司公限有份股心中游旅海东大南海 2016 文全告报度年年
Short Form of the Stock: Donghai-A, Donghai-B Stock Code: 000613, 200613
海南大东海旅游中心股份有限公司
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Annual Report 2016
Disclosure Date: 31 March 2017
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section I. Important Notice, Contents and Paraphrase
Important Notice:
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the
Company) hereby confirm that there are no any fictitious statements, misleading statements, or
important omissions carried in this report, and shall take all responsibilities, individual and/or
joint, for the reality, accuracy and completion of the whole contents.
All directors are attending the Board Meeting for Report deliberation.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of
common reserves either.
Li Yuanbin, Principal of the Company, Fu Zongren, person in charger of accounting works and
Fu Zongren, person in charge of accounting organ (accounting principal) hereby confirm that
the Financial Report of 2016 Annual Report is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the Report, they
do not constitute a substantial commitment for investors. Investors are advised to exercise
caution of investment risks.
Content
_Toc300000084Section I Important Notice, Contents and Paraphrase .................................................... 2
Section II Company Profile and Main Finnaical Indexes .................................................................. 4
Section III Summary of Company Business ...................................................................................... 9
Section IV Discussion and Analysis of Operation ........................................................................... 21
Section V Important Events ..............................................................................................................27
Section VI Changes in shares and particular about shareholders.......................................................28
Section VII Preferred Stock………………………………………………………………………..
Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees................36
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section IX Corporate Governance..................................................................................................... 43
Section X Corporate Bond................................................................................................................. 51
Section XI Financial Report............................................................................................................... 51
Section XII Documents available for reference................................................................................. 51
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Paraphrase
Items Refers to Contents
CSRC Refers to China Securities Regulation Commission
SSE Refers to Shenzhen Stock Exchange
Company Law Refers to Company Law of The People’s Republic of China
Securities Law Refers to Securities Law of The People’s Republic of China
Rules of Listing Refers to Rules of Shenzhen Stock Exchange for the Listing of Stocks
Company/the Company Refers to Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Article of Association of Hainan Dadonghai Tourism Centre
Article of Association Refers to
(Holdings) Co., Ltd.
Shareholders’ General Meeting of Hainan Dadonghai Tourism
Shareholders’ General Meeting Refers to
Centre (Holdings) Co., Ltd.
Board Refers to Board of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Supervisory Committee of Hainan Dadonghai Tourism Centre
Supervisory Committee Refers to
(Holdings) Co., Ltd.
Yuan Refers to RMB
In the reporting period, the reporting period Refers to 2016-1 -1 to 2016 -12 -31
Major Risk Warning
Concerning the forward-looking statements with future planning involved in the Report, they do not
constitute a substantial commitment for investors. Investors are advised to exercise caution of
investment risks.
Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) are the
media for information disclosure appointed by the Company for year of 2017, all information under
the name of the Company disclosed on the above said media shall prevail.
The report is prepared in bilingual versions of Chinese and English respectively, in the event of any
discrepancy in understanding the two aforementioned versions, the Chinese version shall prevail.
Investors are advised to exercise caution of investment risks.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section II Company Profile and Main Finnaical Indexes
I. Company information
Short form of the stock Donghai-A , Donghai-B Stock code 000613, 200613
Short form of the Stock
N/A
after changed
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
Chinese)
司公限有份股心中游旅海东大南海
Short form of the Company
(in Chinese)
海东大
Foreign name of the
Hainan Dadonghai Tourism Centre (Holdings) Co.,Ltd.
Company
Foreign name of short form
DADONGHAI
of the Company
Legal representative Li Yuanbin
Registrations add. Dadonghai Sanya
Code for registrations add 572021
Offices add. Dadonghai Sanya
Codes for office add. 572021
Company website www.cninfo.com.cn
Email hnddhhn@21cn.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Wang Hongjuan
Contact add. Dadonghai Sanya
Tel. 0898-88219921
Fax. 0898-88214998
E-mail hnddhhn@21cn.com
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times, Hong Kong Commercial Daily
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Website for annual report publish appointed by
http://www.cninfo.com.cn
CSRC
Preparation place for annual report Security department of the Company
IV. Registration changes of the Company
Organization code Unified social credit code 91460000201357188U
Changes of main business since
No changes
listing
1. The Company listed A-stock in January 1997, and 96.327 million A-stock shares are
held by Hainan Dadonghai Tourism Centre Group Co., ltd., a 26.46% in total share
capital of the Company and is the first majority shareholder of the Company also.
2. On 25 December 1998, the shares held by Hainan Dadonghai Tourism Centre Group
Co., ltd were transfer to Sanya ABC through the courts of justice, and after obtained the
shares in December 1998, Sanya ABC entrust wholly-owned subordinate enterprise
Sanya Bank-Agriculture Industrial Development Corp. to hold the aforesaid shares, than
the first majority shareholder of the Company comes to Sanya Bank-Agriculture
Industrial Development Corp.
3. On 12 December 2000, the aforesaid equity was stripped to name of China Greatwall
Previous changes for controlling Assets Management Corporation, the first majority shareholder of the Company.
shareholders 4. On 19 September 2001, China Greatwall Assets Management Corporation entered
into “Equity Transfer Agreement” with Haikou Food Co., Ltd for 60 million shares
transfer; and gained approval of [2002] No.: 430 from Ministry of Finance dated 18
October 2002, than the first majority shareholder of the Company comes to Haikou
Food Co., Ltd.
5. On 24 April 2008, Haikou Agriculture & Industry & Trade Luoniushan Co., Ltd.
entered into the “Statement”, confirmed that the 60 million shares held by Haikou Food
Co., Ltd. were under the name of Haikou Agriculture & Industry & Trade Luoniushan
Co., Ltd., the shares’ ownership have been transfer dated 29 January 2010. Therefore,
Haikou Agriculture & Industry & Trade Luoniushan Co., Ltd. comes to the first
majority shareholder of the Company.
V. Other relevant information
CPA engaged by the Company
Name of CPA BDO CHINA Shu Lun Pan Certified Public Accountants LLP
Offices add. for CPA 4# Building, No. 61, Nanjing Rd.(E), Shanghai
Signing Accountants Zhu Jianqing, Liu Zebo
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
司公限有份股心中游旅海东大南海 2016 文全告报度年年
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□ Yes √ No
2016 2015 Changes over last year
Operating income (RMB) 21,708,883.51 15,885,922.90 36.65% 20,202,134.10
Net profit attributable to shareholders
-2,661,052.49 -7,477,866.40 64.41% 2,503,486.47
of the listed company (RMB)
Net profit attributable to shareholders
of the listed company after deducting -4,072,689.97 -9,474,005.29 57.01% -2,709,988.03
non-recurring gains and losses (RMB)
Net cash flow arising from operating
2,766,372.02 -1,745,526.28 258.48% 2,432,068.08
activities (RMB)
Basic earnings per share (RMB/Share) -0.0073 -0.0205 64.39% 0.0069
Diluted earnings per share
-0.0073 -0.0205 64.39% 0.0069
(RMB/Share)
Return on Equity -3.52% -9.27% 62.03% 3.01%
Changes over end of
End of 2016 End of 2015 End of 2014
last year
Total assets (RMB) 105,444,153.63 104,887,596.60 0.53% 114,080,998.28
Net assets attributable to shareholder
74,276,415.44 76,937,467.93 -3.46% 84,415,334.33
of listed company (RMB)
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
VIII. Quarterly main financial index
In RMB
Fourth
First quarter Second quarter Third quarter
quarter
Operating income 8,524,404.50 3,538,393.10 3,582,335.33 6,063,750.58
Net profit attributable to shareholders of the listed
1,448,307.91 -1,276,185.39 -1,835,620.17 -997,554.84
company
Net profit attributable to shareholders of the listed
1,379,388.41 -1,284,671.89 -1,835,620.17 -2,331,786.32
company after deducting non-recurring gains and losses
Net cash flow arising from operating activities 3,015,764.60 -1,562,067.16 -143,312.76 1,455,987.34
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2016 2015 2014 Note
Gains/losses from the disposal of non-current asset (including the
380,866.43 -90,560.75 5,119,583.45 -
write-off that accrued for impairment of assets)
Capital occupation fees charged by non financial enterprises
961,165.05 422,000.00 -
recorded in the current profits and losses
Other non-operating income and expenditure except for the
69,606.00 1,664,699.64 93,891.05 -
aforementioned items
Total 1,411,637.48 1,996,138.89 5,213,474.50 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company's main business is hotel accommodation and catering services. Procurement of goods is mainly the
goods and materials necessary for hotel and catering operations by taking the principle of low price and fine
quality, some goods are purchased by directly signing purchase contracts with suppliers, and some good are
purchased by procurement agents. The selling is mainly based on internet marketing and supplemented by the
individual travelers of non-internet marketing and business and the tourists from travel agencies. The hotel is
located at the central zone of Dadonghai scenic spot in Sanya City, Hainan Province, and it has become a member
of the nationwide famous hotels because of the convenient transportation, beautiful environment, long history, and
rich culture. However, in recent years, the local high-, middle- and low-grade hotels or guesthouses numerously
emerge, resulting in the supply much larger than the market demand, the industry competition is rather fierce, and
the pressure of decline in business remains.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Numbers declined mainly because, the house and buildings, held for earning rents, are transfer to the
Fixed assets
investment real estate for accounting
Numbers declined mainly because, the land-use right, held for earning rents, are transfer to the investment
Intangible assets
real estate for accounting
Investment real Numbers increased mainly because, the house and buildings as well as land-use right, held for earning
estate rents, are transfer to the investment real estate for accounting
Financial assets Numbers declined mainly because, equity of Sanya Xiangyu E-Business Co., Ltd. are transferred in the
available for sale period
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Whether or not the Company complies with disclosure requirement of the special industry
No
司公限有份股心中游旅海东大南海 2016 文全告报度年年
The company takes hotel accommodation and catering services as the principle works, locates at Dadonghai bay
which is one of the China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has the
maximum passenger flow volume in Sanya City, and is about a 5-minute drive from downtown of Sanya City and
about a 30-munite drive from Sanya Phoenix Airport. The hotel is only tens of meters distant from the sea level,
possesses beautiful landscaping full of blooming flowers all the year round, and enjoys exceptional geography,
natural environmental advantages. The hotel has opened for more than two decades which is one of the oldest
hotels in Sanya and has received many domestic and foreign heads of state and national leaders. In the recent
years, the company has comprehensively upgraded and rebuilt the hotel’s software and hardware facilities, further
improved the hotel's internal and external business environment, and effectively enhanced the business
competitiveness. Currently, the management of the company’s hotel is still in the front rank among hotels in the
same area, with the same scale, and at the same level.
In the future work, the company will keep trying to improve the hotel’s internal and external business
environment, strengthen the sales efforts and the staff construction, and further improve the operational capability.
During the reporting period, the company's core competence had no significant change.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section IV Discussion and Analysis of Operation
1. Introduction
During the reporting period, the company realized main business income of 21,708,900 Yuan, increased by
5,823,000 Yuan compared with the same period last year, an increase of 36.66%; investment income of 1,390,900
Yuan, increased by 968,900 Yuan compared with the same period last year, an increase of 229.60%; operating
profit loss of 2,681,800 Yuan, decreased by 6,370,200 Yuan compared with the same period last year, a decrease
of 70.37%; net non-operating income of 20,700 Yuan, reduced by 1,553,400 Yuan compared with the same period
last year, a decrease of 98.68%; net profit loss of 2,661,100 Yuan, decreased by 4,816,800 Yuan compared with
the same period last year, a decrease of 64.41%.
During the reporting period, the Company focus on market-oriented and use marketing strategy in a flexible way
to expoile the sales channel, meanwhile, strengthening enterprise culture construction as well as the employee
team-building, making efforts to improve product’s quality, strictly controlling the cost management, perfect the
Company’s internal control system in order to reduce the risks and consumptions for more income earns and less
expenditure costs, we completed the operation targets that formulated at beginning of the year basically. Main
works are as:
1. Market-oriented, use marketing strategy in a flexible way to expoile the sales channel
The Company made a flexible product price and sales mode with the market-oriented in the Period, continues to
enlarge the network marketing channel and sales ability. We ensuring the leading role of individual tourists and
supplemented by travel agency individual tourisits and business tourisits, enhanced co-operation with the leading
travel website in China as Ctrip, Qunar, Tuniu, alitrip, Asia Travel, T-mall shop of the Hotel organization.
Expanding the sales on net through making the best of network channels and e-business platform. We further
maintain regular clinets, and develop the direct travel agency in first/second-tier cities in East China, South West
China and South China, increased the sales channel of team and invidual of of the travel agency. Initiated the
incentive mechanism for all employees, fully mobilized the enthusiasm of all staffs for increasing the sales
volume. The Company achieved revenue of main business of 21.7089 million Yuan in the period, increased 5.823
million Yuan by comparing with the year earlier with 36.66% up.
2. People-oriented, strengthen the enterprise with high-quality, strive to improve product qualifty and enhace the
competitive-ness of enterprises
In reporting period, in line with the Human-Oriented employment ideality, we continously enriched the culture life
for employees, creat a harmonious working enviornment and strengthen the construction of enterprise culture
and staff-building. At the same time, create new management mechanism, motivate and mobilized the enthusiasm,
initiative and creativity of the staff. Based on the management ideal of “strengthen the enterprise with
司公限有份股心中游旅海东大南海 2016 文全告报度年年
high-quality”, we constantly strengthen the hotel management and carried out skill training in pre-job for their
basic information and the after-job for business ability improvement. Enhance the service standards and
consciousness, as well as the sense of responsibility and quality, effectively improved the service quality and
management standards, and highering the quality of the hotel and comprehensive competitiveness.
3. Strictly curb the costs and budget management, improve internal control mechanism, reducing risks and
consumptions, increase revenue and reduce expenditures, safety in production to maximize the interest of the
enterprise
During the Period, the Company focus on financial management, further improve the procurement management
mechanism and budget management, with the price inquiry on internet and within the hotel industry, making
multiple channels in aspect of purchasing costs, we scientificaly controls the management costs by shopping
around, strictly control vary expenses in reasons. Frequent inspection and repair, and prohibit vary wasting of
resources, the reasonable procurement costs and revenue cost are being improve effectively. Meanwhile, continues
to improve the IC mechanism, enhance the regualation and implementation of the IC, strengthen the effective
implementation in IC, increase revenue and reduce expenditures, safety in production for improving the operation
efficiency, guarantee a safy operation and maximized the interest of the Company.
In 2017, the Company continue to consolidate and expand sales channels, improve the hotel’s quality and service
standards, enhance the comprehensive competitveness, proactively promote the material asset reorganization, to
laying out a solid foundation for sustained, stable and healthy development of the Company.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of Operation”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2016
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y
revenue revenue
Total of operation
21,708,883.51 100% 15,885,922.90 100% 36.65%
revenue
According to industries
Tourism catering
19,117,791.52 88.06% 15,885,922.90 100.00% 20.34%
service
Other business 2,591,091.99 11.94%
司公限有份股心中游旅海东大南海 2016 文全告报度年年
According to products
Room revenue 16,914,028.50 77.91% 12,264,036.40 77.20% 37.92%
Catering
entertainment 2,203,763.02 10.15% 3,621,886.50 22.80% -39.15%
revenue
Other business
2,591,091.99 11.94%
revenue
According to region
Hainan area 21,708,883.51 100.00% 15,885,922.90 100.00% 36.65%
(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □ Not applicable
Whether or not the Company complies with disclosure requirement of the special industry
No
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operating Gross profit se of gross
Operating cost se of operating se of operating
revenue ratio profit ratio
revenue y-o-y cost y-o-y
y-o-y
According to industries
Tourism catering
19,117,791.52 9,693,974.20 49.29% 20.34% 23.13% -1.15%
service
Other business 2,591,091.99 564,466.42 78.22%
According to products
Room revenue 16,914,028.50 8,561,353.33 49.38% 37.92% 18.15% 8.47%
Catering
entertainment 2,203,763.02 1,132,620.87 48.61% -39.15% 80.74% -31.31%
revenue
Other business
2,591,091.99 564,466.42 78.22%
revenue
According to region
Hainan area 21,708,883.51 10,258,440.62 52.75% 36.65% 30.30% 2.31%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(3) Income from physical sales larger than income from labors
□ Yes √ No
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Industry classification
Industry classification
In RMB
2016
Increase/de
Industries Item Ratio in Ratio in operation
Amount Amount crease y-o-y
operation cost cost
Tourism catering Raw
1,132,620.87 11.04% 626,661.16 7.96% 80.74%
service material
Tourism catering Salary
1,526,437.63 14.88% 766,535.44 9.74% 99.13%
service welfare
Tourism catering Water and
2,909,128.71 28.36% 1,164,313.51 14.79% 149.86%
service electricity
Tourism catering Depreciatio
2,271,348.02 22.14% 2,340,890.80 29.73% -2.97%
service n
Tourism catering
Repair cost 713,218.96 6.95% 449,997.10 5.72% 58.49%
service
Knitted and
Tourism catering
Cotton 2,640.00 0.03% 458,835.00 5.83% -99.42%
service
Goods
Tourism catering
Washing fee 471,750.30 4.60% 314,587.82 4.00% 49.96%
service
Tourism catering
Total cost 9,693,974.20 94.50% 7,873,049.71 100.00% 23.13%
service
Note
Explanation on changes:
1. Raw material increased mainly due to the growth of catering entertainment income;
2. Salary welfare increased mainly because 1)13 employee of PA are classify to housekeeping department in the period; 2)
expenditure increased in the housekeeping employees; 3) the salary standards improve;
3. Water and electricity increased mainly because the electricity, less calculated in previous from Sanya Power Bureau;
4. Repair cost increased mainly because more reform of the equipment and facilities in the period;
5. Knitted and Cotton Goods declined mainly because we change the hotel linen for guest room last year;
司公限有份股心中游旅海东大南海 2016 文全告报度年年
6. Washing fee increased mainly due to the growth of business.
(6) Whether the changes in the scope of consolidation in Reporting Period
□ Yes √ No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 6,082,010.47
Proportion in total annual sales volume for top five clients 28.02%
Ratio of related parties in annual total sales among the top five
0.00%
clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
Sanya Haolide International Travel
1 2,211,935.00 10.19%
Service Co., Ltd.
Shanghai Hecheng International Travel
2 1,479,261.36 6.81%
Service Co., Ltd.
Qunar (Tianjin) International Travel
3 865,266.00 3.99%
Service Co., Ltd.
Alipay (China) Network Technology Co.
4 856,740.11 3.95%
Ltd.
Beijing Jiaxin Haoyuan Information
5 668,808.00 3.08%
Technology Co. Ltd.
Total -- 6,082,010.47 28.02%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 4,939,277.89
Proportion in total annual purchase amount for top five suppliers 89.46%
Ratio of related parties in annual total sales among the top five
0.00%
suppliers
Information of top five suppliers of the Company
Serial Name Sales (RMB) Proportion in total annual sales
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Sanya Power Supply Bureau of Hainan
1 2,039,627.80 36.94%
Power Grid
2 Liu Wunan 1,584,833.47 28.71%
3 Sanya Zhengzhuang Industrial Co., Ltd. 509,937.00 9.24%
Sanya Sinofrench Water Supply Co.,
4 452,434.93 8.19%
Ltd.
5 Sanya Yunwang Food Co., Ltd. 352,444.69 6.38%
Total -- 4,939,277.89 89.46%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
3. Expenses
In RMB
Increase/de
2016 2015 crease Note of major changes
y-o-y
Sales Some of the assets are listed as investment real estate in the
4,931,333.26 5,722,072.82 -13.82%
expense period, the depreciation expenses declined
Manageme Taxes (taxes declined due to the change of accounting policy)
9,374,635.91 10,272,262.86 -8.74%
nt expense and business entertainment costs declined
Financial
-193,645.29 -109,213.80 -77.31% Interest income from savings increased
expense
4. R&D expenses
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2016 2015 Y-o-y changes
Subtotal of cash in-flow from
23,114,982.69 20,454,444.34 13.01%
operation activity
Subtotal of cash out-flow from
20,348,610.67 22,199,970.62 -8.34%
operation activity
Net cash flow from operation
2,766,372.02 -1,745,526.28 258.48%
activity
Subtotal of cash in-flow from 14,920,000.00 9,429,510.00 58.23%
司公限有份股心中游旅海东大南海 2016 文全告报度年年
investment activity
Subtotal of cash out-flow from
10,258,516.27 10,451,881.00 -1.85%
investment activity
Net cash flow from investment
4,661,483.73 -1,022,371.00 555.95%
activity
Net increased amount of cash and
7,427,855.75 -2,767,897.28 368.36%
cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
1. Net cash flow from operation activity has a y-o-y growth of 258%, mainly because the revenue from business increased
dramatically, and sales expenses and management expenses have less expenditure in the Period;
2. Net cash in-flow from investment activity has a y-o-y growth of 58%, mainly because obtained transfer income from selling equity
of Sanya Xiangyu E-Business Co., Ltd. and received income from debt investment;
3. Net cash flow from investment activity has a y-o-y growth of 556%, mainly because obtained transfer income from selling equity
of Sanya Xiangyu E-Business Co., Ltd. and received income from debt investment
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable √ Not applicable
III. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Ratio in total
Amount Note Whether be sustainable
profit
Investment Income from debt investment and equity Equity transfer income is not
1,390,918.55 52.27%
income transfer sustainable
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of 2016 End of 2015
Ratio in Ratio in Ratio
Notes of major changes
Amount total Amount total changes
assets assets
The increase of business revenue,
Monetary fund 27,210,248.01 25.81% 19,782,392.26 18.86% 6.95% debt investment income and equity
transfer income
Account 690,444.72 0.65% 460,197.28 0.44% 0.21% The business in the Period
司公限有份股心中游旅海东大南海 2016 文全告报度年年
receivable increased
Inventory 219,179.72 0.21% 218,075.43 0.21% 0.00% In the standard change scope
The leasehold house& buildings as
Investment real
9,333,527.55 8.85% 8.85% well as land-use-right are change
estate
their listed item
The leasehold house & buildings
Fix assets 40,395,680.91 38.31% 51,279,986.58 48.89% -10.58%
are listed in investment real estate
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Assets right restriction till end of reporting period
Nil
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
9,000,000.00 9,000,000.00 0.00%
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The Company has no application of raised proceeds in the Period
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
√Applicable □ Not applicable
The
net
profits
contri Does the
The
buted plan
propo
to the The impleme
rtion
listed owner nted on
of the
comp ship schedule
net
any of or not,
profits
by the prope explain
Transa that Relat The
equity rty the
ction Impa the ed associa
from Pricin rights reasons Date Index
The price ct on equity transa tion
Count Equity the g that and of of
date (in 10 the - for ction with
erpart for sale begin princi invol counterm discl discl
of sale thousa Com -sale confir the
ning ple ved easures osure osure
nd pany contri med counte
of has the
Yuan) buted (Y/N) rparty
curren transf Company
to the
t erred have
listed
period totall taken for
comp
to the y not
any in
date (Y/N) impleme
total
of nted on
profits
sale(i schedule
n 10
thousa
nd
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Yuan)
Sanya
Xiangy No
Negot
Chen u adver No
2016- 14.29 iated
Gungr E-Com 493 38 se No associa Yes Yes
11-21 % pricin
ong merce effec tion
g
Co., ts
Ltd.
