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 2011
(Full-Text)
Disclosure Date: August 26, 2011
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Section 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 directors, supervisors and other senior executives 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 for deliberated the semi-annual report.
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........................................2
Section II. Company Profile.........................................................................…….....3
Section III. Changes in Equity and Share Held of Major Shareholders……………5
Section IV. Particulars about the Directors, Supervisors and Senior Executives…..9
Section V. Report of Board of Directors...................................................................9
Section VI. Significant Events………………………………………………….....12
Section VII. Financial Report.......................................................................... ……15
Section VIII. Documents for Reference...............................................……………15
2
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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.
3
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(II). Major financial data and index
1. Major financial data and index in the report period
Unit: RMB
Increase/decrease at the end of
At the
At the end of this this report period compared
period-end of
report period with that in period-end of last
last year
year (%)
Total assets(RMB) 117,635,742.78 119,382,660.10 -1.46%
Owners’ equity attributable to shareholders of the
85,631,221.41 87,266,354.32 -1.87%
listed company(RMB)
Share capital(Share) 364,100,000.00 364,100,000.00 0.00%
Net assets per share attributable to shareholders of the
0.24 0.24 0.00%
listed company(RMB/Share)
The same
This report period Increase/decrease in this report
period of last
(Jan. to Jun.) period year-on-year (%)
year
Total operating income(RMB) 18,467,961.40 20,018,480.32 -7.75%
Operating profit(RMB) -1,880,739.51 471,851.22 -498.59%
Total profit(RMB) -1,635,132.91 643,092.57 -354.26%
Net profit attributable to shareholders of the listed
-1,635,132.91 501,612.20 -425.98%
company(RMB)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and -1,880,739.51 330,370.85 -669.28%
losses(RMB)
Basic earnings per share (RMB/Share) -0.0045 0.0014 -421.43%
Diluted earnings per share (RMB/Share) -0.0045 0.0014 -421.43%
Weighted average return on equity (%) -1.89% 0.58% -2.47%
Weighted average return on equity after deducting
-2.18% 0.38% -2.56%
non-recurring gains/losses (%)
Net cash flow arising from operating activities(RMB) 445,270.62 180,292.29 146.97%
Net cash flow per share arising from operating
0.0012 0.0005 140.00%
activities (RMB/Share)
Items and amount of non-recurring gains and losses
Unit: RMB
Notes (If
Items of non-recurring gains and losses Amount
applicable)
Government subsidy reckoned into current gains/losses 20,000.00 -
Other non-operating income and expenditure except the
225,606.60 -
abovementioned items
Total 245,606.60 -
2. Explanation on the difference on adjustment of net profit in accordance with IAS
and CAS in the report period. (Unit: RMB)
4
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Net profit attributable to Owners’ equity attributable to
shareholders of listed company shareholders of listed company
Amount in the report Amount in last
Amount in period-end Amount in period-begin
period period
IAS -1,635,132.91 501,612.20 85,631,221.41 87,266,354.32
CAS -1,635,132..91 501,612.20 85,631,221.41 87,266,354.32
Sub-items and total adjusted based on IAS:
Total amount of differences
0.00 0.00 0.00 0.00
between CAS and IAS
Explanations on differences
No difference
between CAS and IAS
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 Weighted Weighted
Fully diluted Fully diluted
average average
Net profit attributable to common shareholders of the
-1.91 -1.89 -0.0045 -0.0045
Company
Net profit attributable to common shareholders of the
-2.20 -2.18 -0.0052 -0.0052
Company after deducting non-recurring gains and losses
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
Bo Conversi
New
Proportion nus on of Proportion
Amount shares Others Subtotal Amount
sha public
issued
res reserve
I. Restricted shares 17,308,000 4.75% 17,308,000 4.75%
1. State-owned shares
2. State-owned legal person’s
6,054,000 1.66% -132,000 -132,000 5,922,000 1.63%
shares
3. Other domestic shares 11,254,000 3.09% 132,000 132,000 11,386,000 3.13%
Including: Domestic non-state-owned
11,122,000 3.05% 132,000 132,000 11,254,000 3.09%
legal person’s shares
Domestic natural person’s shares 132,000 0.04% 132,000 0.04%
5
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
4. Foreign shares
Including: Foreign legal person’s
shares
Foreign natural person’s shares
5. Senior executives’ shares
II. Unrestricted shares 346,792,000 95.25% 346,792,000 95.25%
1. RMB Ordinary shares 258,792,000 71.08% 258,792,000 71.08%
2. Domestically listed foreign shares 88,000,000 24.17% 88,000,000 24.17%
3. Overseas listed foreign shares
4. Others
III. Total shares 364,100,000 100.00% 0 0 364,100,000 100.00%
Explanation on reason of change: changes in share structure resulted from part of the
shareholders changed its nature in the report period.
(II) Particulars about shareholder
1. Total shareholders ended the report period
Ended June 30th 2011, there totally were 33,609 shareholders of the Company,
including 26,205 of A-share holders and 7,404 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 33,609
Particulars about the shares held by the top ten shareholders
Proportion Amount of the Amount of
Nature of Total amount
Full Name of shareholder of shares restricted shares shares pledged
shareholders of shares held
held held or frozen
Domestic
Haikou Agriculture & Industry &
non-state-owned 16.48% 60,000,000 0 60,000,000
Trade (Luoniushan) Co., Ltd.
legal person
Domestic
Yangpu Tongrong Investment
non-state-owned 3.62% 13,193,720 0 0
Management Consultation Co., Ltd.
legal person
Domestic
Sanya Yongli Investment Co., ltd. non-state-owned 1.90% 6,930,000 0 0
legal person
Domestic natural
WU MING XIAO 1.39% 5,068,971 0 0
person
Domestic
Building Investment CITIC Assets
non-state-owned 1.27% 4,620,000 0 0
Management Co., Ltd.
legal person
Domestic
Sanya Zhongxing Development Co.,
non-state-owned 1.00% 3,630,000 3,630,000 0
Ltd.
legal person
CITRINE CAPITAL LIMITED Foreign legal 0.90% 3,265,200 0 0
6
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
person
CHINA MERCHANTS SECURITIES Domestic legal
0.77% 2,814,907 0 0
(HK) CO., LTD. person
China Foreign Economic and Trade Domestic legal
0.76% 2,772,000 0 0
Trust Co., Ltd. person
Domestic
Sanya Rural Credit Cooperative
non-state-owned 0.63% 2,310,000 0 0
Union
legal person
Particulars about the shares held by the top ten unrestricted shareholders
Amount of shares held with
Full name of shareholder Type of shares
unrestricted condition
Haikou Agriculture & Industry & Trade (Luoniushan)
60,000,000 RMB common share
Co., Ltd.
Yangpu Tongrong Investment Management Consultation
13,193,720 RMB common share
Co., Ltd.
Sanya Yongli Investment Co., ltd. 6,930,000 RMB common share
WU MING XIAO 5,068,971 RMB common share
Building Investment CITIC Assets Management Co.,
4,620,000 RMB common share
Ltd.
Domestically listed foreign
CITRINE CAPITAL LIMITED 3,265,200
share
Domestically listed foreign
CHINA MERCHANTS SECURITIES (HK) CO., LTD. 2,814,907
share
China Foreign Economic and Trade Trust Co., Ltd. 2,772,000 RMB common share
Sanya Rural Credit Cooperative Union 2,310,000 RMB common share
Haikou Jinmao Sub-branch of Agriculture Bank of
2,310,000 RMB common share
China Limited
Among the ten shareholders, the top 1st and 2nd shareholders had related
relationships; the 2nd shareholder was jointly funded by top 1st shareholder and
Explanation on associated relationship
other investors.
or accordant action among the
The Company was unaware of whether there existed associated relationship or
aforesaid shareholders
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, 2011.
7
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Amount of
Se Amount of
additional Restricted
ria Name of the restricted shareholders the restricted Date for tradable
shares which condition
ls shares held
could be listed
Sanya Zhongxing Development Co.,
1 3,630,000 -
Ltd.
2 Sanya Real Estate Valuation Institution 1,320,000 -
Hainan Hong Kong & Macao
3 1,320,000 -
International Travel Agency
Haikou Dongfang Urban Credit
4 1,320,000 -
Cooperative
Hainan Zhongjin Industrial Trade
5 1,320,000 -
Co.,Ltd.
Hainan Branch of Bank of
6 1,320,000 - Shares could trade on
Communications Co., Ltd.
market while relevant
Guangzhou Dongzhan Industrial
7 1,320,000 - procedures are
Co.,Ltd.
completed after gains
Shenyang Jin’an Industrial General Part of the
8 1,188,000 - agreed from Haikou
Corporation shares
Agriculture, Industry
9 Hainan Dadonghai Tourisam Co., Ltd. 1,056,000 - pre-paid in
& Trade (Luoniushan)
Hangzhou Huayuan Industrial Co., reform of
10 840,000 - Co., Ltd. or paid the
Ltd. non-tranda
part of shares that
Hainan Dongda Maritime Transport ble shares
11 660,000 - pre-paid in reform of
Co., have not
non-tradable shares.
Guangzhou Company of Hainan paid yet.
12 660,000 - Final trandable date
International Investment Co., Ltd.
should be the date
Southerm Industial & Trade Genral
13 660,000 - approved and rectified
Corporation
by Security Stock.
Beijing Xueli Fashion & Accessories
14 132,000 -
Co., Ltd.
Hainan Jiuyuan Eco-Art Engineering
15 132,000 -
Co., Ltd.
Sanya Wanli Construction Materials
16 132,000 -
Sales Division
17 Xiao Tiefeng 132,000 -
Shanghai Taotao Entertainment Co.,
18 100,000 -
Ltd.
19 Hainan Nongken Sanya Wood Plant 66,000 -
(III) Particulars about controlling shareholder of the Company
The controlling shareholder and actual controller of the Company remained
unchanged in the report period.
