海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Hainan Dadonghai Tourism Centre (Holdings) Co.,
Ltd.
Financial Report
Semi-Annual 2020
1
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Financial Report
(1 January 2020 to 30 June 2020)
Content Page
I Financial statement
Consolidated balance sheet 4-6
Balance sheet of parent company 7-9
Consolidated Profit Statement 9-11
Profit statement of parent Company 11-13
Consolidated Cash Flow Statement 13-15
Cash Flow Statement of Parent Company 15-16
Statement of Changes in Owners’ Equity 16-20
(Consolidated)
Statement of Changes in Owners’ Equity 20-23
(Parent Company)
II Notes to Financial Statement 24-78
2
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
I. Financial Statement
Expressed in Renminbi unless otherwise stated
1. Balance sheet
Prepared by HAINAN DADONGHAI Tourism Centre (HOLDINGS) CO., LTD.
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 17,832,633.21 7,422,939.89
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable
Account receivable 95,154.01 311,083.92
Receivable financing
Accounts paid in advance
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 385,492.93 571,744.52
Buying back the sale of financial assets
Inventories 257,461.01 254,257.19
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 2,951,509.69 2,574,442.57
Total current assets 21,522,250.85 11,134,468.09
Non-current assets:
Loans and payments on behalf
Debt investment
3
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity instrument
Other non-current financial assets
Investment real estate 7,667,644.09 7,909,956.87
Fixed assets 33,463,950.05 35,075,195.98
Construction in progress 4,074,092.55 488,522.10
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 20,991,719.30 21,392,861.88
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 10,797,114.62 11,520,179.33
Deferred income tax asset
Other non-current asset
Total non-current asset 76,994,520.61 76,386,716.16
Total assets 98,516,771.46 87,521,184.25
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 382,803.65 1,250,409.75
Accounts received in advance 791,258.55 786,715.42
Contractual liability
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
4
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Wage payable 1,835,302.47 2,552,996.37
Taxes payable 334,957.93 307,257.85
Other account payable 2,011,273.02 2,647,515.86
Commission charge and commission payable
Liability held for sale
Non-current liabilities due within one year 3,358,196.37
Other current liabilities
Total current liabilities 8,713,791.99 7,544,895.25
Non-current liabilities:
Insurance contract reserve
Long-term loans 16,458,140.89
Bonds payable
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 1,489,685.04 1,489,685.04
Other non-current liabilities
Total non-current liabilities 17,947,825.93 1,489,685.04
Total liabilities 26,661,617.92 9,034,580.29
Owner’s equity:
Share capital 364,100,000.00 364,100,000.00
Other equity instrument
Capital public reserve 54,142,850.01 54,142,850.01
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve
Provision of general risk
Retained profit -346,387,696.47 -339,756,246.05
Total owner’ s equity attributable to parent company 71,855,153.54 78,486,603.96
Minority interests
Total owner’ s equity 71,855,153.54 78,486,603.96
Total liabilities and owner’ s equity 98,516,771.46 87,521,184.25
5
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Legal Representative: Yuan Xiaoping
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren
2. Balance sheet of parent company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 17,831,539.29 7,421,452.59
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 95,154.01 311,083.92
Receivable financing
Accounts paid in advance
Other account receivable 385,492.93 571,744.52
Inventories 257,461.01 254,257.19
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 2,951,509.69 2,574,442.57
Total current assets 21,521,156.93 11,132,980.79
Non-current assets:
Debt investment
Other debt investment
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 7,667,644.09 7,909,956.87
Fixed assets 33,463,950.05 35,075,195.98
Construction in progress 4,074,092.55 488,522.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
6
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Intangible assets 20,991,719.30 21,392,861.88
Research and development costs
Goodwill
Long-term deferred expenses 10,797,114.62 11,520,179.33
Deferred income tax assets
Other non-current assets
Total non-current assets 77,994,520.61 77,386,716.16
Total assets 99,515,677.54 88,519,696.95
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 382,803.65 1,250,409.75
Accounts received in advance 791,258.55 786,715.42
Contractual liability
Wage payable 1,835,302.47 2,552,996.37
Taxes payable 334,957.93 307,210.05
Other accounts payable 2,011,273.02 2,647,515.86
Liability held for sale
Non-current liabilities due within one year 3,358,196.37
Other current liabilities 999,468.70 999,468.70
Total current liabilities 9,713,260.69 8,544,316.15
Non-current liabilities:
Long-term loans 16,458,140.89
Bonds payable
Lease liability
Long-term account payable
Long term employee compensation payable
Accrued liabilities 1,489,685.04 1,489,685.04
Deferred income
Deferred income tax liabilities
Other non-current liabilities
7
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Total non-current liabilities 17,947,825.93 1,489,685.04
Total liabilities 27,661,086.62 10,034,001.19
Owners’ equity:
Share capital 364,100,000.00 364,100,000.00
Other equity instrument
Capital public reserve 54,142,850.01 54,142,850.01
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve
Retained profit -346,388,259.09 -339,757,154.25
Total owner’s equity 71,854,590.92 78,485,695.76
Total liabilities and owner’s equity 99,515,677.54 88,519,696.95
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 4,981,872.00 14,241,961.04
Including: Operating income 4,981,872.00 14,241,961.04
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 11,529,626.87 13,646,017.49
Including: Operating cost 5,052,678.43 5,514,477.93
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 182,132.20 383,479.50
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Sales expense 2,095,194.24 2,809,991.94
Administrative expense 4,200,935.35 5,071,800.21
R&D expense
Financial expense -1,313.35 -133,732.09
Including: Interest expenses 76,128.55
Interest income 89,077.69 152,697.12
Add: other income 262,840.35
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated company and joint
venture
The termination of income recognition for financial assets
measured by amortized cost(Loss is listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”)
Loss of credit impairment (Loss is listed with “-”)
Losses of devaluation of asset (Loss is listed with “-”)
Income from assets disposal (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) -6,284,914.52 595,943.55
Add: Non-operating income 2,593.62 160,030.46
Less: Non-operating expense 349,129.52
IV. Total profit (Loss is listed with “-”) -6,631,450.42 755,974.01
Less: Income tax expense
V. Net profit (Net loss is listed with “-”) -6,631,450.42 755,974.01
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) -6,631,450.42 755,974.01
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company -6,631,450.42 755,974.01
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
9
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
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.Amount of financial assets re-classify to other comprehensive
income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income -6,631,450.42 755,974.01
Total comprehensive income attributable to owners of parent
-6,631,450.42 755,974.01
Company
Total comprehensive income attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0182 0.0021
(ii) Diluted earnings per share -0.0182 0.0021
Legal Representative: Yuan Xiaoping
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren
4. Profit statement of parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
10
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
I. Operating income 4,981,872.00 14,241,961.04
Less: Operating cost 5,052,678.43 5,514,477.93
Taxes and surcharge 182,132.20 383,479.50
Sales expenses 2,095,194.24 2,809,991.94
Administration expenses 4,200,735.35 5,071,800.21
R&D expenses
Financial expenses -1,458.93 -133,233.30
Including: interest expenses 76,128.55
Interest income 89,063.27 151,938.33
Add: other income 262,840.35
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated Company and joint
venture
The termination of income recognition for financial assets
measured by amortized cost (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”)
Loss of credit impairment (Loss is listed with “-”)
Losses of devaluation of asset (Loss is listed with “-”)
Income on disposal of assets (Loss is listed with “-”)
II. Operating profit (Loss is listed with “-”) -6,284,568.94 595,444.76
Add: Non-operating income 2,593.62 160,030.46
Less: Non-operating expense 349,129.52
III. Total Profit (Loss is listed with “-”) -6,631,104.84 755,475.22
Less: Income tax
IV. Net profit (Net loss is listed with “-”) -6,631,104.84 755,475.22
(i)continuous operating net profit (net loss listed with ‘-”) -6,631,104.84 755,475.22
(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
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
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.Amount of financial assets re-classify to other comprehensive
income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income -6,631,104.84 755,475.22
VII. Earnings per share:
(i) Basic earnings per share -0.0182 0.0021
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 5,200,787.10 14,988,120.25
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
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
12
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Net cash received by agents in sale and purchase of securities
Write-back of tax received 12,691.70
Other cash received concerning operating activities 501,830.36 1,105,441.88
Subtotal of cash inflow arising from operating activities 5,715,309.16 16,093,562.13
Cash paid for purchasing commodities and receiving labor service 2,862,000.80 4,468,726.47
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 capital lent
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 5,523,279.64 6,921,639.62
Taxes paid 311,265.46 1,139,283.59
Other cash paid concerning operating activities 1,807,954.18 2,294,495.80
Subtotal of cash outflow arising from operating activities 10,504,500.08 14,824,145.48
Net cash flows arising from operating activities -4,789,190.92 1,269,416.65
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
300.00 68,670.00
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 300.00 68,670.00
Cash paid for purchasing fixed, intangible and other long-term assets 4,541,624.47 591,546.00
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 4,541,624.47 591,546.00
Net cash flows arising from investing activities -4,541,324.47 -522,876.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
13
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Including: Cash received from absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 19,791,474.22
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 19,791,474.22
Cash paid for settling debts
Cash paid for dividend and profit distributing or interest paying 51,265.51
Including: Dividend and profit of minority shareholder paid by
subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 51,265.51
Net cash flows arising from financing activities 19,740,208.71
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents 10,409,693.32 746,540.65
Add: Balance of cash and cash equivalents at the period -begin 7,422,939.89 15,364,355.30
VI. Balance of cash and cash equivalents at the period -end 17,832,633.21 16,110,895.95
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 5,200,787.10 14,988,120.25
Write-back of tax received 12,691.70
Other cash received concerning operating activities 501,815.94 1,104,683.09
Subtotal of cash inflow arising from operating activities 5,715,294.74 16,092,803.34
Cash paid for purchasing commodities and receiving labor service 2,862,000.80 4,468,726.47
Cash paid to/for staff and workers 5,523,279.64 6,921,639.62
Taxes paid 311,217.66 1,139,283.59
Other cash paid concerning operating activities 1,807,594.18 2,294,235.80
Subtotal of cash outflow arising from operating activities 10,504,092.28 14,823,885.48
Net cash flows arising from operating activities -4,788,797.54 1,268,917.86
II. Cash flows arising from investing activities:
Cash received from recovering investment
14
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Cash received from investment income
Net cash received from disposal of fixed, intangible and other long-term
300.00 68,670.00
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 300.00 68,670.00
Cash paid for purchasing fixed, intangible and other long-term assets 4,541,624.47 591,546.00
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 4,541,624.47 591,546.00
Net cash flows arising from investing activities -4,541,324.47 -522,876.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 19,791,474.22
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 19,791,474.22
Cash paid for settling debts
Cash paid for dividend and profit distributing or interest paying 51,265.51
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 51,265.51
Net cash flows arising from financing activities 19,740,208.71
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents 10,410,086.70 746,041.86
Add: Balance of cash and cash equivalents at the period -begin 7,421,452.59 14,864,055.73
VI. Balance of cash and cash equivalents at the period -end 17,831,539.29 15,610,097.59
Note: The government grants actually received by the company, whether related to assets or income, are listed in the item "Other
cash received concerning operating activities".