VII. Analysis of main holding company and stock-jointly companies
□ Applicable √ Not applicable
The Company had no information of main holding company and stock-jointly companies disclosed in the reporting period.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
1. Industrial development trend and competition facing the Company
Sanya is the only tropical seaside city in China with a world-leading eco-enviornment, and has a wonderful air
quality that can be numbered in China, it owns an abound marine resources with unique rescouce advantage.
Sanya has a geographical position advantage and under the help of preferential policy of duty-free for
theinternationalization of tourism island, with the improvement of people’s life quality in rencent years, and
enhancment of tourism consumption consciousness while haze air enviornment outside the island, the tourism
market prospects has a good trend in Hainan. However, in reporting period, the whole world has a slump in
economic resurgence, the tourism market lack of vitality, the supply far greater than the demand while home inn
hotel rapidly expanding blindly, the market competition comes more and more intensify. In addition, with the
soring operation costs and expenditures for the salary of hospitality industry in Sanya and shrinking operation
profit, the hotel industry faced a downward pressure on operation.
In the future work, the company will continue to strengthen the updating and transformation of the hotel’s
equipment and facilities, improve and upgrade the hardware and software equipments and facilities and the quality
of internal and external business environment, enhance the construction of enterprise culture and staff teams,
improve service level and service quality, actively expand the sales channels, make full use of the internet
platform, expand the sales network, increase the market share, and further improve the management level and core
competitiveness.
2. Future development plans and operation plan for year of 2016
(1) Market-oriented, continues to improve the quality management of the software equipment and facilities in the
Hotel, enhancing the hotel brand image, expanding market channel, and center with enterprises performance,
making the brand more bigger and stronger drived by pioneer and invent.
(2) Continue to expand financing channels, proactively push forward the material assets reorganization, enrich the
industrial struction, widen the company size, increased more profit points in order to strengthen the sustainablility,
stable and healthly of the operation.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(3) Continue to strengthen the standard management of internal control, perfect the corporate governance structure,
standardize the management and operation, and effectively control the risks.
3. Fund demands and use plan required for the future development of the Company
The Company utilizes owned funds or financing methods to raise the funds demanded for development, and
completes the development planning of the Company.
4. The risks may cause adverse effects on the future development strategy and realization of operation target of
the Company
(1) Marco Policy risks
In order to normalize and optimize tourism market or further to promote clear-party construction, related
departments may further issue some relative policies. While these polices may cause restrain and effect on
regional tourism development. Main business income may be affected since we are engaged in tourism service.
Countermeasures: The Company will further to improve the hard and soft equipments and facilities of the hotel
while expanding the business scope, and win more market shares via high-class service and comfortable
environment so as to ensure the main business income level.
(2) Natural disaster risks
In recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, where
has high incidence of disastrous weather in summer. If Sanya becomes the landing place of typhoon, it may cause
great damages to the facilities of the Company and affect the Company’s normal operation.
Countermeasures: The Company will strengthen the construction and maintenance for infrastructure, continue to
buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting
natural disasters.
(3) Risks of HR
Demand for talend in aspect of hotel sales and management are increasingly due to the constantly rise of hotel
industry, flow of hotel talented people comes more widespread and more frenquent, we may face the risks of
development restrained from brain drain.
Countermeasure: we will continue to improved the talent introduction, taining system, incentive mechanism,
remuneration and welfare as well as insurance mechanism, strive to attract talent, cultivate them and retain them.
Meanwhile, strengthen staff quality and skills as well as the manaegment ability, further putting more efforts in
enterprise culture construction, enhance the cohesion in the Company, guarantee a stable of the core managemers
and skill technicians.
(4) Operational risks of main business
With the ceaseless development of global tourist industry constantly and ceaseless rising of high-class,
middle-class and low-class hotels, the tourist sources keep shunting, and the competition of tourism service
industry in Sanya becomes increasingly fierce. While the main business of the Company is just a small-scale hotel,
as the main business is single and the business scope is limited, the tourist market conditions and tourist quantity
directly make significant affects on the company performance.
Countermeasure: made a scientific management and decision-making procedures, strengthen the awarenes of risk
prevention, building and improving relevant mechanism and regulized the management in the Company.
Furthermore, increase the sales ability, on base of the former saels networ, continues to exploit foreign high-end
司公限有份股心中游旅海东大南海 2016 文全告报度年年
tourism market under the superior geographical location and enviornment for highering the occupancy rate.
Besides, we will push forward the material asset reorganization, expanding opertaion projects, enrich the
industrial structure for increasing the profit increasing point.
(5) Termination of reorganization risk
Material asset reorganization has greater uncertainty, the reorganization including but not limited to the risks of
approval risks and termination risks.
Countermeasure:we explore the feasibility of reorganization scheme with relvant parties and intermediary organ,
careful considerate vary woks in the process of reorganization, read up relevant policies and strictly perform the
information disclosure responsibility, advance the progress of material asset reorganization with all strength.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □ Not applicable
Time Way Type Basic situation index of investigation
Telephone Investor surnamed Lin in Hainan inquired about the disclosure time of the
2016-10-13 communi Individual
third quarterly report of 2016, no material has been provided yet
cation
Telephone Investor Mr./Ms. Huang from Guangzhou asking about the employee stock
2016-10-26 communi Individual
how to listed for trading, no material has been provided
cation
Telephone Investor Mr/Ms/ Zhang from Shanghai asking about the commitment of
2016-11-02 communi Individual reorganization progress by majority shareholders, no material has been
cation provided
Telephone Investor surnamed Wang in Anqing inquired about the company’s business
2016-11-22 communi Individual
assets and future development, no material has been provided yet
cation
Telephone Investor surnamed Jiang in Zhejiang inquired about the company’s business
2016-12-08 communi Individual
condition in 2016, no material has been provided yet
cation
Telephone Investor surnamed Zhao in Chendu inquired about the company’s business
2016-12-27 communi Individual
assets and future development, no material has been provided yet
cation
Reception (times)
Number of hospitality
Number of individual reception
Number of other reception
Disclosed, released or let out major undisclosed
No
information
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section V. Iimportant Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
According to the auditing reports issued by certified public accountants, the net income realized in nearly three
years (including the reporting period) was used to make up the losses in the previous year; the undistributed profit
during this reporting remained a minus. The Company did not take profit allocation nor capitalization of capital
reserve during the reporting period.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Ratio in net profit
Net profit attributable to common
Year for Amount for attributable to common Amount for Proportion for
stock shareholders of listed
bonus cash bonus stock shareholders of cash bonus by cash bonus by
company in consolidation
shares (tax included) listed company contained other ways other ways
statement for bonus year
in consolidation statement
2016 0.00 -2,661,052.49 0.00% 0.00 0.00%
2015 0.00 -7,477,866.40 0.00% 0.00 0.00%
2014 0.00 2,503,486.47 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
√Applicable □ Not applicable
Com Com
Commitments Promise Type Content of commitments mitm mitm Implementation
ent ent
司公限有份股心中游旅海东大南海 2016 文全告报度年年
of date term
commi
tments
Since the
Company's
On May 30, 2007, Luoniushan Co., Ltd. implementation of
made commitments in the Company’s reform of
\"Instructions for reform of non-tradable non-tradable
shares\" (Revision) and \"Instructions for shares, the
Company has
reform of non-tradable shares\"
avoided the risk of
(Abstract of revision) that in view of delisting and
Dadonghai Company’s losses in improved the
successive years and on the verge of financial situation
Luoniush Other With accordingly with
Commitments for delisting, in order to reverse the 2014-
an Co., commi in 3 efforts of all
Share Merger Reform company's business difficulties, 06-27
Ltd tments years parties. Till end of
improve profitability and recover the the report
continuous business capacity, disclosed,
Luoniushan Co., Ltd., the controlling Luoniushan Co.,
shareholder of Dadonghai Company Ltd. is planning
the commitment
made commitments to actively seek
performance,
restructuring parties to reorganize the stock of the
assets of Dadonghai Company at the Company
appropriate time. suspension for
planning a major
asset restructuring
Commitments in report of
acquisition or equity change
Commitments in assets
reorganization
Commitments make in initial
public offering or re-financing
Equity incentive commitment
Based on the confidence in the future
sustainable development of Dadonghai,
as well as the long-term investment
commi
value of domestic capital market,
tments
Luoniushan Co., Ltd. shall take With
Luoniush of
Other commitments for medium practical action and participate in 2015- 6
an Co., increa Completed
and small shareholders maintaining the capital market stability. 07-10 mont
Ltd sing or
In accordance with the relevant hs
decrea
provisions of China Securities
sing
Regulatory Commission and Shenzhen
Stock Exchange, Luoniushan Co., Ltd.
plans to take chances to increase
司公限有份股心中游旅海东大南海 2016 文全告报度年年
holding of shares in Dadonghai through
Shenzhen Stock Exchange within six
months from the date of this
announcement, the amount of increased
holding of shares should be no less than
RMB 5 million yuan, and does not
automatically reduce holding of shares
in Dadonghai during the increased
holding period, within six months after
the increased holding of shares and
within the legal time limit.
Completed on time(Y/N) Yes
If the commitments is not fulfilled
on time, shall explain the specify N/A
reason and the next work plan
2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√Applicable □ Not applicable
The accounting policy has follw changes from a year eariler:
Pursuit to the Accounting Standards for Business Enterprise and Provisions Concerning the Accounting
Treatments on Value-Added Tax from Treasury Dept., relevatn accounting policies have the follow changes:
(i) In line with the relevant cost expenses regulated in Accounting Standards for Business Enterprise , the period
charge with guest house concerned calcurated in “business expenses”, pursuit to former industry accounting
system, will re-classified to “Business costs”
1. Overview of accounting policy change
司公限有份股心中游旅海东大南海 2016 文全告报度年年
The former accounting policy adopt the calculation method of cost expenses regulated in accounting policy of
food services (before 2000), that is, expenses of fixed assets depreciation with guest house concerned directly will
reckon in the “business expenses (sales expenses)”, thus the company has a higher gross profit rate in guest house
income. At present, in line wih relevant regulation of the relevant cost expenses in Accounting Standards for
Business Enterprise, and reference o the calculation from other hotel enterprise, the expenses of fixed assets
depreciation with guest house concerned directly will re-classified to “business cost” for accounting.
2. Accounting policy before changed: the period expenses concerned with the revenue from guest room, including
salary, welfare, material consumption, utility bills, knitwear and depreciation, will listed in “business expenses”
for calculation;
3. Accounting policy after changed: the period expenses concerned with the revenue from guest room, including
salary, welfare, material consumption, utility bills, knitwear and depreciation, will listed in “business cost” for
calculation;
4. Time of change: the accounting policy will implemneted since 1 January 2016, and carried out retroactive
adjustment for previosu items
5. Impact on the Company
The above mentioned changes impact the numbers of business cost and sales expenses that listed in profit
statement only, increase the “business cost” in profit statement to 7,246,388.55 Yuan for the year, reduced “sales
expenses” in profit statemetn to 7,246,388.55 Yuan; The numbers of “business cost” in last year increased to
6,663,327.56 Yuan while reduced the “sales expenses’ to 6,663,327.56 Yuan for the year earier. Ohterwise, there
are no impact on the total profit, net profit, net asstes and toal asstes of the Company that released previous.
(ii) Relevant accounting poclisy changed in line with the Provisions Concerning the Accounting Treatments on
Value-Added Tax issued from Treasury Dept. on 3 December 2016
1. Overview of accounting policy change
In order to implemented the ‘Notice on Tax Policy Concerning Nationawide Implementation of VAT Pilot
Program From Business Tax”, the “Provision of Accounting Treatment on VAT” issued by Treausry Department
on 3 December 2016, regulated the accounting treatment on VAT changed from business tax, and implemented
since 1 May 2016.
2. Accounting policy before and after the changes
(1) the taxable expenses calculated with “business tax and surcharge” will changed to “taxes and surchager”;
(2) The real estate tax, land-use right tax, vehicle and vessel usage tax and stamp tax occurring in operation
activities wil re-classified to “taxes and surcharge”;
(3) the taxes prepaid or over-paid in ‘payable tax” will re-classified to “other current assets”
3. Time of change: the accounting policy will implemneted since 1 May 2016
4. Impact on the Company
(1) The “business tax and surcharge” in profit statement adjsuted to item of “taxes and surcharge”;
(2) Impact on the total asstes and total liability in balance sheet, the ending balance of “other current assets” in
balance sheet will increased 1,876,449.22 Yuan, ending balance of “payable taxes” in balance sheet increased
1,876,449.22 Yuan;
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(3) The “taxes and surcharge” in profit statement increased 791,063.74 Yuan in the year while decreased
“administrative expenses” to 791,063.74 Yuan for the year. There are no impact on the total profit, net profit and
net asstes of the Company that released previous.
The above mentioned policy changes will not be retroactive adjusted.
(iii) Pursuit to relevant regulation of “Accounting Standards for Business Enterprise No.3- Investment Real
Estate”, the house and lands used for leasing will calculate by cost in “Investment real estate” since 1 Janaury
2016, which shows no impact on the total asstes, total liabilities, total profit and net profit of the Company for the
year.
Major accounting estimates has no changes in the peirod, calculation method has no changes except the above
mentioned.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the period.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm BDO CHINA Shu Lun Pan Certified Public Accountants LLP
Remuneration for domestic accounting firm (in 10
thousand Yuan)
Continuous life of auditing service for domestic
accounting firm
Name of domestic CPA Zhu Jianqing, Liu Zebo
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
On 20 April 2016, the Company holding the 8th meeting of 8th session of the Board, and decided to appointed
BDO CHINA Shu Lun Pan Certified Public Accountants LLP as the auditing institute of the internal control for
year of 2016 and the decision has been deliberated and approved in general meeting of 2015. During the period,
auditing fee 80,000 Yuan in total has been paid to the institute for internal control auditing.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XVI. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □Not applicable
Whet
Tradi
her
Relat ng
ed over Cleari Avail
Propo limit
Type Conte transa the ng able Date Index
Relat rtion
of nt of Pricin ction appro form
Relati ed in appro simila of of
Related relate relate g amou for
onshi transa simila ved
party d d princi nt ved relate r disclo discl
p ction r
transa transa ple (in 10 (in 10 d
price transa limite marke sure osure
ction ction thous transa
ctions thous
and d or ction t price
Yuan) and
not
Yuan)
(Y/N)
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Same Same
as the as the
First
Luoniu transa transa
major Consu Acco Mark Mark
shan 0.15 ction ction
ity mptio mmod et et 2.96 0 Yes - -
Co., % with with
share n ation price price
Ltd. non-r non-r
holder
elated elated
party party
Total -- -- 2.96 -- 0 -- -- -- -- --
Detail of sales return with major
N/A
amount involved
Report the actual implementation of
the daily related transactions which
were projected about their total N/A
amount by types during the
reporting period
Reasons for major differences
between trading price and market Not applicable
reference price
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
The Company had no contact of related credit and debt in the reporting period.
5. Other significant related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
√Applicable □ Not applicable
Note of leasing
Item Tenant Lease life Term of lease
B/F of the Hotel Ma Ming (Hainan Hangpai Food Co., 5 years 2016-01-01 to 2020-12-31
Ltd. )
Shopping mall –B/F Xu Jipeng 3 years 2016-11-15 to 2019-11-14
A/F ground floor Chen Junwei 3 years 2016-03-01 to 2019-02-28
Seaside stall and wood Sanya Leda Food Management Co., 5 years 2016-05-01 to 2021-04-30
house Ltd.
Seaside locker room Zhong Zhengao 3 years 2016-12-01 to 2019-11-30
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
√Applicable □ Not applicable
Leasing
The
assets Leasing Basis for Whether
impact of Associ
involved in Lease income determini be
Name of Name of the Lease start leasing ation
Leasing assets the amount termination (in 10 ng the related
lessor leasing party date income on relatio
(in 10 date thousand leasing transacti
the n
thousand Yuan) income ons
company
Yuan)
The
Ma Ming (Hainan
B/F restaurant Increase
Compan Hangpai Food Co., 1,886 2016-01-01 2020-12-31 75.6 Contract No N/A
in first floor income
y Ltd. )
The
Sanya Leda Food
Seaside stall and Increase
Compan Management Co., 653 2016-05-01 2021-05-30 180 Contract No N/A
wood house income
Ltd.
y
The Seaside locker Increase
Zhong Zhengao 10 2016-11-01 2019-10-31 36 Contract No N/A
Compan room income
司公限有份股心中游旅海东大南海 2016 文全告报度年年
y
2. Major Guarantee
□Applicable √ Not applicable
The Company had no guarantee in the reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XVIII. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
□ Applicable √ Not applicable
2. Execution of other social responsibility
Nil
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
No
Whether the social responsibility report released
□Yes √ No
XIX. Explanation on other significant events
√Applicable □ Not applicable
1. On 8 March, the Company received a written decision of administrative penalty ZJFZi [2001] No.3 “Penalty Decision on Hainan
Dadonghai Tourism Center (Holdings) Co., Ltd. in Violation of Securiteis Laws and Regulations ” from CSRC for false profit and
rule-violation. Penalty including confiscate their illegal income of 19.31 million Yuan and improse a fine of 0.5 million Yuan. On 20
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Feburary 2017, the Company paid the penalty in full to CSRC.
2. The Lawyer’s Letter received by the Company: by preliminary accounting from Sanya Power Bureau, the 10313373 Kwh
electricity was understate under the name of South China Hotel from July 2006 to April 2016. Found more in “Notice of Lawyer’s
Letter received by Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.” (Notice No.: 2016-016) released on Securities Times,
Hong Kong Commercial Daily and Juchao Website dated 31 May 2016. The Company is communicated and negotiates with Sanya
Power Bureau in the above mentioned event without negotiation results so far.
XX. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
B
o
n
Capita
New u
lizatio
share s
Proporti n of Proporti
Amount s s Others Subtotal Amount
on public on
issue h
reserv
d a
e
r
e
s
I. Restricted shares 15,073,200 4.14% -4,617,513 -4,617,513 10,455,687 2.87%
1. State-owned shares
2. State-owned corporate
2,369,400 0.65% 2,369,400 0.65%
shares
12,703,800 3.49% -4,617,513 -4,617,513 8,086,287 2.22%
3. Other domestic shares
Including: Domestic legal
12,571,800 3.45% -4,618,800 -4,618,800 7,953,000 2.18%
person shares
Domestic natural person
132,000 0.04% 1,287 1,287 133,287 0.04%
shares
II. Unrestricted shares 349,026,800 95.86% 4,617,513 4,617,513 353,644,313 97.13%
261,026,800 71.69% 4,617,513 4,617,513 265,644,313 72.96%
1. RMB common shares
2.Domestically listed
88,000,000 24.17% 88,000,000 24.17%
foreign shares
III. Total shares 364,100,000 100.00% 0 0 364,100,000 100.00%
Reasons for share changed
√ Applicable □ Not applicable
In 2016, Chen Gang (formerly known as Chen Shengguang) by-elected as staff supervisor of the Company, he
holds 1287 A-share that un-tradable for executives. And during the follow-up process of non-tradable shares
reform, relevant shares are released in line with relevant regulations and some of the shareholders are repaying the
advance money for another, thus the share structure of the Company changed in the Period while total shares
remain the same.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√ Applicable □ Not applicable
In Share
Numb
Number of er of
Number
shares new Number of
of shares
restricted shares shares Restriction
Shareholders’ name released Released date
at restrict restricted at reasons
in the
Period-beg ed in Period-end
Year
in the
Year
Executive
Comply with relevant
Chen Shengguang 0 0 1,287 1,287 un-tradable
regulations
shares
Legal After remove
Xiao Tiefeng 132,000 0 0 132,000 commitment in restricted procedures
share reform complete
Legal After remove
Sanya Real Estate Valuation Agent 924,000 0 0 924,000 commitment in restricted procedures
share reform complete
Hainan Hong Kong-Macao Legal After remove
International Trade Development Co., 924,000 0 0 924,000 commitment in restricted procedures
Ltd. share reform complete
Legal After remove
Haikou Dongfang Urban credit
924,000 0 0 924,000 commitment in restricted procedures
Cooperative
share reform complete
Legal After remove
Hainan Branch of Bank of
924,000 0 0 924,000 commitment in restricted procedures
Communications Co., Ltd.
share reform complete
Legal After remove
Shenyang Jin’an Industrial
831,600 0 0 831,600 commitment in restricted procedures
Corporation
share reform complete
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Legal After remove
Sanya Wangli Building Materials Sales 92,400 0 0 92,400 commitment in restricted procedures
share reform complete
Legal After remove
Hainan Nongken Sanya Timber Mill 46,200 0 0 46,200 commitment in restricted procedures
share reform complete
Legal After remove
Guangzhou Company of Hainan
660,000 0 0 660,000 commitment in restricted procedures
International Investment Co., Ltd.
share reform complete
Legal After remove
Southern Industrial and Trading
660,000 0 0 660,000 commitment in restricted procedures
Corporation
share reform complete
Legal After remove
Beijing Xueli Clothing Accessories
132,000 0 0 132,000 commitment in restricted procedures
Co., Lt.d
share reform complete
Legal After remove
Guangzhou Dongzhan Industrial Co.
