司公限有份股心中游旅海东大南海 2020 文全告报度年年
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.
Annual Report 2020
Disclosure Date: 24 April 2021
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 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
Section I Important Notice, Content and Interpretation....................................................................... 4
Section II Company Profile and Main Financial Indexes.................................................................... 4
Section III Summary of Company Business........................................................................................ 9
Section IV Discussion and Analysis of Operation..............................................................................11
Section V Important Events................................................................................................................23
Section VI Particular about Changes in shares and shareholders.......................................................34
Section VII Preferred Stock................................................................................................................42
Section VIII Convertible Bonds......................................................................................................... 43
Section IX Particulars about Directors, Supervisors, Senior Executives and Employees................. 44
Section X Corporate Governance.......................................................................................................53
Section XI Corporate Bond................................................................................................................ 60
Section XII Financial Report..............................................................................................................61
Section XIII Documents available for reference.............................................................................. 174
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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
Rules of Listing Refers to Rules Governing the Listing of stocks on Shenzhen Stock Exchange
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)
Board of Directors (BOD) Refers to
Co., Ltd.
Supervisory Committee of Hainan Dadonghai Tourism Centre
Supervisory Committee Refers to
(Holdings) Co., Ltd.
Luoniushan, the largest shareholder Refers to Luoniushan Co., Ltd.
Yuan Refers to CNY/RMB
In the reporting period, the reporting
Refers to 1 January 2020 to 31 December 2020
period
Major Risk Warning
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.
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 2021, 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 文全告报度年年
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Dadonghai -A, Dadonghai -B Stock code 000613, 200613
Short form of the Stock
N/A
after changed
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
Hainan Dadonghai Tourism Centre (Holdings) Co.,Ltd.
Company
Foreign name of short form
DADONGHA
of the Company
Legal representative Yuan Xiaoping
Registrations add. Dadonghai Sanya
Code for registrations add 572021
Offices add. Dadonghai Sanya
Codes for office add. 572021
Company website ——
Email hnddhhn@21cn.com
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
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times, Hong Kong Commercial Daily
Website for annual report publish appointed by
www.cninfo.com.cn
CSRC
Preparation place for annual report Security department of the Company
IV. Registration changes of the Company
Organization code Unified social credit code 91460000201357188U
Changes of main business since listing No changes
1. The Company listed A-stock in January 1997, and 96.327 million A-stock shares
are held by Hainan Dadonghai Tourism Centre Group Co., ltd., a 26.46% in total
share capital of the Company and is the first majority shareholder of the Company
also.
2. On 25 December 1998, the shares held by Hainan Dadonghai Tourism Centre
Group Co., ltd were transfer to Sanya ABC through the courts of justice, and after
obtained the shares in December 1998, Sanya ABC entrust wholly-owned
subordinate enterprise Sanya Bank-Agriculture Industrial Development Corp. to hold
the aforesaid shares, than the first majority shareholder of the Company comes to
Sanya Bank-Agriculture Industrial Development Corp.
3. On 12 December 2000, the aforesaid equity was stripped to name of China
Previous changes for controlling
Great-wall Assets Management Corporation, the first majority shareholder of the
shareholders
Company.
4. On 19 September 2001, China Great-wall Assets Management Corporation entered
into “Equity Transfer Agreement” with Haikou Food Co., Ltd for 60 million shares
transfer; and gained approval of [2002] No.: 430 from Ministry of Finance dated 18
October 2002, than the first majority shareholder of the Company comes to Haikou
Food Co., Ltd.
5. On 24 April 2008, Luoniushan Co., Ltd. entered into the “Statement”, confirmed
that the 60 million shares held by Haikou Food Co., Ltd. were held on behalf of
Luoniushan Co., Ltd., the shares’ ownership have been transfer dated 29 January
2010. Therefore, Luoniushan Co., Ltd. comes to the first majority shareholder of the
Company.
V. Other relevant information
CPA engaged by the Company
Name of CPA BDO Shu Lun Pan Certified Public Accountants LLP
Offices add. for CPA 4/F, No. 61 Nanjing Rd. (E), Shanghai
Signing Accountants Li Jinhua, Zhu Meirong
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes over last year
2020 2019 2018
(+,-)
Operating income (RMB) 15,511,989.37 25,935,405.44 -40.19% 29,515,592.33
Net profit attributable to shareholders
-11,567,888.97 756,721.46 -1,628.69% 653,282.19
of the listed company (RMB)
Net profit attributable to shareholders
of the listed company after deducting
-12,134,958.36 -1,078,091.71 -1,025.60% 816,346.09
non-recurring gains and losses
(RMB)
Net cash flow arising from operating
-6,729,267.98 4,713,661.51 -242.76% 6,783,893.26
activities (RMB)
Basic earnings per share
-0.0318 0.0021 -1,614.29% 0.0018
(RMB/Share)
Diluted earnings per share
-0.0318 0.0021 -1,614.29% 0.0018
(RMB/Share)
Weighted average ROE -15.91% 0.97% -16.88% 0.84%
Year-end of Changes over end of
Year-end of 2019 Year-end of 2018
2020 last year (+,-)
Total assets (RMB) 97,441,339.20 87,521,184.25 11.33% 88,197,118.07
Net assets attributable to shareholder
66,918,714.99 78,486,603.96 -14.74% 77,788,696.29
of listed company (RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years is
negative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a going
concern
□Yes √No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
√Yes □ No
Item 2020 2019 Note
Catering and accommodation
Operating income (RMB) 15,511,989.37 25,935,405.44
industry
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
Amount deducted from
2,118,095.25 3,153,028.62 Income from leasing
operating income (RMB)
Operating income after Income from catering and
13,393,894.12 22,782,376.82
deduction (RMB) accommodation
VII. 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.
VIII. Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 3,428,913.73 1,552,958.27 3,377,869.34 7,152,248.03
Net profit attributable to shareholders of the listed
-2,490,007.13 -4,141,443.29 -2,089,502.41 -2,846,936.14
company
Net profit attributable to shareholders of the listed
-2,520,079.94 -4,027,674.93 -2,560,710.14 -3,026,493.35
company after deducting non-recurring gains and losses
Net cash flow arising from operating activities -1,480,953.35 -3,308,237.57 -2,314,610.54 374,533.48
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2020 2019 2018 Note
Gains/losses from the disposal of non-current -148,457.47 2,151.45 -29,691.26 Loss from fixed assets
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
asset (including the write-off that accrued for disposal
impairment of assets)
Rewards for
Government subsidy calculated into current
development of inbound
gains and losses(while closely related with
tourism market
the normal business of the Company,
817,825.34 292,643.89 supporting by the
excluding the fixed-amount or
government and tax
fixed-proportion governmental subsidy
credit for the VAT input
according to the unified national standard)
tax surcharge
Other non-operating income and expenditure
-102,298.48 1,540,017.83 -133,372.64
except for the aforementioned items
Other gains/losses items that meet the
definition of extraordinary gains/losses
Total 567,069.39 1,834,813.17 -163,063.90 --
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, with the continuous increase in the number of
local hotels, family hotels, and home-stays, as well as the impact of force majeure and uncertain factors such as
the COVID-19 epidemic, supply has far exceeded demand, industry competition has become increasingly fierce,
and operating pressure remains unabated.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Decreased 488,500 yuan compared with the end of last year with 100% declined, mainly because
Construction in progress
the construction in progress was carried forward to long-term deferred expenses.
Decreased 4.4985 million yuan compared with the end of last year with 60.60% declined, mainly
Monetary funds because: (1)revenue declined sharply due to the impact of epidemic, and has a severe losses; (2)
more investment in hotel renovation and remodeling
Increased 118,200 yuan compared with the end of last year with 38.00% up, mainly because the
Account receivable
account receivable ready for settlement increased;
Increased 1.7557 million yuan compared with the end of last year with 690.51% up, mainly due
Inventory
to the purchase of liquor;
Increased 1.403 million yuan compared with the end of last year with 54.50% up, mainly
Other current assets
because the input VAT to be deducted increased;
Increased 13.4375 million yuan compared with the end of last year with 116.64% up, mainly due
Long-term deferred expenses
to the carry over for hotel renovation in the Period
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
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,
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 文全告报度年年
Section IV Discussion and Analysis of Operation
I. Introduction
During the reporting period, the global outbreak of the COVID-19 caused severe damage to the tourism industry
and tourism service industry. Due to the severe impact of the epidemic, the company's main operating income
dropped sharply and resulted in operating losses. In the reporting period, the Company achieved operation income
from main business of 15.112 million yuan, decrease of 10.4234 million yuan compared with last year, a 40.19%
down; achieved an operation profit loss of 11.3171 million yuan, an increase of 10.5317 million yuan over last
year’s loss, losses increased by 1340.94%; net non-operating income and expenditure amounted to -250800 yuan,
decreased by 1.7929 million yuan compared with last year, an increase of 116.26; the net profit loss amounted to
11.5679 million yuan, an increase in loss of 12.3247 million yuan over last year, losses increased by 1628.59%.
Main works are as:
1. Continue to strengthen the construction of hotel software and hardware equipment and facilities to improve
product quality and competitiveness
During the reporting period, the company made full use of the off-season operation during the epidemic period,
and carried out a comprehensive design and decoration and renovation to the hotel's B building and its annexes,
building C, conference halls, staff canteens, offices, parking lots and pavements, as well as corresponding
equipment and facilities. After renovation and adjustment, 46 new guest rooms have been newly increased, the
number of guest rooms was increased, the scale of operation was expanded, the hardware operating environment
of hotel guest rooms, conference halls, parking lots, landscaping, etc., as well as the working environment of staff
canteen and offices were improved, which have effectively improved the quality and comprehensive
competitiveness of the hotel’s products and laid the foundation for the hotel's subsequent business environment.
2. Be market-oriented and actively expand domestic marketing channels
During the reporting period, the first two quarters were severely hit by the epidemic, and the company's hotel
operations were bleak. The overseas market has almost stagnated so far. In the third quarter, hotel operations
began to pick up gradually. In response, the company’s hotel formulated a flexible marketing mechanism, while
consolidating old customers, actively expanded domestic marketing channels, strengthened cooperation with
well-known online sales platforms such as Ctrip and direct sales travel agencies in first- and second-tier cities,
effectively increased the network, conference teams and travel agencies individual traveler sales, which filled the
overseas customer source market that has been stagnant due to the impact of the epidemic, and successfully
completed the transformation that was dominated by domestic market sales.
3. Reduce operating costs scientifically and reasonably, and improve the internal control system
During the reporting period, the company continued to strengthen cost control and strictly and rationally
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
controlled various expenses. The implementation of fixed work posts and the scientific and reasonable allocation
of personnel improved execution and work efficiency, and reduced labor costs. Frequent inspections and frequent
repairs eliminated waste of resources and improved the rationality of procurement costs and the cost-effectiveness
of revenue. At the same time, the Company continued to improve the internal control system, strengthen
regulation and implementation of internal control system, strengthen the effective implementation of internal
control work, reduce risks and consumption, increase revenue and control expenditures, emphasize production
safety and improve operational efficiency.
In 2021, 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
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of Operation”
2. Revenue/income and cost
(1)Constitute of operating income
In RMB
2020 2019
Increase/decrease
Ratio in operating Ratio in operating
Amount Amount y-o-y (+,-)
income income
Total operating
15,511,989.37 100% 25,935,405.44 100% -40.19%
income
According to industries
Tourism catering
13,393,894.12 86.35% 22,782,376.82 87.84% -41.21%
service
Other business 2,118,095.25 13.65% 3,153,028.62 12.16% -32.82%
According to products
Room revenue 11,721,046.96 75.56% 20,039,795.13 77.26% -41.51%
Catering
entertainment 1,672,847.16 10.78% 2,742,581.69 10.58% -39.00%
revenue
Other revenue 2,118,095.25 13.65% 3,153,028.62 12.16% -32.82%
According to region
Hainan area 15,511,989.37 100.00% 25,935,405.44 100.00% -40.19%
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
(2) 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/decrea Increase/decrea Increase/decrease
Operating Gross profit
Operating cost se of operating se of operating of gross profit
income ratio
income y-o-y cost y-o-y ratio y-o-y
According to industries
Tourism catering
13,393,894.12 12,293,939.28 8.21% -41.21% 15.89% -45.23%
service
Other business 2,118,095.25 474,523.56 77.60% -32.82% 0.00% -7.35%
According to products
Room revenue 11,721,046.96 11,309,594.77 3.51% -41.51% 23.22% -50.69%
Catering
entertainment 1,672,847.16 984,344.51 41.16% -39.00% -31.87% -6.70%
revenue
Other business 2,118,095.25 474,523.56 77.60% -32.82% 0.00% -7.35%
According to region
Hainan area 15,511,989.37 12,768,462.84 17.69% -40.19% 15.21% -39.58%
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
(3) Income from physical sales larger than income from labors
□ Yes √ No
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Industry classification
In RMB
2020 2019
Industry Increase/decrea
Item Ratio in operation Ratio in operation
classification Amount Amount se y-o-y (+,-)
cost cost
Tourism catering Raw material 982,975.27 7.70% 1,389,703.69 12.54% -4.84%
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
service
Tourism catering Salary
1,524,250.26 11.94% 1,984,548.41 17.91% -5.97%
service welfare
Tourism catering Social
134,953.30 1.06% 384,039.29 3.47% -2.41%
service security fund
Tourism catering Water and
1,077,138.88 8.44% 1,314,413.76 11.86% -3.42%
service electricity
Depreciation
Tourism catering
and 5,698,927.05 44.63% 3,172,103.74 26.62% 16.01%
service
amortization
Tourism catering
Repair cost 412,609.44 3.23% 587,696.20 5.30% -2.07%
service
Tourism catering
Laundry fee 376,190.00 2.95% 585,680.00 5.28% -2.34%
service
Tourism catering
Total cost 12,768,462.84 100.00% 11,082,766.94 100.00% 0.00%
service
Note: nil
(6) Whether the changes in the scope of consolidation in Reporting Period
□ Yes √ No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 4,699,035.43
Proportion in total annual sales volume for top five clients 30.29%
Ratio of related parties in annual total sales among the top five
0.00%
clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
Shanghai Hecheng International Travel Service Co.,
1 2,667,748.88 17.19%
Ltd.
2 Sanya Haolide International Travel Service Co., Ltd. 687,372.00 4.43%
3 Sanya Youyi International Travel Agency Co., Ltd. 625,492.00 4.03%
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
Tianjin Watermelon Tourism Limited Liability
4 445,314.66 2.87%
Company
Suzhou Branch of Beijing Tongcheng Huading
5 273,107.89 1.76%
International Travel Agency Co., Ltd.
Total -- 4,699,035.43 30.29%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 7,362,828.56
Proportion in total annual purchase amount for top five suppliers 71.23%
Ratio of related parties in annual total sales among the top five
0.00%
suppliers
Information of top five suppliers of the Company
Percentage of total annual
Serial Suppliers Purchase amount (RMB)
procurement
Sichuan Langxing Tiancheng Trading
1 1,956,360.00 18.93%
Co., Ltd.
Guangdong Wood Source Furniture
2 1,726,220.74 16.70%
Co., Ltd.
Sanya Yunfang Food Distribution Co.,
3 1,675,873.50 16.21%
Ltd.
Sanya Power Supply Bureau of Hainan
4 1,570,713.03 15.20%
Power Grid
5 Sanya Sino French Water Co., Ltd. 433,661.29 4.20%
Total -- 7,362,828.56 71.23%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
3. Expenses
In RMB
2020 2019 Increase/decrease y-o-y (+,-) Note of major changes
Sales expense 4,853,722.93 5,606,474.47 -13.43%
Management
9,026,426.56 9,772,412.86 -7.63%
expense
The financial interest for 19.79 million yuan
Financial
435,449.46 -175,760.38 286.94% bank loans is shown as a period expenses in
expense
the Period
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
4. R&D expenses
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2020 2019 Increase/decrease y-o-y (+,-)
Subtotal of cash in-flow from
16,246,729.46 29,918,529.05 -45.70%
operation activity
Subtotal of cash out-flow from
22,975,997.44 25,204,867.54 -8.84%
operation activity
Net cash flow arising from
-6,729,267.98 4,713,661.51 -242.76%
operating activities
Subtotal of cash in-flow from
8,300.00 68,870.00 -87.95%
investment activity
Subtotal of cash out-flow from
13,741,025.28 12,723,946.92 7.99%
investment activity
Net cash flow arising from
-13,732,725.28 -12,655,076.92 8.52%
investment activity
Subtotal of cash in-flow from
19,791,474.22
financing activity
Subtotal of cash out-flow from
3,827,961.10
financing activity
Net cash flow arising from
15,963,513.12
financing activity
Net increase of cash and cash
-4,498,480.14 -7,941,415.41 -43.35%
equivalent
Main reasons for y-o-y major changes in aspect of relevant data
□ Applicable √ Not applicable
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable √ Not applicable
III. Analysis of the non-main business
□ Applicable √ Not applicable
16
司公限有份股心中游旅海东大南海 2020 文全告报度年年
IV. Analysis of assets and liability
1. Major changes of assets composition
Implements the new revenue standard or new lease standard for the first time from 2020 and adjusts the financial statements at the
beginning of the year of implementation
√Applicable □ Not applicable
In RMB
Year-end of 2020 Year-begin of 2020
Ratio in Ratio
Ratio in Notes of major changes
Amount total Amount changes
total assets
assets
The bank loans during the reporting
period, serious losses due to the
Monetary funds 2,924,459.75 3.00% 7,422,939.89 8.48% -5.48% epidemic, and payment for the hotel
renovation work, than the monetary
funds drops dramatically
Account
429,303.32 0.44% 311,083.92 0.36% 0.08%
receivable
Purchase of a batch of liquor during
Inventory 2,009,928.83 2.06% 254,257.19 0.29% 1.77%
the reporting period
Investment real
7,435,433.31 7.63% 7,909,956.87 9.04% -1.41%
estate
Fix assets 34,694,023.75 35.61% 35,075,195.98 40.08% -4.47%
Construction in
488,522.10 0.56% -0.56%
progress
Long-term
9,893,757.94 10.15% 10.15% Received a bank loans in the Period
loans
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Assets right restriction till end of reporting period
Nil
17
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 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 reporting period.
5. Application of raised proceeds
□ Applicable √ Not applicable
The Company has no application of raised proceeds in the reporting 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
18
司公限有份股心中游旅海东大南海 2020 文全告报度年年
VII. Analysis of main controlling company and stock-jointly companies
√ Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Main Register Operating Operating
Company name Type Total assets Net assets Net profit
business capital income profit
Hainan Wengao
Tourism Tourism
Subsidiar
Resources developme 1000000 1,000,454.19 1,000,454.19 0.00 -454.01 -454.01
y
Development nt
Co., Ltd.
Subsidiaries obtained and disposed during the reporting period
□ Applicable √ Not applicable
Explanation on main controlling and stock-jointly enterprise
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
1. Development trend of the industry in which the company is located and market competition pattern faced by the
company
Sanya is the only tropical seaside city in China with a world-leading eco-environment, and has a wonderful air
quality that can be numbered in China, it owns an abound marine resources with unique resource advantage.
Sanya has a geographical position advantage, and under the preferential policy support for the internationalization
of tourist island, off-shore duty-free and Hainan Free Trade Port/Free Trade Zone, with the improvement of
people’s life quality in recent years, and enhancement of tourism consumption consciousness as well as the smog
air and cold climate outside the island, the tourism market prospects has a good trend in Hainan. However, During
the reporting period, the COVID-19 epidemic had a impact, the global economic had a downturn, and the tourist
attractions across the country and neighboring countries had an increase, tourists had a diversion, and the number
of local hotels, family hotels and home-stays had continuous increases, supply far exceeds the demand, and the
market is becoming more competitive. Combined with the increasing level of local consumption, and soaring
operation costs and expenses from the staff wages in hotel industry, operation profit shrink, the downward
pressure on overall operation of the hotel industry continues to increase.
In the future work, the company will continue to strengthen the updating and transformation of the hotel’s
equipment and facilities, improve and upgrade the hardware and software equipment and facilities and the quality
of internal and external business environment, enhance the construction of enterprise culture and staff teams,
19
司公限有份股心中游旅海东大南海 2020 文全告报度年年
improve service level and service quality, actively expand the sales channels, make full use of the internet
platform, expand the sales network, increase the market share, and further improve the management level and core
competitiveness.
2. Future development plans and operation plan for year of 2021
(1) Market-oriented, continues to improve the quality management of the software equipment and facilities in the
Hotel, enhancing the hotel brand image, expanding market channel, and center with enterprises performance,
making the brand more bigger and stronger driven by pioneer and invent.
(2) Continue to expand financing channels, actively promote the restructuring works, enrich the industrial
construction, widen the company size, increased more profit points in order to strengthen the sustainability, stable
and healthily of the operation.
(3) Continue to perfect the corporate governance structure, standardize the management and operation, and
effectively control the risks.
3. Fund demands and use plan required for the future development of the Company
The Company utilizes owned funds or financing methods to raise the funds demanded for development, and
completes the development planning of the Company.
4. The risks may cause adverse effects on the future development strategy and realization of operation target of
the Company
(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) 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.
(3) Risks of HR
20
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Demand for talent in aspect of hotel sales and management are increasingly due to the constantly rise of hotel
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 improved 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
management and skill technicians.
(4) Operational risks of main business
With the continuous development of global tourism industry, the continuous rise of high and low grade hotels, the
continuous diversion of global tourist sources, as well as the impact of force majeure uncertainties such as the
COVID-19, the number of local hotels and guesthouse rooms is increasing, and the industry competition is
becoming more and more fierce. Furthermore, 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, continues to exploit financing channel, actively promote restructuring, expanding operation projects,
enrich the industrial structure for increasing the profit increasing point.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □ Not applicable
Basic
Recept
Reception Main content of the discussion and situation
Reception time Way ion Reception object
site information provided index of
type
investigation
Telephone Investor
The Individ Operation performance of the 3Q and
2020-10-09 communic Mr./Ms.Lin -
company ual disclosure date, no materials required
ation from Zhejiang
Telephone Investor Mr./Ms.
The Individ Lawsuit of the Company and no material
2020-10-21 communic Zhong from -
company ual required
ation Jiangsu
21
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Telephone Investor Mr./Ms. Commitments of share reform perform by the
The Individ
2020-11-05 communic Zhang from first majority shareholder of the Company, -
company ual
ation Chengdu and no material required
Telephone Investor
The Individ Annual operation performance of the
2020-11-17 communic Mr./Ms.Li from -
company ual Company and no material required
ation Shenzhen
Telephone Investor Mr./Ms.
The Individ Impact of the epidemic on the company’s
2020-12-10 communic Zhuang from -
company ual operation and no material required
ation Fujian
Telephone Investor Mr./Ms. Annual operation performance of the
The Individ
2020-12-30 communic Zhang from company and impact of the new regulations -
company ual
ation Guangdong on the company, no material required
Telephone Investor Mr./Ms.
The Individ Impact of the new regulations on the
2020-12-31 communic Shu from -
company ual company, no material required
ation Shanghai
Reception (times) 32
Number of hospitality 0
Number of individual reception 32
Number of other reception 0
Disclosed, released or let out major undisclosed
No
information
22
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
According to the auditing reports issued by certified public accountants, the net income realized in nearly three years (including the
reporting period) was used to make up the losses in the previous year; the undistributed profit during this reporting remained a minus.
