2019
StockCode:000613,200613ShortFormoftheStock:Dadonghai-A,Dadonghai-B
海南大东海旅游中心股份有限公司HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
AnnualReport2019
DisclosureDate:21March2020
2019
SectionI.ImportantNotice,ContentsandInterpretationImportantNotice:
BoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.YuanXiaoping,PrincipaloftheCompany,FuZongren,personinchargeofaccountingworksandFuZongren,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportof2019AnnualReportisauthentic,accurateandcompleteAlldirectorsareattendingtheBoardMeetingforReportdeliberation.TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors.Investorsareadvisedtoexercisecautionofinvestmentrisks.
Content
SectionIImportantNotice,ContentsandInterpretation............................................
SectionIICompanyProfileandMainFinancialIndexes ...... 5
SectionIIISummaryofCompanyBusiness ...... 10
SectionIVDiscussionandAnalysisofOperation ...... 12
SectionVImportantEvents ...... 24
SectionVIParticularaboutChangesinsharesandshareholders ...... 37
SectionVIIPreferredStock ...... 45
SectionVIIIConvertibleBonds ...... 46
SectionIXParticularsaboutDirectors,Supervisors,SeniorExecutivesandEmployees ...... 47
SectionXCorporateGovernance ...... 54
SectionXICorporateBond ...... 62
2019
SectionXIIFinancialReport ...... 63
SectionXIIIDocumentsavailableforreference ...... 91
2019
InterpretationItemsReferstoContentsCSRCReferstoChinaSecuritiesRegulationCommissionSSEReferstoShenzhenStockExchangeCompanyLawReferstoCompanyLawofThePeople’sRepublicofChinaSecuritiesLawReferstoSecuritiesLawofThePeople’sRepublicofChinaRulesofListingReferstoRulesGoverningtheListingofstocksonShenzhenStockExchangeCompanyortheCompanyReferstoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.ArticleofAssociationRefersto
ArticleofAssociationofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.Shareholders’GeneralMeetingRefersto
Shareholders’GeneralMeetingofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.BoardRefersto
BoardofDirectorsofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.SupervisoryCommitteeRefersto
SupervisoryCommitteeofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.Luoniushan,thelargestshareholderReferstoLuoniushanCo.,Ltd.YuanReferstoCNY/RMBInthereportingperiod,thereportingperiodRefersto1January2019to31December2019
MajorRiskWarningConcerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors.Investorsareadvisedtoexercisecautionofinvestmentrisks.SecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn)arethemediaforinformationdisclosureappointedbytheCompanyforyearof2020,allinformationunderthenameoftheCompanydisclosedontheabovesaidmediashallprevail.ThereportispreparedinbilingualversionsofChineseandEnglishrespectively,intheeventofanydiscrepancyinunderstandingthetwoaforementionedversions,theChineseversionshallprevail.Investorsareadvisedtoexercisecautionofinvestmentrisks.
2019
SectionIICompanyProfileandMainFinancialIndexesI.CompanyinformationShortformofthestockDadonghai-A,Dadonghai-BStockcode000613,200613ShortformoftheStockafterchanged
N/AStockexchangeforlistingShenzhenStockExchangeNameoftheCompany(inChinese)ShortformoftheCompany(inChinese)ForeignnameoftheCompany
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.ForeignnameofshortformoftheCompany
DADONGHAILegalrepresentativeYuanXiaopingRegistrationsadd.DadonghaiSanyaCodeforregistrationsadd572021Officesadd.DadonghaiSanyaCodesforofficeadd.572021Companywebsite——Emailhnddhhn@21cn.comII.Person/Waytocontact
SecretaryoftheBoardRep.ofsecurityaffairsNameWangHongjuanContactadd.DadonghaiSanyaTel.0898-88219921Fax.0898-88214998E-mailhnddhhn@21cn.com
2019
III.InformationdisclosureandpreparationplaceNewspaperappointedforinformationdisclosureSecuritiesTimes,HongKongCommercialDailyWebsiteforannualreportpublishappointedbyCSRCwww.cninfo.com.cnPreparationplaceforannualreportSecuritydepartmentoftheCompanyIV.RegistrationchangesoftheCompanyOrganizationcodeUnifiedsocialcreditcode91460000201357188UChangesofmainbusinesssincelistingNochanges
Previouschangesforcontrollingshareholders
1.TheCompanylistedA-stockinJanuary1997,and96.327millionA-stocksharesareheldbyHainanDadonghaiTourismCentreGroupCo.,ltd.,a26.46%intotalsharecapitaloftheCompanyandisthefirstmajorityshareholderoftheCompanyalso.
2.On25December1998,thesharesheldbyHainanDadonghaiTourismCentreGroupCo.,ltdweretransfertoSanyaABCthroughthecourtsofjustice,andafterobtainedthesharesinDecember1998,SanyaABCentrustwholly-ownedsubordinateenterpriseSanyaBank-AgricultureIndustrialDevelopmentCorp.toholdtheaforesaidshares,thanthefirstmajorityshareholderoftheCompanycomestoSanyaBank-AgricultureIndustrialDevelopmentCorp.
3.On12December2000,theaforesaidequitywasstrippedtonameofChinaGreatwallAssetsManagementCorporation,thefirstmajorityshareholderoftheCompany.
4.On19September2001,ChinaGreatwallAssetsManagementCorporationenteredinto“EquityTransferAgreement”withHaikouFoodCo.,Ltdfor60millionsharestransfer;andgainedapprovalof[2002]No.:430fromMinistryofFinancedated18October2002,thanthefirstmajorityshareholderoftheCompanycomestoHaikouFoodCo.,Ltd.
5.On24April2008,HaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd.enteredintothe“Statement”,confirmedthatthe60millionsharesheldbyHaikouFoodCo.,Ltd.wereunderthenameofHaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd.,theshares’ownershiphavebeentransferdated29January2010.Therefore,HaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd.comestothefirstmajorityshareholderoftheCompany.V.OtherrelevantinformationCPAengagedbytheCompanyNameofCPABDOCHINAShuLunPanCertifiedPublicAccountantsLLPOfficesadd.forCPA4#Building,No.61,NanjingRd.(E),ShanghaiSigningAccountantsLiJinhua,ZhuMeirongSponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√Notapplicable
2019
FinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√Notapplicable
VI.MainaccountingdataandfinancialindexesWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
20192018
Changesoverlastyear
2017Operatingincome(RMB)25,935,405.4429,515,592.33-12.13%27,906,564.23Netprofitattributabletoshareholdersofthelistedcompany(RMB)
756,721.46653,282.1915.83%2,858,998.66Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses(RMB)
-1,078,091.71816,346.09-232.06%779,389.74Netcashflowarisingfromoperatingactivities(RMB)4,713,661.516,783,893.26-30.52%5,127,288.47Basicearningspershare(RMB/Share)0.00210.001816.67%0.0079Dilutedearningspershare(RMB/Share)0.00210.001816.67%0.0079ReturnonEquity0.97%0.84%0.13%3.78%
Year-endof2019
Year-endof2018
Changesover
endoflastyear
Year-endof2017Totalassets(RMB)87,521,184.2588,197,118.07-0.77%87,466,661.80Netassetsattributabletoshareholderoflistedcompany(RMB)
78,486,603.9677,788,696.290.90%77,135,414.10VII.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2019
VIII.Quarterlymainfinancialindex
InRMBFirstquarterSecondquarterThirdquarterFourthquarterOperatingincome9,293,216.584,948,744.463,650,589.508,042,854.90Netprofitattributabletoshareholdersofthelistedcompany
1,572,029.88-816,055.87-1,154,883.191,155,630.64Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses
1,572,029.88-976,086.33-2,140,780.97466,745.71Netcashflowarisingfromoperatingactivities1,436,500.57-167,083.92-222,628.083,666,872.94Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedinthecompany’squarterlyreportandsemi-annualreport
□Yes√No
IX.Itemsandamountsofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMBItem201920182017NoteGains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)
2,151.45-29,691.26-30,016.43
IncomefromdisposaloffixedassetsGovernmentalsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,excludingthefixed-amountorfixed-proportiongovernmentalsubsidyaccordingtotheunifiednationalstandard)
292,643.89
RewardsfordevelopmentofinboundtourismmarketsupportingbythegovernmentandtaxcreditfortheVATinputtaxsurchargeCapitaloccupationfeeschargedbynonfinancialenterprisesrecordedinthecurrentprofitsandlosses
805,825.24Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems
1,540,017.83-133,372.641,303,800.11
IncomefromcompensationandliquidationTotal1,834,813.17-163,063.902,079,608.92--Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompanies
2019
OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
Inreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
2019
SectionIIISummaryofCompanyBusinessI.MainbusinessesofthecompanyinthereportingperiodTheCompany'smainbusinessishotelaccommodationandcateringservices.Procurementofgoodsismainlythegoodsandmaterialsnecessaryforhotelandcateringoperationsbytakingtheprincipleoflowpriceandfinequality,somegoodsarepurchasedbydirectlysigningpurchasecontractswithsuppliers,andsomegoodarepurchasedbyprocurementagents.Theoperationaremainlyincludingthenetworkbillingandoverseastravelagencyteam,andsupplementedbytheindividualtravelersofnon-internetmarketingandbusinessandthetouristsfromtravelagencies.ThehotelislocatedatthecentralzoneofDadonghaiscenicspotinSanyaCity,HainanProvince,andithasbecomeamemberofthenationwidefamoushotelsbecauseoftheconvenienttransportation,beautifulenvironment,longhistory,andrichculture.However,inrecentyears,thelocalhigh-,middle-andlow-gradehotelsorguesthousesnumerouslyemerge,resultinginthesupplymuchlargerthanthemarketdemand,theindustrycompetitionisratherfierce,andthepressureofdeclineinbusinessremains.II.Majorchangesinmainassets
1.Majorchangesinmainassets
MajorassetsNoteofmajorchangesMonetaryfunds
DecreasedRMB7.94millionwithadecreaseof52%comparedwiththeendoflastyear,mainlybecauseRMB
12.72millioninvestedindecorationandrenovationofthehotel,netcashflowfromoperationactivitieshaveRMB
4.71millionincreased.
Othercurrentassets
IncreasedRMB0.73millionwithanincreaseof39%comparedwiththeendoflastyear,mainlybecausetheVATinputtaxtobedeductibleincreased.Long-termdeferredexpenses
IncreasedRMB8.73millionwithanincreaseof312%comparedwiththeendoflastyear,mainlyduetothedecorationandrenovationofthehotel.
2.Mainoverseasassets
□Applicable√Notapplicable
III.CoreCompetitivenessAnalysisTheCompanytakeshotelaccommodationandcateringservicesastheprincipleworks,locatesatDadonghaibaywhichisoneoftheChina“Top40scenery”andtheonlyAAAAscenicspotopenforfreeinSanyaandhasthemaximumpassengerflowvolumeinSanyaCity,andisabouta5-minutedrivefromdowntownofSanyaCityand
2019
abouta30-munitedrivefromSanyaPhoenixAirport.Thehotelisonlytensofmetersdistantfromthesealevel,possessesbeautifullandscapingfullofbloomingflowersalltheyearround,andenjoysexceptionalgeography,naturalenvironmentaladvantages.ThehotelhasopenedformorethantwodecadeswhichisoneoftheoldesthotelsinSanyaandhasreceivedmanydomesticandforeignheadsofstateandnationalleaders.Intherecentyears,theCompanyhascomprehensivelyupgradedandrebuiltthehotel’ssoftwareandhardwarefacilities,furtherimprovedthehotelsinternalandexternalbusinessenvironment,andeffectivelyenhancedthebusinesscompetitiveness.Currently,themanagementofthecompany’shotelisstillinthefrontrankamonghotelsinthesamearea,withthesamescale,andatthesamelevel.Inthefuturework,theCompanywillkeeptryingtoimprovethehotel’sinternalandexternalbusinessenvironment,strengthenthesaleseffortsandthestaffconstruction,andfurtherimprovetheoperationalcapability.Duringthereportingperiod,theCompany'scorecompetencehadnosignificantchange.
2019
SectionIVDiscussionandAnalysisofOperation
I.IntroductionDuringthereportingperiod,thecompanyrealizedmainbusinessincomeof25,935,400Yuan,decreasedby3,580,200Yuancomparedwiththesameperiodlastyear(BuildingAoftheHotelwasclosedforfivemonthsduetothedecoration),adecreaseof12.13%;realizedoperatingprofitlossof785,400Yuan,decreasedby1,601,700Yuancomparedwiththesameperiodlastyear,adecreaseof196.21%;netnon-operatingincomeof1,542,200Yuan,increasedby1,705,200Yuancomparedwiththesameperiodlastyear,anincreaseof1045.74%;netprofitof756,700Yuan,increasedby103,400Yuancomparedwiththesameperiodlastyear,anincreaseof15.83%.Duringthereportingperiod,theCompanyfocusonmarket-oriented,activelytoexploitedthesaleschannel,enlargetheconstructionofsoftwareandhardwareequipment,strengtheningenterprisecultureconstructionaswellastheemployeeteam-building,strictlycontrollingthecostmanagement,wecompletedtheoperationtargetsthatformulatedatbeginningoftheyearbasically.Mainworksareas:
1.Continuetobemarket-orientedandactivelyexpandmarketingchannelsDuringthereportingperiod,thecompanycontinuedtobemarket-orientedandhadaflexiblemarketingmechanism.Whilefurtherstrengtheningitsexistingcustomers,italsostrengtheneditscooperationwithvariouswell-knownonlinesalesplatforms,domesticandoverseastravelagencies,andfirst-andsecond-tiercitydirectsalestravelagencies,andactivelyexpandedtheonlinemarkets,theRussianmarketandtheSouthwest,NorthChina,EastChinaandSouthChinamarkets,whicheffectivelyincreasedthemarketshare.Duringthereportingperiodexceptfortherenovationperiod,thecompany'soverseassalesrevenue,onlinesalesrevenue,conferenceteamandtravelagencysalesrevenueofindividualcustomersincreasedcomparedwiththesameperiodlastyear.
2.Increasetheconstructionofhotelsoftwareandhardwareequipmentandfacilities,improveproductqualityandenhancecompetitivenessDuringthereportingperiod,thehotelroomsandlobbycouldnotmeetthemarketdemandduetobeingseverelyagedandunrepairedforalongperiodoftime.Therefore,thecompanycarriedoutacomprehensivedesign,decorationandrenovationtoalltheguestroomsandlobby,restaurant,andslabpavementofBuildingAofthehotelduringtheoff-season,andcomprehensivelyupdatedthecorrespondingequipmentandfacilities.Atthesametime,inaccordancewiththe"people-oriented"conceptofemployment,thecompanystrengthenedcorporatecultureandstaffbuilding,enrichedtheculturallifeofemployees,createdaharmoniousworkingenvironment,andinnovatedemployeemanagementsystems.Basedonthebusinessphilosophyof“strengtheningthecompanywithquality”,thecompanycontinuouslystrengthenedhotelmanagementandskillstrainingforemployeestoimprove
2019
theirbasicknowledgeandpost-servicebusinesscapabilities,strengthenedemployees'businesslevel,serviceawareness,responsibilityawarenessandqualityawareness,effectivelyimprovedthehotelservicequalityandmanagementlevel,andenhancedthequalityandcomprehensivecompetitivenessofhotelproducts.
3.Keepstrictcostcontrol,standardizebusinessmanagement,improveinternalcontrolsystem,andmaximizecorporatebenefitsDuringthereportingperiod,thecompanycontinuedtostrengthenprocurementcostcontrolmanagementandbudgetmanagement,implementeddiversifiedprocurementcostinquirychannels,scientificallycontrolledoperatingcosts,strictlyandreasonablycontrolledvariousexpenses,andcarriedoutregularinspectionsandrepairstoeliminatewasteofresourcesandincreasethereasonabledegreeofprocurementcostsandtherevenuecost-effectiveness,strengthenedfinancialbusinessmanagement,andcleanedupandwrittenoffthelong-termoncreditaccountspayableinthebusinessprocessinaccordancewithrelevantregulations.Atthesametime,theCompanycontinuedtoimprovetheinternalcontrolsystem,strengthenregulationandimplementationofinternalcontrolsystem,strengthentheeffectiveimplementationofinternalcontrolwork,reducerisksandconsumption,increaserevenueandcontrolexpenditures,emphasizeproductionsafetyandimproveoperationalefficiency,andthusmaximizetheinterestsoftheCompanyasawhole.In2020,theCompanywillstrengthenthepreventionandcontrolofnovelcoronavirusepidemic,andcontinuetoconsolidateandexpendthesaleschannel,improvetheproductqualityofthehotelandservicestandards,enhancecomprehensivecompetitiveabilityinordertolayasolidfoundationfortheCompany’ssustainable,staleandhealthydevelopment.II.Mainbusinessanalysis
1.Introduction
Seethe“I-Introduction”in“DiscussionandAnalysisofOperation”
2.Revenueandcost
(1)Constituteofoperationrevenue
InRMB20192018
Increase/decreasey-o-yAmount
Ratioinoperationrevenue
Amount
RatioinoperationrevenueTotalofoperationrevenue
25,935,405.44100%29,515,592.33100%-12.13%Accordingtoindustries
2019
Tourismcateringservice
22,782,376.8287.84%26,442,049.4789.59%-13.84%Otherbusiness3,153,028.6212.16%3,073,542.8610.41%2.59%AccordingtoproductsRoomrevenue20,039,795.1377.26%22,731,299.1577.02%-11.84%Cateringentertainmentrevenue
2,742,581.6910.58%3,710,750.3212.57%-26.09%Otherbusiness3,153,028.6212.16%3,073,542.8610.41%2.59%AccordingtoregionHainanarea25,935,405.44100.00%29,515,592.33-12.13%
(2)Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit
√Applicable□Notapplicable
InRMBOperatingrevenue
Operatingcost
Grossprofit
ratio
Increase/decreas
eofoperatingrevenuey-o-y
Increase/decreaseofoperating
costy-o-y
Increase/decrea
seofgrossprofitratio
y-o-yAccordingtoindustriesTourismcateringservice
22,782,376.8210,608,243.3853.44%-3,659,672.65%-672,431.16%-3.90%Otherbusiness3,153,028.62474,523.5684.95%79,485.76%0.00%0.39%AccordingtoproductsRoomrevenue20,039,795.139,178,168.1054.20%-2,691,504.02%-128,949.51%-4.86%Cateringentertainmentrevenue
2,742,581.691,430,075.2847.86%-968,168.63%-543,481.65%1.04%Otherbusiness3,153,028.62474,523.5684.95%79,485.76%0.00%0.39%AccordingtoregionHainanarea25,935,405.4411,082,766.9457.27%-3,580,186.89%-672,431.16%-2.91%Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end
□Applicable√Notapplicable
2019
(3)Incomefromphysicalsaleslargerthanincomefromlabors
□Yes√No
(4)Fulfillmentofthecompany’ssignedsignificantsalescontractsuptothisreportingperiod
□Applicable√Notapplicable
(5)Constituteofoperationcost
Industryclassification
InRMBIndustryclassification
Item
20192018
Increase/decreasey-o-yAmount
Ratioinoperationcost
Amount
RatioinoperationcostTourismcateringservice
Rawmaterial
1,389,703.6912.54%1,973,556.9316.79%-29.58%Tourismcateringservice
Salarywelfare
1,984,548.4117.91%2,092,195.7417.80%-5.15%Tourismcateringservice
Socialsecurityfund
384,039.293.47%391,177.513.33%-1.82%Tourismcateringservice
Waterandelectricity
1,314,413.7611.86%1,355,721.9911.53%-3.05%Tourismcateringservice
Depreciation
2,175,783.5019.63%2,160,828.6918.38%0.69%Tourismcateringservice
Repaircost1,624,631.0314.66%1,319,951.9711.23%23.08%Tourismcateringservice
Washingfee585,680.005.28%680,236.965.79%-13.90%Tourismcateringservice
Totalcost11,082,766.9495.72%11,755,198.1095.96%-5.72%Note:nil
(6)WhetherthechangesinthescopeofconsolidationinReportingPeriod
□Yes√No
(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinReportingPeriod
□Applicable√Notapplicable
2019
(8)Majorsalesandmainsuppliers
MajorsalesclientoftheCompany
Totaltopfiveclientsinsales(RMB)17,375,812.68Proportionintotalannualsalesvolumefortopfiveclients67.00%Ratioofrelatedpartiesinannualtotalsalesamongthetopfiveclients0.00%InformationoftopfiveclientsoftheCompanySerialNameSales(RMB)Proportionintotalannualsales
SanyaHaolideInternationalTravelServiceCo.,Ltd.
7,071,329.0027.27%
SanyaYouyiInternationalTravelAgencyCo.,Ltd.
5,816,013.0022.42%
ShanghaiHechengInternationalTravelServiceCo.,Ltd.
2,005,086.287.73%
Alipay(China)NetworkTechnologyCo.,Ltd.
1,460,917.405.63%
SanyaShengdaInternationalTravelAgencyCo.,Ltd.
1,022,467.003.94%Total--17,375,812.6867.00%Othersituationofmainclients:nil
□Applicable√Notapplicable
MainsuppliersoftheCompany
Totalpurchaseamountfromtopfivesuppliers(RMB)6,355,928.10Proportionintotalannualpurchaseamountfortopfivesuppliers83.65%Ratioofrelatedpartiesinannualtotalsalesamongthetopfivesuppliers0.00%InformationoftopfivesuppliersoftheCompanySerialNameSales(RMB)Proportionintotalannualsales
SanyaPowerSupplyBureauofHainanPowerGrid
2,421,353.1831.87%
SanyaYunfangFoodDistributionCo.,Ltd.
2,256,666.2129.77%3SanyaSinoFrenchWaterCo.,Ltd.680,904.388.96%4SanyaZhengzhuangIndustrialCo.,Ltd.588,857.607.75%
SanyaChangfengOceanNaturalGasSupplyCo.,Ltd.
408,146.735.37%Total--6,355,928.1083.65%OthernotesofmainsuppliersoftheCompany
2019
□Applicable√Notapplicable
3.Expenses
InRMB20192018
Increase/decreasey-o-y
NoteofmajorchangesSalesexpense5,606,474.475,619,079.95-0.22%-Managementexpense9,772,412.8610,133,021.97-3.56%-Financialexpense-175,760.38-188,278.606.65%-
4.R&Dexpenses
□Applicable√Notapplicable
5.Cashflow
InRMBItem20192018Y-o-ychangesSubtotalofcashin-flowfromoperationactivity
29,918,529.0533,598,344.85-10.95%Subtotalofcashout-flowfromoperationactivity
25,204,867.5426,814,451.59-6.00%Netcashflowfromoperationactivity4,713,661.516,783,893.26-30.52%Subtotalofcashin-flowfrominvestmentactivity
68,870.00100.00%Subtotalofcashout-flowfrominvestmentactivity
12,723,946.921,101,145.121,055.52%Netcashflowfrominvestmentactivity
-12,655,076.92-1,101,145.12-1,049.27%Netincreaseofcashandcashequivalent
-7,941,415.415,682,748.14-239.75%Mainreasonsfory-o-ymajorchangesinaspectofrelevantdata
√Applicable□Notapplicable
1.Subtotalofcashin-flowfrominvestmentactivityhas100%increaseovertheyearearlier,mainlybecausethereisa“Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets”occurredintheperiodwhilenosuchitemslastyear;
2.Subtotalofcashout-flowfrominvestmentactivityhas1055.52%increaseovertheyearearlier,mainlybecausethe“Cashpaidforpurchasingfixedassets,intangibleassetsandotherlong-termassets”has1056%upoverthatoflastyear;
3.Netincreaseofcashandcashequivalentdecreased239.752%overlastyear,mainlyresultedbythefollow:thenetcashflowfrom
2019
operationactivitydecreased30.52%overlastyearandnetcashflowfrominvestmentactivitydecreased1049.27%overlastyear.ReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany
□Applicable√Notapplicable
III.Analysisofthenon-mainbusiness
□Applicable√Notapplicable
IV.Assetsandliability
1.Majorchangesofassetscomposition
InRMBYear-endof2019Year-beginof2019
Ratiochanges
NotesofmajorchangesAmount
Ratiointotalassets
Amount
RatiointotalassetsMonetaryfund7,422,939.898.48%15,364,355.3017.43%-8.95%-Accountreceivable311,083.920.36%388,694.020.44%-0.08%-Inventory254,257.190.29%221,390.190.25%0.04%-Investmentrealestate
7,909,956.879.04%8,384,480.439.51%-0.47%-Fixassets35,075,195.9840.08%36,497,869.6541.41%-1.33%-Constructioninprogress488,522.100.56%0.00%0.56%-Othercurrentassets2,574,442.572.94%1,846,219.792.09%0.85%-Long-termamortizationexpenses11,520,179.3313.16%2,792,876.073.17%9.99%-
2.Assetsandliabilitymeasuredbyfairvalue
□Applicable√Notapplicable
3.Assetsrightrestrictiontillendofreportingperiod
NilV.Investment
1.Overallsituation
□Applicable√Notapplicable
2019
2.Themajorequityinvestmentobtainedinthereportingperiod
□Applicable√Notapplicable
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√Notapplicable
Thecompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√Notapplicable
TheCompanyhasnoderivativesinvestmentinthereportingperiod.
5.Applicationofraisedproceeds
□Applicable√Notapplicable
TheCompanyhasnoapplicationofraisedproceedsinthereportingperiod.VI.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√Notapplicable
TheCompanyhadnosalesofmajorassetsinthereportingperiod.
2.Salesofmajorequity
□Applicable√Notapplicable
VII.Analysisofmainholdingcompanyandstock-jointlycompanies
√Applicable□Notapplicable
Particularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%
InRMBCompanynameType
Mainbusiness
Registercapital
TotalassetsNetAssets
Operating
revenue
Operating
profit
Netprofit
2019
HainanWengaoTourismResourcesDevelopmentCo.,Ltd.
Subsidiary
Tourismdevelopment
10000001,000,956.001,000,908.200.001,152.731,139.93Notesofholdingandshareholdingcompanies
□Applicable√Notapplicable
Explanationonmainholdingandshare-holdingenterpriseVIII.StructuredvehiclecontrolledbytheCompany
□Applicable√Notapplicable
IX.FutureDevelopmentProspects
1.IndustrialdevelopmenttrendandcompetitionfacingtheCompanySanyaistheonlytropicalseasidecityinChinawithaworld-leadingeco-environment,andhasawonderfulairqualitythatcanbenumberedinChina,itownsanaboundmarineresourceswithuniqueresourceadvantage.Sanyahasageographicalpositionadvantageandunderthehelpofpreferentialpolicyofduty-freefortheinternationalizationoftourismisland,withtheimprovementofpeople’slifequalityinrecentyears,andenhancementoftourismconsumptionconsciousnessaswellasthesmogairandcoldclimateoutsidetheisland,thetourismmarketprospectshasagoodtrendinHainan.However,inreportingperiod,withtheslowgrowthofglobaleconomic,andvigorousdevelopmentinthetouristattractionsinandaroundthecountry,theconsumptioncostsinSanyacomesmoreandmoreexpensive,thetouristdiversionandthesupplyfargreaterthanthedemandwhilehomeinnhotelrapidlyexpandingblindly,themarketcompetitioncomesmoreandmoreintensify.Inaddition,withthesoaringoperationcostsandexpendituresforthesalaryofhospitalityindustryinSanyaandshrinkingoperationprofit,thehotelindustryfacedadownwardpressureonoperation.Inthefuturework,thecompanywillcontinuetostrengthentheupdatingandtransformationofthehotel’sequipmentandfacilities,improveandupgradethehardwareandsoftwareequipmentandfacilitiesandthequalityofinternalandexternalbusinessenvironment,enhancetheconstructionofenterprisecultureandstaffteams,improveservicelevelandservicequality,activelyexpandthesaleschannels,makefulluseoftheinternetplatform,expandthesalesnetwork,increasethemarketshare,andfurtherimprovethemanagementlevelandcorecompetitiveness.
2.Futuredevelopmentplansandoperationplanforyearof2020
(1)Market-oriented,continuestoimprovethequalitymanagementofthesoftwareequipmentandfacilitiesintheHotel,enhancingthehotelbrandimage,expandingmarketchannel,andcenterwithenterprisesperformance,makingthebrandmorebiggerandstrongerdrivenbypioneerandinvent.
(2)Continuetoexpandfinancingchannels,activelypromotetherestructuringworks,enrichtheindustrialconstruction,widenthecompanysize,increasedmoreprofitpointsinordertostrengthenthesustainability,stable
2019
andhealthilyoftheoperation.
(3)Continuetoperfectthecorporategovernancestructure,standardizethemanagementandoperation,andeffectivelycontroltherisks.
3.FunddemandsanduseplanrequiredforthefuturedevelopmentoftheCompanyTheCompanyutilizesownedfundsorfinancingmethodstoraisethefundsdemandedfordevelopment,andcompletesthedevelopmentplanningoftheCompany.
4.TherisksmaycauseadverseeffectsonthefuturedevelopmentstrategyandrealizationofoperationtargetoftheCompany
(1)MarcoPolicyrisks
Inordertonormalizeandoptimizetourismmarketorfurthertopromoteclear-partyconstruction,relateddepartmentsmayfurtherissuesomerelativepolicies.Whilethesepolicesmaycauserestrainandeffectonregionaltourismdevelopment.Mainbusinessincomemaybeaffectedsinceweareengagedintourismservice.Countermeasures:TheCompanywillfurthertoimprovethehardandsoftequipmentandfacilitiesofthehotelwhileexpandingthebusinessscope,andwinmoremarketsharesviahigh-classserviceandcomfortableenvironmentsoastoensurethemainbusinessincomelevel.
(2)Naturaldisasterrisks
Inrecentyears,variousnaturaldisasterstakeplacefrequently,HainanIslandbelongstooceanicclimate,wherehashighincidenceofdisastrousweatherinsummer.IfSanyabecomesthelandingplaceoftyphoon,itmaycausegreatdamagestothefacilitiesoftheCompanyandaffecttheCompany’snormaloperation.Countermeasures:TheCompanywillstrengthentheconstructionandmaintenanceforinfrastructure,continuetobuypropertyinsurances,positivelyadopteffectivepreventionmeasures,andimprovetheabilityofresistingnaturaldisasters.
(3)RisksofHR
Demandfortalentinaspectofhotelsalesandmanagementareincreasinglyduetotheconstantlyriseofhotelindustry,flowofhoteltalentedpeoplecomesmorewidespreadandmorefrequent,wemayfacetherisksofdevelopmentrestrainedfrombraindrain.Countermeasure:wewillcontinuetoimprovedthetalentintroduction,trainingsystem,incentivemechanism,remunerationandwelfareaswellasinsurancemechanism,strivetoattracttalent,cultivatethemandretainthem.Meanwhile,strengthenstaffqualityandskillsaswellasthemanagementability,furtherputtingmoreeffortsinenterprisecultureconstruction,enhancethecohesionintheCompany,andguaranteeastableofthecoremanagementandskilltechnicians.
(4)Operationalrisksofmainbusiness
Theglobalepidemicsituationofthenovelcoronavirusisserious,tourismandtravelserviceindustrysuffered
2019
heavylossesduetothesuspensionforepidemicprevention.Moreover,mainbusinessoftheCompanyistooperateasmallhotelwhichhassinglemainoperations,theoperationoflimitedprojects,thetourismmarketsituationandnumbersofthetouristshaveagreaterimpactontheCompany’sperformancedirectly.Countermeasures:scientificmanagementanddecision-makingshouldbeadoptedtostrengthentheawarenessofepidemicpreventionandriskprevention.Establishandimproverelevantsystemsandstandardizethemanagement.Furthermore,continuetomakeuseoftheoff-season,upgradingthedecorationofBuildingBanditsannexbuildingandtheBuildingCforimprovingtheproductqualityeffectively.Increasethesalesforce,onbasisoftheoriginalsalesnetwork,continuestodevelophigh-endtourismmarketinandoutofChinawiththesuperiorgeographicallocationandenvironmentaladvantages,improveoccupancyrate.Inaddition,continuetoexpandthefinancingchannelsandbusinessprojects,enrichtheindustrialstructuresforearningmoregrowthpointsinprofit.
X.Receptionofresearch,communicationandinterview
1.Inthereportperiod,receptionofresearch,communicationandinterview
√Applicable□Notapplicable
TimeWayTypeBasicsituationindexofinvestigation2019-10-11
Telephonecommunication
Individual
InvestorMr./Ms.HufromBeijing,operationperformanceofthe3Qanddisclosuredate,nomaterialsrequired2019-10-30
Telephonecommunication
Individual
InvestorMr./Ms.WangfromShanghai,share-mergerreformperformancebythemajorityshareholdersandnomaterialrequired2019-11-12
Telephonecommunication
Individual
InvestorMr./Ms.LongfromShenzhen,lawsuitoftheCompanyandnomaterialrequired2019-11-28
Telephonecommunication
Individual
InvestorMr./Ms.LinfromGuangdong,informationofthereleaseoftherestrictedsharesetc.,andnomaterialrequired2019-12-03
Telephonecommunication
Individual
InvestorMr./Ms.ChenfromHainan,informationofthelistingforemployeesharesetc.,andnomaterialrequired2019-12-20
Telephonecommunication
Individual
InvestorMr./Ms.ZhangfromGuangdong,annualoperationperformanceoftheCompanyandnomaterialrequiredReception(times)
Numberofhospitality
Numberofindividualreception
Numberofotherreception
Disclosed,releasedorletoutmajorundisclosedinformationNo
2019
SectionV.ImportantEvents
I.Profitdistributionplanofcommonstockandcapitalizingofcommonreservesplan
Formulation,ImplementationandAdjustmentofcommonstockProfitDistributionPolicyEspeciallyCashDividendpolicyduringtheReportingPeriod
□Applicable√Notapplicable
Profitdistributionplan(pre-plan)ofcommonstockandcapitalizingofcommonreservesplan(pre-plan)inlatestthreeyears(includingthereportingperiod)Accordingtotheauditingreportsissuedbycertifiedpublicaccountants,thenetincomerealizedinnearlythreeyears(includingthereportingperiod)wasusedtomakeupthelossesinthepreviousyear;theundistributedprofitduringthisreportingremainedaminus.TheCompanydidnottakeprofitallocationnorcapitalizationofcapitalreserveduringthereportingperiod.Cashdividendofcommonstockinlatestthreeyears(includingthereportingperiod)
InRMB
Yearfor
bonusshares
Amountforcash
bonus
(taxinclude
d)
Netprofitattributableto
common
stockshareholders
oflistedcompanyinconsolidationstatementfor
bonusyear
Ratioofthecash
bonusinnetprofitattributabletocommonstock
shareholdersof
listedcompany
containedin
consolidationstatement
Proportionforcashbonusbyotherways(i.e.sharebuy-backs)
Ratioofthecashbonusbyotherwaysinnetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement
Totalcashbonus(includingotherways)
Ratioofthetotalcashbonus(otherwaysincluded)innetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement20190.00756,721.460.00%0.000.00%0.000.00%20180.00653,282.190.00%0.000.00%0.000.00%20170.002,858,998.660.00%0.000.00%0.000.00%TheCompanygainsprofitsinreportingperiodandtheretainedprofitofcommonstockshareholdersprovidedbyparentcompanyispositivebutnoplanofcashdividendproposedofcommonstock
□Applicable√Notapplicable
II.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
□Applicable√Notapplicable
TheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherfortheyear.