924,000 0 0 924,000 commitment in restricted procedures
LTD
share reform complete
Legal After remove
Sanya Zhongxing Development Co.,
2,541,000 0 0 2,541,000 commitment in restricted procedures
Ltd.
share reform complete
Legal After remove
Hainan Dadonghai Tourism Co. 739,200 0 0 739,200 commitment in restricted procedures
share reform complete
Legal
Yangpu Tongrong Investment
4,618,800 4,618,800 0 0 commitment in 2016-06-21
Management Consultation Co., Ltd.
share reform
Total 15,073,200 4,618,800 1,287 10,455,687 -- --
II. Securities issuance and listing
1. Security offering (without preferred stock) in reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common Total preference
Total common
stock shareholders Total preference shareholders with
stock
at end of last shareholders with voting voting rights recovered
shareholders in 19,104 16,945 0
month before rights recovered at end of at end of last month
reporting
annual report reporting period before annual report
period-end
disclosed disclosed
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
Total Amou
share
shareholder nt of Amount of
Proport Changes pledged/froz
ion of s at the restrict un-restrict
Full name of Shareholders Nature of shareholder in report en
shares end of ed ed shares
held period State Am
report shares held
of oun
period held
share t
Domestic non
Luoniushan Co., Ltd. 16.90% 61,515,370 325,100 0 61,515,370
state-owned corporate
Domestic nature
Pan Guoping 8.48% 30,879,791 0 0 30,879,791
person
First Shanghai Securities Limited Foreign corporate 2.62% 9,552,798 -208200 0 9,552,798
Changxin Fund- Shanghai Pudong
Development Bank - Gold Investment Other 1.93% 7,030,042 -923807 0 7,030,042
Asset No.2 Management Plan
HGNH International Asset
Management Co., Ltd – customer Foreign corporate 1.61% 5,859,302 5,859,302 0 5,859,302
deposit
Domestic nature
Hu Jianguo 1.56% 5,662,940 5,662,940 0 5,662,940
person
Yangpu Tongrong Investment Domestic non
1.27% 4,618,800 0 0 4,618,800
Management Consultation Co., Ltd. state-owned corporate
Domestic nature
Zhang Fengxiu 1.07% 3,901,372 3,901,372 0 3,901,372
person
司公限有份股心中游旅海东大南海 2016 文全告报度年年
China Investment Securities (HK)
Foreign corporate 1.00% 3,632,300 3,632,300 0 3,632,300
Co., Ld. – customer deposit
CITRINE CAPITAL LIMITED Foreign corporate 0.90% 3,265,200 3,265,200 0 3,265,200
Strategy investors or general legal person becomes top 10
N/A
shareholders due to rights issued
The Company is unknown whether there exists associated relationship or
Explanation on associated relationship or accordant action belongs to the consistent actor regulated by the Management Measure of
among the aforesaid shareholders Information Disclosure on Change of Shareholding for Listed Company
among the other shareholders.
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict shares held at Type of shares
Shareholders’ name
Period-end Type Amount
RMB common
Luoniushan Co., Ltd. 61,515,370 61,515,370
share
Domestically listed
Pan Guoping 30,879,791 30,879,791
foreign share
Domestically listed
First Shanghai Securities Limited 9,552,798 9,552,798
foreign share
Changxin Fund- Shanghai Pudong Development Bank RMB common
7,030,042 7,030,042
- Gold Investment Asset No.2 Management Plan share
HGNH International Asset Management Co., Ltd – RMB common
5,859,302 5,859,302
customer deposit share
RMB common
Hu Jianguo 5,662,940 5,662,940
share
Yangpu Tongrong Investment Management RMB common
4,618,800 4,618,800
Consultation Co., Ltd. share
RMB common
Zhang Fengxiu 3,901,372 3,901,372
share
China Investment Securities (HK) Co., Ld. – customer RMB common
3,632,300 3,632,300
deposit share
Domestically listed
CITRINE CAPITAL LIMITED 3,265,200 3,265,200
foreign share
Expiation on associated relationship or consistent The Company is unknown whether there exists associated relationship or belongs to
actors within the top 10 un-restrict shareholders and the consistent actor regulated by the Management Measure of Information
between top 10 un-restrict shareholders and top 10 Disclosure on Change of Shareholding for Listed Company among the other
shareholders shareholders.
Explanation on shareholders involving margin business
N/A
about top ten common stock shareholders with
司公限有份股心中游旅海东大南海 2016 文全告报度年年
un-restrict shares held
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: community collective holding
Type of controlling shareholders: legal person
Legal
person/perso
Controlling shareholders Date of foundation Organization code Main operation business
n in charge
of the unit
Business scope: planting and
breeding industry; initiating
industry; real estate
development and
management; building
decoration works; sales of
agricultural and animal
by-products, aquatic products
and feed processing;
machinery and automobile
and motorcycle parts,
electronic products, metal
Unified social credit
materials (except for the
Luoniushan Co., Ltd. Xu Zili 1987-12-19 code
monopoly), chemical products
9146000284089747P
(except for the monopoly)),
household appliances, modern
office supplies, stationery,
daily necessities, building
materials, sales of agricultural
and native products; the
development and construction
of trading market; leasing
services; warehousing
services; collecting and
remitting water and electricity
costs.
Equity of other domestic/oversea
Found more details in full text of Annual Report 2016 of Luoniushan Co., Ltd.(Short form of the
listed company control by
stock: Luoniushan, Stock code: 000735)
controlling shareholder as well as
司公限有份股心中游旅海东大南海 2016 文全告报度年年
stock-joint in report period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller of the Company
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Whether obtained right of residence of other countries or
Name of actual controller Nationality
regions or not
Xu Zili P.R.C No
Xu Zili, male, was born in 1966, is a senior engineer with a master degree. He
successively served as Vice President of Hubei Huangshi Mine Bureau Machinery;
General Manager of Haikou Animal Husbandry Machinery Engineering Co., Ltd.;
Chairman of Tianjin Baodi Agricultural Technology Co., Ltd.; he also served as
standing committee of the Haikou 13th CPPCC; Vice Chairman and General Manager of
Profession and title in latest five years
the Company from August 2006 to November 2011; serves as Chairman of the
Company since November 2011; he took as the 6th CPPCC member of Hainan
Province, the 13th session of the standing committee of CPPCC of Haikou City, the
deputy chairman of national federation of industry and agriculture industry chamber of
commerce and the deputy chairman of Hainan Entrepreneur Society.
Listed company in and out of China
N/A
controlled in past decades
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amo
unt of
Amou
Share share
nt of Share
s held s
shares Other s held
Work at decre
increas chan at
ing Se Ag Start dated of office End date of office perio ased
Title ed in ges perio
Name statu x e term term d-beg in
this (shar d-end
s in this
period e) (Shar
(Shar perio
(Share e)
e) d
)
(Shar
e)
Curr
Li ently
Chairman,
Yuanbi General in M 66 2001-10-25 2017-05-22 0 0 0 0
Manager
n offic
e
Curr
ently
Zhao Independent
in F 64 2014-05-22 2017-05-22 0 0 0 0
Man Director
offic
e
Curr
Tang ently
Independent
Guopin in M 52 2014-05-22 2017-05-22 0 0 0 0
Director
g offic
e
Curr
Leng ently
Independent
Mingqu in M 61 2014-05-22 2017-05-22 0 0 0 0
Director
an offic
e
Li Wei Director Leav M 55 2002-06-16 2016-05-30 0 0 0 0
司公限有份股心中游旅海东大南海 2016 文全告报度年年
e the
offic
e
Curr
ently
Liu
Director in M 48 2002-06-16 2017-05-22 0 0 0 0 0
Juntao
offic
e
Curr
Chairman of ently
Huang
supervisory in M 47 2002-06-16 2017-05-22 0 0 0 0 0
Wencai
committee offic
e
Curr
ently
Wang
Supervisor in F 50 2011-06-16 2017-05-22 0 0 0 0 0
Jialing
offic
e
Leav
Liu
e the
Xiangh Supervisor M 40 2014-05-22 2016-05-13 0 0 0 0 0
offic
ai
e
Curr
Fu Person in ently
Zongre charge of in M 49 2015-04-15 2017-05-22 0 0 0 0 0
n finance offic
e
Curr
Vice
ently
Wang president &
Hongju in F 40 2008-04-27 2017-05-22 0 0 0 0 0
an secretary of
offic
the Board
e
Curr
ently
Chen
Supervisor in M 51 2016-07-29 2017-05-22 1,287 0 0 0 1,287
Gang
offic
e
Total -- -- -- -- -- -- 1,287 0 0 0 1,287
司公限有份股心中游旅海东大南海 2016 文全告报度年年
II. Changes of directors, supervisors and senior executives
Name Title Type Date Reasons
Leave the
Li Wei Director 2016-05-30 For personal reason
post
Staff Leave the
Liu Xianghai 2016-05-13 For personal reason
Supervisor post
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive
Directors
Mr. Li Yuanbin: born in June 1950, Han nationality, Master degree, MBA degree, senior engineer. He once held
the position of Chairman of Board of Haikou Haiyuan Co. Ltd and Yangpu Tiandi Sunshine Industry Co., Ltd,
director and general manager of the Company, now he is chairman of the Board and general manager, vice
chairman of Hainan Entrepreneurs’ Association, and permanent member of Hainan Federation of Industry
Chamber of Industry & Commerce and Vice-president of Hainan Provincial Association for Beverages Hotels and
Food, and Vice-president of Hubei Commerce Association in Hainan Province.
Mr. Liu Juntao: born in Oct. 1968, Han nationality, graduate degree, EMBA of China Europe International
Business School. Mr. Liu once held the position of deputy director of Construction Bank branch, secretary of the
Board of Director of Luoniushan Co. Ltd., Deputy General Manager of the Company and Deputy General
Manager of Softto Co., Ltd., assistant president and Secretary of the Board of Tianmao Industry Group Co., Ltd.,
currently holds the post of Assistant President of AXA Insurance Co., Ltd. and serve as director of the Company
since 2002.
Ms. Wang Hongjuan, was born in Feb. 1976, Undergraduate Degree, an attorney; she serves as supervisor of the
Company and Office Director, now she serves as vice president and secretary of the Board of the Company. Serve
as the director of the Company since 2016.
Independent Directors
Ms. Zhao Man, born in February 1952, member of the CPC, Doctor of Economic, a professor and doctorial tutor.
Professional affiliations so far: member of social sciences commission of the Ministry of Education, committee of
experts member of the MHRSS, committee of experts member of the Ministry of Civil Affairs, director of
academic council of the Center for Social Security Study of Wuhan University, the key research center for social
sciences by CECC, standing director of The China Association for Labor Studies, standing director of China
Social Insurance Association, member of Advisory Committee of Hubei Provincial Peoples Government,
decision-support expert of CPC Hubei Provincial Committee, consultant expert of budget expert group for the
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Wuhan People’s Congress Standing Committee and member of Expert Consultation Committee of CPC Hubei
Provincial Committee Organization Department. Now she serves as independent director of Hubei Kaile
Technology Co., Ltd. , Mayinglong Pharmaceutical Group Co., Ltd., and Wuhan Mingde Biological Technologies
Co., Ltd. and she took post as independent director of the Company since May 2014.
Mr. Tang Guoping, born in August 1964, graduated from Zhongnan University of Economics and Law. Hold
Doctor Degree, a professor, Chinese CPA and member of CPC. He serves as professor in Zhongnan University of
Economics and Law-School of Accounting, the director of Chinese Accounting Society, and serves as
independent director of Cabio Biotechnology (Wuhan) Co., Ltd., Shengang Securities Co., Ltd., Shenzhen
ShenZhuangZong Decoration Co., Ltd., and Wuhan Boiler Co., Ltd. He participated in (2012) the China
Securities Regulatory Commission independent director training, and obtained the post qualification. He serves as
independent directors of the Company since May 2014.
Mr. Leng Mingquan, born in April 1955, on-job graduate and Master of Administration. He was secretary and
section chief of CPC Suizhou Municipal propaganda Department and director of Haikou Office of the Suizhou
Government. Now he serves as executive vice president, secretary and legal representative of the Confederation of
Hainan Enterprise and Hainan Association of Enterpreneurs; executive chairman of Hainan labor relations
tripartie meeting; inspector of Hainan Procuratorate; police-style inspector of Hainan Provincial Public Security
Department; specially-invited inspector of Hainan Provincial Supervision Department; member of Hainan
Provincial Literature Dederation; member of Hainan Federation of Social Science; member of Hainan Provincial
Arbitration Committee; director of Hainan Enterprise Credit Evaluation Administration; Chairman of Hainan
Dashun Movie & TV Cultrual Communication Co., Ltd.; independent director of Nanyang Shipping Group Co.,
Ltd. He serves as independent directors of the Company since May 2014.
Supervisors
Mr. Huang Wencai: was born in Jan. 1969, undergraduate degree, Mr. Huang once held the position of vice
director of Haikou meat association factory, director of Haikou food Co. Ltd. and assistant of general manager of
Haikou food Co. Ltd., deputy GM of Haikou Luoniushan Food Processing Co., Ltd. and currently held the post of
deputy GM of Hainan Luoniushan Meat Co., Ltd.; he held the position of Chairman of Supervisory Committee of
the Company since 2002.
Ms. Wang Jialing: was born in February 1966, once served as accountant of financial dept of the Company; serves
as deputy manager of the financial department of the Company. She serves as staff supervisor of the Company
since 2011.
Mr. Chen Gang, born in September 1966, the Han nationality, a junior accountant. He worked as accountant in
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Hainan Sanya Phoenix Co., Ltd. from Feburay 1988 to June 1989, worked as chief accountant in Sanya Hardware
Electrical Mall from July 1989 to September 1992, and serves as cost accounting, chief accountant, deputy GM
and GM of the financial dept. in the Company since October 1992. He serves as staff supervisor of the Company
since August 2016
Senior executives
Mr. Fu Zongren, born in February 1967, intermediate accountant, served as financial manager of the Company,
financial controller of Sanya Yalong Bay Universal Resort, and general manager of Financial Management Center
of Hainan Sunup Group, and serves as the financial administrator of the Company since April 2015.
Post-holding in shareholder’s unit
□ Applicable √ Not applicable
Post-holding in other unit
□ Applicable √ Not applicable
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Pursuant to the Company's Articles of Association, the pay of directors, supervisor personnel are approved by
general meeting after the review of the board of directors and board of supervisors respectively; the pay of senior
management is approved by the board. Directors, supervisors and senior managers get their payment
corresponding to their post provided by the general meeting and the board meeting.
2. In line with performance of their duties, directors, independent directors and supervisors should receive the
reimbursement from the Company on travel expense and Articles of Association implementation expense.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Post-holding
Name Title Sex Age obtained from obtained from
status
the Company related party of
(before taxes) the Company
Currently in
Li Yuanbin Chairman M 66 51.64 No
office
Independent Currently in
Zhao Man F 64 3.6 No
Director office
Independent Currently in
Tang Guoping M 52 3.6 No
Director office
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Leng Independent Currently in
M 61 3.6 No
Mingquan Director office
Currently in
Liu Juntao Director M 48 3.6 No
office
Li Wei Director M 55 Leave the post 3.6 No
Currently in
Huang Wencai Supervisor M 47 1.8 No
office
Liu Xianghai Supervisor M 40 Leave the post 4.33 No
Currently in
Wang Jialing Supervisor F 50 9.19 No
office
Director, Secretary
Wang Currently in
of the Board and F 40 33.25 No
Hongjuan office
Deputy GM
Currently in
Fu Zongren CFO M 49 31.3 No
office
Total -- -- -- -- 149.51 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of staff, professional composition and education background
The number of current employees of parent company (people)
The number of current employees of main subsidiaries
(people)
Total number of current employees (people)
The total number of current employees to receive pay (people)
The total number of retired staff and workers that the parent
company and main subsidiaries need to bear the costs
(people)
Professional composition
Category of professional composition Number of professional composition (people)
Production staff
Salesman
Technical staff
Financial staff
Administrative staff
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Total
Education background
Category of education Number (people)
Junior college above
High shool and below
Total
2. Remuneration policy
The compensation of company’s employees includes wages, bonuses, and benefits, which take the principle of
distributing according to the work, giving priority to efficiency and taking count of equity simultaneously, wage
increase adapting to the company’s business development and benefits improvement, optimizing the labor
allocation, pay level agreeing with the local average in the same industry. Set or adjust the wage standards in
accordance with the job valuation result, the local pay level in the same industry, the company’s annual operation
target and operational budget, and the individual performance.
3. Training programs
Strengthen the training of senior executives by combining the voluntary organization of training and the external
training, widen the thought, and enhance the decision-making ability and modern operation and management
ability. Strengthen the training of middle management, improve the overall quality of managers, improve the
knowledge structure, and enhance the comprehensive management capability, innovation capability and
implementation capability. Strengthen the training of professional and technical personnel, improve the theoretical
level of technology and professional skills, and enhance the technological innovation, technical transformation
capability. Strengthen the technical training of hotel service staff, constantly improve the professional skills and
service skills of service staff, and enhance the ability to strictly fulfill their responsibilities. Strengthen the cultural
training, improve the cultural level of personnel at all levels, and enhance the overall cultural quality of the staff
team.
4. Labor outsourcing
□ Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section IX. Corporate Governance
I. Corporate governance of the Company
During reporting period, the Company further completed governance structure and system, perfected internal
control mechanism and system construction and normalized corporate operation, strictly in accordance with
relative rules and regulations of the Company Law, Securities Law and Listing Rules. Till end of reporting period,
governance structure of the Company is basically in line with requirement of the Governance Rules of Listed
Company.
1. During the reporting period, the Company’s general meeting, board meeting and supervisors meeting exercised
the decision rights, execution rights and supervision rights respectively with clear responsibilities, mutual restrict,
operation specification and effective operation. The procedures of meeting holding, proposal review, and
decision-making in these three meetings were in compliance with relevant provisions. The board meeting
comprises strategy and development committee, audit committee, nomination committee, remuneration and
appraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing a
strong support for the board meeting’s major scientific management decision.
2. In strict accordance with the requirements of Rules Governing the Listing of Stock, directors performed its
duties with honest, trust, diligence and independence, protected the legitimate rights and interests of minority
shareholders with loyalty to their interests; Supervisors effectively supervised and checked independent directors,
senior management and their financial situations.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
Statement of Five Independences between the Company and the Controlling Shareholders
1. Business Independence: the Company business operates independently with integrated structure, and is free
from horizontal competition with controlling shareholders. The controlling shareholders do not intervene the
Company’s operation either directly or indirectly.
2. Personnel Independence, the Company is independent on controlling shareholders in the aspects of labor,
personnel and Remuneration management.
3. Assets Independence: the Company has proprietary rights and control rights on its assets. Controlling
shareholders occupy no assets or funds of the listed company.
4. Institution Independence: the company's board of directors and board of supervisors, managers and other
司公限有份股心中游旅海东大南海 2016 文全告报度年年
internal institutions operate independently and manage independently with integrated structures.
5. Financial Independence: the Company has an independent financial sector, and sets up independent accounting
system and financial management system. The Company opens independent bank accounts and pay independent
taxes to laws without controlling shareholders’ intervention.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of
Session of investor
Type Date Date of disclosure Index of disclosure
meeting participat
ion
The “Resolution Notice of Annual
Annual Shareholders’ General Meeting of 2015”
Annual
general (No.: 2016-011) published on Securities
general 0.04% 2016-04-19 2016-04-20
meeting Times, Hong Kong Commercial Daily and
meeting
2015 Juchao website (http://www.cninfo.com.cn)
dated 20 April 2016 respectively
The “Resolution Notice of First
First
Extraordi Extraordinary Shareholders Meeting of
Extraordina
nary 2016” (No.: 2016-032) published on
ry
sharehol 0.03% 2016-08-30 2016-08-31 Securities Times, Hong Kong Commercial
Shareholder
ders Daily and Juchao website
s Meeting
meeting (http://www.cninfo.com.cn) dated 31 August
of 2016
2016 respectively
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting
Name of Times of Times of Times of Times of Times of Absent the
司公限有份股心中游旅海东大南海 2016 文全告报度年年
independent Board meeting Presence attending by entrusted Absence Meeting for
director supposed to communicatio presence the second
attend in the n time in a row
report period (Y/N)
Zhao Man 5 1 4 0 0 No
Tang Guoping 5 1 4 0 0 No
Leng Mingquan 5 1 4 0 0 No
Times for attending general meeting
from independent directors
Explanation of absent the Board Meeting for the second time in a row
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
Suggestion of re-enforce foreign capital introduction and good assets while operated currently main business with
purpose of change the single operation in main business. Till end of the report disclosed, majority shareholder of
the Company – Luoniushan Co., Ltd. is planning to fulfill the committmetns, and with major assets reorganization
concerned, stock of the Company suspended since 15 Feburary 2017
VI. Duty performance of the special committees under the board during the reporting period
The board meeting comprises four special committees, who carry out smoothly their duties accordingly to their
working conditions, providing a strong support for the board meeting’s major scientific management decision.