The Company did not take profit allocation nor capitalization of capital reserve during the reporting period.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Ratio of the total
Ratio of the cash
Net profit Ratio of the cash cash bonus (other
bonus by other
attributable to bonus in net Proportion ways included) in
ways in net profit Total
Amount common stock profit attributable for cash net profit
attributable to cash
Year for for cash shareholders of to common stock bonus by attributable to
common stock bonus
bonus bonus listed company shareholders of other common stock
shareholders of (includin
shares (tax in listed company ways(i.e. shareholders of
listed company g other
included) consolidation contained in share listed company
contained in ways)
statement for consolidation buy-backs) contained in
consolidation
bonus year statement consolidation
statement
statement
2020 0.00 -11,567,888.97 0.00% 0.00 0.00% 0.00 0.00%
2019 0.00 756,721.46 0.00% 0.00 0.00% 0.00 0.00%
2018 0.00 653,282.19 0.00% 0.00 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for 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 year.
23
司公限有份股心中游旅海东大南海 2020 文全告报度年年
III. Implementation of commitment
1. 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
Com Com
com Imple
Promis mitm mitm
Commitments Content of commitments menta
e mit ent ent
tion
date term
ment
s
On May 30, 2007, Luoniushan Co., Ltd. made The
commitments in the Company’s "Instructions for origin
reform of non-tradable shares" (Revision) and al
Com
mit "Instructions for reform of non-tradable shares" plans
ment (Abstract of revision) that in view of Dadonghai of
s for
Luoniu Company’s losses in successive years and on the materi
Shar 2017 6
Commitments for shan verge of delisting, in order to reverse the al
e -06-2 mont
Share Merger Reform Co., company's business difficulties, improve assets
Mer 7 hs
Ltd. profitability and recover the continuous business reorga
ger
capacity, Luoniushan Co., Ltd., the controlling nizati
Refo
shareholder of Dadonghai Company made on
rm
commitments to actively seek restructuring was
parties to reorganize the assets of Dadonghai termin
Company at the appropriate time. ated
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 commenced suspension of trading from the opening session on 15
February 2017 as it planned to fulfill its commitments. On 13 August 2017, 12 proposals
If the commitments is not fulfilled on
relating to Material Asset Acquisition and Connected Transaction Report (Plan) of Hainan
time, shall explain the specify reason
Dadonghai Tourism Centre (Holdings) Co., Ltd. were denied at the 11th extraordinary general
and the next work plan
meeting of the 8th session of board of directors of the Company. On 15 August 2017, the
Company announced to terminate this restructuring relating to material assets acquisition, and
24
司公限有份股心中游旅海东大南海 2020 文全告报度年年
the stock of the Company commenced trading since 17 August 2017.
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 for the implementation of the
restructuring commitment was changed to December 26, 2019. On December 22, 2017, the
company’s fourth extraordinary shareholders’ meeting in 2017 did not approve the proposal.
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 not disclosed
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√Applicable □ Not applicable
(i) Changes in significant accounting policies
(1) Implement the Accounting Standards for Business Enterprises No. 14 -- Revenue (revised in 2017) (hereinafter
referred to as the "new revenue standards")
25
司公限有份股心中游旅海东大南海 2020 文全告报度年年
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 14 - Revenue in 2017.
The revised standard stipulates that the first implementation of the standard should adjust the amount of retained
earnings and other related items in the financial statements at the beginning of the year according to the
cumulative impact, without adjusting the information for comparable periods.
The Company implement the new revenue standards since January 1, 2020. In accordance with the provisions of
the Standards, the Company will only adjust the amount of retained earnings at the beginning of 2020 and other
related items in the financial statements for the cumulative impact of contracts that have not been completed at the
first execution date, not the comparative financial statements.
(2) Implementation of Interpretation of Accounting Standards for Business Enterprises No. 13
The Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No. 13
(Finance and Accounting [2019] No. 21, hereinafter referred to as "Interpretation No. 13") on December 10, 2019,
which took effect on January 1, 2020 and does not require retroactive adjustment.
① Recognition of the affiliated party
Interpretation No. 13 makes it clear that the following circumstances constitute an affiliated party: a joint venture
or joint venture between the enterprise and other members of the enterprise group (including the parent company
and subsidiaries); Joint ventures of an enterprise and other joint ventures or associates of an enterprise. In addition,
Interpretation No. 13 also makes it clear that only two or more enterprises that are materially affected by one party
do not constitute affiliated parties, and adds that joint ventures include joint ventures and their subsidiaries, and
joint ventures include joint ventures and their subsidiaries.
② Definition of business
Interpretation No. 13 improves the three elements of business composition, elaborates the judgment conditions of
business composition, and introduces the choice of "concentration test" to simplify the judgment of whether a
portfolio acquired under different control constitutes business to a certain extent.
The Company has implemented Interpretation No. 13 since January 1, 2020, and the comparative financial
statements have not been adjusted. The Company has not implemented Interpretation No. 13, which has had a
significant impact on the Company's financial position and operating results
(3) Implementation of the Interim Provisions on Accounting Treatment for Carbon Emission Trading
The Ministry of Finance issued the Interim Provisions on Accounting Treatment of Carbon Emission Trading
([2019] No. 22) on December 16, 2019, which is applicable to relevant enterprises of key emitters that carry out
carbon emission trading business in accordance with the Interim Measures on the Administration of Carbon
Emission Trading and other relevant provisions (hereinafter referred to as key emitters). The regulation will take
effect on January 1, 2020, and key emission enterprises should apply the regulation by adopting the future
application method.
The Company has implemented this provision since January 1, 2020, and the comparative financial statements are
not adjusted. The implementation of this provision has not had a significant impact on the Company's financial
position and operating results.
26
司公限有份股心中游旅海东大南海 2020 文全告报度年年
(4) Implement the COVID-19 Outbreak Related Rental Concession Accounting Rules
On June 19, 2020, the Ministry of Finance (MOF) issued the Accounting Regulations on the Treatment of Rent
Concessions Related to COVID-19 (Finance and Accounting [2020] No. 10), which has came into force on June
19, 2020, allowing enterprises to adjust the relevant rent concessions that occurred between January 1 2020 to the
implementation date of this regulation. According to this regulation, enterprises can choose to adopt a simplified
method for accounting treatment of rent concessions, such as rent remission and deferred payment, which are
directly caused by COVID-19.
The Company has implemented this provision since January 1, 2020, and the comparative financial statements are
not adjusted. The implementation of this provision has not had a significant impact on the Company's financial
position and operating results.
(ii) Changes in accounting estimates
There was no change in the principal accounting estimates of the Company during the reporting period.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
There was no major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
There was no change in consolidation statement’s scope of the Company in the Period.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm BDO Shu Lun Pan Certified Public Accountants LLP
Remuneration for domestic accounting firm (in 10 thousand
39
Yuan)
Continuous life of auditing service for domestic accounting
10
firm
Name of domestic CPA Li Jinhua, Zhu Meirong
Continuous fixed number of year for the auditing service
3
provided by CPA in domestic CPA Firms
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
□Applicable √Not applicable
27
司公限有份股心中游旅海东大南海 2020 文全告报度年年
X. Facing delisting after annual report disclosure
√Applicable □ Not applicable
After the disclosure of Annual Report 2020 under the name of the Company, trading of the stock of the
Company was implemented delisting risk warning. If one of the circumstances specified in Article 14.3.11 of
the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange occurs in the year of 2021, the
trading of the stock may be terminated after the disclosure of the Annual Report 2021.
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
There was no bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitration of the Company
√Applicable □ Not applicable
Amo
Whet
unt
her
invol
to
ved Litigation Execution
form Litigation Date of
Basic situation of litigation (in (arbitration) trial of litigation
an (arbitration) disclosu Disclosure index
(arbitration) 10 results and (arbitration)
estim progress re
thous impact judgment
ated
and
liabil
Yuan
ity
)
The court of The company has
Announcement on
first instance applied to the
ruled against the Significant
court for
company’s Litigation
enforcement, but
claim, and the (Announcement
there is no result 4 June
company filed No.: 2019-017,
Hainan Dadonghai Tourism Centre yet. Hainan 2019,
an appeal. The The
Group Co., Ltd. borrowed 2.76 13 June No.:2020-021,
court of second Dadonghai company
million yuan and 4.55 million yuan 2020, No.: 2020-025 and
instance ruled to Tourism Centre has applied
from Hainan Dadonghai Tourism 16
revoke the for court No.: 2020-027)
Centre (Holdings) Co., Ltd. on 731 N Group Co., Ltd. Septem
judgment of enforcemen published on
October 16, 1996 and December has not repaid the ber
first instance, t, which is Securities Times,
26, 1996 respectively. And the loan to the 2020
supporting the still
company filed a lawsuit in court for and 22 Hong Kong
company’s company, and the pending.
the 7.31 million yuan outstanding. October Commercial Daily
claim. The company is
2020
company has and
currently unable
applied for court www.cninfo.com.c
to determine the
enforcement, n.
which is still impact of this
pending. litigation on the
28
司公限有份股心中游旅海东大南海 2020 文全告报度年年
company's
current or future
profits.
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 yuan. On May 17,
2018, the Sanya Local Taxation The company has
Bureau deducted the money from non-operation
the deposit of the company's South The first trial revenue of
Enforcemen
China Hotel. According to the 28.6 ruling upheld 286,200 yuan
N t has been - -
agreement of the "Responsibility 2 the company’s increased, which
completed
Letter of the Target Management of claim affected the profit
South China Hotel" signed by of the Period by
South China Hotel and Sun 286,200 yuan
Hongjie, Sun Hongjie should 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. 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.
XIII. Penalty and rectification
□ Applicable √ Not applicable
There was no penalty and rectification for the Company in reporting period.
29
司公限有份股心中游旅海东大南海 2020 文全告报度年年
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. 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.
XVI. Major related party transaction
1. Related party transaction with routine operation concerned
√Applicable □Not applicable
Whet
Tradi
her
Relat ng
ed over Cleari Avail
Propo limit
Type Conte transa the ng able Date Index
Relat rtion
of nt of Pricin ction appro form
Relati ed in appro simila of of
Related relate relate g amou for
onshi transa simila ved
party d d princi nt ved relate r disclo discl
p ction r
transa transa ple (in 10 (in 10 d
price transa limite marke sure osure
ction ction thous transa
ctions thous
and d or ction t price
Yuan) and
not
Yuan)
(Y/N)
Same Same
as the as the
First
Luoniu transa transa
major Consu Acco Mark Mark
shan 0.35 ction ction
ity mptio mmod et et 5.44 0 N - -
Co., % with with
share n ation price price
Ltd. non-r non-r
holder
elated elated
party party
Total -- -- 5.44 -- 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 total N/A
amount by types during the
reporting period
Reasons for major differences
N/A
between trading price and market
30
司公限有份股心中游旅海东大南海 2020 文全告报度年年
reference price
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
There was no related transactions by assets acquisition and sold for the Company in reporting period
3. Related transactions of mutual investment outside
□ Applicable √ Not applicable
There was no main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
There was no contact of related credit or debt for the Company in the reporting period
5. Other significant related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
There was no trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
There was no contract for the Company in reporting period
(3) Leasing
√Applicable □ Not applicable
Note of leasing
Item Tenant Lease life Term of lease
Shopping mall –Building Li Fuming 3 years 2019-11-01 to 2022-10-31
B in Hotel
31
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Ground floor of Hotel A Li Fuming 3 years 2019-02-28 to 2022-02-27
Seaside stall and wood Sanya Leda Food Management Co., Ltd. 5 years 2018-01-01 to 2022-12-31
house
Multi-functional meeting Li Fuming 5 years 2019-11-01 to 2024-10-31
room
Projects that bring profit and losses to the Company to more than 10% of the total profit in the reporting period
√Applicable □ Not applicable
Leasing The
assets impact Whether
Leasing Basis for
Name of involved of be
Leasin Lease Lease income determin
Name of the in the leasing related Associatio
g start terminati (in 10 ing the
lessor leasing amount (in income transacti n relation
assets date on date thousand leasing
party 10 on the ons
Yuan) income
thousand compan (Y/N)
Yuan) y
Sanya
Seasid
Leda
The e stall
Food 2018-01 2022-12 Increase
Compan and 653 120 Contract N N/A
Manage -01 -31 income
y wood
ment
house
Co., Ltd.
2. Major Guarantee
□Applicable √ Not applicable
The Company had no guarantee in the reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4.Significant contracts for daily operation
√Applicable □ Not applicable
Total amount Sales revenue
Progress of Account
Contracting of contract recognized during
Counter party Contract object the contract receivable
party (in 10 the current period
performance recovery
thousand and cumulatively
32
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Yuan)
Sichuan
The Langxing 53 degree liquor
195.64 100% N/A N/A
Company Tiancheng Qinghualang
Trading Co., Ltd.
The significant contract progress is materially different from the contract agreement and affects more than 30% of the contract
amount
□ Applicable √ Not applicable
5. Other significant contracts
□ Applicable √ Not applicable
There was no other significant contracts for the Company in reporting period
XVIII. Social responsibility
1. Social responsibilities: Nil
2. Execution of social responsibility of targeted poverty alleviation: Nil
3. Environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
□Yes √No
XIX. Explanation on other significant events
√Applicable □ Not applicable
The Lawyer’s Letter received by the Company 1: 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.
Found more in “Notice of Lawyer’s Letter received by Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.”
(Notice No.: 2016-016) released on Securities Times, Hong Kong Commercial Daily and Juchao Website dated 31
May 2016. The Company is still communicating and coordinating with Sanya Power Bureau in the above
mentioned event, but there is no results at present.
XX. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
33
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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
Bon Capitaliz
New
Proport us ation of Oth Subto
Amount shares Amount Proportion
ion shar public ers tal
issued
es reserve
I. Restricted shares 10,223,400 2.81% 10,223,400 2.81%
1. State-owned shares
2. State-owned legal
1,399,200 0.38% 1,399,200 0.38%
person’s shares
3. Other domestic shares 8,824,200 8,824,200 2.42%
Including: Domestic legal
8,824,200 2.42% 8,824,200 2.42%
person’s shares
Domestic natural person’s
shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
97.19
II. Unrestricted shares 353,876,600 353,876,600 97.19%
%
73.02
1. RMB ordinary shares 265,876,600 265,876,600 73.02%
%
2. Domestically listed 24.17
88,000,000 88,000,000 24.17%
foreign shares %
3. Overseas listed foreign
shares
4. Others
100.00
III. Total shares 364,100,000 364,100,000 100.00%
%
34
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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
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
Number of Number Number of
of new
shares of shares shares
shares Restriction
Shareholders’ name restricted at released restricted Released date
restricted reasons
Period-begi in the at
in the
n Year Period-end
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
Southern Industrial and Trading Legal After remove restricted
660,000 0 0 660,000
Corporation commitment in procedures complete
35
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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
Legal
Guangzhou Dongzhan Industrial Co. After remove restricted
924,000 0 0 924,000 commitment in
LTD 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
1. Security offering (without preferred stock) in reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
36
司公限有份股心中游旅海东大南海 2020 文全告报度年年
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
Total common Total common stock Total preference shareholders with
stock shareholders shareholders at end of last shareholders with voting voting rights recovered
36,138 40,973 0 0
in reporting month before annual rights recovered at end of at end of last month
period-end report disclosed reporting period before annual report
disclosed
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of share
Proport Number of Amount of
Changes Amount of pledged/frozen
Nature of ion of shares held un-restricte
Full name of Shareholders in report restricted State
shareholder shares at d shares
period shares held of Amount
held period-end held
share
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
Domestic nature
Zhang Fengxiu 0.84% 3,041,372 0 0 3,041,372
person
Shenwan Hongyuan Securities
Foreign corporate 0.81% 2,938,390 -118,000 0 2,938,390
(Hong Kong) Co., Ltd.
Domestic nature
Sun Huiming 0.79% 2,888,690 0 0 2,888,690
person
China Investment Securities
(HK) Co., Ld. – customer Foreign corporate 0.74% 2,683,900 938,400 0 2,683,900
deposit
Strategy investors or general
legal person becomes top 10 N/A
shareholders due to rights issued
37
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is the wholly-owned
Explanation on associated
subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen Jinlian and Pan Aiping are the persons
relationship or accordant action
acting in concert; the Company is unknown whether there exists associated relationship or belongs to the
among the aforesaid
consistent actor regulated by the Management Measure of Information Disclosure on Change of
shareholders
Shareholding for Listed Company among the other shareholders.
Description of the above
shareholders in relation to
delegate/entrusted voting rights N/A
and abstention from voting
rights.
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict Type of shares
Shareholders’ name
shares 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
Zhang Fengxiu 3,041,372 RMB common share 3,041,372
Domestically listed
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. 2,938,390 2,938,390
foreign share
Domestically listed
Sun Huiming 2,888,690 2,888,690
foreign share
China Investment Securities (HK) Co., Ld. – customer
2,683,900 RMB common share 2,683,900
deposit
Among the above shareholders, Hainan Ya’an Residence Property Service Co.,
Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd. Yang Meiqin, Pan
Expiation on associated relationship or consistent actors Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the
within the top 10 un-restrict shareholders and between top Company is unknown whether there exists associated relationship or belongs to
10 un-restrict shareholders and top 10 shareholders the consistent actor regulated by the Management Measure of Information
Disclosure on Change of Shareholding for Listed Company among the other
shareholders.
Explanation on shareholders involving margin business
about top ten common stock shareholders with un-restrict N/A
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
38
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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.
2. Controlling shareholder (The largest shareholder) of the Company
Nature of controlling shareholders (The largest shareholder): community collective holding
Type of controlling shareholders (The largest shareholder): legal person
Legal
Date
person/pe
Controlling shareholders (The of Organization
rson in Main operation business
largest shareholder) found code
charge of
ation
the unit
Planting and breeding; setting up industry; real estate
development and operation; building decoration project;
processing and sales of agricultural and sideline livestock and
aquatic products and livestock and poultry breeding;
Dece Unified social machinery, automobile and motorcycle parts, electronic
mber credit code products, metal materials (except for franchise), chemical
Luoniushan Co., Ltd. Xu Zili
19, 914600002840 products (except for franchise), sales of household
1987 89747P appliances, modern office supplies, stationery and sports
goods, daily necessities, building materials, agricultural and
sideline native products; development and construction of
trading markets; leasing services; warehousing services;
collection and payment of water and electricity fees.
Equity of other domestic/oversea
listed company control by
Found more details in full text of Annual Report 2020 of Luoniushan Co., Ltd. (Short form of the
controlling shareholder (The largest
stock: Luoniushan, Stock code: 000735)
shareholder) as well as stock-joint in
report period
Changes of controlling shareholders (The largest shareholder) in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders (The largest shareholder) in reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Relationship with Whether obtained right of residence of other
Name of actual controller Nationality
the actual controller countries or regions or not
Xu Zili Xu Zili himself P.R.C No
Xu Zili, male, was born in 1966, is a senior engineer with a master degree. He successively
Main profession and title
served as Vice President of Hubei Huangshi Mine Bureau Machinery; General Manager of
39
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Haikou Animal Husbandry Machinery Engineering Co., Ltd.; Chairman of Tianjin Baodi
Agricultural Technology Co., Ltd.; Vice Chairman and General Manager of the Company
from August 2006 to November 2011; serves as Chairman of the Company since November
2011; now he takes as the 7th CPPCC member of Hainan Province.
Listed company in and out of China
N/A
controlled in past decades
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
Xu Zili
90%
Hainan Huijia Investment Development Co., Ltd.
71.84%
Hainan Liqin Investment Co., Ltd
20.95% 71.76% 50.83% 80% 45%
20%
Luoniushan Haikou Yongsheng Livestock Hainan Hainan Guangxiang
Group Co., Ltd. Machinery Engineering Co., 49.17% Shengxing Trade Trade Co., Ltd.
Ltd. Co., Ltd. 55%
0.07% 17.14% 2.4% 1.25% 0.63%
Luoniushan Co., Ltd.
17.55% 100%
2.25% Hainan Ya An Ju Property
Hainan Dadonghai Tourism Center (Holding) Co., Ltd.
Service Co., Ltd.
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
40
司公限有份股心中游旅海东大南海 2020 文全告报度年年
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
41
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
42
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
43
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section IX. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amoun Amoun
t of t of Shares
Shares Other held at
Work shares shares
S held at chan period
ing Start dated of End date of increas decreas
Name Title e Age period-be ges -end
statu office term office term ed in ed in
x gin (shar
s this this (Share
(Share) e)
period period )
(Share) (Share)
Curr
Yuan Chairman/G ently
M February 27,
Xiaopin eneral in 57 February 28, 2018 0 0 0 0 0
2021
g Manager offic
e
Curr
Tang ently
Independent M May 21,
Guopin in 56 May 22, 2014 0 0 0 0 0
Director 2020
g offic
e
Curr
ently
Independent M February 27,
Wu Tao in 42 February 28, 2018 0 0 0 0 0
Director 2021
offic
e
Curr
Tang ently
M February 27,
Shanron Director in 41 February 28, 2018 0 0 0 0 0
2021
g offic
e
Curr
Chairman
ently
Huang of M February 27,
in 51 June 16, 2002 0 0 0 0 0
Wencai supervisory 2021
offic
committee
e
44
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Curr
ently
ZhangX February 27,
Supervisor in F 37 February 28, 2018 0 0 0 0 0
uli 2021
offic
e
Curr
ently
Chen M February 27,
Supervisor in 54 July 29, 2016 0 0 0 0 0
Gang 2021
offic
e
Curr
Person in ently
Fu M February 27,
charge of in 53 April 15, 2015 0 0 0 0 0
Zongren 2021
finance offic
e
Curr
Deputy ently
Ding M February 27,
General in 49 August 10, 2018 0 0 0 0 0
Qin 2021
Manager offic
e
Director/ Curr
Wang deputy ently
February 27,
Hongju GM/secreta in F 44 April 27, 2008 0 0 0 0 0
2021
an ry of the offic
Board e
Total -- -- -- -- -- -- 0 0 0 0 0
II. Changes of directors, supervisors and senior executives
□ Applicable√ Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities of directors, supervisors and
senior executive in the Company
Director
Mr. Yuan Xiaoping, was born in 1963, Han nationality, holds the college degree, the Chinese CPA, senior
accountant, the auditor and he is the member of communist party of China. He was appointed as the system
accounting and deputy director in the supply & marketing cooperative of Nanchong Sichuan; he took as the
project manager of Hainan Congxin Accounting Firm and assistant of GM and CFO in Luoniushan Company.
45
司公限有份股心中游旅海东大南海 2020 文全告报度年年
He also served as the director, CFO, Deputy General Manager, the acting GM, deputy chairman and secretary of
the party committee in Haikou Water Group Co., Ltd. as well as the director of Hainan Yedao Co., Ltd. from 2006
to 2017. Mr. Yuan serves as Chairman and GM of the Company since March 2018.
Mr. Tang Shanrong, was born in 1979, holds the Master degree, a senior engineer. He was appointed as secretary
of the president in Luoniushan Co., Ltd., the General Manager of Hainan Luoniushan Environment Protection Co.,
Ltd, the Chairman of Hainan Luoniushan Agricultural Sci-Tech Co., Ltd., the assistant president and GM of the
administration department in Luoniushan Co., Ltd. Mr. Tang serves as vice president of the Company since June
2016; She served as chairman of real estate branch of Luoniushan Co., Ltd. since June 2018; at the same time, he
served as Vice President of China Rural Youth Enrichment Leaders Association, and he is the member of standing
committee of the 14th CPPCC of Haikou, member of the standing committee of the 6th Hainan Youth Federation,
vice chairman of the 8th Haikou Youth League and director of Haikou Youth Entrepreneurship & employment
promotion Association. He serves as director of the Company since March 2018.
Ms. Wang Hongjuan, was born in 1976, Han nationality, Undergraduate Degree, an attorney; she served as
representative of securities affairs of the Company since 2004 and serves as secretary of the Board since 2008 and
deputy GM of the Company since 2014. Ms. Wang serves as Director of the Company since 2016.
