StockCode:000613,200613ShortFormoftheStock:Dadonghai-A,Dadonghai-B
海南大东海旅游中心股份有限公司
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
Semi-AnnualReport2018
(Full-text)
DisclosureDate:11August2018
SectionI.ImportantNotice,ContentsandParaphrase
ImportantNotice:
BoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.YuanXiaoping,PrincipaloftheCompany,FuZongren,personinchargerofaccountingworksandFuZongren,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportof2018Semi-AnnualReportisauthentic,accurateandcomplete.AlldirectorsareattendingtheBoardMeetingforReportdeliberation.TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors.Investorsareadvisedtoexercisecautionofinvestmentrisks.
Content
Semi-AnnualReport2018 ...... 2
SectionIImportantNoticeadnParaphrase ...... 2
SectionIICompanyProfileandMainFinnaicalIndexes ...... 4
SectionIIISummaryofCompanyBusiness ...... 6
SectionIVDiscussionandAnalysisofOperation ...... 7
SectionVImportantEvents ...... 12
SectionVIChangesinsharesandparticularaboutshareholders ...... 18
SectionVIIPreferredStock ...... 22
SectionVIIIParticularsaboutDirectors,SupervisorsandSeniorExecutives ...... 23
SectionIXCorporateBonds ...... 25
SectionXFinancialReport ...... 26
SectionXIDocumentsavailableforreference ...... 77
Paraphrase
ItemsReferstoContentsCSRCReferstoChinaSecuritiesRegulationCommissionSSEReferstoShenzhenStockExchangeCompanyLawReferstoCompanyLawofThePeople’sRepublicofChinaSecuritiesLawReferstoSecuritiesLawofThePeople’sRepublicofChinaCompany,theCompanyReferstoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.ArticleofAssociationReferstoArticleofAssociationofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
Shareholders’GeneralMeetingRefersto
Shareholders’GeneralMeetingofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
BoardReferstoBoardofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.SupervisoryCommitteeReferstoSupervisoryCommitteeofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.YuanReferstoCNY/RMB
RiskWarning
SecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn)arethemediaforinformationdisclosureappointedbytheCompanyforyearof2018,allinformationunderthenameoftheCompanydisclosedontheabovesaidmediashallprevail.ThereportispreparedinbilingualversionsofChineseandEnglishrespectively,intheeventofanydiscrepancyinunderstandingthetwoaforementionedversions,theChineseversionshallprevail.Investorsareadvisedtoexercisecautionofinvestmentrisks.
SectionII.CompanyProfileandMainFinnaicalIndexes
I.Companyinformation
ShortformofthestockDadonghai-A,Dadonghai-BStockcode000613,200613
ShortformoftheStockafterchanged
N/AStockexchangeforlistingShenzhenStockExchange
NameoftheCompany(inChinese)ShortformoftheCompany(inChinese)ForeignnameoftheCompanyHainanDadonghaiTourismCentre(Holdings)Co.,LtdForeignnameofshortformoftheCompany
DADONGHAILegalrepresentativeYuanXiaoping
II.Person/Waytocontact
SecretaryoftheBoardRep.ofsecurityaffairsNameWangHongjuanContactadd.DadonghaiSanyaTel.0898-88219921Fax.0898-88214998E-mailhnddhhn@21cn.com
III.Others
1.Wayofcontact
Whetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot□Applicable√NotapplicableRegistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanyhavenochangeinreportingperiod,foundmoredetailsinAnnualReport2017.
2.Informationdisclosureandpreparationplace
Whetherinformationdisclosureandpreparationplacechangedinreportingperiodornot□Applicable√NotapplicableThenewspaperappointedforinformationdisclosure,websiteforsemi-annualreportpublishappointedbyCSRCandpreparationplaceforsemi-annualreporthavenochangeinreportingperiod,foundmoredetailsinAnnualReport2017.
IV.Mainaccountingdataandfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
Currentperiod
Sameperiodoflastyear
Increase/decreaseinthisreport
y-o-yOperatingrevenue(RMB)16,173,929.3215,096,273.427.14%Netprofitattributabletoshareholdersofthelistedcompany(RMB)
1,282,165.581,719,253.80-25.42%Netprofitattributabletoshareholdersofthelistedcompany
afterdeductingnon-recurringgainsandlosses(RMB)
1,282,370.561,718,993.80-25.40%Netcashflowarisingfromoperatingactivities(RMB)3,110,677.603,231,073.10-3.73%
Basicearningspershare(RMB/Share)0.00350.0047-25.53%Dilutedearningspershare(RMB/Share)0.00350.0047-25.53%WeightedaverageROE(%)1.65%2.29%-0.64%
Endofcurrent
period
Endoflast
period
Increase/decreaseinthisreport-endoverthatoflast
period-endTotalassets(RMB)87,966,932.2787,466,661.800.57%Netassetsattributabletoshareholderoflistedcompany(RMB)
78,417,579.6877,135,414.101.66%
V.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
VI.Itemsandamountsofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMBItemAmountNoteGains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)
-477.98Lossfromfixedassetsdisposal
Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems
273.00RefundofvehicletollsTotal-204.98--
Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons□Applicable√NotapplicableInreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiesto
thePublic---ExtraordinaryProfit/loss
SectionIII.SummaryofCompanyBusiness
I.Mainbusinessesofthecompanyinthereportingperiod
WhetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustryNo
Thecompany'smainbusinessishotelaccommodationandcateringservices.Procurementofgoodsismainlythegoodsandmaterialsnecessaryforhotelandcateringoperationsbytakingtheprincipleoflowpriceandfinequality,somegoodsarepurchasedbydirectlysigningpurchasecontractswithsuppliers,andsomegoodarepurchasedbyprocurementagents.Theoperationismainlyincludingthenetworksales,andsupplementedbythenon-internetmarketingandbusinessandthetouristsfromtravelagencies.ThehotelislocatedatthecentralzoneofDadonghaiscenicspotinSanyaCity,HainanProvince,andithasbecomeamemberofthenationwidefamoushotelsbecauseoftheconvenienttransportation,beautifulenvironment,longhistory,andrichculture.However,inrecentyears,thelocalhigh-,middle-andlow-gradehotelsorguesthousesnumerouslyemerge,resultinginthesupplymuchlargerthanthemarketdemand,theindustrycompetitionisratherfierce,andthepressureofdeclineinbusinessremains.
II.Majorchangesinmainassets
1.Majorchangesinmainassets
MajorassetsNoteofmajorchangesAccountreceivable
Decreased0.33millionYuanoverthatofyearbeginning,mainlybecausefundsreturnedincreasedinreportingperiod
Otherreceivables
Increased0.66millionYuanoverthatofyearbeginning,mainlybecauseutilitiespayablefromleasersincreasedatendofthePeriodandstaffborrowingsincreasedalsoNoncurrentassetsduewithinoneyear
Decreased0.46millionYuanoverthatofyearbeginning,mainlybecausethelong-termamortizationexpensesduewithinoneyearareamortizedbymonth
2.Mainoverseasassets
□Applicable√Notapplicable
III.CoreCompetitivenessAnalysis
WhetherornottheCompanycomplieswithdisclosurerequirementofthespecialindustryNoThecompanytakeshotelaccommodationandcateringservicesastheprincipleworks,locatesatDadonghaibaywhichisoneoftheChina“Top40scenery”andtheonlyAAAAscenicspotopenforfreeinSanyaandhasthemaximumpassengerflowvolumein
SanyaCity,andisabouta5-minutedrivefromdowntownofSanyaCityandabouta30-munitedrivefromSanyaPhoenixAirport.Thehotelisonlytensofmetersdistantfromthesealevel,possessesbeautifullandscapingfullofbloomingflowersalltheyearround,andenjoysexceptionalgeography,naturalenvironmentaladvantages.ThehotelhasopenedformorethantwodecadeswhichisoneoftheoldesthotelsinSanyaandhasreceivedmanydomesticandforeignheadsofstateandnationalleaders.Intherecentyears,thecompanyhascomprehensivelyupgradedandrebuiltthehotel’ssoftwareandhardwarefacilities,furtherimprovedthehotelsinternalandexternalbusinessenvironment,andeffectivelyenhancedthebusinesscompetitiveness.Currently,themanagementofthecompany’shotelisstillinthefrontrankamonghotelsinthesamearea,withthesamescale,andatthesamelevel.Inthefuturework,thecompanywillkeeptryingtoimprovethehotel’sinternalandexternalbusinessenvironment,strengthenthesaleseffortsandthestaffconstruction,andfurtherimprovetheoperationalcapability.Duringthereportingperiod,thecompany'scorecompetencehadnosignificantchange.
SectionIV.DiscussionandAnalysisofOperation
I.Introduction
Duringthereportingperiod,thecompanyrealizedmainbusinessincomeof16,173,900Yuan,increasedby1,077,700Yuancomparedwiththesameperiodlastyear,anincreaseof7.14%;netprofitof1,281,600Yuan,decreasedby437,600Yuancomparedwiththesameperiodlastyear,adecreaseof25.45%.
Duringthereportingperiod,theCompanykeepsinnovatinginnewmarketdevelopmentandusemarketingstrategyinaflexiblewaytodevelopthesaleschannel,acquiringalargenumberofguestsourcesfromRussianbymakinguseofthefavorablegeographicaladvantageandenvironmentaladvantages.Moreover,weputmoreeffortsinrenovationandreformingoftheequipmentandfacilities,strengthenskilltrainingfortheemployeesinordertoimprovetheproductquality.Strictlycontrollingthecostmanagement,perfecttheCompany’sinternalcontrolsysteminordertoearnandlessexpenditurecosts,wecompletedtheoperationtargetsthatformulatedatbeginningoftheyearbasically.Mainworksareas:
1.Activelyexpandmarket,broadenmarketingchannels,andflexiblyutilizemarketingstrategytostriveforalargenumberofRussiancustomers.
Duringthereportingperiod,thecompanycontinuedtoincreasethesaleseffortsofnetworkmarketingchannels,strengthenthecooperationwiththedomesticleadingtravelnetworkcompanies,suchasCtrip,Tuniu,Alitrip,Asiatravel,CFHCTmall,etc.,andmakethebestofnetworkchannelsande-commerceplatformstoexpandnetworkmarketing.Takeadvantageofhotellocation,andflexiblyutilizethemarketingstrategiestocooperatewithRussiantouristsuppliersincludingHaolideInternationalTravelAgency,YouyiInternationalTravelAgencyandShengdaSinoTripetc.towinalargenumberofRussiancustomers.Duringthereportingperiod,thecompanyachievedmainbusinessincomeofRMB15,096,300,anincreaseofRMB3,033,500comparedwiththesameperiodlastyear,andrateofincreasewas25.15%.
2.Continuetostrengthenthetrainingofserviceskillssoastoimprovethequalityofhotelproductsandenhancetheproductcompetitiveness.Thehumanresourcesmobilityinthehotelindustryisratherlarge,andtheserviceskilltrainingisbecomingincreasinglyimportant.Thecompanyadherestothe“people-oriented”businessphilosophy,strengthensthebusinessserviceskilltraining,enhancesthecorporatecultureconstruction,constantlyenrichestheemployees’culturallife,andcreatesaharmoniousworkingenvironment.Thecompanyalsoconstantlystrengthenstheserviceskilltrainingtoimprovethequalityandmarketcompetitivenessofthecompany’shotelproducts.3.Adheretothestrictcostcontrol,intensifythebudgetmanagementandperformanceevaluationmechanism,continuouslycompletetheinternalcontrolsystem,andimprovetheoperationalmanagementefficiency.Duringthereportingperiod,thecompanyfocusedonexpandingitsoperations,strengthenedtheprocurementcostcontrolmanagement,adoptedperformanceevaluationmechanismandbudgetmanagement,andtookmeasures
suchasonlinepriceinquiryandhotelindustrypriceinquirytoimplementthediversificationofprocurementcostinquirychannels,andshoppedaroundforscientificcontrolofoperatingcosts.Atthesametime,thecompanycontinuedtoimprovetheinternalcontrolsystem,strengthentheinternalcontrolworknorms,intensifytheeffectiveimplementationofinternalcontrolwork,increaserevenuesandreduceexpenditures,andadheretothesafetyproduction,whicheffectivelyimprovedthemanagementefficiency,ensuredthecompany’soperationsafety,andmaximizedtheenterprisesbenefits.
Inthesecondhalfof2018,theCompanycontinuestoconsolidateandexpandsaleschannels,improvethehotel’squalityandservicestandards,andenhancethecomprehensivecompetitiveness,tolayingoutasolidfoundationforsustained,stableandhealthydevelopmentoftheCompany.
II.Mainbusinessanalysis
Seethe“I-Introduction”in“DiscussionandAnalysisofOperation”
Changeofmainfinancialdataonay-o-ybasis
InRMBCurrentperiod
Sameperiodoflastyear
Y-o-yincrease/de
crease
ReasonsforchangesOperationrevenue16,173,929.3215,096,273.427.14%
Operationcost6,000,063.365,256,112.5114.15%Salesexpenses2,800,956.102,458,144.9313.95%Administrativeexpenses5,356,455.215,089,450.575.25%
Financialcost17,563.19-180,672.66109.72%
InterestincomedeclinedinthePeriodandlastyear’sinterestarehigherthanthePeriod
Netcashflowarisingfromoperationactivities
3,110,677.603,231,073.10-3.73%Netcashflowarisingfrom
investmentactivities
-2,040,626.12-10,333,145.2080.25%
Atsameperiodoflastyear,creditors’investmentandrenovationinvestmenthavemajoramountoccurredNetcashflowarisingfromfinancingactivities
-10,000,000.00100.00%
ThecontactaccountpaidtoLuoniushanGroup
Netincreaseofcashandcashequivalent
1,070,051.48-17,102,072.10106.26%
Thenetincreaseofcashintheperiodincreased1.04millionYuan,whiletherewas17.1millionYuandeclinedatsameperiodoflastyearMajorchangesonprofitcompositionorprofitresourcesinreportingperiod□Applicable√NotapplicableNochangesonprofitcompositionorprofitresourcesinreportingperiodConstitutionofmainbusiness
InRMBOperating
revenue
Operating
cost
Grossprofit
ratio
Increase/decreaseofoperatingrevenuey-o-y
Increase/decreaseofoperating
costy-o-y
Increase/decrea
seofgrossprofitratio
y-o-yAccordingtoindustriesTourismcateringservice
16,173,929.326,000,063.3662.90%7.14%14.15%-3.50%
AccordingtoproductsRoomrevenue12,703,332.004,665,442.0663.27%8.79%14.37%-2.75%
Cateringentertainmentrevenue
1,911,816.001,097,359.5242.60%3.80%16.79%-13.03%
Rentalrevenue1,558,781.00237,262.0084.78%-1.21%0.00%-0.21%
AccordingtoregionHainanarea16,173,929.326,000,063.3662.90%7.14%14.15%-3.50%
III.Analysisofthenon-mainbusiness
□Applicable√Notapplicable
IV.Assetsandliability
1.Majorchangesofassetscomposition
InRMBCurrentperiod-endSameperiod-endlastyear
Ratiochanges
NotesofmajorchangesAmount
Ratioin
totalassets
Amount
Ratioin
totalassets
Monetaryfund10,751,658.6412.22%10,108,175.9110.51%1.71%
Thecashflowgrowthduringendoflastperiodtoreportingperiod-endAccountreceivable
266,236.510.30%337,187.050.35%-0.05%
Fundreturnfromreceivablesincreasedintheperiod
Inventory264,620.690.30%253,215.050.26%0.04%Increaseofinventoryinnormalchanges
Investmentrealestate
8,621,742.219.80%9,096,265.779.46%0.34%
MainlyduetothedepreciationandamortizationLong-termequity
1,000,000.001.14%1.14%
Theregisteredcapitalinvestedforwholly-ownedsubsidiary
investmentFixassets38,017,199.3943.22%39,264,470.6140.82%2.40%
FixedassetspurchasingandroutinedepreciationConstructioninprocess
978,211.641.02%-1.02%
Constructioninprocesshascarry-overatsameperiodoflastyear
Otheraccountreceivable
800,136.440.91%316,384.240.33%0.58%
MainlybecauseutilitiespayablefromleasersincreasedandstaffborrowingsincreasedalsoNoncurrentassetsduewithinoneyear
716,972.510.82%292,184.720.30%0.52%
Mainlybecausethelong-termamortizationexpensesduewithinoneyearareamortizedbymonthOthercurrent
assets
2,195,699.542.50%11,020,867.7611.46%-8.96%
Creditor’sinvestmentof9millionYuanatsameperiodoflastyearLong-termamortizationexpenses
2,678,016.883.04%1,071,343.971.11%1.93%
Therenovationexpenseshavecarry-overlastyear
2.Assetsandliabilitymeasuredbyfairvalue
□Applicable√Notapplicable
3.Assetsrightrestrictiontillendofreportingperiod
Nil
V.Investment
1.Overallsituation
√Applicable□Notapplicable
Currentinvestmentamount(RMB)Sameperiodoflastyear(RMB)Changes(+,-)
1,000,000.009,000,000.00-88.89%
2.Themajorequityinvestmentobtainedinthereportingperiod
√Applicable□Notapplicable
InRMBInves
tee
Mainbusin
ess
Way
ofinvestmen
t
Investmen
tamou
nt
Sharehold
ingratio
Capit
alresources
Partn
er
Investmen
tterm
Producttyp
e
Progres
stillendofbalance
sheet
Incom
eestimat
Gain/lossin
theperiod
Laws
uitinvolv
ed(Y/N)
Disclo
suredate
Disclosureindex
dateed
HainanWengaoTourismResourcesDevelopmentCo.,Ltd.