Each special committee performed their duties as follows:
1. Audit Committee
During the reporting period, the audit committee audited the first quarter and the three quarter financial report of
2016, and the 2016 semi-annual financial report. In the process of annual financial report auditing 2016 process,
audit committee members worked in accordance with the relevant requirements by faithfully performing audit
committee’s responsibilities:
Before the entrance of annual examination certified public accountants, the audit committee members listened to
the management statements of the Company's operating condition in 2016 and the financial status as well as the
report on annual financial report audit work arrangement of 2016, communicated with annual examination
司公限有份股心中游旅海东大南海 2016 文全告报度年年
certified public accountants about issues such as personnel structure of the working group, audit plan, risk
judgment, annual audit focus and so on; In early January 2017, in annual report audit process, audit committee
members listened to the work report by annual examination certified public accountants and the company
management; At the middle of March 2017, audit committee members reviewed submitted financial and
accounting reports. The financial and accounting reports audited was formatted strictly to Accounting Standards
for Business Enterprises and Accounting System for Business Enterprises, and this report fairly reflected the
Company’s assets, liabilities, rights and interests and operating situation without significant errors and omissions.
The annual audit report of 2016 by audit institutions was agreed to be submitted to the board.
The Company's board of directors regarded that the external auditors Lixin Certified Public Accountants (special
ordinary partnership) faithfully performed the audit responsibility, and suggested to renew as the Company’s
annual financial audit of 2017.
2. Remuneration committee
During the reporting period, the remuneration committee members of the Company board carried out their duties
strictly to relevant regulations, inspected remuneration policies and programs for directors, supervisors and senior
managers, led the company to perfect the remuneration system, and appraised the performance of directors,
supervisors and senior management according to senior manager remuneration appraisal. By the end of the
reporting period, the Company has not implemented option scheme. In reporting period, the Company formulated
a Remuneration Management System of Directors, Supervisors and Senior Executives, and the system has
deliberated and approved by the Board and Shareholders’ general meeting.
3. Strategy committee
During the reporting period, the board strategy committee put forward valuable opinions on decision-making such
as development planning and investment decisions, thus enhanced the scientific decision-making and core
competitiveness of the Company, improved the Company’s efficiency of major investment decisions and decision
quality.
4. Nomination committee
During the reporting period, on May 30, 2016, Mr. Li Wei, the former Director of the Company, requested to
resign the Director position since May 30, 2016 for personal reasons. On August 11, 2016, the tenth interim
meeting of the eighth board of directors of the company and 2016 first extraordinary general meeting decided to
engage Ms. Wang Hongjuan as the company’s Director, and her tenure is the same as the eighth board of directors
of the company.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
1. Pursuant to People-oriented Principle, the Company employs outstanding persons in long-term, and admits the
best candidates on the premise of openness, fairness, justice. Those who pass trial comprehensive appraisal and be
nominated by general managers and approved by the board meeting can be employed as senior management of the
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Company.
2. The Company adopts a clear appraisal system in which assessment methods are made to the performance and
duty fulfillment of senior management. Assessments are carried out monthly and annually by the same level and
higher level and the results are taken as factors for post lift and rewards and punishment of senior management.
3. The company sets up effective incentive mechanism, including material incentives and spiritual incentives. The
clear rewards and punishments, balance between remuneration and work performance, survival of fittest
encourage senior management to make constantly progress and improve their own comprehensive ability which in
turn help the Company develop rapidly.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
√ Yes □ No
Details of major defects in appraisal report of internal control that found in reporting period
The company’s board of directors has made self-evaluation to the validity of design and operation of the company’s internal
controls up to December 31, 2016 in accordance with the requirements of \"Basic Norms of Enterprise Internal Control\",
\"Evaluation Guidelines of Enterprise Internal Control\" and other laws and regulations, and issued \"2016 annual evaluation report
of internal control\" of the company, and made following conclusions: during the reporting period, the company has no significant
internal control deficiencies, maintain effective IC of the financial report in all major areas. There are no major defects being
found in the IC of non-financial reports, and no factors being found that can be impact the effectiveness of the evaluation
conclusion in internal control
2. Appraisal Report of Internal Control
Disclosure date of full internal control
2017-03-31
evaluation report
Disclosure index of full internal control Relevant information found in Self-evaluation Report of Internal Control for 2016
evaluation report published on Juchao Website dated 31 March 2017.
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 100.00%
the company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Major deficiencies: fraud of directors, supervisors Major deficiencies: the company is lack of democratic
and senior management; material misstatements decision-making process; the company’s decision-making
are found in current financial statements by the process leads to major mistakes; the company violates the
certified public accountant but are not found in state laws and regulations and is severely punished; serious
the process of internal control; the supervision of brain drain of the company’s senior management personnel
the audit committee to the company’s external and senior technical staff; frequent negative news on media
financial reports and internal control of financial covering a wide range and the negative effects are not
reports is invalid. eliminated; the company’s significant business is lack of
Significant deficiencies: the selection and system control or systematic-ness is invalid; the major
application of accounting policies are not in deficiencies and significant deficiencies of the company’s
accordance with the GAAP; anti-fraud program internal controls have not been rectified and reformed; the
Qualitative and control measures have not been established; company is punished by CSRC or warned by stock exchange.
criteria the accounting treatment of unusual or special Significant deficiencies: the company has democratic
transactions has no appropriate control decision-making process which is not complete; the
mechanisms or have not implemented the control company’s decision-making process leads to general
mechanisms and has no appropriate compensatory mistakes; the company violates the enterprise internal
controls; the control to period-end financial regulations which causes losses; serious brain drain of the
reporting process has one or more deficiencies company’s business personnel in key positions; negative news
and cannot reasonably ensure that the on media affecting local areas; the company’s significant
organizational financial statements are true and business system has deficiencies; the significant deficiencies
accurate. and general deficiencies of the company’s internal controls
General deficiencies: other internal control have not been rectified and reformed;
deficiencies do not constitute major or significant General deficiencies: other internal control deficiencies do
deficiencies. not constitute major or significant deficiencies.
Major deficiencies: misstatements ≥ 10% of Major deficiencies: misstatements ≥ direct property loss of
total profits; 100,000 Yuan;
Quantitative Significant deficiencies: 5% of total profits ≤ Significant deficiencies: direct property loss of 10,000 Yuan ≤
standard misstatements <10% of total profits; misstatements < direct property loss of 100,000 Yuan;
General deficiencies: misstatements <5% of total General deficiencies: misstatements < direct property loss of
profits. 10,000 Yuan.
Amount of
significant
defects in
financial reports
Amount of
significant
defects in
non-financial
reports
Amount of
important defects
in financial
司公限有份股心中游旅海东大南海 2016 文全告报度年年
reports
Amount of
important defects
in non-financial
reports
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
To All Shareholders of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.:
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing
standards of Chinese Certified Public Accountant, we audited the effective-ness of the financial report’s internal
control for Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (the Company) dated 31 December 2016.
I. As for responsibility of internal control
The Company established and improved and implemented internal control effectively pursuit to Basic Norms of
Enterprises Internal Control, Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines
for Enterprises Internal Control, and board of the director is responsible for evaluating its effectiveness.
II. Auditor’s responsibilities
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements
based on our audit. And disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control
The internal control has an inherent limitation, and exist mistakes that can not prevent and being discovered.
Moreover, the internal control might be inappropriate due to the changes of conditions, or fails to follow the
controlling policies and procedures, to speculate future effectiveness of the internal control in line with the
auditing result has a certain risks.
IV. Auditing opinion: in our opinion
The Company, in line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an
effectiveness internal control of financial report in all major aspects dated 31 December 2016.
BDO CHINA Shu Lun Pan Certified Public Accountant of China: Zhu Jianqing
Certified Public Accountants LLP
Certified Public Accountant of China: Liu Zebo
Shanghai, China 29 March 2017
Disclosure details of audit
Disclosed
report of internal control
Disclosure date of audit report
2017-03-31
of internal control (full-text)
Index of audit report of Relevant information found in Self-evaluation Report of Internal Control for
internal control (full-text) 2016 published on Juchao Website dated 31 March 2017.
Opinion type of auditing Standard unqualified
司公限有份股心中游旅海东大南海 2016 文全告报度年年
report of IC
whether the non-financial
No
report had major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Section XI. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 2017-03-29
Name of audit institute BDO CHINA Shu Lun Pan Certified Public Accountants LLP
Document serial of audit report PCPAR [2017] No.ZA1096
Name of the CPA Zhu Jianqing, Liu Zebo
Auditor’s Report
To All Shareholders of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.:
We have audited the accompanying financial statements of Hainan Dadonghai Tourism Center
(Holdings) Co., Ltd. (hereinafter referred to as “the Company”), which comprise the balance sheet as
at December 31, 2016, and the income statement, statement of cash flows and statement of changes in
owners’ equity for the year then ended, and notes to the financial statements.
I. Management’s Responsibilities for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial
statements. This responsibility includes: (1) preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation; (2)
designing, implementing and maintaining internal control that is necessary to ensure that the financial
statements are free from material misstatements, whether due to frauds or errors.
II. Auditor’s Responsibilities
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Auditing Standards for Certified Public Accountants in China.
Those standards require that we comply with professional and ethical requirements of Chinese
certified public accountants, and plan and perform the audit to obtain reasonable assurance whether
the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgments, including the
assessment of the risks of material misstatements of the financial statements, whether due to fraud or
error. In making those risk assessments, we consider the internal control relevant to the preparation
and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the internal control. An audit also includes evaluating the appropriateness of accounting policies
司公限有份股心中游旅海东大南海 2016 文全告报度年年
used and the reasonableness of accounting estimates made by the management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
III. Opinion
In our opinion, the financial statements of the Company are prepared, in all material respects, in
accordance with Accounting Standards for Business Enterprises and present fairly the financial
position of the Company as at December 31, 2016 and its operating results and cash flows for the year
then ended.
BDO CHINA Shu Lun Pan Certified Public Accountant of China:Zhu Jianqing
Certified Public Accountants LLP
Certified Public Accountant of China:Liu Zebo
Shanghai, China 29 March 2017
II. Financial Statement
Expressed in Renminbi unless otherwise stated
1. Balance sheet
Prepared by HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.
2016-12-31
In RMB
Item Closing Balance Opening Balance 期
Current assets:
Monetary funds 27,210,248.01 19,782,392.26
Settlement funds
Lending funds
Financial liability measured by fair value and with
variation reckoned into current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 690,444.72 460,197.28
Prepayments 58,783.23 42,358.16
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Dividends receivable
Other receivables 174,103.52 211,946.37
Purchase restituted finance asset
Inventories 219,179.72 218,075.43
Divided into assets held for sale
Non-current assets maturing within one year 584,369.42 532,500.00
Other current assets 1,876,449.22
Total current assets 30,813,577.84 21,247,469.50
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 4,500,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investment real estate 9,333,527.55
Fixed assets 40,395,680.91 51,279,986.58
Construction in progress
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 23,830,023.36 26,351,390.52
Research and development costs
Goodwill
Long-term deferred expenses 1,071,343.97 1,508,750.00
Deferred tax assets
Other non-current assets
Total non-current assets 74,630,575.79 83,640,127.10
Total assets 105,444,153.63 104,887,596.60
Current liabilities
Short-term borrowings
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Financial liability measured by fair value and with
variation reckoned into current gains/losses
Derivative financial liability
Notes payable
Accounts payable 1,967,565.51 2,415,602.37
Accounts received in advance 1,894,524.28 1,153,854.95
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 2,148,514.36 2,150,364.40
Taxes payable 582,944.27 -1,422,221.33
Interest payable
Dividend payable
Other accounts payable 23,084,504.73 23,652,528.28
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 29,678,053.15 27,950,128.67
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities 1,489,685.04
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,489,685.04
Total liabilities 31,167,738.19 27,950,128.67
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Owners’ equity:
Share capita 364,100,000.00 364,100,000.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 54,142,850.01 54,142,850.01
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve
Provision of general risk
Retained profit -343,966,434.57 -341,305,382.08
Total owner’s equity attributable to parent Company 74,276,415.44 76,937,467.93
Minority interests
Total owner’s equity 74,276,415.44 76,937,467.93
Total liabilities and owner’s equity 105,444,153.63 104,887,596.60
Legal Representative: Li Yuanbin
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren
2. Profit statement
In RMB
Current
Item Last Period
Period
I. Total operating income 21,708,883.51 15,885,922.90
Including: Operating income 21,708,883.51 15,885,922.90
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 25,781,573.48 25,359,928.19
Including: Operating cost 10,258,440.62 7,873,049.71
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 1,412,039.97 917,481.10
Sales expenses 4,931,333.26 5,722,072.82
Administration expenses 9,374,635.91 10,272,262.86
Financial expenses -193,645.29 -109,213.80
Losses of devaluation of asset -1,230.99 684,275.50
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 1,390,918.55 422,000.00
Including: Investment income on affiliated Company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) -2,681,771.42 -9,052,005.29
Add: Non-operating income 69,606.00 1,664,926.64
Including: Disposal earnings of non-current asset
Less: Non-operating expense 48,887.07 90,787.75
Including: Disposal loss of non-current asset 48,887.07 90,560.75
IV. Total Profit (Loss is listed with “-”) -2,661,052.49 -7,477,866.40
Less: Income tax
V. Net profit (Net loss is listed with “-”) -2,661,052.49 -7,477,866.40
Net profit attributable to owner’s equity of parent Company -2,661,052.49 -7,477,866.40
Minority shareholders’ gains and losses
VI. Net after-tax of other comprehensive income
Net after-tax of other comprehensive income attributable to owners of parent company
(I) Other comprehensive income items which will not be reclassified subsequently to
profit of loss
1. Changes as a result of re-measurement of net defined benefit plan liability or
asset
2. Share of the other comprehensive income of the investee accounted for using
equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified subsequently to profit
or loss
1. Share of the other comprehensive income of the investee accounted for using
equity method which will be reclassified subsequently to profit or loss
2. Gains or losses arising from changes in fair value of available-for-sale
financial assets
司公限有份股心中游旅海东大南海 2016 文全告报度年年
3. Gains or losses arising from reclassification of held-to-maturity investment as
available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from cash flow hedging
instruments
5. Translation differences arising on translation of foreign currency financial
statements
6. Other
Net after-tax of other comprehensive income attributable to minority shareholders
VII. Total comprehensive income -2,661,052.49 -7,477,866.40
Total comprehensive income attributable to owners of parent Company -2,661,052.49 -7,477,866.40
Total comprehensive income attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.0073 -0.0205
(ii) Diluted earnings per share -0.0073 -0.0205
As for the merger under the same control, the merged party has net profit of 0 Yuan before combination, while 0 Yuan
net profit for the last period
Legal Representative: Li Yuanbin
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren
3. Cash flow statement
In RMB
Item Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 22,525,732.45 18,373,063.44
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Insured savings and net increase of investment
Net increase of amount from disposal financial assets that measured by
fair value and with variation reckoned into current gains/losses
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Write-back of tax received 4,801.73
Other cash received concerning operating activities 584,448.51 2,081,380.90
Subtotal of cash inflow arising from operating activities 23,114,982.69 20,454,444.34
Cash paid for purchasing commodities and receiving labor service 5,520,980.68 5,408,681.93
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 9,341,192.06 8,669,137.40
Taxes paid 2,515,054.34 2,666,423.71
Other cash paid concerning operating activities 2,971,383.59 5,455,727.58
Subtotal of cash outflow arising from operating activities 20,348,610.67 22,199,970.62
Net cash flows arising from operating activities 2,766,372.02 -1,745,526.28
II. Cash flows arising from investing activities:
Cash received from recovering investment 9,000,000.00 9,000,000.00
Cash received from investment income 961,165.05 422,000.00
Net cash received from disposal of fixed, intangible and other long-term
4,929,753.50 7,510.00
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 29,081.45
Subtotal of cash inflow from investing activities 14,920,000.00 9,429,510.00
Cash paid for purchasing fixed, intangible and other long-term assets 1,258,516.27 1,451,881.00
Cash paid for investment 9,000,000.00 9,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 10,258,516.27 10,451,881.00
Net cash flows arising from investing activities 4,661,483.73 -1,022,371.00
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Including: Cash received from absorbing minority shareholders’
investment by subsidiaries
Cash received from loans
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities
Cash paid for settling debts
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Cash paid for dividend and profit distributing or interest paying
Including: Dividend and profit of minority shareholder paid by
subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities
Net cash flows arising from financing activities
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents 7,427,855.75 -2,767,897.28
Add: Balance of cash and cash equivalents at the period -begin 19,782,392.26 22,550,289.54
VI. Balance of cash and cash equivalents at the period -end 27,210,248.01 19,782,392.26
4. Statement on Changes of Owners’ Equity
Current Period
In RMB
Current Period
Owners’ equity attributable to the parent Company
Other
equity
instrum
ent
P
e Ot
r he R
Pr M
p r e
Le ov in
et co as S
ss: isi or
P u m o ur
In on it
re al pr n pl
Item ve of y Total owners’
fe c Capital eh a us
Share capital nto ge Retained profit in equity
rr a reserve en bl re
O ry ne te
e p si e se
th sh ra re
d it ve re rv
er are l st
st al in se e
s ris s
o s co rv
k
c e m e
k c e
u
ri
ti
e
s
I. Balance at the end of the last year 364,100,000.00 54,142,850.01 -341,305,382.08 76,937,467.93
Add: Changes of accounting
policy
Error correction of the last
司公限有份股心中游旅海东大南海 2016 文全告报度年年
period
Enterprise combine under
the same control
Other
II. Balance at the beginning of this
364,100,000.00 54,142,850.01 -341,305,382.08 76,937,467.93
year
III. Increase/ Decrease in this year
-2,661,052.49 -2,661,052.49
(Decrease is listed with “-”)
(i) Total comprehensive income -2,661,052.49 -2,661,052.49
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners (or
shareholders)
4. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the report
364,100,000.00 54,142,850.01 -343,966,434.57 74,276,415.44
period
Last Period
In RMB
Last Period
Owners’ equity attributable to the parent Company M
Other Le Ot R S Pr in
Item Total owners’
equity Capital ss: he e ur ov or
Share capital Retained profit equity
instrum reserve In r as pl isi it
ent ve co o us on y
司公限有份股心中游旅海东大南海 2016 文全告报度年年
P nt m n re of in
er or pr a se ge te
p y eh bl rv ne re
P et sh en e e ral st
re u are si re ris s
fe al s ve se k
rr c in rv
O
e a co e
th
d pi m
er
st ta e
o l
c se
k c
ur
iti
es
I. Balance at the end of the last year 364,100,000.00 54,142,850.01 -333,827,515.68 84,415,334.33
Add: Changes of accounting
policy
Error correction of the last
period
Enterprise combine under
the same control
Other
II. Balance at the beginning of this
364,100,000.00 54,142,850.01 -333,827,515.68 84,415,334.33
year
III. Increase/ Decrease in this year
-7,477,866.40 -7,477,866.40
(Decrease is listed with “-”)
(i) Total comprehensive income -7,477,866.40 -7,477,866.40
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners
equity with share-based payment
4 Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners (or
shareholders)
4. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
司公限有份股心中游旅海东大南海 2016 文全告报度年年
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the report
364,100,000.00 54,142,850.01 -341,305,382.08 76,937,467.93
period
III. Company basic status
Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (hereinafter referred to as “the Company”),
was founded as a standardized LLC on April 26, 1993, reorganized and incorporated on the basis of
the former Hainan Sanya Dadonghai Tourism Center Development Ltd. and approved by the Hainan
Provincial Stock System Experimentation Leading Team Office with a document of Qiong Gu Ban Zi
[1993] No. 11. On May 6, 1996, the Company underwent a restructuring and a corresponding division
under the approval of the Hainan Provincial Securities Administration Office with a document of
Qiong Zheng Ban [1996] No. 58. On October 8, 1996 and January 28, 1997, the Company, with duly
approval, went public by issuing 80 million shares of B stock and 14 million shares of A stock
respectively on Shenzhen Security Exchange. On June 20, 2007, the Company experienced a reform
of non-tradable shares, through which non-tradable share holders of the Company got circulating right
of their shares by paying shares to tradable share holders, and tradable share holders got paid three
shares for every ten of their shares. The Company operates business in the industry of tourism and
catering services.
As of December 31, 2016, the Company’s total capital stock is 364,100,000 shares. The Company’s
registered capital is RMB 364.1 million. The legal representative is Li Yuanbin. The registeration
number of its Business License for Enterprise Legal Person (Duplicate) is 4600001003983. The legal
registerred residence is Dadonghai, Hedong District, Sanya. Its scope of business includes:
accomodation and catering industry (limited to those operated by branches); photography; operation
of ornamental plant bonsai, knitwear and textiles, general merchandise, hardware and electrical
equipment, chemical products (excluding those require specialized licenses), daily necessities,
industrial means of production (excluding those require specialized licenses), metal materials and
machinery equipment; commission sale of plane, bus, train and ship tickets (items in require of
administrative permission shall be operated under license). The Company’s largest shareholder is the
Hainan Luoniushan (Holdings) Co., Ltd.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
These financial statements have been approved by all directors of the Company on March 29, 2017 for
disclosure.