Independent Director
Mr. Tang Guoping, was born in August 1964, Han nationality, he was graduated from Zhongnan University of
Economics and Law, holds the doctoral degree and he is the accounting professor, doctoral supervisor and Chinese
CPA. He was awarded as the “Master of Accounting” by the Ministry of Finance, the “Outstanding Young Teacher
Funding Program” of the Ministry of Education, the famous teacher of Hubei Province, the young and
middle-aged experts with outstanding contributions in Hubei Province, the academic leaders of the cross-century
discipline of the Ministry of Finance, won the second prize of the Second Humanities and Social Sciences
Research Achievement Award of Colleges and Universities issued by the Ministry of Education. The second prize,
and won the third prize of outstanding teaching achievements issued by the Hubei Provincial People’s
Government and other awards and honors. He used to be the deputy dean of the Accounting School, the director
of the Accounting Master Education Center, the executive vice president of the Graduate School, and the dean of
the MBA College of Zhongnan University of Economics and Law. He is also the head of the second revision
research group for the Accounting Law of the Ministry of Finance, a member of the first session of the ASBE
Advisory Committee of the Ministry of Finance, the director and senior member of the Accounting Society of
China, and the vice chairman of the Environmental Accounting Professional Committee of the Accounting Society
of China. He is the vice chairman of China Association of Chief Financial Officers of Hubei Province and serves
as an independent director of Mhome Real Estate, Lens Technology and SDG Information. In 2012, he obtained
the independent director qualification certificate and has been an independent director of the company since May
2014.
Mr. Wu Tao, born in 1978, holds a master’s degree. He used to be the senior manager, business director and
internal audit committee of Guojin Securities Investment Banking Department. From 2011 to 2014, he served as
46
司公限有份股心中游旅海东大南海 2020 文全告报度年年
the deputy general manager and secretary of the board of directors of Shanghai RENLE Science & Technology
Co., Ltd. From March 2014 to September 2018, he has been serving as the vice chairman and vice president of
Shanghai Huantao Investment Management Co., Ltd. Since August 2015 to the present, he has been a supervisor
of Shanghai Hemin Investment Management Co., Ltd., from September 2018 to March 2020, he served as the
general manager of Shanghai Mingxi Dongsen Investment Co., Ltd., since September 2020, he has served as
independent director of Heilongjiang Traditional Chinese Medicine Co., Ltd. In 2017, he obtained an independent
director qualification certificate. Since March 2018, he has been serving as an independent director of the
Company.
Supervisor
Mr. Huang Wencai: was born in 1969, undergraduate degree, Mr. Huang once held the position of vice director of
Haikou meat association factory, director of Haikou food Co. Ltd. and assistant of general manager of Haikou
food Co. Ltd., deputy GM of Haikou Luoniushan Food Processing Co., Ltd. and deputy GM of Hainan
Luoniushan Meat Co., Ltd.; Currently he served as executive director of Baoting Luoniushan Food Co., Ltd., and
he held the position of Chairman of Supervisory Committee of the Company since 2002.
Ms. Zhang Xuli, born in 1983, holds a master’s degree, is a certified management consultant and an intermediate
economist. From 2009 to 2015, she served as a senior consultant and project manager of Beijing Industrial
Development Consulting Co., Ltd. From December 2015 to September 2020, she has been serving as the
investment director and GM of Luoniushan (Beijing) Investment Co., Ltd. Now he served as Director and General
Manager of Hainan (Tanniu) Wenchang Chicken Co., Ltd., and since March 2018, she has been serving as a
shareholder supervisor of the company.
Mr. Chen Gang, was born in 1966, the Han nationality, a junior accountant. He worked as accountant in Hainan
Sanya Phoenix Co., Ltd. from February 1988 to June 1989, worked as chief accountant in Sanya Hardware
Electrical Mall from July 1989 to September 1992, and serves as cost accounting, chief accountant, deputy GM
and GM of the financial dept. in the Company since October 1992. He serves as staff supervisor of the Company
since August 2016.
Senior executives
Mr. Ding Qin, born in 1971, Han nationality, holds a master’s degree, studied in Central South University from
1988 to 1992 and graduated as a bachelor of industrial trade, and studied and graduated as a postgraduate from
Hainan University from 2005 to 2008, majoring in agricultural extension. From 1998 to 2006, he served as the
general manager at Hainan Huacui Palm Garden Co., Ltd.; from 2010 to 2013, he served as the executive general
manager of the fixed income department of Heaven-Sent Capital Management Group Co., Ltd (Shanghai); from
2013 to 2017, he was appointed as the general manager of Wuhan East Lake Innovation Investment Management
Co., Ltd.; and he serves as the assistant general manager of the company since April 2018. Since August 2018, he
serves as the deputy general manager of the company.
Mr. Fu Zongren, was born in 1967, intermediate accountant, served as financial manager of the Company,
financial controller of Sanya Yalong Bay Universal Resort, and general manager of Financial Management Center
of Hainan Sunup Group, and serves as the financial administrator of the Company since April 2015.
47
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Post-holding in shareholder’s unit
√ Applicable□ Not applicable
Whether
obtained
Position in
Start dated of office End date of remuneration
Name Shareholder’s unit shareholder’s
term office term from
unit
shareholder’s
unit (Y/N)
President's
Luoniushan Co., Ltd. August 2006 March 2014 Y
Secretary
Hainan Luoniushan Energy General
September 2009 February 2014 Y
Environmental Protection Co., Ltd. manager
Hainan Luoniushan Agricultural
Chairman October 2011 February 2014 Y
Technology Co., Ltd.
Assistant to the
Tang Shanrong President and
General
Luoniushan Co., Ltd. March 2014 August 2016 Y
Manager of the
Administration
Department
Luoniushan Co., Ltd. Vice president August 2016 Y
Real Estate Branch of Luoniushan
Chairman June 2018 Y
Co., Ltd.
Investment
Luoniushan (Beijing) Investment director, September
December 2015 Y
Co., Ltd. general 2020
Zhang Xuli manager
Director,
Hainan (Tanniu) Wenchang Chicken
general November 25, 2020 Y
Co., Ltd.
manager
Executive
Huang Wencai Baoting Luoniushan Food Co., Ltd. July 12, 2019 Y
director
Note of
post-holding in
N/A
shareholder’s
unit
Post-holding in other unit
√ Applicable□ Not applicable
Position in other Start dated of End date of Whether
Name Other unit
unit office term office term obtained
48
司公限有份股心中游旅海东大南海 2020 文全告报度年年
remuneration
from other unit
(Y/N)
Accounting School of Zhongnan December
Full-time professor Y
University of Economics and Law 2015
MHome Group Real Estate Independent
July 2020 July 2023 Y
Development Group Co., Ltd. director
Independent
Lens Technology Co., Ltd. July 2017 July 2021 Y
director
Tang Guoping
Independent November November
Shenzhen SDG Information Co., Ltd. Y
director 2018 2021
Wuhan Cabio Biotech Engineering Independent December December
Y
Co., Ltd. director 2018 2021
Independent
Shengang Securities Co., Ltd. June 2019 June 2022 Y
director
Deputy General
Manager,
Shanghai Reynolds Co., Ltd. 2011 2014 Y
Secretary of the
Board
Shanghai Huantao Investment Vice Chairman, September
March 2014 Y
Management Co., Ltd. Vice President 2018
Wu Tao
Shanghai Hemin Investment
Supervisor August 2015 N
Management Co., Ltd.
Shanghai Mingxi Dongsen Investment September
GM March 2020 Y
Co., Ltd. 2018
Heilongjiang Zhongrui Medicine Co., Independent September
Y
Ltd. director 2020
Post-holding in
N/A
other unit
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable√ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Pursuant to the Company's Articles of Association, the pay of directors, supervisor personnel are approved by
general meeting after the review of the board of directors and board of supervisors respectively; the pay of senior
management is approved by the board. Directors, supervisors and senior managers get their payment
49
司公限有份股心中游旅海东大南海 2020 文全告报度年年
corresponding to their post provided by the general meeting and the board meeting.
2. In line with performance of their duties, directors, independent directors and supervisors should receive the
reimbursement from the Company on travel expense and Articles of Association implementation expense.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total remuneration obtained Whether
Post-hold
Name Title Sex Age from the Company (before obtained remuneration from related
ing status
taxes) party of the Company (Y/N)
Yuan
Chairman/General Currently
Xiaopin M 57 57.13 N
Manager in office
g
Tang
Currently
Shanron Director M 41 4.8 Y
in office
g
Tang Currently
Independent Director M 56 4.8 N
Guoping in office
Currently
Wu Tao Independent Director M 42 4.8 N
in office
Chairman of
Huang Currently
supervisory M 51 2.4 Y
Wencai in office
committee
ZhangX Currently
Supervisor F 37 2.4 Y
uli in office
Chen Currently
Supervisor M 54 12.47 N
Gang in office
Fu Person in charge of Currently
M 53 32.29 N
Zongren finance in office
Ding Currently
Deputy GM M 49 31.93 N
Qin in office
Wang Director /secretary of
Currently
Hongjua the Board/Deputy F 44 42.3 N
in office
n GM
Total -- -- -- -- 195.32 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable√ Not applicable
V. Particulars of workforce
1. Number of staff, professional composition and education background
The number of current employees of parent company (people) 120
50
司公限有份股心中游旅海东大南海 2020 文全告报度年年
The number of current employees of main subsidiaries
0
(people)
Total number of current employees (people) 120
The total number of current employees to receive pay (people) 120
The total number of retired staff and workers that the parent
0
company and main subsidiaries need to bear the costs (people)
Professional composition
Category of professional composition Number of professional composition (people)
Production staff 65
Salesman 6
Technical staff 17
Financial staff 12
Administrative staff 20
Total 120
Education background
Category of education Number (people)
Graduate student 1
Undergraduate 15
Junior college above 35
High school and below 69
Total 120
2. Remuneration policy
The compensation of company’s employees includes wages, bonuses, and benefits, which take the principle of
distributing according to the work, giving priority to efficiency and taking count of equity simultaneously, wage
increase adapting to the company’s business development and benefits improvement, optimizing the labor
allocation, pay level agreeing with the local average in the same industry. Set or adjust the wage standards in
accordance with the job valuation result, the local pay level in the same industry, the company’s annual operation
target and operational budget, and the individual performance.
3. Training programs
Strengthen the training of senior executives by combining the voluntary organization of training and the external
training, widen the thought, and enhance the decision-making ability and modern operation and management
ability. Strengthen the training of middle management, improve the overall quality of managers, improve the
knowledge structure, and enhance the comprehensive management capability, innovation capability and
implementation capability. Strengthen the training of professional and technical personnel, improve the theoretical
level of technology and professional skills, and enhance the technological innovation, technical transformation
capability. Strengthen the technical training of hotel service staff, constantly improve the professional skills and
service skills of service staff, and enhance the ability to strictly fulfill their responsibilities. Strengthen the cultural
51
司公限有份股心中游旅海东大南海 2020 文全告报度年年
training, improve the cultural level of personnel at all levels, and enhance the overall cultural quality of the staff
team.
4. Labor outsourcing
□ Applicable√ Not applicable
52
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section X. Corporate Governance
I. Corporate governance of the Company
During reporting period, the Company further completed governance structure and system, perfected internal
control mechanism and system construction and normalized corporate operation, strictly in accordance with
relative rules and regulations of the Company Law, Securities Law and Listing Rules of Shenzhen Stock
Exchange. Till end of reporting period, governance structure of the Company is basically in line with requirement
of the Governance Rules of Listed Company.
1. During the reporting period, the Company’s general meeting, board meeting and supervisors meeting exercised
the decision rights, execution rights and supervision rights respectively with clear responsibilities, mutual restrict,
operation specification and effective operation. The procedures of meeting holding, proposal review, and
decision-making in these three meetings were in compliance with relevant provisions. The board meeting
comprises strategy and development committee, audit committee, nomination committee, remuneration and
appraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing a
strong support for the board meeting’s major scientific management decision.
2. In strict accordance with the requirements of Rules Governing the Listing of Stock, directors performed its
duties with honest, trust, diligence and independence, protected the legitimate rights and interests of minority
shareholders with loyalty to their interests; Supervisors effectively supervised and checked independent directors,
senior management and their financial situations.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independence of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
1. Business Independence: the Company business operates independently with integrated structure, and is free
from horizontal competition with controlling shareholders. The controlling shareholders do not intervene the
Company’s operation either directly or indirectly.
2. Personnel Independence, the Company is independent on controlling shareholders in the aspects of labor,
personnel and Remuneration management.
3. Assets Independence: the Company has proprietary rights and control rights on its assets. Controlling
shareholders occupy no assets or funds of the listed company.
4. Institution Independence: the company's board of directors and board of supervisors, managers and other
53
司公限有份股心中游旅海东大南海 2020 文全告报度年年
internal institutions operate independently and manage independently with integrated structures.
5. Financial Independence: the Company has an independent financial sector, and sets up independent accounting
system and financial management system. The Company opens independent bank accounts and pay independent
taxes to laws without controlling shareholders’ intervention.
III. Horizontal competition
□ Applicable√ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of
Session of investor Date of
Type Date Index of disclosure
meeting participati disclosure
on
Annual
The “Resolution Notice of Annual Shareholders’ General
Shareholde
May 22, May 23, Meeting of 2019” (No.: 2020-018) published on Securities
rs General AGM 20.78%
2020 2020 Times, Hong Kong Commercial Daily and Juchao website
Meeting
(www.cninfo.com.cn) dated 23 May 2020
2019
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting & general meeting
Times of Board Times of
Times of
Indepen meeting attending the Times of Absent the Meeting
Times of Times of attend the
dent supposed to Board Meeting entrusted for the second time
Presence Absence general
Director attend in the by presence in a row (Y/N)
meeting
report period communication
Tang
Guopin 5 0 5 0 0 N 1
g
Wu Tao 5 0 5 0 0 N 1
Explanation on absent the board meeting for the second time in a row:
Nil
54
司公限有份股心中游旅海东大南海 2020 文全告报度年年
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
No objections arising from the independent directors on relevant events of the Company during the Period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√Yes □No
Explanation on advice that accepted/not accepted from independent directors
The company's main business is single, small in scale, and weak in anti-risk capabilities. It is recommended that
while strengthening the main business, the company continues to look for suitable projects for asset reorganization,
enrich the industrial structure, increase main business income and profit growth points, and enhance the
company's ability to resist risks and competitiveness.
VI. Duty performance of the special committees under the board during the reporting period
The board meeting comprises four special committees, who carry out smoothly their duties accordingly to their
working conditions, providing a strong support for the board meeting’s major scientific management decision.
Each special committee performed their duties as follows:
1. Audit Committee
During the reporting period, the audit committee audited the first quarter and the three quarter financial report of
2020, and the 2020 semi-annual financial report. In the process of annual financial report auditing 2020 process,
audit committee members worked in accordance with the relevant requirements by faithfully performing audit
committee’s responsibilities:
Before the entrance of annual examination certified public accountants, the audit committee members listened to
the management statements of the Company's operating condition in 2020 and the financial status as well as the
report on annual financial report audit work arrangement of 2020, communicated with annual examination
certified public accountants about issues such as personnel structure of the working group, audit plan, risk
judgment, annual audit focus and so on; In early January 2021, in annual report audit process, audit committee
members listened to the work report by annual examination certified public accountants and the company
management; In early April 2021, audit committee members reviewed submitted financial and accounting reports.
The financial and accounting reports audited was formatted strictly to Accounting Standards for Business
Enterprises and Accounting System for Business Enterprises, and this report fairly reflected the Company’s assets,
liabilities, rights and interests and operating situation without significant errors and omissions. The annual audit
report of 2020 by audit institutions was agreed to be submitted to the board.
The Company's board of directors regarded that the external auditors BDO China Shu Lun Pan Certified Public
55
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Accountants LLP faithfully performed the audit responsibility, and suggested to renew as the Company’s annual
financial audit of 2021.
2. Remuneration and Appraisal Committee
During the reporting period, the remuneration committee members of the Company board carried out their duties
strictly to relevant regulations, inspected remuneration policies and programs for directors, supervisors and senior
managers, and appraised the performance of directors, supervisors and senior management according to senior
manager remuneration appraisal. By the end of the reporting period, the Company has not implemented option
scheme.
3. Strategy committee
During the reporting period, the strategy committee of the company's board of directors put forward opinions on
the company's development plans and investment decisions, and believed that the company should strive to
strengthen its main business, ensure the profit of the main business year, and avoid the risk of delisting, at the
same time, continued to look for suitable projects for asset reorganization, enrich the industrial structure, and
increase main business income and profit growth points.
4. Nomination committee
During the reporting period, the company did not have any nominations.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
1. Pursuant to People-oriented Principle, the Company employs outstanding persons in long-term, and admits the
best candidates on the premise of openness, fairness, justice. Those who pass trial comprehensive appraisal and be
nominated by general managers and approved by the board meeting can be employed as senior management of the
Company.
2. The Company adopts a clear appraisal system in which assessment methods are made to the performance and
duty fulfillment of senior management. Assessments are carried out monthly and annually by the same level and
higher level and the results are taken as factors for post lift and rewards and punishment of senior management.
3. The Company sets up effective incentive mechanism, including material incentives and spiritual incentives. The
clear rewards and punishments, balance between remuneration and work performance, survival of fittest
encourage senior management to make constantly progress and improve their own comprehensive ability which in
turn help the Company develop rapidly.
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□ Yes √ No
2. Self-appraisal Report of Internal Control
Disclosure date of full internal control appraisal report April 24, 2021
Relevant information found in Appraisal Report of Internal
Disclosure index of full internal control appraisal report Control for 2020 published on Juchao Website dated 24 April
2021
The ratio of the total assets of units included in the scope of evaluation
accounting for the total assets on the company's consolidated financial 100.00%
statements
The ratio of the operating income of units included in the scope of
evaluation accounting for the operating income on the company's 100.00%
consolidated financial statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Major deficiencies: fraud of directors, supervisors and Major deficiencies: the company is lack of democratic
senior management; material misstatements are found in decision-making process; the company’s decision-making
current financial statements by the certified public process leads to major mistakes; the company violates the
accountant but are not found in the process of internal state laws and regulations and is severely punished;
control; It’s found that the significant internal control serious brain drain of the company’s senior management
deficiencies that had been discovered and reported to personnel and senior technical staff; frequent negative
the management were not yet corrected within the news on media covering a wide range and the negative
stipulated time; the audit committee’s supervision has effects are not eliminated; the company’s significant
no effect on the company’s external financial reports business is lack of system control or systematic-ness is
and internal control over financial reporting. invalid; the major deficiencies and significant deficiencies
Qualitative Significant deficiencies: the selection and application of of the company’s internal controls have not been rectified
criteria accounting policies are not in accordance with the and reformed; the company is punished by CSRC or
GAAP; anti-fraud program and control measures have warned by stock exchange.
not been established; the accounting treatment of Significant deficiencies: the company has democratic
unusual or special transactions has no appropriate decision-making process which is not complete; the
control mechanisms or have not implemented the company’s decision-making process leads to general
control mechanisms and has no appropriate mistakes; the company violates the enterprise internal
compensatory controls; the control to period-end regulations which causes losses; serious brain drain of the
financial reporting process has one or more deficiencies company’s business personnel in key positions; negative
and cannot reasonably ensure that the organizational news on media affecting local areas; the company’s
financial statements are true and accurate. significant business system has deficiencies; the
General deficiencies: deficiencies that out of the significant deficiencies and general deficiencies of the
57
司公限有份股心中游旅海东大南海 2020 文全告报度年年
recognition of major and significant deficiencies should company’s internal controls have not been rectified and
be recognized as general deficiencies reformed
General deficiencies: deficiencies that out of the
recognition of major and significant deficiencies should be
recognized as general deficiencies
Major deficiencies: After considering the compensating
control measures and the actual deviation rate, the
overall impact level of the deficiency is higher than the
significance level (10% of the total profit).
Major deficiencies: direct property loss is more than
Significant deficiencies: After considering the
100,000 Yuan;
compensating control measures and the actual deviation
Quantitative Significant deficiencies: direct property loss ranged from 1
rate, the overall impact level of the deficiency is lower
standard Yuan to 100,000 Yuan;
than the significance level (10% of the total profit), but
General deficiencies: direct property loss is lower than
higher than the generality level (5% of the total profit).
10,000 Yuan
General deficiencies: After considering the
compensating control measures and the actual deviation
rate, the overall impact level of the deficiency is lower
than the generality level (5% of the total profit).
Amount of
significant defects
0
in financial
reports
Amount of
significant defects
0
in non-financial
reports
Amount of
important defects
0
in financial
reports
Amount of
important defects
0
in non-financial
reports
X. Auditing report of internal control
√ Applicable□ Not applicable
Deliberations in Internal Control Audit Report
To All Shareholders of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.:
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese Certified
58
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Public Accountant, we audited the effective-ness of the financial report’s internal control for Hainan Dadonghai Tourism Center (Holdings)
Co., Ltd. (the Company) dated 31 December 2020.
I. As for responsibility of internal control
The Company established and improved and implemented internal control effectively pursuit to Basic Norms of Enterprises Internal Control,
Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control, and board of the director is
responsible for evaluating its effectiveness.
II. Auditor’s responsibilities
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit. And
disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control
The internal control has an inherent limitation, and exist mistakes that cannot prevent and being discovered. Moreover, the internal control
might be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to speculate future
effectiveness of the internal control in line with the auditing result has a certain risk.
IV. Auditing opinion: in our opinion
The Company, in line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control of
financial report in all major aspects dated 31 December 2020.
BDO CHINA Shu Lun Pan CPA (LLP) Certified Public Accountant of China: Li Jinhua
Certified Public Accountant of China: Zhu Meirong
ShanghaiChina 22 April 2021
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
April 24, 2021
internal control (full-text)
Index of audit report of internal Relevant information found in Self-appraisal Report of Internal Control for 2020 published on Juchao
control (full-text) Website dated 24 April 2021.
Opinion type of auditing report of
Standard unqualified
IC
whether the non-financial report
No
had major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
59
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section XI. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
60
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Section XII. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report April 22, 2021
Name of audit institute BDO CHINA Shu Lun Pan Certified Public Accountants (LLP)
Document serial of audit report PCPAR [2021] No. ZA11117
Name of the CPA Li Jinhua, Zhu Meirong
Auditor’s Report
To all shareholders of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.,
I. Opinion
We have audited the financial statements of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter
referred to as "the Company"), which comprise the consolidated and parent Company’s balance sheet of 31
December 2020 and profit statement, and cash flow statement, and statement on changes of shareholders’ equity
for the year ended, and notes to the financial statements for the year ended.
In our opinion, the attached financial statements are prepared in accordance with the provisions of the Accounting
Standings for Enterprises in all major respects, it fairly reflects the consolidate and parent company’s financial
status as of 31 December 2020 under the name of Dadonghai well we the operation results and cash flow for the
year of 2020.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We identified the following as key audit issues that need to be communicated in the audit report:
Key audit mattes Countermeasures
61
司公限有份股心中游旅海东大南海 2020 文全告报度年年
(i) Recognition of room income
The Company had operating income of For room sales revenue, we understood and evaluated the management's design of internal
15.512 million yuan in 2020, of which room controls in sales processes from approval of contracts to the accounting of sales revenue and
income was 11.721 million yuan, accounting tested the effectiveness of the implementation of key control points.
for 75.56% of operating income. Via sample inspection of contracts and management interviews, we tested the timing point of
As income is a key performance indicator ofsignificant risks and remuneration related to room revenue recognition, and thus assessed the
Dadonghai Holdings, which causes intrinsic Company's income recognition policies.
risks that the income may be recognized in an In addition, we implemented the following procedures in respect of room revenue by using
incorrect period or be manipulated to achieve sampling:
the target or expected level, we identify the
(1) Analyze income and gross profit margin in combination with the type of income, and judge
room revenue of Dadonghai Holdings as a
whether there is any abnormal fluctuation in the income amount in the current period.
key audit matter.