Developmentoftourismresources
Newlyestablished
1,000,000.
100.0
0%
Selfraised
N/A
30-year
Travel
Registrationiscompleted
0.0
0.00No
2018-06-07
2018-
Total----
1,000,000.
------------
0.0
0.00------
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment(1)Securitiesinvestment
□Applicable√NotapplicableThecompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√NotapplicableTheCompanyhasnoderivativesinvestmentinthePeriod
VI.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.
2.Salesofmajorequity
□Applicable√Notapplicable
VII.Analysisofmainholdingcompanyandstock-jointlycompanies
□Applicable√NotapplicableTheCompanyhadnoinformationofmainholdingcompanyandstock-jointlycompaniesdisclosedinthereportingperiod.
VIII.StructuredvehiclecontrolledbytheCompany
□Applicable√Notapplicable
IX.PredictionofbusinessperformancefromJanuary–September2018
Estimationonaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationonreason□Applicable√Notapplicable
X.Risksandcountermeasures
(1)MarcoPolicyrisksInordertonormalizeandoptimizetourismmarketorfurthertopromoteclear-partyconstruction,relateddepartmentsmayfurtherissuesomerelativepolicies.Whilethesepolicesmaycauserestrainandeffectonregionaltourismdevelopment.Mainbusinessincomemaybeaffectedsinceweareengagedintourismservice.Countermeasures:TheCompanywillfurthertoimprovethehardandsoftequipmentsandfacilitiesofthehotelwhileexpandingthebusinessscope,andwinmoremarketsharesviahigh-classserviceandcomfortableenvironmentsoastoensurethemainbusinessincomelevel.
(2)NaturaldisasterrisksInrecentyears,variousnaturaldisasterstakeplacefrequently,HainanIslandbelongstooceanicclimate,wherehashighincidenceofdisastrousweatherinsummer.IfSanyabecomesthelandingplaceoftyphoon,itmaycausegreatdamagestothefacilitiesoftheCompanyandaffecttheCompany’snormaloperation.Countermeasures:TheCompanywillstrengthentheconstructionandmaintenanceforinfrastructure,continuetobuypropertyinsurances,positivelyadopteffectivepreventionmeasures,andimprovetheabilityofresistingnaturaldisasters.
(3)RisksofHRDemandfortalentinaspectofhotelsalesandmanagementareincreasinglyduetotheconstantlyriseofhotel
industry,flowofhoteltalentedpeoplecomesmorewidespreadandmorefrequent;wemayfacetherisksofdevelopmentrestrainedfrombraindrain.
Countermeasure:wewillcontinuetoimprovedthetalentintroduction,trainingsystem,incentivemechanism,remunerationandwelfareaswellasinsurancemechanism,strivetoattracttalent,cultivatethemandretainthem.Meanwhile,strengthenstaffqualityandskillsaswellasthemanagementability,furtherputtingmoreeffortsin
enterprisecultureconstruction,enhancethecohesionintheCompany,andguaranteeastableofthecoremanagersandskilltechnicians.(4)OperationalrisksofmainbusinessWiththeceaselessdevelopmentofglobaltouristindustryconstantlyandceaselessrisingofhigh-class,middle-classandlow-classhotels,thetouristsourceskeepshunting,andthecompetitionoftourismserviceindustryinSanyabecomesincreasinglyfierce.WhilethemainbusinessoftheCompanyisjustasmall-scalehotel,asthemainbusinessissingleandthebusinessscopeislimited,thetouristmarketconditionsandtouristquantitydirectlymakesignificantaffectsonthecompanyperformance.
Countermeasure:madeascientificmanagementanddecision-makingprocedures,strengthentheawarenessofriskprevention,buildingandimprovingrelevantmechanismandstandardizedthemanagementintheCompany.Furthermore,increasethesalesability,onbaseoftheformersalesnetwork,continuestoexploitforeignhigh-endtourismmarketunderthesuperiorgeographicallocationandenvironmentforimprovingtheoccupancyrate.Besides,wecontinuedtodevelopfinancingchannels,expandingoperationprojects,enrichtheindustrialstructureforincreasingtheprofitincreasingpoint.
SectionV.ImportantEvents
I.Inthereportperiod,theCompanyheldannualgeneralmeetingandextraordinaryshareholders’generalmeeting
1.AnnualGeneralMeetinginthereportperiod
Sessionof
meeting
Type
Ratioofinvestor
participation
DateDateofdisclosureIndexofdisclosure
AGMof2017
Annualgeneralmeeting
37.76%2018-02-272018-02-28
The“ResolutionNoticeofAnnualGeneralMeetingof2017”(No.:
2018-016)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated28February2018respectively
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
II.ProfitdistributionandcapitalizationofcapitalreservesinthePeriod
□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherforthesemi-annualyear
III.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
CommitmentsPromise
Typeofcommitme
nts
Contentofcommitments
Commit
mentdate
Commitment
term
Implement
ation
CommitmentsforShareMergerReform
LuoniushanCo.,Ltd
CommitmentsforShareMergerReform
OnMay30,2007,LuoniushanCo.,Ltd.madecommitmentsintheCompany’s"Instructionsforreformofnon-tradableshares"(Revision)and"Instructionsforreformofnon-tradableshares"(Abstractofrevision)thatinviewofDadonghaiCompany’slossesinsuccessive
2017-06-27
month
s
Theoriginalplansofmaterialassetsreorganizat
yearsandonthevergeofdelisting,inordertoreversethecompany'sbusinessdifficulties,improveprofitabilityandrecoverthecontinuousbusinesscapacity,LuoniushanCo.,Ltd.,thecontrollingshareholderofDadonghaiCompanymadecommitmentstoactivelyseekrestructuringpartiestoreorganizetheassetsofDadonghaiCompanyattheappropriatetime.
ionwasterminated
CommitmentsinreportofacquisitionorequitychangeCommitmentsinassetsreorganizationCommitmentsmakeininitialpublicofferingorre-financingEquityincentivecommitmentOthercommitmentsformediumandsmallshareholdersCompletedontime(Y/N)
N
Ifthecommitmentsisnotfulfilledontime,shallexplainthespecifyreasonandthenextworkplan
Thecompany’sstockhasbeensuspendedsincetheopeningonFebruary15,2017duetotheplanningandfulfillmentcommitmentsofLuoniushan.OnAugust13,2017,theconsiderationofthe11
th
interimmeetingoftheeighthboardofdirectorsofthecompanyfailedtoapprovethe“ProposalonMajorAssetPurchaseandRelatedTransactionReport(Plan)ofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.”andother11proposals.OnAugust15,2017,thecompanyissuedanannouncementtoterminatethismajorassetrestructuring,andthecompany’sstockresumedtradingonAugust17
th
.Currently,thecompanyhasnoinformationthatshouldbedisclosedbutnotdisclosed.OnDecember4,2017,theboardofdirectorsandtheboardofsupervisorsofthecompanyreviewedandapprovedtheProposalontheChangeofCommitmentPeriodoftheFirstMajorityShareholderoftheCompany.LuoniushanCo.,Ltd.,thecompany’sfirstmajorityshareholderplannedforatwo-yearextensionforthetimelimitofthecompany’srestructuringcommitmentsinceDecember27,2017,thatis,thedeadlinefortheimplementationoftherestructuringcommitmentwaschangedtoDecember26,2019.OnDecember22,2017,thecompany’sfourthextraordinaryshareholders’meetingin2017didnotapprovetheproposal.OnJanuary31,2018,thecompanyreceivedtheNoticeonPlanningforSuspensionofMajorEventssentbyLuoniushanCo.,Ltd.,thecompany’slargestshareholder,toplanandpreparethemajorissuesrelatedtothecompany.Uponapplicationbythecompany,thecompany’sstock(stockshortname:DadonghaiA,DadonghaiB,stockcode:000613,200613)wassuspendedsincetheopeningonJanuary31,2018.Upon
applicationbythecompany,thecompany’sstockresumedtradingonFebruary8,2018,andwastransferredtothemajorassetrestructuringsincetheopeningonFebruary14,2018.OnJune25,2018,thecompanyheldthethirdinterimmeetingoftheninthboardofdirectorswhichreviewedandapprovedtheProposalonTerminatingthePlanningforMajorAssetRestructuring.Aftercarefulstudy,theboardofdirectorsofthecompanydecidedtoterminatetheplanningforthismajorassetrestructuring.
IV.Engagementandnon-reappointmentofCPA
Whetherthesemi-annualreportwasauditedornot□Yes√NoThesemi-annualreportoftheCompanyhadnoaudited.
V.ExplanationfromtheBoardandSupervisoryCommitteefor“QualifiedOpinion”fromtheCPA
□Applicable√Notapplicable
VI.Explanationon“QualifiedOpinion”ofpreviousyearfromtheBoard
□Applicable√Notapplicable
VII.Bankruptcyreorganization
□Applicable√NotapplicableInreportingperiod,theCompanyhasnobankruptcyreorganizationoccurred.
VIII.Lawsuits
SignificantlawsuitsandarbitrationsoftheCompany□Applicable√NotapplicableTheCompanyhasnosignificantlawsuitsandarbitrationsinreportingperiodOtherlawsuits□Applicable√Notapplicable
IX.Penaltyandrectification
□Applicable√NotapplicableTheCompanyhasnopenaltyandrectificationinthePeriod
X.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers
□Applicable√Notapplicable
XI.Implementationofthecompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√NotapplicableDuringthereportingperiod,thecompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentivesthathavenotbeenimplemented.
XII.Majorrelatedtransaction
1.Relatedtransactionwithroutineoperationconcerned
√Applicable□Notapplicable
Relatedparty
Relationshi
p
Type
ofrelate
dtransaction
Contentofrelate
dtransaction
Pricin
gprinci
ple
Relate
dtransactionprice
Relate
dtransactionamou
nt(in10thousa
ndYuan)
Proportion
insimila
rtransactions
Tradi
nglimitappro
ved(in10thousa
ndYuan)
Whet
herovertheappro
vedlimite
dornot(Y/N)
Clearingform
forrelatedtransact
ion
Availab
lesimilarmarket
price
Dateofdisclosur
e
Indexofdisclosur
e
LuoniushanCo.,Ltd.
Firstmajorityshareholder
Consumption
Accommodation
Marketprice
Marketprice
17.681.09%0
Y
Sameasthetransactionwithnon-relatedparty
Sameasthetransactionwithnon-relatedpartyTotal
----17.68--0----------Detailofsalesreturnwithmajoramountinvolved
N/AReporttheactualimplementationof
thedailyrelatedtransactionswhichwereprojectedabouttheirtotalamountbytypesduringthereportingperiod
N/AReasonsformajordifferences
betweentradingpriceandmarketreferenceprice
Notapplicable
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√NotapplicableNorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod
3.Relatedtransactionsofmutualinvestmentoutside
□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod
4.Contactofrelatedcreditanddebt
□Applicable√NotapplicableNocontactofrelatedcreditordebtfortheCompanyinthereportingperiod
5.Othermaterialrelatedtransactions
□Applicable√NotapplicableTheCompanyhasnoothermaterialrelatedtransactionsintheperiod
XIII.Non-businesscapitaloccupyingbycontrollingshareholdersanditsrelatedparties
□Applicable√NotapplicableNonon-businesscapitaloccupiedbycontrollingshareholdersanditsrelatedpartiesinPeriod
XIV.Majorcontractandimplantation
1.Trusteeship,contractandleasing(1)Trusteeship
□Applicable√NotapplicableTheCompanyhadnotrusteeshipinthereportingperiod.
(2)Contract
□Applicable√NotapplicableTheCompanyhadnocontractinthereportingperiod.
(3)Leasing
√Applicable□NotapplicableNoteofleasing
ItemTenantLeaselifeTermofleaseB/FoftheHotelMaMing(HainanHangpaiFoodCo.,
Ltd.)
5years2016-01-01to2020-12-31Shoppingmall–B/FXuJipeng3years2016-11-15to2019-11-14
A/FgroundfloorChenJunwei3years2016-03-01to2019-02-28Seasidestallandwood
house
SanyaLedaFoodManagementCo.,
Ltd.
5years2018-01-01to2022-12-31SeasidelockerroomZhongZhengao3years2016-12-01to2019-11-30
Multi-functionalmeetingroom
SanyaHaolideInternationalTravel
AgencyCo.,Ltd.
5years2017-10-01to2022-09-30
Gains/lossestotheCompanyfromprojectsthatreachedover10%intotalprofitoftheCompanyinreportingperiod√Applicable□Notapplicable
Nameof
lessor
Nameoftheleasingparty
Leasing
assets
Leasing
assetsinvolved
intheamount(in10thousand
Yuan)
Leasestart
date
Leaseterminatio
ndate
Leasin
gincome(in10thousa
ndYuan)
Basis
fordetermi
ningtheleasingincome
Theimpact
ofleasingincomeonthecompan
y
Whet
herberelate
dtransactio
ns
Associatio
nrelati
onThe
Company
MaMing(HainanHangpaiFoodCo.,Ltd.)
B/Frestaurantinfirstfloor
1,886
2016-01-0
2020-12-3
37.8
Contract
Increaseincome
NoN/A
TheCompany
SanyaLedaFoodManagementCo.,Ltd.
Seasidestallandwoodhouse
2018-01-0
2022-12-3
72.5
Contract
Increaseincome
NoN/A
TheCompany
ZhongZhengao
Seasidelockerroom
2016-12-0
2019-11-3
Contract
Increaseincome
NoN/A
TheCompany
SanyaHaolideInternationalTravelAgencyCo.,Ltd.
Multi-functionalmeetingroom
2017-10-0
2022-09-3
Contract
Increaseincome
NoN/A
2.MajorGuarantee
□Applicable√NotapplicableTheCompanyhadnoguaranteeinthereportingperiod.
3.Othermaterialcontracts
□Applicable√NotapplicableNoothermaterialcontractsfortheCompanyinreportingperiod
XV.Socialresponsibility
1.Majorenvironmentalprotection
ListedcompanyanditssubsidiarybelongstothekeypollutionenterpriselistedbyDepartmentofEnvironmentalProtectionNotapplicable
2.Executionofsocialresponsibilityoftargetedpovertyalleviation
Nil
XVI.Explanationonothersignificantevents
√Applicable□Notapplicable
1TheLawyer’sLetterreceivedbytheCompany:bypreliminaryaccountingfromSanyaPowerBureau,the10313373KwhelectricitywasunderstatedunderthenameofSouthChinaHotelfromJuly2006toApril2016.Foundmorein“NoticeofLawyer’sLetterreceivedbyHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.”(NoticeNo.:2016-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsitedated31May2016.TheCompanyiscommunicatedandnegotiateswithSanyaPowerBureauintheabovementionedeventwithoutnegotiationresultssofar.