2019
III.Implementationofcommitment
1.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
CommitmentsPromise
Typeofcommitments
Contentofcommitments
Commitmentdate
Commitmentterm
Implementation
CommitmentsforShareMergerReform
LuoniushanCo.,Ltd
CommitmentsforShareMergerReform
OnMay30,2007,LuoniushanCo.,Ltd.madecommitmentsintheCompany’s"Instructionsforreformofnon-tradableshares"(Revision)and"Instructionsforreformofnon-tradableshares"(Abstractofrevision)thatinviewofDadonghaiCompany’slossesinsuccessiveyearsandonthevergeofdelisting,inordertoreversethecompany'sbusinessdifficulties,improveprofitabilityandrecoverthecontinuousbusinesscapacity,LuoniushanCo.,Ltd.,thecontrollingshareholderofDadonghaiCompanymadecommitmentstoactivelyseekrestructuringpartiestoreorganizetheassetsofDadonghaiCompanyattheappropriatetime.
2017-06-27
months
TheoriginalplansofmaterialassetsreorganizationwasterminatedCommitmentsinreportofacquisitionorequitychangeCommitmentsinassetsreorganizationCommitmentsmakeininitialpublicofferingorre-financingEquityincentivecommitmentOthercommitmentsformediumandsmallshareholdersCompletedontime(Y/N)N
2019
Ifthecommitmentsisnotfulfilledontime,shallexplainthespecifyreasonandthenextworkplan
TheCompany'sstockcommencedsuspensionoftradingfromtheopeningsessionon15February2017asitplannedtofulfillitscommitments.On13August2017,12proposalsrelatingtoMaterialAssetAcquisitionandConnectedTransactionReport(Plan)ofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.weredeniedatthe11
thextraordinarygeneralmeetingofthe8
thsessionofboardofdirectorsoftheCompany.On15August2017,theCompanyannouncedtoterminatethisrestructuringrelatingtomaterialassetsacquisition,andthestockoftheCompanycommencedtradingsince17August2017.OnDecember4,2017,theboardofdirectorsandtheboardofsupervisorsofthecompanyreviewedandapprovedtheProposalontheChangeofCommitmentPeriodoftheFirstMajorityShareholderoftheCompany.LuoniushanCo.,Ltd.,thecompany’sfirstmajorityshareholderplannedforatwo-yearextensionforthetimelimitofthecompany’srestructuringcommitmentsinceDecember27,2017,thatis,thedeadlinefortheimplementationoftherestructuringcommitmentwaschangedtoDecember26,2019.OnDecember22,2017,thecompany’sfourthextraordinaryshareholders’meetingin2017didnotapprovetheproposal.OnJanuary31,2018,thecompanyreceivedtheNoticeonPlanningforSuspensionofMajorEventssentbyLuoniushanCo.,Ltd.,thecompany’slargestshareholder,toplanandpreparethemajorissuesrelatedtothecompany.Uponapplicationbythecompany,thecompany’sstock(stockshortname:DadonghaiA,DadonghaiB,stockcode:000613,200613)wassuspendedsincetheopeningonJanuary31,2018.Uponapplicationbythecompany,thecompany’sstockresumedtradingonFebruary8,2018,andwastransferredtothemajorassetrestructuringsincetheopeningonFebruary14,2018.OnJune25,2018,thecompanyheldthethirdinterimmeetingoftheninthboardofdirectorswhichreviewedandapprovedtheProposalonTerminatingthePlanningforMajorAssetRestructuring.Aftercarefulstudy,theboardofdirectorsofthecompanydecidedtoterminatetheplanningforthismajorassetrestructuring.Atpresent,thecompanyhasnoinformationthatshouldbedisclosedbutnotdisclosed
2.ConcerningassetsorprojectoftheCompany,whichhasprofitforecast,andreportingperiodstillinforecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
IV.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty
□Applicable√Notapplicable
Nonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.
2019
V.ExplanationfromBoardofDirectors,SupervisoryCommitteeandIndependentDirectors(ifapplicable)for“QualifiedOpinion”thatissuedbyCPA
□Applicable√Notapplicable
VI.Particularsaboutthechangesinaspectofaccountingpolicy,estimatesandcalculationmethodcomparedwiththefinancialreportoflastyear
√Applicable□Notapplicable
1.Changesinsignificantaccountingpolicies
(1)TheMinistryofFinancepromulgatedtheCircularoftheMinistryofFinanceonRevisingandIssuingthe2019VersionsofGeneralCorporateFinancialStatementTemplates(CaiKuai[2019]No.6)onApril30,2019,andRevisingandIssuingthe2019VersionofConsolidatedFinancialStatementsFormat(CaiKuai[2019]No.16)onSeptember19,2019,torevisethegeneralcorporatefinancialstatementtemplates.Mainimpactsareasfollows:
Contentofandreasonforchangesinaccountingpolicies
Procedures
forexaminationandapproval
Nameandamountofaffectedreportitem
Inthebalancesheet,"notesreceivableand
receivable"aredividedinto"notesreceivable"
accountsand
"accountsreceivable"."Notespayableand
andaccounts
payable"isdividedinto"notespayable"and
accounts"accounts
payable".Thecomparisondataareadjustedaccordingly.
ResolutionoftheBoardofDirectors
"Notesreceivableandaccounts"Notesreceivable"
"accountsand
"accountsreceivable"aredividedinto"notesreceivable"
andand
"accountsreceivable".Thebalanceof"notesreceivable"
andat
theendoflastyearisRBM0,whilethebalanceof
at"accounts
receivable"attheendoflastyearisRMB426,434.87;"Notespayableandaccountspayable"aredividedinto
"accounts"notes
payable"and"accountspayable".Thebalanceof
"notes"notes
payable"attheendofthepreviousyearisRBM0and
"notesthe
balanceof"accountspayable"attheendoftheprevious
theyear
isRBM1,607,835.81.
(2)In2017,theMinistryofFinancerevisedTheAccountingStandardsforBusinessEnterprisesNo.22--RecognitionandMeasurementofFinancialInstruments,theAccountingStandardsforBusinessEnterprisesNo.23--TransferofFinancialAssets,TheAccountingStandardsforBusinessEnterprisesNo.24--HedgeAccounting,andTheAccountingStandardsforBusinessEnterprisesNo.37--PresentationofFinancialInstruments.Therevisedstandardsstipulatethatforfinancialinstrumentswhoserecognitionhasnotbeenterminatedonthefirstimplementationdate,ifthepreviousrecognitionandmeasurementareinconsistentwiththerequirementsoftherevisedstandards,adjustmentsshallbemaderetroactively.Ifthedatainthepreviousfinancialstatementsarenotconsistentwiththerevisedstandards,noadjustmentisrequired.TheCompanywilladjust
2019
retainedearningsandothercomprehensiveearningsforthecumulativeimpactofretroactiveadjustmentsatthebeginningoftheyear.BasedonthebalanceattheendofthepreviousyearadjustedinaccordancewiththeprovisionsofCaiKuai[2019]No.6andCaiKuai[2019]No.16,themainimpactsoftheimplementationofthenewfinancialinstrumentstandardsareasfollows:
Contentofandreasonforchangesinaccounting
policies
Procedures
forexaminationandapproval
Nameandamountofaffectedreportitem
Provisionforexpectedcreditlossesismade
"financialassetsmeasuredatamortizedcost"
forand
"financialassets(debtinstruments)measuredat
andfair
valueandwhosechangesareincludedin
fairother
comprehensiveincome".
BoardofDirectors
Undistributedprofit:RMB58,813.79decreasedAccountsreceivable:RMB37,740.85decreasedOtherreceivables:RMB21,072.94decreasedOnthebasisofthebalanceattheendofthepreviousyearadjustedinaccordancewiththeprovisionsofCaiKuai[2019]No.6andCaiKuai[2019]No.16,theclassificationandmeasurementresultsoffinancialassetsandliabilitiesareasfollows:
Consolidated
(FormerFinancialinstrumentsstandards)
December31,2018
(Newfinancialinstrumentsstandards)
January1,2019Item
Measurement
category
BookvalueItemMeasurementcategoryBookvalue
Accountsreceivable
426,434.87
AccountsreceivableAmortizationcost388,694.02Receivablesfinancing
MeasuredatfairvalueandwhosechangesarerecordedinothercomprehensiveincomeOtherreceivablesAmortization
cost
458,242.73OtherreceivablesAmortizationcost437,169.79
(3)ImplementationofAccountingStandardforBusinessEnterprisesNo.7-ExchangeofNon-MonetaryAssets(revisedin2019)TheMinistryofFinanceissuedonMay9,2019bytheAccountingStandardsforEnterprisesNo.7-ExchangeofNon-MonetaryAssets(2019revision)(CaiKuai[2019]No.8),therevisedrulesshallenterintoforceasofJune10,2019,andtheexchangeofnon-monetaryoccurbetweenJanuary1,2019andtheeffectivedate,adjustmentsshouldbebasedonthesecriteria.Theexchangeofnon-monetaryassetspriorto1January2019doesnotrequire
2019
retroactiveadjustmentinaccordancewiththeprovisionsoftheseguidelines.TheCompany'simplementationoftheaboveguidelineshasnomaterialimpactduringthereportingperiod.
(4)ImplementationofAccountingStandardforBusinessEnterprisesNo.12-DebtRestructuring(revisedin2019)TheMinistryofFinancepromulgatedtheAccountingStandardsforBusinessEnterprisesNo.12-DebtRestructuring(2019revision)(CaiKuai[2019]No.9)onMay16,2019.TherevisedstandardswillbeeffectivefromJune17,2019.Fordebtrestructuringsthatoccurbefore1January2019,thereisnoneedtomakeretroactiveadjustmentsinaccordancewiththeprovisionsofthecode.TheCompany'simplementationoftheaboveguidelineshasnomaterialimpactduringthereportingperiod.
2.Changesinsignificantaccountingestimates
NochangeinsignificantaccountingestimatesduringthereportingperiodoftheCompany.VII.Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement
□Applicable√Notapplicable
NomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod.
VIII.Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope
□Applicable√Notapplicable
Nochangeinconsolidationstatement’sscopeoftheCompanyinthePeriod.
IX.Appointmentandnon-reappointment(dismissal)ofCPAAccountingfirmappointedNameofdomesticaccountingfirmBDOCHINAShuLunPanCertifiedPublicAccountantsLLPRemunerationfordomesticaccountingfirm(in10thousandYuan)
Continuouslifeofauditingservicefordomesticaccountingfirm
NameofdomesticCPALiJinhua,ZhuMeirongContinuousfixednumberofyearfortheauditingserviceprovidedbyCPAindomesticCPAFirms
Re-appointedaccountingfirmsinthisperiod
□Yes√No
Appointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor
√Applicable□Notapplicable
2019
On24February2019,theCompanyholdingthe4
thmeetingof9
thsessionoftheBoard,anddecidedtoappointedBDOCHINAShuLunPanCertifiedPublicAccountantsLLPastheauditinginstituteoftheinternalcontrolforyearof2019andthedecisionhasbeendeliberatedandapprovedingeneralmeetingof2018.Duringtheperiod,auditingfee80,000Yuanintotalhasbeenpaidtotheinstituteforinternalcontrolauditing.
X.Particularaboutsuspendedanddelistingafterannualreportdisclosed
□Applicable√Notapplicable
XI.Bankruptcyreorganization
□Applicable√Notapplicable
NobankruptcyreorganizationfortheCompanyinreportingperiodXII.SignificantlawsuitsandarbitrationoftheCompany
√Applicable□Notapplicable
Basicsituationoflitigation(arbitration)
Amountinvolved(in10thous
andYuan)
Whet
hertoform
anestimatedliabil
ity
Litigation(arbitration)progress
Litigation(arbitration)trial
resultsandimpact
Executionoflitigatio
n(arbitrati
on)judgmen
t
Date
ofdisclo
sure
Disclosureindex
2019
Theplaintiff,ChinaCindaAssetManagementCo.,Ltd.HainanBranch,suedthedefendants,HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.andSanyaYueyaRealEstateDevelopmentCorporation,forafinancialloancontractdispute,appealingtoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.torepaytheloanof5millionYuanandtheloaninterestof29,311,700YuantemporarilycalculatedtoApril30,2018,SanyaYueyaRealEstateDevelopmentCorporationassumesthejointandseveralliability,andthetwodefendantsbearlitigationcosts.Inthecourseofthelitigation,theplaintiffaddedthecompanyasaco-defendantandrequiredthecourttoorderthecompanytoassumejointandseveralliabilityfortheabovedebtsofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
3,431.17No
Caseclosed
ThefirstinstancejudgmentdismissedtheclaimoftheplaintiffChinaCindaAssetManagementCo.,Ltd.HainanBranch,andthecaseacceptancefeeandpropertypreservationapplicationfeewerebornebyChinaCindaAssetManagementCo.,Ltd.HainanBranch.Thejudgmentofthefirstinstancehasnoimpactonthecompany,Thesecondinstanceupheldthefirst-instancejudgment,therefore,thelawsuithadnoeffectonthecompany’scurrentprofitandfutureprofit.
N/A
2018-11-22;2019-1-5;2019-1-31;
AnnouncementonSignificantLitigation(AnnouncementNo.:
2018-061)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.AnnouncementonSignificantLitigationProgress(AnnouncementNo.:2019-001)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.AnnouncementonSignificantLitigationProgress(AnnouncementNo.:2019-003)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.AnnouncementonSignificantLitigationProgress(AnnouncementNo.:2019-013)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
2019
HainanDadonghaiTourismCentreGroupCo.,Ltd.borrowed2.76millionyuanand
4.55millionyuanfromHainan
DadonghaiTourismCentre(Holdings)Co.,Ltd.onOctober16,1996andDecember26,1996respectively.Thetwoborrowingstotaled7.31millionyuanandhaven’tbeenrepaidyet.Thecompanysubmitteda"CivilComplaint"andrelatedevidencematerialstotheSanyaSuburbanPeople'sCourt(hereinafterreferredtoasthe"Court").
731No
Atpresent,thecasehasbeenincourt,andnocourtrulinghasbeenreceived
TheCompanyhaswrittenofftheborrowingsofthecaseinfullamountin2008.Atpresent,andthecompanyisunabletojudgetheimpactofthislawsuitontheCompany'scurrentprofitorfutureprofit.
N/A
2019-06-04
AnnouncementonSignificantLitigation(AnnouncementNo.:
2019-017)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
XIII.Penaltyandrectification
□Applicable√Notapplicable
NopenaltyandrectificationfortheCompanyinreportingperiod.XIV.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers
□Applicable√Notapplicable
XV.Implementationofthecompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√Notapplicable
Duringthereportingperiod,thecompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentivesthathavenotbeenimplemented.XVI.Majorrelatedpartytransaction
1.Relatedpartytransactionwithroutineoperationconcerned
√Applicable□Notapplicable
2019
Related
party
Relationshi
p
Type
ofrelate
dtransaction
Contentofrelatedtransaction
Pricingprinciple
Relatedtransactionprice
Relatedtransactionamount(in10thousandYuan)
Proportion
insimila
rtransactions
Tradi
nglimitappro
ved(in10thous
andYuan)
Whet
herovertheappro
vedlimite
dor
not(Y/N)
Cleari
ngform
forrelate
dtransaction
Availablesimila
rmarketprice
Date
ofdisclo
sure
Index
ofdisclosure
LuoniushanCo.,Ltd.
Firstmajorityshareholder
Consumption
Accommodation
Marketprice
Marketprice
12.45
0.62
%
0Y
Sameasthetransactionwithnon-relatedparty
Sameasthetransactionwithnon-relatedpartyTotal
----12.45--0----------Detailofsalesreturnwithmajoramountinvolved
N/AReporttheactualimplementationofthedailyrelatedtransactionswhichwereprojectedabouttheirtotalamountbytypesduringthereportingperiod
N/AReasonsformajordifferencesbetweentradingpriceandmarketreferencepriceN/A
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√Notapplicable
NorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod
3.Relatedtransactionsofmutualinvestmentoutside
□Applicable√Notapplicable
NomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod
4.Contactofrelatedcreditanddebt
□Applicable√Notapplicable
NocontactofrelatedcreditordebtfortheCompanyinthereportingperiod
5.Othersignificantrelatedtransactions
□Applicable√Notapplicable
Thecompanyhadnoothersignificantrelatedtransactionsinreportingperiod.
2019
XVII.Significantcontractandimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√Notapplicable
NotrusteeshipfortheCompanyinreportingperiod
(2)Contract
□Applicable√Notapplicable
NocontractfortheCompanyinreportingperiod
(3)Leasing
√Applicable□Notapplicable
Noteofleasing
ItemTenantLeaselifeTermoflease1/FrestaurantoftheBuildingBinHotel
MaMing(HainanHangpaiFoodCo.,Ltd.)
5years2016-01-01to2020-12-31Shoppingmall–BuildingBinHotel
LiFuming3years2019-11-01to2022-10-31GroundfloorofHotelA
LiFuming3years2019-02-28to2022-02-27Seasidestallandwoodhouse
SanyaLedaFoodManagementCo.,Ltd.
5years2018-01-01to2022-12-31SeasidelockerroomZhongZhengao
3years2016-12-01to2019-11-30Multi-functionalmeetingroom
LiFuming5years2019-11-01to2024-10-31Gains/lossestotheCompanyfromprojectsthatreachedover10%intotalprofitoftheCompanyinreportingperiod
√Applicable□Notapplicable
Name
oflessor
Nameoftheleasingparty
Leasingassets
Leasing
assetsinvolved
intheamount
(in10thousand
Yuan)
Leasestartdate
Leasetermination
date
Leasingincome(in10thousandYuan)
Basisfordeterminingtheleasingincome
Theimpactofleasingincomeonthecompany
Whetherberelatedtransactions
Associationrelation
TheComp
any
MaMing(HainanHangpaiFood
Co.,Ltd.)
1/Frestaurantof
theBuildin
gB
1,886
2016-01
-01
2020-12-3175.6Contract
Increaseincome
NoN/A
2019
TheComp
any
SanyaLeda
FoodManagement
Co.,Ltd.
Seaside
stallandwoodhouse
2018-01
-01
2022-12-31145Contract
Increaseincome
NoN/ATheComp
any
ZhongZhengao
Seasidelockerroom
2016-12
-01
2019-11-3036Contract
Increaseincome
NoN/A
TheComp
any
LiFuming
Muti-functionalmeetingroom
2019-11
-01
2024-10-3130Contract
Increaseincome
NoN/A
2.MajorGuarantee
□Applicable√Notapplicable
TheCompanyhadnoguaranteeinthereportingperiod.
3.Entrustotherstocashassetmanagement
(1)Trustfinancing
□Applicable√Notapplicable
TheCompanyhadnotrustfinancinginthereportingperiod.
(2)Entrustedloans
□Applicable√Notapplicable
Thecompanyhadnoentrustedloansinthereportingperiod.
4.Othermaterialcontracts
□Applicable√Notapplicable
NoothermaterialcontractsfortheCompanyinreportingperiodXVIII.Socialresponsibility
1.Socialresponsibilities
Nil
2019
2.Executionofsocialresponsibilityoftargetedpovertyalleviation
(1)Precisionpovertyalleviationprogram
Nil
(2)Annualprecisionpovertyalleviation
Nil
(3)Accuracyofpovertyalleviation
Nil
(4)Follow-uptargetedpovertyalleviationplans
Nil
3.Environmentalprotection
ListedcompanyanditssubsidiarybelongstothekeypollutionenterpriselistedbyDepartmentofEnvironmentalProtectionNoXIX.Explanationonothersignificantevents
√Applicable□Notapplicable
TheLawyer’sLetterreceivedbytheCompany1:bypreliminaryaccountingfromSanyaPowerBureau,the10313373KwhelectricitywasunderstatedunderthenameofSouthChinaHotelfromJuly2006toApril2016.Foundmorein“NoticeofLawyer’sLetterreceivedbyHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.”(NoticeNo.:2016-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsitedated31May2016.TheCompanyiscommunicatedandnegotiateswithSanyaPowerBureauintheabovementionedeventwithoutnegotiationresultssofar.XX.SignificanteventofsubsidiaryoftheCompany
□Applicable√Notapplicable
2019
SectionVI.ParticularsaboutChangesinSharesandShareholdersI.ChangesinShareCapital
1.ChangesinShareCapital
InShareBeforetheChangeIncrease/DecreaseintheChange(+,-)AftertheChange
Amount
Proportion
Newsharesissued
Bonusshares
Capitalizationofpublicreserve
OthersSubtotalAmount
Proportio
nI.Restrictedshares10,454,4002.87%-231,000-231,00010,223,4002.81%
2.State-ownedcorporate
shares
2,323,2000.64%-924,000-924,0001,399,2000.38%
3.Otherdomesticshares
8,131,2002.42%693,000693,0008,824,2002.42%Including:Domesticlegalpersonshares
7,900,2002.17%924,000924,0008,824,2002.42%Domesticnaturalpersonshares
231,0000.06%-231,000-231,00000.00%II.Unrestrictedshares353,645,60097.13%231,000231,000353,876,60097.19%
1.RMBcommonshares
265,645,60072.96%231,000231,000265,876,60073.02%
2.Domesticallylisted
foreignshares
88,000,00024.17%88,000,00024.17%III.Totalshares364,100,000100.00%364,100,000100.00%
Reasonsforsharechanged
√Applicable□Notapplicable
Andduringthefollow-upprocessofnon-tradablesharesreform,relevantsharesarereleasedinlinewithrelevantregulationsandsomeoftheshareholdersarerepayingtheadvancemoneyforanother,thusthesharestructureoftheCompanychangedinthePeriodwhiletotalsharesremainthesame.Approvalofsharechanged
□Applicable√Notapplicable
Ownershiptransferofsharechanges
2019
□Applicable√Notapplicable
Implementationprogressofthesharerepurchases
□Applicable√Notapplicable
Implementationprogressofthereductionofrepurchasessharesbycentralizedbidding
□Applicable√Notapplicable
InfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
□Applicable√Notapplicable
Otherinformationnecessarytodiscloseorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changesofrestrictedshares
√Applicable□Notapplicable
InShareShareholders’name
Numberofsharesrestricted
atPeriod-beg
in
Numberofsharesreleasedin
theYear
Numberofnewsharesrestricted
intheYear
Numberof
sharesrestricted
atPeriod-end
Restriction
reasons
Releaseddate
ShenyangJin’anIndustrialCorporation
831,60000831,600
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteSanyaWangliBuildingMaterialsSales
92,4000092,400
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteSanyaZhongxingDevelopmentCo.,Ltd.
2,541,000002,541,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteSanyaRealEstateValuationAgent924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteSouthernIndustrialandTradingCorporation
660,00000660,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteHainanBranchofBankofCommunicationsCo.,Ltd.
924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteGuangzhouCompanyofHainanInternationalInvestmentCo.,Ltd.
660,00000660,000
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
2019
HainanDadonghaiTourismCo.739,20000739,200
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteHaikouDongfangUrbancreditCooperative
924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteGuangzhouDongzhanIndustrialCo.LTD
924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteHainanHongKong-MacaoInternationalTradeDevelopmentCo.,Ltd.
924,000000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteSpecialaccountfordispositionofbankruptenterpriseproperty-HongKong-MacaoInternationalHainanInvestmentCo.,Ltd.
000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteYangpuTongrongInvestmentManagementConsultingCo.,Ltd.
79,2000079,200
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteZhengYouxiong46,200046,2000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteXiaoTiefeng92,400092,4000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteMaXiaoping92,400092,4000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteTotal10,454,4000231,00010,223,400----II.Securitiesissuanceandlisting
1.Securityoffering(withoutpreferredstock)inreportingPeriod
□Applicable√Notapplicable
2.Changesoftotalsharesandshareholdersstructureaswellasexplanationonchangesofassetsandliabilitystructure
□Applicable√Notapplicable
2019
3.Existinginternalstaffshares
□Applicable√Notapplicable
III.ParticularsaboutshareholderandactualcontrolleroftheCompany
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
InShareTotalcommonstockshareholdersinreportingperiod-end
34,148
Totalcommonstockshareholdersatendoflastmonthbeforeannualreportdisclosed
31,649
Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod
Totalpreferenceshareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed
Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders
FullnameofShareholders
Natureofshareholder
Proportionof
sharesheld
Numberofsharesheldat
period-end
Changesinreportperiod
Amo
untofrestrictedshar
esheld
Amountofun-restricte
dshares
held
Numberofshare
pledged/frozenStateofshare
Amount
LuoniushanCo.,Ltd.
Domesticnonstate-ownedcorporate
17.55%63,885,9800063,885,980
Pledged
44,720,186YangMeiqin
Domesticnatureperson
4.47%16,279,0280016,279,028PanAnjie
Domesticnatureperson
4.01%14,593,5980014,593,598HainanYa’anResidencePropertyServiceCo.,Ltd.
Domesticnonstate-ownedcorporate
2.25%8,205,800008,205,800ChenJinlian
Domesticnatureperson
2.13%7,766,400007,766,400PanAiping
Domesticnatureperson
1.13%4,110,738004,110,738ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit
Foreigncorporate0.99%3,622,300003,622,300
2019
ShenwanHongyuanSecurities(HongKong)Co.,Ltd.
Foreigncorporate0.84%3,056,390003,056,390ZhangFengxiu
Domesticnature
person
0.84%3,041,372-86000003,041,372SunHuiming
Domesticnatureperson
0.79%2,888,690002,888,690Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued
N/A
Explanationonassociatedrelationshiporaccordantactionamongtheaforesaidshareholders
Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd;YangMeiqin,PanAnjie,ChenJinlianandPanAipingarethepersonsactinginconcert;theCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Particularabouttoptenshareholderswithun-restrictsharesheldShareholders’name
Amountofun-restrictsharesheldat
Period-end
TypeofsharesTypeAmountLuoniushanCo.,Ltd.63,885,980RMBcommonshare63,885,980YangMeiqin16,279,028
Domesticallylistedforeignshare
16,279,028PanAnjie14,593,598
Domesticallylistedforeignshare
14,593,598HainanYa’anResidencePropertyServiceCo.,Ltd.8,205,800RMBcommonshare8,205,800ChenJinlian7,766,400
Domesticallylistedforeignshare
7,766,400PanAiping4,110,738
Domesticallylistedforeignshare
4,110,738ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit
3,622,300RMBcommonshare3,622,300ShenwanHongyuanSecurities(HongKong)Co.,Ltd.3,056,390
Domesticallylistedforeignshare
3,056,390ZhangFengxiu3,041,372RMBcommonshare3,041,372SunHuiming2,888,690
Domesticallylistedforeignshare
2,888,690
2019
Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders
Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.YangMeiqin,PanAnjie,ChenJinlianandPanAipingarethepersonsactinginconcert;theCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswithun-restrictsharesheld
N/AWhethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod
□Yes√No
Thetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.
2.ControllingshareholderoftheCompany
Natureofcontrollingshareholders:communitycollectiveholdingTypeofcontrollingshareholders:legalpersonControllingshareholders
Legalperson/personinchargeoftheunit
Dateoffoundation
Organizationcode
Mainoperationbusiness
LuoniushanCo.,Ltd.XuZili
1987-12-1
Unifiedsocialcreditcode91460000284089747P
Plantingandbreedingindustry;initiatingindustry;realestatedevelopmentandmanagement;buildingdecorationworks;salesofagriculturalandanimalby-products,aquaticproductsandfeedprocessing(operatesonlyforbranchwithvoucher);machineryandautomobileandmotorcycleparts,electronicproducts,metalmaterials(exceptforthemonopoly),chemicalproducts(exceptforthemonopoly),householdappliances,modernofficesupplies,stationery,dailynecessities,buildingmaterials,salesofagriculturalandnativeproducts;thedevelopmentandconstructionoftradingmarket;leasingservices;warehousingservices;collectingandremittingwaterandelectricitycosts.Equityofotherdomestic/oversealistedcompanycontrolbycontrollingshareholderaswellasstock-jointinreportperiod
FoundmoredetailsinfulltextofAnnualReport2019ofLuoniushanCo.,Ltd.(Shortformofthestock:Luoniushan,Stockcode:000735)Changesofcontrollingshareholdersinreportingperiod
□Applicable√Notapplicable
TheCompanyhadnochangesofcontrollingshareholdersinreportingperiod.
2019
3.Actualcontrollerandpersonsactinginconcert
Natureofactualcontroller:domesticnaturalpersonTypeofactualcontroller:naturalperson
Nameofactualcontroller
Relationshipwiththeactualcontroller
Nationality
Whetherobtainedrightofresidenceofother
countriesorregionsornotXuZiliXuZilihimselfP.R.CNo
Mainprofessionandtitle
XuZili,male,wasbornin1966,isaseniorengineerwithamasterdegree.HesuccessivelyservedasVicePresidentofHubeiHuangshiMineBureauMachinery;GeneralManagerofHaikouAnimalHusbandryMachineryEngineeringCo.,Ltd.;ChairmanofTianjinBaodiAgriculturalTechnologyCo.,Ltd.;Hehadservedasthe6
thand7thCPPCCmemberofHainanProvince.ViceChairmanandGeneralManageroftheCompanyfromAugust2006toNovember2011;servesasChairmanoftheCompanysinceNovember2011;nowhetakesasthe7
thCPPCCmemberofHainanProvince.ListedcompanyinandoutofChinacontrolledinpastdecades
N/AChangesofactualcontrollerinreportingperiod
□Applicable√Notapplicable
NochangesofactualcontrollersfortheCompanyinreportingperiod.PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow:
2019
90%
71.84%
20.95%71.76%50.83%80%45%
20%
49.17%
55%
17.14%2.4%1.25%0.63%
17.55%100%
2.25%
ActualcontrollercontrollingtheCompanybyentrustorotherassetsmanagement
□Applicable√Notapplicable
4.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
□Applicable√Notapplicable
5.Limitationandreducingtheholdingsofsharesofcontrollingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Applicable√Notapplicable
XuZili
HainanHuijiaInvestmentDevelopmentCo.,Ltd.
HainanLiqinInvestmentCo.,Ltd
HainanGuangxiangTradeCo.,Ltd.HainanShengxingTradeCo.,Ltd.HaikouYongshengLivestockMachineryEngineeringCo.,Ltd.LuoniushanGroupCo.,Ltd.
| Luoniushan | Co., | L | td. |
HainanYaAnJuProperty
| Service | Co., | Ltd. |
| Hainan | Dadonghai | Tourism | Center | (Holding) | Co., | Ltd. |
2019
SectionVII.PreferredStock
□Applicable√Notapplicable
TheCompanyhadnopreferredstockinthePeriod.
