The Abstract of the 2015 Annual Report of HaiNan Pearl River Holdings Co., Ltd.
Stock Code: 000505, 200505 Stock Name: Pearl River A, Pearl River B Announcement No. 2016-013
HaiNan Pearl River Holdings Co., Ltd.
The Abstract of the 2015 Annual Report
I Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating results, financial
condition and future development planning of the Company, investors are kindly reminded to read the full text carefully on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
All directors attended in person the board meeting for reviewing this Report.
The investors should carefully read about the audit report without unqualified opinion on the events-focused phase which issued by
Zhongxinghua CPAs (LLP) that the Board of Directors as well as the Board of Supervisors had specifically stated on the relevant
events.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserves into share capital.
Company profile
Stock name Pearl River A, Pearl River B Stock code 000505, 200505
Stock exchange Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Yu Cuihong Yu Cuihong
F29, Dihao Building, Pearl River Plaza, F29, Dihao Building, Pearl River Plaza,
Office address
Binhai Rd, Haikou Binhai Rd, Haikou
Fax 0898-68581026 0898-68581026
Tel. 0898-68583723 0898-68583723
E-mail hnpearlriver@21cn.net hnpearlriver@21cn.net
II Brief introduction to the main business or products in the Reporting Period
At present, we are mainly engaged in real estate development, hotels & tourism and property
management. We have 18 subsidiaries, 2 branch companies and 3 business divisions, namely
property management, real estate and hotels & tourism. The property management division
contributes approximately 70% of our operating revenues. Since it is a low-profit sector without
significant changes to the relevant operating activities, the property management division can only
manage to break even due to the continuously, rigidly rising labor cost, without being able to
generate profit for the Company.
The real estate business mainly came from Phase III of the Hubei Meilin Qingcheng project and to
31 December 2015, which had completed the construction area of the major structure about 73,000
square meter during Y2015 that developed by the Company with the accumulative completed
construction and installation engineering volume of RMB203.42 million, the accumulative
construction investment of RMB487.71 million, the sales area of the houses and buildings of 5,000
square meter as well as the sales volume of RMB602 million (subscription). It was estimated that,
in Y2016, the real estate business could contribute about RMB0.1 billion profits for the Company.
The service business of the Company mainly came from Sanya Days Hotel & Suites and China
Snow Country Scenic which operated by Mutankiang Pearl River Wanjia Tourism Group. There
The Abstract of the 2015 Annual Report of HaiNan Pearl River Holdings Co., Ltd.
were 180 guest rooms in Sanya Days Hotel & Suites, which located at the seaside of the Sanya Bay
with favorable geographic position as well as five star standard facilities. However, owning to the
influences such as the slowly grown domestic economic growth in the recent years and the
depressed real estate economy, the tourism market in Sanya also appeared successive downturn;
while the intensive opening of the high-end hotels led the market competition increasing, and the
facilities aging of the guest rooms as well as the rise of the labor costs, prices and energy cost,
which all directly caused the increase of the operating cost of the hotel. Since Y2014, the operating
income of the hotel declined obviously with rather large reduction of the gross profit rate. In 2015,
the operating income decreased continuously, thus the operating of the hotel faced with rather big
difficulties in a short time. And at the same time the depreciation led the continuously adverse since
the opening, the Company had decided to executed the public listing to transfer the equities of the
hotel for recollecting the funds for solving the Company’s debts as well as decreasing the losses on
the consolidated statements level.