8
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Section IV. Particulars about Directors, Supervisors and Senior
Executives
(I) Particular about share changes held in directors, supervisors and senior executives.
In the report period, directors, supervisors and senior executives of the Company did
not hold the Company’s shares.
(II)Particular about resignation, engagement or dismissal occurred for directors,
supervisors and senior executives of the Company in report period.
On 25 April 2011, office term of the 6th Session of the Board was expired. Being
deliberatred on Shareholders’ Genral Meeting of 2010 and with resolution made in
12th Meeting of 6th Session of the Board, Director Mr. Li Yuanbin, Mr. Li Wei, and Mr.
Liu Juntao and Independent Director Mr. Chen Rijin, Mr. Li Guangzhong and Mr.
Feng Da’an were appointed as the member of 7th Session of the Board.
On 25 April 2011, office term of supervisor for the 6th Session of the Supervisory was
expired. Being deliberatred on Shareholders’ Genral Meeting of 2010 and with
resolution made in 12th Meeting of 6th Session of Supervisory, Mr. Huang Wencai was
appointed as the supervisor of 7th Session of the Supervisory.
On 25 April 2011, office term of supervisor for the 6th Session of the Supervisory was
expired. Being democratic election by labor union committee of the Company, Mr. Li
ZHi and Ms. Wang Jialing were elected as the staff supervisor for the 7th Session of
Supervisory.
On 16 June 2011, according to the resolution of 1st Meeting of 7th Session of the
Board, Mr. Li Yuanbin appointed as the Chairman for 7th Session of the Board.
On 16 June 2011, according to the resolution of 1st Meeting of 7th Session of
Supervisory, Mr. Huang Wencai appointed as the Chairman for 7th Session of
Supervisory.
Section V. Report of Board of Directors
(I) General analysis on operating results and financial status of the report period
Unit: RMB
Amount for the Increase or
Amount for this
No. Item same period of last decrease
period
year proportion (%)
1 Account paid in advance 1,104,521.11 411,098.56 168.68
2 Construction in progress 1,200,000.00 0.00 100
3 Account received in
1,559,566.52 3,091,887.24 -49.56
advance
4 Wages payable 4,113,184.72 3,148,124.82 30.66
Amount for the Increase or
Amount for this
Item same period of last decrease
period
year proportion (%)
5 Operation income 18,467,961.40 20,018,480.32 -7.75
9
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
6 Operation cost 3,393,494.71 3,371,403.38 0.66
7 Sales expense 8,432,637.28 8,368,177.03 0.77
8 Administration expense 7,291,271.27 6,553,879.85 11.25
9 Financial expense 197,091.78 152,944.30 28.87
10 Operation profit -1,880,739.51 471,851.22 -498.59
11 Net profit -1,635,132.91 501,612.20 -425.98
12 Net cash flow arising
445,270.62 180,292.29 146.97
from operation activities
Reason for change:
1. Account paid in advance increased mainly due to the accout paid in advance for
goods increased.
2. Construction in progress increased mainly because investment increased in aspect
of reforming and decoration of the hotel.
3. Account received in advance decreased mainly due to the account received in
advance for room decreased.
4. Wages payable inceased mainly because salary for employee has been raised.
5. Operating income decreased mainly because decoration of the hotel made less
operating premises.
6. Financial expense increased mainly due to the loan interest for current capital
increased.
7. Operation profit decreased mainly due to the down of income and soaring of
operating cost and operating expenses.
8. Net profit decreased mainly due to the down of income and soaring of operating
cost and operating expenses.
9. Net cash flow arising from operation activities increased mainly because relevant
cash for operating activities was reduced in report period.
(II) Operation in the report period
1. General introduction about operation
In report period, the Company fully makes use of the idle season in Hainan tourism
market, exercise renovation for part of the operating premises and part of aged
equitpmetns with purpose of highering the equipment quality for hardware of the
Hotel and optimized operational environment as well as promoted the competive-ness
in hotel market, higher the profitability and sustainable ability in operation.
Within the report period, main operating income of the Company approached RMB
18.468 million with 7.75% down over same period of last year; net profit realized
RMB -1.6351 million with 425.98% down over same period of last year while net
cash flow arising from operating activities reached RMB 0.4453 million, a 146.98%
up over that of same period the year before.
2. Industry or product accounting for over 10% (10% included) of main business
income or main business profit of the report period:
In ten thousand yuan
Income from selling
Product Cost for selling product Gross profit ratio (%)
product
Income from room 1,368.81 0.88 99.94
10
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
affair
Food & beverage 477.99 338.47 29.19
Main business of the Company classified according to industry or product in report
period
In ten thousand yuan
Main business classified according to industry
Increase or
Increase or Increase or
decrease of
decrease of decrease of
Classified according operating
Operating Operating Gross profit operating cost gross profit
to industries or revenue over
revenue cost ratio (%) over the same ratio over the
products the same
period of last same period of
period of last
year (%) last year (%)
year (%)
Hotel service 1,846.80 339.35 81.62 -7.75 0.66 -1.54
Main business classified according to product
Guest room 1,368.81 0.88 99.94 -10.34 -53.93 0.07
Food & beverage 477.99 338.47 29.19 0.58 0.97 -0.27
Among which: the total amount of related transaction that listed company provided
products and labor service to its controlling shareholder or subsidiaries was RMB79,
800.
Main business of the Company classified according to area
In ten thousand yuan
Operating Increase or decrease of operating
Area
revenue revenue over of last year (%)
Sanya Hainan 1,846.80 -7.75
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
external stock-joint 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 team of the Company is actively researching for
various measures to fight against difficulties continously. They will continuo to
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 this report period.
11
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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.
(VI) The Company predicted that we may have losses in the 3rd season. Main reason
for the losses are: in recent years newly built hotels in Sanya increased successively,
market competition intensified, and the Company began restructure on items such as
central air-conditioner and external wall of the hotel thus part of programs of the hotel
were affected, and in reporting period income decreased substantially over last period.
Besides, constant worsening of domestic inflation, constant growth of commodity
price, further price-improvement of water and electricity and increase of salary for
staffs led to increase of operation cost and expenses. It is predicted that from July 1 of
2011 to Sep. 30 we may lose RMB 3.4 million to 5.4 million, and from Jan. 1 of 2011
to Sep. 30 we may lose about RMB 5 million to RMB 7 million.
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 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 2011, smoothly copleted expiration at office term of
board of directors and supervisors and implementation of operation management of
goal accountability of hotels, 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.
12
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(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
79,794.06 in the hotel of the Company which was calculated according to market
price. As end of 30 June 2011, balance totaled to RMB 218,992.12.
(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 2011 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 for first half year of 2011:
(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 independent
opinions on external guarantee:
13
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 largest
shareholder of the Company
(1) Un-completed committments when equity division was implemented
Seek for restructure party to restructure the assets of the Company in proper time. Till
now, the proper restructure party has not been found.
(2) Other commitments had been implemented when equity division was
implemented.
(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 Governmance
Rules for Listed Companies, Stock Listing Rules for Shenzhen Stock Exchange, the
Company formulated Administration System for Shares of Directors, Supervisors and
Senior Management Holding from the Company and Change, further perfected
internal control system, promoted normal operation and healthy development of the
Company.
(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
14
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 D12 in
Securities Times and page A2 in Hong Kong Commercial Daily dated Apr. 25, 2011,
meanwhile, disclosed in http://www.cninfo.com.cn (searching route: inputting stock
code of the Company in Inquiry for Individual Stock).
2. 2011 the 1st Seasonal Report, 2010 Summary of Annual Report, Notice to
Decisions Made on the 12th Meeting of the 6th Session of Board of Directors, Notcie
to Holding 2010 General Shareholders’ Meeting, Independent Directors’ Opinion on
the 12th Meeting of the 6th Session and Notice to Decisions Made on the 12th Meeting
of the 6th Session of Board of Directors were published on page 86 and D87 in
Securities Times and page A20 and A23 in Hong Kong Commcercial Daily,
meanwhile, disclosed in http://www.cninfo.com.cn.
