is probably to experience impairment, the
Company will estimate its recoverable amount based on individual asset. If it is hard
to estimate the recoverable amount of an individual asset, then the recoverable amount
is determined based on the assets group such asset belongs to.
2.19 Calculation for remuneration payable to employees
2.19.1 Remuneration payable to employees represents various compensations and
other related expenses paid by the Company to its employees for their service
provision to the Company. It includes salary, bonus and allowances; staff welfare;
social insurances, such as endowment insurance, unemployment insurance, labor
injury insurance, etc; housing provident fund; labor unit charge and staff education fee;
non-monetary welfare; compensation for dismissal of labor contract with employees;
other expenses related to services received from employees.
2.19.2 Apart from the compensation arising from dismissal of labor contract and
meanwhile meeting required recognition conditions which is recorded in current
administration expense, remuneration payable to employees shall be processed
according to the following situations in terms of beneficial parties in respect of theHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
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services provided by employees: employee remuneration assumed from service
provision shall be included in labor service cost; those assumed from construction in
process and intangible assets shall be included in construction cost for fixed assets or
intangible assets; other employee remuneration other than the aforementioned types
shall be recorded in current gains and losses.
2.19.3 Dismissal welfare: in respect of dismissal of service relationship with
employees before expiration of service contract, or compensation suggestion offered
for encouraging employee to receive a willing fire, the Company recognizes the
projected liability arising from compensation offered for dismissal of service
relationship with employees when the Company has made formal
service-relationship-dismissal plan (or presentation of willing fire suggestion) and is
going to implement such plan immediately, and besides, the Company can’t take back
such plan or suggestion separately.
2.20 Recognition standard and calculation method of projected liabilities
The Company recognizes obligations related to contingent events as projected
liabilities if the conditions below get all satisfied:
(1)Such obligation is current obligation assumed by the Company;
(2)Implementation of such obligation may lead to outflow of economic benefit;
(3)Such obligation can be measured reliably.
Projected liability is initially measured according to the best estimate of expenses
required for implementing relative current obligations. In the event that the required
expenses exist in a consecutive scope and possibility for various results is the same
within the scope, then the best estimate shall be determined at the middle number in
such scope; if single project is involved by contingent event, then it is recognized as
to the amount with the biggest possibility. If various projects are involved by
contingent event, then it is recognized by references to various possible results and
relevant probability. The Company has taken into account risks, uncertainty and
monetary tame value related to contingent event when confirming the best estimate.
If required expenses of project liability are expected to be compensated by a third
party or other parties entirely or partially, or when compensation is believed to receive,
then they shall be recognized as assets separately, to the extent that compensation
recognized will not exceed carrying value of recognized liability.
2.21Principles for income recognition
2.21.1 In respect of commodities sales income: recognized when the conditions below
get all satisfied:
(1)The Company has already transferred substantial risks and reward of ownership of
commodities to purchaser;
(2)The Company has neither retained continuous management right generally
associated with ownership, nor effected effective control over sold commodities;
(3)Income can be measured reliably;
(4)Related economic benefit is likely to flow into the Company;Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
41
(5)Related cost occurred or to occur can be measured reliably.
2.21.2 Provision of labor service: provision of labor service which can be reliably
measured as at balance sheet date is recognized with service income at percentage of
completion method. Completed progress of provision of labor service is recognized
according to measurement over completed works.
In case of impossibility to measure reliably labor service as at balance sheet date, then
things should proceed as follows:
(1)If labor cost which has occurred is expected to get compensation, the Company
recognizes labor income according to such cost and carries forward to labor cost with
the same amount.
(2) If labor cost which has occurred is not expected to get compensation, the
Company records such cost against current gains and losses, without recognition of
labor service income.
2.21.3 Income from transferring assets use right: recognition conditions include
related economic benefit is likely to flow into an enterprise and income can be
measured reliably. Interest income is determined based on the utilization period in
respect of monetary assets and effective interest rate. Utilization income is determined
according to payment collection time and method agreed in related contract or
agreement.
2.22 Types of government grant and accounting treatment
Only the conditions below get satisfied can recognize government grant:
(1)An enterprise can meet the conditions attached to government grant;
(2) An enterprise can receive government grant.
For government grant belonging to monetary assets, it shall be measured at the
amount received or receivable; for that belonging to non-monetary assets, it shall be
measured at fair value; in case of impossibility to reliably measure fair value, it shall
be measured at nominal amount.
Assets-related government grant is recognized as deferred income and allocated
averagely against the service life of such related assets, and credited into current gains
and losses. However, government grant measured at nominal amount shall be credited
into current gains and losses directly.
Government grant related to income shall be processed according to the following
situations:
(1)Those granted for compensating related expenses or losses of future periods shall
be recognized as deferred income, and accounted in current gains and losses against
the period when related expenses is recognized.
(2) Those granted for compensating related expenses or losses which have happened
already to an enterprise shall be directly accounted in current gains and losses.
2.23 References for recognition of deferred income tax assets and deferred
income tax liabilities
(1)As for the balance between carrying value of assets and liabilities and taxation
basis, the Company recognizes deferred income tax assets and liabilities under the tax
rate applicable to the period when such assets are expected to recover or such
liabilities are expected to settle;Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
42
(2)Deferred income tax assets are recognized to the extent of assessable income used
for offsetting the temporary difference;
(3)The Company reviews carrying value of deferred income tax assets as at balance
sheet date. If it is probable that the Company is not able to obtain sufficient assessable
income to offset deferred income tax assets, carrying value of deferred income tax
assets then shall be reduced. If able, then the reduced amount shall be reversed.
2.24 Changes of principal accounting policies and accounting estimation and
effect thereof
2.24.1 Changes of accounting policies
There is no change in accounting policies during the year.
2.24.2 Changes of accounting estimation
There is no change in accounting estimation during the year.
2.24.3 Correction for prior accounting errors and effects thereof
(1)Retrospective restatement method
There is no prior accounting errors dealt with retrospective restatement method during
the year.
(2)Prospective application method
There is no prior accounting errors dealt with prospective application method during
the year.
