司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Stock Code: 000613, 200613 Short Form of the Stock: Dadonghai -A, Dadonghai -B
海南大东海旅游中心股份有限公司
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Semi-Annual Report 2020
(Full-text)
Disclosure Date: 22 August 2020
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section I. Important Notice, Contents and Interpretation
Important Notice:
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the
Company) hereby confirm that there are no any fictitious statements, misleading statements, or
important omissions carried in this report, and shall take all responsibilities, individual and/or
joint, for the reality, accuracy and completion of the whole contents.
Yuan Xiaoping, Principal of the Company, Fu Zongren, person in charge of accounting works
and Fu Zongren, person in charge of accounting organ (accounting principal) hereby confirm
that the Financial Report of 2020 Semi-Annual Report is authentic, accurate and complete
All directors are attending the Board Meeting for Report deliberation.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of
common reserves either.
Concerning the forward-looking statements with future planning involved in the Report, they
do not constitute a substantial commitment for investors. Investors are advised to exercise
caution of investment risks.
Content
Semi-annual Report 2020.....................................................................................................................1
Section I Important Notice, Content and Interpretation....................................................................... 4
Section II Company Profile and Main Financial Indexes.................................................................... 4
Section III Summary of Company Business........................................................................................ 7
Section IV Discussion and Analysis of Operation............................................................................... 9
Section V Important Events................................................................................................................16
Section VI Particular about Changes in shares and shareholders.......................................................25
Section VII Preferred Stock................................................................................................................30
Section VIII Convertible Bonds......................................................................................................... 31
Section IX Particulars about Directors, Supervisors and Senior Executives..................................... 32
Section X Corporate Bond................................................................................................................. 33
Section XI Financial Report............................................................................................................... 34
Section XII Documents available for reference............................................................................... 126
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Interpretation
Items Refers to Contents
CSRC Refers to China Securities Regulation Commission
SSE Refers to Shenzhen Stock Exchange
Company Law Refers to Company Law of The People’s Republic of China
Securities Law Refers to Securities Law of The People’s Republic of China
Company or the Company Refers to Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Article of Association of Hainan Dadonghai Tourism Centre (Holdings)
Article of Association Refers to
Co., Ltd.
Shareholders’ General Meeting of Hainan Dadonghai Tourism Centre
Shareholders’ General Meeting Refers to
(Holdings) Co., Ltd.
Board of Directors of Hainan Dadonghai Tourism Centre (Holdings) Co.,
Board of Directors (BOD) Refers to
Ltd.
Supervisory Committee of Hainan Dadonghai Tourism Centre (Holdings)
Supervisory Committee Refers to
Co., Ltd.
Yuan Refers to CNY/RMB
Risk Warning
Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) are the
media for information disclosure appointed by the Company for year of 2020, all information under
the name of the Company disclosed on the above said media shall prevail.
The report is prepared in bilingual versions of Chinese and English respectively, in the event of any
discrepancy in understanding the two aforementioned versions, the Chinese version shall prevail.
Investors are advised to exercise caution of investment risks.
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section II Company Profile and Main Financial Indexes
I. Company profile
Short form of the stock Dadonghai -A, Dadonghai -B Stock code 000613, 200613
Short form of the Stock after changed N/A
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 司公限有份股心中游旅海东大南海
Short form of the Company (in Chinese) 海东大
Foreign name of the Company Hainan Dadonghai Tourism Centre (Holdings) Co.,Ltd
Foreign name of short form of the Company DADONGHAI
Legal representative Yuan Xiaoping
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Wang Hongjuan
Contact add. Dadonghai Sanya
Tel. 0898-88219921
Fax. 0898-88214998
E-mail hnddhhn@21cn.com
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company have no change in reporting period,
found more details in Annual Report 2019.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
place for semi-annual report have no change in reporting period, found more details in Annual Report 2019.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Same period of Increase/decrease in this report
Current period
last year y-o-y
Operating revenue (RMB) 4,981,872.00 14,241,961.04 -65.02%
Net profit attributable to shareholders of the listed company
-6,631,450.42 755,974.01 -977.21%
(RMB)
Net profit attributable to shareholders of the listed company
-6,547,754.87 595,943.55 -1,198.72%
after deducting non-recurring gains and losses (RMB)
Net cash flow arising from operating activities (RMB) -4,789,190.92 1,269,416.65 -477.27%
Basic earnings per share (RMB/Share) -0.0182 0.0021 -966.67%
Diluted earnings per share (RMB/Share) -0.0182 0.0021 -966.67%
Weighted average ROE (%) -8.82% 0.97% -9.79%
Increase/decrease in this
End of current End of last
report-end over that of last
period period
period-end
Total assets (RMB) 98,516,771.46 87,521,184.25 12.56%
Net assets attributable to shareholder of listed company
71,855,153.54 78,486,603.96 -8.45%
(RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
-19,129.52 Losses of scrapped fixed assets
write-off that accrued for impairment of assets)
Government subsidy calculated into current gains and losses(while Rewards for development of inbound
closely related with the normal business of the Company, excluding the tourism market supporting by the
262,840.35
fixed-amount or fixed-proportion governmental subsidy according to government and tax credit for the VAT
the unified national standard) input tax surcharge
Other non-operating income and expenditure except for the Compensation for early termination of
-327,406.38
aforementioned items the contracts and other revenue
Other revenue
Total -83,695.55 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
The Company's main business is hotel accommodation and catering services. Procurement of goods is mainly the
goods and materials necessary for hotel and catering operations by taking the principle of low price and fine
quality, some goods are purchased by directly signing purchase contracts with suppliers, and some good are
purchased by procurement agents. The operation are mainly including the network billing and overseas travel
agency team, and supplemented by the individual travelers of non-internet marketing and business and the tourists
from travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in Sanya City, Hainan
Province, and it has become a member of the nationwide famous hotels because of the convenient transportation,
beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- and
low-grade hotels or guesthouses numerously emerge, resulting in the supply much larger than the market demand,
the industry competition is rather fierce, and the pressure of decline in business remains.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Increased 10.4097 million yuan with an increase of 140.24% compared with the end of last year,
Monetary funds
mainly because received a loan from Industrial Bank and paying the construction amount.
Decreased 215,900 yuan with a decrease of 69.41% compared with the end of last year, mainly due
Account receivable
to the collection of receivable.
Decreased 186,300 yuan with a decrease of 32.58% compared with the end of last year, mainly due
Other account receivable
to the decline of utilities receivable.
Increased 3.5856 million yuan with an increase of 733.96% compared with the end of last year,
Construction in progress
mainly due to the decoration amount for B-building of the Hotel.
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
The Company takes hotel accommodation and catering services as the principle works, locates at Dadonghai bay
which is one of the China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has the
maximum passenger flow volume in Sanya City, and is about a 5-minute drive from downtown of Sanya City and
about a 30-munite drive from Sanya Phoenix Airport. The hotel is only tens of meters distant from the sea level,
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
possesses beautiful landscaping full of blooming flowers all the year round, and enjoys exceptional geography,
natural environmental advantages. The hotel has opened for more than two decades which is one of the oldest
hotels in Sanya and has received many domestic and foreign heads of state and national leaders. In the recent
years, the Company has comprehensively upgraded and rebuilt the hotel’s software and hardware facilities, further
improved the hotels internal and external business environment, and effectively enhanced the business
competitiveness. Currently, the management of the company’s hotel is still in the front rank among hotels in the
same area, with the same scale, and at the same level.
In the future work, the Company will keep trying to improve the hotel’s internal and external business
environment, strengthen the sales efforts and the staff construction, and further improve the operational capability.
During the reporting period, the Company's core competence had no significant change.
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section IV Discussion and Analysis of Operation
I. Introduction
During the reporting period, the company achieved operating income of 4,981,900 Yuan in main business,
decreased by 9,260,100 Yuan compared with the same period last year, a decrease of 65.02%; operating profit has
loss of 6,284,900 Yuan achieved, decreased by 6,880,900 Yuan compared with the same period last year, a
decrease of 1154.62%; net non-operating income of -346,500 Yuan, decreased by 506,600 Yuan compared with
the same period last year, a decrease of 316.54%; net profit has 6,631,500 Yuan loss, decreased by 7,384,200
Yuan compared with the same period last year, a decrease of 977.21%.
During the reporting period, the novel coronavirus pneumonia epidemic spread wantonly worldwide, tourism and
tourism service industries continued to be severely affected by the epidemic, and the company's operations fell
sharply. In the face of severe difficulties, the company actively responded, on the one hand, it increased domestic
marketing efforts and carried out strict cost control management; on the other hand, it took full advantage of the
off-season operation during the epidemic, and increased the construction of hotel software and hardware
equipment and facilities. Main tasks were as follows:
1. Continued to increase the construction of hotel software and hardware facilities, improve product quality, and
enhance competitiveness
Because the hotel rooms have not been repaired for a long time, they are aging and old, and cannot meet the
market demand. During the reporting period, the company made full use of the off-season operation during the
epidemic period, and continued to comprehensively design, update, decorate and transform the hotel's B building,
C building, parking lot, garden landscape, and corresponding equipment and facilities, which effectively improved
the operating environment of hotel’s hardware equipment and facilities, and enhanced the quality and
comprehensive competitiveness of hotel products.
2. Increased domestic marketing efforts
Severely affected by the epidemic, the foreign tourist market has stagnated and it is difficult to recover in the short
term. In response, the company actively strengthened cooperation with domestic travel agencies, intensified
cooperation with well-known online sales platforms, and strived to expand the domestic tourist market. With the
country's gradual opening of the domestic tourism market, the domestic tourism market has gradually recovered,
and the company's network sales revenue has increased significantly, effectively increasing the market share of
domestic tourists and changing the situation of over-reliance on foreign tourists in the past.
3. Keep strict cost control and maximize corporate benefits
During the reporting period, the company continued to strengthen procurement cost control management and
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
budget management, scientifically controlled operating costs, strictly and reasonably controlled various expenses,
and carried out regular inspections and repairs to eliminate waste of resources, improve cost rationality and
revenue cost-effectiveness. At the same time, as hotel operations were very sluggish during the epidemic, the
company scientifically and reasonably arranged staff on duty and waiting for duty according to work needs, which
effectively reduced labor costs and maximized corporate interests.