3. Notice to Decisions Made on 2010 Annual Genenral Shareholders’ Meeting, Notice
to Decisions Made on the 1st Meeting of the 7th Session of Board of Directors, Notice
to Election at Expiration of Office Term of Staff Representative and Notice to
Decisions Made on the 1st Meeting of the 7th Session of Board of Supervisors were
published on page D3 in Securities Times and page A23 in Hong Kong Commercial
Daily on Jun. 17 of 2011 rspectively, 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 2011 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
15
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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, 2011
16
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Balance Sheet
Prepared by Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
June 30, 2011 Unit: RMB
Note Balance at period-end Balance at year-begin
Items
s Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 5.1 2,233,728.81 2,233,728.81 3,104,278.19 3,104,278.19
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable 5.2 5,970,379.63 5,970,379.63 5,273,407.83 5,273,407.83
Accounts paid in advance 5.3 1,104,521.11 1,104,521.11 411,098.56 411,098.56
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 5.4 425,648.44 425,648.44 427,914.11 427,914.11
Purchase restituted finance
asset
Inventories 5.5 639,762.03 639,762.03 587,653.23 587,653.23
Non-current asset due
within one year
Other current assets 5.6 9,480,819.00 9,480,819.00 9,480,819.00 9,480,819.00
Total current assets 19,854,859.02 19,854,859.02 19,285,170.92 19,285,170.92
Non-current assets:
Granted loans and advances
Finance asset available for
sales
Held-to-maturity securities
Long-term account
receivable
Long-term equity
investment
Investment property
Fixed assets 5.8 66,235,471.01 66,235,471.01 69,289,462.86 69,289,462.86
Construction in progress 5.9 1,200,000.00 1,200,000.00
Engineering material
Disposal of fixed asset
Productive biological asset
17
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Oil and gas asset
Intangible assets 5.10 30,260,662.74 30,260,662.74 30,695,026.32 30,695,026.32
Expense on Research and
Development
Goodwill
Long-term expenses to be
5.11 84,750.01 84,750.01 113,000.00 113,000.00
apportioned
Deferred income tax asset
Other non-current asset
Total non-current asset 97,780,883.76 97,780,883.76 100,097,489.18 100,097,489.18
Total assets 117,635,742.78 117,635,742.78 119,382,660.10 119,382,660.10
Current liabilities:
Short-term loans 5.13 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 5.14 1,964,997.86 1,964,997.86 1,523,437.56 1,523,437.56
Accounts received in
5.15 1,559,566.52 1,559,566.52 3,091,887.24 3,091,887.24
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 5.16 4,113,184.72 4,113,184.72 3,148,124.82 3,148,124.82
Taxes payable 5.17 -1,325,810.58 -1,325,810.58 -1,174,778.35 -1,174,778.35
Interest payable
Dividend payable
Other accounts payable 5.18 24,692,582.85 24,692,582.85 24,527,634.51 24,527,634.51
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 32,004,521.37 32,004,521.37 32,116,305.78 32,116,305.78
Non-current liabilities:
Long-term loans
Bonds payable
18
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 32,004,521.37 32,004,521.37 32,116,305.78 32,116,305.78
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share
6.19 364,100,000.00 364,100,000.00 364,100,000.00 364,100,000.00
capital)
Capital public reserve 6.20 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 5.21 -332,611,628.60 -332,611,628.60 -330,976,495.69 -330,976,495.69
Balance difference of
foreign currency translation
Total owner’s equity attributable
85,631,221.41 85,631,221.41 87,266,354.32 87,266,354.32
to parent company
Minority interests
Total owner’s equity 85,631,221.41 85,631,221.41 87,266,354.32 87,266,354.32
Total liabilities and owner’s
117,635,742.78 117,635,742.78 119,382,660.10 119,382,660.10
equity
Profit Statement
Prepared by Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
January-June of 2011 Unit: RMB
Amount in this period Amount in last period
Note
Items Parent Parent
s Consolidation Consolidation
Company Company
I. Total operating income 5.22 18,467,961.40 18,467,961.40 20,018,480.32 20,018,480.32
Including: Operating income 18,467,961.40 18,467,961.40 20,018,480.32 20,018,480.32
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 5.22 20,348,700.91 20,348,700.91 19,546,629.10 19,546,629.10
Including: Operating cost 3,393,494.71 3,393,494.71 3,371,403.38 3,371,403.38
Interest expense
Commission charge and commission
19
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 5.23 1,034,205.87 1,034,205.87 1,100,224.54 1,100,224.54
Sales expenses 8,432,637.28 8,432,637.28 8,368,177.03 8,368,177.03
Administration expenses 7,291,271.27 7,291,271.27 6,553,879.85 6,553,879.85
Financial expenses 5.24 197,091.78 197,091.78 152,944.30 152,944.30
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 “-”) -1,880,739.51 -1,880,739.51 471,851.22 471,851.22
Add: Non-operating income 5.25 245,606.60 245,606.60 201,241.35 201,241.35
Less: Non-operating expense 30,000.00 30,000.00
Including: Disposal loss of non-current
asset
IV. Total Profit (Loss is listed with “-”) -1,635,132.91 -1,635,132.91 643,092.57 643,092.57
Less: Income tax 141,480.37 141,480.37
V. Net profit (Net loss is listed with “-”) -1,635,132.91 -1,635,132.91 501,612.20 501,612.20
Net profit attributable to owner’s equity
-1,635,132.91 -1,635,132.91 501,612.20 501,612.20
of parent company
Minority shareholders’ gains and losses
VI. Earnings per share
i. Basic earnings per share -0.0045 -0.0045 0.0014 0.0014
ii. Diluted earnings per share -0.0045 -0.0045 0.0014 0.0014
VII. Other consolidated income
VIII. Total consolidated income -1,635,132.91 -1,635,132.91 501,612.20 501,612.20
Total consolidated income attributable to
-1,635,132.91 -1,635,132.91 501,612.20 501,612.20
owners of parent company
Total consolidated income attributable to
minority shareholders
20
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Cash Flow Statement
Prepared by Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
January-June of 2011 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating
activities:
Cash received from selling commodities
16,854,699.00 16,854,699.00 17,165,594.70 17,165,594.70
and providing labor services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from
other financial institution
Cash received from original insurance
contract fee
Net cash received from reinsurance
business
Insured savings and net increase of
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
166,332.89 166,332.89 780,879.80 780,879.80
operating activities
Subtotal of cash inflow arising from
17,021,031.89 17,021,031.89 17,946,474.50 17,946,474.50
operating activities
Cash paid for purchasing commodities
5,661,336.69 5,661,336.69 3,751,093.21 3,751,093.21
and receiving labor service
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 5,067,486.89 5,067,486.89 5,117,576.51 5,117,576.51
21
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Taxes paid 1,645,763.83 1,645,763.83 1,815,429.02 1,815,429.02
Other cash paid concerning operating
4,201,173.86 4,201,173.86 7,082,083.47 7,082,083.47
activities
Subtotal of cash outflow arising from
16,575,761.27 16,575,761.27 17,766,182.21 17,766,182.21
operating activities
Net cash flows arising from operating
445,270.62 445,270.62 180,292.29 180,292.29
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment income
Net cash received from disposal of fixed,
7,390.00 7,390.00
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
7,390.00 7,390.00
activities
Cash paid for purchasing fixed,
1,279,210.00 1,279,210.00 147,935.00 147,935.00
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units
Other cash paid concerning investing
activities
Subtotal of cash outflow from investing
1,279,210.00 1,279,210.00 147,935.00 147,935.00
activities
Net cash flows arising from investing
-1,271,820.00 -1,271,820.00 -147,935.00 -147,935.00
activities
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
22
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
44,000.00 44,000.00
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
44,000.00 44,000.00
activities
Net cash flows arising from financing
-44,000.00 -44,000.00
activities
IV. Influence on cash due to fluctuation in
exchange rate
V. Net increase of cash and cash equivalents -870,549.38 -870,549.38 32,357.29 32,357.29
Add: Balance of cash and cash
3,104,278.19 3,104,278.19 3,425,846.65 3,425,846.65
equivalents at the period -begin
VI. Balance of cash and cash equivalents at
2,233,728.81 2,233,728.81 3,458,203.94 3,458,203.94
the period -end
Statement of Provision for Devaluation of Assets
Prepared by Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
January-June of 2011 Unit: RMB
Decrease in this
Book balance at Increase of period Book balance at
Item
period-begin this period Switchi Transferrin period-end
ng back g out
I. Total of provision for bad debts 79,987,849.37 79,987,849.37
II. Provision for falling price of
778,329.36 655.94 777,673.42
inventory
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
14,716,374.26 14,716,374.26
equity investment
VI. Provision for devaluation of
investing real estate
VII. provision for devaluation of fixed
36,247,447.59 36,247,447.59
assets
VIII. Provision for devaluation of
engineering materials
23
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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
29,343,890.98 29,343,890.98
intangible asset
XIII. Provision for devaluation of
goodwill
XIV. Other 2,167,480.26 2,167,480.26
Total 163,241,371.82 655.94 163,240,715.88
24
Consolidated Statement on Changes of Owners' Equity
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Semi-Annual of 2011 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
R
e
M
a
i
s
R n L
o M
ea Ge o es S
n in
so Su ner ri s: ur
a Gene or
na rpl al O t Tr pl
Item b ral Ot ity
Paid-up capital (Share Less: Treasury bl us ris th y Total owners’ equity Paid-up capital (Share ea us Total owners’ equity
Capital reserves Retained profit Capital reserves le risk Retained profit he ’s
capital) Stock el res k er ’s capital) su re
l provi rs eq
re erv pro s e ry se
r sion uit
se es vis q St rv
e y
rv ion u oc es
s
e it k
e
y
r
v
e
I. Balance at the end of last year 364,100,000.00 54,142,850.01 -330,976,495.69 87,266,354.32 364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67
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 -330,976,495.69 87,266,354.32 364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67
III. Increase/ Decrease in this year
-1,635,132.91 -1,635,132.91 680,955.65 680,955.65
(Decrease is listed with "-")
(I) Net profit -1,635,132.91 -1,635,132.91 680,955.65 680,955.65
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(II) Other consolidated income
Subtotal of (I) and (II) -1,635,132.91 -1,635,132.91 680,955.65 680,955.65
(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 conversed to capital
(share capital)
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
26
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(VII) Other
IV. Period-end balance of this period 364,100,000.00 54,142,850.01 -332,611,628.60 85,631,221.41 364,100,000.00 54,142,850.01 -330,976,495.69 87,266,354.32
Statement on Changes of Owners' Equity for Parent Company
Prepared by Hainan Dadonghai Tourism Center Co., Ltd. Semi-Annual of 2011 Unit: RMB
Amount in this report period Amount in last year
L
es
Le
Re s: Re
ss: Su
as Su T as
Tr rpl
on rpl Genera re on Genera
eas us
Item Paid-up capital (Share ab us l risk Paid-up capital as abl l risk
Capital reserves ur Retained profit Total owners’ equity Capital reserves res Retained profit Total owners’ equity
capital) lel res provisi (Share capital) ur el provisi
y er
res erv on y res on
St ve
er es St erv
oc s
ve o e
k
c
k
I. Balance at the end of last year 364,100,000.00 54,142,850.01 -330,976,495.69 87,266,354.32 364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67
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 -330,976,495.69 87,266,354.32 364,100,000.00 54,142,850.01 -331,657,451.34 86,585,398.67
III. Increase/ Decrease in this year (Decrease is listed with "-") -1,635,132.91 -1,635,132.91 680,955.65 680,955.65
(I) Net profit -1,635,132.91 -1,635,132.91 680,955.65 680,955.65
(II) Other consolidated income
Subtotal of (I) and (II) -1,635,132.91 -1,635,132.91 680,955.65 680,955.65
(III) Owners' devoted and decreased capital
1. Owners' devoted capital
27
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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)
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
(VII) Other
IV. Period-end balance of this period 364,100,000.00 54,142,850.01 -332,611,628.60 85,631,221.41 364,100,000.00 54,142,850.01 -330,976,495.69 87,266,354.32
28
Attachment II
Hainan Dadonghai Tourism Center Co., Ltd.