Note 3. Taxation
3.1 Major taxes of and tax rates applicable to the Company
Taxation Reference for taxation Tax rate
VAT Sales revenue from commodities 3%
Business tax Operation revenue 5%
Consumption tax Sales revenue from precious jewelry 5%
Tax for urban construction &
maintenance
Business tax & paid VAT 7%
Extra fee for education Business tax & paid VAT 3%
Enterprise income tax Income payable 22%
3.2 Tax deduction
Pursuant to the relevant rules of the Notice about Implementing Provisional
Preferential Policies in Respect of Enterprise Income Tax (GF(2007)No.39) issued
by the State Council, the Company is subject to the preferential tax rate of 22% as for
its income tax in 2010.
Note 4. Business combination and consolidated financial statements
4.1 Combined (Consolidation) scope of financial statements
Combined (Consolidation) scope of financial statements includes headquarter of the
Company and South China Hotel, a non-legal subsidiary with independent
accounting.
4.2 Movements to consolidation scope of consolidated statements:
No movement has ever occurred to the consolidation scope of financial statements of the
Company during the period.Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
43
Note 5. Notes on major items of financial statements
5.1 Monetary capital
Amount at period-end Amount at period-begin
Item
Currency
Original
currency
Exchan
ge
rate
Converted to
RMB
Original currency
Exchan
ge
rate
Converted to
RMB
Cash RMB 1,091,933.68 1,091,933.68 1,004,416.94 1,004,416.94
USD
JPY
HKD
Subtotal 1,091,933.68 1,091,933.68 1,004,416.94 1,004,416.94
Bank Deposit RMB 2,366,270.26 2,366,270.26 2,384,647.62 2,384,647.62
Subtotal 2,366,270.26 2,366,270.26 2,384,647.62 2,384,647.62
Other
monetary
capital
RMB 36,782.09 36,782.09
Subtotal 36,782.09 36,782.09
Total 3,458,203.94 3,458,203.94 3,425,846.65 3,425,846.65
5.1.1No account of mortgaged, frozen etc for realized restriction or deposit overseas
or with potential recoverable risk.
5.2 Accounts receivable
5.2.1 Accounts receivable disclosure based on categories:
Amount at period-end Amount at period-begin
Book balance Bad debt provision Book balance Bad debt provision
Categories
Amount Proportio
n (%)
Amount Proporti
on (%)
Amount Proportio
n (%)
Amount Proportio
n (%)
Account receivable with
major individual amount
8,409,780.39 84.56 1,266,927.16 15.06 6,870,138.29 84.14 1,266,927.16 18.44
Account receivable with no
major amount individually
but with great risk of credit
portfolio
654,893.84 6.58 638,688.77 97.53 654,893.84 8.02 638,688.77 97.53
Other minor account
receivable
881,068.90 8.86
4,982.45
0.57 640,132.97 7.84
4,982.45
0.78
Total 9,945,743.13 100.00 1,910,598.38 19.21 8,165,165.10 100.00 1,910,598.38 23.40
Note: Account receivable with no major amount but with high risky refers to the
account receivable with long account age (over 3 years) and with less than RMB 0.2
million individually amount.
5.2.2Withdrawal of bad debt provision for account receivable with major individual
amounts or with minor amount but perform impairment test separately at period-end:
Content of account receivable Book balance Bad debt
amount
Accrual
proportion
ReasonsHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
44
Sanya Haiyuan Hotel Management
Limited Liability Company
4,457,919.83 0.00 Accrual based on
accounting
policy
SUN HONG JIE 2,367,445.37 28,448.67
1.2% Accrual based on
accounting policy
Sanya Power Supply Co., 773,409.98 773,409.98 100% Unrecoverable
International Travel Agent 464,563.21 464,563.21 100% Unrecoverable
Shenzhen Wuzhizhou Business
Co., Ltd.
346,442.00
505.30 0.15% Accrual based on
accounting policy
Total 8,409,780.39 1,266,927.16
Account receivable with no major amount individually but with great risk of credit
portfolio:
Amount at period-end Amount at period-begin
Book balance Book balance Age
Amount
Proportion
(%)
Bad debt
provision
Amount
Proportion
(%)
Bad debt
provision
Within
1year
1- 2 years
2-3 years
3-4 years 11,574.80 1.77 2,893.70 11,574.80 1.77 2,893.70
4-5 years 15,047.96 2.30 7,523.99 15,047.96 2.30 7,523.99
Over 5
years
628,271.08 95.93 628,271.08 628,271.08 95.93 628,271.08
Total 654,893.84 100.00 638,688.77 654,893.84 100.00 638,688.77
5.2.3 Particular about account receivable held by shareholders of the Company who held
over 5 %( including 5%) voting rights at period-end
Amount at period-end Amount at period-begin
Name of the companies
Amount Amount of bad
debt withdrawal
Amount Amount of bad
debt
withdrawal
Haikou Luoniushan Co.,
Ltd.
98,327.06 58,082.46
Total 98,327.06 58,082.46
5.2.4Particular about top 5 account receivables:
Name of the companies
Relation with
the Company
Amount Terms
Proportion in total account
receivable (%)
Sanya Haiyuan Hotel Management
Limited Liability Company
Non-related
party
4,457,919.83
Within 1 year
44.82%
SUN HONG JIE
Non-related
party
2,367,445.37
23.80%
Including: 1,798,472.00 Within 1 yearHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
45
568,973.37 1-2ears
Sanya Power Supply Co.,
Non-related
party
773,409.98
7.78%
Including: 45,332.61 3-4ears
179,903.66 4-5ears
548,173.71Over 5 years
China International Travel of HK.
Macao
Non-related
party
464,563.21
Over 5 years
4.67%
Shenzhen Wuzhizhou Business Co., Ltd.
Non-related
party
346,442.00
3.48%
Including: 336,336.00 Within 1 year
10,106.001-2 years
Total 8,409,780.39 84.55%
5.2.5 Particular about account receivable from related parties
Name of the company Relation with the Company Amount Proportion in total account
receivable (%)
Haikou Agriculture &
Industry & Trade
(Luoniushan) Co., Ltd.
