Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
Songcheng Performance Development Co., Ltd
2021 Annual Report
April 2022
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Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
Section I Important Notes, Contents And Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and senior
management members of the Company hereby guarantee that the information
presented in this annual report is authentic, accurate, complete and free of any
false records, misleading statements or material omissions, and they will bear joint
and several liabilities for such information.
Shang Lingxia, the person in charge of the Company, Chen Shengmin, chief
accountant, and Zhu Shana, head of accounting department (Accounting Officer)
hereby declare and warrant that the financial statements in the annual report are
authentic, accurate, and complete.
All directors attended the meeting of the Board of Directors for deliberation of this
annual report.
The content concerning the future plan and performance forecast in this report
shall not constitute the Company's substantial commitment to investors and
relevant persons who shall maintain adequate risk awareness and shall understand
the differences between the plans, forecasts and commitments.
The risks that the Company may face in management and countermeasures have
been stated in “XI. Outlook for the Future Development of the Company” of
“Section III Discussion and Analysis of Management of the Company”. Investors are
kindly reminded to pay attention to possible investment risks.
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The profit distribution proposal approved by the Board of Directors is: Taking
2,614,694,040 as the basis, RMB 0.50 (tax included) of cash dividend and 0 bonus
share (tax included) for every 10 shares will be distributed to all shareholders, and
0 share capitalized from the capital reserves will be distributed to all the
shareholders for every 10 shares.
Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021
年年度报告”), and the published annual report in the Chinese version shall prevail. The
complete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn.
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Table of Contents
Section I Important Notes, Contents And Definitions ..............................................................................................................................2
Section II Company Profile and Key Financial Indicators .........................................................................................................................8
Section III Discussion and Analysis of Management of the Company ....................................................................................................13
Section IV Corporate Governance..........................................................................................................................................................41
Section V Environment and Social Responsibility ..................................................................................................................................61
Section VI Significant Events ..................................................................................................................................................................62
Section VII Changes in Shares and Information about Shareholders .....................................................................................................75
Section VIII Information of Preferred Shares .........................................................................................................................................84
Section IX Information of Bonds ............................................................................................................................................................85
Section X Financial Report .....................................................................................................................................................................86
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Directory of Reference Files
I. The financial statements signed and sealed by the legal representative, the chief accountant and the person in charge of
accounting institution (Accounting Officer) of the Company.
II. The original copy of the Audit Report with the seal of the Accounting Firm and signed and stamped by Certified Public
Accountants.
III. Originals of all the Company's documents and announcements published on the website designated by China Securities
Regulatory Commission during the reporting period.
IV. Other related information.
The said documents are prepared and placed at the Company's Securities Investment Department
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Definitions
Item Refers To Definitions
Company, the Company, Songcheng
Refers To Songcheng Performance Development Co., Ltd
Performance
Hangzhou Songcheng Group Holdings Co., Ltd, the controlling
Songcheng Group, Songcheng Holdings Refers To
shareholder of the Company
Hangzhou Songcheng performance Valley technology and Culture
Songcheng Performance Valley Company Refers To
Development Co., Ltd, a wholly-owned subsidiary of the Company
Hangzhou Paradise Company Refers To Hangzhou Paradise Co., Ltd, a wholly-owned subsidiary of the Company
Songcheng Performance Management Co., Ltd, a wholly-owned
Songcheng Art Troupe Refers To
subsidiary of the Company
Songcheng Tourism Development Co., Ltd, a wholly-owned subsidiary of
Songcheng Tourism Refers To
the Company
Sanya Romance Tourism Performance Co., Ltd, a wholly-owned subsidiary
Sanya Romance Show Company Refers To
of the Company
Lijiang Chama Ancient City Tourism Development Co., Ltd, a
Lijiang Chama Ancient City Company Refers To
wholly-owned subsidiary of the Company
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd, a
Jiuzhai Romance Show Company Refers To
wholly-owned subsidiary of the Company
Shanghai Songcheng World Expo Performance Development Co., Ltd, a
Shanghai Songcheng Company Refers To
holding subsidiary of the Company
Guilin Lijiang Romance Performance Development Co., Ltd, a holding
Guilin Romance Show Company Refers To
subsidiary of the Company
Zhangjiajie Romance Performance Development Co., Ltd, a wholly-owned
Zhangjiajie Romance Show Company Refers To
subsidiary of the Company
Xi'an Romance Performance Development Co., Ltd, a holding subsidiary
Xi'an Romance Show Company Refers To
of the Company
Foshan South Sea Qiao Mountain Cultural Tourism Development Co., Ltd,
Foshan Romance Show Company Refers To
a wholly-owned subsidiary of the Company
Xitang Songcheng Performance Valley Zhejiang Songcheng Xitang Performance Valley Performance
Refers To
Company Development Co., Ltd, a wholly-owned subsidiary of the Company
Zhuhai Songcheng Performance Kingdom Co., Ltd, a wholly-owned
Zhuhai Songcheng Company Refers To
subsidiary of the Company
Songcheng International Refers To Songcheng Performance International Development Co., Ltd, a
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wholly-owned subsidiary of the Company
Hangzhou Songcheng Technology Development Co., Ltd, a wholly-owned
Songcheng Technology Refers To
subsidiary of the Company
Hanghzou Songcheng Dumuqiao Travel Services Co., Ltd, a wholly-owned
Dumuqiao Travel Agency Refers To subsidiary of Songcheng Tourism Development Co., Ltd, a wholly-owned
subsidiary of the Company
Songcheng (Australia) Entertainment Pty Ltd., a wholly-owned subsidiary
Songcheng Entertainment Company
Refers To of Songcheng Performance International Development Co., Ltd, a
(Australia)
wholly-owned subsidiary of the Company
Jiuzhaigou Tibetan Mystery Culture Co., Ltd, a holding subsidiary of the
Jiuzhai Tibetan Mystery Company Refers To
Company
Beijing Huafang Technology Co., Ltd, a joint stock company of the
Huafang Technology Refers To
Company
China Securities Regulatory Commission
Refers To China Securities Regulatory Commission
(CSRC)
Shenzhen Stock Exchange (SZSE) Refers To Shenzhen Stock Exchange
yuan, ten thousand yuan Refers To RMB, RMB Ten Thousand
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Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock Abbreviation 宋城演艺 Stock Code 300144
Company Name in Chinese Songcheng Performance Development Co., Ltd
Company Abbreviation in
宋城演艺
Chinese
Company Name in Foreign
Songcheng Performance Development Co., Ltd
Language (If any)
Abbreviation of Company
Name in Foreign Language (If Songcheng Performance
any)
Legal Representative Shang Lingxia
Registered Address 148 Zhijiang Road, Hangzhou City, Zhejiang Province
Post Code of Registered
310008
Address
Previous changes of registered
Not applicable.
address of the Company
Office Address 148 Zhijiang Road, Hangzhou City, Zhejiang Province
Post Code of Office Address 310008
Internet Website of the
https://www.songcn.com/Shares/
Company
E-mail sczq@songcn.com
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Hou Li Hou Li
148 Zhijiang Road, Hangzhou City, Zhejiang 148 Zhijiang Road, Hangzhou City, Zhejiang
Contact Address
Province Province
Tel. 0571-87091255 0571-87091255
Fax 0571-87091233 0571-87091233
E-mail hl@songcn.com hl@songcn.com
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III. Information Disclosure and Location
Website of the stock exchange for release of the
Securities Times, Securities Daily
Annual Report
Name and website of the media for release of the
http://www.cninfo.com.cn
Annual Report
Location for Annual Report of the Company Securities Investment Department of the Company
IV. Other Related Information
Accounting Firm Hired by the Company
Name of the Accounting Firm BDO China Shu Lun Pan CPAs (special general partnership)
Office Address of the Accounting
No. 61 Nanjing East Road, Shanghai
Firm
Name of Certified Public
Ni Yilin, Wang Bin
Accountant
The sponsor institution hired by the company to perform the continuous supervision in the reporting period
□ Applicable √ Not applicable
The financial adviser hired by the company to perform the continuous supervision in the reporting period
□ Applicable √ Not applicable
V. Key Accounting Data and Financial Indicators
Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
□ Yes √ No
Increase/decrease
2021 years 2020 years compared with 2019 years
previous year
Operating income (RMB) 1,184,864,639.25 902,586,125.63 31.27% 2,611,753,208.86
Net profit attributable to
shareholders of the listed 315,130,771.75 -1,752,398,009.60 117.98% 1,339,790,994.94
Company (RMB)
Net profit attributable to
shareholders of the listed company
267,809,723.49 -1,767,861,638.68 115.15% 1,222,100,617.31
after deducting non-recurring
gains and losses (RMB)
Net cash flow generated by
750,473,809.79 393,941,899.94 90.50% 1,571,451,499.51
operational activities (RMB)
Basic Earnings per Share
0.1205 -0.6702 117.98% 0.5124
(RMB/Share)
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Diluted Earnings per Share
0.1205 -0.6702 117.98% 0.5124
(RMB/Share)
Weighted Average ROE 4.22% -20.50% 24.72% 14.52%
Increase/Decrease at
the end of the current
End of 2021 End of 2020 year compared with End of 2019
the end of the
previous year
Total assets (RMB) 9,826,508,029.84 9,195,342,831.06 6.86% 11,041,076,933.58
Net assets attributable to
shareholders of the listed company 7,644,770,822.36 7,412,287,432.06 3.14% 9,614,069,166.64
(RMB)
The lower of the Company's net profit before and after deduction of non-recurring profit and loss for the last three fiscal years is
negative, and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue operating
□ Yes √ No
The lower of net profit before and after deduction of non-recurring profit and loss is negative
□ Yes √ No
Total share capital of the Company as at the trading date preceding the disclosure:
Total share capital of the Company as at the trading date
2,614,694,040
preceding the disclosure (share)
Whether the share capital has been changed for issuance of new shares, addition, allotment, exercise of equity incentives and
buy-back, and whether the amount of the owners' equity is influenced from the end of the reporting period of the Company to the
disclosure date of the annual report
□ Yes √ No
Preferred stock dividends paid 0.00
Perpetual bond interest paid (RMB) 0.00
Fully diluted earnings per share calculated with the latest
0.1205
share capital (RMB/share)
VI. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 306,452,312.38 428,062,906.79 281,121,818.86 169,227,601.22
Net profit attributable to
132,387,788.43 245,941,775.64 54,196,299.52 -117,395,091.84
shareholders of the listed company
Net profit attributable to
130,105,035.10 187,941,310.97 52,216,568.36 -102,453,190.94
shareholders of the listed company
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after deducting non-recurring
gains and losses
Net cash flow generated by
86,395,031.59 394,658,000.83 257,089,474.60 12,331,302.77
operating activities
Whether the above financial indicators or their totals are significantly different from the financial indicators disclosed in the
Company’s quarterly and semi-annual reports
□ Yes √ No
VII. Differences in Accounting Data Under Domestic and Foreign Accounting Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the reporting period of the company, there is no difference between the net profits and net assets in the financial reports
disclosed according to international accounting standards and Chinese accounting standards.
(2) Differences between the net profits and net assets in the financial reports disclosed according to the
overseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the reporting period of the company, there is no difference between the net profits and net assets in the financial reports
disclosed according to overseas accounting standards and Chinese accounting standards.
3. Reasons for differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
Note: If the data audited by an overseas audit firm is adjusted for differences, the name of the overseas firm shall be indicated.
VIII. Non-recurring Gains and Losses Items and Their Amounts
√ Applicable □ Not applicable
Unit: RMB
Item Amount in 2021 Amount in 2020 Amount in 2019 Note
Profits or losses from disposal of
non-current assets (including the write-off 25,044,233.19 -37,625,882.13 70,970,952.64
for the accrued impairment of assets)
Government subsidies included in the
current profits and losses (except those
4,656,601.31 35,618,594.19 5,629,978.38
closely related to the Company’s normal
business, and continuously granted in
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accordance with a certain standard quota or
quantity set by national policies and
regulations)
In addition to the effective hedging business
related to normal business of the Company,
the profits and losses from the changes in
fair value for holding trading financial assets
13,096,973.83 19,619,586.83 52,061,383.80
and trading financial liabilities, and
investment income from disposal of trading
financial assets, trading financial liabilities,
and available-for-sale financial assets.
Non-Operating Revenue and expenses other
3,502,874.67 -509,618.20 -19,029,327.85
than the above
Less: Impact of income tax -2,293,110.04 2,230,795.39 -7,184,125.78
Impact of minority equity (after tax) 1,272,744.78 -591,743.78 -873,264.88
Total 47,321,048.26 15,463,629.08 117,690,377.63 --
Details of other gain and loss items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company did not have any details of other gain and loss items that meet the definition of non-recurring gains and losses.
Description of defining the non-recurring gain and loss items, which are listed in Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and loss items
□ Applicable √ Not applicable
The Company did not classify any item of the non-recurring gain and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses, as recurring gain and
loss items in the reporting period.
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Section III Discussion and Analysis of Management of the Company
I. Industry Overview during the Reporting Period
1. The Overall Trend of the Industry
(1) Normalized Pandemic Prevention and Control and Industrial Short-term Development Impacted by the Pandemic
Data released by the National Bureau of Statistics shows that in 2021, the number of domestic tourists grew by 12.89% over the
previous year to 3.25 billion, but was only at 54.11% of the 2019 level. The domestic tourism revenue was RMB 2919.1 billion, an
increase of 30.98% year on year, but was only at 50.99% of the 2019 level. Affected by the COVID-19 pandemic, the domestic
tourism market declined sharply in 2020, ending the continuous growth for 16 consecutive years since 2004. Though 2021 saw
recovery to some extent, the market performance remained unsatisfactory. The COVID-19 pandemic had a great impact on the
tourism industry, and it also driven away a large amount of speculative capitals in the society, cleared out most inferior suppliers
that lack capitals and creativity, and forced enterprises to work on intelligent hardware, themes and atmosphere, content-based
scenarios, and services and reception, thus facilitating the emergence of a number of products integrating elements such as culture,
tourism, and technology. In the long run, enterprises with abundant resources, sufficient creativity, convenient transportation and
good supporting facilities have stronger risk-resistance ability and market competitiveness.
2018 years 2019 years 2020 years 2021 years
Number of domestic tourists (xxx billion) 55.39 60.06 28.79 32.50
Domestic tourism revenue (RMB xxx billion) 51,278.30 57,250.92 22,286.30 29,191.00
(2) Continuous Policy Support for Promotion of Long-term High-quality Development of the Industry
Although there are great difficulties in short-term development, tourism, as a strategic pillar industry of the national economy, has
obvious advantages in adjusting the industrial structure, creating job opportunities, and narrowing regional development gaps.
China continuously issues various tourism promotion policies, thus facilitating the long-term high-quality development of the
industry. In 2021, the State Council issued the “Development Plan for the Tourism Industry during the 14th Five-Year Plan Period” to
deepen the integration of culture and tourism, as well as accelerate the construction of a strong tourism industry, thus achieving the
higher-quality development of the tourism industry. According to the plan, by 2025, the tourism industry will continue to improve,
with a more complete modern tourism system. There will be more effective, high-quality and flexible supply resources for tourism,
and the consumption demand of the general public will be better met. The Ministry of Culture and Tourism has released documents
such as the “Development Plan for the Culture Industry during the 14th Five-Year Plan Period”, “Development Plan for Culture and
Tourism during the 14th Five-Year Plan Period”, and “Plan for Artistic Creation during the 14th Five-Year Plan Period”, so as to
accelerate the improvement of the modern culture industry system, promote the high-quality development of the culture industry,
and build a socialist country of a strong power of culture.
(3) Constantly Developed Economy and Society for a Broad Space for Industrial Development
Sustained economic development and social progress have boosted the long-term sound development of the tourism industry. Over
the past 70 years, China has built a complete modern industrial system, created a unified free-circulation nationwide market, and
constructed global leading infrastructure. China’s middle-income group has quickly grown to a large population. The period has
witnessed continuously growing national economy, improved people’s living standards and enhanced purchasing power. According
to global precedent, a country with per capita GDP between USD 10,000 and 30,000 experiences the fastest growth of consumption
for pleasure such as tourism, leisure, culture and entertainment. In 2021, China’s per capita GDP reached USD 12,600, which was
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close to the threshold of high-income countries released by the World Bank. People has changed their consumption habit from
material consumption to consumption for pleasure. Therefore, there is broad room for development in the culture and tourism
industry.
(4) Innovation-driven Development and Technology Empowerment
The new round of technological revolution and industrial reform and the innovation-driven development strategy will continuously
promote the creation of new products, new formats and new models and provide strong impetus for the transformation and
upgrade of the culture and tourism industry. With the popularization of technologies such as big data, cloud computing, Internet of
Things, blockchain and 5G, Beidou System, virtual reality, and augmented reality, smart tourism featuring digitization, network, and
intelligence is gaining momentum. “Internet +” scenic spots, digital experience and products, and immersive and interactive
experience have emerged to offer constantly improved culture and tourism experience. Technological innovation is constantly
leading and supporting the development of culture and tourism industry and shaping a new landscape of the industry.
2. The Company's Market Position and Strengths in the Industry
Songcheng Performance is China’s leading comprehensive culture and tourism service provider. It is one of China’s top 30
enterprises in the culture industry. It is approved as a national demonstration base for integration of culture and technology. Its
business scope covers live performance and tourism service. The Company engages itself in segmented markets such as culture and
art, tourism and leisure. The Company has created a unique business model of “Theme park + Cultural performance”, and operates
more than 10 scenic spots nationwide and develops nearly 100 different shows. The Company leads the industry in the number of
theaters, the number of seats, the number of performances, audience visits, operating efficiency, etc. “Songcheng” and “Romance
Show” have established good brand awareness and have been widely praised in the industry, thus becoming the great strengths of
the brand.
II. The Principal Business of the Company during the Reporting Period
(I) Vision and mission
The Company upholds the business philosophy of “a drop of water in need shall be returned with a spring in deed”, to provide
customers with heartwarming on-site entertainment experience. It is dedicated to telling China’s stories through the Chinese culture,
promoting confidence of the nation, and striving to become the world’s top Company in cultural performing arts.
(ii) The Principal Business of the Company
In the reporting period, the Company was mainly engaged in live performance and tourism service.
Live performance: The Company has created a unique business model of “Theme park + Cultural performance”. Relying on
“Songcheng” and “Romance Show”, and based on specific scenarios such as theme parks, the Company provides tourists with
high-quality culture and tourism products characterized by a variety of art performances. Projects under operation include
Hangzhou Songcheng Park, Sanya Romance Park, Lijiang Romance Park, Jiuzhai Romance Park, Guilin Romance Park, Zhangjiajie
Romance Park, Xi'an Romance Park, Shanghai Romance Park, etc. Several new projects are under construction or going to be
constructed.
Tourism services include light-asset output business and online sales of tickets. For light-asset output business, the Company
provides partners with brand authorization, planning and design, directing and creation, entrusted operation and other services, so
as to earn income through service fees and entrusted operation management fees. Light-asset projects under operation include
Tanhe Ancient City, Yichun Mingyue Romance Park, and Zhengzhou Huangdi Romance Park. Online sales of tickets refer to online
direct sales and distribution of tickets of performances and projects operated by the Company, and sales of joint tickets and ticket
packages with third-party providers.
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III. Core Competitiveness Analysis
After continuous efforts, the Company has established nationwide chain operation, with more than 40 million regular audiences per
year in normal times. Our market share ranks among the top and continues to increase, with rising efficiency in resource allocation
and brand influence. As a leading enterprise in China's performing arts industry, the Company's core competitiveness is mainly
reflected in the following aspects:
1. Advantage in the Business Model
Centering on performing arts in theme parks with creativity, the Company is different from traditional companies in performing arts
and tourism. The business mode of "theme park + cultural performance" helps solve high performance costs, high traffic attraction
costs, and low frequency of audience replacement faced by common performing arts enterprises without self-owned venues. For
the tourism industry, the mode has overcome shortcomings of insufficient core competitiveness, poor reproducibility, excessive
reliance on large-scale amusement equipment, low marginal effect, homogeneous services, and weak profitability of traditional
enterprises. The Company is transforming from the Romance Show model characterized by “one show and one park” to the
performance theme park model characterized by “multiple theaters, shows, activities and tickets”, a move to enrich business
operations and aim for stronger competitiveness.
2. Brand advantages
The Company has established cultural performance platforms nationwide, thus leading the industry in the numbers of projects,
theaters and seats, performance sessions and viewers, and growing into the largest domestic art performance group with a widely
recognized brand. The Company’s market reputation and strong brand influence have benefited its project expansion, resource
integration, recruitment, and market expansion.
3. Advantages in locations
The Company was one of the first to enter China's first-tier tourism and leisure destinations and most commercially developed cities,
thus occupying locations with the most traffic in the surrounding areas. The Company thus has significant advantages in region and
location. The location advantage has improved the convenience and reduced the costs for the Company to carry out businesses, and
made it difficult for potential competitors to enter the local market. The Company will continue to operate steadily, implement the
expansion strategy based on schedules, and continuously strengthen and consolidate the location advantage.
4. Advantage in Cultural Values
The Company has always rooted its business in Chinese culture and the spirit of Chinese people. Through in-depth on-site
investigations and extensive research, the Company has integrated cultural values, art and commerce, and shouldered its
responsibility to deliver cultural values among people and tell Chinese stories through Chinese culture, thus creating many
high-quality artistic works and achieving sound economic and social benefits.
5. Advantage in Creativity
The Company has strong creativity capability and rich creativity practices. The barrier in creativity established over the years is
difficult for its competitors to break. This top-level design featuring creativity ensures the success of the projects. After years of
development, the Company has built a team with creativity, professionalism, dedication, passion and vitality. The Company has
created a closed-loop industrial chain involving site selection, planning and design, construction investment, directing and creation,
stage choreography, park operation, marketing, and service upgrade. Strong creativity and professional capabilities across the whole
industrial chain ensure the Company’s differentiated operation and continuous innovation, so that the Company can better control
costs, improve efficiency, and enhance profitability.
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6. Advantage in Technology
The Company persists in technology-driven development to innovate services through technology. It always pays close attention to
technological progress, and has integrated virtual and real stage design with cutting-edge digital technologies to create a dream-like
immersive scene and to bring tourists extraordinary experience. The Company continues to promote the deep integration of cultural
creativity and technology to create culture and tourism products that feature “culture + tourism + technology” and culture and
tourism scenarios that integrate reality with virtual technology, leading the development of the industry.
7. Platform advantages
The Company aims to transform into a platform-based enterprise. With an open mind, it has encouraged free mobility and
aggregation of personnel, content, resources and other factors, and takes the lead in integrating and reconstructing the upstream
and downstream of the industrial chain, so as to realize high-efficiency operations at low costs. By transforming itself from a
content-based company that emphasizes creativity to a platform-based one that integrates content creation, art appreciation and
social contact, the Company has created greater value for itself and the cultural performance industry.
8. Advantage in Operation
Over years of development, the Company has demonstrated abilities to respond quickly, implement plans efficiently and keeps pace
with the times in its operations. The Company implements flexible marketing strategies, attaches great importance to the
application of social media, we-media and private traffic, gives full play to the power of creativity, and carries out creative marketing
online and offline to reach clients accurately at low costs. The Company is capable of making planning as well as providing reception
and other services for a large number of tourists, so as to bring them extraordinary experience and make their trips joyful.
IV. Main Business Analysis
1. Overview
2021 marked the first year of the 14th Five-Year Plan. In 2021, China led the world in economic development and pandemic
prevention and control. However, the impact of the change in global landscape and the impact of the COVID-19 pandemic were
unprecedented in a century. For one thing, the COVID-19 virus constantly mutated, and sporadic cases challenged the dynamic
zero-COVID policy, resulting in normalized measures for pandemic prevention and control. For another, the instability in the global
landscape continuously worried people and affected the recovery of consumer confidence. The complex, changeable external
environment affected the consumption demand and the normal operation of the culture and tourism industry, which led to the
sluggish recovery of the industry.
Facing the complex environment and various challenges at home and abroad, the Company kept in mind its vision and mission,
came up with creative ideas and adhered to innovation, gave full play to its advantages, so as to make reasonable and effective
arrangements for the operation schedule of each project, thus showing strong resilience. During the reporting period, the Company
achieved operating income of RMB 1,184.8646 million, a year-on-year increase of 31.27%; net profit attributable to shareholders of
the listed Company was RMB 315.1308 million, a year-on-year increase of 117.98%; net profit attributable to shareholders of the
listed Company after deducting non-recurring gains and losses was RMB 267.8097 million, a year-on-year increase of 115.15%.
As the impact of the change in global landscape and the impact of the COVID-19 pandemic unseen in a century are expected to
continue, the world is going to face more stress and more complicated risks and challenges in the long term. The Company is well
aware of this situation, and has prepared itself for a prolonged difficult time. Facing the uncertainty of the future, the Company
should not only maintain its advantages, but also pursue the development, and it should insist on doing things within the its
capabilities.
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During the reporting period, the Company innovated the management of Hangzhou Songcheng Park and Shanghai Romance Park,
continuously adjusted spatial layout, innovated diverse content, optimized the visiting routes, and promoted the breakthrough and
upgrade of the cultural performance park model, so as to lay the foundation for the operation recovery of the Company in the short
term; the Company integrated advantageous resources, increased investment, and accelerated the construction of
technology-infused theme parks, so as to ensure the medium-term development of the Company; the Company strengthened
market research and drew upon experiences, carried out drastic integration and optimization from the aspects of industrial layout,
project layout, light asset expansion, etc., and accelerated the implementation of platform development strategy, so as to make
sufficient preparations for the Company's long-term development. The Company thoroughly reconstructed the organizational
structure, personnel structure and management process, and strengthened fine operation management to secure the Company's
overall development. The key tasks carried out by the Company during the reporting period are as follows:
(1) Promote the breakthrough and upgrade of the cultural performance park mode
The Company used Hangzhou Songcheng Park and Shanghai Romance Park as models to seek new changes. It continued to make
efforts in terms of spatial layout, content and products, visiting routes, and event marketing, thus promoting the continuous
breakthrough and upgrade of the cultural performance park model.
Based on the advantages as the headquarters, Hangzhou Songcheng Park actively explored the mode featuring multiple theaters,
multiple types and multiple sessions for performances, and accelerated content enrichment and diversification. The outdoor version
of “The Romantic Show of Song Cheng”, the real-scene performance “The Enchanting Bagpipe” and the light-and-shadow show “My
All” made a stunning appearance. The total duration of all shows increased from 120 minutes to 300 minutes. The park also
introduced famous plays such as “Thunderstorm” and “Worry-free Grocery Store”, and jointly hosted the 2nd “Zhi Sheng” Mental
Games and “Zhi Sheng” Mental Sports Industry Expo with the Hangzhou branch of Chinese Chess Academy to effectively meet the
needs of various groups including individual tourists, parents and children as well as students. The Company adjusted and optimized
visiting routes so that the duration of stay of tourists in the park has been increased from 3 hours to 6 hours; special themed events
for young people such as the Halloween-themed “Night in Songcheng” and “Night for the celebration of Christmas and New Year”
have been launched, thus setting new records in the number of sessions and tourists. In 2021, Hangzhou Songcheng Park was
awarded as one of “First batch of national-level nighttime cultural and tourist consumption cluster areas”, the “Place for
experiencing Song Dynasty culture and Hangzhou lifestyle”, “Excellent study trip base (camp) in Hangzhou for primary and middle
school students”, etc. During the Spring Festival, the May Day holiday and the National Day holiday, the total number of visitors, the
total number of performance sessions, operating income, the proportion of individual tourists, and the duration of stay of tourists in
Hangzhou Songcheng Park were all close to or exceeded those of the same period in 2019.
Shanghai Romance Park has a large construction area, high construction standards, and strict requirements for approval. It
successful completion and opening has already been a great success. During the May Day holiday, Shanghai Romance Park achieved
a revenue of over RMB 25 million, receiving 179,000 tourists. The consumption of each visitor reached a new high among that of all
theme parks of Songcheng, thus breaking the record of the opening year of Songcheng during the May Day holiday. During the
National Day holiday, Shanghai Romance Park put on more than 50 sessions of shows such as the live show by the Huangpu River
and the car stunt show every day, and was reported by CCTV and praised for putting on amazing shows during the National Day
holiday. Since its premiere, "The Romantic Show of Shanghai" has become a business card of Shanghai for telling Shanghai stories to
people at home and abroad and building Shanghai’s cultural confidence. During the closing period of the park in winter, the
Company transformed the theme park, and made the spatial layout more compact and organized and the visiting routes smoother.
Also, efforts have been made on improving the diversity and interactivity of the performances. The newly upgraded "The Romantic
Show of Shanghai" is more stunning; the plots of shows are more tense, and the emotion conveyed is stronger. The new “Show with
Meals” pays attention to the stage environment to bring immersive dining experience. The creation and rehearsal of the hilarious
parent-child interactive show Beware - Ocean, the sci-fi love show L'amour bleu, war experience show Cuckoo’s Blood, night show
Shanghai Color and other shows have been completed and will be launched at the appropriate time.
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Other theme parks have adapted themselves to local conditions, gained insights into ethnic characteristics and regional customs,
continuously improved the park atmosphere, launched diversified special events with engaging content, and strengthened
immersive interactive experience. Therefore, tourist satisfaction and market reputation have been further improved. The
Earthquake and Beware - Dinosaurs have been performed in various theme parks of the Company. The Love show series have been
rehearsed and auditioned. The creation of Beware show series was stepped up. The diverse plays, unique outdoor shows and folk
heritage performances have created a rich library of content. Cultural art performance parks have served as open platforms that
adopt all kinds of high-quality, popular market-based content with an open mind to create more new shows and put them on stage
in every park.
(2) Accelerate the construction of technology-infused Songcheng parks
The Company has always been at the forefront of high technology, and is one of the earliest companies in China to commercialize
VR, AR, holograms, motion capture, light and shadow technologies in art performances and tourism scenarios. In 2021, the
Company was jointly recognized as the “4th Batch of National Culture and Technology Integration Demonstration Bases” by the
Ministry of Science and Technology, the Publicity Department of the Central Committee of the CPC, the Office of the Central
Cyberspace Affairs Commission, the Ministry of Culture and Tourism, and the State Administration of Radio, Film and Television.
Hangzhou Songcheng Park passed the High-tech Enterprise Certification in 2021 and was awarded the qualification certificate.
With the continuous progress and maturity of technology, the Company will further give full play to its advantages and maintain its
leading position in the culture and tourism industry, make more efforts to explore and develop the application of new technologies
in theme parks and live performances, upgrade and build comprehensive products featuring culture, tourism and technology. The
Company accelerated its digital transformation, employed technology to empower theme park operations and internal
management, optimized the operation and management processes, and stepped up the ability of quick response and efficient
execution.
(3) Strengthen the enforcement of the platform-based strategy
Due to the prolonged pandemic, the Company has moved up its strategic agenda of building a platform-based enterprise, and will
work on aspects including industrial planning, project planning, light-asset expansion, etc.
In terms of industrial planning, based on the development trend of the industry, the Company has focused on integrating the
upstream and the downstream of the cultural performance industry, devoted itself to building an industrial chain featuring the
integration of the upstream and the downstream. The Company has built and launched a one-stop comprehensive information
platform of the industry in order to better connect the supply end and the demand end, reshape the industrial structure, build a
new chain of value and a new order of the industry; in terms of project planning, in order to build a platform that encourages open
cooperation, the Company has promoted the transfer of projects in Zhuhai and Australia to give full play to the advantages of all
parties for faster and better development of the projects, reduced the Company's capital expenditure, and optimized its asset
structure; in terms of light-asset expansion, the Company will combine resources flexibly, create the new light-asset output mode,
expand from the “head” market to the “waist” market, and to the “long tail” market to meet diversified market demands, stimulate
the vitality of the Company and gain more economic benefits.
(4) Accelerate refined operation management
To work towards the goal of building a platform-oriented enterprise, the Company has carried out systematic and integrated reform
on the organizational structure, built teams with both intensive structures and extensive structures. The Company has standardized
the management process and adopted both vertical management and flat management modes. Through the comprehensive
integration and optimization of departments, levels and positions, the Company has created a core management structure featuring
“one center and five departments” at the headquarter and “four departments and one group” of each project. With the top-down
centralized management approach for all business processes, the Company has made sure that the concept proposed by the core
team was implemented, reduced any loss in intermediate links, concentrated the management responsibility on several personnel
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and reduced expenses, and adopted more diversified forms of labor through cooperation, outsourcing, crowdsourcing, etc. thus
improving management capabilities, reduce management costs and enhance operation efficiency.
Through the reform, the cohesion and capabilities of the core team have been significantly enhanced. The coordination and
mutual-support between projects and departments have been smoother. Efficient information sharing, quality of work, and
responsibility fulfillment have been guaranteed. The systems and processes have become more standardized. At the same time, the
list of university partners and troupes has been continuously expanded, which has helped the Company save and optimize labor
costs, and has provided a foundation for the Company to become a platform, ecosystem and hub. The Company has adapted to the
post-pandemic era and basically transformed itself into a light-manpower enterprise. In the future, on the basis of the core team,
the Company will link internal and external resources to carry out various strategic plans.
(5) Optimize the planning of equity investment
During the reporting period, the overall development of Huafang Technology was good, and its operating and financial targets were
achieved. Its overseas business, live streaming & voice chat and other innovative businesses developed well. The Company has been
working with other shareholders to further promote the operation of Huafang Technology. The Company has withdrawn from some
equity investment projects, gaining good investment returns and taking back large sums of funding.
2. Income and Costs
(1) Operating income structure
Overall operating income
Unit: RMB
2021 years 2020 years
Year-on-year
Proportion in
Proportion in increase or
Amount Operating Amount
Operating Revenue decrease
Revenue
Total Revenue 1,184,864,639.25 100% 902,586,125.63 100% 31.27%
By Industry
I. Culture and Art Industry -
1,009,714,986.26 85.22% 675,872,865.35 74.88% 49.39%
Live Performance
II. Tourism Service Industry 175,149,652.99 14.78% 226,713,260.28 25.12% -22.74%
Classified by product
1. Songcheng in Hangzhou 485,856,997.02 41.01% 286,877,405.89 31.78% 69.36%
2. Sanya Romance Park 147,957,437.74 12.49% 127,098,246.23 14.08% 16.41%
3. Lijiang Romance Park 116,241,285.38 9.81% 136,520,949.23 15.13% -14.85%
4. Jiuzhai Romance Park 45,477,409.61 3.84% 25,667,095.21 2.84% 77.18%
5. Guilin Romance Park 91,145,694.57 7.69% 56,586,027.07 6.27% 61.07%
6. Zhangjiajie Romance Park 32,288,568.20 2.72% 18,120,963.58 2.01% 78.18%
7. Xi’an Romance Park 16,784,668.25 1.42% 25,002,178.14 2.77% -32.87%
8. Shanghai Romance Park 73,962,925.49 6.24% 0.00 0.00%
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9. E-commerce service charge 73,045,802.16 6.16% 43,316,562.23 4.80% 68.63%
10. Design and planning fees 102,103,850.83 8.62% 183,396,698.05 20.32% -44.33%
Classified by region
1. Zhejiang Province 661,006,650.01 55.79% 513,590,666.17 56.90% 28.70%
2. Sanya, Hainan Province 147,957,437.74 12.49% 127,098,246.23 14.08% 16.41%
3. Lijiang, Yunnan Province 116,241,285.38 9.81% 136,520,949.23 15.13% -14.85%
4. Sichuan Province 45,477,409.61 3.84% 25,667,095.21 2.84% 77.18%
5. Shanghai 73,962,925.49 6.24% 0.00 0.00%
6. Guilin, Guangxi Province 91,145,694.57 7.69% 56,586,027.07 6.27% 61.07%
7. Zhangjiajie, Hunan Province 32,288,568.20 2.72% 18,120,963.58 2.01% 78.18%
8. Xi'an, Shaanxi Province 16,784,668.25 1.42% 25,002,178.14 2.77% -32.87%
Classified by sales mode
I. Culture and Art Industry -
1,009,714,986.26 85.22% 675,872,865.35 74.88% 49.39%
Live Performance
II. Tourism Service Industry 175,149,652.99 14.78% 226,713,260.28 25.12% -22.74%
(2) Industry, product, region or sales mode accounting for more than 10% of the Company's operating income
or operating profit
√ Applicable □ Not applicable
Unit: RMB
Increase or
Increase or
decrease of Increase and
decrease of
operating decrease of
gross profit
Gross income operating
Operating income Operating Cost compared
margin compared cost over the
with the
with the same period
same period
same period of last year
of last year
of last year
By Industry
1. Culture and art 1,009,714,986.26 573,167,186.32 43.23% 49.39% 67.81% -6.24%
industry— Live
performance
2. Tourism service 175,149,652.99 6,420,025.35 96.33% -22.74% -42.27% 1.24%
industry
Classified by product
1. Songcheng in Hangzhou 485,856,997.02 274,756,084.44 43.45% 69.36% 47.12% 8.55%
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2. Sanya Romance Park 147,957,437.74 48,095,105.61 67.49% 16.41% 64.18% -9.46%
3. Lijiang Romance Park 116,241,285.38 49,312,322.49 57.58% -14.85% 43.59% -17.27%
4. Design and planning 102,103,850.83 4,232,657.31 95.85% -44.33% -47.83% 0.27%
fees
Classified by region
1. Zhejiang Province 661,006,650.01 281,176,109.79 57.46% 28.70% 42.10% -4.01%
2. Sanya, Hainan Province 147,957,437.74 48,095,105.61 67.49% 16.41% 64.18% -9.46%
3. Lijiang, Yunnan 116,241,285.38 49,312,322.49 57.58% -14.85% 43.59% -17.27%
Province
Classified by sales mode
1. Culture and art 1,009,714,986.26 573,167,186.32 43.23% 49.39% 67.81% -6.24%
industry— Live
performance
2. Tourism service 175,149,652.99 6,420,025.35 96.33% -22.74% -42.27% 1.24%
industry
When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's main business
data should be subject to the one after the statistical caliber at the end of the reporting period is adjusted in the most recent year.
□ Applicable √ Not applicable
(3) Is the company's physical sales income greater than the labor income?
□ Yes √ No
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the
reporting period
□ Applicable √ Not applicable
(5) Operating Cost Structure
Unit: RMB
2021 years 2020 years Year-on-year
Industry
Item Proportion to Proportion to increase or
Classification Amount Amount
Operating Cost Operating Cost decrease
I. Culture and Art
Cost of live
Industry - Live 573,167,186.32 98.89% 341,549,955.68 96.85% 67.81%
performance
Performance
II. Tourism Cost of tourism
6,420,025.35 1.11% 11,120,517.74 3.15% -42.27%
Service Industry service industry
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(6) Has the scope of consolidation changed during the reporting period?
√ Yes □ No
There are 1 newly merged units in this period, the reasons are:
New Merged Units This Year Investment Ratio Notes
Global Bacchus Limited 100.00% New in 2021
In the current period, the number of merged units was reduced by 1 due to:
Reduced Merged Units This Year Investment Ratio Notes
Zhejiang Songcheng Longquan Mountain Tourism 100.00% Equity sale in 2021
Development Co., Ltd
(7) Major changes or adjustments to the company's business, products, or services during the reporting period
□ Applicable √ Not applicable
(8) Major Clients and Suppliers
The Company's Major Clients
Total sales amount of the top five customers 312,345,011.99
Proportion of the total sales amount of the top five
26.36%
customers to the total annual sales
Proportion of the total sales amount of the related parties in
0.00%
the top five customers to the total annual sales
Profiles of the Company's top five customers
No. Name of customer Sales amount (yuan) Proportion to the annual sales
1 Customer I 145,116,607.90 12.25%
2 Customer II 63,037,991.19 5.32%
3 Customer III 53,229,339.62 4.49%
4 Customer IV 35,383,945.17 2.99%
5 Customer V 15,577,128.11 1.31%
Total -- 312,345,011.99 26.36%
Other Information Notes for Major Clients
□ Applicable √ Not applicable
(8) Major suppliers
Total Purchase Amount of Top Five Suppliers (yuan) 276,328,758.02
Proportion of the total purchase amount of top five suppliers
20.54%
to the total annual purchase amount
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Proportion of the total purchase amount of the related
parties in top five suppliers to the total annual purchase 1.97%
amount
Profiles of the Company's top five suppliers
Proportion to the total annual
No. Supplier Name Purchase amount (yuan)
purchase amount
1 Supplier I 101,433,729.98 7.54%
2 Supplier II 76,546,907.91 5.69%
3 Supplier III 43,758,108.57 3.25%
4 Supplier IV 28,121,811.56 2.09%
5 Supplier V 26,468,200.00 1.97%
Total -- 276,328,758.02 20.54%
Other Information Notes for Major Suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
Year-on-year
2021 years 2020 years increase or Statement on Significant Changes
decrease
Sales Expenses 66,184,828.78 63,649,750.30 3.98%
Administration expenses 256,185,046.43 288,084,167.74 -11.07%
Mainly due to the implementation of
Financial Expenses -954,577.44 -12,843,438.15 92.57% the new lease standards during the
reporting period
Research and
41,175,131.35 37,487,964.00 9.84%
development expense
4. R&D Investment
√ Applicable □ Not applicable
Names of major R&D Expected benefits to future
Purpose of project Status of project Objectives
projects development of the Company
Research on the To improve Project has completed the The spotlight can track Improve the stage
automatic tracking performance specified main technical performers timely and presentation and fluency of
spotlight technology quality targets and achieved the accurately the Company's shows as well
for performers on expected results as visitors’ experience
stage
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Design and relevant To improve Project has completed the Simplify the complicated Improve the stage
research of the performance specified main technical process and save the effort presentation and fluency of
mobile rotating stage quality targets and achieved the for fixating and building the Company's shows as well
expected results stages as visitors’ experience
Research and To improve Project has completed the Harmonious integration of Add new performance
development of performance specified main technical physical props and approaches and effects, and
large-scale lighting & quality targets and achieved the projected images improve the effect, and
projection system for expected results enhance visitors’ experience
water shows with
surreal effect
Research on the To improve Project has completed the The immersive lighting Add new performance
technology of performance specified main technical system for interaction can approaches and effects, and
immersive lighting quality targets and achieved the bring real-time immersive improve the effect, and
system for interaction expected results experience through 3D enhance visitors’ experience
projection based on the
features of different shows
Research on the Enrich product Project has completed the Complete the construction Enrich product lines, add
application of VR lines specified main technical of a virtual environment more fun to shows, enhance
technology in targets and achieved the based on real-world visitors’ experience, so as to
interactive design expected results scenarios to bring visitors improve the Company’s
interactive riding competitiveness
experience
Research and To improve Project has completed the Realize the operation and Enhance the stage effect of
development of the performance specified main technical maintenance of the lift the Company's shows and
mobile device of quality targets and achieved the structure of assault boats enhance visitors’ experience
assault boats for stage expected results
performance
Research on the To improve Project has completed the Review and optimize the Enhance the stage effect of
application of colors performance specified main technical color schemes used in the Company's shows and
in stage lighting quality targets and achieved the lighting designs enhance visitors’ experience
design expected results
Research on the To improve Project has completed the Research on the Enhance the stage effect of
application of dance performance specified main technical application of dance the Company's shows and
cultures in quality targets and achieved the rhythms in choreography enhance visitors’ experience
choreography expected results
Research on the To improve Project has completed the Improve, correctly use, and Enhance the smoothness and
safety application of performance specified main technical properly maintain the safety of the Company's
stage machinery quality targets and achieved the configuration of stage performances and make sure
expected results machinery that all shows are performed
as planned
Research on the role To improve Project has completed the Employ stage lighting Enhance the stage effect of
of the timing of stage performance specified main technical changes to divide a show the Company's shows and
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lighting changes and quality targets and achieved the into several acts, and enhance visitors’ experience
its application expected results create a rhythm for shows
Research and To improve Project has completed the Complete the design of the Add new performance
development of performance specified main technical stage machinery for approaches and effects, and
automatic stage quality targets and achieved the mimicking volcano improve the effect, and
machinery for expected results eruptions and apply it to enhance visitors’ experience
mimicking volcano shows
eruptions
Research on the To improve Project has completed the Strengthen the appeal of Enhance the stage effect of
integrated application performance specified main technical the performance and the Company's shows and
of choreography and quality targets and achieved the create a livelier enhance visitors’ experience
stage machinery expected results atmosphere
3D water effect device To improve Project has completed the Quickly switch among Enhance the stage effect of
performance specified main technical multiple scenes on stage in the Company's shows and
quality targets and achieved the a short time enhance visitors’ experience
expected results
Make technical To improve Project has completed the Address the weaknesses in Enhance the safety of the
improvements to performance specified main technical existing stage props and Company's performances and
stage props quality targets and achieved the eliminate potential safety make sure that all shows are
expected results hazards performed as planned
Make technical To improve Project has completed the Make device installation Enhance the safety and
improvements to performance specified main technical and operation more smoothness of the Company's
stage devices quality targets and achieved the convenient, and eliminate performances and make sure
expected results potential safety hazards that all shows are performed
as planned
Research and To improve Project has completed the Present a more gorgeous Add new performance
development of performance specified main technical stage effect with approaches, improve the
holographic quality targets and achieved the holographic projection and stage effect, and enhance
projection and expected results naked-eye 3D technology visitors’ experience
naked-eye 3D
technology for stages
Research and To improve Project has completed the Solve the problems of Optimize the stage effect of
development of the performance specified main technical insufficient opening of the Company's shows and
curtain projection quality targets and achieved the curtain and loud noise improve visitors’ experience
device for interactive expected results during curtain opening
stage
Research and To improve Project has completed the Improve the automation Optimize the stage effect of
development of the performance specified main technical level of stage lighting the Company's shows and
smart stage lighting quality targets and achieved the systems improve visitors’ experience
system expected results
Research and To improve Project has completed the Solve the problems Improve the sound quality of
development of the performance specified main technical brought by the existing the Company's shows and
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sound damping device quality targets and achieved the stage audio technology due enhance visitors’ experience
expected results to the materials of audio
devices
Research and To improve Project has completed the Solve the problem of the Improve the sound quality of
development of the performance specified main technical remote control devices for the Company's shows and
remote control device quality targets and achieved the stage speakers that don't enhance visitors’ experience
for stage speakers expected results have rotation function
Research and To improve Project has completed the Solve the problem of the Optimize the stage effect of
development of performance specified main technical height of the current stages the Company's shows and
rotating stage lift quality targets and achieved the that cannot be adjusted improve visitors’ experience
platforms expected results
Research and To improve Project has completed the Have better control over Optimize the stage effect of
development of performance specified main technical the stage effect and step the Company's shows and
Songcheng stage quality targets and achieved the up control over stage improve visitors’ experience
control software expected results machinery and devices
Research and Build smart theme Project has completed the Address issues that no Improve the Company’s
development of parks specified main technical existing enterprise management efficiency
enterprise targets and achieved the management software can
management expected results solve or the issues to which
software of there are no standard
Songcheng solutions, and reduce the
cost of data exchange
within the enterprise.
Research and Build smart theme Project has completed the Develop a good Improve the Company’s
development of the parks specified main technical understanding of the status management efficiency and
smart tourism targets and achieved the of all theme park resources service quality
information expected results and convey event
management system information to visitors
timely and accurately
through proactive
identification, real-time
transmission, in-depth
analysis and operation
control
Research and Build smart theme Project has completed the Manage all parking lots in Improve management
development of the parks specified main technical theme parks in a unified efficiency of parking lots and
parking lot targets and achieved the way and integrate all visitors’ experience
management system expected results parking lots into the same
network for parking fee
charging by establishing a
parking lot management
system.
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Research and Build smart theme Project has completed the Show the real-time Improve queuing efficiency
development of the parks specified main technical queuing status on visitors’ and visitors’ experience
queuing management targets and achieved the phones through a system
system in theme parks expected results featuring on-site ticket
distribution and printing,
online queuing, and calling
functions
Development of the Build smart theme Project has completed the Analyze data, and observe Improve marketing efficiency
online mall system of parks specified main technical the data of competitors’
theme parks based on targets and achieved the accounts and industry
Tik Tok’s mini program expected results developments, and
develop a good
understanding of industry
trends.