In second half of 2020, the Company continues to consolidate and expand sales channels, improve the hotel’s
quality and service standards, and enhance the comprehensive competitiveness, to laying out a solid foundation
for sustained, stable and healthy development of the Company.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of Operation”
Change of main financial data on a y-o-y basis
In RMB
Same period Y-o-y
Current period Reasons for changes
of last year increase/decrease
Under the influence of COVID-19,
Operation revenue 4,981,872.00 14,241,961.04 -65.02%
business declined seriously
Fixed costs account for a relatively high
Operation cost 5,052,678.43 5,514,477.93 -8.37% in operation cost, decline of operation
cost is small relatively
Reducing the pay and fees to lower
Sales expenses 2,095,194.24 2,809,991.94 -25.44%
operation cost
Reducing the pay and fees to lower
Administrative expenses 4,200,935.35 5,071,800.21 -17.17%
operation cost
Financial cost -1,313.35 -133,732.09 -99.02% Higher deposit interest income last year
Net cash flow arising from Operation revenue reduced greatly, the
-4,789,190.92 1,269,416.65 -477.27%
operation activities operation loss increased greatly
Net cash flow arising from
-4,541,324.47 -522,876.00 768.53% Hotel decoration investment
investment activities
Net cash flow arising from
19,740,208.71 100.00% Loans from Industrial Bank
financing activities
Net increase of cash and cash Received bank loans and paying the
10,409,693.32 746,540.65 1,294.39%
equivalent construction amount
Major changes on profit composition or profit resources in reporting period
□Applicable √Not applicable
No changes on profit composition or profit resources in reporting period
Constitution of operation revenue
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
In RMB
Current period Same period last year
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y (+,-)
revenue revenue
Total operation revenue 4,981,872.00 100% 14,241,961.04 100% -65.02%
According to industries
Tourism catering service 4,089,491.05 82.09% 12,671,008.66 88.97% -67.73%
Other business 892,380.95 17.91% 1,570,952.38 11.03% -43.19%
According to products
Room revenue 3,471,155.97 69.68% 11,108,639.78 78.00% -68.75%
Catering entertainment
618,335.08 12.41% 1,562,368.88 10.97% -60.42%
revenue
Other business 892,380.95 17.91% 1,570,952.38 11.03% -43.19%
According to region
Hainan area 4,981,872.00 14,241,961.04 100.00% -65.02%
About the industries, products, or regions accounting for over 10% of the company’s operating income or operating profit
√Applicable □ Not applicable
In RMB
Increase/decreas Increase/decrease Increase/decrease
Operating Operating Gross
e of operating of operating cost of gross profit
revenue cost profit ratio
revenue y-o-y y-o-y ratio y-o-y
According to industries
Tourism catering
4,981,872.00 5,052,678.43 -1.42% -65.02% -8.37% -62.70%
service
According to products
Customer service
3,471,155.97 4,410,744.89 -27.07% -68.75% -2.69% -86.27%
revenue
Catering
entertainment 618,335.08 404,671.76 34.55% -60.42% -45.64% -17.80%
revenue
Rental revenue 892,380.95 237,261.78 73.41% -43.19% 0.00% -11.49%
According to region
Hainan area 4,981,872.00 5,052,678.43 -1.42% -65.02% -8.37% -62.70%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Explanation on relevant data has above 30% y-o-y changes
√Applicable □ Not applicable
Affected by COVID-19, operation of the Company declined dramatically, operation revenue from the above mentioned products
have decreased significantly, and the operating gross profit margin has decreased sharply.
III. Analysis of the non-main business
□ Applicable √Not applicable
IV. Analysis of Assets and liability
1. Major changes of assets composition
In RMB
Current period-end Same period-end last year
Ratio
Ratio in total Ratio in total Notes of major changes
Amount Amount changes(+,-)
assets assets
It is Mainly caused by
obtaining bank loans, and
Monetary fund 17,832,633.21 18.10% 7,422,939.89 8.48% 9.62% paying the operating
expenses and construction
amount
Account The collection of account
95,154.01 0.10% 311,083.92 0.36% -0.26%
receivable receivable
Inventory 257,461.01 0.26% 254,257.19 0.29% -0.03% Normal changes
Investment real Normal changes after
7,667,644.09 7.78% 7,909,956.87 9.04% -1.26%
estate depreciation accrual
Normal changes after
Fix assets 33,463,950.05 33.97% 35,075,195.98 40.08% -6.11%
depreciation accrual
Construction in Caused by the Hotel
4,074,092.55 4.14% 488,522.10 0.56% 3.58%
progress decoration
Long-term Caused by obtaining the
16,458,140.89 16.71% 16.71%
borrowing bank loans
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Assets right restriction till end of reporting period
Nil
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets measured by fair value
□ Applicable √ Not applicable
5. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
□ Applicable √ Not applicable
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
The Company had no information of main holding company and stock-jointly companies disclosed in the reporting period.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2020
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
(1) Marco Policy risks
In order to normalize and optimize tourism market or further to promote clear-party construction, related
departments may further issue some relative policies. While these polices may cause restrain and effect on
regional tourism development. Main business income may be affected since we are engaged in tourism service.
Countermeasures: The Company will further to improve the hard and soft equipment and facilities of the hotel
while expanding the business scope, and win more market shares via high-class service and comfortable
environment so as to ensure the main business income level.
(2) The risk of being affected by the novel coronavirus pneumonia epidemic
Since January this year, the global outbreak of the novel coronavirus pneumonia has caused severe damage to the
tourism and tourism service industries. At present, although the domestic epidemic is basically under control, the
foreign epidemic continues to spread globally, and the foreign tourist market is difficult to recover in the short
term.
Countermeasures: The company will strictly follow the virus prevention and control requirements to regulate
management, and increase the renovation and construction of hotel infrastructure, increase the expansion of the
domestic tourist market, and strive to improve business competitiveness after the epidemic.
(3) Natural disaster risks
In recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, where
has high incidence of disastrous weather in summer. If Sanya becomes the landing place of typhoon, it may cause
great damages to the facilities of the Company and affect the Company’s normal operation.
Countermeasures: The Company will strengthen the construction and maintenance for infrastructure, continue to
buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting
natural disasters.
(4) Risks of HR
Demand for talent in aspect of hotel sales and management are increasingly due to the constantly rise of hotel
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
industry, flow of hotel talented people comes more widespread and more frequent; we may face the risks of
development restrained from brain drain.
Countermeasure: we will continue to improve the talent introduction, training system, incentive mechanism,
remuneration and welfare as well as insurance mechanism, strive to attract talent, cultivate them and retain them.
Meanwhile, strengthen staff quality and skills as well as the management ability, further putting more efforts in
enterprise culture construction, enhance the cohesion in the Company, and guarantee a stable of the core managers
and skill technicians.
(5) Operational risks of main business
With the ceaseless development of global tourist industry constantly and ceaseless rising of high-class,
middle-class and low-class hotels, the tourist sources keep shunting, and the competition of tourism service
industry in Sanya becomes increasingly fierce. While the main business of the Company is just a small-scale hotel,
as the main business is single and the business scope is limited, the tourist market conditions and tourist quantity
directly make significant affects on the company performance.
Countermeasure: made a scientific management and decision-making procedures, strengthen the awareness of risk
prevention, building and improving relevant mechanism and standardized the management in the Company.
Furthermore, increase the sales ability, on base of the former sales network, continues to exploit foreign high-end
tourism market under the superior geographical location and environment for improving the occupancy rate.
Besides, we continued to develop financing channels, expanding operation projects, enrich the industrial structure
for increasing the profit increasing point.
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section V. Important Events
I. In the report period, the Company held annual general meeting and extraordinary
shareholders’ general meeting
1. Annual General Meeting in the report period
Session of Ratio of investor Date of
Type Date Index of disclosure
meeting participation disclosure
The “Resolution Notice of Annual General
Annual Meeting of 2019” (No.: 2020-018) published on
AGM of
general 20.78% 22 May 2020 23 May 2020 Securities Times, Hong Kong Commercial Daily
2019
meeting and Juchao website (http://www.cninfo.com.cn)
dated 23 May 2020 respectively
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit distribution and capitalization of capital reserves in the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year
III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies
√Applicable □ Not applicable
Type
of Comm Comm Implem
Commitments Promise Content of commitments itment itment entatio
commit date term n
ments
On May 30, 2007, Luoniushan Co., Ltd. made The
Commi commitments in the Company’s "Instructions for original
tments reform of non-tradable shares" (Revision) and plans of
Luonius for 6
Commitments for "Instructions for reform of non-tradable shares" 2017-0 materia
han Co., Share month
Share Merger Reform (Abstract of revision) that in view of Dadonghai 6-27 l assets
Ltd Merger s
Company’s losses in successive years and on the verge reorgan
Reform
of delisting, in order to reverse the company's business ization
difficulties, improve profitability and recover the was
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
continuous business capacity, Luoniushan Co., Ltd., the termina
controlling shareholder of Dadonghai Company made ted
commitments to actively seek restructuring parties to
reorganize the assets of Dadonghai Company at the
appropriate time.
Commitments in report of
acquisition or equity
change
Commitments in assets
reorganization
Commitments make in
initial public offering or
re-financing
Equity incentive
commitment
Other commitments for
medium and small
shareholders
Completed on time (Y/N) N
The company’s stock has been suspended since the opening on February 15, 2017 due to the planning and
fulfillment commitments of Luoniushan. On August 13, 2017, the consideration of the 11th interim meeting
of the eighth board of directors of the company failed to approve the “Proposal on Major Asset Purchase and
Related Transaction Report (Plan) of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.” and other 11
proposals. On August 15, 2017, the company issued an announcement to terminate this major asset
restructuring, and the company’s stock resumed trading on August 17th.
On December 4, 2017, the board of directors and the board of supervisors of the company reviewed and
approved the Proposal on the Change of Commitment Period of the First Majority Shareholder of the
Company. Luoniushan Co., Ltd., the company’s first majority shareholder planned for a two-year extension
for the time limit of the company’s restructuring commitment since December 27, 2017, that is, the deadline
If the commitments is not
for the implementation of the restructuring commitment was changed to December 26, 2019. On December
fulfilled on time, shall
explain the specify reason 22, 2017, the company’s fourth extraordinary shareholders’ meeting in 2017 did not approve the proposal.
and the next work plan
On January 31, 2018, the company received the Notice on Planning for Suspension of Major Events sent by
Luoniushan Co., Ltd., the company’s largest shareholder, to plan and prepare the major issues related to the
company. Upon application by the company, the company’s stock (stock short name: Dadonghai A,
Dadonghai B, stock code: 000613, 200613) was suspended since the opening on January 31, 2018. Upon
application by the company, the company’s stock resumed trading on February 8, 2018, and was transferred
to the major asset restructuring since the opening on February 14, 2018.
On June 25, 2018, the company held the third interim meeting of the ninth board of directors which reviewed
and approved the Proposal on Terminating the Planning for Major Asset Restructuring. After careful study,
the board of directors of the company decided to terminate the planning for this major asset restructuring.
At present, the company has no information that should be disclosed but has not been disclosed
17
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
IV. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□Yes √ No
The semi-annual report of the Company had no audited.
V. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the
CPA
□ Applicable √ Not applicable
VI. Explanation on “Qualified Opinion” of previous year from the Board
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
VIII. Lawsuits
Significant lawsuits and arbitration of the Company
√Applicable □ Not applicable
Whether Execution
Amount to Form Litigation of Date
Litigation
Basic Situation of Litigation Involve an (Arbitration) Litigation of Disclosure
(Arbitration)
(Arbitration) d Estimate Trial Results (Arbitratio Discl Index
Progress
(Yuan) d and Impact n) osure
Liability Judgment
Hainan Dadonghai Tourism Centre The first The Announceme
instance company has nt on
Group Co., Ltd. borrowed 2.76 million
decision written off Significant
yuan and 4.55 million yuan from
rejected the the Litigation
Hainan Dadonghai Tourism Centre
claim of the borrowings (Announcem
(Holdings) Co., Ltd. on October 16, Judgment
Company, of the case in ent No.:
1996 and December 26, 1996 of first
and the full amount 2019-017)
instance 2019-
respectively. The two borrowings 731 N appeal in 2008. At published by
has not 06-04
totaled 7.31 million yuan and haven’t materials has present, the Securities
come into
been repaid yet. The company submitted to company is Times, Hong
effect
submitted a "Civil Complaint" and the court unable to Kong
within the judge the Commercial
related evidence materials to the Sanya
appeal period. impact of Daily and
Suburban People's Court (hereinafter
At present, no this lawsuit www.cninfo.
referred to as the "Court").
acceptance on the com.cn.
18
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
notice has company's
been current profit
received. or future
profit.
Other lawsuits
√Applicable □ Not applicable
Whether Executio
Litigatio Litigation
to Form n of Date
Amount n (Arbitratio Disclos
an Litigation of
Basic Situation of Litigation (Arbitration) Involved (Arbitrat n) Trial ure
Estimate (Arbitrati Discl
(Yuan) ion) Results Index
d on) osure
Progress and Impact
Liability Judgment
On May 31, 2018, the Sanya Local Taxation Bureau
Social Security Fee Collection and Administration
Bureau issued a notice of payment deadline for
social insurance premiums to the company's South
China Hotel, ordering the company's South China
Hotel to pay the unpaid social insurance premiums
and late payment fees and interest from January 1,
2012 to December 31, 2012 of totaling 286,200.36
Judgmen
yuan. On May 17, 2018, the Sanya Local Taxation Entered
t of fist The first
Bureau deducted the money from the deposit of the the
instance trial upheld
company's South China Hotel. According to the enforce
28.62 N has the
agreement of the "Responsibility Letter of the Target ment
come company’s
Management of South China Hotel" signed by South proced
into claim
China Hotel and Sun Hongjie, Sun Hongjie should ure
effect
be responsible for the social insurance premium
incurred from May 1, 2011 to April 30, 2016. The
unpaid social insurance premium occurred during
Sun Hongjie ’ s target management responsibility,
and Sun Hongjie should undertake the payment. So
far, Sun Hongjie has not repaid the advance payment
to the company's South China Hotel. To this end, the
company's South China Hotel appealed to the court.
IX. Media questioned
□Applicable √Not applicable
During the reporting period, the company had no questions from the media
X. Penalty and rectification
□ Applicable √ Not applicable
The Company has no penalty and rectification in the Period
19
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
XI. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XII. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XIII. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □Not applicable
Whet Wheth
Relat Tradi Tradi
ed her er
ng ng
trans over Availa over
Cleari
actio Propo limit Related limit
the ng ble Date Index the
n rtion Relate transact Proporti
Related appro form appro
amo in appro simila of of d ion on in appro
transact for
unt simila ved transa amount similar ved
ion ved relate r disclo disclo ved
(in r ction (in 10 transacti
price (in 10 d (in 10
10 transa limite marke sure sure price thousan ons limite
transa
thou ctions thousa d Yuan) thous
d or ction t price d or
sand
nd and
Yuan not not
) Yuan) Yuan)
(Y/N) (Y/N)
Same as
First Same as
the
Luoniu majo the
Consu Acco transact
shan rity Marke Marke transacti
mptio mmod 0.29 0.06% 0 N ion with
Co., share t price t price on with
n ation non-rela
Ltd. hold non-relat
ted
er ed party
party
Total -- -- 0.29 -- 0 -- -- -- -- --
Detail of sales return with major
N/A
amount involved
Report the actual implementation
of the daily related transactions
which were projected about their N/A
total amount by types during the
reporting period
Reasons for major differences
between trading price and market Not applicable
reference price
20
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit or debt for the Company in the reporting period
5. Other material related transactions
□Applicable √Not applicable
The Company has no other material related transactions in the period
XIV. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
XV. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
The Company had no trusteeship in the reporting period.
(2) Contract
□ Applicable √ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
√Applicable □ Not applicable
Note of leasing
21
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Item Tenant Lease life Term of lease
1/F catering of B-building of the Hotel Ma Ming (Hainan Hangpai Food Co., Ltd.) 5 years 2016-01-01 to 2020-05-30
Shopping mall –B/F Li Fuming 3 years 2019-11-01 to 2022-10-31
ground floor of Hotel A Li Fuming 3 years 2019-02-28 to 2022-02-27
Seaside stall and wood house Sanya Leda Food Management Co., Ltd. 5 years 2018-01-01 to 2022-12-31
Seaside locker room Zhong Zhengao 3 years 2016-12-01 to 2019-11-30
Multi-functional meeting room Li Fuming 5 years 2019-11-01 to 2024-10-31
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
√Applicable □ Not applicable
Leasing
Leasing Basis
assets The impact Whethe Asso
Lease income for
Name of involved in Lease of leasing r be ciatio
Name of Leasing termina (in 10 determi
the leasing the amount start income on related n
lessor assets tion thousan ning the
party (in 10 date the transact relati
date d leasing
thousand company ions on
Yuan) income
Yuan)
Sanya
Seaside
The Leda Food Contrac
stall and 2018-01 2022-1 Increase
Managem 653 145 N N/A
Company wood -01 2-31 t income
ent Co.,
house
Ltd.
The Seaside Contrac
Zhong 2016-12 2019-11 Increase
locker 10 36 N N/A
Company Zhengao -01 -30 t income
room
Multi-fu
The nctional 2019-11 2024-1 Contrac Increase
Li Fuming 190 30 N N/A
Company meeting -01 0-31 t income
room
2. Major Guarantee
□Applicable √ Not applicable
The Company had no guarantee in the reporting period.
3.Trust management
□Applicable √ Not applicable
The Company had no trust management in the reporting period.
4. Other material contracts
√Applicable □ Not applicable
22
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
W
he
I
th D
R n
The er at
The el d
book R The e
assessed ev e
value of Trans el perfo o
value of an x
The name the Name of The action at rman f
The name Contr the assets Prici ce o
of the Date of assets evaluatio base price ed ce by d
of the act involved ng re f
contracti contract involved n date (in 10 Tr the is
contracted objec in the Princ la di
ng signing in the institutio evalu thous an end cl
company t contract(i iple ti s
company contract( n ation and sa of o
n 10 o cl
in 10 yuan) cti the s
thousand ns o
thousan on term u
yuan) hi s
d yuan) s r
p u
or e
re
no
t
Obtai
Hainan
ning
20 Huazhi
Haikou 19.7
milli Land Mar N
The Branch of 2020-04 9
on 481 4,796 Real ket 2,000 N /
Company Industrial -10 milli
yuan Estate price A
Bank on
loans Appraisal
yuan
Co., Ltd.
loans
Hainan Deco
ratio 60%
Dadongh
n of
ai proje the
HaikouXin ct of co
Tourism decheng the nst
Centre Constructio Mar N
Build 2020-03 ru
n and N/A ket 1,200 N /
(Holding ing-B -25 cti
Installation price A
Engineerin of on
s) Co., Sout pr
g Co., Ltd.
Ltd South h og
Chin res
China
a s
Hotel Hotel
XVI. Social responsibility
1. Major environmental protection
Listed company and its subsidiary belong to the key pollution enterprise listed by Department of Environmental Protection: No
Nil
23
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
2. Execution of social responsibility of targeted poverty alleviation:
Nil
XVII. Explanation on other significant events
√Applicable □ Not applicable
The Lawyer’s Letter received by the Company: by preliminary accounting from Sanya Power Bureau, the 10313373 Kwh electricity
was understated under the name of South China Hotel from July 2006 to April 2016. The Company is communicated and negotiates
with Sanya Power Bureau in the above mentioned event without negotiation results so far.
XVIII. Significant event of subsidiary of the Company
□Applicable √ Not applicable
24
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section VI. Particulars about Changes in Shares and Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New Capitali
Bon
share zation
Proporti us Othe Subto
Amount s of Amount Proportion
on shar rs tal
issue public
es
d reserve
I. Restricted shares 10,223,400 2.81% 10,223,400 2.81%
1. State-owned shares
2. State-owned corporate
1,399,200 0.38% 1,399,200 0.38%
shares
8,824,200 2.42% 8,824,200 2.42%
3. Other domestic shares
Including: Domestic legal
8,824,200 2.42% 8,824,200 2.42%
person shares
II. Unrestricted shares 353,876,600 97.19% 353,876,600 97.19%
265,876,600 73.02% 265,876,600 73.02%
1. RMB common shares
2.Domestically listed
88,000,000 24.17% 88,000,000 24.17%
foreign shares
III. Total shares 364,100,000 100.00% 364,100,000 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Implementation progress of the share repurchases
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
25
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
In Share
Number of Number
Number
shares of new Number of
of shares
restricted shares shares Restriction
Shareholders’ name released Released date
at restricted restricted at reasons
in the
Period-beg in the Period-end
Year
in Year
Legal
Shenyang Jin’an Industrial After remove restricted
831,600 0 0 831,600 commitment in
Corporation procedures complete
share reform
Legal
Sanya Wangli Building Materials After remove restricted
92,400 0 0 92,400 commitment in
Sales procedures complete
share reform
Legal
Sanya Zhongxing Development Co., After remove restricted
2,541,000 0 0 2,541,000 commitment in
Ltd. procedures complete
share reform
Legal
After remove restricted
Sanya Real Estate Valuation Agent 924,000 0 0 924,000 commitment in
procedures complete
share reform
Legal
Southern Industrial and Trading After remove restricted
660,000 0 0 660,000 commitment in
Corporation procedures complete
share reform
Legal
Hainan Branch of Bank of After remove restricted
924,000 0 0 924,000 commitment in
Communications Co., Ltd. procedures complete
share reform
Legal
Guangzhou Company of Hainan After remove restricted
660,000 0 0 660,000 commitment in
International Investment Co., Ltd. procedures complete
share reform
Legal
After remove restricted
Hainan Dadonghai Tourism Co. 739,200 0 0 739,200 commitment in
procedures complete
share reform
Legal
Haikou Dongfang Urban credit After remove restricted
924,000 0 0 924,000 commitment in
Cooperative procedures complete
share reform
Guangzhou Dongzhan Industrial Co.