2019
SectionVIIIConvertibleBonds
□Applicable√Notapplicable
TheCompanyhadnoconvertiblebondsinthePeriod
2019
SectionIX.ParticularsaboutDirectors,Supervisors,Senior
ExecutivesandEmployeesI.Changesofsharesheldbydirectors,supervisorsandseniorexecutives
Name
Title
WorkingstatusSexAgeStartdatedofofficeterm
Enddateofofficeterm
Sharesheldatperiod-begin(Share)
Amoun
tofsharesincreas
edin
thisperiod(Share)
Amoun
tofsharesdecreas
edin
thisperiod(Share)
Otherchang
es(share)
Sharesheldatperiod-
end(Share)
YuanXiaoping
Chairman/GeneralManager
Currentlyinoffice
M562018-02-282021-02-2700000
TangGuoping
IndependentDirector
Currentlyinoffice
M552014-05-222020-05-2100000
WuTao
IndependentDirector
Currentlyinoffice
M412018-02-282021-02-2700000
TangShanrong
Director
Currentlyinoffice
M402018-02-282021-02-2700000
HuangWencai
Chairmanofsupervisorycommittee
Currentlyinoffice
M502002-06-162021-02-2700000
2019
ZhangXuli
Supervisor
Currentlyinoffice
F362018-02-282021-02-2700000
ChenGang
Supervisor
Currentlyinoffice
M532016-07-292021-02-2700000
FuZongren
Personinchargeoffinance
Currentlyinoffice
M522015-04-152021-02-2700000
DingQin
DeputyGeneralManager
Currentlyinoffice
M482018-08-102021-02-2700000
WangHongjuan
Director/Vicepresident/secretaryoftheBoard
Currentlyinoffice
F432008-04-272021-02-2700000Total------------00000II.Changesofdirectors,supervisorsandseniorexecutives
□Applicable√Notapplicable
III.Post-holdingProfessionalbackground,majorworkingexperienceandpresentmainresponsibilitiesofdirectors,supervisorsandseniorexecutiveintheCompanyDirectorMr.YuanXiaoping,wasborninJuly1963,Hannationality,holdsthecollegedegree,theChineseCPA,senioraccountant,theauditorandheisthememberofcommunistpartyofChina.Hewasappointedasthesystemaccountinganddeputydirectorinthesupply&marketingcooperativeofNanchongSichuan;hetookastheprojectmanagerofHainanCongxinAccountingFirmandassistantofGMandCFOinLuoniushanCompany.Healsoservedasthedirector,CFO,DeputyGeneralManager,theactingGM,deputychairmanandsecretaryofthepartycommitteeinHaikouWaterGroupCo.,Ltd.aswellasthedirectorofHainanYedaoCo.,Ltd.from2006
2019
to2017.Mr.YuanservesasChainmanandGMoftheCompanysinceMarch2018.Mr.TangShanrong,wasborninNovember1979,holdstheMasterdegree,aseniorengineer.HewasappointedassecretaryofthepresidentinLuoniushanCo.,Ltd.,theGeneralManagerofHainanLuoniushanEnvironmentProtectionCo.,Ltd,theChairmanofHainanLuoniushanAgriculturalSci-TechCo.,Ltd.,theassistantpresidentandGMoftheadministrationdepartmentinLuoniushanCo.,Ltd.Mr.TangservesasvicepresidentoftheCompanysinceJune2016;SheservedaschairmanofrealestatebranchofLuoniushanCo.,Ltd.sinceJune2018;atthesametime,heisthememberofstandingcommitteeofthe14
thCPPCCofHaikou,memberofthestandingcommitteeofthe6
th
HainanYouthFederation,vicechairmanofthe8
thHaikouYouthLeagueanddirectorofHaikouYouthEntrepreneurship&employmentpromotionAssociation.HeservesasdirectoroftheCompanysinceMarch2018.Ms.WangHongjuan,wasborninFeb.1976,Hannationality,UndergraduateDegree,anattorney;sheservedasrepresentativeofsecuritiesaffairsoftheCompanysince2004andservesassecretaryoftheBoardsince2008anddeputyGMoftheCompanysince2014.Ms.WangservesasDirectoroftheCompanysince2016.IndependentDirectorMr.TangGuoping,wasborninAugust1964,Hannationality,hewasgraduatedfromZhongnanUniversityofEconomicsandLaw,holdsthedoctoraldegreeandheistheaccountingprofessor,doctoralsupervisorandChineseCPA.Hewasawardedasthe“MasterofAccounting”bytheMinistryofFinance,the“OutstandingYoungTeacherFundingProgram”oftheMinistryofEducation,thefamousteacherofHubeiProvince,theyoungandmiddle-agedexpertswithoutstandingcontributionsinHubeiProvince,theacademicleadersofthecross-centurydisciplineoftheMinistryofFinance,wonthesecondprizeoftheSecondHumanitiesandSocialSciencesResearchAchievementAwardofCollegesandUniversitiesissuedbytheMinistryofEducation.Thesecondprize,andwonthethirdprizeofoutstandingteachingachievementsissuedbytheHubeiProvincialPeople’sGovernmentandotherawardsandhonors.HeusedtobethedeputydeanoftheAccountingSchool,thedirectoroftheAccountingMasterEducationCenter,theexecutivevicepresidentoftheGraduateSchool,andthedeanoftheMBACollegeofZhongnanUniversityofEconomicsandLaw.HeisalsotheheadofthesecondrevisionresearchgroupfortheAccountingLawoftheMinistryofFinance,amemberofthefirstsessionoftheASBEAdvisoryCommitteeoftheMinistryofFinance,thedirectorandseniormemberoftheAccountingSocietyofChina,andthevicechairmanoftheEnvironmentalAccountingProfessionalCommitteeoftheAccountingSocietyofChina.HeisthevicechairmanofChinaAssociationofChiefFinancialOfficersofHubeiProvinceandservesasanindependentdirectorofMyhomeRealEstate,LensTechnologyandShenzhuangzong.In2012,heobtainedtheindependentdirectorqualificationcertificateandhasbeenanindependentdirectorofthecompanysinceMay2014.Mr.WuTao,borninSeptember1978,holdsamaster’sdegree.Heusedtobetheseniormanager,businessdirectorandinternalauditcommitteeofGuojinSecuritiesInvestmentBankingDepartment.From2011to2014,heservedasthedeputygeneralmanagerandsecretaryoftheboardofdirectorsofShanghaiRENLEScience&TechnologyCo.,Ltd.Since2014,hehasbeenservingasthevicechairmanandvicepresidentofShanghaiHuantao
2019
InvestmentManagementCo.,Ltd.In2017,heobtainedanindependentdirectorqualificationcertificate.SinceMarch2018,hehasbeenservingasanindependentdirectoroftheCompany.SupervisorMr.HuangWencai:wasborninJan.1969,undergraduatedegree,Mr.HuangonceheldthepositionofvicedirectorofHaikoumeatassociationfactory,directorofHaikoufoodCo.Ltd.andassistantofgeneralmanagerofHaikoufoodCo.Ltd.,deputyGMofHaikouLuoniushanFoodProcessingCo.,Ltd.andcurrentlyheldthepostofdeputyGMofHainanLuoniushanMeatCo.,Ltd.;heheldthepositionofChairmanofSupervisoryCommitteeoftheCompanysince2002.Ms.ZhangXuli,borninNovember1983,holdsamaster’sdegree,isacertifiedmanagementconsultantandanintermediateeconomist.From2009to2015,sheservedasaseniorconsultantandprojectmanagerofBeijingIndustrialDevelopmentConsultingCo.,Ltd.SinceDecember2015,shehasbeenservingastheinvestmentdirectorandpersoninchargeofLuoniushan(Beijing)InvestmentCo.,Ltd.SinceMarch2018,shehasbeenservingasashareholdersupervisorofthecompany.Mr.ChenGang,wasborninSeptember1966,theHannationality,ajunioraccountant.HeworkedasaccountantinHainanSanyaPhoenixCo.,Ltd.fromFebruary1988toJune1989,workedaschiefaccountantinSanyaHardwareElectricalMallfromJuly1989toSeptember1992,andservesascostaccounting,chiefaccountant,deputyGMandGMofthefinancialdept.intheCompanysinceOctober1992.HeservesasstaffsupervisoroftheCompanysinceAugust2016.SeniorexecutivesMr.DingQin,borninMay1971,Hannationality,holdsamaster’sdegree,studiedinCentralSouthUniversityfrom1988to1992andgraduatedasabachelorofindustrialtrade,andstudiedandgraduatedasapostgraduatefromHainanUniversityfrom2005to2008,majoringinagriculturalextension.From1998to2006,heservedasthegeneralmanageratHainanHuacuiPalmGardenCo.,Ltd.;from2010to2013,heservedastheexecutivegeneralmanagerofthefixedincomedepartmentofHeaven-SentCapitalManagementGroupCo.,Ltd(Shanghai);from2013to2017,hewasappointedasthegeneralmanagerofWuhanEastLakeInnovationInvestmentManagementCo.,Ltd.;andheservesastheassistantgeneralmanagerofthecompanysinceApril2018.SinceAugust2018,heservesasthedeputygeneralmanagerofthecompany.Mr.FuZongren,wasborninFebruary1967,intermediateaccountant,servedasfinancialmanageroftheCompany,financialcontrollerofSanyaYalongBayUniversalResort,andgeneralmanagerofFinancialManagementCenterofHainanSunupGroup,andservesasthefinancialadministratoroftheCompanysinceApril2015.
Post-holdinginshareholder’sunit
√Applicable□Notapplicable
2019
NameShareholder’sunit
Positioninshareholder’sunit
Startdatedofofficeterm
Enddateofofficeterm
Whetherobtainedremuneration
fromshareholder’sunit(Y/N)TangShanrongLuoniushanCo.,Ltd.Vicepresident2016-06-172019-06-17YNoteofpost-holdinginshareholder’sunit
N/APost-holdinginotherunit
□Applicable√Notapplicable
Punishmentofsecuritiesregulatoryauthorityinrecentthreeyearstothecompany’scurrentandoutgoingdirectors,supervisorsandseniormanagementduringthereportingperiod
□Applicable√Notapplicable
IV.Remunerationfordirectors,supervisorsandseniorexecutivesDecision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutives
1.PursuanttotheCompany'sArticlesofAssociation,thepayofdirectors,supervisorpersonnelareapprovedbygeneralmeetingafterthereviewoftheboardofdirectorsandboardofsupervisorsrespectively;thepayofseniormanagementisapprovedbytheboard.Directors,supervisorsandseniormanagersgettheirpaymentcorrespondingtotheirpostprovidedbythegeneralmeetingandtheboardmeeting.
2.Inlinewithperformanceoftheirduties,directors,independentdirectorsandsupervisorsshouldreceivethereimbursementfromtheCompanyontravelexpenseandArticlesofAssociationimplementationexpense.Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In10thousandYuanNameTitleSexAge
Post-holdingstatus
TotalremunerationobtainedfromtheCompany(before
taxes)
WhetherobtainedremunerationfromrelatedpartyoftheCompany
(Y/N)YuanXiaoping
Chairman/GeneralManager
M56
Currentlyinoffice
56.42N
TangShanrong
DirectorM40
Currentlyinoffice
4.8N
TangGuoping
IndependentDirectorM55
Currentlyinoffice
4.8N
WuTaoIndependentDirectorM41
Currentlyinoffice
4.8N
2019
HuangWencai
Chairmanofsupervisorycommittee
M50
Currentlyinoffice
2.4N
ZhangXuli
SupervisorF36
Currentlyinoffice
2.4N
ChenGang
SupervisorM53
Currentlyinoffice
9.9N
FuZongren
Personinchargeoffinance
M52
Currentlyin
office
31.29N
DingQin
DeputyGMM48
Currentlyin
office
31.22N
WangHongjuan
Director/secretaryoftheBoard/DeputyGM
F43
Currentlyin
office
41.44N
Total--------189.47--Delegatedequityincentivefordirectors,supervisorsandseniorexecutivesinreportingperiod
□Applicable√Notapplicable
V.Particularsofworkforce
1.Numberofstaff,professionalcompositionandeducationbackground
Thenumberofcurrentemployeesofparentcompany(people)133
Thenumberofcurrentemployeesofmainsubsidiaries
(people)
Totalnumberofcurrentemployees(people)133
Thetotalnumberofcurrentemployeestoreceivepay(people)133
Thetotalnumberofretiredstaffandworkersthattheparent
companyandmainsubsidiariesneedtobearthecosts(people)
ProfessionalcompositionCategoryofprofessionalcompositionNumberofprofessionalcomposition(people)
Productionstaff70Salesman6Technicalstaff22Financialstaff12Administrativestaff23Total133
2019
EducationbackgroundCategoryofeducationNumber(people)Graduatestudent1Undergraduate8Juniorcollegeabove29Highschoolandbelow95Total133
2.Remunerationpolicy
Thecompensationofcompany’semployeesincludeswages,bonuses,andbenefits,whichtaketheprincipleofdistributingaccordingtothework,givingprioritytoefficiencyandtakingcountofequitysimultaneously,wageincreaseadaptingtothecompany’sbusinessdevelopmentandbenefitsimprovement,optimizingthelaborallocation,paylevelagreeingwiththelocalaverageinthesameindustry.Setoradjustthewagestandardsinaccordancewiththejobvaluationresult,thelocalpaylevelinthesameindustry,thecompany’sannualoperationtargetandoperationalbudget,andtheindividualperformance.
3.Trainingprograms
Strengthenthetrainingofseniorexecutivesbycombiningthevoluntaryorganizationoftrainingandtheexternaltraining,widenthethought,andenhancethedecision-makingabilityandmodernoperationandmanagementability.Strengthenthetrainingofmiddlemanagement,improvetheoverallqualityofmanagers,improvetheknowledgestructure,andenhancethecomprehensivemanagementcapability,innovationcapabilityandimplementationcapability.Strengthenthetrainingofprofessionalandtechnicalpersonnel,improvethetheoreticalleveloftechnologyandprofessionalskills,andenhancethetechnologicalinnovation,technicaltransformationcapability.Strengthenthetechnicaltrainingofhotelservicestaff,constantlyimprovetheprofessionalskillsandserviceskillsofservicestaff,andenhancetheabilitytostrictlyfulfilltheirresponsibilities.Strengthentheculturaltraining,improvetheculturallevelofpersonnelatalllevels,andenhancetheoverallculturalqualityofthestaffteam.
4.Laboroutsourcing
□Applicable√Notapplicable
2019
SectionX.CorporateGovernanceI.CorporategovernanceoftheCompanyDuringreportingperiod,theCompanyfurthercompletedgovernancestructureandsystem,perfectedinternalcontrolmechanismandsystemconstructionandnormalizedcorporateoperation,strictlyinaccordancewithrelativerulesandregulationsoftheCompanyLaw,SecuritiesLawandListingRulesofShenzhenStockExchange.Tillendofreportingperiod,governancestructureoftheCompanyisbasicallyinlinewithrequirementoftheGovernanceRulesofListedCompany.
1.Duringthereportingperiod,theCompany’sgeneralmeeting,boardmeetingandsupervisorsmeetingexercisedthedecisionrights,executionrightsandsupervisionrightsrespectivelywithclearresponsibilities,mutualrestrict,operationspecificationandeffectiveoperation.Theproceduresofmeetingholding,proposalreview,anddecision-makinginthesethreemeetingswereincompliancewithrelevantprovisions.Theboardmeetingcomprisesstrategyanddevelopmentcommittee,auditcommittee,nominationcommittee,remunerationandappraisalcommittee,whocarryoutsmoothlytheirdutiesaccordinglytotheirworkingconditions,providingastrongsupportfortheboardmeeting’smajorscientificmanagementdecision.
2.InstrictaccordancewiththerequirementsofRulesGoverningtheListingofStock,directorsperformeditsdutieswithhonest,trust,diligenceandindependence,protectedthelegitimaterightsandinterestsofminorityshareholderswithloyaltytotheirinterests;Supervisorseffectivelysupervisedandcheckedindependentdirectors,seniormanagementandtheirfinancialsituations.IsthereanydifferencebetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC?
□Yes√No
TherearenodifferencesbetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC.II.IndependenceoftheCompanyrelativetocontrollingshareholders’inaspectofbusinesses,personnel,assets,organizationandfinanceStatementofFiveIndependencebetweentheCompanyandtheControllingShareholders
1.BusinessIndependence:theCompanybusinessoperatesindependentlywithintegratedstructure,andisfreefromhorizontalcompetitionwithcontrollingshareholders.ThecontrollingshareholdersdonotintervenetheCompany’soperationeitherdirectlyorindirectly.
2.PersonnelIndependence,theCompanyisindependentoncontrollingshareholdersintheaspectsoflabor,personnelandRemunerationmanagement.
3.AssetsIndependence:theCompanyhasproprietaryrightsandcontrolrightsonitsassets.Controlling
2019
shareholdersoccupynoassetsorfundsofthelistedcompany.
4.InstitutionIndependence:thecompany'sboardofdirectorsandboardofsupervisors,managersandotherinternalinstitutionsoperateindependentlyandmanageindependentlywithintegratedstructures.
5.FinancialIndependence:theCompanyhasanindependentfinancialsector,andsetsupindependentaccountingsystemandfinancialmanagementsystem.TheCompanyopensindependentbankaccountsandpayindependenttaxestolawswithoutcontrollingshareholders’intervention.III.Horizontalcompetition
□Applicable√Notapplicable
IV.Inthereportperiod,theCompanyheldannualshareholders’generalmeetingandextraordinaryshareholders’generalmeeting
1.AnnualShareholders’GeneralMeetinginthereportperiodSessionofmeeting
Type
Ratioofinvestorparticipation
Date
Dateofdisclosure
IndexofdisclosureAnnualShareholdersGeneralMeeting2018
AGM
31.66%2019-03-222019-03-23
The“ResolutionNoticeofAnnualShareholders’GeneralMeetingof2018”(No.:2019-012)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(www.cninfo.com.cn)dated23Mar.2019
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
V.Responsibilityperformanceofindependentdirectors
1.TheattendingofindependentdirectorstoBoardmeetingsandgeneralmeeting
TheattendingofindependentdirectorstoBoardMeeting&generalmeetingIndependentDirector
TimesofBoardmeetingsupposedtoattendinthereportperiod
TimesofPresence
TimesofattendingtheBoardMeetingbycommunication
Timesofentrustedpresence
TimesofAbsence
AbsenttheMeetingforthesecondtimeinarow(Y/N)
Timesofattendthegeneralmeeting
2019
TangGuoping
51400N1WuTao51400N1Explanationonabsenttheboardmeetingforthesecondtimeinarow:nil
2.Objectionforrelevanteventsfromindependentdirectors
IndependentdirectorscomeupwithobjectionaboutCompany’srelevantmatters
□Yes√No
NoobjectionsarisingfromtheindependentdirectorsonrelevanteventsoftheCompanyduringthePeriod
3.OtherexplanationaboutresponsibilityperformanceofindependentdirectorsTheopinionsfromindependentdirectorshavebeenadopted
√Yes□No
Explanationonadvicethataccepted/notacceptedfromindependentdirectorsItissuggestedthattheCompanyshouldstrengthentheintroductionofforeigncapital,introduceexcellentassetsanddiversifythecurrentsinglebusinessportfolioinadditiontofocusingonitsmajoroperations.VI.DutyperformanceofthespecialcommitteesundertheboardduringthereportingperiodTheboardmeetingcomprisesfourspecialcommittees,whocarryoutsmoothlytheirdutiesaccordinglytotheirworkingconditions,providingastrongsupportfortheboardmeeting’smajorscientificmanagementdecision.Eachspecialcommitteeperformedtheirdutiesasfollows:
1.AuditCommittee
Duringthereportingperiod,theauditcommitteeauditedthefirstquarterandthethreequarterfinancialreportof2019,andthe2019semi-annualfinancialreport.Intheprocessofannualfinancialreportauditing2019process,auditcommitteemembersworkedinaccordancewiththerelevantrequirementsbyfaithfullyperformingauditcommittee’sresponsibilities:
Beforetheentranceofannualexaminationcertifiedpublicaccountants,theauditcommitteememberslistenedtothemanagementstatementsoftheCompany'soperatingconditionin2019andthefinancialstatusaswellasthereportonannualfinancialreportauditworkarrangementof2019,communicatedwithannualexaminationcertifiedpublicaccountantsaboutissuessuchaspersonnelstructureoftheworkinggroup,auditplan,riskjudgment,annualauditfocusandsoon;InearlyJanuary2019,inannualreportauditprocess,auditcommitteememberslistenedtotheworkreportbyannualexaminationcertifiedpublicaccountantsandthecompanymanagement;InearlyFebruary2019,auditcommitteemembersreviewedsubmittedfinancialandaccountingreports.ThefinancialandaccountingreportsauditedwasformattedstrictlytoAccountingStandardsforBusinessEnterprisesandAccountingSystemforBusinessEnterprises,andthisreportfairlyreflectedtheCompany’sassets,liabilities,rightsandinterestsandoperatingsituationwithoutsignificanterrorsandomissions.Theannualaudit
2019
reportof2019byauditinstitutionswasagreedtobesubmittedtotheboard.TheCompany'sboardofdirectorsregardedthattheexternalauditorsBDOChinaShuLunPanCertifiedPublicAccountantsLLPfaithfullyperformedtheauditresponsibility,andsuggestedtorenewastheCompany’sannualfinancialauditof2020.
2.Remunerationcommittee
Duringthereportingperiod,theremunerationcommitteemembersoftheCompanyboardcarriedouttheirdutiesstrictlytorelevantregulations,inspectedremunerationpoliciesandprogramsfordirectors,supervisorsandseniormanagers,andappraisedtheperformanceofdirectors,supervisorsandseniormanagementaccordingtoseniormanagerremunerationappraisal.Bytheendofthereportingperiod,theCompanyhasnotimplementedoptionscheme.
3.Strategycommittee
Duringthereportingperiod,theboardstrategycommitteeputforwardvaluableopinionsondecision-makingsuchasdevelopmentplanningandinvestmentdecisions,thusenhancedthescientificdecision-makingandcorecompetitivenessoftheCompany,improvedtheCompany’sefficiencyofmajorinvestmentdecisionsanddecisionquality.
4.Nominationcommittee
Duringthereportingperiod,thecompanydidnothaveanynominations.VII.WorksfromSupervisoryCommitteeTheCompanyhasrisksinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee
□Yes√No
SupervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiodVIII.Examinationandincentivesofseniormanagement
1.PursuanttoPeople-orientedPrinciple,theCompanyemploysoutstandingpersonsinlong-term,andadmitsthebestcandidatesonthepremiseofopenness,fairness,justice.ThosewhopasstrialcomprehensiveappraisalandbenominatedbygeneralmanagersandapprovedbytheboardmeetingcanbeemployedasseniormanagementoftheCompany.
2.TheCompanyadoptsaclearappraisalsysteminwhichassessmentmethodsaremadetotheperformanceanddutyfulfillmentofseniormanagement.Assessmentsarecarriedoutmonthlyandannuallybythesamelevelandhigherlevelandtheresultsaretakenasfactorsforpostliftandrewardsandpunishmentofseniormanagement.
3.TheCompanysetsupeffectiveincentivemechanism,includingmaterialincentivesandspiritualincentives.Theclearrewardsandpunishments,balancebetweenremunerationandworkperformance,survivaloffittestencourageseniormanagementtomakeconstantlyprogressandimprovetheirowncomprehensiveabilitywhichinturnhelptheCompanydeveloprapidly.
2019
IX.InternalControl
1.DetailsofmajordefectsinICappraisalreportthatfoundinreportingperiod
□Yes√No
2.Self-appraisalReportofInternalControl
Disclosuredateoffullinternalcontrolappraisalreport2020-03-21Disclosureindexoffullinternalcontrolappraisalreport
RelevantinformationfoundinAppraisalReportofInternalControlfor2019publishedonJuchaoWebsitedated21March2020Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements
100.00%
Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements
100.00%
DefectsEvaluationStandardsCategoryFinancialReportsNon-financialReports
2019
Qualitativecriteria
Majordeficiencies:fraudofdirectors,supervisorsandseniormanagement;materialmisstatementsarefoundincurrentfinancialstatementsbythecertifiedpublicaccountantbutarenotfoundintheprocessofinternalcontrol;It’sfoundthatthesignificantinternalcontroldeficienciesthathadbeendiscoveredandreportedtothemanagementwerenotyetcorrectedwithinthestipulatedtime;theauditcommittee’ssupervisionhasnoeffectonthecompany’sexternalfinancialreportsandinternalcontroloverfinancialreporting.Significantdeficiencies:theselectionandapplicationofaccountingpoliciesarenotinaccordancewiththeGAAP;anti-fraudprogramandcontrolmeasureshavenotbeenestablished;theaccountingtreatmentofunusualorspecialtransactionshasnoappropriatecontrolmechanismsorhavenotimplementedthecontrolmechanismsandhasnoappropriatecompensatorycontrols;thecontroltoperiod-endfinancialreportingprocesshasoneormoredeficienciesandcannotreasonablyensurethattheorganizationalfinancialstatementsaretrueandaccurate.Generaldeficiencies:deficienciesthatoutoftherecognitionofmajorandsignificantdeficienciesshouldberecognizedasgeneraldeficiencies
Majordeficiencies:thecompanyislackofdemocraticdecision-makingprocess;thecompany’sdecision-makingprocessleadstomajormistakes;thecompanyviolatesthestatelawsandregulationsandisseverelypunished;seriousbraindrainofthecompany’sseniormanagementpersonnelandseniortechnicalstaff;frequentnegativenewsonmediacoveringawiderangeandthenegativeeffectsarenoteliminated;thecompany’ssignificantbusinessislackofsystemcontrolorsystematic-nessisinvalid;themajordeficienciesandsignificantdeficienciesofthecompany’sinternalcontrolshavenotbeenrectifiedandreformed;thecompanyispunishedbyCSRCorwarnedbystockexchange.Significantdeficiencies:thecompanyhasdemocraticdecision-makingprocesswhichisnotcomplete;thecompany’sdecision-makingprocessleadstogeneralmistakes;thecompanyviolatestheenterpriseinternalregulationswhichcauseslosses;seriousbraindrainofthecompany’sbusinesspersonnelinkeypositions;negativenewsonmediaaffectinglocalareas;thecompany’ssignificantbusinesssystemhasdeficiencies;thesignificantdeficienciesandgeneraldeficienciesofthecompany’sinternalcontrolshavenotbeenrectifiedandreformedGeneraldeficiencies:deficienciesthatoutoftherecognitionofmajorandsignificantdeficienciesshouldberecognizedasgeneraldeficiencies
Quantitativestandard
Majordeficiencies:Afterconsideringthecompensatingcontrolmeasuresandtheactualdeviationrate,theoverallimpactlevelofthedeficiencyishigherthanthesignificancelevel(10%ofthetotalprofit).Significantdeficiencies:Afterconsideringthecompensatingcontrolmeasuresandtheactualdeviationrate,theoverallimpactlevelofthedeficiencyislowerthanthesignificancelevel(10%ofthetotalprofit),buthigherthanthegeneralitylevel(5%ofthetotalprofit).Generaldeficiencies:Afterconsideringthecompensatingcontrolmeasuresandtheactualdeviationrate,theoverallimpactlevelofthedeficiencyislowerthanthegeneralitylevel(5%ofthetotalprofit).
Majordeficiencies:directpropertylossismorethan100,000Yuan;Significantdeficiencies:directpropertylossrangedfrom1Yuanto100,000Yuan;Generaldeficiencies:directpropertylossislowerthan10,000Yuan
2019
Amountofsignificantdefectsinfinancialreports
Amountofsignificantdefectsinnon-financialreports
Amountofimportantdefectsinfinancialreports
Amountofimportantdefectsinnon-financialreports
X.Auditingreportofinternalcontrol
√Applicable□Notapplicable
DeliberationsinInternalControlAuditReportToAllShareholdersofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.:
InaccordancewithAuditGuidelineforEnterpriseInternalControlandrelevantrequirementofthepracticingstandardsofChineseCertifiedPublicAccountant,weauditedtheeffective-nessofthefinancialreport’sinternalcontrolforHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.(theCompany)dated31December2019.I.AsforresponsibilityofinternalcontrolTheCompanyestablishedandimprovedandimplementedinternalcontroleffectivelypursuittoBasicNormsofEnterprisesInternalControl,SupportingGuidelinesforEnterpriseInternalControlandEvaluationGuildlinesforEnterprisesInternalControl,andboardofthedirectorisresponsibleforevaluatingitseffectiveness.II.Auditor’sresponsibilitiesOurresponsibilityistoexpressanopinionontheeffectivenessofinternalcontrolforthefinancialstatementsbasedonouraudit.Anddisclosedmajordeficitsofnotedinternalcontrolwithoutfinancialstatementconcerned.III.InherentfeatureofinternalcontrolTheinternalcontrolhasaninherentlimitation,andexistmistakesthatcannotpreventandbeingdiscovered.Moreover,theinternalcontrolmightbeinappropriateduetothechangesofconditions,orfailstofollowthecontrollingpoliciesandprocedures,tospeculatefutureeffectivenessoftheinternalcontrolinlinewiththeauditingresulthasacertainrisks.?IV.Auditingopinion:inouropinionTheCompany,inlinewithBasicNormsofEnterprisesInternalControlandrelevantregulations,showsaneffectivenessinternalcontroloffinancialreportinallmajoraspectsdated31December2019.BDOCHINAShuLunPanCPALLPCertifiedPublicAccountantofChina:LiJinhua
CertifiedPublicAccountantofChina:ZhuMeirongShanghai·China19March2020
2019
Disclosuredetailsofauditreportofinternalcontrol
DisclosedDisclosuredateofauditreportofinternalcontrol(full-text)
2020-03-21Indexofauditreportofinternalcontrol(full-text)
RelevantinformationfoundinSelf-appraisalReportofInternalControlfor2019publishedon
JuchaoWebsitedated21March2020.OpiniontypeofauditingreportofIC
Standardunqualifiedwhetherthenon-financialreporthadmajordefects
NoCarriedoutmodifiedopinionforinternalcontrolauditreportfromCPA
□Yes√No
Theinternalcontrolauditreport,issuedbyCPA,hasconcertedopinionwithself-evaluationreport,issuedfromtheBoard
√Yes□No
2019
SectionXI.Corporationbonds
WhetherornottheCompanypublicofferingcorporationbondsinstockexchange,whichundueorwithoutpaymentinfullatmaturityontheapprovaldateforannualreportdisclosedNo
2019
SectionXII.FinancialReport
I.AuditreportTypeofauditopinionStandardunqualifiedopinionSigningdateofauditreport2020-03-19NameofauditinstituteBDOCHINAShuLunPanCertifiedPublicAccountantsLLPDocumentserialofauditreportPCPAR[2020]No.ZA10218NameoftheCPALiJinhua,ZhuMeirong
Auditor’sReportToallshareholdersofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,I.OpinionWehaveauditedthefinancialstatementsofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisetheconsolidatedandparentCompany’sbalancesheetof31December2019andprofitstatement,andcashflowstatement,andstatementonchangesofshareholders’equityfortheyearended,andnotestothefinancialstatementsfortheyearended.Inouropinion,theattachedfinancialstatementsarepreparedinaccordancewiththeprovisionsoftheAccountingStandingsforEnterprisesinallmajorrespects,itfairlyreflectstheconsolidateandparentcompany’sfinancialstatusasof31December2019underthenameofDadonghaiwellwetheoperationresultsandcashflowfortheyearof2019.II.BasisforOurOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCPAandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Weidentifiedthefollowingaskeyauditissuesthatneedtobecommunicatedintheauditreport.
KeyauditmattesCountermeasures(I)Recognitionofroomincome
2019
TheCompanyhadoperatingincomeofRMB25,935,400in2019,ofwhichroomincomewasRMB20,039,800,accountingfor77.27%ofoperatingincome.Asincomeisakeyperformanceindicator
DadonghaiHoldings,whichcausesintrinsicrisks
ofthat
theincomemayberecognizedinanincorrect
thatperiod
orbemanipulatedtoachievethetargetor
periodexpected
level,weidentifytheroomrevenueof
expectedDadonghai
Holdingsasakeyauditmatter.
Forroomsalesrevenue,weunderstoodandevaluatedthe
Dadonghaimanagement's
designofinternalcontrolsinsalesprocessesfromapprovalofcontractsto
management'sthe
accountingofsalesrevenueandtestedtheeffectivenessof
thethe
implementationofkeycontrolpoints.Viasampleinspectionofcontractsandmanagementinterviews,wetested
thethe
timingpointofsignificantrisksandremunerationrelatedtoroom
therevenue
recognition,andthusassessedtheCompany'sincomerecognitionpolicies.Inaddition,weimplementedthefollowingproceduresinrespectof
revenueroom
revenuebyusingsampling:
(1)Analyzeincomeandgrossprofitmarginincombinationwiththetype
roomof
income,andjudgewhetherthereisanyabnormalfluctuationinthe
ofincome
amountinthecurrentperiod.
(2)Choosesamplesfromreservationrecordsandcheck-inrecordsof
incomerooms,
checkthesamplesagainstthecontracts,accountingrecords,invoice
rooms,issuance
andpaymentreceiptsrelatedtothecorrespondingsales,andpay
issuancespecial
attentiontowhetherthesamplesbeforeandafterthebalancesheetdate
specialare
includedinthecorrectaccountingperiodtoassesswhetherroomrevenue
areis
confirmedduringtheappropriateperiod.
(3)Withrespecttonewcustomersandthosebringinglargeamountof
isincome
inthecurrentperiod,implementtheexternalconfirmationof
incomeincurred
amountsandthebalances,andanalyzedtheauthenticitythereof
incurredin
combinationwiththecollectionofpaymentsandoccupancysituation.At
inthe
sametime,inquirethebusinessinformationofsomecustomersto
thefurther
confirmtheauthenticityoftransactionstherewith.(II)RecognitionofcompensationincomeTheCompanyrenovatedtheroombuildingAoftheSouthChinaGrandHotelin2019.Duetotheengineeringdecorationcompanyfailedto
furtherdeliver
accordingtothe"SouthChinaGrandHotelAbuildingdecorationprojectconstructioncontract",
deliverthe
CompanygetcompensationofRBM606,580.00,confirmedasnon-operatingincomeof
theRMB
572,245.29,whichaccountingfor75.62%ofthetotalprofitofRMB756,769.26oftheCompanyin2019.SincetheperformanceoftheCompanyisinthe
RMBstate
ofslightprofit,thereisariskthatthiscompensationincomemaybemanipulatedtoachievethetarget
stateor
theexpectedlevel.Weidentifytherecognition
orof
compensationincomeoftheCompanyasakey
ofaudit
matter.
Wehavealsoimplementedthefollowingproceduresfor
auditcompensation
income:
(1)Weevaluatetheeffectivenessofimplementationofinternalcontrolof
compensationthe
CompanyovertheinvestmentanddecorationofbuildingA.
(2)Collectandchecktherelevantdocumentsoftheboardofdirectorsof
thethe
CompanyregardingtheinvestmentandrenovationofbuildingA,thebidding
documentsforinvestmentandrenovationandthenoticeofwinningthe
thebid,
etc.,andconfirmtheappropriatenessoftheinvestmentandrenovation
bid,project
costofbuildingA.
(3)Checktheconstructioncontractofthedecorationproject,accordingto
projectthe
relevantagreementsofthedecorationprojectconstructioncontractto
theverify
thetimeofthedefaultdeliveryoftheroom,andreviewtheamountof
verifythe
defaultiscalculatedcorrectly.
(4)Sendletterstothedecorationcompanyandmakeinquiriesand
theinterviews
withrelevantpersonneloftheengineeringdecorationcompanytoconfirm
interviewsthe
authenticityofthecompensationitemsandamount.Atthesametime,
thethe
industrialandcommercialinformationoftheengineering
thedecoration
companyisinquired,combinedwithlettersofconfirmationsand
decorationinterviews,
tocomprehensivejudgewhethertheengineeringdecorationcompanyand
interviews,the
2019
Companyhaverelatedpartyrelations.IV.OtherinformationThemanagementoftheCompany(hereinafterreferredtoasManagers)isresponsiblefortheotherinformation.TheotherinformationcomprisesinformationoftheCompany'sannualreportin2019,butexcludesthefinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotandwillnotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedaboveand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformedontheotherinformationthatweobtainedpriortothedateofthisauditor'sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsTheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,andfordesigning,implementingandmaintaininginternalcontrolthatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors.Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcern(ifapplicable)andusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,omissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatare
2019
appropriateinthecircumstances.
(3)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagementoftheCompany.
(4)ConcludeontheappropriatenessofusingthegoingconcernassumptionbythemanagementoftheCompany,andconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weinchargeoftheguidance,supervisionandenforcementofthegroup’sauditingandbearallliabilityfortheopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditmatters,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.BDOCHINAShuLunPanCertifiedPublicAccountantofChina:LiJinhuaCertifiedPublicAccountantsLLP
CertifiedPublicAccountantofChina:ZhuMeirongShanghai·China19March2020
II.FinancialStatementExpressedinRenminbiunlessotherwisestated
2019
1.Consolidatedbalancesheet
PreparedbyHAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.