Development of the Build smart theme Project has completed the Realize synchronization of Improve the Company’s
online order data parks specified main technical orders and inventory, management efficiency
synchronization targets and achieved the refund and written-off
system for theme expected results functions
parks
Research and Build smart theme Project has completed the Merchants can view Improve marketing efficiency
development of the parks specified main technical various daily and monthly
coupon management targets and achieved the reports on their mobile
system in theme parks expected results devices or in their
web-based management
applications
Development of the Build smart theme Project has completed the Conduct analysis on Reduce visitors’ expenditures
smart tourism parks specified main technical functional modules, and improve visitors’
product portfolio targets and achieved the performance and security, experience
system expected results establish the coupon
distribution and written-off
management system, and
provide customers with the
best discount portfolio
Development of the Build smart theme Project has completed the Conduct analysis through Make it more convenient and
intelligent notification parks specified main technical the intelligent GPS, and comfortable for visitors to
system in theme parks targets and achieved the quickly transmit enjoy themselves in theme
expected results multimedia information to parks
visitors to improve the
efficiency and experience
of visiting
R&D personnel of the Company
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2021 years 2020 years Year-on-year change
Number of R&D personnel 196 253 -22.53%
Percentage of R&D personnel 16.91% 17.56% -0.65%
Educational background of R&D personnel
Bachelor 78 95 -17.89%
Postgraduate 2 1 100.00%
Age of R&D personnel
Below the age of 30 70 103 -32.04%
Aged between 30 to 40 77 91 -15.38%
The Company's R&D investment in the past three years and its percentage in operating income
2021 years 2020 years 2019 years
R&D investment (yuan) 41,175,131.35 37,487,964.00 48,424,520.54
The proportion of R&D
3.48% 4.15% 1.85%
investment to operating income
Capitalized amount of R&D
0.00 0.00 0.00
expenditure (yuan)
Percentage of capitalized R&D
0.00% 0.00% 0.00%
expenditure in R&D investment
Percentage of capitalized R&D
expenditure in current net 0.00% 0.00% 0.00%
profit
Reasons and impacts of significant changes in R&D personnel composition of the Company
□ Applicable √ Not applicable
The reason for the significant change in the proportion of the total amount of R&D investment to operating income compared with
last year
□ Applicable √ Not applicable
Reasons and rational explanations on the substantial change in capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash Flow
Unit: RMB
Year-on-year increase or
Item 2021 years 2020 years
decrease
Subtotal of cash inflow from
1,395,144,293.27 943,790,117.88 47.82%
operational activities
Subtotal of cash outflow from
644,670,483.48 549,848,217.94 17.25%
operational activities
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Net cash flow generated by
750,473,809.79 393,941,899.94 90.50%
operating activities
Subtotal of cash inflow from
1,567,301,139.38 1,351,939,517.27 15.93%
investment activities
Subtotal of Cash Outflow from
1,603,861,467.40 2,292,941,086.10 -30.05%
Investment Activities
Net amount of cash flow generated
-36,560,328.02 -941,001,568.83 96.11%
by investment activities
Subtotal of cash inflow from
420,000,000.00 -100.00%
financing activities
Subtotal of cash outflow from
196,202,037.34 306,917,837.81 -36.07%
financing activities
Net cash flow generated by
-196,202,037.34 113,082,162.19 -273.50%
financing activities
Net additions to balance of
520,971,610.06 -443,933,773.37 217.35%
equivalents
Description of the main factors affecting the significant changes in related data over the same period of last year
√ Applicable □ Not applicable
During the reporting period, the subtotal of cash inflows from operating activities and the net cash flows from operating activities
increased by 47.82% and 90.50% respectively year on year, mainly due to the year-on-year increase of operating revenue.
During the reporting period, the subtotal of cash outflows from investment activities decreased by 30.05% year on year, and net
cash flows from investment activities increased 96.11% year on year, mainly due to the decrease in project investment.
During the reporting period, the subtotals of cash inflows, cash outflows and net cash flows from financing activities decreased by
100%, 36.07% and 273.50 respectively year on year, mainly due to the year-on-year decrease in the new bank borrowings and
reduced dividend payouts.
Reasons for the significant difference between the net cash flow generated by the company's operating activities in the reporting
period and the net profit in the current year
√ Applicable □ Not applicable
Supplementary information Amount of this period
1. Reconciliation of net profit to cash flows from operational activities:
Net Profit 302,593,961.40
Plus: Credit impairment loss 16,581,681.70
Provision for Impairment of Assets 10,082,554.54
Depreciation of fixed assets 241,582,094.98
Depreciation of right-of-use assets 34,607,328.24
Amortization of Intangible Assets 50,825,412.01
Amortization of long-term prepaid expenses 59,765,277.28
Losses on disposal of fixed assets, intangible assets and other long-term assets (mark "-" -4,512,572.52
for incomes)
Losses on scrapping of fixed assets (mark "-" for incomes) 32,221,090.95
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Losses on fair value changes (mark "-" for incomes) 12,098,344.02
Financial expenses (mark "-" for incomes) 23,509,105.27
Losses on investment (mark "-" for incomes) -181,840,347.56
Decrease on deferred income tax assets (mark "-" for increases) -7,057,573.77
Increase on deferred income tax liabilities (mark "-" for decreases) -3,051,166.37
Decrease on inventories (mark "-" for increases) 902,490.69
Decrease on operational receivables (mark "-" for increases) 101,886,633.14
Increase on operational payables (mark "-" for decreases) 60,279,495.79
Net cash flow generated by operating activities 750,473,809.79
VI. Non-main Business
√ Applicable □ Not applicable
Unit: RMB
Percentage of Total
Amount Reason Sustainability
Profit
Mainly due to long-term equity
Investment Income 181,840,347.56 52.88% investment calculated by using Yes
the equity method
Mainly due to the year-on-year
Changes in fair
increase in the Company's
value gains and -12,098,344.02 -3.52% No
recovery of financial products
losses
upon maturity
Due to goodwill impairment loss
Asset Impairment -10,082,554.54 -2.93% from Jiuzhaigou Tibetan No
Mystery Company
Non-operating
6,091,127.99 1.77% No
Revenue
Non-Operating Mainly due to the Company's
34,713,244.90 10.10% No
Expenses scenic upgrades and renovations
VI. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
End of 2021 Early 2021
Proportion
Proportion Proportion Statement on Significant
increase and
Amount To Total Amount To Total Changes
decrease
Assets Assets
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Cash and Bank
1,858,747,864.04 18.92% 1,337,776,253.98 13.92% 5.00%
Balances
Accounts
2,197,594.37 0.02% 5,887,012.36 0.06% -0.04%
receivable
Contract Assets 0.00% 0.00% 0.00%
Inventory 12,521,655.81 0.13% 13,424,146.50 0.14% -0.01%
Investment
0.00% 0.00% 0.00%
Property
Long-term Equity
1,677,553,347.68 17.07% 1,534,539,625.11 15.97% 1.10%
Investment
Fixed Assets 2,697,045,965.17 27.45% 2,508,754,929.16 26.11% 1.34%
Projects under
404,739,821.09 4.12% 771,871,563.73 8.03% -3.91%
Construction
Right-of-use
493,815,583.40 5.03% 526,000,589.97 5.47% -0.44%
Assets
Short-term loan 0.00% 0.00% 0.00%
Contract
87,754,309.11 0.89% 188,550,237.52 1.96% -1.07%
liabilities
Long-term loan 270,000,000.00 2.75% 282,000,000.00 2.93% -0.18%
Lease Liabilities 371,772,172.05 3.78% 390,537,511.61 4.06% -0.28%
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
At the Changes in fair Purchase At the
Cumulative Impairment
beginning of value gains amount of Sales amount of end of
fair value loss of the Other
Item the and losses in the the reporting the
changes in reporting variations
reporting the current reporting period reporting
equity period
period period period period
Financial Assets
1. Trading
financial
assets 328,627,827 910,000,000
-8,179,556.84 0.00 0.00 1,255,643,588.61 25,195,317.85 0.00
(excluding .60 .00
derivative
financial
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assets)
2. Derivative
6,589,730.0 2,670,942
financial -3,918,787.18
8 .90
assets
3. Investment
in other 224,266,596 -45,020,144. 86,485,8
92,760,615.31
equity .74 84 36.59
instruments
Subtotal of
559,484,154 -12,098,344.0 -45,020,144. 910,000,000 89,156,7
financial 0.00 1,348,404,203.92 25,195,317.85
.42 2 84 .00 79.49
assets
559,484,154 -12,098,344.0 -45,020,144. 910,000,000 89,156,7
Total 0.00 1,348,404,203.92 25,195,317.85
.42 2 84 .00 79.49
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Other changes
Other changes are due to cumulative investment income
Are there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
3. Restrictions on asset rights as of the end of the reporting period
As of the end of the reporting period, the Company's main assets were not seized, frozen, mortgaged or pledged.
VII. Analysis of Investment
1. Overview
√ Applicable □ Not applicable
Investment Over The Corresponding
Investment In The Reporting Period (RMB) Rate Of Change
Period Of Last Year
1,710,295,515.16 2,159,030,550.70 -20.78%
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
□ Applicable √ Not applicable
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4. Financial assets at fair value
√ Applicable □ Not applicable
Unit: RMB
Changes in fair Amount Amount
Cumulative
Initial value gains purchased sold during Cumulative Amount at
fair value Capital
Asset Class Investment and losses in during the the investment the end of
changes in Source
Cost the current reporting reporting income the period
equity
period period period
Temporarily
172,445,378.2 180,433,87 15,985,599.
Fund -7,997,107.50 0.00 idle own
6 0.33 57
funds
Temporarily
Financial 2,670,942.9
6,589,730.08 -3,918,787.18 idle own
Derivatives 0
funds
Other (Bank Temporarily
156,182,449.3 910,000,000. 1,075,209,7 9,209,718.2
Financial -182,449.34 0.00 idle own
4 00 18.28 8
Products) funds
335,217,557.6 -12,098,344.0 910,000,000. 1,255,643,5 25,195,317. 2,670,942.9
Total 0.00 --
8 2 00 88.61 85 0
5. Utilization of raised funds
□ Applicable √ Not applicable
No use of funds in the reporting period of the Company
VIII. Sales of major assets and equities
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
√ Applicable □ Not applicable
Net profit The Pricing Whether the
Whether all
Price of contributed proportion of principle Relation sale is
Influence of the Whether it the equity
Equity Date of transaction by the equity net profit for the with implemented as Date of Disclosure
Related party sale on the is a related involved
sold sale (RMB to the contributed sale of related scheduled. If Disclosure Index
Company transaction has been
10,000) Company by the sale of the party not, the
transferred
from the the equity to equity reasons and
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beginning of the total net measures taken
this period to profit of the by the
the date of Company Company shall
sale (RMB be explained.
10,000)
This transaction
conforms to the
Company's overall
Zhejiang development
Songcheng strategy, which
Longquan Monday, helps the
Fair
Mountain 100% April 12, 10,919.93 -511.94 Company further 16.74% No N/A Yes Yes
value
Tourism 2021 focus on the main
Development business and
Co., Ltd improve the
efficiency of
operation and
management.
IX. Analysis of Major Subsidiaries and Associates
√ Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.
Unit: RMB
Company Main Registered Operating Operating
Company Type Total Assets Net Assets Net Profit
Name businesses Capital income Profit
Hangzhou
Songcheng
performance
Theme park +
Valley Subsidiary 100,000,00 1,060,879,22 556,183,600. 362,855,095. 82,530,907.9 66,473,712.8
Art
technology Company 0.00 3.68 76 01 6 1
performance
and Culture
Development
Co., Ltd
Sanya
Romance Theme park +
Subsidiary 490,000,00 986,513,761. 952,626,178. 147,957,437. 70,492,876.6 53,694,735.5
Tourism Art
Company 0.00 52 47 74 8 9
Performance performance
Co., Ltd.
Lijiang Theme park +
Subsidiary 250,000,00 642,204,343. 613,982,827. 116,241,285. 40,739,967.4 34,002,128.0
Chama Art
Company 0.00 18 81 38 6 0
Ancient City performance
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Tourism
Development
Co., Ltd
Tourism
resource
development,
tourism
Songcheng planning and
Tourism Subsidiary design, artistic 50,000,000. 708,187,009. 478,859,288. 66,719,905.6 62,789,450.7 62,844,964.0
Development Company creation, 00 02 88 6 3 0
Co., Ltd. brand and
marketing
planning of
tourist
attractions
Performance,
artistic
creation and
Songcheng
choreography,
Performance Subsidiary 50,000,000. 137,466,779. 135,311,734. 97,203,277.0 70,127,657.1 61,350,577.1
performance
Management Company 00 12 61 0 9 0
and brokerage
Co., Ltd.
business,
performance
management
Internet
information
service,
performance
Huafang brokerage
Group Inc. business,
(formerly music and
known as Joint stock entertainment 2,291,613,94 1,912,350,48 4,539,988,14 416,020,067. 320,716,642.
USD 50,000
Beijing company products 3.02 1.63 3.60 18 08
HuafangTech through
nology Co., information
Ltd.) network,
game
products,
competition
activities
Description of major subsidiaries and associates
1. Huafang Group Inc. (formerly known as Beijing Huafang Technology Co., Ltd.): The original shareholders of Beijing Huafang
Technology Co., Ltd. including Songcheng Performance Development Co., Ltd signed the VIE framework agreement. At the same
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time, Global Bacchus Limited, a wholly-owned subsidiary of the Company, purchased 37.06% of the equity of Huafang Group Inc. at
the price of USD 1,976.4706 (equivalent to RMB 12,836.58). After signing the above agreement, Global Bacchus Limited, a
wholly-owned subsidiary of the Company, holds the 37.06% of the equity of Huafang Group Inc. and has all the rights and
obligations pertaining to the 37.06% equity of Beijing Huafang Technology Co., Ltd.
2. The report data of Huafang Group Inc. (formerly known as Beijing Huafang Technology Co., Ltd.) is presented on the basis of the
fair value of the investee's identifiable assets and liabilities when the investment is obtained.
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production management
Company Name
subsidiaries during the reporting period and performance
Global Bacchus Limited New in 2021
Zhejiang Songcheng Longquan Mountain
Equity sale in 2021
Tourism Development Co., Ltd
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Outlook for the Future Development of the Company
(I) Development Strategy Planning of the Company
The Company is dedicated to telling China’s stories through the Chinese culture, promoting confidence of the nation, and striving to
become the world’s top company in cultural performance. In the short term, based on all theme parks, the Company will accelerate
the development of the performance park mode to keep a balance between pandemic control and business operation, and to get
ready for rebound in growth in the post-pandemic era; in the medium term, the Company will enhance its potential through
technological and digital transformation, reduce costs and increase efficiency, and pursue growth driven by internal factors; in the
long run, the Company will promote the development of innovative businesses such as performance platforms and high technology
to create new growth drivers.
(II) Work Plan in 2022
Facing changes in the global landscape and the COVID-19 pandemic unseen in a century, the Company needs to have vision and the
courage to take concrete steps, have an in-depth understanding of the world's development trend, and gain insights into the trend
of the industry. In the complex and difficult environment, everyone in the Company shall be united together in doing pioneering and
innovative work by adhering to the "Songcheng model". The Company will stay as the pioneer and leader of Chinese theme parks,
and inherit and introduce Chinese culture to the rest of world. In 2022, the Company will mainly work on the following aspects:
1. Promote the progress of the performance park mode
The Company will start with Shanghai Romance Park to prioritize the development of programs and content while improving
hardware and environment, spatial layout and route planning, and later it will comprehensively upgrade and transform other theme
parks around the country, strengthen the unique feature of large theme parks with a large number of performances, so as to
improve the capacity and anti-risk ability of each theme park.
The Company will continue to implement new concepts regularly, focus on promoting the improvement of the "Romance Show"
series to ensure the long-lasting vitality of the series through small innovative adjustments. The Company will create more diverse
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Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
and innovative programs including performances for children, performances with dining experience, outdoor performances,
interactive performances, immersive performances, technology-infused and trendy performances. Based on the characteristics of
the region, season and time, the Company will carry out various theme festivals to meet the diverse needs of all visitors around the
year. Aiming at improving the proportion of outdoor areas of theme parks and extending the length of time spent in outdoor areas,
the Company will make persistent efforts to further improve the construction of the outdoor areas in theme parks and providing
high-quality services. Through digital transformation, network construction and intelligent technology, the Company will take the
initiative to embrace technological transformation, enhance investment in science and technology, and make visits more convenient
and comfortable.
2. Give full play to advantages and create a new driver for technological growth
The Company will step up the digital transformation of theme parks, further strengthen the application of scientific and
technological approaches in theme parks and live performances, launch more products and scenes integrating art and technology,
and promote the integration of technology, art and performances to improve the experience of visitors, so as to enable the
Company itself to keep up with the latest trends in science and technology and show strong vitality.
In particular, the Company will give full play to its rich experience in the in-depth integration of culture-based creativity and
technology. Through the dual growth drivers of strategic investment and resource integration, more efforts should be made to
explore and develop the application of metaverse technology in theme parks and live performances, and accelerate the
development of independent products infused with VR, AR, holography, lighting & projection and other emerging technologies. The
Company will complete the construction of technology-infused projects and launch these projects, seize the opportunity to rapidly
grow into a leading domestic supplier that integrates culture-based creativity and technology in depth, so as to build a new driver
for the Company’s technological growth.
3. Integrate resources and incubate platforms to create new formats
The Company will build platforms, upgrade formats and promote business model innovation. The Company will integrate the
upstream and the downstream based on its advantageous area, build a new value network and a new industry order, open up a
second channel for growth, and make plans for the Company’s business development through different platforms, so as to revitalize
internal resources, tap new market demands, new drivers of consumption and new operation models, thus creating a "new
Songcheng model" which integrates the supply chain, industrial chain and scene chain.
Facing the unfavorable external environment, the Company will be fully prepared for the worst situation possible. The Company will
adjust the expansion schedule based on business development, strengthen communication and external cooperation with all parties,
promote the transfer cooperation and development of projects in Zhuhai and Australia, and explore more diversified modes for
project cooperation, development, and operation. Through these adjustments, the Company will enjoy more sound financial
management, healthier business, and more flexibility in changing its industry positioning and will be able to deal with the risks
posed by the uncertain duration of the pandemic. In terms of light-asset expansion, on the basis of the existing mode of delivering
the entire projects, the Company will create more light-asset cooperation modes based on market demands to give better play to
the brand’s influence and to improve profitability.
4. Employ innovative thinking to complete marketing campaign upgrade
The Company will upgrade the marketing approach by thinking out of the box, and carry out campaigns in terms of extensive
channels, innovative contents, insights into target groups, digital intelligence, etc., so as to create an industry-leading marketing
system.
The Company will create a matrix of channels in multiple dimensions both online and offline. For offline channels, the Company will
reach customers such as source travel companies, travel agencies, wholesalers and individual tourists. For online channels, the
Company will develop differentiated marketing strategies based on the attributes of OTA, self-operated e-commerce, we-media
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e-commerce and short video e-commerce. Based on creative theme campaigns, the Company will gain traffic both online and offline,
identify target groups and reach them accurately. It will attract customers and operates businesses by targeting young people, lovers,
friends, parents and children, meeting the needs of business trips and study trips, and seizing market opportunities in neighboring
areas, thus aiming for medium-term and long-term development. The Company will build an urban platform for entertainment,
leisure and social connection for the people at all ages. The Company will constantly collect data in different dimensions to enrich
its base of big data, and employ technical means to help deliver high-quality service and develop an integrated marketing approach.
5. Strengthen management innovation to further reduce costs and increase efficiency
The Company will further optimize the management system and process, speed up the standardization of the management
mechanism, adopt both vertical management and flat management modes, and ensure the good decision-making capability of the
Company and the good execution capability of the staff. The Company will improve the overall management, and deal with the
management cost and management pressure brought by the pandemic and the Company’s development through management
reconstructing. The Company will manage its projects across the country as a whole, make constant adjustments in employment
arrangements across projects, explore external labor sources, adopt a flexible employment mode, and make full use of all resources
available in the society to meet its demands for flexible employment.
(III) Possible Risks
1. Risk of public health emergencies
Public health emergencies affect tourism, leisure and cultural and recreational activities to varying degrees, thus having a negative
impact on the Company's operating performance and financial situation. Since the end of 2019, the COVID-19 pandemic has
evolved into a global public health emergency and has been going on to this day. This has seriously discouraged consumption in the
culture and tourism industries and has had a detrimental effect on the Company's operating performance in the past two years.
Countermeasures: the Company will locate its projects nationwide, continuously upgrade and enrich the formats of products, and
transform itself into a platform-based enterprise. It will also reduce costs and increase efficiency, make operation planning in a
coordinated way, arrange project operations in various regions reasonably and effectively, and maintain flexibility and resilience, so
as to minimize the adverse effects of the pandemic.
2. Risks of Macroeconomic Fluctuation
The global pandemic continues to evolve, and the external environment becomes more complex and challenging. The global
landscape is changing more rapidly, thus adding uncertainties to China's economic and social development. The complicated and
changeable macroeconomic environments may affect the national income and thus people’s consumption, thereby affecting the
operating performance of the Company.
Countermeasures: The Company will continue to work on its main business areas by developing a content system divided into high,
middle and low levels, make full use of new technology as an innovative way of expression, and enhance product attractiveness
with powerful content. It will also strengthen marketing efforts and continuously expand target groups and forms of tourism to
hedge the risks of economic fluctuations.
3. Risks in competition in the industry
In the performance industry, every entity is developing rapidly and the Company is facing fierce competition. Homogeneous
products and low prices have a negative impact on the order of the industry and its long-term development. Live performances are
also affected by short videos, movies and dramas, games, variety shows, live streaming, VR, AR and other forms of digital
entertainment. A large number of players in the industry have led to a saturated market in all aspects, which has posed great
challenges to the Company's operation and management.
Countermeasures: The Company will focus on its main business areas, strengthen the management mode of "Theme park + Cultural
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performance", continuously improve its differentiated management capability and innovative capability, and further consolidate its
own competitive advantages. The Company will embrace the changes of the times and technological upgrades, and actively carry
out operation featured by digital transformation, network construction and intelligent technology.
4. Risks in Safety Accidents
Live performances operated by the Company, consisting of both indoor and outdoor performances, may be occasionally hindered by
safety accidents due to the failure of the theater facilities. Safety directly concerns the personal safety of the tourists and the
reputation of the Company, which will have a negative impact on the Company's operation and brand.
Countermeasures: the Company should always adhere to the bottom line of safety in its principles and actions, formulate clear and
operable rules, regulations, processes and specifications, assign persons in charge to specific positions as well as clarify the reward
and punishment measures, and hold safety training sessions and safety drills throughout the year, so as to reduce safety accidents
and losses as much as possible.
XII. Registration Form for Reception of Research, Communication, Interviews and Other Activities
during the Reporting Period
√ Applicable □ Not applicable
Main content of
the discussion
Reception Reception Reception target Reception Index of the basic
Reception Time and the
location Method type objects information of research
information
provided
For details, please refer
to the "Record of
Investor Relations
Brokerage Operation Activities on Tuesday,
Tuesday, January Company Field researcher and overview of January 5, 2021"
Institution
5, 2021 meeting room Investigation fund company projects and announced by the
manager Q&A Company on
http://www.cninfo.com
.cn on Wednesday,
January 6, 2021.
For details, please refer
to the "Record of
Investor Relations
Brokerage 2020 Activities on Sunday,
Sunday, January Company Communication researcher and performance January 31, 2021"
Institution
31, 2021 meeting room over phone fund company forecast and announced by the
manager Q&A Company on
http://www.cninfo.com
.cn on Sunday, January
31, 2021.
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For details, please refer
to the "Record of
Investor Investor Relations
Brokerage meetings during Activities on Thursday,
Thursday, April Songcheng in Field researcher and the opening April 29, 2021"
Institution
29, 2021 Shanghai Investigation fund company period of announced by the
manager Songcheng in Company on
Shanghai http://www.cninfo.com
.cn on Friday, April 30,
2021.
For details, please refer
to the "Record of
Investor Relations
“Investor
Company's Activities on Friday,
relations
Friday, May 7, performance May 7, 2021"
interactive Others Others Online Investors
2021 presentation announced by the
platform” on
meeting of 2020 Company on
www.p5w.net
http://www.cninfo.com
.cn on Sunday, May 9,
2021.
For details, please refer
to the "Record of
Investor Relations
Brokerage Performance Activities on Friday,
Friday, August Company Communication researcher and overview in the August 27, 2021"
Institution
27, 2021 meeting room over phone fund company first half of 2021 announced by the
manager and Q&A Company on
http://www.cninfo.com
.cn on Sunday, August
29, 2021.
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Section IV Corporate Governance
I. Basic Situation on Corporate Governance
During the reporting period, the Company further improved its corporate governance structure, standardized its operations and
enhanced its corporate governance in strict compliance with the requirements of the Company Law, the Securities Law, the Code of
Corporate Governance of Listed Companies, the Listing Rules of Growth Enterprise Market of Shenzhen Stock Exchange and the
relevant laws and regulations and regulatory documents. As at the end of the reporting period, the actual situation of the
Company's governance was basically in compliance with the normative documents issued by the CSRC on the governance of listed
companies.
1. About Shareholders and Shareholders’ Meetings
The Company convenes and holds shareholders' meetings in strict accordance with the provisions and requirements of the Rules for
General Meetings of Listed Companies, the Articles of Association and the Rules of Procedure for General Meetings, so as to ensure
that all shareholders, in particular the minority shareholders are treated fairly, and fully exercise their rights.
2. About the Company and the Controlling Shareholders
The Company has independent business and operation ability, and is independent of the controlling shareholder in terms of
business, personnel, assets, institutions and finance, and the Company's Board of Directors, Board of Supervisors and internal
institutions operate independently. The controlling shareholders of the Company can strictly regulate their own conduct and have
not interfered directly or indirectly with the decision-making and operation activities of the Company beyond the shareholders’
meetings or the Board of Directors of the Company.
3. About the Directors and the Board of Directors
The Company elects directors in strict accordance with the selection and appointment procedures stipulated in the Articles of
Association; the Board of Directors of the Company has nine directors, including three independent directors, accounting for
one-third of all directors, and the number and composition of the Board of Directors are in compliance with laws and regulations
and the requirements of the Articles of Association. The Company has three female directors, accounting for one third of all
directors. The three independent directors are experienced professionals engaged in tourism and financial industry for more than
two decades. Other directors have more than two decades of experience in tourism project development, enterprise management
and rich experience in capital management, and are able to provide effective suggestions for the healthy development of the
enterprise and make decisions on major issues of the Company in all aspects. All directors of the Company shall carry out their work
in accordance with the Rules of Procedure of the Board of Directors and the Management System of Independent Directors, attend
the General Meeting of Shareholders timely, actively participate in relevant professional training and familiarize themselves with
relevant laws and regulations.
4. About the Supervisors and Board of Supervisors
The Company shall select supervisors in strict accordance with the relevant provisions of the Company Law and the Articles of
Association, etc. The Board of Supervisors of the Company has three supervisors, including one staff supervisor, and the number
and composition of the Board of Supervisors are in compliance with the requirements of laws and regulations. The supervisors of
the Company are able to perform their duties conscientiously in accordance with the requirements of the Rules of Procedure of the
Board of Supervisors, etc., and effectively supervise and express independent opinions on the Company’s major matters, connected
transactions, financial position, performance of duties of directors and managers.
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5. Performance Evaluation & Incentive and Restraint Mechanism
The Company has gradually established a fair and transparent performance evaluation standards and incentive and restraint
mechanisms for directors, supervisors and senior management, and the appointment of senior management of the Company is
open and transparent and in compliance with the laws and regulations. In addition, in order to further improve corporate
governance, the Company fully arouses the initiative and creativity of directors, supervisors and senior management, and create
greater benefits for the Company and shareholders. In accordance with the principles of matching responsibilities, rights and
benefits, and based on actual situation of the Company and the characteristics of the industry, the remuneration plan for directors,
supervisors and senior management has been formulated according to the Company Law, the Articles of Association and the
Implementation Rules of the Remuneration and Appraisal Committee, and other regulations.
6. Relevant stakeholders
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders and achieves a coordinated
balance of the interests of society, shareholders, the Company and employees to jointly promote the sustainable and sound
development of the Company.
7. Information Disclosure and Transparency
The Company has designated the Secretary of the Board of Directors as the person in charge of investor relations management of
the Company, who is responsible for management of information disclosure and investor relations of the Company and reception of
visits and inquiries from shareholders; designated Securities Times, Securities Daily and Cninfo as the newspapers and website for
information disclosure of the Company, disclosing information truthfully, accurately and timely in strict accordance with the relevant
laws and regulations and ensuring that all shareholders have fair opportunities access to information.
Whether there is any significant difference between actual situation of corporate governance and laws, administrative regulations
and the provisions on governance of listed companies issued by CSRC
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and laws, administrative regulations, and
the provisions on governance of listed companies issued by CSRC.
II. The company's independence from the controlling shareholders and actual controllers in
assets, personnel, finance, organization, business, etc.
Since establishment, the Company has been operating in strict accordance with the requirements of the Company Law, the
Securities Law and other relevant laws and regulations and Articles of Association, and is independent of each other in terms of
business, assets, personnel, organization and finance, and there is no situation in which the Company cannot guarantee its
independence and maintain its ability to operate independently from its controlling shareholder in terms of business, personnel,
assets, organization and finance.
III Horizontal competition
□ Applicable √ Not applicable
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IV. Relevant Situation of the Annual General Meeting of Shareholders and the Extraordinary
General Meeting of Shareholders Held in the Reporting Period
1. The shareholders' meetings for this reporting period
Percentage of Date of
Conference Session Conference Type Date of Conference Meeting Resolution
Investors Involved Disclosure
Notice of Resolution of 2020
Shareholders' Tuesday, Annual General Meeting of
Annual General Tuesday, May 18,
General Meeting in 56.89% May 18, Shareholders (2021-020),
Meeting 2021
2020 2021 available at
http://www.cninfo.com.cn/
Notice of the First
The first
Extraordinary Friday, Extraordinary General
extraordinary Friday, August 27,
general meeting of 57.15% August 27, Meeting of Shareholders in
general meeting of 2021
shareholders 2021 2021 (2021-035), available at
shareholders in 2021
http://www.cninfo.com.cn/
2. Convening of the interim shareholders' general meetings upon request of the preferred stockholders whose
voting rights are restored
□ Applicable √ Not applicable
V. The Company Has Arrangements for Differences in Voting Rights
□ Applicable √ Not applicable
VI. Governance of Red-Chip Company
□ Applicable √ Not applicable
VII. Directors, Supervisors and Senior Management
1 Basic information
Number of Number of
Number of Reason
shares shares Number of
Starting Termination shares held at Other for
Position increased decreased shares held
Name Post Gender Age date of Date of the beginning changes change
status in the in the at the end of
tenure tenure of the period (share) in
period period the period
(share) shares
(share) (share)
Huang Sunday, Monday,
Director Incumbent Male 64 309,192,225 309,192,225
Qiaoling June 6, August 8,
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2010 2022
Sunday, Monday,
Huang
Director Incumbent Male 62 June 6, August 8, 85,836,643 85,836,643
Qiaolong
2010 2022
Sunday, Monday,
Zhang
Chairman Incumbent Female 48 June 6, August 8, 2,166,642 2,166,642
Xian
2010 2022
Monday, Monday,
Shang Director,
Incumbent Female 47 August 12, August 8, 823,323 823,323
Lingxia President
2013 2022
Director, Wednesday, Monday,
Zhang
Executive Incumbent Male 58 March 20, August 8, 1,646,647 1,646,647
Jiankun
President 2013 2022
Monday,
Huang Friday, April
Director Incumbent Male 50 August 8,
Hongming 26, 2019
2022
Friday, Tuesday,
Independent
Lanke Resigned Male 72 August 21, May 18,
Director
2015 2021
Tuesday, Monday,
Yang Independent
Incumbent Male 52 May 18, August 8,
Yiqing Director
2021 2022
Thursday, Monday,
Liu Independent
Incumbent Male 65 August 8, August 8,
Shuzhe Director
2019 2022
Friday, Monday,
Independent
Yu Qinyi Incumbent Female 42 March 24, August 8,
Director
2017 2022
Sunday, Monday,
Zhu Hualu Supervisor Incumbent Female 67 June 6, August 8,
2010 2022
Monday, Monday,
Staff
Yu Feng Incumbent Female 46 August 12, August 8,
Supervisor
2013 2022
Tuesday, Monday,
Xu Jie Supervisor Incumbent Female 54 August 9, August 8, 360 360
2016 2022
Friday, Monday,
Vice
Zheng Qi Incumbent Male 45 October 26, August 8,
President
2018 2022
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Chief Monday,
Chen Friday, May
Financial Incumbent Male 51 August 8, 433,330 433,330
Shengmin 21, 2010
Officer 2022
Thursday, Monday,
Secretary of
Hou Li Incumbent Female 39 April 22, August 8, 65,000 65,000
the Board
2021 2022
Total -- -- -- -- -- -- 400,164,170 0 0 400,164,170 --
Whether there is any resignation of directors, supervisors and senior management during the reporting period
√ Yes □ No
1. On April 22, 2021, Mr. Chen Shengmin resigned as the Secretary of the Board of Directors due to position adjustment, and after
his resignation, Mr. Chen Shengmin still served as the Chief Financial Officer of the Company.
2. On May 18, 2021, Mr. Lan Ke resigned as an independent director, chairman of the Nomination Committee and member of the
Development Strategy Committee of the 7th Board of Directors when his service period was about to reach six years. After his
resignation, Mr. Lan Ke would no longer hold any position in the Company.
3. On August 26, 2021, to facilitate the better long-term development of the Company, Mr. Huang Qiaoling applied for resigning as
the Chairman, and Ms. Zhang Xian applied for resigning as the President. On the same day, the Company elected Ms. Zhang Xian as
the Chairman and employed Ms. Shang Lingxia as the President. After his resignation, Mr. Huang Qiaoling remains as director of the
Company, chairman of the Development Strategy Committee, member of the Nomination Committee, and general director and
general planner of the Romance Show series and performing arts works of the Company.
Changes in directors, supervisors and senior management
√ Applicable □ Not applicable
Name Position Type Date Reason
Secretary of the
Chen Shengmin Resigned Thursday, April 22, 2021
Board
Secretary of the
Hou Li Appointed Thursday, April 22, 2021 Appointment of Board of Directors
Board
Resigned upon
Independent Resigned when the tenure of service is about to
Lanke expiration of the Tuesday, May 18, 2021
Director expire
tenure of service
Independent
Yang Yiqing Elected Tuesday, May 18, 2021 Election of the General Meeting of Shareholders
Director
Thursday, August 26,
Huang Qiaoling Chairman Resigned
2021
Thursday, August 26,
Zhang Xian Chairman Elected Election of the Board of Directors
2021
Thursday, August 26,
Zhang Xian President Resigned
2021
Thursday, August 26,
Shang Lingxia President Appointed Appointment of Board of Directors
2021
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2. Positions
Professional backgrounds, major work experiences and current main responsibilities in the Company for incumbent directors,
supervisors and senior management of the Company
1. Mr. Huang Qiaoling: 64 years old, senior economist, Chinese nationality, without permanent residency abroad. Mr. Huang
Qiaoling served as Chairman and President of Songcheng Tourism Development Co., Ltd. from February 1999 to December 2000.
Since November 1997, he has served as Chairman of Songcheng Group; From August 2001 to March 2013, he served as Chairman of
Hangzhou World Leisure Expo Park Co., Ltd. He served as Chairman of the Company from December 2000 to August 2021. He has
served as a director of the Company since December 2000.
2. Mr. Huang Qiaolong: 62 years old, college degree, economist, Chinese nationality, without permanent residency abroad. Mr.
Huang Qiaolong served as Vice President and Chairman of Songcheng Holdings from March 2003 to November 2009. He has served
as a director of the Company since December 2000.
3. Ms. Zhang Xian: 48 years old, master degree, a famous person in national publicity and cultural system, with the title of "Four
Excellency" talent. Chinese nationality, without permanent residency abroad. Ms. Zhang Xian used to be an English teacher in
middle school and Deputy Director of Nanhu Revolutionary Memorial Hall. In December 2000, she joined Songcheng Group as
Deputy General Manager of Songcheng Holdings; From February 2002 to July 2003, she served as the General Manager of
Songcheng Tourism Management Branch; From August 2003 to February 2007, she served as Vice President of Songcheng Holdings;
From March 2007 to February 2009, she served as Vice President of the Company; From March 2009 to December 2010, she served
as Executive President of the Company; She has served as the President of the Company from December 2010 to August 2021. She
has served as a director of the Company since June 2010 and Chairman of the Company since August 2021.
4. Ms. Shang Lingxia: 47 years old, bachelor degree, Chinese nationality, without permanent residency abroad. Ms. Shang Lingxia
served as the secretary of Chairman of Songcheng Holdings from March 2001 to July 2003; From August 2003 to September 2005,
she served as General Manager of Songcheng Tourism Management Branch; From October 2005 to April 2008, she served as
General Manager of Hangzhou World Leisure Expo Park Co., Ltd.; From May 2008 to November 2010, she served as General
Manager of First World Hotel; From December 2010 to December 2017, she served as Vice President of the Company; From January
2018 to August 2021, she served as Executive Vice President of the Company. She has served as a director of the Company since
August 2013 and the President of the Company since August 2021.
5. Mr. Zhang Jiankun: 58 years old, college degree, Chinese nationality, without permanent residency abroad. From October 1994 to
April 1999, Mr. Zhang Jiankun served as the director of Songcheng Real Estate Engineering Department; From May 1999 to February
2002, he served as the Engineering Department Manager of Hangzhou Huamei Science and Technology Education Investment Co.,
Ltd.; From March 2002 to February 2004, he served as Deputy General Manager of Songcheng Holding Engineering Construction
Department; From March 2004 to February 2005, he served as Deputy General Manager of Landscape Real Estate; From March
2005 to February 2006, he served as General Manager of Songcheng Holdings Engineering Department; From March 2006 to
February 2009, he served as Vice President of Landscape Real Estate; From March 2009 to February 2012, he served as Vice
President of the Company; From March 2012 to December 2013, he served as Executive Vice President of the Company; He has
been the Executive President of the Company since January 2013 and the director of the Company since February 2013.
6. Mr. Huang Hongming: 50 years old, bachelor degree, senior economist, Chinese nationality, without permanent residency abroad.
Mr. Huang Hongming has been the Deputy General Manager of Songcheng Real Estate Company; Vice Chairman and President of
Hong Kong Jinhui International Investment Group; Since September 2013, he has served as Executive President of Songcheng
Holdings Company, and has served as a director of the Company since April 2019.
7. Mr Yang Yiqing: 52 years old, master degree, Chinese nationality, without permanent residency abroad. He is a senior expert in
Zhejiang Merchants research and professor of Zhejiang Gongshang University. He used to be the head of a subordinate newspaper
of Zhejiang Daily Press Group, assistant to the Chairman and director of strategic development of Songcheng Group, and executive
director of Holley Group. Now he is the Deputy Director of Zhejiang Merchants Institute of Zhejiang Gongshang University, Director
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of Zhejiang Merchants Museum, Executive Director of Zhejiang Merchants Seminar, Secretary General of Academic Research Center
of the General Association of Zhejiang Merchants, member of Organizing Committee of Global Zhejiang Entrepreneur Convention,
executive member of Zhejiang Federation of Industry and Commerce, etc. He has served as an independent director of the
Company since May 2021.
8. Mr. Liu Shuzhe: 65 years old, master degree, senior economist, Chinese nationality, without permanent residency abroad. Mr. Liu
Shuzhe has served as loan officer of Jiande Sub-branch of People's Bank of China, Deputy Head of Xiaoshan Sub-branch of Industrial
and Commercial Bank of China, Chief, Deputy Director and Vice President of Hangzhou Branch of Industrial and Commercial Bank of
China, and has been an independent director of the Company since August 2019.
9. Ms. Yu Qinyi: 42 years old, master degree, Chinese nationality, without permanent residency abroad. From July 2005 to
December 2009, she served as strategic investment consultant of Zhongxin Zhongliang Lianxing Co.,Ltd.; Since January 2010, she has
been a certified public accountant of Zhejiang Herui Certified Public Accountants Co., Ltd., and has been an independent director of
the Company since March 2017.
10. Ms. Zhu Hualu: 67 years old, college degree, Chinese nationality, without permanent residency abroad. From January 1995 to
January 2005, Ms. Zhu Hualu served as Art Department Manager, General Manager Assistant and Executive Deputy General
Manager of Hangzhou World City Songcheng Real Estate Co., Ltd., and Vice President of Hangzhou Songcheng Group Holdings Co.,
Ltd.; She has served as Chairman of the Board of Supervisors of the Company since December 2000.
11. Ms. Yu Feng: 46 years old, bachelor degree, Chinese nationality, without permanent residency abroad. Ms. Yu Feng served as
Deputy Manager of Xiaoshan International Hotel from October 1995 to June 2003; From August 2003 to July 2004, she served as
Deputy Manager of Human Resources Department of Hangzhou Paradise; From August 2004 to November 2006, she served as HR
Manager of Hangzhou Landscape Real Estate Co., Ltd. and HR Manager of Hangzhou World Leisure Expo Park Co., Ltd.; From
December 2006 to April 2011, she served as Director of Human Resources Department and Deputy General Manager of general
manager office of Hangzhou First World Hotel Co., Ltd.; From April 2011 to December 2012, she served as Deputy Director of
Human Resources Department of Hangzhou Songcheng Group Holdings Co., Ltd.; From January 2013 to December 2015, she served
as Director of Hangzhou First World Hotel Co., Ltd. and Deputy General Manager of the administrative office; From January 2016 to
December 2017, she served as General Manager of Hangzhou Songcheng Tourism Development Co., Ltd.; She has served as
President Assistant of the Company since January 2018, and has served as supervisor of the Company since August 2013.
12. Ms. Xu Jie, 54 years old, assistant ideological and political worker, Chinese nationality, without permanent residency abroad.
From June 1999 to February 2002, Ms. Xu Jie served as Deputy Manager of Real Estate Marketing Department of Hangzhou Xianghu
Green Valley Tourism Development Co., Ltd. From March 2002 to June 2002, she served as Deputy Manager of Early Stage
Department of Hangzhou Nandu Songcheng Real Estate Co., Ltd.; From July 2002 to May 2006, she served as Property Manager of
Hangzhou World Leisure Expo Park Co., Ltd.; From June 2006 to December 2008, she served as Property Manager of Hangzhou
Songcheng Landscape Real Estate Co., Ltd.; From February 2009 to December 2010, she served as General Manager Assistant of
Hangzhou Songcheng Group Property Services Co., Ltd.; Since January 2010, she has served as Deputy General Manager of
Hangzhou World Leisure Expo Park Co., Ltd., and since August 2016, she has served as supervisor of the Company.
13. Mr. Zheng Qi: 45 years old, college degree, Chinese nationality, has served as Sales Manager of the mobile phone business unit
of the Market Development Department of China Putian Hangzhou Subsidiary; Manager of Jiangsu and Hubei Regions of Mobile
Communications Division of East China Representative Office of Ericsson China Investment Co., Ltd.; General Manager of Energy
Division of Aerospace Communications Holding Group Co., Ltd.; Deputy general manager of Zhejiang Aerospace Electronic
Information Industry Co., Ltd. Since December 2013, he has served as Executive Director and General Manager of Lijiang Chama
Ancient City Tourism Development Co., Ltd, Chairman and General Manager of Aba Zhou Jiuzhai Romance Tourism Development Co.,
Ltd, Director and General Manager of Guilin Lijiang Romance Performance Development Co., Ltd, Director and General Manager of
Jiuzhaigou Tibetan Mystery Culture Co., Ltd and President Assistant of Songcheng Performance Development Co., Ltd, and has
served as Vice President of the Company since October 2018.
14. Mr. Chen Shengmin: 51 years old, college degree, accountant, Chinese nationality, without permanent residency abroad. From
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March 2002 to March 2004, Mr. Chen Shengmin served as the lead accountant of Finance Department of the Leyuan Tourism; From
April 2004 to February 2005, he served as the Finance Manager of the Leyuan Tourism; From March 2005 to July 2007, he served as
Finance Manager of Landscape Real Estate; From May 2017 to April 2021, he served as the Secretary of the Board of Directors of
the Company. He has served as the Chief Financial Officer of the Company since July 2007.
15. Ms. Hou Li: 39 years old, master degree, Chinese nationality, without permanent residency abroad. She has worked in
Songcheng Performance since May, 2008 and served as the head of Securities Department and assistant to the General Manager of
Songcheng Performance. She began to serve as the Representative of Securities Affairs of Songcheng Performance from January
2013, and served as Deputy General Manager for securities investment of Songcheng Performance from January 2016. She has
served as the Secretary of Board of Directors of the Company since April 2021.
Position held in shareholders entities
√ Applicable □ Not applicable
Remuneration and
Position held in
Starting date of Termination Date allowance received
Name Name of shareholder entity shareholders
tenure of tenure from a shareholder
entities
entity or not?
Hangzhou Songcheng Group Holdings Executive
Huang Qiaoling No
Co., Ltd Director
Huang Hangzhou Songcheng Group Holdings
Supervisor No
Qiaolong Co., Ltd
Huang Hangzhou Songcheng Group Holdings Executive
Yes
Hongming Co., Ltd President
Position held in other entities
√ Applicable □ Not applicable
Renumeration
Position held
Starting date of Termination Date received from
Name Name of other entity in other
tenure of tenure other entity or
entities
not
Certified
Zhejiang Herui Certified Public Accountants
Yu Qinyi Public Yes
Co., Ltd.
Accountant
Xiangpiaopiao Food and Zhejiang Meili High Independent
Yang Yiqing Yes
Technology Co.,Ltd Director
Bank of Hangzhou, CHINT Electrics Co., Ltd.,
Independent
Liu Shuzhe Hangzhou GREENDA Electronic Materials Yes
Director
Co., Ltd.
Deputy
General
Xu Jie Hangzhou World Leisure Expo Park Co., Ltd Yes
Manager and
Supervisor
Incumbent or outgoing directors, supervisors and senior management in the reporting period that have been imposed
administrative penalties by CSRC in the last three years
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□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
The following describes the decision-making program, determination basis and actual payment of remuneration for directors,
supervisors and senior management.
Procedures for making decisions on the remuneration of directors, supervisors and senior management personnel: remuneration of
directors and supervisors is determined by the general meeting of shareholders, while remuneration of senior managers is
determined by Board of Directors. Directors, supervisors and senior management personnel who perform their duties in the
Company receive remuneration according to specific positions.
Basis for determining the remuneration of directors, supervisors and senior management personnel: The remuneration of directors,
supervisors and senior management personnel shall be determined and distributed according to the Working Rules of
Remuneration and Appraisal Committee of the Board of Directors of the Company, and based on the Company's operating
performance, their own performance, work ability, post responsibilities and other assessments.
Remuneration of directors, supervisors and senior management in the reporting period of the Company
Unit: ten thousand RMB
Total Whether to
remuneration receive
Name Post Gender Age Position status from the remuneration
Company before from related
tax parties or not
Huang Qiaoling Director Male 64 Incumbent 64.32 No
Huang Qiaolong Director Male 62 Incumbent Yes
Directors and
Zhang Xian Female 48 Incumbent 63.12 No
Chairman
Director,
Shang Lingxia Female 47 Incumbent 53.43 No
President
Director,
Zhang Jiankun Executive Male 58 Incumbent 57.12 No
President
Huang Hongming Director Male 50 Incumbent Yes
Independent
Yang Yiqing Male 52 Incumbent 3.33 No
Director
Independent
Liu Shuzhe Male 65 Incumbent 5 No
Director
Independent
Yu Qinyi Female 42 Incumbent 5 No
Director
Chairman of the
Zhu Hualu Board of Female 67 Incumbent 5 No
Supervisors
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Yu Feng Staff Supervisor Female 46 Incumbent 35.5 No
Xu Jie Supervisor Female 54 Incumbent Yes
Zheng Qi Vice President Male 45 Incumbent 51 No
Chief Financial
Chen Shengmin Male 51 Incumbent 45.43 No
Officer
Secretary of the
Hou Li Female 39 Incumbent 33.82 No
Board
Total -- -- -- -- 422.07 --
VIII. Performance of Directors' Duties during the Reporting Period
1. The Board of Directors during the reporting period
Conference Session Date of Conference Date of Disclosure Meeting Resolution
Details are provided in the
Notice of Resolution of the 10th
The 10th meeting of the 7th
Thursday, April 22, 2021 Friday, April 23, 2021 Meeting of the 7th Board of
Board of Directors
Directors (2021-014), available
at http://www.cninfo.com.cn/
For details, see Notice of
Resolution of the 11th Meeting
The 11th meeting of the 7th
Monday, June 21, 2021 Monday, June 21, 2021 of the 7th Board of Directors
Board of Directors
(2021-023), available at
http://www.cninfo.com.cn/
For details, see Notice of
Resolution of the 12th Meeting
The 12th meeting of the 7th
Wednesday, August 11, 2021 Thursday, August 12, 2021 of the 7th Board of Directors
Board of Directors
(2021-025), available at
http://www.cninfo.com.cn/
For details, see Notice of
Resolution of the 13th Meeting
The 13th meeting of the 7th
Thursday, August 26, 2021 Thursday, August 26, 2021 of the 7th Board of Directors
Board of Directors
(2021-031), available at
http://www.cninfo.com.cn/
The 14th meeting of the 7th Deliberation of Report of the
Friday, October 22, 2021
Board of Directors Third Quarter of 2021
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2. Attendance of director at the meeting of Board of Directors and general meeting of shareholders
Attendance of director at the meeting of Board of Directors and general meeting of shareholders
Number of Whether
Number of
Number of attendance of Number of absent from Number of
board Number of
on-site board attendance of board attendance of
meetings to absence at
Name of director attendance of meetings by board meetings in shareholders'
attend during board
board means of meetings by person for two general
the reporting meetings
meetings telecommunic entrustees consecutive meetings
period
ations times
Huang Qiaoling 5 5 0 0 0 No 2
Huang Qiaolong 5 5 0 0 0 No 2
Zhang Xian 5 5 0 0 0 No 2
Shang Lingxia 5 5 0 0 0 No 2
Zhang Jiankun 5 5 0 0 0 No 2
Huang Hongming 5 5 0 0 0 No 2
Liu Shuzhe 5 5 0 0 0 No 2
Yang Yiqing 4 4 0 0 0 No 1
Yu Qinyi 5 5 0 0 0 No 2
Lanke 1 1 0 0 0 No 1
3. Objections of directors to related issues of the company
Whether directors raise any objection to related issues of the Company
□ Yes √ No
During the reporting period, directors did not raise objections to the company's related issues.