Largest shareholder 98,327.06 0.99
5.3 Accounts paid in advance
5.3.1Account paid in advance listed according to age:
Amount at period-end Amount at period-begin
Age
Amount Proportion Amount Proportion
Within 1 year 1,741,004.68 100% 1,324,440.00 100%
1-2 years
2-3 years
3-4 years
4-5 years
Total 1,741,004.68 100% 1,324,440.00 100%
5.3.2 Particular about top 5 accounts paid in advance
Name of the companies
Relation
with the
Company
Amount at
period-end
Terms Reason for
unsettlement
Sanya Niuqizhou Garden Architecture
Decoration Engineering Co., Ltd.
Non-related
party
955,398.00 Within 1
year
Received no
invoice yet
Xinjiang Bayinguole Mongolian Autonomy
Livestock Breeding Station
Non-related
party
379,000.00 Within 1
year
Have not received
good yet
Xinhuajin Qingdao Jimo Wine Co., Ltd.
Non-related
party
195,920.00 Within 1
year
Have not received
good yet
WU ZHI CAI
Non-related
party
170,000.00 Within 1
year
Have not received
good yet
PICC Hainan Branch Non-related 32,290.68 Within 1 Received noHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
46
party year invoice yet
Total 1,732,608.68
5.3.3 Accounts paid in advance in the report period do not include accounts with the
Company’s shareholders with 5% or above voting rights.
5.3.4No impairment evidence found at period-end on account paid in advance,
therefore withdrawal no bad debt provision.
5.3.5Account paid in advance at period-end increase 31.45% compared with that of
period-begin, mainly due to the increase good amount paid in advance in this period.
5.4 Other accounts receivable
5.4.1Other account receivable disclosure according to categories:
Amount at period-end Amount at period-begin
Book balance Bad debt provision Book balance Bad debt provision
Categories
Amount Proporti
on (%)
Amount Proporti
on (%)
Amount Proportio
n (%)
Amount Proporti
on (%)
Other account receivable
with major individual
amount
77,363,143.3
1
98.72 77,363,143.31 100
77,363,143.3
1
98.90
77,363,143.3
1
100
Other account receivable
with no major amount
individually but with great
risk of credit portfolio
707,132.99 0.90 707,132.99 100 707,132.99 0.90 707,132.99 100
Other minor other account
receivable
296,363.94 0.38 9,971.85
3.36
150,342.10 0.19 9,971.85
6.63
Total 78,366,640.2
4
100.00 78,080,248.15
99.63 78,220,618.4
0
100.00
78,080,248.1
5
99.82
Note: Other account receivable with no major amount but with high risky refers to the
other account receivable with long account age (over 3 years) and with less than RMB
1 million individually amount.
5.4.2 Withdrawal of bad debt provision for other account receivable with major
individual amounts or with minor amount but perform impairment test separately at
period-end:
Content of other account
receivable
Book balance Bad debt
amount
Accrual
proportion
Reasons
Hainan Dadonghai Tourism Co.,
Ltd.
54,767,945.15 54,767,945.15
100% Accrual based on
accounting policy
Cash dividend distributed from
94-96
16,899,000.00 16,899,000.00
100% Accrual based on
accounting policy
Hainan International Travel Agent
4,145,704.16 4,145,704.16
100% Accrual based on
accounting policy
Guangdong Golden Horse
Tourism Co., Ltd.
1,200,494.00 1,200,494.00
100% Accrual based on
accounting policy
Trusted charge of shareholders 350,000.00 350,000.00 100% Accrual based onHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
47
accounting policy
Total 77,363,143.31 77,363,143.31
5.4.3 Other account receivable with no major amount individually but with great risk
of credit portfolio:
Amount at period-end Amount at period-begin
Book balance Book balance
Age
Amount Proportion
(%)
Bad debt
provision Amount Proportion
(%)
Bad debt
provision
Within 1 year
1-2years
2-3 years
3-4 years
4-5 years
Over 5 years 707,132.99 100.00 707,132.99 707,132.99 100.00 707,132.99
Total 707,132.99 100.00 707,132.99 707,132.99 100.00 707,132.99
5.4.4 Other accounts receivable in period-end do not include accounts with the
Company’s shareholders with 5% or above voting rights.
5.4.5Particular about top 5 other account receivable
Name of the companies
Relationship with
the Company
Balance at
period-end
Term
Proportion in total other
account receivable
Hainan Dadonghai Tourism Co.,
Ltd.
Non-related party
54,767,945.15
Over 5 years
69.89%
Cash dividend distributed from
94-96
Non-related party
16,899,000.00
Over 5 years
21.56%
Hainan International Travel Agent Non-related party 4,145,704.16 Over 5 years 5.29%
Guangdong Golden Horse Tourism
Co., Ltd.
Non-related party
1,200,494.00
Over 5 years
1.53%
Trusted charge of shareholders Non-related party 350,000.00 Over 5 years 0.45%
Total 77,363,143.31 98.72%
5.5 Inventory & inventory devaluation provision
5.5.1Classification of inventory
Amount at period-end Amount at period-begin
Item
Amount
Devaluation
provision
Book value Amount
Devaluation
provision
Book value
Materials in
stock
988,816.92
756,707.48
232,109.44 1,012,878.05
766,177.72
246,700.33
Commodities
in stock
22,771.38
10,891.21
11,880.17 22,771.38
10,891.21
11,880.17
Foodstuff &
beverage
539,017.74
12,265.30 526,752.44
293,299.96
12,265.30 281,034.66
Fuels 19,069.72 19,069.72 20,906.50 20,906.50
Total 1,569,675.76 779,863.99 789,811.77 1,349,855.89 789,334.23 560,521.66Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
48
5.5.2 Inventory devaluation provision
Decreased in this period
Categories
Amount at
period-begin
Accrual amount
in this period Switch-back Write-off
Amount at
period-end
Materials in stock 766,177.72 9,470.24 756,707.48
Commodities in
stock
10,891.21 10,891.21
Foodstuff &
beverage
12,265.30 12,265.30
Total 789,334.23 9,470.24 779,863.99
5.5.3 Net realizable value is determined on the market value voluntarily agreed by
parties on the fair market for single inventory item, deducting further processing or
cost which should be additionally added in sales
5.6 Other current assets
Amount at period-begin Amount at period-end
Items
Book balance
Impairment
provision
Book value
Increase
this
period
Decrease
this
period
Book balance
Impairment
provision
Book value
Land
Exchange
Book
10,837,399.26 2,167,480.26 8,669,919.00 10,837,399.26 2,167,480.26 8,669,919.00
Total 10,837,399.26 2,167,480.26 8,669,919.00 10,837,399.26 2,167,480.26 8,669,919.00
5.6.1 Other current assets refer to the Land Exchange Report (No. 00000514, issuing
No. 460200011217001) issued by Sanya Municipal People’s Government for
requisitioning the Company’s land in Dadonghai area.
