司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Stock Code: 000613, 200613 Short Form of the Stock: Dadonghai-A, Dadonghai-B 海南大东海旅游中心股份有限公司 Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. The First Quarterly Report 2019 (Full Text) Disclosure Date: 25 April 2019 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Section I. Important Notice Board of Directors and the Supervisory Committee of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint. All Directors are attended the Board Meeting for Quarterly Report deliberation Yuan Xiaoping, Person in charge of the Company, Fu Zongren, person in charge of accounting works and Fu Zongren, person in charge of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete. 2 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Section II. Company Information I. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data or not □ Yes √No Current Same period Changes of this period over same Period of last year period of last year Operating income (RMB) 9,293,216.58 9,888,991.83 -6.02% Net profit attributable to shareholders of the listed 1,572,029.88 1,973,425.41 -20.34% company(RMB) Net profit attributable to shareholders of the listed company 1,572,029.88 1,973,903.39 -20.36% after deducting non-recurring gains and losses(RMB) Net cash flow arising from operating activities(RMB) 1,436,500.57 2,610,752.65 -44.98% Basic earnings per share (RMB/Share) 0.0043 0.0054 -20.37% Diluted earnings per share (RMB/Share) 0.0043 0.0054 -20.37% Weighted average ROE 2.00% 2.53% -0.53% At the end of At the end of Changes of this period-end over the reporting last year same period-end of last year (%) period Total assets (RMB) 88,964,065.62 88,197,118.07 0.87% Net assets attributable to shareholder of listed company 79,360,726.17 77,788,696.29 2.02% (RMB) Items of non-recurring gains and losses □ Applicable √Not applicable No items of non-recurring gains and losses in the period II. Total number of shareholders at the end of this report period and top ten shareholders 1. Common and preferred stockholders with voting rights recover and the top ten share-holding In Share Total common shareholders at the end Total preferred stockholders with voting rights 37,915 0 of report period recover at the end of report period Top ten shareholders Nature of Proport Amount of Amount Number of share Shareholder’s name ion of shareholder shares held of pledged/frozen shares 3 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 held restricted State shares of Amount held share Domestic Luoniushan Co., Ltd. non-state-owned 17.55% 63,885,980 0 Pledge 63,885,980 legal person Domestic nature Yang Meiqin 4.47% 16,279,028 0 person Domestic nature Pan Anjie 4.01% 14,593,598 0 person Domestic Hainan Ya An Ju Property Service Co., Ltd. non-state-owned 2.25% 8,205,800 0 legal person Domestic nature Chen Jinlian 2.13% 7,766,400 0 person HGNH International Asset Management Co., Ltd – Overseas legal 1.23% 4,495,902 0 customer deposit person Domestic nature Pan Aiping 1.13% 4,110,738 0 person Domestic nature Zhang Fengxiu 1.07% 3,901,372 0 person China Investment Securities (HK) Co., Ld. – Overseas legal 0.99% 3,622,300 0 customer deposit person Overseas legal Shenwan Hongyuan (H.K.) Limited 0.84% 3,056,390 0 person Top ten shareholders with unrestricted shares held Amount of unlimited Type of shares Shareholder’s name shares held Type Amount Luoniushan Co., Ltd. 63,885,980 RMB common share 63,885,980 Yang Meiqin 16,279,028 Domestically listed foreign share 16,279,028 Pan Anjie 14,593,598 Domestically listed foreign share 14,593,598 Hainan Ya An Ju Property Service Co., Ltd. 8,205,800 RMB common share 8,205,800 Chen Jinlian 7,766,400 Domestically listed foreign share 7,766,400 HGNH International Asset Management Co., Ltd – 4,495,902 RMB common share 4,495,902 customer deposit Pan Aiping 4,110,738 Domestically listed foreign share 4,110,738 Zhang Fengxiu 3,901,372 RMB common share 3,901,372 4 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 China Investment Securities (HK) Co., Ld. – 3,622,300 RMB common share 3,622,300 customer deposit Shenwan Hongyuan (H.K.) Limited 3,056,390 Domestically listed foreign share 3,056,390 Among the above mentioned shareholders,Hainan Ya An Ju Property Service Co., Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd.; Yang Meiqin, Pan Explanation on associated relationship among the Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the Company aforesaid shareholders is unknown whether there exists associated relationship or belongs to the consistent actor regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company among the other shareholders. Explanation on top 10 common shareholders N/A involving margin business Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period. 