(2) Choose samples from reservation records and check-in records of rooms, check the samples
against the contracts, accounting records, invoice issuance and payment receipts related to the
corresponding sales, and pay special attention to whether the samples before and after the balance
sheet date are included in the correct accounting period to assess whether room revenue is
confirmed during the appropriate period.
(3) With respect to new customers and those bringing large amount of income in the current
period, implement the external confirmation of incurred amounts and the balances, and analyzed
the authenticity thereof in combination with the collection of payments and occupancy situation.
At the same time, inquire the business information of some customers to further confirm the
authenticity of transactions therewith.
(ii) Confirmation of long-term deferred expenses for guest room decoration
Dadonghai Co., Ltd. renovated the guest For the confirmation and amortization of long-term unamortized expenses, we implemented the
room B building and hotel landscape of South following procedures:
China Hotel in 2020, and a total of (1) We understood and evaluated the effectiveness of Dadonghai's internal control implementation
17,066,700yuan has been confirmed for of the investment and decoration of Building B.
long-term unamortized expenses, which has (2) Collected and inspected the relevant documents of the board of directors on the investment and
been put into use on October 12, 2020, with renovation of Building B by Dadonghai Co., Ltd., the bidding documents for decoration and
amortization of 744,732.21 yuan in the renovation, and the notice of bid winning, etc. to confirm the appropriateness of the cost of the
current year. decoration and renovation project of Building B.
As the total amount incurred is relatively (3) Checked the key documents such as the renovation project construction contract, payment
significant and has a greater impact on this receipt, and project acceptance certificate to confirm the authenticity of the cost of the decoration
year and subsequent years, and there is a risk and renovation project and the accuracy of the time point when the project reaching the intended
that it may be manipulated to reach the target usable state.
or expected level, we recognize the
(4) Calculated the amortization of long-term unamortized expenses to confirm the accuracy of the
confirmation of the long-term unamortized
amortization amount.
expenses for the guest room decoration of
(5) Made external confirmations to the engineering decoration company to confirm the
Dadonghai Co., Ltd. as a key audit matter.
authenticity and completeness of the decoration amount. At the same time, inquired about the
industrial and commercial information of the engineering decoration company, combined with the
external confirmations, and comprehensively judged whether the engineering decoration company
had a related party relationship with Dadonghai.
IV. Other information
62
司公限有份股心中游旅海东大南海 2020 文全告报度年年
The management of the Company (hereinafter referred to as Managers) is responsible for the other information.
The other information comprises information of the Company's annual report in 2020, but excludes the financial
statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern (if applicable) and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
63
司公限有份股心中游旅海东大南海 2020 文全告报度年年
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company,
and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation (Including disclosure), structure and content of the financial statements, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the merge financial statements. We in charge of the
guidance, supervision and enforcement of the group’s auditing and bear all liability for the opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
BDO CHINA Shu Lun Pan Certified Public Accountant of China: Li Jinhua
Certified Public Accountants (LLP)
Certified Public Accountant of China: Zhu Meirong
ShanghaiChina 22 April 2021
64
司公限有份股心中游旅海东大南海 2020 文全告报度年年
II. Financial Statement
Expressed in Renminbi unless otherwise stated
1. Consolidated balance sheet
Prepared by HAINAN DADONGHAI TOURISM CENTRE (HOLDINGS) CO., LTD.
December 31, 2020
In RMB
Item December 31, 2020 December 31, 2019
Current assets:
Monetary funds 2,924,459.75 7,422,939.89
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable
Account receivable 429,303.32 311,083.92
Receivable financing
Accounts paid in advance
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 432,560.55 571,744.52
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 2,009,928.83 254,257.19
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 3,977,452.24 2,574,442.57
Total current assets 9,773,704.69 11,134,468.09
Non-current assets:
65
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 7,435,433.31 7,909,956.87
Fixed assets 34,694,023.75 35,075,195.98
Construction in progress 488,522.10
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 20,580,474.72 21,392,861.88
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 24,957,702.73 11,520,179.33
Deferred income tax asset
Other non-current asset
Total non-current asset 87,667,634.51 76,386,716.16
Total assets 97,441,339.20 87,521,184.25
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 808,710.46 1,250,409.75
Accounts received in advance 786,715.42
Contractual liability 626,285.33
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
66
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Security sales of agency
Wage payable 2,595,861.40 2,552,996.37
Taxes payable 366,892.96 307,257.85
Other account payable 6,167,763.36 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 6,621,497.94
Other current liabilities 37,577.12
Total current liabilities 17,224,588.57 7,544,895.25
Non-current liabilities:
Insurance contract reserve
Long-term loans 9,893,757.94
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 1,914,592.66
Total non-current liabilities 13,298,035.64 1,489,685.04
Total liabilities 30,522,624.21 9,034,580.29
Owner’s 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
67
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Other comprehensive income
Reasonable reserve
Surplus public reserve
Provision of general risk
Retained profit -351,324,135.02 -339,756,246.05
Total owner’ s equity attributable to parent company 66,918,714.99 78,486,603.96
Minority interests
Total owner’ s equity 66,918,714.99 78,486,603.96
Total liabilities and owner’ s equity 97,441,339.20 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 December 31, 2020 December 31, 2019
Current assets:
Monetary funds 2,923,474.26 7,421,452.59
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 429,303.32 311,083.92
Receivable financing
Accounts paid in advance
Other account receivable 432,560.55 571,744.52
Including: Interest receivable
Dividend receivable
Inventories 2,009,928.83 254,257.19
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 3,977,452.24 2,574,442.57
Total current assets 9,772,719.20 11,132,980.79
Non-current assets:
68
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 7,435,433.31 7,909,956.87
Fixed assets 34,694,023.75 35,075,195.98
Construction in progress 488,522.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 20,580,474.72 21,392,861.88
Research and development costs
Goodwill
Long-term deferred expenses 24,957,702.73 11,520,179.33
Deferred income tax assets
Other non-current assets
Total non-current assets 88,667,634.51 77,386,716.16
Total assets 98,440,353.71 88,519,696.95
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 808,710.46 1,250,409.75
Accounts received in advance 786,715.42
Contractual liability 626,285.33
Wage payable 2,595,861.40 2,552,996.37
Taxes payable 366,892.96 307,210.05
Other accounts payable 7,167,232.06 3,646,984.56
Including: Interest payable
Dividend payable
Liability held for sale
69
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Non-current liabilities due within one year 6,621,497.94
Other current liabilities 37,577.12
Total current liabilities 18,224,057.27 8,544,316.15
Non-current liabilities:
Long-term loans 9,893,757.94
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 1,914,592.66
Total non-current liabilities 13,298,035.64 1,489,685.04
Total liabilities 31,522,092.91 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 -351,324,589.21 -339,757,154.25
Total owner’s equity 66,918,260.80 78,485,695.76
Total liabilities and owner’s equity 98,440,353.71 88,519,696.95
3. Consolidated profit statement
In RMB
Item 2020 2019
70
司公限有份股心中游旅海东大南海 2020 文全告报度年年
I. Total operating income 15,511,989.37 25,935,405.44
Including: Operating income 15,511,989.37 25,935,405.44
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 27,583,513.78 27,008,417.09
Including: Operating cost 12,768,462.84 11,082,766.94
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 499,451.99 722,523.20
Sales expense 4,853,722.93 5,606,474.47
Administrative expense 9,026,426.56 9,772,412.86
R&D expense
Financial expense 435,449.46 -175,760.38
Including: Interest expenses 551,742.76
Interest income 155,036.56 210,556.05
Add: other income 817,825.34 292,643.89
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated company
and joint venture
The termination of income recognition for
financial assets measured by amortized cost(Loss is listed with
“-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with
“-”)
Loss of credit impairment (Loss is listed with “-”) -63,433.95 -5,032.26
Losses of devaluation of asset (Loss is listed with “-”)
71
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Income from assets disposal (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) -11,317,133.02 -785,400.02
Add: Non-operating income 286,427.86 1,555,255.92
Less: Non-operating expense 537,183.81 13,086.64
IV. Total profit (Loss is listed with “-”) -11,567,888.97 756,769.26
Less: Income tax expense 47.80
V. Net profit (Net loss is listed with “-”) -11,567,888.97 756,721.46
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) -11,567,888.97 756,721.46
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company -11,567,888.97 756,721.46
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
5.Cash flow hedging reserve
72
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 -11,567,888.97 756,721.46
Total comprehensive income attributable to owners of
-11,567,888.97 756,721.46
parent Company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0318 0.0021
(ii) Diluted earnings per share -0.0318 0.0021
As for the enterprise combination under the same control, the net profit achieved by the combined party before consolidation was 0
Yuan in the period while 0 Yuan achieved last period
Legal Representative: Yuan Xiaoping
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren
4. Profit statement of parent Company
In RMB
Item 2020 2019
I. Operating income 15,511,989.37 25,935,405.44
Less: Operating cost 12,768,462.84 11,082,766.94
Taxes and surcharge 499,451.99 722,523.20
Sales expenses 4,853,722.93 5,606,474.47
Administration expenses 9,026,226.56 9,772,412.86
R&D expenses
Financial expenses 435,195.45 -174,607.65
Including: interest expenses 551,742.76
Interest income 155,020.57 209,033.32
Add: other income 817,825.34 292,643.89
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated Company
and joint venture
The termination of income recognition for
73
司公限有份股心中游旅海东大南海 2020 文全告报度年年
financial assets measured by amortized cost (Loss is listed with
“-”)
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”)
Loss of credit impairment (Loss is listed with “-”) -63,433.95 -5,032.26
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 “-”) -11,316,679.01 -786,552.75
Add: Non-operating income 286,427.86 1,555,220.92
Less: Non-operating expense 537,183.81 13,086.64
III. Total Profit (Loss is listed with “-”) -11,567,434.96 755,581.53
Less: Income tax
IV. Net profit (Net loss is listed with “-”) -11,567,434.96 755,581.53
(i) continuous operating net profit (net loss listed with ‘-”) -11,567,434.96 755,581.53
(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
74
司公限有份股心中游旅海东大南海 2020 文全告报度年年
6.Translation differences arising on translation of
foreign currency financial statements
7.Other
VI. Total comprehensive income -11,567,434.96 755,581.53
VII. Earnings per share:
(i) Basic earnings per share -0.0318 0.0021
(ii) Diluted earnings per share -0.0318 0.0021
5. Consolidated cash flow statement
In RMB
Item 2020 2019
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
15,291,982.42 27,678,170.32
services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
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
Other cash received concerning operating activities 954,747.04 2,240,358.73
Subtotal of cash inflow arising from operating activities 16,246,729.46 29,918,529.05
Cash paid for purchasing commodities and receiving labor
8,610,462.77 7,564,247.62
service
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
75
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 11,285,378.24 12,622,537.61
Taxes paid 778,432.92 1,725,491.14
Other cash paid concerning operating activities 2,301,723.51 3,292,591.17
Subtotal of cash outflow arising from operating activities 22,975,997.44 25,204,867.54
Net cash flows arising from operating activities -6,729,267.98 4,713,661.51
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
8,300.00 68,870.00
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 8,300.00 68,870.00
Cash paid for purchasing fixed, intangible and other long-term
13,741,025.28 12,723,946.92
assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 13,741,025.28 12,723,946.92
Net cash flows arising from investing activities -13,732,725.28 -12,655,076.92
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 3,299,238.76
Cash paid for dividend and profit distributing or interest paying 528,722.34
Including: Dividend and profit of minority shareholder paid by
subsidiaries
Other cash paid concerning financing activities
76
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Subtotal of cash outflow from financing activities 3,827,961.10
Net cash flows arising from financing activities 15,963,513.12
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash equivalents -4,498,480.14 -7,941,415.41
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 2,924,459.75 7,422,939.89
6. Cash flow statement of parent Company
In RMB
Item 2020 2019
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
15,291,982.42 27,678,170.32
services
Write-back of tax received
Other cash received concerning operating activities 954,731.05 2,238,801.00
Subtotal of cash inflow arising from operating activities 16,246,713.47 29,916,971.32
Cash paid for purchasing commodities and receiving labor
8,610,462.77 7,564,247.62
service
Cash paid to/for staff and workers 11,285,378.24 12,622,537.61
Taxes paid 778,385.12 1,725,491.14
Other cash paid concerning operating activities 2,301,253.51 3,292,221.17
Subtotal of cash outflow arising from operating activities 22,975,479.64 25,204,497.54
Net cash flows arising from operating activities -6,728,766.17 4,712,473.78
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
8,300.00 68,870.00
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 8,300.00 68,870.00
Cash paid for purchasing fixed, intangible and other long-term
13,741,025.28 12,723,946.92
assets
Cash paid for investment
77
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 13,741,025.28 12,723,946.92
Net cash flows arising from investing activities -13,732,725.28 -12,655,076.92
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 500,000.00
Subtotal of cash inflow from financing activities 19,791,474.22 500,000.00
Cash paid for settling debts 3,299,238.76
Cash paid for dividend and profit distributing or interest paying 528,722.34
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 3,827,961.10
Net cash flows arising from financing activities 15,963,513.12 500,000.00
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash equivalents -4,497,978.33 -7,442,603.14
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 2,923,474.26 7,421,452.59
7. Consolidate change of owners’ equity
Current period
In RMB
2020
Owners’ equity attributable to the parent Company
L O P
e t r M
R
s h o i
e
s e S v n
a
: r u i o
s
r s r
o
I c p i i
n
n o l o t
a
v m u n o y
Other b
Item e p s t Total owners’
equity Capital l
Share capital n r o Retained profit h Subtotal i equity
instru reserve e
t e r f e n
ment o h e r t
r
r e s g e
e
y n e e r
s
s r n e
e
s i v e s
r
h v e r t
v
a e a s
e
r l
e i
78
司公限有份股心中游旅海东大南海 2020 文全告报度年年
s n r
c i
o s
m k
e
P
e
r
p
e
t
u
P
a
r
l
e
f
c
e
a
r O
p
r t
i
e h
t
d e
a
r
l
s
t
s
o
e
c
c
k
u
r
i
t
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
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 -11,567,888.97 -11,567,888.97 -11,567,888.97
listed with “-”)
(i) Total comprehensive
-11,567,888.97 -11,567,888.97 -11,567,888.97
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
79
司公限有份股心中游旅海东大南海 2020 文全告报度年年
owners (or shareholders)
4. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4 Carry-over retained
．
earnings from the
defined benefit plans
5 Carry-over retained
．
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
364,100,000.00 54,142,850.01 -351,324,135.02 66,918,714.99 66,918,714.99
the report period
Last Period
In RMB
2019
M
i
n
o
r
i
t
y
Total owners’
Owners’ equity attributable to the parent Company
i equity
n
t
e
r
e
s
Item
t
s
Other L O R S P
equity e t e u r
instru s h a r o
ment s e s p v
P P : r o l i
r e n u s o
e r I c a s i t
Capital public
Share capital f p O n o b o Retained profit h Subtotal
reserve
e e t v m l r n e
r t h e p e e r
r u e n r s o
e a r t e r e f
d l o h e r
r e s v g
s c y n e e e
80
司公限有份股心中游旅海东大南海 2020 文全告报度年年
t a s r n
o p s i v e
c i h v e r
k t a e a
a r l
l e i
s n r
s c i
e o s
c m k
u e
r
i
t
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
-58,813.79 -58,813.79 -58,813.79
accounting policy
Error
correction of the last
period
Enterprise
combine under the same
control
Other
II. Balance at the
364,100,000.00 54,142,850.01 -340,512,967.51 77,729,882.50 77,729,882.50
beginning of this year
III. Increase/ Decrease
in this year (Decrease is 756,721.46 756,721.46 756,721.46
listed with “-”)
(i) Total comprehensive
756,721.46 756,721.46 756,721.46
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
81
司公限有份股心中游旅海东大南海 2020 文全告报度年年
(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
364,100,000.00 54,142,850.01 -339,756,246.05 78,486,603.96 78,486,603.96
the report period
8. Change of owners’ equity of parent company
Current period
In RMB
2020
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
e s t
Item 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
e h e r
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
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
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
-11,567,434.96 -11,567,434.96
listed with “-”)
(i) Total comprehensive income -11,567,434.96 -11,567,434.96
(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 -351,324,589.21 66,918,260.80
Last period
In RMB
2019
Other O
t
equity L
h
instru e
e
ment s R
r
P s e
S
e : a
c u
r s
P o r
p I o
r m p
e n n
e p l
t v a
f r u O
u e b
e e s t
Item a n l Provision of Total owners’
Share capital r O Capital reserve h h
l t e general risk equity
r t e r e
o
e h n e r
c r r
d e s s
a y e
r i e
p s
s v r
i s e
t e v
t h r
o e
a a v
c i
l r e
k n
e
c
s s
o
e m
83
司公限有份股心中游旅海东大南海 2020 文全告报度年年
c e
u
r
i
t
i
e
s
I. Balance at the end of the last year 364,100,000.00 54,142,850.01 -340,453,921.99 77,788,928.02
Add: Changes of accounting policy -58,813.79 -58,813.79
Error correction of the last period
Other
II. Balance at the beginning of this year 364,100,000.00 54,142,850.01 -340,512,735.78 77,730,114.23
III. Increase/ Decrease in this year (Decrease is
755,581.53 755,581.53
listed with “-”)
(i) Total comprehensive income 755,581.53 755,581.53
(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 -339,757,154.25 78,485,695.76
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
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 December 31, 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.
The financial statements were approved by all directors of the Company for disclosure on April 22, 2021.
ii) Scope to the consolidated financial statements
As at December 31, 2020, the subsidiary included into the Company's scope of consolidated financial statements
is as follows:
Subsidiary
Hainan Wengao Tourism Resources Development Co., Ltd. （ hereinafter referred to as Wengao Tourism
）
See “Note VIII. Changes in the scope of consolidation" and “Note IX. Equity in other entities" for details of the scope of
consolidated financial statements and changes thereof.
IV. Basis for the preparation of the financial statements
1.Preparation basis
The Company prepared financial statements in accordance with the Accounting Standards for Business
Enterprises — Basic Standards and the specific accounting standards, the Accounting Standards for Business
Enterprises - Application Guidance, the Accounting Standards for Business Enterprises - Interpretation and other
relevant provisions, issued by the Ministry of Finance, (hereinafter referred to collectively as the "Accounting
Standards for Business Enterprises"), as well as the disclosure provisions of the Rules for the Compilation and
Submission of Information Disclosure by Companies Offering Securities to the Public No.15 - General
Requirements for Financial Reports.
2.Going concern
Due to the influence of COVID-19, the Company suffered a serious decline in annual operating revenue in 2020
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
and suffered a large amount of losses. However, the current business situation has gradually recovered to normal,
and it is expected that the Company's business activities will continue in the next 12 months.
V. Significant accounting policies and accounting estimates
Specific accounting policies and estimates:
According to relevant regulations of Accounting Standards for Business Enterprises and accounting mechanism,
combined with the actual operating characteristics to formulated the corresponding accounting policies and
estimates.
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
December 31, 2020 as well as operation results and cash flows for the year 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.Functional currency
RMB is adopted as the functional currency.
5.Accounting treatment methods for business combinations under and not under common control
Business combination under common control: The assets and liabilities (including the goodwill arising from the
acquisition of the combinee by the ultimate controller) acquired by the Company in business combinations are
measured at book values of assets and liabilities of the combinee in the consolidated financial statements of the
ultimate controller on the combination date. The stock premium in the capital reserves is adjusted according to the
difference between the book value of the net assets acquired in business combination and the book value of the
consideration paid for the combination (or total par value of shares issued). If there is no sufficient stock premium
in the capital reserves for write-downs, the retained earnings shall be adjusted.
Business combination under different control: the cost of merger is the fair value of the assets, liabilities incurred
or assumed and equity securities issued by the purchaser in order to obtain the control of the purchaser on the
purchase date. The difference between the cost of the merger and the share of the fair value of the identifiable net
assets acquired by the purchaser in the merger shall be recognized as goodwill; The difference between the merger
cost and the share of the fair value of the identifiable net assets acquired by the purchaser in the merger shall be
recorded into the profit and loss of the current period. The identifiable assets, liabilities and contingent liabilities
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
obtained by the purchaser in the merger meeting the recognition conditions shall be measured at fair value on the
purchase date.
The expenses directly related to the enterprise merger shall be recorded into the current profit and loss when
incurred. The transaction cost of issuing equity securities or debt securities for the purpose of business merger
shall be included in the initial recognized amount of equity securities or debt securities.
6. Preparation methods of consolidated financial statements
6.1Scope of consolidation
The scope of consolidated financial statements of the Company is determined on the basis of control, and the
scope of consolidated financial statements shall be including the Company and all its subsidiaries.
6.2 Procedures of consolidation
The Company regards the whole enterprise group as an accounting subject and prepares consolidated financial
statements in accordance with the unified accounting policy, reflecting the overall financial situation, operating
results and cash flow of the enterprise group.The Company and subsidiaries, subsidiaries between the impact of
internal transactions to offset. If the internal transaction indicates that the relevant assets have impairment losses,
the full recognition of this part of the loss.If the accounting policy adopted by the subsidiary company and the
accounting period are inconsistent with the company, the necessary adjustments shall be made in accordance with
the Company's accounting policy and accounting period when preparing the consolidated financial statements.
The owner's equity of the subsidiary, the current net profit and loss and the share of the minority shareholders in
the current comprehensive income are listed separately under the owner's equity item in the consolidated balance
sheet, the net profit item in the consolidated profit table and the total comprehensive income item in the
consolidated profit table. The current loss shared by the minority shareholders of the subsidiary exceeds the
balance formed by the minority shareholders' share in the initial owner's equity of the subsidiary, thus reducing the
equity of several shareholders.
(1) Increase of subsidiaries or business
During the reporting period, the operating results and cash flows of the subsidiary or business from consolidation
period to the end of the reporting period shall be included in the consolidated financial statements as a result of the
merger of the subsidiary or business under the same control.
Where the investor under the same control can be controlled for reasons such as additional investment, the equity
investment held prior to the acquisition of control by the merged party has been recognized as relevant gains and
losses, other consolidated income and other net assets changes between the date of acquisition of the original
equity and the date of the merger and the date of the merger.
During the reporting period, the consolidated financial statements shall be incorporated into the consolidated
financial statements on the basis of the fair value of identifiable assets, liabilities and contingent liabilities as
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
determined on the date of purchase, as a result of the consolidation of subsidiaries or businesses under the same
control.
If, for reasons such as additional investment, the investor under the same control can be controlled, the equity of
the buyer held before the date of purchase shall be remeasured according to the fair value of the equity on the date
of purchase. The difference between fair value and book value is included in current investment income. Other
comprehensive income and other changes in owner's equity under equity method accounting which can be
re-classified into profit and loss after the share of the buyer held before the purchase date are converted into the
current investment income of the purchase date.
(2) Disposal of subsidiaries
General method of treatment
When the control right of the investor is lost due to the disposal of part of the equity investment or other reasons,
the remaining equity investment after disposal shall be remeasured according to its fair value on the date of loss of
control. The sum of the consideration obtained by the disposal equity and the fair value of the remaining equity,
less the difference between the share of the net assets and the sum of goodwill that should be continuously
calculated by the original subsidiary from the date of purchase or the date of merger, and the investment income in
the current period of loss of control. Other comprehensive income related to the equity investment of the original
subsidiary company and other owner's equity changes under the accounting of equity method, which can be
reclassified into profit and loss, are converted into current investment income when losing control right.
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
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 transaction:
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.
If each transaction is a package transaction, the transaction shall be treated as a transaction dealing with the
subsidiary and losing control. Before the loss of control, the difference between the disposal price and the share of
the net assets of the subsidiary corresponding to the disposal investment shall be recognized as other consolidated
income in the consolidated financial statements and transferred to the gains and losses of the current period of loss
of control when the control is lost.