Until December 31, 2016, the scope of consolidation (aggregation) of financial statements as below:
Company Name Relationship
South China Grand Hotel of Hainan Dadonghai
Tourism Center (Holdings) Co., Ltd (hereinafter Subsidiary
referred to as “South China Grand Hotel”)
IV. Basis of preparation for financial statements
1. Basis of preparation for financial statements
Based on going concern, according to actually occurred transactions and events, the Company
prepares its financial statements in accordance with the Accounting Standards for Business
Enterprises – Basic Standards and concrete accounting standards, Accounting Standards for Business
Enterprises – Application Guidelines, Accounting Standards for Business Enterprises – Interpretations
and other relevant provisions (collectively known as “Accounting Standards for Business
Enterprises”), as well as the disclosure requirements of Regulation on the Preparation of Information
Disclosure of Companies Issuing Public Shares No.15 - General Requirements for Financial Reports
(as revised in 2014) by the China Securities Regulatory Commission.
2. Going concern
The Company currently has sufficient operating capital and no debt service pressure, the business
circumstance has been improved after the new general manager of the Company’s subsidiary South
China Hotel worked in the year of 2016. So far, the Company is operating normal and expected to
continue operate as going concern in the next twelve months.
Note: evaluate the sustainable management ability of 12 months since end of the period. If the
evaluation results have significant doubt on sustainable ability, disclose the reasons and improvement
measures that the company plans to implemented
V. Principal accounting policies and estimates
Whether the company needs to comply with the disclosure requirements of the particular industry
司公限有份股心中游旅海东大南海 2016 文全告报度年年
No
Tips of accounting policies and estimates:
Nil
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company’s financial position
as at December 31, 2016, and its operating results, cash flows and other related information for the
year then ended.
2. Accounting period
The accounting year is from January 1 to December 31 in calendar year.
3. Operating cycle
The operating cycle of the Company is twelve months.
Note: as for the operating cycle less than 12 months, and the trade cycle is the liquidity criteria for
assets and liabilities, explain the operating cycle and determine basis
4. Functional currency
RMB is adopted as the functional currency.
5. Accounting treatment for business combinations under the same control and those not under
the same control
6. Methods for preparation of consolidated financial statements
7. Accounting treatment for joint venture and joint operation
8. Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand
and the unrestricted deposit. The term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of change in value.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
9. Foreign business and foreign currency transactions
Foreign currency transactions are converted into RMB for recording purpose at the spot exchange rate
on the date when the transaction occurs.
Balances of foreign currency monetary items are measured at the spot exchange rate on the balance
sheet date. The exchange difference arising therefrom shall be included in the current profit and loss,
except that those exchange differences arising from the special borrowings of foreign currency related
to the acquired and constructed assets qualified for capitalization shall be dealt with according to the
principle of borrowing cost capitalization. Foreign currency non-monetary items measured at
historical costs shall still be converted at the spot exchange rates on the date when the transactions
occur, and the amount in functional currency shall remain unchanged. Foreign currency non-monetary
items measured at fair value shall be translated at the spot exchange rates on the date when the fair
value is determined. The exchange difference arising therefrom shall be included in the current profit
and loss or capital reserves.
Note: explain the definite method of conversion rate while foreign currency trading occurred, on
balance sheet date, the conversion method for foreign currency monetary items, the treatment of
exchange gain or loss and the accounting treatment of translation of foreign currency statements
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Financial assets and liabilities are classified into the following categories according to the purpose of
acquisition: financial assets or financial liabilities measured at fair value and whose variation is
included in the current profit and loss, including financial assets or financial liabilities held for trading
and financial assets or financial liabilities directly designated to be measured at fair value through
current profit and loss, held-to-maturity investments, accounts receivables, available-for-sale financial
assets and other financial liabilities, etc.
2. Recognition basis and measurement method of financial instruments
(1) Financial assets (financial liabilities) measured at fair value and whose variation is included in
the current profit and loss
Financial assets (financial liabilities) are initially recorded at fair values when acquired (deducting
cash dividends that have been declared but not distributed and bond interests that have matured but
not been drawn). Relevant transaction expenses are included in the current profit and loss.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
The interests or cash dividends to be received during the holding period are recognized as investment
income. Change in fair values is included in the current profit and loss at the end of the period.
Difference between the fair value and initial book-entry value is recognized as investment income
upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recorded at fair values plus the related trade expenses when
acquired (deducting bond interests that have matured but not been drawn). The interest revenue
calculated at amortization cost and effective interest rate (nominal interest rate is adopted when the
difference between the actual interest rate and the nominal interest rate is minor) during the holding
period is recognized as investment income. Effective interest is recognized when obtained, and
remains unchanged in the predictable holding period or applicable shorter period.
The difference between the amount received and the book value of the investment is included in the
investment profit and loss upon disposal.
(3) Accounts receivable
For creditor’s rights receivable arising from external sales of goods or rendering of service by the
Company and other creditor's rights of other enterprises (excluding liability instruments quoted in an
active market) held by the Company, including accounts receivable, other receivables, notes
receivable and prepayments, etc., the initial recognition amount shall be the contract price or
agreement price receivable from purchasing party. Accounts receivable with financing nature are
initially recognized at their present values.
The difference between the amount received and the book value of the accounts receivable is included
in the current profit and loss upon recovery or disposal.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at fair values plus the related trade expenses
when acquired (deducting cash dividends that have been declared but not been paid or bond interests
that have matured but not been drawn).
The interests or cash dividends to be received during the holding period are recognized as investment
income. It is measured in fair value at the end of the period and change in fair values is included in
other comprehensive income at the end of the period. However, the equity instrument investments
unquoted in an active market and whose fair value cannot be measured reliably, and the derivative
financial assets which are connected with the said equity instrument and must be settled by delivering
the said equity instrument shall be measured on the costs basis.
The difference between the amount received and the book value of the financial asset is included in
the investment profit and loss upon disposal. Meanwhile, the corresponding part of fair value
accumulated change accounted as other comprehensive income is transferred into investment profit or
loss.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses and
subsequently measured at amortized costs.
3. Recognition basis and measurement method of transfer of financial assets
When transfer of financial assets occurs, if nearly all of the risks and rewards of ownership of the
financial assets have been transferred to the transferee, the Company derecognizes the financial assets;
if nearly all of the risks and rewards of ownership of the financial assets are retained, the Company
shall not derecognize the financial assets.
The principle of substance over form is adopted to determine whether the transfer of a financial asset
satisfies the criteria as described above for derecognition of a financial asset. The Company shall
classify the transfer of a financial asset into the entire transfer and the partial transfer of financial asset.
If the entire transfer of financial asset satisfies the criteria for derecognition, the difference between
the amounts of the following two items shall be included in the current profit and loss:
(1) The book value of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the accumulated amount of the
changes in fair value originally and directly included in owners’ equity (the situation where the
financial asset transferred is an available-for-sale financial asset is involved in)
If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of
the transferred financial asset shall be split into the derecognized and recognized part according to
their respective fair value and the difference between the amounts of the following two items shall be
included in the current profit and loss:
(1) The book value of derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of derecognition
corresponding to the accumulated amount of the changes in fair value originally and directly included
in owners’ equity (the situation where the financial asset transferred is an available-for-sale financial
asset is involved in).
If the transfer of financial assets does not meet the derecognition criteria, the financial assets shall
continue to be recognized, and the consideration received will be recognized as a financial liability.
4. Derecognition criteria of financial liabilities
A financial liability shall be totally or partly derecognized if its present obligations are totally or partly
dissolved. Where the Company enters into an agreement with a creditor so as to substitute the existing
financial liabilities with any new financial liability, and the new financial liability is substantially
different from the contractual stipulations regarding the existing financial liability, it shall derecognize
the existing financial liability, and shall at the same time recognize a new financial liability.
Where substantial revisions are made to some or all of the contractual stipulations of the existing
司公限有份股心中游旅海东大南海 2016 文全告报度年年
financial liability, the Company shall derecognize the existing financial liability totally or partly, and
at the same time recognize the financial liability with revised contractual stipulations as a new
financial liability.
Upon total or partial derecognition of financial liabilities, the difference between the book value of the
financial liabilities derecognized and the consideration paid (including non-cash assets surrendered or
new financial liabilities assumed) shall be included in the current profit and loss.
Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate
the entire book value of whole financial liabilities according to the comparative fair value of the part
that continues to be recognized and the de-recognized part. The difference between the book value
allocated to the derecognized part and the considerations paid (including non-cash assets surrendered
and the new financial liabilities assumed) shall be included in the current profit and loss.
5. Method of determining the fair value of financial assets and financial liabilities
For financial instruments with active market, their fair values are determined with quoted market price.
For financial instruments without active market, their fair values are determined by using valuation
technique. During the valuation, the Company use valuation techniques that are appropriate in the
circumstances and for which sufficient data and other information are available to measure fair value,
select inputs that are consistent with the characteristics of the asset or liability that market participants
would take into account in a transaction for the asset or liability, and give priority to the use of
relevant ovservable inputs. Unobservable inputs are only adopted when relevant observable inputs
cannot be obtained or are impracticable to obtain.
6. Providing of impairment provision on financial assets ( exclude receivable accounts)
The Company performs inspection on the book value of financial assets apart from those financial
assets measured at fair value through current profit and loss on the balance sheet date. Impairment
provision is required if objective evidences of impairment occurs to the financial assets.
(1) Impairment provision of available-for-sale financial assets:
If there is a serious decline in fair value of the available-for-sale financial assets at the end of the
period, or such decline is not temporary after considering various factors, the impairment shall be
confirmed, the accumulated losses due to decreases in fair value previously included in owner’s equity
shall be rversed, the impairment loss shall be recognized.
If, in a subsequent period, the carrying amount of available-for-sale debt instruments investments
increases and the increase can be related objectively to an event occurring after the impairment was
recognized, the previously recognized impairment losses are reversed, included in current profit or
loss.
The impairment losses of available-for-sale equity instruments cannot be reversed through profit or
loss.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(2) Impairment provision of held-to-maturity investment:
Measurement of held-to-maturity investment impairment loss is governed by measurement of account
receivables impairment loss.
11. Accounts receivable
(1) Provision for bad debts of account receivables that are individually significant
Assessment basis or standard of amount Top five accounts receivable and other receivables in terms of individual amount at the
individually significant end of the year.
After separate impairment test, provision for bad debts shall be made at the difference of
present value of estimated future cash flows in short of their book values, and shall be
Method of provision for bad debts of include in current profit and loss. For accounts receivable with no impairment found after
accounts receivable that are individually separate tests, they shall be included in corresponding portfolios for provisions for bad
significant debts. For accounts receivable with confirmed impairment losses after separate tests,
they shall not be included in portfolios of accounts receivable with similar credit risk
features for impairment tests.
(2) Provision for bad debts of accounts receivable made on the basis of portfolio
Portfolio Provision for bad debts
Account receivable accrual bad debt provision by group Aging analysis method
Proportions of provision for bad debts on the basis of aging analysis in portfolios:
√Applicable □Not applicable
Proportion of provision for account Proportion of provision for other
Aging
receivable receivables
1-2 years 5.00% 5.00%
2-3 years 15.00% 15.00%
3-4 years 25.00% 25.00%
4-5 years 50.00% 50.00%
More than five years 100.00% 100.00%
In portfolio, adopting balance percentage method for bad debt provision
□ Applicable √Not applicable
In portfolio, adopting other method for bad debt provision
□ Applicable √Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(3) Accounts receivable that are individually insignificant but with bad debt provision provided
on an individual basis
For account receivable with an individual balance lower than the top five at the end of the year
Reason for bad debt
and with objective evidence showing it may be impaired, and for uncollectible accounts
provision provided on an
receivable arising from repeal and liquidation of debtor after taking legal clearance procedures,
individual basis
their provision for bad debts shall be provided on an individual basis.
For accounts receivable with objective evidence showing they may be impaired, they shall be
Method of provision for bad
separate from relevant portfolios and separately tested for impairment to recognize the
debt
impairment losses.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Classification of inventories
Inventories are classified into raw materials, stock commodities, low-cost consumables, food materials,
fuels, etc.
2. Measurement method of dispatched inventories
Stock commodities are measured at selling price and their purchase and sale price differential are
amortized over every month at the method of comprehensive differential. The purchasing and storage
of stock materials are measured at actual cost, and at the first-in-first-out method when fetched for use.
Low-cost consumables are amortized in full when fetched for use.
3. Determination basis of net realizable values of inventories and provision method of inventory
depreciation reserve
After the comprehensive inventory count at the end of the period, provisions for inventory depreciation
reserve are made or adjusted at the lower of their costs or net realizable values.
In normal operation process, for merchandise inventories for direct sale, including stock commodities
and materials for sale, their net realizable values are determined at the estimated selling prices minus
the estimated selling expenses and relevant taxes and surcharges; for inventories held to execute sales
contract or service contract, their net realizable values are calculated on the basis of contract price. If
the quantities of inventories specified in sales contracts are less than the quantities held by the
Company, the net realizable value of the excess portion of inventories shall be based on general selling
prices.
At the end of the period, provisions for inventory depreciation reserve are made on an individual basis.
For inventories with large quantity and low unit price, the provisions for inventory depreciation
reserve are made on a category basis. For inventories related to the product portfolios manufactured
司公限有份股心中游旅海东大南海 2016 文全告报度年年
and sold in the same area, and of which the final usage or purpose is identical or similar thereto, and
which is difficult to separate from other items for measurement purposes, the provisions for inventory
depreciation reserve shall be made on a portfolio basis.
If any factor rendering write-downs of the inventories has been eliminated, the amounts written down
are recovered and reversed from the inventory depreciation reserve, which has been provided for. The
reversed amounts are included into the current profit and loss.
4. Inventory system
Perpetual inventory system is adopted.
5. Amortization method of low-cost consumables and packaging materials
(1) Low-cost consumables are amortized at lump-sum method;
(2) Packaging materials are amortized at lump-sum method.
13. Divided into assets held for sale
14. Long-term equity investments
1. Determination basis of joint control or significant influence over the investee
Joint control is the relevant agreed sharing of control over an arrangement, and the arranged relevant
activity must be decided under unanimous consent of the parties sharing control. When the Company
and other joint parties do joint control and have rights to the net assets over an investee, the investee
shall be the Company’s joint venture.
Significant influence is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those polices. When an investing enterprise is able to
have significant influences on an investee, the investee shall be its associate.
2. Determination of investment cost
(1) Long-term equity investments acquired from business combinations
For business combination under common control: if the Company makes payment in cash, transfer
non-cash assets or bear debts and issues equity securities as the consideration for the business
combination, the book value of the owners’ equity of the combinee obtained is recognized as the
initial cost of the long-term equity investment on the combination date. The difference between the
initial investment cost and the carrying amount of cash paid, non-cash assets transferred, liabilities
assumed and par value of share issued shall be adjusted to the stock premium in the capital reserved; if
there is no sufficient premium in the capital reserve for write-downs, the retained earnings are
adjusted.
When exercising control over an investee under common control due to additional investment or other
司公限有份股心中游旅海东大南海 2016 文全告报度年年
reasons, the initial investment cost of the long-term equity investment shall be determined by the
absorbing party’s share of the net assets of the party being absorbed in the consolidated financial
statements of the ultimate controlling party at combination date. The difference between the initial
investment cost of the long-term equity investment at combination date and the sum of the total of the
carrying amount of equity investment held by the acquirer before the combination date and the newly
increased investment on the combination date shall be adjusted to share premium. If the balance of
share premium is not sufficient, any excess shall be adjusted to retained earnings.
For business combination not under common control, the Company recognizes the combination cost
determined on the combination date as the initial cost of long-term equity investment.
When exercising control over an investee not under common control due to additional investment or
other reasons, in stand-alone financial statements, the investor shall change to the cost method and use
the carrying amount of the previously-held equity investment, together with the additional investment
cost, as the initial investment cost under the cost method. The audit, legal, valuation and consulting
fees, other intermediary fees, and related administrative fees paid by the absorbing party or acquirer
for the business combination, shall be recognized in profit or loss as invurred; the cost of issuing
equity securities or debt securities as the combination consideration shall be included in the initial cost
of the equity securities or debt securities.
(2) Long-term equity investments acquired by other means
For long-term equity investments acquired from making payments in cash, the initial cost is the
actually paid purchase cost.
For long-term equity investments acquired from issuance of equity securities, the initial cost is the fair
value of the issued equity securities.
If the exchange of non-monetary assets has commercial substance, and the fair values of assets traded
out and traded in can be measured reliably, the initial cost of long-term equity investment traded in
with non-monetary assets are determined based on the fair values of the assets traded out together with
relevant taxes unless there is any conclusive evidence that the fair values of the assets traded in are
more reliable. If the exchange of non-monetary assets does not meet the above criteria, the book value
of the assets traded out and relevant taxes are recognized as the initial cost of long-term equity
investment traded in.
For long-term equity investment acquired from debt restructuring, the initial cost is determined based
on the fair value.
3. Subsequent measurement and recognition of profit or loss
(1) Long-term equity investment addopting cost method
Long-term equity investments of the Company in its subsidiaries are accounted for at cost method,
except for the actual price paid for acquisition of investment or the cash dividends or profits contained
司公限有份股心中游旅海东大南海 2016 文全告报度年年
in the consideration which have been declared but not yet distributed, the Company recognizes the
proportion it shall enjoy in the cash dividends or profits declared by the investee as current investment
income.
(2) Long-term equity investment addopting equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using the equity
method. If the cost of initial investment is in excess of the proportion of the fair value of the net
identifiable assets in the investee when the investment is made, the difference will not be adjusted to
the initial cost of long-term equity investment; if the cost of initial investment is in short of the
proportion of the fair value of the net identifiable assets in the investee when the investment is made,
the difference will be included in the current profit and loss.
The Company recognizes the share of the investee’s net profits or losses, as well as its share of the
investee’s other comprehensive income, as investment income or losses and other comprehensive
income, and adjusts the carrying amount of the investment accordingly. The carrying amount of the
investment shall be reduced by the portion of any profit distributions or cash dividends declared by the
investee that is attributable to the investor. The investor’s share of the investee’s owners’ equity
changes, other than those arising from the investee’s net profit or loss, other comprehensive income or
profit distribution, would be recognized in the investor’s equity, and the carrying amount of the
long-term equity investment shall be adjusted accordingly.
The Company recognizes its share of the investee’s net profits or losses after making appropriate
adjustments based on the fair values of the investee’s identifiable net assets at the acquisition date
according to the Company’s accounting policies and accounting period. When holding the investment,
if the investee is capable of providing consolidated financial statements, the profit or loss shall be
measured based on the net profit, other comprehensive income and other changes in owners’ equity
attributed to the Company recorded in the consolidated financial statements.
The unrealized profits or losses resulting from transactions between the Company and its associate or
joint venture are eliminated in proportion to the Company’s equity interest in the investee, based on
which investment income or losses shall be recognised. Any losses resulting from transactions
between the investor and the investee, which are attributable to asset impairment shall be recognized
in full. The transactions of investing or selling assets between the Company and its associate or joint
venture are accounted for under relevant accounting policies when the asset constitutes a business.
When the Company confirms that it should share losses of the investee, treatment shall be done in
following sequence: firstly, the book value of the long-term equity investment shall be reduced;
secondly, where the book value is insufficient to cover the share of losses, investment losses are
recognized to the extent of book value of long-term equity which form net investment in the investee
in substance and the book value of long-term equity shall be reduced; finally, after all the above
treatments, if the Company is still responsible for any additional liabilities in accordance with the
司公限有份股心中游旅海东大南海 2016 文全告报度年年
provisions stipulated in the investment contracts or agreements, estimated liabilities are recognized
and included into current investment loss according to the obligations estimated to undertake. If the
investee achieves profit in subsequent periods, the treatment is in the reversed sequence described
above, i.e. after deduct any unrecognized investment losses, reduce book value of estimated liabilities
recognized, restore book values of other long-term equity which form net investment in the investee in
substance, and of long-term equity investment, and recognize investment income at the same time.
(3) Disposal of long-term equity investment
On disposal of a long-term equity investment, the difference between the proceeds actually received
and the carrying amount shall be recognized in profit or loss for the current period.
For a long-term equit investment accounted for using the equity method, any other comprehensive
income previously recognized shall be accounted for on the same basis as would have been required if
the investee had directly disposed of the related assets or liabilities on a por-rata basis upon the
disposal of the equity investment. The owners’ equity recognised due to the investor’s share of the
investee’s owners’ equity changes, other than those arising from the investee’s net profit or loss, other
comprehensive income or profit distribution, is included in current profit or loss on a pro-rata basis.
When the Company can no longer exercise joint control of or significant influence over an investee
due to partial disposal of equity investment or other reasons, the remaining equity investment shall be
accounted for in accordance with “Accounting Standard for Business Enterprises No.22-Financial
Instruments: Recognition and Measurement”. The difference between the fair value and the carrying
amount at the date of the loss of joint control or significant influence shall be charged to profit or loss
for the current period. When the previously-held equity investment is accounted for under the equity
method, any other comprehensive income previously recognized shall be accounted for on the same
basis as would have been required if the investee had directly disposed of the related assets or
liabilities for the current period upon discountinuation of the equity method. The owners’ equity
recognised due to the investor’s share of the investee’s owners’ equity changes, other than those
arising from the investee’s net profit or loss, other comprehensive income or profit distribution, is
transferred to current profit or loss upon discontinuation of the equity method.
When no longer exercise control over an investee due to partial disposal of equity investment or other
reasons, and with the retained interest, still has joint control of , or significant influence over, the
investee, when preparing the individual financial statements, the Company shall change to the equity
method and adjust the remaining equity investment as if the equity method had been applied from the
date of the first acquisition. If the Company can not exercise joint control of or significant influence
over the investee after partial disposal of equity investment, the remaining equity investment shall be
accounted for in accordance with “Accounting Standard for Business Enterprises No.22-Financial
Instruments: Recognition and Measurement”, and the difference between the fair value and carrying
amount at the date of the loss of control shall be chared to profit or loss for the current period.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
The equity investment disposed was obtained over additional investment or other reasons through
business combination, when preparing the individual financial statements, and the remaining equity
investment accounted on cost method or equity method, the other comprehensive income and other
owner’s equity recognized due to the equity investment held before acquisition date was accounted for
under the equity method are carried forward on a pro-rata basis; when the remaining equity investment
is accounted for in accordance with “Accounting Standard for Business Enterprises No. 22 – Financial
Instruments: Recognition and Measurement”, the other comprehensive income and other owner’s
equity are totally carried forward.