2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with preferred stock held □ Applicable √ Not applicable 5 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Section III. Significant Events I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons √Applicable □Not applicable In RMB Same period +.- Changes Items of balance sheets Current period Reasons of last year ratio (%) Note receivable and account receivable 547,588.58 426,434.87 28.41% Change of normal settlement Account paid in advance 111,708.57 100.00% The account paid in advance for design charge Other account receivable 1,037,439.12 458,242.73 126.40% The loans and utilities ready for settlement increased Wages payable 2,185,830.54 2,841,262.35 -23.07% Annual bonus delivered Taxes payable 685,716.52 458,242.35 52.09% The VAT input tax ready for settlement increased Same period +.- Changes Items of profit statement Current period Reasons of last year ratio (%) Implementation of the tax reduction policy from Taxes and surcharge 203,974.74 387,097.33 -47.31% government Same period +.- Changes Items of cash flow statement Current period Reasons of last year ratio (%) Implementation of the tax reduction policy from Vary taxes paid 670,948.53 960,722.59 -43.19% government Cash paid for purchasing fixed assets, intangible assets The cardinal number of engineering account paid at 217,337.36 763,739.59 -251.41% and other long-term assets same period of last year is higher II. Progress of important events and its influence as well as the analysis on solutions √Applicable □ Not applicable Disclosure Inquiry index for the announcement Overview date released The “Notice of Lawyer’s Letter The Lawyer’s Letter received from Sanya Power Bureau: by preliminary received by Hainan Dadonghai Tourism accounting from Sanya Power Bureau, the 10313373 Kwh electricity was Center (Holdings) Co., Ltd.” (Notice understated under the name of South China Hotel from July 2006 to April 2016-05-31 No.: 2016-016) released on Securities 2016. The Company is communicated and negotiates with Sanya Power Times, Hong Kong Commercial Daily Bureau in the above mentioned event without negotiation results so far. and Juchao Website The company received the Lawyer’s Letter from Hainan Cinda: Main contents the Announcement of Hainan of the Lawyer’s Letter: the financial loan dispute between the company’s joint 2018-08-10 Dadonghai Tourism Center (Holdings) stock company, Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. Co., Ltd. on Receiving the Lawyer’s 6 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 (hereinafter referred to as “Dadonghai Holdings”), and its original creditor, Letter that the company published on China Construction Bank Sanya Branch (hereinafter referred to as “CCB Securities Times, Hong Kong Sanya Branch”), its new creditor China Cinda Asset Management Co., Ltd. Commercial Daily and Hainan Branch (hereinafter referred to as “Hainan Cinda”) currently makes the www.cninfo.com.cn (Announcement right to recover, the two debts include the principal of 1.1 million Yuan and No.: 2018-052) interest of 5,598,300 Yuan temporarily calculated to April 30, 2018, totaling 6,698,300 Yuan and the principal of 5 million Yuan and interest of 29,311,700 Yuan temporarily calculated to April 30, 2018, totaling 34,311,700 Yuan. If Dadonghai Holdings is incapable of handling the liquidation, Hainan Cinda will claim that the company should be jointly and severally liable for the above debts of Dadonghai Holdings.Progress of the event found more in major lawsuits item. The Announcement on the Significant Significant litigation: The plaintiff, China Cinda Asset Management Co., Ltd. Litigation that the company published Hainan Branch, sued the defendants, Hainan Dadonghai Tourism Center on Securities Times, Hong Kong (Holdings) Co., Ltd. and Sanya Yueya Real Estate Development Corporation, 2018-11-22 Commercial Daily and for a financial loan contract dispute, appealing to Hainan Dadonghai Tourism www.cninfo.com.cn (Announcement Center (Holdings) Co., Ltd. to repay the loan of 5 million Yuan and the loan No.: 2018-061). interest of 29,311,700 Yuan temporarily calculated to April 30, 2018, Sanya Yueya Real Estate Development