Notes to the Financial Statement
(2011-6-30)
Currency Unit: RMB
Note 1. Basic Information 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 2011, the aggregate shares of the Company amounted to 364,100,000
shares, among which, shares with limited sale condition and those without such limit
condition totaled to 17,308,000 and 346,792,000 respectively, representing 4.75% and
95.25% of the total shares. The registered capital of the Company is RMB 364.1 million,
and its legal representative is Li Yuanbin. The registered No. for its legal person business
license (duplicated) is 4600001003983, with the legal registered place being Dadonghai,
Hedong District, Sanya city.
1.2 Major products or service rendered of the Company
The Company mainly engages in accommodation, catering industry(conducted by branch
only), photography, miniature garden and bonsai, grain and oil products, knitwear and
textiles, department stores, chemical products (excluding those require specialized
licenses), daily goods, industrial production materials (excluding those require
specialized licenses), metal materials, machinery and equipment, and tour ticket service
(on an item-license basis).
Note 2 Summaries of Main Accounting Policies, Accounting Estimates and Prior
Errors
2.1 Preparation basis of the financial statements
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 of compliance with Enterprise accounting standards
The financial statements of the Company comply with the requirements of Accounting
Standards; the Company's financial position, operating results, cash flows and other
relevant information are truly and completely disclosed in financial statements.
2.3 Accounting period
The Company's accounting year is from 1st January to 31st December for each calendar
year.
2.4 Recording currency
The recording currency of the Company is Renminbi.
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
30
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
conditions including short term (due within 3 months commencing from the purchase
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.
31
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(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.
In case of disposal, difference between fair value and initial book keeping amount are
recognized as investment income and adjusted the variation gains/losses for fair value.
(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.
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).
32
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 value 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.
33
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
2.9 Account receivables
2.9.1 Determination of bad debt provision
The Company examines the book value of account receivables at balance sheet date, and
will accrue provision if there are objective evidences indicate impairment in account
receivables. The objective evidences indicate provision of account receivables are the
events that occurred after the initial recognition of account receivables, and the events
can affect the estimated future cash flows and the events can be measured reliably. The
objective evidences indicate the impairment of account receivables including the
following:
(1)Serious financial difficulties in the debtor;
(2)Debtor breaches contract terms (such as default for or overdue the payment of interest
or principal);
(3) Debtor is likely to bankruptcy or performs other financial reorganization;
(4) Other objective evidence indicating impairment in account receivable.
2.9.2 Receivables that are individually significant and provided for provision separately
The basis or amount for individually significant The top 5 customers of account receivables on the
receivables end of the period
Impairment test performed individually, bad debt
provision will be provided at the difference of
expected cash flow lower than the book value. If
no impairment after separate assessment, the
Method of provision for receivable that are
amounts add to the financial assets combinations
individually significant and are assessed for
which on the age characteristic of credit risk and
impairment on an individual basis
to provide provision by age analysis. Account
receivables of separate assessment, the amounts
will not include in the group test basis on the
similar credit risk to provide provision.
2.9.3 Account receivables that are provided for bad debt by combination
Basis of the determination of combination
Age combination Age of the account
The withdrawal method for bad debt provision
Age combination Age analysis
2.9.4 The Company adopts age analysis method to provide provision as follows:
Withdrawal proportion for Withdrawal proportion for
Age
account receivable (%) other account receivable (%)
Within 1 year(1 year include) 0 0
1 －
2 years 5 5
2 －
3 years 15 15
3 －
4 years 25 25
4 －
5 years 50 50
More than 5 years 100 100
2.9.5 Account receivables that are insignificant in amount individually but provided for
bad debt individually
34
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Other account receivables less significant account receivables that
The reason for the impairment there is objective evidences to indicate impairment, such as the
individually bankruptcy or death of debtors and their estate and inheritance can
not compensate account receivables.
The account receivables that there is objective evidence to indicate
Method of provision impairment, should be separated from related groups, tested
individually and are recognize as loss.
2.9.6 The reverse of impairment provision
If there is objective evidences to indicate the value comeback of account receivable and
the comeback related to the recognized loss, the recognized loss will be reversed and
recognized as gain, but the reversed value should not excess the carrying amount of
account receivables if not recognize impairment.
2.10 Calculation for inventories
2.10.1 Categorizing of inventories
The inventories of the Company comprises of materials in stock, commodities in stock,
low-value consumables, goods consigned to proceed, food stuffs, fuel etc.
2.10.2 Pricing method of outgoing inventories
Commodities in stock measured on the sales price，the difference between purchasing
price and selling price should be adjusted monthly in terms of the average difference
allocation method. materials in stock are initially measured at cost，First-in-first-out
method is adopted when delivery. Low-value consumables are amortized on on-off
amortization basis at using.
2.10.3 Inventory accounting system
Perpetual inventory system is applicable to inventories.
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 Confirmation of investment cost
(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.
35
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Business combination not under the same control: as for those combinations, the
combination costs are, on purchased day, assets that paid for control right of the
purchased party acquired by purchasing party, fair value of equity bonds that issued and
liabilities bared or occurred as well as the vary directly expenses that occurred during the
combination. As for those combination by multiple transactions, combination cost
referring to the total single transaction cost. For those agreements carried in combination
contract that probably affected the combination cost, on purchasing day, if the estimated
future events will probably occurred ot probably effected the reliable measurement for
combination cost, then reckoned into consolidation cost.
(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 an 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.
2.11.3 Subsequent measurement and income recognition
If the initial cost of a long-term equity investment is more than the Company's share,
attributable to, of the fair value of the investee's identifiable net assets for the investment,
the initial cost may not be adjusted. If the initial cost of a long-term equity investment is
less than the Company's attributed share of the fair value of the investee's identifiable net
assets for the investment, the difference shall be included in the current profits and losses
and the cost of the long-term equity investment shall be adjusted simultaneously.
The Company adopts cost method for investment in subsidiaries and makes adjustment
by equity method when preparing consolidated financial statement.
36
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
To adopt cost method for long-term equity investment upon which the Company has no
control, common control or significant influence and which have no quotation price in
active market and whose fair value could not be able to measure surely.
If the Company has significant effect on joint-ventures and associate, equity method
should be adopted.
Investment income on cost method is limited to the retained earning after investing, it
will be the recovery of initial investment cost if the dividend obtained over above profit.
The loss to the investee on equity method is adopted in the following steps: At first,
reduce the carrying value of long-term equity investment; Second, it is limited to zero of
the carrying value of long-term equity investment, and then reduce the carrying value of
long-term receivable to investee limit to the zero amount; At last, if the Company need to
take extra liabilities in terms of investment contract, should estimate loss in the current
period.
If the investee makes profit in the future period, after the unrecognized loss, it should be
adopted in the adverse steps, reduce the carrying value of estimate liability, recover the
carrying value of long-term equity and long-term equity investment, and recognize the
investment income at the same time.
The treatment of other changes other than net profit: if exist other changes other than net
profit, the Company should adjust the book value of the long-term equity investment in
accordance with its attributable share to the investee, and recognize the increase or
decrease of capital reserve (other 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,
37
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 the 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):
Estimated net residual Depreciation rate per
Category of assets Expected service life
value (%) annum (%)
Houses & 5
20—40 4.75—2.37
constructions
Machinery 5
8—20 11.87—4.75
equipment
Electrical 5
entertainment 5—16 19—5.93
equipment
Transportation 5
7—12 13.57—7.91
equipment
Other equipments 8 5 11.87
Improvements 5 5 19
2.14 Calculation of construction in process
38
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 to 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
39
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 are 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
40
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 no
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.
41
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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 the 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.
42
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
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;
(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.
43
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(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;
(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%
Tax for urban construction &
Turn-over tax 7%
maintenance
Extra fee for education Turn-over tax 3%
Amount after deducting 30% of the
Property right tax 1.2%
original value of this house
Land use right tax Floor area 12 yuan/ m2
Enterprise income tax Taxable income tax 25%
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
44
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Council, the Company is subject to the preferential tax rate of 24% as for its income tax
in 2011.
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 Preparation of combined (consolidation) financial statements
The combined (consolidation) financial statement of the Company was comply with the
regulation of “Accounting Rules for Enterprises No.33 – Consolidation Financial
Statement” that issued by Ministry of Finance in February 2006. Capital contact and
other transactions between the Company and South China Hotel have been off-set.