4. Other information on directors' performance of duties
Whether proposals made by directors were adopted by the Company
√ Yes □ No
Statement on the acceptance or rejection of director's proposals on company issues.
In the report period, all directors of the Company have acted with due diligence and adhered to their duties by carrying out various
tasks according to the regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange as well as the Company
Law and Securities Law, and its Articles of Association, Rules of Procedure of Board of Directors and Working Rules of Independent
Directors, thus conducting in-depth communication and discussion and reaching consensus on all the proposals submitted to the
Board of Directors for review, and resolutely supervising and promoting the implementation of the resolutions of the Board of
Directors to ensure scientific, timely and efficient decision-making and secure the legitimate rights and interests of the Company
and all shareholders.
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XI. Performance of Special Committees under the Board of Directors during the Reporting Period
Important
Specific
Name of Number of Date of Meeting opinions and Performance of
Members objections (if
Committee meetings held Conference subjects suggestions other duties
any)
proposed
With due
diligence, the
Review and
Audit
approve: 2020
Committee has
Final Financial
carried various
Report, 2020
tasks according
Profit
to the
Distribution
Company Law
Plan Proposal,
and its Articles
2020 Audit
of Association
Report
and Rules of
Proposal, 2020
Procedure of
Internal
Board of
Thursday, April Control
Directors,
22, 2021 Self-Evaluation
putting
Report, 2021
forward kinds
Auditor
of opinions
Appointment
Liu Shuzhe, Yu according to
Audit Proposal, 2020
Qinyi, Zhang 3 the actual
Committee Annual
Jiankun position of the
Report’s Full
Company and
Text and
passing all
Summary, and
proposals
2021 First
unanimously
Quarter
after full
Report.
communication
and discussion.
Review and
Thursday, approve: 2021
August 26, Semi-Year
2021 Report’s Full
Text
Review and
Friday, October approve: 2021
22, 2021 Q3 Report’s
Full Text
Nomination Lanke, Huang 1 Thursday, April Review and The
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Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
Committee Qiaoling, Liu 22, 2021 approve: Nomination
Shuzhe Proposal of Committee has
Changing the reviewed for
Secretary of the eligibility of
Board of candidates and
Directors and unanimously
Proposal on adopted the
Expiration of relevant
Independent proposal.
Directors'
Tenure and
Election of
Substitute
Independent
Directors
Review and
approve:
Proposal of
Yang Yiqing, Electing the
Thursday,
Nomination Huang Chairman of
1 August 26,
Committee Qiaoling, Liu the Company
2021
Shuzhe and Proposal of
Employing the
President of
the Company.
The
Development
Strategy
Committee has
made in-depth
research and
analysis on the
Review and
industry and
approve: Work
Development Huang the challenges
Thursday, April Report of the
Strategy Qiaoling, Zhang 1 it may face in
22, 2021 Board of
Committee Xian, Lanke the future, put
Directors in
forward
2020
valuable
opinions for
the Company
to formulate
mid- and
long-term
development
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strategies, and
unanimously
agreed to
relevant
proposals.
X. Work of the Board of Supervisors
Has Board of Supervisors discovered any risk in the company during the supervision in the reporting period
□ Yes √ No
The Board of Supervisors has no objection to the supervision matters during the reporting period.
XI. Personnel of the Company
1. Number, profession composition and educational background of the employees
Number of incumbent employees in the parent company at the
99
end of the reporting period (persons)
Number of incumbent employees of major subsidiaries at the
1,060
end of the reporting period (persons)
Total number of incumbent employees at the end of the
1,159
reporting period (persons)
Number of employees receiving salaries in current period
1,159
(person)
Number of retired employees requiring the parent company and
0
major subsidiaries to bear their costs
Profession composition
Type of profession composition Number of employees for profession composition (person)
Production personnel 317
Salesperson 75
Technical personnel 196
Financial personnel 75
Administrative personnel 65
Executive personnel 190
Service personnel 241
Total 1,159
Educational background
Type of educational background Number of employees (person)
Junior high school and below 61
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High school/technical secondary school 258
Junior college 438
Bachelor 382
Master and above 20
Total 1,159
2. Remuneration policies
The Company has set up the big "H" broadband remuneration system, which not only provides a promotion channel and platform
for management, but also encourages employees to get higher remuneration by improving their skills and professional levels. The
Company has established a national professional title and professional qualification reward system, and monthly and one-time
rewards have been granted for certain professional titles and professional qualification certificates. A key employee reward system
has been established for employees with excellent business skills, and these rewards are granted monthly. Promotion and
downgrading decisions are made through quarterly assessment to fully promote the fairness and competitiveness within the
Company. We evaluate and adjust employees’ salaries based on the Company's operating performance, employees’ appraisal results,
work performance, social and economic developments, price level and regional differences, and advocate a salary confidentiality
system.
Salary is composed of post salary, various subsidies, benefits and bonuses. The salary of management personnel consists of basic
salary, post salary, performance salary and allowance; the salary of employee-level positions consists of basic salary, performance
salary and allowance. Among them, the basic salary and performance salary are verified according to the management level and
performance appraisal scheme. The performance salary of employees is closely associated with business operation in the
Company's slack season and busy season and respective workload, on the basis of the principle of "more pay for more work” The
post salaries for the management personnel at supervisor level or above are determined according to their management level.
3. Training plan
(1) The Company is committed to building a comprehensive talent training system and a scientific talent promotion mechanism to
help the Company achieve its strategic goals and continuously improve the all-round ability of its employees. The cultivation and
promotion of talents are the main components of the annual KPI for each manager of the Company and also an important part in
assessing the responsibility system of annual business objectives of the company. The Company attaches great importance to the
cultivation of talents, and gives notices of praise and material rewards to subsidiaries that have made outstanding contributions to
the cultivation of talents.
(2) The Company has established a sound staff training system and internal trainer training system, and has formulated targeted
training programs such as "Induction Training", "Job Skills Training", "General Skills Training" , "Professional Skills Upgrading
Training", "Professional Skills Upgrading Training", "Management Skills Training", "Internal Trainer Training (TTT)", "Songcheng Star
Training Class ", "Artistic Performance and Management", and intensive training classes within each vertical management system.
The Company has established a vertical management center of the scenic spots, held vertical management meetings regularly, and
carried out various forms of training every year to improve the business and management skills of their employees within the
system. The vertical management center of the scenic spots regularly visits each subordinate company for work inspection every
year. In addition to such inspections, the excellent work experience and cases of each company are also shared within the system.
(3) The Company helps the growth of talents through a combination of internal and external trainings. We have cooperated with
many external professional training institutions to constantly update and strengthen the professional knowledge and practical skills
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of our talents in administration, human resources, finance and taxation, marketing, planning, business and management. The
Company has established “Songcheng Group Online School” to create good study atmosphere for employees in the Company to
participate in online training anytime and anywhere. In addition, the Company has held a mini-lecture contest to encourage
employees to participate in the recording of mini-lectures and the production of courses. The Company has uploaded excellent
courses to the Online School for all employees to learn.
(4) The subsidiaries of the Company have held a variety of themed activities, such as Quarterly Business Skills Competition, Outdoor
Training for Employees, Four Seasons Themed Event for Employees and Internal Trainers Salon. Subject to local COVID-19 policies,
the Company advocates healthy exercise approaches and enriches the development of training and other activities.
(5) The Company registered an official corporate culture publicity account named "Songcheng people" on WeChat, so as to display
various corporate culture activities organized by the Company to employees, and strengthen the publicity of award-winning
employees such as "the Most Beautiful Songcheng people", "Star Employees" and "Excellent Interns", thus creating an excellent
corporate culture atmosphere. Employees can also leave messages on WeChat, and any suggestions and opinions about the
Company can be sent to the chairman's mailbox. In addition, the Company shall strengthen the interaction and communication
between its management and the employees, and implement excellent and feasible suggestions put forward by employees.
4. Labor outsourcing
√ Applicable □ Not applicable
Total hours of labor outsourcing (hours) 1,425,076
Total remuneration paid for labor outsourcing (RMB) 28,501,534.53
XII. Profit Distribution and Conversion of Capital Reserves into Share Capital
Formulation, execution or adjustment of profit distribution policy, especially the cash dividend during the Reporting Period
√ Applicable □ Not applicable
The Company held the 10th meeting of the 7th Board of Directors and 8th meeting of the 7th Board of Supervisors on April 22, 2021
and the 2020 Annual General Meeting of Shareholders on May 18, 2021, reviewing and approving the 2020 Annual Profit
Distribution Plan, under which the Company would, on the basis of the total capital of 2,614,694,040 shares, distribute a cash
dividend of RMB 0.50 (including tax) for every 10 shares to all shareholders at the end of 2020. Total cash dividend of RMB
130,734,702 was distributed. During the reporting period, the Company has completed the equity distribution. The equity
registration date: Tuesday, June 1, 2021 and the date of exclude right (XR) and exclude dividend (DR): Wednesday, June 2, 2021.
Special notes on cash dividend policies
Whether they comply with the requirements of the Company's articles
of incorporation or the resolutions of the General Meeting of Yes
Shareholders:
Whether the dividend standards and proportions are distinct and
Yes
clear:
Whether the relevant decision-making procedures and mechanisms
Yes
are complete:
Whether the independent directors performed their duties and played
Yes
their due role:
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Whether the minority shareholders have the opportunity to fully
express their opinions and appeals, and whether their legitimate rights Yes
and interests have been fully protected:
Whether relevant conditions and procedures are compliant and
transparent when the cash dividend policies are being adjusted or Not applicable.
changed:
The plan for profit distribution and capitalization of capital reserves during the reporting period is consistent with relevant
provisions in the articles of association and dividend management measures of the Company
√ Yes □ No □ Not applicable
The plan for profit distribution and capitalization of capital reserves during the reporting period is in compliance with relevant
provisions in the articles of association of the Company.
Profit distribution and capitalization of capital reserves in the current year
Number of bonus shares per 10 shares (shares) 0
Number of dividend payout per 10 shares (RMB)
0.50
(tax included)
Number of capitalized shares per 10 shares
0
(shares)
Equity base in the distribution preplan (shares) 2,614,694,040
The amount of cash dividends (yuan) (including
130,734,702.00
tax)
The amount of cash dividends (yuan) in other
0.00
ways (such as share repurchase)
The total amount of cash dividends (including in
130,734,702.00
other ways) (yuan)
Distributable profits (RMB) 3,131,881,024.60
The ratio of the total amount of cash dividends
(including in other ways) to the total amount of 100.00%
profit distribution
Latest cash dividend
If the Company's development stage is not easy to define but there are significant capital expenditure arrangements, when the
profits are being distributed, the proportion of the cash dividends in this profit distribution should be at least 20%
Details of the preplans on profit distribution or capitalization of capital reserves
Audited by BDO China Shu Lun Pan CPAs (special general partnership), the net profit attributable to the shareholders of the listed
company in 2021 was RMB 315,130,800. Based on the total share capital of 2,614,694,040 shares as at Friday, December 31, 2021,
the Company distributed RMB 0.50 (tax included) of dividend for every 10 shares to all the shareholders, with a total cash
dividend of RMB 130,734,702.
The profits of the Company in the Reporting Period and the parent company's profits distributable to shareholders are positive, but
the Company did not put forward a proposed plan for cash dividend distribution.
□ Applicable √ Not applicable
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XIII. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□ Applicable √ Not applicable
During the reporting period, the Company has no equity incentive plan, employee stock ownership plan or other employee
incentive measures and their implementation.
XIV. Establishment and implementation of the Company’s Internal Control System During the
Reporting Period
1. Establishment and implementation of internal controls
In the report period, the Company has updated and improved its internal control system timely in accordance with the Basic Norms
of Internal Control of Enterprises and its guidelines. It has established a simple, suitable and effective one with scientific design. The
Audit Committee and the internal audit department have jointly formed the organization for risk management and internal control
to supervise and evaluate the internal control of the Company. Through the operation, analysis and assessment related to the
internal control system, the Company has effectively prevented risks in operation and management, thus promoting the
achievement of internal control objectives.
2. Details of material weakness in internal control found during the reporting period
□ Yes √ No
XV. Management and controls of subsidiaries during the Reporting Period
Problems arising
Integration
Company Name Integration plan from the Actions taken Solving progress Follow-up plan
progress
integration
N/A N/A N/A N/A N/A N/A N/A
XVI. Self-assessment Report on Internal Control or Audit Report on Internal Control
1. Internal control self-evaluation report
Date of full-text disclosure for internal
Friday, April 22, 2022
control assessment report
Full-text disclosure index for internal For details, see 2021 Annual Internal Control Self-Evaluation Report published by the
control assessment report company on http://www.cninfo.com.cn on Friday, April 22, 2022
Percentage of total asset from units
included in the assessment out of the total
77.48%
asset from the company's consolidated
financial statements
The proportion of operating income of 89.81%
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parties included in the assessment to total
operating income from the Company's
consolidated financial statements
Defect identification criteria
Category Financial Report Non-financial reports
The Company is deemed to have a
material deficiency in internal control
not related to financial reporting if the
A material deficiency in internal control over
following circumstances occur:
financial reporting is considered to exist if:
(1) The Company's operating activities
(1) The Company's control environment is
seriously violate national laws and
ineffective;
regulations;
(2) Fraud by any of the directors, supervisors
(2) Unscientific decision-making
and senior management;
procedures, resulting in major mistake in
(3) The Certified Public Accountant finds
decision-making, which causes
that there is a material misstatement in the
significant property losses to the
current financial report, however, the
Company;
Company's internal control fails to detect
(3) Significant loss of key management
such misstatement in the course of
personnel or technical personnel;
operation;
(4) Frequent occurrence of negative
Qualitative standards (4) Ineffective supervision of internal control
news or reports, which aroused great
by the Company's Audit Committee and
concern of regulatory authorities and
internal audit department.
cannot be eliminated in a long period of
Significant deficiency: A deficiency that,
time.
alone or in combination with other
Significant deficiency: A deficiency that,
deficiencies, is less serious than a material
alone or in combination with other
deficiency but may still cause the Company
deficiencies, is less serious than a
to deviate from its control objectives.
material deficiency but may still cause
General deficiency: Other internal control
the Company to deviate from its control
deficiencies that do not constitute a
objectives.
material deficiency or a significant
General deficiency: Other internal
deficiency.
control deficiencies that do not
constitute a material deficiency or a
significant deficiency.
Property losses caused by deficiencies,
Potential misstatement of total profits,
material deficiency: property losses
material deficiency: misstatement ≥ 5% of
caused by deficiencies ≥ 5% of total
total profits; significant deficiency: 2% of
Quantitative standards profits; significant deficiency: 2% of total
total profits ≤ misstatement < 5% of total
profits ≤ property losses caused by
profits; general deficiency: misstatement <
deficiencies < 5% of total profits; general
2% of total profits
deficiency: property losses caused by
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deficiencies < 2% of total profits
Number of material weakness in financial
0
reports
Number of material weakness in
0
non-financial reports
Number of significant deficiency in
0
financial reports
Number of significant deficiency in
0
non-financial report
2. Internal Control Audit Report or Assurance Report
Internal Control Assurance Report
Deliberations Paragraph in the Internal Control Assurance Report
In our opinion, Songcheng Performance has maintained effective internal control of financial reporting in all major aspects in
accordance with the relevant provisions of the Basic Norms of Internal Control of Enterprises as of December 31, 2021.
Disclosure in the Internal Control
Disclosure
Assurance Report
Date of full-text disclosure for the
Friday, April 22, 2022
internal control assurance report
For details, please refer to the Internal Control Assurance Report of Songcheng Performance
Full-text disclosure index for the
Development Co., Ltd published by the company on http://www.cninfo.com.cn on Friday,
internal control assurance report
April 22, 2022
Opinion type in the internal control
Standard unqualified opinion
assurance report
Whether there are material
deficiencies in the non-financial No
reports
Whether the accounting firm has issued an internal control assurance report with modified opinions
□ Yes √ No
Whether the opinions in the internal control assurance report issued by the accounting firm are consistent with those in the
self-evaluation report issued by the board of directors
√ Yes □ No
XVII. Rectification of Problems Identified through Self-examination as Part of the Special
Campaign to Improve the Governance of Listed Companies
Not applicable.
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Section V Environment and Social Responsibility
I. Major Environmental Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the environmental
protection department
□ Yes √ No
Administrative penalties received for environmental issues during the reporting period
Impact on the
Name of the
Description of production and Rectifying measures
Company or Reason for penalties Result of penalties
violation operation of the of the Company
subsidiary
Company
N/A N/A N/A N/A N/A N/A
Refer to other environmental information disclosed by key emitters
N/A
Measures taken to reduce carbon emissions during the reporting period and their effects
□ Applicable √ Not applicable
Reason for the failure to disclose other environmental information
Not applicable.
II. Social Responsibilities
For details, see 2021 Annual Social Responsibility Report issued by the Company at http://www.cninfo.com.cn/.
III. Consolidate and Carry Forward the Achievements of Poverty Alleviation and Rural Revitalization
Not applicable.
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Section VI Significant Events
I. Performance of commitments
1. Commitments made by the Company's controlling shareholders, shareholders, related parties, purchasers
and purchasing companies and have been fulfilled during the reporting period and those that have not been
fulfilled by the end of the reporting period
√ Applicable □ Not applicable
Source of Commitment Type of Commitment Commitment Performance of
Content of commitment
commitment party commitment time period commitments
Commitments
made in the
report of
acquisition or in
the report of
equity changes
Commitments
made during
asset
restructuring
(I) Commitments to avoidance of
competitive business and
related-party transactions
Songcheng Holdings as the
controlling shareholder and
Huang Qiaoling as the actual
Songcheng
controller of the Company
Group, Nan’ao
(collective referred to as In the report
Investment,
Commitments “Commitment Parties”) have period, the
Huang Qiaoling, Restricted Thursday,
made at the made the following parties above
Dai Yinqin, Sun IPO sale December 9,
time of IPO or commitments: The Commitment have fulfilled
Fangfang, Huang commitment 2010
re-financing Parties and their controlled their
Qiaolong, Huang
companies do not, and will not in commitments.
Qiaoyan and Liu
the future, directly or indirectly,
Ping
in any way, engage in or
cooperate with others to engage
in business that is the same as or
similar to, or in any way
competes with that of Song
Cheng Shares and its
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subsidiaries; shall make every
effort to prevent the immediate
family members and affiliates of
the Commitment Parties from
engaging themselves in business
that is the same as or similar to,
or in any way competes with that
of Song Cheng Shares and its
subsidiaries; do not, and will not,
invest in any company, enterprise
or other institution or
organization which is engaged in
business that is the same as or
similar to, or in any way
competes with that of Song
Cheng Shares and its
subsidiaries; do not, and will not,
provide proprietary technology
or trade secrets (such as sales
channels and customer
information) to any company,
enterprise or other institution,
organization or individual which
has other business that is the
same as or similar to, or in any
way competes with that of Song
Cheng Shares and its
subsidiaries; will not use the
word "Songcheng" in the name
of any enterprise which is
controlled, jointly controlled or
significantly influenced by the
Commitment Parties in any way
including but not limited to
equity purchase, capital increase
or new establishment, except for
Songcheng Shares or the
enterprises controlled by
Songcheng Shares, and will not
use tourism-related expressions
in the enterprise's name,
business license and articles of
association; and will no longer
use the "Songcheng" trade name
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during the development and
publicity of any business newly
developed, operated or jointly
operated or participated in by
the Commitment Parties and
other enterprises that they
control, jointly control or
significantly influence, including
but not limited to real estate,
stores and hotels, excluding
issuer’s business, except for
Songcheng Shares or the
enterprises controlled by
Songcheng Shares. (II)
Commitments to lock-up shares
Huang Qiaoling as the actual
controller of the Company and
her natural-person affiliates Dai
Yinqin, Sun Fangfang, Huang
Qiaolong, Huang Qiaoyan and Liu
Ping, and Songcheng Holdings as
the controlling shareholder and
Nan’ao Real Estate as a
shareholder commit that they
will not, within 36 months after
the public offering date of
Songcheng Shares, transfer, or
entrust others to manage the
shares issued before the public
offering of Songcheng Shares
directly or indirectly held by
them, nor will Songcheng Share
buy back the shares issued
before the public offering of
Songcheng Shares. Huang
Qiaoling as the Board Chairman
and shareholder of the Company
and her natural-person affiliates
Dai Yinqin, Sun Fangfang, Huang
Qiaolong, Huang Qiaoyan and Liu
Ping commit that they will not, as
long as Huang Qiaoling and
Huang Qiaolong are serving as
directors, supervisors or senior
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managers of the Company,
transfer shares in a year
exceeding 25% of the total shares
they respectively held, directly or
indirectly, in the Company, and
that they will not, within half a
year after Huang Qiaoling leaves
the Company, transfer any share
of the Company directly or
indirectly held by them. Zhang
Huipin as the director directly
holding the shares of the
Company and Ji Dingtian as the
director indirectly holding the
shares of the Company commit
that they will not, as long as they
are serving as directors,
supervisors or senior managers
of the Company, transfer shares
either of them directly or
indirectly held in the Company,
and that they will not, within half
a year after leaving the Company,
transfer any share of the
Company directly or indirectly
held by themselves. (III)
Commitment to share transfer
Huang Qiaoling as the Board
Chairman, President and
shareholder of the Company and
her natural-person affiliates Dai
Yinqin, Sun Fangfang, Huang
Qiaolong, Huang Qiaoyan and Liu
Ping commit that they will not, as
long as Huang Qiaoling is serving
as a director, supervisor or senior
manager of the Company,
transfer shares in a year
exceeding 25% of the total shares
they respectively held, directly or
indirectly, in the Company, and
that they will not, within half a
year after Huang Qiaoling leaves
the Company, transfer any share
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of the Company directly or
indirectly held by themselves. In
the report period, there is no
violation of the commitments.
(IV) Provisions for and
commitments on regulated
operation Huang Qiaoling as the
actual controller and Songcheng
Holdings as the controlling
shareholder of the Company
commit that the enterprises they
control or significantly influence
will strictly comply with the
Company Law, Securities Law,
Notice Concerning Some Issues
on Regulating the Funds between
Listed Companies and Associated
Parties and Listed Companies'
Provision of Guaranty to Other
Parties (ZJF [2003] No. 56),
Notice on Issues Related to
Providing Guarantee for Others
by Listed Companies (ZJGSZ
[2000] No. 61) and other laws
and regulations to ensure that
the Company and the enterprises
controlled by the Company will
no longer occupy Songcheng
Shares’ funds or accept any
guarantee from Songcheng
Shares, so as to prevent the
recurrence of violations. If any
violation of this commitment
damages the benefits of
Songcheng Shares or causes
losses to Songcheng Shares, the
commitment party/the Company
will take full liability for the
damages or losses. The
commitment party/the Company
will not change or withdraw from
this commitment after
Songcheng Shares’ IPO. (V)
Commitment on asset
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consolidation between
Songcheng Shares and other
enterprises associated to the
controlling shareholder and
actual controller Songcheng
Holdings as the actual controller
and controlling shareholder of
the Company commits that
Songcheng Shares is the only
company actually controlled by
the commitment party/the
Company that carries out theme
parks and tourism culture
performing arts business. If
Songcheng Shares completes its
IPO and its shares are listed on
Growth Enterprise Market Board,
as long as its shares are listed on
Growth Enterprise Market Board,
the commitment party/the
Company will not contribute the
assets and business that are not
related to the operation of
Songcheng Shares, such as hotel
and catering and real estate
property, which are actually
controlled by the Company, into
Songcheng Shares directly or
indirectly by any means, such as
asset restructuring or joint
venture.
Equity incentives
commitment
Other
commitments
made by the
Company to
small and
medium
shareholders
Whether the
commitments Yes
are fulfilled on
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schedule
2. If there is a profit forecast for the Company's assets or projects, and the reporting period is still within the
profit forecast period, the Company shall make an explanation on the fulfillment and its reasons
□ Applicable √ Not applicable
II. Occupation of the Capital of the Listed Company by Controlling Shareholders and Their
Related Parties for Non-Operational Purposes
□ Applicable √ Not applicable
During the reporting period, there is no non-operational capital occupation over the list Company by controlling shareholders and
their related parties.
III. Illegal Guarantees
□ Applicable √ Not applicable
In the report period, there is no illegal guarantee provided by the Company.
IV. Explanations Made by the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V. Explanations Made by the Board of Directors, the Board of Supervisors and Independent
Directors (If Any) on the "Non-standard Audit Report" from the Accounting Firm during the
Reporting Period
□ Applicable √ Not applicable
VI. Explanations Made by the Board of Directors on the Changes to the Accounting Polices and
Accounting Estimates or the Corrections of Significant Accounting Error during the Reporting
Period
□ Applicable √ Not applicable
VII. Changes in the Scope of Consolidated Financial Statements Compared with the Financial
Report of Previous Year
√ Applicable □ Not applicable
There are 1 newly merged units in this period, the reasons are:
New Merged Units This Year Investment Ratio Notes
Global Bacchus Limited 100.00% New in 2021
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Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
In the current period, the number of merged units was reduced by 1 due to:
Reduced Merged Units This Year Investment Ratio Notes
Zhejiang Songcheng Longquan Mountain Tourism 100.00% Equity sale in 2021
Development Co., Ltd
VIII. Appointment and Dismissal of Accounting Firms
Currently appointed accounting firms
Names of domestic accounting firms BDO China Shu Lun Pan CPAs (special general partnership)
Remuneration to domestic accounting firms (Unit: ten thousand
138
yuan)
Years of continuous audit service of domestic accounting firms 21 years
Names of Certified Public Accountants from domestic accounting
Ni Yilin, Wang Bin
firms
The continuous period of audit service for certified public
3 years and 1 year
accountants in domestic accounting firms
Whether to employ another accounting firm
□ Yes √ No
Appointment of accounting firms, financial advisers or sponsors for internal control auditing
□ Applicable √ Not applicable
IX. Delisting after Disclosure of Annual Report
□ Applicable √ Not applicable
X. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.
XI. Major Lawsuits and Arbitrations
□ Applicable √ Not applicable
There is no major lawsuit or arbitration in this year.
XII. Penalties and Rectification
□ Applicable √ Not applicable
No such case as penalty and rectification during the reporting period.
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XIII. Integrity of the Company, Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
The Company, its controlling shareholder and actual controller are in good standing during the reporting period.
XIV. Significant Affiliated Transactions
1. Related transactions relevant to daily operations
√ Applicable □ Not applicable
Amount of Proportion Whether
Relation Principle for Approved Available
Content of the Price of related in the the Settlement of
Related with Type of related pricing of transaction market price Date of Disclosure
related - party related transaction amount of approved related
transaction related transaction related limit (RMB Ten for similar Disclosure Index
transaction transaction (RMB Ten similar limit is transaction
party transaction Thousand) transactions
Thousand) transactions exceeded
Hangzhou On-line
Affiliated Recurring Refer to the
First World procurement Cash and Bank Friday, April 23, http://www.cn
legal related market 440.48 440.48 1.48% 38,223.85 No 440.48
Hotel Co., of hotel Balances 2021 info.com.cn
person transactions price
Ltd. products
Hangzhou On-line
Affiliated Recurring Refer to the
Songcheng procurement Cash and Bank Friday, April 23, http://www.cn
legal related market 804.87 804.87 2.70% 38,223.85 No 804.87
Industry of hotel Balances 2021 info.com.cn
person transactions price
Co., Ltd products
Beijing
Beite Delegation of
Contingent Refer to the
Shengdi the scenic Cash and Bank
Affiliate related market 1,563.12 1,563.12 1.95% 1,563.12 No 1,563.12
Technology spot-related Balances
transactions price
Developme projects
nt Co., Ltd.
Hangzhou
Affiliated Recurring Refer to the
First World Cash and Bank Friday, April 23, http://www.cn
legal related Ticket sales market 240.68 240.68 0.65% 38,223.85 No 240.68
Hotel Co., Balances 2021 info.com.cn
person transactions price
Ltd.
Hangzhou
Affiliated Recurring Refer to the
Songcheng Cash and Bank Friday, April 23, http://www.cn
legal related Ticket sales market 318.34 318.34 0.86% 38,223.85 No 318.34
Industry Balances 2021 info.com.cn
person transactions price
Co., Ltd
Hangzhou
Affiliated Recurring Refer to the
Songcheng Leasing of the Cash and Bank Friday, January http://www.cn
legal related market 402.59 402.59 8.27% 402.59 No 402.59
Industry office space Balances 17, 2020 info.com.cn
person transactions price
Co., Ltd
Hangzhou Affiliated Recurring Leasing of the Refer to the 996.01 996.01 20.46% 996.01 No Cash and Bank 996.01 Friday, January http://www.cn
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Songcheng legal related parking lot market Balances 17, 2020 info.com.cn
Industry person transactions price
Co., Ltd
Hangzhou Leasing of the
Affiliated Recurring Refer to the
Songcheng operating Cash and Bank Thursday, March http://www.cn
legal related market 239.18 239.18 4.91% 239.18 No 239.18
Industry room in the Balances 28, 2019 info.com.cn
person transactions price
Co., Ltd scenic spot
Hangzhou
Affiliated Recurring Refer to the
Songcheng Leasing of the Cash and Bank Thursday, March http://www.cn
legal related market 256.10 256.1 5.26% 256.1 No 256.10
Industry dormitory Balances 28, 2019 info.com.cn
person transactions price
Co., Ltd
Hangzhou
Affiliated Recurring Refer to the
Songcheng Leasing of the Cash and Bank Thursday, March http://www.cn
legal related market 474.66 474.66 9.75% 474.66 No 474.66
Industry parking lot Balances 28, 2019 info.com.cn
person transactions price
Co., Ltd
Hangzhou Leasing of the
Affiliated Recurring Refer to the
Songcheng operating Cash and Bank Thursday, March http://www.cn
legal related market 278.28 278.28 5.72% 278.28 No 278.28
Industry room in the Balances 28, 2019 info.com.cn
person transactions price
Co., Ltd scenic spot
Hangzhou Leasing of the
Affiliated Recurring Refer to the
First World operating Cash and Bank Friday, April 23, http://www.cn
legal related market 216.00 216 4.44% 216 No 216.00
Hotel Co., room in the Balances 2021 info.com.cn
person transactions price
Ltd. scenic spot
Hangzhou
World Affiliated Recurring Refer to the
Leasing of the Cash and Bank Thursday, March http://www.cn
Leisure legal related market 690.91 690.91 14.19% 690.91 No 690.91
parking lot Balances 28, 2019 info.com.cn
Expo Park person transactions price
Co., Ltd
Hangzhou
World Affiliated Recurring Refer to the
Leasing of the Cash and Bank Thursday, March http://www.cn
Leisure legal related market 108.36 108.36 2.23% 108.36 No 108.36
dormitory Balances 28, 2019 info.com.cn
Expo Park person transactions price
Co., Ltd
Total -- -- 7,029.58 -- 158,120.61 -- -- -- -- --
Details of major sales returned N/A
Actual performance during the reporting period where
the total amount of daily related party transactions in N/A
the current period is estimated by category (if any)
Reasons for the big difference between the transaction
Not applicable.
price and the reference market price, if applicable
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2. Related transactions in acquisition or sale of assets or equities
□ Applicable √ Not applicable
No such case as related-party transactions arising from the acquisition or sale of assets or equity.
3. Significant related-party transactions arising from joint investments on external parties
√ Applicable □ Not applicable
Registered Total assets of Net asset of the Net profit of the
Name of the Main business
Relation with capital of the the invested invested invested
Co-investor invested of the invested
related party invested enterprise (RMB enterprise (RMB enterprise (RMB
enterprise enterprise
enterprise Ten Thousand) Ten Thousand) Ten Thousand)
Equity
Ningno
investment,
Songcheng
Ningbo project
Performance
Songcheng investment,
Live
Qixian investment RMB 183
Affiliate Entertainmen 13,330.49 13,330.42 380.13
Investment management, million
t Investment
Management enterprise
Partnership
Co., Ltd. management
(limited
and investment
partnership)
consultation
Project
Hangzhou
investment,
Songcheng Ningno
investment
Group Songcheng
management,
Holdings Co., Internet
Controlling enterprise
Ltd, Ningbo Entertainmen RMB 100
shareholder, management 1,065.49 1,056.49 30,049.41
Qixian t Investment million
affiliate consultation,
Internet Partnership
investment
Investment (limited
consultation
Management partnership)
and equity
Co., Ltd.
investment
Ningno Entertainment
Shenzhen Meishan project
CGS Fund Bonded Port investment,
Management Area Qixian industrial
Affiliated
Co., Ltd., Innovation investment, RMB 155
legal person, 7,332.82 7,285.82 -45.81
Qixian Equity Entertainmen project million
affiliate
Investment t Investment investment,
Management Partnership investment
Co., Ltd. (limited management,
partnership) enterprise
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management
consultation
and investment
consultation
Progress of major projects
under construction of the N/A
invested enterprise, if any
4. Related-party creditor's rights and debts
□ Applicable √ Not applicable
No such case as related credits and debts during the reporting period.
5. Business with affiliated financial company
□ Applicable √ Not applicable
There was no deposit, loan, credit granting or other financial business between the Company and the affiliated financial company
and its related parties.
6. Business between the affiliated parties and the financial company controlled by the Company
□ Applicable √ Not applicable
There was no deposit, loan, credit granting or other financial business between the affiliated parties and the financial company
controlled by the Company
7. Other major related transactions
□ Applicable √ Not applicable
No other significant affiliated transactions occurred during the reporting period.
XV. Significant Contracts and Their Executions
1. Matters on trusteeship, contracting, and leasehold
(1) Matters on trusteeship
□ Applicable √ Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No such case as contracting during the reporting period.
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(3) Leasing
□ Applicable √ Not applicable
No significant leasing occurred during the reporting period.
2. Significant guarantees
□ Applicable √ Not applicable
No significant guarantee occurred during the reporting period.
3. Entrusting Others to Manage Cash Assets
(1) Entrusted Financing
□ Applicable √ Not applicable
No such case as entrusted financing during the reporting period.
(2) Entrusted Loans
□ Applicable √ Not applicable
No such case as entrusted loan during the reporting period.
4. Other Significant Contracts
□ Applicable √ Not applicable
No such case as other significant contract during the reporting period.
XVI. Explanations of Other Significant Matters
□ Applicable √ Not applicable
There were no other significant matters for explanation during the reporting period.
XVII. Significant Matters Occurred to Subsidiaries of the Company
□ Applicable √ Not applicable
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Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase or decrease in the change (+, -) After the change
Shares
Shares
Bonus converted
Number Percentage newly Others Subtotal Number Percentage
shares from capital
issued
reserves
I. Shares with
limited sales 405,984,860 15.53% 0 0 0 -78,977,686 -78,977,686 327,007,174 12.51%
condition
1. State-owned
0 0.00% 0 0 0 0 0 0 0.00%
shares
2. Shares held
by state-owned 0 0.00% 0 0 0 0 0 0 0.00%
legal persons
3. Other
405,984,860 15.53% 0 0 0 -78,977,686 -78,977,686 327,007,174 12.51%
domestic shares
Including:
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
domestic legal
persons
Shares
held by domestic 405,984,860 15.53% 0 0 0 -78,977,686 -78,977,686 327,007,174 12.51%
natural persons
4. Foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
Including:
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
overseas legal
persons
Shares
held by foreign 0 0.00% 0 0 0 0 0 0 0.00%
natural persons
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II. Shares without
2,208,709,180 84.47% 0 0 0 78,977,686 78,977,686 2,287,686,866 87.49%
restrictions
1. RMB ordinary
2,208,709,180 84.47% 0 0 0 78,977,686 78,977,686 2,287,686,866 87.49%
shares
2. Foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares list in China
3. Foreign
shares listed in 0 0.00% 0 0 0 0 0 0 0.00%
overseas
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total 2,614,694,040 100.00% 0 0 0 0 0 2,614,694,040 100.00%
Reasons for changes in shares
√ Applicable □ Not applicable
The changes in restricted shares arise from the changes in the lock-up shares held by senior management.
Approval for changes in shares
□ Applicable √ Not applicable
Transfer for changes in shares
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share ("EPS"), diluted EPS, net assets per share, attributable to common
shareholders of the Company, and other financial indexes over the last year and last period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted stocks
√ Applicable □ Not applicable
Unit: share
Number Of Shares Number of Number of
Number of shares
With Limited Sales increased shares unlocked shares Proposed date
Name of with limited sales Reasons for
Condition At The with limited sales with limited sales of lifting sales
Shareholder condition at the limited sales
Beginning Of The condition in condition in restriction
end of the period
Period current period current period
In respect of
the shares
locked by
Shares locked
Huang Qiaoling 295,044,169 0 63,150,000 231,894,169 executives,
by executives
75% of the
total shares will
be locked at
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the beginning
of each year
Huang Shares locked
74,127,481 0 9,749,999 64,377,482 Ibid
Qiaolong by executives
Shares locked
Liu Ping 33,010,756 0 6,077,688 26,933,068 Ibid
by executives
Shares locked
Zhang Xian 1,624,981 0 0 1,624,981 Ibid
by executives
Shares locked
Zhang Jiankun 1,234,985 0 0 1,234,985 Ibid
by executives
Shares locked
Shang Lingxia 617,491 1 0 617,492 Ibid
by executives
Shares locked
Chen Shengmin 324,997 0 0 324,997 Ibid
by executives
Total 405,984,860 1 78,977,687 327,007,174 -- --
II. Issuance and listing of securities
1. Securities (excluding preferred share) issued in reporting period
□ Applicable √ Not applicable
2. Explanation on changes in total number of the Company's shares & the structure of shareholders and the
structure of assets and liabilities
□ Applicable √ Not applicable
3. Existing shares held by internal staff of the Company
□ Applicable √ Not applicable
III. Particulars about the shareholders and actual controller
1. Total number of shareholders and their shareholdings
Unit: share
Total Total number of Total number of Total number
Total number of
Number Of common shareholders preferred of preferred
shareholders
Common at the end of previous shareholders (if any) shareholders
73,532 72,173 0 0 holding special 0
Shareholders month before the (refer to Note 9) (if any) (refer
voting shares (if
At The End disclosure date of the whose voting rights to Note 9)
any)
Of The annual report have been with resumed
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Reporting recovered at the voting rights
Period end of the reporting at the end of
period previous
month before
the disclosure
date of the
annual report
Shareholding list of shareholders with over 5% shares or top ten shareholders
Number of Pledge, mark or freeze
Number of Number of
shares held Changes in status
shares held shares held
Name of Nature Of Shareholding at the end the
with limited without State
Shareholder Shareholder Percentage of the reporting
sales limited sales Of Number
reporting period
conditions condition Shares
period
Hangzhou
Domestic
Songcheng
Non-state-owned 29.48% 770,835,254 0 0 770,835,254 Pledge 99,000,000
Group Holdings
Legal Person
Co., Ltd
Domestic Natural
Huang Qiaoling 11.83% 309,192,225 0 231,894,169 77,298,056
Person
Hong Kong
Securities Overseas Legal
7.29% 190,578,590 92,729,120 0 190,578,590
Clearing Person
Company Ltd.
Domestic Natural
Huang Qiaolong 3.28% 85,836,643 0 64,377,482 21,459,161
Person
Puxin
Investment Overseas Legal
2.18% 57,094,076 26,677,827 0 57,094,076
Company - Person
Customer Fund
Domestic Natural
Liu Ping 1.37% 35,910,758 0 26,933,068 8,977,690
Person
China
Construction
Bank
Corporation — Others 1.17% 30,569,925 30,569,925 0 30,569,925
Zhong Ou China
New Blue Chip
Alloc Hyb A
Domestic Natural
Liu Yan 1.03% 26,915,305 -17,637,984 0 26,915,305
Person
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Industrial Bank
Co., Ltd. —
Zhong Ou China Others 0.93% 24,188,978 24,188,978 0 24,188,978
New Trend Stock
Fund (LOF)
China
Construction
Bank
Corporation - Others 0.83% 21,794,653 21,794,653 0 21,794,653
Zhong Ou
Pension Industry
Hybrid Fund
Strategic investors or general legal
entities who become the top 10
shareholders as a result of the Not applicable.
placement of new shares (if any)
(see Note 4)
Description of the association Hangzhou Songcheng Group Holdings Co., Ltd and Huang Qiaoling are the controlling
relationship or concerted action of shareholder and actual controller of the Company, respectively; Huang Qiaolong and Liu Ping
above-mentioned shareholders are the related natural persons of the actual controller Mr. Huang Qiaoling.
Explanation on
entrustment/acceptance and
Not applicable.
waiver of voting rights by the
aforesaid shareholders
Special notes on the existing
special account of securities
Not applicable.
repurchasing in the top 10
shareholders (if any) (see Note 10)
Shareholding list of top ten shareholders without limited sales condition
Number of Type of shares
shares held
without
limited sales
Name of Shareholder Type of
condition at Number
shares
the end of
the reporting
period
RMB
Hangzhou Songcheng Group Holdings Co., Ltd 770,835,254 common 770,835,254
stock
Hong Kong Securities Clearing Company Ltd. 190,578,590 RMB 190,578,590
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common
stock
RMB
Huang Qiaoling 77,298,056 common 77,298,056
stock
RMB
Puxin Investment Company - Customer Fund 57,094,076 common 57,094,076
stock
RMB
China Construction Bank Corporation — Zhong Ou China New Blue Chip Alloc Hyb A 30,569,925 common 30,569,925
stock
RMB
Liu Yan 26,915,305 common 26,915,305
stock
RMB
Industrial Bank Co., Ltd. — Zhong Ou China New Trend Stock Fund (LOF) 24,188,978 common 24,188,978
stock
RMB
China Construction Bank Corporation - Zhong Ou Pension Industry Hybrid Fund 21,794,653 common 21,794,653
stock
RMB
Huang Qiaolong 21,459,161 common 21,459,161
stock
RMB
China Construction Bank Corporation — Zhong Ou Growth Enterprise Market 2 Year
18,998,214 common 18,998,214
Regular Open Mixed Fund
stock
Hangzhou Songcheng Group Holdings
Co., Ltd and Huang Qiaoling are the
Explanation on associated relationship or persons acting in concert among top ten controlling shareholder and the actual
shareholders without limited shares, and between top ten shareholders without limited controller of the Company, respectively;
shares and top ten shareholders Huang Qiaolong and Liu Ping are the
related natural persons of the actual
controller Mr. Huang Qiaoling.
Explanation on shareholders’ participation in the financing and loan business of
Not applicable.
securities trades (if any) (see Note 5)
Whether the Company has differential arrangement of voting power
□ Applicable √ Not applicable
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree on any
repurchase transaction in the reporting period
□ Yes √ No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed on
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repurchase in the reporting period.
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2. Particulars about the controlling shareholder
Nature of the controlling shareholder: Natural person-owned
Type of the controlling shareholder: legal person
Legal
Name of the controlling Date of
representative/unit Organization Code Main businesses
shareholder establishment
head
Hangzhou Songcheng Group Friday, November
Wang Pengyu 91330109255712632Y Industrial investment
Holdings Co., Ltd 21, 1997
Change of the controlling shareholders in the reporting period
□ Applicable √ Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
3. The actual controller of the Company and persons acting in concert
Nature of the actual controller: Domestic natural person
Type of the actual controller: Natural person
Whether he/she has obtained
Relationship with the actual
Name of the actual controller Nationality the right of residence in
controller
another country or region
Huang Qiaoling Himself China No
Mr. Huang Qiaoling served as the chairman and president of Songcheng Tourism Development
Co., Ltd from February 1999 to December 2000. He served as the chairman of Hangzhou
Songcheng Group Holdings Co., Ltd since November 1997. He served as the chairman of
Main occupation and title
Hangzhou World Leisure Expo Park Co., Ltd from August 2001 to March 2013. He served as the
chairman of the Company from December 2000 to August 2021. He has served as a director of
the Company since December 2000.
Information about other listed
companies at home and abroad N/A
controlled in the last ten years
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
No change has happened to the actual controller in the reporting period
Block Diagram for Property Right and Control Relationship between the Company and Actual Controllers
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The actual controller controls the Company via trust or other ways of asset management
□ Applicable √ Not applicable
4. All the pledged shares account for 80% of the total shares held by the controlling shareholder or largest
shareholder of the Company and their persons acting in concert
□ Applicable √ Not applicable
5. Particulars about other corporate shareholders with shareholding proportion over 10%
□ Applicable √ Not applicable
6. Particulars on share reduction restricted for controlling shareholders, actual controller, restructuring party
or other commitment entities
□ Applicable √ Not applicable
IV. Implementation of Share Repurchase in the Reporting Period
The progress on share repurchases
□ Applicable √ Not applicable
The progress on reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable √ Not applicable
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Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
There are no preferred shares in the reporting period.
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Section IX Information of Bonds
□ Applicable √ Not applicable
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Section X Financial Report
I. Audit Reports
Audit opinion type Standard Unqualified Opinion
Signature Date of audit report Friday, April 22, 2022
Name of audit institution BDO China Shu Lun Pan CPAs (special general partnership)
Name of Certified Public Accountant Ni Yilin, Wang Bin
Audit Report Text
Xin Kuai Shi Bao Zi [2022] No. ZA11425
To the shareholders of Songcheng Performance Development Co., Ltd：
I. Audit Opinions
We have audited the financial statements of Songcheng Performance Development Co., Ltd. (hereinafter referred to as "Songcheng
Performance"), including the consolidated and parent company's balance sheet as of Friday, December 31, 2021, consolidated and
parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's
statement of shareholder's equity changes, and notes to relevant financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with "Accounting Standards for Business Enterprises"
in all major aspects, and fairly reflect the financial situation of the merger and the parent company of Songcheng Performance as of
Friday, December 31, 2021, as well as the operating situation and cash flow of Songcheng Performance and its parent company in
2021.
II. Basis of Opinions
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our responsibilities
under those standards are further explained in the part of "Auditor's Responsibility for the Financial Statements" of the audit report.
In accordance with "Code of Professional Ethics for Certified Public Accountants in China", we are independent of Songcheng
Performance and have fulfilled other responsibilities of professional ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
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.