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
2020 semi-annual
Item Owners’ equity attributable to the parent Company
M Total owners’
Other Capital O
Share capital L O R S Pr Retained profit Subtotal in equity
equity reserve t
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
instrumen es t e u o h or
t s: h a r vi e it
In er s pl si r y
ve c o u o in
nt o n s n te
or m a re of re
Per y p b s g st
Pr pet sh re le er e s
ef ual ar h r v n
er ca es e e e er
Ot
re pit n s al
he
d al si e ri
r
st sec v r sk
oc uri e v
k tie i e
s n
c
o
m
e
I. Balance at the end of
364,100,000.00 54,142,850.01 -339,756,246.05 78,486,603.96 78,486,603.96
the last year
Add: Changes of
accounting policy
Error
correction of the last
period
Enterprise
combine under the
same control
Other
II. Balance at the
364,100,000.00 54,142,850.01 -339,756,246.05 78,486,603.96 78,486,603.96
beginning of this year
III. Increase/ Decrease
in this year (Decrease -6,631,450.42 -6,631,450.42 -6,631,450.42
is listed with “-”)
(i) Total
-6,631,450.42 -6,631,450.42 -6,631,450.42
comprehensive income
(ii) Owners’ devoted
and decreased capital
1.Common shares
invested by
shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity with
share-based payment
4. Other
16
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
(III) Profit distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk provisions
3. Distribution for
owners (or
shareholders)
4. Other
(IV) 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．Carry-over retained
earnings from the
defined benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end
364,100,000.00 54,142,850.01 -346,387,696.47 71,855,153.54 71,855,153.54
of the report period
Last Period
2019 semi-annual
Owners’ equity attributable to the parent Company M
Other L O R S P in
equity e th e ur r or
Item instrum s er a pl o it
ent O Total owners’
s: c s us v y
Share capital Capital reserve Retained profit th Subtotal equity
Pr P I o o re is in
O er
ef e n m n se i te
th
er r v pr a rv o re
er
re p e e b e n st
17
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
d e n h le o s
st t t e re f
o u o n s g
c a r si er e
k l y v v n
c s e e e
a h in r
p a c al
it r o ri
a e m s
l s e k
s
e
c
u
ri
ti
e
s
I. Balance at the end of the
364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29 77,788,696.29
last year
Add: Changes of
accounting policy
Error correction of
the last period
Enterprise
combine under the same
control
Other
II. Balance at the beginning
364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29 77,788,696.29
of this year
III. Increase/ Decrease in
this year (Decrease is listed 755,974.01 755,974.01 755,974.01
with “-”)
(i) Total comprehensive
755,974.01 755,974.01 755,974.01
income
(ii) Owners’ devoted and
decreased capital
1.Common shares invested
by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus
reserves
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
2. Withdrawal of general
risk provisions
3. Distribution for owners
(or shareholders)
4. Other
(IV) 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．Carry-over retained
earnings from the defined
benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the
364,100,000.00 54,142,850.01 -339,698,179.71 78,544,670.30 78,544,670.30
report period
Note: 1. The line item of "Other Comprehensive Income Carried Forward to Retained Earnings" mainly reflects: (1) When the
company's designated non-trading equity instrument investment measured at fair value and whose changes are included in other
comprehensive income is derecognized, the accumulated gains or losses previously included in other comprehensive income are
transferred from other comprehensive income to the amount of retained earnings; (2) When the company's designated financial
liabilities measured at fair value and whose changes are included in other comprehensive income are derecognized,the accumulated
gains or losses previously caused by changes in the enterprise’s own credit risk and included in other comprehensive income are
transferred from other comprehensive income to the amount of retained earnings. This item should be filled out based on the analysis
of the amount of the relevant detailed subjects of the "Other Comprehensive Income" subject.
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
2020 semi-annual
Item
Share capital Other Capital public L O R S Retained profit O Total owners’
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
equity reserve es th ea ur th equity
instrum s: er so pl er
ent In c n us
P v o a re
er e m bl se
p nt pr e rv
P et or e re e
re u y h se
fe al sh e rv
rr c ar n e
O
e a es si
th
d pi v
er
st ta e
o l in
c se c
k c o
ur m
iti e
es
I. Balance at the end of the last year 364,100,000.00 54,142,850.01 -339,757,154.25 78,485,695.76
Add: Changes of accounting policy
Error correction of the last
period
Other
II. Balance at the beginning of this year 364,100,000.00 54,142,850.01 -339,757,154.25 78,485,695.76
III. Increase/ Decrease in this year
-6,631,104.84 -6,631,104.84
(Decrease is listed with “-”)
(i) Total comprehensive income -6,631,104.84 -6,631,104.84
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners equity
with share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Distribution for owners (or
shareholders)
3. Other
(IV) Carrying forward internal owners’
equity
1. Capital reserves conversed to capital
(share capital)
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
2. Surplus reserves conversed to capital
(share capital)
3. Remedying loss with surplus reserve
4．Carry-over retained earnings from the
defined benefit plans
5．Carry-over retained earnings from
other comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the report
364,100,000.00 54,142,850.01 -346,388,259.09 71,854,590.92
period
Note: 1. The line item of "Other Comprehensive Income Carried Forward to Retained Earnings" mainly reflects: (1) When the
company's designated non-trading equity instrument investment measured at fair value and whose changes are included in other
comprehensive income is derecognized, the accumulated gains or losses previously included in other comprehensive income are
transferred from other comprehensive income to the amount of retained earnings; (2) When the company's designated financial
liabilities measured at fair value and whose changes are included in other comprehensive income are derecognized,the accumulated
gains or losses previously caused by changes in the enterprise’s own credit risk and included in other comprehensive income are
transferred from other comprehensive income to the amount of retained earnings. This item should be filled out based on the analysis
of the amount of the relevant detailed subjects of the "Other Comprehensive Income" subject.
Last Period
In RMB
2019 semi-annual
Other L O
equity e t
instrum s h
S
ent s: e
R u
P I r
e r
er n c
as p
p v o
P o l
et e m O
re n u
Item u n p t
fe Capital public a s Total owners’
Share capital al t r Retained profit h
rr reserve bl r equity
c O o e e
e e e
a th r h r
d re s
pi er y e
st se e
ta s n
o rv r
l h si
c e v
se a v
k e
c r e
ur e i
iti s n
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
es c
o
m
e
I. Balance at the end of the last year 364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29
Add: Changes of accounting policy
Error correction of the last
period
Other
II. Balance at the beginning of this year 364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29
III. Increase/ Decrease in this year
755,475.22 755,475.22
(Decrease is listed with “-”)
(i) Total comprehensive income 755,475.22 755,475.22
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners equity
with share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Distribution for owners (or
shareholders)
3. Other
(IV) 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．Carry-over retained earnings from the
defined benefit plans
5．Carry-over retained earnings from
other comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(VI)Others
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
IV. Balance at the end of the report
364,100,000.00 54,142,850.01 -339,698,678.50 78,544,171.51
period
3. Company basic information
3.1. Company Profile
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as “the Company”), was founded
as a standardized LLC on April 26, 1993, reorganized and incorporated on the basis of the former Hainan Sanya
Dadonghai Tourism Centre Development Ltd. and approved by the Hainan Provincial Stock System
Experimentation Leading Team Office with a document of Qiong Gu Ban Zi [1993] No. 11. On May 6, 1996, the
Company underwent a restructuring and a corresponding division under the approval of the Hainan Provincial
Securities Administration Office with a document of Qiong Zheng Ban [1996] No. 58. On October 8, 1996 and
January 28, 1997, the Company, with duly approval, went public by issuing 80 million shares of B stock and 14
million shares of A stock respectively on Shenzhen Security Exchange. On June 20, 2007, the Company
experienced a reform of non-tradable shares, through which non-tradable share holders of the Company got
circulating right of their shares by paying shares to tradable share holders, and tradable share holders got paid
three shares for every ten of their shares. The Company operates business in the industry of tourism and catering
services.
As at 30 June 2020, the Company's accumulative total issued capital was 364.1 million shares and the Company's
registered capital was RMB 364.1 million. Legal representative: Yuan Xiaoping. Unified social credit code:
91460000201357188U. Domicile: Dadonghai, Hedong District, Sanya. Business scope: Accommodation and
catering industry (limited to branches); photography; flower bonsai, knitwear, general merchandise, hardware,
chemical products (except franchised operations), daily necessities, industrial means of production (except
franchised operations), metal materials, machinery equipment; sales of train, bus, vehicle tickets on an agent basis
etc. The Company's largest shareholder is Luoniushan Co., Ltd.
3.2. Scope to the consolidated financial statements
As at 30 June 2020, the subsidiary included into the Company's scope of consolidated financial statements is as
follows:
Subsidiary Name
Hainan Wengao Tourist Resources Development Co., Ltd( hereinafter referred to as Wengao Tourism)
Scope of consolidated financial statements have no changes in the Period.
The financial statements were approved by all directors of the Company for disclosure on August 20, 2020.
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
4. Basis for the preparation of the financial statements
4.1. Preparation basis
Based on going concern and according to actually occurred transactions and events, the Company prepared
financial statements in accordance with the Accounting Standards for Business Enterprises — Basic Standards and
the specific accounting standards, the Accounting Standards for Business Enterprises - Application Guidance, the
Accounting Standards for Business Enterprises - Interpretation and other relevant provisions, issued by the
Ministry of Finance, (hereinafter referred to collectively as the "Accounting Standards for Business Enterprises"),
as well as the disclosure provisions of the Rules for the Compilation and Submission of Information Disclosure by
Companies Offering Securities to the Public No.15 - General Requirements for Financial Reports.
4.2. Going concern
The Company currently has sufficient working capital and normal operating conditions. It is estimated that the
operating activities of the Company will still continue in the next 12 months.
5. Significant accounting policies and accounting estimates
Specific accounting policies and estimates:
According to relevant regulations of Accounting Standards for Business Enterprises and accounting mechanism,
combined with the actual operating characteristics to formulated the corresponding accounting policies and
estimates.
5.1. Statement on compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet requirements of the Accounting Standards for Business
Enterprises, and truly and completely reflect the consolidated and the Company’s financial position as of June 30,
2020 as well as operation results and cash flows for the first half year of 2020.
5.2. Accounting period
The accounting year is from January 1 to December 31 in calendar year.
5.3. Operating cycle
The Company's operating cycle is 12 months.
5.4. Functional currency
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
RMB is adopted as the functional currency.
5.5 Accounting treatment methods for business combinations under and not under common control
Business combination under common control: The assets and liabilities acquired by the Company in business
combinations are measured at book values of assets and liabilities of the combinee (including the goodwill arising
from the acquisition of the combinee by the ultimate controller) in the consolidated financial statements of the
ultimate controller on the combination date. The stock premium in the capital reserves is adjusted according to the
difference between the book value of the net assets acquired in business combination and the book value of the
consideration paid for the combination (or total par value of shares issued). If there is no sufficient stock premium
in the capital reserves for write-downs, the retained earnings shall be adjusted.
Business combination not under common control: The Company shall, on the acquisition date, measure the assets
surrendered and liabilities incurred or assumed by the Company for a business combination at their fair values.
The difference between the fair value and their book value shall be included in the current profit or loss. The
Company shall recognize the difference of the combination costs in excess of the fair value of the identifiable net
assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combination
costs in short of the fair value of the identifiable net assets acquired from the acquiree in the current profit or loss
after review.
The expenses directly related to the enterprise merger (including auditing charge, legal services and intermediate
fee as appraisal consultant and other expenses) shall be recorded into the current profit and loss when incurred.
The transaction cost of issuing equity securities or debt securities for the purpose of business merger, equity shall
be written-off.
5.6. Preparation methods of consolidated financial statements
1) Scope of consolidation
The scope of consolidated financial statements of the Company is determined on the basis of control, all
subsidiaries (includes the divisible part of the investee that controlled by the Company) are included in
consolidate financial statement.
2) Procedures of consolidation
The Company prepares the consolidated financial statements based on financial statements of itself and its
subsidiaries and according to other relevant information. Upon preparation of consolidated financial statements,
the Company shall deem the whole group as a whole accounting entity, and reflects the overall financial position,
operating results and cash flows of the group in accordance with relevant requirements for recognition,
measurement and presentation as stated in the Accounting Standards for Business Enterprises as well as uniform
accounting policies.
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the same
accounting policies and accounting periods as those of the Company. If the accounting policies or accounting
periods of a subsidiary are different from those of the Company, the consolidated financial statements of the
subsidiary, upon preparation of consolidated financial statements, shall be adjusted according to the accounting
policies and accounting periods of the Company. For the subsidiaries acquired through business combination not
under the same control, adjustments to their financial statements shall be made based on the fair values of net
identifiable assets on the acquisition date. For a subsidiary acquired through business combination under common
control, adjustment to its financial statements shall be made based on the book values of its assets and liabilities
(including goodwill formed in the acquisition of the subsidiary by its ultimate controller) as presented in the
financial statements of the ultimate controller.
The share of owners' equity, current net profits and losses, and current comprehensive income of subsidiaries
attributable to minority owners shall be respectively and separately listed under the owner's equity item of a
consolidated balance sheet, the net profit item of a consolidated income statement, and the total comprehensive
income in a consolidated income statement. Where the current losses shared by a minority shareholder of a
subsidiary exceeds the balances arising from the shares enjoyed by the minority shareholder in the owners' equity
of the subsidiary at the beginning of the period, minority equity shall be written down accordingly.
(1) Increase of subsidiaries or business
During the reporting period, if the Company acquired subsidiaries or business from the business combination
under common control, the beginning balance in the consolidated statement of financial position shall be adjusted;
the revenue, expenses and profits of the newly acquired subsidiaries or business from the beginning to the end of
the reporting period shall be included into the consolidated income statement; the cash flows of the newly
acquired subsidiaries or business from the beginning to the end of the reporting period shall be included in the
consolidated statement of cash flow. Relevant items in the comparative financial statements of the subsidiaries
shall be adjusted accordingly, as if the reporting entity after the business combination exists at the time when the
ultimate controller has the control power.
Where control can be exercised on the investee under the common control for additional investment or other
reasons, adjustment will be made as if all parties involved in the combination exist at the beginning of the control
by the ultimate controller. Equity investments held before the control over the combined party is obtained, the
related gains and losses, other comprehensive income as well as other changes in net assets recognized from the
later of the date when the original equity is obtained or the date when the acquirer and the acquiree are under the
same control, to the combination date will respectively write down the retained earnings or current profit or loss in
the comparative statements.
During the reporting period, if the Company increased subsidiaries or business from business combinations not
under common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the revenue,
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
expenses and profits of the subsidiaries or business from the acquisition date to the end of the reporting period
shall be included in the consolidated income statement; cash flows of the subsidiaries and business from the
acquisition date to the end of the reporting period shall be included in the consolidated statement of cash flows.