Note 5. Notes on major items of financial statements
5.1 Monetary capital
2011-6-30 2010-12-31
Excha Exchang
Item Currenc Original Converted to Original Converted to
nge e
y currency RMB currency RMB
rate rate
Cash RMB 947,934.90 947,934.90 1,345,303.20 1,345,303.20
USD
JPY
HKD
Subtotal 947,934.90 947,934.90 1,345,303.20 1,345,303.20
Bank Deposit RMB 1,285,793.91 1,285,793.91 1,756,723.39 1,756,723.39
Subtotal 1,285,793.91 1,285,793.91 1,756,723.39 1,756,723.39
Other
monetary RMB 2,251.60 2,251.60
capital
Subtotal 2,251.60 2,251.60
Total 2,233,728.81 2,233,728.81 3,104,278.19 3,104,278.19
5.1.1 In monetary capital, no account that 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:
2011-6-30 2010-12-31
Proport Proporti Proport Proportio
Categories ion in on of ion in n of bad
Book Bad debt Book Bad debt
total bad debt total debt
balance provision balance provision
amount provisio amount provision
(%) n (%) (%) (%)
45
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
1 Account
receivables that are
significant in amount 1,237,973.1 1,237,973. 1,237,973.1 1,237,973.1
15.72 100 17.25 100
individually and 9 19 9 9
provided for
bad debt individually
2 Account
receivables that are 6,635,812.0 665,432.4 5,938,840.2
84.28 10.03 82.75 665,432.43 11.20
provided for bad debt 6 3 6
by combination
3 Account
receivables that are
insignificant in
amount individually
but provided for bad
debt individually
7,873,785.2 100 1,903,405. 7,176,813.4 100 1,903,405.6
Total 24.17 26.52
5 62 5 2
5.2.1.1 Account receivables that are significant in amount individually and provided for
bad debt individually
Provision Ratio of
Debtor Closing balance Reason
amount provision
Sanya Power Supply Co. 773,409.98 773,409.98 100% 回收法无
Hainan Hong Kong & Macao 464,563.21 464,563.21 100% 回收法无
International Travel Agency
Total 1,237,973.19 1,237,973.19
5.2.1.2 Account receivables provided for bad debt by age combination
2011-6-30 2010-12-31
Percenta Percenta
Age ge of ge of bad
Book Ratio Bad debt Ratio Bad debt
bad debt Book balance debt
balance (%) provision (%) provision
provisio provision
n (%) (%)
Within 1 year (1 5,788,722.3 87.23 5,091,750.51 85.74
year include) 1
1-2 years (2 years 142,028.71 2.14 7,101.44 142,028.71 2.39 7,101.44
5 5
include)
2-3 years (3 years 30,732.00 0.46 4,609.80 30,732.00 0.52 4,609.80
15 15
include)
3-4 years (4 years 0.30 4,940.15 0.33 4,940.15
19,760.60 25 19,760.60 25
include)
4-5 years (5 years 0.17 5,787.40 0.19 5,787.40
11,574.80 50 11,574.80 50
include)
Over 5 years 642,993.64 9.70 642,993.64 100 642,993.64 10.83 642,993.64 100
6,635,812.0 100 665,432.43 5,938,840.26 100 665,432.43
Total
6
5.2.2 The arrears due from shareholders with more than 5% (including 5%) of the voting
46
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
shares
2011-6-30 2010-12-31
Shareholders’ name Provision for Provision for
Amount Amount
bad debt bad debt
Haikou Agriculture, Industry
& Trade (Luoniushan) Co., 218,992.12 2,904.12 139,198.06 2,904.12
Ltd.
Total 218,992.12 2,904.12 139,198.06 2,904.12
5.2.3 During current reporting period, the Company has no accounts receivable recovered or
received although that has been fully provided impairment allowances, and the proportion of
impairment allowances of accounts receivable higher than the provision of accounting
policies.
5.2.4 During current reporting period, the Company has no accounts receivable recovered by
the reshuffle of the enterprises.
5.2.5 Details of top five account receivables
Relationship
Proportion in total
Debtors with the Amount Age
account receivable
Company
(%)
Sanya Haiyuan Hotel Non-related Within 1
4,981,382.83 63.27
Management Co. Ltd. parties year
Non-related Over 5
Sanya Power Supply Co. 773,409.98 9.82
parties years
Hainan Hong Kong & Macao Non-related Over 5
464,563.21 5.90
International Travel Agency parties years
Non-related Within 1
388,751.37 4.94
Sun Hongjie parties year
Haikou Agriculture, Industry & Parent
218,992.12 2.78
Trade (Luoniushan) Co., Ltd. company
Within 1
120,665.06
Including: year
98,327.06 1-2years
Total 6,827,099.51 86.71
5.3 Account paid in advance
5.3.1 Account paid in advance presented by age
2011-6-30 2010-12-31
Age
Amount Percentage (%) Amount Percentage (%)
Within 1 year (1 year include) 943,161.11 85.39 246,428.56 59.94
1-2 years (2 years include) 161,360.00 14.61 164,670.00 40.06
2-3 years (3 years include)
3-4 years (4 years include)
4-5 years (5 years include)
Over 5 years
Total 1,104,521.11 100.00 411,098.56 100.00
5.3.2 Details of top five suppliers in account paid in advance:
Suppliers name Relation with Amount Age limit Reason for not
47
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
the Company settle
Non-related 470,800.00 Within 1 year Goods not
Sanya Baijia Trading Co., Ltd.
party collected
Hainan Yangfu Anhua Auto Sales Non-related 352,428.00 Within 1 year Goods not
Service Co.,Ltd. party collected
Xinhuajing Qingdao Jimo old Wine Non-related 1-2 years Goods not
161,360.00
Ltd party collected
Sanya Zhiyuan Decorate Material Non-related Within 1 year Goods not
28,717.00
Shop party collected
Non-related Within 1 year Invoice not
Hainan Branch of CPIC 26,227.11
party collected
Total 1,039,532.11
5.3.3 No arrears of account paid in advance due from shareholders with more than 5%
(including 5%) of the voting shares in the period
5.3.4 Account paid in advance dated 30th June 2011 increased 1.69 times than that of 31st
December 2010. Mainly because the account paid in advance for goods has increased.
5.4 Other receivables
5.4.1 Other receivables presented by categories:
2011-6-30 2010-12-31
Proport Percenta Proporti Percenta
Categories ion in ge of bad on in ge of bad
Book Bad debt Book Bad debt
total debt total debt
balance provision balance provision
amount provision amount provision
(%) (%) (%) (%)
1 Other
receivables that are
significant in 77,363,143. 77,363,143 77,363,143. 77,363,143
amount 98.54 100 98.53 100
individually and 31 .31 31 .31
provided for bad
debt individually
2 Other
receivables that are
1,141,258.8 1,143,524.5
provided for bad 1.45 715,610.44 62.70 1.46 715,610.44 62.58
8 5
debt by
combination
3 Other
receivables that are
insignificant in
amount 5,690.00 0.01 5,690.00 100 5,690.00 0.01 5,690.00 100
individually but
provided for bad
debt individually
78,510,092. 78,084,443 78,512,357. 78,084,443
Total 100 99.46 100 99.45
19 .75 86 .75
5.4.1.1 Other receivables that are significant in amount individually and provided for bad
debt individually
Bad debt Ratio of
Items Book balance Reason
amount provision
Hainan Dadonghai Hotel Co. Can not to
54,767,945.15 54,767,945.15
Ltd. 100% collect
Cash Dividends delivered in 16,899,000.00 16,899,000.00 100% Can not to
48
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
1994-1996 collect
Hainan Hong Kong & Macao Can not to
4,145,704.16 4,145,704.16
International Travel Agency 100% collect
Guangdong Jinma Tourism Co. 100% Can not to
1,200,494.00 1,200,494.00
Ltd. collect
100% Can not to
350,000.00 350,000.00
Stock custody fee collect
Total 77,363,143.31 77,363,143.31
5.4.1.2 Other receivables that withdrawal impairment provision by age combination
2011-6-30 2010-12-31
Withdra
wal Withdra
provisio wal
Age Percen Percent
Bad debt Bad debt provisio
Book balance tage n for Book balance age
provision provision n for
(%) bad (%)
bad debt
debt (%)
(%)
Within 1 year (1 376,610.83 33.01 378,876.50 33.13
year included)
1-2 years (2 27,998.06 2.45 1,399.90 27,998.06 2.45 1,399.90
5 5
years included)
2-3 years (3 3,017.00 0.26 452.55 3,017.00 0.26 452.55
15 15
years included)
3-4 years (4 2.32 6,625.00 2.32 6,625.00
26,500.00 25 26,500.00 25
years included)
4-5 years (4
50 50
years included)
Over 5 years 707,132.99 61.96 707,132.99 100 707,132.99 61.84 707,132.99 100
Total 1,141,258.88 100 715,610.44 1,143,524.55 100.00 715,610.44
5.4.1.3 Other receivables that are insignificant in amount individually but provided for bad
debt individually:
Withdra
Bad debt wal
Items Book balance Reason
amount proportio
n
Reservation fund of Wu 100% Can not to
5,690.00 5,690.00
Congfeng collect
Total 5,690.00 5,690.00
5.4.2 No arrears of account receivable due from shareholders with more than 5%
(including 5%) of the voting shares in the period
5.4.3 Details of top five debtors of other receivables
Relationship
Balance at Proportion in other
Debtors with the Age limit
year-end receivable (%)
Company
Hainan Dadonghai Hotel Co. Non-related
54,767,945.15 Over 5 years 69.76
Ltd. party
Cash Dividends delivered in Non-related
16,899,000.00 Over 5 years 21.52
1994-1996 party
Hainan Hong Kong & Macao Non-related
4,145,704.16 Over 5 years 5.28
International Travel Agency party
Guangdong Jinma Tourism Non-related 1,200,494.00 Over 5 years 1.53
49
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Co. Ltd. party
Non-related
350,000.00 Over 5 years 0.45
Stock custody fee party
Total 77,363,143.31 98.54
5.5 Inventory & Inventory Impairment Provision
5.5.1 Classification of inventories
2011-6-30 2010-12-31
Items Depreciation Depreciation
Amount Net value Amount Net value
provision provision
Materials in
1,017,184.24 754,305.71 262,878.53 958,800.32 754,961.65 203,838.67
stock
Commodities
22,771.38 11,102.41 11,668.97 22,771.38 11,102.41 11,668.97
in stock
Foodstuff &
36,5343.10 12,265.30 353,077.80 366,668.87 12,265.30 354,403.57
beverage
Fuels 12,136.73 12,136.73 17,742.02 17,742.02
Total 1,417,435.45 777,673.42 639,762.03 1,365,982.59 778,329.36 587,653.23
5.5.2 Inventory impairment provision
Amount Decrease amount in this
Items 2010-12-31 accrued in this period 2011-6-30
period Reversal Transfer-out
Materials in stock 754,961.65 655.94 754,305.71
Commodities in
11,102.41 11,102.41
stock
Foodstuff &
12,265.30 12,265.30
beverage
Total 778,329.36 655.94 777,673.42
Note: Net realizable value is determined on the market value voluntarily agreed by
parties on the fair market, deducting possible processing or sales cost before transaction
actually concluded.