2019-12-31
InRMBItem2019-12-312018-12-31Currentassets:
Monetaryfunds7,422,939.8915,364,355.30SettlementprovisionsCapitallentTradingfinancialassetsFinancialassetsmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/lossesDerivativefinancialassetsNotereceivableAccountreceivable311,083.92426,434.87ReceivablefinancingAccountspaidinadvanceInsurancereceivableReinsurancereceivablesContractreserveofreinsurancereceivableOtheraccountreceivable571,744.52458,242.73Including:InterestreceivableDividendreceivableBuyingbackthesaleoffinancialassetsInventories254,257.19221,390.19ContractualassetsAssetsheldforsaleNon-currentassetduewithinoneyearOthercurrentassets2,574,442.571,846,219.79Totalcurrentassets11,134,468.0918,316,642.88Non-currentassets:
LoansandpaymentsonbehalfDebtinvestmentFinanceassetavailableforsales
2019
OtherdebtinvestmentHeld-to-maturityinvestmentLong-termaccountreceivableLong-termequityinvestmentInvestmentinotherequityinstrumentOthernon-currentfinancialassetsInvestmentrealestate7,909,956.878,384,480.43Fixedassets35,075,195.9836,497,869.65Constructioninprogress488,522.10ProductivebiologicalassetOilandgasassetRight-of-useassetsIntangibleassets21,392,861.8822,205,249.04ExpenseonResearchandDevelopmentGoodwillLong-termexpensestobeapportioned11,520,179.332,792,876.07DeferredincometaxassetOthernon-currentassetTotalnon-currentasset76,386,716.1669,880,475.19Totalassets87,521,184.2588,197,118.07Currentliabilities:
Short-termloansLoanfromcentralbankCapitalborrowedTradingfinancialliabilityFinancialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialliabilityNotepayableAccountpayable1,250,409.751,607,835.81Accountsreceivedinadvance786,715.421,291,293.05ContractualliabilitySellingfinancialassetofrepurchaseAbsorbingdepositandinterbankdeposit
2019
SecuritytradingofagencySecuritysalesofagencyWagepayable2,552,996.372,841,262.35Taxespayable307,257.85450,861.87Otheraccountpayable2,647,515.862,727,483.66Including:Interestpayable
DividendpayableCommissionchargeandcommissionpayableReinsurancepayableLiabilityheldforsaleNon-currentliabilitiesduewithinoneyearOthercurrentliabilitiesTotalcurrentliabilities7,544,895.258,918,736.74Non-currentliabilities:
InsurancecontractreserveLong-termloansBondspayableIncluding:Preferredstock
PerpetualcapitalsecuritiesLeaseliabilityLong-termaccountpayableLong-termwagespayableAccrualliability1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.041,489,685.04Totalliabilities9,034,580.2910,408,421.78Owner’sequity:
Sharecapital364,100,000.00364,100,000.00Otherequityinstrument
Including:Preferredstock
PerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01
2019
Less:InventorysharesOthercomprehensiveincomeReasonablereserveSurpluspublicreserveProvisionofgeneralriskRetainedprofit-339,756,246.05-340,454,153.72Totalowner’sequityattributabletoparentcompany78,486,603.9677,788,696.29MinorityinterestsTotalowner’sequity78,486,603.9677,788,696.29Totalliabilitiesandowner’sequity87,521,184.2588,197,118.07LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
2.Balancesheetofparentcompany
InRMBItem2019-12-312018-12-31Currentassets:
Monetaryfunds7,421,452.5914,864,055.73TradingfinancialassetsFinancialassetsmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/lossesDerivativefinancialassetsNotereceivableAccountreceivable311,083.92426,434.87ReceivablefinancingAccountspaidinadvanceOtheraccountreceivable571,744.52458,242.73
Including:Interestreceivable
DividendreceivableInventories254,257.19221,390.19ContractualassetsAssetsheldforsaleNon-currentassetsmaturingwithinoneyearOthercurrentassets2,574,442.571,846,219.79
2019
Totalcurrentassets11,132,980.7917,816,343.31Non-currentassets:
DebtinvestmentAvailable-for-salefinancialassetsOtherdebtinvestmentHeld-to-maturityinvestmentsLong-termreceivablesLong-termequityinvestments1,000,000.001,000,000.00InvestmentinotherequityinstrumentOthernon-currentfinancialassetsInvestmentrealestate7,909,956.878,384,480.43Fixedassets35,075,195.9836,497,869.65Constructioninprogress488,522.10ProductivebiologicalassetsOilandnaturalgasassetsRight-of-useassetsIntangibleassets21,392,861.8822,205,249.04ResearchanddevelopmentcostsGoodwillLong-termdeferredexpenses11,520,179.332,792,876.07DeferredincometaxassetsOthernon-currentassetsTotalnon-currentassets77,386,716.1670,880,475.19Totalassets88,519,696.9588,696,818.50CurrentliabilitiesShort-termborrowingsTradingfinancialliabilityFinancialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialliabilityNotespayableAccountpayable1,250,409.751,607,835.81Accountsreceivedinadvance786,715.421,291,293.05Contractualliability
2019
Wagepayable2,552,996.372,841,262.35Taxespayable307,210.05450,861.87Otheraccountspayable2,647,515.863,226,952.36Including:InterestpayableDividendpayableLiabilityheldforsaleNon-currentliabilitiesduewithinoneyearOthercurrentliabilities999,468.70Totalcurrentliabilities8,544,316.159,418,205.44Non-currentliabilities:
Long-termloansBondspayableIncluding:preferredstockPerpetualcapitalsecuritiesLeaseliabilityLong-termaccountpayableLongtermemployeecompensationpayableAccruedliabilities1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.041,489,685.04Totalliabilities10,034,001.1910,907,890.48Owners’equity:
Sharecapital364,100,000.00364,100,000.00OtherequityinstrumentIncluding:preferredstockPerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01Less:InventorysharesOthercomprehensiveincomeSpecialreserveSurplusreserveRetainedprofit-339,757,154.25-340,453,921.99
2019
Totalowner’sequity78,485,695.7677,788,928.02Totalliabilitiesandowner’sequity88,519,696.9588,696,818.50
3.Consolidatedprofitstatement
InRMBItem20192018I.Totaloperatingincome25,935,405.4429,515,592.33Including:Operatingincome25,935,405.4429,515,592.33InterestincomeInsurancegainedCommissionchargeandcommissionincomeII.Totaloperatingcost27,008,417.0928,712,902.79Including:Operatingcost11,082,766.9411,755,198.10InterestexpenseCommissionchargeandcommissionexpenseCashsurrendervalueNetamountofexpenseofcompensationNetamountofwithdrawalofinsurancecontractreserveBonusexpenseofguaranteeslipReinsuranceexpenseTaxandextras722,523.201,393,881.37Salesexpense5,606,474.475,619,079.95Administrativeexpense9,772,412.8610,133,021.97R&DexpenseFinancialexpense-175,760.38-188,278.60
Including:Interestexpenses
Interestincome210,556.05232,899.41Add:otherincome292,643.89Investmentincome(Lossislistedwith“-”)Including:Investmentincomeonaffiliatedcompanyandjointventure
Theterminationofincomerecognitionforfinancialassetsmeasuredbyamortizedcost(Lossislistedwith“-”)
Exchangeincome(Lossislistedwith“-”)
2019
Netexposurehedgingincome(Lossislistedwith“-”)Incomefromchangeoffairvalue(Lossislistedwith“-”)Lossofcreditimpairment(Lossislistedwith“-”)-5,032.26Lossesofdevaluationofasset(Lossislistedwith“-”)13,656.55Incomefromassetsdisposal(Lossislistedwith“-”)III.Operatingprofit(Lossislistedwith“-”)-785,400.02816,346.09Add:Non-operatingincome1,555,255.92273.00Less:Non-operatingexpense13,086.64163,336.90IV.Totalprofit(Lossislistedwith“-”)756,769.26653,282.19Less:Incometaxexpense47.80V.Netprofit(Netlossislistedwith“-”)756,721.46653,282.19(i)Classifybybusinesscontinuity
1.continuousoperatingnetprofit(netlosslistedwith‘-”)756,721.46653,282.19
2.terminationofnetprofit(netlosslistedwith‘-”)
(ii)Classifybyownership
1.Netprofitattributabletoowner’sofparentcompany756,721.46653,282.19
2.Minorityshareholders’gainsandlosses
VI.Netafter-taxofothercomprehensiveincomeNetafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss
1.Changesofthedefinedbenefitplansthatre-measured
2.Othercomprehensiveincomeunderequitymethodthat
cannotbetransfertogain/loss
3.Changeoffairvalueofinvestmentinotherequity
instrument
4.Fairvaluechangeofenterprise'screditrisk
5.Other
(ii)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss
1.Othercomprehensiveincomeunderequitymethodthat
cantransfertogain/loss
2.Changeoffairvalueofotherdebtinvestment
2019
3.gain/lossoffairvaluechangesforavailable-for-sale
financialassets
4.Amountoffinancialassetsre-classifytoother
comprehensiveincome
5.Gain/lossofheld-to-maturityinvestmentsthatre-classify
toavailable-for-salefinancialasset
6.Creditimpairmentprovisionforotherdebtinvestment
7.Cashflowhedgingreserve
8.Translationdifferencesarisingontranslationofforeign
currencyfinancialstatements
9.Other
Netafter-taxofothercomprehensiveincomeattributabletominorityshareholdersVII.Totalcomprehensiveincome756,721.46653,282.19TotalcomprehensiveincomeattributabletoownersofparentCompany
756,721.46653,282.19TotalcomprehensiveincomeattributabletominorityshareholdersVIII.Earningspershare:
(i)Basicearningspershare0.00210.0018(ii)Dilutedearningspershare0.00210.0018Asfortheenterprisecombinationunderthesamecontrol,thenetprofitachievedbythecombinedpartybeforeconsolidationwas0Yuanintheperiodwhile0YuanachievedlastperiodLegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
4.ProfitstatementofparentCompany
InRMBItem20192018I.Operatingincome25,935,405.4429,515,592.33
Less:Operatingcost11,082,766.9411,755,198.10Taxesandsurcharge722,523.201,393,596.37Salesexpenses5,606,474.475,619,079.95Administrationexpenses9,772,412.8610,132,404.17R&DexpensesFinancialexpenses-174,607.65-187,607.53Including:interestexpenses
2019
Interestincome209,033.32232,116.34Add:otherincome292,643.89
Investmentincome(Lossislistedwith“-”)Including:InvestmentincomeonaffiliatedCompanyandjointventure
Theterminationofincomerecognitionforfinancialassetsmeasuredbyamortizedcost(Lossislistedwith“-”)
Netexposurehedgingincome(Lossislistedwith“-”)Changingincomeoffairvalue(Lossislistedwith“-”)Lossofcreditimpairment(Lossislistedwith“-”)-5,032.26Lossesofdevaluationofasset(Lossislistedwith“-”)13,656.55Incomeondisposalofassets(Lossislistedwith“-”)II.Operatingprofit(Lossislistedwith“-”)-786,552.75816,577.82Add:Non-operatingincome1,555,220.92273.00Less:Non-operatingexpense13,086.64163,336.90III.TotalProfit(Lossislistedwith“-”)755,581.53653,513.92
Less:IncometaxIV.Netprofit(Netlossislistedwith“-”)755,581.53653,513.92(i)continuousoperatingnetprofit(netlosslistedwith‘-”)755,581.53653,513.92(ii)terminationofnetprofit(netlosslistedwith‘-”)V.Netafter-taxofothercomprehensiveincome
(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss
1.Changesofthedefinedbenefitplansthatre-measured
2.Othercomprehensiveincomeunderequitymethodthat
cannotbetransfertogain/loss
3.Changeoffairvalueofinvestmentinotherequity
instrument
4.Fairvaluechangeofenterprise'screditrisk
5.Other
(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss
1.Othercomprehensiveincomeunderequitymethodthatcan
transfertogain/loss
2.Changeoffairvalueofotherdebtinvestment
2019
3.gain/lossoffairvaluechangesforavailable-for-sale
financialassets
4.Amountoffinancialassetsre-classifytoother
comprehensiveincome
5.Gain/lossofheld-to-maturityinvestmentsthatre-classify
toavailable-for-salefinancialasset
6.Creditimpairmentprovisionforotherdebtinvestment
7.Cashflowhedgingreserve
8.Translationdifferencesarisingontranslationofforeign
currencyfinancialstatements
9.Other
VI.Totalcomprehensiveincome755,581.53653,513.92VII.Earningspershare:
(i)Basicearningspershare0.00210.0018(ii)Dilutedearningspershare0.00210.0018
5.Consolidatedcashflowstatement
InRMBItem20192018I.Cashflowsarisingfromoperatingactivities:
Cashreceivedfromsellingcommoditiesandprovidinglaborservices
27,678,170.3231,632,073.56
NetincreaseofcustomerdepositandinterbankdepositNetincreaseofloanfromcentralbank
Netincreaseofcapitalborrowedfromotherfinancialinstitution
Cashreceivedfromoriginalinsurancecontractfee
Netcashreceivedfromreinsurancebusiness
Netincreaseofinsuredsavingsandinvestment
Cashreceivedfrominterest,commissionchargeandcommission
Netincreaseofcapitalborrowed
Netincreaseofreturnedbusinesscapital
Netcashreceivedbyagentsinsaleandpurchaseofsecurities
Write-backoftaxreceived
Othercashreceivedconcerningoperatingactivities2,240,358.731,966,271.29Subtotalofcashinflowarisingfromoperatingactivities29,918,529.0533,598,344.85
2019
Cashpaidforpurchasingcommoditiesandreceivinglaborservice7,564,247.629,249,110.15NetincreaseofcustomerloansandadvancesNetincreaseofdepositsincentralbankandinterbankCashpaidfororiginalinsurancecontractcompensationNetincreaseofcapitallentCashpaidforinterest,commissionchargeandcommissionCashpaidforbonusofguaranteeslipCashpaidto/forstaffandworkers12,622,537.6111,949,737.94Taxespaid1,725,491.142,481,200.14Othercashpaidconcerningoperatingactivities3,292,591.173,134,403.36Subtotalofcashoutflowarisingfromoperatingactivities25,204,867.5426,814,451.59Netcashflowsarisingfromoperatingactivities4,713,661.516,783,893.26II.Cashflowsarisingfrominvestingactivities:
CashreceivedfromrecoveringinvestmentCashreceivedfrominvestmentincomeNetcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets
68,870.00NetcashreceivedfromdisposalofsubsidiariesandotherunitsOthercashreceivedconcerninginvestingactivitiesSubtotalofcashinflowfrominvestingactivities68,870.00Cashpaidforpurchasingfixed,intangibleandotherlong-termassets
12,723,946.921,101,145.12CashpaidforinvestmentNetincreaseofmortgagedloansNetcashreceivedfromsubsidiariesandotherunitsobtainedOthercashpaidconcerninginvestingactivitiesSubtotalofcashoutflowfrominvestingactivities12,723,946.921,101,145.12Netcashflowsarisingfrominvestingactivities-12,655,076.92-1,101,145.12III.Cashflowsarisingfromfinancingactivities
CashreceivedfromabsorbinginvestmentIncluding:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiariesCashreceivedfromloansOthercashreceivedconcerningfinancingactivitiesSubtotalofcashinflowfromfinancingactivities
2019
CashpaidforsettlingdebtsCashpaidfordividendandprofitdistributingorinterestpayingIncluding:DividendandprofitofminorityshareholderpaidbysubsidiariesOthercashpaidconcerningfinancingactivitiesSubtotalofcashoutflowfromfinancingactivitiesNetcashflowsarisingfromfinancingactivitiesIV.InfluenceoncashandcashequivalentsduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents-7,941,415.415,682,748.14Add:Balanceofcashandcashequivalentsattheperiod-begin15,364,355.309,681,607.16VI.Balanceofcashandcashequivalentsattheperiod-end7,422,939.8915,364,355.30
6.CashflowstatementofparentCompany
InRMBItem20192018I.Cashflowsarisingfromoperatingactivities:
Cashreceivedfromsellingcommoditiesandprovidinglaborservices
27,678,170.3231,632,073.56
Write-backoftaxreceived
Othercashreceivedconcerningoperatingactivities2,238,801.002,465,488.22Subtotalofcashinflowarisingfromoperatingactivities29,916,971.3234,097,561.78
Cashpaidforpurchasingcommoditiesandreceivinglaborservice7,564,247.629,249,110.15
Cashpaidto/forstaffandworkers12,622,537.6111,949,737.94
Taxespaid1,725,491.142,480,915.14
Othercashpaidconcerningoperatingactivities3,292,221.173,134,204.86Subtotalofcashoutflowarisingfromoperatingactivities25,204,497.5426,813,968.09Netcashflowsarisingfromoperatingactivities4,712,473.787,283,593.69II.Cashflowsarisingfrominvestingactivities:
Cashreceivedfromrecoveringinvestment
Cashreceivedfrominvestmentincome
Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets
68,870.00
Netcashreceivedfromdisposalofsubsidiariesandotherunits
Othercashreceivedconcerninginvestingactivities
2019
Subtotalofcashinflowfrominvestingactivities68,870.00
Cashpaidforpurchasingfixed,intangibleandotherlong-termassets
12,723,946.921,101,145.12
Cashpaidforinvestment1,000,000.00
Netcashreceivedfromsubsidiariesandotherunitsobtained
OthercashpaidconcerninginvestingactivitiesSubtotalofcashoutflowfrominvestingactivities12,723,946.922,101,145.12Netcashflowsarisingfrominvestingactivities-12,655,076.92-2,101,145.12III.Cashflowsarisingfromfinancingactivities
Cashreceivedfromabsorbinginvestment
Cashreceivedfromloans
Othercashreceivedconcerningfinancingactivities500,000.00Subtotalofcashinflowfromfinancingactivities500,000.00
Cashpaidforsettlingdebts
Cashpaidfordividendandprofitdistributingorinterestpaying
OthercashpaidconcerningfinancingactivitiesSubtotalofcashoutflowfromfinancingactivitiesNetcashflowsarisingfromfinancingactivities500,000.00IV.InfluenceoncashandcashequivalentsduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents-7,442,603.145,182,448.57
Add:Balanceofcashandcashequivalentsattheperiod-begin14,864,055.739,681,607.16VI.Balanceofcashandcashequivalentsattheperiod-end7,421,452.5914,864,055.73
7.Consolidatechangeofowners’equity
Currentperiod
InRMB
Item
2019Owners’equityattributabletotheparentCompany
inorTotalowners’
equitySharecapital
Otherequityinstrument
Capitalreserve
LessOtheReasSurpProvRetainedprofit
otheSubtotal
2019
ityinterests
:
Inventoryshares
rco
prehensiveinco
mm
e
onablereserve
lusreserve
isionofgeneralrisk
r
Preferredstock
Perpetualcapitalsecurities
Other
I.Balanceattheendofthelastyear
364,100,000.0054,142,850.01-340,454,153.7277,788,696.2977,788,696.29Add:Changesofaccountingpolicy
-58,813.79-58,813.79-58,813.79Errorcorrectionofthelastperiod
Enterprisecombineunderthesamecontrol
OtherII.Balanceatthebeginningofthisyear
364,100,000.0054,142,850.01-340,512,967.5177,729,882.5077,729,882.50III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
756,721.46756,721.46756,721.46(i)Totalcomprehensiveincome
756,721.46756,721.46756,721.46(ii)Owners’devotedanddecreasedcapital
2019
1.Commonshares
investedbyshareholders
2.Capitalinvestedby
holdersofotherequityinstruments
3.Amountreckonedinto
ownersequitywithshare-basedpayment
4.Other
(III)Profitdistribution
1.Withdrawalofsurplus
reserves
2.Withdrawalofgeneral
riskprovisions
3.Distributionfor
owners(orshareholders)
4.Other
(IV)Carryingforwardinternalowners’equity
1.Capitalreserves
conversedtocapital(sharecapital)
2.Surplusreserves
conversedtocapital(sharecapital)
3.Remedyinglosswith
surplusreserve4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome
6.Other
(V)Reasonablereserve
1.Withdrawalinthe
reportperiod
2.Usageinthereport
period(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.0054,142,850.01-339,756,246.0578,486,603.9678,486,603.96LastPeriod
InRMB
2019
Item
2018
Owners’equityattributabletotheparentCompany
inorityinterests
Totalowners’equity
Sharecapital
Otherequityinstrument
Capitalpublicreserve
Less:
Inventoryshares
Otherco
Mm
prehensiveinco
mm
e
Reasonablereserve
Surplusreserve
Provisionofgeneralrisk
Retainedprofit
otherSubtotal
Preferredstock
Perpetualcapitalsecurities
Other
2019
I.Balanceattheendofthelastyear
364,100,000.0054,142,850.01-341,107,435.9177,135,414.1077,135,414.10Add:Changesofaccountingpolicy
Errorcorrectionofthelastperiod
EnterprisecombineunderthesamecontrolOtherII.Balanceatthebeginningofthisyear
364,100,000.0054,142,850.01-341,107,435.9177,135,414.1077,135,414.10III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
653,282.19653,282.19653,282.19(i)Totalcomprehensiveincome
653,282.19653,282.19653,282.19(ii)Owners’devotedanddecreasedcapital
1.Commonshares
investedbyshareholders
2.Capitalinvestedby
holdersofotherequityinstruments
3.Amountreckonedinto
ownersequitywithshare-basedpayment
4.Other
(III)Profitdistribution
1.Withdrawalofsurplus
reserves
2.Withdrawalofgeneral
riskprovisions
3.Distributionfor
owners(orshareholders)
4.Other
(IV)Carryingforwardinternalowners’equity
1.Capitalreserves
conversedtocapital(sharecapital)
2.Surplusreserves
conversedtocapital(sharecapital)
2019
3.Remedyinglosswith
surplusreserve4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome
6.Other
(V)Reasonablereserve
1.Withdrawalinthe
reportperiod
2.Usageinthereport
period(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.0054,142,850.01-340,454,153.7277,788,696.2977,788,696.29
8.Changeofowners’equityofparentcompany
Currentperiod
InRMBItem
2019Sharecapital
Otherequityinstrument
Capitalpublic
reserve
L
e
s
s
Othe
Reas
Surp
Retainedprofit
Othe
Totalowners’
equity
2019
:
Inventoryshares
rco
prehensiveinco
mm
e
onablereserve
lusreserve
r
Preferredstock
Perpetualcapitalsecurities
Other
I.Balanceattheendofthelastyear364,100,000.0054,142,850.01-340,453,921.9977,788,928.02Add:Changesofaccountingpolicy-58,813.79-58,813.79ErrorcorrectionofthelastperiodOtherII.Balanceatthebeginningofthisyear364,100,000.0054,142,850.01-340,512,735.7877,730,114.23III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
755,581.53755,581.53(i)Totalcomprehensiveincome755,581.53755,581.53(ii)Owners’devotedanddecreasedcapital
1.Commonsharesinvestedbyshareholders
2.Capitalinvestedbyholdersofotherequity
instruments
3.Amountreckonedintoownersequitywith
share-basedpayment
4.Other
(III)Profitdistribution
1.Withdrawalofsurplusreserves
2.Distributionforowners(orshareholders)
3.Other
2019
(IV)Carryingforwardinternalowners’equity
1.Capitalreservesconversedtocapital(share
capital)
2.Surplusreservesconversedtocapital(share
capital)
3.Remedyinglosswithsurplusreserve
4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome
6.Other
(V)Reasonablereserve
1.Withdrawalinthereportperiod
2.Usageinthereportperiod
(VI)OthersIV.Balanceattheendofthereportperiod364,100,000.0054,142,850.01-339,757,154.2578,485,695.76Lastperiod
InRMBItem
2018
Sharecapital
Otherequityinstrument
Capitalreserve
Less
Othe
Reas
Surp
Provisionofgeneralrisk
O
t
h
e
Totalowners’
equity
2019
:
Inventoryshares
rco
prehensiveinco
mm
e
onablereserve
lusreserve
r
Preferredstock
Perpetualcapitalsecurities
Other
I.Balanceattheendofthelastyear364,100,000.0054,142,850.01-341,107,435.9177,135,414.10Add:ChangesofaccountingpolicyErrorcorrectionofthelastperiodOtherII.Balanceatthebeginningofthisyear364,100,000.0054,142,850.01-341,107,435.9177,135,414.10III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
653,513.92653,513.92(i)Totalcomprehensiveincome653,513.92653,513.92(ii)Owners’devotedanddecreasedcapital
1.Commonsharesinvestedbyshareholders
2.Capitalinvestedbyholdersofotherequity
instruments
3.Amountreckonedintoownersequitywith
share-basedpayment
4.Other
(III)Profitdistribution
1.Withdrawalofsurplusreserves
2.Distributionforowners(orshareholders)
3.Other
2019
(IV)Carryingforwardinternalowners’equity
1.Capitalreservesconversedtocapital(share
capital)
2.Surplusreservesconversedtocapital(share
capital)
3.Remedyinglosswithsurplusreserve
4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome
6.Other
(V)Reasonablereserve
1.Withdrawalinthereportperiod
2.Usageinthereportperiod
(VI)OthersIV.Balanceattheendofthereportperiod364,100,000.0054,142,850.01-340,453,921.9977,788,928.02
III.Companyprofilei)OverviewHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoasthe"Company")isastandardizedcompanylimitedbysharesestablishedonApril26,1993andrestructuredfromHainanSanyaDadonghaiTourismCentreDevelopmentCo.,Ltd.withtheapprovalofHainanShareholdingSystemPilotGroupofficeviaitsDocumentQiongGuBanZi[1993]No.11.OnMay6,1996,theCompanywasreorganizedandseparatedwiththereplyofHainanSecuritiesManagementOfficebyitsDocumentQiongZhengBan[1996]No.58.OnOctober8,1996andJanuary28,1997,theCompanywasapprovedtorespectivelyissue80millionBsharesand14millionAsharesonShenzhenStockExchangeandlistforsales.OnJune20,2007,theCompanycarriedoutthesplitsharestructurereform.Thenon-tradableshareholdersoftheCompanypaidsharestothetradableshareholdersforobtainingthecirculationrights,andthetradableshareholdersgot3sharesforevery10shares.TheCompanybelongstotourismandcateringserviceindustry.AsatDecember31,2019,theCompany'saccumulativetotalissuedcapitalwas364.1millionsharesandtheCompany'sregisteredcapitalwasRMB364.1million.Legalrepresentative:YuanXiaoping.Unifiedsocialcreditcode:91460000201357188U.Domicile:Dadonghai,HedongDistrict,Sanya.Businessscope:Accommodationandcateringindustry(limitedtobranches);photography;flowerbonsai,knitwear,generalmerchandise,hardwareandelectricalequipment,chemicalproducts(exceptfranchisedoperations),dailynecessities,industrialmeansofproduction(exceptfranchisedoperations),metalmaterials,machineryequipment;salesoftrain,busandvehicleticketsonanagentbasis,etc.TheCompany'slargestshareholderisLuoniushanCo.,Ltd.ii)ScopetotheconsolidatedfinancialstatementsAsatDecember31,2019,thesubsidiaryincludedintotheCompany'sscopeofconsolidatedfinancialstatementsisasfollows:
SubsidiaryNameHainanWengaoTouristResourcesDevelopmentCo.,Ltd.(hereinafterreferredtoas"theWengaoTourism")See“NoteVI.Changesinthescopeofconsolidation"and“NoteVII.Equityinotherentities"fordetailsofthescopeofconsolidatedfinancialstatementsin2019andchangesthereof.ThefinancialstatementswereapprovedbyalldirectorsoftheCompanyfordisclosureonMarch19,2020.IV.Basisforthepreparationofthefinancialstatements
1.Preparationbasis
Basedongoingconcernandaccordingtoactuallyoccurredtransactionsandevents,theCompanypreparedfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises—BasicStandardsandthespecificaccountingstandards,theAccountingStandardsforBusinessEnterprises-ApplicationGuidance,theAccountingStandardsforBusinessEnterprises-Interpretationandotherrelevantprovisions,issuedbytheMinistryofFinance,(hereinafterreferredtocollectivelyasthe"AccountingStandardsforBusinessEnterprises"),aswellasthedisclosureprovisionsoftheRulesfortheCompilationandSubmissionofInformationDisclosureby
CompaniesOfferingSecuritiestothePublicNo.15-GeneralRequirementsforFinancialReports.
2.Goingconcern
TheCompanycurrentlyhassufficientworkingcapitalandnormaloperatingconditions.ItisestimatedthattheoperatingactivitiesoftheCompanywillstillcontinueinthenext12months.V.SignificantaccountingpoliciesandaccountingestimatesSpecificaccountingpoliciesandestimates:
AccordingtorelevantregulationsofAccountingStandardsforBusinessEnterprisesandaccountingmechanism,combinedwiththeactualoperatingcharacteristicstoformulatedthecorrespondingaccountingpoliciesandestimates.
1.StatementoncompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanymeetrequirementsoftheAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflecttheconsolidatedandtheCompany’sfinancialpositionasofDecember31,2019aswellasoperationresultsandcashflowsfortheyear2019.
2.Accountingperiod
TheaccountingyearisfromJanuary1toDecember31incalendaryear.
3.Operatingcycle
TheCompany'soperatingcycleis12months.
4.Functionalcurrency
RMBisadoptedasthefunctionalcurrency.
5.AccountingtreatmentmethodsforbusinesscombinationsunderandnotundercommoncontrolBusinesscombinationundercommoncontrol:TheassetsandliabilitiesacquiredbytheCompanyinbusinesscombinationsaremeasuredatbookvaluesofassetsandliabilitiesofthecombinee(includingthegoodwillarisingfromtheacquisitionofthecombineebytheultimatecontroller)intheconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestockpremiuminthecapitalreservesisadjustedaccordingtothedifferencebetweenthebookvalueofthenetassetsacquiredinbusinesscombinationandthebookvalueoftheconsiderationpaidforthecombination(ortotalparvalueofsharesissued).Ifthereisnosufficientstockpremiuminthecapitalreservesforwrite-downs,theretainedearningsshallbeadjusted.Businesscombinationnotundercommoncontrol:TheCompanyshall,ontheacquisitiondate,measuretheassetssurrenderedandliabilitiesincurredorassumedbytheCompanyforabusinesscombinationattheirfairvalues.Thedifferencebetweenthefairvalueandtheirbookvalueshallbeincludedinthecurrentprofitorloss.TheCompanyshallrecognizethedifferenceofthecombinationcostsinexcessofthefairvalueoftheidentifiablenetassetsacquiredfromtheacquireeasgoodwill.TheCompanyshallrecognizethedifferenceofthecombinationcostsinshortofthefairvalueoftheidentifiablenetassetsacquiredfromtheacquireeinthecurrentprofitorloss
afterreview.Theexpensesdirectlyrelatedtotheenterprisemerger(includingauditingcharge,legalservicesandintermediatefeeasappraisalconsultantandotherexpenses)shallberecordedintothecurrentprofitandlosswhenincurred.Thetransactioncostofissuingequitysecuritiesordebtsecuritiesforthepurposeofbusinessmerger,equityshallbewritten-off.
6.Preparationmethodsofconsolidatedfinancialstatements
1)Scopeofconsolidation
ThescopeofconsolidatedfinancialstatementsoftheCompanyisdeterminedonthebasisofcontrol,allsubsidiaries(includesthedivisiblepartoftheinvesteethatcontrolledbytheCompany)areincludedinconsolidatefinancialstatement.
2)Proceduresofconsolidation
TheCompanypreparestheconsolidatedfinancialstatementsbasedonfinancialstatementsofitselfanditssubsidiariesandaccordingtootherrelevantinformation.Uponpreparationofconsolidatedfinancialstatements,theCompanyshalldeemthewholegroupasawholeaccountingentity,andreflectstheoverallfinancialposition,operatingresultsandcashflowsofthegroupinaccordancewithrelevantrequirementsforrecognition,measurementandpresentationasstatedintheAccountingStandardsforBusinessEnterprisesaswellasuniformaccountingpolicies.AllthesubsidiarieswithintheconsolidationscopeofconsolidatedfinancialstatementsshalladoptthesameaccountingpoliciesandaccountingperiodsasthoseoftheCompany.IftheaccountingpoliciesoraccountingperiodsofasubsidiaryaredifferentfromthoseoftheCompany,theconsolidatedfinancialstatementsofthesubsidiary,uponpreparationofconsolidatedfinancialstatements,shallbeadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany.Forthesubsidiariesacquiredthroughbusinesscombinationnotunderthesamecontrol,adjustmentstotheirfinancialstatementsshallbemadebasedonthefairvaluesofnetidentifiableassetsontheacquisitiondate.Forasubsidiaryacquiredthroughbusinesscombinationundercommoncontrol,adjustmenttoitsfinancialstatementsshallbemadebasedonthebookvaluesofitsassetsandliabilities(includinggoodwillformedintheacquisitionofthesubsidiarybyitsultimatecontroller)aspresentedinthefinancialstatementsoftheultimatecontroller.Theshareofowners'equity,currentnetprofitsandlosses,andcurrentcomprehensiveincomeofsubsidiariesattributabletominorityownersshallberespectivelyandseparatelylistedundertheowner'sequityitemofaconsolidatedbalancesheet,thenetprofititemofaconsolidatedincomestatement,andthetotalcomprehensiveincomeinaconsolidatedincomestatement.Wherethecurrentlossessharedbyaminorityshareholderofasubsidiaryexceedsthebalancesarisingfromthesharesenjoyedbytheminorityshareholderintheowners'equityofthesubsidiaryatthebeginningoftheperiod,minorityequityshallbewrittendownaccordingly.
(1)Increaseofsubsidiariesorbusiness
Duringthereportingperiod,iftheCompanyacquiredsubsidiariesorbusinessfromthebusinesscombinationundercommoncontrol,thebeginningbalanceintheconsolidatedstatementoffinancialpositionshallbeadjusted;therevenue,expensesandprofitsofthenewlyacquiredsubsidiariesorbusinessfromthebeginningtotheendofthereportingperiodshallbeincludedintotheconsolidatedincomestatement;thecashflowsofthenewlyacquiredsubsidiariesorbusinessfromthebeginningtotheendofthereportingperiodshallbeincludedintheconsolidatedstatementofcashflow.Relevantitemsinthecomparativefinancialstatementsofthesubsidiariesshallbeadjustedaccordingly,asifthereportingentityafterthebusinesscombinationexistsatthetimewhentheultimatecontrollerhasthecontrolpower.Wherecontrolcanbeexercisedontheinvesteeunderthecommoncontrolforadditionalinvestmentorotherreasons,adjustmentwillbemadeasifallpartiesinvolvedinthecombinationexistatthebeginningofthecontrolbytheultimatecontroller.Equityinvestmentsheldbeforethecontroloverthecombinedpartyisobtained,therelatedgainsandlosses,othercomprehensiveincomeaswellasotherchangesinnetassetsrecognizedfromthelaterofthedatewhentheoriginalequityisobtainedorthedatewhentheacquirerandtheacquireeareunderthesamecontrol,tothecombinationdatewillrespectivelywritedowntheretainedearningsorcurrentprofitorlossinthecomparativestatements.Duringthereportingperiod,iftheCompanyincreasedsubsidiariesorbusinessfrombusinesscombinationsnotundercommoncontrol,thebeginningbalanceintheconsolidatedbalancesheetshallnotbeadjusted;therevenue,expensesandprofitsofthesubsidiariesorbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedincomestatement;cashflowsofthesubsidiariesandbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedstatementofcashflows.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,itshallre-measureequityoftheacquireeheldbeforetheacquisitiondateatthefairvalueofsuchequityontheacquisitiondateandincludethedifferenceofthefairvalueandbookvalueintheinvestmentincomeintheyear.Whereequityoftheacquireeheldbeforetheacquisitiondateinvolvesinothercomprehensiveincomeaccountedforunderequitymethodandotherchangesinowners'equityotherthannetprofitsorlosses,othercomprehensiveincomeandprofitdistribution,therelevantothercomprehensiveincomeandotherchangesinowners'equityshallbetransferredtoinvestmentincomeintheyearwhichtheacquisitiondatefallsin,exceptforothercomprehensiveincomefromchangesarisingfromre-measurementofnetliabilitiesornetassetsofdefinedbenefitplanbytheinvestee.
(2)Disposalofsubsidiariesorbusiness
GeneralmethodoftreatmentDuringthereportingperiod,wheretheCompanydisposesofanysubsidiaryorbusiness,therevenues,expensesandprofitsofthesubsidiaryorbusinessfromthebeginningperiodtothedisposaldateshallbeincludedintheconsolidatedincomestatement;cashflowsofthesubsidiaryorbusinessfromthebeginningperiodtothedisposaldateshallbeincludedintheconsolidatedstatementofcashflows.
WhentheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentorotherreasons,theremainingequityinvestmentafterthedisposalwillbere-measuredbytheCompanyatitsfairvalueonthedateoflossofthecontrol.Thedifferenceofthesumoftheconsiderationacquiredfromdisposalofequitiesandthefairvalueoftheremainingequitieslessthesumofthesharecalculatedattheoriginalshareholdingratioinnetassetsoftheoriginalsubsidiarywhicharecontinuouslycalculatedasoftheacquisitiondateorthecombinationdateandgoodwillshallbeincludedintheinvestmentincomeoftheperiodinwhichthecontrolislost.Othercomprehensiveincomesassociatedwiththeequityinvestmentsoftheoriginalsubsidiary,orthechangesinowners'equityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,aretransferredintoinvestmentincomeoftheperiodwhenthecontrolislost,exceptforothercomprehensiveincomefromthechangeinnetliabilityornetassetduetotheinvestor'sre-measurementofdefinedbenefitplan.WheretheCompanylosesthecontrolofanysubsidiaryduetothedeclineinitsshareholdingratiointhesubsidiary,causedbytheincreaseofinvestmentinthesubsidiarybyotherinvestors,theaccountingtreatmentshallbeconductedaccordingtotheaboveprinciples.