924,000 0 0 924,000 Legal After remove restricted
LTD
26
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
commitment in procedures complete
share reform
Special account for disposition of
Legal
bankrupt enterprise property- Hong After remove restricted
924,000 0 0 924,000 commitment in
Kong-Macao International Hainan procedures complete
share reform
Investment Co., Ltd.
Legal
Yangpu Tongrong Investment After remove restricted
79,200 0 0 79,200 commitment in
Management Consulting Co., Ltd. procedures complete
share reform
Total 10,223,400 0 0 10,223,400 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stock shareholders Total preference shareholders with voting
42,990 0
in reporting period-end rights recovered at end of reporting period
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Number of share
Number of
Change Amount of pledged/frozen
Proporti common Amount of
Nature of on of s in un-restricte State
Full name of Shareholders shares held restricted
shareholder shares report d shares of
held at shares held Amount
period held shar
period-end
e
Domestic non
Pled
Luoniushan Co., Ltd. state-owned 17.55% 63,885,980 0 0 63,885,980 44,720,186
ged
corporate
Domestic nature
Yang Meiqin 4.47% 16,279,028 0 0 16,279,028
person
Domestic nature
Pan Anjie 4.01% 14,593,598 0 0 14,593,598
person
Domestic non
Hainan Ya an Residence
’ state-owned 2.25% 8,205,800 0 0 8,205,800
Property Service Co., Ltd.
corporate
Domestic nature
Chen Jinlian 2.13% 7,766,400 0 0 7,766,400
person
Domestic nature
Pan Aiping 1.13% 4,110,738 0 0 4,110,738
person
China Investment Securities Foreign corporate 0.99% 3,622,300 0 0 3,622,300
27
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
(HK) Co., Ld. customer –
deposit
Shenwan Hongyuan Securities
Foreign corporate 0.84% 3,056,390 0 0 3,056,390
(Hong Kong) Co., Ltd.
Domestic nature
Zhang Fengxiu 0.84% 3,041,372 0 0 3,041,372
person
Domestic nature
Sun Huiming 0.79% 2,888,690 0 0 2,888,690
person
Strategy investors or general legal person becomes top
N/A
10 common shareholders due to rights issued
Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is
the wholly-owned subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen
Explanation on associated relationship or accordant Jinlian and Pan Aiping are the persons acting in concert; the Company is unknown
action among the aforesaid shareholders whether there exists associated relationship or belongs to the consistent actor regulated
by the Management Measure of Information Disclosure on Change of Shareholding
for Listed Company among the other shareholders.
Particular about top ten shareholders with un-restrict common shares held
Amount of un-restrict common shares Type of shares
Shareholders’ name
held at Period-end Type Amount
Luoniushan Co., Ltd. 63,885,980 RMB common share 63,885,980
Domestically listed
Yang Meiqin 16,279,028 16,279,028
foreign share
Domestically listed
Pan Anjie 14,593,598 14,593,598
foreign share
Hainan Ya an Residence Property Service Co., Ltd.
’ 8,205,800 RMB common share 8,205,800
Domestically listed
Chen Jinlian 7,766,400 7,766,400
foreign share
Domestically listed
Pan Aiping 4,110,738 4,110,738
foreign share
China Investment Securities (HK) Co., Ld. – 3,622,300 RMB common share 3,622,300
customer deposit
Domestically listed
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. 3,056,390 3,056,390
foreign share
Zhang Fengxiu 3,041,372 RMB common share 3,041,372
Domestically listed
Sun Huiming 2,888,690 2,888,690
foreign share
Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is
Expiation on associated relationship or consistent
the wholly-owned subsidiary of Luoniushan Co., Ltd. Yang Meiqin, Pan Anjie, Chen
actors within the top 10 un-restrict common stock
Jinlian and Pan Aiping are the persons acting in concert; the Company is unknown
shareholders and between top 10 un-restrict common
whether there exists associated relationship or belongs to the consistent actor regulated
stock shareholders and top 10 common stock
by the Management Measure of Information Disclosure on Change of Shareholding
shareholders
for Listed Company among the other shareholders.
28
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Explanation on shareholders involving margin business
about top ten common stock shareholders with N/A
un-restrict shares held
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
29
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
30
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section VIII Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period
31
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section IX. Particulars about Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
No change of shares held by directors, supervisors and senior executives, found more details in Annual Report 2019.
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2019.
32
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section X. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
33
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section XI. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.
II. 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
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 257,461.01 254,257.19
34
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
35
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
Including: Interest payable
Dividend payable
Commission charge and commission payable
Reinsurance 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
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 1,489,685.04 1,489,685.04
Deferred income
Deferred income tax liabilities
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:
36
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Share capital 364,100,000.00 364,100,000.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 54,142,850.01 54,142,850.01
Less: Inventory shares
Other comprehensive income
Reasonable reserve
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
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
Including: Interest receivable
Dividend receivable
Inventories 257,461.01 254,257.19
37
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
38
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
Including: Interest payable
Dividend payable
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
Including: preferred stock
Perpetual capital securities
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
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
Including: preferred stock
Perpetual capital securities
Capital public reserve 54,142,850.01 54,142,850.01
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve
Retained profit -346,388,259.09 -339,757,154.25
39
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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 “-”)
40
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
41
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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 Company -6,631,450.42 755,974.01
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
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 “-”)
42
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
(ii) Diluted earnings per share -0.0182 0.0021
43
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
44
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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:
45
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
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
46
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2020 semi-annual
Owners’ equity attributable to the parent Company
Other
equity
instru
ment O
P
P t
r
e L h
o
r e e
v M
p s r R
i i
e s e
S s n
t : c a
u i o
u o s
P r o r
a I m o
r p n i
l n p n
e l t
v r a O
f u o y
Item c e e b t
e s f Total owners’
a n h l h
Share capital r O Capital reserve Retained profit Subtotal i equity
p t e e e
r t r g n
i o n r
e h e e t
t r s r
d e s n e
a y i e
r e e r
l v s
s r r e
s e e
t v a s
s h r
o e l t
e a i v
c s
c r n e
k r
u e c
i
r s o
s
i m
k
t e
i
e
s
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
47
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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 is -6,631,450.42 -6,631,450.42 -6,631,450.42
listed with “-”)
(i) Total comprehensive
-6,631,450.42 -6,631,450.42 -6,631,450.42
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
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
48
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
364,100,000.00 54,142,850.01 -346,387,696.47 71,855,153.54 71,855,153.54
the report period
Last Period
In RMB
2019 semi-annual
Owners’ equity attributable to the parent Company
Other
equity
instru
ment O
P
P t
r
e L h
o
r e e
v M
p s r R
i i
e s e
S s n
t : c a
u i o
u o s
P r o r
a I m o
r p n i
l n p n
e l t
v r a O
f u o y
c e e b t
Item e s f Total owners’
a Capital n h l h
Share capital r O Retained profit Subtotal i equity
p reserve t e e e
r t r g n
i o n r
e h e e t
t r s r
d e s n e
a y i e
r e e r
l v s
s r r e
s e e
t v a s
s h r
o e l t
e a i v
c s
c r n e
k r
u e c
i
r s o
s
i m
k
t e
i
e
s
I. Balance at the end of
364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29 77,788,696.29
the last year
Add: Changes of
accounting policy
Error
correction of the last
period
Enterprise
combine under the
49
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
same control
Other
II. Balance at the
364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29 77,788,696.29
beginning of this year
III. Increase/ Decrease
in this year (Decrease 755,974.01 755,974.01 755,974.01
is listed with “-”)
(i) Total
755,974.01 755,974.01 755,974.01
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
(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
50
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
2. Usage in the report
period
(VI)Others
IV. Balance at the end
364,100,000.00 54,142,850.01 -339,698,179.71 78,544,670.30 78,544,670.30
of the report period
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
2020 semi-annual
Other
equity
instru
ment O
P t
e L h
r e e
p s r R
e s e
S
t : c a
u
u o s
P r
a I m o
r p
l n p n
e l
v r a
f u O
c e e b
Item e s t
a Capital public n h l Total owners’
Share capital r O Retained profit h
p reserve t e e equity
r t r e
i o n r
e h e
t r s r
d e s
a y i e
r e
l v s
s r
s e e
t v
s h r
o e
e a i v
c
c r n e
k
u e c
r s o
i m
t e
i
e
s
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 (Decrease is
-6,631,104.84 -6,631,104.84
listed with “-”)
51
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
(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)
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 period 364,100,000.00 54,142,850.01 -346,388,259.09 71,854,590.92
Last period
In RMB
2019 semi-annual
Other L O
R
equity e t
e
instru s h S
a
ment s e u
s
P P : r r
o
r e p
n
e r I c l
a
f p n o u O
b
Item e e v m s t
Capital public l Total owners’
Share capital r t O e p Retained profit h
reserve e equity
r u t n r r e
e a h t e e r
r
d l e o h s
e
r r e e
s
s c y n r
e
t a s v
r
o p s i e
v
c i h v
e
k t a e
52
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
a r
l e i
s n
s c
e o
c m
u e
r
i
t
i
e
s
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 (Decrease is
755,475.22 755,475.22
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
IV. Balance at the end of the report period 364,100,000.00 54,142,850.01 -339,698,678.50 78,544,171.51
53
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
III. Company profile
(I) Overview
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the "Company") is a
standardized company limited by shares established on April 26, 1993 and restructured from Hainan Sanya
Dadonghai Tourism Centre Development Co., Ltd. with the approval of Hainan Shareholding System Pilot Group
office via its Document Qiong Gu Ban Zi [1993] No.11. On May 6, 1996, the Company was reorganized and
separated with the reply of Hainan Securities Management Office by its Document Qiong Zheng Ban [1996]
No.58. On October 8, 1996 and January 28, 1997, the Company was approved to respectively issue 80 million B
shares and 14 million A shares on Shenzhen Stock Exchange and list for sales. On June 20, 2007, the Company
carried out the split share structure reform. The non-tradable shareholders of the Company paid shares to the
tradable shareholders for obtaining the circulation rights, and the tradable shareholders got 3 shares for every 10
shares. The Company belongs to tourism and catering service industry.
As at June 30, 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 and electrical equipment, chemical products (except franchised operations), daily
necessities, industrial means of production (except franchised operations), metal materials, machinery
equipment; sales of train, bus and vehicle tickets on an agent basis, etc. The Company's largest shareholder is
Luoniushan Co., Ltd.
(II) Scope to the consolidated financial statements
As at 30 June 2019, the subsidiary included into the Company's scope of consolidated financial statements is
as follows:
Name
Hainan Wengao Tourist Resources Development Co., Ltd. (hereinafter referred to as "the Wengao Tourism")
See “Note VI. Changes in the scope of consolidation" and “Note VII. Equity in other entities" for details of the
scope of consolidated financial statements and changes thereof.