2TheLawyersLetterreceivedbytheCompany:concerningthedisputeonfinancialloansbetweenjointstockenterprise-HainanDadonghaiTourismCenterGroupCo.,Ltd.(hereinafterreferredtoasDadonghaiGroup)andoriginalcreditor-SanyaBranchofPeoplesConstructionBankofChina(hereinafterreferredtoasSanyaBranchofPCBC),thenewcreditor-HainanBranchofChinaCindaAssetManagementCorp.(hereinafterreferredtoasHainanCinda)nowexercisetherightofrecourse,whichincludingtwodebts:the1.1millionYuanprincipalanditsinterestof5.5983millionYuantemporaryreckonedtill30April2018,totallyamountedas6.6983millionYuan;the5millionYuanprincipalanditsinterestof29.3117millionYuantemporaryreckonedtill30April2018,totallyamountedas34.3117millionYuan.HainanCindaclaimsthattheCompanyshallassumejointandseveralliabilitiesfortheabovementioneddebtsifDadonghaiGroupinconditionofliquidation.FoundmoreinNoticeofLawyersLetterreceivedbyHainanDadonghaiTourismCenter(Holdings)Co.,Ltd(NoticeNo.:2018-052)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsitedated10August2018.Recently,theCompanyexercisecheckingandunderstandingontheabovementionedeventsinvolvedinLawyersLetter.
XVII.SignificanteventofsubsidiaryoftheCompany
√Applicable□Notapplicable
OnMay11,2018,thecompanyheldthe2
nd
interimmeetingoftheninthboardofdirectorswhichdeliberatedandapprovedtheProposalonInvestmentinEstablishingaWholly-ownedSubsidiary,andagreedthecompanytofundandsetupawholly-ownedsubsidiary,HainanWengaoTourismResourcesDevelopmentCo.,Ltd.,withitsown
fundsofRMB1million.SeedetailsontheAnnouncementontheResolutionoftheSecondInterimMeetingoftheNinthBoardofDirectors(AnnouncementNo.:2018-040)andtheAnnouncementontheInvestmentinEstablishingaWholly-ownedSubsidiary(AnnouncementNo.:2018-043)thatthecompanydisclosedontheSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cnonMay12,2018.
OnJune6,2018,thewholly-ownedsubsidiaryhascompletedtheindustrialandcommercialregistrationproceduresandobtainedtheBusinessLicenseissuedbySanyaAdministrationforIndustryandCommerceofHainanProvince,seedetailsontheAnnouncementontheProgressofInvestmentinEstablishingaWholly-ownedSubsidiarythatthecompanydisclosedontheSecuritiesTimes,HongKongCommercialDailyand
www.cninfo.com.cnonJune7,2018(AnnouncementNo.:2018-046).
SectionVI.ParticularsaboutChangesinSharesandShareholders
I.ChangesinShareCapital
1.ChangesinShareCapital
InShareBeforetheChangeIncrease/DecreaseintheChange(+,-)AftertheChange
Amount
Proportio
n
Newsharesissued
Bonusshares
Capitalizationofpublicreserve
Other
s
Subtotal
Amount
Proporti
onI.Restrictedshares10,454,4002.87%0010,454,4002.87%
1.State-ownedshares2.State-ownedcorporateshares
2,323,2000.64%002,323,2000.64%3.Otherdomesticshares
8,131,2002.23%008,131,2002.23%Including:Domestic
legalpersonshares
7,821,0002.15%007,821,0002.15%Domesticnaturalperson
shares
310,2000.09%00310,2000.09%II.Unrestrictedshares353,645,60097.13%00353,645,60097.13%1.RMBcommonshares
265,645,60072.96%00265,645,60072.96%2.Domesticallylisted
foreignshares
88,000,00024.17%88,000,00024.17%III.Totalshares364,100,000100.00%00364,100,000100.00%
Reasonsforsharechanged√Applicable□Notapplicable
Andduringthefollow-upprocessofnon-tradablesharesreform,relevantsharesarereleasedinlinewithrelevantregulationsandsomeoftheshareholdersarerepayingtheadvancemoneyforanother,thusthesharestructureoftheCompanychangedinthePeriodwhiletotalsharesremainthesame.
Approvalofsharechanged□Applicable√NotapplicableOwnershiptransferofsharechanges□Applicable√Notapplicable
InfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod□Applicable√NotapplicableOtherinformationnecessarytodiscloseorneedtodisclosedunderrequirementfromsecurityregulators□Applicable√Notapplicable
2.Changesofrestrictedshares
√Applicable□Notapplicable
InShareShareholders’name
Numberof
sharesrestrictedatPeriod-begi
n
Number
ofsharesreleased
intheYear
Numberofnewsharesrestrictedinthe
Year
Numberof
sharesrestrictedatPeriod-end
Restriction
reasons
Releaseddate
MaXiaoping132,00000132,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
ZhengYouxiong46,2000046,200
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
XiaoTiefeng132,00000132,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
SanyaRealEstateValuationAgent924,00000924,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
HainanHongKong-MacaoInternationalTradeDevelopmentCo.,Ltd.
924,00000924,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
HaikouDongfangUrbancreditCooperative
924,00000924,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
HainanBranchofBankofCommunicationsCo.,Ltd.
924,00000924,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
ShenyangJin’anIndustrialCorporation
831,60000831,600
Legalcommitmentinsharereform
AfterrelevantreimbursementandunrestrictedprocedurescompletedxSanyaWangliBuildingMaterialsSales
92,4000092,400
Legalcommitmentin
Afterrelevantreimbursementandunrestrictedprocedures
sharereformcompletedxGuangzhouCompanyofHainan
InternationalInvestmentCo.,Ltd.
660,00000660,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
SouthernIndustrialandTradingCorporation
660,00000660,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
GuangzhouDongzhanIndustrialCo.LTD
924,00000924,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
SanyaZhongxingDevelopmentCo.,Ltd.
2,541,000002,541,000
Legalcommitmentinsharereform
Afterrelevantreimbursementandunrestrictedprocedurescompletedx
HainanDadonghaiTourismCo.739,20000739,200
Legalcommitmentinsharereform
AfterrelevantreimbursementandunrestrictedprocedurescompletedxTotal10,454,4000010,454,400----
II.Securitiesissuanceandlisting
□Applicable√Notapplicable
III.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
InShareTotalcommonstockshareholdersinreportingperiod-end
46,487
Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod
Particularsaboutcommonsharesheldabove5%byshareholdersortoptencommonshareholders
FullnameofShareholders
Natureofshareholder
Proporti
onofshares
held
Numberof
commonsharesheld
atperiod-end
Changesinreport
period
Amount
ofrestricted
shares
held
Amountofun-restrictedsharesheld
Numberof
sharepledged/fr
ozenState
ofshare
Amount
LuoniushanCo.,Ltd.
Domesticnonstate-ownedcorporate
17.55%63,885,9800063,885,980
PanGuoping
Domesticnatureperson
8.24%29,989,791-89000029,989,791HGNHInternationalAsset
ManagementCo.,Ltd–customerdeposit
Foreigncorporate2.29%8,327,502008,327,502HainanYa’anResidenceProperty
ServiceCo.,Ltd.
Domesticnonstate-ownedcorporate
2.25%8,205,800008,205,800ChinaInvestmentSecurities
(HK)Co.,Ld.–customerdeposit
Foreigncorporate1.30%4,722,300004,722,300ZhangFengxiu
Domesticnatureperson
1.07%3,901,372003,901,372OuyangChunlin
Domesticnatureperson
0.92%3,360,000003,360,000CITRINECAPITALLIMITEDForeigncorporate0.90%3,265,200003,265,200HuJianguo
Domesticnatureperson
0.82%2,993,940-323370002,993,940SunHuiming
Domesticnatureperson
0.79%2,888,690002,888,690Strategyinvestorsorgenerallegalpersonbecomestop
10commonshareholdersduetorightsissued
N/A
Explanationonassociatedrelationshiporaccordantactionamongtheaforesaidshareholders
Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.TheCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Particularabouttoptenshareholderswithun-restrictcommonsharesheld
Shareholders’name
Amountofun-restrictcommonshares
heldatPeriod-end
TypeofsharesTypeAmountLuoniushanCo.,Ltd.63,885,980RMBcommonshare63,885,980
PanGuoping29,989,791Domesticallylistedforeignshare29,989,791HGNHInternationalAssetManagementCo.,Ltd–customerdeposit
8,327,502RMBcommonshare8,327,502HainanYa’anResidencePropertyServiceCo.,Ltd.8,205,800RMBcommonshare8,205,800
ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit
4,722,300RMBcommonshare4,722,300
ZhangFengxiu3,901,372RMBcommonshare3,901,372OuyangChunlin3,360,000RMBcommonshare3,360,000CITRINECAPITALLIMITED3,265,200Domesticallylistedforeignshare3,265,200HuJianguo2,993,940RMBcommonshare2,993,940SunHuiming2,888,690Domesticallylistedforeignshare2,888,690Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictcommonstockshareholdersandbetweentop10un-restrictcommonstockshareholdersandtop10commonstockshareholders
Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.TheCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswithun-restrictsharesheld
N/AWhethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-back
agreementdealinginreportingperiod□Yes√NoThetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.
IV.Changesofcontrollingshareholdersoractualcontroller
Changesofcontrollingshareholdersinreportingperiod□Applicable√NotapplicableChangesofcontrollingshareholdershadnochangeinreportingperiod.Changesofactualcontrollerinreportingperiod□Applicable√NotapplicableChangesofactualcontrollerinreportingperiodhadnochangeinreportingperiod.
SectionVII.PreferredStock
□Applicable√NotapplicableTheCompanyhadnopreferredstockinthePeriod.
SectionVIII.ParticularsaboutDirectors,Supervisors,Senior
ExecutivesandEmployees
I.Changesofsharesheldbydirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
NameTitle
Workingstatus
Sharesheldatperiod-b
egin(Share)
Amoun
tofsharesincreas
edinthisperiod(Share)
Amountofsharesdecreasedinthisperiod(Share)
Sharesheldatperiod-
end(Share
)
Numberofrestricted
sharesdelegated
atperiod-begi
n(Share)
Numberofrestricted
sharesdelegated
intheperiod(Share)
Numberofrestricted
sharesdelegatedatperiod-end
(Share)Yuan
Xiaoping
Chairman,GeneralManager
Currentlyinoffice
0000000Tang
Shanrong
Director
Currentlyinoffice
0000000Tang
Guoping
IndependentDirector
Currentlyinoffice
0000000
WuTao
IndependentDirector
Currentlyinoffice
0000000Zhang
Xuli
Supervisor
Currentlyinoffice
0000000Li
Yuanbin
Chairman,GeneralManager
Leavetheoffice
0000000Zhao
Man
IndependentDirector
Leavetheoffice
0000000Leng
Mingqua
IndependentDirector
Leavethe
0000000
nofficeLiu
Juntao
Director
Leavetheoffice
0000000
WangHongjuan
Director&Vicepresident&secretaryoftheBoard
Currentlyinoffice
0000000
HuangWencai
Supervisor
Currentlyinoffice
0000000Wang
Jialing
Supervisor
Leavetheoffice
0000000Fu
Zongren
CFO
Currentlyinoffice
0000000Chen
Gang
Supervisor
Currentlyinoffice
0000000Total----0000000
II.Changesofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
NameTitleTypeDataReasonYuanXiaoping
Chairman,GeneralManager
Beelected2018-02-28
Theofficetermof8
th
BODexpired,andservesaschairmanofthe9
th
BODintheCompany.AndwasappointedasGMTangShanrongDirectorBeelected2018-02-28
Theofficetermof8
th
BODexpired,andservesasDirectorofthe9
th
BODintheCompany.TangGuoping
IndependentDirector
Beelected2018-02-28
Theofficetermof8
th
BODexpired,andservesasIndependentDirectorofthe9
th
BODintheCompany.WuTao
IndependentDirector
Beelected2018-02-28
Theofficetermof8
th
BODexpired,andservesasIndependentDirectorofthe9
th
BODintheCompany.HuangWencai
Stockholder'sSupervisor
Beelected2018-02-28
Theofficetermof8
th
supervisorycommitteeexpired,andservesasshareholdersupervisory/chairmanofthesupervisorycommitteeofthe9
th
BODintheCompany.ChenGang
StaffSupervisor
Beelected2018-02-28
Theofficetermof8
th
supervisorycommitteeexpired,andservesasstaffsupervisorofthe9
th
supervisorycommitteeintheCompany.
ZhangXuli
Stockholder'sSupervisor
Beelected2018-02-28
Theofficetermof8
th
supervisorycommitteeexpired,andservesasshareholdersupervisorofthe9
th
supervisorycommitteeintheCompany.LiYuanbin
Chairman,GeneralManager
Officeleavingfortermexpired
2018-02-27Officeleavingfortermexpired
ZhaoMan
IndependentDirector
Officeleavingfortermexpired
2018-02-27appoi
Officeleavingfortermexpired
LengMingquan
IndependentDirector
Officeleavingfortermexpired
2018-02-27Officeleavingfortermexpired
LiuJuntaoDirector
Officeleavingfortermexpired
2018-02-27Officeleavingfortermexpired
WangJialing
StaffSupervisor
Officeleavingfortermexpired
2018-02-27Officeleavingfortermexpired
WangHongjuan
Director&Vicepresident&secretaryoftheBoard
Beelected2018-02-28
Theofficetermof8
th
BODexpired,andservesasDirectorofthe9
th
BODintheCompany.Andwasre-appointedasdeputyGM/SecretaryoftheBoard/Securitiesaffairsrepresentative
FuZongrenCFO
Appointm
ent
2018-03-06Re-appointedaspersoninchargeoffiancéintheCompany
SectionIX.CorporateBond
WhethertheCompanyhasacorporationbondsthatissuancepubliclyandlistedonstockexchangeandwithoutdueonthedatewhensemi-annualreportapprovedforreleasedorfailtocashinfullondueNo
SectionX.FinancialReport
I.Auditreport
Whetherthesemiannualreportisaudited□Yes√NoThecompany'ssemiannualfinancialreporthasnotbeenaudited.
II.FinancialStatement
ExpressedinRenminbiunlessotherwisestated
1.Balancesheet
PreparedbyHAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.