Where the Company can control the investee not under common control from additional investments, it shall
re-measure equity of the acquiree held before the acquisition date at the fair value of such equity on the
acquisition date and include the difference of the fair value and book value in the investment income in the year.
Where equity of the acquiree held before the acquisition date involves in other comprehensive income accounted
for under equity method and other changes in owners' equity other than net profits or losses, other comprehensive
income and profit distribution, the relevant other comprehensive income and other changes in owners' equity shall
be transferred to investment income in the year which the acquisition date falls in, except for other comprehensive
income from changes arising from re-measurement of net liabilities or net assets of defined benefit plan by the
investee.
(2) Disposal of subsidiaries or business
General method of treatment
During the reporting period, where the Company disposes of any subsidiary or business, the revenues, expenses
and profits of the subsidiary or business from the beginning period to the disposal date shall be included in the
consolidated income statement; cash flows of the subsidiary or business from the beginning period to the disposal
date shall be included in the consolidated statement of cash flows.
When the Company loses the control over the investee due to disposal of partial equity investment or other
reasons, the remaining equity investment after the disposal will be re-measured by the Company at its fair value
on the date of loss of the control. The difference of the sum of the consideration acquired from disposal of equities
and the fair value of the remaining equities less the sum of the share calculated at the original shareholding ratio in
net assets of the original subsidiary which are continuously calculated as of the acquisition date or the
combination date and goodwill shall be included in the investment income of the period in which the control is
lost. Other comprehensive incomes associated with the equity investments of the original subsidiary, or the
changes in owners' equity other than net profit or loss, other comprehensive income and profit distribution, are
transferred into investment income of the period when the control is lost, except for other comprehensive income
from the change in net liability or net asset due to the investor's re-measurement of defined benefit plan.
Where the Company loses the control of any subsidiary due to the decline in its shareholding ratio in the
subsidiary, caused by the increase of investment in the subsidiary by other investors, the accounting treatment
shall be conducted according to the above principles.
②Disposal of subsidiaries by stages
If the control is lost due to disposal of the equities in subsidiaries through multiple transactions by stages, and the
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
terms, conditions and economic impact of the transactions related to the enterprise's disposal of its investment in
the subsidiaries meet one or more of the following circumstances, it usually indicates that multiple transactions
should be included in a package deal and subject to accounting processing as below:
i. These transactions are concluded at the same time or under the consideration of mutual effect;
ii. These transactions as a whole can reach a complete business result;
iii. The occurrence of a transaction depends on the occurrence of at least one other transaction;
iv. A single transaction is uneconomical but is economical when considered together with other transactions.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong to a
package deal, accounting treatment shall be made by the Company on the transactions as a transaction to dispose
subsidiaries and lose the control; however, the difference between each disposal cost and net asset share in the
subsidiaries corresponding to each disposal of investments before loss of the control should be recognized as other
comprehensive income in the consolidated financial statements and should be transferred into the current profit or
loss at the loss of the control.
Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belong
to a package deal, before the loss of the control, accounting treatment shall be made according to the relevant
policies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control,
accounting treatment shall be made according to general treatment methods for disposal of subsidiaries.
(3) Purchase of minority interest of subsidiaries
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the difference
between the long-term equity investment acquired by the Company for the purchase of minority interest and the
share of net assets calculated constantly from the acquisition date (or combination date) according to the newly
increased shareholding ratio. Where the share premium is insufficient to offset, retained earnings will be adjusted.
(4) Partial disposal of equity investments in subsidiaries without losing control
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the difference
between the proceeds achieved from the partial disposal of long-term equity investments in subsidiaries and the
share of net assets of subsidiaries attributable to the Company corresponding to the disposal of long-term equity
investments and calculated constantly from the acquisition date or combination date, without losing the control.
Where the share premium is insufficient to write down, the retained earnings will be adjusted.
5.7 Classification and accounting treatment of joint venture arrangements
Joint venture arrangements are classified into joint operation and joint venture.
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Joint operation refers the joint venture arrangement where the Company is a joint venture and enjoys assets
relevant the joint venture arrangement and assumes liabilities relevant to the same.
The Company recognizes the following items related to its share of benefits in the joint operation and conduct
accounting treatment in accordance with relevant accounting standards for business enterprises:
(1) Assets peculiar to the Company and assets jointly owned by the Company based on shares held;
(2) Liabilities undertaken by the Company solely and liabilities jointly undertaken by the Company based on
shares held;
(3) Revenue from the sales of output share enjoyed by the Company in the joint operation;
(4) Revenue from the sales of the joint operation output based on the shares held by the Company; and
(5) Separate costs, and costs for the joint operation based on the shares held by the Company.
5.8. Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the
unrestricted deposit of the Company. The term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
subject to an insignificant risk of change in value.
5.9 Foreign currency business and statement translation
Foreign currency transactions are translated into RMB for recording purpose at the spot exchange rate prevailing
on the transaction date.
The balance of foreign currency monetary items are translated at the spot exchange rate on the balance sheet date
and the exchange differences arising therefrom shall be included in the current profit and loss, except those
exchange differences arising from the special borrowings of foreign currency related to the acquired and
constructed assets qualified for capitalization that will be capitalized at the borrowing expenses. Foreign currency
non-monetary items measured at historical costs shall still be converted at the spot exchange rates when the
transactions occur, without changing the functional currency amount. Foreign currency non-monetary items
measured at fair value shall be translated at the spot exchange rates on the day when the fair value is determined.
The exchange difference arising therefrom is included in the current profit and loss or capital reserves.
5.10. Financial instruments
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Financial instruments include financial assets, financial liabilities and equity instruments.
1) Classification of financial instruments
Upon initial recognition, financial assets and financial liabilities are classified into: financial assets or financial
liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities
held for trading and financial assets or financial liabilities directly designated to be measured at fair value through
current profit and loss; held-to-maturity investments; receivables; available-for-sale financial assets; and other
financial liabilities, etc.
2) Recognition basis and measurement method of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet
received) and the related transaction costs are included in current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
The difference between the fair value and the initial book-entry value is recognized as investment income upon
disposal; meanwhile, adjustments are made to profits or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but not
yet received) and related transaction costs upon acquisition.
The interest income is calculated and recognized according to amortized costs and effective interest rates (as per
coupon rates if the difference between effective interest rates and coupon rates is small) during the holding period,
and is included in the investment income. The effective interest rates are determined upon acquisition and remain
unchanged during the expected remaining period, or a shorter period if applicable.
Upon disposal, the difference between the purchase price obtained and the book value of the investment is
recognized in investment income.
(3) Receivables
For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and
other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the
Company, including accounts receivable, other receivables, notes receivable, prepayment and others, the initial
30
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
recognition amount shall be the contract price or agreement price receivable from purchasing party; for those with
financing nature, they are initially recognized at their present values.
Upon recovery or disposal, the difference between the purchase price obtained and the book value of the
receivables is recognized in current profit and loss.
(4) Available-for-sale financial assets
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paid
or bond interest due but not yet received).
The interests or cash dividends to be received during the holding period are recognized as investment income. The
interest or cash dividends should be measured at fair value and their changes in fair value should be included in
other comprehensive income. However, for an equity instrument investment that has no quoted price in an active
market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the said
equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at cost.
Difference between the proceeds and the book value of the financial assets is recognized as investment profit or
loss upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which
is originally and directly included in other comprehensive income shall be transferred out and recognized as
investment gains or losses.
(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses, and
subsequently measured at amortized costs. Subsequent measurement is conducted at the amortized cost.
3) Recognition basis and measurement method of the transfer of financial assets
When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks
and rewards on the ownership of the financial assets have been transferred to the transferee; and they will not be
derecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained.
When determining whether the transfer of a financial asset meets the above de-recognition criteria of financial
assets, the Company adopts the principle of substance over form. The Company classifies the transfer of a
financial asset into the entire transfer and the partial transfer of financial asset. Where the entire transfer of the
financial asset meets the de-recognition conditions, the difference of the following two amounts will be included
in current profit and loss:
(1) The book value of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair
31
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
value originally and directly included in owners’ equity (the situation where the financial asset transferred is an
available-for-sale financial asset is involved in).
If the partial transfer of financial asset satisfies the criteria for de-recognition, the entire book value of the
transferred financial asset shall be split into the derecognized and recognized part according to their respective fair
value and the difference between the amounts of the following two items shall be included in the current profit
and loss:
(1) The book value of the derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of de-recognition corresponding to the
accumulated amount of the changes in fair value originally and directly included in owners’ equity (the situation
where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of financial assets does not meet the de-recognition criteria, the financial assets shall continue to be
recognized, and the consideration received will be recognized as a financial liability
4) De-recognition criteria of financial liabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof shall be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial
liabilities are substantially different from the existing ones in terms of contract terms, the existing financial
liabilities shall be derecognized, and at the same time, the new financial liability shall be recognized.
Where substantive changes are made to the contract terms of existing financial liability in whole or in part, the
existing financial liabilities or part thereof will be derecognized, and the financial liability the terms of which have
been modified will be recognized as a new financial liability.
Where financial liabilities are derecognized in whole or in part, the difference between the book value of the
financial liabilities derecognized and the consideration paid (including non-cash assets transferred out or new
financial liabilities borne) shall be included in the current profit or loss.
Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate the entire
book value of whole financial liabilities according to the comparative fair value of the part that continues to be
recognized and the de-recognized part. The difference between the book value allocated to the derecognized part
and the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shall
be included in the current profit or loss.
5) Determination method of the fair value of financial assets and financial liabilities
The fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. The
fair value of a financial instrument, for which there is no active market, is determined by using valuation
techniques. At the time of valuation, the Company adopts the techniques that are applicable in the current situation
and supported by enough available data and other information, selects the input values that are consistent with the
32
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
features of assets or liabilities as considered by market participants in relevant asset or liability transactions, and
gives priority to use relevant observable inputs. Unobservable inputs are used only under the circumstance when it
is impossible or unobservable inputs to obtain relevant observable inputs.
6) Test method and accounting treatment for impairment of financial assets
Accounting policies applicable as of 1 January 2019
The Company estimates, individually or in combination, the expected credit losses of financial assets measured at
amortized cost and financial assets (debt instruments) measured at fair value whose changes are included in other
comprehensive income, taking into account all reasonable and evidence-based information, including
forward-looking information. The measurement of expected credit losses depend on whether the credit risk of
financial assets has increased significantly since the initial recognition.
If the credit risk of the financial instruments has increased significantly since the initial recognition, the Company
shall measure the loss provision at the amount equivalent to the expected credit loss of the financial instrument for
the entire life of the instrument. If the credit risk of the financial instruments has not increased significantly since
the initial recognition, the Company shall measure the loss provision at the amount equivalent to the expected
credit loss of the financial instrument in the next 12 months. The increase or rollover amount of the loss provision
resulting therefrom shall be recorded in the current profit and loss as an impairment loss or gain.
The credit risk of the instrument is generally deemed to have increased significantly if the default is more than 30
days, unless there is conclusive evidence that the credit risk of the instrument has not increased significantly since
the initial confirmation.
If the credit risk of the financial instrument is low on the balance sheet date, the Company considers that the credit
risk of the financial instrument has not increased significantly since the initial recognition.
If there is objective evidence that the credit impairment of a financial asset has occurred, the Company shall make
provision for the impairment of the financial asset on a single basis.
5.11. Note receivable
Consistent with the accounting policy of account receivable
5.12.Account receivable
For account receivables, whether or not they contain significant financing elements, the Company measures the
loss provisions according to the expected credit loss for the whole duration. For account receivables having
objective evidence that there is an impairment and applicable to a single assessment, shall be subjected to an
impairment test, to confirm the expected credit loss, and make a single impairment provision. For account
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receivables without objective evidence of impairment, or when a single financial asset cannot be evaluated the
credit loss at a reasonable cost, the Company divides account receivables into several portfolios according to the
credit risk characteristics, to calculate the expected credit loss on the basis of the portfolios. The basis for
determining the portfolios is as follows:
Portfolio Name Basis
Account Receivables Portfolio 1 External Customers for Account Receivables
Account Receivables Portfolio 2 Consolidated Related Party Customers for Account Receivables
For the account receivables divided into portfolios, the Company refers to the history of credit loss experience,
combined with the current situation and the forecast of the future economic situation, to prepare tables of aging of
account receivables and comparison tables of expected credit loss rate of the entire duration, and to calculate the
expected credit loss
For lease receivables, long-term receivables formed by the Company through the sale of goods or the provision of
services, the Company chooses to always measure its loss provisions at an amount equal to the expected credit
loss for the entire duration.
For other receivables, if the credit risk has not significantly increased since the initial recognition, it is in the first
stage. The Company shall measure the loss provision according to the expected credit loss in the next 12 months.
If the credit risk has increased significantly since the initial recognition, but the credit impairment has not
occurred, it is in the second stage. If the credit impairment has occurred since the initial recognition, it is in the
third stage. The Company shall measure the loss provision according to the expected credit loss of the instrument
throughout its life.