5.6 Other current assets
2010-12-31 2011-6-30
Increase Decreas Impairm
Items Impairm during e during
Book Book Book ent Book
ent the year the year
balance value balance provisio value
provision
n
Land
Exchange
10,837,39 2,167,48 8,669,91 10,837, 2,167,48 8,669,
Book
9.26 0.26 9.00 399.26 0.26 919.00
(No:0000051
4)
Land
Exchange 810,900. 810,900. 810,90
810,900.00
Book(No:000 00 00 0.00
04071)
11,648,299 2,167,48 9,480,81 11,648,2 2,167,48 9,480,
Total
.26 0.26 9.00 99.26 0.26 819.00
50
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Note: (1) Land Exchange Book (No. 00000514) refer to the land exchange book issued
by Sanya Municipal People’s Government for requisitioning the Company’s land in
Dadonghai area.; Impairment provision for other current assets (land exchange book) is
withdrawn on the difference between the book value and the current realizable value, the
latter is determined by the asset assessment report HNZLX AAR (2006) No 24 issued by
Hainan Zhonglixin Assets Assessment Firm.
(2) The Company bought the Land Exchange Book（No. 00004071）of book value RMB
1.53 million by RMB 819,000.00 from Li Jiyong, and have done the change registration
on 8 November 2010.
(3)Mortgage events
The Company provided the counter- guarantee by the Land Exchange Book（No.
00004071）to Hainan Qiongzhong Ecologic Investment Guarant Ltd., who provided
guarantee to the loan of the Company.
5.7 Long-term equity investment
2011-6-30 2010-12-31
Investee Impairment Impairment
Book balance Book balance
provision provision
Shenzhen Difu Investment &
5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00
Development Co. Ltd.
Hubei Jingsha Dadonghai Club
4,566,207.42 4,566,207.42 4,566,207.42 4,566,207.42
Co. Ltd.
Sanya Shun’an Casino 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
5.7.1 Long-term equity investment measured at cost method
Adjustm Increase
Equity
ent or
propor
Investment gains/los Cash decrease
Investee tion 2010-12-31 2011-6-30
cost ses in dividend in
held
current current
(%)
period period
Shenzhen Difu
Investment &
14.28 5,000,000.00 5,000,000.00 5,000,000.00
Development
Co. Ltd.
Hubei Jingsha
Dadonghai Club 91.00 4,566,207.42 4,566,207.42 4,566,207.42
Co. Ltd.
Sanya Shun’an
70.00 5,150,166.84 5,150,166.84 5,150,166.84
Casino
14,716,374.2
Total 14,716,374.26 14,716,374.26
6
5.7.2 Long-term equity investment impairment provision
51
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Increase Decreas
during e during
Investee 2010-12-31 2011-6-30 Reason for accrual
the the
period period
Shenzhen Difu Investment No ability for recovered
5,000,000.00 5,000,000.00
& Development Co. Ltd. due to no evidence
Project terminated, no
Hubei Jingsha Dadonghai
4,566,207.42 4,566,207.42 possibility to return
Club Co. Ltd.
investment
Not in conformity with
Sanya Shun’an Casino 5,150,166.84 5,150,166.84
state law, hence closed
14,716,374.2
Total 14,716,374.26
6
5.8 Fixed assets
5.8.1 Details of fixed assets
Increase during Decrease during
Classification 2010-12-31 2011-6-30
the period the period
I. Total original value of
190,855,462.47 79,210.00 190,934,672.47
fixed assets
Including: houses and
156,378,131.83 156,378,131.83
buildings
Machinery equipment 18,583,162.78 18,583,162.78
Electronic equipment 2,931,141.50 66,210.00 2,997,351.50
Transportation equipments 1,457,608.77 1,457,608.77
Other equipments 1,666,271.09 13,000.00 1,679,271.09
Remodeling & fitment 9,839,146.50 9,839,146.50
II. Total accumulated
85,318,552.02 3,133,201.85 88,451,753.87
depreciation
Including: houses and
61,464,013.68 1,530,421.86 62,994,435.54
buildings
Machinery equipment 13,363,975.27 355,433.10 13,719,408.37
Electronic equipment 1,965,878.38 162,382.84 2,128,261.22
Transportation equipments 431,476.50 57,697.02 489,173.52
Other equipments 1,078,827.08 92,548.15 1,171,375.23
Remodeling & fitment 7,014,381.11 934,718.88 7,949,099.99
III. Total book net value of
105,536,910.45 79,210.00 3,133,201.85 102,482,918.60
fixed assets
Including: houses and
94,914,118.15 1,530,421.86 93,383,696.29
buildings
Machinery equipment 5,219,187.51 355,433.10 4,863,754.41
Electronic equipment 965,263.12 66,210.00 162,382.84 869,090.28
Transportation equipments 1,026,132.27 57,697.02 968,435.25
52
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Other equipments 587,444.01 13,000.00 92,548.15 507,895.86
Remodeling & fitment 2,824,765.39 934,718.88 1,890,046.51
IV. Total impairment
36,247,447.59 36,247,447.59
provision of fixed assets
Houses and buildings 32,449,653.81 32,449,653.81
Machinery equipment 3,496,190.52 3,496,190.52
Electronic equipment 101,610.69 101,610.69
Other equipments 199,992.57 199,992.57
V. Total carrying value of
69,289,462.86 79,210.00 3,133,201.85 66,235,471.01
fixed assets
Houses and buildings 62,464,464.34 1,530,421.86 60,934,042.48
Machinery equipment 1,722,996.99 355,433.10 1,367,563.89
Electronic equipment 863,652.43 66,210.00 162,382.84 767,479.59
Transportation equipments 1,026,132.27 57,697.02 968,435.25
Other equipments 387,451.44 13,000.00 92,548.15 307,903.29
Remodeling & fitment 2,824,765.39 934,718.88 1,890,046.51
5.8.2 Fixed assets idle temporarily
Items Original book Accumulated Impairment
Book net value Note
value depreciation provision
Other 230,710.58 20,306.92 199,992.57 10,411.09
equipments
Total 230,710.58 20,306.92 199,992.57 10,411.09
5.8.3 No fixed assets used for mortgage or as guaranty.
5.9 Construction in progress
5.9.1Details of construction in progress
Amount at period-end Amount at period-begin
Item Book Impairment Book Impairment Book
Book value
balance provision balance provision value
Comprehensive
renovation for
central air
1,200,000.00 1,200,000.00
conditioning
system and heat
water system
Total 1,200,000.00 1,200,000.00
5.9.2 Increase/decrease of construction in progress
Transfer
Other
to fixed Investment
2010-12 Increased in decreased
Item Budget assets proportion Resources Progress 2011-6-30
-31 this period in this
this in budget
period
period
Comprehensive
renovation for
central air RMB
Self-raising
conditioning 2.88 1,200,000.00 41.67% 70% 1,200,000.00
fund
system and million
heat water
system
53
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Total 1,200,000.00 1,200,000.00
5.9.3 No impairment provision withdrawal for no clearly evidence of impairment found
in construction in progress at period-end.
5.9.4 Construction in progress dated 30th June 2011 increase 100% over that of 31
December 2010. Mainly because the comprehensive renovation of central air
conditioning system and heat water system increased.
5.10 Intangible assets
5.10.1 Items of intangible assets are set out as follows:
Increased in this Decreased in this
Items
2010-12-31 period period 2011-6-30
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 accumulated
27,276,360.44 434,363.58 27,710,724.02
amortization
Land use right 27,276,360.44 434,363.58 27,710,724.02
III. Total book net value 60,038,917.30 434,363.58 59,604,553.72
Land use right 60,038,917.30 434,363.58 59,604,553.72
IV. Total impairment
29,343,890.98 29,343,890.98
provision
Land use right 29,343,890.98 29,343,890.98
V. Total book value of
30,695,026.32 434,363.58 30,260,662.74
intangible assets
Land use right 30,695,026.32 434,363.58 30,260,662.74
5.10.2 Impairment provision of intangible assets is withdrawn on the increase of land use
price (book value higher than current market price) caused by the local government’s
restriction on coastal land use.
5.11 Long-term expense to be amortized
Amortiz
Original Increas Accum Rest
ed
occurrin ed in ulated amortiza
Items 2010-12-31 during 2011-6-30
g this amortiz tion
the
amount period ation term
period
maintenance
costs for 170,000. 28,249.9 85,249. 18
central 113,000.00 84,750.01
00 9 99 months
air-conditioni
ng system
170,000. 28,249.9 85,249.
Total 113,000.00 84,750.01
00 9 99
Note: The maintenance costs for central air-conditioning system are amortized within 3
years since January of 2010.