Corporation assumes the joint and several Announcement on the Progress of liability, and the two defendants bear litigation costs. In the course of the Significant Litigation that the company litigation, the plaintiff added the company as a co-defendant and required the published on Securities Times, Hong 2019-01-05 court to order the company to assume joint and several liability for the above Kong Commercial Daily and debts of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. As the above www.cninfo.com.cn (Announcement mentioned cases with principal of 5 million yuan concerned, due to the No.: 2019-001) Civil Judgment (2018) No.Q02MC76 from the Intermediate People’s Court Announcement on the Progress of Sanya. The judgment dismissed the claim of the plaintiff China Cinda Asset Significant Litigation that the company Management Co., Ltd. Hainan Branch, and the case acceptance fee and published on Securities Times, Hong 2019-01-31 property preservation application fee were borne by China Cinda Asset Kong Commercial Daily and Management Co., Ltd. Hainan Branch. The plaintiff Hainan Cinda refused to www.cninfo.com.cn (Announcement accept the first instance judgment and appealed to Hainan Higher People’s No.: 2019-003) Court. On 28 March 2019, in line with the Civil Judgment (2019) QMZ Announcement on the Progress of No.96 from Hainan Higher People’s Court: Reject the appeal and uphold the Significant Litigation that the company original verdict; the fees for accepting second instance cases will paid by published on Securities Times, Hong Hainan Cinda; this is a final judgment. As for the cases with principal of 1.1 2019-04-02 Kong Commercial Daily and million yuan, it is reported that the plaintiff, Hainan Cinda has withdrawn his www.cninfo.com.cn (Announcement lawsuit. No.: 2019-013) Progress of implementation of shares repurchase □ Applicable √ Not applicable Implementation progress of the reduction of repurchases shares by centralized bidding □ Applicable √ Not applicable 7 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies √Applicable □ Not applicable Com Commi mitm Accept Impleme Commitments Type Contents tment ent er ntation time perio d On May 30, 2007, Luoniushan Co., Ltd. made commitments in the Company’s "Instructions for reform of non-tradable shares" (Revision) and "Instructions for reform of The non-tradable shares" (Abstract of original revision) that in view of Dadonghai plan for Luoniu Company’s losses in successive years major Share 6 shan and on the verge of delisting, in order 2017-0 assets Share Merger Reform Merger mont Co., to reverse the company's business 6-27 reorganiz Reform hs Ltd. difficulties, improve profitability and ation has recover the continuous business been capacity, Luoniushan Co., Ltd., the terminate controlling shareholder of Dadonghai d Company made commitments to actively seek restructuring parties to reorganize the assets of Dadonghai Company at the appropriate time. Commitments in report of acquisition or equity change Commitments in assets reorganization Commitments make in initial public offering or re-financing Equity incentive commitment Other commitments for medium and small shareholders Completed on time(Y/N) N Stock of the Company suspended since 15 Feb. 2017 for Luoniushan planning to fulfill the commitments. On 13 August 2017, the 12 proposals including “proposal of major assets If the commitments is not fulfilled on acquisition under the name of Hainan Dadonghai Tourism Center Co., Ltd. and Report on time, shall explain the specify reason Related Transactions (Pre-plan)” are not approved by the 11th extraordinary meeting of 8th and the next work plan BOD. On 15 Aug. 2017, the Company released a Notice to terminate the major assets reorganization and stock resumption on 17 August. 8 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 On 4 December 2017, the “proposal of Change the commitment period by first majority shareholder” was approved by the Board and supervisory committee. Luoniushan Co., Ltd. –the first majority shareholder of the Company, plans to extend the commitment period for 2 years since 27 Dec. 2017, that is end of the reorganization commitment changed to 26 December 2019. and the 4th extraordinary shareholders general meeting 2017 has approved the above mentioned proposal dated 22 Dec. 2017 On January 31, 2018, the company received the Notice on Planning for Suspension of Major Events sent by Luoniushan Co., Ltd., the company’s largest shareholder, to plan and