5.6.2 Depreciation provision for other current assets (land exchange book) is
withdrawn on the difference between the book value and the current realizable value.
The current realizable value was recognized according to the Assets Appraisal of
HZLXZPB Zi(2006)No. 024 issued from Hainan Zhonglixin Assets Appraisal Office
Co., Ltd.
5.7Long-term equity investment
Amount at period-end Amount at period-begin
Invested company
Book balance Impairment
provision Book balance Impairment
provision
Shenzhen Difu Investment
Development Co., Ltd.
5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00
Hubei Jinsha Dadonghai Club Co.,
Ltd.
4,566,207.42 4,566,207.42 4,566,207.42 4,566,207.42
Sanya Shunan Entertainment Town 5,150,166.84 5,150,166.84 5,150,166.84 5,150,166.84
Total 14,716,374.26 14,716,374.26 14,716,374.26 14,716,374.26
5.7.1Long-term equity investment based on cost
Invested
company
Equity
proportion
Initial
investment
capital
Amount at
period-begin
Adjustment
of
gains/loss
this period
Cash
bonus
Increase/decrease
this period
Amount at
period-endHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
49
Shenzhen
Difu
Investment
Development
Co., Ltd.
14.28% 5,000,000.00 5,000,000.00 5,000,000.00
Hubei Jinsha
Dadonghai
Club Co., Ltd.
91% 4,566,207.42 4,566,207.42 4,566,207.42
Sanya Shunan
Entertainment
Town
70% 5,150,166.84 5,150,166.84 5,150,166.84
Total 14,716,374.26 14,716,374.26 14,716,374.26
5.7.2 Impairment provision on long-term equity investment
Invested company
Amount at
period-begin
Increase
d in this
period
Decrease
d in this
period
Amount at
period-end
Reason for withdraw
Shenzhen Difu Investment
Development Co., Ltd.
5,000,000.00 5,000,000.00
No evidence found probability
of assets recoverable currently
Hubei Jinsha Dadonghai Club Co.,
Ltd.
4,566,207.42 4,566,207.42
Project terminated, investment
unrecoverable
Sanya Shunan Entertainment
Town
5,150,166.84 5,150,166.84
Long-term business
suspension for against the
national regulations or laws
Total 14,716,374.26 14,716,374.26
5.8 Fixed assets
5.8.1 Particular about fixed assets
Categories
Amount at
period-begin
Increased in this
period
Decreased in this
period
Amount at
period-end
I. Total original value of fixed
assets: 190,697,827.75 147,935.00 190,845,762.75
Including: House and building 156,378,131.83 156,378,131.83
Machinery equipment 18,562,816.78 9,400.00 18,572,216.78
Electronic equipment 2,839,627.78 103,000.00 2,942,627.78
Transportation
equipment 1,457,608.77
1,457,608.77
Other equipment 1,620,496.09 35,535.00 1,656,031.09
Decoration reform 9,839,146.50 9,839,146.50
II. Total of accumulative
depreciation: 79,096,546.59 3,094,235.97 82,190,782.56
Including: House and building 58,403,169.96 1,530,421.86 59,933,591.82
Machinery equipment 12,653,286.16 355,994.42 13,009,280.58
Electronic equipment 1,676,029.31 155,602.24 1,831,631.55Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
50
Transportation
equipment 316,082.46 57,698.00 373,780.46
Other equipment 903,035.35 89,653.39 992,688.74
Decoration reform 5,144,943.35 904,866.06 6,049,809.41
III. Total net book value of
fixed assets: 111,601,281.16 147,935.00 3,094,235.97 108,654,980.19
Including: House and building 97,974,961.87 1,530,421.86 96,444,540.01
Machinery equipment 5,909,530.62 9,400.00 355,994.42 5,562,936.20
Electronic equipment 1,163,598.47 103,000.00 155,602.24 1,110,996.23
Transportation
equipment 1,141,526.31 57,698.00 1,083,828.31
Other equipment 717,460.74 35,535.00 89,653.39 663,342.35
Decoration reform 4,694,203.15 904,866.06 3,789,337.09
IV. Total of provision for
impairment of capital assets
36,258,618.00 36,258,618.00
House and building 32,449,653.81 32,449,653.81
Machinery equipment 3,496,190.52 3,496,190.52
Electronic equipment 99,137.16 99,137.16
Other equipment 213,636.51 213,636.51
V. Total of book value of fixed
assets
75,342,663.16
147,935.00 3,094,235.97
72,396,362.19
House and building 65,525,308.06 1,530,421.86 63,994,886.20
Machinery equipment 2,413,340.10 9,400.00 355,994.42 2,066,745.68
Electronic equipment 1,064,461.31 103,000.00 155,602.24 1,011,859.07
Transportation
equipment
1,141,526.31
57,698.00
1,083,828.31
Other equipment 503,824.23 35,535.00 89,653.39 449,705.84
Decoration reform 4,694,203.15 904,866.06 3,789,337.09
5.8.2 Particular about fixed assets idle temporary
Item Book original
value
Accumulated
depreciation
Impairment
provision
Net book value Note
Other equipment 230,710.58 20,349.67 199,992.57 10,368.34
Total 230,710.58 20,349.67 199,992.57 10,368.34
5.8.3There is no fixed assets mortgaged or guarantee at period-end.