DisposalofsubsidiariesbystagesIfthecontrolislostduetodisposaloftheequitiesinsubsidiariesthroughmultipletransactionsbystages,andtheterms,conditionsandeconomicimpactofthetransactionsrelatedtotheenterprise'sdisposalofitsinvestmentinthesubsidiariesmeetoneormoreofthefollowingcircumstances,itusuallyindicatesthatmultipletransactionsshouldbeincludedinapackagedealandsubjecttoaccountingprocessingasbelow:
i.Thesetransactionsareconcludedatthesametimeorundertheconsiderationofmutualeffect;ii.Thesetransactionsasawholecanreachacompletebusinessresult;iii.Theoccurrenceofatransactiondependsontheoccurrenceofatleastoneothertransaction;iv.Asingletransactionisuneconomicalbutiseconomicalwhenconsideredtogetherwithothertransactions.Wherevarioustransactionsofdisposalofequityinvestmentsinsubsidiariesuntillossofthecontrolbelongtoapackagedeal,accountingtreatmentshallbemadebytheCompanyonthetransactionsasatransactiontodisposesubsidiariesandlosethecontrol;however,thedifferencebetweeneachdisposalcostandnetassetshareinthesubsidiariescorrespondingtoeachdisposalofinvestmentsbeforelossofthecontrolshouldberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandshouldbetransferredintothecurrentprofitorlossatthelossofthecontrol.Wherevarioustransactionsofdisposalofequityinvestmentsinsubsidiariesuntillossofthecontroldonotbelongtoapackagedeal,beforethelossofthecontrol,accountingtreatmentshallbemadeaccordingtotherelevantpoliciesforpartialdisposalofequityinvestmentsinthesubsidiarywithoutlosingcontrol;atthelossofthecontrol,accountingtreatmentshallbemadeaccordingtogeneraltreatmentmethodsfordisposalofsubsidiaries.
(3)Purchaseofminorityinterestofsubsidiaries
Thesharepremiuminthecapitalreservesundertheconsolidatedbalancesheetwillbeadjustedatthedifferencebetweenthelong-termequityinvestmentacquiredbytheCompanyforthepurchaseofminorityinterestandtheshareofnetassetscalculatedconstantlyfromtheacquisitiondate(orcombinationdate)accordingtothenewlyincreasedshareholdingratio.Wherethesharepremiumisinsufficienttooffset,retainedearningswillbeadjusted.
(4)PartialdisposalofequityinvestmentsinsubsidiarieswithoutlosingcontrolThesharepremiuminthecapitalreservesundertheconsolidatedbalancesheetwillbeadjustedatthedifferencebetweentheproceedsachievedfromthepartialdisposaloflong-termequityinvestmentsinsubsidiariesandtheshareofnetassetsofsubsidiariesattributabletotheCompanycorrespondingtothedisposaloflong-termequityinvestmentsandcalculatedconstantlyfromtheacquisitiondateorcombinationdate,withoutlosingthecontrol.Wherethesharepremiumisinsufficienttowritedown,theretainedearningswillbeadjusted.
7.ClassificationandaccountingtreatmentofjointventurearrangementsJointventurearrangementsareclassifiedintojointoperationandjointventure.
JointoperationrefersthejointventurearrangementwheretheCompanyisajointventureandenjoysassetsrelevantthejointventurearrangementandassumesliabilitiesrelevanttothesame.TheCompanyrecognizesthefollowingitemsrelatedtoitsshareofbenefitsinthejointoperationandconductaccountingtreatmentinaccordancewithrelevantaccountingstandardsforbusinessenterprises:
(1)AssetspeculiartotheCompanyandassetsjointlyownedbytheCompanybasedonsharesheld;
(2)LiabilitiesundertakenbytheCompanysolelyandliabilitiesjointlyundertakenbytheCompanybasedonsharesheld;
(3)RevenuefromthesalesofoutputshareenjoyedbytheCompanyinthejointoperation;
(4)RevenuefromthesalesofthejointoperationoutputbasedonthesharesheldbytheCompany;and
(5)Separatecosts,andcostsforthejointoperationbasedonthesharesheldbytheCompany.
8.Recognitioncriteriaofcashandcashequivalents
Forthepurposeofpreparingthestatementofcashflows,theterm“cash”referstothecashonhandandtheunrestricteddepositoftheCompany.Theterm“cashequivalents”referstoshort-term(maturingwithinthreemonthsfromacquisition)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandsubjecttoaninsignificantriskofchangeinvalue.
9.Foreigncurrencybusinessandstatementtranslation
ForeigncurrencytransactionsaretranslatedintoRMBforrecordingpurposeatthespotexchangerateprevailingonthetransactiondate.Thebalanceofforeigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdateandtheexchangedifferencesarisingtherefromshallbeincludedinthecurrentprofitandloss,exceptthoseexchangedifferencesarisingfromthespecialborrowingsofforeigncurrencyrelatedtotheacquiredandconstructedassetsqualifiedforcapitalizationthatwillbecapitalizedattheborrowingexpenses.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostsshallstillbeconvertedatthespotexchangerateswhenthetransactionsoccur,withoutchangingthefunctionalcurrencyamount.Foreigncurrencynon-monetaryitemsmeasuredatfairvalueshallbetranslatedatthespotexchangeratesonthedaywhenthefairvalueisdetermined.Theexchangedifferencearisingtherefromisincludedinthecurrentprofitandlossorcapitalreserves.
10.Financialinstruments
Financialinstrumentsincludefinancialassets,financialliabilitiesandequityinstruments.
1)Classificationoffinancialinstruments
Uponinitialrecognition,financialassetsandfinancialliabilitiesareclassifiedinto:financialassetsorfinancialliabilitiesmeasuredatfairvaluethroughcurrentprofitandloss,includingfinancialassetsorfinancialliabilitiesheldfortradingandfinancialassetsorfinancialliabilitiesdirectlydesignatedtobemeasuredatfairvaluethroughcurrentprofitandloss;held-to-maturityinvestments;receivables;available-for-salefinancialassets;andotherfinancialliabilities,etc.
2)Recognitionbasisandmeasurementmethodoffinancialinstruments
(1)Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossFinancialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossareinitiallyrecognizedatthefairvalueuponacquisition(netofcashdividendsdeclaredbutnotyetpaidorbondinterestduebutnotyetreceived)andtherelatedtransactioncostsareincludedincurrentprofitandloss.Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.Changeinfairvaluesisincludedinthecurrentprofitandlossattheendoftheperiod.Thedifferencebetweenthefairvalueandtheinitialbook-entryvalueisrecognizedasinvestmentincomeupondisposal;meanwhile,adjustmentsaremadetoprofitsorlossesfromchangesinfairvalues.
(2)Held-to-maturityinvestments
Held-to-maturityinvestmentsareinitiallyrecognizedatthesumofthefairvalue(netofbondinterestduebutnotyetreceived)andrelatedtransactioncostsuponacquisition.Theinterestincomeiscalculatedandrecognizedaccordingtoamortizedcostsandeffectiveinterestrates(aspercouponratesifthedifferencebetweeneffectiveinterestratesandcouponratesissmall)duringtheholdingperiod,andisincludedintheinvestmentincome.Theeffectiveinterestratesaredetermineduponacquisitionandremainunchangedduringtheexpectedremainingperiod,orashorterperiodifapplicable.Upondisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueoftheinvestmentisrecognizedininvestmentincome.
(3)Receivables
Forcreditor’srightsreceivablearisingfromexternalsalesofgoodsorrenderingofservicebytheCompanyandothercreditor'srightsofotherenterprises(excludingliabilityinstrumentsquotedinanactivemarket)heldbytheCompany,includingaccountsreceivable,otherreceivables,notesreceivable,prepaymentandothers,theinitialrecognitionamountshallbethecontractpriceoragreementpricereceivablefrompurchasingparty;forthosewithfinancingnature,theyareinitiallyrecognizedattheirpresentvalues.Uponrecoveryordisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueofthereceivablesisrecognizedincurrentprofitandloss.
(4)Available-for-salefinancialassets
Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossareinitiallyrecognizedatthefairvalueandrelatedtransactionexpensesuponacquisition(netofcashdividendsdeclaredbutnotyetpaidorbondinterestduebutnotyetreceived).Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.Theinterestorcashdividendsshouldbemeasuredatfairvalueandtheirchangesinfairvalueshouldbeincludedinothercomprehensiveincome.However,foranequityinstrumentinvestmentthathasnoquotedpriceinanactivemarketandwhosefairvaluecannotbereliablymeasured,andforderivativefinancialassetlinkedtothesaidequityinstrumentinvestmentandsettledbydeliveryofthesameequityinstrument,theyshallbemeasuredatcost.Differencebetweentheproceedsandthebookvalueofthefinancialassetsisrecognizedasinvestmentprofitorlossupondisposal;meanwhile,amountofdisposalcorrespondingtotheaccumulatedchangeinfairvaluewhichisoriginallyanddirectlyincludedinothercomprehensiveincomeshallbetransferredoutandrecognizedasinvestmentgainsorlosses.
(5)Otherfinancialliabilities
Otherfinancialliabilitiesareinitiallyrecognizedatthesumoffairvalueandtransactionexpenses,andsubsequentlymeasuredatamortizedcosts.Subsequentmeasurementisconductedattheamortizedcost.
3)RecognitionbasisandmeasurementmethodofthetransferoffinancialassetsWhenafinancialassetstransferoccurs,thefinancialassetswillbederecognizedwhensubstantiallyalltherisksandrewardsontheownershipofthefinancialassetshavebeentransferredtothetransferee;andtheywillnotbederecognizedifsubstantiallyalltherisksandrewardsontheownershipofthefinancialassetshavebeenretained.Whendeterminingwhetherthetransferofafinancialassetmeetstheabovede-recognitioncriteriaoffinancialassets,theCompanyadoptstheprincipleofsubstanceoverform.TheCompanyclassifiesthetransferofafinancialassetintotheentiretransferandthepartialtransferoffinancialasset.Wheretheentiretransferofthefinancialassetmeetsthede-recognitionconditions,thedifferenceofthefollowingtwoamountswillbeincludedincurrentprofitandloss:
(1)Thebookvalueofthetransferredfinancialasset;
(2)Thesumoftheconsiderationreceivedfromthetransferandtheaccumulatedamountofthechangesinfairvalueoriginallyanddirectlyincludedinowners’equity(thesituationwherethefinancialassettransferredisanavailable-for-salefinancialassetisinvolvedin).Ifthepartialtransferoffinancialassetsatisfiesthecriteriaforde-recognition,theentirebookvalueofthetransferredfinancialassetshallbesplitintothederecognizedandrecognizedpartaccordingtotheirrespectivefairvalueandthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedinthecurrentprofitandloss:
(1)Thebookvalueofthederecognizedpart;
(2)Thesumoftheconsiderationforthederecognizedpartandtheportionofde-recognitioncorrespondingtothe
accumulatedamountofthechangesinfairvalueoriginallyanddirectlyincludedinowners’equity(thesituationwherethefinancialassettransferredisanavailable-for-salefinancialassetisinvolvedin).Ifthetransferoffinancialassetsdoesnotmeetthede-recognitioncriteria,thefinancialassetsshallcontinuetoberecognized,andtheconsiderationreceivedwillberecognizedasafinancialliability
4)De-recognitioncriteriaoffinancialliabilities
Wherethepresentobligationsoffinancialliabilitieshavebeendischargedinwholeorinpart,thefinancialliabilityisderecognizedoranypartthereofshallbederecognized;iftheCompanysignsanagreementwithcreditorstoreplacetheexistingfinancialliabilitiesbyundertakingnewfinancialliabilities,andthenewfinancialliabilitiesaresubstantiallydifferentfromtheexistingonesintermsofcontractterms,theexistingfinancialliabilitiesshallbederecognized,andatthesametime,thenewfinancialliabilityshallberecognized.Wheresubstantivechangesaremadetothecontracttermsofexistingfinancialliabilityinwholeorinpart,theexistingfinancialliabilitiesorpartthereofwillbederecognized,andthefinancialliabilitythetermsofwhichhavebeenmodifiedwillberecognizedasanewfinancialliability.Wherefinancialliabilitiesarederecognizedinwholeorinpart,thedifferencebetweenthebookvalueofthefinancialliabilitiesderecognizedandtheconsiderationpaid(includingnon-cashassetstransferredoutornewfinancialliabilitiesborne)shallbeincludedinthecurrentprofitorloss.WheretheCompanyredeemspartofitsfinancialliabilities,itshall,ontheredemptiondate,allocatetheentirebookvalueofwholefinancialliabilitiesaccordingtothecomparativefairvalueofthepartthatcontinuestoberecognizedandthede-recognizedpart.Thedifferencebetweenthebookvalueallocatedtothederecognizedpartandtheconsiderationspaid(includingnon-cashassetssurrenderedandthenewfinancialliabilitiesassumed)shallbeincludedinthecurrentprofitorloss.
5)DeterminationmethodofthefairvalueoffinancialassetsandfinancialliabilitiesThefairvalueofafinancialinstrument,forwhichthereisanactivemarket,isthepricesquotedforittherein.Thefairvalueofafinancialinstrument,forwhichthereisnoactivemarket,isdeterminedbyusingvaluationtechniques.Atthetimeofvaluation,theCompanyadoptsthetechniquesthatareapplicableinthecurrentsituationandsupportedbyenoughavailabledataandotherinformation,selectstheinputvaluesthatareconsistentwiththefeaturesofassetsorliabilitiesasconsideredbymarketparticipantsinrelevantassetorliabilitytransactions,andgivesprioritytouserelevantobservableinputs.Unobservableinputsareusedonlyunderthecircumstancewhenitisimpossibleorunobservableinputstoobtainrelevantobservableinputs.
6)TestmethodandaccountingtreatmentforimpairmentoffinancialassetsAccountingpoliciesapplicableasof1January2019TheCompanyestimates,individuallyorincombination,theexpectedcreditlossesoffinancialassetsmeasuredatamortizedcostandfinancialassets(debtinstruments)measuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,takingintoaccountallreasonableandevidence-basedinformation,includingforward-lookinginformation.Themeasurementofexpectedcreditlossesdependonwhetherthecreditriskof
financialassetshasincreasedsignificantlysincetheinitialrecognition.Ifthecreditriskofthefinancialinstrumentshasincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentfortheentirelifeoftheinstrument.Ifthecreditriskofthefinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentinthenext12months.Theincreaseorrolloveramountofthelossprovisionresultingtherefromshallberecordedinthecurrentprofitandlossasanimpairmentlossorgain.Thecreditriskoftheinstrumentisgenerallydeemedtohaveincreasedsignificantlyifthedefaultismorethan30days,unlessthereisconclusiveevidencethatthecreditriskoftheinstrumenthasnotincreasedsignificantlysincetheinitialconfirmation.Ifthecreditriskofthefinancialinstrumentislowonthebalancesheetdate,theCompanyconsidersthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.Ifthereisobjectiveevidencethatthecreditimpairmentofafinancialassethasoccurred,theCompanyshallmakeprovisionfortheimpairmentofthefinancialassetonasinglebasis.
11.Notereceivable
12.Accountreceivable
Foraccountreceivables,whetherornottheycontainsignificantfinancingelements,theCompanymeasuresthelossprovisionsaccordingtotheexpectedcreditlossforthewholeduration.Foraccountreceivableshavingobjectiveevidencethatthereisanimpairmentandapplicabletoasingleassessment,shallbesubjectedtoanimpairmenttest,toconfirmtheexpectedcreditloss,andmakeasingleimpairmentprovision.Foraccountreceivableswithoutobjectiveevidenceofimpairment,orwhenasinglefinancialassetcannotbeevaluatedthecreditlossatareasonablecost,theCompanydividesaccountreceivablesintoseveralportfoliosaccordingtothecreditriskcharacteristics,tocalculatetheexpectedcreditlossonthebasisoftheportfolios.Thebasisfordeterminingtheportfoliosisasfollows:
PortfolioNameBasisAccountReceivablesPortfolio1ExternalCustomersforAccountReceivablesAccountReceivablesPortfolio2ConsolidatedRelatedPartyCustomersforAccountReceivables
Fortheaccountreceivablesdividedintoportfolios,theCompanyreferstothehistoryofcreditlossexperience,combinedwiththecurrentsituationandtheforecastofthefutureeconomicsituation,topreparetablesofagingofaccountreceivablesandcomparisontablesofexpectedcreditlossrateoftheentireduration,andtocalculatethe
expectedcreditlossForleasereceivables,long-termreceivablesformedbytheCompanythroughthesaleofgoodsortheprovisionofservices,theCompanychoosestoalwaysmeasureitslossprovisionsatanamountequaltotheexpectedcreditlossfortheentireduration.Forotherreceivables,ifthecreditriskhasnotsignificantlyincreasedsincetheinitialrecognition,itisinthefirststage.TheCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossinthenext12months.Ifthecreditriskhasincreasedsignificantlysincetheinitialrecognition,butthecreditimpairmenthasnotoccurred,itisinthesecondstage.Ifthecreditimpairmenthasoccurredsincetheinitialrecognition,itisinthethirdstage.TheCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossoftheinstrumentthroughoutitslife.
13.Receivablesfinancing
ConsistentwiththeAccountingStandardsforBusinessEnterprise
14.Otherreceivable
MethodsofdeterminingforexpectedcreditlossesofotherreceivableandaccountingtreatmentTheCompanydividesotherreceivablesintoseveralportfoliosbasedonthecreditriskcharacteristics.Thebasisfordeterminingtheportfolioisasfollows:
PortfolioNameBasisOtherReceivablesPortfolio1Deposit,SecurityDepositandReserveReceivablesOtherReceivablesPortfolio2ReceivablesofAdvancePaymentforAnotherPartyOtherReceivablesPortfolio3UnifiedcollectionofadvancepaymentofotherreceivablesForotherreceivablesdividedintoportfolios,theCompanyreferstohistoricalexperienceincreditloss,combinedwiththecurrentsituationandforecastedfutureeconomicsituation,andbydefaultriskexposureandthecreditlossratewithinnext12monthsorthewholeduration,tocalculatetheexpectedcreditlosses.
15.Inventories
1.Classificationofinventories
Theinventoriesareclassifiedinto:rawmaterials,commoditystocks,low-valueconsumables,foodmaterials,fuels,etc.
2.Measurementofinventoriesdispatched
Thecommoditystocksareaccountedforbasedontheirsellingprices,andthedifferencebetweenthecommoditypurchasingpriceandthesellingpriceisadjustedmonthlybythecomprehensivespreadratemethod.Theinventorymaterialsaremeasuredatactualcostwhenpurchasedandwarehoused,andmeasuredusingthefirst-infirst-outmethodwhenappliedforuseanddispatched.Low-valueconsumablesareamortizedonaone-offbasiswhenappliedforuse.
3.DeterminingbasisofthenetrealizablevalueofinventoriesandmethodforinventorydepreciationreserveAfterthecomprehensivecheckoftheinventoriesattheendoftheperiod,theinventorydepreciationreservesareprovidedoradjustedattheircostsornetrealizablevalues,whicheverarelower.Forinventoriesfordirectsale,includingcommoditystocksandmaterialsforsale,theirnetrealizablevaluesshallberecognizedattheestimatedsellingpricesminustheestimatedsellingexpensesandtherelevanttaxesandsurchargesinthenormaloperationprocess.Forinventoriesheldtoexecutesalescontractorservicecontract,theirnetrealizablevaluesarecalculatedonthebasisofcontractprice.IfthequantitiesheldbytheCompanyaremorethanthequantitiesorderedinsalescontracts,thenetrealizablevalueoftheexcessportionofinventoriesshallbebasedongeneralsellingprices.Theprovisionsforinventorydepreciationreservearemadeonanindividualbasisattheendoftheperiod;forinventorieswithlargequantitiesandrelativelylowunitprices,theprovisionsforinventorydepreciationreservearemadeonacategorybasis.Forinventoriesrelatedtotheproductportfoliosmanufacturedandsoldinthesamearea,andofwhichthefinalusageorpurposeisidenticalorsimilarthereto,andwhichisdifficulttoseparatefromotheritemsformeasurementpurposes,theprovisionsforinventorydepreciationreservearemadeonaportfoliobasis.Wherethepreviousfactorsaffectingthewritten-downofthevalueofinventoryhavedisappeared,theamountofwrite-downshallberesumedandbereversedfromtheoriginalprovisionforinventorydevaluationwiththereversalbeingincludedincurrentprofitandloss.
4.Inventorysystem
Perpetualinventorysystemisadopted.
5.Amortizationmethodforlow-costconsumablesandpackagingmaterials
(1)Low-costconsumablesareamortizedinalumpsum;
(2)Packagingmaterialsareamortizedinalumpsum.
16.Contractualassets
ConsistentwiththeAccountingStandardsforBusinessEnterprises
17.Contractualcosts
ConsistentwiththeAccountingStandardsforBusinessEnterprises
18.AssetsholdingforSale
TheCompanyclassifiesnon-currentassetsordisposalgroupsthatmeetthefollowingconditionsasholdingforsale:
(1)Subjecttothepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,thesalecanbeeffected
immediatelyunderthecurrentcircumstances;
(2)Asaleishighlylikelytooccur,thatis,theCompanyhasmadeadecisiononasaleplanandobtainedafirmpurchasecommitment,andthesaleisexpectedtobecompletedwithinoneyear.Wheretherelevantprovisionsrequiretheapprovaloftherelevantauthorityorregulatoryauthorityofthecompanybeforethesale,theapprovalhasbeenobtained.
19.Investmentindebtobligations
ConsistentwiththeAccountingStandardsforBusinessEnterprises
20.Otherinvestmentindebtobligations
ConsistentwiththeAccountingStandardsforBusinessEnterprises
21.Long-termaccountreceivable
ConsistentwiththeAccountingStandardsforBusinessEnterprises
22.Long-termequityinvestment
JudgmentcriteriaforjointcontrolandsignificantinfluenceJointcontrolreferstothecontrolsharedoveranarrangementinaccordancewiththerelevantstipulations,andthedecision-makingofrelatedactivitiesofthearrangementshouldnotbemadebeforethepartysharingthecontrolrightagreesthesame.WheretheCompanyexercisesjointcontrolovertheinvesteetogetherwithotherpartiestothejointventureandenjoystherightontheinvestee'snetassets,theinvesteeisajointventureoftheCompany.Significantinfluencereferstothepowertoparticipateinmakingdecisionsonthefinancialandoperatingpoliciesofanenterprise,suchasappointingrepresentativetotheboardofdirectorsorsimilarorgansofauthorityoftheinvestee,butnotthepowertocontroltheinvestee,orjointlycontrol,theformulationofsuchpolicieswithotherparties.Whereaninvestingenterpriseisabletohavesignificantinfluencesonaninvestee,theinvesteeisitsassociate.Determinationofinitialinvestmentcost
(1)Long-termequityinvestmentsacquiredthroughbusinesscombinationBusinesscombinationundercommoncontrol:iftheCompanypaysaconsiderationtothecombineeincash,bytransferringnon-cashassetsorbyassumingdebtsandissuingequitysecurities,theshareofbookvalueofitsowners'equityinthecombineeintheconsolidatedfinancialstatementsoftheultimatecontrollershallbe
recognized,onthecombinationdate,astheinitialcostofthelong-termequityinvestment.Iftheinvestedentityunderthesamecontrolcanbecontrolledduetoadditionalinvestmentandotherreasons,theinitialinvestmentcostoflong-termequityinvestmentshallbedeterminedaccordingtotheshareofthenetassetsofthemergedpartyinthecarryingvalueoftheconsolidatedfinancialstatementsoftheultimatecontrollingpartyafterthemerger.Thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentonthedateofthemergerandthesumofthebookvalueofthelong-termequityinvestmentbeforethemergertogetherwiththebookvalueofthefurtheracquisitionofthenewlypaidconsiderationofthesharesonthedateofthemergershallbeadjustedfortheequitypremium.Forlong-termequityinvestmentsacquiredfrombusinesscombinationsundercommoncontrol,theinvestmentinitialcostthereofshallberecognizedattheshareofbookvalueofthecombinee'snetassetsintheconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestockpremiumshouldbeadjustedatthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsonthecombinationdateandthesumofthebookvalueoflong-termequityinvestmentsbeforethecombinationandthebookvalueofconsiderationnewlypaidforadditionalshares;ifthereisnosufficientstockpremiumtobewrittendown,theretainedearningsareadjusted.Businesscombinationnotundercommoncontrol:theCompanyrecognizesthecombinationcostdeterminedonthecombinationdateastheinitialcostoflong-termequityinvestments.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,theinitialinvestmentcostshouldbechangedtobeaccountedforunderthecostmethodandrecognizedatthesumofthebookvalueofequityinvestmentsoriginallyheldandnewlyincreasedinvestmentcost.
(2)Long-termequityinvestmentsacquiredbyothermeans
Forlong-termequityinvestmentsacquiredfromcashpayment,theinitialinvestmentcostistheactuallypaidpurchasingcost.Forthelong-termequityinvestmentsacquiredthroughissuingtheequitysecurities,thefairvalueofequitysecuritiesissuedshallberecognizedastheinitialinvestmentcost.Onthepremisethatnon-monetaryassettradeisofcommercialnatureandthefairvalueoftheassettradedinoroutcanbemeasuredreliably,theinitialcostofalong-termequityinvestmenttradedinwithnon-monetaryassetshouldbedeterminedaccordingtothefairvalueoftheassettradedoutandrelevanttaxesandsurchargespayable,unlessanyunambiguousevidenceindicatesthatthefairvalueoftheassettradedinismorereliable;astothenon-monetaryassettradenotmeetingtheaforesaidpremise,thebookvalueoftheassettradedoutandrelevanttaxesandsurchargespayableshouldberecognizedastheinitialcostofthelong-termequityinvestment.Forthelong-termequityinvestmentobtainedthroughdebtrestructuring,itsrecordedvalueshallbedeterminedbythefairvalueoftheabandonedcreditor'srightsandthetaxesdirectlyattributabletotheassetsandothercosts,andthedifferencebetweenthefairvalueandbookvalueoftheabandonedcreditor'srightsshallberecordedintothe
currentprofitandloss.Subsequentmeasurementsandrecognitionofprofitorloss
(1)Long-termequityinvestmentsaccountedforundercostmethodLong-termequityinvestmentsoftheCompanyinitssubsidiariesareaccountedforbythecostmethod.Exceptfortheactualpricepaidforacquisitionofinvestmentorthecashdividendsorprofitscontainedintheconsiderationwhichhavebeendeclaredbutnotyetdistributed,theCompanyrecognizesthecurrentinvestmentincomebasedonthecashdividendsorprofitsenjoyedbytheCompanyanddeclaredtobedistributedbytheinvestee.
(2)Long-termequityinvestmentsaccountedforundertheequitymethodTheCompany'slong-termequityinvestmentsinitsassociatesandjointventuresarecalculatedundertheequitymethod.Ifthecostofinitialinvestmentisinexcessoftheproportionofthefairvalueofthenetidentifiableassetsintheinvesteewhentheinvestmentismade,thedifferencewillnotbeadjustedtotheinitialcostoflong-termequityinvestment;ifthecostofinitialinvestmentisinshortoftheproportionofthefairvalueofthenetidentifiableassetsintheinvesteewhentheinvestmentismade,thedifferencewillbeincludedinthecurrentprofitandloss.TheCompanyshall,inaccordancewithitsattributableshareofthenetprofitorlossandothercomprehensiveincomerealizedbytheinvestee,respectivelyrecognizetheinvestmentincomeandothercomprehensiveincomeandsimultaneouslyadjustthebookvalueofthelong-termequityinvestment.TheCompanyshall,inthelightoftheprofitsorcashdividendsthattheinvesteedeclarestodistribute,reducethebookvalueofthelong-termequityinvestmentcorrespondingly.Astoanychangeinowners'equityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,theCompanyshalladjustthebookvalueofthelong-termequityinvestmentandincludesuchchangeintotheowners'equity.Whenrecognizingtheattributableshareofnetprofitorlossoftheinvestee,theCompanyshall,basedonthefairvalueofidentifiablenetassetoftheinvesteewhenitobtainstheinvestment,recognizeitsattributableshareofthenetprofitorlossoftheinvesteeaftertheadjustmentaccordingtotheCompany'saccountingpolicyandaccountingperiod.Whenholdingtheinvestment,theinvesteeshouldpreparetheconsolidatedfinancialstatements,itshallaccountfortheinvestmentincomebasedonthenetprofit,othercomprehensiveincomeandthechangesinotherowner'sequityattributabletotheinvestee.TheCompanycalculatesitsattributableprofitorlossofinternaltransactionsthatarenotrealizedarisingamongitself,associatesandjointventuresbasedonitsattributablepercentageandoffsetit,anddeterminestheinvestmentincomeonthatbasis.UnrealizedinternaltransactionlossincurredbetweentheCompanyandtheinvesteeshallberecognizedinfullamountifsuchlossbelongstotheassetimpairment.Fortheassetinvestmentorsaletransactionswithassociatedenterprisesorjointventures,accordingtothenotesregardingto“3.5Accountingtreatmentmethodsforbusinesscombinationsunderandnotundercommoncontrol”and“3.6Preparationmethodsofconsolidatedfinancialstatements”whichshouldbecarriedoutinaccordancewiththerelevantpoliciesiftheassetformsapartoftheCompany'sbusiness.
WhentheCompanyconfirmsthatitshouldsharelossesoftheinvestee,treatmentshallbedoneinfollowingsequence:first,writingdownthebookvalueoflong-termequityinvestments.Secondly,ifthebookvalueofthelong-termequityinvestmentsisinsufficienttobeoffset,theCompanyshallcontinuetorecognizetheinvestmentlosstotheextentofthebookvalueoflong-terminterestswhichsubstantiallyformthenetinvestmentintheinvesteeandoffsetthebookvalueofthelong-termreceivableitemsandotheritems.Finally,afteralltheabovetreatments,iftheCompanyisstillresponsibleforanyadditionalliabilityinaccordancewiththeprovisionsstipulatedintheinvestmentcontractsoragreements,provisionsarerecognizedandincludedintocurrentinvestmentlossaccordingtotheobligationsestimatedtoundertake.Iftheinvesteeachievesprofitinsubsequentperiods,theCompanyshall,afterdeductinganyunrecognizedinvestmentlosses,reducebookvalueofestimatedliabilitiesrecognized,restorebookvaluesofotherlong-termequitywhichformnetinvestmentintheinvesteeinsubstance,andoflong-termequityinvestmentaccordingtothereversedsequencedescribedabove,andrecognizeinvestmentincomeatthesametime.
(3)Disposaloflong-termequityinvestments
Forthedisposaloflong-termequityinvestments,thedifferencebetweenthebookvalueandtheactualpricethereofshallbeincludedinthecurrentprofitorloss.Wherealong-termequityinvestmentisaccountedforundertheequitymethod,accountingtreatmentshouldbemadeonthepartwhichisoriginallyincludedinothercomprehensiveincomeaccordingtocorrespondingratiobyusingthesamebasisfortheinvesteetodirectlydisposeoftherelevantassetsorliabilitieswhentheinvestmentsaredisposedof.Owner'sequityrecognizedfromchangesinotherowner'sequityoftheinvesteeotherthannetprofitandloss,othercomprehensiveincomeandtheprofitdistributionshouldbeincludedinthecurrentprofitandlossaccordingtotheproportion.Incasethejointcontrolorsignificantinfluenceovertheinvesteeislostfordisposingpartofequityinvestmentsorotherreasons,theremainingequitywillbechangedtobeaccountedforaccordingtotherecognitionandmeasurementprinciplesoffinancialinstruments,whilethedifferencebetweenthefairvalueandthebookvalueonthedateofthelossofjointcontrolorsignificantinfluenceshouldbeincludedinthecurrentprofitorloss.Astoothercomprehensiveincomerecognizedbasedonmeasurementoftheoriginalequityinvestmentundertheequitymethod,accountingtreatmentshallbemadeonthesamebasisaswouldberequirediftheinvesteehaddirectlydisposedoftheassetsorliabilitiesrelatedtheretowhenmeasurementundertheequitymethodisterminated.Owner'sequityrecognizedfromtheinvestee'schangesinotherowner'sequityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionshouldalltransferredtothecurrentprofitandlosswhentheequitymethodisnolongeradopted.WheretheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentsorotherreasons,whenitpreparesseparatefinancialstatements,theremainingequityafterdisposalthatcanjointlycontrolorhavesignificantinfluenceontheinvesteewillbemeasuredattheequitymethod,andtheremainingequityshouldbedeemedtohavebeenadjustedatequitymethodonacquisition.
Iftheremainingequityafterdisposalcannotexercisejointcontrolorsignificantinfluenceovertheinvestee,suchremainingequityshallbesubjecttotheaccountingtreatmentaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedatewhencontrollossesisincludedincurrentprofitorloss.Wheretheequitydisposedofareacquiredthroughbusinesscombinationasaresultofadditionalinvestmentandotherreasons,iftheremainingequitiesafterdisposalarecalculatedunderthecostmethodorequitymethoduponpreparationofseparatefinancialstatements,othercomprehensiveincomeandotherowners'equitiesrecognizedinequityinvestmentsheldbeforetheacquisitiondateasaresultofemploymentofequitymethodforaccountingshallbecarriedforwardprorata;iftheremainingequitiesafterdisposalarecalculatedaccordingtotheprovisionsonRecognitionandMeasurementofFinancialInstruments,othercomprehensiveincomeandotherowners'equitieswillallbecarriedforward.
23.Investmentproperties
MeasurementmodeMeasuredbycostmethodDepreciationoramortizationmethodTheinvestmentpropertiesrefertothepropertiesheldforearningrentalsor/andcapitalappreciation,includingleasedlanduseright,landuserightheldfortransferuponappreciation,andleasedbuilding(includingself-builtbuildingsorbuildingsdevelopedforrentingorbuildingsunderconstructionordevelopmentforfuturerenting).TheCompanymeasurestheexistinginvestmentpropertiesbyusingthecostmodel.Forinvestmentpropertymeasuredbyusingthecostmodel,thebuildingsforleaseshallbedepreciatedbyusingpoliciesthesameasusedforfixedassetsoftheCompany,andthelanduserightsforleaseshallbeamortizedbyusingthesamepoliciesasapplicabletointangibleassets.
24.Fixedassets
(1)Recognitioncriteria
Fixedassetsrefertotangibleassetsheldforthepurposeofproducingcommodities,providingservices,rentingorbusinessmanagementwithusefullivesexceedingoneyear.Fixedassetsarerecognizedwhentheysimultaneouslymeetthefollowingconditions:
(1)ItisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintotheCompany;and
(2)Thecostsofthefixedassetscanbemeasuredreliably.
