HaiNan Pearl River Holdings Co., Ltd.
Abstract of Semi-annual Report 2016
1. Important notes
The Abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text disclosed at the
same time with the Abstract on http://www.cninfo.com.cn, the website of the Shenzhen Stock Exchange or any other websites designated by
the CSRC.
The 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.
Corporate profile
*ST Pearl River A, *ST
Stock name Stock code 000505, 200505
Pearl River B
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Yu Cuihong Yu Cuihong
Tel. 0898-68583723 0898-68583723
Fax 0898-68581026 0898-68581026
E-mail hnpearlriver@21cn.net hnpearlriver@21cn.net
2. Financial highlights and shareholder changes
(1) Financial highlights
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in accounting
policies or correction of accounting errors
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 149,032,528.40 136,117,829.19 9.49%
Net profit attributable to shareholders of
-47,370,594.88 21,492,625.03 -320.40%
the Company (RMB)
Net profit attributable to shareholders of
the Company excluding exceptional -85,764,505.67 -103,796,313.13 17.37%
profit and loss (RMB)
Net cash flows from operating activities
161,345,565.54 -94,962,794.82 269.90%
(RMB)
Basic earnings per share (RMB/share) -0.11 0.05 -320.00%
Diluted earnings per share (RMB/share) -0.11 0.05 -320.00%
Weighted average return on equity (%) 0.00% 0.00% 0.00%
As at the end of the
As at the end of last year +/- (%)
Reporting Period
Total assets (RMB) 1,790,195,248.41 1,714,444,000.65 4.42%
Net assets attributable to shareholders of
-264,507,464.03 -217,136,869.15 -21.82%
the Company (RMB)
(2) Shareholdings of the top 10 ordinary shareholders
Unit: share
Total number of ordinary
shareholders at the end of the 35,610
Reporting Period
Shareholdings of the top 10 ordinary shareholders
Number of Pledged or frozen shares
Name of Nature of Shareholdin Number of restricted ordinary
ordinary
shareholder shareholder g percentage shares held Status Number
shares held
Beijing Wanfa
Real Estate State-owned
26.36% 112,479,478
Development corporation
Co., Ltd.
Li Leon Zhan Foreign
2.63% 11,215,043
Wei individual
Yao Xiu Foreign
2.31% 9,850,128
Guang individual
Chongqing
International
Trust Co.,
Domestic
Ltd.—Yuxin
non-state-ow
Innovation 1.83% 7,827,463
ned
Advantage
corporation
No.
Assembled
Funds Trust
Domestic
Chen Huanan 0.66% 2,802,117
individual
Domestic
Xu Zhen 0.58% 2,462,300
individual
Beijing Shen
Zhou Mu
Investment
Domestic
Fund
non-state-ow
Management 0.55% 2,343,818
ned
Co.,
corporation
Ltd.—Hongy
an Shen Zhou
Mu Fund
Foreign
Yao Liyuan 0.47% 2,005,600
individual
Zhang Domestic
0.46% 1,949,250
Xiaoxia individual
Beijing Shen
Zhou Mu
Investment
Fund Domestic
Management non-state-ow
0.42% 1,795,300
Co., ned
Ltd.—Shangs corporation
han Shen
Zhou Mu No.
5 Securities
Investment
Fund
Among shareholders above, there exists no related-party relationship between the principal
shareholder and other shareholders of the Company. Nor they are parties with concerted action
Related or act-in-concert
as prescribed in the Information Disclosure Administrative Methods for Changes in
parties among the shareholders
Shareholding of Shareholders of Listed Companies. And it is unknown whether there is
above
related-party relationship among other shareholders and whether they are prescribed parties
with concerted action.
(3) Shareholdings of the top 10 preference shareholders
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(4) Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Discussion and analysis by the management
In the first half of 2016, we carried out a series of plans to maintain our listed position. We initiated the
procedure for transferring equity interests of our hotel in Sanya, beefed up the construction and marketing
of our Meilin Qingcheng Phase III project in the Hubei Province, acquired the Huilong Shanzhuang real
estate project in Chengde, Hebei Province, and repaid the loans from Chongqing International Trust Co.,
Ltd. and the Bank of China. Meanwhile, all our subsidiaries worked hard to increase income and reduce
expenditure. However, due to the fact that these measures were still in progress, we have failed to turn
around for the first half of the year.
As at 30 June 2016, our unaudited total assets stood at RMB1.79 billion, and the unaudited net assets
attributable to our shareholders stood at RMB-263 million. For January-June 2016, we achieved operating
revenues of RMB149 million and net profit of RMB-46.61 million.
A. Operation review for the Reporting Period：
a. During the Reporting Period, the sales of Phase III of Hubei Meiling Qingcheng Project was quite well
that totally completed the sales area of 21,133 square meter with 210 sets of commercial residential
buildings and sales volume of RMB285.01 million. There were 33 underground parking spaces of Phase I
rented with the rental of RMB5.47 million. And the Company expected to realize the recognition plan of
the sales revenue at the year-begin of RMB750 million.
b. The business season of the Snow Town of the controlling shareholder, Mudanjiang Tourist
Development Group in 2016 was from January to March and since April, the Group went out of business
after the snow season. The realized operating income of the business season of the first half year was of
RMB14.2779 million with the required revenues from transferring the subsidiary Longshi Zhujiang of
RMB38.1556 million and the net profits of RMB23.9142 million as well as realized the safety without
accidents work target in the aspects such as the staffs, vehicles, equipments facilities and fire fighting.