5.13. Receivable financing
Consistent with the Accounting Standards for Business Enterprise
5.14. Other receivable
Methods of determining for expected credit losses of other receivable and accounting treatment
Methods of determining for expected credit losses of other receivable and accounting treatment
The Company divides other receivables into several portfolios based on the credit risk characteristics. The basis
for determining the portfolio is as follows:
Portfolio Name Basis
Other Receivables Portfolio 1 Deposit, Security Deposit and Reserve Receivables
Other Receivables Portfolio 2 Receivables of Advance Payment for Another Party
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Other Receivables Portfolio 3 Other advances receivable
For other receivables divided into portfolios, the Company refers to historical experience in credit loss, combined
with the current situation and forecast future economic situation, and by default risk exposure and the credit loss
rate within next 12 months or the whole duration, to calculate the expected credit losses.
5.15 Inventory
1.Classification of inventories
The inventories are classified into: raw materials, commodity stocks, low-value consumables, food materials,
fuels, etc.
2. Measurement of inventories dispatched
The commodity stocks are accounted for based on their selling prices, and the difference between the commodity
purchasing price and the selling price is adjusted monthly by the comprehensive spread rate method. The
inventory materials are measured at actual cost when purchased and warehoused, and measured using the first-in
first-out method when applied for use and dispatched. Low-value consumables are amortized on a one-off basis
when applied for use.
3. Determining basis of the net realizable value of inventories and method for inventory depreciation reserve
After the comprehensive check of the inventories at the end of the period, the inventory depreciation reserves are
provided or adjusted at their costs or net realizable values, whichever are lower.
For inventories for direct sale, including commodity stocks and materials for sale, their net realizable values shall
be recognized at the estimated selling prices minus the estimated selling expenses and the relevant taxes and
surcharges in the normal operation process. For inventories held to execute sales contract or service contract, their
net realizable values are calculated on the basis of contract price. If the quantities held by the Company are more
than the quantities ordered in sales contracts, the net realizable value of the excess portion of inventories shall be
based on general selling prices.
The provisions for inventory depreciation reserve are made on an individual basis at the end of the period; for
inventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserve
are made on a category basis. For inventories related to the product portfolios manufactured and sold in the same
area, and of which the final usage or purpose is identical or similar thereto, and which is difficult to separate from
other items for measurement purposes, the provisions for inventory depreciation reserve are made on a portfolio
basis.
Where the previous factors affecting the written-down of the value of inventory have disappeared, the amount of
write-down shall be resumed and be reversed from the original provision for inventory devaluation with the
reversal being included in current profit and loss.
4. Inventory system
Perpetual inventory system is adopted.
5. Amortization method for low-cost consumables and packaging materials
(1) Low-cost consumables are amortized in a lump sum;
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(2) Packaging materials are amortized in a lump sum.
5.16 Contractual assets
Consistent with the Accounting Standards for Business Enterprises
5.17 Contractual costs
Consistent with the Accounting Standards for Business Enterprises
5.18 Assets holding for Sale
The Company classifies non-current assets or disposal groups that meet the following conditions as holding for
sale:
(1) Subject to the practice of selling such assets or disposal groups in similar transactions, the sale can be effected
immediately under the current circumstances;
(2) A sale is highly likely to occur, that is, the Company has made a decision on a sale plan and obtained a firm
purchase commitment, and the sale is expected to be completed within one year. Where the relevant provisions
require the approval of the relevant authority or regulatory authority of the company before the sale, the approval
has been obtained.
5.19 Investment in debt obligations
Consistent with the Accounting Standards for Business Enterprises
5.20 Other investment in debt obligations
Consistent with the Accounting Standards for Business Enterprises
5.21 Long-term account receivable
Consistent with the Accounting Standards for Business Enterprises
5.22 Long-term equity investment
Judgment criteria for joint control and significant influence
Joint control refers to the control shared over an arrangement in accordance with the relevant stipulations, and the
decision-making of related activities of the arrangement should not be made before the party sharing the control
right agrees the same. Where the Company exercises joint control over the investee together with other parties to
the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of the Company.
Significant influence refers to the power to participate in making decisions on the financial and operating policies
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of an enterprise, such as appointing representative to the board of directors or similar organs of authority of the
investee, but not the power to control the investee, or jointly control, the formulation of such policies with other
parties. Where an investing enterprise is able to have significant influences on an investee, the investee is its
associate.
Determination of initial investment cost
(1) Long-term equity investments acquired through business combination
Business combination under common control: if the Company pays a consideration to the combinee in cash, by
transferring non-cash assets or by assuming debts and issuing equity securities, the share of book value of its
owners' equity in the combinee in the consolidated financial statements of the ultimate controller shall be
recognized, on the combination date, as the initial cost of the long-term equity investment. If the invested entity
under the same control can be controlled due to additional investment and other reasons, the initial investment
cost of long-term equity investment shall be determined according to the share of the net assets of the merged
party in the carrying value of the consolidated financial statements of the ultimate controlling party after the
merger. The difference between the initial investment cost of the long-term equity investment on the date of the
merger and the sum of the book value of the long-term equity investment before the merger together with the book
value of the further acquisition of the newly paid consideration of the shares on the date of the merger shall be
adjusted for the equity premium.
For long-term equity investments acquired from business combinations under common control, the investment
initial cost thereof shall be recognized at the share of book value of the combinee's net assets in the consolidated
financial statements of the ultimate controller on the combination date. The stock premium should be adjusted at
the difference between the initial investment cost of long-term equity investments on the combination date and the
sum of the book value of long-term equity investments before the combination and the book value of
consideration newly paid for additional shares; if there is no sufficient stock premium to be written down, the
retained earnings are adjusted.
Business combination not under common control: the Company recognizes the combination cost determined on
the combination date as the initial cost of long-term equity investments. Where the Company can control the
investee not under common control from additional investments, the initial investment cost should be changed to
be accounted for under the cost method and recognized at the sum of the book value of equity investments
originally held and newly increased investment cost.
(2) Long-term equity investments acquired by other means
For long-term equity investments acquired from cash payment, the initial investment cost is the actually paid
purchasing cost.
For the long-term equity investments acquired through issuing the equity securities, the fair value of equity
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securities issued shall be recognized as the initial investment cost.
On the premise that non-monetary asset trade is of commercial nature and the fair value of the asset traded in or
out can be measured reliably, the initial cost of a long-term equity investment traded in with non-monetary asset
should be determined according to the fair value of the asset traded out and relevant taxes and surcharges payable,
unless any unambiguous evidence indicates that the fair value of the asset traded in is more reliable; as to the
non-monetary asset trade not meeting the aforesaid premise, the book value of the asset traded out and relevant
taxes and surcharges payable should be recognized as the initial cost of the long-term equity investment.
For the long-term equity investment obtained through debt restructuring, its recorded value shall be determined by
the fair value of the abandoned creditor's rights and the taxes directly attributable to the assets and other costs, and
the difference between the fair value and book value of the abandoned creditor's rights shall be recorded into the
current profit and loss.
Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under cost method
Long-term equity investments of the Company in its subsidiaries are accounted for by the cost method. Except for
the actual price paid for acquisition of investment or the cash dividends or profits contained in the consideration
which have been declared but not yet distributed, the Company recognizes the current investment income based
on the cash dividends or profits enjoyed by the Company and declared to be distributed by the investee.
(2) Long-term equity investments accounted for under the equity method
The Company's long-term equity investments in its associates and joint ventures are calculated under the equity
method. If the cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets
in the investee when the investment is made, the difference will not be adjusted to the initial cost of long-term
equity investment; if the cost of initial investment is in short of the proportion of the fair value of the net
identifiable assets in the investee when the investment is made, the difference will be included in the current profit
and loss.
The Company shall, in accordance with its attributable share of the net profit or loss and other comprehensive
income realized by the investee, respectively recognize the investment income and other comprehensive income
and simultaneously adjust the book value of the long-term equity investment. The Company shall, in the light of
the profits or cash dividends that the investee declares to distribute, reduce the book value of the long-term equity
investment correspondingly. As to any change in owners' equity of the investee other than net profit or loss, other
comprehensive income and profit distribution, the Company shall adjust the book value of the long-term equity
investment and include such change into the owners' equity.
When recognizing the attributable share of net profit or loss of the investee, the Company shall, based on the fair
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value of identifiable net asset of the investee when it obtains the investment, recognize its attributable share of the
net profit or loss of the investee after the adjustment according to the Company's accounting policy and
accounting period. When holding the investment, the investee should prepare the consolidated financial statements,
it shall account for the investment income based on the net profit, other comprehensive income and the changes in
other owner's equity attributable to the investee.
The Company calculates its attributable profit or loss of internal transactions that are not realized arising among
itself, associates and joint ventures based on its attributable percentage and offset it, and determines the
investment income on that basis. Unrealized internal transaction loss incurred between the Company and the
investee shall be recognized in full amount if such loss belongs to the asset impairment. For the asset investment
or sale transactions with associated enterprises or joint ventures, according to the notes regarding to “3.5
Accounting treatment methods for business combinations under and not under common control” and “3.6
Preparation methods of consolidated financial statements” which should be carried out in accordance with the
relevant policies if the asset forms a part of the Company's business.
When the Company confirms that it should share losses of the investee, treatment shall be done in following
sequence: first, writing down the book value of long-term equity investments. Secondly, if the book value of the
long-term equity investments is insufficient to be offset, the Company shall continue to recognize the investment
loss to the extent of the book value of long-term interests which substantially form the net investment in the
investee and offset the book value of the long-term receivable items and other items. Finally, after all the above
treatments, if the Company is still responsible for any additional liability in accordance with the provisions
stipulated in the investment contracts or agreements, provisions are recognized and included into current
investment loss according to the obligations estimated to undertake. If the investee achieves profit in subsequent
periods, the Company shall, after deducting any unrecognized investment losses, reduce book value of estimated
liabilities recognized, restore book values of other long-term equity which form net investment in the investee in
substance, and of long-term equity investment according to the reversed sequence described above, and recognize
investment income at the same time.
(3) Disposal of long-term equity investments
For the disposal of long-term equity investments, the difference between the book value and the actual price
thereof shall be included in the current profit or loss.
Where a long-term equity investment is accounted for under the equity method, accounting treatment should be
made on the part which is originally included in other comprehensive income according to corresponding ratio by
using the same basis for the investee to directly dispose of the relevant assets or liabilities when the investments
are disposed of. Owner's equity recognized from changes in other owner's equity of the investee other than net
profit and loss, other comprehensive income and the profit distribution should be included in the current profit and
loss according to the proportion.
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In case the joint control or significant influence over the investee is lost for disposing part of equity investments or
other reasons, the remaining equity will be changed to be accounted for according to the recognition and
measurement principles of financial instruments, while the difference between the fair value and the book value
on the date of the loss of joint control or significant influence should be included in the current profit or loss. As to
other comprehensive income recognized based on measurement of the original equity investment under the equity
method, accounting treatment shall be made on the same basis as would be required if the investee had directly
disposed of the assets or liabilities related thereto when measurement under the equity method is terminated.
Owner's equity recognized from the investee's changes in other owner's equity other than net profit or loss, other
comprehensive income and profit distribution should all transferred to the current profit and loss when the equity
method is no longer adopted.
Where the Company loses the control over the investee due to disposal of partial equity investments or other
reasons, when it prepares separate financial statements, the remaining equity after disposal that can jointly control
or have significant influence on the investee will be measured at the equity method, and the remaining equity
should be deemed to have been adjusted at equity method on acquisition.
If the remaining equity after disposal cannot exercise joint control or significant influence over the investee, such
remaining equity shall be subject to the accounting treatment according to the recognition and measurement
standards of financial instruments, and the difference between its fair value and book value on the date when
control losses is included in current profit or loss.
Where the equity disposed of are acquired through business combination as a result of additional investment and
other reasons, if the remaining equities after disposal are calculated under the cost method or equity method upon
preparation of separate financial statements, other comprehensive income and other owners' equities recognized in
equity investments held before the acquisition date as a result of employment of equity method for accounting
shall be carried forward pro rata; if the remaining equities after disposal are calculated according to the provisions
on Recognition and Measurement of Financial Instruments, other comprehensive income and other owners'
equities will all be carried forward.
5.23 Investment properties
Measurement mode
Measured by cost method
Depreciation or amortization method
The investment properties refer to the properties held for earning rentals or/and capital appreciation, including
leased land use right, land use right held for transfer upon appreciation, and leased building (including self-built
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buildings or buildings developed for renting or buildings under construction or development for future renting).
The Company measures the existing investment properties by using the cost model. For investment property
measured by using the cost model, the buildings for lease shall be depreciated by using policies the same as used
for fixed assets of the Company, and the land use rights for lease shall be amortized by using the same policies as
applicable to intangible assets.
5.24 Fixed assets
(1) Recognition criteria
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or
business management with useful lives exceeding one year. Fixed assets are recognized when they simultaneously
meet the following conditions:(1) It is probable that the economic benefits relating to the fixed assets will flow
into the Company; and (2) The costs of the fixed assets can be measured reliably.