(2)Depreciationmethodoffixedassets
AssettypeDepreciationmethodYearfordepreciationResidualvaluerate
Yearlydepreciation
rateBuildingsandconstructions
Straight-linemethod20-405%4.75%-2.37%Machineryequipment
Straight-linemethod8-205%11.87%-4.75%Electronicentertainmentequipment
Straight-linemethod5-165%19%-5.93%Transportationequipment
Straight-linemethod7-125%13.57%-7.91%OtherequipmentStraight-linemethod85%11.87%
(3)Reorganizationbasis,valuationanddepreciationmethodforfinancialleaseassetsIfanyofthefollowingconditionsisstipulatedinthetermsoftheleaseagreementsignedbetweenthecompanyandthelessee,itshallberecognizedasthefinancingleasedassets:
1)Aftertheexpireoftheleaseterm,theownershipoftheleasedassetsshallbevestedinthecompany;
2)Thecompanyhasanoptiontopurchasetheasset,thepurchasepriceisfarlessthanthefairvalueoftheassetwhentheoptionisexercised;
3)Theleasingtermisthemajorityofthelifeoftheleasedasset;
4)Thepresentvalueoftheminimumleasepaymentonthebeginningoftheleasedoesnothavemanydifferencesfromthefairvalueoftheasset;Onthestartingdateofthelease,thecompanytakesthelowerbetweenthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentasthebookvalueoftheleasedasset,andtheminimumleasepaymentasthebookvalueofthelong-termpayable,andthedifferencebetweenthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentastheunrecognizedfinancingfee.
25.Constructioninprogress
Thebook-entryvaluesofthefixedassetsarestatedattotalexpendituresincurredbeforereachingworkingconditionfortheirintendeduse.Whereaconstructioninprogressreachestheworkingconditionforitsintendedusebutthefinalaccountforcompletionisnotmadeyet,itshallbetransferredintofixedassetsfromthedatewhenitreachestheworkingconditionforintendeduseattheestimatedvalueaccordingtotheprojectbudget,constructionpriceoractualcost,andthedepreciationofthesaidfixedassetsshallbeaccruedaccordingtotheCompany'sdepreciationpoliciesapplicabletofixedassets.Afterthefinalaccountforcompletedprojectisdone,theCompanyadjuststheoriginalestimatedvalueofthefixedassetinaccordancewiththeactualcost,butdoesnotadjusttheprovisionforsuchdepreciationthathadbeenaccrued.
26.Borrowingcosts
1.Recognitionprinciplesofcapitalizationofborrowingcosts
Borrowingcostsincludeinterestthereon,amortizationofdiscountsorpremiums,ancillaryexpensesandexchangedifferencesincurredonaccountofforeigncurrencyborrowings,etc.TheborrowingcostsincurredtotheCompanyanddirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalizationshouldbecapitalizedandrecordedintorelevantassetcosts;otherborrowingcostsshouldberecognizedascostsaccordingtotheamountincurredandbeincludedintocurrentprofitandloss.Assetsmeetingthecapitalizationrequirementsrefertofixedassets,investmentpropertiesandinventories,etc.thatneedtobepurchased,constructedorproducedforalongtimetobeavailableforintendeduseorsale.Borrowingcostsmaybecapitalizedonlywhenallthefollowingconditionsaremet:
(1)Assetdisbursements,whichincludethoseincurredbycashpayment,thetransferofnon-cashassetsortheundertakingofinterest-bearingdebtsforacquiringandconstructingorproducingassetseligibleforcapitalization,havealreadybeenincurred;
(2)Borrowingcostshavealreadybeenincurred;and
(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetsfortheirintendeduseorsalehavealreadybeenstarted.
2.Capitalizationperiodofborrowingcosts
Capitalizationperiodreferstotheperiodfromthebeginningofcapitalizationtotheceaseofcapitalization,excludingtheperiodofcapitalizationsuspensionofborrowingcosts.Capitalizationofborrowingcostsshouldceasewhentheacquiredandconstructedorproducedassetseligibleforcapitalizationhavereachedtheworkingconditionfortheirintendeduseorsale.Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchassetsshouldbeceased.Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchprojectsshouldbeceased.
3.Periodofcapitalizationsuspension
Iftheacquisition,constructionorproductionactivitiesofassetseligibleforcapitalizationareabnormallyinterruptedandsuchconditionlastsformorethanthreemonths,thecapitalizationofborrowingcostsshouldbesuspended;iftheinterruptionisnecessaryproceduresfortheacquired,constructedorproducedassetseligibleforcapitalizationtoreachtheworkingconditionsfortheirintendeduseorsale,theborrowingcostscontinuetobecapitalized.Borrowingcostsincurredduringtheinterruptionarerecognizedasthecurrentprofitorlossandcontinuetobecapitalizeduntiltheacquisition,constructionorproductionoftheassetsrestarts.
4.CalculationmethodofcapitalizationamountofborrowingcostsAsforspecialborrowingsforacquiring,constructingorproducingassetseligibleforcapitalization,borrowingcostsofspecialborrowingsactuallyincurredinthecurrentperiodlesstheinterestincomefromundrawnborrowingsdepositedinthebankorinvestmentincomefromtemporaryinvestmentshouldberecognizedasthecapitalizationamountofborrowingcosts.Asforgeneralborrowingsusedforacquiringandconstructingorproducingassetseligibleforcapitalization,theinterestofgeneralborrowingstobecapitalizedshouldbecalculatedbymultiplyingtheweightedaverageofassetdisbursementsofthepartofaccumulatedassetdisbursementsexceedingspecialborrowingsatendofeachmonthbythecapitalizationrateofusedgeneralborrowings.Thecapitalizationrateiscalculatedbyweightedaverageinterestrateofgeneralborrowings.
27.Biologicalassets
Nil
28.Oil-and-gasassets
Nil
29.Right-of-useassets
Nil
18.Intangibleassets
(1)Valuationmethod,usefullivesandimpairment
1)TheCompanyinitiallymeasuresintangibleassetsatcostonacquisition:
Thecostsofexternallypurchasedintangibleassetsincludepurchaseprices,relevanttaxesandsurchargesandotherdirectlyattributableexpendituresincurredtopreparetheassetsfortheirintendeduses.Ifthepaymentforanintangibleassetisdelayedbeyondthenormalcreditconditionsanditisofthefinancingnature,thecostoftheintangibleassetshallbedeterminedonthebasisofthepresentvalueofthepurchaseprice.Theintangibleassetsacquiredwhichthedebtorusestopaybackthedebtindebtrestructuringshouldberecognizedatthefairvalueoftheintangibleassets.Thedifferencebetweenthebookvalueofrestructureddebtsandthefairvalueofintangibleassetsusedtopaybackthedebtshouldbeincludedinthecurrentprofitorloss;Whentheexchangeofnon-monetaryassetsisofcommercialnatureandthefairvalueoftheassetsreceivedorsurrenderedassetscanbemeasuredreliably,themeasurementshallbebasedonthefairvalue.Ifthefairvalueoftheassetsreceivedorsurrenderedassetscanbemeasuredreliably,thefairvalueofthesurrenderedassetsand
relevanttaxesshouldbepaidastheinitialinvestmentcostoftheintangibleassetsreceived,unlessthereisconclusiveevidencethatthefairvalueoftheassetreceivedismorereliable.Iftheexchangeofnon-monetaryassetsdoesnothavecommercialsubstance,orthefairvalueoftheassetsreceivedorsurrenderedassetscannotbemeasuredreliably,thebookvalueofthesurrenderedassetsandrelatedtaxesshouldbepaidastheinitialinvestmentcostoftheintangibleassetsreceived.
2)Subsequentmeasurement
Theusefullivesoftheintangibleassetsareanalyzedanddeterminedonacquisition.Intangibleassetswithdefiniteusefullivesshallbeamortizedwiththestraight-linemethodwithintheperiodwhentheintangibleassetsgenerateeconomicbenefitsfortheCompany;ifthesaidperiodcannotbeforecast,theintangibleassetsshallbedeemedasthosewithindefiniteusefullivesandshallnotbeamortized.
3.EstimateoftheusefullifeoftheintangibleassetswithdefiniteusefullivesItemEstimatedusefullifeAmortizationmethodBasisLanduseright
50years
Straight-lineamortizationmethodUsefullifeprescribedintheCertificateofLandUseRight
(2)AccountingpolicyofinternalR&Dexpenditures
31.Long-termassetsimpairment
Forthelong-termequityinvestments,investmentproperties,fixedassets,constructioninprogress,intangibleassets,andotherlong-termassetsmeasuredatcostmodel,iftherearesignsofimpairment,animpairmenttestwillbeconductedonthebalancesheetdate.Iftheresultoftheimpairmenttestshowsthattherecoverableamountoftheassetislowerthanitsbookvalue,theprovisionforimpairmentshallbemadeandincludedinimpairmentloss.Therecoverableamountisdeterminedatthehigherofthenetofthefairvaluelessdisposalcostsandthepresentvalueoftheexpectedfuturecashflows.Provisionforassetsimpairmentismadeonindividualassetbasis.Ifitisdifficulttoestimatetherecoverableamountoftheindividualasset,theGroupshallestimatetherecoverableamountoftheassetgroupthattheindividualassetbelongsto.Theassetgroupistheminimumassetgroupthatcanindependentlygeneratethecashinflow.Goodwill,intangibleassetswithuncertainusefullifeandintangibleassetsthathavenotyetreachedtheusablestateshallbetestedforimpairmentatleastattheendofeachyear.TheCompanyconductsthegoodwillimpairmenttest,andthecarryingvalueofthegoodwillformedbytheenterprisemergershallbeallocatedtotherelevantassetgroupinareasonablewayfromthepurchasedate.Ifitisdifficulttoapportiontotherelevantassetgroup,apportiontotherelevantassetgroupportfolio.WhentheCompanyallocatesthebookvalueofgoodwill,itallocatesthegoodwillaccordingtotherelativebenefitsthattherelevantassetgrouporassetgroupportfoliocanobtainfromthesynergeticeffectoftheenterprisemerger,and
carriesoutthegoodwillimpairmenttestonthisbasis.Goodwillintherelevantassetgroupsorcombinationofgroupassetsimpairmenttests,suchastheassetgrouporcombinationofgroupassetsrelatedtogoodwilltherearesignsofimpairment,thefirstdoesnotincludethegoodwilloftheassetgrouporcombinationofgroupassetsimpairmenttest,calculationofrecoverableamount,andcomparedwiththerelatedbookvalue,confirmthecorrespondingimpairmentloss.Goodwilltotheassetgrouporcombinationofgroupassetsforimpairmenttest,comparethebookvalueoftherelevantassetgroupsorcombinationofgroupassets(includingthecontributionofthebookvalueofthegoodwill)withitsrecoverableamount,suchastherelevantassetgroupsorcombinationofgroupassetsrecoverableamountislowerthanitsbookvalue,confirmthegoodwillimpairmentloss.Theaboveassetimpairmentlossshallnotbereversedinsubsequentaccountingperiodsoncerecognized.
32.Long-termdeferredexpenses
Long-termdeferredexpensesrefertovariousexpenseswhichhavebeenalreadyincurredbutwillbeborneinthereportingperiodandinthefuturewithanamortizationperiodofoveroneyear.
1.Amortizationmethod
Long-termdeferredexpensesareamortizedevenlyoverthebeneficialperiod.
2.Amortizationyears
ItemAmortizationyearsHotelexteriordecoration4yearsFirestairsrenovation4yearsRenovationofguestroomsinBuildingC,DecorationandrenovationofBuildingA5yearsVillarenovation5yearsSwimmingpoolrenovation,Pavementmodificationprojects5yearsRoofwaterproofingprojects5years
33.Contractliabilities
Nil
34.Employeecompensation
(1)Accountingmethodforshort-termcompensation
DuringtheaccountingperiodwhenemployeesservetheCompany,theactualshort-termcompensationisrecognizedasliabilitiesandincludedincurrentprofitandlossorcostsassociatedwithassets.Theappropriateamountofemployeecompensationpayablewillbedeterminedduringtheaccountingperiod
whentheemployeesprovideservicesfortheCompanybasedonthemedicalinsurance,workinjuryinsuranceandmaternityinsuranceandothersocialinsuranceandhousingfundpaidbytheCompanyforemployees,aswellastradeunionfundsandemployeeeducationfundswithdrawnaccordingtoprovisionsattheaccrualbasisandaccrualratio.Theemployeebenefitsinthenon-monetaryformshallbemeasuredatfairvalue.
(2)Accountingmethodfordismissalwelfare
1)Definedcontributionplans
TheCompanyshallpaythebasicendowmentinsuranceandunemploymentinsurancefortheemployeesaccordingtotherelevantprovisionsofthelocalgovernment.DuringtheaccountingperiodwhentheemployeesprovideservicesfortheCompany,theamountofpaymentshallbecalculatedaccordingtothepaymentbaseandproportionstipulatedbythelocalgovernment,whichshallberecognizedasliabilitiesandrecordedintothecurrentprofitandlossorthecostofrelatedassets.Inadditiontothebasicendowmentinsurance,theCompanyhasalsoestablishedtheenterpriseannuitypaymentsystem(supplementaryendowmentinsurance)/enterpriseannuityplanaccordingtotherelevantpoliciesofthenationalenterpriseannuitysystem.TheCompanyshallpaythefeetothelocalsocialinsuranceinstitution/annuityplanaccordingtoacertainproportionoftheemployee'stotalsalary,andthecorrespondingexpensesshallbeincludedinthecurrentprofitandlossorrelatedassetcost.
2)Definedbenefitplans
Accordingtotheformuladeterminedbythelawofexpectedaccumulativewelfareunits,thecompanywillattributethewelfareobligationsgeneratedbytheestablishedbenefitplantotheperiodduringwhichtheemployeeprovidesservices,andrecordthemintothecurrentprofitandlossorthecostofrelatedassets.Thedeficitorsurplusresultingfromthepresentvalueofthedefinedbenefitplanobligationsminusthefairvalueofthedefinedbenefitplanassetsisrecognizedasthenetliabilityornetassetofadefinedbenefitplan.Ifthereisasurplusinthedefinedbenefitplan,thecompanyshallmeasurethenetassetsofthedefinedbenefitplanbythelowerofthesurplusandtheassetceiling.Alldefinedbenefitplanobligations,includingthoseexpectedtobepaidwithin12monthsoftheendoftheemployee'sannualreportingperiodfortheprovisionofservices,arediscountedbythemarketrateofreturnonTreasurybondsorhigh-qualitycorporatebondsintheactivemarketthatmatchesthedurationandcurrencyofthedefinedbenefitplanobligationsonthebalancesheetdate.Theservicecostsincurredbythedefinedbenefitplanandthenetinterestonthenetliabilitiesornetassetsofthe
definedbenefitplanarerecordedinthecurrentprofitsandlossesorthecostsofrelatedassets.Thechangescausedbythenetliabilitiesornetassetsofthedefinedbenefitplanshallbeaccountedforinothercomprehensiveincome,andshallnotbetransferredbacktotheprofitsandlossesinthesubsequentaccountingperiod.Upontheterminationoftheoriginaldefinedbenefitplan,allthepartspreviouslyaccountedforinothercomprehensiveincomeshallbecarriedforwardtotheundistributedprofitwithinthescopeofequity.Whenestablishingthesettlementofthebenefitplan,thedifferencebetweenthepresentvalueoftheobligationoftheestablishedbenefitplanandthesettlementpricedeterminedonthesettlementdateshallbeusedtoconfirmthesettlementgainsorlosses.
(3)Accountingmethodforpost-employmentbenefits
TheCompanypaysthebasicendowmentinsurancepremiumsandunemploymentinsuranceforemployeesaccordingtotherelevantprovisionsofthelocalgovernments.DuringtheaccountingperiodwhenemployeesservetheCompany,thepaidamountwhichiscalculatedbasedonthepaymentbaseandproportionasstipulatedintheprovisionsofthelocalplaceisrecognizedasliabilitiesandincludedinthecurrentprofitorlossorassets-relatedassetscost.
(4)Accountingmethodforotherlong-termemployeewelfare
35.Leaseliability
Nil
36.Estimatedliabilities
WhentheCompanyinvolvesinproceedings,debtguarantees,onerouscontractsandreorganizationevents,ifsucheventsmayrequiredeliveryofassetsorrenderingofservicesinthefutureandtheamountsofsucheventscanbereliablymeasured,sucheventsarerecognizedasestimatedliabilities.
(1)Recognitioncriteriaofestimatedliabilities
Whenanobligationrelatingtoacontingencymeetsallthefollowingconditionsatthesametime,itisrecognizedasanestimatedliability:
1)SuchobligationisapresentobligationoftheCompany;
2)TheperformanceofthisobligationmayveryprobablyleadtotheflowofeconomicinterestsoutoftheCompany;and
3)Theamountoftheobligationcanbemeasuredreliably.
(2)Measurementmethodofestimatedliabilities
EstimatedliabilitiesoftheCompanyareinitiallymeasuredasthebestestimateofexpensesrequiredfortheperformanceoftherelevantpresentobligations.
Whendeterminingthebestestimates,theCompanycomprehensivelyconsiderstherisks,uncertainties,timevalueofmoney,andotherfactorsrelatingtothecontingencies.Ifthetimevalueofmoneyissignificant,thebestestimateswillbedeterminedafterdiscountofrelevantfuturecashoutflows.Thebestestimatesshallbetreatedasfollowsindifferentcircumstances:
Ifthereiscontinuousrange(orinterval)forthenecessaryexpenses,andprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareequal,thebestestimateshouldbedeterminedattheaverageamountofupperandlowerlimitswithintherange.Ifthereisnocontinuousrange(orinterval)forthenecessaryexpenses,orprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareunequalalthoughsucharangeexists,incasethatthecontingencyinvolvesasingleitem,thebestestimateshallbedeterminedatthemostlikelyoutcome;ifthecontingencyinvolvestwoormoreitems,thebestestimatesshouldbedeterminedaccordingtoallthepossibleoutcomeswiththeirrelevantprobabilities.WhenallorpartoftheexpensesnecessaryforthesettlementofestimatedliabilitiesoftheCompanyareexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertaintobereceived.Thecompensationrecognizedshallnotexceedthebookvalueoftheestimatedliabilities.
37.Share-basedpayment
Nil
38.Otherfinancialinstrumentaspreferredstockandperpetualbondetc.Nil
39.Revenue
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
Accountingpoliciesusedforrevenuerecognitionandmeasurement
(1)Recognitionandmeasurementprinciplesforrevenuefromsaleofgoods
1)RevenuefromsalesofgoodsisrecognizedwhentheCompanyhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods.
2)TheCompanyretainsneithercontinuousmanagementrightsassociatedwithownershipofthegoodssoldnor
effectivecontroloverthegoodssold.
3)Therelevantamountofincomecanbemeasuredreliably.
4)ItishighlylikelythattheeconomicbenefitsassociatedwiththetransactionwillflowintotheCompany.
5)Andtherelevantamountofcostincurredortobeincurredcanbemeasuredreliably.
(2)RecognitioncriteriaofrevenuefromsaleofgoodsoftheCompanyandspecificjudgmentcriteriaofrecognitiontimeIntheprovisionofhotelhousingservicesatthesametime,theCompanyprovidesgoodstocustomersandwillpreparedailysaleslistafterconfirmingwiththeRoomsDepartmentandthehotelfrontdesk.Basedonthesaleslist,thefinancedepartmentconfirmsthatthemajorrisksandrewardsofownershipofthegoodshavebeentransferredtothecustomerandthenthesalesrevenueisrecognized.
(3)Recognitionandmeasurementprinciplesofrevenuefromrenderingofservice
1)Forthehotelrooms,catering(breakfast)andotherservicestobeprovidedbytheCompany,aftertheyareprovided,andtheCompanycheckswiththesalesdepartmentandthefrontcheck,theCompanywillpreparethedailysalesreportsandaccountsreceivablelisttothefinancedepartment,whichwillreviewthesame,afterwhich,therevenuewillberecognized.
2)Fortherevenuefromrestaurantsandvenuescontractedout,theywillberecognizedinaccordancewiththeperiodstipulatedinthecontractoragreementandthecollectiontiming.
(4)RecognitionofrevenuefromtransferringuserightofassetsWhentheeconomicbenefitsrelatingtothetransactionsispossibletoflowintotheCompanyandtheamountofrevenuecanbemeasuredreliably,revenuesshouldberecognized.Revenuesfromtransferofrighttouseassetsarerecognizedunderthefollowingcircumstances:
1)Interestincomeisdeterminedbasedonthetimewhenthemonetaryfundsarelentandtheeffectiverate.
2)Theamountofrevenuesfromusageisdeterminedbasedonthechargingtimeandmethodasagreedinrelevantcontractoragreement.
40.Governmentgrants
(1)Type
Governmentgrantsrefertothemonetaryornon-monetaryassetsobtainedbytheCompanyfromthegovernmentforfree.Governmentgrantsaredividedintoasset-relatedgovernmentgrantsandincome-relatedgovernmentgrants.Asset-relatedgovernmentgrantsrefertogovernmentgrantsobtainedbytheCompanyforforminglong-termassetsbyacquisition,constructionorothermanners.Income-relatedgovernmentgrantsrefertogovernmentgrantsexcludingtheasset-relatedgovernmentgrants.
(2)Recognitiontimeandmeasurement
Governmentgrantscanberecognizedwhensimultaneouslymeetingthefollowingconditions:
1)Theenterprisecanmeetconditionsattachedtogovernmentgrants;and
2)Theenterprisecanreceivegovernmentgrants.
Ifagovernmentgrantisamonetaryasset,itshallbemeasuredattheamountreceivedorreceivable.Governmentgrantsshallbemeasuredatreceivableswhenthereisstrongevidenceattheendoftheperiodthatsuchgrantscomplywiththerelevantconditionsprescribedbythefinancialsupportpoliciesandthefinancialsupportfundsareexpectedtobereceived.Otherfinancialgrantsshallbeconfirmedaccordingtotheamountofmoneyreceived.Ifgovernmentgrantsarenon-monetaryassets,theyshallbemeasuredatitsfairvalue;andifthefairvaluecannotbeobtainedinareliableway,theyshallbemeasuredatanominalamount.
(3)Accountingtreatment
Asset-relatedgovernmentgrantsshallbeusedtooffsetthebookvalueofrelevantassetsorrecognizedasdeferredincome.Ifasset-relatedgovernmentgrantsarerecognizedasdeferredincome,theyshallbeincludedinprofitorlossbystagesbyareasonableandsystematicmethodwithintheusefullivesofrelevantassets.(Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbeincludedintootherincomeinaccordancewiththebusinessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.)Forgovernmentgrantsassociatedwithincomethatareusedtorecoverrelevantcostsorlossesoftheenterpriseinsubsequentperiodarerecognizedasdeferredincomeandincludedinthecurrentprofitorlosswhenrelevantcostsorlossesarerecognized.(Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbeincludedintootherincomeinaccordancewiththebusinessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.)Ifgovernmentgrantsrelatedtoincomeareusedtocompensatetherelevantcostsandlossesthathaveoccurred,suchgovernmentgrantsshouldbedirectlyincludedinthecurrentprofitorloss.(Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbeincludedintootherincomeinaccordancewiththebusinessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.)ThediscountinterestofpreferentialpolicyloansobtainedbytheCompanyshallbedividedintothefollowingtwocasesforaccountingtreatment:
1)Ifthefinancedepartmentallocatesthediscountinterestfundtothelendingbank,andthelendingbankprovidestheloantotheCompanyatthepreferentialpolicyinterestrate,theCompanyshalltaketheactualamountoftheloanreceivedasthebookvalueoftheloan,andcalculatetherelevantborrowingcostsaccordingtotheloanprincipalandthepreferentialpolicyinterestrate.
2)IfthefinancedepartmentdirectlyallocatesthediscountinterestfundstotheCompany,theCompanyshalldeductthecorrespondingdiscountinterestfromtherelevantborrowingcosts.
41.Deferredtaxassetsanddeferredtaxliabilities
Deferredtaxassetsarerecognizedfordeductibletemporarydifferencestotheextentthatitshallnotexceedthetaxableincomeprobablyobtainedinfutureperiodthatcanbeusedfordeductingthedeductibletemporarydifferences.Taxabletemporarydifferencesarerecognizedasdeferredtaxliabilitiesinadditiontospecialcircumstances.Specialcircumstancesinwhichdeferredincometaxassetsordeferredincometaxliabilitiesshallnotberecognizedinclude:theinitialrecognitionofgoodwill;othertransactionsormattersexcludingbusinesscombinations,whichaffectneitheraccountingprofitsnorthetaxableincome(ordeductiblelosses)whenoccurred.WhentheCompanyhasthestatutoryrighttodosettlementwiththenetamounts,andhastheintentiontodosoortherecoveryofassetsandthesettlementofliabilitiesareachievedsimultaneously,theCompanyshallpresentitscurrentincometaxassetsandcurrentincometaxliabilitiesatthenetamountsastheresultofoneoffsettinganother.WhentheCompanyhasthelegalrightstobalanceincometaxassetsandincometaxliabilitiesforthecurrentperiodwithnetsettlement,anddeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxwhichareimposedonthesametaxpayingsubjectbythesametaxcollectionauthorityorondifferenttaxpayingsubjects,but,ineachimportantfutureperiodinconnectionwiththereverseofdeferredincometaxassetsandliabilities,theinvolvedtaxpayingsubjectintendstobalanceincometaxassetsandliabilitiesforthecurrentperiodwithnetsettlementatthetimeofobtainingassetsanddischargingliabilities,deferredincometaxassetsanddeferredincometaxliabilitiesshallbepresentedbasedonthenetamountafteroffset.
42.Lease
(1)Accountingtreatmentofoperatinglease
1)TherentalfeespaidfortheassetleasedbytheCompanywillbeamortizedovertheentireleasetermwithoutdeductingrent-freeperiodaccordingtothestraight-linemethodandincludedintheexpensesforthecurrentperiod.TheinitialdirectcostsrelatedtotheleasetransactionspaidbytheCompanyareincludedinthecurrentexpenses.WhenassetslessorbearscostsrelatedtotheleasebornebytheCompany,theCompanyshalldeductthepartofexpensesfromthetotalrentsandamortizetherentsafterdeductionovertheleasetermandincludethemincurrentexpenses.
2)LeasefeesreceivedbytheCompanyfromleasingassetsshallbeamortizedatstraight-linemethodoverthewholeleaseperiodincludingrent-freeperiod,andshallberecognizedasleaseincome.InitialdirectcostsrelatingtoleasetransactionsincurredbytheCompanyshallberecognizedasthecurrentexpenses;iftheamountsare
significant,theyshallbecapitalizedandincludedinthecurrentincomeonthesamebasisastherecognitionofleaseincome.WhentheCompanybearscostsrelatedtotheleasebornebytheleasee,theCompanyshalldeductthepartofexpensesfromthetotalrentsandamortizetherentsafterdeductionovertheleaseterm.
(2)Accountingtreatmentoffinancelease
1)Financialleasedassets:onthestartdateofleasing,theCompanytakesthelowerofthefairvalueoftheleasedassetsandthepresentvalueoftheminimumleasepaymentasthebookvalueoftheleasedassets,takestheminimumleasepaymentasthebookvalueofthelong-termpayable,andthedifferenceastheunrecognizedfinancingexpenses.TheCompanyadoptstheeffectiveinterestratemethodtoamortizetheunrecognizedfinancingexpensesduringtheleaseperiodandrecordthemintofinancialexpenses.TheinitialdirectexpensesincurredbytheCompanyshallbeincludedinthevalueoftheleasedassets.
2)Financialleasingassets:theCompanyshall,atthebeginningofthelease,recognizethedifferencebetweenthesumofthereceivablefinancialleasingpayments,theunsecuredresidualvalueanditspresentvalueasunrealizedfinancingincome,whichshallberecognizedasleaseincomewithintheperiodofreceivingtherentinthefuture.Theinitialdirectexpensesincurredbythecompanyinconnectionwiththeleasetransactionshallbeincludedintheinitialmeasurementofthefinanceleasereceivableandshallreducetheamountofincomerecognizedduringtheleaseterm.
43.OthersignificantaccountingpoliciesandaccountingestimatesTerminationofbusinessTerminationofbusinessisaseparatelyidentifiablecomponentthatmeetsoneofthefollowingconditionsandhasbeendisposedofbytheCompanyorplacedbytheCompanyasaholdingforsale:
(1)Thecomponentrepresentsaseparateprincipalbusinessoraseparateprincipalareaofbusiness.
(2)Thecomponentispartofarelatedplantodisposeofaseparateprincipalbusinessoraseparateprincipalareaofbusiness.
(3)Thecomponentisasubsidiaryacquiredexclusivelyforresale.
44.Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Changesinaccountingpolicies
√Applicable□Notapplicable
Contentofandreasonforchangesin
accountingpolicies
Proceduresforexaminationandapproval
Note
Inthebalancesheet,"notesreceivableandaccountsreceivable"aredividedinto"notesreceivable"and"accountsreceivable"."Notespayableandaccountspayable"isdividedinto"notespayable"and"accountspayable".Thecomparisondataareadjustedaccordingly.
ResolutionoftheBoardofDirectors
TheMinistryofFinancepromulgatedtheCircularoftheMinistryofFinanceonRevisingandIssuingthe2019VersionsofGeneralCorporateFinancialStatementTemplates(CaiKuai[2019]No.6)onApril30,2019,andRevisingandIssuingthe2019VersionofConsolidatedFinancialStatementsFormat(CaiKuai[2019]No.16)onSeptember19,2019,torevisethegeneralcorporatefinancialstatementtemplates.
Provisionforexpectedcreditlossesismadefor"financialassetsmeasuredatamortizedcost"and"financialassets(debtinstruments)measuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome".
BoardofDirectors
In2017,theMinistryofFinancerevisedTheAccountingStandardsforBusinessEnterprisesNo.22--RecognitionandMeasurementofFinancialInstruments,theAccountingStandardsforBusinessEnterprisesNo.23--TransferofFinancialAssets,TheAccountingStandardsforBusinessEnterprisesNo.24--HedgeAccounting,andTheAccountingStandardsforBusinessEnterprisesNo.37--PresentationofFinancialInstruments.Therevisedstandardsstipulatethatforfinancialinstrumentswhoserecognitionhasnotbeenterminatedonthefirstimplementationdate,ifthepreviousrecognitionandmeasurementareinconsistentwiththerequirementsoftherevisedstandards,adjustmentsshallbemaderetroactively.Ifthedatainthepreviousfinancialstatementsarenotconsistentwiththerevisedstandards,noadjustmentisrequired.TheCompanywilladjustretainedearningsandothercomprehensiveearningsforthecumulativeimpactofretroactiveadjustmentsatthebeginningoftheyear.
ImplementationofAccountingStandardforBusinessEnterprisesNo.7-ExchangeofNon-MonetaryAssets(revisedin2019)
BoardofDirectors
TheMinistryofFinanceissuedonMay9,2019bytheAccountingStandardsforEnterprisesNo.7-ExchangeofNon-MonetaryAssets(2019revision)(CaiKuai[2019]No.8),therevisedrulesshallenterintoforceasofJune10,2019,andtheexchangeofnon-monetaryoccurbetweenJanuary1,2019andtheeffectivedate,adjustmentsshouldbebasedonthesecriteria.Theexchangeofnon-monetaryassetspriorto1January2019doesnotrequireretroactiveadjustmentinaccordancewiththeprovisionsoftheseguidelines.TheCompany'simplementationoftheaboveguidelineshasnomaterialimpactduringthereportingperiod.
ImplementationofAccountingStandardforBusinessEnterprisesNo.12-DebtRestructuring(revisedin2019)
BoardofDirectors
TheMinistryofFinancepromulgatedtheAccountingStandardsforBusinessEnterprisesNo.12-DebtRestructuring(2019revision)(CaiKuai[2019]No.9)onMay16,2019.TherevisedstandardswillbeeffectivefromJune17,2019.Fordebtrestructuringsthatoccurbefore1January2019,thereisnoneedtomakeretroactiveadjustmentsinaccordancewiththeprovisionsofthecode.TheCompany'simplementationoftheaboveguidelineshasnomaterialimpactduringthereportingperiod.