The key audit matters identified during the audit are summarized as follows:
Key Audit Matters How the matter was addressed in the audit
(I) Recognition of revenue
The Accounting Standards for Business Enterprises No. 14 - The main audit procedures we performed for revenue recognition
Revenue (hereinafter referred to as "New Revenue include:
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Standards") is implemented by the Company. The Operating 1. Understand and evaluate the design and operation effectiveness of
Income of Songcheng Performance is mainly from cultural internal control related to revenue recognition of the company;
and artistic live performances. 2. Check the contracts of the company, identify the contract terms and
According to Note 5 (27) of the financial report, the specific conditions related to the recognition of Operating Revenue, and
principles for recognition of revenue from cultural and evaluate if revenue recognition of the company meets the
artistic live performances are as follows: The company requirements of the new revenue standards;
provides scenic spots and live performance services. 3. Perform letter verification procedures to verify the Account
Different ticket prices are set according to the types of Receivable balance and Sales Revenue amount for authenticity and
tourists. Tourists have right to watch live performances at completeness;
the scenic spot after purchasing tickets and entering the 4. Verify the company revenue for accuracy and completeness by
scenic spots. When the ticket amount has been collected or checking the records of the business system or order records from
the right to receive payment has been obtained, the third-party platform;
revenue should be generated. 5. Perform analysis on Operating Revenue, and ensure logical
In 2021, the revenue of cultural and artistic live rationality of revenue recognition based on the amount of Operating
performances was RMB 960,863,700, accounting for Revenue, cash flow, and taxes. Analyze reasons for abnormal changes
81.09% of the consolidated total revenue. Since revenue is by comparing revenue over the same period.
one of key performance indicators of the company, there 6. Check the supporting documents related to revenue confirmation by
may be inherent risks of the management manipulating sampling, including: system orders, admission orders, receipts, gate
revenue recognition in order to achieve specific goals or records, ticketing records and other documents to evaluate the
targets. For this reason, we take revenue recognition as a occurrence, authenticity and deadline of Operating Revenue.
key issue for audit.
(II) Long-term equity investment impairment test of Huafang Group Inc. (originally known as Beijing Huafang Technology Co.,
Ltd.)
As listed in Note 7 (8) of the consolidated financial Our audit procedures for testing of Long-term Equity Investments
statements, as of December 31, 2021, the Company's Impairment mainly include:
long-term equity investment in Huafang Group Inc. 1. Understand and evaluate the effectiveness of the company internal
(originally known as Beijing Huafang Technology Co., Ltd.) control design and implementation related to Long-term Equity
was originally valued at RMB 3,505,666,700, and provision Investments Impairment;
for long-term equity investment impairment accrued in the 2. Understand and evaluate the operating result and financial position
current period was RMB 1,861,297,300 , with book value of of the invested company, discuss with the management to understand
RMB 1,644,369,400. and evaluate the methods used in the testing of Long-term Equity
In our opinion, the amount of Long-term Equity Investments Impairment, including the reasonableness of the
Investments Impairment has a significant impact on the assumptions such as future revenue forecast and cash flow discount
financial statements. The management is required to make rate , judgment and evaluation of profitability of the components;
significant judgments based on evaluation and testing. 3. Understand and evaluate the assessment specialists, hired by the
Therefore, we recognize the impairment assessment of this management, for their competence, professionalism and objectivity;
asset as a key issue for audit. 4. We hired external assessment specialists to assist us to review
impairment testing. We have considered their competence,
professionalism and objectivity;
5. We evaluated whether the evaluation method of Long-term Equity
Investments Impairment test was reasonable;
6. We evaluated whether the key assumptions of Long-term Equity
Investments Impairment test were appropriate;
7. We evaluated whether the calculation process of forecasting future
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net cash flow and the selection of discount rate calculation model were
reasonable during Long-term Equity Investment Impairment test.
IV. Other Information
The management of Songcheng Performance (hereinafter referred to as "the management") is responsible for other information.
Other information includes the information covered in annual report of Songcheng Performance of Year 2021, but the financial
statements and our audit report are excluded.
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 combination with our audit of the financial statements, our responsibility is to read the other information 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, 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 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 necessary
internal control to ensure that the financial statements are free from material misstatements, whether due to frauds or errors.
In preparing the financial statements, the management is responsible for evaluating the ability of going concern of Songcheng
Performance, disclosing the matters related to going concern (if applicable), and applying the going concern assumptions, unless
there is a plan for liquidation, operations are terminated or there is no other realistic option .
The management is responsible for monitoring the financial reporting process of Songcheng Performance
VI. Certified Public Accounts’ 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 audit 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 made on the basis of these financial
statements.
As part of an audit in accordance with the audit standards, 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 one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design appropriate audit procedures, but not for the
purpose of expressing an opinion on the effectiveness of the Company's internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the Management.
(4) Conclude on the appropriateness of using the going concern assumption by the Management. At the same time, based on the
obtained audit evidence, a conclusion can be drawn on whether there are material uncertainties in matters or circumstances that
may cause significant doubt on going concern ability of Songcheng Performance. If we conclude that a material uncertainty exists,
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we are required to draw attention in our audit 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 information available up to the date of our audit report.
However, future events or circumstances may cause Songcheng Performance unable to continue its operations.
(5) Evaluate the overall presentation (including the disclosures), structure and content of the financial statements, and whether the
financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on financial information of entities or business activities of Songcheng
Performance, and issue an audit opinion on consolidated financial statements. We are responsible for guiding, supervising and
implementing the group audit, and remain solely responsible for our audit opinion.
We have communicated with those charged with governance on such matters as the scope of audit as planned, the schedule and
material audit findings, including the defects in the internal control that are worth paying attention to found in this audit.
We have also provided those charged with governance with a statement on observing the professional ethics related to
independence, and communicated with those charged with governance on all the relationships and other matters that might be
reasonably deemed to affect our independence, and relevant preventative measures.
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 audit 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 CPAs Certified Public Accountant:
(Special general partnership) (Project partner)
Certified Public Accountant:
Shanghai, China April 22, 2022
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II. Financial Statements
Units of financial reports in the notes: yuan
1. Consolidated Balance Sheet
Prepared by: Songcheng Performance Development Co., Ltd.
Friday, December 31, 2021
Unit: RMB
Item Friday, December 31, 2021 Thursday, December 31, 2020
Current Assets:
Cash and Bank Balances 1,858,747,864.04 1,337,776,253.98
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 2,670,942.90 335,217,557.68
Derivative Financial Assets
Notes receivable
Accounts receivable 2,197,594.37 5,887,012.36
Receivables Financing
Prepayments 9,506,216.23 21,934,226.54
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 10,195,239.84 50,524,990.69
Including: interest receivable
Dividends Receivable
Buying Back the Sale of Financial
Assets
Inventory 12,521,655.81 13,424,146.50
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 111,950,551.71 148,641,404.47
Subtotal of Current Assets 2,007,790,064.90 1,913,405,592.22
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Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 1,677,553,347.68 1,534,539,625.11
Investment in Other Equity
86,485,836.59 224,266,596.74
Instruments
Other Non-current Financial
Assets
Investment Property
Fixed Assets 2,697,045,965.17 2,508,754,929.16
Projects under Construction 404,739,821.09 771,871,563.73
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 493,815,583.40
Intangible Assets 1,712,824,232.77 1,880,031,922.56
Development Expenditure
Goodwill 1,573,240.33 11,655,794.87
Long-term unamortized expenses 695,021,549.39 323,741,176.89
Deferred Income Tax Assets 25,543,377.29 18,485,803.52
Other Non-current Assets 24,115,011.23 8,589,826.26
Subtotal of Non-current Assets 7,818,717,964.94 7,281,937,238.84
Total Assets 9,826,508,029.84 9,195,342,831.06
Current Liabilities:
Short-term loan
Borrowings from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable
Accounts Payable 481,951,280.14 372,476,464.69
Received Prepayments 8,142,991.55 12,888,689.05
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Contract liabilities 87,754,309.11 188,550,237.52
Financial Assets Sold for
Repurchase
Deposit Taking and Interbank
Deposit
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
Securities
Payroll payable 19,891,490.90 18,817,804.74
Tax Payable 36,997,211.67 19,869,808.49
Other Payables 72,869,650.41 65,149,971.79
Including: interest payable
Dividends Payable
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within
36,850,710.07 12,426,708.33
1 Year
Other Current Liabilities 3,419,057.32 3,513,902.08
Subtotal of Current Liabilities 747,876,701.17 693,693,586.69
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan 270,000,000.00 282,000,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 371,772,172.05
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 387,930,902.67 387,619,860.41
Deferred Income Tax Liabilities 93,718,053.81 96,769,220.18
Other Non-current Liabilities
Subtotal of Non-current Liabilities 1,123,421,128.53 766,389,080.59
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Total Liabilities 1,871,297,829.70 1,460,082,667.28
Shareholders' Equity:
Share Capital 2,614,694,040.00 2,614,694,040.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,250,036,126.65 1,211,364,214.86
Less: Treasury Share
Other Comprehensive Incomes -151,297,569.26 -63,325,115.75
Special Reserves
Surplus Reserves 533,723,796.82 517,673,268.35
General Risk Reserves
Undistributed Profits 3,397,614,428.15 3,131,881,024.60
Total Shareholders' Equity Attributable
7,644,770,822.36 7,412,287,432.06
to the Parent Company
Minority Shareholders' Equity 310,439,377.78 322,972,731.72
Total Shareholders' Equity 7,955,210,200.14 7,735,260,163.78
Total Liabilities and Shareholders'
9,826,508,029.84 9,195,342,831.06
Equity
Legal representative: Shang Lingxia Person in charge of accounting: Chen Shengming Head of the accounting institution: Zhu Shana
2. Balance Sheet of the Parent Company
Unit: RMB
Item Friday, December 31, 2021 Thursday, December 31, 2020
Current Assets:
Cash and Bank Balances 1,124,535,195.06 788,724,841.16
Trading Financial Assets
Derivative Financial Assets
Notes receivable
Accounts receivable 116,333.48 38,224.90
Receivables Financing
Prepayments 1,174,847.64 2,031,894.01
Other Receivables 1,195,669,385.02 1,046,160,763.74
Including: interest receivable
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Dividends Receivable
Inventory 1,381,826.46 651,042.56
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 361,780.06 1,240,658.07
Subtotal of Current Assets 2,323,239,367.72 1,838,847,424.44
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 6,667,904,199.20 6,433,238,270.32
Investment in Other Equity
77,459,800.00 214,975,166.42
Instruments
Other Non-current Financial
Assets
Investment Property
Fixed Assets 1,641,823.70 1,912,986.88
Projects under Construction
Productive Biological Assets
Oil and gas assets
Right-of-use Assets
Intangible Assets 2,844,445.19 3,418,590.95
Development Expenditure
Goodwill
Long-term unamortized expenses 2,384,333.56 2,600,000.20
Deferred Income Tax Assets 20,238,676.24 15,581,293.31
Other Non-current Assets 150,965.42
Subtotal of Non-current Assets 6,772,624,243.31 6,671,726,308.08
Total Assets 9,095,863,611.03 8,510,573,732.52
Current Liabilities:
Short-term loan
Transactional financial liabilities
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Derivative Financial Liabilities
Notes Payable
Accounts Payable 14,631,289.28 1,154,036.06
Received Prepayments
Contract liabilities
Payroll payable 8,252,921.44 7,873,282.52
Tax Payable 13,127,496.89 1,394,799.62
Other Payables 2,630,657,144.08 2,056,738,130.14
Including: interest payable
Dividends Payable
Holding for-sale liabilities
Non-current Liabilities Due within
12,409,291.67 12,426,708.33
1 Year
Other Current Liabilities
Subtotal of Current Liabilities 2,679,078,143.36 2,079,586,956.67
Non-current Liabilities:
Long-term loan 270,000,000.00 282,000,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income
Deferred Income Tax Liabilities
Other Non-current Liabilities
Subtotal of Non-current Liabilities 270,000,000.00 282,000,000.00
Total Liabilities 2,949,078,143.36 2,361,586,956.67
Shareholders' Equity:
Share Capital 2,614,694,040.00 2,614,694,040.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
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Capital Reserves 1,261,742,739.46 1,248,861,998.85
Less: Treasury Share
Other Comprehensive Incomes -83,024,621.90 -38,171,990.42
Special Reserves
Surplus Reserves 533,723,796.82 517,673,268.35
Undistributed Profits 1,819,649,513.29 1,805,929,459.07
Total Shareholders' Equity 6,146,785,467.67 6,148,986,775.85
Total Liabilities and Shareholders'
9,095,863,611.03 8,510,573,732.52
Equity
3. Consolidated Income Statement
Unit: RMB
Item 2021 2020
I. Total Operating Revenue 1,184,864,639.25 902,586,125.63
Including: Operating Revenue 1,184,864,639.25 902,586,125.63
Interest Income
Earned Premiums
Service Charge and
Commission Income
II. Total Operating Cost 964,551,921.05 740,982,414.36
Including: Operating Cost 579,587,211.67 352,670,473.42
Interest Expenditures
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
Net Amount of Withdrawn
Reserve for Insurance Liability Contract
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 22,374,280.26 11,933,497.05
Sales Expenses 66,184,828.78 63,649,750.30
Administration expenses 256,185,046.43 288,084,167.74
Research and development 41,175,131.35 37,487,964.00
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expense
Financial Expenses -954,577.44 -12,843,438.15
Including: interest
32,789,597.06 7,822,986.14
expenses
Interest Income 27,293,268.17 32,572,127.48
Add: Other income 4,560,501.94 34,572,160.23
Investment Income (Mark "-"
181,840,347.56 14,014,892.30
for Loss)
Including: Investment Income
103,892,278.09 -5,356,968.22
from Affiliates and Joint Ventures
Profits from recognition
Termination of Financial Assets at
Amortized Cost
Exchange Gains (Mark "-" for
Losses)
Profit of Net Exposure Hedging
(Mark "-" for Loss)
Incomes from changes in fair
-12,098,344.02 247,726.31
value (losses marked with "-")
Credit Impairment Losses
-16,581,681.70 -32,739,976.91
(Mark "-" for Loss)
Asset Impairment Losses (Mark
-10,082,554.54 -1,877,720,155.72
"-" for Loss)
Asset Disposal Income (Mark
4,512,572.52 676,435.92
"-" for Loss)
III. Operating Profit (Mark "-" for Loss) 372,463,559.96 -1,699,345,206.60
Add: Non-operating Revenues 6,091,127.99 3,242,377.14
Less: Non-operating Expenses 34,713,244.90 41,007,879.43
IV. Total Profit (Mark "-" for Total Loss) 343,841,443.05 -1,737,110,708.89
Less: Income Tax Expense 41,247,481.65 29,835,169.11
V. Net Profit (Mark "-" for Net Loss) 302,593,961.40 -1,766,945,878.00
i. Classified by operation continuity
1. Net Profit as a Going Concern
302,593,961.40 -1,766,945,878.00
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
ii. Classified by the attribution of
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ownership
1. Net Profit Attributable to
315,130,771.75 -1,752,398,009.60
Shareholders of Parent Company
2. Minority Shareholders' Profit and
-12,536,810.35 -14,547,868.40
Loss
VI. Net Amount of Other Comprehensive
9,418,865.17 -54,643,377.96
Incomes after Tax
Net Amount of Other Comprehensive
Incomes after Tax Attributable to the 9,415,408.76 -54,643,964.16
Parent Company's Owner
(1) Other comprehensive income
52,367,717.43 -65,726,184.59
that cannot be reclassified as P/L
1. Re-measure the variation
of the defined benefit plan
2. Other comprehensive
income that cannot be transferred to P/L 453,614.40 1,356,586.59
under the equity method
3. Changes in the fair value
of investment in other equity 51,914,103.03 -67,082,771.18
instruments
4. Changes in the fair value
of the credit risk of the enterprise
5. Others
(2) Other comprehensive income
-42,952,308.67 11,082,220.43
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L -16,918.29
under the equity method
2. Changes in the fair value
of investment in other creditor's rights
3. Financial assets
reclassified into other comprehensive
income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency translation
-42,935,390.38 11,082,220.43
difference
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7. Others
Net Amount of Other Comprehensive
Incomes After Tax Attributable to 3,456.41 586.20
Minority Shareholders
VII. Total Comprehensive Income 312,012,826.57 -1,821,589,255.96
Total Comprehensive Income
Attributable to the Parent Company's 324,546,180.51 -1,807,041,973.76
Owner
Total Comprehensive Income
-12,533,353.94 -14,547,282.20
Attributable to Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.1205 -0.6702
(II) Diluted Earnings per Share 0.1205 -0.6702
In case of business combination under the same control during this period, the net profit realized by the consolidated party before
consolidation is: RMB 0.00, and the net profit realized by consolidated party in the previous period: RMB 0.00.
Legal representative: Shang Lingxia Person in charge of accounting: Chen Shengming Head of the accounting institution: Zhu Shana
4. Income Statement of the Parent Company
Unit: RMB
Item 2021 2020
I. Operating Revenue 8,863,687.70 22,892,751.38
Less: Operating Cost 8,462,698.28 19,532,790.64
Taxes and Surcharges 161,851.02 1,295,426.42
Sales Expenses 6,052,705.94 7,343,898.62
Administration expenses 32,871,622.20 37,997,214.49
Research and development
4,741,111.89
expense
Financial Expenses -5,506,808.93 -13,459,704.23
Including: interest
13,918,687.47 7,822,986.14
expenses
Interest Income 19,517,413.61 21,565,816.00
Add: Other income 257,146.68 15,285,586.12
Investment Income (Mark "-"
110,089,710.11 424,960,373.38
for Loss)
Including: Investment Income
113,303,617.66 -2,931,524.95
from Affiliates and Joint Ventures
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Profits from
Derecognition of Financial Assets at
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
-1,492,520.54
value (losses marked with "-")
Credit Impairment Losses
-18,629,531.71 -32,526,876.92
(Mark "-" for Loss)
Asset Impairment Losses
-1,814,682,876.81
(Mark "-" for Loss)
Asset Disposal Income (Mark
17,156.67
"-" for Loss)
II. Operating Profit (Mark "-" for Loss) 58,538,944.27 -1,442,997,144.55
Add: Non-operating Revenues 40,844.33 1,103,676.45
Less: Non-operating Expenses 42,644.01 2,213,333.49
III. Total Profit (Mark "-" for Total Loss) 58,537,144.59 -1,444,106,801.59
Less: Income Tax Expense -4,580,277.83 3,112,861.27
IV. Net Profit (Mark "-" for Net Loss) 63,117,422.42 -1,447,219,662.86
(I) Net Profit as a Going Concern
63,117,422.42 -1,447,219,662.86
(Mark "-" for Net Loss)
(II) Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
V. Net Amount of Other Comprehensive
52,535,230.79 -70,042,042.21
Incomes After Tax
(1) Other comprehensive income
52,633,111.16 -70,042,042.21
that cannot be reclassified as P/L
1. Re-measure the
variation of the defined benefit plan
2. Other comprehensive
income that cannot be transferred to 453,614.40 37,670.53
P/L under the equity method
3. Changes in the fair value
of investment in other equity 52,179,496.76 -70,079,712.74
instruments
4. Changes in the fair value
of the credit risk of the enterprise
5. Others
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(2) Other comprehensive income
-97,880.37
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L -97,880.37
under the equity method
2. Changes in the fair value
of investment in other creditor's rights
3. Financial assets
reclassified into other comprehensive
income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge
reserves
6. Currency translation
difference
7. Others
VI. Total Comprehensive Income 115,652,653.21 -1,517,261,705.07
VII. Earnings per Share:
(I) Basic Earnings per Share
(II) Diluted Earnings per Share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2021 2020
I. Cash Flow Generated by Operational
Activities:
Cash from Sales of Merchandise
1,132,863,699.62 807,841,498.50
and Provision of Services
Net Increase in Customer's Bank
Deposits and Interbank Deposits
Net Increase in Borrowings from
the Central Bank
Net Increase in Borrowings from
Other Financial Institutions
Cash Arising from Receiving
Premiums for the Original Insurance
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Contract
Net Amount Arising from
Reinsurance Business
Net Increase in Deposits and
Investments from Policyholders
Cash Arising from Interests,
Service Charges and Commissions
Net Increase in Borrowings from
Banks and Other Financial Institutions
Net Increase in Repurchase
Business Funds
Net Amount of Cash Received
from the Vicariously Traded Securities
Tax Refund 34,424,077.40 32,176,543.78
Other Received Cashes Related to
227,856,516.25 103,772,075.60
Operational Activities
Subtotal of cash inflow from
1,395,144,293.27 943,790,117.88
operational activities
Cash Paid for Merchandise and
185,062,181.02 144,882,412.49
Services
Net Increase in Loans and
Advances to Customers
Net Increase in Deposits with
Central Bank and Other Financial
Institutions
Cash Paid for Original Insurance
Contract Claims
Net increase of funds lent
Cash Paid for Interests, Service
Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 225,146,675.82 183,145,317.90
Cash Paid for Taxes and Surcharges 92,366,813.62 64,685,320.62
Other Paid Cashes Related to
142,094,813.02 157,135,166.93
Operational Activities
Subtotal of cash outflow from
644,670,483.48 549,848,217.94
operational activities
Net cash flow generated by operating 750,473,809.79 393,941,899.94
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activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
1,449,388,462.73 1,349,803,239.12
Investments
Cash Arising from Investment
Incomes
Net Cash Arising from Disposal of
Fixed Assets, Intangible Assets and 8,831,753.57 2,136,278.15
Other Long-term Assets
Net Cash Arising from Disposal of
109,080,923.08
Subsidiaries and Other Business Units
Other Received Cashes Related to
Investment Activities
Subtotal of cash inflow from investment
1,567,301,139.38 1,351,939,517.27
activities
Cash Paid for Purchase and
Construction of Fixed Assets, Intangible 693,848,630.82 1,017,897,394.85
Assets and Other Long-term Assets
Cash Paid for Investments 910,012,836.58 897,276,184.30
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
377,767,506.95
Subsidiaries and Other Business Units
Other Paid Cashes Related to
Investment Activities
Subtotal of Cash Outflow from
1,603,861,467.40 2,292,941,086.10
Investment Activities
Net amount of cash flow generated by
-36,560,328.02 -941,001,568.83
investment activities
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing
120,000,000.00
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments by 120,000,000.00
Minority Shareholders
Cash Arising from Borrowings 300,000,000.00
Other Received Cashes Related to
Financing Activities
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Subtotal of cash inflow from financing
420,000,000.00
activities
Cash Paid for Debts Repayment 12,000,000.00 6,000,000.00
Cash Paid for Distribution of
Dividends and Profits or Payment of 144,670,806.13 300,917,837.81
Interests
Including: Dividends and Profits
Paid to Minority Shareholders by 3,000,000.00
Subsidiaries
Other Paid Cashes Related to
39,531,231.21
Financing Activities
Subtotal of cash outflow from financing
196,202,037.34 306,917,837.81
activities
Net cash flow generated by financing
-196,202,037.34 113,082,162.19
activities
IV. Impact of Fluctuation in Exchange
3,260,165.63 -9,956,266.67
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
520,971,610.06 -443,933,773.37
Equivalents
Add: Cash and Cash Equivalents at
1,337,776,253.98 1,781,710,027.35
the Commencement of the Period
VI. Cash and Cash Equivalents at the
1,858,747,864.04 1,337,776,253.98
End of the Period
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2021 2020
I. Cash Flow Generated by Operational
Activities:
Cash from Sales of Merchandise
10,096,780.48 21,146,321.04
and Provision of Services
Tax Refund
Other Received Cashes Related to
926,762,376.15 796,910,713.36
Operational Activities
Subtotal of cash inflow from
936,859,156.63 818,057,034.40
operational activities
Cash Paid for Merchandise and
6,494,745.46 4,428,163.75
Services
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Cash Paid to and for Employees 24,429,606.98 29,084,333.46
Cash Paid for Taxes and Surcharges 1,451,392.44 16,523,204.31
Other Paid Cashes Related to
502,445,235.90 655,676,151.74
Operational Activities
Subtotal of cash outflow from
534,820,980.78 705,711,853.26
operational activities
Net cash flow generated by operating
402,038,175.85 112,345,181.14
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
1,169,476,307.76 702,850,832.94
Investments
Cash Arising from Investment
432,000,000.00
Incomes
Net Cash Arising from Disposal of
Fixed Assets, Intangible Assets and 36,281.55
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business Units
Other Received Cashes Related to
Investment Activities
Subtotal of cash inflow from investment
1,169,476,307.76 1,134,887,114.49
activities
Cash Paid for Purchase and
Construction of Fixed Assets, Intangible 907,487.00 29,624,583.50
Assets and Other Long-term Assets
Cash Paid for Investments 1,078,125,836.58 692,500,000.00
Net Cash Paid for Acquisition of
378,000,000.00
Subsidiaries and Other Business Units
Other Paid Cashes Related to
Investment Activities
Subtotal of Cash Outflow from
1,079,033,323.58 1,100,124,583.50
Investment Activities
Net amount of cash flow generated by
90,442,984.18 34,762,530.99
investment activities
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing
Investments
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Cash Arising from Borrowings 300,000,000.00
Other Received Cashes Related to
Financing Activities
Subtotal of cash inflow from financing
300,000,000.00
activities
Cash Paid for Debts Repayment 12,000,000.00 6,000,000.00
Cash Paid for Distribution of
Dividends and Profits or Payment of 144,670,806.13 297,917,837.81
Interests
Other Paid Cashes Related to
Financing Activities
Subtotal of cash outflow from financing
156,670,806.13 303,917,837.81
activities
Net cash flow generated by financing
-156,670,806.13 -3,917,837.81
activities
IV. Impact of Fluctuation in Exchange
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
335,810,353.90 143,189,874.32
Equivalents
Add: Cash and Cash Equivalents at
788,724,841.16 645,534,966.84
the Commencement of the Period
VI. Cash and Cash Equivalents at the
1,124,535,195.06 788,724,841.16
End of the Period
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2021
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity
Minority Total
Item Instruments
Less: Other General
Capital Special Surplus Undistributed Shareholders' Shareholders'
Share Capital Prefer Perpe Treasury Comprehensive Risk Others Subtotal
Reserves Reserves Reserves Profits Equity Equity
red tual Others Share Incomes Reserves
Stocks Bonds
I. Balance at the 2,614,694,04 1,211,364,214 517,673,2 3,131,881,024. 7,412,287,432.0
-63,325,115.75 322,972,731.72 7,735,260,163.78
End of Last Year 0.00 .86 68.35 60 6
Add:
Changes in
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Accounting
Policies
Correction of
Errors in the
Previous Period
Consolidated
under the Same
Control
Others
II. Balance at the 2,614,694,04 1,211,364,214 517,673,2 3,131,881,024. 7,412,287,432.0
-63,325,115.75 322,972,731.72 7,735,260,163.78
Start of This Year 0.00 .86 68.35 60 6
III. Increases or
Decreases in This 16,050,52 265,733,403.5
38,671,911.79 -87,972,453.51 232,483,390.30 -12,533,353.94 219,950,036.36
Period (Mark "-" 8.47 5
for Decreases)
(I) Total
315,130,771.7
Comprehensive 9,415,408.76 324,546,180.51 -12,533,353.94 312,012,826.57
5
Income
(II) Shareholders'
Contribution and
38,671,911.79 38,671,911.79 38,671,911.79
Reduction in
Capital
1. Common stock
invested by the
owner
2. Capital
Invested by
Holders of Other
Equity
Instruments
3. Amount of
Share-based
Payments
Recorded into
Shareholders'
Equity
4. Others 38,671,911.79 38,671,911.79 38,671,911.79
(III) Profit 6,311,742. -137,046,444.2
-130,734,702.00 -130,734,702.00
Distribution 24 4
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1. Appropriation
6,311,742.
of Surplus -6,311,742.24
24
Reserves
2. Appropriation
of General Risk
Reserves
3. Distribution to
-130,734,702.0
Owners (or -130,734,702.00 -130,734,702.00
0
Shareholders)
4. Others
(IV) Internal
Carry-forward of 9,738,786.
-97,387,862.27 87,649,076.04
Shareholders' 23
Equity
1. Capital
Reserves
Transferred into
Capital (or Share
Capital)
2. Surplus
Reserves
Transferred into
Capital (or Share
Capital)
3. Surplus
Reserves
Covering Losses
4. Carry-forward
retained earnings
of the variation
of the defined
benefit plan
5. Other
Carry-forward
Retained 9,738,786.
-97,387,862.27 87,649,076.04
Earnings of the 23
Comprehensive
Income
6. Others
(V) Special
Reserves
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1. Withdrawal in
this period
2. Used in This
Period
(VI) Others
IV. Balance at the
2,614,694,04 1,250,036,126 533,723,7 3,397,614,428. 7,644,770,822.3
End of This -151,297,569.26 310,439,377.78 7,955,210,200.14
0.00 .65 96.82 15 6
Period
Amount of Previous Period
Unit: RMB
2020
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity
Minority Total
Item Instruments
Less: Other General
Share Capital Special Surplus Undistributed Shareholders' Shareholders'
Prefer Perpe Treasury Comprehensive Risk Others Subtotal
Capital Reserves Reserves Reserves Profits Equity Equity
red tual Others Share Incomes Reserves
Stocks Bonds
I. Balance at the End 1,452,607 2,476,312,069 517,673, 5,176,157,180. 9,614,069,166.6
-8,681,151.59 268,322,155.87 9,882,391,322.51
of Last Year ,800.00 .09 268.35 79 4
Add: Changes in
Accounting Policies
Correction
of Errors in the
Previous Period
Consolidated under
the Same Control
Others
II. Balance at the 1,452,607 2,476,312,069 517,673, 5,176,157,180. 9,614,069,166.6
-8,681,151.59 268,322,155.87 9,882,391,322.51
Start of This Year ,800.00 .09 268.35 79 4
III. Increases or
Decreases in This 1,162,086 -1,264,947,85 -2,044,276,15 -2,201,781,734.
-54,643,964.16 54,650,575.85 -2,147,131,158.73
Period (Mark "-" for ,240.00 4.23 6.19 58
Decreases)
(I) Total
-1,752,398,00 -1,808,398,560.
Comprehensive -56,000,550.75 -14,547,282.20 -1,822,945,842.55
9.60 35
Income
(II) Shareholders' -35,459,327.3
-35,459,327.38 72,197,858.05 36,738,530.67
Contribution and 8
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Reduction in Capital
1. Common stock
invested by the 72,959,327.38 72,959,327.38
owner
2. Capital Invested
by Holders of Other
Equity Instruments
3. Amount of
Share-based
Payments Recorded
into Shareholders'
Equity
-35,459,327.3
4. Others -35,459,327.38 -761,469.33 -36,220,796.71
8
(III) Profit -290,521,560.
-290,521,560.00 -3,000,000.00 -293,521,560.00
Distribution 00
1. Appropriation of
Surplus Reserves
2. Appropriation of
General Risk
Reserves
3. Distribution to
-290,521,560.
Owners (or -290,521,560.00 -3,000,000.00 -293,521,560.00
00
Shareholders)
4. Others
(IV) Internal
1,162,086 -1,162,086,24
Carry-forward of 1,356,586.59 -1,356,586.59
,240.00 0.00
Shareholders' Equity
1. Capital Reserves
Transferred into 1,162,086 -1,162,086,24
Capital (or Share ,240.00 0.00
Capital)
2. Surplus Reserves
Transferred into
Capital (or Share
Capital)
3. Surplus Reserves
Covering Losses
4. Carry-forward
retained earnings of
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the variation of the
defined benefit plan
5. Other
Carry-forward
Retained Earnings of 1,356,586.59 -1,356,586.59
the Comprehensive
Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
2. Used in This
Period
-67,402,286.8
(VI) Others -67,402,286.85 -67,402,286.85
5
IV. Balance at the 2,614,694 1,211,364,214 517,673, 3,131,881,024. 7,412,287,432.0
-63,325,115.75 322,972,731.72 7,735,260,163.78
End of This Period ,040.00 .86 268.35 60 6
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2021
Other Equity Instruments
Other Total
Item Share Capital Less: Treasury Special Surplus Undistributed
Preferred Perpetual Comprehensive Others Shareholders'
Capital Others Reserves Share Reserves Reserves Profits
Stocks Bonds Incomes Equity
I. Balance at the End of Last 2,614,694,0 1,248,861,998. 517,673,268.3 1,805,929,459
-38,171,990.42 6,148,986,775.85
Year 40.00 85 5 .07
Add: Changes in
Accounting Policies
Correction of
Errors in the Previous
Period
Others
II. Balance at the Start of 2,614,694,0 1,248,861,998. 517,673,268.3 1,805,929,459
-38,171,990.42 6,148,986,775.85
This Year 40.00 85 5 .07
III. Increases or Decreases
12,880,740.61 -44,852,631.48 16,050,528.47 13,720,054.22 -2,201,308.18
in This Period (Mark "-" for
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Decreases)
(I) Total Comprehensive
52,535,230.79 63,117,422.42 115,652,653.21
Income
(II) Shareholders'
Contribution and Reduction 12,880,740.61 12,880,740.61
in Capital
1. Common stock invested
by the owner
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share-based
Payments Recorded into
Shareholders' Equity
4. Others 12,880,740.61 12,880,740.61
-137,046,444.
(III) Profit Distribution 6,311,742.24 -130,734,702.00
24
1. Appropriation of Surplus
6,311,742.24 -6,311,742.24
Reserves
2. Distribution to Owners -130,734,702.
-130,734,702.00
(or Shareholders) 00
3. Others
(IV) Internal Carry-forward
-97,387,862.27 9,738,786.23 87,649,076.04
of Shareholders' Equity
1. Capital Reserves
Transferred into Capital (or
Share Capital)
2. Surplus Reserves
Transferred into Capital (or
Share Capital)
3. Surplus Reserves
Covering Losses
4. Carry-forward retained
earnings of the variation of
the defined benefit plan
5. Other Carry-forward
Retained Earnings of the -97,387,862.27 9,738,786.23 87,649,076.04
Comprehensive Income
6. Others
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(V) Special Reserves
1. Withdrawal in this period
2. Used in This Period
(VI) Others
IV. Balance at the End of 2,614,694,0 1,261,742,739. 533,723,796.8 1,819,649,513
-83,024,621.90 6,146,785,467.67
This Period 40.00 46 2 .29
Amount of Previous Period
Unit: RMB
2020
Other Equity Instruments Other
Item Share Capital Less: Treasury Special Surplus Undistributed Total Shareholders'
Preferred Perpetual Comprehensi Others
Capital Others Reserves Share Reserves Reserves Profits Equity
Stocks Bonds ve Incomes
I. Balance at the End of 1,452,607,8 2,478,350,52 31,870,051.7 517,673,268. 3,543,708,352.4
8,024,209,998.30
Last Year 00.00 5.70 9 35 6
Add: Changes in
Accounting Policies
Correction of
Errors in the Previous
Period
Others
II. Balance at the Start of 1,452,607,8 2,478,350,52 31,870,051.7 517,673,268. 3,543,708,352.4
8,024,209,998.30
This Year 00.00 5.70 9 35 6
III. Increases or Decreases
1,162,086,2 -1,229,488,52 -70,042,042.2 -1,737,778,893.
in This Period (Mark "-" -1,875,223,222.45
40.00 6.85 1 39
for Decreases)
(I) Total Comprehensive -70,079,712.7 -1,447,219,662.
-1,517,299,375.60
Income 4 86
(II) Shareholders'
Contribution and
Reduction in Capital
1. Common stock invested
by the owner
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share-based
Payments Recorded into
Shareholders' Equity
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4. Others
(III) Profit Distribution -290,521,560.00 -290,521,560.00
1. Appropriation of
Surplus Reserves
2. Distribution to Owners
-290,521,560.00 -290,521,560.00
(or Shareholders)
3. Others
(IV) Internal
1,162,086,2 -1,162,086,24
Carry-forward of 37,670.53 -37,670.53
40.00 0.00
Shareholders' Equity
1. Capital Reserves
1,162,086,2 -1,162,086,24
Transferred into Capital
40.00 0.00
(or Share Capital)
2. Surplus Reserves
Transferred into Capital
(or Share Capital)
3. Surplus Reserves
Covering Losses
4. Carry-forward retained
earnings of the variation
of the defined benefit
plan
5. Other Carry-forward
Retained Earnings of the 37,670.53 -37,670.53
Comprehensive Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
2. Used in This Period
-67,402,286.8
(VI) Others -67,402,286.85
5
IV. Balance at the End of 2,614,694,0 1,248,861,99 -38,171,990.4 517,673,268. 1,805,929,459.0
6,148,986,775.85
This Period 40.00 8.85 2 35 7
III. Basic Information about the Company
Songcheng Performance Development Co., Ltd. (previously named Hangzhou Songcheng Tourism Development Co., Ltd., hereinafter
referred to as the "Company"). On December 27, 2000, its predecessor Hangzhou Songcheng Group Co., Ltd. (formerly named
Hangzhou WorldlandSongcheng Real Estate Co., Ltd) contributed its net assets audited on November 30, 2000 converted into
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shares at the ratio of 1:1 to alter itself and establish Hangzhou Songcheng Tourism Development Co., Ltd. (changing its name to
Songcheng Performance Development Co., Ltd on April 18, 2014), according to the approval document of Zhejiang [2000] No. 69
"Official Reply on the Approval for Alteration and Establishment of Hangzhou Song Cheng Tourism Development Co., Ltd." issued by
Leading Group for Enterprise Listing of Zhejiang Provincial People's Government . The Company obtained the Business License of
Enterprise Legal Person issued by Hangzhou Administration for Industry and Commerce on December 28, 2000, with the registration
number of 3301002004635. The legal representative of the Company is Huang Qiaoling.
Upon approval of the document [2010] No. 1632 "Official Reply on Approval of Hangzhou Songcheng Tourism Development Co., Ltd.
Initial Public Offering and Listing on the Growth Enterprise Market” issued by China Securities Regulatory Commission (CSRC), the
Company’s A shares were listed on Shenzhen Stock Exchange on December 9, 2010 with stock code 300144.
As of December 31, 2021, the Company issued a total of 2,614,694,040 shares, and the registered capital was RMB 2,614,694,040.
Unified social credit code for Business License of Enterprise Legal Person: 91330000143102311G, Registered address: 148 Zhijiang
Road, Hangzhou. The business scope includes: singing and dancing performance, acrobatics performance, opera performance,
music performance, comprehensive artistic performance (operated within the scope of "Business Performance License"),
performance and brokerage business (operated within the scope of "Business Performance License"), catering service (See "Catering
Service License" for details), and parking service. Tourism services, theme park development and management, planning and
organization of cultural activities, cultural communication planning, animation design, exhibition organization, investment in and
development of leisure industry, industrial investment, tourism e-business, design, production, agency, and release of various
domestic advertisements, film and television projects Investment and management, tourism products and arts &crafts (excluding
gold jewelry), general merchandise, native products (excluding food) sales, publication wholesale and retail (operating with a
license); the business scope of subsidiaries included. (For items subject to approval according to law, business activities can only be
carried out after approval by relevant departments)
The Company has eight theme parks in different regions at present: Hangzhou Songcheng Tourism Area (Hangzhou Songcheng),
Hangzhou Crazy Apple Land and Hangzhou Wonderland; Sanya Romance Park; Lijiang Romance Park; Jiuzhai Romance Park and
Tibetan Mystery Theater; Guilin Romance Park; Zhangjiajie Romance Park; Xi’an Romance Park; and Shanghai Romance Park. The
current business of the Company also extends to the planning and design of parks as well as Internet and video related industries.
The basic organizational structure of the company: the highest authority of the company is the General Meeting of Shareholders,
with implementation of the president responsibility system under the leadership of the Board of Directors. To satisfy the needs of
business development, the Company has set up the President's Office, Human Resources Department, Securities Investment
Department, Financial Management Department, Design Department, Marketing Planning Department, Engineering Management
Department, Audit Department, Arts Troupe Department, Business Development and Management Department, Innovation
Department and other functional departments.
The parent company of the company is Hangzhou Songcheng Group Holdings Co., Ltd, and the actual controller of the company is
Huang Qiaoling.
These financial statements were approved by the Board of Directors of the Company on April 22, 2022.
As of December 31, 2021, the subsidiaries listed in the consolidated financial statements of the Company are as follows:
Name of Subsidiaries
Hangzhou Paradise Co., Ltd.
Sanya Romance Tourism Performance Co., Ltd.
Lijiang Chama Ancient City Tourism Development Co., Ltd
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd
Hangzhou Songcheng Tourism Development Co., Ltd
Hanghzou Songcheng Dumuqiao Travel Services Co., Ltd
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Jiuzhaigou Tibetan Mystery Culture Co., Ltd
Hangzhou Songcheng Technology Development Co., Ltd.
Songcheng Performance International Development Co., Ltd.
Songcheng (Australia) Holdings Pty Ltd
Songcheng (Australia) Entertainment Pty Ltd.
Shanghai Songcheng World Expo Performance Development Co., Ltd
Songcheng Performance Development (Shanghai) Co., Ltd.
Guilin Lijiang Romance Performance Development Co., Ltd
Ningxiang Songcheng Tourism Development Co., Ltd.
Zhangjiajie Romance Performance Development Co., Ltd
Songcheng Technology Development Co.,Ltd.
Songcheng Tourism Development Co., Ltd.
Songcheng Performance Management Co., Ltd.
Songcheng Dumuqiao Network Co., Ltd.
Xi'an Romance Performance Development Co., Ltd
Zhejiang Songcheng Xitang Performance Valley Performance Development Co., Ltd
Foshan South Sea Qiao Mountain Cultural Tourism Development Co., Ltd
Hangzhou Songguo Cultural Creative Co., Ltd.
Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd
Songcheng Holdings (Thailand) Co., Ltd.
Songcheng (Pattaya) International Culture Co., Ltd.
Zhuhai Songcheng Performance Kingdom Co., Ltd
Zhuhai Southern Film and Television Cultural Industry Co., Ltd.
Zhuhai Huayin Landscaping Co., Ltd.
Songcheng Brand Management Co., Ltd.
Romance Show Management Co., Ltd.
Global Bacchus Limited
See "IX. Interests In Other Entities" in the notes for relevant information of the subsidiaries of the Company.
See "VIII. Changes in the Scope of Consolidation" in the notes for changes in the scope of consolidation during the reporting period.
IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises-Basic Standards" and
related specific accounting standards issued by the Ministry of Finance, Guidelines for Application of Accounting Standards for
Business Enterprises", “Interpretation of Accounting Standards for Business Enterprises and other relevant provisions" (hereinafter
collectively referred to as the "Accounting Standards for Business Enterprises"), and "No. 15 of the Rules on Information Disclosure
and Reporting of the Companies Issuing Securities Publicly" issued by CSRC.
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2. Going concern
There is no events or conditions that may cast significant doubt on the Company's ability to continue as a going concern for 12
months after the end of the current reporting period.
V. Significant Accounting Polices and Accounting Estimates
1. Statement on compliance with Accounting Standards for Business Enterprises
This financial statement is in compliance with the requirements in the Accounting Standards for Business Enterprises promulgated
by the Ministry of Finance and presents truly and completely the financial position of the merged companies and the parent
company as at Friday, December 31, 2021 and the operating results and cash flows of the merger and the parent company in 2021.
2. Accounting period
An accounting year commences on January 1 and ends on December 31 of the Gregorian calendar.
3. Operating cycle
The Company's operating cycle is 12 months.
4. Functional currency
The company uses RMB as the standard currency for bookkeeping.
5. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
The assets and liabilities acquired by the combining party from the business combination (including the goodwill generated by the
ultimate controlling party's acquisition of the combined party) shall be measured on the basis of the book value of the assets and
liabilities of the combined party in the consolidated financial statements of ultimate controlling party on the combination date. The
difference between the book value of the net assets obtained and the book value of the consideration paid for the combination (or
total nominal value of the issued shares) is adjusted to capital premium in capital reserve. Adjustments shall be made to retained
earnings in the event that the share premiums in the capital reserves are not sufficient for write-down.
Business combination under different control: The cost of combination is the fair value of the assets, liabilities incurred or assumed,
and equity securities issued by the acquiring party to obtain the control right of the acquired party on the acquisition date. Where
the cost of combination is higher than the fair value of the identifiable net assets acquired from the merging party in business
combination, such difference shall be recognized as goodwill; where the cost of combination is less than the fair value of the
identifiable net assets acquired from the merging party in business combination, such difference shall be charged to the profit or
loss for the period. The identifiable assets, liabilities and contingent liabilities obtained by the acquiring party that meet the
recognition conditions should be measured at fair value of the acquisition date.
The fees which are directly related to the business combination shall be recognized as the profit or loss in the period when the costs
are incurred; the transaction expenses of issuing equity securities or debt securities for business merger shall be initially capitalized
for equity securities or debt securities.
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6. Preparation method of consolidated financial statements
(1) Scope of Consolidation
The scope of consolidation of the consolidated financial statements is determined on the basis of control, and includes the Company
and all its subsidiaries. Control means that the Company has the rights over the investee, enjoys variable returns through
participating in relevant activities of the investee, and has the ability to influence the amount of returns by exercising its rights over
the investee.
(2) Procedures of Consolidation
The Company regards the whole group as an accounting entity and prepares consolidated financial statements in accordance with
unified accounting policies, in order to reflect the overall financial position, operating results and cash flow of the group. The
influence of internal transactions between the Company and the Subsidiaries and between the Subsidiaries shall be offset. Where
internal transaction indicates the occurrence of impairment loss to relevant assets, such loss shall be recognized in full. In preparing
the consolidated financial statements, where the accounting policies and the accounting periods are inconsistent between the
Company and subsidiaries, the financial statements of subsidiaries are adjusted in accordance with the accounting policies and
accounting period of the Company.
The owner's equity, the net profit or loss and the comprehensive income attributable to minority shareholders of a subsidiary of the
current period are presented separately under the owners' equity in the consolidated balance sheet, the net profit and the total
comprehensive income in the consolidated income statement respectively. Where losses attributable to the minority shareholders
of a subsidiary of the current period exceed the minority shareholders' interest entitled in the shareholders' equity of the subsidiary
at the beginning of the period, the excess is allocated against the minority shareholders interest.
1) Increase of subsidiaries or business
For acquisition of subsidiaries or business due to business combination involving entities under common control during the
reporting period, the operating results and cash flows of such subsidiaries or business from the beginning to the end of the
reporting period when the acquisition occurs shall be included in the consolidated financial statements. Adjustments shall be made
to the opening balance of the consolidated financial statements and the related items in the comparative statements
simultaneously as if the consolidated reporting entity has been in existence since the beginning of the control by the ultimate
controlling party.
For acquisition of subsidiaries or business due to business combination involving entities not under common control during the
reporting period, the identifiable assets, liabilities and contingent liabilities shall be included in the consolidated financial
statements based on the fair value determined on the date of the acquisition.
2) Disposal of subsidiaries
① General treatment methods
When losing control of the investee due to partial disposal of the equity investment, or any other reasons, the remaining equity
investment is remeasured at fair value at the date in which control is lost. The sum of consideration received from disposal of equity
investment and the fair value of the remaining equity investment, net of the difference between the sum of the Company's previous
share of the subsidiary's net assets recorded from the acquisition date or combination date and the sum of goodwill, is recognized
in investment income in the period in which control is lost. Other comprehensive income related to the equity investment of the
original subsidiary that can be reclassified into future profit or loss, and other changes of owners’ equity accounted for under equity
method shall be recognized in investment income in the period in which control is lost.
② Disposal of subsidiaries step by step
If the equity investment in the subsidiary is disposed of step by step through multiple transactions until the control right is lost, the
terms, conditions and economic impact of each transaction on the equity investment in the subsidiary meet one or more of the
following conditions, which usually indicates that the multiple transactions should fall within a "package deal":
ⅰ. These transactions are achieved at the same time or the mutual effects on each other are considered;
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ⅱ. A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
ⅲ. Achieving a transaction depends on at least achieving of one of the other transaction;
ⅳ. One transaction recognized separately is not economical, but it is economical when considered together with other transactions.
If the transactions are recognized as a “package deal", these transactions shall be subject to accounting treatment as one
transaction in which the subsidiaries are disposed and the control is lost; the difference between the price for each disposal before
the control is lost and share of such subsidiaries’ net assets as a result of disposal of investment, shall be recognized in other
comprehensive income in the consolidated financial statements, and be included in profit or loss for the period when the control is
lost.
If the transactions are not recognized as a “package deal", before the loss of control rights, the accounting treatment is conducted
according to the partial disposal of equity investment in subsidiaries without loss of control rights; in case of loss of control rights,
the accounting treatment is conducted according to the general treatment method for disposal of subsidiaries.
3) Purchase of minority shares of subsidiaries
If there is a difference between the new long-term equity investment acquired as a result of the purchase of minority shares and the
share of net assets that the Company is entitled to continuously calculated from the date of purchase or merger of the Subsidiary
based on the new shareholding ratio, the equity premium in the capital reserves in the consolidated balance sheet is adjusted.
Where the equity premium in the capital reserve is insufficient to offset, retained earnings are adjusted.