prepare the major issues related to the company. Upon application by the company, the company’s stock (stock short name: Dadonghai A, Dadonghai B, stock code: 000613, 200613) was suspended since the opening on January 31, 2018. Upon application by the company, the company’s stock resumed trading on February 8, 2018, and was transferred to the major asset restructuring since the opening on February 14, 2018. On June 25, 2018, the company held the third interim meeting of the ninth board of directors which reviewed and approved the Proposal on Terminating the Planning for Major Asset Restructuring. After careful study, the board of directors of the company decided to terminate the planning for this major asset restructuring. IV. Predict of the business performance from January to June 2018 Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year □Applicable √Not applicable V. Securities Investment □Applicable √Not applicable The Company has no securities investment occurred in the Period VI. Derivative investment □ Applicable √ Not applicable No derivative investment in the Period. VII. Registration form for receiving research, communication and interview in the report period √ Applicable □ Not applicable Type of Date Method Index for the interview and research investors Telephone Investor Mr./Ms. Wang from Shenzhen, asking about the operation 2019-01-10 communic Individual performance of 2018 without material required ation Telephone Investor Mr./Ms. Zhang from Shanghai, asking about the operation 2019-02-22 communic Individual performance of 2018 and time of annual report released, and without material ation required 2019-03-19 Telephone Individual Investor Mr./Ms. Lin from Beijing, asking about the operation performance of 9 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 communic 2018 and performance of the first quarter without material required ation VIII. External security against the rules □ Applicable √ Not applicable The Company has no external security against the rules in the Period IX. Controlling shareholders' and its related party's non-business capital occupying of the listed company □ Applicable √ Not applicable There are no controlling shareholders' and its related party's non-business capital occupying of the listed company 10 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Section IV. Financial Statement I. Financial statement 1. Balance sheet Prepared by HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD. In RMB Item 2019-3-31 2018-12-31 Current assets: Monetary fund 16,590,245.87 15,364,355.30 Settlement provisions Capital lent Tradable financial assets Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable and account receivable 547,588.58 426,434.87 Including: Notes receivable Accounts receivable 547,588.58 426,434.87 Account paid in advance 111,708.57 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 1,037,439.12 458,242.73 Including: Interest receivable Dividends receivable Buying back the sale of financial assets Inventories 200,282.44 221,390.19 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 1,946,568.31 1,846,219.79 Total current assets 20,433,832.89 18,316,642.88 11 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Non-current assets: Loans and payments on behalf Debt investment Available-for-sale financial assets Other debt investment Held-to-maturity investments Long-term receivables Long-term equity investments Investment in other equity instrument Other non-current financial assets Investment real estate 8,265,849.54 8,384,480.43 Fixed assets 35,770,411.53 36,497,869.65 Construction in progress Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 22,002,152.25 22,205,249.04 R&D expenses Goodwill Long-term deferred expenses 2,491,819.41 2,792,876.07 Deferred income tax assets Other non-current assets Total non-current assets 68,530,232.73 69,880,475.19 Total assets 88,964,065.62 88,197,118.07 Current liabilities Short-term loans Loan from central bank Capital borrowed Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable & account payable 1,534,338.05 1,607,835.81 Accounts received in advance 1,135,399.17 1,291,293.05 12 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Selling financial asset of repurchase Absorbing deposit and interbank deposits Agent buying and selling securities Acting underwriting securities Wage payable 2,185,830.54 2,841,262.35 Taxes payable 685,716.52 450,861.87 Other accounts payable 2,572,370.13 2,727,483.66 Including: Interest payable Dividend