15. Investment property
Measurement model of investment real estate
Cost measurement
Depreciation or amortization method
Investment property refers to possessing real estate for gaining rent or capital appreciation, or both,
including the rental of the land use right, possession and prepare to value-added after the transfer of
the land use rights and the rental of buildings leased (Including rental buildings after completion of
construction or development activities or in the development processing).
Investment property is measured at their actual cost in the Company. Due to the method of
determining is actual cost model for investment property-its method of provision for depreciation
policy is same with fixed assets’ when the investment properties are constructions or buildings, its
method of provision for amortization policy is same with Intangible assets’ when the investment
property is land usage right.
16. Fixed assets
）））） （（（（
1 Recognition criteria
Fixed assets refer to the tangible assets held for the purpose of producing commodities, rendering
services, renting or business management with useful lives exceeding one year. Fixed assets will only
be recognized when all the following criteria are satisfied:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company;
(2) The costs of the fixed assets can be measured reliably.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
）））） （（（（
2 Depreciation method
Estimated useful Estimated net Annual
Category Depreciated
life residual rate depreciation rate
Buildings and straight-line-metho
20-40 5 4.75-2.37
constructions d
Machinery straight-line-metho
8-20 5 11.87-4.75
equipment d
Electronic
straight-line-metho
entertainment 5-16 5 19-5.93
d
equipment
Transportation straight-line-metho
7-12 5 13.57-7.91
equipment d
straight-line-metho
8 5 11.87
Other equipment d
straight-line-metho
5 5
Improvement d
(3) Recognition basis, pricing and depreciation method for fixed assets under financing lease
17. Construction in progress
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The initial book values of the fixed assets are stated at total expenditures incurred before construction
in progress reaches the working condition for their intended use. For construction in progress that has
reached working conditions for its intended use but for which the completion of settlement has not
been handled, it shall be transferred into fixed assets at the estimated value according to the project
budget, construction price or actual cost, etc. from the date when it reaches the working conditions for
its intended use. And the fixed assets shall be depreciated in accordance with the Company’s policy on
fixed asset depreciation. Adjustment shall be made to the originally and provisionally estimated value
based on the actual cost after the completion of settlement is handled, but depreciation already
provided will not be adjusted.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
18. Borrowing costs
1. Recognition principles of capitalization of borrowing costs
Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary
expenses, exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and
construction or production of assets eligible for capitalization should be capitalized and recorded into
asset costs; other borrowing costs should be recognized as costs according to the amount incurred and
be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets
which may reach their intended use or sale status only after long-time acquisition and construction or
production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash
assets or the undertaking of interest-bearing debts for acquiring and constructing or producing assets
eligible for capitalization, have already been incurred;
(2) Borrowing costs have already been incurred;
(3) The acquisition and construction or production activities which are necessary to prepare the
assets for their intended use or sale have already been started.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of
capitalization, excluding the period of capitalization suspension of borrowing costs.
Capitalization of borrowing costs should be ceased when the acquired and constructed or produced
assets eligible for capitalization have reached their intended use or sale condition.
When some projects among the acquired and constructed or produced assets eligible for capitalization
are completed and can be used separately, the capitalization of borrowing costs of such projects should
be ceased.
If all parts of the acquired and constructed or produced assets are completed but the assets cannot be
used or sold externally until overall completion, the capitalization of borrowing costs should be ceased
at the time of overall completion of the said assets.
3. Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months, the capitalization of
borrowing costs should be suspended; if the interruption is necessary for the acquisition and
construction or production to prepare the assets for their intended use or sale, the capitalization of
borrowing costs should continue. The borrowing costs incurred during interruption are recognized in
司公限有份股心中游旅海东大南海 2016 文全告报度年年
the current profit and loss, and the capitalization of borrowing costs continues after the restart of the
acquisition and construction or production activities of the assets.
4. Calculation method of capitalization amount of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for
capitalization, borrowing costs of special borrowing actually incurred in the current period less the
interest income of the loans unused and deposited in bank or return on temporary investment should
be recognized as the capitalization amount of borrowing costs.
As for general borrowings used for acquiring and constructing or producing assets eligible for
capitalization, the interest of general borrowings to be capitalized should be calculated by multiplying
the weighted average of asset disbursements of the part of accumulated asset disbursements exceeding
special borrowings at the end of every month by the capitalization rate of used general borrowings.
The capitalization rate is calculated by weighted average interest rate of general loans.
As for borrowings with discount or premium, the to-be-amortized discount or premium in each
accounting period should be recognized by effective interest rate method, and the interest for each
period should be adjusted.
19. Biological assets
20. Oil-and-gas assets
21. Intangible assets
(1) Measurement, service life and impairment test
1. Measurement method of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The cost of an externally acquired intangible asset comprises its purchase price, related taxes and
surcharges and any other directly attributable expenditure of preparing the asset for its intended use. If
the deferred payment of purchase price of intangible assets exceeding normal credit terms is
substantially of financial nature, the cost of intangible assets should be recognized at the present value
of the purchase price.
The intangible assets which the debtor uses to pay back the debt in debt restructuring should be
recognized at the fair value of the intangible assets. The difference between the book value of
restructured debts and the fair value of intangible assets used to pay back the debt should be recorded
into the current profit and loss;
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets
司公限有份股心中游旅海东大南海 2016 文全告报度年年
traded in or out can be measured reliably, the intangible assets traded in by the trade of non-monetary
assets should be recognized at the fair value of the assets traded out, unless any unambiguous evidence
indicates that the fair value of the assets traded in is more reliable; as to the non-monetary assets trade
not meeting the aforesaid premise, the book value of the assets traded out and related taxes payable
should be recognized as the cost of the intangible assets traded in, with gains or losses not recognized.
The intangible assets obtained by the absorption and merger of an enterprise under common control
are recognized at the book value of the merged enterprise; the intangible assets obtained by the
absorption and merger of an enterprise not under common control are recognized at the fair value.
Costs of intangible assets developed internally and independently include: the costs of materials and
labor services used to develop the intangible assets, the registration fee, the amortization of other
patents and franchise used in the process of development, the interest of capitalization, and other
direct expenses for preparing the intangible assets for their intended use.
(2) Subsequent measurement
The useful life of intangible asset is analyzed on acquisition.
As for intangible assets with limited useful lives, straight-line amortization method is adopted in the
period when the intangible assets generate economic benefit for enterprise; if the period when the
intangible assets generate economic benefit for enterprise cannot be forecasted, the intangible assets
should be deemed as those with indefinite useful lives and should not be amortized.
2. Estimation of useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land use right 50 years Validity term of land use certificate
The useful lives and amortization method of intangible assets with limited useful lives are reviewed at
the end of each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year
are not different from those estimated before.
3. Determination basis of intangible assets with indefinite useful lives
As at the balance sheet date, the Company has no intangible assets with indefinite useful lives.
Note: explain the pricing method for intangible assets. Explain the service life estimate for those
intangible assets with finite useful lives. Explain the determination basis for those intangible assets
without finite useful lives and the procedures on approval
(2) Accounting policy for internal research and development spending
Note: according to the characteristic of the internal R&D, explain the specific categorization standards
of study phase and development stage, and specific condition of the expenditure capitalization in
司公限有份股心中游旅海东大南海 2016 文全告报度年年
development stage
The Company is complying with the disclosure requirement of disclosure requirement of “Information
Disclosure Guidelines of Shenzhen Stock Exchange No.4 – Listed Companies Engaged in planting
business”
Note: as for the company with different R&D mode, disclose the R&D expenditure accounting policy
in aspect of the characteristics of the R&D activities. For example, as for the global R&D activities of
creating a scientific research system and breakthrough variety, and the specific R&D activity on
market segmentation research, disclosed the categorization standards respectively on research phase
and development stage, as well as the specific condition of the expenditure capitalization in
development stage
22. Impairment of long-term assets
If there is any indication that the long-term assets such as long-term equity investment, investment
properties accounted through cost pattern, fixed assets, construction in progress, intangible assets etc.
may be impaired at the balance sheet date, an impairment test would be implemented. If the result of
impairment test indicates the recoverable amounts of the long-term assets are lower than their book
values, the difference between the recoverable amounts and book values is recognized as impairment
loss, provisions for impairment of the long-term assets are made. The recoverable amounts of the
long-term assets are the higher of their fair values less costs to disposal and the present values of the
estimated future cash flows of the long-term assets. The provision for impairment is recognized and
calculated on the individual basis. If it is difficult to estimate the recoverable amount of the individual
asset, the Company estimates the recoverable amount of the asset group that the individual asset
belongs to. The asset group is the minimum asset group which can generate cash flows independently.
The mentioned impairment loss will not be reversed in subsequent accounting period once it had been
recognized.
23. Long-term deferred expenses
Long-term deferred expenses are various expenses already incurred, which shall be amortized over
current and subsequent periods with the amortization period exceeding one year.
1. Amortization method
Long-term deferred expenses are evenly amortized over the beneficial period.
2. Amortization period
Item Amortization period
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Hotel exterior wall decoration 4 years
24. Employee compensation
(1) Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, actually
occurred short-term employee benefits as a liability, with a corresponding charge to current profit or
loss or relevant cost of assets.
Payments made by the Company of social security contributions for employees, and union running
costs and employee education costs provided in accordance with relevant requirements, in the
accounting period in which employees provide services, is calculated according to prescribed bases
and percentages of provision in determining the amount of employee benefits.
Employee benefits which are non-monetary benefits are measured at fair value.
(2) Post-employment benefits
Payments made by the Company of basic endowment insurance and unemployment insurance in
accordance with relevant requirements of local government, in the accounting period in which
employees provide services, is calculated according to prescribed bases and percentages of provision
of local requirements in determining the amount payable, is recognised as a liability, with a
corresponding charge to current profit or loss or relevant cost of assets.
(3) Termination benefits
When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal, or when the Company recognises costs or
expenses related to a restructuring that involves the payment of termination benefits (the ealier is
adopted) , the emplyee benefits liabilities caused by termination benefits are recognised and included
in current profit or loss.
(4) Accounting method for other long-term employee benefits
25. Estimated liabilities
When the Company is involved in proceedings, debt guarantees, onerous contracts and reorganization
events, if such events may require delivery of assets or rendering of services in the future and the
司公限有份股心中游旅海东大南海 2016 文全告报度年年
amounts of such events can be reliably measured, estimated liabilities are recognized.
1. Recognition criteria of estimated liabilities
The Company recognizes the estimated liabilities when obligations related to contingencies satisfy all
the following conditions:
(1) the obligation is a present obligation of the Company;
(2) the performance of the obligation is likely to result in outflow of economic benefits from the
Company; and
(3) the amount of the obligation can be measured reliably.
2. Measurement method of estimated liabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses
required for the performance of relevant present obligations.
The Company, when determining the best estimate, has had a comprehensive consideration of risks
with respect to contingencies, uncertainties and the time value of money. If the time value of money is
significant, the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of
all the outcomes within this range are equal, the best estimate shall be determined at the average
amount of upper and lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence
of all the outcomes within this range are unequal despite such a range exists, the outcomes within this
range are unequally likely to occur, in case that the contingency involves a single item, the best
estimate shall be determined at the most likely outcome; if the contingency involves two or more
items, the best estimate should be determined according to all the possible outcomes with their
relevant probabilities.
When all or part of the expenses necessary for the settlement of an estimated liability of the Company
is expected to be compensated by a third party, the compensation should be separately recognized as
an asset only when it is virtually certain that the compensation will be received. The amount
recognized for the compensation should not exceed the book value of the estimated liability.
26. Share-based payment
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
27. Other financial instrument as preferred stock and perpetual capital securities
Nil
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Recognition and measurement principles of revenue from sales of goods
(1) Overall recognition and measurement principles of revenue from sales of goods
When the Company has transferred significant risks and rewards of ownership of the goods to the
buyer; the Company retains neither continuous management rights associated with ownership of the
goods sold nor effective control over the goods sold; the relevant amount of revenue can be measured
reliably; it is highly likely that the economic benefits associated with the transaction will flow into the
enterprise, and the relevant amount of cost incurred or to be incurred can be measured reliably,
revenue from sales of goods shall be recognized.
(2) Recognition criteria of revenue from selling goods and specific recognition timing criteria of
revenue of the Company
The Company provides hotel accommodation service as well as goods. After the recognition of both
housekeeping department and hotel reception desk, the daily business report is established. The
accounting department makes sure the significant risks and rewards of ownership of the goods have
been transferred to the client, the selling revenue is recognized.
2. Recognition and measurement principles of revenue from providing labor services
(1) The hotel room service, catering (breakfast) service etc. of the Company, after the hotel room
service, catering (breakfast) service etc. had provided, and each consumption department had checked
with the receptionist, the daily business report and detailed report of account receivables are
extablished, and the reports are submitted to accounting department, which recognizes the revenue
after examining the daily reports.
(2) Revenue from outsourced restaurant and site rental is recognized according to contract or
agreement time period and time of collecting.
3. Recognition basis of revenue from transferring the use right of assets
The economic benefits related to the transaction may flow into entities and the amount of revenue can
be reliably measured. The amount of revenue from transferring use right of assets is recognized as
follows in different circumstances:
(1) The amount of interest income is determined by the time and effective interest rate for others to
司公限有份股心中游旅海东大南海 2016 文全告报度年年
use the monetary funds of the Company.
(2) The amount of revenue from usage is determined according to the charging time and method as
agreed in relevant contract or agreement.
29. Government subsidies
(1) Recognition basis and accounting treatment for government subsidies related to assets
Government subsidies related to acquisition and construction of fixed assets, intangible assets and
other long-term assets are recognized as deferred income, and included in non-operating income by
stages within the useful life of the assets acquired and constructed;
(2) Recognition basis and accounting treatment for government subsidies related to income
If government subsidies related to income are used to compensate the enterprise’s relevant expenses or
losses in future periods, such government subsidies should be recognized as deferred income on
acquisition and be included into the current non-operating income in the period of recognizing
relevant expenses; if government subsidies related to income are used to compensate the enterprise’s
relevant expenses or losses incurred, such government subsidies are directly included into the current
non-operating income on acquisition.
30. Deferred income tax assets and deferred income tax liabilities
Deductible temporary differences are recognized as deferred income tax assets to the extent that it
shall not exceed future taxable income possibly available to be against the deductible temporary
difference.
Deductible temporary differences are recognized as deferred income tax liabilities except in special
circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not
be recognized include: the initial recognition of goodwill; other transactions or matters excluding
business combinations, which affect neither accounting profits nor the taxable income (or deductible
losses) when occurred.
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and
discharge liabilities simultaneously, the income tax assets and income tax liabilities of the Company
司公限有份股心中游旅海东大南海 2016 文全告报度年年
for the current period shall be presented based on the net amount after offset.
When the Company has the legal rights to balance income tax assets and income tax liabilities in
current period with net settlement, and deferred income tax assets and deferred income tax liabilities
are related to the income tax which imposed on the same taxpaying subject by the same tax collection
authority or to different taxpaying subjects, but, in each important future period in connection with the
reverse of deferred income tax assets and liabilities, the involved taxpaying subject intends to balance
income tax assets and liabilities in current period with net settlement at the time of obtaining assets
and discharging liabilities, deferred income tax assets and deferred income tax liabilities of the
Company shall be presented based on the net amount after offset.
31. Lease
）））） （（（（
1 Accounting of leased assets
1. Accounting of leased assets
Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the
whole lease period (including rent-free period) and shall be included in the current expenses. Initial
direct costs related to lease transactions paid by the Company shall be included in the current
expenses.
If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the
asset, such expenses shall be deducted from total lease fees, and residual lease fees shall be amortized
over the lease period and included in the current expenses.
2. Accounting of leasing assets
Lease fees received by the Company from leasing assets shall be amortized at straight-line method
over the whole lease period (including rent-free period), and shall be recognized as lease income.
Initial direct costs related to lease transactions paid by the Company shall be included in the current
expenses; if the amount is large, it shall be capitalized, and shall be included in the current income by
stages within the whole lease period on same basis for recognition of lease income.
If the expenses related to the lease which shall be paid by the lessee are borne by the Company, such
expenses shall be deducted from total lease income by the Company, and residual lease fees shall be
amortized over the lease period.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(2) Accounting treatment of finance lease
32. Other significant accounting policies and estimate
Note: explain other significant accounting policies and estimate, including but not limit to:
determination standards and accounting treatment of the discontinued operations, basis and accounting
treatment on hedge accounting, accounting method with buy-back shares concerned, accounting
treatment of the asset-securitization business etc.
The Company is complying with the disclosure requirement of “Information Disclosure Guidelines on
Shenzhen Stock Exchange No.2- Listed Companies engaged in the relevant business solid mineral
resources”
Note: disclosed the exploration and development expenditure, resource tax, maintenance fee, safety
production cost and extract standards with relevant expenses concerned directly in the industry, as
well as annual withdrawal amount, usage condition and accounting policy
33. Adjustments for changes in principal accounting policies and estimates
(1) Changes of major accounting policies
√ Applicable□ Not applicable
Approval
Contents and reasons of accounting policy changes Note
procedures
Adjusted Item of “Business tax and surcharges” in income statement into Item of “Taxes Approved by
and surcharges” the Board
The amounts of house property tax 、 land use tax 、 vehicle and vessel use tax 、 stamp tax
Approved by
occurring after May 1, 2016 are reclassified from item of “administrative expenses” to
the Board
item of “Taxes and surcharges”
According to the document “Value Added Tax Accounting Rules” Finance and Accounting
（
Approved by
[2016] No.22 ） issued at December 3, 2016, the Company reclassify the prepay taxes into
the Board
other current assets.
the Company reclassify the direct expenses related to guest rooms which were collected by Approved by
item of “Operating expenses” into item of “Operating costs” the Board
(2) Changes of major accounting estimate
□Applicable √ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
34. Other
VI. Taxation
1. Major tax types and tax rates
Taxation type Basis of tax assessment Tax rate
Differential section of VAT calculated on revenue from sale of
Value added tax 5% 6%
、 、 、 、7% 11%
goods and service deduct VAT paid in current period in
(VAT) 17%
accordance with tax law
Urban
maintenance
Levy by the taxable business tax and VAT 7%
and construction
tax
Enterprise
Levy by taxable income 25%
income tax
Business tax Levy by taxable business revenue 5%
Education
Levy by the taxable business tax and VAT 3%
surcharge
Local education
Levy by the taxable business tax and VAT 2%
surcharge
Remaining value after deducting 30% of the original value of
Property tax 1.2% 、 12%
houses (including land price), Rental income
Land use tax Land area
As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
2. Tax preference
3. Other
VII. Notes to the main items of financial statements
1. Monetary funds
In RMB
Item Ending balance Beginning balance
Cash 273,523.86 596,940.75
Bank Deposit 26,936,724.15 19,185,451.51
Total 27,210,248.01 19,782,392.26
Other note:
2. Financial assets measured by fair value and with variations reckoned into current gains/losses
Nil
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivables
Nil
5. Accounts receivable
）））） （（（（
1 Accounts receivable by type
In RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book Book balance Provision for bad debts Book
Type
Proportio Value Proportio Proportio Value
Amount Amount Proportion Amount Amount
n n n
Accounts
receivable 1,466,400.49 50.22% 1,466,400.49 100.00% 1,466,400.49 54.20% 1,466,400.49 100.00%
with large
司公限有份股心中游旅海东大南海 2016 文全告报度年年
single amount
and accrued
for provision
of bad debt on
a single basis
Accounts
receivable
accrued for
1,453,566.38 49.78% 763,121.66 52.50% 690,444.72 1,239,009.97 45.80% 778,812.69 62.86% 460,197.28
provision of
bad debt by
portfolio
Total 2,919,966.87 100.00% 2,229,522.15 690,444.72 2,705,410.46 100.00% 2,245,213.18 460,197.28
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis as at December
31, 2016
√ Applicable□ Not applicable
In RMB
Ending balance
Content of accounts
receivable (by unit) Accounts Provision for Provision
Reason for provision
receivable bad debts ratio
Sanya Power Supply Expected unrecoverable due to aging more than five
775,304.98 775,304.98 100.00%
Company years and personnel changes
Hainan Hong Kong & Macao Expected unrecoverable due to aging more than five
464,563.21 464,563.21 100.00%
International Tourism Ltd. years
Expected unrecoverable due to aging more than five
Sanya City Council reception 101,652.32 101,652.32 100.00%
years and personnel changes
LLC SOUTH CROSS
124,879.98 124,879.98 100.00% Had declared bankruptcy
TRAVELINN
Total 1,466,400.49 1,466,400.49 -- --
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable□ Not applicable
In RMB
Beginning balance
Aging
Accounts receivable Provision for bad debts Proportion of provision
Within 1 year
Subtotal of within 1 year 651,719.17
1-2 years 18,633.00 931.65 5.00%
司公限有份股心中游旅海东大南海 2016 文全告报度年年
2-3 years 5,262.00 789.30 15.00%
3-4 years 6,942.00 1,735.50 25.00%
4-5 years 22,690.00 11,345.00 50.00%
More than five years 748,320.21 748,320.21 100.00%
Total 1,453,566.38 763,121.66
Portfolio recognized:
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
）））） （（（（
2 Situation of withdrawing or write-off for bad debts provision of accounts receivable in
current period
The amount of withdrawing for bad debts provision of accounts receivable is 3,995.18 Yuan in current period; The
amount of write-off for bad debts provision of accounts receivable is 19,686.21 Yuan in current period.