If each transaction is not a package transaction, prior to the loss of control, the equity investment of the subsidiary
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
shall be partially disposed of without loss of control; in the event of loss of control, Accounting treatment shall be
carried out according to the general treatment method of the disposal subsidiary.
(3) Purchase of minority interest of subsidiaries
Adjust the equity premium in the capital reserve in the consolidated balance sheet, if the equity premium in the
capital reserve is insufficient to reduce the equity premium in the capital reserve, adjust the retained earnings.
(4) Partial disposal of equity investments in subsidiaries without losing control
The difference between the disposal price and the disposal of long-term equity investment shall enjoy the share of
net assets continuously calculated by the subsidiary from the date of purchase or merger, and adjust the equity
premium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve is
insufficient, the retained earnings shall be adjusted.
7.Classification of joint venture arrangements and accounting treatment for joint ventures
The joint venture arrangement is divided into joint operation and joint venture.
Joint operation refers to the joint venture arrangement in which the joint venture party enjoys the assets related to
the arrangement and bears the liabilities related to the arrangement.
The Company confirms the following items relating to the share of interests in joint operations:
(1) To recognize the assets held separately by the Company and the assets held jointly in accordance with its
share;;
(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.
The company's investment in the joint venture using equity method accounting, see this note "III.(13) Long-term
equity investment".
8.Recognition criteria of cash and cash equivalents
In preparing the statement of cash flows, cash on hand and deposits that can be used for payment at any time are
recognized as cash. An investment that has four conditions: short duration (due within three months from the date
of purchase), strong liquidity, easy conversion to known cash and low risk of change in value is identified as a
cash equivalent.
9. Foreign currency business and statement translation
Foreign currency business uses the spot exchange rate on the date of transaction as the conversion rate to convert
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
the foreign currency amount into RMB.
The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate
on the balance sheet date, and the resulting exchange difference, Except for foreign currency special loans related
to the purchase and construction of assets that meet the capitalization conditions, the exchange difference is
recorded into the current profit and loss.
10. Financial instruments
When the Company becomes a party to a financial instrument contract, it recognizes a financial asset, financial
liability or equity instrument.
Classification of financial instruments
According to the business model of the Company's management of financial assets and the characteristics of the
contract cash flow of financial assets, financial assets are classified at the time of initial recognition as: financial
assets measured at amortized cost, financial assets measured at fair value and recorded in other comprehensive
income and financial assets measured at fair value and recorded in the profits and losses of the current period.
The Company will meet the following conditions and not designated as fair value measurement and its changes
into the current profit and loss of financial assets, classified as amortized cost measurement of financial assets:
- The business model is aimed at collecting contract cash flows;
- Contract cash flows are payments only for principal and interest based on outstanding principal amounts.
The Company will also meet the following conditions and is not designated as fair value measurement and its
changes into the current profit and loss of financial assets, classified as fair value measurement and its changes
into other comprehensive income financial assets (debt instruments):
- The business model targets both the collection of contract cash flows and the sale of the financial asset;
- Contract cash flows are payments only for principal and interest based on outstanding principal amounts.
For non-transactional equity investment, the Company may irrevocably designate it at the time of initial
recognition as a financial asset measured at fair value and recorded in other comprehensive income (equity
instrument). The designation is made on the basis of a single investment, and the relevant investment conforms to
the definition of equity instruments from the issuer's point of view.
In addition to the above financial assets measured at amortized cost and at fair value and recorded in other
comprehensive income, The Company classifies all remaining financial assets as financial assets measured at fair
value and recorded in the profits and losses of the current period.At the time of initial recognition, if accounting
mismatches can be eliminated or significantly reduced, The Company may irrevocably designate financial assets
that should be classified as amortized cost or measured at fair value and whose changes are included in other
comprehensive income as financial assets measured at fair value and recorded in the profits and losses of the
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
current period.
Financial liabilities are classified at the time of initial recognition as: financial liabilities measured at fair value
and recorded in current profits and losses and financial liabilities measured at amortized cost.
Financial liabilities that meet one of the following conditions may be designated at the time of initial measurement
as financial liabilities measured at fair value and whose changes are recorded into the profits and losses of the
current period:
1) this designation can eliminate or significantly reduce accounting mismatches.
2) manage and evaluate the financial liability portfolio or financial assets and financial liabilities portfolio on the
basis of fair value according to the enterprise risk management or investment strategy specified in the official
written document, And report to key managers on this basis within the enterprise.
3) the financial liability contains embedded derivatives that need to be split separately.
Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables,
long-term receivables, creditor's rights investment, etc., are initially measured at fair value, and the related
transaction costs are included in the initial recognition amount; Accounts receivable that do not contain significant
financing components and accounts receivable that the Company has decided not to consider financing
components for more than one year are initially measured at the contract transaction price.
Interest calculated by the real interest rate method during the holding period is recorded into the current profit and
loss.
Upon recovery or disposal, the difference between the obtained price and the book value of the financial asset is
recorded into the current profit or loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive
income, including receivables financing, other debt investments, etc., shall be measured at fair value, and the
relevant transaction costs shall be included in the initial recognized amount. The financial asset is subsequently
measured at fair value, and changes in fair value are included in other comprehensive gains and losses except
interest, impairment losses or gains and gains and exchange gains calculated using the real interest rate method.
Upon termination of recognition, the accumulated gains or losses previously recorded in other comprehensive
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
income shall be transferred from other comprehensive income and recorded in the current profits and losses.
(3) Financial assets (equity instruments) measured at fair value and whose changes are included in other
consolidated income
Financial assets (equity instruments) measured at fair value and whose changes are included in other
comprehensive income, including investments in other equity instruments, shall be initially measured at fair value,
and relevant transaction costs shall be included in the initial recognized amount. The financial assets are measured
according to the fair value, and whose changes of the fair value are included in other comprehensive income. The
dividends obtained are recorded in the current profits and losses.
Upon termination of recognition, accumulated gains or losses previously recorded in other comprehensive
earnings are transferred from other comprehensive earnings and recorded in retained earnings.
(4) Financial assets measured at fair value and whose changes are included in the current profits and losses
Financial assets measured at fair value and whose changes are included in the current profits and losses, including
trading financial assets, derivative financial assets, other non-current financial assets, etc., shall be measured at
fair value, and the relevant transaction expenses shall be included in the current profits and losses. The financial
assets are measured at fair value, and changes in fair value are included in the current profit and loss.
(5) Financial liabilities measured at fair value and whose changes are included in the current profit and loss
Financial liabilities measured at fair value and whose changes are included in the current profits and losses
include transactional financial liabilities and derivative financial liabilities, which are initially measured at fair
value, and the relevant transaction expenses are included in the current profit and loss. The financial liability is
measured at fair value, and changes in fair value are included in the current profit and loss.
Upon termination of recognition, the difference between the book value and the consideration price is recorded in
the current profits and losses.
(6) Financial liabilities measured at amortization costs
Financial liabilities measured at amortization costs include short-term borrowings, notes payable, accounts
payable, other payables, long-term borrowings, bonds payable, long-term payables, and shall be initially measured
at fair value, and related transaction costs are included in the initial recognized amount.
The interest calculated using the actual interest rate method during the holding period is included in the current
profits and losses.
Upon termination of recognition, the difference between the consideration price and the book value of the
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
financial liability shall be recorded in the current profits and losses.
Financial asset termination recognition and financial asset transfer
Upon meeting one of the following conditions, the Company terminates the recognition of financial assets:
- Termination of contractual rights to collect cash flows from financial assets;
- Financial assets have been transferred and almost all risks and rewards of ownership of financial assets have
been transferred to the transferring party;
- Financial assets have been transferred and although the Company has neither transferred nor retained almost all
risks and rewards in the ownership of financial assets, it has not retained control over financial assets.
In the event of a transfer of financial assets, if almost all risks and rewards in the ownership of financial assets are
retained, the recognition of the financial assets shall not be terminated.
In judging whether the transfer of financial assets meets the above conditions for the termination of financial
assets, the principle of substance over form is adopted.
The company distinguishes the transfer of financial assets into the overall transfer of financial assets and partial
transfer. If the transfer of financial assets as a whole meets the conditions for termination of recognition, the
difference between the following two amounts shall be recorded into the profits and losses of the current period:
(1) The carrying value of the financial assets transferred;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of the change in
fair value that was originally directly included in the owner's equity (where the financial assets involved in the
transfer are financial assets (debt instruments) measured at fair value and whose changes are included in other
consolidated income.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of the
transferred financial assets as a whole shall be apportioned according to their relative fair value between the
termination of recognition and the non-termination of recognition, The difference between the following two
amounts shall be recorded into the profits and losses of the current period:
(1) To terminate the carrying value of the recognized portion;
(2) The consideration of the termination of the recognition portion corresponds to the sum of the amount of the
termination of the recognition portion (where the transferred financial assets are financial assets (debt instruments)
measured at fair value and whose changes are included in other consolidated income) in the cumulative amount of
the change in fair value originally directly included in the owner's equity.
If the transfer of financial assets does not meet the conditions for termination of recognition, the financial asset
shall continue to be recognized, and the consideration received shall be recognized as a financial liability.
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De-recognition of financial liabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof shall be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial
liabilities are substantially different from the existing ones in terms of contract terms, the existing financial
liabilities shall be derecognized, and at the same time, the new financial liability shall be recognized.
Where substantive changes are made to the contract terms of existing financial liability in whole or in part, the
existing financial liabilities or part thereof will be derecognized, and the financial liability the terms of which have
been modified will be recognized as a new financial liability.
Where financial liabilities are derecognized in whole or in part, the difference between the book value of the
financial liabilities derecognized and the consideration paid (including non-cash assets transferred out or new
financial liabilities borne) shall be included in the current profit or loss.
Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate the entire
book value of whole financial liabilities according to the comparative fair value of the part that continues to be
recognized and the de-recognized part. The difference between the book value allocated to the derecognized part
and the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shall
be included in the current profit or loss.
Determination method of the fair value of financial assets and financial liabilities
The fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. The
fair value of a financial instrument, for which there is no active market, is determined by using valuation
techniques. At the time of valuation, the Company adopts the techniques that are applicable in the current situation
and supported by enough available data and other information, selects the input values that are consistent with the
features of assets or liabilities as considered by market participants in relevant asset or liability transactions, and
gives priority to use relevant observable inputs. Unobservable inputs are used only under the circumstance when it
is impossible or unobservable inputs to obtain relevant observable inputs.
Test method and accounting treatment for impairment of financial assets
The Company considers all reasonable and based information, including forward-looking information, estimate
the expected credit loss of financial assets measured at amortized cost and financial assets (debt instruments)
measured at fair value and recorded in other consolidated income in a single or combined manner. The
measurement of expected credit loss depends on whether credit risk increases significantly after initial recognition
of financial assets.
If the credit risk of the financial instrument has increased significantly since the initial confirmation, the Company
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
measures its loss preparation at the amount equivalent to the expected credit loss of the financial instrument for
the whole life of the financial instrument; If the credit risk of the financial instrument has not increased
significantly since the initial confirmation, the Company measures its loss preparation at the amount equivalent to
the expected credit loss of the financial instrument for the next 12 months.The resulting increase or reversal of
loss preparation shall be recorded as impairment loss or gain in the current profit or loss.
Usually more than 30 days overdue, the Company believes that the credit risk of the financial instrument has
increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not
increased significantly since the initial confirmation.
If the credit risk of a 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 a financial asset has been devalued, the Company shall make provision for the
impairment of the financial asset on a single basis.
11. Note receivable
Consistent with the accounting policy of account receivable
12. Account receivable
For accounts receivable, whether or not it contains significant financing elements, the Company is prepared to
measure losses in accordance with the expected credit loss for the entire life span. For the existence of objective
evidence to show the existence of impairment, as well as other accounts receivable applicable to the individual
evaluation of the impairment test, to confirm the expected credit loss, the provision for individual impairment. For
accounts receivable without objective evidence of impairment or when a single financial asset is unable to assess
the expected credit loss at reasonable cost, the company divides the accounts receivable into several combinations
according to the characteristics of credit risk. The basis for determining the combination 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
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loss for the entire duration.
13. Receivables financing
Consistent with the Accounting Standards for Business Enterprise
14. Other receivable
Methods of determining for expected credit losses of other receivable and accounting treatment
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.
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 Other Account 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. Inventory
Classification of inventories and cost
The inventories are classified into: raw materials, commodity stocks, low-value consumables, food materials,
fuels, etc.
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.
Determining basis of the net realizable value of inventories and method for inventory depreciation reserve
On the balance sheet date, inventory should be measured according to the lower cost and net realizable value.
When the inventory cost is higher than its net realizable value, it shall be prepared to raise the inventory price. Net
realizable value refers to the estimated selling price of inventory in daily activities minus the estimated cost to be
incurred at the time of completion, the estimated sales expenses and the amount of related taxes and fees.
Inventory of goods directly used for sale, such as finished goods, goods in stock and materials used for sale, to
determine the net realizable value in the normal course of production and operation at the estimated selling price
of the inventory minus the estimated sales expenses and related taxes; inventory of materials requiring processing
to determine the net realizable value in the normal course of production and operation at the estimated selling
price of the finished product minus the estimated costs to be incurred at the time of completion, estimated sales
expenses and related taxes; The net realizable value of inventory held for the execution of a sales contract or a
labor contract is calculated on the basis of the contract price. If the quantity of inventory held is more than the
quantity ordered in the sales contract, The net realizable value of excess inventory is calculated on the basis of
general sales price.
If the factors affecting the previous write-down of inventory value have disappeared, resulting in the net realizable
value of inventory being higher than its book value, it shall be reversed within the reserve amount of the original
inventory falling price, and the amount transferred back shall be recorded into the profits and losses of the current
period.
Inventory system
Perpetual inventory system is adopted.
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. Contractual assets
Accounting policies effective 1 January 2020
Methods and criteria for the recognition of contract assets
The Company lists contract assets or contractual liabilities in the balance sheet according to the relationship
between performance obligations and customer payments. The Company's right to receive consideration (and
depends on factors other than the passage of time) for the transfer of goods or services to customers is listed as a
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contract asset. Contract assets and contractual liabilities under the same contract are shown in net terms. The
Company's right to collect consideration from customers unconditionally (depending on the passage of time only)
is shown separately as receivables.
Methods of determining expected credit loss of contract assets and accounting treatment
The method of determining the expected credit loss of the contract assets and the method of accounting treatment
are detailed in the test method and accounting treatment method of the impairment of the financial assets in note
III(10).6. Test methods and accounting treatment for impairment of financial assets"
17. Contract costs
Accounting policies effective 1 January 2020
Contract cost includes contract performance cost and contract acquisition cost.
If the costs incurred by the Company for the performance of the contract do not fall within the scope of the
relevant standards, such as inventory, fixed assets or intangible assets, it shall be recognized as an asset as the
contract performance cost when the following conditions are met:
The cost is directly related to a current or expected contract.
This cost increases the company's future resources for performance obligations.
The cost is expected to be recovered.
If the incremental cost incurred by the Company in order to obtain the contract is expected to be recovered, it shall
be recognized as an asset as the contract acquisition cost.
The assets related to the contract cost shall be amortized on the same basis as the recognition of the goods or
services income related to the asset; However, if the amortization period of the contract acquisition cost does not
exceed one year, the Company shall account for the profits and losses of the current period at the time of
occurrence
If the book value of the assets related to the contract cost is higher than the difference between the following two
items, the Company shall make provision for the impairment of the excess part and shall confirm the impairment
loss of the assets:
1) The remaining consideration is expected to be obtained as a result of the transfer of goods or services related to
the asset;
2) Estimated costs to be incurred for the transfer of the relevant goods or services.
If the above-mentioned difference is higher than the book value of the asset, the company shall return the original
impairment provision and account for the profits and losses of the current period. However, the book value of the
transferred assets does not exceed the book value of the assets on the date of return.
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18. Assets holding for Sale
19. Investment in debt obligations
20. Other investment in debt obligations
21. Long-term account receivable
22.Long-term equity investment
Judgment criteria for joint control and significant influence
Common control refers to the common control of an arrangement according to the relevant agreement, and the
related activities of the arrangement must be agreed by the participants who share the control right before they can
make decisions. If the company, together with other partners, exercises joint control over the invested unit and has
the right to the net assets of the invested unit, the invested unit shall be the joint venture of the company.
Major influence refers to the power to participate in the decision-making of the financial and business decisions of
the invested units, but it cannot control or jointly control the formulation of these policies with other parties. If the
Company can exert great influence on the invested unit, the invested unit shall be a joint venture of the company.
Determination of initial investment cost
(1) Long-term equity investments resulting from merger
For the long-term equity investment of the subsidiary formed by the merger under the same control, the initial
investment cost of the long-term equity investment is based on the share of the book value of the owner's equity of
the merged party in the consolidated financial statements of the final controlling party on the merger date.The
difference between the initial investment cost of long-term equity investment and the book value of payment
consideration is adjusted to adjust the equity premium in the capital reserve; when the equity premium in the
capital reserve is insufficient, the retained earnings are adjusted.If the initial investment cost of the long-term
equity investment recognized in accordance with the above principles is the difference between the book value of
the long-term equity investment before the merger and the book value of the new consideration of the shares
further obtained on the date of the merger, the equity premium is adjusted, and the retained earnings are reduced.
For the long-term equity investment of subsidiaries formed by the merger of enterprises under the same control,
the combined cost determined on the purchase date is taken as the initial investment cost of the long-term equity
investment. If the invested unit under the same control can be controlled due to additional investment and other
reasons, the initial investment cost shall be taken as the sum of the original equity investment book value plus the
new investment cost.
(2) Long-term equity investments obtained by means other than merger
Long-term equity investments obtained by cash payment are based on the actual purchase price as the initial
investment cost.
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The long-term equity investment obtained by issuing equity securities shall be regarded as the initial investment
cost according to the fair value of issuing equity securities.
Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under cost method
The Company's long-term equity investment in subsidiaries is accounted for by cost method unless the investment
meets the conditions for holding for sale. In addition to the actual payment of the investment or the declared but
not yet issued cash dividends or profits contained in the consideration, the company shall recognize the current
investment income in accordance with the cash dividend or profit declared by the invested unit.
(2) Long-term equity investments accounted for under the equity method
The long-term equity investment of joint venture and joint venture shall be accounted by equity method. When the
initial investment cost is greater than the investment, it should enjoy the difference of the fair value share of the
identifiable net assets of the invested unit, and not adjust the initial investment cost of the long-term equity
investment.
The Company shall recognize the investment income and other combined income according to the net profit and
loss realized by the invested unit and the share of other combined income, and adjust the book value of the
long-term equity investment.
When recognizing the share of the net profit and loss of the invested unit, other comprehensive income and other
owner's equity changes, it shall be based on the fair value of the identifiable net assets of the invested unit at the
time of obtaining the investment, and shall be confirmed after adjusting the net profit and other comprehensive
income of the invested unit in accordance with the accounting policy and accounting period of the company.
The unrealized internal transaction gains and losses between the Company and the joint venture and the joint
venture shall be offset by the portion attributable to the Company calculated in proportion to the amount to be
enjoyed, and the investment income shall be recognized on this basis, except where the assets invested or sold
constitute business. If the unrealized internal transaction loss with the invested unit belongs to the impairment loss
of assets, the full amount shall be confirmed.
The net loss of a company to a joint venture or a joint venture shall, in addition to the obligation to bear additional
losses, be reduced to zero by the book value of the long-term equity investment and other long-term interests that
essentially constitute the net investment in the joint venture or joint venture. If the joint venture or joint venture
realizes net profit after the joint venture or joint venture, the Company shall restore the confirmed income sharing
amount after the income sharing amount makes up for the unrecognized loss share amount.
(3) Disposal of long-term equity investments
Disposal of long-term equity investment, its book value and the actual acquisition price difference is accounted
into the current profit and loss.
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Where long-term equity investment accounted by part of the disposal equity method is still accounted for by the
equity method, the other comprehensive income recognized by the original equity method is carried forward
according to the corresponding proportion on the same basis as the assets or liabilities directly disposed of by the
invested unit, and the other owner's equity changes are transferred to the current profit and loss proportionally.
If the joint control or significant influence on the invested unit has been lost due to the disposal of equity
investment, other comprehensive income recognized by the original equity investment due to the use of equity
accounting shall be treated on the same basis as the direct disposal of related assets or liabilities by the invested
unit.
Where the control of the invested unit has been lost due to the disposal of part of the equity investment and other
reasons, when preparing the individual financial statements, the remaining equity can be jointly controlled or
significantly affected by the invested unit, and shall be accounted for according to the equity method, and adjusted
by equity method accounting when the remaining equity is regarded as acquired. Other comprehensive income
recognized prior to obtaining the control of the invested unit shall be carried forward proportionally on the same
basis as the assets or liabilities directly disposed of by the invested unit, and transferred to the profits and losses of
the current period due to the changes in other owners' equity recognized by equity method accounting; If the
surplus equity cannot exercise joint control or exert significant influence on the invested unit, it shall be
recognized as a financial asset, and the difference between the fair value and the book value on the date of loss of
control shall be recorded into the profits and losses of the current period.
Where the subsidiary equity investment is disposed of step by step through multiple transactions until the loss of
control is a package transaction, each transaction is treated as a transaction that disposes of the subsidiary equity
investment and loses control. If it is not a package transaction, each transaction shall be treated separately.
23. Investment properties
Measurement mode
Measured by cost method
Depreciation or amortization method
The investment properties refer to the properties held for earning rentals or/and capital appreciation, including
leased land use right, land use right held for transfer upon appreciation, and leased building (including self-built
buildings or buildings developed for renting or buildings under construction or development for future renting).
The subsequent expenditure related to investment real estate is included in the cost of investment real estate when
the relevant economic benefits are likely to flow in and its cost can be reliably measured; otherwise, it is recorded
into the profits and losses of the current period when it occurs
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.
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24. Fixed assets
(1) Recognition criteria
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or
business management with useful lives exceeding one year. Fixed assets are recognized when they simultaneously
meet the following conditions:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2) The costs of the fixed assets can be measured reliably.
Fixed assets are initially measured at cost, taking into account the impact of expected disposal costs.
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefits
associated with them are likely to flow in and their costs can be reliably measured; for the replaced part, the book
value is terminated; All other subsequent expenditures are recorded at the time of occurrence into the current
profit or loss
(2) Depreciation method
Yearly depreciation
Asset type Depreciation method Year for depreciation Residual value rate
rate
Buildings and
Straight-line method 20-40 5% 4.75%-2.37%
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
Transportation
Straight-line method 7-12 5% 13.57%-7.91%
equipment
Other equipment 8 5% 11.87%
Depreciation of fixed assets is classified by the method of average life, and the depreciation rate is determined
according to the category of fixed assets, the expected useful life and the estimated net residual value rate.For the
fixed assets with impairment provisions, the depreciation amount shall be determined in the future period
according to the book value after deducting the impairment preparation and according to the useful life.If the
service life of each component of fixed assets is different or the economic benefits are provided to the enterprise
in different ways, different depreciation rates or depreciation methods are selected to calculate depreciation
separately.
The fixed assets leased by financial lease adopt depreciation policy consistent with their own fixed assets.If it can
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reasonably determine that ownership of the leased assets will be acquired at the expiration of the lease term,
depreciation shall be calculated within the useful life of the leased assets; if it is impossible to reasonably
determine the ownership of the leased assets at the expiration of the lease term, Depreciation is calculated within a
shorter period of the lease term and the useful life of the leased assets.
(3) Identification basis, valuation method and depreciation of the financing leased fixed 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;
5) The leased assets are of a special nature and can only be used by the lessee if they are not substantially
modified
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
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
Recognition principles of capitalization of borrowing costs
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
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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.
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.
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.
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.
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.