(2) Depreciation method of fixed assets
Asset type Depreciation method Year for depreciation Residual value rate Yearly depreciation rate
Buildings and
Straight-line method 20-40 5% 4.75%-2.37%
constructions
Machinery equipment Straight-line method 8-20 5% 11.87%-4.75%
Transportation
Straight-line method 5-16 5% 19%-5.93%
equipment
Electronic entertainment
Straight-line method 7-12 5% 13.57%-7.91%
equipment
Other equipment Straight-line method 8 5% 11.87
5.25 Construction in progress
The book-entry values of the fixed assets are stated at total expenditures incurred before reaching working
condition for their intended use. Where a construction in progress reaches the working condition for its intended
use but the final account for completion is not made yet, it shall be transferred into fixed assets from the date
when it reaches the working condition for intended use at the estimated value according to the project budget,
construction price or actual cost, and the depreciation of the said fixed assets shall be accrued according to the
Company's depreciation policies applicable to fixed assets. After the final account for completed project is done,
the Company adjusts the original estimated value of the fixed asset in accordance with the actual cost, but does
not adjust the provision for such depreciation that had been accrued.
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5.26 Borrowing costs
1. Recognition principles of capitalization of borrowing costs
Borrowing costs include interest thereon, amortization of discounts or premiums, ancillary expenses and exchange
differences incurred on account of foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; other
borrowing costs should be recognized as costs according to the amount incurred and be included into current
profit and loss.
Assets meeting the capitalization requirements refer to fixed assets, investment properties and inventories, etc.
that need to be purchased, constructed or produced for a long time to be available for intended use or sale.
Borrowing costs may be capitalized only when all the following conditions are met:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the
undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,
have already been incurred;
(2) Borrowing costs have already been incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the assets for their
intended use or sale have already been started.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of capitalization,
excluding the period of capitalization suspension of borrowing costs.
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale.
When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such assets should be ceased.
When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased.
3. Period of capitalization suspension
If the acquisition, construction or production activities of assets eligible for capitalization are abnormally
interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible for
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capitalization to reach the working conditions for their intended use or sale, the borrowing costs continue to be
capitalized. Borrowing costs incurred during the interruption are recognized as the current profit or loss and
continue to be capitalized until the acquisition, construction or production of the assets restarts.
4. Calculation method of capitalization amount of borrowing costs
As for special borrowings for acquiring, constructing or producing assets eligible for capitalization, borrowing
costs of special borrowings actually incurred in the current period less the interest income from undrawn
borrowings deposited in the bank or investment income from temporary investment should be recognized as the
capitalization amount of borrowing costs.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset
disbursements of the part of accumulated asset disbursements exceeding special borrowings at end of each month
by the capitalization rate of used general borrowings. The capitalization rate is calculated by weighted average
interest rate of general borrowings.
5.27 Intangible assets
1) The Company initially measures intangible assets at cost on acquisition:
The costs of externally purchased intangible assets include purchase prices, relevant taxes and surcharges and
other directly attributable expenditures incurred to prepare the assets for their intended uses. If the payment for an
intangible asset is delayed beyond the normal credit conditions and it is of the financing nature, the cost of the
intangible asset shall be determined on the basis of the present value of the purchase price.
The intangible assets acquired which the debtor uses to pay back the debt in debt restructuring should be
recognized at the fair value of the intangible assets. The difference between the book value of restructured debts
and the fair value of intangible assets used to pay back the debt should be included in the current profit or loss;
When the exchange of non-monetary assets is of commercial nature and the fair value of the assets received or
surrendered assets can be measured reliably, the measurement shall be based on the fair value. If the fair value of
the assets received or surrendered assets can be measured reliably, the fair value of the surrendered assets and
relevant taxes should be paid as the initial investment cost of the intangible assets received, unless there is
conclusive evidence that the fair value of the asset received is more reliable. If the exchange of non-monetary
assets does not have commercial substance, or the fair value of the assets received or surrendered assets cannot be
measured reliably, the book value of the surrendered assets and related taxes should be paid as the initial
investment cost of the intangible assets received.
2) Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on acquisition.
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Intangible assets with definite useful lives shall be amortized with the straight-line method within the period when
the intangible assets generate economic benefits for the Company; if the said period cannot be forecast, the
intangible assets shall be deemed as those with indefinite useful lives and shall not be amortized.
3) Estimate of the useful life of the intangible assets with definite useful lives
Item Estimated useful life Amortization method Basis
Straight-line amortization Useful life prescribed in the
Land use right 50 years
method Certificate of Land Use Right
5.28 Long-term assets impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress, intangible
assets, and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will
be conducted on the balance sheet date. If the result of the impairment test shows that the recoverable amount of
the asset is lower than its book value, the provision for impairment shall be made and included in impairment loss.
The recoverable amount is determined at the higher of the net of the fair value less disposal costs and the present
value of the expected future cash flows. Provision for assets impairment is made on individual asset basis. If it is
difficult to estimate the recoverable amount of the individual asset, the Group shall estimate the recoverable
amount of the asset group that the individual asset belongs to. The asset group is the minimum asset group that
can independently generate the cash inflow.
Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached the usable
state shall be tested for impairment at least at the end of each year.
The Company conducts the goodwill impairment test, and the carrying value of the goodwill formed by the
enterprise merger shall be allocated to the relevant asset group in a reasonable way from the purchase date. If it is
difficult to apportion to the relevant asset group, apportion to the relevant asset group portfolio. When the
Company allocates the book value of goodwill, it allocates the goodwill according to the relative benefits that the
relevant asset group or asset group portfolio can obtain from the synergetic effect of the enterprise merger, and
carries out the goodwill impairment test on this basis.
Goodwill in the relevant asset groups or combination of group assets impairment tests, such as the asset group or
combination of group assets related to goodwill there are signs of impairment, the first does not include the
goodwill of the asset group or combination of group assets impairment test, calculation of recoverable amount,
and compared with the related book value, confirm the corresponding impairment loss. Goodwill to the asset
group or combination of group assets for impairment test, compare the book value of the relevant asset groups or
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
combination of group assets (including the contribution of the book value of the goodwill) with its recoverable
amount, such as the relevant asset groups or combination of group assets recoverable amount is lower than its
book value, confirm the goodwill impairment loss. The above asset impairment loss shall not be reversed in
subsequent accounting periods once recognized.
5.29 Long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be borne in the
reporting period and in the future with an amortization period of over one year.
1. Amortization method
Long-term deferred expenses are amortized evenly over the beneficial period.
2. Amortization years
Item Amortization years
Hotel exterior decoration 4 years
4 years
Fire stairs renovation
5 years
Renovation of guest rooms in Building C, Decoration and renovation
of Building A
5 years
Villa renovation
5 years
Swimming pool renovation, Pavement modification projects
5 years
Roof waterproofing projects
5.30 Employee compensation
(1) Accounting method for short-term compensation
During the accounting period when employees serve the Company, the actual short-term compensation is
recognized as liabilities and included in current profit and loss or costs associated with assets.
The appropriate amount of employee compensation payable will be determined during the accounting period
when the employees provide services for the Company based on the medical insurance, work injury insurance and
maternity insurance and other social insurance and housing fund paid by the Company for employees, as well as
trade union funds and employee education funds withdrawn according to provisions at the accrual basis and
accrual ratio.
The employee benefits in the non-monetary form shall be measured at fair value.
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(2)Accounting method for dismissal welfare
1) Defined contribution plans
The Company shall pay the basic endowment insurance and unemployment insurance for the employees
according to the relevant provisions of the local government. During the accounting period when the employees
provide services for the Company, the amount of payment shall be calculated according to the payment base and
proportion stipulated by the local government, which shall be recognized as liabilities and recorded into the
current profit and loss or the cost of related assets.
In addition to the basic endowment insurance, the Company has also established the enterprise annuity payment
system (supplementary endowment insurance)/enterprise annuity plan according to the relevant policies of the
national enterprise annuity system. The Company shall pay the fee to the local social insurance institution/annuity
plan according to a certain proportion of the employee's total salary, and the corresponding expenses shall be
included in the current profit and loss or related asset cost.
2) Defined benefit plans
According to the formula determined by the law of expected accumulative welfare units, the company will
attribute the welfare obligations generated by the established benefit plan to the period during which the employee
provides services, and record them into the current profit and loss or the cost of related assets.
The deficit or surplus resulting from the present value of the defined benefit plan obligations minus the fair value
of the defined benefit plan assets is recognized as the net liability or net asset of a defined benefit plan. If there is a
surplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan by the
lower of the surplus and the asset ceiling.
All defined benefit plan obligations, including those expected to be paid within 12 months of the end of the
employee's annual reporting period for the provision of services, are discounted by the market rate of return on
Treasury bonds or high-quality corporate bonds in the active market that matches the duration and currency of the
defined benefit plan obligations on the balance sheet date.
The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of the
defined benefit plan are recorded in the current profits and losses or the costs of related assets. The changes
caused by the net liabilities or net assets of the defined benefit plan shall be accounted for in other comprehensive
income, and shall not be transferred back to the profits and losses in the subsequent accounting period. Upon the
termination of the original defined benefit plan, all the parts previously accounted for in other comprehensive
income shall be carried forward to the undistributed profit within the scope of equity.
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
When establishing the settlement of the benefit plan, the difference between the present value of the obligation of
the established benefit plan and the settlement price determined on the settlement date shall be used to confirm the
settlement gains or losses.
(3) Accounting method for post-employment benefits
The Company pays the basic endowment insurance premiums and unemployment insurance for employees
according to the relevant provisions of the local governments. During the accounting period when employees
serve the Company, the paid amount which is calculated based on the payment base and proportion as stipulated in
the provisions of the local place is recognized as liabilities and included in the current profit or loss or
assets-related assets cost.
(4) Accounting method for other long-term employee welfare
5.31 Accrual liability
When the Company involves in proceedings, debt guarantees, onerous contracts and reorganization events, if such
events may require delivery of assets or rendering of services in the future and the amounts of such events can be
reliably measured, such events are recognized as Accrual liabilities.
(1) Recognition criteria of Accrual liabilities
When an obligation relating to a contingency meets all the following conditions at the same time, it is recognized
as an estimated liability:
1) Such obligation is a present obligation of the Company;
2) The performance of this obligation may very probably lead to the flow of economic interests out of the
Company; and
3) The amount of the obligation can be measured reliably.
(2) Measurement method of Accrual liabilities
Accrual liabilities of the Company are initially measured as the best estimate of expenses required for the
performance of the relevant present obligations.
When determining the best estimates, the Company comprehensively considers the risks, uncertainties, time value
of money, and other factors relating to the contingencies. If the time value of money is significant, the best
estimates will be determined after discount of relevant future cash outflows.
The best estimates shall be treated as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
47
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
outcomes within this range are equal, the best estimate should be determined at the average amount of upper and
lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the
outcomes within this range are unequal although such a range exists, in case that the contingency involves a single
item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more
items, the best estimates should be determined according to all the possible outcomes with their relevant
probabilities.
When all or part of the expenses necessary for the settlement of Accrual liabilities of the Company are expected to
be compensated by a third party, the compensation shall be separately recognized as an asset only when it is
virtually certain to be received. The compensation recognized shall not exceed the book value of the Accrual
liabilities.
5.32 Revenue
(1) Recognition and measurement principles for revenue from sale of goods
1) Revenue from sales of goods is recognized when the Company has transferred to the buyer the significant
risks and rewards of ownership of the goods.
2) The Company retains neither continuous management rights associated with ownership of the goods sold nor
effective control over the goods sold.
3) The relevant amount of income can be measured reliably.
4) It is highly likely that the economic benefits associated with the transaction will flow into the Company.
5) And the relevant amount of cost incurred or to be incurred can be measured reliably.
(2) Recognition criteria of revenue from sale of goods of the Company and specific judgment criteria of
recognition time
In the provision of hotel housing services at the same time, the Company provides goods to customers and will
prepare daily sales list after confirming with the Rooms Department and the hotel front desk. Based on the sales
list, the finance department confirms that the major risks and rewards of ownership of the goods have been
transferred to the customer and then the sales revenue is recognized.
(3) Recognition and measurement principles of revenue from rendering of service
1) For the hotel rooms, catering (breakfast) and other services to be provided by the Company, after they are
provided, and the Company checks with the sales department and the front check, the Company will prepare the
daily sales reports and accounts receivable list to the finance department, which will review the same, after which,
the revenue will be recognized.
2) For the revenue from restaurants and venues contracted out, they will be recognized in accordance with the
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
period stipulated in the contract or agreement and the collection timing.
(4) Recognition of revenue from transferring use right of assets
When the economic benefits relating to the transactions is possible to flow into the Company and the amount of
revenue can be measured reliably, revenues should be recognized. Revenues from transfer of right to use assets are
recognized under the following circumstances:
1) Interest income is determined based on the time when the monetary funds are lent and the effective rate.
2) The amount of revenues from usage is determined based on the charging time and method as agreed in
relevant contract or agreement.