5.12 Impairment provision for assets
Decreased in this
Accrual
period
Items 2010-12-31 amount this 2011-6-30
Transfer-
period Reversal
out
54
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
I. Impairment provision for bad
debt 79,987,849.37 79,987,849.37
II. Inventory impairment provision 778,329.36 655.94 777,673.42
III. Impairment provision for
financial assets available-for-sale
IV. Impairment provision for other
current assets 2,167,480.26 2,167,480.26
V. Impairment provision for
long-term equity investment 14,716,374.26 14,716,374.26
VI. Impairment provision for
investment properties
VII. Impairment provision for
fixed assets 36,247,447.59 36,247,447.59
VIII. Impairment provision for
engineering material
IX. Impairment provision for
construction in progress
X. Impairment provision for
productive biological assets
Including: impairment provision
for matured production biological
assets
XI. Impairment provision for oil
assets
XII. Impairment provision for
intangible assets 29,343,890.98 29,343,890.98
XIII. Impairment provision for
goodwill
XIV. Other impairment provision
163,240,715.8
Total
163,241,371.82 655.94 8
5.13 Short-term borrowings
2011-6-30 2010-12-31
Items Original Converted into Original Converted into
currency RMB currency RMB
bank loans 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Including: credit
mortgage
guarantee 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Pledge
Total 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
5.13.1 The closing balance is the loan of RMB 1,000,000.00 from Haikou Subrub
Country Credit Union to purchase bedclothes and material, the loan period from
December 13, 2010 to December 13, 2011, guaranteed by Hainan Qiongzhong Ecologic
Investment Guarant Ltd., and the Company provided the counter-guarantee by the Land
55
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Exchange Book (No. 00004071).
5.13.2 No overdue loans by the end of June 30, 2011.
5.14 Account payable
5.14.1 Aging analysis
Aging analysis 2011-6-30 2010-12-31
Within 1 year (1 year included) 1,354,229.56 912,669.26
1-2 years (2 years included) 80,554.77 80,554.77
2-3 years (3 years included) 8,051.91 8,051.91
3-4 years (4 years included) 3,304.00 3,304.00
4-5 years (4 years included) 42,995.00 42,995.00
Over 5 years 475,862.62 475,862.62
Total 1,964,997.86 1,523,437.56
5.14.2 No arrears of account payable due from shareholders with more than 5%
(including 5%) of the voting shares in the period
5.14.3 No large amount account payable with over one year account at balance of
period-end.
5.15 Account received in advance
5.15.1 Aging analysis
Aging analysis 2011-6-30 2010-12-31
Within 1 year (1 year included) 1,351,029.51 2,883,350.23
1-2 years (2 years included) 62,433.57 62,433.57
2-3 years (3 years included) 19,297.00 19,297.00
3-4 years (4 years included) 41,801.11 41,801.11
4-5 years (4 years included) 14,800.57 14,800.57
Over 5 years 70,204.76 70,204.76
Total 1,559,566.52 3,091,887.24
5.15.2 No arrears of account received in advance due from shareholders with more than
5% (including 5%) of the voting shares at balance of the period.
5.15.3 No large amount account received in advance with over one year account at
balance of period-end.
5.16 Wage payable
5.16.1 Wage payable
Increased in Decreased in
Items 2010-12-31 2011-6-30
this period this period
I. Wages, bonus, allowance and
2,434,048.70 4,775,561.31 3,928,982.00 3,280,628.01
subsidies;
II. Employee welfare 574,932.69 574,932.69
III. Social insurance 515,373.27 515,373.27
Including: 1. Medical insurance 107,101.15 107,101.15
2. Basic retirement
354,722.80 354,722.80
insurance
56
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
3. Annuity
4. Unemployment
35,701.22 35,701.22
insurance
、
5 Injury insurance 8,924.05 8,924.05
6. Maternity insurance 8,924.05 8,924.05
7.The labor comprehensive
insurance
IV. House fund
V. Labor union and employee
714,076.12 166,679.52 48,198.93 832,556.71
education allowance
VI. non-monetary welfare
VII. Compensation for terminate
labor contract
VIII. Other
Total 3,148,124.82 6,032,546.79 5,067,486.89 4,113,184.72
5.16.2 Estimate time and amount arrangement for wage payable at the year end
Items 2011-6-30 Estimate payment time
Basic wage payable 709,019.00 Distributed in July of 2011
Performance wage payable 2,571,609.01 Distributed after July of 2011
Total 3,280,628.01
5.16.3 Balance of wages payable at year-end increase 30.66% over that of period-begin
mainly due to the salary for employee’s increased.
5.17 Tax payable
Taxes 2011-6-30 2010-12-31
VAT 135,982.62 135,982.62
Business tax 60,979.74 193,714.71
Urban maintenance and
4,268.59 13,560.03
construction tax
House property tax 96,767.13 96,767.13
Enterprise income tax -1,702,702.80 -1,702,702.80
Individual income tax 3,515.86 9,695.53
Extra charges of education funds 2,985.28 5,811.43
Land use tax 72,393.00 72,393.00
Total -1,325,810.58 -1,174,778.35
5.18 Other account payable
5.18.1 Aging analysis
Aging 2011-6-30 2010-12-31
Within 1 year 1,333,768.44 1,168,820.10
1-2 years 209,631.27 209,631.27
2-3 years 22,670.21 22,670.21
3-4 years 1,203,489.68 1,203,489.68
4-5 years 234,413.60 234,413.60
Over 5 years 21,688,609.65 21,688,609.65
Total 24,692,582.85 24,527,634.51
5.18.2 No arrears of other account payable due from shareholders with more than 5%
57
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
(including 5%) of the voting shares at balance of the period.
Shareholder’s name 2011-6-30 2010-12-31
Haikou Agriculture, Industry & 800,000.00 800,000.00
Trade (Luoniushan) Co., Ltd.
5.18.3 Note to the large other payables with aging over one year at year-end
Name of the units Amount Reason for pending
China Securities Regulatory
19,810,000.00 Capital shortage
Commission
Security Times 1,065,059.86 Capital shortage
Sun Hongjie 1,000,000.00 Margin
Total 21,875,059.86
5.18.4 Significant amount of other account payable
Name of the units Amount Content
China Securities Regulatory Penalty due to manipulating
19,810,000.00
Commission company stock
Security Times 1,065,059.86 Charge for announcement
Sun Hongjie 1,000,000.00 Margin
Total 21,875,059.86
6.19 Share Capital (Unit: share)
Change during the period (+ 一、)
Bon Shares
New
Items 2010-12-31 us transferred 2011-6-30
shares Other Subtotal
shar from capital
issued
es reserve
I. Restricted
17,308,000 17,308,000.
circulating shares
1.State-owned
shares
2.State-owned
6,054,000 -132,000 -132,000 5,922,000
corporate shares
3.Other domestic
11,254,000 132,000 132,000 11,386,000
shares
Including
Domestic legal
11,122,000 132,000 132,000 11,254,000
person shares
Domestic natural
132,000.00 132,000.
person shares
4. Foreign shares
Including:
Foreign legal
person shares
Foreign natural
person shares
Total restricted
17,308,000 17,308,000
circulating shares
II. Non-restricted 346,792,000 346,792,000
58
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
circulating shares
1. RMB common
258,792,000 258,792,000
shares
2. Domestically
listed foreign 88,000,000 88,000,000
shares
3. Overseas listed
foreign shares
4. Others
Total circulating
346,792,000 346,792,000
shares
III. Total shares 364,100,000 364,100,000
5.20 Capital reserve
Increase Decrease
Change reason
Items 2010-12-31 during the during the 2011-6-30
and basis
period period
Share premium 33,336,215.58 33,336,215.58
Other capital
20,806,634.43 20,806,634.43
reserve
Total 54,142,850.01 54,142,850.01
5.21 Retained earnings
Items 2011-6-30 Ratio for withdrawal or
distribution
Retained earnings before adjustment at end -330,976,495.69
of last period
The total adjustment of retained earnings at
period-begin(increase+; decreased -)
Retained earnings after adjustment at -330,976,495.69
period-begin
Add: net profit attributable to owners of -1,635,132.91
parent company
Less: Appropriating statutory surplus reserve 10%
Appropriating discretional surplus reserve
Appropriating general risk provision
Dividend payable for ordinary shares
Dividend of ordinary shares transferred to
share capita
Retained earnings at period-end -332,611,628.60
5.22 Operating Revenue & Cost
5.22.1 Operating revenue
January- June 2011 January- June 2010
Items Business Business
Business cost Business cost
revenue revenue
Tourism & catering 18,467,961.40 3,393,494.71 20,018,480.32 3,371,403.38
Total 18,467,961.40 3,393,494.71 20,018,480.32 3,371,403.38
5.22.2 Main business classified in terms of industry
Items January- June 2011 January- June 2010
59
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Business Business
Business cost Business cost
revenue revenue
Tourism & catering 18,467,961.40 3,393,494.71 20,018,480.32 3,371,403.38
Total 18,467,961.40 3,393,494.71 20,018,480.32 3,371,403.38
5.22.3 Main business classified in terms of area
January- June 2011 January- June 2010
Area Business Business
Business cost Business cost
revenue revenue
Hainan Zone 18,467,961.40 3,393,494.71 20,018,480.32 3,371,403.38
Total 18,467,961.40 3,393,494.71 20,018,480.32 3,371,403.38
5.22.4 Operating revenue from top 5 customers
Proportion account for total
Amount occurred
Customer name business revenue of the
this year
Company (%)
PEGAS 3,445,644.00 18.66
Hainan Chenda International Travel Agency
Ltd 613,642.00 3.32
Euro-American Section of Sanya Branch of
Hainan Orient International Travel Agency 612,087.00 3.31
Ltd
South Cross 518,560.00 2.81
Xie Jiansheng 464,987.00 2.52
Total 5,654,920.00 30.62
5.23 Business taxes and surcharge
Items January- June 2011 January- June 2010 Taxation standard (%)
Business tax 923,398.08 1,000,204.13 5
Urban maintenance and
64,637.87 70,014.29
construction tax 7
Extra charges of education
46,169.92 30,006.12
funds 3
Total 1,034,205.87 1,100,224.54
5.24 Financial expenses
Items January- June 2011 January- June 2010
Interest expenditure 44,000.00
Less: Interest income 6,486.09 5,691.90
Exchange loss
Less: exchange gain
Procedure charge expenditure 159,577.87 158,636.20
Others
Total 197,091.78 152,944.30
5.25 Non-operating income
Items January- June 2011 January- June 2010
Total gains from disposal of
non-current assets
Including: gain from disposal of fixed 8,190.00
60
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
assets
Gain from disposal of intangible
assets
Gains from debt restructuring
Compensation income 183,776.00 174,761.00
Other income 33,640.60 26,480.35
Government subsidy 20,000.00
Total 245,606.60 201,241.35
5.26 Note to cash flow statement
5.26.1Other cash received from operating activities amounting to 166,332.89 yuan for
details as:
Items January- June 2011
Compensation etc. 158,829.80