payable Handling fees and commissions payable Reinsurance payable Contractual liability Liability held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 8,113,654.41 8,918,736.74 Non-current liabilities: Insurance contract reserve Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Lease liability Long-term account payable Long-term wage payable Accrued liabilities 1,489,685.04 1,489,685.04 Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 1,489,685.04 1,489,685.04 Total liabilities 9,603,339.45 10,408,421.78 Owners’ equity: Share capital 364,100,000.00 364,100,000.00 Other equity instrument 13 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Including: preferred stock Perpetual capital securities Capital public reserve 54,142,850.01 54,142,850.01 Less: Inventory shares Other comprehensive income Special reserve Surplus reserve Provision of general risk Retained profit -338,882,123.84 -340,454,153.72 Total owner’s equity attributable to parent Company 79,360,726.17 77,788,696.29 Minority interests Total owner’s equity 79,360,726.17 77,788,696.29 Total liabilities and owner’s equity 88,964,065.62 88,197,118.07 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren 2. Balance Sheet of Parent Company In RMB Item 2019-3-31 2018-12-31 Current assets: Monetary fund 16,089,801.18 14,864,055.73 Tradable financial assets Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable and account receivable 547,588.58 426,434.87 Including: Notes receivable Accounts receivable 547,588.58 Account paid in advance 111,708.57 Other account receivable 1,037,439.12 458,242.73 Including: Interest receivable Dividends receivable Inventories 200,282.44 221,390.19 14 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 1,946,568.31 1,846,219.79 Total current assets 19,933,388.20 17,816,343.31 Non-current assets: Debt investment Available-for-sale financial assets Other debt investment Held-to-maturity investments Long-term receivables Long-term equity investments 1,000,000.00 1,000,000.00 Investment in other equity instrument Other non-current financial assets Investment real estate 8,265,849.54 8,384,480.43 Fixed assets 35,770,411.53 36,497,869.65 Construction in progress Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 22,002,152.25 22,205,249.04 R&D expenses Goodwill Long-term deferred expenses 2,491,819.41 2,792,876.07 Deferred income tax assets Other non-current assets Total non-current assets 69,530,232.73 70,880,475.19 Total assets 89,463,620.93 88,696,818.50 Current liabilities Short-term loans Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable & account payable 1,534,338.05 1,607,835.81 Accounts received in advance 1,135,399.17 1,291,293.05 Contractual liability Wage payable 2,185,830.54 2,841,262.35 15 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Taxes payable 685,716.52 450,861.87 Other accounts payable 3,072,070.56 3,226,952.36 Including: Interest payable Dividend payable Liability held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 8,613,354.84 9,418,205.44 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Lease liability Long-term account payable Long-term wage payable Accrued liabilities 1,489,685.04 1,489,685.04 Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 1,489,685.04 1,489,685.04 Total liabilities 10,103,039.88 10,907,890.48 Owners’ equity: Share capital 364,100,000.00 364,100,000.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 54,142,850.01 54,142,850.01 Less: Inventory shares Other comprehensive income Special reserve Surplus reserve Retained profit -338,882,268.96 -340,453,921.99 Total owner’s equity 79,360,581.05 77,788,928.02 Total liabilities and owner’s equity 89,463,620.93 88,696,818.50 Legal Representative: Yuan Xiaoping 16 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren 3. Consolidated Profit Statement In RMB Item Current Period Last Period I. Total operation revenue 9,293,216.58 9,888,991.83 Including: Operation revenue 9,293,216.58 9,888,991.83 Interest income Insurance gained Handling fees and commissions income II. Total operation cost 7,721,186.70 7,915,088.44 Including: Operation cost 3,014,239.96 3,075,128.86 Interest expense Handling fees and commissions expenses Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Taxes and surcharge 203,974.74 387,097.33 Sales expenses 1,425,443.74 1,401,184.37 Administration expenses 3,069,960.73 3,044,381.68 R&D expenses Financial expenses 7,567.53 7,296.20 Including: interest expenses Interest income 5,817.34 14,312.79 Losses of