Calculation method of capitalization amount of borrowing costs
For special loans borrowed for the purchase or production of assets that meet the capitalization conditions, the
borrowing costs actually incurred in the current period shall be specially borrowed, less the amount of interest
income earned by the unused loan funds deposited in the bank or investment income obtained by temporary
investment to determine the capitalized amount of the borrowing costs.
For a general loan occupied for the purchase or production of assets that meet the capitalization conditions, the
amount of borrowing expenses to be capitalized shall be calculated according to the weighted average of the
cumulative asset expenditure exceeding the part of the special loan multiplied by the capitalization rate of the
general loan occupied. The capitalization rate is determined by the weighted average real interest rate of the
general loan.
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During the capitalization period, the exchange difference between the principal and interest of the foreign
currency special loan shall be capitalized and included in the cost of the assets eligible for capitalization. The
exchange difference between the principal and interest of foreign currency loans other than foreign currency
special loans is recorded into the current profit and loss.
27. Biological assets: Nil 28. Oil-and-gas assets: Nil
29. Right-of-use assets: Nil
30. Intangible assets
(1) Measurement method, useful lives and impairment testing
1) Measurement of intangible assets
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.
2)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
3) Determination basis of intangible assets with indefinite useful lives
The useful lives of the intangible assets are analyzed and determined on acquisition.
Intangible assets with definite useful lives shall be amortized 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.
As at the balance sheet date, the Company had no intangible assets with indefinite useful life.
(2) Accounting policy of internal R&D expenditures
31. Long-term assets impairment
Long-term equity investment, investment real estate measured by cost model, fixed assets, construction projects in
progress, intangible assets with limited useful life, oil and gas assets and other long-term assets, if there are signs
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of impairment on the balance sheet date, carry out impairment tests. If the impairment test results show that the
recoverable amount of the asset is lower than its book value, the impairment provision shall be made according to
its difference and included in the impairment loss. The recoverable amount is the higher between the fair value of
the asset minus the disposal cost and the present value of the expected future cash flow of the asset. The asset
impairment provision is calculated and confirmed on the basis of a single asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group is determined by the asset group
to which the asset belongs. The asset group is the smallest portfolio that can independently generate cash inflows.
For the goodwill formed by the merger of the enterprise, the intangible assets with uncertain service life, and the
intangible assets that have not reached the usable state, whether or not there are signs of impairment, at least at the
end of each year, the impairment test is carried out.
The Company conducts a goodwill impairment test, and the carrying value of the goodwill formed by the business
merger shall be allocated to the relevant asset groups in a reasonable manner from the date of purchase; If it is
difficult to apportion to the relevant asset group, it shall be apportioned to the relevant asset group combination.
The relevant asset group or combination of asset groups is the asset group or combination of asset groups that can
benefit from the synergies of the enterprise merger.
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. And goodwill of the asset
group or combination of group assets impairment test, comparing its book value and recoverable amount, such as
the recoverable amount is lower than the book value, the amount of impairment loss first deduction allocation to
the asset group or combination of group assets in the book value of the goodwill, according to the asset group or
combination of group assets all assets except goodwill in the book value of the proportion, the book value of the
assets in proportion to offset each other. Once the above assets impairment loss is recognized, it will not be carried
back in future accounting periods.
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.
Amortization method
Long-term deferred expenses are amortized evenly over the beneficial period.
Amortization years
Item Amortization years
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4 years
Hotel exterior decoration
4 years
Fire stairs renovation
5 years
Renovation of guest rooms in Building C, Decoration and
renovation of Building A
5 years
B Building Renovation Project
5 years
Landscape reconstruction
5 years
Staff quarters renovation
5 years
Villa renovation
5 years
Swimming pool renovation, Pavement modification projects
5 years
Roof waterproofing projects
33.Contractual liabilities
Accounting policies effective 1 January 2020
The Company lists contract assets or contractual liabilities in the balance sheet according to the relationship
between performance obligations and customer payments. The Company’s obligations to transfer goods or
provide services to customers that have received or receivable customer consideration are listed as contractual
liabilities. Contract assets and contractual liabilities under the same contract are shown in net terms.
34.Employee compensation
(1) Short-term compensation
During the accounting period in which employees provide service to the Company, the short-term remuneration
actually incurred is recognized as liabilities and included into the current profit or loss or the assets-related cost.
The social insurance premium and the housing provident fund paid by the Company for its employees, together
with the labor union expenditures and employee education drew as required are used to calculate and determine
the relevant employee compensation amount based on the prescribed accrual basis and accrual proportion during
the accounting period in which the employees provide services to the Company.
The employee welfare expenses incurred by the Company shall be recorded into the current profit or loss or
related asset cost according to the actual amount incurred at the time of actual occurrence, in which the
non-monetary benefits shall be measured at fair value.
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(2) Dismissal welfare
1) Defined contribution plans
The Company shall pay basic old-age insurance and unemployment insurance for its employees in accordance
with the relevant regulations of the local government. During the accounting period in which the employees
provide services to the Company, the amount to be paid shall be calculated on the basis and proportion of the local
regulations. In addition, the Company also participated in the enterprise annuity plan / supplementary pension
insurance fund approved by the relevant state departments. The Company pays to the annuity plan / local social
insurance institution according to a certain proportion of the total salary of the staff and workers, and the
corresponding expenses are included in the current profit or loss or the 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.
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(3) Post-employment benefits
If the Company provides dismissal benefits to employees, the employee's salary liabilities arising from the
dismissal benefits shall be recognized at an early date, and shall be included in the profits and losses of the current
period. When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of the
labor relations plan or the reduction proposal; When the company recognizes the costs or expenses associated with
the reorganization involving the payment of dismissal benefits.
(4) Accounting method for other long-term employee welfare
35. Lease liability
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.
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.
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
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items, the best estimates should be determined according to all the possible outcomes with their relevant
probabilities.
When all or part of the expenses necessary for the settlement of 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
38. Other financial instrument as preferred stock and perpetual bond etc.
39. Revenue
Accounting policies used for revenue recognition and measurement
Accounting policies effective 1 January 2020
Accounting policies used for revenue recognition and measurement
The Company has fulfilled its performance obligation in the contract, that is, to recognize revenue when the
customer acquires control of the relevant goods or services. Access to control of related goods or services means
that it can dominate the use of the goods or services and obtain almost all the economic benefits from them.
If the contract contains two or more performance obligations, the Company shall, on the commencement date of
the contract, apportion the transaction price to each individual performance obligation in accordance with the
relative proportion of the individual selling price of the goods or services promised by each individual
performance obligation. The Company measures its income according to the transaction price apportioned to each
individual performance obligation.
Transaction price refers to the amount of consideration that the company is expected to be entitled to receive for
the transfer of goods or services to customers, excluding the amount collected on behalf of third parties and the
amount expected to be returned to customers. The Company according to the terms of the contract, combined with
its previous practice to determine the transaction price, and in determining the transaction price, consider the
variable consideration, the major financing components existing in the contract, non-cash consideration, payable
customer consideration and other factors. The Company shall determine the transaction price containing variable
consideration at a amount not exceeding the amount of the cumulative recognized income most likely not to be
significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing component in
the contract, the Company shall determine the transaction price in accordance with the amount payable in cash
upon the assumption that the customer acquires control of the goods or services, the difference between the
transaction price and the contract consideration shall be amortized by the real interest rate method during the
contract period.
If one of the following conditions is met, the performance obligation shall be fulfilled within a certain period of
time; otherwise, the performance obligation shall be fulfilled at a certain time:
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The customer acquires and consumes the economic benefits of the Company's performance at the same
time.
The customer can control the goods under construction during the performance of the Company.
The goods produced in the course of the Company's performance have irreplaceable uses, and the
Company has the right to collect money for the cumulative performance portion completed so far throughout the
contract period.
For performance obligations performed within a certain period of time, the Company shall recognize the income
according to the performance schedule within that period, except where the performance schedule cannot be
reasonably determined. The Company considers the nature of goods or services, using the output method or input
method to determine the progress of performance. When the performance schedule cannot be reasonably
determined, the cost that has been incurred is expected to be compensated, and the company recognizes the
income according to the cost amount that has been incurred until the performance schedule can be reasonably
determined.
For performance obligations at a certain point, the Company recognizes revenue at the time when the customer
acquires control of the relevant goods or services. In determining whether the customer has obtained control over
the goods or services, the Company considers the following signs:
The Company has the right to collect the goods or services, that is, the customer has the current obligation
to pay for the goods or services.
The Company has transferred the legal ownership of the goods to the customer, that is, the customer has
the legal ownership of the goods.
The Company has transferred the goods to customers, that is, customers have physical possession of the
goods.
The Company has transferred the main risk and reward in the ownership of the commodity to the customer,
that is, the customer has obtained the main risk and reward in the ownership of the commodity.
The customer has accepted the goods or services, etc.
Specific principles for revenue recognition
Hotel business revenue sources include guest rooms, catering, merchandise sales, entertainment services and so on.
Revenue from guest rooms, catering and entertainment services is recognized at the end of the service, and
revenue from the sale of goods is recognized as revenue when the control of the goods is transferred to the
customer, that is, when the goods are delivered to the customer and there is no non-performance obligation
affecting the customer's receipt of the goods.
Differences in accounting policies for revenue recognition due to the different operating models for the same type
of business : Nil
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40. Government grants
41.Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. In addition to the income tax arising from the
merger of the enterprise and the transactions or events directly included in the owner's equity (including other
comprehensive income), the company shall include the current income tax and deferred income tax into the profits
and losses of the current period.
Deferred income tax assets and deferred income tax liabilities are recognized on the basis of the difference
(temporary difference) between the tax basis of assets and liabilities and their book value.
For deductible temporary difference recognition deferred income tax assets, the amount of taxable income that is
likely to be obtained in future periods to offset deductible temporary differences is limited. For deductible losses
and tax credits that can be carried forward for subsequent years, the corresponding deferred income tax assets are
recognized to the extent that the future taxable income that is likely to be used to offset deductible losses and tax
credits is obtained.
For taxable temporary differences, deferred income tax liabilities are recognized except in special cases.
Special cases where deferred income tax assets or deferred income tax liabilities are not recognized include:
Initial recognition of goodwill;
A transaction or event that is neither a merger of an enterprise nor an event that affects the accounting profit
or taxable income (or deductible loss) at the time of its occurrence.
The deferred income tax liability is recognized for taxable temporary differences related to the investment of
subsidiaries, associated enterprises and joint ventures unless the Company can control the time when the
temporary difference is reversed and the temporary difference is likely not to be reversed in the foreseeable future.
Deferred income tax assets are recognized for deductible temporary differences related to the investment of
subsidiaries, associated enterprises and joint ventures when the temporary differences are likely to be reversed in
the foreseeable future and are likely to receive taxable income in the future to offset deductible temporary
differences.
On the balance sheet date, for deferred income tax assets and deferred income tax liabilities, according to the
provisions of the tax law, according to the expected recovery of related assets or liquidation of related liabilities
during the applicable tax rate measurement.
On the balance sheet date, the company reviews the book value of deferred income tax assets. If the future period
is likely to be unable to obtain sufficient taxable income to offset the benefits of deferred income tax assets, the
book value of deferred income tax assets is written down. Where sufficient taxable income is likely to be obtained,
the amount of the write-down is reversed.
The current income tax assets and the current income tax liabilities are reported as net offset when they have the
statutory right to settle on a net basis and are intended to settle on a net basis or to obtain assets and liabilities at
the same time.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are shown as net offsets
when the following conditions are met:
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The tax payer has the legal right to settle current income tax assets and current income tax liabilities by net;
Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the
same tax collection and management department on the same tax payer or to different tax payer, but in each future
period of transfer of important deferred income tax assets and liabilities, The tax payer intends to net settle current
income tax assets and liabilities or obtain assets and liabilities at the same time..
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.
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.
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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: Nil
44.Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√Applicable □Not applicable
Content of and reason for changes in accounting Procedures for examination
Note
policies and approval
Implementation of Accounting Standards for Resolution of the Board of
Implementation from 1 January 2020
Business Enterprises No. 14 -- Revenue Directors
Implementation of Interpretation of Accounting Resolution of the Board of
Implementation from 1 January 2020
Directors
Standards for Business Enterprises No. 13
Implementation of the Interim Provisions on Resolution of the Board of
Implementation from 1 January 2020
Accounting Treatment for Carbon Emission Trading Directors
Implement the COVID-19 Outbreak Related Rental Resolution of the Board of
Implementation from 1 January 2020
Concession Accounting Rules Directors
1) Implement the Accounting Standards for Business Enterprises No. 14 -- Revenue (revised in 2017) (hereinafter referred to as the
"new revenue standards")
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 14 - Revenue in 2017. The revised standard
stipulates that the first implementation of the standard should adjust the amount of retained earnings and other related items in the
financial statements at the beginning of the year according to the cumulative impact, without adjusting the information for
comparable periods.
The Company implement the new revenue standards since January 1, 2020. In accordance with the provisions of the Standards, the
Company will only adjust the amount of retained earnings at the beginning of 2020 and other related items in the financial statements
for the cumulative impact of contracts that have not been completed at the first execution date, not the comparative financial
statements.
The main effects of the implementation of the new revenue guidelines on the Company's January 1, 2020 financial statements are as
follows:
Item 31.Dec.2019 Reclassification Remeasurement 1.Jan.2020
786,715.42 -786,715.42
Advances from customers
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742,184.36 742,184.36
Contractual liabilities
Other current liabilities 44,531.06 44,531.06
Compared with the original revenue standards, the impact of the implementation of the new revenue criteria on the relevant items in
the Company's financial statements for the current year is listed below:
Ending balance under the new Balance at the end of the year under
Item Adjustment
standards the original standards
-663,862.45 663,862.45
Advances from customers
626,285.33 626,285.33
Contractual liabilities
37,577.12 37,577.12
Other current liabilities
2) Implementation of Interpretation of Accounting Standards for Business Enterprises No. 13
The Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No. 13 (Finance and Accounting
[2019] No. 21, hereinafter referred to as "Interpretation No. 13") on December 10, 2019, which took effect on January 1, 2020 and
does not require retroactive adjustment.
① Recognition of the affiliated party
Interpretation No. 13 makes it clear that the following circumstances constitute an affiliated party: a joint venture or joint venture
between the enterprise and other members of the enterprise group (including the parent company and subsidiaries); Joint ventures of
an enterprise and other joint ventures or associates of an enterprise. In addition, Interpretation No. 13 also makes it clear that only
two or more enterprises that are materially affected by one party do not constitute affiliated parties, and adds that joint ventures
include joint ventures and their subsidiaries, and joint ventures include joint ventures and their subsidiaries.
② Definition of business
Interpretation No. 13 improves the three elements of business composition, elaborates the judgment conditions of business
composition, and introduces the choice of "concentration test" to simplify the judgment of whether a portfolio acquired under
different control constitutes business to a certain extent.
The Company has implemented Interpretation No. 13 since January 1, 2020, and the comparative financial statements have not been
adjusted. The Company has not implemented Interpretation No. 13, which has had a significant impact on the Company's financial
position and operating results
3) Implementation of the Interim Provisions on Accounting Treatment for Carbon Emission Trading
The Ministry of Finance issued the Interim Provisions on Accounting Treatment of Carbon Emission Trading ([2019] No. 22) on
December 16, 2019, which is applicable to relevant enterprises of key emitters that carry out carbon emission trading business in
accordance with the Interim Measures on the Administration of Carbon Emission Trading and other relevant provisions (hereinafter
referred to as key emitters). The regulation will take effect on January 1, 2020, and key emission enterprises should apply the
regulation by adopting the future application method.
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The Company has implemented this provision since January 1, 2020, and the comparative financial statements are not adjusted. The
implementation of this provision has not had a significant impact on the Company's financial position and operating results.
4) Implement the COVID-19 Outbreak Related Rental Concession Accounting Rules
On June 19, 2020, the Ministry of Finance (MOF) issued the Accounting Regulations on the Treatment of Rent Concessions Related
to COVID-19 (Finance and Accounting [2020] No. 10), which has came into force on June 19, 2020, allowing enterprises to adjust
the relevant rent concessions that occurred between January 1 2020 to the implementation date of this regulation. According to this
regulation, enterprises can choose to adopt a simplified method for accounting treatment of rent concessions, such as rent remission
and deferred payment, which are directly caused by COVID-19.
The Company has implemented this provision since January 1, 2020, and the comparative financial statements are not adjusted. The
implementation of this provision has not had a significant impact on the Company's financial position and operating results.
(2) Changes in accounting estimates
□Applicable √Not applicable
(3) Adjustment on relevant items of financial statement at begging of the year when implemented the new
revenue standards or new leasing standards since 2020
Applicable
Whether to adjust the balance sheet accounts at the beginning of the year
√Yes □No
Consolidated Balance Sheet
In RMB
Item 31 December 2019 1 January 2020 Adjustment
Current assets:
Monetary funds 7,422,939.89 7,422,939.89
Balances with clearing companies
Loans to other banks and financial
institutions
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 311,083.92 311,083.92
Receivables financing
Advances to suppliers
Premium receivable
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Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 571,744.52 571,744.52
Including: Interest receivable
Dividend receivable
Financial assets purchased under
resale agreements
Inventory 254,257.19 254,257.19
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 2,574,442.57 2,574,442.57
Total current assets 11,134,468.09 11,134,468.09
Non-current assets:
Disbursement of advances and loans
Lending investments
Other lending investments
Long-term receivables
Long-term equity investments
Other equity instruments investments
Other non-current financial assets
Investment properties 7,909,956.87 7,909,956.87
Fixed assets 35,075,195.98 35,075,195.98
Construction in progress 488,522.10 488,522.10
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 21,392,861.88 21,392,861.88
Development expenditures
Goodwill
Long-term deferred expenses 11,520,179.33 11,520,179.33
Deferred income tax assets
Other non-current assets
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Total non-current assets 76,386,716.16 76,386,716.16
Total assets 87,521,184.25 87,521,184.25
Current liabilities:
Short-term borrowings
Borrowings from central bank
Deposit funds
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,250,409.75 1,250,409.75
Advances from customers 786,715.42 786,715.42
Contractual liability
Funds from sales of financial assets
under repurchase agreement
Absorption of deposits and interbank
deposits
Receiving from vicariously traded
securities
Receiving from vicariously sold
securities
Employee compensation payable 2,552,996.37 2,552,996.37
Taxes and surcharges payable 307,257.85 307,257.85
Other payable 2,647,515.86 2,647,515.86
Including: Interest payable
Dividend payable
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities classified as held for sale
Non-current liabilities maturing
within one year
Other current liabilities
Total current liabilities 7,544,895.25 7,544,895.25
Non-current liabilities:
Reserves for insurance contracts
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Long-term borrowings
Bonds payable
Including: preferred stock
Perpetual bonds
Lease liability
Long-term payable
Long-term employee compensation
payable
Accrual liabilities 1,489,685.04 1,489,685.04
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,489,685.04 1,489,685.04
Total liabilities 9,034,580.29 9,034,580.29
Owners' equity:
Share capital 364,100,000.00 364,100,000.00
Other equity instruments
Including: preferred stock
Perpetual bonds
Capital reserves 54,142,850.01 54,142,850.01
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves
General risk reserves
Undistributed profit -339,756,246.05 -339,756,246.05
Total equity attributable to owners of the
78,486,603.96 78,486,603.96
parent company
Minority equity
Total owners' equity 78,486,603.96 78,486,603.96
Total liabilities and owners' equity 87,521,184.25 87,521,184.25
Explanation on adjustment: nil
Balance sheet of parent company
In RMB
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Item 31 December 2019 1 January 2020 Adjustment
Current assets:
Monetary funds 7,421,452.59 7,421,452.59
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 311,083.92 311,083.92
Receivables financing
Advances to suppliers
Other receivables 571,744.52 571,744.52
Including: Interest
receivable
Dividend
receivable
Inventory 254,257.19 254,257.19
Contractual assets
Assets held for sale
Non-current assets maturing
within one year
Other current assets 2,574,442.57 2,574,442.57
Total current assets 11,132,980.79 11,132,980.79
Non-current assets:
Lending investments
Other lending investments
Long-term receivables
Long-term equity
1,000,000.00 1,000,000.00
investments
Other equity instruments
investments
Other non-current financial
assets
Investment properties 7,909,956.87 7,909,956.87
Fixed assets 35,075,195.98 35,075,195.98
Construction in progress 488,522.10 488,522.10
Productive biological assets
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Oil and gas assets
Right-of-use assets
Intangible assets 21,392,861.88 21,392,861.88
Development expenditures
Goodwill
Long-term deferred expenses 11,520,179.33 11,520,179.33
Deferred income tax assets
Other non-current assets
Total non-current assets 77,386,716.16 77,386,716.16
Total assets 88,519,696.95 88,519,696.95
Current liabilities:
Short-term borrowings
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,250,409.75 1,250,409.75
Advances from customers 786,715.42 786,715.42
Contractual liability
Employee compensation
2,552,996.37 2,552,996.37
payable
Taxes and surcharges payable 307,210.05 307,210.05
Other payable 3,646,984.56 3,646,984.56
Including: Interest payable
Dividend payable
Liabilities classified as held
for sale
Non-current liabilities
maturing within one year
Other current liabilities
Total current liabilities 8,544,316.15 8,544,316.15
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred stock
Perpetual bonds
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Lease liability
Long-term payable
Long-term employee
compensation payable
Accrual liabilities 1,489,685.04 1,489,685.04
Deferred income
Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities 1,489,685.04 1,489,685.04
Total liabilities 10,034,001.19 10,034,001.19
Owners' equity:
Share capital 364,100,000.00 364,100,000.00
Other equity instruments
Including: preferred stock
Perpetual bonds
Capital reserves 54,142,850.01 54,142,850.01
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves
Undistributed profit -339,757,154.25 -339,757,154.25
Total owners' equity 78,485,695.76 78,485,695.76
Total liabilities and owners' equity 88,519,696.95 88,519,696.95
Explanation on adjustment: nil
(4) Explanation of the retrospective adjustment on comparative data in the prior period while implemented
new revenue standards or new leasing standards for the first time since 2020
□Applicable √Not applicable
45. Other
VI. Taxation
1. Major tax types and tax rates
Taxes Basis for tax assessment Tax rate
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Output VAT is calculated based on taxable sales revenue and service
Value added tax revenue calculated in accordance with tax laws and VAT payable or
5%, 6%, 9%, 13%
(VAT) taxable sales revenue shall be the difference after deducting the input
VAT deductible in the same period
Urban
maintenance and Levied based on VAT payable 7%
construction tax
Enterprise income
Levied based on the taxable income 25%, 20%
tax
Education surtax Levied based on VAT payable 3%
Local education
Levied based on VAT payable 2%
surtax
Housing property Remaining value after deducting 30% from the original value of the
1.2%, 12%
tax house (including the occupied land price), and rent revenue
Land use tax Land area 18 yuan/ ㎡
Disclose reasons for different taxpaying body: Nil
2. Tax preference
1) According to Announcement of the Ministry of Finance of Taxation Administration No. 8, 2020
"Announcement of Tax Policies on Supporting the Prevention and Control of COVID-19 Infected Pneumonia
Epidemic", from January 1, 2020, taxpayers will be exempted from value-added tax on income derived from the
provision of public transportation, living services, and the express delivery service of essential living materials for
residents.
2) According to the Notice on Implementing the Preferential Tax Reduction Policy for Small and Micro-sized
Enterprises (Caishui [2019] No. 13) issued by the Ministry of Finance and the State Administration of Taxation,
small-scale taxpayers of value-added tax can reduce resource tax, urban maintenance and construction tax, real
estate tax, urban land use tax, etc. within 50% of the tax rate. The company's real estate tax and urban land use tax
are levied by half. For small and low-profit enterprises whose annual taxable income does not exceed 1 million
yuan, a 25% reduction will be included in the taxable income, and the corporate income tax will be paid at a tax
rate of 20%, the subsidiary of the Company, Wengao Tourism, is a small and low-profit enterprise, enjoying the
preferential income tax policy of reducing the taxable income amount by 25% and paying the enterprise income
tax at the tax rate of 20%.