5.33 Government grants
(1) Type
Government grants refer to the monetary or non-monetary assets obtained by the Company from the government
for free. Government grants are divided into asset-related government grants and income-related government
grants.
Asset-related government grants refer to government grants obtained by the Company for forming long-term
assets by acquisition, construction or other manners. Income-related government grants refer to government grants
excluding the asset-related government grants.
(2) Recognition time and measurement
Government grants can be recognized when simultaneously meeting the following conditions:
1) The enterprise can meet conditions attached to government grants; and
2) The enterprise can receive government grants.
If a government grant is a monetary asset, it shall be measured at the amount received or receivable. Government
grants shall be measured at receivables when there is strong evidence at the end of the period that such grants
comply with the relevant conditions prescribed by the financial support policies and the financial support funds
are expected to be received. Other financial grants shall be confirmed according to the amount of money received.
If government grants are non-monetary assets, they shall be measured at its fair value; and if the fair value cannot
be obtained in a reliable way, they shall be measured at a nominal amount.
(3) Accounting treatment
Asset-related government grants shall be used to offset the book value of relevant assets or recognized as deferred
income. If asset-related government grants are recognized as deferred income, they shall be included in profit or
loss by stages by a reasonable and systematic method within the useful lives of relevant assets. (Any government
grant related to the daily activities of an enterprise shall be included into other income in accordance with the
business nature. Government grants unrelated to the daily activities of enterprises shall be recorded as
49
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
non-operating revenues and expenditures.)
For government grants associated with income that are used to recover relevant costs or losses of the enterprise in
subsequent period are recognized as deferred income and included in the current profit or loss when relevant costs
or losses are recognized. (Any government grant related to the daily activities of an enterprise shall be included
into other income in accordance with the business nature. Government grants unrelated to the daily activities of
enterprises shall be recorded as non-operating revenues and expenditures.) If government grants related to income
are used to compensate the relevant costs and losses that have occurred, such government grants should be
directly included in the current profit or loss. (Any government grant related to the daily activities of an enterprise
shall be included into other income in accordance with the business nature. Government grants unrelated to the
daily activities of enterprises shall be recorded as non-operating revenues and expenditures.)
The discount interest of preferential policy loans obtained by the Company shall be divided into the following two
cases for accounting treatment:
1) If the finance department allocates the discount interest fund to the lending bank, and the lending bank provides
the loan to the Company at the preferential policy interest rate, the Company shall take the actual amount of the
loan received as the book value of the loan, and calculate the relevant borrowing costs according to the loan
principal and the preferential policy interest rate.
2) If the finance department directly allocates the discount interest funds to the Company, the Company shall
deduct the corresponding discount interest from the relevant borrowing costs.
5.34 Deferred tax assets and deferred tax liabilities
Deferred tax assets are recognized for deductible temporary differences to the extent that it shall not exceed the
taxable income probably obtained in future period that can be used for deducting the deductible temporary
differences.
Taxable temporary differences are recognized as deferred tax liabilities in addition to special circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be
recognized include: the initial recognition of goodwill; other transactions or matters excluding business
combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when
occurred.
When the Company has the statutory right to do settlement with the net amounts, and has the intention to do so or
the recovery of assets and the settlement of liabilities are achieved simultaneously, the Company shall present its
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
current income tax assets and current income tax liabilities at the net amounts as the result of one offsetting
another.
When the Company has the legal rights to balance income tax assets and income tax liabilities for the current
period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the
income tax which are imposed on the same taxpaying subject by the same tax collection authority or on different
taxpaying subjects, but, in each important future period in connection with the reverse of deferred income tax
assets and liabilities, the involved taxpaying subject intends to balance income tax assets and liabilities for the
current period with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax
assets and deferred income tax liabilities shall be presented based on the net amount after offset.
5.35 Lease
(1) Accounting treatment of operating lease
1) The rental fees paid for the asset leased by the Company will be amortized over the entire lease term without
deducting rent-free period according to the straight-line method and included in the expenses for the current
period. The initial direct costs related to the lease transactions paid by the Company are included in the current
expenses.
When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term and include them in
current expenses.
2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the
whole lease period including rent-free period, and shall be recognized as lease income. Initial direct costs relating
to lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts are
significant, they shall be capitalized and included in the current income on the same basis as the recognition of
lease income.
When the Company bears costs related to the lease borne by the leasee, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term.
(2) Accounting treatment of finance lease
1) Financial leased assets: on the start date of leasing, the Company takes the lower of the fair value of the leased
assets and the present value of the minimum lease payment as the book value of the leased assets, takes the
minimum lease payment as the book value of the long-term payable, and the difference as the unrecognized
financing expenses. The Company adopts the effective interest rate method to amortize the unrecognized
financing expenses during the lease period and record them into financial expenses. The initial direct expenses
incurred by the Company shall be included in the value of the leased assets.
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
2) Financial leasing assets: the Company shall, at the beginning of the lease, recognize the difference between the
sum of the receivable financial leasing payments, the unsecured residual value and its present value as unrealized
financing income, which shall be recognized as lease income within the period of receiving the rent in the future.
The initial direct expenses incurred by the company in connection with the lease transaction shall be included in
the initial measurement of the finance lease receivable and shall reduce the amount of income recognized during
the lease term.
5.36 Other significant accounting policies and accounting estimates
Termination of business
Termination of business is a separately identifiable component that meets one of the following conditions and has
been disposed of by the Company or placed by the Company as a holding for sale:
(1) The component represents a separate principal business or a separate principal area of business.
(2) The component is part of a related plan to dispose of a separate principal business or a separate principal area
of business.
(3) The component is a subsidiary acquired exclusively for resale.
5.37 Changes in significant accounting policies and accounting estimates
Significant accounting policies and accounting estimates have no changes in the Period
6. Taxation
6.1 Major tax types and tax rates
Taxes Basis for tax assessment Tax rate
Output VAT is calculated based on taxable sales revenue and service revenue
Value added tax calculated in accordance with tax laws and VAT payable or taxable sales 5%, 6%, 10%, 9% , 16% ,
13%
(VAT) revenue shall be the difference after deducting the input VAT deductible in
the same period
Consumption tax 7%
Urban maintenance
Levied based on VAT payable 25%, 20%
and construction tax
Enterprise income tax Levied based on the taxable income 25%, 20%
Education surtax Levied based on VAT payable 3%
Local education surtax Levied based on VAT payable 2%
Remaining value after deducting 30% from the original value of the house
Housing property tax 1.2% or 12%
(including the occupied land price), and rent revenue
Land use tax Land area RMB 18 / m2
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
7. Notes to the items of consolidate financial statements
7.1 Monetary funds
In RMB/CNY
Item Ending balance Beginning balance
Cash on hand 149,010.82 302,077.12
Bank deposits 17,683,622.39 7,120,862.77
Other monetary funds
Total 17,832,633.21 7,422,939.89
Including:total funds deposited abroad
Total amount of funds restricted by mortgage, pledge or freeze
7.2 Accounts receivable
( 1) Disclosure of account receivables by category
In RMB/CNY
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Propor Provisio Propo Provisio Book value
Amount Amount value Amount Amount
tion n ratio rtion n ratio
Accounts
receivable with
provision for bad - - - - - - - - - -
debts based on a
single item
Accounts
receivable with
provision for bad 204,919.84 100% 109,765.83 53.57% 95,154.01 420,849.75 100% 109,765.83 26.08% 311,083.92
debts based on
portfolios
Total 204,919.84 100% 109,765.83 53.57% 95,154.01 420,849.75 100% 109,765.83 26.08% 311,083.92
Disclosed by account age
In RMB/CNY
Account age Ending balance
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Within one year (one year included) 111,851.84
1-2 years 2,259.00
2-3 years 566.00
Over 3 years 90,243.00
3-4 years 785.00
4-5 years 18,633.00
Over 5 years 70,825.00
Total 204,919.84
( 4) Top five accounts receivable in terms of ending balance collected by the debtor
In RMB/CNY
Proportion in the total
Ending balance of Ending balance of the
Name of entity accounts receivable at
account receivable bad debt provision
period-end
Shanghai Hecheng International Travel Service Co.,
63,857.66 31.16% 3,558.30
Ltd.
Guangzhou Design Institute 38,980.00 19.02% 38,980.00
Tianjin Watermelon Tourism Limited Liability
22,516.62 10.99% 3,566.61
Company
Yangpu Huayu Road and Bridge Technology Co., Ltd. 18,633.00 9.09% 9,316.50
China International Travel Service Limited, Head
Office (Beijing) China International Travel Service 13,540.20 6.61% 13,540.00
Limited, Head Office (Beijing)
Total 157,527.48 76.87%
7.3 Other receivable
In RMB/CNY
Item Ending balance Beginning balance
Interest receivable
Dividend receivable
Other receivable 385,492.93 571,744.52
Total 385,492.93 571,744.52
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
1) Other account receivable disclosed by nature
In RMB/CNY
Nature Ending book balance Opening book balance
Utility bills 130,643.99 76,534.42
Petty cash 169,993.97 394,313.63
Individual social insurance, provident fund 45,784.79 61,826.29
Deposit 600.00 600.00
Litigation fee 68,562.00 68,562.00
Total 415,584.75 601,836.34
2) Accrual of bad debt provision
In RMB/CNY
First stage Second stage Third stage
Expected credit loss for
Expected credit loss for
Bad debt provision Expected credit loss in the whole duration Total
the whole duration (no
next 12 months (credit impairment has
credit impairment)
occurred)
Balance as on 1 Jan. 2020 30,091.82 30,091.82
Balance as on January 1. 2020
—— —— —— ——
in current period
--Transfer in second stage
--Transfer in third stage
--Reverse to second stage
--Reverse to first stage
Accrual in the Period
Reverse in the Period
Charge off in the Period
Write-off in the Period
Other changes
Balance on 30 June 2020 30,091.82 30,091.82
Disclosed by account age
In RMB/CNY
Account age Ending balance
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Within one year (one year included) 413,348.75
1-2 years
2-3 years
Over 3 years 2,236.00
3-4 years
4-5 years
Over 5 years 2,236.00
Total 415,584.75
3)Accrual, reversal or collection of bad debt provision in the Period
Accrual of bad debt provision in the Period:
In RMB/CNY
Amount changed in the period
Category Beginning balance Collection Ending balance
Accrual Write-off Other
or reversal
Other receivable 30,091.82 30,091.82
Total 30,091.82 30,091.82
4) Top five other accounts receivable in terms of ending balance collected by the debtor
In RMB/CNY
Proportion in total
amount of other Ending balance
Name of entity Nature Ending balance Account age accounts of the bad debt
receivable at provision
period-end
Bright moon pavilion music
Utility bills 87,323.92 Within one year 21.01% 3,356.74
restaurant
Sanya suburban people's court Litigation fee 68,562.00 Within one year 16.50% 3,428.10
Individual social insurance
Disbursements 45,784.79 Within one year 11.02% 2,468.92
premium
Guo Yubo Petty cash 38,300.26 Within one year 9.22% 4,718.33
Chen Gang Petty cash 34,340.20 Within one year 8.26% 3,949.84
Total -- 274,311.17 -- 66.01% 17,921.93
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
7.4 Inventory
( 1) Category
In RMB/CNY
Ending balance Beginning balance
Inventory Inventory
Item
Book balance falling price Book value Book balance falling price Book value
reserves reserves
Raw materials 529,861.78 310,465.94 219,395.84 843,199.89 615,322.99 227,876.90
Commodity stocks 22,771.38 11,102.41 11,668.97 22,771.38 11,102.41 11,668.97
Fuel 26,396.20 26,396.20 14,711.32 14,711.32
Total 579,029.36 321,568.35 257,461.01 880,682.59 626,425.40 254,257.19
( 2) Provision for inventory depreciation or provision for impairment of contract performance costs
In RMB/CNY
Current increase Current decrease
Beginning
Item Reversal or Ending balance
balance Accrual Other Other
charge off
Raw materials 615,322.99 304,857.05 310,465.94
Commodity
11,102.41 11,102.41
stocks
Total 626,425.40 304,857.05 321,568.35
In RMB/CNY
7.5 Other current assets
In RMB/CNY
Item Ending balance Beginning balance
Prepaid enterprise income tax 1,702,702.80 1,702,702.80
Prepaid individual income tax 2,837.74 4,778.06
Input tax of the VAT to be deducted 1,209,125.14 808,143.62
Prepaid for newspaper, insurance, etc. 36,844.01 56,413.98
Other 2,404.11
Total 2,951,509.69 2,574,442.57
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
7.6 Investment properties
Investment properties measured at cost
In RMB/CNY
Buildings and
Item Land use rights Total
constructions
I. Original book value
1.Beginning balance 18,856,504.44 5,662,740.59 24,519,245.03
2.Current increase
3.Current decrease
4.Ending balance 18,856,504.44 5,662,740.59 24,519,245.03
II. Accumulated depreciation and
accumulated amortization
1.Beginning balance 11,025,767.10 2,276,066.45 13,301,833.55
2.Current increase 214,142.78 28,170.00 242,312.78
(1)Accrual or amortization 214,142.78 28,170.00 242,312.78
3.Current decrease
4.Ending balance 11,239,909.88 2,304,236.45 13,544,146.33
III. Provision for impairment
1.Beginning balance 1,404,400.47 1,903,054.14 3,307,454.61
2.Current increase
3、Current decrease
4.Ending balance 1,404,400.47 1,903,054.14 3,307,454.61
IV. Book value
1.Ending book value 6,212,194.09 1,455,450.00 7,667,644.09
2.Opening book value 6,426,336.87 1,483,620.00 7,909,956.87
7.7 Fixed assets
In RMB/CNY
Item Ending balance Beginning balance
33,463,950.05 35,075,195.98
Fixed assets
Disposal of fixed assets
Total 33,463,950.05 35,075,195.98
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Note: the “Fixed assets ” above listed refers to the fixed assets after deducted the disposal of fixed assets
( 1)Fixed assets
In RMB/CNY
Buildings and Machinery Transportation Electronic Other
Item Total
constructions equipment facility equipment equipment
I. Original book value :
1.Beginning balance 136,789,501.82 9,613,076.54 2,130,663.57 2,266,121.24 3,125,353.67 153,924,716.84
2.Current increase 44,530.33 44,530.33
(1) Purchase 44,530.33 44,530.33
3.Current decrease 388,598.00 388,598.00
(1) Disposal or obsolescence 388,598.00 388,598.00
4.Ending balance 136,789,501.82 9,613,076.54 1,742,065.57 2,310,651.57 23,125,353.67 153,572,270.17
II. Accumulated depreciation
1.Beginning balance 74,674,779.38 7,248,649.94 1,498,327.87 1,526,121.21 1,263,700.50 86,211,578.90
2.Current increase 1,087,717.44 143,528.88 77,827.21 108,069.51 219,203.70 1,636,346.74
( 1) Accrual 1,087,717.44 143,528.88 77,827.21 108,069.51 219,203.70 1,636,346.74
3.Current decrease 369,168.48 369,168.48
(1) Disposal or obsolescence 369,168.48 369,168.48
4.Ending balance 75,762,496.82 7,392,178.82 1,206,986.60 1,634,190.72 1,482,904.20 87,478,757.16
III. Provision for impairment
1.Beginning balance 31,072,788.17 1,565,153.79 32,637,941.96
2.Current increase
3.Current decrease
4.Ending balance 31,072,788.17 1,565,153.79 32,637,941.96
IV. Book value
1.Ending book value 29,954,216.83 655,743.93 535,078.97 676,460.85 1,642,449.47 33,463,950.05
2.Opening book value 31,041,934.27 799,272.81 632,335.70 740,000.03 1,861,653.17 35,075,195.98
7.8 Construction in process
In RMB/CNY
Item Ending balance Beginning balance
Construction in process 4,074,092.55 488,522.10
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Construction material
Total 4,074,092.55 488,522.10
Note: the “Construction in process” mentioned in the above table refers to the construction in process after deducting construction
materials.