Including the followed significant amount:
In RMB
Name Amount Ways
Sanya Wuzhizhou Island Tourist Area of
Hainan Haijing Paradise International 122,729.22 Debt restructuring
Co., Ltd
Sanya Haiyuan Aoda Tourism
265,274.00 Debt restructuring
Development Co., Ltd
Total 388,003.22 --
The Company entered into a Debt Settlement Agreement with Sanya Hongyuan Investment Co., Ltd, Sanya Wuzhizhou
Island Melia Coral Hotel Management Co., Ltd, Sanya Haiyuan Aoda Tourism Development Co., Ltd and Sanya
Wuzhizhou Island Tourist Area of Hainan Haijing Paradise International Co., Ltd compensated settlement the claims
and debts that cumulated in years between the above mentioned four companies
(3) Account receivables actually cancel after verification in Period
Nil
(4) Top five accounts receivable
Book balance Proportion in total
Name Book balance Bad debt reserve Aging accounts receivable
(%)
775,304.98 775,304.98 26.55%
Sanya Power Supply Company More than five years
464,563.21 464,563.21 15.91%
Hainan Hong Kong & Macao International
Tourism Ltd. More than five years
124,879.98 124,879.98 4.28%
LLC SOUTH CROSS TRAVELINN 2-3 years
司公限有份股心中游旅海东大南海 2016 文全告报度年年
101,652.32 101,652.32 3.48%
Reception centre of Sanya Municipal
Committee More than five years
46,798.32 46,798.32 1.60%
Hainan Baoping Travel Agency More than five years
1,513,198.81 1,513,198.81 51.83%
Total
(5) Account receivables recognition terminated due to transfer of financial assets
Nil
(6) Account receivables transferred and assets & liability formed by its continuous involvement
Nil
6. Prepayments
(1) Aging analysis of repayment
In RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 58,783.23 100.00% 42,358.16 100.00%
1-2 years
2-3 years
More than 3 years
Total 58,783.23 -- 42,358.16 --
Reasons for significant repayment with over one year age without settle: Nil
(2) Top five prepayment collected by objects at ending balance
Proportion in total
Name Book balance
prepayment (%)
26,112.00 44.42
China Cable TV Network Co., LTD Sanya Branch
10,800.00 18.37
China Post Group Corporation Sanya Branch
9,557.52 16.26
Sanya Daily Office
9,303.36 15.83
Sunshine Property Insurance Co., LTD Hainan
Branch
司公限有份股心中游旅海东大南海 2016 文全告报度年年
3,010.35 5.12
China Petrochemical Marketing Co. Ltd Sanya
Branch
58,783.23 100.00
Total
Other note: Nil
7. Interest receivables
Nil
8. Dividend receivables
Nil
9. Other receivables
(1) Other receivables by type
In RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Proporti Provision Book value Proport Provision Book value
Amount Amount Amount Amount
ratio ratio
on ion
Other receivables
with large single
amount and accrued
77,363,143.31 98.85% 77,363,143.31 100.00% 77,363,143.31 98.79% 77,363,143.31 100.00%
for provision of bad
debt on a single
basis
Other receivables
accrued for
903,202.33 1.15% 729,098.81 80.72% 174,103.52 946,271.35 1.21% 734,324.98 77.60% 211,946.37
provision of bad
debt by portfolio
Other receivables
with insignificant
single amount but
accrued for
司公限有份股心中游旅海东大南海 2016 文全告报度年年
provision of bad
debt on a single
basis
Total 78,266,345.64 100.00% 78,092,242.12 174,103.52 78,309,414.66 78,097,468.29 211,946.37
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
√ Applicable□ Not applicable
In RMB
Ending balance
Content of other receivables
(by unit) Other Provision for
Provision ratio Reason for provision
receivables bad debts
Hainan Dadonghai Hotel Co., Expected unrecoverable due to aging more than
54,767,945.15 54,767,945.15 100.00%
Ltd. five years and the debtor in the abnormal operation
Cash dividends distributed in
16,899,000.00 16,899,000.00 100.00% Unrecoverable
1994-1996
Hainan Hong Kong & Macao Expected unrecoverable due to aging more than
4,145,704.16 4,145,704.16 100.00%
International Tourism Ltd. five years and faking in contact income
The bonus of participation in profit before 1996,
Guangdong Jinma Tourism
1,200,494.00 1,200,494.00 100.00% which is expected to be unrecoverable due to share
Ltd.
right replacement with Shenzhen Difu
Unrecoverable due to the custody fee was paid for
Shareholder custody fee 350,000.00 350,000.00 100.00%
other shareholders who can not be found.
Total 77,363,143.31 77,363,143.31 -- --
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable□ Not applicable
In RMB
Ending balance
Aging
Other receivables Provision for bad debts Provision ratio
Within 1 year
Subtotal within 1 year 156,048.92
1-2 years 18,468.00 923.40 5.00%
2-3 years 600.00 90.00 15.00%
More than 3 years
3-4 years
4-5 years
More than five years 728,085.41 728,085.41 100.00%
Total 903,202.33 729,098.81
Portfolio recognized:
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
□ Applicable√ Not applicable
(2) Provision for bad debts accrued, regain or switch back in the Period
The amount of withdrawing for bad debts provision of other receivables is -5,226.17 yuan in current period. And no
regains or switch back in the Period.
Including the followed significant amount:
Nil
(3) Other account receivables actually cancel after verification in Period
Nil
(4) Other account receivables category by nature of money
In RMB
Nature of money Ending book balance Beginning book balance
Original relevant companies fund accounts 54,767,945.15 54,767,945.15
Contracting profit receivable 4,145,704.16 4,145,704.16
Distributing dividends receivable 18,099,494.00 18,099,494.00
Guarantee deposit 563,818.99 561,818.99
Advance money for custody fee 350,000.00 350,000.00
Other fund accounts 23,114.20 153,764.20
Petty money 78,772.22 86,446.24
Utilities 164,165.49 70,789.50
Money from invested items 30,500.00 30,500.00
Personal social security 、 Accumulation
37,831.43 37,952.42
fund
Project funds 3,700.00 3,700.00
Cash deposit for invoices 1,300.00 1,300.00
Total 78,266,345.64 78,309,414.66
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(5) Top five other account receivables collected by arrears party at ending balance
In RMB
Proportion in total Ending balance of
Company name Nature of money Ending balance Aging
other receivables bad debt provision
Hainan Dadonghai Hotel Co., More than
Current accounts 54,767,945.15 69.98% 54,767,945.15
Ltd. five years
Cash dividends distributed in Dividends distributed and More than
16,899,000.00 21.59% 16,899,000.00
1994-1996 ought to be recovered five years
Hainan Hong Kong & Macao More than
Current accounts 4,145,704.16 5.30% 4,145,704.16
International Tourism Ltd. five years
More than
Guangdong Jinma Tourism Ltd. Dividends 1,200,494.00 1.53% 1,200,494.00
five years
More than
Shareholder custody fee Custody fee 350,000.00 0.45% 350,000.00
five years
Total -- 77,363,143.31 -- 98.85% 77,363,143.31
(6) Account receivables with government subsidies involved
Nil
(7) Other account receivables recognition terminated due to transfer of financial assets
Nil
(8) Other account receivables transferred and assets & liability formed by its continuous
involvement
Nil
10. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Classification of inventories
Ending balance Beginning balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Stock materials 876,822.10 742,966.17 133,855.93 885,380.88 745,479.33 139,901.55
Stock 22,771.38 11,102.41 11,668.97 22,771.38 11,102.41 11,668.97
司公限有份股心中游旅海东大南海 2016 文全告报度年年
commodities
Food and
52,660.42 52,660.42 39,578.03 39,578.03
beverages
Fuels 20,994.40 20,994.40 26,926.88 26,926.88
Total 973,248.30 754,068.58 219,179.72 974,657.17 756,581.74 218,075.43
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock
Exchange No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory depreciation reserve
In RMB
Increased in 2016 Decreased in 2016
Beginning
Item Reversing or Ending balance
balance Accrual Other Other
write-off
Stock materials 745,479.33 2,513.16 742,966.17
Stock
11,102.41 11,102.41
commodities
Total 756,581.74 2,513.16 754,068.58
During the normal operation, as for the amount of inventory after estimated selling price less the
estimated sales expenses and relevant taxes, determine the net realizable value
Switch back of the provisions for decline in inventory; receive the inventory that has provision for
depreciation partially
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
Nil
(4) Assets unsettled formed by construction contract which has completed at period-end
Nil
11. Divided into assets held for sale
Nil
12. Non-current assets maturing within one year
In RMB
Item Ending balance Beginning balance
Long-term differed expenses needed to
584,369.42 532,500.00
be amortized within one year
Total 584,369.42 532,500.00
Other note: nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
13. Other non-current assets
In RMB
Item Ending balance Beginning balance
Prepay corporate income tax 1,702,702.80
Prepay VAT 173,746.42
Total 1,876,449.22
Other note: nil
14. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
Ending balance Beginning balance
Item Book Provision for Provision for
Book value Book balance Book value
balance impairment impairment
Available-for-sale
5,000,000.00 5,000,000.00 9,500,000.00 5,000,000.00 4,500,000.00
equity instruments:
Total 5,000,000.00 5,000,000.00 9,500,000.00 5,000,000.00 4,500,000.00
(2) Available-for-sale financial assets measured at fair value at period-end
Nil
(3) Available-for-sale financial assets measured at cost at the end of the period
In RMB
Book balance Provision for impairment Cas
h
Dec Shareho
divi
Increa Incre reas lding
Item Beginning Decrease in Ending Beginning Ending dend
balance se in balance ase in e in ratio in
2016 balance balance s in
2016 2016 201 investee
Shenzhen Difu
Investment &
5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 14.28%
Development
Ltd
Sanya Xiangyu
4,500,000.00 4,500,000.00 18.00%
E-business Ltd.
Total 9,500,000.00 4,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 --
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(4) Changes of impairment of available-for-sale financial assets in Period
In RMB
Equity instrument Debt instrument
Classification Total
available for sale available for sale
Impaired balance accrual
5,000,000.00 5,000,000.00
at period-begin
Impaired balance accrual
5,000,000.00 5,000,000.00
at period-end
(5) Fair value of the available-for-sale equity instrument drops significantly or not
contemporarily without depreciation reserves accrued
Nil
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
Ending balance Beginning balance
Item
Provision for Provision for
Book balance Book Value Book balance Book Value
impairment impairment
Hubei Jingsha
Dadonghai Club 4,566,207.42 4,566,207.42 4,566,207.42 4,566,207.42
Ltd.
Sanya Shun’an
5,150,166.84 5,150,166.84 5,150,166.84 5,150,166.84
Casino
Total 9,716,374.26 9,716,374.26 9,716,374.26 9,716,374.26
(2) Important held-to-maturity investment at period-end
Nil
(3) Reclassify of held-to-maturity investment in the period
Other note: nil
16. Long-term account receivables
(1) Long-term account receivables
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(2) Long-term receivable derecognition due to the financial assets transfer
Nil
(3) Assets and liability from continuing involvement from transfer of long-term receivable
Nil
17. Long-term equity investments
Nil
18. Investment real estate
(1) Investment real estate by cost measurement
√ Applicable□ Not applicable
In RMB
Houses and Construction in
Item Land use right Total
buildings progress
I. Original book value:
1. Beginning balance
2. Increase in 2016 18,856,504.44 5,662,740.59 24,519,245.03
(1) Purchase
(2) Transfer from fixed
18,856,504.44 5,662,740.59 24,519,245.03
assets\intangible assets
(3) Increase in business merger
3. Decrease in 2016
(1) Disposal
(2) Other transfer
4. Ending balance 18,856,504.44 5,662,740.59 24,519,245.03
II. Accumulated depreciation
and accumulated amortization
1. Beginning balance
2. Increase in 2016 9,771,216.42 2,107,046.45 11,878,262.87
(1) Withdraw or amortize
(2) Transfer from fixed
9,771,216.42 2,107,046.45 11,878,262.87
assets\intangible assets
司公限有份股心中游旅海东大南海 2016 文全告报度年年
3. Decrease in 2016
(1) Disposal
(2) Other transfer
4. Ending balance 9,771,216.42 2,107,046.45 11,878,262.87
III. Depreciation reserve
1. Beginning balance
2. Increase in 2016 1,404,400.47 1,903,054.14 3,307,454.61
(1) Withdraw
(2) Transfer from fixed
1,404,400.47 1,903,054.14 3,307,454.61
assets\intangible assets
3. Decrease in 2016
(1) Disposal
(2) Other transfer
4. Ending balance 1,404,400.47 1,903,054.14 3,307,454.61
IV ． Book value
1. Book value at the end of the period 7,680,887.55 1,652,640.00 9,333,527.55
2. Book value at the beginning of the
period
(2) Investment real estate by fair value
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
Nil
19. Fixed assets
(1) Fixed assets
In RMB
Decoration
Buildings and Electronic and
Item Machines Vehicles Others Total
Constructions Equipments improveme
nt
司公限有份股心中游旅海东大南海 2016 文全告报度年年
I. Original book value:
1.Beginning 155,421,287.5
13,141,471.00 2,091,322.77 2,564,213.96 2,059,452.29 458,732.39 175,736,480.00
balance
2. Increase in
270,561.80 108,617.74 379,179.54
2016
(1) Purchase 270,561.80 108,617.74 379,179.54
(2) transfer in of
the construction
project
(3) the increase in
business combination
3. Decrease in
18,856,504.44 249,506.84 464,680.58 458,732.39 20,029,424.25
2016
(1) Disposal or
249,506.84 464,680.58 458,732.39 1,172,919.81
scrap
(2) Transfer to
18,856,504.44 18,856,504.44
investment property
136,564,783.1
4.Ending balance 13,141,471.00 2,091,322.77 2,585,268.92 1,703,389.45 156,086,235.29
II. Accumulated
depreciation
1.Beginning
75,404,131.86 8,814,547.35 1,101,790.90 2,098,234.92 1,476,565.95 354,317.97 89,249,588.95
balance
2. Increase in
2,552,331.48 278,128.73 151,144.80 249,282.19 215,664.27 87,159.12 3,533,710.59
2016
(1) Disposal 2,552,331.48 278,128.73 151,144.80 249,282.19 215,664.27 87,159.12 3,533,710.59
3. Decrease in
9,771,216.42 236,370.66 244,320.42 441,477.09 10,693,384.59
2016
(1) Disposal or
236,370.66 244,320.42 441,477.09 922,168.17
scrap
(2) Transfer to
9,771,216.42 9,771,216.42
investment property
4.Ending balance 68,185,246.92 9,092,676.08 1,252,935.70 2,111,146.45 1,447,909.80 82,089,914.95
III ． Depreciation
reserve
1.Beginning
32,477,188.64 2,527,851.26 1,872.00 199,992.57 35,206,904.47
balance
2. Increase in
2016
(1) Withdraw
3. Decrease in
1,404,400.47 1,872.00 199,992.57 1,606,265.04
2016
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(1) Disposal or
1,872.00 199,992.57 201,864.57
scrap
(2) Transfer to
1,404,400.47 1,404,400.47
investment property
4.Ending balance 31,072,788.17 2,527,851.26 33,600,639.43
IV Book value of
．
fixed assets
(1) Book value at the
37,306,748.06 1,520,943.66 838,387.07 474,122.47 255,479.65 40,395,680.91
end of the period
(2) Book value at the
47,539,967.09 1,799,072.39 989,531.87 464,107.04 382,893.77 104,414.42 51,279,986.58
beginning of the period
(2) Fixed assets temporarily idled
Nil
(3) Fixed assets rented by finance leases
Nil
(4) Fixed assets leased in the operating leases
Nil
(5) Fixed assets without certificate of title completed
Nil
20. Construction in process
(1) Construction in process
Nil
(2) Changes of major construction in process in the period
Nil
(3) Accrual of the impairment of construction in progress
Nil
21. Engineering materials
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
22. Disposal of fixed assets
Nil
23. Productive biological assets
(1) Measured by cost
□ Applicable√ Not applicable
(2) Measured by fair value
□ Applicable√ Not applicable
24. Oil-and-gas assets
□ Applicable√ Not applicable
25. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent right Total
technology
I. Original book value
1. Beginning balance 87,315,277.74 87,315,277.74
2. Increase in the
period
(1) Purchase
(2) Internal R&D
(3) Increase in
enterprise merger
3. Decrease in the
5,662,740.59 5,662,740.59
period
(1) Disposal
(2) Transfer to investment
5,662,740.59 5,662,740.59
property
4. Ending balance 81,652,537.15 81,652,537.15
II. Accumulated
amortization
1. Beginning balance 31,619,996.24 31,619,996.24
2. Increase in the
868,727.16 868,727.16
period
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(1) Withdraw 868,727.16 868,727.16
3. Decrease in the
2,107,046.45 2,107,046.45
period
(1) Disposal
(2) Transfer to investment
2,107,046.45 2,107,046.45
property
4. Ending balance 30,381,676.95 30,381,676.95
III. Depreciation reserve
1. Beginning balance 29,343,890.98 29,343,890.98
2. Increase in the
period
(1) Withdraw
3. Decrease in the
1,903,054.14 1,903,054.14
period
(1) Disposal
(2) Transfer to investment
1,903,054.14 1,903,054.14
property
4. Ending balance 27,440,836.84 27,440,836.84
IV. Booking value
1. Ending book value 23,830,023.36 23,830,023.36
2. Beginning book
26,351,390.52 26,351,390.52
value
The proportion of intangible assets balance accounted for by the company's internal R & D by the end
(2) Land use right without certificate of title completed
Nil
26. Development expenditure
Nil
27. Goodwill
(1) The original book value of goodwill
Nil
(2) Goodwill impairment provision
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
28. Long-term deferred expenses
In RMB
Increase in the Amortization in
Item Beginning balance Other decreases Ending balance
period the period
B building coating
1,508,750.00 207,477.69 644,883.72 1,071,343.97
project
Total 1,508,750.00 207,477.69 644,883.72 1,071,343.97
Other note: nil
29. Deferred income tax assets / deferred income tax liabilities
Nil
30 .Other non-current assets
Nil
31 .Short-term loans
Nil
32. Financial liabilities measured at fair value through current profit and loss
Nil
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
Nil
35. Accounts payable
(1) Details of accounts payable are as follows
In RMB
Item Ending balance Beginning balance
Within 1 year (including 1 year) 856,048.21 923,373.39
1-2 years (including 2 years) 199,317.78 205,220.78
司公限有份股心中游旅海东大南海 2016 文全告报度年年
2-3 years (including 3 years) 334,316.59 334,316.59
Over 3 years 577,882.93 952,691.61
Total 1,967,565.51 2,415,602.37
(2) Accounts payable with major amount and aging of over one year
In RMB
Item Ending balance Reason
Purchase amount recorded without
Provisional estimation 788,499.69
invoice issued
Total 788,499.69 --
Other note: nil
36. Accounts received in advance
(1)Accounts received in advance
In RMB
Item Ending balance Beginning balance
Within 1 year (including 1 year) 1,272,672.89 601,642.54
1-2 years (including 2 years) 141,408.02 133,860.80
2-3 years (including 3 years) 65,874.80 23,959.76
Over 3 years 414,568.57 394,391.85
Total 1,894,524.28 1,153,854.95
(2) Accounts received in advance with major amount and aging of over one year
In RMB
Item Ending balance Reason
Guangzhou South Holiday International
101,244.00 No settlement
Travel Service Co., Ltd. Sanya Branch
Hainan QiongZhong Ecological
31,314.00 No settlement
Investment Guarantee Co., Ltd.
Beijing Yualuxincheng Management
30,540.00 No settlement
Consulting Co., Ltd.
司公限有份股心中游旅海东大南海 2016 文全告报度年年
PEGAS Zheng Qingbo 32,243.02 No settlement
Sanya Public Security Fire Control Team 19,420.88 No settlement
Total 214,761.90 --
(3) Assets settled formed by construction contract which has un-completed at period-end
Nil
37. Employee compensation payable
(1) Classification of employee compensation payable
In RMB
Increase in the
Item Beginning balance Decrease in the period Ending balance
period
I. Short-term employee benefits 2,150,364.40 9,573,421.28 9,575,271.32 2,148,514.36
II. Post-employment benefits -
826,995.84 826,995.84
defined contribution plans
Total 2,150,364.40 10,400,417.12 10,402,267.16 2,148,514.36
(2) Short-term employee benefits
In RMB
Beginning
Item Increase in the period Decrease in the period Ending balance
balance
1.Salary, bonus, allowance and
1,295,854.64 7,403,313.17 7,399,621.82 1,299,545.99
subsidy
2.Employee welfare 1,395,410.60 1,395,410.60
3.Social insurance premium 395,717.10 395,717.10
Of which: including: medical
355,700.25 355,700.25
insurance expenses
Work injury insurance expenses 17,785.23 17,785.23
Maternity insurance 22,231.62 22,231.62
4.Housing provident funds 120,106.36 120,106.36
5.Labor union expenditures and 854,509.76 258,874.05 264,415.44 848,968.37
司公限有份股心中游旅海东大南海 2016 文全告报度年年
employee education expenses
Total 2,150,364.40 9,573,421.28 9,575,271.32 2,148,514.36
(3) Details of defined contribution plans
In RMB
Item Beginning balance Increase in the period Decrease in the period Ending balance
1.Basic endowment
790,549.48 790,549.48
insurance expenses
2.Unemployment
36,446.36 36,446.36
insurance expenses
Total 826,995.84 826,995.84
Other note:
38 .Taxes payable
In RMB
Item Ending balance Beginning balance
VAT 228,923.41 135,982.62
Enterprise income tax -1,702,702.80
Individual income tax 1.14 6,804.20
Urban maintenance and construction tax 6,505.86 6,105.02
Business tax 127,228.90
Educational surtax 2,788.22 4,360.73
Local educational surtax 1,858.82
Property tax 234,032.26
Stamp tax 246.50
Land use tax 108,588.06
Total 582,944.27 -1,422,221.33
Other note: According to ASBE (Accounting Standards for Business Enterprises), the prepay enterprise income tax
shall be reclassified by other current assets.