The controlling subsidiary of the Company, Mutankiang Pearl River Wanjia Tourism Group
Company (hereinafter referred to as Mutankiang Company), mainly in charge of the construction
and operating of the China Snow Country. Nowadays had accumulatively invested of RMB0.4
billion in promoting the construction work of the Snow Country Scenic and successively completed
the work such as the Overall Development Planning from Snow Country to Taipinggou, purchase of
the Xuesongge Hotel and Xueyuan Guesthouse, the L. Chinensis Mountain road construction, the
transportation vehicles acquisition for scenic area tourist entertainment, Yong’an staff living area
construction and the ski resort equipment hall, which greatly improved and perfected each tourism
and basic facilities of Snow Country that led the passenger flow volume of Snow Country
ascending rapidly year by year. Since Y2012, the operating income had been increased year after
year which was of RMB31.87 million in Y2015. However, owning to the rather big investment on
each basic and tourism facilities construction of Snow Country and the rather high financing cost as
well as the successively transfer from the progress in construction to the fixed assets that caused
great depreciated expenses, to see from the current revenues scale, the Company only could strive
for the realizing of the profit and loss balance in a short time. While as the continuously enhance of
the popularity of the Snow Country tourism brand, the tourists in future will still increase
progressively year by year. The majority assets of the previous investment of the Company would
reached rather great appreciation owning to the continuously increase of the market-heat of the
Snow Country tourism. And as a long-term investment strategy, the construction and operating of
the Snow Country needed to adjust the strategies in due time, to adjust measures to local conditions,
to avoid cutthroat competition, to harmonious coexist with the local people, to quit the low-end
operating field in due time, and could adopt the sublease to contract part of the low-efficient
operating projects to acquire the co-existing and co-winning, as well as at the same time accelerate
the construction planning of the high-end tourism property, to make great efforts to forge the
holiday boutique by exerting the own advantages.
The Company will positively explore the business mode that fit for the own development, and to
regard which as the unequivocal strategic goal that invest the limited funds to the key business
fields for constantly enhancing the sustainable operating ability of the Company.
III Accounting and financial results
1. Accounting and financial results for the past three years
Whether the Company performed a retroactive adjustment to or restatement of accounting data due to changes of accounting policies
or correction of accounting errors
□ Yes √ No
Unit: RMB
The Abstract of the 2015 Annual Report of HaiNan Pearl River Holdings Co., Ltd.
Increase/decrease in
2015 2014 the current year from
last year (%)
Operating revenues 267,068,750.88 238,904,161.09 11.79% 225,308,239.00
Net profit attributable to
-107,573,743.92 -173,422,925.66 37.97% 13,489,485.71
shareholders of the Company
Net profit attributable to
shareholders of the Company after -237,953,658.00 -179,382,026.46 -32.65% -175,455,431.84
exceptional profit and loss
Net operating cash flow 259,599,625.38 -243,681,708.74 206.53% -45,736,703.09
Basic EPS (RMB/share) -0.25 -0.41 39.02% 0.03
Diluted EPS (RMB/share) -0.25 -0.41 39.02% 0.03
Weighted average ROE (%) 0.00% -262.21% 262.21% 7.61%
Increase/decrease at
the current year-end
31 December 2015 31 December 2014 31 December 2013
from the last year-end
(%)
Total assets 1,714,444,000.65 1,645,436,644.78 4.19% 1,237,713,804.04
Net assets attributable to
-217,136,869.15 15,564,470.40 -1,495.08% 116,714,215.59
shareholders of the Company
2. Financial results by quarter
Unit: RMB
1Q 2Q 3Q 4Q
Operating revenues 78,326,856.68 136,117,829.19 52,075,049.26 267,068,750.88
Net profit attributable to
69,940,735.03 21,492,625.03 -55,679,400.37 -107,573,743.92
shareholders of the Company
Net profit attributable to
shareholders of the Company after -55,022,579.89 -103,796,313.13 -58,786,624.64 -237,953,658.00
exceptional profit and loss
Net operating cash flow -48,534,275.41 -94,962,794.82 149,194,827.78 259,599,625.38
Any material differences between the financial indicators above or their summations and those which have been disclosed in
quarterly or semi-annual reports?
□ Yes √ No
IV Share capital and shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as the
shareholdings of top ten shareholders
Unit: share
Total number of Total number of
common Total number of preference
Total number shareholders at preference shareholders with
of common the prior shareholders resumed voting
39,996 40,864 0
shareholders at month-end with resumed rights at the prior
the period-end before the voting rights at month-end of the
disclosure of this the period-end disclosure of this
Report Report
Shareholdings of top ten shareholders
Total shares Pledged or frozen shares
Name of Nature of Shareholding
held at Number of restricted shares held Status of Number of
shareholder shareholder percentage
period-end shares shares
The Abstract of the 2015 Annual Report of HaiNan Pearl River Holdings Co., Ltd.
Beijing Wanfa
Real Estate State-owned
26.36% 112,479,478
Development corporation
Co., Ltd.