The financial statements were approved by all directors of the Company for disclosure on August 20, 2020.
IV. Basic for the preparation of the financial statements
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
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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.
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.
V. Significant accounting policies and accounting estimates
Specific accounting policies and estimation attention:
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.
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 30 June,
2020 as well as operation results and cash flows for the half year of 2020.
2. Accounting period
The accounting year is from January 1 to December 31 in calendar year.
3. Operating cycle
The Company's operating cycle is 12 months.
4. Reporting currency
The Company adopts RMB as its reporting currency.
5. Accounting Treatment Method for Business Combinations (under the same/different 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
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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 auditing, legal services, consulting and other intermediary service fees as well as other relevant direct
expenses for business combination will be included in the current profit or loss at occurrence; the transaction
costs for the issue of equity securities shall be used to write down equities.
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, and all
its subsidiaries (including the investee's partible part that is under control of the Company) shall be included
in the consolidated financial statements.
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.
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
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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, 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
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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
① 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.
② Disposal 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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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.
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7. Classification and accounting treatment of joint venture arrangements
Joint venture arrangements are classified into joint operation and joint venture.
Joint operation refers the joint venture arrangement where the Company is a joint venturer 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.
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
which are subject to an insignificant risk of change in value.
9. Foreign currency business and foreign currency statement conversion
Foreign currency transactions will be translated at the spot exchange rate on the transaction date and be accounted
for at RMB.
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.
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10. Financial instruments
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 and measurement 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
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
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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 and measurement of 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
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
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Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof will 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 will be derecognized, and at the same time, the new financial liability will 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 is 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) will be included into current profit and loss.
Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be
split into the derecognized part and continuously-recognized part according to their respective relatively fair
values on the repurchase date. The difference between the book value of the derecognized part and the
consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be
included in the current profit and loss.
5) Method of determining 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. Fair
value of a financial instrument having no active market shall be 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 features of assets
or liabilities as considered by market participants in relevant asset or liability transactions, and gives priority to
use relevant observable inputs. The unobservable inputs are used only under the circumstance when it is
impossible or unobservable inputs to obtain relevant observable inputs.
6) Testing and accounting methods of 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.
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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.
11. Note receivable
Consistent with the accounts receivable accounting policy.
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
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.
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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.
13. Receivables financing
Consistent with the Accounting Standards for Business Enterprise
14. Other account 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
Other Receivables Portfolio 3 Unified collection of advance payment of other receivables
For other receivables divided into portfolios, the Company refers to historical experience in credit loss, combined
with the current situation and forecasted 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.
15. Inventories
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
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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;
(2) Packaging materials are amortized in a lump sum.
16. Contract assets
Consistent with the Accounting Standards for Business Enterprise
17. Contract costs
Consistent with the Accounting Standards for Business Enterprise
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18. Assets held 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.
19. Investment in debt obligations
Consistent with the Accounting Standards for Business Enterprise
20. Other investment in debt obligations
Consistent with the Accounting Standards for Business Enterprise
21. Long-term account receivable
Consistent with the Accounting Standards for Business Enterprise
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
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
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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
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
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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
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
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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.
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
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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.
23. Investment properties
Measurement mode
Measured by cost method
Depreciation or amortization method
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
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.
24. Fixed assets
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(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
Yearly depreciation
Asset type Depreciation method Year for depreciation Residual value rate
rate
Straight-line method 20-40 5% 4.75%-2.37%
Buildings and constructions
Straight-line method 8-20 5% 11.87%-4.75%
Machinery equipment
Electronic entertainment
Straight-line method 5-16 5% 19%-5.93%
equipment
Straight-line method 7-12 5% 13.57%-7.91%
Transportation equipment
Other equipment Straight-line method 8 5% 11.87
(3) Reorganization basis, valuation and depreciation method for financial lease assets
If any of the following conditions is stipulated in the terms of the lease agreement signed between the company
and the lessee, it shall be recognized as the financing leased assets:
1) After the expire of the lease term, the ownership of the leased assets shall be vested in the company;
2) The company has an option to purchase the asset, the purchase price is far less than the fair value of the asset
when the option is exercised;
3) The leasing term is the majority of the life of the leased asset;
4) The present value of the minimum lease payment on the beginning of the lease does not have many differences
from the fair value of the asset;
On the starting date of the lease, the company takes the lower between the fair value of the leased asset and the
present value of the minimum lease payment as the book value of the leased asset, and the minimum lease
payment as the book value of the long-term payable, and the difference between the fair value of the leased asset
and the present value of the minimum lease payment as the unrecognized financing fee.
25. Construction in progress
The book-entry values of the fixed assets are stated at total expenditures incurred before reaching working
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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.
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.
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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
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.
27. Biological assets
Nil
28. Oil-and-gas assets
Nil
29. Right-of-use assets
Nil
18. Intangible assets
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(1) Valuation method, useful lives and impairment
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.
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
Land use right 50 years Straight-line amortization method Useful life prescribed in the Certificate of Land Use Right
(2) Accounting policy of internal R&D expenditures
31. 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
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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
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.
32. 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
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Fire stairs renovation 4 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 years
33. Contract liabilities
Nil
34. 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.
(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
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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.
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.
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(4) Accounting method for other long-term employee welfare
35. Lease liability
Nil
36. Estimated liabilities
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 estimated liabilities.
(1) Recognition criteria of estimated 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 estimated liabilities
Estimated 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
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.
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When all or part of the expenses necessary for the settlement of estimated 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 estimated
liabilities.
37. Share-based payment
Nil
38. Other financial instrument as preferred stock and perpetual bond etc.
Nil
39. Revenue
Accounting policies used for revenue recognition and measurement
(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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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.
Differences in revenue recognition accounting policies caused by different business models of similar businesses
40. 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
81
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
business nature. Government grants unrelated to the daily activities of enterprises shall be recorded as
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.
41. 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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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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.
42. 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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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
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.
43. Other significant accounting policies and accounting estimates
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.
44. Changes in significant accounting policies and accounting estimates
(1) Changes in accounting policies
□Applicable √Not applicable
(2) Changes in accounting estimates
□Applicable √Not applicable
(3)Adjustment on relevant items of the statement at beginning of the year when initially implemented the
new revenue standard and new lease standard since 2020
(3) The first implementation of the new revenue standard and the adjustment of the new lease standard
from 2020 on the first implementation of the financial statement related items at the beginning of the year
Not applicable
(4) Explanation of the retroactive adjustment on preliminary comparative data when implemented the new
revenue standard and new lease standard initially since 2020
□Applicable √Not applicable
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
45. Other
VI. Taxation
1. Major tax types and tax rates applicable to the Company
Taxes Basis for tax assessment Tax rate
Output VAT is calculated based on taxable sales revenue and service
revenue calculated in accordance with tax laws and VAT payable or
Value added tax (VAT) 5% 6% 10% 9% 16% 13%
、 、 、 、 、
taxable sales revenue shall be the difference after deducting the input
VAT deductible in the same period
Consumption tax 7%
Urban maintenance and
Levied based on VAT payable 25% 20%
、
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
1.2% or 12%
Housing property tax house (including the occupied land price), and rent revenue
Land use tax Land area 18yuan/ m2
Disclose reasons for different taxpaying body: Nil
2. Tax preference: nil
3. Other: nil
VII. Notes to the main items of the financial statements
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
Total 17,832,633.21 7,422,939.89
Other explanation: nil
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
2. Trading securities: nil
3. Derivative financial assets: nil
4. Note receivable: nil
5. Accounts receivable
(1) Disclosure of account receivables by category
In RMB/CNY
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Category debt Book debt Book
Amoun Proport Amoun Provision value Amou Proport Amoun Provision value
t ion t ratio nt ion t ratio
Including:
Accounts
receivable with
204,91 100.00 109,76 95,15 420,8 100.00 109,76 311,08
provision for bad 53.57% 26.08%
9.84 % 5.83 4.01 49.75 % 5.83 3.92
debts based on
portfolios
Including:
204,91 100.00 109,76 95,15 420,8 100.00 109,76 311,08
Total 53.57% 26.08%
9.84 % 5.83 4.01 49.75 % 5.83 3.92
Provision for bad debts based on single item: nil
Provision for bad debt based on portfolios: nil
A description of the basis for determining the portfolio: nil
If the bad debt provision of an account receivable is withdrawn according to the general model of expected credit loss, please refer to
the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□ Applicable √ Not applicable
Released by account age
In RMB/CNY
Account age Book balance
Within 1 year (inclusive) 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
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
4-5 years 18,633.00
Over 5 years 70,825.00
Total 204,919.84
(2) Provision, reversal or recovery of provision for bad debts in the period: nil
(3) Account receivable actually charge off in the period: nil
(4)Top five accounts receivable in terms of ending balance collected by the debtor
In RMB/CNY
Ending balance of Proportion in the total accounts Ending balance of the
Name of entity
account receivable receivable at period-end bad debt provision
Shanghai Hecheng International
63,857.66 31.16% 3,558.30
Travel Service Co., Ltd.
Guangzhou Design Institute 38,980.00 19.02% 38,980.00
Tianjin Watermelon Tourism Limited
22,516.62 10.99% 3,566.61
Liability Company
Yangpu Huayu Road & Bridge
18,633.00 9.09% 9,316.50
Technology Co., Ltd.