The operating income of Days Hotel and Suites Sanya Resort of the first half year in Y2016 was of
RMB12.3896 million with the gross margin of RMB1.6 million. Owing to the tourists resources
competition of the hotels in Sanya became fiercer and fiercer and the equipments as well as the facilities
of the hotel getting older and older, the Company had decided to transfer the hotel in whole.
c. Property management: up to the end of June, the management projects of the property company
involved with the areas such as Haikou, Qionghai, Wenchang, Lingao, Baoting, Sanya, Changsha, Wuhan,
Nanning, Zhengzhou and so on with 86 management projects, over 7.5 million square meter
comprehensive management area, of which there were 66 residential projects and 14 office projects. . In
terms of the structure of the project, the percentage of the residence projects was of 80%, while under the
situation of the unraised property fee of more than ten years but the operating cost increased by
twofoldness, the profit sources of the residence projects became smaller even was in the loss state. The
property company realized the operating income of RMB117.1001 million of the first half year in Y2016,
with the operating cost of RMB117.1597 million, the sales tax of RMB11.5184 million and the realized
profits of RMB-0.1014 million.
d. For repaying the schuldenberg for Chongqing ITIC, the Board of Directors of the Company approved to
execute the public listing and transfer of the equities of Sanya Wanjia Hotel Management Co., Ltd. on 29
January 2016 and approved to sale three villa properties which attributed to the Company on 16 June 2016.
On 23 June 2016, the equity evaluation report received the verification from Beijing State Capital Office
with the equity evaluation value of RMB68.4 million. And the Company executed the preliminary listing
since 20 July 2016 in China Beijing Equity Exchange, of which the preliminary quotation had completed
at present with the listing procedures were being managing.The listing events of the Company were
expected to be completetd in the middle of September in 2016. If the equity transfer of Sanya Hotel and
the sales of three villas could be completed with the transfer procedures done before the year-end of 2016,
would increase the net profits and the net assets by RMB0.16 billion for the Company in Y2016.
e. 26 April 2016, the Board of Director of the Company approved transferring investment of the coal
logistics project of Mulin Town into purchase of Chengde Huilong Town project. Pearl River Holdings
and Zhonghe Investment Co., Ltd. in 2012 was unable to continue, due to the change of state policies to
the energy and significant change in the coal market, the Company through several negotiations with
Zhonghe Investment Co., Ltd., Zhonghe Investment Co., Ltd. agreed to transfer 60% of its holding of
100% equity of Chengde Dongda Property Development Co., Ltd. (Chengde Huilong Town project) to the
Company, and used to deduct the investment income to our Company. On 20 May 2016, the Company had
completed the purchase of 60% equity of Chengde Dongda Property Development Co., Ltd. The Company
will raise construction fund of the project together with the bank and financial institutions, and continued
to complete the construction of Huilong Town project. The property development project is expected to
bring continuous profits for recent three years.
f. From 3 May 2015, under the leading of Beijing State Capital Office, the substantial shareholder and
actual controller Beijing Xinxing Company and Beijing Grain Group started to conduct significant assets
recombination, the stock of the Company suspended since 3 May 2016. The significant assets
recombination including three transactions: significant asset replacement, purchase assets by issuing
shares and related mechanism of financing. Due to the head of Beijing Xinxing Property Development Co.,
Ltd. and Beijing Grain Group are all under the control of Beijing State Capital Office, the significant
assets recombination was related transaction. On 29 July 2016, the Board of the Company reviewed and
approved the preplan of recombination. At present, the audit, recognition of the evaluation of the relevant
assets and the reply to the SZSE were under processing.
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as compared
with the financial reporting of last year
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Explain any retroactive restatements due to correction of significant accounting errors in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(4) Explanation of the Board of Directors and the Board of Supervisors concerning the “non-standard” auditor’s
report issued by the CPAs firm for the Reporting Period
□ Applicable √ Not applicable
Hainan Pearl River Holding Company Limited
Consolidated Balance Sheet
Unit：RMB
ASSETS Note(VII) 30 June 2016 31 December 2015
Current assets —— ——
Currency Funds 1 143,110,210.79 205,762,131.54
Provision of settlement fund
Funds lent
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 2 24,294,222.61 17,161,981.62
Advances to suppliers 3 174,617,724.95 108,236,943.90
Interest receivable
Dividends receivable 4 260,015.00 260,015.00
Other receivables 5 228,052,885.48 256,036,391.03
Buying back the sale of financial assets
Inventories 6 642,409,074.77 531,145,489.05
Reclassified to assets held for sale
Current portion of non-current assets
Other current assets 7 4,000,000.00
Total current assets 1,216,744,133.60 1,118,602,952.14
Non-current assets —— ——
Available-for-sale financial assets 8 11,411,309.90 11,411,309.90
Held-to-maturity investments
Long-term receivables
Long-term equity investments 9 35,049,837.38 35,284,761.64
Investment property 10 19,785,327.64 20,890,800.30
Fixed assets 11 391,923,929.89 409,326,778.05
Construction in progress 12 81,307,762.39 79,403,655.02
Construction materials 13 393,706.60 393,706.60
Fixed assets pending for disposal
Productive biological assets
Oil and gas assets
Intangible assets 14 28,608,452.96 29,519,153.74
Development disbursements
Goodwill
Long-term prepaid expenses 15 3,388,948.05 8,029,043.26
Deferred tax assets
Other non-current assets 17 1,581,840.00 1,581,840.00
Total non-current assets 573,451,114.81 595,841,048.51
Total assets 1,790,195,248.41 1,714,444,000.65
The accompanying notes form an integral part of the financial statements.
Legal representative: zhengqing Principal in charge of accounting: liyan Head of the accounting department:wuxiukun
Hainan Pearl River Holding Company Limited
Consolidated Balance Sheet
Unit：RMB
ASSETS Note(VII) 30 June 2016 31 December 2015
Current liabilities —— ——
Short-term borrowings
Financial liabilities at fair va