devaluation of asset Loss of credit impairment Add: other income Investment income (Loss is listed with “-”) Including: Investment income on affiliated Company and joint venture Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value(Loss is listed with “-”) Income on disposal of assets (Loss is listed with “-”) III. Operating profit (Loss is listed with “-”) 1,572,029.88 1,973,903.39 17 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Add: Non-operating income Less: Non-operating expense 477.98 IV. Total Profit (Total loss is listed with “-”) 1,572,029.88 1,973,425.41 Less: Income tax expenses V. Net profit (Net loss is listed with “-”) 1,572,029.88 1,973,425.41 (i) Classify by business continuity 1.Continuous operating net profit (net loss listed with ‘-”) 1,572,029.88 1,973,425.41 2.Termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s of parent company 1,572,029.88 1,973,425.41 2.Minority shareholders’ gains and losses VI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable to owners of parent company (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5.Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.Gain/loss of fair value changes for available-for-sale financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other Net after-tax of other comprehensive income attributable to minority 18 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 shareholders VII. Total comprehensive income 1,572,029.88 1,973,425.41 Total comprehensive income attributable to owners of parent Company 1,572,029.88 1,973,425.41 Total comprehensive income attributable to minority shareholders VIII. Earnings per share: (i) Basic earnings per share 0.0043 0.0054 (ii) Diluted earnings per share 0.0043 0.0054 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren 4. Profit Statement of Parent Company In RMB Item Current Period Last Period I. Operation revenue 9,293,216.58 9,888,991.83 Less: Operation cost 3,014,239.96 3,075,128.86 Taxes and surcharge 203,974.74 387,097.33 Sales expenses 1,425,443.74 1,401,184.37 Administration expenses 3,069,960.73 3,044,381.68 R&D expenses Financial expenses 7,712.65 7,296.20 Including: interest expenses Interest income 5,452.22 14,312.79 Losses of devaluation of asset Loss of credit impairment Add: other income Investment income (Loss is listed with “-”) Including: Investment income on affiliated Company and joint venture Net exposure hedging income (Loss is listed with “-”) Changing income of fair value(Loss is listed with “-”) Income on disposal of assets (Loss is listed with “-”) II. Operating profit (Loss is listed with “-”) 1,571,884.76 1,973,903.39 Add: Non-operating income Less: Non-operating expense 477.98 19 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 III. Total Profit (Loss is listed with “-”) 1,571,884.76 1,973,425.41 Less: Income tax expenses IV. Net profit (Net loss is listed with “-”) 1,571,884.76 1,973,425.41 (i) Continuous operating net profit (net loss listed with ‘-”) 1,571,884.76 1,973,425.41 (ii) Termination of net profit (net loss listed with ‘-”) V. Net after-tax of other comprehensive income (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5.Other (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.Gain/loss of fair value changes for available-for-sale financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other VI. Total comprehensive income 1,571,884.76 1,973,425.41 VII. Earnings per share: (i) Basic earnings per share 0.0043 0.0054 (ii) Diluted earnings per share 0.0043 0.0054 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren 20 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Person in charge of accounting institute: Fu Zongren 5. Consolidated Cash Flow Statement In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 9,208,963.67 10,522,232.38 Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Net cash received by agents in sale and purchase of securities Write-back of tax received Other cash received concerning operating activities 393,610.54 323,410.03 Subtotal of cash inflow arising from operating activities 9,602,574.21 10,845,642.41 Cash paid for purchasing commodities and receiving labor service 2,305,147.46 2,665,733.25 Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Net increase of financial assets held for transaction purposes Net increase of capital lent Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 3,734,956.14 3,300,722.59 Taxes paid 670,948.53 960,722.59 Other cash paid concerning operating activities 1,455,021.51 