2018-06-30
InRMBItemClosingBalanceOpeningBalanceCurrentassets:
Monetaryfunds10,751,658.649,681,607.16
SettlementfundsLendingfundsFinancialassetsmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialliabilityNotesreceivableAccountsreceivable266,236.51594,130.89
Prepayments43,206.8449,530.21
InsurancereceivableReinsurancereceivablesContractreserveofreinsurancereceivableInterestreceivableDividendsreceivableOtherreceivables800,136.44139,561.29PurchaserestitutedfinanceassetInventories264,620.69227,005.11Assetsheldforsale
Non-currentassetsmaturingwithinoneyear716,972.511,173,597.68
Othercurrentassets2,195,699.541,957,863.56
Totalcurrentassets15,038,531.1713,823,295.90
Non-currentassets:
LoansandpaymentsonbehalfAvailable-for-salefinancialassetsHeld-to-maturityinvestmentsLong-termreceivablesLong-termequityinvestments1,000,000.00Investmentrealestate8,621,742.218,859,003.99
Fixedassets
38,017,199.3939,088,708.83ConstructioninprogressProjectmaterialsDisposaloffixedassetsProductivebiologicalassetsOilandnaturalgasassetsIntangibleassets22,611,442.6223,017,636.20ResearchanddevelopmentcostsGoodwillLong-termdeferredexpenses
2,678,016.882,678,016.88DeferredtaxassetsOthernon-currentassetsTotalnon-currentassets72,928,401.1073,643,365.90Totalassets87,966,932.2787,466,661.80
Currentliabilities
Short-termborrowingsLoanfromcentralbankAbsorbingdepositandinterbankdepositCapitalborrowedFinancialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialliabilityNotespayableAccountspayable1,651,770.312,161,172.26
Accountsreceivedinadvance1,057,513.071,271,174.12
Sellingfinancialassetofrepurchase
CommissionchargeandcommissionpayableWagepayable1,984,463.352,459,015.93
Taxespayable471,349.26539,023.76
InterestpayableDividendpayableOtheraccountspayable2,894,571.562,411,176.59
ReinsurancepayablesInsurancecontractreserveSecuritytradingofagencySecuritysalesofagencyLiabilityheldforsaleNon-currentliabilitiesduewithin1yearOthercurrentliabilitiesTotalcurrentliabilities8,059,667.558,841,562.66Non-currentliabilities:
Long-termloansBondspayable
Including:preferredstock
PerpetualcapitalsecuritiesLong-termaccountpayableLong-termwagespayableSpecialaccountspayableProjectedliabilities1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.041,489,685.04Totalliabilities9,549,352.5910,331,247.70Owners’equity:
Sharecapita364,100,000.00364,100,000.00
Otherequityinstrument
Including:preferredstock
PerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01
Less:InventorysharesOthercomprehensiveincomeReasonablereserve
SurplusreserveProvisionofgeneralriskRetainedprofit-339,825,270.33-341,107,435.91
Totalowner’sequityattributabletoparentCompany78,417,579.6877,135,414.10
MinorityinterestsTotalowner’sequity78,417,579.6877,135,414.10
Totalliabilitiesandowner’sequity87,966,932.2787,466,661.80
LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
2.Profitstatement
InRMBItemCurrentPeriodLastPeriodI.Totaloperatingincome16,173,929.3215,096,273.42
Including:Operatingincome16,173,929.3215,096,273.42
InterestincomeInsurancegainedCommissionchargeandcommissionincomeII.Totaloperatingcost14,891,558.7613,377,279.62Including:Operatingcost6,000,063.365,256,112.51
InterestexpenseCommissionchargeandcommissionexpenseCashsurrendervalueNetamountofexpenseofcompensationNetamountofwithdrawalofinsurancecontractreserveBonusexpenseofguaranteeslipReinsuranceexpenseOperatingtaxandextras716,520.90754,244.27Salesexpenses
2,800,956.102,458,144.93Administrationexpenses5,356,455.215,089,450.57
Financialexpenses
17,563.19-180,672.66Lossesofdevaluationofasset
Add:Changingincomeoffairvalue(Lossislistedwith“-”)
Investmentincome(Lossislistedwith“-”)Including:InvestmentincomeonaffiliatedCompanyandjointventure
Exchangeincome(Lossislistedwith“-”)Incomeondisposalofassets(Lossislistedwith“-”)OtherincomeIII.Operatingprofit(Lossislistedwith“-”)1,282,370.561,718,993.80
Add:Non-operatingincome
273.00260.00Less:Non-operatingexpense477.98
IV.TotalProfit(Lossislistedwith“-”)
1,282,165.581,719,253.80Less:IncometaxV.Netprofit(Netlossislistedwith“-”)
1,282,165.581,719,253.80(i)continuousoperatingnetprofit(netlosslistedwith‘-”)(ii)terminationofnetprofit(netlosslistedwith‘-”)
Netprofitattributabletoowner’sequityofparentCompany1,282,165.581,719,253.80
Minorityshareholders’gainsandlossesVI.Netafter-taxofothercomprehensiveincome
Netafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany
(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss
1.Changesasaresultofre-measurementofnetdefinedbenefitplanliabilityorasset
2.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillnotbereclassifiedsubsequentlytoprofitandloss
(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss
1.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillbereclassifiedsubsequentlytoprofitorloss
2.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets
3.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets
4.Theeffecthedgingportionofgainsorlossesarisingfrom
cashflowhedginginstruments
5.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements
6.OtherNetafter-taxofothercomprehensiveincomeattributabletominorityshareholdersVII.Totalcomprehensiveincome1,282,165.581,719,253.80
TotalcomprehensiveincomeattributabletoownersofparentCompany
1,282,165.581,719,253.80Totalcomprehensiveincomeattributabletominorityshareholders
VIII.Earningspershare:
(i)Basicearningspershare0.00350.0047
(ii)Dilutedearningspershare0.00350.0047
LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
3.Cashflowstatement
InRMBItemCurrentPeriodLastPeriod
I.Cashflowsarisingfromoperatingactivities:
Cashreceivedfromsellingcommoditiesandprovidinglaborservices17,460,137.7215,736,183.76
NetincreaseofcustomerdepositandinterbankdepositNetincreaseofloanfromcentralbankNetincreaseofcapitalborrowedfromotherfinancialinstitutionCashreceivedfromoriginalinsurancecontractfeeNetcashreceivedfromreinsurancebusinessInsuredsavingsandnetincreaseofinvestmentNetincreaseofamountfromdisposalfinancialassetsthatmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
Cashreceivedfrominterest,commissionchargeandcommissionNetincreaseofcapitalborrowedNetincreaseofreturnedbusinesscapitalWrite-backoftaxreceived
Othercashreceivedconcerningoperatingactivities684,152.64677,415.38Subtotalofcashinflowarisingfromoperatingactivities18,144,290.3616,413,599.14
Cashpaidforpurchasingcommoditiesandreceivinglaborservice5,026,699.133,826,391.38NetincreaseofcustomerloansandadvancesNetincreaseofdepositsincentralbankandinterbankCashpaidfororiginalinsurancecontractcompensationCashpaidforinterest,commissionchargeandcommissionCashpaidforbonusofguaranteeslipCashpaidto/forstaffandworkers6,741,602.325,608,808.99Taxespaid1,590,739.151,610,025.50Othercashpaidconcerningoperatingactivities1,674,572.162,137,300.17Subtotalofcashoutflowarisingfromoperatingactivities15,033,612.7613,182,526.04Netcashflowsarisingfromoperatingactivities3,110,677.603,231,073.10II.Cashflowsarisingfrominvestingactivities:
CashreceivedfromrecoveringinvestmentCashreceivedfrominvestmentincomeNetcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets
NetcashreceivedfromdisposalofsubsidiariesandotherunitsOthercashreceivedconcerninginvestingactivitiesSubtotalofcashinflowfrominvestingactivities
Cashpaidforpurchasingfixed,intangibleandotherlong-termassets1,040,626.121,333,145.20
Cashpaidforinvestment1,000,000.00
NetincreaseofmortgagedloansNetcashreceivedfromsubsidiariesandotherunitsOthercashpaidconcerninginvestingactivities9,000,000.00
Subtotalofcashoutflowfrominvestingactivities2,040,626.1210,333,145.20
Netcashflowsarisingfrominvestingactivities-2,040,626.12-10,333,145.20
III.Cashflowsarisingfromfinancingactivities:
CashreceivedfromabsorbinginvestmentIncluding:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiaries
CashreceivedfromloansCashreceivedfromissuingbondsOthercashreceivedconcerningfinancingactivities19,810,000.00
Subtotalofcashinflowfromfinancingactivities19,810,000.00
CashpaidforsettlingdebtsCashpaidfordividendandprofitdistributingorinterestpayingIncluding:Dividendandprofitofminorityshareholderpaidbysubsidiaries
Othercashpaidconcerningfinancingactivities29,810,000.00
Subtotalofcashoutflowfromfinancingactivities29,810,000.00
Netcashflowsarisingfromfinancingactivities-10,000,000.00
IV.InfluenceoncashduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents1,070,051.48-17,102,072.10
Add:Balanceofcashandcashequivalentsattheperiod-begin9,681,607.1627,210,248.01
VI.Balanceofcashandcashequivalentsattheperiod-end10,751,658.6410,108,175.91
LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
4.StatementonChangesofOwners’Equity
Currentperiod
InRMB
Item
CurrentPeriodOwners’equityattributabletotheparentCompany
Minority
interests
Totalowners’equitySharecapital
Otherequityinstrument
Capitalreserve
Less:
Inventory
shares
Other
comprehensive
in
Reasonable
reserve
Surplus
reserve
Provision
of
general
r
Retainedprofit
come
isk
Preferred
stock
Perpetual
capital
securities
ther
I.Balanceattheendofthelastyear
364,100,000.0054,142,850.01-341,107,435.9177,135,414.10Add:Changesofaccounting
policy
Errorcorrectionofthelastperiod
Enterprisecombineunderthesamecontrol
OtherII.Balanceatthebeginningofthisyear
364,100,000.0054,142,850.01-341,107,435.9177,135,414.10III.Increase/Decreaseinthisyear
(Decreaseislistedwith“-”)
1,282,165.581,282,165.58(i)Totalcomprehensiveincome1,282,165.581,282,165.58(ii)Owners’devotedanddecreasedcapital1.Commonsharesinvestedbyshareholders
2.Capitalinvestedbyholdersofotherequityinstruments3.Amountreckonedintoownersequitywithshare-basedpayment4.Other(III)Profitdistribution1.Withdrawalofsurplusreserves2.Withdrawalofgeneralriskprovisions3.Distributionforowners(orshareholders)4.Other(IV)Carryingforwardinternalowners’equity1.Capitalreservesconversedtocapital(sharecapital)2.Surplusreservesconversedtocapital(sharecapital)3.Remedyinglosswithsurplusreserve4.Other(V)Reasonablereserve1.Withdrawalinthereportperiod
2.Usageinthereportperiod(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.0054,142,850.01-339,825,270.3378,417,579.68LastPeriod
InRMB
Item
LastPeriodOwners’equityattributabletotheparentCompany
Minority
interests
Totalowners’equitySharecapital
Otherequityinstrument
Capitalreserve
Less:
Inventory
sha
Other
co
prehensive
Reasonable
reserve
Surplus
reserve
Provision
of
genera
Retainedprofit
Preferred
stock
Perpetual
capit
Other
res
inco
e
lr
isk
al
securities
I.Balanceattheendofthelastyear364,100,000.0054,142,850.01-343,966,434.5774,276,415.44
Add:Changesofaccountingpolicy
Errorcorrectionofthelastperiod
Enterprisecombineunderthesamecontrol
OtherII.Balanceatthebeginningofthisyear
364,100,000.0054,142,850.01-343,966,434.5774,276,415.44III.Increase/Decreaseinthisyear
(Decreaseislistedwith“-”)
1,719,253.801,719,253.80(i)Totalcomprehensiveincome1,719,253.801,719,253.80(ii)Owners’devotedanddecreasedcapital1.Commonsharesinvestedbyshareholders2.Capitalinvestedbyholdersofotherequityinstruments3.Amountreckonedintoownersequitywithshare-basedpayment4.Other(III)Profitdistribution1.Withdrawalofsurplusreserves2.Withdrawalofgeneralriskprovisions3.Distributionforowners(orshareholders)4.Other(IV)Carryingforwardinternalowners’equity1.Capitalreservesconversedtocapital(sharecapital)2.Surplusreservesconversedtocapital(sharecapital)3.Remedyinglosswithsurplusreserve4.Other
(V)Reasonablereserve1.Withdrawalinthereportperiod2.Usageinthereportperiod(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.0054,142,850.01-342,247,180.7775,995,669.24LegalRepresentative:YuanXiaoping
AccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
III.Companyprofile
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoasthe"Company")isastandardizedcompanylimitedbysharesestablishedonApril26,1993andrestructuredfromHainanSanyaDadonghaiTourismCentreDevelopmentCo.,Ltd.withtheapprovalofHainanShareholdingSystemPilotGroupofficeviaitsDocumentQiongGuBanZi[1993]No.11.OnMay6,1996,theCompanywasreorganizedandseparatedwiththereplyofHainanSecuritiesManagementOfficebyitsDocumentQiongZhengBan[1996]No.58.OnOctober8,1996andJanuary28,1997,theCompanywasapprovedtorespectivelyissue80millionBsharesand14millionAsharesonShenzhenStockExchangeandlistforsales.OnJune20,2007,theCompanycarriedoutthesplitsharestructurereform.Thenon-tradableshareholdersoftheCompanypaidsharestothetradableshareholdersforobtainingthecirculationrights,andthetradableshareholdersgot3sharesforevery10shares.TheCompanybelongstotourismandcateringserviceindustry.
AsatJune30,2018,theCompany'saccumulativetotalissuedcapitalwas364.1millionsharesandtheCompany'sregisteredcapitalwasRMB364.1million.Legalrepresentative:LiYuanbin.Unifiedsocialcreditcode:
91460000201357188U.Domicile:Dadonghai,HedongDistrict,Sanya.Businessscope:Accommodationandcateringindustry(limitedtobranches);photography;flowerbonsai,knitwear,generalmerchandise,hardware,chemicalproducts(exceptfranchisedoperations),dailynecessities,industrialmeansofproduction(exceptfranchisedoperations),metalmaterials,machineryequipment;salesoftrain,bus,vehicleticketsonanagentbasisetc.TheCompany'slargestshareholderisLuoniushanCo.,Ltd.
ThefinancialstatementswereapprovedbytheboardofdirectorsoftheCompanyonAugust9,2018fordisclosure.
AsatJune30,2018,thesubsidiariesincludedintotheCompany'sscopeofconsolidatedfinancialstatementsareasfollows:
NameRelationshipwiththeCompanyHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.SouthChinaHotel(hereinafterreferredtoas"theSouthChina
Branch
Hotel")
IV.Basisofpreparationofthefinancialstatements
1.Preparationbasis
Basedongoingconcernandaccordingtoactuallyoccurredtransactionsandevents,theCompanypreparedfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises—BasicStandardsandthespecificaccountingstandards,ApplicationGuidancetotheAccountingStandardsforBusinessEnterprises,theinterpretationoftheAccountingStandardsforBusinessEnterprisesandotherrelevantprovisions(hereinafterreferredtocollectivelyasthe"AccountingStandardsforBusinessEnterprises"),aswellasthedisclosureprovisionsoftheRulesfortheCompilationandSubmissionofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15-GeneralRequirementsforFinancialReports(Revisedin2014).
2Goingconcern
TheCompanycurrentlyhassufficientworkingcapitalandnormaloperatingconditions.ItisestimatedthattheoperatingactivitiesoftheCompanywillcontinueinthenext12months.
V.SignificantSignificantSignificantSignificantaccountingaccountingaccountingaccountingpoliciespoliciespoliciespoliciesandandandandaccountingaccountingaccountingaccountingestimatesestimatesestimatesestimates
Specificaccountingpoliciesandestimationattention:
ThemainaccountingpoliciesandaccountingestimatesoftheCompanyhadnochange.
1.StatementoncompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanycomplywiththerequirementsoftheAccountingStandardsforBusinessEnterprises,andtrulyandcompletelypresentthefinancialposition,operatingresults,cashflowsoftheCompanyandotherrelatedinformation.
2.Accountingperiod
TheaccountingyearisfromJanuary1toDecember31incalendaryear.
3.Operatingcycle
TheCompany'soperatingcycleis12months.
4.Reportingcurrency
TheCompanyadoptsRMBasitsreportingcurrency.
5.AccountingTreatmentMethodforBusinessCombinations(underthesame/differentcontrol)6.Preparationmethodforconsolidatedfinancialstatement7.Jointarrangementclassificationandaccountingtreatmentforjointoperations8.Recognitioncriteriaofcashandcashequivalents
Forthepurposeofpreparingthestatementofcashflows,theterm“cash”referstothecashonhandandtheunrestricteddepositoftheCompany.Theterm“cashequivalents”referstoshort-term(maturingwithinthreemonthsfromacquisition)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.
9.Foreigncurrencybusinessandforeigncurrencystatementconversion
ForeigncurrencytransactionswillbetranslatedatthespotexchangerateonthetransactiondateandbeaccountedforatRMB.
Thebalanceofforeigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdateandtheexchangedifferencesarisingtherefromshallbeincludedinthecurrentprofitandloss,exceptthoseexchangedifferencesarisingfromthespecialborrowingsofforeigncurrencyrelatedtotheacquiredandconstructedassetsqualifiedforcapitalizationthatwillbecapitalizedattheborrowingexpenses.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostsshallstillbeconvertedatthespotexchangerateswhenthetransactionsoccur,withoutchangingthefunctionalcurrencyamount.Foreigncurrencynon-monetaryitemsmeasuredatfairvalueshallbetranslatedatthespotexchangeratesonthedaywhenthefairvalueisdetermined.Theexchangedifferencearisingtherefromisincludedinthecurrentprofitandlossorcapitalreserves.
10.Financialinstruments
Financialinstrumentsincludefinancialassets,financialliabilitiesandequityinstruments.
10.1Classificationoffinancialinstruments
Uponinitialrecognition,financialassetsandfinancialliabilitiesareclassifiedinto:financialassetsorfinancialliabilitiesmeasuredatfairvaluethroughcurrentprofitandloss,includingfinancialassetsorfinancialliabilitiesheldfortradingandfinancialassetsorfinancialliabilitiesdirectlydesignatedtobemeasuredatfairvaluethroughcurrentprofitandloss;held-to-maturityinvestments;receivables;available-for-salefinancialassets;andotherfinancialliabilities,etc.
10.2Recognitionandmeasurementoffinancialinstruments
(1)Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossFinancialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossareinitiallyrecognizedatthefairvalueuponacquisition(netofcashdividendsdeclaredbutnotyetpaidorbondinterestduebutnotyet
received)andtherelatedtransactioncostsareincludedincurrentprofitandloss.Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.Changeinfairvaluesisincludedinthecurrentprofitandlossattheendoftheperiod.Thedifferencebetweenthefairvalueandtheinitialbook-entryvalueisrecognizedasinvestmentincomeupondisposal;meanwhile,adjustmentsaremadetoprofitsorlossesfromchangesinfairvalues.(2)Held-to-maturityinvestmentsHeld-to-maturityinvestmentsareinitiallyrecognizedatthesumofthefairvalue(netofbondinterestduebutnotyetreceived)andrelatedtransactioncostsuponacquisition.Theinterestincomeiscalculatedandrecognizedaccordingtoamortizedcostsandeffectiveinterestrates(aspercouponratesifthedifferencebetweeneffectiveinterestratesandcouponratesissmall)duringtheholdingperiod,andisincludedintheinvestmentincome.Theeffectiveinterestratesaredetermineduponacquisitionandremainunchangedduringtheexpectedremainingperiod,orashorterperiodifapplicable.Upondisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueoftheinvestmentisrecognizedininvestmentincome.(3)ReceivablesForcreditor’srightsreceivablearisingfromexternalsalesofgoodsorrenderingofservicebytheCompanyandothercreditor'srightsofotherenterprises(excludingliabilityinstrumentsquotedinanactivemarket)heldbytheCompany,includingaccountsreceivable,otherreceivables,notesreceivable,prepaymentandothers,theinitialrecognitionamountshallbethecontractpriceoragreementpricereceivablefrompurchasingparty;forthosewithfinancingnature,theyareinitiallyrecognizedattheirpresentvalues.Uponrecoveryordisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueofthereceivablesisrecognizedincurrentprofitandloss.(4)Available-for-salefinancialassetsFinancialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossareinitiallyrecognizedatthefairvalueandrelatedtransactionexpensesuponacquisition(netofcashdividendsdeclaredbutnotyetpaidorbondinterestduebutnotyetreceived).Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.Theinterestorcashdividendsshouldbemeasuredatfairvalueandtheirchangesinfairvalueshouldbeincludedinothercomprehensiveincome.However,foranequityinstrumentinvestmentthathasnoquotedpriceinanactivemarketandwhosefairvaluecannotbereliablymeasured,andforderivativefinancialassetlinkedtothesaidequityinstrumentinvestmentandsettledbydeliveryofthesameequityinstrument,theyshallbemeasuredatcost.Differencebetweentheproceedsandthebookvalueofthefinancialassetsisrecognizedasinvestmentprofitorlossupondisposal;meanwhile,amountofdisposalcorrespondingtotheaccumulatedchangeinfairvaluewhichisoriginallyanddirectlyincludedinothercomprehensiveincomeshallbetransferredoutandrecognizedasinvestmentgainsorlosses.(5)OtherfinancialliabilitiesOtherfinancialliabilitiesareinitiallyrecognizedatthesumoffairvalueandtransactionexpenses,andsubsequentlymeasuredatamortizedcosts.Subsequentmeasurementisconductedattheamortizedcost.
10.3Recognitionandmeasurementoftransferoffinancialassets
Whenafinancialassetstransferoccurs,thefinancialassetswillbederecognizedwhensubstantiallyalltherisksandrewardsontheownershipofthefinancialassetshavebeentransferredtothetransferee;andtheywillnotbederecognizedifsubstantiallyalltherisksandrewardsontheownershipofthefinancialassetshavebeenretained.Whendeterminingwhetherthetransferofafinancialassetmeetstheabovede-recognitioncriteriaoffinancialassets,theCompanyadoptstheprincipleofsubstanceoverform.TheCompanyclassifiesthetransferofafinancialassetintotheentiretransferandthepartialtransferoffinancialasset.Wheretheentiretransferofthefinancialassetmeetsthede-recognitionconditions,thedifferenceofthefollowingtwoamountswillbeincludedincurrentprofitandloss:
(1)Thebookvalueofthetransferredfinancialasset;(2)Thesumoftheconsiderationreceivedfromthetransferandtheaccumulatedamountofthechangesinfairvalueoriginallyanddirectlyincludedinowners’equity(thesituationwherethefinancialassettransferredisanavailable-for-salefinancialassetisinvolvedin).Ifthepartialtransferoffinancialassetsatisfiesthecriteriaforde-recognition,theentirebookvalueofthetransferredfinancialassetshallbesplitintothederecognizedandrecognizedpartaccordingtotheirrespectivefairvalueandthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedinthecurrentprofitandloss:
(1)Thebookvalueofthederecognizedpart;(2)Thesumoftheconsiderationforthederecognizedpartandtheportionofde-recognitioncorrespondingtotheaccumulatedamountofthechangesinfairvalueoriginallyanddirectlyincludedinowners’equity(thesituationwherethefinancialassettransferredisanavailable-for-salefinancialassetisinvolvedin).Ifthetransferoffinancialassetsdoesnotmeetthede-recognitioncriteria,thefinancialassetsshallcontinuetoberecognized,andtheconsiderationreceivedwillberecognizedasafinancialliability.
10.4De-recognitioncriteriaoffinancialliabilities
Wherethepresentobligationsoffinancialliabilitieshavebeendischargedinwholeorinpart,thefinancialliabilityisderecognizedoranypartthereofwillbederecognized;iftheCompanysignsanagreementwithcreditorstoreplacetheexistingfinancialliabilitiesbyundertakingnewfinancialliabilities,andthenewfinancialliabilitiesaresubstantiallydifferentfromtheexistingonesintermsofcontractterms,theexistingfinancialliabilitieswillbederecognized,andatthesametime,thenewfinancialliabilitywillberecognized.Wheresubstantivechangesaremadetothecontracttermsofexistingfinancialliabilityinwholeorinpart,theexistingfinancialliabilitiesorpartthereofwillbederecognized,andthefinancialliabilitythetermsofwhichhavebeenmodifiedwillberecognizedasanewfinancialliability.Wherefinancialliabilitiesarederecognizediswholeorinpart,thedifferencebetweenthebookvalueofthefinancialliabilitiesderecognizedandtheconsiderationpaid(includingnon-cashassetstransferredoutornewfinancialliabilitiesborne)willbeincludedintocurrentprofitandloss.WheretheCompanyrepurchasespartofafinancialliability,theentirebookvalueofthefinancialliabilityshallbesplitintothederecognizedpartandcontinuously-recognizedpartaccordingtotheirrespectiverelativelyfairvaluesontherepurchasedate.Thedifferencebetweenthebookvalueofthederecognizedpartandthe
considerationpaid(includingnon-cashassetstransferredoutornewfinancialliabilitiesassumed)shallbeincludedinthecurrentprofitandloss.
10.5Methodofdeterminingthefairvalueoffinancialassetsandfinancialliabilities
Thefairvalueofafinancialinstrument,forwhichthereisanactivemarket,isthepricesquotedforittherein.Fairvalueofafinancialinstrumenthavingnoactivemarketshallbedeterminedbyusingvaluationtechniques.Atthetimeofvaluation,theCompanyadoptsthetechniquesthatareapplicableinthecurrentsituationandsupportedbyenoughavailabledataandotherinformation,selectstheinputvaluesthatareconsistentwiththefeaturesofassetsorliabilitiesasconsideredbymarketparticipantsinrelevantassetorliabilitytransactions,andgivesprioritytouserelevantobservableinputs.Theunobservableinputsareusedonlyunderthecircumstancewhenitisimpossibleorunobservableinputstoobtainrelevantobservableinputs.
10.6Testingandaccountingmethodsofimpairmentoffinancialassets(excludingreceivables)
Exceptforthefinancialassetsmeasuredatfairvaluesthroughcurrentprofitandloss,thebookvalueoffinancialassetsonthebalancesheetdateshouldbechecked.Ifthereisobjectiveevidencethatafinancialassetisimpaired,provisionforimpairmentshallbemade.(1)Impairmentprovisionforavailable-for-salefinancialassets:
Ifthefairvalueofavailable-for-salefinancialassetshassignificantlydeclinedattheendoftheperiod,oritisexpectedthatthetrendofdecreaseinvalueisnon-temporaryafterconsideringvariousrelevantfactors,theimpairmentshallberecognized,andaccumulatedlossesfromdecreasesinfairvalueoriginallyanddirectlyincludedinowners’equityshallbealltransferredoutandrecognizedasimpairmentloss.Foravailable-for-saledebtinstrumentswhoseimpairmentlosseshavebeenrecognized,iftheirfairvaluesriseinthesubsequentaccountingperiodandsuchriseisobjectivelyrelatedtothemattersoccurringaftertherecognitionofimpairmentloss,thepreviouslyrecognizedimpairmentlossshallbereversedandrecordedintothecurrentprofitandloss.Impairmentlossesonavailable-for-saleequityinstrumentsshallnotbereversedthroughprofitorloss.(2)Impairmentprovisionforheld-to-maturityinvestments:
Measurementofimpairmentlossesonheld-to-maturityinvestmentsistreatedinaccordancewiththemeasurementmethodforimpairmentlossesonreceivables.
11.Accountsreceivable(1)Accountreceivablewithindividuallysignificantamountandwithbaddebtprovisionaccrual
independently
Basisandstandardfor"individuallysignificant"
Top5accountsreceivableandotherreceivablesbyindividualamountattheendoftheyear
Methodsforprovisionforbaddebtsofreceivableswithindividuallysignificantamount:
TheCompanywillseparatelyconductanimpairmenttestonanindividualbasisandtheallowanceforbaddebtswillbemadeatthelowerofthepresentvalueoftheexpectedfuturecashflowandthebookvaluethereofandincludedincurrentprofitandloss.Thosedonotimpairaftertheseparatetestshallbeincludedintocorrespondingportfoliofor
provisionforbaddebts.Ifseparatetestindicatesthatthereisimpairmentofreceivables,theyshallnotbeincludedthereceivablesportfoliowithsimilarriskcreditcharacteristicsforanimpairmenttest.
(2)Receivableswithbaddebtprovisionaccrualbycreditportfolio:
PortfolioMethodsforprovisionforbaddebtsReceivablesprovidedforbaddebtsonaportfoliobasis
AginganalysisProvisionsforbaddebtsmadebyaginganalysismethodareasfollows:
√Applicable□Notapplicable
AgingProvisionratioforreceivablesProportionratioforotherreceivablesWithin1year(inclusive)0.00%0.00%1-2years
5.00%5.00%2-3years
15.00%15.00%3-4years
25.00%25.00%4-5years
50.00%50.00%Over5years
100.00%100.00%Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportion□Applicable√NotapplicableIncombination,withdrawalproportionofbaddebtprovisionbasedonothermethods:
□Applicable√Notapplicable
(3)Accountsreceivablewithindividuallyinsignificantamountsandindividualallowanceforbaddebt
Reasonsforseparateprovisionofallowanceforbaddebts
Attheendoftheyear,thereareobjectiveevidencesshowingthattheindividualbalancesbelowtopfiveareimpaired;forexample,thedebtorisdissolved,bankruptsordies,andthereforethereceivablescannotberecoveredafterthebankruptcypropertyortheestateisrepaid.
Provisionmethodofallowanceforbaddebts
ifthereisanobjectiveevidencethattheimpairmentonreceivableshasoccurred,suchreceivablesshallbeseparatedfromrelevantportfoliotoconductimpairmenttestseparately,basedonwhichtheimpairmentlossesarerecognized.Receivablesotherthanaccountsreceivableandotherreceivablesaresubjecttoimpairmentprovisionbyusingthespecificidentificationmethods.
12.Inventories
DoestheCompanyneedtocomplywiththedisclosurerequirementofthespecialindustryNo
1.Classification
Inventoriesareclassifiedinto:rawmaterials,stockcommodities,low-costconsumables,goodmaterials,fuel,etc.
2.Valuationmethodofinventoriesdispatched
Stockcommodityisaccountedforatthesellingpriceandthedifferencebetweenthepurchaseandsalepricesareadjustedonamonthlybasisbyusingtheintegratedpricedifferencerate.Thepurchaseandstorageofallmaterialsofinventoriesismeasuredatactualcost,andbyusingthefirst-infirst-outmethodwhenappliedforuse.Low-costconsumablesareamortizedatlump-summethodwhenappliedforuse.
3.Determiningbasisofthenetrealizablevalueofinventoriesandmethodforinventoryimpairmentprovision
Afterthecomprehensiveinventorycountattheendoftheperiod,provisionsforinventorydepreciationreservearemadeoradjustedattheloweroftheircostsornetrealizablevalues.Formerchandiseinventoriesfordirectsale,includingstockcommodities,goodsinprogressandmaterialsforsale,duringnormaloperations,theirnetrealizablevaluesarerecognizedattheestimatedsellingpricesminustheestimatedsellingexpensesandtherelevanttaxesandsurcharges;formaterialinventoriesheldforproduction,theirnetrealizablevaluesarerecognizedattheestimatedsellingpricesoffinishedgoodsminusestimatedcostsuntilcompletion,estimatedsellingexpensesandrelevanttaxesandsurcharges.Theprovisionsforinventorydepreciationreservearemadeonanindividualbasisattheendoftheperiod;forinventorieswithlargequantitiesandrelativelylowunitprices,theprovisionsforinventorydepreciationreservearemadeonacategorybasis.Forinventoriesrelatedtotheproductportfoliosmanufacturedandsoldinthesamearea,andofwhichthefinalusageorpurposeisidenticalorsimilarthereto,andwhichisdifficulttoseparatefromotheritemsformeasurementpurposes,theprovisionsforinventorydepreciationreservearemadeonaportfoliobasis.Wherethepreviousfactorsaffectingthewritten-downofthevalueofinventoryhavedisappeared,theamountofwrite-downshallberesumedandbereversedfromtheoriginalprovisionforinventorydevaluationwiththereversalbeingincludedincurrentprofitandloss.
4.Inventorysystem
Theperpetualinventorysystemisadoptedforaccounting.
5.Amortizationmethodsforlow-costconsumablesandpackagingmaterials
(1)Low-costconsumablesareamortizedatlump-summethod;(2)Packagingmaterials:lump-sumwrite-offmethod.