China International Travel Service
13,540.20 6.61% 13,540.00
(Beijing)
Total 157,527.48 76.87%
(5)Account receivable that are terminated due to financial assets transfer: nil
(6)Assets and liabilities resulted by account receivable transfer and continues involvement: nil
6. Receivable financing: nil
Variation and fair value changes on receivable financing in the period:
□ Applicable √ Not applicable
If the provision for impairment of receivable financing is withdrawn according to the general model of expected credit loss, please
refer to the disclosure method of other receivables to disclose the relevant information of impairment provision:
□ Applicable √ Not applicable
Other description: nil
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
7. Advance payment: nil
(1) Disclosure of advance payment by account age: nil
(2) Top five advances payment in terms of the ending balance collected by the prepaid object: nil
8. Other receivable
In RMB/CNY
Item Ending balance Beginning balance
Other receivable 385,492.93 571,744.52
Total 385,492.93 571,744.52
(1)Interest receivable: Nil
(2)Dividend receivable: Nil
(3)Other account receivables
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
Social insurance and housing provident funds 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) Provision for bad debt:
In RMB/CNY
First stage Second stage Third stage
Expected credit loss for Expected credit loss for the
Provision for bad debt Expected credit loss Total
the whole duration (no whole duration (credit
in next 12 months
credit impairment) impairment has occurred)
Balance as at 1 Jan. 2020 30,091.82 30,091.82
Balance as at January 1. 2020
—— —— —— ——
in current period
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Balance as at 30 June 2020 30,091.82 30,091.82
Change of the book balance for major amount changed in loss provision
□ Applicable √ Not applicable
Released by account age
In RMB/CNY
Account age Book balance
Within 1 year (inclusive) 413,348.75
Over 3 years 2,236.00
Over 5 years 2,236.00
Total 415,584.75
3) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB/CNY
Amount changed in the period
Beginning
Category Reversal or Ending balance
balance Accrual Write-off Other
switch-back
Other
30,091.82 30,091.82
receivables
Total 30,091.82 30,091.82
Including major amount reversal or switch-back in the period: nil
4) Other receivables actually charge off in the period: nil
5) Top five other accounts receivable in terms of ending balance collected by the debtor
In RMB/CNY
Ending balance of
Ending Proportion in total amount of other
Name of entity Nature Account age the bad debt
balance accounts receivable at period-end
provision
Bright moon pavilion Within 1
Utility bills 87,323.92 21.01% 3,356.74
music restaurant year
Sanya suburban Litigation Within 1
68,562.00 16.50% 3,428.10
people's court fee year
Personal social Advance Within 1
45,784.79 11.02% 2,468.92
insurance premium payment year
Guo Yubo Petty cash 38,300.26 Within 1 9.22% 4,718.33
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
year
Within 1
Chen Gang Petty cash 34,340.20 8.26% 3,949.84
year
Total -- 274,311.17 -- 66.01% 17,921.93
6) Account receivables related to government subsidies: nil
7) Other receivable for termination of confirmation due to the transfer of financial assets: nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved: nil
9. Inventories
Whether the new revenue standards been implemented
No
(1) Classification of inventories
In RMB/CNY
Ending balance Beginning balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item Book
provision for Book value Book balance provision for Book value
balance
impairment of impairment of
contract contract
performance costs performance costs
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
write-off
Raw materials 615,322.99 304,857.05 310,465.94
Commodity stocks 11,102.41 11,102.41
Total 626,425.40 304,857.05 321,568.35
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
(3) Explanation on capitalization of borrowing costs at ending balance of inventory: nil
(4) Explanation on amortized amount of contract performance cost in current period: nil
10. Contract assets: nil
11. Assets held for sale: nil
12. Non-current assets maturing within one year: nil
13. 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
VAT input tax to be deducted 1,209,125.14 808,143.62
Prepaid for newspaper, insurance, etc. 36,844.01 56,413.98
Others 2,404.11
Total 2,951,509.69 2,574,442.57
Other description: nil
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
14. Creditors investment: nil
15. Other creditors investment: nil
16. Long-term account receivable
(1) Long-term accounts receivable: nil
(2) Long-term receivables derecognized due to the transfer of financial assets: nil
(3) The amount of assets and liabilities formed by the transfer of long-term receivables and continued
involvement: nil
17. Long-term equity investment: nil
18. Investment in other equity instrument: nil
19. Other non-current financial assets: nil
20. Investment properties
(1)Investment properties measured at cost
√Applicable □ Not applicable
In RMB/CNY
Buildings and Construction in
Item Land use rights Total
constructions process
I. Original book value
1.Beginning balance 18,856,504.44 5,662,740.59 24,519,245.03
2.Current increase
(1)Purchase
(2)Transfer from inventories/fixed
assets/construction in progress
(3)Increase from business combinations
3.Current decrease
(1)Disposal
(2)Other transfer-out
4.Ending balance 18,856,504.44 5,662,740.59 24,519,245.03
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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)Provision or amortization 214,142.78 28,170.00 242,312.78
3.Current decrease
(1)Disposal
(2)Other transfer-out
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
(1) Provision
3. Current decrease
(1)Disposal
(2)Other transfer-out
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
(2)Investment real estate measured by fair value
□ Applicable √ Not applicable
(3)Investment real estate without property certification held: nil
21. Fixed assets
In RMB/CNY
Item Ending balance Beginning balance
33,463,950.05 35,075,195.98
Fixed assets
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Total 33,463,950.05 35,075,195.98
(1)Fixed assets
In RMB/CNY
Houses and Mechanical Transportatio Electronic Other
Item Total
buildings equipment n equipment 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
(2)Transfer from
construction in progress
(3)Increase from
business combinations
3.Current decrease 388,598.00 388,598.00
(1)Disposal or
388,598.00 388,598.00
write-off
4.Ending balance 136,789,501.82 9,613,076.54 1,742,065.57 2,310,651.57 3,125,353.67 153,580,649.17
II. Accumulated
amortization
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) Provision 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
369,168.48 369,168.48
write-off
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
(1) Provision
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
3.Current decrease
(1)Disposal or
write-off
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
(2) Temporarily idle fixed assets: nil
(3) Fixed assets acquired by financing lease: nil
(4) Fixed assets acquired by operating lease: nil
(5) Certificate of title un-completed: nil
(6) Disposal of fixed assets: nil
22. Construction in process
In RMB/CNY
Item Ending balance Beginning balance
Construction in process 4,074,092.55 488,522.10
Total 4,074,092.55 488,522.10
(1)Construction in process
In RMB/CNY
Ending balance Beginning balance
Item
Book balance Provision Book value Book balance Provision Book value
Staff dormitory renovation
348,873.78 348,873.78
project
Central air-conditioning
system and hot water
139,648.32 139,648.32 139,648.32 139,648.32
system comprehensive
renovation
95
司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Renovation of guest rooms
3,934,444.23 3,934,444.23
in Building-B
Total 4,074,092.55 4,074,092.55 488,522.10 488,522.10
(2) Change of important projects under construction in the period
In RMB/CNY
Propor
Amou Accu Includin
tion of
nt Other mulate g: Capitaliz
accum
Begi transfe amoun d capitaliz ation rate
Endin ulative Projec
nnin rred t capital ation of the
Current g projec t Sources
Project name Budget g into reduct ization amount interest
increase balanc t progre of funds
bala fixed ion in
e invest ss amoun of the in the
nce assets the
ments t of interest period
in the period
in the interes in the (%)
period
budget t period
Renovation of Financia
3,934,
12,000,0 3,934,44 32.79 l
guest rooms in 444.2 40%
00.00 4.23 % institutio
Building-B 3
n loans
Central
air-conditioning
139,
system and hot 139,6
648. Other
water system 48.32
32
comprehensive
renovation
Staff dormitory 348,
renovation 873. 100% Other
78
project
Staff dormitory 488, 4,074,
12,000,0 3,934,44
renovation 522. 092.5 -- -- --
00.00 4.23
10 5
project
(3)Provision for impairment of construction in progress in the period: nil
(4)Engineering material: nil
23. Productive biological asset
(1)Measured by cost
□ Applicable √ Not applicable
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
(2)Measured by fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right-of-use assets : nil
26. 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
(1) Purchase
(2)Internal research and development
(3)Increase from business combinations
3.Current decrease
(1)Disposal
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) Provision 401,142.58 401,142.58
3.Current decrease
(1)Disposal
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
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
2.Current increase
(1) Provision
3.Current decrease
(1)Disposal
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
(2) Land use rights without certificate of ownership: nil
27. Development expenditure: nil
28. Goodwill: nil
29. Long-term deferred expenses
In RMB/CNY
Beginning Increase in Amortization in Amount of other
Item Ending balance
balance period period decreases
Reconstruction of fire-fighting
28,559.56 8,567.82 19,991.74
stairway
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
Pavement modification project 435,168.94 45,017.46 390,151.48
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: nil
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30. Deferred income tax assets and deferred income tax liabilities: nil
31. Other non-current assets: nil
32. Short-term loans: nil
33. Trading financial liability: nil
34. Derivative financial liability: nil
35. Notes payable: nil
36. Accounts payable
(1)Presentation of accounts payable
In RMB/CNY
Item Ending balance Beginning balance
Payment for purchase 310,395.42 947,770.85
Accounts payable provisionally estimated 57,041.13 191,232.86
Service charges 84,838.93
Payment for projects 14,274.10 14,274.10
Elevator maintenance fee 7,200.00
Consignment sales 1,093.00 1,093.00
Others 4,000.01
Total 382,803.65 1,250,409.75
(2)Significant accounts payable with aging over one year: nil
37. 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
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(2)Significant advances from customers with aging over one year
In RMB/CNY
Reasons for repayment failure or
Item Ending balance
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 --
Other notes: nil
38. Contractual liability: nil
39. Employee compensation payable
(1) Presentation of employee compensation payable
In RMB/CNY
Beginning
Item Increase in Period Decrease in Period Ending balance
balance
I. Short-term compensation 2,552,996.37 5,027,987.58 5,745,681.48 1,835,302.47
II. Post-employment benefits -
107,744.29 107,744.29
defined contribution plans
Total 2,552,996.37 5,135,731.87 5,853,425.77 1,835,302.47
(2)Presentation of short-term compensation
In RMB/CNY
Beginning
Item Increase in Period Decrease in Period Ending balance
balance
1. Salaries, bonuses, allowances
1,434,454.59 3,941,069.64 4,687,425.30 688,098.93
and subsidies
2. Employee welfare expenses 710,453.21 710,453.21
3. Social insurance premiums 150,036.03 150,036.03
149,197.23 149,197.23
Including: medical insurance
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premiums
Work-related injury insurance
838.80 838.80
premiums
4. Housing provident funds 2,254.00 97,798.00 85,444.00 14,608.00
5. Labor union expenditures and
1,116,287.78 128,630.70 112,322.94 1,132,595.54
employee education funds
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 Increase in Period Decrease in Period Ending balance
1.Basic endowment
104,142.26 104,142.26
insurance premiums
2.Unemployment
3,602.03 3,602.03
insurance premiums
Total 107,744.29 107,744.29
Other notes: nil
40. Taxes payable
In RMB/CNY
Item Ending balance Beginning balance
Value added tax (VAT) 135,982.62 135,982.62
Corporate income tax 47.80
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
Educational surtax 324.28 386.88
Local education surtax 216.19 257.94
Total 334,957.93 307,257.85
Other notes: nil
41. Other payable
In RMB/CNY
Item Ending balance Beginning balance
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Other payable 2,011,273.02 2,647,515.86
Total 2,011,273.02 2,647,515.86
(1)Interest payable: nil
(2)Dividend payable: nil
(3)Other payable
1) 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
Margin 556,241.91 764,598.49
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
2) Other significant payable with aging over one year: nil
42. Liability held for sale: nil
43. Non-current liability due within one year
In RMB/CNY
Item Ending balance Beginning balance
Long-term loans due within one year 3,358,196.37
Total 3,358,196.37
Other notes: nil
44. Other current liability: nil
45. Long-term loans : nil
(1) Long-term loan classification
In RMB/CNY
102
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Item Ending balance Beginning balance
Mortgage loan 16,458,140.89
Total 16,458,140.89
Explanation of long-term loan classification:
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.