1,307,711.33 Subtotal of cash outflow arising from operating activities 8,166,073.64 8,234,889.76 Net cash flows arising from operating activities 1,436,500.57 2,610,752.65 21 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 II. Cash flows arising from investing activities: Cash received from recovering investment Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term assets 16,000.00 Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities 16,000.00 Cash paid for purchasing fixed assets, intangible assets and other long-term 226,600.00 763,739.59 assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing activities 226,600.00 763,739.59 Net cash flows arising from investing activities -210,600.00 -763,739.59 III. Cash flows arising from financing activities Cash received from absorbing investment Including: Cash received from absorbing minority shareholders’ investment by subsidiaries Cash received from loans Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from financing activities Cash paid for settling debts Cash paid for dividend and profit distributing or interest paying Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities Subtotal of cash outflow from financing activities Net cash flows arising from financing activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash equivalents 1,225,900.57 1,847,013.06 Add: Balance of cash and cash equivalents at the period -begin 15,364,355.30 9,710,906.78 VI. Balance of cash and cash equivalents at the period -end 16,590,255.87 11,557,919.84 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren 22 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Person in charge of accounting institute: Fu Zongren 6. Cash Flow Statement of Parent Company In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 9,208,963.67 10,522,232.38 Write-back of tax received Other cash received concerning operating activities 393,235.42 323,410.03 Subtotal of cash inflow arising from operating activities 9,602,199.09 10,845,642.41 Cash paid for purchasing commodities and receiving labor service 2,305,147.46 2,665,733.25 Cash paid to/for staff and workers 3,734,956.14 3,300,722.59 Taxes paid 670,948.53 960,722.59 Other cash paid concerning operating activities 1,454,801.51 1,307,711.33 Subtotal of cash outflow arising from operating activities 8,165,853.64 8,234,889.76 Net cash flows arising from operating activities 1,436,345.45 2,610,752.65 II. Cash flows arising from investing activities: Cash received from recovering investment Cash received from investment income Net cash received from disposal of fixed, intangible and other long-term 16,000.00 assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities 16,000.00 Cash paid for purchasing fixed assets, intangible assets and other long-term 226,600.00 763,739.59 assets Cash paid for investment Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities Subtotal of cash outflow from investing activities 226,600.00 763,739.59 Net cash flows arising from investing activities -210,600.00 -763,739.59 III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans Cash received from issuing bonds Other cash received concerning financing activities 23 司公限有份股心中游旅海东大南海 2019 文全告报度季一第年 Subtotal of cash inflow from financing activities Cash paid for settling debts Cash paid for dividend and profit distributing or interest paying Other cash paid concerning financing activities Subtotal of cash outflow from financing activities Net cash flows arising from financing activities IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash equivalents 1,225,745.45 1,847,013.06 Add: Balance of cash and cash equivalents at the period -begin 14,864,055.73 9,710,906.78 VI. Balance of cash and cash equivalents at the period -end 16,089,801.18 11,557,919.84 Legal Representative: Yuan Xiaoping Person in charge of accounting works: Fu Zongren Person in charge of accounting institute: Fu Zongren II. Explanation on financial statement adjustment 1. Financial statement adjustment at the beginning of the first year when implementation of new financial instrument rules, new revenue rules and new leasing rules □Applicable √Not applicable 2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument rules and new leasing rules □Applicable √Not applicable III. Audit report Whether the 1st quarterly report has been audited or not □Yes √ No The 1st quarterly report of the Company was unaudited. HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD. Chairman: Yuan Xiaoping 23 April 2019 24