4) Partial disposal of equity investment in subsidiaries without losing control
If there is a difference between the disposal price and the share of net assets continuously calculated by the subsidiary from the
date of purchase or merger corresponding to the disposal of the long-term equity investment, the equity premium in the capital
reserves in the consolidated balance sheet is adjusted. Where the equity premium in the capital reserve is insufficient to offset,
retained earnings are adjusted.
7. Classification of joint venture arrangements and the accounting treatment method of joint operation
Joint arrangement can be divided into joint operation and joint venture.
Joint venture refers to the joint venture arrangement in which the joint venture partners enjoy the assets relating to the
arrangement and undertake the liabilities relating to the arrangement.
The Company recognizes the following items related to the shares or interests in the joint venture:
(1) Recognize the assets held separately by the Company and the assets jointly held in accordance with the share of the Company;
(2) Recognize the liabilities assumed separately by the Company and the liabilities jointly assumed in accordance with the share of
the Company;
(3) Recognize the income generated through the sale of the Company’s share of the output of the joint operation;
(4) Recognize the income generated through the sale of the output of the joint operation in accordance with the share of the
Company.
(5) Recognize the expenses incurred separately, and the expenses incurred in joint operation in accordance with the share of the
Company .
8. Recognition criteria of cash and cash equivalents
Cash refers to the cash on hand and deposits that are available for payment at any time of the Company. Cash equivalents refer to
investments held by the Company featuring short duration, strong liquidity, easy conversion into cash of known amount and low risk
of changes in value.
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9. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day when the transactions occurred.
Balance sheet date foreign currency monetary items shall be translated using the spot exchange rate at the balance sheet date. The
resulting exchange differences are recognized in profit or loss for the current period, except for those differences related to the
principal and interest on a specific-purpose borrowing denominated in foreign currency for acquisitions, construction or production
of the qualified assets, which should be capitalized as cost of the assets.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date; owners' equity
items other than "undistributed profit" are translated at a spot exchange rate when accrued. The revenue and expense items in the
income statement are converted using the weighted average exchange rate which is determined on the date of the transaction by
using systematic and reasonable method.
For disposal of overseas operation, the translation difference as stated in the foreign currency financial statements relating to
overseas operation, is accounted for in the profit and loss account in the current period from owners' equity items.
10. Financial instruments
The Company recognizes a financial asset, financial liability or equity instrument when it becomes a party to a financial instrument
contract.
(1) Classification of the financial instruments
According to the company's business model for managing financial assets and the contractual cash flow features of financial assets,
financial assets at initial recognition are classified into: financial assets measured at amortized cost, financial assets measured at fair
value with changes recognized in other comprehensive income and financial assets measured at fair value with changes recognized
in profits and losses of the current period.
For financial assets that meet the following conditions and are not designated to be measured at fair value through the current
profit or loss, the Company classifies them as financial assets at amortized cost:
－ The business model is aimed at collecting contract cash flow;
－ Contract cash flow is the payment of principal and interest based on the outstanding principal amount.
For financial assets that meet the following conditions and are not designated to be measured at fair value through current profit or
loss, the Company classifies them as financial assets at fair value through other comprehensive income (debt instruments).
－ The business model is aimed at both collecting contract cash flows and selling financial asset;
－ Contract cash flow is the payment of principal and interest based on the outstanding principal amount.
The Company will, at the time of initial recognition, irrevocably designate non-trading investments in equity instruments as financial
assets measured at fair value and the change shall be included in other comprehensive income (equity instrument). The designation
is made on the basis of independent investment, and the related investments fit the definition of an equity instrument from an
issuer’s perspective.
In addition to the aforementioned financial assets at amortized cost and at fair value through other comprehensive income, the
Company classifies all other financial assets as financial assets at fair value through current profit or loss.
The financial liabilities, when initially recognized, are classified as: financial liabilities at fair value through profit or loss and financial
liabilities at amortized cost.
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(2) Recognition and measurement of financial instruments
1) Financial assets measured at amortized cost
Financial assets at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables and
creditors investment, which shall be initially measured at fair value, and the relevant transaction expenses should be initially
capitalized; The accounts receivable that do not contain material financing compositions and those for which the Company decides
to not take into account the financing compositions of no more than one year shall be initially measured at the contract transaction
price.
The interest calculated by effective interest method during the holding period is recorded into the current profit and loss.
At the time of recovery or disposal, the difference between the price obtained and the book value shall be included in the current
profit or loss.
2) Financial assets (debt instruments) measured at fair value and whose changes included in other comprehensive income
Financial assets measured at fair value and its changes are included in other comprehensive income (debt instruments) include
receivables financing and investments in other creditor's rights. They are initially measured at fair value, and the relevant
transaction expenses should be initially capitalized. These financial assets are subsequently measured at fair value, and the change
in fair value, other than the interest, the impairment loss or profit and the profit or loss on foreign exchange, shall be included in
other comprehensive income.
Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be removed from
other comprehensive income and included in the profit or loss for the period.
3) Financial assets (equity instruments) measured at fair and whose changes included in other comprehensive income
Financial assets at fair value through other comprehensive income (equity instruments) include investment in other equity
instruments. They are initially measured at fair value, and the transaction expenses shall be initially capitalized. These financial
assets are subsequently measured at fair value, and the change in fair value shall be included in other comprehensive income. The
dividends obtained shall be included in the profit or loss for the period.
Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be removed from
other comprehensive income and included in the carry-forward retained earnings.
4) Financial assets measured at fair value and whose changes included in profit and loss of the current period
Financial assets at fair value through profit or loss include trading financial assets, derivative financial assets and other non-current
financial assets. They are initially measured at fair value, and the transaction expenses related to them are included in the profit or
loss for the period. These financial assets are subsequently measured at fair value, and the change in fair value shall be included in
the profit or loss for the period.
5) Financial liabilities measured at fair value and whose changes included in profit and loss of the current period
Financial liabilities at fair value through profit or loss include trading financial liabilities and derivative financial liabilities. They are
initially measured at fair value, and the transaction expenses related to them are included in the profit or loss for the period. These
financial liabilities are subsequently measured at fair value, and the change in fair value shall be included in the profit or loss for the
period.
Upon derecognition, the difference between their book value and the consideration paid is included in the profit or loss for the
period.
6) Financial liabilities measured at amortized cost
Financial liabilities at amortized cost include short-term loans, notes payable, accounts payable, other payables, long-term loans,
bonds payable, and long-term payables. They are initially measured at fair value, and the transaction expenses shall be initially
capitalized.
The interest calculated by effective interest method during the holding period is recorded into the current profit and loss.
Upon derecognition the difference between the consideration paid and the book value of these financial liabilities is included in the
current profit or loss.
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(3) Derecognition and transfer of financial assets
The Company derecognizes financial assets when any one of the following conditions is satisfied:
The contractual right to receive cash flows of the financial assets has been terminated;
The financial asset has been transferred and virtually all the risks and rewards related to the ownership of the financial asset shave
been transferred to the transferee;
The financial assets have been transferred, and while the Company has neither transferred nor retained virtually all of the risks and
rewards related to the ownership of the financial assets, it has not retained control of the financial assets.
At the time of the transfer of financial assets, the recognition of the financial assets shall not be terminated if the Company has
retained virtually all the risks and rewards related to the ownership of the financial assets.
The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets satisfies the
above conditions for termination of recognition.
The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire financial asset
satisfies the conditions for termination of recognition, the difference between the two amounts below shall be recorded into profit
or loss for the period:
1) Book value of transferred financial assets;
2) The consideration received as a result of the transfer, and the sum of cumulative amount of fair value changes that originally
included in owner equity (the financial assets involved in the transfer are the financial assets (debt instruments) measured at fair
value and whose changes are included in other comprehensive income).
If the partial transfer of financial assets satisfies the conditions for termination of recognition, the overall book value of the
transferred financial asset shall be apportioned according to their respective relative fair value between the recognition terminated
part and the remaining part, and the difference between the two amounts below shall be recorded into profit or loss for the current
period:
1) Book value of the derecognized part;
2) The consideration for derecognized part, and the sum of the cumulative amount of the derecognized part in fair value changes
that originally recorded in owner's equity (the financial assets (debt instruments) involved in the transfer are measured at fair value
and whose changes are included in other comprehensive income).
Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition, with the consideration
received recognized as a financial liability.
(4) Recognition for termination of financial liabilities
When the current obligation under a financial liability is completely or partially discharged, the recognition of the whole or relevant
portion of the liability is terminated; an agreement is entered between the Company and a creditor to replace the original financial
liabilities with new financial liabilities with substantially different terms, terminate the recognition of the original financial liabilities
as well as recognize the new financial liabilities.
If all or part of the contract terms of the original financial liabilities are substantially amended, the recognition of the original
financial liabilities will be terminated in full or in part, and the financial liabilities whose terms have been amended shall be
recognized as a new financial liability.
When recognition of financial liabilities is terminated in full or in part, the difference between the book value of the financial
liabilities terminated and the consideration paid (including transferred non-cash assets or new financial liability) is recognized in
profit or loss for the current period.
Where the Company repurchases part of its financial liabilities, the book value of such financial liabilities will be allocated according
to the relative fair value between the continued recognized part and terminated part on the repurchase date. The difference
between the book value of the financial liabilities terminated and the consideration paid (including transferred non-cash assets or
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new financial liability) is recognized in profit or loss for the current period.
(5) Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The
fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. The Company
uses the valuation technique when it is applicable under current conditions and there are enough available data and other
information to support and the technique should maximize the use of relevant observable. It chooses the inputs which are
consistent with the asset or liability's characteristics considered by market participants in the transaction of the relevant asset or
liability and makes the maximum use of relevant observable inputs. Unobservable inputs are used under the circumstance that the
relevant observable inputs cannot be obtained or not feasible.
(6) Test method and accounting treatment for impairment of financial assets
The Company assesses the expected credit losses of financial assets measured at amortized cost, financial assets (debt instruments)
measured at fair value and whose changes included in other comprehensive income and financial guarantee contracts by item or by
group.
The Company calculates the probability-weighted amount of the current value of the difference between the cash flows receivable
under the Contract and the cash flows expected to receive, and recognizes the expected credit loss, by taking into account all the
reasonable and well-founded information, including past events, current condition and forward-looking economic situation, and
weighting the risk of default.
If the credit risk of this financial instrument has been significantly increased upon initial recognition, the Company measures its loss
provision in accordance with the amount equivalent to the expected credit loss of the financial instrument throughout the duration;
if the credit risk of this financial instrument is not significantly increased upon initial recognition, the Company will measure the loss
provision of this financial instrument by the amount of its expected credit loss in the 12 months to come. The increased or reversed
amount of the loss provision resulting therefrom is included in the current profit or loss as the impairment loss or profit.
The Company recognizes the relative changes in the risk of default within the expected duration of financial instruments, and
assesses whether the credit risk of financial instruments has significantly increased since the initial recognition by comparing the
risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date. If the
financial instrument becomes overdue for more than 30 days, the Company believes that the credit risk of this financial instrument
has been significantly increased, unless there are concrete evidences that the credit risk of this financial instrument has not been
significantly increased upon initial recognition.
If the financial instrument carries low credit risk at the balance sheet date, the Company believes that the credit risk of this financial
instrument is not significantly increased upon initial recognition.
If there are objective evidences showing that a certain financial asset has been subject to credit impairment, the Company will
accrue impairment provision for this financial asset on the individual asset basis.
The Company will always measure the loss provision for the accounts receivable and contract assets generated by transactions
regulated by Accounting Standards for Enterprises No. 14 - Revenue (2017), whether they contain material financing compositions
or not, by the amount of the expected credit loss throughout the duration.
The Company will always measure the loss provision for the lease receivable by the amount of the expected credit loss throughout
the duration.
The Company shall write down the book balance of a financial asset directly if it no longer reasonably expects that the contract cash
flow of the financial asset can be recovered in whole or in part.
Classify the accounts receivable, and the expected credit loss ratio for each portfolio is as follows:
Portfolio Name Basis to Determine the Portfolio Accrued method
Portfolio one Consolidation scope and accounts receivable If there is objective evidence showing that it has been
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from related parties impaired, the impairment loss should be determined based
on the difference between the present value of the future
cash flow and its book value. Provision for bad debts shall be
made. If no impairment is found after testing, no provision
for bad debts shall be made.
The accounts receivable other than portfolio
Accrued based on the comparison table of the expected
Portfolio two one: portfolio based on credit risk features by
credit loss rate over the duration
aging
The bad debt provision method of portfolio two is adopted
Credit period Expected credit loss ratio (%)
Not overdue within the credit period 3
Overdue to less than 1 year 15
Overdue to 1-2 years 25
Overdue to 2-3 years 45
Overdue to 3-4 years 60
Overdue to 4-5 years 80
Overdue for more than 5 years 100
11. Inventory
(1) Classification and cost of inventory
Inventory is classified into: inventory goods, turnover materials, etc.
(2) Determination of cost
The weighted average method is applied when the inventory is issued.
(3) Basis for the determination of net realizable value and different type of inventories
On the balance sheet date, inventory should be measured at cost or net realizable value (whichever is lower). When the cost of
inventory is higher than its net realizable value, the Company shall make provision for inventory depreciation. Net realizable value
referred to the estimated selling price of inventory less the estimated cost to be incurred upon completion, the estimated selling
expense and related taxes.
Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, and held-for-sale raw materials,
during the normal course of production and operation, shall be determined by their estimated sales less the related selling expenses
and taxes; the net realizable value of material inventories, which need to be processed, during the normal course of production and
operation, shall be determined by the amount after deducting the estimated cost of completion, estimated selling expenses and
relevant taxes from the estimated selling price of finished goods; the net realizable value of inventories held for execution of sales
contracts or labor contracts shall be calculated on the ground of the contracted price. If an enterprise holds more inventories than
the quantity stipulated in the sales contract, the net realizable value of the exceeding part shall be calculated on the ground of
general selling price.
The inventory falling price reserves withdrawn shall be reversed within the amount withdrawn, and the reversed amount shall be
included in current profit or loss, if the net realizable value of an inventory is higher than its book value after the withdrawal due to
the disappearance of the factors that influence the writing-down of its value.
(4) Inventory system
The perpetual inventory system is adopted.
(5) Amortization of low-value consumables and packaging materials
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One-time write-off method is used for low-value consumables.
12. Contract assets
(1) Recognition methods and standards of contract assets
The Company shall show the contract assets or contract liabilities in the balance sheet in accordance with the relationship between
the performance of the contract obligations and the Customer payment. The Company shall list its right to receive consideration
due to the transfer of goods or services to the Customer (and such rights are subject to factors other than the passage of time) as
contractual assets. Contract assets and contract liabilities under the same contract shall be shown on a net basis. The Company’s
unconditional right (depending solely on the passage of time) to collect consideration from the Customer shall be shown separately
as a receivable.
(2) Determination method and accounting treatment for the expected credit loss of contract assets
For details of the method for determining the expected credit loss of contract assets and the accounting treatment, please refer to
Note V (10) 6. "Testing method and accounting treatment method of financial asset impairment".
13. Contract cost
Contract costs include contract performance costs and contract acquisition costs.
The Company recognizes the costs incurred for performing the contract and that not fall within the scope of inventories, fixed assets
or intangible assets as stipulated by related standards as an asset when the following conditions are met:
The cost is directly related to a current or anticipated contract.
The cost increases the Company’s future resources to perform obligations.
The cost is expected to be recovered.
The Company regards the incremental cost incurred to acquire the contract and that are expected to be recovered as contract
acquisition costs, and recognizes them as an asset.
Assets related to contract costs shall be amortized using the same basis as income recognition of goods or services related to the
asset. However, the Company shall include the amount in current profit or loss if the amortization period of the contract acquisition
cost is less than one year.
The Company shall draw an impairment provision for the excess part when the book value of an asset related to the contract cost is
higher than the difference between the following two items, and recognize it as an impairment loss of the asset:
1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
2. The costs expected to be incurred for the transfer of the relevant goods or services.
The Company shall reverse the impairment provision withdrawn and include it in current profit or loss if the impairment factors of
the previous period change and cause the aforementioned difference higher than the book value of the asset. However, the book
value of the asset after reverse shall not exceed the book value of the asset on the reverse date under the assumption that no
provision for the impairment is withdrawn.
14. Holding of the assets for sale
An asset whose book value is recovered mainly through the sale (including the exchange of non-monetary assets of a commercial
nature) rather than through the continuous use of a non-current asset or disposal group is classified as holding-for-sale.
A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria at the same
time:
1) Assets that are ready for immediate sale under the current circumstance in accordance with the practice of selling such assets or
disposal groups in similar transactions;
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2) Assets that are most likely to be sold, i.e. the Company has decided on a sale plan and has a firm commitment to purchase, and
the sale is expected to be completed within one year. If required by relevant provisions that selling shall only be made after
approved by the relevant competent authority or supervision department of the Company, such approval should have been
obtained.
For those classified as non-current assets holding for sale (excluding financial assets and deferred income tax assets) or disposal
assets, if book value is higher than the net amount after deducing sales expenses from fair value, the book value should be revised
and written down to net amount after deducing sales expenses from fair value. The amount written down shall be recognized as
assets impairment loss and included in current profit or loss. The impairment provision of assets holding for sale should be made.
15. Long-term equity investment
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement, and exists only when requiring the unanimous
consent of the parties sharing control before making decisions about the relevant activities of the arrangement. The Company
together with the other joint venture parties can jointly control over the investee and are entitled to the right of the net assets of
the investee, as the investee is joint venture of the Company.
Significant influence refers to the right to participate in the financial and business decisions of the invested entity, but the inability
to control or jointly control the formulation of policies. Where the Company can exercise significant influence over the investee, the
investee is an associate of the Company.
(2) Determination of initial investment cost
1) Long-term equity investment formed by business combination
For long-term equity investment in a subsidiary generated due to business combinations involving entities under common control,
the share of the book value in the consolidated financial statements of the ultimate controlling party on the date of combinations
shall be taken as the initial investment cost of the long-term equity investments. For difference between the initial cost of long-term
equity investment and the book value of the consideration paid, adjustments shall be made to the equity premiums in the capital
reserve. When the equity premiums in the capital reserve are not sufficient for write-down, the retained earnings shall be adjusted.
For long-term equity investment in a subsidiary generated due to business combinations involving entities not under common
control, the cost of the combination recognized on the date of combination shall be taken as the initial investment cost of the
long-term equity investments.
2) Long-term equity investment made by means other than business combination
The initial cost of a long-term equity investment obtained by cash payment shall be the purchase costs actually paid.
The initial cost of investment of a long-term equity investment obtained by means of issuance of equity securities shall be the fair
value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
1) Long-term equity investment calculated by cost method
Long-term equity investment in subsidiaries of the company is calculated by cost method, unless the investment meets the
conditions for holding for sale. except for the actual consideration paid for the acquisition of investment or the declared but not yet
distributed cash dividends or profits which are included in the consideration, investment gains are recognized as the Company'
shares of the cash dividends or profits declared by the investee.
2) Long-term equity investment calculated by equity method
Long-term equity investments of associates and jointly controlled entities are calculated using equity method. Where the initial
investment cost exceeds the investment, the difference between the share of the fair value of the investee’s identifiable net assets
shall be enjoyed and no adjustment shall be made to the initial investment cost of long-term equity investment; where the initial
investment cost is less than the investment, the difference between the share of the fair value of the investee’s identifiable net
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assets shall be enjoyed and be included in current profit or loss, and adjustments shall be made to the initial investment cost of
long-term equity investment.
The Company recognizes the investment income and other comprehensive income according to the shares of net profit or loss and
other comprehensive income realized by the investee which it shall be entitled or shared respectively, and simultaneously makes
adjustment to the book value of long-term equity investments; The book value of long-term equity investment shall be reduced by
attributable share of the profit or cash dividends for distribution declared by the investee. In relation to other changes of owner's
equity except for net profits and losses, other comprehensive income and profit distributions of the investee, the book value of
long-term equity investments shall be adjusted and included in owner’s equity.
When recognizing the amount of proportion of net profit or loss, other comprehensive income and other changes of owner’s equity,
in the investee which it entitles, fair value of the identifiable assets of the investee at the time when the investment is obtained shall
be used as basis, and adjustment shall be made to the net profit, other comprehensive income and others of the investee in
accordance with the accounting policies and accounting period of the Company.
The Company shall be liable for net loss incurred by the Company to the joint venture or associate, and shall write it down to zero
with the book value of the long-term equity investment and other long-term equity which substantially constitute net investment in
the joint venture or associate. Where a joint venture or associate later realizes net profits, the Company shall resume recognition of
its share of income after the share of income has made up for the unrecognized share of loss.
3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between its book value and the actual proceeds is included in the
current profits and losses.
Where a part of long-term equity investment that is measured under the equity method is disposed of, if the remaining part is still
measured under the equity method, the original other comprehensive income recognized under the equity method should be
recognized in proportion on the same basis as the investee directly disposes of relevant assets or liabilities, and the changes in other
comprehensive income should be transferred to the current profit or loss in proportion.
If the common control or significant impact on the investee is lost due to the disposal of equity investments, the original other
comprehensive income recognized by calculating equity investment under the equity method on the same basis as the investee's
direct disposal of related assets or liabilities when the equity method is not adopted. Other changes of the owner’s equity are all
transferred to the current profit and loss when the equity method is not adopted.
If the Company loses control over an investee due to the disposal of part of its equity investment and the remaining equity can be
used to exercise joint control or significant influence over the investee when some individual financial statements are prepared, the
equity method shall be used for accounting instead and the remaining equity shall be deemed to be accounted and adjusted by
using the equity method when it is acquired. The other comprehensive income recognized before the control over the investee is
acquired should be transferred in proportion on the same basis as the investee directly disposes of relevant assets or liabilities. The
changes in other comprehensive income under the equity method for measurement should be transferred the current profit or loss
in proportion. If the remaining equity cannot constitute joint control over or substantial influence on the investee, such remaining
equity shall be recognized as financial assets. The difference between the fair value on the day when the control is lost and the
carrying value should be recorded in the current profit or loss. The changes in other comprehensive income and owner’s equity
recognized before the control over the investee is acquired should be transferred in full.
The equity investment in the subsidiary is disposed of step by step by the Company through multiple transactions until the control
right is lost. If the foregoing transactions belong to a "package deal", the Group conducts accounting treatment by taking each
transaction as a transaction for disposal of subsidiaries and loss of control rights. The difference between the price of each disposal
before the control is lost and the carrying value of long-term equity investment related to the disposed equity is recognized in other
comprehensive income, and then transferred to the profit or loss of the current period when the control is lost. If it does not
constitute a "package deal", the Company should consider each of the transactions separately.
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16. Investment property
Measurement Mode of Investment Property
Measured by cost method
Depreciation or amortization methods
Investment property refers to the real estate held to generate rental income or capital appreciation, or both, including leased land
use rights, land use rights held for transfer after appreciation, and leased buildings (including buildings that are leased after
completion of self-construction or development activities and buildings in construction or development that are used for rental in
the future).
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the relevant economic benefits
are likely to flow in and the cost can be measured reliably. The book value of the replaced part is derecognized. Other subsequent
expenditures shall be included in current profit or loss at the time of occurrence.
The Company adopts the cost mode to measure the existing investment property. Investment property measured at cost - buildings
held for leasing shall adopt the same depreciation policy for fixed assets of the company, land use rights held for leasing shall adopt
the same amortization policy for the intangible assets.
17. Fixed assets
(1) Conditions for recognition of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for
administrative purposes; and have a service life of more than one accounting year. Fixed assets shall be recognized when the
following conditions are met at the same time:
1) The economic benefits related to the fixed asset are likely to flow into the company;
2) The cost of the fixed asset can be reliably measured.
Fixed assets are initially measured at cost (with the influence of expected disposal costs taken into consideration).
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the relevant economic benefits
are likely to flow in and the cost can be measured reliably. The book value of the replaced part is derecognized. Other subsequent
expenditures shall be included in current profit or loss at the time of occurrence.
(2) Methods for depreciation
Useful lives of
Category Depreciation method Residual Ratio Annual depreciation rate
depreciation
Housing and building Straight-line method 5-35 2.8-5 19.44-2.71
General Equipment Straight-line method 3-10 2.8-10 32.40-9
Special Equipment Straight-line method 5-10 2.8-5 19.44-9.5
Machinery and
Straight-line method 3-10 2.8-5 32.40-9.5
equipment
Transportation
Straight-line method 5-10 2.8-10 19.44-9
Equipment
Others Straight-line method 5-10 2.8-5 19.44-9.5
Fixed assets are depreciated by categories using the straight-line method, and the annual depreciation rates are determined by
categories based upon their estimated useful lives and their estimated residual values. For fixed assets with provision for
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impairment, the amount of depreciation shall be determined in future periods according to the book value after deducting the
provision for impairment and based on the usable life. Where the parts of a fixed asset have different useful lives or cause economic
benefits for the enterprise in different ways, different depreciation rates or depreciation methods shall apply, and each part is
depreciated separately.
(3) Disposal of fixed assets
Fixed assets being disposed of or not expected to generate economic benefits through use or disposal shall be derecognized. The
amount of income from the disposal, transfer, scrapping or damage of fixed assets after deducting its book value and related taxes
shall be included in the current profit and loss.
18. Construction in progress
Construction in progress is measured at the actual costs incurred. The actual cost includes construction costs, installation costs,
borrowing costs that meet the capitalization conditions, and other necessary expenditures incurred before the construction in
progress reaches its intended use status. When the construction in progress reaches its intended use status, it shall be transferred to
fixed assets according to budget, cost or actual contract cost of the construction project, and the depreciation of the fixed assets
shall be accrued according to fixed assets depreciation policy of the company. When the final account of completed project is issued,
the estimated cost shall be adjusted according to the actual cost.
19. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or production of assets
qualified for capitalization, the costs will be capitalized and included in the costs of the related assets. Other borrowing costs shall
be recognized as expense in the period in which they are incurred and included in profit or loss for the current period.
Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial
period of time for acquisition, construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of borrowing
costs, excluding the period in which capitalization of borrowing costs is temporarily suspended.
Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
1) Asset expenditures have been incurred, which include the expenditures in the form of cash payment, transfer of non-cash assets,
or assumption of interest-bearing debts for construction or production of assets eligible for capitalization;
2) Borrowing costs have been incurred;
3) The purchase and construction or production activities which are necessary to prepare the asset for its intended use or sale have
started.
Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset under acquisition and construction
or production ready for the intended use or sale.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of a
qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months; if the
interruption is a necessary step for making the qualifying asset under acquisition and construction or production ready for the
intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurred during such period shall
be recognized as profits and losses of the current period. When the acquisition and construction or production of the asset resumes,
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the capitalization of borrowing costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
Specific borrowings for the acquisition, construction or production of assets qualified for capitalization, borrowing costs of the
specific borrowings actually incurred in the current period minus the interest income earned on the unused borrowing loans as a
deposit in the bank or as investment income earned from temporary investment will be used to determine the amount of
borrowing costs for capitalization.
General borrowings for the acquisition, construction or production of assets qualified for capitalization, the to-be-capitalized
amount of interests on the general borrowing shall be calculated and determined by multiplying the weighted average asset
disbursement of the part of the accumulative asset disbursements minus the specifically borrowed loans by the capitalization rate
of the general borrowing used. The capitalization rate is calculated and determined based on the weighted average actual interest
rate of general borrowing.
During the period of capitalization, the exchange balance on the principals and interests of special foreign currency borrowings shall
be capitalized and shall be included in the cost of assets eligible for capitalization. The exchange balance on the principals and
interests of foreign currency borrowings other than the special foreign currency borrowings shall be included in current profit or
loss.
20. Intangible assets
(1) Valuation method, service life, impairment test
1) Method for valuation of intangible assets
1) It shall be initially measured at cost when the company obtains intangible assets；
The cost of purchased intangible assets, covering the purchase price, relevant taxes and fees, and other expenses directly
attributable to the intended use of the assets.
2) Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.
Intangible assets with a limited service life are amortized within the term of economic benefits for the enterprise. If it is impossible
to foresee the term, it shall be regarded as an intangible asset with uncertain service life and shall not be amortized.
2) Estimated service life of intangible assets with limited service life
Item Estimated useful lives Basis
Land use rights 30-50 years The number of years is indicated on the land
certificate
Computer Software 3-10 years Benefit period
Vehicle license plate 10 years Estimated service life
At the end of each year, the service life and amortization method of the intangible assets with a limited service life are reviewed.
3) Judgment basis for intangible assets with uncertain service life and procedures for reviewing their service life
According to relevant regulations of Australia, there is no stipulated term of use for the land use right after purchase, and it can be
used permanently. Therefore, the company recognizes the land without a specified use term as an intangible asset with uncertain
service life, for which no amortization is allowed.
At the end of each year, the service life of intangible assets with uncertain service life will be reviewed.
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(2) Accounting policy for internal R&D expenditure
The expenses for internal research and development projects of the Company are divided into expenses in the research phase and
expenses in the development phase.
Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or technological
knowledge.
Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercial production or use
in order to produce new or essentially-improved materials, devices, products, etc.
Specific condition for capitalizing expenditure during the development phase:
Expenses in the research phase are recorded into the profits and losses for the current period when they occur. Expenditure during
the development phase that simultaneously satisfies the following conditions shall be recognized as intangible assets. Otherwise
shall be included in current profit or loss:
1) It is technically feasible to complete the intangible asset so that it can be used or sold;
2) There is intention to complete the intangible asset for use or sale;
3) The means by which intangible asset generates economic benefits, including the ability to prove that there is a market for the
products produced with the intangible asset or the existence of a market for the intangible asset itself. Where the intangible asset is
to be used internally, its usefulness can be proved;
4) The company has sufficient technical, financial and other resources to support the development of such intangible assets, and
has the ability to use or sell such intangible assets;
5) The expenditure attributed to the development stage of the intangible asset can be reliably measured.
The R&D expenditures incurred shall be included in current profit or loss if it is impossible to distinguish expenditure during the
research phase and expenditure during the development phase.
21. Long-term asset impairment
Long-term assets, such as long-term equity investment, investment properties, fixed assets, construction in progress and
right-of-use assets that measured at cost, and intangible assets with limited service life, are tested for impairment if there is any
indication that an asset may be impaired on the balance sheet date. If the result of the impairment test indicates that the
recoverable amount of the asset is less than its book value, a provision for impairment and an impairment loss are recognized for
the amount by which the asset's book value exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset
impairment is determined and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of an
individual asset, the recoverable amount of a group of assets to which the asset belongs to is determined. A group of assets is the
smallest group of assets that is able to generate cash inflows independently.
Goodwill formed due to business combination, intangible assets with uncertain service life and intangible assets that have not yet
reached serviceable conditions, shall be tested for impairment at least at the end of each year, regardless of whether there is any
indication of impairment.
When the Company carry out impairment test to goodwill, the Company shall, as of the purchasing day, allocate on a reasonable
basis the book value of the goodwill formed by merger of enterprises to the relevant asset groups, or if there is a difficulty in
allocation, to allocate it to the sets of asset groups. 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 business combination.
For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill, if any evidence
shows that the impairment of asset groups or sets of asset groups related to goodwill is possible, an impairment test will be made
first on the asset groups or sets of asset groups not containing goodwill, thus calculating the recoverable amount and comparing it
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with the relevant book value so as to recognize the corresponding impairment loss. Asset group or combination of group assets
containing goodwill are tested for impairment and the book value and recoverable amount shall be compared. If the recoverable
amount is less than the book value, the amount of impairment loss shall be deducted and apportioned to the book value of
goodwill in asset group or combination of asset groups, before deducting to the book value of all other assets proportionally based
on the proportion of the book value of all assets other than goodwill in the asset group or combination of asset groups.
Once the above asset impairment loss is recognized, it will not be reversed in the subsequent accounting periods.
22. Long-term prepaid expenses
Long-term prepaid expenses are expenses which have occurred but will benefit over 1 year and shall be amortized over the current
period and subsequent periods. The long-term prepaid expenses of the company include scenic animals and plants, scenic road
signs, creation of costumes and props, expenditures for improvement of leased fixed assets, house decoration fees and long-term
rental fees.
(1) Amortization method
Long-term prepaid expenses are amortized evenly over the estimated benefit period
(3) Amortization period
Item Estimated useful lives Basis
Scenic animals and plants 5 years Benefit period
Scenic road signs 5 years Benefit period
Creation Costume Prop 5 years Benefit period
Expenditures for improvement of leased 3-20 years Benefit period
fixed assets
House decoration fee 5-10 years Benefit period
23. Contract liabilities
The Company shall show the contract assets or contract liabilities in the balance sheet in accordance with the relationship between
the performance of the contract obligations and the Customer payment. The Company’s obligation to transfer goods or provide
services to customers for which consideration has been received or receivable are presented as contractual liabilities. Contract
assets and contract liabilities under the same contract shall be shown on a net basis.
24. Employee remuneration
(1) Accountant arrangement method of short-term remuneration
During the accounting period when the staff provides service, the Company will recognize the short-term remuneration actually
incurred as liabilities, and the liabilities would be charged into current profits and loss or costs of assets.
The Company will pay social insurance and housing funds, and will make provision of trade union funds and staff education costs in
accordance with the requirements. During the accounting period when the staff provides service, the Company will determine the
relevant amount of employee benefits in accordance with the required provision basis and provision ratios.
The expenses on employee benefit incurred by the Company shall be included in the current profit or loss or related asset cost
based on the actual amount when actually incurred, and the non-monetary benefit shall be measured at its fair value.
(2) Accountant arrangement method of retirement benefit plan
1) Defined contribution plan (DCP)
The Company will pay basic pension insurance and unemployment insurance in accordance with the relevant provisions of the local
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government for the staff. During the accounting period when the staff provides service, the Company will calculate the amount
payable in accordance with the local stipulated basis and proportions which will be recognized as liabilities, and the liabilities would
be charged into current profits and loss or costs of assets. In addition, the Company joins in corporation annuity
plan/supplementary pension insurance fund approved by related state departments. The Company conducts payment to annuity
plan/ local social insurance institution according to certain proportion of employees’ wages and corresponding expenditures are
included in the current profit or loss or relevant asset costs.
2) Defined benefit plan
The welfare responsibilities generated from defined benefit scheme based on the formula determined by projected unit credit
method would be vested to the service period of the staff and charged into current profits and loss or costs of 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 the defined benefit plan. If there is a surplus in the defined
benefit plan, the company shall use the lower of the defined benefit plan surplus and the asset ceiling to measure the net assets of
the defined benefit plan.
All defined benefit plan obligations, including obligations expected to be paid within twelve months after the end of the annual
reporting period in which employees provide services, are based on market yield of treasury bond or high-quality corporate bond in
an active market that matches the date of the balance sheet, the period of defined benefit plan obligation and currency applied.
The service cost, net interest on net liabilities and net assets of the defined benefit plan are recorded in the current profit and loss
or related asset cost. The changes resulting from the re-measurement of net liabilities or net assets of the defined benefit plan are
recorded in other comprehensive income and shall not be rolled back to profit and loss in subsequent accounting periods. When the
original defined benefit plan is terminated, all the part originally recorded in other comprehensive income should be carried
forward to undistributed profit.
In the settlement of the defined benefit plan, the settlement gain or loss shall be recognized according to the difference between
the present value of the defined benefit plan obligation and the settlement price determined on the settlement date.
(3) Accountant arrangement method of termination benefits
Where the Company pays termination benefit to employees, the liabilities of employee remuneration generated by termination
benefit shall be recognized at the earlier of the following date and included in the current profit or loss: when the company cannot
unilaterally withdraw termination benefit provided by labor relationship termination plan or layoff proposal; when the Company
recognizes costs or expenses related to a restructuring of the payment of termination benefits.
25. Estimated liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities provided that they satisfy the following
conditions:
1) The obligation is the current obligation of the company;
2) The fulfillment of this obligation is likely to result in the outflow of economic benefits from the Company;
3) The amount of the obligation can be reliably measured.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related present
obligation.
Factors pertaining to a contingency such as risk, uncertainties, and time value of money shall be taken into account as a whole in
reaching the best estimate. Where the effect of the time value of money is material, the best estimate shall be determined by
discounting the related future cash outflow.
Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a third party, the
reimbursement is separately recognized as an asset when it is virtually certain that the reimbursement will be received. The amount
recognized for the reimbursement is limited to the book value of the estimated liability.
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On the balance sheet date, the Company shall review the book value of the estimated liabilities, and shall adjust the book value on
the basis of the current best estimate if there is conclusive evidence showing the book value cannot reflect the current best
estimate.
26. Share-based payment
The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on the basis of equity
instruments granting or bearing for the acquisition of service from its employees or other parties. The company's share based
payment is divided into the share payment settled in equity and the share based payment settled in cash.
(1) The share payment settled in equity and equity instruments
As to an equity-settled share-based payment in return for services of employees, calculation will be based on the fair value of the
equity instrument granted to the employees. Equity instruments vested immediately after the date of grant will be included in the
relevant cost or expense based on its fair value on the date of grant, and the capital reserve will be increased accordingly. For equity
instruments to be vested after completing the service during the waiting period after the date of grant or meeting regulated
performance conditions, the Company shall include the services obtained in the current period in relevant costs or expenses and
increase capital reserves accordingly on each balance sheet date during the waiting period on the basis of the best estimate of the
number of viable equity instruments to be vested and the fair value on the grant date.
If the equity instrument is cancelled during the waiting period after the date of grant, the Company will treat the cancellation of the
equity instrument as accelerated vest, include the amount to be recognized in the remaining waiting period in the current profit or
loss, and recognize the capital reserves simultaneously. However, if new equity instruments are vested and they are verified at the
vesting date of new equity instrument as alternatives vested to canceled equity instruments, the treatment on the new equity
instrument is in conformity with the modified treatment on disposal of equity instrument.
27. Revenue
Accounting policies for revenue recognition and measurement
(1) Accounting policies for revenue recognition and measurement
The Company has fulfilled its contractual obligation to recognize income when the Customer obtains control over the relevant goods
or services. Obtaining control over related goods or services means to be able to dominate the use of the goods or services and
obtain virtually all economic benefits from it.
Where the Contract contains the performance of two or more obligations, the Company shall, on the commencement date of the
Contract, apportion the transaction price to each individual performance obligation on the basis of the relative proportion of the
individual selling price of the goods or service committed by each individual performance obligation. The Company shall measure its
income on the basis of the transaction price apportioned to each individual performance obligation.
The transaction price refers to the amount of consideration the Company is expected to be entitled to receive for the transfer of
goods or services to the Customer, excluding payments received on behalf of third parties and the amounts expected to be refunded
to the Customer. The Company determines the transaction price in accordance with Contract terms and by taking into consideration
its past practices. In determining the transaction price, it takes into consideration the impact of variable consideration, material
financing elements in the Contract, non-cash consideration, consideration payable to customers and other factors. The Company
determines the transaction price that includes the variable consideration at an amount not exceeding the amount of accumulated
recognized income which is not likely to be materially reversed when the relevant uncertainty is eliminated. Where there are
material financing components in the Contract, the Company shall determine the transaction price on the basis of the amount
payable based on the assumption that the Customer pays in cash upon obtaining control over the goods or services, and shall
amortize the difference between the transaction price and the Contract consideration by effective interest method during the
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Contract period. It shall be deemed as fulfilling performance obligation within a certain period of time if one of the following
conditions is satisfied. Otherwise, it shall be deemed as fulfilling performance obligation at a certain point in time:
The Customer obtains and consumes the economic benefits arising from the Company’s performance of obligations at the same
time of that the Company perform its obligations.
The Customer can control the goods under construction during the process that the Company perform its obligations.
The product produced by the Company during the performance of its obligations is irreplaceable in use, and the Company shall be
entitled to receive payment for the accumulated part of the performance completed so far during the whole Contract period.
For obligations performed within a certain period of time, the Company shall recognize income on the basis of the performance
progress during that period, except when the performance progress cannot be reasonably determined. The Company will adopt
output method or input method to determine the performance progress by taking the nature of the goods or services into
consideration. Where the performance progress cannot be reasonably determined and the costs incurred are expected to be
compensated, the Company shall recognize income on the basis of the costs incurred until the performance progress can be
reasonably determined.
For obligations performed at a certain point of time, the Company recognizes income at the point when the Customer obtain
control over relevant goods or services. The Company takes the following indications into consideration when determining whether
the Customer has obtained control over relevant goods or services:
The Company is entitled to collect payment in respect of the goods or services immediately, i.e. the Customer is obliged to make
payment in respect of the goods or services immediately.
The Company has transferred legal ownership of the goods to the Customer, i.e. the Customer has legal ownership of the goods.
The Company has physically transferred the goods to the Customer, i.e. the Customer has physically possessed the goods.
The Company has transferred the principal risks and rewards in the ownership of the goods to the Customer, i.e. the Customer has
obtained the principal risks and rewards in the ownership of the goods.
The Customer has received the goods or services, etc.
(2) The specific accounting policies related to the company's main activities that generate revenue are described as follows:
1) The principle for confirmation of ticket sales revenue
The tourists, after buying the ticket and checking in through the gate, shall have the right to visit the scenic spot and watch the live
performance. When the ticket amount has been collected or the right to receive payment has been obtained, the revenue should be
generated.
2) The principle for confirmation of e-commerce sales revenue
The economic benefits from the tickets, based on the ratio of profits sharing agreed by and between the company and each of
scenic spots, hotels or travel agencies, are expected to have flowed into the parties concerned upon the orders are generated and
the tourists have entered the park or checked in. When the ticket amount has been collected or the right to receive payment has
been obtained, the revenue should be generated.
3) Principle for confirmation of the revenue from design planning fee
Design and planning are to provide a package of services for other scenic spots and performance projects, including scenic spot
design and planning, theater design and planning, performance directing, plan for opening, marketing, follow-up quality
improvement and other designs and services agreed in the agreement. The revenue shall be recognized, when the company
completes the phased design, planning and upgrading according to the requirements of the project progress, and submits the
phased results to the client and obtains its confirmation indicating that the company has completed the service of the stage.
Follow-up business management: After the relevant services have been provided, the service revenue shall be collected according
to the results as agreed in the contract. The income shall be recognized in the current period of service provided.
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28. Government grants
(1) Type
Government grants refer to the monetary or non-monetary assets obtained free of charge by the company from the government.
They are divided into government grants related to assets and government grants related to revenue.
Government grants related to assets refer to government grants acquired by the Company for the purpose of purchasing or
constructing or otherwise forming long-term assets. Government grants related to revenue refer to the government grants other
than those related to assets.
(2) Confirmation of time point and accounting treatment
The specific standards for government grants related to assets are: The construction of the assets granted to enterprises.
Time for confirming the government grants related to assets: the relevant assets reach the intended use state
Accounting treatment of the government grants related to assets: They shall be recognized as deferred income when obtained. After
the relevant assets reach the intended use state, they shall be recognized as current profits and losses in installments according to
the method of average amortization of asset service life. For those assets related to daily activities of the company, they shall be
included in other income. For those assets that are not related, they shall be included in non-operating income;
The specific standards for government grants related to revenue are: The expenses or losses of the compensated enterprise
Where the government documents fail to specify the recipient of grants, the company shall classify the government grants as assets
related or income related in accordance with the basis below: The government grants as a whole shall be classified as government
grants related to revenue.
The time of the confirmation of government grants related to revenue: Related expenses or losses occur.
Accounting treatment of government grants related to revenue: Those used to compensate relevant costs or losses of the company
in subsequent periods, shall be recognized as deferred income when obtained. They shall be included in the current profit and loss
when related costs or losses are confirmed. For those assets related to daily activities of the company, they shall be included in
other income. For those assets that are not related, they shall be included in non-operating income; For those assets used to
compensate related costs or losses incurred of the company, they shall be directly included in the current profit and loss when
obtained. For those assets related to daily activities of the company, they shall be included in other income. For those assets not
related, they shall be included in non-operating income.
29. Deferred income tax assets/liabilities
Income tax includes current income tax and deferred income tax. The Company will include current income tax and deferred income
tax in the current profit or loss, except for income tax arising from business combination and transaction or event directly included
in the owners’ equity (including other comprehensive income).
Deferred income tax assets and deferred income tax liabilities shall be calculated and recognized on the basis of the difference
(temporary difference) between the tax basis of the assets and liabilities and their book value.
Deferred income tax assets are recognized to the extent that it is probable that future taxable profits will be available against which
deductible temporary differences can be utilized. For deductible losses and tax credits that can be reversed in the future period,
deferred tax assets shall be recognized to the extent that it is probable that taxable profit will be available in the future to offset the
deductible losses and tax credits.
Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporary difference.
Special circumstances in which deferred income tax assets or deferred income tax liabilities are not recognized include:
Initial recognition of goodwill;
Transaction or event that is not a business combination and would not affect accounting profit and taxable income (or deductible
loss) at the time of occurrence.
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For taxable temporary differences related to investments in subsidiaries, associates and joint ventures, deferred income tax liability
is recognized, unless the Company can control the timing of reversal of such temporary differences and such temporary differences
are not likely to be reversed in the foreseeable future. For deductible temporary differences related to the investments of
subsidiaries, associates and joint ventures, deferred tax asset is recognized when the temporary differences are likely to be reversed
in the foreseeable future and the taxable income amount used to offset the deductible temporary differences is likely to be
obtained in the future.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be, as stipulated by tax law,
measured by the applicable tax rate of the period of expected recovery of the relevant assets or settlement of the relevant
liabilities.
On the balance sheet date, the Company reviews the book value of the deferred income tax assets. The book value of the deferred
income tax asset will be written down if sufficient taxable income is not likely to be obtained to offset the benefit of the deferred
income tax asset in the future period. The write-down amount will be reversed when sufficient taxable income is likely to be
obtained.
After granted the legal rights of net settlement and with the intention to use net settlement or obtain assets and repay debt at the
same time, the net amount after offsetting its current income tax assets and current income tax liabilities shall be recorded.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are presented in net amount after
set-off when both of the following conditions are satisfied:
The taxpayer has the legal right to settle the current income tax assets and current income tax liabilities on a net basis;
Deferred income tax assets and deferred tax liabilities are related to the income tax to be paid by the same entity liable to pay tax
to the same tax collection and management authority or related to different entities liable to pay tax. The relevant entity liable to
pay tax is intended to apply net settlement of current income tax assets and liabilities or, at the same time, obtain assets and repay
debt in every future period that deferred income tax assets and liabilities with importance would be reversed.
30. Lease
Accounting policies as of Friday, January 1, 2021
Lease refers to a contract under which a lessor assigns the right to use an asset to a lessee for consideration, for a defined period. At
the commencement date of the contract, the Company assesses whether the contract is a lease or contains a lease. A contract is a
lease or contains a lease if one party to the contract conveys the right to control the use of one or more identified assets for a
specified period of time in exchange for consideration.
If a contract contains multiple separate leases, the Company splits the contract and accounts for each separate lease independently.
If a contract contains both lease and non-lease components, the lessor and the lessee should split the lease and non-lease
components.
If any of rent reduction, deferred payment and other rent concessions directly triggered by the COVID-19 under the existing leases
satisfies all following conditions, the Company should apply a simplified approach to all leases by neither assessing whether there is
a license change nor assessing the lease classification:
The lease consideration after concession is reduced or basically unchanged compared with that before concession, whereby
the undiscounted lease consideration may apply or the lease consideration may be discounted at the rate before concession;
The concession only applies to the payable lease payment before June 30, 2022, whereby any increase in the payable lease
payment after June 30, 2022 will not affect the satisfaction of this condition, and any decrease in the payable lease payment after
June 30, 2022 will be excluded by this condition; and
No major change occurs in other terms and conditions of the leases after considering all qualitative and quantitative factors.
(1) The Company as lessee
1) Right-of-use assets
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Except for short-term leases and leases of low value assets, the Company recognizes right-of-use assets at the commencement date
of the lease. The right-of-use assets shall be initially measured at cost. The cost includes:
Initially measured amounts of lease liabilities;
Any lease payments made at or before the lease commencement date, less the relative amount of any lease incentives
enjoyed if there are lease incentives;
Any initial direct costs incurred by the Company;
An estimate of costs to be incurred by the Company in dismantling and removing the underlying assets, restoring the site on
which it is located or restoring the underlying asset to the condition required by the terms of the lease, excluding the costs
attributable to the production of inventory.
The Company will subsequently accrue the depreciation of right-of-use assets under the straight-line method. Where it is
reasonably determined that the ownership of the leased assets will be acquired at the end of the lease term, the depreciation is
calculated within the remaining useful life of the leased assets; otherwise, where it is impossible to reasonably determine the
ownership of the leased asset at the expiration of the lease term, the depreciation is calculated within the shorter period of the
lease term and the remaining useful life of the leased asset.