Li Leon Zhan Foreign
2.41% 10,279,606
Wei individual
Foreign
Yao Xiu Guang 2.28% 9,732,328
individual
Foreign
Yao Liyuan 0.47% 2,005,600
individual
Domestic
Zhang Xiaoxia 0.46% 1,949,250
individual
Domestic
Fan Suyue 0.42% 1,805,517
individual
Bank Of
Communication
s Co –Chang
Xin
Quantization Other 0.39% 1,684,600
Pioneer Hybrid
Securities
Investment
Funds
Domestic
Zhong Yi 0.37% 1,572,052
individual
Domestic
Xu Zhen 0.31% 1,314,300
individual
Cofco Futures
Co., Ltd. -
Cofco -
Ruixinchangyin
Other 0.31% 1,305,400
g No. 1 Grading
Asset
Management
Plan
Among shareholders above, there exists no related-party relationship between the principal
Related or acting-in-concert shareholder and other shareholders of the Company. Nor they are parties with concerted action as
parties among shareholders prescribed in the Information Disclosure Administrative Methods for Changes in Shareholding of
above Shareholders of Listed Companies. And it is unknown whether there is related-party relationship
among other shareholders and whether they are prescribed parties with concerted action.
Shareholders conducting
Shareholder Zhong Yi holds 1,572,052 shares of the through a client account of collateral securities
securities margin trading (if
for margin trading in Fortune Securities Co., Ltd..
any)
2. Number of preference shareholders and shareholdings of top ten of them
□ Applicable √ Not applicable
No preference shareholders in the Reporting Period.
3. Relationship between the Company and its actual controller in the form of diagram
The Abstract of the 2015 Annual Report of HaiNan Pearl River Holdings Co., Ltd.
State-owned Assets Supervision and
Administration Commission of Beijing
Municipal Government
100%
100%
Beijing Xinxing Real Estate Development Corp.
100%
Beijing Wanfa Real Estate Development Co., Ltd.
26.36%
HaiNan Pearl River Holdings Co., Ltd.
V Management discussion and analysis
1. Business review for the Reporting Period
In 2015, the performance of our subsidiaries did not improve markedly, with a consolidated operating loss
of RMB110 million, net assets of RMB-217 million and a serious liquidity problem. We are now on the
verge of a debt crisis due to running out of cash. The real estate development business, part of our main
business, went on well, with the main construction of the Phase III of the Meilin Qingcheng project
completed and the project open for early sale as scheduled. The hotel division mainly broke even, but asset
depreciation led to a continuous loss. The property management division contributed approximately 70%
of our operating revenues, but with a low profit margin. For the year 2015, we achieved operating revenues
of RMB267,068,750.88 and net profit of RMB-127,121,382.41. At the end of 2015, our total assets stood at
RMB1.714 billion and our net assets at RMB-217 million. According to the stock listing rules of the
Shenzhen Stock Exchange, in 2016, the Company will be placed on alert for possible de-listing.
Operating review and analysis of the Company in 2015
1. The Company faced with serious debt crisis. In Y2015, the operating had not received efficient improve,
with the unusual difficult circulating fund, the Company already faced by the debt crisis caused by the
broken capital chain and up to 31 December 2015, the total overdue debt was of RMB0.3 billion. For
solving the debt crisis, the management level of the Company put forward several measures including the
proposal on transferring the equities of Sanya Hotel and Selling Three Villas, and recently the proposal of
which was under constructin.
2. Situation of the real estate sales: up to 31 December 2015, the whole year accumulative completed work
amount of Phase III of the Hubei Meilin Qingcheng project was of RMB203.42 million with the
accumulative construction investment of RMB487.71 million. The main construction had totally completed
on 28 Aug. 2015 and 510 sets of the houses and buildings sold with the sales amount of 602 million as well as
the sales rate reached 70% and the actual returned money of RMB396 million. The progress of the recoup
funds was favorable that guaranteed the projects constructino progess and the repayments of part of the
development loans.
3. As for the property management: the market competition was still fierce. The property company
positively executed the market development and had undertook the projects such as the staff quarter of the
Baoting Sandao Farm, Phase III of the Wuhan Meilin Qingcheng project and Haikou Fudi International
The Abstract of the 2015 Annual