(2)Changesinaccountingestimates
□Applicable√Notapplicable
(3)Adjustmentonrelevantitemsoffinancialstatementatbeggingoftheyearwhenimplementedthenewfinancialinstrumentsstandards,newrevenuestandardsornewleasingstandardssince2019
√Applicable□Notapplicable
ConsolidatedBalanceSheet
InRMB/CNY
Item
December31,
2018
January1,2019
adjustmentCurrentassets:
Monetaryfunds15,364,355.3015,364,355.300.00BalanceswithclearingcompaniesLoanstootherbanksandfinancialinstitutionsTradingfinancialassetsFinancialassetsmeasuredatfairvaluethroughthecurrentprofitorlossDerivativefinancialassetsNotesreceivableAccountsreceivable426,434.87388,694.02-37,740.85ReceivablesfinancingAdvancestosuppliersPremiumreceivableReinsuranceaccountsreceivableReinsurancecontractreservesreceivableOtherreceivables458,242.73437,169.79-21,072.94Including:Interestreceivable
DividendreceivableFinancialassetspurchasedunderresaleagreementsInventories221,390.19221,390.190.00ContractualassetsAssetsheldforsale
Item
December31,2018
January1,2019
adjustmentNon-currentassetsmaturingwithinoneyearOthercurrentassets1,846,219.791,846,219.790.00Totalcurrentassets18,316,642.8818,257,829.09-58,813.79Non-currentassets:
DisbursementofadvancesandloansLendinginvestmentsAvailable-for-salefinancialassetsOtherlendinginvestmentsHeld-to-maturityinvestmentsLong-termreceivablesLong-termequityinvestmentsOtherequityinstrumentsinvestmentsOthernon-currentfinancialassetsInvestmentproperties8,384,480.438,384,480.43
0.00
Fixedassets36,497,869.6536,497,869.65
0.00
ConstructioninprogressProductivebiologicalassetsOilandgasassetsIntangibleassets22,205,249.0422,205,249.040.00DevelopmentexpendituresGoodwillLong-termdeferredexpenses2,792,876.072,792,876.070.00DeferredincometaxassetsOthernon-currentassetsTotalnon-currentassets69,880,475.1969,880,475.190.00Totalassets88,197,118.0788,138,304.28-58,813.79Currentliabilities:
Item
December31,
2018
January1,2019
adjustmentShort-termborrowingsBorrowingsfromcentralbankDepositfundsTradingfinancialliabilitiesFinancialliabilitiesmeasuredatfairvaluethroughthecurrentprofitorlossDerivativefinancialliabilitiesNotespayableAccountspayable1,607,835.811,607,835.81
0.00
Advancesfromcustomers1,291,293.051,291,293.05
0.00
ContractualliabilityFundsfromsalesoffinancialassetsunderrepurchaseagreementAbsorptionofdepositsandinterbankdepositsReceivingfromvicariouslytradedsecuritiesReceivingfromvicariouslysoldsecuritiesEmployeecompensationpayable2,841,262.352,841,262.35
0.00
Taxesandsurchargespayable450,861.87450,861.87
0.00
Otherpayable2,727,483.662,727,483.66
0.00
Including:Interestpayable
DividendpayableHandlingchargesandcommissionspayableReinsuranceaccountspayableLiabilitiesclassifiedasheldforsale
| Non-current | liabilities | maturing | within |
Item
December31,
2018
January1,2019
adjustmentoneyearOthercurrentliabilitiesTotalcurrentliabilities8,918,736.748,918,736.740.00Non-currentliabilities:
ReservesforinsurancecontractsLong-termborrowingsBondspayableIncluding:preferredstockPerpetualbondsLeaseliabilityLong-termpayableLong-termemployeecompensationpayableEstimatedliabilities1,489,685.041,489,685.040.00DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.04Totalliabilities
10,408,421.781,489,685.040.00Owners'equity:
Sharecapital364,100,000.00364,100,000.000.00OtherequityinstrumentsIncluding:preferredstockPerpetualbondsCapitalreserves54,142,850.0154,142,850.010.00Less:treasurystockOthercomprehensiveincome
Item
December31,2018
January1,2019
adjustmentSpecialreservesSurplusreservesGeneralriskreservesUndistributedprofit
-340,454,153.72-340,512,967.510.00Totalequityattributabletoownersoftheparentcompany
77,788,696.2977,788,696.290.00MinorityequityTotalowners'equity
77,788,696.2977,788,696.29Totalliabilitiesandowners'equity
88,197,118.0788,197,118.070.00
Explanationonadjustment:nil
TheParentCompany’sBalanceSheet
InRMB/CNYItem
December31,2018
January1,2019
AdjustmentCurrentassets:
Monetaryfunds14,864,055.7314,864,055.73TradingfinancialassetsFinancialassetsmeasuredatfairvaluethroughthecurrentprofitorlossDerivativefinancialassetsNotesreceivableAccountsreceivable426,434.87388,694.02-37,740.85ReceivablesfinancingAdvancestosuppliersOtherreceivables458,242.73437,169.79-21,072.94Including:Interestreceivable
Dividendreceivable
Item
December31,
2018
January1,
2019
AdjustmentInventories221,390.19221,390.19AssetsheldforsaleNon-currentassetsmaturingwithinoneyearOthercurrentassets1,846,219.791,846,219.79Totalcurrentassets17,816,343.3117,757,529.52-58,813.79Non-currentassets:
LendinginvestmentsAvailable-for-salefinancialassetsOtherlendinginvestmentsHeld-to-maturityinvestmentsLong-termreceivablesLong-termequityinvestments1,000,000.001,000,000.00OtherequityinstrumentsinvestmentOthernon-currentfinancialassetsInvestmentproperties8,384,480.438,384,480.43Fixedassets36,497,869.6536,497,869.65ConstructioninprogressProductivebiologicalassetsOilandgasassetsIntangibleassets22,205,249.0422,205,249.04DevelopmentexpendituresGoodwillLong-termdeferredexpenses2,792,876.072,792,876.07DeferredincometaxassetsOthernon-currentassetsTotalnon-currentassets70,880,475.1970,880,475.19Totalassets88,696,818.5088,638,004.71-58,813.79
Item
December31,2018
January1,2019
AdjustmentCurrentliabilities:
Short-termborrowingsTradingfinancialliabilitiesFinancialliabilitiesmeasuredatfairvaluethroughthecurrentprofitorlossDerivativefinancialliabilitiesNotespayableAccountspayable1,607,835.811,607,835.81Advancesfromcustomers1,291,293.051,291,293.05ContractualliabilityEmployeecompensationpayable2,841,262.352,841,262.35Taxesandsurchargespayable450,861.87450,861.87Otherpayable3,226,952.363,226,952.36Including:Interestpayable
DividendpayableLiabilitiesclassifiedasheldforsaleNon-currentliabilitiesmaturingwithinoneyearOthercurrentliabilitiesTotalcurrentliabilities9,418,205.449,418,205.44Non-currentliabilities:
Long-termborrowingsBondspayableIncluding:preferredstockPerpetualbondsLeaseliabilityLong-termpayableLong-termemployeecompensationpayable
Item
December31,
2018
January1,2019
AdjustmentEstimatedliabilities1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.041,489,685.04Totalliabilities10,907,890.4810,907,890.48Owners'equity:
Sharecapital364,100,000.00364,100,000.00OtherequityinstrumentsIncluding:preferredstockPerpetualbondsCapitalreserves54,142,850.0154,142,850.01Less:treasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesUndistributedprofit
-340,453,921.99-340,453,921.99Totalowners'equity
77,788,928.0277,788,928.02Totalliabilitiesandowners'equity
88,696,818.5088,696,818.50Explanationonadjustment:nil
(4)Explanationoftheretrospectiveadjustmentoncomparativedatainthepriorperiodwhileimplementednewfinancialinstrumentsstandardsornewleasingstandardsforthefirsttimesince2019
□Applicable√Notapplicable
45.Other
VI.Taxation
1.MajortaxtypesandtaxratesapplicabletotheCompany
TaxesBasisfortaxassessmentTaxrateValueaddedtax(VAT)
| Output | VAT | is | calculated | based | on | taxable | sales | revenue | and | service |
5%,6%,10%,9%,
TaxesBasisfortaxassessmentTaxrate
revenuecalculatedinaccordancewithtaxlawsandVATpayableortaxablesalesrevenueshallbethedifferenceafterdeductingtheinputVATdeductibleinthesameperiod
16%,13%
Urbanmaintenanceandconstructiontax
LeviedbasedonVATpayable7%EnterpriseincometaxLeviedbasedonthetaxableincome25%,20%EducationsurtaxLeviedbasedonVATpayable3%LocaleducationsurtaxLeviedbasedonVATpayable2%Housingpropertytax
Remainingvalueafterdeducting30%fromtheoriginalvalueofthe
house(includingtheoccupiedlandprice),andrentrevenue
1.2%,12%
LandusetaxLandareaRMB18/m
Disclosereasonsfordifferenttaxpayingbody:Nil
2.Taxpreference
3.Other
VII.Notestothemainitemsofthefinancialstatements
1.Monetaryfunds
InRMB/CNYItem
EndingbalanceBeginningbalanceCashonhand302,077.12347,782.65Bankdeposits7,120,862.7715,016,572.65Total7,422,939.8915,364,355.30Otherexplanation:nilRemark:therearenoamountsrestrictedforuseduetomortgageorfreeze,depositedinoverseasinstitutions,andhavingpotentialriskinrecovery.
2.Tradingsecurities:nil
3.Derivativefinancialassets:nil
4.Notereceivable:nil
5.Accountsreceivable
(1)Disclosureofaccountreceivablesbycategory
InRMB/CNY
Category
EndingbalanceBeginningbalanceBookbalance
Provisionforbad
debt
Bookvalue
Bookbalance
Provisionforbaddebt
BookvalueAmoun
tProportion
AmountProvisionratio
Amoun
tProportion
Amount
ProvisionratioIncluding:
Accountsreceivablewithprovisionforbaddebtsbasedonportfolios
420,84
9.75
100.00
%109,76
5.83
26.08
%311,08
3.92
500,51
0.47
100.00
%464,17
5.72
92.74%
388,694.
Including:
Total
420,84
9.75
100.00
%109,76
5.83
26.08
%311,08
3.92
500,51
0.47
100.00
%464,17
5.72
92.74%
388,694.
2019
Provisionforbaddebtsbasedonsingleitem:nilProvisionforbaddebtbasedonportfolios:
InRMB/CNYItem
EndingbalanceBookbalanceProvisionforbaddebtProvisionratioWithin1year327,780.9516,697.035.09%1-2years2,259.002,259.00100.00%2-3years566.00566.00100.00%3-4years785.00785.00100.00%4-5years18,633.0018,633.00100.00%Over5years70,825.8070,825.80100.00%Total420,849.75109,765.83--Adescriptionofthebasisfordeterminingtheportfolio:nilProvisionforbaddebtbyportfolio:nilIfthebaddebtprovisionofanaccountreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
□Applicable√Notapplicable
Releasedbyaccountage
InRMB/CNYAccountageBookbalanceWithin1year(inclusive)327,780.951-2years2,259.002-3years566.00Over3years90,243.803-4years785.004-5years18,633.00
Over5years70,825.80Total420,849.75
(2)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiodProvisionforbaddebtintheperiod
InRMB/CNY
2019
CategoryBeginningbalance
Amountchangedintheperiod
EndingbalanceAccrual
Reversalorswitch-back
ChargeoffAccountreceivable
111,816.45-2,050.62109,765.83Total111,816.45-2,050.62109,765.83Includingthemajoramountthatreversalorswitch-backintheperiod:nil
(3)Accountreceivableactuallychargeoffintheperiod:nil
(4)Topfiveaccountsreceivableintermsofendingbalancecollectedbythedebtor
InRMB/CNYNameofentity
Endingbalanceofaccountreceivable
Proportioninthetotalaccountsreceivableat
period-end
Endingbalanceofthe
baddebtprovisionTianjinWatermelonTourismLimitedLiabilityCompany
70,016.4216.64%3,566.61ShanghaiHechengInternationalTravelServiceCo.,Ltd.
69,853.3116.60%3,558.30BeijingTongchengHuadingInternationalTravelServiceCo.,Ltd.SuzhouBranch
64,033.5015.22%3,261.84ANEXTOUR52,843.6812.56%2,691.84YEEPAY48,696.0411.57%2,480.56Total305,442.9572.59%
(5)Accountreceivablethatareterminatedduetofinancialassetstransfer:nil
(6)Assetsandliabilitiesresultedbyaccountreceivabletransferandcontinuesinvolvement:nil
6.Receivablefinancing:nil
Variationandfairvaluechangesonreceivablefinancingintheperiod:
□Applicable√Notapplicable
Iftheprovisionforimpairmentofreceivablefinancingiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofimpairmentprovision:
□Applicable√Notapplicable
Otherdescription:
2019
7.Advancepayment:nil
8.Otherreceivable
InRMB/CNYItemEndingbalanceBeginningbalanceOtherreceivable571,744.52437,169.79Total571,744.52437,169.79
(1)Interestreceivable:Nil
(2)Dividendreceivable:Nil
(3)Otheraccountreceivables
1)Otheraccountreceivabledisclosedbynature
InRMB/CNYNatureEndingbookbalanceOpeningbookbalanceUtilitybills76,534.42185,368.69Pettycash394,313.63133,411.23Attorneyfee77,534.25Socialinsuranceandhousingprovidentfunds
61,826.2963,264.56Deposit600.00600.00Litigationfee68,562.00Total601,836.34460,178.73
2)Provisionforbaddebt:
InRMB/CNYProvisionforbaddebt
FirststageSecondstageThirdstage
TotalExpectedcreditloss
innext12months
Expectedcreditlossforthewholeduration(no
creditimpairment)
Expectedcreditlossforthe
wholeduration(creditimpairmenthasoccurred)Balanceasat1Jan.201923,008.9423,008.94BalanceasatJanuary1.2019incurrentperiod
————————Provisionincurrentperiod7,082.887,082.88
2019
Balanceasat31Dec.201930,091.8230,091.82Changeofthebookbalanceformajoramountchangedinlossprovision
√Applicable□Notapplicable
Bookbalance
FirststageSecondstageThirdstage
TotalExpectedcreditlossinnext12months
Expectedcreditlossforthewholeduration(nocreditimpairment)
Expectedcreditlossforthewholeduration(creditimpairmenthasoccurred)Balanceatperiod-begin460,178.73460,178.73Balanceatperiod-beginincurrentperiod
460,178.73460,178.73--Transferinsecondstage--Transferinthirdstage--Reversetosecondstage
--ReversetofirststageIncreaseincurrentperiod5,012,978.405,012,978.40Directlywritedownincurrentperiod
4,871,320.794,871,320.79Derecognitionincurrent
periodOtherchangesEndingbalance601,836.34601,836.34Releasedbyaccountage
InRMB/CNYAccountageBookbalanceWithin1year(inclusive)599,600.34Over3years2,236.00Over5years2,236.00Total601,836.34
3)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiod
Provisionforbaddebtintheperiod
InRMB/CNYCategory
Beginningbalance
Amountchangedintheperiod
EndingbalanceAccrual
Reversalorswitch-back
Write-offOtherreceivables
23,008.947,082.8830,091.82
2019
Total
23,008.947,082.8830,091.82Includingmajoramountreversalorswitch-backintheperiod:nil
4)Otherreceivablesactuallychargeoffintheperiod:nil
5)Topfiveotheraccountsreceivableintermsofendingbalancecollectedbythedebtor
InRMB/CNYNameofentityNatureEndingbalanceAccountage
Proportionintotalamountofotheraccountsreceivableat
period-end
EndingbalanceofthebaddebtprovisionChenShaoxuePettycash98,500.0016.37%4,925.00GuoYuboPettycash94,366.5215.68%4,718.33ChenGangPettycash78,996.7013.13%3,949.84Sanyasuburbanpeople'scourt
Litigationfee68,562.0011.39%3,428.10Brightmoonpavilionmusicrestaurant
Utilitybills67,134.8411.15%3,356.74Total--407,560.06--67.72%20,378.01
6)Accountreceivablesrelatedtogovernmentsubsidies:nil
7)Otherreceivableforterminationofconfirmationduetothetransferoffinancialassets:nil
8)Theamountofassetsandliabilitiesthataretransferredotherreceivableandcontinuedtobeinvolved:nil
9.Inventories
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
(1)Classificationofinventories
InRMB/CNYItemEndingbalanceBeginningbalance
2019
Bookbalance
Provisionfor
inventorydepreciationor
provisionforimpairmentof
contractperformancecosts
BookvalueBookbalance
Provisionforinventorydepreciationorprovisionforimpairmentof
contractperformance
costs
Bookvalue
Rawmaterials843,199.89615,322.99227,876.90870,043.52725,731.58144,311.94Commoditystocks
22,771.3811,102.4111,668.9722,771.3811,102.4111,668.97Foodanddrinks
43,935.1043,935.10Fuel14,711.3214,711.3221,474.1821,474.18Total880,682.59626,425.40254,257.19958,224.18736,833.99221,390.19
(2)Provisionforinventorydepreciationorprovisionforimpairmentofcontractperformancecosts
InRMB/CNYItem
Beginningbalance
CurrentincreaseCurrentdecrease
EndingbalanceAccrualOther
Reversalor
write-off
OtherRawmaterials725,731.58110,408.59615,322.99Commoditystocks
11,102.4111,102.41Total736,833.99110,408.59626,425.40
2019
(3)Explanationoncapitalizationofborrowingcostsatendingbalanceofinventory:nil
(4)Explanationonamortizedamountofcontractperformancecostincurrentperiod:nil
10.Contractassets:nil
11.Assetsheldforsale:nil
12.Non-currentassetsmaturingwithinoneyear:nil
13.Othercurrentassets
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
InRMB/CNYItemEndingbalanceBeginningbalancePrepaidenterpriseincometax
1,702,702.801,702,702.80Prepaidindividualincometax
4,778.06Inputtaxtobededucted
808,143.62103,556.98Prepaidfornewspaper,insurance,etc.
56,413.9839,960.01Others
2,404.11Total2,574,442.571,846,219.79Otherdescription:nil
14.Creditorsinvestment:nil
15.Othercreditorsinvestment:nil
16.Long-termaccountreceivable:nil
17.Long-termequityinvestment:nil
18.Investmentinotherequityinstrument:nil
19.Othernon-currentfinancialassets:nil
20.Investmentproperties
(1)Investmentpropertiesmeasuredatcost
InRMB/CNY
2019
Item
Buildingsandconstructions
Landuserights
Constructionin
process
TotalI.Originalbookvalue
1.Beginningbalance18,856,504.445,662,740.5924,519,245.03
2.Currentincrease
(1)Purchase
(2)Transferfrominventories/fixed
assets/constructioninprogress
(3)Increasefrombusinesscombinations
3.Currentdecrease
(1)Disposal
(2)Othertransfer-out
4.Endingbalance18,856,504.445,662,740.5924,519,245.03II.Accumulateddepreciationandaccumulatedamortization
1.Beginningbalance10,607,583.542,219,726.4512,827,309.99
2.Currentincrease418,183.5656,340.00474,523.56
(1)Provisionoramortization418,183.5656,340.00474,523.56
3.Currentdecrease
(1)Disposal
(2)Othertransfer-out
4.Endingbalance11,025,767.102,276,066.4513,301,833.55III.Provisionforimpairment
1.Beginningbalance1,404,400.471,903,054.143,307,454.61
2.Currentincrease
(1)Provision
3.Currentdecrease
(1)Disposal
(2)Othertransfer-out
4.Endingbalance1,404,400.471,903,054.143,307,454.61IV.Bookvalue
1.Endingbookvalue6,426,336.871,483,620.007,909,956.87
2.Openingbookvalue6,844,520.431,539,960.008,384,480.43
2019
(2)Investmentrealestatemeasuredbyfairvalue
□Applicable√Notapplicable
(3)Investmentrealestatewithoutpropertycertificationheld:nil
21.Fixedassets
InRMB/CNYItemEndingbalanceBeginningbalanceFixedassets
35,075,195.9836,497,869.65Disposaloffixedassets
0.000.00Total35,075,195.9836,497,869.65
(1)Fixedassets
InRMB/CNYItemMachineryequipmentTotalI.Originalbookvalue
1.Beginningbalance11,033,550.54154,759,107.50
2.Currentincrease1,664,849.56
(1)Purchase1,664,849.56
(2)Transferfromconstructioninprogress
(3)Increasefrombusinesscombinations
3.Currentdecrease1,420,474.002,499,240.22
(1)Disposalorwrite-off1,420,474.002,499,240.22
4.Endingbalance9,613,076.54153,924,716.84II.Accumulatedamortization
1.Beginningbalance7,970,060.8885,220,072.49
2.Currentincrease287,287.363,022,328.03
(1)Provision287,287.363,022,328.03
3.Currentdecrease1,008,698.302,030,821.62
(1)Disposalorwrite-off1,008,698.302,030,821.62
2019
4.Endingbalance7,248,649.9486,211,578.90III.Provisionforimpairment
1.Beginningbalance1,968,377.1933,041,165.36
2.Currentincrease
(1)Provision
3.Currentdecrease403,223.40403,223.40
(1)Disposalorwrite-off403,223.40403,223.40
4.Endingbalance1,565,153.7932,637,941.96IV.Bookvalue
1.Endingbookvalue799,272.8135,075,195.98
2.Openingbookvalue1,095,112.4736,497,869.65
(2)Temporarilyidlefixedassets:nil
(3)Fixedassetsacquiredbyfinancinglease:nil
(4)Fixedassetsacquiredbyoperatinglease:nil
(5)Certificateoftitleun-completed:nil
(6)Disposaloffixedassets:nil
22.Constructioninprocess
InRMB/CNYItemEndingbalanceBeginningbalanceConstructioninprocess488,522.10Total488,522.10
(1)Constructioninprocess
InRMB/CNYItem
EndingbalanceBeginningbalanceBookbalanceProvisionBookvalue
Bookbalance
ProvisionBookvalue
2019
Staffdormitoryrenovationproject
348,873.78348,873.78Centralair-conditioningsystemandhotwatersystemcomprehensiverenovation
139,648.32139,648.32
Total488,522.10488,522.10(2)Changeofimportantprojectsunderconstructionintheyearof2019
InRMB/CNY
ProjectnameBudget
BeginningbalanceCurrentincrease
Amounttransferredintofixedassetsin2019
Otheramountreductionin2019
Endingbalance
Proportio
nofaccumul
ativeprojectinvestmentsinthe
budget
Projectprogress
Accumul
atedcapitaliz
ationamount
ofinterest
Includin
g:
capitaliz
ationamountoftheinterestin2019
Capitalizationrateof
theinterest
in2019(
%)
Sourcesoffunds
BuildingArenovationproject
9,000,000.0
9,340,214.8
9,340,21
4.88
100.00%100%OtherRoofwaterproofingproject
370,091.75
370,091.
100%OtherPavementmodificationproject
450,174.76
450,174.
100%OtherStaffdormitoryrenovationproject
348,873.78
348,873.
OtherCentralair-conditioningsystemandhotwatersystemcomprehensiverenovation
139,648.32
139,648.
Other
Total
9,000,000.0
10,649,003.
10,160,4
81.39
488,522.
------
2019
(3)Provisionforimpairmentofconstructioninprogressin2019:nil
(4)Engineeringmaterial:nil
23.Productivebiologicalasset
(1)Measuredbycost
□Applicable√Notapplicable
(2)Measuredbyfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Right-of-useassets:nil
26.Intangibleassets
(1)Intangibleassets
InRMB/CNYItemLanduserightsPatentright
Non-patentstechnology
TotalI.Originalbookvalue
1.Beginningbalance81,653,137.1581,653,137.15
2.Currentincrease
(1)Purchase
(2)Internalresearchand
development
(3)Increasefrombusiness
combinations
3.Currentdecrease
(1)Disposal
4.Endingbalance81,653,137.1581,653,137.15II.Accumulatedamortization
2019
1.Beginningbalance32,007,051.2732,007,051.27
2.Currentincrease812,387.16812,387.16
(1)Provision812,387.16812,387.16
3.Currentdecrease
(1)Disposal
4.Endingbalance32,819,438.4332,819,438.43III.Provisionforimpairment
1.Beginningbalance27,440,836.8427,440,836.84
2.Currentincrease
(1)Provision
3.Currentdecrease
(1)Disposal
4.Endingbalance27,440,836.8427,440,836.84IV.Bookvalue
1.Endingbookvalue21,392,861.8821,392,861.88
2.Openingbookvalue22,205,249.0422,205,249.04RatiooftheintangibleassetsfrominternalR&Dinbalanceofintangibleassetsatperiod-end
(2)Landuserightswithoutcertificateofownership:nil
27.Developmentexpenditure:nil
28.Goodwill:nil
29.Long-termdeferredexpenses
InRMB/CNYItem
Beginning
balance
Increasein2019
Amortizationin
2019
Amountofother
decreases
EndingbalanceHotelexteriordecoration
486,974.57486,974.57
2019
Reconstructionoffire-fightingstairway
45,695.2017,135.6428,559.56Swimmingpoolreconstruction
224,969.2859,991.80164,977.48ReconstructionofguestroomsinBuildingC
721,297.31192,345.93528,951.38Villareconstruction
1,313,939.71350,383.87963,555.84BuildingArenovationproject
9,340,214.88311,340.509,028,874.38Pavementmodificationproject
450,174.7615,005.82435,168.94Roofwaterproofingproject
370,091.75370,091.75Total2,792,876.0710,160,481.391,433,178.1311,520,179.33Otherdescription:nil
30.Deferredincometaxassetsanddeferredincometaxliabilities:nil
31.Othernon-currentassets:nil
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
32.Short-termloans:nil
33.Tradingfinancialliability:nil
34.Derivativefinancialliability:nil
35.Notespayable:nil
36.Accountspayable
(1)Presentationofaccountspayable
InRMB/CNY
2019
ItemEndingbalanceBeginningbalancePaymentforpurchase
947,770.85687,690.30Accountspayableprovisionallyestimated
191,232.86534,359.35Servicecharges
84,838.93155,368.88Paymentforprojects
14,274.10134,274.10Elevatormaintenancefee
7,200.0031,670.00Advertisementfees
31,195.28Consignmentsales
1,093.0022,335.90Others
4,000.0110,942.00Total1,250,409.751,607,835.81
(2)Significantaccountspayablewithagingoveroneyear
InRMB/CNYItemEndingbalance
Reasonsforrepaymentfailureor
carry-forwardEstimatedaccountspayable191,232.86UnsettlementTotal191,232.86--Otherdescription:nil
37.Advancefromcustomers
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
(1)Presentationofadvancesfromcustomers
InRMB/CNYItemEndingbalanceBeginningbalanceRoomandmealfees786,715.421,291,293.05Total786,715.421,291,293.05
(2)Significantadvancesfromcustomerswithagingoveroneyear
InRMB/CNY
2019
ItemEndingbalance
Reasonsforrepaymentfailureor
carry-forwardHainanXiangyuanTourismDevelopmentCo.,Ltd.
35,183.00UnsettlementPEGASZhengQingbo
32,243.02UnsettlementHainanQiongzhongEcologicalInvestmentGuaranteeCo.LTD
21,950.00UnsettlementRenKaiyu
9,774.00UnsettlementHainanChendaInternationalTravelServiceCo.LTD
8,779.00UnsettlementTotal107,929.02--
38.Contractualliability:nil
39.Employeecompensationpayable
(1)Presentationofemployeecompensationpayable
InRMB/CNYItemBeginningbalance
Increasein2019Decreasein2019
EndingbalanceI.Short-termcompensation
2,841,262.3511,754,057.2812,042,323.262,552,996.37II.Post-employmentbenefits-definedcontributionplans
991,111.55991,111.55Total2,841,262.3512,745,168.8313,033,434.812,552,996.37
(2)Presentationofshort-termcompensation
InRMB/CNYItemBeginningbalance
Increasein2019Decreasein2019
Endingbalance
1.Salaries,bonuses,allowances
andsubsidies
1,755,849.649,342,786.759,664,181.801,434,454.59
2.Employeewelfareexpenses
1,421,144.131,421,144.13
3.Socialinsurancepremiums
488,276.87488,276.87Including:medicalinsurancepremiums
458,292.70458,292.70
2019
Work-relatedinjuryinsurancepremiums
8,711.518,711.51Maternityinsurancepremiums
21,272.6621,272.66
4.Housingprovidentfunds
174,852.00172,598.002,254.00
5.Laborunionexpendituresand
employeeeducationfunds
1,085,412.71326,997.53296,122.461,116,287.78Total2,841,262.3511,754,057.2812,042,323.262,552,996.37
(3)Presentationofdefinedcontributionplans
InRMB/CNYItemBeginningbalance
Increasein2019Decreasein2019
Endingbalance
1.Basicendowment
insurancepremiums
962,911.22962,911.22
2.Unemployment
insurancepremiums
28,200.3328,200.33Total991,111.55991,111.55Otherdescription:nil
40.Taxespayable
InRMB/CNYItemEndingbalanceBeginningbalanceValueaddedtax(VAT)135,982.62146,863.56Corporateincometax47.80Individualincometax18,333.52-0.02Urbanmaintenanceandconstructiontax902.73761.67Housingpropertytax97,050.89194,101.69Landusetax54,295.47108,590.92Educationalsurtax386.88326.42Localeducationsurtax257.94217.63Total307,257.85450,861.87Otherdescription:nil
2019
41.Otherpayable
InRMB/CNYItemEndingbalanceBeginningbalanceOtherpayable2,647,515.862,727,483.66Total2,647,515.862,727,483.66
(1)Interestpayable:nil
(2)Dividendpayable:nil
(3)Otherpayable
1)Presentationofotherpayablebynature
InRMB/CNYItemEndingbalanceBeginningbalanceEmployeedormitoryrentalfees,etc.
1,219,075.78971,723.12Margin
764,598.49890,958.75Auditfee
285,003.21Qualityguaranteedepositforprojects
512,474.00190,344.00Employeedeposit
86,520.00165,700.90Projectfunds
162,569.78Fundscollectedandremitted
41,160.3136,408.47Individualcurrentamounts
1,364.00Electricchargeswithheld
23,687.2823,411.43Total2,647,515.862,727,483.66
2)Othersignificantpayablewithagingoveroneyear
InRMB/CNYItemEndingbalance
Reasonsforrepaymentfailureor
carry-forwardYangpuJinyuIndustrialCo.,Ltd.627,000.00UnsettlementTotal627,000.00--Otherdescription:nil
2019
42.Liabilityheldforsale:nil
43.Non-currentliabilityduewithinoneyear:nil
44.Othercurrentliability:nil
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
45.Long-termloans:nil
46.Bondpayable:nil
47.Leaseliability:nil
48.Long-termaccountpayable:nil
49.Long-termemployeepayable:nil
50.Estimatedliabilities
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
InRMB/CNYItemEndingbalanceBeginningbalanceReasonsProvisionsforarrearsofelectricitytariffs
1,489,685.041,489,685.04ArrearsofelectricitytariffsTotal1,489,685.041,489,685.04--Otherdescription:includingimportantassumptionsandestimationforthemajoraccrualliability:nil
51.Deferredincome:nil
52.Othernon-currentliability:nil
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
53.Sharecapital
InRMB/CNYBeginningChangesin2019("+"forincreaseand"-"fordecrease)Endingbalance
2019
balance
Issuanceofnewshares
Sharedonation
Conversionofreservesintoshare
Others
Sub-totalTotalshares
364,100,000.00364,100,000.00Otherdescription:nil
54.Otherequityinstrument
(1)Generalinformationofotherfinancialinstrumentsaspreferredstock,perpetualdebtsissuedatendof
theperiod:nil
(2)Statementofchangesforotherfinancialinstrumentsaspreferredstock,perpetualdebtsissuedatendoftheperiod:nil
55.Capitalreserves
InRMB/CNYItemBeginningbalance
Increasein2019Decreasein2019
EndingbalanceOthercapitalreserves54,142,850.0154,142,850.01Total54,142,850.0154,142,850.01Otherdescription:includingchangesintheperiodandreasons:nil
56.Treasurystock:nil
57.Otherconsolidatedincome:nil
58.Reasonablereserve:nil
59.Surplusreserves:nil
60.Undistributedprofit
InRMB/CNYItem
Year2019Year2018Undistributedprofitasattheendofthepreviousperiodbeforeadjustment
-340,454,153.72-341,107,435.91
2019
Totaladjustmenttoundistributedprofitasatthebeginningoftheperiod("+"forincreaseand"-"fordecrease)
-58,813.79Undistributedprofitasatthebeginningoftheperiodafteradjustment
-340,512,967.51-341,107,435.91Plus:netprofitattributabletoownersoftheparentcompanyinthecurrentperiod
756,721.46653,282.19Undistributedprofitasattheendoftheperiod-339,756,246.05-340,454,153.72Detailsaboutadjustingtheretainedprofitsatthebeginningoftheperiod:
1)TheretroactiveadjustmentstoAccountingStandardsforBusinessEnterprisesanditsrelevantnewregulationsaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan.
2)Thechangesinaccountingpoliciesaffecttheretainedprofitsatthebeginningoftheperiodamountingto-58,813.79Yuan.
3)Themajoraccountingerrorcorrectionaffectstheretainedprofitsatthebeginningoftheperiodamountingto0Yuan
4)Mergescopechangescausedbythesamecontrolaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan.
