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宋城演艺:2021年年度报告(英文版)2022-05-17  

                                      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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                 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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                                                Full Text of 2021 Annual Report of Songcheng Performance Development Co., Ltd


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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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


                                                                                                                                     46
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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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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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        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


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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


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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:



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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.




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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


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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



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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


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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



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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




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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


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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



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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




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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



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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



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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

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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




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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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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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