Account returned by employees 1,017.00
Interest income 6,486.09
Total 166,332.89
5.26.2 Other cash paid for operating activities amounting to 4,201,173.86 yuan for details
as:
Items January- June 2011
Cash expense paid 4,021,595.99
Other current amount 20,000.00
Handling charge 159,577.87
Total 4,201,173.86
5.27 Supplementary information about cash flow statement:
5.27.1 Supplementary information about cash flow statement
Supplementary information January- June 2011
1.Adjustment from net profit to cash flows from operating activities
Net profit -1,635,132.91
Add: Impairment provision of assets
Depreciation of fixed assets, oil assets or biological asset 3,133,201.85
Amortization of intangible assets 434,363.58
Amortization of long-term expense to be apportioned 28,249.99
Loss from disposal of fixed assets, intangible assets and other long-term
-7,390.00
－
assets ( “ ” means gain)
－
Loss of fixed assets retirement ( “ ” means gain)
－
Loss from the change of fair value ( “ ” means gain)
－
Financial expense ( “ ” means income) 44,000.00
－
Investment loss ( “ ” means income)
－
Debt restructuring loss ( “ ” means income)
－
The decrease of deferred tax assets ( “ ” means increase)
－
The increase of deferred tax liabilities( “ ” means decrease)
61
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
－
The decrease of inventories ( “ ” means increase) -52,108.80
－
The decrease of operating receivables ( “ ” means increase) -1,388,128.68
－
The increase of operating payable ( “ ” means decrease) -111,784.41
Other
Net cash flow from operating activities 445,270.62
2. Significant investment and financing activities with no reference to
cash collection and payment:
Debt convert to capital
Convertible bond due within one year
Fixed assets leased in by financing
3. Net change in cash and cash equivalent:
Closing balance of cash 2,233,728.81
Less: opening balance of cash 3,104,278.19
Add: closing balance of cash equivalent
Less: opening balance of cash equivalent
Net increase in cash and cash equivalent -870,549.38
5.28.2 Constitute of cash and cash equivalent
Item 2011-6-30
1.Cash 2,233,728.81
Including: cash on hand 947,934.90
Bank deposit available for payment at any time 1,285,793.91
Other monetary capital available for payment at any time
2. Cash equivalent
Including: bond investment due within 3 months
3.Closing balance of cash and cash equivalent
Including: restricted cash and cash equivalent used by parent company
or subsidiary among the group
Total 2,233,728.81
Note 6 Related party relationship and transactions
(I). The largest shareholder of the Company
Legal
Business Registe Business
Name of the largest shareholder Relationship represent Register capital
type r place nature
ative
Planting
Joint-stoc
Haikou Agriculture, Industry The largest Haikou Hu and RMB 880.1320
k
& Trade (Luoniushan) Co., Ltd. shareholder City Dianling culturing million
enterprise
business
(Continued)
Share holding Voting ratio The ultimate controller of Organization
Name of the largest shareholder
ratio (%) (%) the Company code
Haikou Agriculture, Industry Hainan Luo Niu Shan
16.48 16.48 28408974-7
& Trade (Luoniushan) Co., Ltd. Holding Group
Note: On 29 January 2010, the Company received “the confirmation book of security
transfer” issued by Shenzhen Branch of China Security Registration & Settlement Ltd
62
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
from Haikou Agriculture, Industry & Trade (Luoniushan) Co., Ltd., it confirmed that 60
million A shares held by Haikou Food Ltd has transferred to Haikou Agriculture, Industry
& Trade (Luoniushan) Co., Ltd. After this transfer, Haikou Agriculture, Industry & Trade
(Luoniushan) Co., Ltd. held 60 million A-shares and account for 16.48% of the Company,
be the largest shareholder of the Company.
(II). Related party transaction
Related party transaction involves of sales of goods and rendering or accepting of service
Amount occurred during
Amount occurred in 2010
Jan.-June of 2011
Transac Pricing policy Proportion Proportion
Transact accounting accounting
Related party tion and decision
ion type for the total for the total
content procedures Amount Amount
similar similar
transactions transactions
(%) (%)
Haikou
Agriculture, Accom
Industry & Trade Sales modati Market price 79,794.06 0.43 81,115.60 0.23
(Luoniushan) on
Co., Ltd.
(III). Account receivables and payable from related party
Items Related party 2011-6-30 2010-12-31
Haikou Agriculture, Industry &
Accounts receivable 218,992.12 139,198.06
Trade (Luoniushan) Co., Ltd.
Haikou Agriculture, Industry &
Other account payable 800,000.00 800,000.00
Trade (Luoniushan) Co., Ltd.
Note 7 Contingencies
No contingencies should be disclosed for the Company in this period.
Note 8 Commitments
No commitments should be disclosed for the Company in this period.
Note 9 Events after balance sheet date
No events after balance sheet date should be disclosed as at the balance sheet date.
Note 10 Other significant events
No other significant events should be disclosed for the Company.
Note 11 Supplementary information
11.1 Details of non-recurring gain/loss of current year
Amount of last
Items Amount this year
year
Gain or loss from disposal of non-current assets 7,390.00 -6,806.62
Refunding and exemption of taxes in excess of authority or
without official approval documents
Government grant accounted into current income account
(except for those government grant closely related to the
63
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Company’s business, and received at
national statutory standard and amount)
Capital adoption fee collected from non-financial organizations
and accounted into current gain/loss
Gain/loss from differences between the cost of enterprise
merger and the fair value of recognizable net asset of the
invested entities
Gain/loss from non-monetary assets exchange
Gain/loss from commissioned investment or assets
Asset impairment provisions provided for force-majeure, such
as incurred natural disasters
Gain/loss from debt restructure
Enterprise reorganizing expenses, such as employee placement
fee and integration fee
Gain/loss from trade departure from fair value
Current net gain/loss of subsidiaries under same control from
beginning of term till date of consolidation
Gain/loss generated by contingent liabilities without
connection with main businesses
Gain/loss from change of fair value of transactional asset and
liabilities, and investment gains from disposal of transactional
financial assets and liabilities and sellable financial assets,
other than valid period value instruments related to the
Company’s common businesses
Restoring of receivable account impairment provision tested
individually
Gain/loss from commissioned loans
Gain/loss from change of fair value of investment property
measured at fair value in follow-up measurement
Influence of one-off adjustment made on current gain/loss
account according to the laws and regulations regarding tax and
accounting
Consigning fee received for consigned operation
Other non-business income and expenditures other than the
above 238,216.60 50,904.80
Other gain/loss items satisfying the definition of nonrecurring
gain/loss account
Subtotal 245,606.60 44,098.18
Influenced amount of income tax
Total
245,606.60 44,098.18
11.2 Accounting difference between IFRS and CAS
No accounting difference between IFRS and CAS.
11.3 Return on equity (ROE) and earning per share (EPS)
Weighted average ROE EPS
Profit of current period
(%) Basic EPS Diluted EPS
Net profit attribute to common
-1.8915 -0.0045 -0.0045
shareholders
Net profit exempt -2.1756 -0.0052 -0.0052
64
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
non-recurring gain/loss
attribute to common
shareholders
11.4 Calculation process of weighted average ROE, basic EPS and diluted EPS
(1) Calculation process of weighted average ROE
Amount of
Items Serials
current year
Net profit attribute to common shareholders 1
-1,635,132.91
Non recurring gain/loss 2 245,606.60
Net profit exempt non-recurring gain/loss attributed to
3=1-2 -1,880,739.51
common shareholders
Opening balance of net assets attribute to common
4 87,266,354.32
shareholders
Increased net assets attribute to common shareholders
5
from issue new shares or convertible bonds
Accumulated months from the next month of increase
6
net assets to the current year end
Decreased net assets attribute to common shareholders
7
due to repurchase or cash dividend
Accumulated months from the next month of decrease
8
net assets to the current year end
The change of net assets due to common shareholders
9
due to other transaction or events
Accumulated months from the next month of change net
10
assets to the current year end
Months in reporting period 11
12=4+1×1/2
Weighted average net assets +5×6/11-7×8/11±9×10/1 86,448,787.87
1
Weighted average ROE 13=1/12 -1.8915%
The net assets not calculated due to the common control
14
enterprise merge investee
Weighted average ROE exempt non recurring gain/loss （
15=3/ 12-14 ） -2,1756%
(2) Calculation progress of basic EPS and diluted EPS
Basic EPS = P0÷S
S= S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk
Including:
P0 refers to net profit attribute to common shareholders or net profit exempt non recurring
gain/loss attribute to common shareholders;
S refers to weighted average listed common shares;
S0 refers to total opening shares;
S1 refers to increased shares due to capital reserves transfer into shares or bonus shares;
Si refers to increased shares due to issue new shares or convertible bonds;
Sj refers to decreased shares due to repurchase shares during the reporting period;
Sk refers to contract shares during the reporting period;
M0 refers to months during the reporting period;
Mi refers to accumulated months from next month of the increased shares to the end of
reporting period;
65
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. Semi-Annual Report 2011(Full-text)
Mj refers to accumulated months from the next month of the decreased shares to the end of
reporting period.
If exist bonus shares, capital reserve transfer into shares, divide shares or combination
shares between the balance sheet date and the approve date of financial report, which may
affect the listed common shares or potential common shares without affecting the net
assets, should recalculate EPS during the comparative periods in terms of adjusted shares.
No diluted potential common shares both in current period and the carrying forward
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 2011.
66