5.9 Intangible assets
5.9.1 Particular about intangible assets
Item Amount at
period-begin
Increased in this
period
Decreased in this
period
Amount at
period-end
I. Total original book value 87,315,277.74 87,315,277.74
Land use right 87,315,277.74 87,315,277.74
II. Total amount of accumulated
amortization 26,407,633.28 434,363.58 26,841,996.86
Land use right 26,407,633.28 434,363.58 26,841,996.86Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
51
III. Total net book value 60,907,644.46 434,363.58 60,473,280.88
Land use right 60,907,644.46 434,363.58 60,473,280.88
IV. Total impairment provision 29,343,890.98 29,343,890.98
Land use right 29,343,890.98 29,343,890.98
V. Total book value of
intangible assets
31,563,753.48 434,363.58 31,129,389.90
Land use right 31,563,753.48 434,363.58 31,129,389.90
5.9.2Impairment provision of intangible assts refers to the difference withdrawal
caused by the book value higher than current market price concerning the land-use of
costal part forbidden for use according to the Governmental Planning of Sanya.
5.10 Provision for impairment of assets
Decreased in this period
Items
Balance at
period-begin
Accrual
amount this
period
Switching
back
Transferring
out
Balance at
period-end
I. Bad debt provision 79,990,846.53 79,990,846.53
II.Provision for depreciation of
inventory 789,334.23 9,470.24 779,863.99
III. Impairment provision of financial
assets available for sale
IV. Impairment provision of other
current assets 2,167,480.26
2,167,480.26
V. Impairment provision of long-term
equity investment 14,716,374.26
14,716,374.26
VI. Impairment provision of
investment real estate
VII. Impairment provision of fixed
assets 36,258,618.00
36,258,618.00
VIII. Impairment provision of project
material
IX. Impairment provision of
construction in process
X. Impairment provision of production
biological material asset
Incl. Impairment provision of mature
production biological material asset
XI. Impairment provision of gas & oil
asset
XII. Impairment provision of intangible
asset 29,343,890.98
29,343,890.98
XIII. Impairment provision of goodwill
XIV. Other
Total 163,266,544.26 9,470.24 163,257,074.02
5.11 Accounts payable
5.11.1Analysis of account ageHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
52
Age Amount at period-end Amount at period-begin
Within 1 year 1,496,613.70 1,089,254.15
1-2 years 16,657.91 16,657.91
2-3 years 53,685.00 53,685.00
3-4 years 42,995.00 42,995.00
4-5 years 490.00 490.00
Over 5 years 495,372.62 495,372.62
Total 2,105,814.23 1,698,454.68
5.11.2 There has no account at period-end that should be paid shareholders who own
more than 5% (including 5%) of the Company’s share capital.
5.11.3 There has no major account at period-end payable with over 1 year.
5.12 Accounts received in advance
5.12.1 Analysis of account age
Age Amount at period-end Amount at period-begin
Within 1 year 1,841,030.78 3,544,485.18
1-2 years 49,940.00 49,940.00
2-3 years 41,921.11 41,921.11
3-4 years 14,800.57 14,800.57
4-5 years 70,204.76 70,204.76
Over 5 years
Total 2,017,897.22 3,721,351.62
5.12.2 There has no account at period-end that received in advance from shareholders
who own more than 5% (including 5%) of the Company’s share capital.
5.12.3The account received in advance at period-end decrease 45.87% compared with
that of period-begin, mainly due to the Check-in account from Traveling Agent
received in advance.
5.12.4 There has no major account received in advance at period-end with over 1 year.
5.13 Wage payable
5.13.1 Wage payable
Items Amount at
period-begin
Increased in this
period
Decreased in this
period
Amount at
period-end
I. Salary, bonus, allowance and subsidy 4,378,865.30 4,434,725.75 4,142,211.85 4,671,379.20
II. Employee Welfare expenses 390,099.69 390,099.69
III. Social insurance 123.00 516,873.80 516,996.80
Including: 1. Medical insurance 102,732.23 102,732.23
2. Basic endowment insurance
pension
123.00 384,019.00 384,142.00
3.Annuity
4.Unemploymetn insurance 18,938.87 18,938.87
5. Injure insurance 5,699.58 5,699.58
6. Maternity insurance 5,484.12 5,484.12
7. External labor insurance
IV. Public reserve of recommendationHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
53
V. Labor union outlay and employee
education outlay
640,502.26 176,919.47 68,268.17 749,153.56
VI. Non-monetary welfares
VII. Compensation for dismissal of
relationship of labor force
VIII. Other
Total 5,019,490.56 5,518,618.71 5,117,576.51 5,420,532.76
5.14 Tax payable
Taxes Amount at period-end Amount at period-begin
Value-added tax 135,982.62 135,982.62
Business tax 87,896.45 195,306.87
City planning tax 6,152.76 13,671.49
Property tax 96,767.13 152,453.79
Enterprise income tax -1,561,222.43 -1,702,702.80
Individual income tax 1,891.26 1,145.66
Educational surtax 2,636.88 5,859.20
Land-use tax 72,389.22 115,868.22
Total -1,157,506.11 -1,082,414.95
5.15 Others account payable
5.15.1 Analysis on account age
Analysis on account age Amount at period-end Amount at period-begin
Within 1 year 928,506.54 1,235,827.53
1-2 years 6,624,521.71 6,624,521.71
2-3 years 1,226,789.68 1,226,789.68
3-4 years 241,413.60 241,413.60
4-5 years 14,600.00 14,600.00
Over 5 years 21,996,647.82 21,996,647.82
Total 31,032,479.35 31,339,800.34
5.15.2 The other account at period-end that shall be payable to shareholders who own
more than 5% (including 5%) of the Company’s share capital.
Name of the company Amount at period-end Amount at period-begin
Haikou Agriculture & Industry &
Trade (Luoniushan) Co., Ltd.
800,000.00 800,000.00
5.15.3 Other account payable at period-end that paid to related parties
Name of the company Amount at period-end Amount at period-begin
Haikou Agriculture & Industry &
Trade (Luoniushan) Co., Ltd.