Other instructions, including interest rate range: nil
46. Bond payable: nil
47. Lease liability: nil
48. Long-term account payable: nil
49. Long-term employee payable: nil
50. Estimated liabilities
In RMB/CNY
Item Ending balance Beginning balance Reasons
The power company miscalculated
Provisions for arrears of electricity tariffs 1,489,685.04 1,489,685.04
the costs of electricity
Total 1,489,685.04 1,489,685.04 --
Other description: including important assumptions and estimation for the major accrual liability: nil
51. Deferred income: nil
52. Other non-current liability: nil
53. Share capital
In RMB/CNY
Changes in the period ("+" for increase and "-" for decrease)
Beginning
Issuance of Share Conversion of Ending balance
balance
Others Sub-total
new shares donation reserves into share
Total shares 364,100,000.00 364,100,000.00
Other notes: nil
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54. Other equity instrument: nil
55. Capital reserves
In RMB/CNY
Item Beginning balance Increase in Period Decrease in Period Ending balance
Capital premium
33,336,215.58 33,336,215.58
(equity premium)
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: nil
56. Treasury stock: nil
57. Other consolidated income: nil
58. Reasonable reserve: nil
59. Surplus reserves: nil
60. Undistributed profit
In RMB/CNY
Item The period Last period
Undistributed profit as at the end of the previous period before adjustment -339,756,246.05 -340,454,153.72
Undistributed profit as at the beginning of the period after adjustment -339,756,246.05 -340,454,153.72
Plus: net profit attributable to owners of the parent company in the current period -6,631,450.42 755,974.01
Undistributed profit as at the end of the period -346,387,696.47 -339,698,179.71
61. Operating revenue and operating cost
In RMB/CNY
The period Last period
Item
Revenue Cost Revenue Cost
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:
In RMB/CNY
Contract type 1# Division 2# Division Total
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Product type 4,089,491.05 4,089,491.05
Including:
Room income 3,471,155.97 3,471,155.97
Including:
Hainan 4,089,491.05 4,089,491.05
Including:
Tourism and catering services 4,089,491.05 4,089,491.05
Including:
Including:
Including:
Including:
Total 4,089,491.05 4,089,491.05
Information relating to performance obligation: nil
62. Taxes and surcharges
In RMB/CNY
Item The period Last period
Urban construction tax 8,585.55 31,410.84
Educational 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 notes: nil
63. Selling expenses
In RMB/CNY
Item The period Last period
Staff wages and benefits 1,399,453.28 1,834,677.00
Social Security Fees 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 item 181,908.28 217,053.04
Total 2,095,194.24 2,809,991.94
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Other notes: nil
64. Administrative expenses
In RMB/CNY
Item The period Last period
Staff wages and benefits 2,519,772.34 2,789,891.55
Social Security Fees and Provident Fund 169,611.23 321,053.70
Business entertainment 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
Announcement fee and agency fee 405,900.00 655,420.00
Other item 261,442.63 369,424.97
Total 4,200,935.35 5,071,800.21
Other notes: nil
65. R&D expenses: nil
66. Financial expenses
In RMB/CNY
Item The 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 notes: nil
67. Other income
In RMB/CNY
Sources of other income The period Last period
Government grants 150,000.00
VAT input tax plus deduction 112,840.35
Total 262,840.35
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68. Investment income: nil
69. Net open hedging benefits: nil
70. Gains from fair value changes: nil
71. Credit impairment loss: nil
72. Asset impairment loss: nil
73. Income from assets disposal: nil
74. Non-operating revenue
In RMB/CNY
Item The period Last period Amount included in the current non-recurring profit or loss
Others 2,593.62 160,030.46 2,593.62
Total 2,593.62 160,030.46 2,593.62
Government subsidies reckoned into current gains/losses: nil
75. Non-operating expenses
In RMB/CNY
Amount included in the current
Item The period Last period
non-recurring profit or loss
Loss on disposal of fixed assets 19,129.52 19,129.52
Compensation for early termination
330,000.00 330,000.00
of the contracts and other revenue
Total 349,129.52 349,129.52
Other notes: nil
76. Income tax expenses
(1)Income tax expenses statement: nil
(2)Accounting profit and income tax expense adjustment process
In RMB/CNY
Item The period
Total profits -6,631,450.42
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Other description: nil
77. Other comprehensive income
See Note
78. Notes to items of statement of cash flows
(1)Cash received from other operating activities
In RMB/CNY
Item The period Last period
Interest income 89,077.69 152,697.12
Water, electricity and gas costs 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
Note of cash received from other operating activities: nil
(2) Cash paid for other operating activities
In RMB/CNY
Item The period Last period
Social intercourse fees 179,012.82 221,362.57
Intermediary agency audit fee 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 item 1,008,645.73 978,613.63
Total 1,807,954.18 2,294,495.80
Note of cash paid for other operating activities: nil
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(3) Cash received from other investment activities: nil
(4) Cash paid for other investing activities: nil
(5)Cash received from other financing activities: nil
(6)Cash paid for other financing activities: nil
79. Supplementary information to the statement of cash flows
(1)Supplementary information to the statement of cash flows
In RMB/CNY
Supplementary information The period Last period
1. Net profit adjusted to cash flows from operating activities -- --
Net profit -6,631,450.42 755,974.01
Depreciation of fixed assets, depreciation and depletion of oil and
1,850,489.52 1,726,440.52
gas assets and depreciation of productive biological assets
Amortization of intangible assets 429,312.58 434,363.58
Amortization of long-term deferred expenses 1,380,786.97 602,113.32
Decreases in inventories ("-" for increases) -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
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:
3. Net changes in cash and cash equivalents: -- --
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
Net increase in cash and cash equivalents 10,409,693.32 746,540.65
(2) Net cash payment for the acquisition of a subsidiary of the current period: nil
(3) Net cash received from the disposal of subsidiaries: nil
(4) Breakdowns of cash and cash equivalents
In RMB/CNY
Item Ending balance Beginning balance
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I. Cash 17,832,633.21 7,422,939.89
Including: cash on hand 149,010.82 302,077.12
Unrestricted cash at bank 17,683,622.39 7,120,862.77
III. Balance of cash and cash equivalents at end of the period 17,832,633.21 7,422,939.89
Other notes: nil
80. Notes for the statement of owners equity changes
Explain the items and adjusted amounted which have adjusted in “Other” of last year’s ending balance: nil
81. Assets with ownership or use right restricted: nil
82. Item of foreign currency: nil
(1)Item of foreign currency: nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□ Applicable √ Not applicable
83. Hedging
Released the items and relevant instruments by types, and qualitative and quantitative information for hedge risks: nil
84. Government subsidy
(1).Government subsidy
In RMB/CNY
Amount entry in current
Types Amount Presentation item
gains/losses
Government tourism marketing incentive funds 150,000.00 Other income 150,000.00
(2)Refund of government subsidy
□ Applicable √ Not applicable
Other notes: nil
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85. Other
VIII. Change of the consolidation scope
1. Business combination not under common control
(1)Business combination not under common control occurred in the period: nil
(2)Combination costs and goodwill: nil
(3) Identifiable assets/liabilities of the purchasee on the date of purchase: nil
(4) Gain/loss from the equity re-measured at fair value held before purchasing date: nil
Enterprise combined step by step through multi-dealings and obtained controlling rights in the Period
□Yes √No
(5)Explanation on combined consideration or the identifiable assets and liabilities’ fair value of the
purchased party on purchasing date or at the end of the current period of merger, which is impossible to
determine in a reasonable way: nil
(6)Other description: nil
2. Business combination under common control: nil
3. Counter purchase: nil
Basic information of the transaction, the basis for the transaction to constitute a reverse purchase, whether the
assets and liabilities retained by the listed company constitute a business and its basis, the determination of the
merger cost, the amount of equity adjustment and its calculation when handling according to equity transactions:
Nil
4. Disposal of subsidiaries
Losing controlling rights while dispose subsidiary on one-time
□Yes √No
Dispose subsidiary step by step through multi-dealings and losing controlling rights in the Period
□Yes √No
5. Changes of combination scope
Other reasons contributed the changes for combination scope (e.g. new subsidiary established, liquidate subsidiary etc.): nil
111
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6. Other
IX. Rights and interests in other entities
1. Equity in subsidiaries
(1)Structure of the enterprise group
Shareholding ratio
Principal
Name of Method of
place of Registration place Business nature acquisition
subsidiary Direct Indirect
business
Block B, Main Building, Hainan
Hainan Wengao
Dadonghai Tourism Centre Leasing and
Tourist Resources Sanya, 100.00 Newly
(Holdings) Co., Ltd., No. 2, commercial % established
Development Co., Hainan
Yuhai Road, Jiyang District, service industries
Ltd.
Sanya City, Hainan Province
An explanation for the shareholding ratio differing from the share of the voting rights in the subsidiaries: nil
112
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(2) Major non-wholly-owned subsidiary: nil
(3) Main financial information of the major non-wholly-owned subsidiary: nil
(4) Major restriction on using the group’s assets and paying off debts for the group: nil
(5) Financial and other supports provided to the structured entity that included in consolidate financial
statement scope: nil
2. Changes in the owner's equity share of the subsidiary and the transaction is still controlled subsidiary:
nil
3. Equity in arrangement of joint venture or associated enterprises: nil
4. Important common management: nil
5. Equity in structured entities not included in the consolidated financial statements: nil
6. Other: nil
X. Risks related to financial instruments: nil
XI. Fair value disclosures
1. Ending fair value of the assets and liabilities measured by fair value: nil
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order: nil
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second-order: nil
4. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on third-order: nil
5. Sensitivity analysis of non-observable parameters and adjustment information between the opening book
value and ending book value that sustaining measured by fair value on third-order: nil
6. If there are conversion between different orders that sustaining measured by fair value, explain the
conversion cause and policy of determining the time point for conversion: nil
7. The valuation technical change and reasons occurred in the period: nil
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8. The fair value of financial assets/liabilities that not measured under the fair value: nil
9. Other: nil
XII. Related parties and related party transactions
1.Parent company
Name of the parent Registrat Registered Shareholding ratio in Voting ratio in the
Business nature
company ion place the Company Company
capital
Planting and
Luoniushan Co., Ltd. Haikou 115115 17.55% 19.80%
breeding industry
Explanation:
As at June 30, 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.