( 1) Construction in process
In RMB/CNY
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Staff dormitory renovation project 348,873.78 348,873.78
Central air-conditioning system and hot
139,648.32 139,648.32 139,648.32 139,648.32
water system comprehensive renovation
Renovation of the guest rooms in
3,934,444.23 3,934,444.23
Building-B
Total 4,074,092.55 4,074,092.55 488,522.10 488,522.10
( 2) Change of important construction in process in the Period
In RMB/CNY
Acc
Othe umu Includi
Amou Proporti
r Capita
nt on of lated ng:
amo lizatio
transfe accumul capit capital
unt Projec n rate
rred ative aliza ization Sourc
Beginning Current redu Ending t of the
Item Budget into project tion amoun es of
balance increase ction balance progre interes
fixed investme amo t of the funds
in ss
assets nts in t in
the unt interes
in the the 2019(
Peri of t in the
Period budget %)
od inter Period
est
Loan
s
Renovation of
from
the guest
12,000,000 3,934,444.23 3,934,444.23 32.79% 40% finan
rooms in
cial
Building-B
instit
ution
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
s
Central
air-conditionin
g system and
hot water 139,648.32 139,648.32 Other
system
comprehensiv
e renovation
Staff
dormitory
348,873.78 100% Other
renovation
project
Total 12,000,000 488,522.10 3,934,444.23 4,074,092.55 -- -- --
7.9 Intangible assets
( 1) Intangible assets
In RMB/CNY
Non-patents
Item Land use rights Patent right Total
technology
I. Original book value
1.Beginning balance 81,653,137.15 81,653,137.15
2.Current increase
3.Current decrease
4.Ending balance 81,653,137.15 81,653,137.15
II. Accumulated amortization
1.Beginning balance 32,819,438.43 32,819,438.43
2.Current increase 401,142.58 401,142.58
( 1) Accrual 401,142.58 401,142.58
3.Current decrease
4.Ending balance 33,220,581.01 33,220,581.01
III. Provision for impairment
1.Beginning balance 27,440,836.84 27,440,836.84
2.Current increase
3.Current decrease
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
4.Ending balance 27,440,836.84 27,440,836.84
IV. Book value
1.Ending book value 20,991,719.30 20,991,719.30
2.Opening book value 21,392,861.88 21,392,861.88
7.10 Long-term deferred expenses
In RMB/CNY
Beginning Amortization in Amount of other
Item Current increase Ending balance
balance the Period decreases
Reconstruction of fire-fighting stairway 28,559.56 8,567.82 19,991.74
Swimming pool reconstruction 164,977.48 29,995.90 134,981.58
Reconstruction of guest rooms in
528,951.38 96,172.96 432,778.42
Building C
Villa reconstruction 963,555.84 175,191.94 788,363.90
Building A renovation project 9,028,874.38 934,021.50 8,094,852.88
435,168.94 45,017.46 390,151.48
Pavement modification project
Roof waterproofing project 370,091.75 37,009.20 333,082.55
Staff dormitory renovation project 657,722.26 54,810.19 602,912.07
Total 11,520,179.33 657,722.26 1,380,786.97 10,797,114.62
Other description
7.11 Accounts payable
Presentation of accounts payable
In RMB/CNY
Item Ending balance Beginning balance
Payment for purchase 310,395.42 947,770.85
57,041.13 191,232.86
Accounts payable provisionally estimated
Service charges 84,838.93
Payment for projects 14,274.10 14,274.10
7,200.00
Elevator maintenance fee
Consignment sales 1,093.00 1,093.00
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Others 4,000.01
Total 382,803.65 1,250,409.75
7.12 Advance from customers
( 1) Presentation of advances from customers
In RMB/CNY
Item Ending balance Beginning balance
Room and meal fees 791,258.55 786,715.42
Total 791,258.55 786,715.42
( 2) Significant advances from customers with aging over one year
In RMB/CNY
Reasons for repayment
Item Ending balance
failure or carry-forward
PEGAS Zheng Qingbo 32,243.02 Unsettlement
Hainan Xiangyuan Tourism Development Co., Ltd. 28,131.00 Unsettlement
Hainan Qiongzhong Ecological Investment Guarantee Co. LTD 21,950.00 Unsettlement
Ren Kaiyu 9,774.00 Unsettlement
Hainan Chenda International Travel Service Co. LTD 8,779.00 Unsettlement
Total 100,877.02 --
7.13 Employee compensation payable
( 1) Presentation of employee compensation payable
In RMB/CNY
Item Beginning balance Current increased Current decreased Ending balance
1. Short-term compensation 2,552,996.37 5,027,987.58 5,745,681.48 1,835,302.47
2. Post-employment benefits - defined contribution
107,744.29 107,744.29
plans
3. Dismission welfare
4. Other welfare due within one year
Total 2,552,996.37 5,135,731.87 5,853,425.77 1,835,302.47
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
( 2) Presentation of short-term compensation
In RMB/CNY
Item Beginning balance Current increased Current decreased Ending balance
1. Salaries, bonuses, allowances and subsidies 1,434,454.59 3,941,069.64 4,687,425.30 688,098.93
710,453.21 710,453.21
2. Employee welfare expenses
3. Social insurance premiums 150,036.03 150,036.03
Including: medical insurance premiums 149,197.23 149,197.23
Work-related injury insurance premiums 838.80 838.80
Maternity insurance premiums
2,254.00 97,798.00 85,444.00 14,608.00
4. Housing provident funds
5. Labor union expenditures and employee education
1,116,287.78 128,630.70 112,322.94 1,132,595.54
funds
6.Short-term paid absence
7.Short-term profit sharing plan
Total 2,552,996.37 5,027,987.58 5,745,681.48 1,835,302.47
( 3) Presentation of defined contribution plans
In RMB/CNY
Item Beginning balance Current increased Current decreased Ending balance
1.Basic endowment insurance premiums 104,142.26 104,142.26
2.Unemployment insurance premiums 3,602.03 3,602.03
3.Enterprise annuity payment
Total 107,744.29 107,744.29
Other description:
7.14 Taxes payable
In RMB/CNY
Item Ending balance Beginning balance
Value added tax (VAT) 135,982.62 135,982.62
Consumption tax
Enterprise income tax 47.80
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Individual income tax 35,588.90 18,333.52
Urban maintenance and construction tax 756.67 902.73
Housing property tax 107,793.80 97,050.89
Land use tax 54,295.47 54,295.47
Education surtax 324.28 386.88
Local education surtax 216.19 257.94
Total 334,957.93 307,257.85
Other description:
7.15 Other payable
In RMB/CNY
Item Ending balance Beginning balance
Interest payable
Dividend payable
Other payable 2,011,273.02 2,647,515.86
Total 2,011,273.02 2,647,515.86
Note: the “Other payable” above mentioned refers to the other account payable after deducting interest payable and dividend payable
Important dividend payable that without payment over one year, and cause of un-payment that shall be disclosed:
Presentation of other payable by nature
In RMB/CNY
Item Ending balance Beginning balance
Employee dormitory rental fees, etc. 769,700.00 1,219,075.78
556,241.91 764,598.49
Margin
Quality guarantee deposit for projects 540,655.00 512,474.00
Employee deposit 86,520.00 86,520.00
Funds collected and remitted 30,969.08 41,160.31
Electric charges withheld 27,187.03 23,687.28
Total 2,011,273.02 2,647,515.86
7.16 Non-current liability due within one year
In RMB/CNY
Item Ending balance Beginning balance
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Long-term borrowings due within one year 3,358,196.37
Bond payable due within one year
Long-term account payable due within one year
Leasing liability due within one year
Total 3,358,196.37
Other description:
7.17 Long-term borrowing
( 1) Category of long-term borrowing
In RMB/CNY
Item Ending balance Beginning balance
Secured borrowings
Mortgage loan 16,458,140.89
Guaranteed loan
Debt of honour
Total 16,458,140.89
Description on category of long-term borrowing:
On 10 April 2020, with the villa property of the Hotel as collateral, applying a loan of 20 million yuan to Haikou Branch of Industrial
Bank, term of loans is three years. As of end of the Period, a loan of 19,791,474.22 yuan has been drawn.