The Company determines whether right-of-use assets are impaired and performs accounting treatment for recognized impairment
loss according to “V (21) Impairment of Long-term Assets” in the notes.
2) Leasing liabilities
Except for short-term leases and leases of low value assets, the Company recognizes lease liabilities at the commencement date of
the lease. The Company initially measures the lease liability at the present value of lease payments that are unpaid. Lease payment
includes:
The fixed amount (including substantial fixed amount) less the relative amount of any lease incentives enjoyed if there are
lease incentives;
The index- or ratio-based variable lease payment amount;
The estimated amount to be paid according to the residual value of guarantee provided by the Company;
The exercise price of the call option, provided that the Company reasonably determines to exercise the option;
The payment made by the lessee for exercising the option to terminate the lease, provided that it is reflected in the lease
period that the Company will exercise the option to terminate the lease.
The Company uses the interest rate implicit in the lease as discount rate, and adopts the incremental borrowing rate of the
Company if the interest rate implicit in the lease is not readily determinable.
The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixed periodic interest rate and
includes it in current profits and losses or related asset costs.
Variable lease payments not included in the measurement of lease liabilities shall be included in the current profits and losses or
related asset costs when they are actually incurred.
The Company should re-measure the lease liability and adjust the right-of-use asset, if any of the following events occur after the
lease commencement date. If the lease liability is required to be further written down after the carrying value of the right-of-use
asset is written down to zero, the difference should be recorded in the current profit or loss.
In the case of any change to the Company’s result of evaluation on the option of purchase, renewal, or termination, or in the
case that the actual exercise of the aforementioned options is inconsistent with the original evaluation result, the lease liability shall
be re-measured by the Company according to the changed lease payment and the present value calculated based on the modified
discount rate;
In the case of any change to substantial fixed payments, estimated amount to be paid according to the residual value of
guarantee or the index or rate for calculating the lease payment, the Company will re-measure the lease liability according to the
changed lease payment and the present value calculated as per the original discounting rate. However, if a change lease payment
amount derives from a change in a floating interest rate, the present value should be calculated as per the modified discount rate.
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3) Short-term leases and leases for low-value assets
The Company chooses not to recognize right-of-use assets and lease liabilities of short-term leases and leases for low-value assets,
and includes the relevant lease payments in the relevant asset costs or the current loss and profit under the straight-line method in
all periods of the lease term. The short-term lease refers to the lease that does not contain the call option and has a lease period of
no more than 12 months from the lease commencement date. The lease for low-value assets refers to the lease under which a
brand-new individual lease asset has a low value. If the Company sublets or is expected to sublet a lease asset, the original lease is
not construed as a lease for low-value assets.
4) Change of lease
When a lease changes and the following conditions are satisfied, the Company will treat such change as an independent lease:
The change expands the lease scope by adding the right to use one or more additional leased assets;
The increased consideration is in line with the price of the expanded lease scope part as adjusted for the contract change.
If a lease change is not treated as an independent lease, at the effective date of the lease change, the Company will re-apportion
the changed contract price, re-determine the lease term, and re-measure the lease liability according to the changed lease payment
and the present value calculated as per the original discounting rate.
If the lease change narrows the lease scope or shortens the lease term, the Company will reduce the carrying value of the
right-of-use assets accordingly, and include the gain or loss from the terminated or partially terminated lease in the profit or loss of
the current period. If any other lease change triggers the re-measurement of the lease liability, the Company will adjust the carrying
value of the right-of-use assets accordingly.
5) Rent concessions arising from the COVID-19
Where a simplified approach is used for rent concessions arising from the COVID-19, the Company will not assess whether there is
any lease change, but continue to calculate the interest expenses on lease liabilities at the discount rate consistent with that before
concessions and record them in the current profit or loss and accrue depreciation of the right-of-use assets under the same method
as before concessions. Upon occurrence of a rent concession, the Company will take the reduced rent as the variable lease payment.
When the Company reaches a concession agreement or otherwise is discharged from the original rent payment obligation, the
relevant asset costs or expenses should be written down by the undiscounted amount or the amount discounted at the discounted
rate before concessions. If the payment of rent is deferred, the Company should write down the lease liabilities previously
recognized at the time of actual payment.
For short-term leases and leases for low-value assets, the Company shall continue to calculate the original contract rents under the
same method adopted before concessions and record them in the relevant asset costs or expenses. In case of a rent concession, the
Company should treat the reduced amount as variable lease payment, and the asset cost or expense should be written down during
the concession period. If the payment of rent is deferred, the Company should recognize the rent payable during the original
payment period as the account payable, and the account payable recognized previously should be written down at the time of
actual payment.
(2) The Company as lessor
The Company should classify a lease into finance lease or operating lease on the lease commencement date. A finance lease is a
lease that transfers substantially all the risks and rewards incidental to ownership of a lease asset, regardless of whether the
ownership is ultimately transferred or not. Operating leases refer to leases other than finance leases. Where the Company is a
sub-lessor, the Company should, based on the right-of-use asset arising from the original lease, classify the sub-lease.
1) Accounting treatment for operating lease
During each period of the lease term, the Company should recognize the lease receipts arising from operating lease in rental income
by the straight-line method. The initial direct expenses related to an operating lease incurred by the Company are capitalized,
apportioned during the lease term on the same recognition basis as rental income, and included into the current profit and loss.
Variable lease payments not included in the measurement of lease collections shall be included in the current profits and losses at
the time of actual occurrence. If an operating lease changes, the Company will, from the effective date of the change, considers the
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change as a new lease, and the lease payment received in advance or receivable related to the lease before the change as new lease
payments.
2) Accounting treatment of financial lease
At the commencement date of the term of the finance lease, the Company recognizes finance lease receivables and derecognizes
finance lease assets. When the Company makes initial measurement of finance lease receivables, the net investment in the lease is
measured as the carrying value of the finance lease receivables. The net lease investment is the sum of the unsecured residual value
and the present value of the lease payment receivable at the lease commencement date discounted by the interest rate implicit in
the lease.
The Company measures and recognizes the interest income of each period within the lease term according to the fixed periodic
interest rate. The de-recognition and impairment of finance lease receivables should be treated according to “V (10) Financial
Instruments” in the notes.
Variable lease payments not included in the measurement of lease net investment shall be included in the current profits and losses
at the time of actual occurrence.
When a financial lease changes and the following conditions are satisfied, the Company will treat such change as an independent
lease:
The lease change expands the lease scope by adding the right to use one or more additional leased assets;
The increased consideration is in line with the price of the expanded lease scope part as adjusted for the contract change.
If a finance lease change is not treated as an independent lease, the Company will treat the changed lease as follows:
Assuming that the change takes effective at the lease commencement date, and the lease is classified into operating leases,
the Company will, from the effective date of the lease change, consider the change as a new lease and the net lease investment
prior to the effective date of the lease commencement as the carrying value of the leased asset;
Assuming that the change takes effective at the lease commencement date, and the lease is classified into finance leases, the
Company will apply the provisions of “Note V (10) Financial Instruments” concerning the modification or re-negotiation of contract.
3) Rent concessions arising from the COVID-19
For the operating leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shall
continue to include the original contract rents in the lease income under the same method adopted before concessions. In case of a
rent concession, the Company should treat the reduced amount as variable lease payment, and the lease income should be written
down during the concession period. If the collection of rent is deferred, the Company should recognize the rent receivable during
the original collection period as the account receivable, and the account receivable recognized previously should be written down at
the time of actual collection.
For the finance leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shall
continue to use the same discount rate applied before concessions to calculate the interests and recognize them in the lease income.
In case of a rent concession, the Company should treat the reduced amount as a variable lease payment. When the Company
reaches a concession agreement or otherwise waives the original rent collection right, the originally recognized lease income should
be written down by the undiscounted amount or the amount discounted at the discounted rate before concessions. Any amount
that cannot be written down should be included in the investment income, and the finance lease receivable should be adjusted
accordingly. If the collection of rent is deferred, the Company should write down the previously recognized the finance lease
receivable at the time of actual collection.
(3) Leaseback transaction
According to the principle stated in “V (25) Revenue” in the notes, the Company assesses and determines whether the asset transfer
in the leaseback transaction is a sale transaction.
1) As lessee
If the asset transfer in the leaseback transaction is a sale transaction, the Company as the lessee should measure the right-of-use
asset formed by leaseback at the part of the carrying amount of the original asset related to the right of use acquired by leaseback,
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and should only recognize the gain or loss for the right transferred to the lessor. If the asset transfer in the leaseback transaction is
not a sale transaction, the Company as the lessee should still recognize the transferred asset and recognize a financial liability equal
to the transfer income. See “V (10) Financial Instruments” in the notes for details about accounting treatment of financial liabilities.
2) As lessor
If the asset transfer in the leaseback transaction is a sale transaction, the Company as the lessor should measure the purchase of
assets, and should measure the lease of assets according to the policy stated in the aforementioned “2. The Company as Lessor”. If
the asset transfer in the leaseback transaction is not a sale transaction, the Company as the lessor should not recognize the
transferred asset but should recognize a financial asset equal to the transfer income. See “V (10) Financial Instruments” in the notes
for details about accounting treatment of financial assets.
Accounting policy prior to Friday, January 1, 2021
Leases are classified into finance leases and operating leases. A finance lease is a lease that transfers substantially all the risks and
rewards incidental to ownership of an asset. Operating leases refers to leases other than finance leases.
If any of rent reduction, deferred payment and other rent concessions directly triggered by the COVID-19 under the existing leases
satisfies all following conditions, the Company should apply a simplified approach to all leases by neither assessing whether there is
a license change nor assessing the lease classification:
The lease consideration after concession is reduced or basically unchanged compared with that before concession, whereby
the undiscounted lease consideration may apply or the lease consideration may be discounted at the rate before concession;
The concession only applies to the payable lease payment before Wednesday, June 30, 2021, whereby any increase in the
payable lease payment after Wednesday, June 30, 2021 will not affect the satisfaction of this condition, and any decrease in the
payable lease payment after Wednesday, June 30, 2021 will be excluded by this condition; and
No major change occurs in other terms and conditions of the leases after considering all qualitative and quantitative factors.
(1) Accounting treatment of operating leases
1) The lease fee paid by the company for operating lease of assets shall be included in current expenses by amortizing on a
straight-line basis during the entire lease period without deducting the rent-free period. Initial direct costs that are attributable to
an operating lease incurred by the Company are charged to current profit and loss.
When the lesser bears the lease related expenses which should be undertaken by the Company, the Company shall deduct this part
of expense from the rent and amortize the net amount over the lease term.
For the operating leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shall
continue to calculate the original contract rents under the same method adopted before concessions and record them in the
relevant asset costs or expenses. In the case of a rent concession, the Company should treat the reduced amount as contingent rent,
and the rent should be included in the profits and losses during the concession period. If the payment of rent is deferred, the
Company should recognize the rent payable during the original payment period as the account payable, and the account payable
recognized previously should be written down at the time of actual payment.
2) The lease fee charged by the company for leasing its assets shall be recognized as leasing income by amortizing on a straight-line
basis during the entire lease period without deducting the lease-free period. The initial direct fee related to the leasing transactions
paid by the Company shall be charged to current expenses; if the mount is significant, it shall be capitalized and charged to current
income evenly on the same basis as the leasing income is recognized over the lease term.
When the Company bears the lease related expenses which should be undertaken by the lessee, the Company shall deduct this part
of expense from the rent income, and amortize the net amount over the lease term.
For the operating leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shall
continue to include the original contract rents in the lease income under the same method adopted before concessions. In case of a
rent concession, the Company should treat the reduced amount as contingent rent, and the lease income should be written down
during the concession period. If the collection of rent is deferred, the Company should recognize the rent payable during the original
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collection period as the account receivable, and the account receivable recognized previously should be written down at the time of
actual collection.
31. Segmental reporting
The company determines the operating segment based on the internal organizational structure, management requirements, and
internal reporting system. The segmental reporting is confirmed on operating segment basis, and segment information shall be
disclosed.
Operating segment refers to the component within the Company that meets the following conditions at the same time: (1) The
component can generate income and expenses in daily activities; (2) The management of the Company can regularly evaluate the
operating results of such component so as to determine the allocation of resources to it and evaluate its performance; (3) The
Company can obtain the accounting information of the component, such as the financial status, operating results and cash flow etc.
If two or more operating segments have similar economic features and meet certain conditions, they can be combined into one
operating segment.
32. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ Applicable □ Not applicable
Content and Reasons for Change in
Approval process Notes
Accounting Policies
The adjustment by the Company as a
The 10th meeting of the 7th Board of
lessee for operating leases existing before
Directors
the initial implementation date
(1) Implementation of "Accounting Standards for Business Enterprises Interpretation No. 21 – Lease (amended in 2018)”
The Ministry of Finance issued the amended Accounting Standard for Business Enterprise No. 21 – Lease in 2018 (“New Lease
Standards”) This Company has implemented the New Lease Standards since January 1, 2021. According to the amended standards,
for existing contracts prior to the initial implementation date, the Company chooses not to re-evaluate whether it is a lease or it
contains a lease on the initial implementation date.
The Company acts as the lessee
According to the cumulative impact of initial implementation of the new lease standards, the Company adjusts retained earnings at
the beginning of the initial implementation year of the New Lease Standards and the amount of other related items in the financial
statements, and does not adjust the information of comparable period.
For the operating leases existing before the initial implementation date, at the initial implementation date, the Company measures
the lease liability according to the present value discounted by the incremental loan interest rate as at the first implementation date
based on the remaining lease payment amount, and should choose one of the following two methods to measure the right-of-use
assets for each lease:
If the carrying value calculated under the New Lease Standard is used since the lease commencement date, the Company
should use the incremental loan interest rate of the Company as at the initial implementation date as the discount rate.
The amount should be equal to the amount of lease liabilities, and necessary adjustment should be made based on the
prepaid rent.
For the operating leases existing before the initial implementation date, in addition to the above methods, the Company should
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choose one or more of the following simplified methods for each lease:
1) Treat the lease completed within 12 months after the initial implementation date as the short-term lease;
2) When measuring lease liabilities, use the same discount rate for the leases with similar characteristics;
3) Exclude the initial direct expense from the measurement of right-of-use assets;
4) Where a renewal or termination option exists, determine the lease period according to the actual exercise and other
developments before the initial implementation date;
5) As a replacement of impairment test of right-of-use assets, according to “III (XXIV) Estimated Liabilities” in the notes, evaluate
whether the contract including a lease is a loss contract before the initial implementation date, and adjust the right-of-use assets
according to the loss reserve amount recorded in the balance sheet before the initial implementation date; and
6) For lease changes occurring before the initial implementation date, no retroactive adjustment should be made, and the New
Lease Standard should apply according to the final arrangement of such lease changes.
For the finance leases existing before the initial implementation date, at the first implementation date, the Company should
measure the right-of-use assets and lease liabilities respectively according to the original carrying value of the finance lease assets
and the finance lease payable.
The Company acts as the lessor
For the subleases which are classified into operating leases at the effective date and are surviving after the effective date, the
Company re-values them, based on the remaining lease term and the terms and conditions of the original leases and the subleases
at the effective date, as well as re-classifies them according to the provisions of the New Lease Standards. If a sublease is
re-classified as a finance lease, the Company should treat it as a new finance lease.
Except for subleases, the Company should not be obligated to adjust its lease as a lessor according to the New Lease Standard. The
Company starts using the New Lease Standard at the initial implementation date.
The main impacts of the implementation of New Lease Standards on financial statements are as follows:
Content and Reasons for Affected Amount of Balance on Friday, January 1,
Change in Accounting Approval process Statements Affected 2021
Policies Consolidated Subsidiaries Parent company
Right-of-use Assets 526,000,589.97
The adjustment by the
The 10th Lease Liabilities 390,537,511.61
Company as a lessee for
meeting of the Non-current Liabilities Due within 1
operating leases existing 23,188,817.38
7th Board of Year
before the initial
Directors Prepayments -3,627,471.97
implementation date
Long-term unamortized expenses -108,646,789.01
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustments to related items of financial statements at the beginning of the current year upon initial
implementation of the new lease standards in 2021
√ Applicable □ Not applicable
Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
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Unit: RMB
Item Thursday, December 31, 2020 Friday, January 1, 2021 Adjusted amount
Current Assets:
Cash and Bank Balances 1,337,776,253.98 1,337,776,253.98
Deposit Reservation for
Balance
Loans to Banks and
Other Financial Institutions
Trading Financial Assets 335,217,557.68 335,217,557.68
Derivative Financial
Assets
Notes receivable
Accounts receivable 5,887,012.36 5,887,012.36
Receivables Financing
Prepayments 21,934,226.54 18,306,754.57 -3,627,471.97
Premium Receivable
Reinsurance Accounts
Receivable
Reinsurance Contract
Reserves Receivable
Other Receivables 50,524,990.69 50,524,990.69
Including: interest
receivable
Dividends
Receivable
Buying Back the Sale of
Financial Assets
Inventory 13,424,146.50 13,424,146.50
Contract Assets
Holding for-sale assets
Non-current Assets Due
within 1 Year
Other Current Assets 148,641,404.47 148,641,404.47
Subtotal of Current Assets 1,913,405,592.22 1,909,778,120.25 -3,627,471.97
Non-current Assets:
Granting of loans and
advances
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Investment in Creditor's
Rights
Investment in Other
Creditor's Rights
Long-term Receivables
Long-term Equity
1,534,539,625.11 1,534,539,625.11
Investment
Investment in Other
224,266,596.74 224,266,596.74
Equity Instruments
Other Non-current
Financial Assets
Investment Property
Fixed Assets 2,508,754,929.16 2,508,754,929.16
Projects under
771,871,563.73 771,871,563.73
Construction
Productive Biological
Assets
Oil and gas assets
Right-of-use Assets 526,000,589.97 526,000,589.97
Intangible Assets 1,880,031,922.56 1,880,031,922.56
Development
Expenditure
Goodwill 11,655,794.87 11,655,794.87
Long-term unamortized
323,741,176.89 215,094,387.88 -108,646,789.01
expenses
Deferred Income Tax
18,485,803.52 18,485,803.52
Assets
Other Non-current
8,589,826.26 8,589,826.26
Assets
Subtotal of Non-current
7,281,937,238.84 7,699,291,039.80 417,353,800.96
Assets
Total Assets 9,195,342,831.06 9,609,069,160.05 413,726,328.99
Current Liabilities:
Short-term loan
Borrowings from the
Central Bank
Borrowings from Banks
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and Other Financial
Institutions
Transactional financial
liabilities
Derivative Financial
Liabilities
Notes Payable
Accounts Payable 372,476,464.69 372,476,464.69
Received Prepayments 12,888,689.05 12,888,689.05
Contract liabilities 188,550,237.52 188,550,237.52
Financial Assets Sold for
Repurchase
Deposit Taking and
Interbank Deposit
Receiving from
Vicariously Traded Securities
Receiving from
Vicariously Sold Securities
Payroll payable 18,817,804.74 18,817,804.74
Tax Payable 19,869,808.49 19,869,808.49
Other Payables 65,149,971.79 65,149,971.79
Including: interest
payable
Dividends
Payable
Service Charge and
Commission Payable
Reinsurance Accounts
Payable
Holding for-sale
liabilities
Non-current Liabilities
12,426,708.33 35,615,525.71 23,188,817.38
Due within 1 Year
Other Current Liabilities 3,513,902.08 3,513,902.08
Subtotal of Current Liabilities 693,693,586.69 716,882,404.07 23,188,817.38
Non-current Liabilities:
Insurance Contract
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Reserves
Long-term loan 282,000,000.00 282,000,000.00
Bonds Payable
Including: Preferred
Stocks
Perpetual
Bonds
Lease Liabilities 390,537,511.61 390,537,511.61
Long-term Payables
Long-term payroll
payable
Expected Liabilities
Deferred Income 387,619,860.41 387,619,860.41
Deferred Income Tax
96,769,220.18 96,769,220.18
Liabilities
Other Non-current
Liabilities
Subtotal of Non-current
766,389,080.59 1,156,926,592.20 390,537,511.61
Liabilities
Total Liabilities 1,460,082,667.28 1,873,808,996.27 413,726,328.99
Shareholders' Equity:
Share Capital 2,614,694,040.00 2,614,694,040.00
Other Equity
Instruments
Including: Preferred
Stocks
Perpetual
Bonds
Capital Reserves 1,211,364,214.86 1,211,364,214.86
Less: Treasury Share
Other Comprehensive
-63,325,115.75 -63,325,115.75
Incomes
Special Reserves
Surplus Reserves 517,673,268.35 517,673,268.35
General Risk Reserves
Undistributed Profits 3,131,881,024.60 3,131,881,024.60
Total Shareholders' Equity 7,412,287,432.06 7,412,287,432.06
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Attributable to the Parent
Company
Minority Shareholders'
322,972,731.72 322,972,731.72
Equity
Total Shareholders' Equity 7,735,260,163.78 7,735,260,163.78
Total Liabilities and
9,195,342,831.06 9,609,069,160.05 413,726,328.99
Shareholders' Equity
Balance Sheet of the Parent Company
Unit: RMB
Item Thursday, December 31, 2020 Friday, January 1, 2021 Adjusted amount
Current Assets:
Cash and Bank Balances 788,724,841.16 788,724,841.16
Trading Financial Assets
Derivative Financial
Assets
Notes receivable
Accounts receivable 38,224.90 38,224.90
Receivables Financing
Prepayments 2,031,894.01 2,031,894.01
Other Receivables 1,046,160,763.74 1,046,160,763.74
Including: interest
receivable
Dividends
Receivable
Inventory 651,042.56 651,042.56
Contract Assets
Holding for-sale assets
Non-current Assets Due
within 1 Year
Other Current Assets 1,240,658.07 1,240,658.07
Subtotal of Current Assets 1,838,847,424.44 1,838,847,424.44
Non-current Assets:
Investment in Creditor's
Rights
Investment in Other
Creditor's Rights
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Long-term Receivables
Long-term Equity
6,433,238,270.32 6,433,238,270.32
Investment
Investment in Other
214,975,166.42 214,975,166.42
Equity Instruments
Other Non-current
Financial Assets
Investment Property
Fixed Assets 1,912,986.88 1,912,986.88
Projects under
Construction
Productive Biological
Assets
Oil and gas assets
Right-of-use Assets
Intangible Assets 3,418,590.95 3,418,590.95
Development
Expenditure
Goodwill
Long-term unamortized
2,600,000.20 2,600,000.20
expenses
Deferred Income Tax
15,581,293.31 15,581,293.31
Assets
Other Non-current
Assets
Subtotal of Non-current
6,671,726,308.08 6,671,726,308.08
Assets
Total Assets 8,510,573,732.52 8,510,573,732.52
Current Liabilities:
Short-term loan
Transactional financial
liabilities
Derivative Financial
Liabilities
Notes Payable
Accounts Payable 1,154,036.06 1,154,036.06
Received Prepayments
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Contract liabilities
Payroll payable 7,873,282.52 7,873,282.52
Tax Payable 1,394,799.62 1,394,799.62
Other Payables 2,056,738,130.14 2,056,738,130.14
Including: interest
payable
Dividends
Payable
Holding for-sale
liabilities
Non-current Liabilities
12,426,708.33 12,426,708.33
Due within 1 Year
Other Current Liabilities
Subtotal of Current Liabilities 2,079,586,956.67 2,079,586,956.67
Non-current Liabilities:
Long-term loan 282,000,000.00 282,000,000.00
Bonds Payable
Including: Preferred
Stocks
Perpetual
Bonds
Lease Liabilities
Long-term Payables
Long-term payroll
payable
Expected Liabilities
Deferred Income
Deferred Income Tax
Liabilities
Other Non-current
Liabilities
Subtotal of Non-current
282,000,000.00 282,000,000.00
Liabilities
Total Liabilities 2,361,586,956.67 2,361,586,956.67
Shareholders' Equity:
Share Capital 2,614,694,040.00 2,614,694,040.00
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Other Equity
Instruments
Including: Preferred
Stocks
Perpetual
Bonds
Capital Reserves 1,248,861,998.85 1,248,861,998.85
Less: Treasury Share
Other Comprehensive
-38,171,990.42 -38,171,990.42
Incomes
Special Reserves
Surplus Reserves 517,673,268.35 517,673,268.35
Undistributed Profits 1,805,929,459.07 1,805,929,459.07
Total Shareholders' Equity 6,148,986,775.85 6,148,986,775.85
Total Liabilities and
8,510,573,732.52 8,510,573,732.52
Shareholders' Equity
(4) Explanation of comparative data at early stage of retroactive adjustment after the initial implementation
of the new lease standards in 2021
□ Applicable √ Not applicable
Ⅵ. Taxes
1. Major categories of taxes and tax rates
Tax Type Taxation basis Tax rate
According to the provisions of the tax law,
the sales tax shall be calculated on the
basis of the income by selling goods and Simple levy 3%, 5%
VAT taxable services. After deducting the input General taxpayer 6%
tax that is allowed to be deducted from General taxpayer 13%, 9%
the sales tax in the current period, the
difference shall be the value added tax
Calculated and paid based on the actual
Urban Maintenance and Construction Tax 5%, 7%
value-added tax and consumption tax
25%, please refer to below table for details
Enterprise Income Tax Calculated based on the taxable income
of different tax rates
House property tax The tax rate for lease is based on lease 12%, 1.2%
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income; the tax rate for self-use fixed
assets is based on the original value of the
fixed assets;
Calculated and paid based on the actual
Education Surcharges 5%
value-added tax and consumption tax
If there are tax payers with different tax rates of enterprise income tax, disclose the specific information
Name of taxpayer Income tax rate
Sanya Romance Tourism Performance Co., Ltd. 15%
Lijiang Chama Ancient City Tourism Development Co., Ltd 15%
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd 15%
Hangzhou Songcheng Tourism Development Co., Ltd 15%
Jiuzhaigou Tibetan Mystery Culture Co., Ltd 15%
Songcheng Performance International Development Co., Ltd. Hong Kong tax rate 16.50%
Songcheng (Australia) Holdings Pty Ltd Australia tax rate 30%
Songcheng (Australia) Entertainment Pty Ltd. Australia tax rate 30%
Songcheng Performance Development (Shanghai) Co., Ltd. The tax rate for small and micro enterprise
Guilin Lijiang Romance Performance Development Co., Ltd 15%
Songcheng Dumuqiao Network Co., Ltd. 15%
Xi'an Romance Performance Development Co., Ltd 15%
Hangzhou Songcheng performance Valley technology and
15%
Culture Development Co., Ltd
Songcheng Holdings (Thailand) Co., Ltd. Tax rate of Thailand 15%
Songcheng (Pattaya) International Culture Co., Ltd. Tax rate of Thailand 15%
2. Preferential tax rate
Preferential value-added tax:
According to the Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the
Implementation of Certain Tax Preferential Policies Responding to the COVID-19 Outbreak ([2021] No. 7), for the income obtained
by a taxpayer from rendering living services and public transport services, the implementation period of the preferential tax policy
of value-added tax exemption will be extended to March 31, 2021. For the taxable sales revenue of small-scale taxpayers on which a
3% tax rate is levied, the implementation period of the preferential tax policy of value-added tax reduction to 1% will be extended to
December 31, 2021.
Preferential of property tax and land use tax：
According to the Notice of Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, State Taxation
Administration on Continuing to Implement the Policy of Reducing and Exempting Property Tax and Urban Land Use Tax in Response
to the COVID-19 (Zhe Cai Shui Zheng (2021) No. 3), the implementation period of urban land use tax reduction and exemption
policy will last until June 30, 2021, the property tax and urban land use tax on self-used property and land of the small and
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micro-size enterprises engaged in four business areas: accommodation, recreation, transportation and tourism and eligible for
relevant conditions should be reduced by 100% for the first quarter of 2021 and by 50% for the second quarter of 2021.
Preferential corporate income tax rate:
Lijiang Chama Ancient City Tourism Development Co., Ltd, Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd, Jiuzhaigou
Tibetan Mystery Culture Co., Ltd, Guilin Lijiang Romance Performance Development Co., Ltd and Xi'an Romance Performance
Development Co., Ltd. enjoy the preferential tax policy of west development, which corporate income tax rate is 15%.
Songcheng Tourism Development Co., Ltd., Songcheng Dumuqiao Connection Network Co., Ltd, and Hangzhou Songcheng
Performance Valley Technology and Culture Development Co., Ltd. are high-tech enterprises, of which corporate income tax rate is
15% in 2021.
According to "Notice on the Hainan Free Trade Port’s Preferential Policies on Corporate Income Tax"( Caishui No. 31 of Year 2020),
from January 1, 2020 to December 31, 2024, enterprises that are registered in Hainan Free Trade Port with substantial operation
record are levied at a reduced rate of 15% for their corporate income. In addition, Sanya Romance Tourism Performance Co., Ltd
obtained the "High-tech Enterprise Certificate" on December 1, 2020, which is valid for three years. For Sanya Romance Tourism
Performance Co., Ltd., the corporate income tax was levied at the rate of 15% in 2021.
According to "Notice of the Ministry of Finance and the State Administration of Taxation on Preferential Corporate Income Tax
Policies for the Two Special Economic Development Zones Kashgar and Horgos, in Xinjiang"( Caishui No. 112 of Year 2011), during
January 1, 2010 to December 31, 2020, the newly established enterprise in two special economic development zones of Kashgar
and Horgos in Xinjiang that fall within the scope of the "Catalogue of Enterprise Income Tax Preferences for Key Industries in
Difficult Areas in Xinjiang", shall be exempted for corporate income tax for future five years starting from the tax year in which the
first production and operation income is obtained. The Songcheng Technology Development Co., Ltd., Songcheng Tourism
Development Co., Ltd., Songcheng Performance Management Co., Ltd. (Horgo Headquarters), Songcheng Brand Management Co.,
Ltd. and Romance Art Management Co., Ltd. subordinate to the company meet the conditions of the preferential policy , and shall
be exempted from corporate income tax in 2021.
According to State Taxation Administration Announcement No. 80 of 2021 and State Taxation Administration Announcement No. 12
of 2021, for the period from January 1, 2021 to December 31, 2022, for the annual taxable income of a small low-profit enterprise
which is no more than RMB 1 million, on the basis of the preferential policy stipulated in Article 2 of the Announcement of the State
Administration of Taxation on Issues Concerning the Implementation of the Inclusive Income Tax Deduction and Exemption Policies
for Small Low-Profit Enterprises (Cai Shui (2019) No. 13), the enterprise income tax will be halved and 12.5% of that part should be
included in the taxable income; and for the annual taxable income which is more than RMB 1 million but no more than RMB 3
million, 50% of that part should be included in the taxable income and a 20% interest rate should be used to calculate the enterprise
income tax. The company that meets the requirements of small and micro enterprises of this year is: Songcheng Performance
Development (Shanghai) Co., Ltd.
Ⅶ. Notes to the Items in the Consolidated Financial Statement
1. Cash and bank balances
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Cash on Hand 3,428,776.09 2,437,262.81
Bank Balance 1,707,365,801.91 1,285,458,896.93
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Other Cash and Bank Balances 147,953,286.04 49,880,094.24
Total 1,858,747,864.04 1,337,776,253.98
Including: Total Amount Deposited in
283,928,396.85 116,361,545.59
Overseas Banks
2. Trading Financial Assets
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Financial assets at fair value through profit
2,670,942.90 335,217,557.68
or loss in this period
Including:
Investment in equity instruments 172,445,378.26
Derivative Financial Assets 2,670,942.90 6,589,730.08
Bank financial products 156,182,449.34
Designated financial assets that are
measured at fair value and whose changes
are included in the current profit and loss
Including:
Total 2,670,942.90 335,217,557.68
3. Accounts receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Book balance Bad debt provision Book balance Bad debt provision
Category
Accrued Book value Accrued Book value
Amount Percentage Amount Amount Percentage Amount
proportion proportion
Accounts receivable for
bad debt reserves by item
Including:
Accounts receivables with
the bad debt provision 2,404,441. 2,197,594.3 6,285,542.
100.00% 206,846.77 8.60% 100.00% 398,530.24 6.34% 5,887,012.36
accrued based on 14 7 60
combinations
Including:
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Combination of credit risk 2,404,441. 2,197,594.3 6,285,542.
100.00% 206,846.77 8.60% 100.00% 398,530.24 6.34% 5,887,012.36
characteristics by age 14 7 60
2,404,441. 2,197,594.3 6,285,542.
Total 100.00% 206,846.77 100.00% 398,530.24 5,887,012.36
14 7 60
Bad debt provision based on combinations
Among them: combination of credit risk characteristics by age:
Unit: RMB
Balance at the End of the Period
Name
Book balance Bad debt provision Accrued proportion
Within credit period 1,516,577.81 45,497.34 3.00%
Credit period overdue within 1
739,031.57 110,854.74 15.00%
year
Credit period overdue within 1
115,781.76 28,945.44 25.00%
to 2 years
Credit period overdue within 2
15,205.00 6,842.25 45.00%
to 3 years
Credit period overdue within 3
7,845.00 4,707.00 60.00%
to 4 years
Credit period overdue within 4
80.00%
to 5 years
Credit period overdue for more
10,000.00 10,000.00 100.00%
than 5 years
Total 2,404,441.14 206,846.77 --
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the bad debt
provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 2,255,013.38
1 to 2 years 116,377.76
2 to 3 years 15,205.00
3 to 4 years 7,845.00
4 to 5 years
5 years or above 10,000.00
Total 2,404,441.14
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(2) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Amount of Changes in the Current Period
Balance at the
Others (decrease Balance at the
Category Start of the Recovered or
Accrued Written Off in consolidation End of the Period
Period Reversed
scope)
Provision for bad
debts of accounts 398,530.24 -189,684.76 1,998.71 206,846.77
receivable
Total 398,530.24 -189,684.76 1,998.71 206,846.77
(3) Accounts receivable actually written off in this period
There are no accounts receivable actually written off in the current period.
(4) Accounts receivable of the top five balances at the end of the period collected by the arrears
Unit: RMB
Proportion of the total
Accounts receivable at the Bad debt provision at the end of
Name of Unit accounts receivable at
end of the period the period
the end pf the period
Alipay (China) Network Technology Co.,
953,175.26 39.64% 28,595.26
Ltd.
Suzhou Tongcheng Cultural Tourism
201,662.42 8.39% 22,560.72
Development Co., Ltd.
Henan Longgui Cultural Tourism
185,693.53 7.72% 30,603.91
Development Co., Ltd.
Qingdao Yilu International Travel Agency
183,271.45 7.62% 21,225.64
Co., Ltd.
Beijing Bytedance Technology Co., Ltd. 150,718.90 6.27% 22,438.42
Total 1,674,521.56 69.64%
4. Prepayments
(1) Aging analysis of prepayments is as follows
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Aging
Amount Percentage Amount Percentage
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Within 1 year 7,149,329.43 75.21% 16,240,971.84 88.71%
1 to 2 years 1,167,392.70 12.28% 1,749,615.05 9.56%
2 to 3 years 975,249.56 10.26% 316,167.68 1.73%
3 years or above 214,244.54 2.25%
Total 9,506,216.23 -- 18,306,754.57 --
(2) Advance payment of the top five closing balances by prepayment parties
Proportion to the total balance of
Prepayment parties Balance at the End of the Period prepayment at the end of the
period (%)
China Music Copyright Association 1,599,999.98 16.83
Guilin Yangshuo Power Supply Bureau, Guangxi Power Grid 958,992.36 10.09
Co., Ltd.
Hangzhou Bus Media Group Co., Ltd. 672,641.02 7.08
Zhejiang Shenda Intelligence Technology Co., Ltd. 390,000.00 4.10
Shanghai Dishite Business Information Consulting Co., Ltd. 294,000.00 3.09
Total 3,915,633.36 41.19
5. Other receivables
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Interest Receivable
Dividends Receivable
Other Receivables 10,195,239.84 50,524,990.69
Total 10,195,239.84 50,524,990.69
(1) Other Receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Employee loan 875,880.39 2,772,031.55
Security deposit, deposit 2,135,534.00 14,126,496.40
Incomings and outgoings 5,705,424.56 9,306,779.16
Equity transfer fund 79,866,980.26 79,866,980.26
Others 3,659,286.43 9,729,262.66
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Total 92,243,105.64 115,801,550.03
2) Bad debt provision
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses in the next 12 the entire extension the entire extension (with
months (without credit impairment) credit impairment)
Balance on Friday,
404,294.08 64,872,265.26 65,276,559.34
January 1, 2021
Balance of the current
period on Friday, January —— —— —— ——
1, 2021
--Transfer to phase three -63,053.93 63,053.93
Provisions of this period -54,269.82 16,825,636.28 16,771,366.46
Other changes (decrease
60.00 60.00
in consolidation scope)
Balance on Friday,
286,910.33 81,760,955.47 82,047,865.80
December 31, 2021
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 7,732,918.08
1 to 2 years 1,445,927.02
2 to 3 years 1,068,796.28
3 to 4 years 123,900.00
4 to 5 years 80,226,909.26
5 years or above 1,644,655.00
Total 92,243,105.64
3) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Balance at Amount of Changes in the Current Period Balance at the End of
Category
the Start of Accrued Recovered or Written Off Others (decrease the Period
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the Period Reversed in consolidation
scope)
Provision for bad
debts of other 65,276,559.34 16,771,366.46 60.00 82,047,865.80
receivables
Total 65,276,559.34 16,771,366.46 60.00 82,047,865.80
4) Accounts receivable actually written off in this period
There's no actual written-off accounts receivable in this period.
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage of
Bad debt
Balance at the End total other
Name of Unit Nature of the funds Aging provision at the
of the Period receivables at the
end of the period
end of the period
An Xiaofen (formerly:
Horgos Dasheng Legend Equity transfer fund 79,866,980.26 4-5 years 86.58% 79,866,980.26
Venture Capital Co., Ltd.)
Henan Longgui Cultural
Project management
Tourism Development Co., 2,248,100.00 1 to 2 years 2.44% 277,405.00
fee, incentive fee
Ltd.
Beijing Muma Constellation
5 years or
Culture Communication Co., Loan 1,050,000.00 1.14% 1,050,000.00
above
Ltd.
Online Trading Margin
Land Tender Deposit
Account of Jiashan County 1,000,000.00 2-3 years 1.08% 20,000.00
and Security Deposit
Land and Resources Bureau
Agent business of
settlement of
Ningxiang Cultural Tourism
advertising fees and 952,000.00 Within 1 year 1.03% 47,600.00
Investment Co., Ltd.
project management
fees
Total -- 85,117,080.26 -- 92.27% 81,261,985.26
6. Inventory
Does the company need to comply with the disclosure requirements of the real estate industry
No
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(1) Categories of inventories
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Inventory Inventory
depreciation depreciation
provision or provision or
Item
Book balance contract Book value Book balance contract Book value
performance cost performance cost
impairment impairment
provision provision
Finished goods 10,078,341.86 10,078,341.86 11,685,709.47 11,685,709.47
Materials in stock 2,443,313.95 2,443,313.95 1,738,437.03 1,738,437.03
Total 12,521,655.81 12,521,655.81 13,424,146.50 13,424,146.50
7. Other current assets
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Prepayment of value-added tax and VAT
108,220,252.65 132,363,780.35
input tax that has not yet been deducted
Prepayment of corporate income tax 2,345,475.42 14,275,564.96
Prepayment of other additional taxes 1,384,823.64 2,002,059.16
Total 111,950,551.71 148,641,404.47
8. Long-term equity investment
Unit: RMB
Decrease/Increase in the current period
Balance at
Investment Balance at the
the Start of Adjustment on Cash dividends Closing balance
profit and loss Provision for End of the
The invested entity the Period Investments Investment other Other changes or profit of provision for
recognized impairment Others Period (book
(book increased decreased comprehensive in equity declared to decline in value
under the accrued value)
value) income distribute
equity method
Ⅰ. Joint ventures
Ⅱ. Affiliates
Beijing Beite Shengdi
Technology 41,612,255.
-14,965,309.46 6,536,956.50 33,183,902.49
Development Co., 45
Ltd.
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Huafang Group Inc.
(formerly known as
1,492,927,3 1,644,369,445.1 1,861,297,284.9
Beijing 12,836.58 119,311,201.95 -16,918.29 32,134,955.29
69.66 9 0
HuafangTechnology
Co., Ltd.)
1,534,539,6 1,677,553,347.6 1,861,297,284.9
Subtotal 12,836.58 104,345,892.49 -16,918.29 38,671,911.79
25.11 8 0
1,534,539,6 1,677,553,347.6 1,861,297,284.9
Total 12,836.58 104,345,892.49 -16,918.29 38,671,911.79
25.11 8 0
Explanations of other matters
Huafang Group Inc. (formerly Beijing Huafang Technology Co., Ltd.): The original shareholders of Beijing Huafang Technology Co.,
Ltd., including Songcheng Performance Development Co., Ltd., signed the VIE agreement, and Global Bacchus Limited, a
wholly-owned company subsidiary of the Company, acquired 37.06% equity of Huafang Group Inc. at the price of USD1,976.4706
(equal to RMB 12,836.58). After signing the above agreement, Global Bacchus Limited, a wholly-owned subsidiary of the Company,
holds the 37.06% of the equity of Huafang Group Inc. and has all the rights and obligations pertaining to the 37.06% equity of
Beijing Huafang Technology Co., Ltd.
According to the evaluation results of the long-term equity investment impairment test conducted by China United Assets Appraisal
Group Co., Ltd. as of December 31, 2021, the recoverable amount of long-term equity investment of the Company was not lower
than the book value after the impairment of long-term equity investment.
9. Investment in other equity instruments
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Ningno Songcheng Performance Live Entertainment
69,360,600.00 133,565,454.00
Investment Partnership (limited partnership)
Ningno Songcheng Internet Entertainment
4,708,000.00 78,389,515.54
Investment Partnership (limited partnership)
Ningno Meishan Bonded Port Area Qixian Innovation
Entertainment Investment Partnership (limited 2,522,600.00 2,093,286.88
partnership)
Ningbo Songcheng Qixian Investment Management
868,600.00 926,910.00
Co., Ltd.
SABH's Big Adventure Inc. 9,026,036.59 9,291,430.32
Total 86,485,836.59 224,266,596.74
Disclose investments in non-trading equity instruments of the period by item
Unit: RMB
The amount of Reason for Reason for
Recognized
Item Name Cumulative gain Accumulated loss other designation as transferring other
dividend income
comprehensive being measured comprehensive
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income at fair value and income to
transferred to the change retained earning
retained earnings included in other
comprehensive
income
Ningno
Songcheng
Performance Live
Long-term
Entertainment
60,270,000.00 holding of
Investment
company strategy
Partnership
(limited
partnership)
Ningno
Songcheng
Internet
Long-term Partial recovery
Entertainment
242,000.00 96,934,247.87 holding of of the investment
Investment
company strategy projects
Partnership
(limited
partnership)
Ningno Meishan
Bonded Port Area
Qixian Innovation
Long-term
Entertainment
25,977,400.00 holding of
Investment
company strategy
Partnership
(limited
partnership)
Ningbo
Songcheng Qixian Long-term
Investment 486,627.31 holding of
Management Co., company strategy
Ltd.
Long-term
SABH's Big
17,608,071.52 holding of
Adventure Inc.
company strategy
Total 486,627.31 104,097,471.52 96,934,247.87
10. Fixed assets
Unit: RMB
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Item Balance at the End of the Period Balance at the Start of the Period
Fixed Assets 2,697,045,965.17 2,508,754,929.16
Disposal of fixed assets
Total 2,697,045,965.17 2,508,754,929.16
(1) Fixed assets
Unit: RMB
Housing and General Machinery and Transportation
Item Other equipment Total
building Equipment equipment Equipment
Ⅰ. Original book
value:
1. Opening
2,492,942,875.84 372,471,706.18 775,671,893.77 48,093,347.86 2,734,328.33 3,691,914,151.98
Balance
2. Increased in
the Current 205,119,785.97 127,860,949.68 231,851,059.91 1,280,388.93 566,112,184.49
Period
(1) Purchase 151,686.78 20,791,347.00 2,261,138.01 1,280,388.93 24,484,560.72
(2)
Transferred From
204,968,099.19 107,069,602.68 229,589,921.90 541,627,623.77
Construction in
Progress
3. Decreased in
the Current 144,835,554.03 14,501,001.67 16,413,465.62 29,539,013.73 395,344.35 205,684,379.40
Period
(1) Disposal
29,084,513.67 12,136,592.09 15,261,765.02 116,836.00 395,344.35 56,995,051.13
or Scrapping
(2)
Decrease in
115,751,040.36 2,364,409.58 1,151,700.60 29,422,177.73 148,689,328.27
business
combination
4. Closing
2,553,227,107.78 485,831,654.19 991,109,488.06 19,834,723.06 2,338,983.98 4,052,341,957.07
Balance
II. Accumulated
depreciation
1. Opening
550,902,868.61 246,778,655.19 353,990,423.38 28,940,433.95 2,546,841.69 1,183,159,222.82
Balance
2. Increased in
101,001,633.98 56,741,701.72 80,705,244.51 3,116,563.57 16,951.20 241,582,094.98
the Current
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Period
(1) Accrual 101,001,633.98 56,741,701.72 80,705,244.51 3,116,563.57 16,951.20 241,582,094.98
3. Decreased in
the Current 27,146,328.89 13,276,669.45 11,673,951.69 16,992,937.06 355,438.81 69,445,325.90
Period
(1) Disposal
11,122,965.05 11,176,833.71 11,356,128.23 94,012.36 355,438.81 34,105,378.16
or Scrapping
(2) Decrease
in business 16,023,363.84 2,099,835.74 317,823.46 16,898,924.70 35,339,947.74
combination
4. Closing
624,758,173.70 290,243,687.46 423,021,716.20 15,064,060.46 2,208,354.08 1,355,295,991.90
Balance
Ⅲ. Provision for
Impairment
1. Opening
Balance
2. Increased in
the Current
Period
(1) Accrual
3. Decreased in
the Current
Period
(1) Disposal
or Scrapping
4. Closing
Balance
Ⅳ. Book value
1. Closing
Balance on Book 1,928,468,934.08 195,587,966.73 568,087,771.86 4,770,662.60 130,629.90 2,697,045,965.17
Value
2. Opening
Balance on Book 1,942,040,007.23 125,693,050.99 421,681,470.39 19,152,913.91 187,486.64 2,508,754,929.16
Value
11. Construction in progress
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
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Projects under Construction 404,739,821.09 771,871,563.73
Construction material
Total 404,739,821.09 771,871,563.73
(1) Details of construction in progress
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Provision for Provision for
Item
Book balance decline in Book value Book balance decline in Book value
value value
Songcheng Scenic Area
31,455,175.30 31,455,175.30
Renovation Project
Sanya Romance Project 67,799,438.26 67,799,438.26
Sanya Art Wall Project 2,173,261.00 2,173,261.00
Longquan Mountain
Tourism Development 350,943.40 350,943.40
Project
Australian Legend Project 7,418,287.49 7,418,287.49 8,051,137.07 8,051,137.07
Shanghai Romance Show
294,784,853.21 294,784,853.21
Project
Shanghai Romance Show
1,188,745.58 1,188,745.58
Renovation Project
Zhangjiajie Romance
57,752,884.45 57,752,884.45
Renovation Project
Xi'an Romance Project 44,575,845.40 44,575,845.40
Xi’an Typhoon House, Castle
4,818,764.07 4,818,764.07
Panic and New Projects
Xi’an Romance Show
2,717,706.32 2,717,706.32
Repertory Change Project
Xitang Romance Show
121,379,192.40 121,379,192.40 101,251,838.34 101,251,838.34
Project
Foshan Romance Show
188,407,673.90 188,407,673.90 100,613,590.87 100,613,590.87
Project
Zhuhai Performance
76,636,190.33 76,636,190.33 65,235,857.43 65,235,857.43
Kingdom Project
Total 404,739,821.09 404,739,821.09 771,871,563.73 771,871,563.73
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(2) Changes in significant construction in progress
Unit: RMB
Capitalizatio
Project Including:
Accumulated n rate of
Balance at the Transfer Other amounts Balance at the accumulative capitalized
Increased in the Project capitalized the interest
Item Name Budget Start of the amounts in decreased in End of the investment as interest Capital Source
current period Progress interest in the
Period this period current period Period a percentage amount in the
amount current
of the budget current period
period
Songcheng
Scenic Area
124,167,000.00 31,455,175.30 84,984,932.75 89,560,776.76 26,879,331.29 93.78% 100.00% Other sources
Renovation
Project
Hangzhou
Paradise
Upgrading and 34,450,000.00 33,046,120.03 24,292,349.87 8,753,770.16 95.92% 100.00% Other sources
Renovation
Project
Sanya
Romance 101,680,000.00 67,799,438.26 24,627,449.92 84,336,271.33 8,090,616.85 90.90% 100.00% Other sources
Project
Sanya Art Wall
4,018,071.53 2,173,261.00 2,173,261.00 54.09% 60.00% Other sources
Project
Lijiang
Romance
Show 36,480,000.00 34,043,280.28 20,602,564.00 13,440,716.28 93.32% 100.00% Other sources
Renovation
Project
Jiuzhai
Romance
22,589,060.00 24,299,553.19 3,936,797.19 20,362,756.00 107.57% 100.00% Other sources
Renovation
Project
Longquan
Mountain
Tourism 212,588,000.00 350,943.40 350,943.40 Other sources
Development
Project
Australian 1,692,380,000.0
8,051,137.07 -632,849.58 7,418,287.49 0.44% 2.00% Other sources
Legend Project 0
Shanghai 294,784,853.2 147,686,928.2
713,145,000.00 367,486,068.55 514,583,993.50 92.87% 100.00% Other sources
Romance 1 6
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Show Project
Shanghai
Romance
Show 40,720,000.00 1,188,745.58 1,188,745.58 2.92% 10.00% Other sources
Renovation
Project
Guilin
Romance
Show 10,600,000.00 9,596,476.92 5,598,083.21 3,998,393.71 90.53% 100.00% Other sources
Renovation
Project
Zhangjiajie
Romance
123,920,000.00 57,752,884.45 51,870,201.11 97,148,420.29 12,474,665.27 88.46% 100.00% Other sources
Renovation
Project
Xi'an Romance
255,000,000.00 44,575,845.40 40,754,035.03 68,465,432.86 16,864,447.57 105.92% 100.00% Other sources
Project
Xi’an Typhoon
House, Castle
68,150,000.00 4,818,764.07 4,818,764.07 7.07% 20.00% Other sources
Panic and New
Projects
Xi’an Romance
Show
4,080,000.00 2,717,706.32 2,717,706.32 66.61% 60.00% Other sources
Repertory
Change Project
Xitang
101,251,838.3 121,379,192.4
Romance 400,000,000.00 20,127,354.06 30.34% 48.00% Other sources
4 0
Show Project
Foshan
100,613,590.8 188,407,673.9
Romance 451,550,000.00 87,794,083.03 41.72% 72.00% Other sources
7 0
Show Project
Zhuhai
Performance 2,500,000,000.0
65,235,857.43 11,400,332.90 76,636,190.33 3.07% 5.00% Other sources
Kingdom 0
Project
6,795,517,131.5 771,871,563.7 541,627,623.7 404,739,821.0
Total 800,295,515.16 625,799,634.03 -- -- --
3 3 7 9
Details of changes in the projects under construction: Other reductions of RMB 625,799,634.03 in the current period are the
transfer of long-term deferred expenses amounting to RMB 546,121,115.39 and the transfer of operating costs of maintenance and
improvement amounting to RMB 79,327,575.24. The consolidation scope of Longquanshan Tourism Development Project is reduced
by RMB 350,943.40. For the Australia Legend Project, the amount of increase of the current period is RMB -632,849.58 arising from
the fluctuation in exchange rate.