800,000.00 800,000.00
Haikou Food Co., Ltd. 50,000.00 50,000.00
Total 850,000.00 850,000.00
5.15.4 Other account payable with major amount of over 1 year
Name of the company Amount Reasons for un-carry forwardHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
54
CSRC 19,810,000.00 Capital difficulty
Hainan Chengxin Agricultural
Technology Co., Ltd.
6,588,596.50 Capital difficulty
Securities Times 1,065,059.86 Capital difficulty
SUN HONG JIE 1,000,000.00 Guaranty
Total 28,463,656.36
5.15.5 Other account payable with major amount:
Name of the company Amount Content
CSRC 19,810,000.00
Penalty for stock manipulated
against the rule
Hainan Chengxin Agricultural
Technology Co., Ltd.
6,588,596.50 Loans
Securities Times 1,065,059.86 Announcement charge
SUN HONG JIE 1,000,000.00 Guaranty
Total 28,463,656.36
5. Share capital (Unit: Share)
Increase/Decrease of this time (+, -)
Items
Amount at
period-begin
New
shares
issued
bonus
share
Capitalization
of public
reserve
other subtotal
Amount at
period-end
I. Restricted shares
1．State-owned shares
2．State-owned legal
person’s shares
9,354,000.00 9,354,000.00
3．Other domestic
shares
63,718,684.00 -4,562,600.00 -4,562,600.00 59,156,084.00
Including:
Domestic
non-state-owned
legal person’s shares
63,545,500.00 -4,562,600.00 -4,562,600.00 58,982,900.00
Domestic natural
person’s shares
173,184.00 173,184.00
4．Foreign shares
Including:
Foreign legal
person’s shares
Foreign natural
person’s shares
Total of restricted
shares
73,072,684.00 -4,562,600.00 -4,562,600.00 68,510,084.00
II. Unrestricted
shares
1．RMB Ordinary 203,027,316.00 4,562,600.00 4,562,600.00 207,589,916.00Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
55
shares
2．Domestically listed
foreign shares
88,000,000.00 88,000,000.00
3．Overseas listed
foreign shares
4．Others
Total of circulated
shares
291,027,316.00 4,562,600.00 4,562,600.00 295,589,916.00
III. Total shares 364,100,000.00 364,100,000.00
5.17 Capital Reserves
Item
Amount at
period-begin
Increase in
current period
Decrease in
current period
Amount at
period-end
Reasons for changes
and basis
Share premium 33,336,215.58 33,336,215.58
Other capital reserve 20,806,634.43 20,806,634.43
Total 54,142,850.01 54,142,850.01
5.18 Undistributed profit
Item Amount Proportion of withdrawal or
distribution
Retained profit in last year-end before adjustment -331,657,451.34
Total adjustment of retained profit at period-begin
(increase+, decrease -)
Retained profit in period-begin after adjustment -331,657,451.34
Add: net profit attributable to owner of the parent
company in this period
501,612.20
Less: Withdrawal of statutory surplus reserve
Withdrawal of arbitrary surplus reserve
Withdrawal of general risk provision
Common shares’ dividend payable
Dividend of common shares transfer to shares
Undistributed profit at period-end -331,155,839.14
5.19 Operating income and operating cost
5.19.1 Operating income
Items
Amount occurred this period Amount occurred in last
period
Main operating income 20,018,480.32 16,063,765.21
Other operating income
Total 20,018,480.32 16,063,765.21
Operating cost
Items Amount occurred this period Amount occurred in last
period
Main operating cost 3,371,403.38 2,688,025.65
Other operating costHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
56
Total 3,371,403.38 2,688,025.65
5.19.2 Main operations (industries)
Amount occurred this period Amount occurred in last period
Items
operating income operating cost operating income operating cost
Tourism and catering trade 20,018,480.32 3,371,403.38 16,063,765.21 2,688,025.65
Total 20,018,480.32 3,371,403.38 16,063,765.21 2,688,025.65
5.19.3 Main operations（areas）
Amount occurred this period Amount occurred in last period
Areas
operating income operating cost operating income operating cost
Hainan 20,018,480.32 3,371,403.38 16,063,765.21 2,688,025.65
Total 20,018,480.32 3,371,403.38 16,063,765.21 2,688,025.65
5.19.4 Particular about operation income from top 5 clients of the Company
Name of the clients Operating income Proportion in total operating
income of the Company (%)
Hainan Chenda International Travel Agent
Co., Ltd. 901,582.00 4.50
Sanya Shengda International Travel Agent
Co., Ltd. 880,945.00 4.40
Southern Cross 844,414.00 4.22
Hainan Oriental International Travel Agent
Co., Ltd. Sanya Sub-branch
Euro-American Department 735,560.00 3.67
Hainan Pearl River International Travel
Agent Co., Ltd. Sanya Branch 639,151.00 3.19
Total 4,001,652.00 19.98
5.20 Operating taxes and extras
Items
Amount occurred this
period
Amount occurred in last
period
Calculation standards
Business tax 1,000,204.13 803,188.26 5%
City planning tax 70,014.29 56,223.18 7%
Educational surtax 30,006.12 24,095.65 3%
Total 1,100,224.54 883,507.09
5.21 Financial expenses
Items Amount occurred this period Amount occurred in last period
Interest expenses
Less: Interest income 5,691.90 6,236.82
Exchange losses
Less: exchange gains
Commission of financial institution 158,636.20 94,827.11
Other
Total 152,944.30 88,590.29
Note: financial expense occurred in this period increase 72.64% compared with that ofHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
57
occurred in last period, mainly due to the increase of commissions for financial
institution.
5.22 Non-operating income
Items Amount occurred this period Amount occurred in last period
Gains on disposal of non-current assets
Including: gains from disposal of fixed
assets
gains from disposal of
intangible assets
Gains from debt restructuring
Indemnity income 174,761.00 136,265.00
Other income 26,480.35 22,330.00
Total 201,241.35 158,595.00
5.23 Non-operating expense
Items Amount occurred this period Amount occurred in last period
Loss on disposal of non-current assets
Including: loss from disposal of fixed
assets
Loss from disposal of intangible
assets
Penalty expense 2,093.14
Public welfare expense 200.000.00
Other expenses 30,000.00 20,000.00
Total 30,000.00 222,093.14
Note: non-operating expense occurred in this period decrease 86.49% compared with
that occurred in last period, mainly due to the decrease of public welfare expense and
penalty expense.