2. Subsidiary of the Enterprise
Found more in Notes
3. Joint venture and associated enterprise: nil
4. Other related party: nil
5. Related party transactions
(1) Related party transactions of purchasing and selling commodities, providing and receiving labor
services
Procurement of goods / acceptance of labor: nil
Sales of goods/provided labor service:
In RMB/CNY
Related party Content of related-party transaction The period Last period
2,934.60 125,150.00
Luoniushan Co., Ltd. Room and meal fees
Note of related party transactions of purchasing and selling commodities, providing and receiving labor services: nil
114
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(2) Associated trusteeship management/contract and trusteeship/outsourcing: nil
(3) Related-party lease: nil
(4) Related-party guarantee: nil
(5) Related-party funds lending: nil
(6) Related-party asset transfer and debt restructuring: nil
(7) Key management personnel emoluments: nil
(8) Other related transactions: nil
6. Receivables and payable of the related party: nil
7. Related party’s commitment
According to the requirements of the China Securities Regulatory Commission (hereinafter referred to as "CSRC")
on the Guidelines for the Supervision of Listed Companies No.4--Commitments of and Performance of
Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers of Listed Companies and Listed
Companies (Announcement of the China Securities Regulatory Commission [2013] No.55), on June 7, 2014,
Luoniushan Co., Ltd.(hereinafter referred to as “Luoniushan”) issued a Letter regarding the Change of
Luoniushan Co., Ltd.’s Commitment to Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. to the Company,
committing that, within three years from the date when the change of such commitment is reviewed and adopted
at the Company's general meeting, Luoniushan will actively seek restructuring party who will conduct the asset
restructuring on the Company. The above matters were reviewed and approved by the board of shareholders of the
Company on June 27, 2014.
On June 23, 2017, Luoniushan issued a Letter regarding the Change of Luoniushan Co., Ltd.’s Commitment
Duration to Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd., and extended the implementation period of
the above restructuring commitment made by Luoniushan to the Company, that is, the deadline for the
implementation period of the restructuring commitment was changed to December 27, 2017.
As of June 30, 2020, no further progress was made on the above-mentioned asset restructuring commitments.
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8. Other: nil
XIII. Share-based payment
1. Share-based payment
□ Applicable √ Not applicable
2. Settled by equity
□ Applicable √ Not applicable
3. Settled by cash
□ Applicable √ Not applicable
4. Modification and termination of share-base payment
5. Other
XIV. Commitments and contingencies
1. Commitments
Commitments on balance sheet date
As of the balance sheet date, the company has no commitments that should be disclosed.
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
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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 at June 30, 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
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 (2019) [Qiong0271 Minchu No.5185] Notice of
Acceptance of The Case issued by the court. The case is still pending. This claim, the company has been in 2008
full write-off.
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.
(2) For no major contingencies disclosed, explain reasons
The Company has no major contingencies should be disclosed
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
3. Other
XV. Post balance sheet events
1. Major non-adjustment events: nil
2. Profit distribution: nil
3. Sales return: nil
4. Other post balance sheet events: nil
XVI. Other significant events
1. Correction of accounting errors in previous periods: nil
2. Debt reorganization: nil
3. Assets exchange
(1) Non-monetary assets exchange: nil
(2) Other assets exchange: nil
4. Annuity plan: nil
5. Termination of operation: nil
6. Segment information: nil
7. Major trading and items shows influence on investors’ decision-making: nil
8. Other: nil
XVII. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1)Disclosure of account receivables by category
In RMB/CNY
Ending balance Beginning balance
Category Provision for bad Book Provision for bad
Book balance Book balance Book value
debt value debt
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Provisi
Amoun Amoun Amoun Amoun Provisi
Ratio on Ratio
t t t t on ratio
ratio
Including:
Accounts receivable
with provision for 204,91 100.00 109,76 53.57 95,154. 420,84 100.00 109,76
26.08% 311,083.92
bad debts based on 9.84 % 5.83 % 01 9.75 % 5.83
portfolios
Including:
204,91 100.00 109,76 53.57 95,154. 420,84 100.00 109,76
Total 26.08% 311,083.92
9.84 % 5.83 % 01 9.75 % 5.83
Accounts receivable with provision for bad debts made separately: nil
Provision for bad debt by portfolio: nil
If the bad debt provision of an account receivable is withdrawn according to the general model of expected credit loss, please refer to
the disclosure method of other receivables to disclose the relevant information of bad debt provision
□ Applicable √ Not applicable
Released by account age
In RMB/CNY
Account age Ending balance
Within 1 year (including 1 year) 111,851.84
2,259.00
1 year to 2 years
566.00
2 years to 3 years
Over 3 years 90,243.00
785.00
3 years to 4 years
18,633.00
4 years to 5 years
Over 5 years 70,825.00
Total 204,919.84
(2) Provision, reversal or recovery of provision for bad debts in the period: nil
(3)Account receivable actually charge off in the period: nil
(4)Top five accounts receivable in terms of ending balance collected by the debtor
In RMB/CNY
Ending balance of Proportion in the total accounts Ending balance of the bad
Name of entity
account receivable receivable at period-end debt provision
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Shanghai Hecheng International
63,857.66 31.16% 3,558.30
Travel Service Co., Ltd.
Guangzhou Design Institute 38,980.00 19.02% 38,980.00
Tianjin Watermelon Tourism
22,516.62 10.99% 3,566.61
Limited Liability Company
Yangpu Huayu Road & Bridge
18,633.00 9.09% 9,316.50
Technology Co., Ltd.
China International Travel
13,540.20 6.61% 13,540.00
Service (Beijing)
Total 157,527.48 76.87%
(5)Account receivable that are terminated due to financial assets transfer: nil
(6)Assets and liabilities resulted by account receivable transfer and continues involvement: nil
2. Other account receivable
In RMB/CNY
Item Ending balance Beginning balance
Other account receivable 385,492.93 571,744.52
Total 385,492.93 571,744.52
(1) Interest receivable
1) Classification of interest receivable: nil
2) Important overdue interest: nil
3) Provision for bad debt:
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category: nil
2) Significant dividend receivable with over one year account age: nil
3) Provision for bad debt:
□ Applicable √ Not applicable
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
(3) Other account receivable
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
Social insurance and housing provident funds 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) Provision for bad debt:
In RMB/CNY
First stage Second stage Third stage
Expected credit Expected credit loss for Expected credit loss for the
Provision for bad debt Total
loss in next 12 the whole duration (no whole duration (credit
months credit impairment) impairment has occurred)
Balance as of 1 Jan. 2020 30,091.82 30,091.82
Balance as of January 1.
—— —— —— ——
2020 in current period
Balance as of June 30, 2020 30,091.82 30,091.82
Change of the book balance for major amount changed in loss provision
□ Applicable √ Not applicable
Released by account age
In RMB/CNY
Account age Ending balance
Within 1 year (inclusive) 413,348.75
Over 3 years 2,236.00
Over 5 years 2,236.00
Total 415,584.75
3) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB/CNY
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Beginning Amount changed in the period
Category Ending balance
balance Accrual Reversal or switch-back Charge off Other
Other account
30,091.82 30,091.82
receivable
Total 30,091.82 30,091.82
Including major amount reversal or switch-back in the period: nil
4) Other receivables actually charge off in the period: nil
5) Top five other accounts receivable in terms of ending balance collected by the debtor
In RMB/CNY
Proportion in total Ending balance of
Name of entity Nature Ending balance Account age amount of other accounts the bad debt
receivable at period-end provision
Bright moon pavilion
Utility bills 87,323.92 Within 1 year 21.01% 3,356.74
music restaurant
Sanya suburban
Litigation fee 68,562.00 Within 1 year 16.50% 3,428.10
people's court
Personal social Advance
45,784.79 Within 1 year 11.02% 2,468.92
insurance premium payment
Guo Yubo Petty cash 38,300.26 Within 1 year 9.22% 4,718.33
Chen Gang Petty cash 34,340.20 Within 1 year 8.26% 3,949.84
Total -- 274,311.17 -- 66.01% 17,921.93
6) Account receivables related to government subsidies: nil
7) Other receivable for termination of confirmation due to the transfer of financial assets: nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved: nil
3. Long-term equity investments
In RMB/CNY
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
subsidiaries
Total 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
(1) Investment in subsidiaries
In RMB/CNY
Beginning Increase/decreased in the period Ending Ending balance
Investee balance (Book Additional Capital Provision for balance (Book of the provision
Other
value) investment reduction impairment value) for impairment
Hainan Wengao
Tourist Resources
1,000,000.00 1,000,000.00
Development Co.,
Ltd.
Total 1,000,000.00 1,000,000.00
(2) Investment for joint venture and associated enterprise: nil
(3) Other description: nil
4. Operating revenue and operating cost
In RMB/CNY
The period Last period
Item
Revenue Cost Revenue Cost
Primary business 4,089,491.05 4,815,416.65 12,671,008.66 5,277,216.15
Other businesses 892,380.95 237,261.78 1,570,952.38 237,261.78
Total 4,981,872.00 5,052,678.43 14,241,961.04 5,514,477.93
Revenue:
In RMB/CNY
Contract type 1# Division 2# Division Total
Product type 4,089,491.05 4,089,491.05
Including:
Room income 3,471,155.97 3,471,155.97
Including:
Hainan 4,089,491.05 4,089,491.05
Including:
Tourism and catering services 4,089,491.05 4,089,491.05
Including:
Including:
Including:
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Including:
Total 4,089,491.05 4,089,491.05
Information relating to performance obligation: nil
5. Investment income: nil
6. Other: nil
XVIII. Supplementary information
1. Breakdown of current non-recurring profits and losses
√ Applicable □ Not applicable
In RMB/CNY
Item Amount Remark
Profit or loss from disposal of non-current assets -19,129.52 Loss of scrapped fixed assets
Government grants included in the current profit or loss
Rewards for development of inbound tourism market
(except for government grants closely related to the
262,840.35 supporting by the government and tax credit for the
enterprise business, obtained by quota or quantity at
VAT input tax surcharge
unified state standards)
Other non-operating revenue and expenses except for Compensation for early termination of the contracts
-327,406.38
the above-mentioned items and other revenue
Other income
Total -83,695.55 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Earnings per share
Profit during the reporting period Weighted average ROE Basic Diluted
EPS(RMB/Share) EPS(RMB/Share)
Net profits attributable to ordinary
-9.23% -0.0182 -0.0182
shareholders of the Company
Net profits attributable to ordinary
shareholders of the Company after deduction -9.11% -0.0180 -0.0180
of non-recurring profits or losses
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
3. Accounting difference between IFRS and CAS
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute, listed name of the institute : nil
4. Other
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司公限有份股心中游旅海东大南海 2020 文全告报度年半年
Section XII. Documents available for references
I. Text of Semi-Annual Report 2020 with signature of the legal person;
II. Financial statement with signature and seal of legal person, person in charge of accounting works and person in
charge of accounting organ (accountant in charge);
III. The original manuscripts of all documents and announcements of the Company publicly disclosed on website
appointed by CSRC;
IV. Other relevant documents
The above said documents are prepared in the security department of the Company
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Chairman: Yuan Xiaoping
20 August 2020
126