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3. Other: nil
VII. Notes to the items of consolidate financial statements
1. Monetary funds
In RMB
Item Ending balance Beginning balance
Cash on hand 179,111.10 302,077.12
Bank deposits 2,745,348.65 7,120,862.77
Total 2,924,459.75 7,422,939.89
Other explanation: nil
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
Ending balance Beginning balance
Provision for bad
Book balance Provision for bad debt Book balance
Category Book debt Book
Proportio Provisi value Propo Amou Provisio value
Amount Amount Amount
n on ratio rtion nt n ratio
Including:
Accounts
receivable with
100.0 109,7
provision for bad 592,008.33 100.00% 162,705.01 27.48% 429,303.32 420,849.75 26.08% 311,083.92
0% 65.83
debts based on
portfolios
Including:
100.0 109,7
Total 592,008.33 100.00% 162,705.01 27.48% 429,303.32 420,849.75 26.08% 311,083.92
0% 65.83
Provision for bad debts based on single item: nil
Provision for bad debt based on portfolios: 162,705.01 yuan
In RMB
Ending balance
Name
Book balance Provision for bad debt Provision ratio
124
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Within 1 year 479,847.53 50,544.21 10.53%
1-2 years 19,092.00 19,092.00 100.00%
2-3 years 2,259.00 2,259.00 100.00%
3-4 years 566.00 566.00 100.00%
4-5 years 785.00 785.00 100.00%
Over 5 years 89,458.80 89,458.80 100.00%
Total 592,008.33 162,705.01 --
A description of the basis for determining the portfolio: nil
Estimated credit loss by portfolio: aging portfolio accrual items
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
Account age Book balance
Within 1 year (inclusive) 479,847.53
1-2 years 19,092.00
2-3 years 2,259.00
Over 3 years 90,809.80
3-4 years 566.00
4-5 years 785.00
Over 5 years 89,458.80
Total 592,008.33
(2) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB
Amount changed in the period
Beginning
Category Reversal or Ending balance
balance Accrual Charge off Other
switch-back
Account
109,765.83 52,939.18 162,705.01
receivable
Total 109,765.83 52,939.18 162,705.01
Including the major amount that reversal or switch-back in the period: nil
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
(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
Proportion in the total
Ending balance of Ending balance of the
Name of entity accounts receivable at
account receivable bad debt provision
period-end
Beijing Tongcheng Huading International Travel
168,981.46 28.54% 17,793.75
Service Co., Ltd. Suzhou Branch
Shanghai Hecheng International Travel Service
125,387.75 21.18% 13,203.33
Co., Ltd.
Tianjin Watermelon Tourism Limited Liability
123,624.74 20.88% 13,017.69
Company
Guangzhou Design Institute 38,980.00 6.58% 38,980.00
Nanjing Tuniu International Travel Service Co.
35,650.00 6.02% 3,753.95
Ltd
Total 492,623.95 83.20%
(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 explanation: nil
7. Advance payment: nil
8. Other receivable
In RMB
Item Ending balance Beginning balance
Other receivable 432,560.55 571,744.52
Total 432,560.55 571,744.52
126
司公限有份股心中游旅海东大南海 2020 文全告报度年年
(1) Interest receivable: Nil
(2) Dividend receivable: Nil
(3) Other account receivables
1) Other account receivable disclosed by nature
In RMB
Nature Ending book balance Opening book balance
Utility bills 189,577.27 76,534.42
Margin 156,500.00
Social insurance and housing provident
59,657.19 61,826.29
funds
Reserve fund 56,812.68 394,313.63
Elevator installation fee 10,000.00
Deposit 600.00 600.00
Litigation fee 68,562.00
Total 473,147.14 601,836.34
2) Provision for bad debt:
In RMB
First stage Second stage Third stage
Expected credit loss for
Expected credit Expected credit loss for
Provision for bad debt the whole duration Total
loss in next 12 the whole duration (no
(credit impairment has
months credit impairment)
occurred)
Balance as on 1 Jan. 2020 30,091.82 30,091.82
Balance as on January 1.
—— —— —— ——
2020 in current period
Provision in current period 17,820.25 17,820.25
Reverse in current period 7,325.48 7,325.48
Balance as on 31 Dec. 2020 22,766.34 17,820.25 40,586.59
Change of the book balance for major amount changed in loss provision
□ Applicable √ Not applicable
Released by account age
In RMB
127
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Account age Book balance
Within 1 year (inclusive) 444,074.24
1 to 2 years 26,836.90
Over 3 years 2,236.00
Over 5 years 2,236.00
Total 473,147.14
3) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB
Amount changed in the period
Beginning
Category Reversal or Ending balance
balance Accrual Charge off Other
switch-back
Other receivable 30,091.82 17,820.25 7,325.48 40,586.59
Total 30,091.82 17,820.25 7,325.48 40,586.59
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
Proportion in total
Ending balance of
Ending amount of other
Name of entity Nature Account age the bad debt
balance accounts receivable at
provision
period-end
Labor Security
Security
156,500.00 33.08% 7,825.00
Supervision Within 1 year
deposits
Detachment of Sanya
Within 1 year and
79,687.40 16.84% 3,984.37
Health center Utility bills
1 year to 2 years
56,329.00 11.91% 2,816.45
Hut stores Utility bills Within 1 year
Individual Social
47,327.19 10.00% 2,366.36
Utility bills Within 1 year
Insurance
25,000.00 5.28% 1,250.00
Bright moon pavilion Utility bills Within 1 year
128
司公限有份股心中游旅海东大南海 2020 文全告报度年年
music restaurant
Total -- 364,843.59 -- 77.11% 18,242.18
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
Ending balance Beginning balance
Provision for inventory Provision for inventory
depreciation or depreciation or
Item Book
Book balance provision for Book value provision for Book value
balance
impairment of contract impairment of contract
performance costs performance costs
Raw
551,974.20 310,260.94 241,713.26 843,199.89 615,322.99 227,876.90
materials
Commodi
1,754,063.48 11,102.41 1,742,961.07 22,771.38 11,102.41 11,668.97
ty stocks
Fuel 25,254.50 25,254.50 14,711.32 14,711.32
Total 2,331,292.18 321,363.35 2,009,928.83 880,682.59 626,425.40 254,257.19
(2) Provision for inventory depreciation or provision for impairment of contract performance costs
In RMB
Beginning Current increase Current decrease
Item Ending balance
balance Accrual Other Reversal or write-off Other
Raw materials 615,322.99 305,062.05 310,260.94
Commodity
11,102.41 11,102.41
stocks
Total 626,425.40 305,062.05 321,363.35
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(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
Item Ending balance Beginning balance
2,219,513.16 808,143.62
Input tax to be deducted
1,702,702.80 1,702,702.80
Prepaid enterprise income tax
52,719.06 56,413.98
Prepaid for newspaper, insurance, etc.
2,517.22 4,778.06
Prepaid individual income tax
Other 2,404.11
Total 3,977,452.24 2,574,442.57
Other explanation: nil
14. Creditor’s investment: nil
15. Other creditors investment: nil
16. Long-term account receivable: 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
130
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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
II. Accumulated depreciation and
accumulated amortization
1.Beginning balance 11,025,767.10 2,276,066.45 13,301,833.55
2.Current increase 418,183.56 56,340.00 474,523.56
(1) Provision or amortization 418,183.56 56,340.00 474,523.56
3.Current decrease
(1) Disposal
(2) Other transfer-out
4.Ending balance 11,443,950.66 2,332,406.45 13,776,357.11
III. Provision for impairment
1.Beginning balance 1,404,400.47 1,903,054.14 3,307,454.61
2.Current increase
(1) Accrual
3. Current decrease
(1) Disposal
(2) Other transfer-out
131
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4.Ending balance 1,404,400.47 1,903,054.14 3,307,454.61
IV. Book value
1.Ending book value 6,008,153.31 1,427,280.00 7,435,433.31
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
Item Ending balance Beginning balance
Fixed assets 34,694,023.75 35,075,195.98
Total 34,694,023.75 35,075,195.98
(1) Fixed assets
In RMB
Buildings and Machinery Electronic Other
Item Total
Vehicles
constructions equipment equipment equipment
I. Original book value ：
1.Beginning balance 136,789,501.82 9,779,644.54 2,130,663.57 2,099,553.24 3,125,353.67 153,924,716.84
2.Current increase 665,610.76 746,600.42 1,732,559.52 3,144,770.70
(1) Purchase 665,610.76 606,952.10 1,732,559.52 3,005,122.38
(2) Transfer from
139,648.32 139,648.32
construction in progress
(3) Increase from business
combinations
3.Current decrease 198,197.00 388,598.00 1,022,634.59 787,873.84 2,397,303.43
(1) Disposal or scrap 198,197.00 388,598.00 1,022,634.59 787,873.84 2,397,303.43
4.Ending balance 136,789,501.82 10,247,058.3 1,742,065.57 1,823,519.07 4,070,039.35 154,672,184.11
132
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0
II. Accumulated amortization
1.Beginning balance 74,674,779.38 7,369,670.18 1,498,327.87 1,405,100.97 1,263,700.50 86,211,578.90
2.Current increase 2,175,434.88 310,715.15 124,588.79 243,729.86 514,716.78 3,369,185.46
(1) Accrual 2,175,434.88 310,715.15 124,588.79 243,729.86 514,716.78 3,369,185.46
3.Current decrease 189,782.11 369,168.48 948,026.11 733,569.26 2,240,545.96
(1) Disposal or scrap 189,782.11 369,168.48 948,026.11 733,569.26 2,240,545.96
4.Ending balance 76,850,214.26 7,490,603.22 1,253,748.18 700,804.72 1,044,848.02
III. Provision for impairment
1.Beginning balance 31,072,788.17 1,565,153.79 32,637,941.96
2.Current increase
(1) Accrual
3.Current decrease
(1) Disposal or scrap
4.Ending balance 31,072,788.17 1,565,153.79 32,637,941.96
IV. Book value
1.Ending book value 28,866,499.39 1,191,301.29 488,317.39 1,122,714.35 3,025,191.33 34,694,023.75
2.Opening book value 31,041,934.27 844,820.57 632,335.70 694,452.27 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
Other description:
Note: the Company name right number three huts and character (2013) no. 07799, the villa - three huts and character (2013) no.
07801, the villa - three huts and character (2013) no. 07798, the villa - three huts and character (2013) no. 07796, the villa - three huts
and no. 07800 (2013) word, total area of 1446.00 square meters of housing, are the mortgage (mortgage contract no.: Xingyinqiong
SYYYB (mortgage) 2020 No. 001) of the Company borrowed from Industrial Bank co., LTD. Haikou branch (contract number: xing
silver Joan SYYYB (flow) borrow words 2020 no. 001) . See Note V (18) for details.
133
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(6) Disposal of fixed assets: nil
22. Construction in process
In RMB
Item Ending balance Beginning balance
Construction in process 488,522.10
Total 488,522.10
(1) Construction in process
In RMB
Ending balance Beginning balance
Item Book Impairmen Impairmen
Book value Book balance Book value
balance t provision t provision
Staff dormitory renovation project 348,873.78 348,873.78
Central air-conditioning system and hot water
139,648.32 139,648.32
system comprehensive renovation
Total 488,522.10 488,522.10
(2) Change of important projects under construction in the period
In RMB
Amou Proporti Accu Includi
Capital
nt on of mulate ng:
En ization
transfe accumu d capitali
Curre Other din Proje rate of
Beginn rred lative capital zation Source
nt amount g ct the
Project name Budget ing into project ization amount s of
increa reduction in bal progr interest
balance fixed investm amoun of the funds
se the period anc ess in the
assets ents in t of interest
e period
in the the interes in the
(%)
period budget t period
B building Financ
14,89 ial
guest room 12,000,00 14,894,643. 100.00 100.0
4,643. institut
0.00 97 % 0%
renovation 97 ion
loans
project
Landscape 1,514,
1,514,343.6 100.0
greening 343.6 Other
6 0%
6
project
Staff 348,87 308,8 100.0
657,722.26 Other
3.78 48.48 0%
dormitory
134
司公限有份股心中游旅海东大南海 2020 文全告报度年年
renovation
project
Central
air-conditioni
ng system
139,64 139,64 100.0
and hot water Other
8.32 8.32 0%
system
comprehensi
ve renovation
16,71
12,000,00 488,52 139,64 17,066,709.
Total 7,836. -- -- --
0.00 2.10 8.32 89
11
(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
(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
Non-patents
Item Land use rights Patent right Total
technology
I. Original book value
135
司公限有份股心中游旅海东大南海 2020 文全告报度年年
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 812,387.16 812,387.16
(1) Accrual 812,387.16 812,387.16
3.Current decrease
(1) Disposal
4.Ending balance 33,631,825.59 33,631,825.59
III. Provision for impairment
1.Beginning balance 27,440,836.84 27,440,836.84
2.Current increase
(1) Accrual
3.Current decrease
(1) Disposal
4.Ending balance 27,440,836.84 27,440,836.84
IV. Book value
1.Ending book value 20,580,474.72 20,580,474.72
2.Opening book value 21,392,861.88 21,392,861.88
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end
136
司公限有份股心中游旅海东大南海 2020 文全告报度年年
(2) Land use rights without certificate of ownership: nil
27. Development expenditure: nil
28. Goodwill: nil
29. Long-term deferred expenses
In RMB
Beginning Amortization in Amount of other
Item Current increase Ending balance
balance the period decreases
B building guest room
14,894,643.97 744,732.21 14,149,911.76
renovation project
Building A Fire Stair
28,559.56 17,135.64 11,423.92
Renovation Project
Swimming pool
164,977.48 59,991.80 104,985.68
reconstruction
Reconstruction of guest
528,951.38 192,345.93 336,605.45
rooms in Building C
963,555.84 350,383.87 613,171.97
Villa reconstruction
Building A renovation
9,028,874.38 1,868,043.00 7,160,831.38
project
Pavement modification
435,168.94 90,034.92 345,134.02
project
Roof waterproofing
370,091.75 74,018.40 296,073.35
project
Staff dormitory
657,722.26 131,544.48 526,177.78
renovation project
Landscape greening
1,514,343.66 100,956.24 1,413,387.42
project
Total 11,520,179.33 17,066,709.89 3,629,186.49 24,957,702.73
Other explanation: nil
137
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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
Item Ending balance Beginning balance
Payment for purchase 586,111.30 947,770.85
Accounts payable provisionally
72,669.88 191,232.86
estimated
Service charges 134,562.18 84,838.93
Payment for projects 14,274.10 14,274.10
Elevator maintenance fee 7,200.00
Advertisement fees
Consignment sales 1,093.00 1,093.00
Other 4,000.01
Total 808,710.46 1,250,409.75
(2) Significant accounts payable with aging over one year
In RMB
Reasons for repayment failure or
Item Ending balance
carry-forward
Estimated accounts payable 72,669.88 Unsettlement
Total 72,669.88 --
Other explanation: nil
138
司公限有份股心中游旅海东大南海 2020 文全告报度年年
37. Advance payment
(1) Presentation of advances payment
In RMB
Item Ending balance Beginning balance
Room and meal fees 786,715.42
Total 786,715.42
(2) Significant advances payment with aging over one year
38. Contractual liability
In RMB
Item Ending balance Beginning balance
Room and meal fees 626,285.33
Total 626,285.33
Amount and reasons for significant changes in book value during the reporting period: Nil
39. Employee compensation payable
(1) Presentation of employee compensation payable
In RMB
Increase in this
Item Beginning balance Decrease in this period Ending balance
period
I. Short-term compensation 2,552,996.37 10,952,839.70 10,909,974.67 2,595,861.40
II. Post-employment benefits -
126,564.80 126,564.80
defined contribution plans
Total 2,552,996.37 11,079,404.50 11,036,539.47 2,595,861.40
(2) Presentation of short-term compensation
In RMB
Beginning
Item Increase in this period Decrease in this period Ending balance
balance
1. Salaries, bonuses,
1,434,454.59 8,783,426.82 8,839,871.70 1,378,009.71
allowances and subsidies
2. Employee welfare
1,299,230.95 1,299,230.95
expenses
139
司公限有份股心中游旅海东大南海 2020 文全告报度年年
3. Social insurance premiums 390,845.15 390,845.15
Including: medical insurance
389,929.90 389,929.90
premiums
Work-related injury
915.25 915.25
insurance premiums
4. Housing provident funds 2,254.00 191,534.00 193,788.00
5. Labor union expenditures
and employee education 1,116,287.78 287,802.78 186,238.87 1,217,851.69
funds
Total 2,552,996.37 10,952,839.70 10,909,974.67 2,595,861.40
(3) Presentation of defined contribution plans
In RMB
Item Beginning balance Increase in this period Decrease in this period Ending balance
1.Basic endowment
122,215.46 122,215.46
insurance premiums
2.Unemployment
4,349.34 4,349.34
insurance premiums
Total 126,564.80 126,564.80
Other explanation: nil
40. Taxes payable
In RMB
Item Ending balance Beginning balance
Value added tax (VAT) 146,530.24 135,982.62
Corporate income tax 47.80
Individual income tax 37,465.26 18,333.52
Urban maintenance and construction tax 738.33 902.73
Housing property tax 120,439.32 97,050.89
Land use tax 54,295.47 54,295.47
Stamp tax 6,896.96
Educational surtax 316.43 386.88
Local education surtax 210.95 257.94
Total 366,892.96 307,257.85
Other explanation: nil
140
司公限有份股心中游旅海东大南海 2020 文全告报度年年
41.Other payable
In RMB
Item Ending balance Beginning balance
Other payable 6,167,763.36 2,647,515.86
Total 6,167,763.36 2,647,515.86
(1) Interest payable: nil
(2) Dividend payable: nil
(3) Other payable
1) Presentation of other payable by nature
In RMB
Item Ending balance Beginning balance
4,605,450.06 512,474.00
Engineering and quality retention money
1,013,939.39 1,219,075.78
Staff dormitory rental fee, etc
295,089.81 764,598.49
Security deposits
142,856.24 41,160.31
On behalf of collection or payment
87,820.00 86,520.00
Employee deposits
22,607.86 23,687.28
Expected telephone bill
Total 6,167,763.36 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
Item Ending balance Beginning balance
6,598,477.52
Long-term borrowing due within one year - principal
Long-term borrowing due within one year – accrual
23,020.42
interest payable
Total 6,621,497.94
141
司公限有份股心中游旅海东大南海 2020 文全告报度年年
Other explanation: nil
44. Other current liability
In RMB
Item Ending balance Beginning balance
37,577.12
Tax to be exported
Total 37,577.12
Changes in short-term bonds payable: nil
45. Long-term loans
(1) Long-term loan classification
In RMB
Item Ending balance Beginning balance
Pledge loan 9,893,757.94
Total 9,893,757.94
Explanation of long-term loan classification:
Note: The mortgage loan of 9,893,757.94 yuan is the loan of the Company from the Haikou Branch of Industrial Bank Co., Ltd., the
term of which is from April 23, 2020 to April 9, 2023, and the mortgage guarantee is made on the property with the total area of
1,446.00 square meters under the Company's name and the assessed value of 39,263,245.00 yuan (see Note 5.7 for details). The
ending balance of the mortgage loan was 16,492,235.46 yuan, of which 6,598,477.52 yuan will be repaid in 2021 and reclassified as
a non-current liability due within one year.
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. Accrual liabilities
In RMB
Item Ending balance Beginning balance Reasons
Provisions for arrears of electricity tariffs 1,489,685.04 1,489,685.04
Make provisions for electricity bills
Total 1,489,685.04 1,489,685.04 --
142
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Other description: including important assumptions and estimation for the major accrual liability:
Note: See Note 10.2.1 for details.
51. Deferred income: nil
52. Other non-current liability
In RMB
Item Ending balance Beginning balance
1,914,592.66
Projects paid over one year
Total 1,914,592.66
Other explanation: nil
53. Share capital
In RMB
Changes in the period ("+" for increase and "-" for decrease)
Share Conversion
Beginning balance Issuance of Ending balance
donati of reserves Others Sub-total
new shares
on into share
Total shares 364,100,000.00 364,100,000.00
Other explanation: nil
54. Other equity instrument: nil
55. Capital reserves
In RMB
Item Beginning balance Increase in this period Decrease in this period Ending balance
Capital premium
33,336,215.58 33,336,215.58
(share premium)
20,806,634.43 20,806,634.43
Other capital reserves
Total 54,142,850.01 54,142,850.01
Other description: including changes in the period and reasons: nil
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56. Treasury stock: nil
57. Other consolidated income: nil
58. Reasonable reserve: nil
59. Surplus reserves: nil
60. Undistributed profit
In RMB
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
Total adjustment to undistributed profit as at the beginning of the period ("+" for
-58,813.79
increase and "-" for decrease)
Undistributed profit as at the beginning of the period after adjustment -339,756,246.05 -340,512,967.51
Plus: net profit attributable to owners of the parent company in the current period -11,567,888.97 756,721.46
Undistributed profit as at the end of the period -351,324,135.02 -339,756,246.05
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating revenue and operating cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Primary business 13,393,894.12 12,293,939.28 22,782,376.82 10,608,243.38
Other business 2,118,095.25 474,523.56 3,153,028.62 474,523.56
Total 15,511,989.37 12,768,462.84 25,935,405.44 11,082,766.94
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
√Yes □No
In RMB
Item 2020 2019 Note
Operating income 15,511,989.37 25,935,405.44 Catering and
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Accommodation Industry
Operating income deduction items 2,118,095.25 3,153,028.62 Rental income
Including:
Catering and
Main business income 13,393,894.12 22,782,376.82
accommodation income
Other business 2,118,095.25 3,153,028.62 Rental income
Subtotal of business income not related to 2,118,095.25 3,153,028.62 Rental income
main business
Subtotal of income without commercial 0.00 0.00 N/A
substance
Catering and
Amount of operating income after deduction 13,393,894.12 22,782,376.82
accommodation income
Revenue:
In RMB
Contract type 1# Division 2# Division Total
Product type 15,511,989.37 15,511,989.37
Including:
Room income 11,721,046.96 11,721,046.96
Catering and
1,672,847.16 1,672,847.16
entertainment income
Other income 2,118,095.25 2,118,095.25
Including:
Hainan area 15,511,989.37 15,511,989.37
Including:
Including:
Including:
Including:
Including:
Total 15,511,989.37 15,511,989.37
Information relating to performance obligation: nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not been
fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in
subsequent years.