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12. Right-of-use assets
Unit: RMB
Item Housing and building Total
Ⅰ. Original book value:
1. Opening Balance 526,000,589.97 526,000,589.97
2. Increased in the Current Period 2,422,321.67 2,422,321.67
- Revaluation adjustment 2,422,321.67 2,422,321.67
3. Decreased in the Current Period
4. Closing Balance 528,422,911.64 528,422,911.64
II. Accumulated depreciation
1. Opening Balance
2. Increased in the Current Period 34,607,328.24 34,607,328.24
(1) Accrual 34,607,328.24 34,607,328.24
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance 34,607,328.24 34,607,328.24
Ⅲ. Provision for Impairment
1. Opening Balance
2. Increased in the Current Period
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance
Ⅳ. Book value
1. Closing Balance on Book Value 493,815,583.40 493,815,583.40
2. Opening Balance on Book Value 526,000,589.97 526,000,589.97
13. Intangible assets
(1) Details of intangible assets
Unit: RMB
Patent Non-patented Computer Intellectual Vehicle license
Item Land use rights Total
right technology Software Property plate
Ⅰ. Original book
value
168
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1. Opening 36,886,271.
2,086,688,019.80 600,000.00 250,800.00 2,124,425,091.68
Balance 88
2. Increased in
-23,130,903.55 186,764.63 -22,944,138.92
the Current Period
(1) Purchase 186,764.63 186,764.63
(2) Change in
-23,130,903.55 -23,130,903.55
exchange rates
3. Decreased in the
113,296,098.54 113,296,098.54
Current Period
(1) Disposal 4,538,255.37 4,538,255.37
Decrease in
108,757,843.17 108,757,843.17
consolidation scope
4. Closing 37,073,036.
1,950,261,017.71 600,000.00 250,800.00 1,988,184,854.22
Balance 51
Ⅱ. Accumulated
amortization
1. Opening 11,508,310.
232,541,580.00 280,000.00 63,278.21 244,393,169.12
Balance 91
2. Increased in 6,607,685.1
44,132,646.89 60,000.00 25,080.00 50,825,412.01
the Current Period 2
6,607,685.1
(1) Accrual 44,132,646.89 60,000.00 25,080.00 50,825,412.01
2
3. Decreased in
19,857,959.68 19,857,959.68
the Current Period
(1) Disposal 1,425,047.69 1,425,047.69
Decrease in
18,432,911.99 18,432,911.99
consolidation scope
4. Closing 18,115,996.
256,816,267.21 340,000.00 88,358.21 275,360,621.45
Balance 03
Ⅲ. Provision for
Impairment
1. Opening
Balance
2. Increased in
the Current Period
(1) Accrual
3. Decreased in
the Current Period
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(1) Disposal
4. Closing
Balance
Ⅳ. Book value
1. Closing
18,957,040.
Balance on Book 1,693,444,750.50 260,000.00 162,441.79 1,712,824,232.77
48
Value
2. Opening
25,377,960.
Balance on Book 1,854,146,439.80 320,000.00 187,521.79 1,880,031,922.56
97
Value
At the end of this period, the proportion of intangible assets formed through internal research and development of the Company to
the balance of intangible assets is 0.00%.
Other notes: In the account of land use right, the amount of increase of the current period is RMB -23,130,903.55 arising from the
fluctuation in exchange rates, and that is the change in amount of land purchased by a subsidiary of the Company carrying out the
Australian project, due to the change in Australian dollar's exchange rate.
14. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increased in the current Decreased in the
The invested entity or matters Balance at the Start of period current period Balance at the End of the
which formed goodwill the Period Generated from Period
Disposal
business combination
Jiuzhaigou Tibetan Mystery
45,504,625.96 45,504,625.96
Culture Co., Ltd
Total 45,504,625.96 45,504,625.96
(2) Provision of impairment in goodwill
Unit: RMB
Increased in the current Decreased in the
The invested entity or matters Balance at the Start of Balance at the End of the
period current period
which formed goodwill the Period Period
Accrued Disposal
Jiuzhaigou Tibetan Mystery
33,848,831.09 10,082,554.54 43,931,385.63
Culture Co., Ltd
Total 33,848,831.09 10,082,554.54 43,931,385.63
Information about the asset group or asset group combination where the goodwill is located
Composition of asset group or combination of asset groups Jiuzhaigou Tibetan Mystery Culture Co., Ltd
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Book value of the asset group or asset groups combination 43,132,132.78
Original book value of goodwill 45,504,625.96
Unrecognized value of goodwill attributed to equity of minority shareholders 30,336,417.31
Including the value of unrecognized goodwill attributed to minority shareholders'
75,841,043.27
equity
The book value of the asset group or combination of asset groups that involves
118,973,176.05
goodwill
The present book value of the expected future cash flow of the asset group (the
45,754,200.00
recoverable current book value)
Accumulated impairment loss of goodwill 43,931,385.63
Whether the asset group or combination of asset groups is consistent with its
identified amount at the date of purchase and the goodwill impairment test of Consistency
previous years
In 2015, the Company acquired 60% of Jiuzhaigou Tibetan Mystery Culture Co., Ltd.,. whose business is single and independent for
accounting, and therefore its long-term asset is considered as an independent asset group.
(3) The process and key parameters of the goodwill impairment test and the method of confirming the loss of
goodwill impairment:
The recoverable amount of the asset group is determined on the basis of the higher of the present value of the estimated future
operating net cash flow during the asset life or the market value (fair value) of the asset, minus the net amount of disposal expenses
and relevant taxes.
The present value of the expected future net cash flow of the asset group is based on the management budget for the next five
years and the adjusted discount rate. It is calculated by using the cash flow forecasting method. The cash flow beyond the five-year
detailed forecast period is calculated with a stable growth rate. Among them, the forecast period of cash flows is 2022-2026 (the
subsequent period is perpetuity), and the discount rate is 11.88%-11.81%.
Other key data used in the impairment test include: operating revenue, operating costs and related expenses, capital expenditures,
depreciation and amortization.
According to the "Asset Appraisal Report” issued by Beijing Northern Asia Assets Appraisal Firm (Special General Partnership) hired
by the Company, recoverable amount of the asset group involving goodwill was RMB 45,754,200.00.
After testing, the accumulated goodwill impairment of Jiuzhaigou Tibetan Mystery Culture Co., Ltd. was RMB 43,931,385.63.
15. Long-term prepaid expenses
Unit: RMB
Balance at the Start Increased in the Prepaid Expenses in Other Amounts Balance at the End
Item
of the Period current period This Period Decreased of the Period
Expenditures for
improvement of
113,735,729.61 494,243,260.34 27,770,495.29 9,273,468.80 570,935,025.86
operating leased fixed
assets
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House decoration fee 5,124,989.93 24,446.00 2,135,442.57 15,687.43 2,998,305.93
Fees for road signs in
14,178,509.03 7,814,981.93 5,765,095.04 1,165,596.91 15,062,799.01
scenic spots
Scenic animals and
37,520,516.59 28,050,770.35 14,650,393.78 1,677,198.80 49,243,694.36
plants
Cost of creating
44,093,356.82 21,289,714.28 9,143,647.93 120,919.79 56,118,503.38
costumes and props
Others 441,285.90 522,137.62 300,202.67 663,220.85
Total 215,094,387.88 551,945,310.52 59,765,277.28 12,252,871.73 695,021,549.39
Other notes: The others account of the current period decreases by RMB 12,252,871.73, of which RMB 1,923,024.35 is attributable
to the consolidation scope and RMB 10,329,847.38 is attributable to the scrapping and disposal.
16. Deferred income tax assets/liabilities
(1) Deferred income tax assets not written off
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for Impairment of
82,254,712.57 20,502,718.98 65,659,489.58 16,308,221.87
Assets
Unrealized Profit from
9,960,044.15 2,490,011.04 8,710,326.58 2,177,581.65
Internal Transactions
Lease standards 11,826,006.72 2,550,647.27
Total 104,040,763.44 25,543,377.29 74,369,816.16 18,485,803.52
(2) Deferred income tax liabilities not written off
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Item Taxable temporary Deferred Income Tax Taxable temporary Deferred Income Tax
difference Liabilities difference Liabilities
Asset appraisal increment
of merged assets of the
374,872,215.24 93,718,053.81 386,938,479.60 96,734,619.90
entities not under common
control
Changes in the fair value of
182,449.34 34,600.28
the trading financial assets
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included in the profit and
loss from fair value changes
of the current period
Total 374,872,215.24 93,718,053.81 387,120,928.94 96,769,220.18
(3) Details of unrecognized deferred income tax assets
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Deductible temporary difference 86,002,772.69 1,044,004,655.08
Deductible Losses 385,633,406.46 359,520,530.58
Total 471,636,179.15 1,403,525,185.66
(4) The deductible losses of unrecognized deferred income tax assets will mature in the following years
Unit: RMB
Amount at the end of the
Year Opening balance Notes
period
2021 years 10,214,970.98
2022 years 10,783,212.03 16,736,431.92
2023 years 49,334,492.91 62,433,581.93
2024 years 50,503,415.97 70,358,021.61
2025 years 124,722,410.70 199,777,524.14
2026 years 150,289,874.85
Total 385,633,406.46 359,520,530.58 --
17. Other non-current assets
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Provision for Provision for
Item
Book balance decline in Book value Book balance decline in Book value
value value
Advance payment for project 2,979,411.23 2,979,411.23 7,733,926.26 7,733,926.26
Advance payment for car 855,900.00 855,900.00
21,135,600.0 21,135,600.0
Advance payment for land
0 0
Total 24,115,011.2 24,115,011.2 8,589,826.26 8,589,826.26
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3 3
18. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Payment for project, equipment and
466,816,984.31 346,638,370.70
maintenance
Inventory cost 13,915,584.13 24,866,101.30
Advertising cost and other fees 1,218,711.70 971,992.69
Total 481,951,280.14 372,476,464.69
19. Advance receipts
(1) Details of received pre-payments
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Shop rent 8,142,991.55 12,888,689.05
Total 8,142,991.55 12,888,689.05
20. Contract liabilities
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Ticket fees 9,612,799.60 11,352,124.25
Planning fee, design fee, program
78,141,509.51 177,198,113.27
production fee
Total 87,754,309.11 188,550,237.52
The amount of significant change in book value during the reporting period and the reason thereof
Unit: RMB
Item Amount of change Reason for change
Planning fee, design fee, program
0.00 Increase in amount due to receipt of cash
production fee
Planning fee, design fee, program The amount of reduced contract liabilities due to the
-99,056,603.76
production fee carry-over income of this year
Total -99,056,603.76 ——
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21、Salary payable
(1) Details of payroll payable
Unit: RMB
Balance at the Start of Increased in the current Decreased in the Balance at the End of
Item
the Period period current period the Period
Ⅰ. Short-term remuneration 18,741,340.95 206,437,858.25 205,421,075.70 19,758,123.50
Ⅱ. Demission benefits - defined
76,463.79 10,344,590.73 10,287,687.12 133,367.40
contribution scheme
Ⅲ. Dismissal welfare 4,312,059.22 4,312,059.22
Total 18,817,804.74 221,094,508.20 220,020,822.04 19,891,490.90
(2) List of short-term remuneration
Unit: RMB
Balance at the Start of Increased in the current Decreased in the Balance at the End of
Item
the Period period current period the Period
1. Wages or salaries, bonuses,
14,386,624.38 175,170,012.27 174,281,602.54 15,275,034.11
allowances and subsidies
2. Staff welfare 15,690.24 19,177,063.54 19,192,753.78
3. Social insurance
74,749.39 6,973,345.40 6,914,199.66 133,895.13
contributions
Including: medical
60,218.95 6,734,592.39 6,679,275.42 115,535.92
insurance
Work injury
1,704.72 198,656.24 197,162.35 3,198.61
insurance premium
Birth insurance
12,825.72 40,096.77 37,761.89 15,160.60
premium
4. Housing funds 74,382.00 3,795,292.72 3,804,222.72 65,452.00
5. Labor union and education
4,189,894.94 1,322,144.32 1,228,297.00 4,283,742.26
funds
Total 18,741,340.95 206,437,858.25 205,421,075.70 19,758,123.50
(3) Defined contribution scheme (Note)
Unit: RMB
Balance at the Start of Increased in the current Decreased in the current Balance at the End of the
Item
the Period period period Period
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1. Basic pension
73,390.21 9,973,089.27 9,917,727.13 128,752.35
insurance
2. Unemployment
3,073.58 371,501.46 369,959.99 4,615.05
insurance
Total 76,463.79 10,344,590.73 10,287,687.12 133,367.40
22. Taxes payable
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
VAT 2,560,347.92 1,627,758.21
Enterprise Income Tax 27,912,794.11 14,538,779.22
Individual income tax 322,746.46 568,739.64
Urban Maintenance and Construction Tax 193,841.11 124,619.04
House property tax 3,667,911.65 2,125,001.78
Land usage tax 2,081,675.43 790,142.85
Education Surcharges 139,615.06 69,757.11
Stamp duty 50,438.40 25,010.64
Others 67,841.53
Total 36,997,211.67 19,869,808.49
23. Other payables
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Interest Payable
Dividends Payable
Other Payables 72,869,650.41 65,149,971.79
Total 72,869,650.41 65,149,971.79
(1) Other payables
1) Other payables listed by nature of funds
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Merchant deposit 3,888,433.44 4,724,228.60
Deposit of construction party 2,826,805.70 4,130,003.70
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Deposit of merchant for bidding 1,757,395.00 1,923,628.40
Deposit of travel agency 4,538,753.00 4,301,753.00
Other types of deposits 1,642,110.82 1,553,964.82
Reward for over-fulfilled performance 31,576,200.00 31,576,200.00
Incomings and outgoings 23,941,587.47 14,094,504.75
Others 2,698,364.98 2,845,688.52
Total 72,869,650.41 65,149,971.79
Other explanation: The reward for over-fulfilled performance at the end of the period is determined according to the initial
acquisition agreement with Beijing Huafang Technology Co., Ltd.,. If the excess part of the net profit actually realized during the
performance commitment period that is higher than the promised net profit, the excess part has not been issued to the
management shall be calculated in accordance with the agreed proportion
24. Non-current liabilities due within one year
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Long-term debt due within one year 12,000,000.00 12,000,000.00
Interest on long-term loans for which the 409,291.67 426,708.33
principal and interest is repaid by
installments
Lease liabilities due within one year 24,441,418.40 23,188,817.38
Total 36,850,710.07 35,615,525.71
25. Other current liabilities
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Output VAT to be carried forward 3,419,057.32 3,513,902.08
Total 3,419,057.32 3,513,902.08
26. Long-term loans
(1) Categories of long-term loans
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Fiduciary loans 270,000,000.00 282,000,000.00
Total 270,000,000.00 282,000,000.00
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27. Leasing liabilities
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Lease payment of housing and buildings 520,979,645.10 560,342,521.97
Unrecognized finance fees -149,207,473.05 -169,805,010.36
Total 371,772,172.05 390,537,511.61
28. Deferred revenue
Unit: RMB
Balance at the Start Increased in the Decreased in the Balance at the End
Item Causes
of the Period current period current period of the Period
Government
387,619,860.41 2,000,000.00 1,688,957.74 387,930,902.67 Government's grant
subsidies
Total 387,619,860.41 2,000,000.00 1,688,957.74 387,930,902.67 --
Projects related to government subsidies:
Unit: RMB
The
The
Amount Amount Other
The amount Amount
Balance at the recorded as Written changes Balance at the Related to
of new Recorded
Liabilities Start of the non-operating off (decrease in End of the assets/related
subsidies in as Other
Period revenue in Costs in consolidation Period to income
this period Income in
this period This scope)
This Period
Period
In 2008, the
discounts on
interest for the
Related to
international 3,190,475.14 142,857.24 3,047,617.90
assets
animation gallery
project were
received.
In 2017, the
cultural and
creative funds for Related to
326,666.24 20,000.04 306,666.20
"Love Song of assets
Lijiang" project
were received.
In 2017, the
Related to
grant for the 108,333.52 6,500.04 101,833.48
assets
toilet project of
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the modern
service industry
in Songcheng
Scenic Area were
received.
In 2017,
Hangzhou
modern service
Related to
industry guiding 524,355.00 53,780.03 470,574.97
assets
funds for the
cable car project
were received.
In 2017, the
special funds of
tourism planning
and construction
Related to
of modern 851,456.57 52,130.04 799,326.53
assets
service for
Xianghu Lake
Romance were
received.
In 2017, the
special funds for
Related to
cultural industry 1,941,666.69 99,999.96 1,841,666.73
assets
development
were received.
In 2018, the
special funds for
cultural industry
development
were received
from the Related to
500,000.00 12,500.00 487,500.00
Department of assets
Culture, Radio,
Television, Press,
Publication and
Sports of Hainan
province.
In 2018, the
subsidies for
Related to
Longquan 873,833.40 12,249.99 861,583.41
assets
Mountain
ecological
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rehabilitation
project were
received.
In 2018, the
subsidies for
Guilin Lijiang
Romance fork
Related to
culture, leisure 437,500.08 24,999.96 412,500.12
assets
tourism and
performance
project were
received.
In 2019, the
special funds for
planning and
construction
subsidies of
modern service
industry issued
by the Municipal
Related to
Tourism 1,560,273.38 66,159.96 1,494,113.42
assets
Commission for
the
reconstruction
project of No. 2
Theater Complex
in Songcheng
Romance Park
were received.
In 2019,
Hangzhou
modern service
industry tourism
special funds for Related to
191,333.30 8,000.04 183,333.26
the construction assets
project of the
new entrance
hall washroom
were received.
In 2019, the
guiding funds of Related to
1,350,000.00 75,000.00 1,275,000.00
Guilin Lijiang assets
service industry
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for Guilin
Romance folk
culture leisure
tourism
performance
project were
received.
In 2019, special
funds issued by
Xiqiao Mountain
Scenic Area
Management
Committee in
Related to
Nanhai District, 370,000,000.00 370,000,000.00
assets
Foshan for
supporting the
project of Foshan
Xiqiao Mountain
Romance park
were received.
In 2019, the
cultural and
tourism industry
funds issued by
Hainan Provincial Related to
500,000.00 12,500.00 487,500.00
Department of assets
Finance for
Sanya No. 2
theater project
were received.
In 2020, the
financial support
funds issued by
Shanghai
government for
Related to
promoting the 280,000.00 280,000.00
assets
development of
cultural and
creative
industries were
received.
In 2020, the Related to
2,000,000.00 49,999.98 1,950,000.02
cultural industry assets
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development
special funds
issued by Hainan
Provincial
Department of
Finance for
Sanya No.2
Theater Project
were received.
In 2020, the
special funds for
development of
modern service
industry issued
by Development Related to
1,916,670.00 99,996.00 1,816,674.00
and Reform assets
Bureau of
Wulingyuan
District of
Zhangjiajie were
received.
In 2020, the
special funds for
tourism
development
Related to
issued by 402,230.00 21,170.01 381,059.99
assets
Zhangjiajie
Municipal
Finance Bureau
were received.
In 2020,
Hangzhou
modern service
industry tourism
special funds
allocated by
Related to
Hangzhou 485,916.67 24,500.03 461,416.64
assets
Culture, Radio,
Film and
Television
Tourism Bureau
for significant
leisure tourism
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construction, the
upgrading and
renovation of
scenic spots, and
tourism planning
projects were
received.
In 2020, the
special tourism
(tourism toilet)
subsidies
allocated by
Related to
Hangzhou 179,150.42 8,994.97 170,155.45
assets
Culture, Radio,
Film and
Television
Tourism Bureau
were received.
In 2021, the
special fund for
cultural industry Related to
2,000,000.00 36,036.04 1,963,963.96
development of assets
Shaanxi Province
was received.
Total 387,619,860.41 2,000,000.00 827,374.33 861,583.41 387,930,902.67
Other notes:
29. Share capital
Unit: RMB
Increased or decreased amount in this period (+/-)
Balance at the Balance at the
Shares
Start of the Shares newly End of the
Bonus shares converted from Others Subtotal
Period issued Period
capital reserves
2,614,694,040. 2,614,694,040.
Total shares
00 00
Explanations of other matters: The conversion between restricted shares and unrestricted shares. Wherein: According to the
Detailed Rules for the Implementation of Shareholding Reduction of Shareholders and Directors, Supervisors, Senior
Managers of Listed Companies in Shenzhen Stock Exchange, in 2021, the restriction on some of the shares held by Huang
Qiaoling and Liu Ping was lifted, and 78,977,686 shares were transferred to negotiable shares.
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30. Capital reserves
Unit: RMB
Balance at the Start of the Increased in the Decreased in the Balance at the End of
Item
Period current period current period the Period
Capital premium (capital share
1,269,739,701.71 1,269,739,701.71
premium)
Other capital reserves -58,375,486.85 38,671,911.79 -19,703,575.06
Among them: (1) Amount of
share-based payment included in 8,676,800.00 8,676,800.00
owner’s equity
(2) Other 350,000.00 350,000.00
(3) Other changes in
owner‘s equity other than net
-67,402,286.85 38,671,911.79 -28,730,375.06
profit and loss of the invested
entity
Total 1,211,364,214.86 38,671,911.79 1,250,036,126.65
Explanations of other matters: In the current period, the book value of long-term equity investment was adjusted to RMB
38,671,911.79 due to the changes in owner‘s equity other than net profit and loss of the investee Huafang Group Inc. (originally
known as Beijing Huafang Technology Co., Ltd.) and Beijing Beite Shengdi Technology Development Co., Ltd.
31. Other comprehensive income
Unit: RMB
This Period's Amount of Occurrence
Less: Recorded
Less: recorded
into other
into other
comprehensive Attributable
Balance at comprehensive Balance at the
Before tax incomes in Attributable to to the
Item the Start of incomes in Less: Income End of the
balance in this previous period the Company minority
the Period previous period Tax Expense Period
period and transferred after tax shareholders
and transferred
to retained after tax
to P/L in
income in
current period
current period
1. Other
comprehensive
income that -48,235,465.
65,363,069.56 97,387,862.27 12,995,352.13 -45,020,144.84 -93,255,609.94
cannot be 10
reclassified into
profit and loss
Other 453,614.40 453,614.40
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comprehensive
income that
cannot be
transferred to
profit or loss
under the equity
method
Changes in
the fair value of
-48,235,465.
other equity 64,909,455.16 96,934,247.87 12,995,352.13 -45,020,144.84 -93,255,609.94
10
instrument
investments
II. Other
comprehensive
-15,089,650.
income that will -42,948,852.26 -42,952,308.67 3,456.41 -58,041,959.32
65
be reclassified into
P/L
Including: other
comprehensive
income that can
be converted into -16,918.29 -16,918.29 -16,918.29
gains and losses
under the equity
method
Currency
-15,089,650.
conversion -42,931,933.97 -42,935,390.38 3,456.41 -58,025,041.03
65
difference
Other
-63,325,115.
comprehensive 22,414,217.30 97,387,862.27 12,995,352.13 -87,972,453.51 3,456.41 -151,297,569.26
75
incomes in total
32. Surplus reserve
Unit: RMB
Balance at the Start of Increased in the current Decreased in the current Balance at the End of the
Item
the Period period period Period
Statutory surplus reserve 517,673,268.35 16,050,528.47 533,723,796.82
Total 517,673,268.35 16,050,528.47 533,723,796.82
33. Undistributed profits
Unit: RMB
185
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Item Current period Previous Period
Undistributed Profit before Adjustment at the End
3,131,881,024.60 5,176,157,180.79
of Previous Period
Undistributed Profit after Adjustment at the Start
3,131,881,024.60 5,176,157,180.79
of the Period
Add: net profit attributable to parent company's
315,130,771.75 -1,752,398,009.60
owner in current period
Other Carry-forward Retained Earnings of the
87,649,076.04 -1,356,586.59
Comprehensive Income
Less: withdrawal for statutory surplus reserve 6,311,742.24
Payable dividends on ordinary shares 130,734,702.00 290,521,560.00
Undistributed Profit at the End of the Period 3,397,614,428.15 3,131,881,024.60
Details of the adjustment of the undistributed profit at the beginning of the period:
1). Due to the retrospective adjustment according to the "Accounting Standards for Business Enterprises" and related new
regulations, affected undistributed profit at the beginning of the period was RMB 0.00.
2). Due to changes in accounting policies, affected undistributed profit at the beginning of the period was RMB 0.00.
3). Due to the correction of major accounting errors, affected undistributed profit at the beginning of the period was RMB 0.00.
4) Due to changes in the scope of consolidation under same control, affected undistributed profit at the beginning of the period was
RMB 0.00.
5). Due to Other adjustments, affected undistributed profit at the beginning of the period was RMB 0.00.
34. Operating income and operating costs
Unit: RMB
This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Item
Income Cost Income Cost
Main Business 1,132,966,126.93 577,332,409.96 860,109,435.13 350,061,394.54
Other businesses 51,898,512.32 2,254,801.71 42,476,690.50 2,609,078.88
Total 1,184,864,639.25 579,587,211.67 902,586,125.63 352,670,473.42
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□ Yes √ No
Related information of revenue:
Unit: RMB
Culture and art
Contract classification industry-live Tourism service industry Other businesses Total
performance
Product types 960,863,721.01 172,102,405.92 51,898,512.32 1,184,864,639.25
Including:
186
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(1) Hangzhou Songcheng
453,420,399.83 453,420,399.83
Tourist Area
(2) Sanya Romance Show
142,558,810.39 142,558,810.39
Theme Park
(3) Lijiang Romance Show
111,446,758.52 111,446,758.52
Theme Park
(4) Jiuzhai Romance Show
44,297,259.43 44,297,259.43
Theme Park
(5) Guilin Romance Show
87,505,615.80 87,505,615.80
Theme Park
(6) Zhangjiajie Romance
31,385,778.76 31,385,778.76
Show Theme Park
(7) Xi’an Romance Show
16,419,966.44 16,419,966.44
Theme Park
(8) Shanghai Romance Show
73,829,131.84 73,829,131.84
Theme Park
(9) E-business handling fee 73,045,802.16 73,045,802.16
(10) Design planning fee 99,056,603.76 99,056,603.76
(11) Other businesses 51,898,512.32 51,898,512.32
Contract type 960,863,721.01 172,102,405.92 51,898,512.32 1,184,864,639.25
Including:
(1) Revenue from contract 960,863,721.01 172,102,405.92 7,713,516.33 1,140,679,643.26
Classified by the time of
960,863,721.01 172,102,405.92 7,713,516.33 1,140,679,643.26
commodity transfer
Including:
Confirm at time points 960,062,953.02 73,045,802.16 2,122,261.72 1,035,231,016.90
Confirm within a certain
800,767.99 99,056,603.76 5,591,254.61 105,448,626.36
period of time
(2) Rental income 44,184,995.99 44,184,995.99
Information related to performance obligations:
N/A
Information related to the transaction price allocated to the remaining obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations with signed contracts
which have not yet been performed or completed, mostly design and planning fees, was RMB 78,141,509.51, and is expected to be
recognized as revenue in 2022-2025.
187
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35. Taxes and surcharges
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Urban Maintenance and Construction Tax 2,307,498.26 944,001.17
Education Surcharges 1,786,265.26 827,724.98
House property tax 13,970,447.38 7,447,753.53
Land usage tax 3,874,673.93 1,928,223.64
Vehicle and vessel use tax 39,500.12 49,250.44
Stamp duty 346,812.15 709,855.81
Water conservancy construction fund 49,083.16 26,687.48
Total 22,374,280.26 11,933,497.05
36. Sales expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Advertising cost 43,026,950.43 45,899,163.03
Salary and labor fees 14,210,112.72 9,262,823.51
Rental fees 1,710,301.91 1,546,072.36
Fees for technical services 1,992,998.55 878,308.35
Material consumption 1,738,140.46 2,451,944.75
Traveling expense 1,021,704.84 976,777.55
Others 2,484,619.87 2,634,660.75
Total 66,184,828.78 63,649,750.30
37. Management expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Salary and labor fees 81,656,755.74 75,408,829.46
Amortization of intangible assets and
64,750,586.94 64,348,021.07
other assets
Consulting fee 7,984,043.35 8,182,473.68
Traveling expense 5,503,749.44 5,624,695.71
Depreciation charge 43,218,519.26 75,830,364.58
Business entertainment expense 10,543,859.12 10,034,078.60
188
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Accumulative depreciation of right-to-use
8,829,389.24
assets
Rental fees 646,798.22 5,086,107.77
Material consumption 8,281,709.14 9,364,375.32
Office expense 5,722,377.71 5,579,245.84
Trademark royalty 1,886,792.35 9,433,962.00
Afforestation fee 923,394.44 2,321,906.68
Maintenance cost 2,310,282.30 3,541,464.14
Others 13,926,789.18 13,328,642.89
Total 256,185,046.43 288,084,167.74
Other notes:
The following theme parks of the Company are affected by COVID-19 and have suffered closure in the current and last periods. The
amount originally recorded in the operating cost during the Company's closure periods should be included in the management
expenses accordingly.
38. R&D expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Salary and labor fees 22,132,681.05 21,062,406.05
Fees for technical services 1,584,062.23 324,329.47
Design fee 52,886.00 215,813.33
Rental fees 617,847.90
Amortization of intangible assets and
476,079.00 314,907.89
other assets
Traveling expense 167,631.52 589,458.88
Office expense 762,421.73 698,738.20
Depreciation charge 9,275,410.13 7,404,031.20
Material consumption 5,577,989.23 5,295,522.43
Others 1,145,970.46 964,908.65
Total 41,175,131.35 37,487,964.00
39. Financial expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Interest expense 32,789,597.06 7,822,986.14
189
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Including: Interest of lease liabilities 18,870,909.59
Less: interest income 27,293,268.17 32,572,127.48
P/L on foreign exchange -9,280,491.79 9,952,753.34
Others 2,829,585.46 1,952,949.85
Total -954,577.44 -12,843,438.15
40. Other incomes
Unit: RMB
Sources of other incomes This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Government subsidies 3,686,355.09 34,307,513.06
Input VAT (plus credit) deduction 874,146.85 264,647.17
Total 4,560,501.94 34,572,160.23
41. Investment income
Unit: RMB
Previous Period's Amount of
Item This Period's Amount of Occurrence
Occurrence
Long-term equity investment income
103,892,278.09 -5,356,968.22
measured by equity method
Investment income from disposal of long-term
52,752,751.62
equity investment
Investment income from disposal of trading
25,195,317.85 19,371,860.52
financial assets
Total 181,840,347.56 14,014,892.30
42. Income from changes in fair value
Unit: RMB
Source of the income from changes in fair
This Period's Amount of Occurrence Previous Period's Amount of Occurrence
value
Trading Financial Assets -12,098,344.02 247,726.31
Total -12,098,344.02 247,726.31
43. Credit impairment loss
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
190
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Bad debt losses of other receivables -16,771,366.46 -32,551,183.69
Bad debt losses of accounts receivable 189,684.76 -188,793.22
Total -16,581,681.70 -32,739,976.91
44. Asset impairment loss
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Long-term equity investment impairment
-1,861,297,284.90
loss
Goodwill impairment loss -10,082,554.54 -16,422,870.82
Total -10,082,554.54 -1,877,720,155.72
45. Income from asset disposal
Unit: RMB
Sources of the asset disposal income This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Total gains from disposal of non-current
4,512,572.52 676,435.92
assets
Of which: gains from disposal of fixed
676,435.92
assets
Gains from disposal of intangible assets 4,512,572.52
Other long-term asset disposal gains
Total 4,512,572.52 676,435.92
46. Non-operating income
Unit: RMB
Amount recorded into
This Period's Amount of Previous Period's Amount of
Item non-recurring profit and loss in
Occurrence Occurrence
current period
Government subsidies 96,099.37 1,046,433.96 96,099.37
Liquidated damages, fine
960,052.65 1,302,066.30 960,052.65
income
Waste disposal income 610,301.51 466,299.22 610,301.51
Accounts payable that cannot
3,963,939.04 10,120.52 3,963,939.04
be paid
Others 460,735.42 417,457.14 460,735.42
191
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Total 6,091,127.99 3,242,377.14 6,091,127.99
Government subsidies recorded into current period P/L:
Unit: RMB
Subsidies
Previous
Influence Special This period's Related to
Distributin Distributing Types of period's
Subsidy items Profit and Loss Subsidy or amount of assets/relate
g Entity Reason Nature amount of
in the Current not occurrence d to income
occurrence
Year or not
Incentives for new
Related to
enterprises above 240,000.00
income
designated size
The special support
Related to
funds for tourism 100,000.00
income
development
Award for investment Related to
100,000.00
promotion income
Subsidies for cultural Related to
300,000.00
industry income
Related to
Others 96,099.37 306,433.96
income
Total 96,099.37 1,046,433.96
47. Non-operating expenses
Unit: RMB
Amount recorded into
This Period's Amount of Previous Period's Amount of
Item non-recurring profit and loss in
Occurrence Occurrence
current period
Loss from damage and
destruction of non-current 32,221,090.95 38,302,318.05 32,221,090.95
assets
Public welfare donations 300,000.00
Non-public welfare donations 336,964.00 93,000.00 336,964.00
Compensation expenditure 1,372,732.53 2,020,885.17 1,372,732.53
Others 782,457.42 291,676.21 782,457.42
Total 34,713,244.90 41,007,879.43 34,713,244.90
192
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48. Income tax expenses
(1) Income tax expenses table
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Current income tax expense 51,356,736.47 42,291,502.79
Deferred income tax expense -10,109,254.82 -12,456,333.68
Total 41,247,481.65 29,835,169.11
(2) Reconciliation of accounting profits and income tax expenses
Unit: RMB
Item This Period's Amount of Occurrence
Total Profit 343,841,443.05
Income tax expense calculated at statutory/applicable tax rate 85,960,360.76
Impact by applying different tax rates to subsidiaries -40,338,872.58
Impact of income tax before adjustment in this period -509,369.03
Impact of non-taxable income -45,027,889.14
Impact of the non-deductible costs, expenses and losses 18,327,191.74
The effect of using deductible losses of deferred income tax assets that
-10,003,518.88
have not been recognized in the previous period
The effect of unrecognized deductible temporary differences of deferred
32,839,578.78
income tax assets or unrecognized deductible losses in the current period
Income tax expense 41,247,481.65
49. Other comprehensive income
For details, please refer to Note 7 (31) Other Comprehensive Income.
50. Items of Cash Flow Statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Interest Income 27,232,915.27 35,986,922.00
Non-operating Revenue 2,031,089.58 2,185,822.66
Government financial subsidies 4,955,080.13 40,101,488.53
193
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Receipt of current account 193,637,431.27 25,497,842.41
Total 227,856,516.25 103,772,075.60
(2) Other cash payments relating to operating activities
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Expenses 134,347,310.65 133,608,090.57
Non-Operating Expenses 2,488,371.60 2,705,561.38
Payment of current account 5,259,130.77 20,821,514.98
Total 142,094,813.02 157,135,166.93
(3) Cash payments related to financing activities
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Lease payment 39,531,231.21
Total 39,531,231.21
51. Supplementary information about Cash Flow Statement
(1) Supplementary information about the Cash Flow Statement
Unit: RMB
Supplementary information Amount of this period Amount of Previous Period
1. Reconciliation of net profit to cash flows
-- --
from operational activities:
Net Profit 302,593,961.40 -1,766,945,878.00
Plus: Credit impairment loss 16,581,681.70 32,739,976.91
Provision for Impairment of Assets 10,082,554.54 1,877,720,155.72
Depreciation of fixed assets, oil
241,582,094.98 201,385,250.67
and gas assets, productive biological assets
Depreciation of right-of-use assets 34,607,328.24
Amortization of Intangible Assets 50,825,412.01 56,669,812.67
Amortization of long-term prepaid
59,765,277.28 35,034,022.89
expenses
Losses on disposal of fixed assets,
-4,512,572.52 -676,435.92
intangible assets and other long-term assets
194
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(mark "-" for incomes)
Losses on scrapping of fixed assets
32,221,090.95 38,302,318.05
(mark "-" for incomes)
Losses on fair value changes (mark
12,098,344.02 -247,726.31
"-" for incomes)
Financial expenses (mark "-" for
23,509,105.27 17,775,739.48
incomes)
Losses on investment (mark "-" for
-181,840,347.56 -14,014,892.30
incomes)
Decrease on deferred income tax
-7,057,573.77 -9,318,905.44
assets (mark "-" for increases)
Increase on deferred income tax
-3,051,166.37 -3,137,428.24
liabilities (mark "-" for decreases)
Decrease on inventories (mark "-"
902,490.69 -1,993,817.28
for increases)
Decrease on operational
101,886,633.14 -44,275,900.28
receivables (mark "-" for increases)
Increase on operational payables
60,279,495.79 -25,074,392.68
(mark "-" for decreases)
Others
Net cash flow generated by
750,473,809.79 393,941,899.94
operating activities
2. Major investing and financing activities
-- --
not involving cash receipts and payment:
Conversion of debt into capital
Convertible corporate bonds due within
one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 1,858,747,864.04 1,337,776,253.98
Less: opening balance of cash 1,337,776,253.98 1,781,710,027.35
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net additions to balance of equivalents 520,971,610.06 -443,933,773.37
195
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(2) Net amount of cash received from disposal of subsidiaries in the current period
Unit: RMB
Amount
Cash or cash equivalents received from disposal of subsidiaries in
109,199,300.00
the current period
Including: --
Zhejiang Songcheng Longquan Mountain Tourism Development
109,199,300.00
Co., Ltd
Less: Cash and cash equivalents held by subsidiaries on date of loss
118,376.92
of control
Including: --
Zhejiang Songcheng Longquan Mountain Tourism Development
118,376.92
Co., Ltd
Including: --
Zhejiang Songcheng Longquan Mountain Tourism Development
Co., Ltd
Net cash amount received from disposal of subsidiaries 109,080,923.08
(4) Composition of cash and cash equivalents
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Ⅰ. Cash 1,858,747,864.04 1,337,776,253.98
Including: cash on hand 3,428,776.09 2,437,262.81
Bank deposit for payment at any
1,707,365,801.91 1,285,458,896.93
time
Other cash and bank balances for
147,953,286.04 49,880,094.24
payment at any time
Ⅲ. Closing balance of cash and cash
1,858,747,864.04 1,337,776,253.98
equivalents
52. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign Closing Balance Converted into
Item Exchange rate for conversion
currencies RMB
196
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Cash and Bank Balances -- -- 283,928,281.42
Including: USD 43,468,368.08 6.37570 277,141,274.37
HKD 2,282,936.68 0.81760 1,866,529.03
AUD 909,613.36 4.62200 4,204,232.95
THB 3,746,443.52 0.19118 716,245.07
(2) Notes on overseas business entities, including that for the important overseas business entities, the
overseas main premises, functional currency and selection basis shall be disclosed. If there are changes on its
functional currency, the causes for the changes shall be disclosed as well.
√ Applicable □ Not applicable
The overseas operating entities of the company include Songcheng Performance International Development Co., Ltd., Songcheng
(Australia) Entertainment Pty Ltd., Songcheng (Australia) Entertainment Pty Ltd.., Songcheng Holdings (Thailand) Co., Ltd. and
Songcheng (Pattaya) International Culture Co., Ltd. The operating place respectively in Hong Kong, China, Queensland, Australia,
Bangkok, Thailand, and Pattaya, Thailand. The standard currency for bookkeeping is Hong Kong dollars, Australian dollars and Thai
baht by considering the needs of local business development.
53. Government grants
(1) Basic information about government subsidies
Unit: RMB
Types Amount Items reported Amount taken to current P&L
Government subsidies related to daily
2,000,000.00 Deferred Income 827,374.33
operating activities
Government subsidies related to daily
2,858,980.76 Other Incomes 2,858,980.76
operating activities
Government subsidies unrelated to
96,099.37 Non-operating Revenue 96,099.37
daily operating activities
(2) Return of government subsidies
□ Applicable √ Not applicable
54. Lease
1. The Company acts as the lessee
Item Amount of this period
Interest of lease liabilities 18,870,909.59
Short-term lease expenses recorded by a simplified approach in the asset cost or 2,784,030.36
current profit or loss
197
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Total cash outflows related to leases 42,315,261.57
2. The Company acts as the lessor
(1) Operating lease
Amount of this period
Income from operating leases 44,184,995.99
Including: Income related to variable lease payments not included in lease receipts
VIII. Changes in the Scope of Consolidation
1. Disposal of subsidiaries
Is there any situation where disposal of investment in subsidiaries in a single transaction causes loss of control
√ Yes □ No
Unit: RMB
Difference in The Amount of
net assets of determination other
the subsidiary method and comprehensiv
Gain or loss
Basis for corresponding Ratio of Book value of Fair value of main e income
from
determining to the disposal remaining remaining remaining assumption of related to the
Name of Payment for Equity disposal Equity disposal Time of losing remaining
the time when price and equity on the equity on the equity on the the fair value equity
Subsidiaries equity disposal ratio method control equity
the control disposal date of loss of date of loss of date of loss of of the investment of
re-measured
right is lost investment in control (%) control control remaining the subsidiary
at fair value
the equity on the transferred to
consolidated date of loss of the investment
statement control profit and loss
Zhejiang
Songcheng
Date of
Longquan
109,199,300.0 Monday, April cessation of
Mountain 100.00% Sell in cash 52,752,751.62
0 12, 2021 rights and
Tourism
interests
Development
Co., Ltd
Other notes:
On April 7, 2021, the Company and Longquan Tourism Investment Development Co., Ltd. signed the "Equity Transfer Contract"
regarding the equity and debts of Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd., a wholly-owned
subsidiary of the Company. The subject matter of the transfer was 100% equity of Zhejiang Songcheng Longquan Mountain Tourism
Development Co., Ltd. held by the Company and all debts incurred prior to the closing of equity. The transaction price refers to the
Li Jing Ping Zi [2021] No. 113 issued by Lijiang Economic Assets Appraisal Co., Ltd. Upon mutual consultation, the transaction
consideration was RMB 109,199,300 at the transaction price for 100% of the equity and RMB 166,800,700 at the liquidation price
for all debts incurred prior to the closing date of equity. The total transaction price was RMB 276,000,000.
Is there any situation where disposal of investment in subsidiaries is achieved through multiple transactions in various stages,
causing loss of control in this period
□ Yes √ No
198
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2. Changes in the scope of combination for other reasons
Explanations on the changes in the scope of consolidation caused by other reasons (for example, newly established subsidiaries,
subsidiaries clearing, etc.) and relevant information:
1. 1 company is added to the consolidation scope in the current period due to:
New Merged Units This Year Investment Ratio Notes
Global Bacchus Limited 100.00% New in 2021
2. 1 company is removed from the consolidation scope due to:
Reduced Merged Units This Year Investment Ratio Notes
Zhejiang Songcheng Longquan Mountain Tourism 100.00% Equity sale in 2021
Development Co., Ltd
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Name of Main Place of Registered Shareholding Percentage Acquisition
Business Nature
Subsidiaries Business Address Direct Indirect Method
Hangzhou Hangzhou, Hangzhou, Development of tourism
100.00% Establishment
Paradise Co., Ltd. Zhejiang Zhejiang project
Sanya Romance
Tourism Theme park + Art
Sanya, Hainan Sanya, Hainan 100.00% Establishment
Performance Co., performance
Ltd.
Lijiang Chama
Ancient City
Theme park + Art
Tourism Lijiang, Yunnan Lijiang, Yunnan 100.00% Establishment
performance
Development Co.,
Ltd
Business
Aba Zhou Jiuzhai
combination
Romance Tourism Jiuzhaigou, Aba, Jiuzhaigou, Aba, Theme park + Art
100.00% not under
Development Co., Sichuan Sichuan performance
common
Ltd
control
Hangzhou
Songcheng
Hangzhou, Hangzhou, Network technology,
Tourism 100.00% Establishment
Zhejiang Zhejiang e-commerce
Development Co.,
Ltd
199
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Hanghzou
Songcheng Hangzhou, Hangzhou, Domestic tourism, inbound
100.00% Establishment
Dumuqiao Travel Zhejiang Zhejiang tourism
Services Co., Ltd
Business
Jiuzhaigou combination
Jiuzhaigou, Aba, Jiuzhaigou, Aba, Development of tourism
Tibetan Mystery 60.00% not under
Sichuan Sichuan project
Culture Co., Ltd common
control
Technology development,
technology services and
Hangzhou achievement transfer of
Songcheng smart entertainment
Hangzhou, Hangzhou,
Technology products; sales and 100.00% Establishment
Zhejiang Zhejiang
Development Co., consulting services of
Ltd. technology products;
Internet information
services
Foreign investment; cultural
Songcheng
performance; leisure
Performance
tourism; international
International Hong Kong, China Hong Kong, China 100.00% Establishment
cultural and entertainment
Development Co.,
cooperation and
Ltd.
development
Cultural performance;
Songcheng leisure tourism;
Queensland, Queensland,
(Australia) international cultural and 100.00% Establishment
Australia Australia
Holdings Pty Ltd entertainment cooperative
development
Cultural performance;
Songcheng leisure tourism;
(Australia) Queensland, Queensland, international cultural, film
100.00% Establishment
Entertainment Australia Australia and television
Pty Ltd. entertainment cooperation
development
Shanghai Performance venue
Songcheng World management, planning for
Expo cultural and artistic
Shanghai Shanghai 88.00% Establishment
Performance exchange activities,
Development Co., industrial investment,
Ltd investment management
Songcheng Shanghai Shanghai Performance venues, 100.00% Establishment
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Performance performance brokers,
Development entertainment venues
(Shanghai) Co., (singing and dancing
Ltd. entertainment venues,
amusement entertainment
venues), travel agency
business, cultural and
artistic exchange activities
planning, public relations
campaign planning
Tourism project investment
Guilin Lijiang
and development, cultural
Romance
Yangshuo, Guilin, Yangshuo, Guilin, activities planning, cultural
Performance 70.00% Establishment
Guangxi Guangxi communication planning,
Development Co.,
leisure industry investment
Ltd
and development.