5.24 Notes to items of cash flow statement
5.24.1 Other received cash related to operating activities was RMB 780,879.80,
details as followed:
Item Amount occurred this period
Fund collection 194,299.00
Repayment received 54,522.50
Other scattered received(insurance) 76,260.76
Compensation income received 174,761.00
Other amount collection 275,344.64
Interest income received 5,691.90
Total 780,879.80
5.24.2 Other paid cash related to operating activities was RMB 7,082,083.47, details
as followed:
Item Amount occurred this period
Social serving expense paid 974,673.08Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
58
Utilities paid 819,290.62
Laundry paid 785,670.89
Fuel, oil expense paid 725,397.90
Greening paid 651,932.00
Promotion paid 358,879.28
Commodities amount collection 337,163.92
Commission 280,000.00
Meeting charge of Board and Supervisory 275,112.00
Maintenance paid 211,571.70
Fund 206,500.00
Leasing 186,582.00
Traveling 177,375.56
Handling charge 158,636.20
Service monthly charge of B-share 153,746.40
Staff-loans paid 149,080.00
Meeting service charge 132,100.00
Communication charge 69,683.16
Advertisement charge 55,951.00
Property insurance charge 51,346.91
Margins 48,568.40
Annual Meeting charge 36,100.00
Donation paid 30,000.00
Office expense 27,237.43
Environmentally charge 25,360.00
Periodically and newspaper charge 18,720.00
Deposit paid 18,000.00
Announcement paid 11,225.40
Amortization of low-value consumption 8,936.20
Other expense paid 97,243.42
Total 7,082,083.47
5.25 Supplementary information of cash flow statement:
(1) Supplementary information of cash flow statement
Supplementary information Amount occurred this period
Amount occurred in last
period
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 501,612.20 -2,239,209.50
Add: Provision for impairment of assets
Depreciation of fixed assets, oil assets and productive
biological assets 3,094,235.97 3,116,367.01
Amortization of intangible assets 434,363.58 434,363.58
Amortization of long-term prepayments
Losses on disposal of fixed assets, intangible assets and otherHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
59
long-term assets (income is listed with “- ”)
Losses on scrapping of fixed assets(income is listed with “- ”)
Losses on fair value change(income is listed with “- ”)
Financial expenses(income is listed with “- ”)
Investment losses(income is listed with “- ”)
Gains from debt restructuring
Decrease in deferred income tax assets (increase is listed with
“-”)
Increase in deferred income tax liabilities (decrease is listed
with “- ”)
Decrease in inventories(increase is listed with “-”) -219,819.87 79,285.40
Decrease in operating receivables(increase is listed with “-”) -2,339,727.67 -397,077.87
Increase in operating payables(decrease is listed with “- ”) -1,290,371.92 -2,242,351.38
Others
Net cash flows from operating activities 180,292.29 -1,248,622.76
2. Significant investing and financing activities that do not
involve cash receipts and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3. Net increase in cash and cash equivalents:
Cash at the end of the year 3,458,203.94 3,451,168.37
Less: Cash at the beginning of the period 3,425,846.65 6,009,603.45
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents 32,357.29 -2,558,435.08
(2) Constitution of cash and cash equivalent
Item Amount at period-end Amount at period-begin
1.cash 3,458,203.94 3,451,168.37
Including: cash in stock 1,091,933.68 946,076.32
Bank deposit available for payment any time 2,366,270.26 2,492,424.59
Other monetary capital available for payment
any time
12,667.46
2.cash equivalent
Including: bond investment due within 3
months
3.Balance of cash and cash equivalent at
period-end
3,458,203.94 3,451,168.37
Including: Cash and cash equivalent
restricted in usage of parent company or
subsidiary of the Group
Total 3,458,203.94 3,451,168.37
Note6.Related party relationship and transactions
(I) First largest shareholder of the CompanyHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
60
Name of 1st largest shareholder Relationship
Type of
enterprise
Register
place
Legal
person
Business
nature
Register capital
Haikou Agriculture & Industry &
Trade (Luoniushan) Co., Ltd.
1st largest
shareholder
Stock
system
Haikou
Hu
Dianling
Planting&B
reeding
RMB 880,132,000
(Continue)
Name of 1st largest shareholder
Proportion of
share held (%)
Proportion of
voting right (%)
Ultimate controller of the
Company
Code of
organization
Haikou Agriculture & Industry &
Trade (Luoniushan) Co., Ltd.
16.48 16.48
Hainan Luoniushan Holding
Group Co., Ltd.
28408974-7
(II) Transaction of related parties
Related transaction of sales of commodities, labor providing and receiving
Amount occurred in this
period
Amount occurred in last
period
Related party
Type of
transaction
Content of
transaction
Price setting
and strategy
procedure Amount
Proportion in
similar
transaction
amount（%）
Amount
Proportion in
similar
transaction
amount（%）
Haikou
Agriculture &
Industry &
Trade
(Luoniushan)
Co., Ltd.
Sales Accommodation Market price 40,244.60 0.20 184,533.17 0.59
(III) Account payable from related party’s receivable
Item Related party Amount at
period-end
Amount at
period-begin
Account receivable Haikou Agriculture & Industry &
Trade (Luoniushan) Co., Ltd.
98,327.06 58,082.46
Other account payable
Haikou Agriculture & Industry &
Trade (Luoniushan) Co., Ltd.
800,000.00 800,000.00
Other account payable Haikou Food Co., Ltd. 50,000.00 50,000.00
Note7. Contingency
There are no contingency that should be disclosed of the Company.
Note8. Commitment
There is no commitment that should be disclosed of the Company.
Note9. Subsequent items after balance sheet date
There are no subsequent items after balance sheet date.
Note 10. Other significant event
The Company has no other significant items.