5)Otheradjustmentsaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan
61.Operatingrevenueandoperatingcost
InRMB/CNYItem
Year2019Year2018RevenueCostRevenueCostPrimarybusiness
22,782,376.8210,608,243.3826,442,049.4711,280,674.54Otherbusiness
3,153,028.62474,523.563,073,542.86474,523.56Total25,935,405.4411,082,766.9429,515,592.3311,755,198.10Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
Revenue:
InRMB/CNYContracttype1#Division2#DivisionTotalProducttype22,782,376.8222,782,376.82Including:
Roomincome20,039,795.1320,039,795.13Classifybyoperationarea
22,782,376.8222,782,376.82Including:
2019
Hainan22,782,376.8222,782,376.82Typeofmarketor
clients
22,782,376.8222,782,376.82Including:
Tourismandcateringservices
22,782,376.8222,782,376.82Including:
Including:
Including:
Including:
Total22,782,376.8222,782,376.82Informationrelatingtoperformanceobligation:nilInformationrelatingtothetransactionpriceassignedtotheremainingperformanceobligation:
Theamountofrevenuecorrespondingtoperformanceobligationthathavebeensignedbuthavenotbeenfulfilledorhavenotbeenfulfilledattheendoftheperiodwas0.00Yuan,including0.00Yuanisexpectedtoberecognizedasrevenueinsubsequentyears,
0.00Yuanisexpectedtoberecognizedasrevenueinsubsequentyears,0.00Yuanisexpectedtoberecognizedasrevenueinsubsequentyears.Otherdescription:nil
62.Taxesandsurcharges
InRMB/CNYItem
Year2019Year2018Urbanconstructiontax37,357.4742,817.66Educationalsurtax16,010.3618,350.43Housingpropertytax431,174.84862,349.51Landusetax217,181.88434,363.69Vehicleandvesselusetax5,220.003,669.06Stamptax4,905.10851.70Disabledsecurityfunds19,245.72Localeducationsurtax10,673.5512,233.60Total722,523.201,393,881.37Otherdescription:nil
63.Sellingexpenses
InRMB/CNY
2019
Item
Year2019Year2018Employeesalaries
2,987,665.203,136,915.23Socialinsurancepremiums
525,922.93590,896.77Depreciation
520,034.90519,700.72Employeebenefits
387,737.00393,492.00Operatingsupplies
348,124.41161,602.46Repaircharges270,673.81246,435.46Utilitybills151,981.73173,016.68Laborunionexpendituresandemployeeeducationfunds
109,163.37110,092.08Amortizationoflowcostconsumables
90,344.3559,779.46Housingprovidentfunds
57,780.0059,985.00Otherexpenses
157,046.77167,164.09Total5,606,474.475,619,079.95Otherdescription:nil
64.Administrativeexpenses
InRMB/CNYItem
Year2019Year2018Salariesandwelfare
5,540,972.555,724,279.10Amortizationofintangibleassets
812,387.16812,387.16Sociallaborinsurancepremium
606,896.19670,247.63Agencyfee
452,000.00468,000.00Depreciation
325,025.00306,741.99Entertainmentexpenses
368,552.41680,606.62Attorneyfee282,674.2574,465.75Travelexpenses
279,944.13244,926.48Announcingfee
239,590.00280,218.00
2019
Fundsforlaborunionandstaffeducation
158,976.29173,100.15Listingfee
127,370.00110,000.00Repaircharge
127,251.5678,752.78Membershipexpensesoftheboardofdirectorsandtheboardofsupervisors
88,527.2430,556.00Housingprovidentfunds
79,602.0072,005.00Otherexpenses
282,644.08406,735.31Total9,772,412.8610,133,021.97Otherdescription:nil
65.R&Dexpenses:nil
66.Financialexpenses
InRMB/CNYItem
Year2019Year2018InterestexpensesLess:interestincome
210,556.05232,899.41ProfitorlossonexchangeHandlingcharges34,795.6744,620.81Total-175,760.38-188,278.60Otherdescription:nil
67.Otherincome
InRMB/CNYSourcesofotherincome
Year2019Year2018Governmentgrants
200,000.00Inputtaxgrossdeduction
92,643.89Total292,643.89
2019
68.Investmentincome:nil
69.Netopenhedgingbenefits:nil
70.Gainsfromfairvaluechanges:nil
71.Creditimpairmentloss
InRMB/CNYItem
Year2019Year2018Otherreceivablebaddebtloss-7,082.88Accountreceivablebaddebtloss2,050.62Total-5,032.26Otherdescription:nil
72.Assetimpairmentloss
Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
InRMB/CNYItem
Year2019Year2018I.Lossesfrombaddebts13,656.55Total13,656.55Otherdescription:nil
73.Incomefromassetsdisposal:nil
74.Non-operatingrevenue
InRMB/CNYItem
Year2019Year2018
Amountincludedinthecurrent
non-recurringprofitorlossGainorlossofrejectionanddamageofnon-currentassets
15,238.0915,238.09Debtwrite-offincome
958,979.88958,979.88Indemnityincome
572,245.29572,245.29Others
8,792.66273.008,792.66
2019
Total1,555,255.92273.001,555,255.92Governmentsubsidiesreckonedintocurrentgains/losses:nil
75.Non-operatingexpenses
InRMB/CNYItem
Year2019Year2018
Amountincludedinthecurrentnon-recurringprofitorlossLossesfromthedamageandscrappingofnon-currentassets
13,086.6429,691.2613,086.64
Overduefine
133,645.64Total13,086.64163,336.90Otherdescription:nil
76.Incometaxexpenses
(1)Incometaxexpensesstatement
InRMB/CNYItem
Year2019Year2018Currentincometaxexpense47.80Total47.80
(2)Accountingprofitandincometaxexpenseadjustmentprocess
InRMB/CNYItemYear2019Totalprofits
756,769.26Incometaxexpenseatthestatutory[orapplicable]rate
189,192.32Impactofsubsidiariessubjecttodifferenttaxrate
-191.20Impactofnon-deductiblecosts,expensesandlosses
89,099.10Theeffectofdeductiblelossesontheuseofpreviouslyunrecognizeddeferredincometaxassets
-278,052.42Incometaxexpense47.80
2019
Otherdescription:nil
77.Othercomprehensiveincome
SeeNote
78.Notestoitemsofstatementofcashflows
(1)Cashreceivedfromotheroperatingactivities
InRMB/CNYItem
Year2019Year2018Lease,water,electricalandgasfeescollected
1,360,510.371,406,063.94Interestincome
208,151.94232,899.41Deposits
200,000.0025,500.00Loanrepaymentbyemployees
130,970.00252,257.44Supportfundformarketdevelopmentofinboundtourism
200,000.00Others
140,726.4249,550.50Total2,240,358.731,966,271.29Explanation:nil
(2)Cashpaidforotheroperatingactivities
InRMB/CNYItemYear2019Year2018Socialintercoursefees
305,994.41713,655.45Intermediaryservicecharges
452,000.00400,000.00Announcementfeeandrelatedfee
179,590.00268,218.00Expensesforbusinesstrips
251,447.13235,245.87Attorneyfee205,140.00150,000.00Postscosts35,650.5342,387.66Repaircharges
351,092.37316,876.61
2019
Promotionfee
48,977.0094,988.06CostsoflistingontheShenzhenStockExchange
80,000.0080,000.00Fuel,water,electricityandgascharges
232,582.93277,581.11Officeexpenses
16,380.1517,609.79Financialexpenses
34,795.6744,620.81Propertyinsurancepremiums
40,282.3129,191.53Membershipexpensesoftheboardofdirectorsandtheboardofsupervisors
30,010.0030,556.00Employeeloan
403,763.71Deposits
160,000.00Otherexpenses
464,884.96433,472.47Total3,292,591.173,134,403.36Explanation:nil
(3)Cashreceivedfromotherinvestmentactivities:nil
(4)Cashpaidforotherinvestingactivities:nil
(5)Cashreceivedfromotherfinancingactivities:nil
(6)Cashpaidforotherfinancingactivities:nil
79.Supplementaryinformationtothestatementofcashflows
(1)Supplementaryinformationtothestatementofcashflows
InRMB/CNYSupplementaryinformationYear2019Year2018
1.Netprofitadjustedtocashflowsfromoperatingactivities
----Netprofit
756,721.46653,282.19Plus:Provisionforimpairmentofassets5,032.26-13,656.55Depreciationoffixedassets,depreciationanddepletionofoilandgasassetsanddepreciationofproductivebiologicalassets
3,440,511.593,405,454.96Amortizationofintangibleassets868,727.16868,727.16
2019
Amortizationoflong-termdeferredexpenses1,433,178.131,211,883.90Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-termassets("-"forgains)
29,172.48Lossesfromwrite-offoffixedassets("-"forgains)-2,151.45518.78Decreasesininventories("-"forincreases)77,541.5915,064.92Decreasesinoperatingreceivable(“-”forincreases)-492,057.7423,845.11Increasesinoperatingpayable("-"fordecreases)-1,373,841.49589,600.31Netcashflowfromoperatingactivities4,713,661.516,783,893.26
2.Significantinvestingandfinancingactivitiesnotinvolvingcashreceipts
andpayments:
----
3.Netchangesincashandcashequivalents:----Endingbalanceofcash7,422,939.8915,364,355.30Less:beginningbalanceofcash15,364,355.309,681,607.16Netincreaseincashandcashequivalents-7,941,415.415,682,748.14
(2)Netcashpaymentfortheacquisitionofasubsidiaryofthecurrentperiod:nil
(3)Netcashreceivedfromthedisposalofsubsidiaries:nil
(4)Breakdownsofcashandcashequivalents
InRMB/CNYItemEndingbalanceBeginningbalanceI.Cash
7,422,939.8915,364,355.30Including:cashonhand
302,077.12347,782.65Unrestrictedcashatbank7,120,862.7715,016,572.65III.Balanceofcashandcashequivalentsatendoftheperiod7,422,939.8915,364,355.30Otherdescription:nil
80.Notesforthestatementofownersequitychanges
Explaintheitemsandadjustedamountedwhichhaveadjustedin“Other”oflastyear’sendingbalance:nil
2019
81.Assetswithownershiporuserightrestricted:nil
82.Itemofforeigncurrency:nil
83.Hedging:nil
84.Governmentsubsidy
(1).Governmentsubsidy
InRMB/CNYTypesAmountPresentationitem
Amountentryincurrentgains/lossesSupportfundsforinboundtourismmarketdevelopment
200,000.00Otherincome200,000.00
(2)Refundofgovernmentsubsidy
□Applicable√Notapplicable
Otherdescription:nil
85.Other
VIII.Changeoftheconsolidationscope
1.Businesscombinationnotundercommoncontrol
(1)Businesscombinationnotundercommoncontroloccurredintheperiod:nil
(2)Combinationcostsandgoodwill:nil
(3)Identifiableassets/liabilitiesofthepurchaseeonthedateofpurchase:nil
(4)Gain/lossfromtheequityre-measuredatfairvalueheldbeforepurchasingdate:nilEnterprisecombinedstepbystepthroughmulti-dealingsandobtainedcontrollingrightsinthePeriod
□Yes√No
2019
(5)Explanationoncombinedconsiderationortheidentifiableassetsandliabilities’fairvalueofthepurchasedpartyonpurchasingdateorattheendofthecurrentperiodofmerger,whichisimpossibletodetermineinareasonableway:nil
(6)Otherdescription:nil
2.Businesscombinationundercommoncontrol
(1)Businesscombinationundercommoncontroloccurredintheperiod:nil
(2)Combinedcost:nil
(3)Bookvalueoftheassets/liabilitiesfromcombinedpartyatdateofcombination:nil
3.Counterpurchase:nil
4.Disposalofsubsidiaries
Losingcontrollingrightswhiledisposesubsidiaryonone-time
□Yes√No
Disposesubsidiarystepbystepthroughmulti-dealingsandlosingcontrollingrightsinthePeriod
□Yes√No
5.Changesofcombinationscope
Otherreasonscontributedthechangesforcombinationscope(e.g.newsubsidiaryestablished,liquidatesubsidiaryetc.):nil
6.Other:nil
IX.Rightsandinterestsinotherentities
1.Equityinsubsidiaries
(1)Structureoftheenterprisegroup
Nameofsubsidiary
Principalplaceofbusiness
Registrationplace
Businessnature
Shareholdingratio(%)Methodofacquisitio
nDirect
Indirect
2019
HainanWengaoTouristResourcesDevelopmentCo.,Ltd.
Sanya,Hainan
BlockB,MainBuilding,HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,No.2,YuhaiRoad,JiyangDistrict,SanyaCity,HainanProvince
Leasing
andcommercialserviceindustries
100.00%
NewlyestablishedAnexplanationfortheshareholdingratiodifferingfromtheshareofthevotingrightsinthesubsidiaries:nilThebasisforholdinghalforbelowofthevotingrightsbutstillcontrollingtheinvestee,andholdingmorethanhalfofthevotingrightsbutnotcontrollingtheinvestee:nilThebasisforimportantstructuredentitiesandcontrolswhichareincludedinthescopeofconsolidation:nilThebasisfordeterminingthecompanyasanagentorasaprincipal:nilOtherdescription:nil
(2)Majornon-wholly-ownedsubsidiary:nil
(3)Mainfinancialinformationofthemajornon-wholly-ownedsubsidiary:nil
(4)Majorrestrictiononusingthegroup’sassetsandpayingoffdebtsforthegroup:nil
(5)Financialandothersupportsprovidedtothestructuredentitythatincludedinconsolidatefinancialstatementscope:nil
2.Changesintheowner'sequityshareofthesubsidiaryandthetransactionisstillcontrolledsubsidiary:nil
3.Equityinarrangementofjointventureorassociatedenterprises:nil
4.Importantcommonmanagement:nil
5.Equityinstructuredentitiesnotincludedintheconsolidatedfinancialstatements:nil
6.Other:nil
X.RisksrelatedtofinancialinstrumentsDuringitsbusinessoperation,theCompanyfacesvariousfinancialrisks,includingcreditrisks,marketrisksandliquidityrisks.TheBoardofDirectorsoftheCompanytakesfullresponsibilitiesfordeterminingtheriskmanagementobjectsandpoliciesandbearingtheultimateliabilitiesforthat,however,theBoardofDirectorshasauthorizedthemanagementdepartmentoftheCompanytodesignandimplementtheprocesscapableofensuringtheeffectiveimplementationoftheriskmanagementobjectsandpolicies.TheBoardofDirectorsreviewstheeffectivenessoftheenforcedproceduresandtherationalityofriskmanagementobjectivesandpoliciesbythereportssubmittedbythemanagementdepartmentoftheCompany.TheinternalauditorsoftheCompanyalsowillaudittheriskmanagementpoliciesandprocedures,andreporttherelevantfactstotheauditcommittee.
2019
TheoverallobjectiveofriskmanagementoftheCompanyistopreparetheriskmanagementpoliciesensuringtheriskundercontrolasfaraspossibilitywithoutaffectingtheCompany'sbusinessdevelopmentgoals.
1.Creditrisk
Creditriskreferstoariskthatonepartytothefinancialinstrumentssuffersfinanciallossesduetothefailureoftheotherpartyinperformingtheobligations.TheCompanymainlyfacescustomercreditriskscausedbysalesonaccount.Beforesigninganewcontract,theCompanywillunderstandandassesscreditrisksofthenewcustomer.TheCompanyratesthecreditofexistingcustomersandanalyzestheagingofaccountsreceivabletoensurethattheCompany'soverallcreditriskiswithinthecontrollablerange.
2.Marketrisk
Marketriskassociatedwithfinancialinstrumentsreferstotheriskthatfairvalueorfuturecashflowsoffinancialinstrumentsfluctuateduetovariationsinmarketprices,anditincludesexchangeraterisk,interestrateriskandotherpricerisks.
3.Liquidityrisk
Liquidityriskreferstoariskthatanenterprisesuffersfundsshortageinperformingtheobligationsofsettlementincashorotherfinancialassets.ThepolicyoftheCompanyistoensurethatthereissufficientcashforthepaymentofthematureddebts.LiquidityriskisundercentralizedcontrolofthefinancialdepartmentoftheCompany.Thefinancialdepartmentmonitorscashbalanceandreadilyrealizableandmarketablesecuritiesandmakesrollingforecastoncashflowsofthenext12monthstoensurethattheCompanyhassufficientfundstorepaydebtsinallcasesofreasonableprediction.
2019
XI.Fairvaluedisclosures
1.Endingfairvalueoftheassetsandliabilitiesmeasuredbyfairvalue:nil
2.Recognizedbasisforthemarketpricesustainingandnon-persistentmeasuredbyfairvalueonfirst-order:nil
3.Thequalitativeandquantitativeinformationforthevaluationtechniqueandcriticalparameterthatsustainingandnon-persistentmeasuredbyfairvalueonsecond-order:nil
4.Thequalitativeandquantitativeinformationforthevaluationtechniqueandcriticalparameterthatsustainingandnon-persistentmeasuredbyfairvalueonthird-order:nil
5.Sensitivityanalysisofnon-observableparametersandadjustmentinformationbetweentheopeningbookvalueandendingbookvaluethatsustainingmeasuredbyfairvalueonthird-order:nil
6.Ifthereareconversionbetweendifferentordersthatsustainingmeasuredbyfairvalue,explaintheconversioncauseandpolicyofdeterminingthetimepointforconversion:nil
7.Thevaluationtechnicalchangeandreasonsoccurredintheperiod:nil
8.Thefairvalueoffinancialassets/liabilitiesthatnotmeasuredunderthefairvalue:nil
9.Other:nil
XII.Relatedpartiesandrelatedpartytransactions
1.Parentcompany
Nameoftheparentcompany
Registrationplace
Businessnature
Registeredcapital
Shareholdingratio
intheCompany
Votingratiointhe
CompanyLuoniushanCo.,Ltd.Haikou
Plantingandbreedingindustry
11511517.55%19.80%Explanation:
AsatDecember31,2019,LuoniushanCo.,Ltd.(hereinafterreferredtoas"Luoniushan")anditswholly-ownedsubsidiaryHainanYa'anjuPropertyServicesCo.,Ltd.heldatotalof72,092,000AsharesoftheCompany,accountingfor19.80%oftheCompany'stotalsharecapital,soitistheCompany'slargestshareholder.UltimatecontrollingpartyoftheCompanyisLuoniushanCo.,Ltd.Otherdescription:nil
2019
2.SubsidiaryoftheEnterprise
FoundmoreinNotes
3.Jointventureandassociatedenterprise
ImportantjointventureandassociatedenterprisefoundmoreintheNotes.OtherjointventureorassociatedenterprisethathaverelatedpartytransactionwiththeCompanyoccurredintheperiod,oroccurredinpreviousperiodwithbalanceresulted:nil
4.Otherrelatedparty:nil
5.Relatedpartytransactions
(1)Relatedpartytransactionsofpurchasingandsellingcommodities,providingandreceivinglabor
services:nilSalesofgoods/providedlaborservice:
InRMB/CNYRelatedparty
Contentofrelated-partytransaction
Year2019Year2018LuoniushanCo.,Ltd.Roomandmealfees
124,455.66325,905.66Explanation:nil
(2)Associatedtrusteeshipmanagement/contractandtrusteeship/outsourcing:nil
(3)Related-partylease:nil
(4)Related-partyguarantee:nil
(5)Related-partyfundslending:nil
(6)Related-partyassettransferanddebtrestructuring:nil
(7)Keymanagementpersonnelemoluments
RMB'0,000Item
Year2019Year2018Keymanagementpersonnelemoluments189.48163.02
2019
(8)Otherrelatedtransactions:nil
6.Receivablesandpayableoftherelatedparty
(1)Receivable
InRMB/CNYItemRelatedparty
EndingbalanceBeginningbalanceBookbalance
Provisionforbaddebt
Bookbalance
ProvisionforbaddebtAccountreceivable
LuoniushanCo.,Ltd.3,246.0013,153.00
(2)Payable:nil
7.Relatedparty’scommitment
CommitmentsAccordingtotherequirementsoftheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas"CSRC")ontheGuidelinesfortheSupervisionofListedCompaniesNo.4--CommitmentsofandPerformanceofCommitmentsbyActualControllers,Shareholders,RelatedParties,AcquirersofListedCompaniesandListedCompanies(AnnouncementoftheChinaSecuritiesRegulatoryCommission[2013]No.55),onJune7,2014,LuoniushanCo.,Ltd.(hereinafterreferredtoas“Luoniushan”)issuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmenttoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.totheCompany,committingthat,withinthreeyearsfromthedatewhenthechangeofsuchcommitmentisreviewedandadoptedattheCompany'sgeneralmeeting,LuoniushanwillactivelyseekrestructuringpartywhowillconducttheassetrestructuringontheCompany.TheabovematterswerereviewedandapprovedbytheboardofshareholdersoftheCompanyonJune27,2014.OnJune23,2017,LuoniushanissuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmentDurationtoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,andextendedtheimplementationperiodoftheaboverestructuringcommitmentmadebyLuoniushantotheCompany,thatis,thedeadlinefortheimplementationperiodoftherestructuringcommitmentwaschangedtoDecember27,2017.AsofDecember31,2019,nofurtherprogresswasmadeontheabove-mentionedassetrestructuringcommitments.
2019
8.Other:nil
XIII.Share-basedpayment
1.Share-basedpayment
□Applicable√Notapplicable
2.Settledbyequity
□Applicable√Notapplicable
3.Settledbycash
□Applicable√Notapplicable
4.Modificationandterminationofshare-basepayment:nil
5.Other:nil
XIV.Commitmentsandcontingencies
1.Commitments
CommitmentsonbalancesheetdateAccordingtotherequirementsoftheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas"CSRC")ontheGuidelinesfortheSupervisionofListedCompaniesNo.4--CommitmentsofandPerformanceofCommitmentsbyActualControllers,Shareholders,RelatedParties,AcquirersofListedCompaniesandListedCompanies(AnnouncementoftheChinaSecuritiesRegulatoryCommission[2013]No.55),onJune7,2014,LuoniushanCo.,Ltd.(hereinafterreferredtoas“Luoniushan”)issuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmenttoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.totheCompany,committingthat,withinthreeyearsfromthedatewhenthechangeofsuchcommitmentisreviewedandadoptedattheCompany'sgeneralmeeting,LuoniushanwillactivelyseekrestructuringpartywhowillconducttheassetrestructuringontheCompany.TheabovematterswerereviewedandapprovedbytheboardofshareholdersoftheCompanyonJune27,2014.OnJune23,2017,LuoniushanissuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmentDurationtoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,andextendedtheimplementationperiodoftheaboverestructuringcommitmentmadebyLuoniushantotheCompany,thatis,thedeadlinefortheimplementationperiodoftherestructuringcommitmentwaschangedtoDecember27,2017.
2019
AsofDecember31,2019,nofurtherprogresswasmadeontheabove-mentionedassetrestructuringcommitments.
2.Contingencies
(1)Majorcontingenciesonbalancesheetdate
1)TheCompanyowedtheelectricitybilltotheSanyaPowerSupplyBureau.OnMay26,2016,theCompanyreceivedalawyerletterfromHainanYunfanLawFirmentrustedbySanyaPowerSupplyBureauofHainanPowerGridCo.,Ltd.(hereinafterreferredtoas"SanyaPowerSupplyBureau"),sayingthatSanyaPowerSupplyBureaufound,inverifyingelectricityconsumptionbySouthChinaHotel,asubsidiaryoftheCompany,thatthecurrenttransformer(CT)installedinthedistributioncentermeteringcountersinSouthChinaHotelinstalledwasinconsistentwiththerecordinthemarketingmanagementsystemfileofSanyaPowerSupplyBureau,andthedurationoftheinconsistencewasfromJuly2006whenSouthChinaHotelchangeditselectricityconsumptionmeasuringdevicetoApril2016.Accordingtothestatistics,electricityconsumptionof10313373KWHwasmeasuredinshort,whichwasestimatedtobevaluedatRMB7,200,165.75accordingtotheelectricitypricesandsurchargeratesintheyears.AccordingtotheLegalConsultationAdviceonElectricityQuantity(ElectricityCharge)ClaimingDisputebetweenSouthChinaHotelandSanyaPowerSupplyBureauissuedbyBeijingJunhe(Haikou)LawFirmonDecember20,2016,asallelectricityconsumptionmeteringdevicesarepurchased,installed,sealed,openedandreplacedbySanyaPowerSupplyBureauResponsible,theshortmeasurementofelectricitychargefromSouthChinaHotelformanyyearswasduetothefaultofSanyaPowerSupplyBureau,andwasirrelevanttoSouthChinaHotel.PursuanttoArticle135oftheGeneralPrinciplesofCivilLaw:"Exceptasotherwisestipulatedbylaw,thelimitationofactionregardingapplicationstoapeople'scourtforprotectionofcivilrightsshallbetwoyears.,theCompanyaccruedanamountofRMB1,489,685.04fortheelectricitychargeforelectricityquantitymeasuredinshortduringtwoyearsfromApril2014toApril2016.AsatDecember31,2019,nofurtherprogresswasmadeonthismatter.
2)TheCompanyannouncedonJune3,2019thatHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoas“DadonghaiGroup”)hadborrowedRMB2.76millionandRMB4.55millionfromtheCompanyonOctober16,1996andDecember26,1996respectively.ThetwoloanstotaledRMB7.31millionandhavenotbeenrepaidyet.TheCompanyfiledalawsuitwiththeSuburbanPeople'sCourtofSanya,Hainanprovince(hereinafterreferredtoasthe"court"),requestingthedefendantDadonghaigrouptorepaytheloanofRMB7.31milliontotheCompany.Thecompanyhasreceivedthe(2019)[Qiong0271MinchuNo.5185]NoticeofAcceptanceofTheCaseissuedbythecourt.Thecaseisstillpending.Thisclaim,thecompanyhasbeenin2008fullwrite-off.
(2)Fornomajorcontingenciesdisclosed,explainreasons
TheCompanyhasnomajorcontingenciesshouldbedisclosed
2019
3.Other
XV.Postbalancesheetevents
1.Majornon-adjustmentevents:nil
2.Profitdistribution
InRMB/CNYProfitordividendplanstodistributed0.00Profitordividendannouncedtodistributedafterapproval0.00
3.Salesreturn:nil
4.Otherpostbalancesheetevents
?
1)OnMarch19,2020,asresolvedatthe8thmeetingofthe9thboardofdirectorsoftheCompany,theCompanydoesnotintendtomakeprofitdistributionorconvertcapitalreserveintosharecapital.
2)TheoutbreakofthenovelcoronavirusaroundChinasinceinJanuary2020hascausedasignificantimpactonthehotelbusinessoperatedbytheCompany.IthasgreatlyaffectedtheoperatingincomeandbusinessperformanceoftheCompanysinceJanuary2020.EspeciallysinceFebruary2020,thedailyoccupancyrateoftheCompany'ssouthChinahotelislessthan10%.Theextentofthesubsequentimpactwilldependonthesituationofepidemicpreventionandcontrol,durationandimplementationofvariouscontrolpolicies.TheCompanywillcontinuetopaycloseattentiontothedevelopmentofthepneumoniaepidemic,evaluateandactivelyrespondtoitsimpactontheCompany'sfinancialstatus,operatingresultsandotheraspects.?
2019
XVI.Othersignificantevents
1.Correctionofaccountingerrorsinpreviousperiods
(1)Retroactiverestatementmethod:nil
(2)Prospectiveapplicationmethod:nil
2.Debtreorganization:nil
3.Assetsexchange
(1)Non-monetaryassetsexchange:nil
(2)Otherassetsexchange:nil
4.Annuityplan:nil
5.Terminationofoperation:nil
6.Segmentinformation:nil
7.Majortradinganditemsshowsinfluenceoninvestors’decision-making:nil
8.Other
Asresolvedatthe4
th
temporarymeetingofthe9
thboardofdirectorsoftheCompanyandapprovedbySouthChinaHotelInstructionsAboutCleaningupLong-termPayable(QiongSouthChinese[2019]No.22)on6
th
September2019,theCompanyandSouthChinaHotelcheckedforaccountspayableforagesinmorethanfiveyearscannotbepaidbeingRMB90668.11,deferredrevenuebeingRMB244479.06,otherpayablebeingRMB623832.71,andmadeclearafterverification.HainanXiangruiLawFirmissuedaLegalOpiniononLimitationofActionforPartialAccountsPayablebyHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.Thewrite-offofthedebtgeneratednon-operatingincomeisRMB958,979.88.XVII.Notestomainitemsoffinancialstatementsoftheparentcompany
1.Accountsreceivable
(1)Disclosureofaccountreceivablesbycategory
InRMB/CNYCategoryEndingbalanceBeginningbalance
2019
Bookbalance
Provisionforbad
debt
Bookvalue
Bookbalance
Provisionforbaddebt
BookvalueAmount
Ratio
AmountProvisionratio
Amount
Ratio
Amount
ProvisionratioIncluding:
Accountsreceivablewithprovisionforbaddebtsbasedonportfolios
420,84
9.75
100.00
%
109,76
5.83
26.08
%
311,08
3.92
500,51
0.47
100.00
%
111,816.45
22.34%
388,694.
Including:
Total
420,84
9.75
100.00
%
109,76
5.83
26.08
%
311,08
3.92
500,51
0.47
100.00
%
111,816.45
22.34%
388,694.
Accountsreceivablewithprovisionforbaddebtsmadeseparately:nilProvisionforbaddebtbyportfolio:
InRMB/CNYName
EndingbalanceBookbalanceProvisionforbaddebtProvisionratioProvisionforbaddebtbyportfolio
420,849.75109,765.8326.08%Total420,849.75109,765.83--Adescriptionofthebasisfordeterminingtheportfolio:nilProvisionforbaddebtbyportfolio::nilIfthebaddebtprovisionofanaccountreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision
□Applicable√Notapplicable
Releasedbyaccountage
InRMB/CNYAccountageBookbalanceWithin1year(inclusive)327,780.951yearto2years
2,259.002yearsto3years
566.00
Over3years90,243.80
2019
3yearsto4years
785.00
4yearsto5years
18,633.00Over5years70,825.80Total420,849.75
(2)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiod
Provisionforbaddebtintheperiod
InRMB/CNYCategoryBeginningbalance
Amountchangedintheperiod
EndingbalanceAccrual
Reversalorswitch-back
ChargeoffAccountreceivable
111,816.45-2,050.62109,765.83Total111,816.45-2,050.62109,765.83Includingthemajoramountthatreversalorswitch-backintheperiod:nil
(3)Accountreceivableactuallychargeoffintheperiod:nil
(4)Topfiveaccountsreceivableintermsofendingbalancecollectedbythedebtor
InRMB/CNYNameofentity
Endingbalanceofaccountreceivable
Proportioninthetotalaccountsreceivableat
period-end
EndingbalanceofthebaddebtprovisionTianjinWatermelonTourismLimitedLiabilityCompany
70,016.4216.64%3,566.61ShanghaiHechengInternationalTravelServiceCo.,Ltd.
69,853.3116.60%3,558.30BeijingTongchengHuadingInternationalTravelServiceCo.,Ltd.SuzhouBranch
64,033.5015.22%3,261.84ANEXTOUR52,843.6812.56%2,691.84YEEPAY48,696.0411.57%2,480.56Total305,442.9572.59%
2019
(5)Accountreceivablethatareterminatedduetofinancialassetstransfer:nil
(6)Assetsandliabilitiesresultedbyaccountreceivabletransferandcontinuesinvolvement:nil
2.Otheraccountreceivable
InRMB/CNYItemEndingbalanceBeginningbalanceOtheraccountreceivable571,744.52437,169.79Total571,744.52437,169.79
(1)Interestreceivable:nil
3)Provisionforbaddebt:
□Applicable√Notapplicable
(2)Dividendreceivable
1)Category:nil
2)Significantdividendreceivablewithoveroneyearaccountage:nil
3)Provisionforbaddebt:
□Applicable√Notapplicable
Otherdescription:nil
(3)Otheraccountreceivable
1)Otheraccountreceivabledisclosedbynature
InRMB/CNYNatureEndingbookbalanceOpeningbookbalanceUtilitybills76,534.42185,368.69Pettycash394,313.63133,411.23Attorneyfee77,534.25Socialinsuranceandhousingprovidentfunds
61,826.2963,264.56Deposit600.00600.00Litigationfee68,562.00
2019
Total601,836.34460,178.73
2)Provisionforbaddebt:
InRMB/CNYProvisionforbaddebt
FirststageSecondstageThirdstage
TotalExpectedcreditlossinnext12months
Expectedcreditlossforthewholeduration(nocreditimpairment)
Expectedcreditlossforthewholeduration(creditimpairmenthasoccurred)Balanceasat1Jan.201923,008.9423,008.94BalanceasatJanuary1.2019incurrentperiod
————————Provisionincurrentperiod7,082.887,082.88Balanceasat31Dec.201930,091.8230,091.82Changeofthebookbalanceformajoramountchangedinlossprovision
√Applicable□Notapplicable
Bookbalance
FirststageSecondstageThirdstage
TotalExpectedcreditlossinnext12months
Expectedcreditlossforthewholeduration(nocreditimpairment)
Expectedcreditlossforthe
wholeduration(creditimpairmenthasoccurred)Balanceatperiod-begin460,178.73460,178.73Balanceatperiod-beginincurrentperiod
460,178.73460,178.73--Transferinsecondstage--Transferinthirdstage--Reversetosecondstage--ReversetofirststageIncreaseincurrentperiod5,012,978.405,012,978.40Directlywritedownincurrentperiod
4,871,320.794,871,320.79DerecognitionincurrentperiodOtherchangesEndingbalance601,836.34601,836.34Releasedbyaccountage
InRMB/CNYAccountageBookbalanceWithin1year(inclusive)599,600.34Over3years2,236.00
2019
Over5years2,236.00Total601,836.34
3)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiodProvisionforbaddebtintheperiod
InRMB/CNYCategory
Beginningbalance
Amountchangedintheperiod
EndingbalanceAccrual
Reversalorswitch-back
ChargeoffOtheraccountreceivable
23,008.947,082.8830,091.82Total23,008.947,082.8830,091.82Includingmajoramountreversalorswitch-backintheperiod:nil
4)Otherreceivablesactuallychargeoffintheperiod:nil
5)Topfiveotheraccountsreceivableintermsofendingbalancecollectedbythedebtor
InRMB/CNYNameofentityNatureEndingbalanceAccountage
Proportionintotalamountofotheraccountsreceivableatperiod-end
Endingbalanceof
thebaddebt
provisionChenShaoxuePettycash98,500.00
Within1year
16.37%4,925.00
GuoYuboPettycash94,366.52
Within1year
15.68%4,718.33
ChenGangPettycash78,996.70
Within1year
13.13%3,949.84
Sanyasuburbanpeople'scourt
Litigationfee68,562.00
Within1year
11.39%3,428.10
Brightmoonpavilionmusicrestaurant
Utilitybills67,134.84
Within1year
11.15%3,356.74
Total--407,560.06--67.72%20,378.01
2019
6)Accountreceivablesrelatedtogovernmentsubsidies:nil
7)Otherreceivableforterminationofconfirmationduetothetransferoffinancialassets:nil
8)Theamountofassetsandliabilitiesthataretransferredotherreceivableandcontinuedtobeinvolved:nil
3.Long-termequityinvestments
InRMB/CNYItem
EndingbalanceBeginningbalanceBookbalance
Provisionforimpairment
BookvalueBookbalance
Provisionforimpairment
BookvalueInvestmentinsubsidiaries
1,000,000.001,000,000.001,000,000.001,000,000.00Total1,000,000.001,000,000.001,000,000.001,000,000.00
(1)Investmentinsubsidiaries
InRMB/CNY
Investee
Beginningbalance(Book
value)
Increase/decreasedin2019(+,-)
Endingbalance(Boo
kvalue)
Endingbalanceoftheprovision
forimpairmentAdditionalinvestmen
t
Capitalreduction
Provisionforimpairment
OtherHainanWengaoTouristResourcesDevelopmentCo.,Ltd.
1,000,000.001,000,000.00
Total1,000,000.001,000,000.00
(2)Investmentforjointventureandassociatedenterprise:nil
(3)Otherdescription:nil
4.Operatingrevenueandoperatingcost
InRMB/CNYItem
Year2019Year2018RevenueCostRevenueCost
2019
Primarybusiness
22,782,376.8210,608,243.3826,442,049.4711,280,674.54Otherbusinesses
3,153,028.62474,523.563,073,542.86474,523.56Total25,935,405.4411,082,766.9429,515,592.3311,755,198.10Whetherthenewrevenuestandardsbeenimplemented
√Yes□No
Revenue:
InRMB/CNYContracttype1#Division2#DivisionTotalProducttype22,782,376.8222,782,376.82
Including:
Roomincome20,039,795.1320,039,795.13Classifybyoperationarea
22,782,376.8222,782,376.82Including:
Hainan22,782,376.8222,782,376.82Typeofmarketor
clients
22,782,376.8222,782,376.82Including:
Tourismandcateringservices
22,782,376.8222,782,376.82Including:
Total22,782,376.8222,782,376.82Informationrelatingtoperformanceobligation:nilInformationrelatingtothetransactionpriceassignedtotheremainingperformanceobligation:
Theamountofrevenuecorrespondingtoperformanceobligationthathavebeensignedbuthavenotbeenfulfilledorhavenotbeenfulfilledattheendoftheperiodwas0.00Yuan,including0.00Yuanisexpectedtoberecognizedasrevenueinsubsequentyears,
0.00Yuanisexpectedtoberecognizedasrevenueinsubsequentyears,0.00Yuanisexpectedtoberecognizedasrevenueinsubsequentyears.Otherdescription:nil
2019
5.Investmentincome:nil
6.Other:nil
XVIII.Supplementaryinformation
1.Breakdownofcurrentnon-recurringprofitsandlosses
√Applicable□Notapplicable
InRMB/CNYItem
Amountin2019RemarkProfitorlossfromdisposalofnon-currentassets2,151.45IncomefromdisposaloffixedassetsGovernmentgrantsincludedinthecurrentprofitorloss(exceptforgovernmentgrantscloselyrelatedtotheenterprisebusiness,obtainedbyquotaorquantityatunifiedstatestandards)
292,643.89
RewardsfordevelopmentofinboundtourismmarketsupportingbythegovernmentandtaxcreditfortheVATinputtaxsurchargeOthernon-operatingrevenueandexpensesexceptfortheabove-mentioneditems
1,540,017.83
IncomefromcompensationandliquidationTotal1,834,813.17--Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
2.Returnonequity(ROE)andearningspershare(EPS)
Profitduringthereportingperiod
WeightedaverageROE
EarningspershareBasicEPS(RMB/Share)
DilutedEPS(RMB/Share)NetprofitsattributabletoordinaryshareholdersoftheCompany
0.97%0.00210.0021NetprofitsattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitsorlosses
-1.38%-0.0030-0.0030
3.AccountingdifferencebetweenIFRSandCAS
(1)Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
2019
(2)Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(3)ExplanationondatadifferencesundertheaccountingstandardsinandoutofChina;asforthedifferencesadjustmentauditedbyforeignauditinginstitute,listednameoftheinstitute:nil
4.Other:nil
2019
SectionXIII.Documentsavailableforreferences
1.Financialstatementwithsignatureandsealoflegalperson,personinchargeofaccountingworksandpersoninchargeofaccountingorgan(accountantincharge);
2.OriginalauditingreportbearingthesealofAccountingFirmandsignatureandsealoftheCPA;
3.OriginalcopiesofalldocumentsandannouncementsthatpubliclydisclosedonSecuritiesTimesandHongKongCommercialDailyduringthereportingperiod.TheaforesaiddocumentsarepreparedatthesecuritiesdepartmentoftheCompany.
BoardofDirectorsofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
President:YuanXiaoping19march2020