7.18 Accrual liabilities
In RMB/CNY
Item Ending balance Beginning balance Reasons
The power company
Provisions for arrears of
1,489,685.04 1,489,685.04 miscalculated the costs of
electricity tariffs
electricity
Total 1,489,685.04 1,489,685.04 --
Other description: found more in Note 10
7.19 Share capital
In RMB/CNY
Changes ("+" for increase and "-" for decrease)
Beginning
Ending balance
balance Conversion of
Issuance of Share donation Others Sub-total
reserves into
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
new shares share
Total shares 364,100,000.00 364,100,000.00
Other description:
7.20 Capital reserves
In RMB/CNY
Item Beginning balance Current increased Current decreased Ending balance
Capital premium (equity premium) 33,336,215.58 33,336,215.58
Other capital reserves 20,806,634.43 20,806,634.43
Total 54,142,850.01 54,142,850.01
Other description:including changes in the period and reasons:
7.21 Undistributed profit
In RMB/CNY
Item Current Period Last Period
Undistributed profit as at the end of the previous period before
-339,756,246.05 -340,453,921.99
adjustment
Total adjustment to undistributed profit as at the beginning of the period
("+" for increase and "-" for decrease)
Undistributed profit as at the beginning of the period after adjustment -339,756,246.05 -340,453,921.99
Plus: net profit attributable to owners of the parent company in the
-6,631,450.42 755,974.01
current period
Less: withdrawal legal surplus
Withdrawal other common accumulation fund
Withdrawal general risk provision 备
Common stock dividends payable
Dividends transferred to capital
Undistributed profit as at the end of the period -346,387,696.47 -339,698,678.50
7.22 Operating revenue and operating cost
In RMB/CNY
Current Period Last Period
Item
Revenue Cost Revenue Cost
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
4,089,491.05 4,815,416.65 12,671,008.66 5,277,216.15
Primary business
892,380.95 237,261.78 1,570,952.38 237,261.78
Other business
Total 4,981,872.00 5,052,678.43 14,241,961.04 5,514,477.93
Revenue:
7.23 Taxes and surcharges
In RMB/CNY
Item Current Period Last Period
Urban maintenance and construction tax 8,585.55 31,410.84
Education surtax 6,132.53 22,436.31
Housing property tax 107,793.75 215,587.50
Land use tax 54,295.47 108,590.94
Vehicle and vessel use tax 3,720.00 5,220.00
Stamp tax 1,604.90 233.91
Total 182,132.20 383,479.50
Other description:
7.24 Selling expenses
In RMB/CNY
Item Current Period Last Period
Employee salaries and welfare 1,399,453.28 1,834,677.00
Social insurance premiums and provident fund 108,743.06 302,950.00
Depreciation 304,221.29 259,401.60
Utility bills 58,581.48 99,980.13
Repair charges 42,286.85 95,930.17
Other 181,908.28 217,053.04
Total 2,095,194.24 2,809,991.94
Other description:
7.25 Administrative expenses
In RMB/CNY
Item Current Period Last Period
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Employee salaries and welfare 2,519,772.34 2,789,891.55
Social insurance premiums and provident fund 169,611.23 321,053.70
Entertainment expenses 179,012.82 219,787.57
Travel expenses 97,323.85 149,081.98
Depreciation and amortization of land use rights 567,872.48 567,140.44
Fee of announcement and agency 405,900.00 655,420.00
Other 261,442.63 369,424.97
Total 4,200,935.35 5,071,800.21
Other description:
7.26 Financial expenses
In RMB/CNY
Item Current Period Last Period
Interest expenses 76,128.55
Less: interest income -89,077.69 -152,697.12
Profit or loss on exchange
Handling charges 11,635.79 18,965.03
Total -1,313.35 -133,732.09
Other description:
7.27 Other income
In RMB/CNY
Sources of other income Current Period Last Period
Government grants 150,000.00
VAT input tax gross deduction 112,840.35
7.28 Credit impairment loss
In RMB/CNY
Item Current Period Last Period
Bad debt loss of other receivable
Impairment loss on debt investment
Impairment loss on other debt investment
Bad debt loss of long-term receivable
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Bad debt loss of contractual assets
Total
Other description:
7.29 Asset impairment loss
In RMB/CNY
Item Current Period Last Period
1.Losses from bad debts
2. Inventory falling price loss and impairment loss of contract
performance cost
3. Impairment loss of long-term equity investment
4. Impairment loss of investment property
5. Impairment loss of fixed assets
6. Impairment loss of construction materials
7. Impairment loss of construction in process
8. Impairment loss of productive biological assets
9.Impairment loss of oil-and-gas assets
10.Impairment loss of intangible assets
11. Impairment loss of goodwill
12.Other
Total
Other description:
7.30 Non-operating revenue
In RMB/CNY
Amount included in the
Item Current Period Last Period current non-recurring profit
or loss
Other 2,593.62 160,030.46 2,593.62
Total 2,593.62 160,030.46 2,593.62
Government grants reckoned into current gains/losses:
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
7.31 Non-operating expenses
In RMB/CNY
Amount included in the
Item Current Period Last Period current non-recurring profit
or loss
Loss from disposal of fixed assets 19,129.52 19,129.52
Compensation loss of early termination of
330,000.00 330,000.00
the contract
Total 349,129.52 349,129.52
Other description:
7.32 Items of cash flows statement
( 1) Cash received from other operating activities
In RMB/CNY
Item Current Period Last Period
Interest income 89,077.69 152,697.12
Water, electrical and gas fees collected 256,746.31 679,120.76
Government tourism marketing incentive funds 150,000.00
Deposits 200,000.00
Other 6,006.36 73,624.00
Total 501,830.36 1,105,441.88
Cash received from other operating activities:
( 2) Cash paid for other operating activities
In RMB/CNY
Item Current Period Last Period
Social intercourse fees 179,012.82 221,362.57
Auditing charge to agency 390,000.00 400,000.00
Announcement fee 12,900.00 238,420.00
Expenses for business trips 98,590.03 151,940.09
Promotion fee 25,341.72 92,705.15
Repair charges 93,463.88 211,454.36
Other 1,008,645.73 978,613.63
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Total 1,807,954.18 2,294,495.80
Cash paid for other operating activities:
7.33 Supplementary information to the cash flows statement
In RMB/CNY
Supplementary information Current Period Last Period
1. Net profit adjusted to cash flows from operating activities -- --
-6,631,450.42 755,974.01
Net profit
Plus: Provision for impairment of assets
Depreciation of fixed assets, depreciation and depletion of oil and gas
1,850,489.52 1,726,440.52
assets and depreciation of productive biological assets
Depreciation of use right assets
Amortization of intangible assets 429,312.58 434,363.58
Amortization of long-term deferred expenses 1,380,786.97 602,113.32
Losses from disposal of fixed assets, intangible assets and other
long-term assets
Losses from write-off of fixed assets ("-" for gains)
Losses from fair value changes ("-" for gains)
Financial expenses ("-" for gains)
Investment loss("-" for gains)
Decrease of deferred income tax assets ("-" for increased)
Increase of deferred income tax assets ("-" for decreased)
Decrease of inventory ("-" for increased) -3,203.82 29,696.62
Decreases in operating receivable (“-” for increases) 402,181.50 -513,490.92
Increases in operating payable ("-" for decreases) -2,217,307.25 -1,765,680.48
Other
Net cash flow from operating activities -4,789,190.92 1,269,416.65
2. Significant investing and financing activities not involving cash
-- --
receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents : -- --
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Ending balance of cash 17,832,633.21 16,110,895.95
Less: beginning balance of cash 7,422,939.89 15,364,355.30
Plus: ending balance of cash equivalent
Less: beginning balance of cash equivalent
Net increase in cash and cash equivalents 10,409,693.32 746,540.65
Breakdowns of cash and cash equivalents
In RMB/CNY
Item Ending balance Beginning balance
I. Cash 17,832,633.21 7,422,939.89
149,010.82 302,077.12
Including: cash on hand
Bank deposits available for payment at any time 17,683,622.39 7,120,862.77
Other monetary funds available for payment at any time
Deposit of central bank funds available for payment
Deposits in other banks
Interbank lending
II. Cash equivalent
Including: bond investment due within three months
III. Balance of cash and cash equivalents at end of the period 17,832,633.21 7,422,939.89
Including: restricted use of cash and cash equivalent in parent company
or subsidiary in Group
Other description:
7.34 Government grant
Government grant
In RMB/CNY
Amount entry in current
Types Amount Presentation item
gains/losses
Government tourism marketing
150,000.00 Other income 150,000.00
incentive funds
8. Change of the consolidation scope
In reporting period, consolidation scope of the Company has no changes
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
9. Rights and interests in other entities
1. Equity in subsidiaries
(1)Structure of the enterprise group
Shareholding
Meth
ratio (%)
Name of Principal place of Business od of
Registration place
subsidiary business nature Indirec acqui
Direct sition
t
Hainan Wengao Leasing and
Estab
Tourist Resources Block B, Main Building, Hainan Dadonghai Tourism commercial
100.00% lishm
Development Co., Sanya, Hainan
Centre (Holdings) Co., Ltd., No. 2, Yuhai Road, service ent
Ltd
Jiyang District, Sanya City, Hainan Province industries
Other description:
10. Related parties and related party transactions
10.1. Parent company
Registered
Registration Business Shareholding ratio in Voting ratio in the
Name of the parent company
place nature capital the Company Company
Planting and
Luoniushan Co., Ltd. Haikou breeding 115115 17.55% 19.80%
industry
As of 30 June 2020, Luoniushan Co., Ltd. (hereinafter referred to as "Luoniushan") and its wholly-owned
subsidiary Hainan Ya'anju Property Services Co., Ltd. held a total of 72,092,000 A shares of the Company,
accounting for 19.80 % of the Company's total share capital, so it is the Company's largest shareholder. Ultimate
controlling party of the Company is Luoniushan Co., Ltd.
10.2 Subsidiary of the Enterprise
Found more in Notes
10.5 Related party transactions
In RMB/CNY
Related party Current Period Last Period
Content of related-party
74
海南大东海旅游中心股份有限公司 2020 年半年度财务报告
transaction
2,934.60 125,150.00
Luoniushan Co., Ltd. Room and meal fees
11.Commitme nts and contingencies
11.1 Commitments
As of the balance sheet date, the Company has no commitments that should be disclosed
11.2 Contingencies
(1)Major contingencies on balance sheet date
1)The Company owed the electricity bill to the Sanya Power Supply Bureau. On May 26, 2016, the Company
received a lawyer letter from Hainan Yunfan Law Firm entrusted by Sanya Power Supply Bureau of Hainan
Power Grid Co., Ltd. (hereinafter referred to as "Sanya Power Supply Bureau"), saying that Sanya Power Supply
Bureau found, in verifying electricity consumption by South China Hotel, a subsidiary of the Company, that the
current transformer (CT) installed in the distribution center metering counters in South China Hotel installed was
inconsistent with the record in the marketing management system file of Sanya Power Supply Bureau, and the
duration of the inconsistence was from July 2006 when South China Hotel changed its electricity consumption
measuring device to April 2016. According to the statistics, electricity consumption of 10313373 KWH was
measured in short, which was estimated to be valued at RMB 7,200,165.75 according to the electricity prices and
surcharge rates in the years.
According to the Legal Consultation Advice on Electricity Quantity (Electricity Charge) Claiming Dispute
between South China Hotel and Sanya Power Supply Bureau issued by Beijing Junhe (Haikou) Law Firm on
December 20, 2016, as all electricity consumption metering devices are purchased, installed, sealed, opened and
replaced by Sanya Power Supply Bureau Responsible, the short measurement of electricity charge from South
China Hotel for many years was due to the fault of Sanya Power Supply Bureau, and was irrelevant to South
China Hotel. Pursuant to Article 135 of the General Principles of Civil Law: "Except as otherwise stipulated by
law, the limitation of action regarding applications to a people's court for protection of civil rights shall be two
years., the Company accrued an amount of RMB 1,489,685.04 for the electricity charge for electricity quantity
measured in short during two years from April 2014 to April 2016. As of 30 June 2020, no further progress was
made on this matter.
2)The Company announced on June 3, 2019 that Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
(hereinafter referred to as “Dadonghai Group”) had borrowed RMB 2.76 million and RMB 4.55 million from the
Company on October 16, 1996 and December 26, 1996 respectively. The two loans totaled RMB 7.31 million and
have not been repaid yet. The Company filed a lawsuit with the Suburban People's Court of Sanya, Hainan
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
province (hereinafter referred to as the "court"), requesting the defendant Dadonghai group to repay the loan of
RMB 7.31 million to the Company. The company has received the paper of civil judgment from Sanya Suburb
People’s court, and dismissed the plaintiff’s claim. The litigation fee and cost of appraisal shall be borne by the
plaintiff. Currently, the company has appealed to the court. Creditor’s right of the case already written off in full
by the Company in 2008.
3)On May 31, 2018, the Sanya Local Taxation Bureau Social Security Fee Collection and Management Bureau
issued a notice of payment of social insurance premiums to the company’s South China Hotel, ordering the
company’s South China Hotel to pay the arrears of social insurance premiums and late fees and interest totaled
286,200.36 yuan from January 1, 2012 to December 31, 2012 within the time limit. On May 17, 2018, the Sanya
Local Taxation Bureau deducted the amount from the deposit of the company's South China Hotel. According to
the "South China Hotel Target Operation and Management Responsibility Letter" signed by the company's South
China Hotel and Sun Hongjie, Sun Hongjie should be responsible for the payment of the outstanding social
insurance premiums. For this reason, the company sued to the court. On February 25, 2020, the court ruled that
Sun Hongjie shall reimburse the company for the social insurance premiums, late fees and interest totaling
286,200.36 yuan from the date when the judgment becomes legally effective. At present, the judgment has
become legally effective and has entered the enforcement procedure.
12. Post balance sheet events
As of balance sheet date, the Company has no post balance sheet events need to adjusted
13. Other significant events
13.1 Correction of accounting errors in previous periods
1) Retroactive restatement method
Nil
2) Prospective application method
Nil
13.2 Other
As of the approval date of the Report, there is no progress in the assets restructuring commitment.
14. Supple mentary information
14.1 Return on equity and earnings per share
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海南大东海旅游中心股份有限公司 2020 年半年度财务报告
Earnings per share (RMB/Share)
Weighted average
Profit during the reporting period Basic earnings per Diluted earnings per
return on equity (%)
share share
Net profits attributable to ordinary shareholders of the Company -8.82% -0.0182 -0.0182
Net profits attributable to ordinary shareholders of the Company
-8.71% -0.0182 -0.0182
after deduction of non-recurring profits or losses
14.2 Accounting difference between IFRS and CAS
There are no accounting differences between IFRS and CAS.
(No text)
HAINAN DADONGHAI Tourism Centre (HOLDINGS) CO., LTD
20 August 2020
77