39. Interest payable
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
40. Dividend payable
Nil
41 .Other payables
(1) Other payables by items
In RMB
Item Ending balance Beginning balance
Fine for rule-breaking operation on the
19,810,000.00 19,810,000.00
stock of the Company
Audit fee 285,003.21 285,003.21
Project funds 317,277.05 1,246,613.78
Agency fund 139,319.74 453,720.42
Quality retention money Cash deposit
（ ） 230,096.75 248,196.75
Guarantee deposit 350,600.90 430,809.90
membership of Board director 、 the
214,506.98 148,506.98
board of supervisors
Personal fund accounts 73,752.85 91,041.38
Other fund accounts 1,001,405.96 938,635.86
Deposit and rental 662,541.29
Total 23,084,504.73 23,652,528.28
(2) Other payables with large amount and aging of over one year
In RMB
Company name Ending balance Reason for non-repayment or carryover
China Securities Regulatory
19,810,000.00 Financial difficulty
Commission
Hong Kong Deloitte & Touche LLP 285,003.21 No settlement
Sanya Shuxin Building Waterproofing
170,000.00 No settlement
Co. Ltd
161,111.03 No settlement
China Building Decoration Company
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Hannan Branch
Total 20,426,114.24 --
Other note: nil
42. Divided into liability held for sale
Nil
43. Non-current liability due within one year
Nil
44. Other current liability
Nil
45. Long-term loans
Nil
46. Bond payable
Nil
47. Long-term payable
Nil
48. Long-term employee salary payable
Nil
49. Specific payable
Nil
50. Estimates liabilities
In RMB
Item Ending balance Beginning balance Reason
Withholding the understate
Other 1,489,685.04 electricity from Sanya Power
Bureau in two years
Total 1,489,685.04 --
Other explanation, including important assumptions and estimation for the major accrual liability:
司公限有份股心中游旅海东大南海 2016 文全告报度年年
At May 26,2016 the Company received lawyer’s letter of Hainan Yunfan law firm which is entrusted by Hainan Power
，
Grid Co., LTD Sanya Power Supply Bureau (hereinafter referred to as the \"Sanya Power Supply Bureau\"), the letter
claims that Sanya Power Supply Bureau found that the Company’s subsidiary South China Grand Hotel of Hainan
Dadonghai Tourism Center (Holdings) Co., Ltd’s the amount of CT is different with its marketing management system
record. The inconformity time is July, 2006, and the hotel’s CT is changing on April, 2016. Therefore, undercounted
electricity consumption amount is 10,313,373.00 kilowatt-hours, and estimated cost is 7,200,165.75 Yuan as various
electricity prices and charges.
According to the file “Law Advisory Opinion about Retroactive Power (Charge) Dispute between South China Grand
Hotel and Sanya Power Supply Bureau” issued by Beijing Junhe (Haikou) Law Firm at December 20, 2016, which
claims that Sanya Power Supply Bureau has responsibility for CT to purchase, install, enseal, unseal and change,
therefore, the responsibility of the guilty party for undercounted electricity consumption of South China Grand Hotel is
Sanya Power Supply Bureau. According to the one hundred and thirty-five item of “General Rule of Civil Law”, this
item claims that limitation of action is two years if accuser request people's court’s protection, except situations
provided by law. The Company has withheld the undercounted electricity consumption cost in 2016 which is about
1,489,685.04 Yuan during the period from April, 2014 to April, 2016.
51. Deferred income
Nil
52. Other non-current liability
Nil
53 .Share capital
In RMB
Increase or decrease (+, － )
Share capital
Beginning
balance New Shares converted Ending balance
Others Sub-total
issue granted from reserve
fund
Total shares 364,100,000.00 364,100,000.00
Other note: Nil
54. Other equity instruments
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
55 .Capital reserves
In RMB
Item Beginning balance Increase in the period Decrease in the period Ending balance
Total 54,142,850.01 54,142,850.01
Other instructions, including changes in the current period, reasons for the change: Nil
56. Treasury stock
Nil
57. Other comprehensive income
Nil
58. Reasonable reserves
Nil
59. Surplus reserves
Nil
60 .Undistributed profits
In RMB
Item The period Last period
Undistributed profit of period-begin after
-341,305,382.08 -333,827,515.68
adjustment
Plus: net profit attributable to owner of parent
-2,661,052.49 -7,477,866.40
company in the period
Undistributed profits of period-end -343,966,434.57 -341,305,382.08
Adjustment of undistributed profit at period-begin:
1) For the retroactive adjustment based on Accounting Standards for Business Enterprises and other relevant
regulations, affected undistributed profit at period-begin of 0 Yuan
2) For changes of accounting policies, affected undistributed profit at period-begin of 0 Yuan
3) For correction on major accounting errors, affected undistributed profit at period-begin of 0 Yuan
4) For changes of consolidation scope from same controlling, affected undistributed profit at period-begin of 0 Yuan
5) Other adjustment totally affected undistributed profit at period-begin of 0 Yuan
61 .Operating income and operating cost
In RMB
Amount as the period Amount as last period
Item
Income Cost Income Cost
Main business 19,117,791.52 9,693,974.20 15,885,922.90 7,873,049.71
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Other business 2,591,091.99 564,466.42
Total 21,708,883.51 10,258,440.62 15,885,922.90 7,873,049.71
62. Tax and surcharges
In RMB
Item Amount as the period Amount as last period
Urban maintenance and construction tax 72,627.03 57,342.58
Educational surtax 31,080.92 24,575.39
Property tax 482,833.44
Land use tax 289,572.87
Stamp tax 11,718.17
Business tax 503,486.90 819,179.54
Local educational surtax 20,720.64 16,383.59
Total 1,412,039.97 917,481.10
Other note: Nil
63 .Selling expenses
In RMB
Item Amount as the period Amount as last period
Salary 3,278,439.52 2,877,400.31
Depreciation 573,232.60 1,652,357.37
Water and electricity fees 188,186.48 134,181.44
Repair charges 157,060.17 376,166.50
Other expenses 734,414.49 681,967.20
Total 4,931,333.26 5,722,072.82
Other note: Nil
64 .Administrative expenses
In RMB
Item Amount as the period Amount as last period
Staff salary and welfare 4,580,727.09 3,156,688.29
Amortization of site use right 812,387.16 868,727.16
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Business entertainment 738,590.98 1,496,691.06
Labor insurance expenses 525,680.35 503,883.72
Taxes 422,907.20 1,253,059.06
Agency fee 404,696.00 402,000.00
Directors and supervisors membership
312,947.50 282,644.70
dues
Depreciation 270,946.41 306,954.24
Announcement fee 240,345.40 240,382.40
Travel expenses 212,223.67 643,482.95
Other expenses 853,184.15 1,117,749.28
Total 9,374,635.91 10,272,262.86
Other note: Nil
65 .Financial expenses
In RMB
Item Amount as the period Amount as last period
Interest expenses
Less: interest income 275,296.73 172,796.40
Gains or losses on exchange
Handling charges 81,651.44 63,582.60
Total -193,645.29 -109,213.80
Other note: Nil
66. Losses on assets impairment
In RMB
Item Amount as the period Amount as last period
I. Losses on bad debt -1,230.99 -107,753.38
VII. Loss on fixed asset impairment 792,028.88
Total -1,230.99 684,275.50
Other note: Nil
67. Gains from changes of fair value
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
68. Gains on investment
In RMB
Item Amount as the period Amount as last period
Investment income obtained from disposal
429,753.50
of available-for-sale financial assets
Other creditor’s right income from
961,165.05 422,000.00
investment
Total 1,390,918.55 422,000.00
Other note: Nil
69 .Non-operating incomes
In RMB
Amount included in current
Item Amount as the period Amount as last period
non-recurring profits or losses
Income from compensation 64,926.00 105,919.00 64,926.00
Confiscated income 1,194,445.50
Others 4,680.00 364,562.14 4,680.00
Total 69,606.00 1,664,926.64 69,606.00
Government subsidy reckoned into current gains/losses ：
Nil
70. Non-operating expenses
In RMB
Amount included in current
Item Amount as the period Amount as last period
non-recurring profits or losses
Total losses on disposal of
48,887.07 90,560.75 48,887.07
non-current assets
Including: loss on disposal of
48,887.07 90,560.75 48,887.07
fixed assets
Amercement outlay 200.00
Overdue fine 27.00
Total 48,887.07 90,787.75 48,887.07
Other note: Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
71 .Income tax expenses
(1) Income tax expenses
Nil
72 .Other comprehensive income
More details can be seen in Note.
73. Notes to statement of cash flows
(1) Other cash receipts related to operating activities
In RMB
Item Amount as the period Amount as last period
Interest income 275,296.73 172,796.40
Rental deposit and rent 244,000.00
Social insurance for others 11,615.09
Compensation for articles in the guest
8.00 105,919.00
rooms
Confiscated income 1,194,445.50
Handling charges for price adjustment
346,472.00
fund
Current account from Maming 240,000.00
Others 53,528.69 21,748.00
Total 584,448.51 2,081,380.90
Note of other cash receipts related to operating activities: Nil
(2) Cash paid for other operating activities
In RMB
Item Amount as the period Amount as last period
Business entertainment expenses 641,721.21 1,476,274.02
Audit fee 404,696.00 402,000.00
Announcement fee 240,345.40 240,202.00
司公限有份股心中游旅海东大南海 2016 文全告报度年年
Traveling expenses 205,293.67 643,482.95
Promotion expenses 116,318.27
Listing fee 80,000.00 80,000.00
Repair charge 79,354.40 109,586.10
Fuel fee, electricity fee and gas fee 62,767.95 114,360.00
Office expenses 31,066.70 38,972.69
Postage 30,171.22 47,493.71
Directors and supervisors membership
12,947.50 282,644.70
dues
Price adjustment fund 156,797.00 338,670.00
Individual workers insurance fee and
553,990.56 519,817.96
housing fund
Financial costs 81,651.44 63,582.60
Guarantee deposit from Sun Hongjie 657,261.23
Other expenses 274,262.27 441,379.62
Total 2,971,383.59 5,455,727.58
Note of cash paid for other operating activities: Nil
(3) Cash received with other investment activities concerned
In RMB
Item Amount as the period Amount as last period
VAT from income arising from debt
29,081.45
investment
Total 29,081.45
Cash received with other investment activities concerned: nil
(4) Cash paid for other investment activities
Nil
(5) Cash received with other financing activities concerned
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(6) Cash paid for other financing activities
Nil
74 .Supplementary information to statement of cash flows
(1) Supplementary information to statement of cash flows
In RMB
Supplementary information Amount as the period Amount as last period
(1) Net profit adjusted to cash flows from operating activities: -- --
Net profit -2,661,052.49 -7,477,866.40
Plus: provision for asset impairment -1,230.99 684,275.50
Depreciation of fixed assets, gas and oil assets and productive biological assets 3,533,710.59 4,305,154.86
Amortization of intangible assets 868,727.16 868,727.16
Amortization of long-term deferred expenses 593,014.30 285,104.90
Loss on disposals of fixed assets, intangible assets and other long-term assets (\"-\"
48,887.07 90,560.75
for gains)
Investments loss (\"-\" for gains) -1,390,918.55 -422,000.00
Decrease in inventories (\"-\" for increases) -1,104.29 90,546.10
Decrease in operating receivables (\"-\" for increases) 555,543.09 2,399,070.37
Increase in operating payables (\"-\" for decreases) -268,888.91 -2,569,099.52
Other 1,489,685.04
Net cash flows from operating activities 2,766,372.02 -1,745,526.28
2. Significant investing and financing activities not involving cash receipts and
-- --
payments:
3. Net changes in cash and cash equivalents: -- --
Ending balance of cash 27,210,248.01 19,782,392.26
Less: Beginning balance of cash 19,782,392.26 22,550,289.54
Net increase in cash and cash equivalents 7,427,855.75 -2,767,897.28
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(2) Net cash paid for subsidiary obtained in Period
Nil
(3) Net cash received from disposal of subsidiary in Period
Nil
(4) Constitution of cash and cash equivalents
In RMB
Item Ending balance Beginning balance
I. Cash 27,210,248.01 19,782,392.26
Including: cash on hand 273,523.86 596,940.75
Bank deposit available for payment at any
26,936,724.15 19,185,451.51
time
III. Ending balance of cash and cash
27,210,248.01 19,782,392.26
equivalents
Other note: Nil
75. Notes on items of changes of owner’s equity
Nil
76. Assets with ownership or right-to-use restricted
Nil
77. Foreign currency monetary items
(1) Foreign currency monetary items
Nil
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed
foreign main operation land, book-keeping currency and basis; and disclosed reasons if the
book-keeping currency changed
□ Applicable√ Not applicable
78. Hedging
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
79. Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
(1) Enterprise consolidation not under the same control in reporting period
Nil
(2) Consolidation cost and goodwill
Nil
(3) Identifiable assets, liability of the acquiree on purchasing date
Nil
(4) Gains or losses of the equity held before purchasing date, arising from re-measured by fair
value
Realized enterprise combine step by step through multi-trading and dealing obtained controlling rights in Period
□Yes √No
(5) On purchasing date or current combine period, fails to determine the combination
consideration or acquiree’s fair value of identifiable assets and liabilities rationally
Nil
(6) Other notes
Nil
2. Enterprise consolidation under the same control
Nil
3. Counter purchase
Basic information of transactions, basis of transactions constituting counter purchase, whether assets and liabilities
reserved by listed companies constituting business and their basis, confirmation of combined cost, the amount occurred
when adjusting rights and interests in accordance with equity transaction and its calculation: Nil
4. Disposal of subsidiaries
Losing controlling rights while dispose subsidiary on one-time
□Yes √No
Dispose subsidiary step by step through multi-dealings and losing controlling rights in the Period
司公限有份股心中游旅海东大南海 2016 文全告报度年年
□Yes √No
5. Changes of combination scope
Other reasons contributed the changes for combination scope (e.g. new subsidiary established, liquidate subsidiary
etc.):
Nil
6. Other
Nil
IX. Equity in other entity
1. Equity in the subsidiary
Nil
2. Changes in the owner's equity share of the subsidiary and the transaction is still controlled
subsidiary
Nil
3. Equity in arrangement of joint venture or associated enterprises
Nil
4. Important common management
Nil
5. Equity in structured entities not included in the consolidated financial statements
Nil
6. Other
Nil
X. The risk associated with financial instruments
Nil
XI. Disclosure of fair value
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
XII. Related parties and related party transactions
1. Parent company of the company
Nil
2. Subsidiary of the Company
More detail of subsidiary of the Company can be seen in Note.
3. Joint-venture and affiliated enterprise of the Company
Nil
4. Other related parties
Nil
5. Related party transactions
(1) Sale of goods/rendering of labor services/labor service offering
Sale of goods/rendering of labor services: Nil
Goods sold and labor service offering
In RMB
Contents of related party
Related party Amount as the period Amount as last period
transactions
Luoniushan Co., Ltd. Accommodation 29,566.04 28,981.89
Note of sale of goods/rendering of labor services/labor service offering: Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Nil
(3) Related leasing
Nil
(4) Related guarantee
Nil
(5) Borrowed funds of related party
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key management
In RMB
Item Amount as the period Amount as last period
Key management compensation 1,161,900 1,147,100
(8) Other related transactions
Nil
6. Receivables and payables of related parties
(1) Receivable
In RMB
Ending balance Beginning balance
Name Related party Provision for bad Provision for bad
Book balance Book balance
debt debt
Accounts
Luoniushan Co., Ltd. 10,668.00 8,413.23
receivable
(2) Payables
Nil
7. Related party commitment
Nil
8. Other
XIII. Share-base payment
1. Overall performance of share-base payment
□ Applicable√ Not applicable
2. Share-base payment settled by equity
□ Applicable√ Not applicable
3. Share-base payment settled by cost
□ Applicable√ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
4. Modification and termination of share-base payment
5. Other
XIV. Commitments and contingencies
1. Material commitments
Major commitments on balance sheet date
2. Contingencies
(1) Major contingencies on balance sheet date
At May 26,2016 the Company received lawyer’s letter of Hainan Yunfan law firm which is entrusted by Hainan Power
，
Grid Co., LTD Sanya Power Supply Bureau (hereinafter referred to as the \"Sanya Power Supply Bureau\"), the letter
claims that Sanya Power Supply Bureau found that the Company’s subsidiary South China Grand Hotel of Hainan
Dadonghai Tourism Center (Holdings) Co., Ltd’s the amount of CT is different with its marketing management system
record. The inconformity time is July, 2006, and the hotel’s CT is changing on April, 2016. Therefore, undercounted
electricity consumption amount is 10,313,373.00 kilowatt-hours, and estimated cost is 7,200,165.75 Yuan as various
electricity prices and charges.
According to the file “Law Advisory Opinion about Retroactive Power (Charge) Dispute between South China Grand
Hotel and Sanya Power Supply Bureau” issued by Beijing Junhe (Haikou) Law Firm at December 20, 2016, which
claims that Sanya Power Supply Bureau has responsibility for CT to purchase, install, enseal, unseal and change,
therefore, the responsibility of the guilty party for undercounted electricity consumption of South China Grand Hotel is
Sanya Power Supply Bureau. According to the one hundred and thirty-five item of “General Rule of Civil Law”, this
item claims that limitation of action is two years if accuser request people's court’s protection, except situations
provided by law. The Company has withheld the undercounted electricity consumption cost in 2016 which is about
1,489,685.04 Yuan during the period from April, 2014 to April, 2016.
(2) For no major contingencies disclosed, explain reasons
The Company has no major contingencies should be disclosed
司公限有份股心中游旅海东大南海 2016 文全告报度年年
3. Other
XV. Event after balance sheet date
1. Major non-adjustment events
Nil
2. Profit distribution
Nil
3. Sales return
Nil
4. Explanation on other events after balance sheet date
1. On 29 March 2017, being decision from 12th meeting of 8th session of the Board, the Company
plans no profit distribution and capitalizing of common serves either.
2. The fine 19,810,000.00 Yuan about the irregularities of the company for Company stock exchange
found by CSRC(China Securities Regulatory Commission) has been paid at February 20, 2017.
XVI. Other significant events
1 .Correction of accounting errors in previous period
Nil
2. Debt reorganization
Nil
3. Assets replacement
(1) Non-monetary assets replacement: Nil
(2) Others assets replacement: Nil
4. Annuity plan: nil
5. Termination of operation
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
6. Segment information
(1) Determination basis and accounting policy of the reportable segment: Nil
(2) Financial information of the reportable segment: Nil
(3) As for the total assets and liabilities of the reportable segment that can not be disclosed,
explain the reasons: Nil
(4) Other note: nil
7. Major trading and items shows influence on investors’ decision-making: nil
8. Other: nil
XVII. Note on financial statement of parent company
1. Accounts receivable
(1) Accounts receivable by type
Nil
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at period-end:
□ Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
□ Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
(2) Provision for bad debts accrued, regain or switch back in the Period
Nil
(3) Account receivables actually cancel after verification in Period
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(4) Top five account receivables collected by arrears party at ending balance: nil
(5) Account receivables recognition terminated due to transfer of financial assets: nil
(6) Account receivables transferred and assets & liability formed by its continuous involvement:
nil
2. Other receivables
(1) Other receivables by type
Nil
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
□ Applicable√ Not applicable
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
□ Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
□ Applicable√ Not applicable
(2) Provision for bad debts accrued, regain or switch back in the Period: Nil
(3) Other receivables actually written off in the reporting period: Nil
(4) Other account receivables category by nature of money: Nil
(5) Top five other account receivables collected by arrears party at ending balance: Nil
(6) Account receivables with government subsidies involved: Nil
(7) Other account receivables recognition terminated due to transfer of financial assets: Nil
(8) Other account receivables transferred and assets & liability formed by its continuous
involvement: Nil
3. Long-term equity investment: nil
4. Operation income and operation cost
Nil
司公限有份股心中游旅海东大南海 2016 文全告报度年年
5. Investment income: nil
6. Other
XVIII. Supplementary information
1. Details of current non-recurring profits and losses
√ Applicable□ Not applicable
In RMB
Item Amount Remark
Net income achieved from equity
Profits or losses from disposal of non-current assets 380,866.43
transfer
Fund occupancy expenses collected from non-financial Net income achieved from debt
961,165.05
investment
enterprises and accounted into current profit and loss
Other non-operating income and expense other than the
69,606.00
abovementioned ones
Total 1,411,637.48 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring
profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
2. REO and earnings per share
Earnings per share
Profits during report period Weighted average ROE Basic EPS Diluted EPS
(Yuan/share) (Yuan/share)
Net profits belong to common stock stockholders
-3.52% -0.0073 -0.0073
of the Company
Net profits belong to common stock stockholders
of the Company after deducting nonrecurring -5.39% -0.0112 -0.0112
gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□ Applicable√ Not applicable
司公限有份股心中游旅海东大南海 2016 文全告报度年年
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for
the differences adjustment audited by foreign auditing institute, listed name of the institute
4. Other
司公限有份股心中游旅海东大南海 2016 告报度年年
文全
Section XII. Documents available for references
I. Financial statement with signature and seal of legal person, person in charge of accounting
works and person in charge of accounting organ (accountant in charge);
II. Original audit report seal with accounting firms and signature and seal from CPA;
III. The original manuscripts of all documents and announcements of the Company publicly
disclosed on Securities Times and Hong Kong Commercial Daily during the report period
The above said documents are prepared in the security department of the Company
Board of Directors of
HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.
Chairman: Li Yuanbin
29 March 2017