13.Assetsheldforsale14.Long-termequityinvestments1.Judgmentcriteriaforcommoncontrolandsignificantinfluence
Jointcontrolreferstothecontrolsharedoveranarrangementinaccordancewiththerelevantstipulations,andthedecision-makingofrelatedactivitiesofthearrangementshouldnotbemadebeforethepartysharingthecontrolrightagreesthesame.WheretheCompanyexercisesjointcontrolovertheinvesteetogetherwithotherpartiestothejointventureandenjoystherightontheinvestee'snetassets,theinvesteeisajointventureoftheCompany.
Significantinfluencereferstothepowertoparticipateinmakingdecisionsonthefinancialandoperatingpoliciesofanenterprise,suchasappointingrepresentativetotheboardofdirectorsorsimilarorgansofauthorityoftheinvestee,butnotthepowertocontroltheinvestee,orjointlycontrol,theformulationofsuchpolicieswithotherparties.Whereaninvestorisabletohavesignificantinfluencesonaninvestee,theinvesteeshallbetheCompany'sassociate.
2.Determiningofinitialinvestmentcost
(1)Long-termequityinvestmentacquiredfrombusinesscombinationBusinesscombinationunderthecommoncontrol:iftheCompanypaysaconsiderationtothecombineeincash,bytransferringnon-cashassetsorbyassumingdebts,theshareofbookvalueofitsowners'equityinthecombineeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyshallberegarded,onthemergerdate,astheinitialinvestmentcostofthelong-termequityinvestment.Ifthereisadifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthetotalofbookvaluesofthepaidcash,transferrednon-cashassetsandofassumeddebtsaswellasthefacevalueofissuedshare,thedifferenceshallbeusedtoadjustthesharepremiuminthecapitalreserve;andifthesharepremiuminthecapitalreserveisinsufficienttobeoffset,retainedearningsshallbeadjusted.IncasetheCompanycanexercisecontrolovertheinvesteeundercommoncontrolforadditionalinvestmentorotherreasons,theinitialinvestmentcostoflong-termequityinvestmentsisrecognizedattheshareofbookvalueofnetassetoftheacquireeafterthecombinationintheconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestockpremiumshouldbeadjustedatthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsonthecombinationdateandthebookvalueoflong-termequityinvestmentsbeforethecombinationplusthebookvalueofconsiderationpaidforadditionalshares;ifthereisnosufficientstockpremiumforwrite-downs,theretainedearningsareadjusted.Businesscombinationnotunderthecommoncontrol:theCompanyrecognizesthecombinationcostdeterminedonthecombinationdateastheinitialcostoflong-termequityinvestments.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,theinitialinvestmentcostshouldbechangedtobeaccountedforunderthecostmethodandrecognizedatthesumofthebookvalueofequityinvestments
originallyheldandnewlyincreasedinvestmentcost.Underbusinesscombinationnotunderthecommoncontrol,theauditing,legalservices,consultingandotherintermediaryfeesandotherrelatedadministrativeexpensesforbusinesscombinationwillbeincludedintocurrentprofitandlossuponoccurrence;thetransactioncostsfortheissuanceofequitysecuritiesordebtsecuritiesshallbeincludedintotheinitialrecognitionamountofequitysecuritiesordebtsecurities.(2)Long-termequityinvestmentsobtainedbyothermeansForlong-termequityinvestmentsacquiredfrommakingpaymentsincash,theinitialcostistheactuallypaidpurchasecost.Forlong-termequityinvestmentsacquiredfromissuanceofequitysecurities,theinitialinvestmentcostisthefairvalueoftheissuedequitysecurities.Iftheexchangeofnon-monetaryassetshascommercialsubstanceandthefairvaluesofassetstradedoutandtradedincanbemeasuredreliably,theinitialcostoflong-termequityinvestmenttradedinwithnon-monetaryassetsaredeterminedbasedonthefairvaluesoftheassetstradedoutandtherelevanttaxesandsurchargespayableunlessthereisanyconclusiveevidencethatthefairvaluesoftheassetstradedinaremorereliable;iftheexchangeofnon-monetaryassetsdoesnotmeettheabovecriteria,thebookvalueoftheassetstradedoutandtherelevanttaxesandsurchargespayablearerecognizedastheinitialcostoflong-termequityinvestmenttradedin.Forlong-termequityinvestmentacquiredfromdebtrestructuring,theinitialcostisdeterminedbasedonthefairvalue.
3.Subsequentmeasurementsandrecognitionofgainorloss
(1)Long-termequityinvestmentundercostmethodLong-termequityinvestmentsinsubsidiariesareaccountedforunderthecostmethod.Exceptfortheactualpricepaidforacquisitionofinvestmentorthecashdividendsorprofitscontainedintheconsiderationwhichhavebeendeclaredbutnotyetdistributed,theCompanyrecognizestheinvestmentincomeinthecurrentyearatthecashdividendsorprofitsdeclaredbytheinvestee.
(2)Long-termequityinvestmentaccountedforintheequitymethodTheCompany'slong-termequityinvestmentsinassociatesandjointventuresareaccountedforbyusingtheequitymethod.Iftheinitialcostismorethantheshareofthefairvalueoftheinvestee'identifiablenetassettowhichtheCompanyshallbeentitledwheninvesting,theinitialcostofthelong-termequityinvestmentwillnotbeadjusted.Iftheinitialcostofalong-termequityinvestmentislessthantheshareofthefairvalueoftheinvestee'sidentifiablenetassettowhichtheCompanyshallbeentitledwheninvesting,thedifferenceshallbeincludedinthecurrentprofitorloss.
TheCompanyrespectivelyrecognizestheinvestmentincomeandothercomprehensiveincomeaccordingtothesharesofnetprofitorlossandothercomprehensiveincomerealizedbytheinvesteethatshouldenjoyedorassumedbytheCompany,andadjuststhebookvalueoflong-termequityinvestment;accordingtotheprofit
declaredtobedistributedbytheinvesteeorthepartshallbeenjoyedcashdividendscalculation,toreducethebookvalueoflong-termequityinvestmentcorrespondingly;forotherchangesinowners'equityexceptingforexallprofitorlossoftheinvestee,othercomprehensiveincomeandprofitdistribution,thebookvalueoflong-termequityinvestmentshallbeadjustedandincludedintheowners'equity.
WhenrecognizingtheshareofnetprofitorlossoftheinvesteethattheCompanyshallenjoy,basedonfairvalueofvariousidentifiableassetsandothersoftheinvesteeonacquisitionandaccordingtoaccountingpoliciesandaccountingperiodsoftheCompany,theCompanyshallrecognizesuchshareaftermakingadjustmentstonetprofitoftheinvestee.Whenholdingtheinvestment,theinvesteeshouldpreparetheconsolidatedfinancialstatements,itshallaccountfortheinvestmentincomebasedonthenetprofit,othercomprehensiveincomeandthechangesinotherowner'sequityattributabletotheinvestee.
TheCompanyshallwriteoffthepartofincomesfrominternalunrealizedtransactionsbetweentheCompanyandassociatesandjointventureswhichareattributabletotheCompanyaccordingtothecorrespondingratioandrecognizetheprofitandlossoninvestmentsonsuchbasis.WherethelossesfrominternaltransactionsbetweentheCompanyandtheinvesteefallintothescopeofassetsimpairmentloss,thefullamountofsuchlossesshouldberecognized.FortransactionsoninvestmentsorsalesofassetsbetweentheCompanyandassociatesandjointventures,wheresuchassetsconstitutebusiness,theyshouldbeaccountedforaccordingtotherelevantpolicies.
WhentheCompanyrecognizesitsshareoflossincurredtotheinvestee,treatmentshallbedoneinthefollowingsequence:firstly,thebookvalueofthelong-termequityinvestmentshallbereduced;secondly,wherethebookvaluethereofisinsufficienttocovertheshareoflosses,investmentlossesarerecognizedtotheextentofbookvalueofotherlong-termequitieswhichformnetinvestmentintheinvesteeinsubstanceandthebookvalueoflongtermreceivablesshallbereduced.Finally,afteralltheabovetreatments,iftheCompanyisstillresponsibleforanyadditionalliabilityinaccordancewiththeprovisionsstipulatedintheinvestmentcontractsoragreements,provisionsarerecognizedandincludedintocurrentinvestmentlossaccordingtotheobligationsestimatedtoundertake.Aninvestingpartyshallrecognizethenetlossincurredbytheinvestedentityuntilthebookvalueofthelong-termequityinvestmentandotherlong-terminterestswhichsubstantiallyformthenetinvestmentintheinvestedentityarereducedtozero,unlesstheinvestingpartyisobligedtoundertakeextralosses.Iftheinvestedentityrealizesanynetprofitlater,theinvestingpartyshall,aftertheamountofitsattributableshareofprofitsoffsetsitsattributableshareoftheunrecognizedlosses,resumerecognizingitsattributableshareofprofits.
(3)Disposaloflong-termequityinvestmentsFordisposaloflong-termequityinvestments,thedifferencebetweenthebookvalueandtheactualpriceshallbeincludedintothecurrentprofitorloss.
Wherealong-termequityinvestmentisaccountedforundertheequitymethod,accountingtreatmentshouldbe
madeonthepartwhichisoriginallyincludedinothercomprehensiveincomeaccordingtocorrespondingratiobyusingthesamebasisfortheinvesteetodirectlydisposeoftherelevantassetsorliabilitieswhentheinvestmentsaredisposedof.Owner'sequityrecognizedfromtheinvestee'schangesinotherowner'sequityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionshouldalltransferredtothecurrentprofitandlossinproportion.
Incasethejointcontrolorsignificantinfluenceovertheinvesteeislostfordisposingpartofequityinvestmentsorotherreasons,theremainingequitywillbechangedtobeaccountedforaccordingtotherecognitionandmeasurementprinciplesoffinancialinstruments.Thedifferencebetweenthefairvalueandthebookvalueonthedateofthelossofjointcontrolorsignificantinfluenceshouldbeincludedinthecurrentprofitandloss.Astoothercomprehensiveincomerecognizedbasedonmeasurementoftheoriginalequityinvestmentundertheequitymethod,accountingtreatmentshallbemadeonthesamebasisaswouldberequirediftheinvesteehaddirectlydisposedoftheassetsorliabilitiesrelatedtheretowhenmeasurementundertheequitymethodisterminated.Owner'sequityrecognizedfromtheinvestee'schangesinotherowner'sequityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionshouldalltransferredtothecurrentprofitandlosswhentheequitymethodconfirmedisnolongeradopted.
WheretheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentsorotherreasons,whenitpreparesseparatefinancialstatements,theremainingequityafterdisposalthatcanjointlycontrolorhavesignificantinfluenceontheinvesteewillbemeasuredattheequitymethod,andtheremainingequityshouldbedeemedtohavebeenadjustedatequitymethodonacquisition;
Iftheremainingequityafterdisposalcannotexercisejointcontrolorsignificantinfluenceontheinvestee,suchinvestmentsshouldbeaccountedforaccordingtotheprovisionsontherecognitionandmeasurementoffinancialinstrumentsandthedifferencebetweenfairvalueandbookvalueonthedateoflossofthecontrolshouldbeincludedinthecurrentprofitandloss.
Wherethedisposedequitiesareacquiredbytheenterprisecombinationduetothereasonssuchasadditionalinvestment,theremainingequitiesafterthedisposalarecalculatedbasedonthecostmethodorequitymethodinpreparingtheindividualfinancialstatements,andothercomprehensiveincomeandotherowners'equityrecognizedbecauseoftheequitymethodadoptedforthecalculationoftheequityinvestmentheldpriortothepurchasedatearecarriedforwardinproportion;theremainingequitiesafterthedisposalarechangedtobemadeinaccordancewiththerelevantprovisionsintherecognitionandmeasurementcriteriaoffinancialinstrumentswhileothercomprehensiveincomeandotherowners'equityarecarriedforwardinfull.
15.Investmentproperty
MeasurementmodeMeasuredbycostmethodDepreciationoramortizationmethod
Investmentpropertiesarepropertiestoearnrentalsorforcapitalappreciationorboth.Examplesincludelandleasedoutunderoperatingleases,landheldforlong-termcapitalappreciation,buildingsleasedoutunderoperatingleases,(includingbuildingsthathavebeenconstructedordevelopedforfutureleaseoutunderoperatingleases,andbuildingsthatarebeingconstructedordevelopedforfutureleaseoutunderoperatingleases).
TheCompanymeasurestheexistinginvestmentpropertiesbyusingthecostmodel.Forinvestmentpropertymeasuredbyusingthecostmodel,thebuildingsforleaseshallbedepreciatedbyusingpoliciesthesameasusedforfixedassetsoftheCompany,andthelanduserightsforleaseshallbeamortizedbyusingthesamepoliciesasapplicabletointangibleassets.
16.Fixedassets(1)Recognitioncriteriaoffixedassets
Fixedassetsrefertothetangibleassetsheldforthepurposeofproducingcommodities,renderingservices,rentingorbusinessmanagementwithusefullivesexceedingoneyear.Fixedassetsarerecognizedwhentheysimultaneouslymeetthefollowingconditions:
(1)ItisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintotheCompany;and(2)Thecostsofthefixedassetcanbemeasuredreliably.
(2)Depreciationmethodoffixedassets
AssettypeDepreciationmethodYearfordepreciationResidualvaluerate
Yearlydepreciation
rateHousesandbuildingsStraight-linemethod20-4054.75-2.37MechanicalequipmentStraight-linemethod8-20511.87-4.75Entertainmentequipment
Straight-linemethod5-16519-5.93Transportation
equipment
Straight-linemethod7-12513.57-7.91OtherequipmentStraight-linemethod8511.87
(3)Reorganizationbasis,valuationanddepreciationmethodforfinancialleaseassets17.Constructioninprogress
Thebook-entryvaluesofthefixedassetsarestatedattotalexpendituresincurredbeforereachingworkingconditionfortheirintendeduse.Forconstructioninprogressthathasreachedworkingconditionsforitsintendedusebutforwhichthecompletionofsettlementhasnotbeenhandled,itshallbetransferredintofixedassetsattheestimatedvalueaccordingtotheprojectbudget,constructionpriceoractualcost,etc.fromthedatewhenitreachestheworkingconditionsforitsintendeduse.ThefixedassetsshallbedepreciatedinaccordancewiththeCompany’spolicyonfixedassetdepreciation.Adjustmentshallbemadetotheoriginallyandprovisionallyestimatedvaluebasedontheactualcostafterthecompletionofsettlementishandled,butdepreciationalreadyprovidedwillnotbeadjusted.
18.Borrowingcosts1.Recognitionprinciplesofcapitalizationofborrowingcosts
Borrowingcostsincludetheinterestofborrowings,theamortizationofdiscountorpremium,auxiliaryexpenses,exchangedifferencesincurredbyforeigncurrencyborrowings,etc.TheborrowingcostsincurredtotheCompanyanddirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalizationshouldbecapitalizedandrecordedintorelevantassetcosts;otherborrowingcostsshouldberecognizedascostsaccordingtotheamountincurredandbeincludedintothecurrentprofitandloss.Assetseligibleforcapitalizationrefertofixedassets,investmentproperty,inventoriesandotherassetswhichmayreachtheirintendeduseorsalestatusonlyafterlong-timeacquisitionandconstructionorproductionactivities.Borrowingcostsmaybecapitalizedonlywhenallthefollowingconditionsaremetatthesametime:
(1)Assetdisbursements,whichincludethoseincurredbycashpayment,thetransferofnon-cashassetsortheundertakingofinterest-bearingdebtsforacquiringandconstructingorproducingassetseligibleforcapitalization,havealreadybeenincurred;(2)Borrowingcostshavealreadybeenincurred;(3)Purchase,constructionormanufacturingactivitiesthatarenecessarytopreparetheassetsfortheirintendeduseareinprogress.
2.Capitalizationperiodofborrowingcosts
Capitalizationperiodreferstotheperiodfromcommencementofcapitalizationofborrowingcoststoitscessation;periodofsuspensionforcapitalizationisexcluded.Capitalizationofborrowingcostsshouldceasewhentheacquiredandconstructedorproducedassetseligibleforcapitalizationhavereachedtheworkingconditionfortheirintendeduseorsale.
Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchprojectsshouldbeceased.Ifallpartsoftheacquiredandconstructedorproducedassetsarecompletedbuttheassetscannotbeusedorsoldexternallyuntiloverallcompletion,thecapitalizationofborrowingcostsshouldbeceasedatthetimeofoverallcompletionofthesaidassets.
3.Periodofsuspensionforcapitalization
Iftheacquisitionandconstructionorproductionactivitiesofassetseligibleforcapitalizationareabnormallyinterruptedandsuchconditionlastsformorethanthreemonths,thecapitalizationofborrowingcostsshouldbesuspended;iftheinterruptionisnecessaryproceduresfortheacquired,constructedorproducedassetseligibleforcapitalizationtoreachtheworkingconditionsforitsintendeduseorsale,theborrowingcostscontinuetobecapitalized.Borrowingcostsincurredduringtheinterruptionarerecognizedasthecurrentprofitandlossandcontinuetobecapitalizeduntiltheacquisition,constructionorproductionoftheassetrestarts.
4.Calculationofcapitalizationamountofborrowingcosts
Asforspecialborrowingsborrowedforacquiringandconstructingorproducingassetseligibleforcapitalization,borrowingcostsofspecialborrowingactuallyincurredinthecurrentperiodlesstheinterestincomeoftheborrowingsunusedanddepositedinbankorreturnontemporaryinvestmentshouldberecognizedasthecapitalizationamountofborrowingcosts.Asforgeneralborrowingsusedforacquiringandconstructingorproducingassetseligibleforcapitalization,theinterestofgeneralborrowingstobecapitalizedshouldbecalculatedbymultiplyingtheweightedaverageofassetdisbursementsofthepartofaccumulatedassetdisbursementsexceedingspecialborrowingsatendofeachmonthbythecapitalizationrateofusedgeneralborrowings.Thecapitalizationrateiscalculatedbyweightedaverageinterestrateofgeneralborrowings.Asforborrowingswithdiscountorpremium,theto-be-amortizeddiscountorpremiumineachaccountingperiodshouldberecognizedbyeffectiveinterestratemethod,andtheinterestforeachperiodshouldbeadjusted.
19.Biologicalassets:Nil20.Oil-and-gasassets:Nil21.Intangibleassets(1)Valuationmethod,usefullivesandimpairment1.Valuationmethodofintangibleassets
(1)TheCompanyinitiallymeasuresintangibleassetsatcostonacquisition;
Thecostsofexternallypurchasedintangibleassetsincludepurchaseprices,relevanttaxesandsurchargesandotherdirectlyattributableexpendituresincurredtopreparetheassetsfortheirintendeduse.Ifthepaymentforanintangibleassetisdelayedbeyondthenormalcreditconditionsanditisofthefinancingnature,thecostoftheintangibleassetshallbedeterminedonthebasisofthecurrentvalueofthepurchaseprice.Foranintangibleassetobtainedindebtrestructuringbyadebtorforthesettlementofrelevantliability,thebook-entryvalueshallbeinitiallyrecognizedbasedonthefairvalueoftheintangibleasset.Differencebetweenthebookvalueofrestructureddebtsandthefairvalueoftheintangibleassetusedfordebtoff-setshallbeincludedinthecurrentprofitorloss;Onthepremisethatnon-monetaryassetstradeisofcommercialnatureandthefairvalueoftheassetstradedinoroutcanbemeasuredreliably,theintangibleassetstradedinwithnon-monetaryassetsshouldberecognizedatthefairvalueoftheassetstradedout,unlessanyunambiguousevidenceindicatesthatthefairvalueoftheassetstradedinismorereliable;astothenon-monetaryassetstradenotmeetingtheaforesaidpremise,thebookvalueoftheassetstradedoutandrelatedtaxesandsurchargespayableshouldberecognizedasthecostoftheintangibleassets,withgainsorlossesnotrecognized.Forintangibleassetsacquiredfrombusinesscombinationundercommoncontrol,theinitialbookvalueareinitiallyrecognizedatthebookvalueofthecombinee;forintangibleassetsacquiredfrombusinesscombinationnotundercommoncontrol,theinitialbookvalueareinitiallyrecognizedatthefairvalue.Costsofintangibleassetsdevelopedinternallyandindependentlyinclude:thecostsofmaterialsandlaborservicesusedtodeveloptheintangibleassets,theregistrationfee,theamortizationofotherpatentsandfranchiseusedintheprocessofdevelopment,theinterestexpensesmeetingtheconditionforcapitalization,andotherdirectexpensesforpreparingtheintangibleassetsfortheirintendeduse.
(2)SubsequentmeasurementTheusefullivesoftheintangibleassetsareanalyzedanddeterminedontheiracquisition.Forintangibleassetswithdefiniteusefullives,theCompanyshalladoptthestraight-linemethodforamortizationwithintheperiodduringwhichtheycanbringeconomicbenefitstotheCompany;wheretheperiodduringwhichtheycanbringeconomicbenefitstotheCompanycannotbeforecast,thoseintangibleassetsshallbedeemedasassetswithindefinitelivesandnoamortizationwillbemade.
2.Estimatesofusefullivesofintangibleassetswithdefiniteusefullives
ItemEstimatedusefullivesBasisLanduserights50yearsUsetermforthelanduserighttitle
Theusefullifeandamortizationmethodofintangibleassetswithlimitedusefullifearereviewedattheendofeachperiod.Uponreview,theusefullivesandamortizationmethodoftheintangibleassetsasattheendoftheyearwerenotdifferentfromthoseestimatedbefore.
3.Judgmentbasisforintangibleassetswithindefiniteusefullives
Asatthebalancesheetdate,theCompanyhasnointangibleassetswithindefiniteusefullives.
(2)AccountingpolicyofinternalR&Dexpenditures22.Impairmentoflong-termassets
Forthelong-termequityinvestments,investmentproperties,fixedassets,constructioninprogress,intangibleassets,andotherlong-termassetsmeasuredatcostmodel,iftherearesignsofimpairment,animpairmenttestwillbeconductedonthebalancesheetdate.Ifimpairmenttestresultsindicatethattherecoverableamountsoftheassetsarelowerthantheirbookvalue,theprovisionforimpairmentismadebasedonthedifferences,whicharerecognizedasimpairmentlosses.Therecoverableamountsofintangibleassetsarethehigheroftheirfairvalueslesscoststosellandthepresentvaluesofthefuturecashflowsexpectedtobederivedfromtheassets.Theassetsimpairmentprovisioniscalculatedandmadeonanindividualbasis.IfitisdifficultfortheCompanytoestimatetherecoverableamountoftheindividualasset,therecoverableamountofanassetgrouptowhichthesaidassetbelongstowillbedetermined.Assetgroupistheminimumcombinationofassetsthatcanindependentlygeneratecashinflows.Afterthelossesfromassetimpairmentarerecognized,theyarenotreversedinsubsequentperiods.
23.Long-termdeferredexpenses
Long-termdeferredexpensesrefertovariousexpenseswhichhavebeenalreadyincurredbutwillbeborninthereportingperiodandinthefuturewithanamortizationperiodofoveroneyear.
1.Amortizationmethod
Long-termdeferredexpensesareevenlyamortizedoverthebeneficialperiod
2.Amortizationperiod
ItemAmortizationperiodHotelexteriordecoration4yearsFirestairsrenovation4yearsCFLOORROOMRENOVATION5yearsVillarenovation5yearsSwimmingpoolrenovation5years
24.Employeecompensation(1)Accountingmethodforshort-termcompensation
DuringtheaccountingperiodwhenemployeesservetheCompany,theactualshort-termcompensationisrecognizedasliabilitiesandincludedincurrentprofitandlossorcostsassociatedwithassets.TheappropriateamountofemployeecompensationpayablewillbedeterminedduringtheaccountingperiodwhentheemployeesprovideservicesfortheCompanybasedonthemedicalinsurance,workinjuryinsuranceandmaternityinsuranceandothersocialinsuranceandhousingfundpaidbytheCompanyforemployees,aswellastradeunionfundsandemployeeeducationfundswithdrawnaccordingtoprovisionsattheaccrualbasisandaccrualratio.Theemployeebenefitsinthenon-monetaryformshallbemeasuredatfairvalue.
(2)Accountingmethodforpost-employmentbenefits
TheCompanywillpaybasicold-ageinsuranceandunemploymentinsuranceinaccordancewithrelevantprovisionsofthelocalgovernmentforemployees.DuringtheaccountingperiodwhentheyprovideservicesfortheCompany,theamountpayablewillbecalculatedatthebasisandproportionspecifiedbylocalauthorities,recognizedasaliabilityandchargedintocurrentprofitandlossorcostsassociatedwithassets.
(3)Accountingmethodfordismisswelfare
WheretheCompanycannotunilaterallywithdrawthedismissalwelfareofferedinviewofthecancellationofthelaborrelationplanorthelayoffproposal,orrecognizesthecostorexpensesastotherestructuringinvolvingthepaymentofdismissalwelfare(whicheverisearlier),theemployeecompensationarisingfromthedismissalwelfareshouldberecognizedastheliabilitiesandchargedtothecurrentprofitorloss.
(4)Accountingmethodforotherlong-termemployeewelfare25.Estimatedliabilities
WhentheCompanyisinvolvedinlitigation,debtguarantees,loss-makingcontract,reorganizationmatters,ifsuchmattersarelikelytobesatisfiedbydeliveryofassetsorprovisionofservicesinthefutureandtheamountcanbemeasuredreliably,theyshallberecognizedasestimatedliabilities.
1.Recognitioncriteriaforestimatedliabilities
Whenanobligationrelatingtoacontingencymeetsallthefollowingconditionsatthesametime,itisrecognizedasanestimatedliability:
(1)SuchobligationisapresentobligationoftheCompany;
(2)TheperformanceofsuchobligationmaywellcauseoutflowsofeconomicbenefitsfromtheCompany;and(3)Theamountofsuchobligationcanbemeasuredreliably.
2.Measurementmethodofestimatedliabilities
TheestimatedliabilitiesoftheCompanyareinitiallymeasuredasthebestestimateofexpensesrequiredfortheperformanceofrelevantpresentobligations.WhentheCompanydeterminesthebestestimate,itshouldhaveacomprehensiveconsiderationofriskswithrespecttocontingencies,uncertaintiesandthetimevalueofmoney.Ifthetimevalueofmoneyissignificant,thebestestimateswillbedeterminedafterdiscountofrelevantfuturecashoutflows.Thebestestimatesshallbetreatedasfollowsindifferentcircumstances:
Ifthereiscontinuousrange(orinterval)forthenecessaryexpenses,andprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareequal,thebestestimateswillbedeterminedattheaverageamountofupperandlowerlimitswithintherange.Ifthereisnocontinuousrange(orinterval)forthenecessaryexpenses,orprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareunequaldespitesucharangeexists,incasethatthecontingencyinvolvesasingleitem,thebestestimateshallbedeterminedatthemostlikelyoutcome;ifthecontingencyinvolvestwoormoreitems,thebestestimateshouldbedeterminedaccordingtoallthepossibleoutcomeswiththeirrelevantprobabilities.WhenallorpartoftheexpensesnecessaryforthesettlementofestimatedliabilitiesoftheCompanyareexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertaintobereceived.Thecompensationrecognizedshallnotexceedthebookvalueoftheestimatedliabilities.
26.share-basedpayment27.Otherfinancialinstrumentaspreferredstockandperpetualbondetc.28.Revenue
DoestheCompanyneedtocomplywiththedisclosurerequirementofthespecialindustry?Nil
1.Recognitionandmeasurementprinciplesforrevenuesfromsaleofgoods
(1)GeneralrecognitionandmeasurementprinciplesforrevenuefromsalesofgoodsIncomefromsalesofgoodsisrecognizedwhentheCompanyhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods;theCompanyretainsneithercontinuousmanagementrightsassociatedwithownershipofthegoodssoldnoreffectivecontroloverthegoodssold;therelevantamountofincomecanbemeasuredreliably;itishighlylikelythattheeconomicbenefitsassociatedwiththetransactionwillflowintothe
Company;andtherelevantamountofcostincurredortobeincurredcanbemeasuredreliably.(2)RecognitioncriteriaandtimeofrevenuefromsaleofgoodsoftheCompanyIntheprovisionofhotelhousingservicesatthesametime,theCompanyprovidesgoodstocustomersandwillpreparedailysaleslistafterconfirmingwiththeRoomsDepartmentandthehotelfrontdesk.Basedonthesaleslist,thefinancedepartmentconfirmsthatthemajorrisksandrewardsofownershipofthegoodshavebeentransferredtothecustomerandthenthesalesrevenueisrecognized.
2.Recognitionandmeasurementprinciplesofrevenuefromrenderingofservice
(1)Forthehotelrooms,catering(breakfast)andotherservicestobeprovidedbytheCompany,aftertheyareprovided,andtheCompanycheckswiththesalesdepartmentandthefrontcheck,theCompanywillpreparethedailysalesreportsandaccountsreceivablelisttothefinancedepartment,whichwillreviewthesame,afterwhich,therevenuewillberecognized.(2)Fortherevenuefromrestaurantsandvenuescontractedout,theywillberecognizedinaccordancewiththeperiodstipulatedinthecontractoragreementandthecollectiontiming.
3.Recognitionbasisforrevenuefromtransferofrighttouseassets
WhentheeconomicbenefitrelatedtothetransactionisprobablytoflowintotheCompanyandtherelevantrevenuecanbereliablymeasured,therevenuefromtransferoftheassetuserightisdeterminedasfollows:therevenuefromtransferringuserightofassetsshallberecognizedbasedonthefollowingcircumstances:
(1)TheamountofinterestincomeisdeterminedbasedonthetimeandeffectiveinterestrateforotherstousethemonetaryfundsoftheCompany.(2)Theamountofrevenuefromusageisdeterminedbasedonthechargingtimeandmethodasagreedinrelevantcontractoragreement.
29.Governmentsubsidies(1)Judgmentcriteriaandaccountingmethodforgovernmentsubsidiesrelatedtoassets
Setoffthebookvalueofrelatedassetsorberecognizedasdeferredincome.Governmentsubsidiesrelatedtoassetsarerecognizedasdeferredincometobeevenlydistributedovertheusefullivesoftherelevantassetsandshallberecordedincurrentprofitorlossbystagesinareasonableandsystematicmanner.Governmentsubsidiesmeasuredinnominalamounts,aredirectlyincludedincurrentprofitsandlosses.Whererelevantassetsaresold,transferred,scrapedordamagedbeforetheendoftheirlives,balanceoftheunallocateddeferredincomeistransferredtothecurrentprofitandlossonassetdisposal.
(2)Judgmentcriteriaandaccountingmethodforgovernmentsubsidiesrelatedtoincome
1)Tobeusedascompensationforfuturecosts,expensesorlossesarerecognizedasdeferredincomeandare
recordedincurrentprofitsandlossesorusedtowriteofftherelatedcostswheretherelevantcosts,expensesorlossesarerecognized.2)Tobeusedtocompensatetherelatedcosts,expensesorlossesincurredbytheCompanyaredirectlyincludedincurrentprofitandlossorusedtowriteofftherelatedcosts.3)Accountingtreatmentwillbeconductedforgovernmentsubsidiesthatatthesametimeincludethoseassociatedwithassetsandincomebydifferentparts:ifitisdifficulttodistinguish,theywillbedeemedasgovernmentsubsidiesassociatedwithincome.