Note 11. Supplementary information
11.1 details of current non-recurring gains and losses
Items Amount NoteHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
61
Gains and loss from disposal of non-current assets
Ultra vires approval, or none formal approval documents, or accidental
tax return and relief
Government subsidy recorded into the current gains and losses(closely
relevant to enterprise business, except for the ones enjoyed in accordance
with the general ration or quota of the state)
Capital occupation received from non- financial enterprises and recorded
into the current gains and losses
The investment cost of subsidiaries, affiliated enterprise and combined
enterprise obtained by the enterprise is less than the obtained investment,
then gains resulting from recognizable fair value of net asset of investee
units should be enjoyed
Profit and loss on exchange of non-monetary assets
Profit and loss on entrusted investment or manage asset
Assets devalue provisions withdrawn for force majeure, such as natural
disaster
Gains and losses from debt restructuring
Enterprise restructuring expense such as expense on allocation of
employee and integrated expense
Profit and loss exceeding fair value, resulting from unfair transactions
Net profit and loss of the current period from the beginning of the
subsidiary to combination date, resulting from enterprise combination
under the common control
Profit and loss on predicted liabilities unrelated to main business of the
Company
Held transaction financial asset, gains/losses of changes of fair values
from transaction financial liabilities, and investment gains from disposal
of transaction financial asset, transaction financial liabilities and financial
asset available for sales, exclude the effective hedging business relevant
with normal operations of the Company
Reversal of provisions for asset impairment of account receivable which
is made singly impairment test
Gains/losses obtained from external entrusted loan
Losses/gains from the change of fair values of investing property of
subsequent measurement adopted by method of fair value
Influences on current losses/gains for one adjustment of current
losses/gains in accordance with the requirements of laws and regulations
such taxation and accountings.
Income of trustee fee from entrusted operation
Other non-operating income and expense except the above items 171,241.35
Other losses/gains items conforming the definitions of non-recurring
gains/losses
Subtotal 171,241.35
Impact on income tax 37,673.10
Total 133,568.25
11.2accoounting difference between CAS and IAS
There are no difference between CAS and IAS.
11.3Return on equity and earnings per share
Earnings per share
Profit in the report period
weighted average of return
on equity（%） Basic earnings per share
Diluted earnings per
share
Net profit attributable to 0.5777 0.0014 0.0014Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
62
shareholders of parent company
Net profit attributable to
shareholders of parent company
after deducting non-recurring gains
and losses
0.4238 0.0010 0.0010
11.4calculation procedure of weighted average of return on equity, basic earnings per
share and diluted earnings per share
(1) Calculation procedure of weighted average of return on equity
Item Code Amount in this
period
Net profit attributable to shareholders of the Company 1 501,612.20
Non-recurring gains/losses 2 133,568.25
Net profit attributable to common shareholders of the Company
after deducting non-recurring gains/losses 3=1-2 368,043.95
Net assets at period-begin attributable to common shareholders of
the Company 4 86,585,398.67
Net assets increase from new share issuing or transferred from
debts that attributable to common shareholders of the Company 5
Accumulated months from subsequent month of net assets
increased newly to period-end 6
Net assts decrease from repurchase or cash bonus that attributable
to common shareholders of the Company 7
Accumulated months from subsequent month of net assets
decreased to period-end 8
Increase/decrease change of net assts that caused by other
transaction or events attributable to common shareholders of the
Company
9
Accumulated months from subsequent month of change of
increase/decrease net assets to period-end 10
Amount of months in report period 11
Weighted average of net assts 12=4+1×1/2
+5×6/11-7×8/11±9×10/11 86,836,204.77
Weighted average of return on equity 13=1/12 0.5777
Net assets without weighted average by merged party that merge
under same control 14
Weighted average of return on equity after deducting
non-recurring gains/losses 15=3/（12-14） 0.4238
(2) Calculation of basic earnings per share and diluted earnings per share
Basic earnings per share = P0÷S
S= S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk
Among which: P0 represents net profit attributable to shareholders of ordinary shares
of the Company or net profit (net of non-current gains and losses) attributable to
shareholders of ordinary shares of the Company; S represents the weighted average
number of ordinary shares in issue; S0 represents aggregate of shares as at
period-begin; S1 represents share added due to conversion of public reserve to share
capital or allocation of share dividends during the report period; Si represents share
added due to new issuance of shares or shares converted from debts during the report
period; Sj represents shares decreased due to purchase-back of its own shares during
the period; Mi represents the accumulated months commencing from the month
subsequent upon shares addition to end of the period; Mj represents the accumulated
months commencing from the month subsequent upon shares deduction to end of the
period.
To those distributed share dividend, share capitalizing for public reserve, share
lending or share merge that happened between the balance sheet date to approvalHainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Full-Text of Semi-Annual Report 2010
63
disclosure date of financial statement, have influence on the quantity of common
shares in issued or potential common shares but no influence on owner’s equity,
should calculated earnings per share of comparative period after the adjusted share
number.
There are no potential shares in this period without dilutive but probably diluted in
later periods.
11.5 Abnormal particular about items in financial statement and their reasons
Items of balance
sheet statement
Amount at
period-end/amount
occurred in this
period
Amount at
period-begin/amount
occurred in last
period
Change Explanation on changes reason
Account receivable 8,035,144.75 6,254,566.72 28.47%
Caused by check-in charge receivable
increased this period
Account paid in
advance
1,741,004.68 1,324,440.00 31.45%
Increase of loans paid in advance this
period
Account received
in advance
2,017,897.22 3,721,351.62 -45.78%
Caused by the check-in charge
received from traveling agent
recognized as income
Operating income 20,018,480.32 16,063,765.21 24.62%
Recovery of travel market cause
corresponding increase of check-in rate
in the Hotel
Financial expense 152,944.30 88,590.29 72.64%
Caused by the handling charge
increased in this period
Non-operating
income
201,241.35 158,595.00 26.89%
Caused by the income from
compensation increased in this period
Non-operating
expense
30,000.00 222,093.14 -86.49%
Caused by the decreased of charity
donation and penalty in this period
Note 12. Approval of disclosure of the financial statements
These financial statements are disclosed under approval of the board of directors of
the Company on 24 August 2010.