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Other explanation: nil
62.Taxes and surcharges
In RMB
Item Current period Last period
Urban construction tax 8,408.98 37,357.47
Educational surtax 3,500.57 16,010.36
Housing property tax 311,241.75 431,174.84
Land use tax 162,886.41 217,181.88
Vehicle and vessel use tax 4,219.00 5,220.00
Stamp tax 6,861.58 4,905.10
Local education surtax 2,333.70 10,673.55
Total 499,451.99 722,523.20
Other explanation: nil
63. Selling expenses
In RMB
Item Current period Last period
2,808,385.87 2,987,665.20
Employee salaries
642,976.97 520,034.90
Depreciation
320,143.00 387,737.00
Employee benefits
179,321.67 270,673.81
Repair charges
163,017.79 525,922.93
Social insurance premiums
138,757.23 151,981.73
Utility bills
104,355.92 90,344.35
Amortization of low cost consumables
Labor union expenditures and employee
98,293.62 109,163.37
education funds
88,404.28 348,124.41
Operating supplies
85,834.41 40,861.91
Fuel fees
83,877.78 43,131.83
Promotion fees
59,940.00 57,780.00
Housing provident funds
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80,414.39 73,053.03
Other expenses
Total 4,853,722.93 5,606,474.47
Other explanation: nil
64. Administrative expenses
In RMB
Item Current period Last period
5,429,878.64 5,540,972.55
Salaries and welfare
812,387.16 812,387.16
Amortization of intangible assets
518,279.26 368,552.41
Entertainment expenses
400,000.00 452,000.00
Agency fee
303,927.32 325,025.00
Depreciation
227,119.89 606,896.19
Social labor insurance premium
223,900.00 239,590.00
Announcing fee
194,199.16 279,944.13
Travel expenses
142,208.97 127,251.56
Repair charge
122,884.81
Legal fees
98,257.00 79,602.00
Housing provident funds
83,000.00 282,674.25
Attorney fee
Funds for labor union and staff
143,177.14 158,976.29
education
54,570.96 19,695.50
Promotion fees
47,748.00 127,370.00
Listing fee
224,888.25 351,475.82
Other expenses
Total 9,026,426.56 9,772,412.86
Other explanation: nil
65. R&D expenses: nil
66. Financial expenses
In RMB
147
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Item Current period Last period
Interest expenses 551,742.76
Less: interest income 155,036.56 210,556.05
Profit or loss on exchange
Handling charges 38,743.26 34,795.67
Total 435,449.46 -175,760.38
Other explanation: nil
67. Other income
In RMB
Sources of other income Current period Last period
639,617.24
Direct reduction of VAT
152,593.62 200,000.00
Government grants
25,614.48 92,643.89
Deducted input tax
Total 817,825.34 292,643.89
68. Investment income: nil
69. Net open hedging benefits: nil
70. Gains from fair value changes: nil
71. Credit impairment loss
In RMB
Item Current period Last period
Other receivable bad debt loss -10,494.77 -7,082.88
Account receivable bad debt loss -52,939.18 2,050.62
Total -63,433.95 -5,032.26
Other explanation: nil
72. Asset impairment loss: nil
73. Income from assets disposal: nil
74.Non-operating revenue
In RMB
148
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Amount included in the current
Item Current period Last period
non-recurring profit or loss
Compensation 286,200.36 572,245.29 286,200.36
Debt write-off income 958,979.88
Gain on the destruction of non-current assets 15,238.09
Other 227.50 8,792.66 227.50
Total 286,427.86 1,555,255.92
Government subsidies reckoned into current gains/losses: nil
75.Non-operating expenses
In RMB
Amount included in the current
Item Current period Last period
non-recurring profit or loss
Termination indemnity and compensation 387,680.01 387,680.01
Loss of non-current assets damaged and scrapped 148,457.47 13,086.64 148,457.47
Overdue fine 1,046.33
Total 537,183.81 13,086.64
Other explanation: nil
76. Income tax expenses: 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
Item Current period Last period
Lease, water, electrical and gas fees
360,916.50 1,360,510.37
collected
Interest income 155,036.56 208,151.94
Deposits 200,000.00
Loan repayment by employees 130,970.00
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Support fund for market development of
150,000.00 200,000.00
inbound tourism
Others 288,793.98 140,726.42
Total 954,747.04 2,240,358.73
Explanation of cash received from other operating activities: nil
(2) Cash paid for other operating activities
In RMB
Item Current period Last period
Social intercourse fees 228,639.04 305,994.41
Intermediary service charges 400,000.00 452,000.00
Announcement fee and related fee 72,000.00 179,590.00
Expenses for business trips 109,137.68 251,447.13
Attorney fee 30,000.00 205,140.00
Posts costs 17,705.99 35,650.53
Repair charges 260,141.62 351,092.37
Promotion fee 75,088.14 48,977.00
Costs of listing on the Shenzhen Stock
47,748.00 80,000.00
Exchange
Fuel, water, electricity and gas charges 138,757.23 232,582.93
Office expenses 11,087.05 16,380.15
Financial expenses 38,743.26 34,795.67
Property insurance premiums 42,072.87 40,282.31
Membership expenses of the board of
30,010.00
directors and the board of supervisors
Employee loan 291,688.22 403,763.71
Deposits 156,500.00 160,000.00
Other expenses 382,414.41 464,884.96
Total 2,301,723.51 3,292,591.17
Explanation 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
Supplementary information Current period Last period
-- --
1. Net profit adjusted to cash flows from operating activities
-11,567,888.97 756,721.46
Net profit
Plus: Provision for impairment of assets 63,433.95 5,032.26
Depreciation of fixed assets, depreciation and depletion of oil and gas assets and
3,843,709.02 3,496,851.59
depreciation of productive biological assets
Depreciation of right-of-use assets
812,387.16 812,387.16
Amortization of intangible assets
3,603,947.43 1,433,178.13
Amortization of long-term deferred expenses
Losses from disposal of fixed assets, intangible assets and other long-term assets
("-" for gains)
148,457.47 -2,151.45
Losses from write-off of fixed assets ("-" for gains)
Losses from changes in fair value (“-” for gains)
551,742.76
Financial expenses ("-" for gains)
Investment losses ("-" for gains)
Decreases in deferred income tax assets ("-" for increases)
Increases in deferred income tax liabilities ("-" for decreases)
-1,450,609.59 77,541.59
Decreases in inventories ("-" for increases)
-1,699,666.53 -492,057.74
Decreases in operating payable (“-” for increases)
-1,034,780.68 -1,373,841.49
Increases in operating payable ("-" for decreases)
Others
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-6,729,267.98 4,713,661.51
Net cash flow from operating activities
2. Significant investing and financing activities not involving cash receipts and
-- --
payments
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets acquired under financing leases
-- --
3. Net changes in cash and cash equivalents
2,924,459.75 7,422,939.89
Ending balance of cash
7,422,939.89 15,364,355.30
Less: beginning balance of cash
Plus: ending balance of cash equivalents
Less: beginning balance of cash equivalents
-4,498,480.14 -7,941,415.41
Net increase in cash and cash equivalents
(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
Item Ending balance Beginning balance
I. Cash 2,924,459.75 7,422,939.89
Including: cash on hand 179,111.10 302,077.12
Unrestricted cash at bank 2,745,348.65 7,120,862.77
III. Balance of cash and cash equivalents
2,924,459.75 7,422,939.89
at end of the period
Other explanation: 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:
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81. Assets with ownership or use right restricted: nil
82. Item of foreign currency
(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
Amount entry in current
Type Amount Presentation item
gains/losses
Support funds for inbound
150,000.00 Other income 150,000.00
tourism market development
Job stabilization subsidy 2,593.62 Other income 2,593.62
(2) Refund of government subsidy
□ Applicable √ Not applicable
Other explanation: nil
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85. Other: nil
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
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 explanation: nil
2. Business combination under common control
(1) Business combination under common control occurred in the period: nil
(2) Combined cost: nil
(3) Book value of the assets/liabilities from combined party at date of combination: nil
3. Counter purchase: 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
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6. Other: nil
IX. Rights and interests in other entities
1. Equity in subsidiaries
(1) Structure of the enterprise group
Shareholding ratio Metho
Principal
Name of d of
place of Registration place Business nature Indire
subsidiary Direct acquisi
business ct
tion
Hainan Wengao
Leasing and
Tourist Block B, Main Building, Hainan Newly
Sanya, commercial
Resources Dadonghai Tourism Centre (Holdings) 100.00% establi
Hainan service
Development Co., Ltd., No. 2, Yuhai Road, Jiyang shed
industries
Co., Ltd. District, Sanya City, Hainan Province
An explanation for the shareholding ratio differing from the share of the voting rights in the subsidiaries: nil
The basis for holding half or below of the voting rights but still controlling the investee, and holding more than half of the voting
rights but not controlling the investee: nil
The basis for important structured entities and controls which are included in the scope of consolidation: nil
The basis for determining the company as an agent or as a principal: nil
Other explanation: nil
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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
(1) Explanation of changes in the share of owner’s equity of the subsidiary: nil
(2) The impact of the transaction on the minority shareholders' equity and the owner's equity attributable
to the parent company: nil
3. Equity in arrangement of joint venture or associated enterprises
(1) Important joint venture or associated enterprises: nil
(2) Main financial information and important joint ventures: nil
(3) Main financial information of important associated enterprises: nil
(4) Summary financial information of unimportant joint venture and associated enterprises: nil
(5) Explanation of significant restrictions on the ability of joint venture or associated enterprises to transfer
funds to the company: nil
(6) Excess losses incurred by joint venture or associated enterprises: nil
(7) Unconfirmed commitments related to joint venture investment: nil
(8) Contingent liabilities related to investment in 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
During its business operation, the Company faces various financial risks, including credit risks, market risks and
liquidity risks. The Board of Directors of the Company takes full responsibilities for determining the risk
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management objects and policies and bearing the ultimate liabilities for that, however, the Board of Directors has
authorized the management department of the Company to design and implement the process capable of ensuring
the effective implementation of the risk management objects and policies. The Board of Directors reviews the
effectiveness of the enforced procedures and the rationality of risk management objectives and policies by the
reports submitted by the management department of the Company. The internal auditors of the Company also will
audit the risk management policies and procedures, and report the relevant facts to the audit committee.
The overall objective of risk management of the Company is to prepare the risk management policies ensuring the
risk under control as far as possibility without affecting the Company's business development goals.
(i) Credit risk
Credit risk refers to a risk that one party to the financial instruments suffers financial losses due to the failure of
the other party in performing the obligations. The Company mainly faces customer credit risks caused by sales on
account. Before signing a new contract, the Company will understand and assess credit risks of the new customer.
The Company rates the credit of existing customers and analyzes the aging of accounts receivable to ensure that
the Company's overall credit risk is within the controllable range.
(ii) Liquidity risk
Liquidity risk refers to a risk that an enterprise suffers funds shortage in performing the obligations of settlement
in cash or other financial assets. The policy of the Company is to ensure that there is sufficient cash for the
payment of the matured debts. Liquidity risk is under centralized control of the financial department of the
Company. The financial department monitors cash balance and readily realizable and marketable securities and
makes rolling forecast on cash flows of the next 12 months to ensure that the Company has sufficient funds to
repay debts in all cases of reasonable prediction.
The Company's various financial liabilities are shown below in terms of undiscounted contractual cash flows
as due dates:
Item Ending balance
Total
Within 1 3 month to 1 year Above 5
1-3 months 1-5 years Overdue
month (including 1 year) years
Short-term loans
6,598,477.52 9,893,757.94 16,492,235.46
Long-term loans
(including long-term
loans with maturity of
1 year)
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23,020.42 23,020.42
Long-term loans
(interest)
Total 23,020.42 6,598,477.52 9,893,757.94 16,515,255.88
(iii) Market risk
Market risk associated with financial instruments refers to the risk that fair value or future cash flows of financial
instruments fluctuate due to variations in market prices, and it includes exchange rate risk, interest rate risk and
other price risks.
The interest rate risk of the Company refers to the risk that the fair value of financial instruments or future
cash flows will fluctuate due to changes in market interest rates.
The interest rate risk that the Company faces mainly comes from the bank's long-term loan. The details of
external borrowings of the Company on December 31, 2020 are as follows:
Including:
Item Ending balance
Opening Balance
Ending interest payable
Short-term loans
6,621,497.94 23,020.42
Long-term loans due within 1 year
9,893,757.94
Long-term loans
Interest of long-term loans
Total 16,515,255.88
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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
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 Registration Business Registered Shareholding ratio Voting ratio in the
company place nature in the Company Company
capital
Planting and
1151.51 million
Luoniushan Co., Ltd. Haikou breeding 17.55% 19.80%
yuan
industry
Explanation on the parent company:
Explanation: As at December 31, 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.
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Other explanation: nil
2. Subsidiary of the Enterprise
For details of the company's subsidiaries, please refer to the note "7 Rights and interests in other entities".
3. Joint venture and associated enterprise
Important joint venture and associated enterprise found more in the Notes.
Other joint venture or associated enterprise that have related party transaction with the Company occurred in the period, or occurred
in previous period with balance resulted: nil
4. Other related party: nil
5. Related party transactions
(1) Related party transactions of purchasing and selling commodities, providing and receiving labor
services: nil
Procurement of goods / acceptance of labor: nil
Sales of goods/provided labor service:
In RMB
Content of related-party
Related party Current period Last period
transaction
Luoniushan Co., Ltd. Room and meal fees 54,352.40 124,455.66
Explanation of related party transactions of purchasing and selling commodities, providing and receiving labor services: nil
(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
In RMB
Item Current period Last period
Key management personnel emoluments 1,953,190.00 2,055,628.00
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(8) Other related transactions: nil
6. Receivables and payable of the related party
(1) Receivable
In RMB
Ending balance Beginning balance
Item Related party Provision for bad Provision for bad
Book balance Book balance
debt debt
Account
Luoniushan Co., Ltd. 3,378.00 3,246.00
receivable
(2) Payable: nil
7. Related party’s commitment
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: nil
5. Other: nil
XIV. Commitments and contingencies
1. Commitments
Commitments on balance sheet date
According to the requirements of the China Securities Regulatory Commission (hereinafter referred to as "CSRC")
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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 December 31, 2020, no further progress was made on the above-mentioned asset restructuring
commitments.
2. Contingencies
(1) Major contingencies on balance sheet date
On May 26, 2016, the Company received a lawyer letter from Hainan Yunfan Law Firm entrusted by Sanya Power
Supply Bureau of Hainan Power Grid Co., Ltd. (hereinafter referred to as "Sanya Power Supply Bureau"), saying
that Sanya Power Supply Bureau found, in verifying electricity consumption by South China Hotel, a subsidiary
of the Company, that the current transformer (CT) installed in the distribution center metering counters in South
China Hotel installed was inconsistent with the record in the marketing management system file of Sanya Power
Supply Bureau, and the duration of the inconsistence was from July 2006 when South China Hotel changed its
electricity consumption measuring device to April 2016. According to the statistics, electricity consumption of
10313373 KWH was measured in short, which was estimated to be valued at RMB 7,200,165.75 according to the
electricity prices and surcharge rates in the years.
According to the Legal Consultation Advice on Electricity Quantity (Electricity Charge) Claiming Dispute
between South China Hotel and Sanya Power Supply Bureau issued by Beijing Junhe (Haikou) Law Firm on
December 20, 2016, as all electricity consumption metering devices are purchased, installed, sealed, opened and
replaced by Sanya Power Supply Bureau Responsible, the short measurement of electricity charge from South
China Hotel for many years was due to the fault of Sanya Power Supply Bureau, and was irrelevant to South
China Hotel. Pursuant to Article 135 of the General Principles of Civil Law: "Except as otherwise stipulated by
law, the limitation of action regarding applications to a people's court for protection of civil rights shall be two
years., the Company accrued an amount of RMB 1,489,685.04 for the electricity charge for electricity quantity
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measured in short during two years from April 2014 to April 2016. As at December 31, 2020, no further progress
was made on this matter.
(2) For no major contingencies disclosed, explain reasons
The Company has no major contingencies should be disclosed
3. Other: nil
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
Profit distribution: On April 22, 2021, as resolved at the 12th session of the 9th board of directors of the Company,
the Company does not intend to make profit distribution or convert capital reserve into share capital.
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XVI. Other significant events
1.Correction of accounting errors in previous periods: nil
2. Debt reorganization: nil
3. Asset exchange
(1) Non-monetary assets exchange: nil
(2) Other assets exchange: nil
4. Annuity plan: nil
5. Termination of operation: nil
6. Segment information
(1) The determination basis and accounting policy of the report segment: nil
(2) Financial information of the report segment: nil
(3) If the company has no reportable segments, or cannot disclose the total assets and total liabilities of each
reportable segment, the reasons should be explained: nil
(4) Other explanation: nil
7. Major trading and items shows influence on investors’ decision-making: nil
8. Other
The Company announced on June 3, 2019 that Hainan Dadonghai Tourism Center Group Co., Ltd. (hereinafter
referred to as "Dadonghai Group") borrowed 2.76 million yuan and 4.55 million yuan from the Company on
October 16, 1996 and December 26, 1996 respectively. The two loans totaling 7.31 million yuan have not been
repaid yet. The Company filed a lawsuit with the People's Court of the Suborb of Sanya City, Hainan Province
(hereinafter referred to as the "Court") to request the defendant Dadonghai Group to repay the loan of 7.31 million
yuan to the Company.
On October 9, 2020, the Company received the Civil Judgment (2020) No. 1629 of Qiong02 Minzhong issued by
the Intermediate People's Court of Sanya City. It is ordered that Dadonghai Group shall repay the loan of 7.31
million yuan to the Company within 10 days from the effective date of this judgment. At present, the case has
been applied to the court for enforcement.
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XVII. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Disclosure of account receivables by category
In RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Category debt Book debt Book
Amoun Proport Amoun Provisio value Amoun Proport Amoun Provision value
t ion t n ratio t ion t ratio
Including:
Accounts
receivable with
592,00 100.00 162,70 429,3 420,84 100.00 109,76 311,083.
provision for bad 27.48% 26.08%
8.33 % 5.01 03.32 9.75 % 5.83 92
debts based on
portfolios
Including:
592,00 100.00 162,70 429,3 420,84 100.00 109,76 311,083.
Total 27.48% 26.08%
8.33 % 5.01 03.32 9.75 % 5.83 92
Accounts receivable with provision for bad debts made separately: nil
Provision for bad debt by portfolio: 162,705.01 yuan
In RMB
Ending balance
Name
Book balance Provision for bad debt Provision ratio
479,847.53 50,544.21 10.53%
Within 1 year
19,092.00 19,092.00 100.00%
1 year to 2 years
2,259.00 2,259.00 100.00%
2 years to 3 years
566.00 566.00 100.00%
3 years to 4 years
785.00 785.00 100.00%
4 years to 5 years
89,458.80 89,458.80 100.00%
Above 5 years
Total 592,008.33 162,705.01 --
A description of the basis for determining the portfolio: nil
Estimated credit loss by portfolio: aging portfolio accrual items
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
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司公限有份股心中游旅海东大南海 2020 文全告报度年年
the disclosure method of other receivables to disclose the relevant information of bad debt provision
□ Applicable √ Not applicable
Released by account age
In RMB
Account age Book balance
Within 1 year (inclusive) 479,847.53
1 year to 2 years 19,092.00
2 years to 3 years 2,259.00
Over 3 years 90,809.80
3 years to 4 years 566.00
4 years to 5 years 785.00
Over 5 years 89,458.80
Total 592,008.33
(2) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB
Amount changed in the period
Beginning
Category Reversal or Ending balance
balance Accrual Charge off Other
switch-back
Account
109,765.83 52,939.18 162,705.01
receivable
Total 109,765.83 52,939.18 162,705.01
Including the major amount that reversal or switch-back 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
Ending balance Proportion in the total
Ending balance of the bad
Name of entity of account accounts receivable at
debt provision
receivable period-end
Beijing Tongcheng Huading International Travel
168,981.46 28.54% 17,793.75
Service Co., Ltd. Suzhou Branch
125,387.75 21.18% 13,203.33
Shanghai Hecheng International Travel Service
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Co., Ltd.
Tianjin Watermelon Tourism Limited Liability
123,624.74 20.88% 13,017.69
Company
Guangzhou Design Institute 38,980.00 6.58% 38,980.00
Nanjing Tuniu International Travel Service Co.
35,650.00 6.02% 3,753.95
Ltd.
Total 492,623.95 83.20%
(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
Item Ending balance Beginning balance
Other receivable 432,560.55 571,744.52
Total 432,560.55 571,744.52
(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
Other explanation: nil
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(3) Other account receivable
1) Other account receivable disclosed by nature
In RMB
Nature Ending book balance Opening book balance
189,577.27 76,534.42
Utility bills
56,812.68 394,313.63
Petty cash
Social insurance and housing provident
59,657.19 61,826.29
funds
600.00 600.00
Deposit
68,562.00
Litigation fee
10,000.00
Elevator installation fee
156,500.00
Security deposits
Total 473,147.14 601,836.34
2) Provision for bad debt:
In RMB
First stage Second stage Third stage
Expected credit Expected credit loss for Expected credit loss for
Provision for bad debt Total
loss in next 12 the whole duration (no the whole duration (credit
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
Provision in current period 17,820.25 17,820.25
Reverse in current period 7,325.48 7,325.48
Balance as at 31 Dec. 2020 22,766.34 17,820.25 40,586.59
Change of the book balance for major amount changed in loss provision
□ Applicable √ Not applicable
Released by account age
In RMB
Account age Book balance
Within 1 year (inclusive) 444,074.24
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26,836.90
1 year to 2 years
2,236.00
Above 3 years
2,236.00
Above 5 years
Total 473,147.14
3) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period:
In RMB
Amount changed in the period
Beginning
Category Reversal or Ending balance
balance Accrual Charge off Other
switch-back
Other receivable 30,091.82 17,820.25 7,325.48 40,586.59
Total 30,091.82 17,820.25 7,325.48 40,586.59
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
Proportion in total
Ending balance of
Ending amount of other
Name of entity Nature Account age the bad debt
balance accounts receivable at
provision
period-end
Labor Security Supervision Security
156,500.00 33.08% 7,825.00
Within 1 year
Detachment of Sanya deposits
Utility Within 1 year and 1
79,687.40 16.84% 3,984.37
Health center
bills year to 2 years
Utility
56,329.00 11.91% 2,816.45
Hut stores Within 1 year
bills
Social
47,327.19 10.00% 2,366.36
Individual Social Insurance insuranc Within 1 year
e
25,000.00 5.28% 1,250.00
Bright moon pavilion music Utility Within 1 year
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restaurant bills
Total -- 364,843.59 -- 77.11% 18,242.18
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
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
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
(1) Investment in subsidiaries
In RMB
Increase/decreased in the period (+, -) Ending
Beginning Additio Ending balance of
Accrual
Investee balance (Book nal Capital balance the provision
Impairment Other
value) invest reduction (Book value) for
provision
ment 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
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Current period Last period
Item
Income Cost Income Cost
Primary business 13,393,894.12 12,293,939.28 22,782,376.82 10,608,243.38
Other businesses 2,118,095.25 474,523.56 3,153,028.62 474,523.56
Total 15,511,989.37 12,768,462.84 25,935,405.44 11,082,766.94
Revenue:
In RMB
Contract type 1# Division 2# Division Total
Product type 15,511,989.37 15,511,989.37
Including:
Room income 11,721,046.96 11,721,046.96
Catering and
1,672,847.16 1,672,847.16
entertainment income
Other income 2,118,095.25 2,118,095.25
Including:
Hainan area 15,511,989.37 15,511,989.37
Including:
Including:
Including:
Total 15,511,989.37 15,511,989.37
Information relating to performance obligation: nil
Information relating to the transaction price assigned to the remaining performance obligation: nil
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not been
fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in
subsequent years.
Other explanation: 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
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Item Amount Note
Profit or loss from disposal of non-current assets -148,457.47 Loss on disposal of fixed assets
Government grants included in the current profit or loss
Rewards for development of inbound tourism
(except for government grants closely related to the enterprise
817,825.34 market supporting by the government and tax
business, obtained by quota or quantity at unified state
credit for the VAT input tax surcharge
standards)
Other non-operating revenue and expenses except for the
-102,298.48
above-mentioned items
Total 567,069.39 --
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 EPS Diluted EPS
(RMB/Share) (RMB/Share)
Net profits attributable to ordinary
-15.91% -0.0318 -0.0318
shareholders of the Company
Net profits attributable to ordinary
shareholders of the Company after deduction -16.69% -0.0333 -0.0333
of non-recurring profits or losses
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
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(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: nil
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Section XIII. Documents available for references
1. 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);
2. Original auditing report bearing the seal of Accounting Firm and signature and seal of the CPA;
3. Original copies of all documents and announcements that publicly disclosed on Securities Times, Hong Kong
Commercial Daily and Juchao Website during the reporting period.
The aforesaid documents are prepared at the securities department of the Company.
Board of Directors of
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Chairman: Yuan Xiaoping
22 April 2021
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