Planning, design,
Ningxiang development and
Songcheng management of scenic spot;
Tourism Changsha, Hunan Changsha, Hunan literary and artistic creation 100.00% Establishment
Development Co., services; engineering
Ltd. project management
services;
Operating performances
and economic business;
Zhangjiajie various performances;
Romance parking, performance venue
Zhangjiajie, Zhangjiajie,
Performance management, tourism 100.00% Establishment
Hunan Hunan
Development Co., services; theme park
Ltd development and
operation, cultural activities
planning
Technology development,
Songcheng
technical service and
Technology
Yili, Xinjiang Yili, Xinjiang achievement transfer of 100.00% Establishment
Development
smart entertainment
Co.,Ltd.
products
Tourism resource
Songcheng development, tourism
Tourism planning and design, artistic
Yili, Xinjiang Yili, Xinjiang 100.00% Establishment
Development Co., creation, brand and
Ltd. marketing planning of
tourist attractions
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Performance, artistic
Songcheng
creation and choreography,
Performance
Yili, Xinjiang Yili, Xinjiang performance and brokerage 100.00% Establishment
Management Co.,
business, performance
Ltd.
management
Network technology;
computer software and
hardware; data processing
and analysis technology
development; technical
consulting, services, and
Songcheng transfer of achievements;
Hangzhou, Hangzhou,
Dumuqiao booking tickets of scenic 100.00% Establishment
Zhejiang Zhejiang
Network Co., Ltd. spots, air tickets,
performance tickets and
room reservations for
customers; tourist
information consulting,
domestic tourism, and
inbound tourism
Performance activities;
Xi'an Romance performance brokerage;
Performance catering services; tourism
Xi'an, Shanxi Xi'an, Shanxi 80.00% Establishment
Development Co., services; theme park
Ltd development and
operation;
Zhejiang Organization and planning
Songcheng Xitang of cultural and artistic
Performance Jiashan county, Jiashan county, exchange activities; cultural
Valley Jiaxing city, Jiaxing city, communication planning; 100.00% Establishment
Performance Zhejiang Zhejiang tourism services; theme
Development Co., park development and
Ltd operation;
Organization and planning
Foshan South Sea of cultural and artistic Business
Qiao Mountain exchange activities; cultural combination
Foshan, Foshan,
Cultural Tourism communication planning; 100.00% not under
Guangdong Guangdong
Development Co., tourism services; theme common
Ltd park development and control
operation;
Sales: tourism supplies and
Hangzhou Hangzhou, Hangzhou,
arts & crafts (excluding gold 100.00% Establishment
Songguo Cultural Zhejiang Zhejiang
ornaments), daily
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Creative Co., Ltd. necessities, local specialties
(excluding food)
Hangzhou Music performances, opera
Songcheng performances, cabaret
performance performances, acrobatic
Hangzhou, Hangzhou,
Valley technology performances; performance 100.00% Establishment
Zhejiang Zhejiang
and Culture brokers; smart
Development Co., entertainment products;
Ltd cultural creative design
Foreign investment; cultural
Songcheng performance; leisure
Holdings Bangkok, Bangkok, tourism; international
100.00% Establishment
(Thailand) Co., Thailand Thailand cultural and entertainment
Ltd. cooperation and
development
Cultural performance,
including live shows of
theater performances
Songcheng
(singing and dancing,
(Pattaya)
Pattaya, Thailand Pattaya, Thailand acrobatics, drama, music, 65.00% Establishment
International
etc.); high-tech interactive
Culture Co., Ltd.
experience; cultural
activities planning, tourism
e-commerce
Music performances, opera
performances, cabaret
performances; acrobatics,
Zhuhai
tourism services, theme
Songcheng Zhuhai, Zhuhai,
park development and 100.00% Establishment
Performance Guangdong Guangdong
operation, cultural activities
Kingdom Co., Ltd
planning and organization,
cultural communication
planning
Project development,
operation and management
of film and television
Zhuhai Southern Business
industry; development,
Film and combination
Zhuhai, Zhuhai, operation and management
Television 100.00% not under
Guangdong Guangdong of tourism projects; real
Cultural Industry common
estate development;
Co., Ltd. control
business services and
commercial wholesale and
retail
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Business
Zhuhai Huayin Landscaping project; combination
Zhuhai, Zhuhai,
Landscaping Co., planting and sales of flowers 55.00% not under
Guangdong Guangdong
Ltd. and seedlings common
control
Tourism resource
development; tourism
planning and design; artistic
creation; brand planning of
Songcheng Brand
scenic spots; marketing
Management Co., Yili, Xinjiang Yili, Xinjiang 100.00% Establishment
planning of scenic spots;
Ltd.
scenic project construction;
domestic tourism, inbound
tourism and ticket agency;
ticket sales of scenic spots;
Performance: singing and
dancing, opera, acrobatics;
Romance Show artistic creation and
Management Co., Yili, Xinjiang Yili, Xinjiang choreography; operating 100.00% Establishment
Ltd. performance and brokerage
business; performance
management
Global Bacchus British Virgin British Virgin
Outbound investment 100.00% Establishment
Limited Islands Islands
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Profit and loss attributed Dividends declared to Balance of equity of
Minority shareholding
Name of Subsidiaries to minority shareholders minority shareholders in minority shareholders at
ratio of shareholders
in the current period the current period the end of the period
Shanghai Songcheng
World Expo
12.00% -6,234,490.03 -11,006,442.15
Performance
Development Co., Ltd
Guilin Lijiang Romance
Performance 30.00% 258,164.47 196,247,955.38
Development Co., Ltd
Xi'an Romance
Performance 20.00% -7,096,906.89 110,263,277.41
Development Co., Ltd
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(3) Main financial information of important non-wholly-owned subsidiaries
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Name of
Non-current Current Non-current Non-current Current Non-current
Subsidiaries Current Assets: Total assets Total Liabilities Current Assets: Total assets Total Liabilities
Assets: Liabilities: Liabilities: Assets: Liabilities: Liabilities:
Shanghai
Songcheng
World Expo 685,152,041.0 748,107,944.8 642,022,042.3 707,828,296.0 364,658,450.2 393,692,905.2 235,616,750.0 301,459,172.9
62,955,903.78 65,806,253.71 29,034,455.03 65,842,422.90
Performance 3 1 2 3 4 7 5 5
Development
Co., Ltd
Guilin Lijiang
Romance
234,262,857.2 462,516,982.8 696,779,840.0 216,867,003.9 488,091,553.0 704,958,557.0
Performance 40,932,488.67 1,687,500.12 42,619,988.79 49,871,753.88 1,787,500.08 51,659,253.96
5 1 6 6 5 1
Development
Co., Ltd
Xi'an Romance
Performance 227,652,751.4 354,897,775.1 582,550,526.6 100,441,875.7 334,190,960.0 434,632,835.7
29,270,175.59 1,963,963.96 31,234,139.55 42,815,396.19 16,518.08 42,831,914.27
Development 4 8 2 0 8 8
Co., Ltd
Unit: RMB
This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Name of --Total Cash flow from --Total Cash flow from
Operating Operating
Subsidiaries Net Profit comprehensive operating Net Profit comprehensive operating
income income
income activities income activities
Shanghai
Songcheng
World Expo 190,165,248.1
73,962,925.49 -51,954,083.54 -51,954,083.54 309,304,761.73 436,837.02 -20,682,857.98 -20,682,857.98
Performance 7
Development
Co., Ltd
Guilin Lijiang
Romance
-135,213,013.7
Performance 91,145,694.57 860,548.22 860,548.22 42,511,148.59 56,586,027.07 -14,052,004.66 -14,052,004.66
9
Development
Co., Ltd
Xi'an Romance
Performance -198,698,474.7
16,784,668.25 -35,484,534.44 -35,484,534.44 25,002,178.14 -11,935,323.79 -11,935,323.79 479,044.63
Development 6
Co., Ltd
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2. Equity in joint venture arrangements or affiliates
(1) Important joint ventures or associates
Shareholding Percentage Method for
Names of accounting the
Main Place Registered
associates and Business Nature investment in
of Business Address Direct Indirect
joint ventures associates and
joint ventures
Internet information
service, performance
Huafang Group
brokerage business,
Inc. (formerly
business on music
known as Beijing Beijing Beijing 37.06% Equity method
entertainment products
HuafangTechnolo
through information
gy Co., Ltd.)
network, competition
activities
Technical development,
system integration,
Beijing Beite installation and
Shengdi commissioning of stage
Technology Beijing Beijing machinery, stage 20.00% Equity method
Development Co., machinery control, lighting,
Ltd. and sound equipment;
stage craft design and
consultation;
(2) Main financial information of important associates
Unit: RMB
Closing balance / accrual of current period Opening balance / accrual of previous period
Huafang Group Inc. Beijing Huafang
(formerly known as Beijing Beite Shengdi Technology Co., Ltd. Beijing Beite Shengdi
Beijing Technology Development (formerly known as Technology Development
HuafangTechnology Co., Co., Ltd. Beijing Six Rooms Co., Ltd.
Ltd.) Technology Co., Ltd.)
Current Assets: 1,799,207,570.53 307,299,025.07 1,396,296,667.81 379,808,015.42
Non-current Assets: 492,406,372.49 22,685,816.27 486,246,315.46 3,393,303.08
Total assets 2,291,613,943.02 329,984,841.34 1,882,542,983.27 383,201,318.50
Current Liabilities: 330,886,258.97 188,283,989.40 367,981,352.22 240,656,075.91
Non-current Liabilities: 48,377,202.42 35,344,150.95 10,851,396.40 1,300,010.10
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Total Liabilities 379,263,461.39 223,628,140.35 378,832,748.62 241,956,086.01
Minority Shareholders'
-4,903.84
Equity
Equity attributable to
shareholders of the 1,912,350,481.63 106,356,700.99 1,503,710,234.65 141,250,136.33
parent company
Share of net assets
calculated based on 708,717,088.49 21,271,340.20 557,275,012.96 28,250,027.27
shareholding ratio
Adjustments 935,652,356.70 11,912,562.29 935,652,356.70 13,362,228.18
--Goodwill 935,652,356.70 16,825,620.50 935,652,356.70 16,825,620.50
Unrealized Profit from
-4,913,058.21 -3,463,392.32
Internal Transactions
Book value of equity
1,644,369,445.19 33,183,902.49 1,492,927,369.66 41,612,255.45
investment in associates
Operating income 4,539,988,143.60 468,421,976.73 3,777,442,691.41 321,940,699.67
Net Profit 320,716,642.08 3,637,982.99 -10,799,124.63 5,477,097.14
Net profit from
discontinued operations
Other Comprehensive
1,178,348.91 3,431,790.00
Incomes
--Total comprehensive
321,894,990.99 3,637,982.99 -7,367,334.63 5,477,097.14
income
Explanation of other matters: The above data of statement was presented based on the fair value of the identifiable assets and
liabilities of the investee when the investment was obtained.
X. Risks Relating to Financial Instruments
The company faces various financial risks in the course of its operations: credit risk, liquidity risk and market risk (including exchange
rate risk, interest rate risk and other price risks). The Board of Directors of the company is fully responsible for the determination of
risk management objectives and bears the corresponding ultimate responsibility. The Board of Directors requires the management
to design and implement procedures that can ensure the effective implementation of risk management objectives and policies. The
company’s management reviews the effectiveness of the implemented procedures and the rationality of risk management
objectives and policies through quarterly reports submitted by the Financial Department. The Treasury Department of the company
audits the risk management policies and procedures, and report relevant findings to the company’s management.
The overall objective of the Company's risk management is to formulate risk management policies that can minimize risks without
affecting the Company's competitiveness and adaptability to changes too much.
The company diversifies the risk of financial instruments by appropriate diversified investment and business portfolio. In addition,
corresponding risk management policy is formulated to reduce the risk of concentration in single industry, specific region or specific
counter party.
(I) Credit risk
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Credit risk refers to the risk of the company's financial losses due to the failure of the counterparty to perform its contractual
obligations.
The company’s credit risk mainly arises from monetary funds, notes receivable, accounts receivable, accounts receivable financing,
other receivables, debt investments, other debt investments and financial guarantee contracts, investments in debt instruments and
derivative financial assets recognized in impairment testing scope, which are measured at fair value and related changes are
recognized in the current profit and loss, etc., On the Balance Sheet date, the book value of the company’s financial assets has
represented its maximum credit risk exposure.
The company’s monetary funds are mainly bank deposits deposited in state-owned banks and other large and medium-sized listed
banks with high credit ratings. The company believes that there is no major credit risk, and there is almost no significant loss
resulting from breach of contract of the banks.
In addition, for bills receivable, accounts receivable, financing receivables and other receivables, the company sets relevant policies
to control credit risk exposure. Before signing contracts, the company assesses the credit risk of new customers. The company sets
up credit limit and credit period according to different sales scale Generally, the company adopts more prudent credit policy for new
customers and increases the proportion of advance receipts. The company promptly collects the accounts receivable from
customers, and shortens or cancels the credit period for customers with bad credit records. At the same time, the company ensures
that the overall credit risk of the company is under control through quarterly review of the aging analysis of accounts receivable of
existing customers.
(II) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by cash or other financial
assets. The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is under the
concentrated control of the Company's Financial Department. Through monitoring the balance of cash and securities cashable at
any time and rolling forecasting the cash flow in the next 12 months, the Financial Department ensures that the Company has
sufficient funds to repay its debts under all reasonable predictions. At the same time, the Finance Department constantly monitors
whether the company complies with the provisions of the loan agreement, and obtains commitments from major financial
institutions to provide sufficient reserve funds to meet short-term and long-term funding needs.
(III) Market Risk
The market risk of financial instruments refers to the risk of fluctuation at fair value of financial instruments or future cash flows
with the change of market prices, including exchange rate risks and interest rate risks.
1. Interest rate risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the change
of market interest rate.
Interest-bearing financial instruments with fixed and floating interest rates expose the company to fair value interest rate risk and
cash flow interest rate risk, respectively. The company determines the proportion of fixed and floating interest rate instruments
based on the market environment, and maintains appropriate combination of fixed and floating interest rate instruments through
regular review and monitoring.
As of December 31, 2021, when other variables remain unchanged, if the borrowing rate calculated at the floating interest rate
increases or decreases by 100 base points, the net profit of the Company will decrease or increase by RMB 2,197,937.50 (Thursday,
December 31, 2020: RMB 1,235,208.33). The management believes that 100 basis points reasonably reflect the range of possible
changes in interest rates in the coming year.
2. Exchange rate risk
Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due to changes in
foreign exchange rates.
The company tries its best to match foreign currency income with foreign currency expenditures. At the same time, it constantly
monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize foreign exchange risks. In
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addition, the company signs forward foreign exchange contracts or currency swap contracts to achieve the purpose of avoiding
exchange rate risks.
The foreign exchange risks faced by the company are mainly from financial assets and financial liabilities in U.S. dollars, Hong Kong
dollars, Australian dollars, and Thai baht. The amounts of foreign currency financial assets and liabilities converted into RMB are
listed as follows:
Balance at the End of the Period
Item
USD HKD AUD THB Total
Cash and Bank Balances 277,141,274.37 1,866,529.03 4,204,232.95 716,245.07 283,928,281.42
Trading financial assets
(financial assets that are
measured at fair value and 2,670,942.90 2,670,942.90
related changes are recognized
in current profit and loss)
Other Equity Instruments 9,026,036.59 9,026,036.59
Balance at the end of the previous year
Item
USD HKD AUD THB Total
Cash and Bank Balances 106,339,810.45 2,516,908.66 6,672,956.60 831,764.35 116,361,440.06
Trading financial assets
(financial assets that are
measured at fair value and 172,445,378.26 6,589,730.08 179,035,108.34
related changes are recognized
in current profit and loss)
Other Equity Instruments 9,291,430.32 9,291,430.32
The foreign exchange risk arising from the above-mentioned foreign currency balance assets may have certain impact on operating
performance of the company. The company pays close attention to the impact of exchange rate changes on foreign exchange risks
of the company, and takes corresponding measures to avoid foreign exchange risks.
XI. Disclosure of Fair Values
The input values applied in fair value measurement are divided into three levels:
The first-level input value is the unadjusted quotation of the same asset or liability in the active market that can be obtained on the
measurement date.
The second-level input value is the directly or indirectly observable input value of related assets or liabilities other than the
first-level input value.
The third-level input value is the unobservable input value of related assets or liabilities.
The level of the fair value measurement result is determined by the lowest level of the input value which is of great significance to
the fair value measurement as a whole.
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
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Fair values at period-end
First level Second level Third level
Item
measurement at fair measurement at fair measurement at fair Total
value value value
I. Constant measurement at fair value -- -- -- --
(I) Trading Financial Assets 2,670,942.90 2,670,942.90
1. Financial assets at fair value through
2,670,942.90 2,670,942.90
profit or loss in this period
(1) Investment in debt instruments
(2) Investment in equity instrument
(3)Derivative Financial Assets 2,670,942.90 2,670,942.90
2. Designated financial assets that are
measured at fair value and whose
changes are included in the current profit
and loss
(1) Investment in debt instruments
(2) Investment in equity instrument
(II) Investment in Other Creditor's Rights
(III) Investment in Other Equity
86,485,836.59 86,485,836.59
Instruments
(IV) Investment Property
1. Land use rights for lease
2. Rental buildings
3. Land use rights held and prepared to
transfer after appreciation
(V) Biological assets
1. Consumable biological assets
2. Productive Biological Assets
Total assets constantly measured at fair
2,670,942.90 86,485,836.59 89,156,779.49
value
(6) Transactional financial liabilities
Including: issued trading bonds
Derivative Financial Liabilities
Others
(7) Financial Liabilities measured in fair
value with changes recognized in current
profit and loss
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Total amount of liabilities constantly
measured at their fair values
II. Non-constant measurement at fair
-- -- -- --
values
(I) Holding for-sale assets
Total amount of assets with non-constant
measurement at fair values
Total amount of liabilities with
non-constant measurement at fair values
2. The basis for determining the market price of constant and non-constant first-level fair value measurement
items
It is confirmed in accordance with the closing price of open market transactions or the quotation amount provided by securities and
fund companies as of December 31, 2021.
3. For the continuous and non-continuous third-level fair value measurement items, the valuation techniques
adopted and the qualitative and quantitative information of important parameters
For non-listed equity investment, fund investment and stock investment without public market quotation, the company applies
valuation techniques to determine its fair value, including cash flow discount method and market comparison method. Its fair value
is measured using important unobservable parameters, such as liquidity discount, fluctuation rate, risk-adjusted discount and
market multiplier. The fair value of non-listed equity investments, fund investments, and other investments has no significant
sensitivity to reasonable changes in these unobservable input values.
In 2021, the valuation techniques used by the company for the above-mentioned constant third-level fair value measurement have
not been changed.
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4. Sensitivity analysis on adjustment information between the opening and closing book value and unobservable parameters for constant third-level fair value
measurement items
Total current gain or loss Acquisition, issuance, sale and settlement For assets held at the
Transfer
Transfer end of the reporting
Balance at the from Recognized in Balance at the
to the period, the current
Item end of the the Recognized in other End of the
third Acquisition Issuance Sale Settlement unrealized gains or
previous year third profit and loss comprehensive Period
level changes recognized in
level income the profit and loss
◆Trading financial assets 156,182,449.34 9,027,268.94 910,000,000.00 1,075,209,718.28
Financial assets at fair value
through profit or loss in this 156,182,449.34 9,027,268.94 910,000,000.00 1,075,209,718.28
period
— Investment in debt
instruments
— Investment in equity
instrument
— Derivative Financial Assets
— Bank financial products 156,182,449.34 9,027,268.94 910,000,000.00 1,075,209,718.28
Designated financial assets that
are measured at fair value and
whose changes are included in
the current profit and loss
— Investment in debt
instruments
— Others
◆Receivables Financing
◆Investment in other bonds
◆Investment in other equity
224,266,596.74 -45,020,144.84 92,760,615.31 86,485,836.59
instruments
◆Other non-current financial
assets
Financial assets at fair value
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Total current gain or loss Acquisition, issuance, sale and settlement For assets held at the
Transfer
Transfer end of the reporting
Balance at the from Recognized in Balance at the
to the period, the current
Item end of the the Recognized in other End of the
third Acquisition Issuance Sale Settlement unrealized gains or
previous year third profit and loss comprehensive Period
level changes recognized in
level income the profit and loss
through profit or loss in this
period
— Investment in debt
instruments
— Investment in equity
instrument
— Derivative Financial Assets
— Others
Total 380,449,046.08 9,027,268.94 -45,020,144.84 910,000,000.00 1,167,970,333.59 86,485,836.59
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5. The fair value of financial assets and financial liabilities not measured at fair value
There is no significant difference between the book value and fair value of the company’s financial assets and financial liabilities
that are not measured at fair value.
XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
Proportion of voting
Name of parent Shareholding ratio of
Registered Address Business Nature Registered Capital rights of the parent
company the parent company
company
Industrial
Hangzhou investment,
Songcheng Group Hangzhou educational services, RMB 100 million 29.48% 29.48%
Holdings Co., Ltd tourism project
development
Description of the parent company
Huang Qiaoling and related persons acting in concert directly hold 16.48% of the shares of the company. Hangzhou Songcheng
Group Holdings Co., Ltd., the controlling shareholder of the company, holds 29.48% of the shares. Huang Qiaoling and related
persons acting in concert directly and indirectly hold 100.00% of the shares of Hangzhou Songcheng Group Holdings Co., Ltd.
Huang Qiaoling and related persons acting in concert: Huang Qiaolong, Liu Ping, Huang Qiaoyan and Dai Yinqin
Huang Qiaoling and related persons in concert control the company by directly and indirectly holding of the shares.
The ultimate controlling party of the company is Huang Qiaoling.
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2. Information about the Company's subsidiaries
See "IX. Interest in Other Entities" in the notes for details of subsidiaries of the Company.
3. Information about the Company's joint ventures and affiliates
See "IX. Equities in other entities" in the notes for details of significant joint ventures and associates of the Company.
Information about other joint ventures or associated enterprises that have related transactions with the Company in the current
period, or have balance resulting from related transactions with the Company in the last period is as follows:
Names of joint ventures and affiliates Relationship with the Company
Beijing Beite Shengdi Technology Development Co., Ltd. Affiliate
4. Information about other related parties
Names of other related parties Relationship between the Company and other related parties
Huang Qiaolong Related natural person of Huang Qiaoling
Liu Ping Related natural person of Huang Qiaoling
Huang Qiaoyan Related natural person of Huang Qiaoling
Dai Yinqin Related natural person of Huang Qiaoling
Hangzhou World Leisure Expo Park Co., Ltd Under the control of Huang Qiaoling
Hangzhou Songcheng Industry Co., Ltd Under the control of Huang Qiaoling
Hangzhou First World Hotel Co., Ltd. Under the control of Huang Qiaoling
Xi'an International Horticultural Exposition Investment (Group)
Holds 20% of the company’s holding subsidiary
Co., Ltd.
Shanghai World Expo Dongdi Cultural Development Co., Ltd. Holds 12% of the company’s holding subsidiary
Guangzhou Gening Green Engineering Co., Ltd. Holds 35% of the company’s holding subsidiary
Zhongshan Dehua Green Engineering Co., Ltd. Holds 10% of the company’s holding subsidiary
5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision and acceptance of
labor services
Merchandise purchase and acceptance of labor services
Unit: RMB
This Period's Previous Period's
Content of the related - Approved Over the transaction
Related parties Amount of Amount of
party transaction transaction limit limit or not
Occurrence Occurrence
Beijing Beite Delegation of the scenic 15,631,222.17 No 29,155,963.23
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Shengdi Technology spot-related projects
Development Co.,
Ltd.
Shanghai World
Expo Dongdi
Cultural Brand usage fee 3,773,584.81 No 9,433,962.00
Development Co.,
Ltd.
Sales of merchandise and provision of services
Unit: RMB
Content of the related - party This Period's Amount of Previous Period's Amount of
Related parties
transaction Occurrence Occurrence
Hangzhou First World Hotel Co., Ticket sale and e-commerce
2,872,060.20 1,602,205.39
Ltd. service fees
Hangzhou Songcheng Industry Ticket sale and e-commerce
3,998,902.82 2,509,701.38
Co., Ltd service fees
Related-party transactions involving purchase and selling of merchandise and provision and acceptance of labor services
(2) Related leasing
The company as the lessee:
Unit: RMB
Rental fee confirmed in the Rental fee confirmed in the
Name of Lessor Type of the leased assets
current period previous period
Parking Lot at No. 148, Zhijiang
Hangzhou Songcheng Industry
Road (Area of 27,667 square 10,783,037.03 6,225,062.50
Co., Ltd
meters)
American City parking lot at No.
Hangzhou Songcheng Industry
148, Zhijiang Road ( Area of 13,185 5,138,780.09 2,966,625.00
Co., Ltd
square meters)
Operation of the scenic spot of the
Hangzhou Songcheng Industry American City teaching building at
2,849,912.04 1,423,690.48
Co., Ltd No. 148 Zhijiang Road ( Area of
3,322 square meters)
Operation of scenic spots in
Hangzhou Songcheng Industry
American City at No. 148, Zhijiang 3,315,801.99 1,656,428.58
Co., Ltd
Road ( Area of 7,730 square meters)
Office building at No. 148, Zhijiang
Hangzhou Songcheng Industry
Road (Area of 5,591.53 square 4,796,998.46 2,396,369.06
Co., Ltd
meters)
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President Hill supporting housing
Hangzhou Songcheng Industry and dormitory rooms of Huamei
3,204,095.64 1,600,625.00
Co., Ltd apartment at No. 148, Zhijiang
Road, (Area of 7,114 square meters)
Office space of north building of the
Hangzhou First World Hotel
First World Hotel (Area of 3,000 2,668,866.11 472,500.00
Co., Ltd.
square meters)
Hangzhou World Leisure Expo Parking lot at No. 92 Xianghu road
8,644,052.01 4,318,187.50
Park Co., Ltd (Area of 19,192 square meters)
Staff dormitory of Water City of
Hangzhou World Leisure Expo
Creative Park at No. 92 Xianghu 1,355,704.03 677,250.00
Park Co., Ltd
Road (Area of 3,010 square meters)
The European style and
international exhibition area of Xi’an
Xi'an International Horticultural
World Expo Park, at Shibo Avenue,
Exposition Investment (Group) 2,752,293.60 1,444,954.14
Chanba Ecological Zone, Xi’an City
Co., Ltd.
(Total area of 78,743.94 square
meters)
Shanghai World Expo Dongdi Shanghai World Expo Stage (total
7,594,814.56
Cultural Development Co., Ltd. area: 18,039 square meters)
Explanations of other matters: The New Lease Standard should apply in the current period. The lease fee recognized in the current
period should be the amortization of right-of-use assets and interest expense on lease liabilities.
(3) Remuneration for key management personnel
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Salary of key management personnel 4,220,700.00 3,808,500.00
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Item Name Related parties
Book balance Bad debt provision Book balance Bad debt provision
Other Receivables
Shanghai World Expo
Dongdi Cultural 10,000,000.00 200,000.00
Development Co., Ltd.
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(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
Accounts Payable
Beijing Beite Shengdi Technology
5,213,409.47 3,797,469.47
Development Co., Ltd.
Other Payables
Xi'an International Horticultural
Exposition Investment (Group) Co., 379,021.00 355,000.00
Ltd.
Guangzhou Gening Green
2,531,680.00
Engineering Co., Ltd.
Zhongshan Dehua Green
686,011.00
Engineering Co., Ltd.
Beijing Beite Shengdi Technology
13,172,055.00
Development Co., Ltd.
Other non-current liabilities
due within one year
Hangzhou World Leisure Expo Park 3,393,481.86
Co., Ltd
Hangzhou First World Hotel Co., Ltd. 894,390.44
Shanghai World Expo Dongdi 2,533,788.67
Cultural Development Co., Ltd.
Hangzhou Songcheng Industry Co., 17,434,147.53
Ltd
Lease Liabilities
Hangzhou World Leisure Expo Park 98,266,967.49
Co., Ltd
Hangzhou First World Hotel Co., Ltd. 25,750,021.28
Shanghai World Expo Dongdi 65,526,253.71
Cultural Development Co., Ltd.
Hangzhou Songcheng Industry Co., 180,855,294.86
Ltd
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XIII. Share-based payment
1. Overview of share-based payment
□ Applicable √ Not applicable
2. Situation of equity-settled share-based payment
□ Applicable √ Not applicable
3. Situation of cash-settled share-based payment
□ Applicable √ Not applicable
XIV. Commitments and contingencies
1. Important commitments
Important commitment on the balance sheet date
On Monday, June 21, 2021, the 11th Meeting of the Seventh Board of Directors of the Company reviewed and approved the
"Proposal on Using Idle Self-owned Funds to Invest in Securities and Wealth Management Products". It agreed that the Company
may use idle self-owned funds to invest in securities and financial products, so as to maintain and increase the value of idle funds on
the basis of ensuring safety and liquidity, provided that the capital is secured, that the operation is legal and compliant, and that
normal production and operation are not affected. The amount should not exceed RMB 1.5 billion. The funds within this limit can
be used on a rolling basis. The valid period is 2 years from the date of approval by Board of Directors. The management of the
Company is authorized to exercise the right to make investment decisions and sign relevant legal documents within the limit.
2. Contingencies
(1) Important contingent matters on the balance sheet day
The company has no important contingencies that need to be disclosed.
(2) If no important contingent matter to be disclosed by the Company, it should also be noted accordingly
No important contingent matter needs to be disclosed by the Company.
XV. Events after the Balance Sheet Date
1. Distribution of profits
Unit: RMB
Profits or dividends to be distributed 130,734,702.00
Profits or dividends reviewed and approved for releasing 130,734,702.00
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2. Description of other matters after the balance sheet date
(I) Distribution of profits
According to the 2021 Annual Profit Distribution Plan adopted at the 15th Meeting of the Seventh Board of Directors of the
Company held on Friday, April 22, 2022, the Company plans to distribute RMB 0.50 dividend (Including tax) in cash for every 10
shares to all shareholders based on the total share capital of 2,614,694,040 shares at the end of 2021. Total cash dividend of RMB
130,734,702 was distributed.
(2) Transfer of post-period equity
1. According to the Share Transfer Agreement dated April 22, 2022 between the Company and Hangzhou Songcheng Group Holdings
Co., Ltd. (hereinafter referred to as “Songcheng Group”) and the Proposal on the Transfer of Equity of Hong Kong Subsidiary and
Related Transaction reviewed and approved at the 15th Meeting of the 7th Board of Directors of the Company on the same day, as
affected by COVID-19, geopolitical and other factors which make the current overseas assets uncertain, in order to improve the
Company's financial security and promote the healthy development of its business, after full consultation with Hangzhou Songcheng
Group Holdings Co., Ltd., the controlling shareholder of the Company, the Company plans to arrange Songcheng Group to acquire
100% equity and claims of Songcheng Performance International Development Co., Ltd., a Hong Kong wholly-owned subsidiary of
Songcheng Performance. After the auditing and evaluation of the acquisition price, both parties agreed after negotiation to set the
transaction price of equity transfer at RMB 574 million and measured the debt formed before acquisition at RMB 20.05 million, and
thus the total transaction consideration mounted to RMB 594.05 million. This equity transfer needs to be reviewed and approved by
the General Meeting of Shareholders of Songcheng Performance.
2. According to the Share Transfer Agreement dated April 22, 2022 between the Company and Hangzhou Songcheng Group Holdings
Co., Ltd. and the Proposal on the Transfer of Equity of Zhuhai Subsidiary and Related Transaction reviewed and approved at the 15th
Meeting of the 7th Board of Directors of the Company on the same day, Zhuhai Project has a high investment amount, a large
project scale and a long construction period. Since the outbreak of the COVID-19, the Company's operation and cash flows have
changed due to changes in the external environment. In order to enhance the Company's sustainable operation and anti-risk ability,
after full consultation with Hangzhou Songcheng Group Holdings Co., Ltd., the controlling shareholder of the Company, the
Company plans to arrange Songcheng Group to acquire 100% equity and claims of Zhuhai Songcheng Performance Kingdom Co.,
Ltd., a wholly-owned subsidiary of Songcheng Performance. After the auditing and evaluation of the acquisition price, both parties
agreed after negotiation to set the transaction price of equity transfer at RMB 451 million and measured the debt formed before
acquisition at RMB 6.9261 million, and thus the total transaction consideration mounted to RMB 457.9261 million. Songcheng
Group will be responsible for the follow-up investment and construction of Zhuhai Songcheng Performance Park Project, while
Songcheng Group will entrust Songcheng Performance to operate and manage theme parks. This equity transfer needs to be
reviewed and approved by the General Meeting of Shareholders of Songcheng Performance.
XVI. Other Significant Events
1. Segment information
(1) Basis for determining the report segment and accounting policies
The company determines the operating segment based on the internal organizational structure, management requirements, and
internal reporting system and then determines the reporting segment based on operating segment.
Operating segment refers to the component within the company that meets the following conditions at the same time: (1) The
component can generate income and expenses in daily activities; (2) The management of the company can regularly evaluate the
operating results of such component so as to determine the allocation of resources to it and evaluate its performance; (3) The
company can obtain the accounting information of the component, such as the financial status, operating results and cash flow
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etc.,.
The company reporting segment includes:
1) Live performance: refers to all business related to on-site parks and theaters as the reporting segment, including Hangzhou
Songcheng Park, Hangzhou Crazy Appleland Hangzhou Paradise Park, Sanya Romance Park, Lijiang Romance Park, Jiuzhai Romance
Park, Tibetan Mystery Theater, Guilin Romance Park, Zhangjiajie Romance Park, Xi'an Romance Park, and Shanghai Romance Park;
2) Tourism service industry: refers to the reporting segment of e-commerce, design and planning.
(2) Financial information of the report segment
Unit: RMB
Item Live performance Tourism service industry Inter-segment offset Total
The revenue from main
960,863,721.01 172,196,745.54 94,339.62 1,132,966,126.93
business
Main business cost 573,261,525.94 4,507,352.09 436,468.07 577,332,409.96
Total assets 9,195,621,252.65 2,035,931,535.94 1,405,044,758.75 9,826,508,029.84
Total amount of liabilities 2,910,199,291.47 313,375,164.28 1,352,276,626.05 1,871,297,829.70
XVII. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Book balance Bad debt provision Book balance Bad debt provision
Category
Accrued Book value Accrued Book value
Amount Percentage Amount Amount Percentage Amount
proportion proportion
Including:
Accounts receivables with
the bad debt provision
147,558.45 100.00% 31,224.97 21.16% 116,333.48 52,370.14 100.00% 14,145.24 27.01% 38,224.90
accrued based on
combinations
Including:
Combination of credit risk
133,167.24 90.25% 31,224.97 23.45% 101,942.27 38,179.30 72.90% 14,145.24 37.05% 24,034.06
characteristics by age
Consolidation scope and
accounts receivable from 14,391.21 9.75% 14,391.21 14,190.84 27.10% 14,190.84
related parties
Total 147,558.45 100.00% 31,224.97 116,333.48 52,370.14 100.00% 14,145.24 38,224.90
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Bad debt provision based on combinations
Unit: RMB
Balance at the End of the Period
Name
Book balance Bad debt provision Accrued proportion
Within credit period 3.00%
Credit period overdue within 1 year 95,668.44 14,350.27 15.00%
Credit period overdue within 1 to 2 years 27,498.80 6,874.70 25.00%
Credit period overdue within 2 to 3 years 45.00%
Credit period overdue within 3 to 4 years 60.00%
Credit period overdue within 4 to 5 years 80.00%
Credit period overdue for more than 5 years 10,000.00 10,000.00 100.00%
Total 133,167.24 31,224.97 --
Description for basis of determining the group:
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the bad debt
provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 110,059.65
1 to 2 years 27,498.80
2 to 3 years
3 to 4 years
4 to 5 years
5 years or above 10,000.00
Total 147,558.45
(2) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Amount of Changes in the Current Period
Balance at the Balance at the
Category Recovered or
Start of the Period Accrued Written Off Others End of the Period
Reversed
Provision for bad
debts of accounts 14,145.24 17,079.73 31,224.97
receivable
Total 14,145.24 17,079.73 31,224.97
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(3) Accounts receivable actually written off in this period
There are no accounts receivable actually written off in the current period.
(4) Accounts receivable of the top five balances at the end of the period collected by the arrears
Unit: RMB
Proportion of the total
Accounts receivable at the Bad debt provision at the end
Name of Unit accounts receivable at the
end of the period of the period
end pf the period
Henan Longgui Cultural Tourism
123,167.24 83.47% 21,224.97
Development Co., Ltd.
Xi'an Romance Performance
14,391.21 9.75%
Development Co., Ltd
He Xiaojuan 10,000.00 6.78% 10,000.00
Total 147,558.45 100.00%
2. Other receivables
Unit: RMB
Item Balance at the End of the Period Balance at the Start of the Period
Interest Receivable
Dividends Receivable
Other Receivables 1,195,669,385.02 1,046,160,763.74
Total 1,195,669,385.02 1,046,160,763.74
(1) Other Receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Employee loan 210,000.00 1,378,749.73
Incomings and outgoings 1,050,000.00 1,050,000.00
Internal current account within the scope
1,195,025,912.64 1,025,718,037.61
of consolidation
Equity transfer fund 79,866,980.26 79,866,980.26
Others 439,972.10 458,024.14
Total 1,276,592,865.00 1,108,471,791.74
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2) Bad debt provision
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses in the next 12 the entire extension the entire extension (with
months (without credit impairment) credit impairment)
Balance on Friday,
18,367.74 62,292,660.26 62,311,028.00
January 1, 2021
Balance of the current
period on Friday, January —— —— —— ——
1, 2021
Provisions of this period -11,868.02 18,624,320.00 18,612,451.98
Balance on Friday,
6,499.72 80,916,980.26 80,923,479.98
December 31, 2021
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 1,195,515,884.74
1 to 2 years 40,000.00
2 to 3 years
3 to 4 years 100,000.00
4 to 5 years 79,866,980.26
5 years or above 1,070,000.00
Total 1,276,592,865.00
3) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Amount of Changes in the Current Period
Balance at the Balance at the End
Category Recovered or
Start of the Period Accrued Written Off Others of the Period
Reversed
Provision for bad
debts of other 62,311,028.00 18,612,451.98 80,923,479.98
receivables
Total 62,311,028.00 18,612,451.98 80,923,479.98
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4) Accounts receivable actually written off in this period
There's no actual written-off accounts receivable in this period.
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage of
Nature of the Balance at the End of total other Bad debt provision at
Name of Unit Aging
funds the Period receivables at the the end of the period
end of the period
Shanghai Songcheng World Consolidation of
Expo Performance internal current 498,650,000.00 Within 1 year 39.06%
Development Co., Ltd account
Zhangjiajie Romance Consolidation of
Performance Development internal current 482,251,809.00 Within 1 year 37.78%
Co., Ltd account
Zhejiang Songcheng Xitang
Consolidation of
Performance Valley
internal current 178,353,003.64 Within 1 year 13.97%
Performance Development
account
Co., Ltd
An Xiaofen (formerly:
Equity transfer
Horgos Dasheng Legend 79,866,980.26 4-5 years 6.26% 79,866,980.26
fund
Venture Capital Co., Ltd.)
Consolidation of
Songcheng (Australia)
internal current 20,051,100.00 Within 1 year 1.57%
Entertainment Pty Ltd.
account
Total -- 1,259,172,892.90 -- 98.64% 79,866,980.26
3. Long-term equity investment
Unit: RMB
Balance at the End of the Period Balance at the Start of the Period
Item Provision for Provision for
Book balance Book value Book balance Book value
decline in value decline in value
Investment in
6,667,904,199.20 6,667,904,199.20 4,940,162,163.79 4,940,162,163.79
subsidiaries
Investment in
affiliates and joint 3,307,758,983.34 1,814,682,876.81 1,493,076,106.53
ventures
Total 6,667,904,199.20 6,667,904,199.20 8,247,921,147.13 1,814,682,876.81 6,433,238,270.32
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(1) Investment in Subsidiaries
Unit: RMB
Decrease/Increase in the current period
Balance at the Start Provision Balance at the Closing balance
The invested
of the Period (book Investments Investment for End of the Period of provision for
entity Others
value) increased decreased impairment (book value) decline in value
accrued
Hangzhou
638,402,523.46 638,402,523.46
Paradise Co., Ltd.
Sanya Romance
Tourism
490,000,000.00 490,000,000.00
Performance Co.,
Ltd.
Lijiang Chama
Ancient City
Tourism 250,000,000.00 250,000,000.00
Development Co.,
Ltd
Aba Zhou Jiuzhai
Romance Tourism
258,500,000.00 258,500,000.00
Development Co.,
Ltd
Hangzhou
Songcheng
Tourism 10,000,000.00 10,000,000.00
Development Co.,
Ltd
Jiuzhaigou
Tibetan Mystery 87,000,000.00 87,000,000.00
Culture Co., Ltd
Zhejiang
Songcheng
Longquan
120,000,000.00 120,000,000.00
Mountain Tourism
Development Co.,
Ltd
Hangzhou
Songcheng
39,530,000.00 39,530,000.00
Technology
Development Co.,
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Ltd.
Songcheng
Performance
International 606,367,375.19 13,000.00 606,380,375.19
Development Co.,
Ltd.
Shanghai
Songcheng World
Expo Performance 132,000,000.00 132,000,000.00
Development Co.,
Ltd
Songcheng
Performance
Development 500,000.00 500,000.00
(Shanghai) Co.,
Ltd.
Guilin Lijiang
Romance
Performance 455,000,000.00 455,000,000.00
Development Co.,
Ltd
Zhangjiajie
Romance
Performance 120,000,000.00 120,000,000.00
Development Co.,
Ltd
Songcheng
Performance
500,000.00 500,000.00
Management Co.,
Ltd.
Songcheng
Dumuqiao 4,000,000.00 4,000,000.00
Network Co., Ltd.
Xi'an Romance
Performance
285,000,000.00 195,000,000.00 480,000,000.00
Development Co.,
Ltd
Zhejiang
Songcheng Xitang
Performance 100,000,000.00 100,000,000.00
Valley
Performance
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Development Co.,
Ltd
Foshan South Sea
Qiao Mountain
Cultural Tourism 448,950,800.00 448,950,800.00
Development Co.,
Ltd
Hangzhou
Songguo Cultural 2,350,000.00 2,350,000.00
Creative Co., Ltd.
Zhuhai Southern
Film and
6,702,418.93 6,702,418.93
Television Cultural
Industry Co., Ltd.
Zhuhai Songcheng
Performance 396,297,581.07 33,000,000.00 429,297,581.07
Kingdom Co., Ltd
Hangzhou
Songcheng
performance
Valley technology 489,061,465.14 489,061,465.14
and Culture
Development Co.,
Ltd
Romance Show
Management Co., 100,000.00 100,000.00
Ltd.
Global Bacchus
1,619,629,035.41 1,619,629,035.41
Limited
Total 4,940,162,163.79 1,847,742,035.41 120,000,000.00 6,667,904,199.20
(2) Investment in affiliates and joint ventures
Unit: RMB
Decrease/Increase in the current period
Balance at Investment Balance at Closing
Cash
the Start of profit and Adjustment Provision the End of balance of
Name of Other dividends
the Period Investments Investment loss on other for the Period provision
Investees changes in or profit Others
(book increased decreased recognized comprehen impairment (book for decline
equity declared to
value) under the sive income accrued value) in value
distribute
equity
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method
Ⅰ. Joint ventures
Ⅱ. Affiliates
Huafang
Group Inc.
(formerly
known as 1,493,076,1 -1,619,616, 113,757,23 12,880,740.
-97,880.37
Beijing 06.53 198.83 2.06 61
HuafangTec
hnology
Co., Ltd.)
1,493,076,1 -1,619,616, 113,757,23 12,880,740.
Subtotal -97,880.37
06.53 198.83 2.06 61
1,493,076,1 -1,619,616, 113,757,23 12,880,740.
Total -97,880.37
06.53 198.83 2.06 61
(3) Explanations of other matters:
Huafang Group Inc. (formerly Beijing Huafang Technology Co., Ltd.): The original shareholders of Beijing Huafang Technology Co.,
Ltd., including Songcheng Performance Development Co., Ltd., signed the VIE agreement, and Global Bacchus Limited, a
wholly-owned company subsidiary of the Company, acquired 37.06% equity of Huafang Group Inc. at the price of USD 1,976.4706
(equal to RMB 12,836.58). After signing the above agreement, Global Bacchus Limited, a wholly-owned subsidiary of the Company,
holds the 37.06% of the equity of Huafang Group Inc. and has all the rights and obligations pertaining to the 37.06% equity of
Beijing Huafang Technology Co., Ltd.
4. Operating income and operating costs
Unit: RMB
This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Item
Income Cost Income Cost
Main Business 5,329,888.31 8,462,698.28 15,832,779.35 19,532,790.64
Other businesses 3,533,799.39 7,059,972.03
Total 8,863,687.70 8,462,698.28 22,892,751.38 19,532,790.64
Related information of revenue:
Unit: RMB
Culture and art industry-live
Contract classification Other businesses Total
performance
Product types 5,329,888.31 3,533,799.39 8,863,687.70
Including:
(1) Art and Culture — Income 5,329,888.31 5,329,888.31
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from Hangzhou Songcheng
Tourist Area
(2) Other businesses 3,533,799.39 3,533,799.39
Contract type 5,329,888.31 3,533,799.39 8,863,687.70
Including:
(1) Revenue from contracts 5,329,888.31 55,076.34 5,384,964.65
Classified by the time of
5,329,888.31 55,076.34 5,384,964.65
commodity transfer
Including:
Confirm at time points 5,329,888.31 9,237.72 5,339,126.03
Confirm within a certain period
45,838.62 45,838.62
of time
(2) Revenue from rental
3,478,723.05 3,478,723.05
business in theme parks
Total 5,329,888.31 3,533,799.39 8,863,687.70
Information related to performance obligations:
N/A
Information related to the transaction price allocated to the remaining obligations:
At the end of this report period, the amount of income corresponding to the obligations according to the contract signed that have
not been performed or completed is RMB 0.00.
5. Investment income
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Long-term equity investment income
432,000,000.00
calculated by cost method
Long-term equity investment income
113,303,617.66 -2,931,524.95
measured by equity method
Investment income from disposal of
-10,800,700.00 -6,520,482.12
long-term equity investment
Investment income from disposal of trading
7,586,792.45 2,412,380.45
financial assets
Total 110,089,710.11 424,960,373.38
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XVIII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses from disposal of
25,044,233.19
non-current assets
Government subsidies included in the
current profits and losses (except those
closely related to the Company’s normal
business, and continuously granted in 4,656,601.31
accordance with a certain standard quota or
quantity set by national policies and
regulations)
In addition to the effective hedging business
related to normal business of the Company,
the profits and losses from the changes in
fair value for holding trading financial assets
13,096,973.83
and trading financial liabilities, and
investment income from disposal of trading
financial assets, trading financial liabilities,
and available-for-sale financial assets.
Non-Operating Revenue and expenses other
3,502,874.67
than the above
Less: Impact of income tax -2,293,110.04
Impact of minority equity 1,272,744.78
Total 47,321,048.26 --
Details of other gain and loss items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company did not have any details of other gain and loss items that meet the definition of non-recurring gains and losses.
Description of defining the non-recurring gain and loss items, which are listed in Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and loss items
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit for the reporting period Weighted Average ROE Basic Earnings per Share Diluted Earnings per
(RMB/Share) Share (RMB/Share)
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Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd
Net profit attributable to common
4.22% 0.1205 0.1205
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
3.58% 0.1024 0.1024
deducting non-recurring gains and
losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial reports disclosed pursuant to international
accounting standards and Chinese accounting standards at the same time
□ Applicable √ Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed pursuant to foreign accounting
standards and Chinese accounting standards at the same time
□ Applicable √ Not applicable
Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021
年年度报告”), and the published annual report in the Chinese version shall prevail. The
complete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn.
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