30.Deferredincometaxassetsanddeferredincometaxliabilities
Deferredincometaxassetsarerecognizedfordeductibletemporarydifferencestotheextentthatitshallnotexceedthetaxableincomeprobablyobtainedinfutureperiodtobeagainstthedeductibletemporarydifference.Taxabletemporarydifferencesarerecognizedasdeferredtaxliabilitiesexceptinspecialcircumstances.Specialcircumstancesinwhichdeferredassetsordeferredtaxliabilitiescannotberecognizedinclude:theinitialrecognitionofgoodwill;othertransactionsormattersexcludingbusinesscombinations,whichaffectneitheraccountingprofitsnorthetaxableincome(ordeductiblelosses)whenoccurred.WhentheCompanyhasthestatutoryrighttodosettlementwiththenetamounts,andhastheintentiontodosoortherecoveryofassetsandthesettlementofliabilitiesareachievedsimultaneously,theCompanyshallpresentitscurrentincometaxassetsandcurrentincometaxliabilitiesatthenetamountsastheresultofoneoffsettinganother.WhentheCompanyhasthelegalrightfornettingofcurrentincometaxassetsandcurrentincometaxliabilitiesandtheincometaxassetsandincometaxliabilitiesarerelatedtotheincometaxleviedonthesametaxpayerbythesametaxadministrativedepartmentorarerelatedtodifferenttaxpayersbut,withineachfutureperiodofreversalofimportantincometaxassetsandincometaxliabilities,thetaxpayersinvolvedintendtosettlecurrentincometaxassetsandcurrentincometaxliabilitiesoracquireassetsandliquidateliabilitiesatthesametime,theCompany'sincometaxassetsandincometaxliabilitiesshallbepresentedatthenetamountaftertheoffset.
31.Lease(1)Accountingtreatmentofoperatinglease1.Accountingtreatmentofassetsleased
TherentalfeespaidfortheassetleasedbytheCompanywillbeamortizedovertheentireleasetermwithoutdeductingrent-freeperiodaccordingtothestraight-linemethodandincludedintheexpensesforthecurrentperiod.TheinitialdirectcostsrelatedtotheleasetransactionspaidbytheCompanyarerecordedinthecurrentexpenses.WhenthelessorbearstheleaserelatedexpenseswhichshallbeundertookbytheCompany,theCompanyshalldeductthispartoftheexpensefromtherentandamortizethenetamountovertheleasetermandchargeintocurrentcostsorexpenses.
2.Accountingtreatmentofleasing-outassets
LeasefeesreceivedbytheCompanyfromleasingassetsshallbeamortizedatstraight-linemethodoverthewholeleaseperiodincludingrent-freeperiod,andshallberecognizedasleaseincome.InitialdirectcostsrelatingtoleasetransactionsincurredbytheCompanyshallberecognizedasthecurrentexpenses;iftheamountsarematerial,theyshallbecapitalizedandincludedinthecurrentincomeonthesamebasisastherecognitionofleaseincome.WhentheCompanybearstheleaserelatedexpenseswhichshouldbeundertookbythelessee,theCompanyshalldeductthispartofexpensefromtherentincome,andamortizethenetamountovertheleaseterm.
(2)Accountingtreatmentoffinancelease32.Otherprincipalaccountingpoliciesandaccountingestimates33.Changestoprincipalaccountingpoliciesandaccountingestimates(1)Changesinprincipalaccountingpolicies
□Applicable√Notapplicable
(2)Changesinprincipalaccountingestimates
□Applicable√Notapplicable
34.Other
VI.Taxation
1.Majortaxtypesandtaxrates
TaxesBasisfortaxassessmentTaxrateValueaddedtax(VAT)
OutputVATiscalculatedbasedontaxablesalesrevenueandservicerevenuecalculatedinaccordancewithtaxlawsandVATpayableortaxablesalesrevenueshallbethedifferenceafterdeductingtheinputVATdeductibleinthesameperiod
5%,6%,11%and17%
Urbanmaintenanceandconstructiontax
LeviedbasedonVATpayable7%EnterpriseincometaxLeviedbasedontaxableincome25%
EducationsurtaxLeviedbasedonVATpayable3%Localeducationalsurcharge
LeviedbasedonVATpayable2%
Housingpropertytax
Remainingvalueafterdeducting30%fromtheoriginalvalueofthehouse(includingtheoccupiedlandprice)andrentalincome
1.2%,12%LandusetaxLandarea
Disclosereasonsfordifferenttaxpayingbody:Nil
2.Taxpreference3.Other
VII.Notestotheitemsoffinancialstatements
1.MonetaryFund
InRMB/CNYItemEndingbalanceBeginningbalanceCashonhand383,507.23264,156.33Bankdeposits3,368,151.419,417,450.83Othermonetaryfunds7,000,000.00Total10,751,658.649,681,607.16Otherexplanation
2.Financialasstsmeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/losses:Nil3.Derivativefinancialassets
□Applicable√Notapplicable
4.Notereceivable:Nil5.Accountsreceivable(1)Disclosureofaccountreceivablesbycategory
InRMB/CNYCategory
EndingbalanceBeginningbalanceBookbalanceProvisionforbaddebt
Bookvalue
BookbalanceProvisionforbaddebt
Bookvalue
Amount
Proportio
n
Amount
Provisio
nratio
Amount
Proportio
n
Amount
Provision
ratioAccountsreceivablewith
334,756.76100.00%68,520.2520.47%266,236.51662,651.14100.00%68,520.2510.34%594,130.89
provisionforbaddebtsbasedonportfolios
Total334,756.76100.00%68,520.2520.47%266,236.51662,651.14
1,000.00
%
68,520.2510.34%594,130.89Accountreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatperiod-end:
□Applicable√NotapplicableIntheportfolio,accountsreceivablewiththeallowanceforbaddebtsmadeundertheaginganalysismethod:
√Applicable□Notapplicable
InRMB/CNYAging
EndingbalanceAccountsreceivableProvisionforbaddebtProvisionproportionWithin1yearSubtotalwithin1year244,368.961-2years
785.0039.255.00%2-3years
18,633.002,794.9515.00%3-4years
3,397.00849.2525.00%4-5years
5,472.002,736.0050.00%Over5years
62,100.8062,100.80100.00%Total334,756.7668,520.2520.47%Explanationoncombinationdetermines:
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforaccountreceivable□Applicable√NotapplicableIncombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforaccountreceivable:
(2)Provision,reversalorrecoveryofprovisionforbaddebtsin2018:Nil(3)Accountsreceivableactuallywrittenoffin2018:Nil(4)Topfiveaccountsreceivableintermsofendingbalancecollectedbythedebtor
Nameofentity
Relationshipwiththe
Company
BookbalanceAging
Proportionintotalamountof
accountsreceivable(%)ShanghaiHechengInternationalTravelServiceCo.,Ltd.
Non-relatedparty
96,490.00
Within1year
28.82%LuoniushanCo.,Ltd.Non-consolidated
65,420.00
Within1year
19.54%
relatedpartyGuangzhouInstituteofDesignNon-relatedparty
38,980.00
Over5years
11.64%BeijingTongchengHuadingInternationalTravelAgencyCo.,Ltd.
Non-relatedparty
35,479.00
Within1year
10.60%TianjinWatermelonTourismLimited
LiabilityCompany
Non-relatedparty
33,104.96
Within1year
9.89%Total
269,473.9680.50%
(5)Accountreceivablederecognitionduetofinancialassetstransfer(6)Assetsandliabilitiesresultedbyaccountreceivabletransferandcontinuesinvolvement
Othernote:Nil
6.Advancestosuppliers(1)Advancestosupplierspresentedbyaging
InRMB/CNYAging
EndingbalanceBeginningbalanceAmountProportionAmountProportionWithin1year43,206.84100.00%49,530.21100.00%Total43,206.84--49,530.21--Explanationonreasonsoffailuretosettleonimportantadvancepaymentwithageoveroneyear:Nil
(2)Topfiveadvancestosuppliersintermsoftheendingbalancecollectedbytheprepaidobject
PrepaidobjectEndingbalanceProportionintotalendingbalance
ofadvancetosuppliers(%)SunshinePropertyInsuranceCo.,Ltd.Hainan
Branch
18,322.7342.41SinopecPetrochemicalSalesCo.,Ltd.Hainan
SanyaBranch
12,103.5028.01ChinaPostGroupCorporationSanyaBranch5,400.0012.50SanyaDaily
4,864.8711.26HangzhouXiruanTechnologyCo.,Ltd.
2,515.745.82Total
43,206.84100.00
7.Interestreceivable:Nil8.Dividendreceivable:Nil9.Otherreceivables(1)Otherreceivablesdisclosedbycategory
InRMB/CNY
Category
EndingbalanceBeginningbalanceBookbalance
Provisionforbad
debt
Bookvalue
Bookbalance
Provisionforbad
debt
BookvalueAmount
Proport
ion
Amoun
t
Provisi
onproport
ion
Amo
unt
Proport
ion
Amount
Provisionproportio
nOther
receivableswithprovisionforbaddebtsbasedonportfolio
821,284.34
100.00
%
21,147.
2.57%
800,13
6.44
160,709.19
100.00
%
21,147.
13.16%
139,561.
Total821,284.34
100.00
%
21,147.
2.57%
800,13
6.44
160,709.19
100.00
%
21,147.
13.16%
139,561.
Otherreceivableswithinsignificantsingleamountbutwithindividualprovisionforbaddebtsatperiod-end□Applicable√NotapplicableOtherreceivableswithprovisionforbaddebtsmadebyaginganalysismethodinportfolios:
√Applicable□Notapplicable
InRMB/CNYAging
EndingbalanceOtherreceivablesProvisionforbaddebtProvisionproportionWithin1yearSubtotalwithin1year799,686.443-4years600.00150.0025.00%Over5years20,997.9020,997.90100.00%Total821,284.3421,147.90Explanationsoncombinationdetermine:
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforotheraccountreceivable:
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforotheraccountreceivable:
□Applicable√Notapplicable
(2)Provision,reversalorrecoveryofprovisionforbaddebtsin2018:Nil(3)Otherreceivablesactuallywrittenoffin2018:Nil(4)Classificationofotherreceivablesbythenatureofpayment
InRMB/CNYNatureofPaymentBookbalanceasatJune30,2018BookbalanceasatJanuary1,2018Deposit
600.00600.00Pettycash
20,000.0049,281.48Waterandelectricityexpenses
197,820.6370,809.03Socialinsuranceandhousingprovident
funds
28,120.0440,018.68Staffborrowings288,543.31SunHongjie286,200.36Total821,284.34160,709.19
(5)Top5otherreceivablesatendingbalancebyarrearsparty
NameNatureEndingbalanceAge
Proportionintotalother
receivables
Endingbalanceofbaddebtprovision
SunHongjieAdvancepayment286,200.36
Within1year
34.85%WenPingAdvancepayment185,292.04
Within1year
22.56%HainanHangpai
CateringCo.,Ltd.
Waterandelectricityfee
110,620.65
Within1year
13.47%YangYunhui
Staffborrowingsreadyforsettlement
65,525.00
Within1year7.98%
PengGuoxing
Waterandelectricityfee
54,649.64
Within1year
6.65%Total--702,287.69--85.51%
(6)Accountreceivablesrelatedtogovernmentsubsidies:Nil(7)Otherreceivableforterminationofconfirmationduetothetransferoffinancialassets:Nil(8)Theamountofassetsandliabilitiesthataretransferredotherreceivableandcontinuedtobeinvolved:
Nil10.Inventories(1)Classificationofinventory
InRMB/CNYItem
EndingbalanceBeginningbalanceBookbalance
Provisionforpricedecline
BookvalueBookbalance
Provisionforpricedecline
BookvalueStocked
materials
925,333.68735,181.58190,152.10880,621.58735,181.58145,440.00Stock
commodities
22,771.3811,102.4111,668.9722,771.3811,102.4111,668.97Foodand
beverage
38,544.2238,544.2245,640.7445,640.74Fuel
24,255.4024,255.4024,255.4024,255.40Total
1,010,904.68746,283.99264,620.69973,289.10746,283.99227,005.11DoestheCompanycomplywiththedisclosurerequirementof“InformationDisclosureGuidelinesofShenzhenStockExchangeNo.4–ListedCompaniesEngagedinSeedIndustryandPlantingBusiness”ornotNo
(2)Provisionforinventorydepreciation
InRMB/CNYCategoryof
inventories
Beginning
balance
IncreaseintheperiodDecreaseinperiod
EndingbalanceProvisionOthers
Reversalor
write-off
OthersRawmaterials735,181.58735,181.58Stockcommodities
11,102.4111,102.41Total746,283.99746,283.99
(3)Explanationoncapitalizationofborrowingcostsatendingbalanceofinventory:Nil(4)Assetscompletedwithoutunsettlementfromconstructioncontractatperiod-end:Nil11.Assetsheldforsale:Nil12.Non-currentassetsmaturingwithinoneyear
InRMB/CNYItemEndingbalanceBeginningbalanceLong-termunamortizedexpensesamortizedwithinoneyear716,972.511,173,597.68Total716,972.511,173,597.68Otherexplanation:Nil
13.Othercurrentassets
InRMB/CNYItemEndingbalanceBeginningbalancePrepaidenterpriseincometax
1,702,702.801,702,702.80Inputtaxtobededucted
492,996.74255,160.76Total
2,195,699.541,957,863.56Otherexplanation:Nil
14.Available-for-sale-financialassets:Nil15.Investmentheld-to-maturity:Nil16.Long-termreceivables:Nil17.Long-termequityinvestment
InRMB/CNY
Investee
Beginningbalan
ce
Changes(+,-)
Endingbalance
Endingbalance
ofimpairmentprovisi
on
Addition
alinvestme
nt
Negati
veinvestment
Gain/lo
ssofinvestm
entrecognizedbyEquity
Othercomprehensiveincomeadjustm
ent
Otherequitychanges
Cashdividen
dorprofitdistribu
ted
Accrual
ofimpairmentprovisi
on
Other
I.Jointventure
HainanWengaoTourismResourcesDevelopmentCo.,Ltd.
1,000,00
0.00
1,000,0
00.00
Subtotal
1,000,00
0.00
1,000,0
00.00II.Affiliatedcompanies
Total
1,000,00
0.00
1,000,0
00.00Othernote
18.Investmentproperty(1)Investmentpropertiesmeasuredatcost
√Applicable□Notapplicable
InRMB/CNYItem
Buildingsandconstructions
Landuserights
Constructionin
process
Total1.Originalbookvalue
1.Beginningbalance18,856,504.445,662,740.5924,519,245.032.Increaseintheperiod
(1)Purchase(2)Transferfrominventories/fixedassets/constructioninprocess
(3)Increasefrombusinesscombinations
3.Decreaseintheperiod
(1)Disposal(2)Othertransfer-out
4.Endingbalance18,856,504.445,662,740.5924,519,245.03II.Accumulateddepreciationandaccumulatedamortization
1.Beginningbalance10,189,399.982,163,386.4512,352,786.432.Increaseinthe
period
209,091.7828,170.00237,261.78(1)Provisionor
amortization
209,091.7828,170.00237,261.783.Decreaseinthe
period
(1)Disposal(2)Othertransfer-out
4.Endingbalance10,398,491.762,191,556.4512,590,048.21III.Provisionforimpairment
1.Beginningbalance1,404,400.471,903,054.143,307,454.612.Increaseintheperiod
(1)Provision3.Decreaseinthe
period
(1)Disposal(2)Othertransfer-out
4.Endingbalance1,404,400.471,903,054.143,307,454.61IV.Bookvalue
1.Closingbookvalue7,053,612.211,568,130.008,621,742.212.Openingbookvalue
7,262,703.991,596,300.008,859,003.99
(2)Investmentrealestatemeasuredbyfairvalue
□Applicable√Notapplicable
(3)Investmentrealestatewithoutpropertycertificationheld:Nil19.Fixedassets
(1)Fixedassetsdetails
InRMB/CNYItem
Housesand
buildings
Mechanicalequipment
Transportation
equipment
Electronicequipment
OtherequipmentTotalI.Originalbookvalue:
1.Beginningbalance136,789,501.8213,279,932.542,345,074.912,623,443.452,059,888.17157,097,840.892.Increaseintheperiod
3,200.00274,545.79111,006.47388,752.26(1)Purchase3,200.00274,545.79111,006.47388,752.26
(2)Transferfromconstructioninprocess
(3)Increasefrombusinesscombinations
3.Decreaseintheperiod
12,800.0012,800.00(1)Disposalorscrap12,800.0012,800.00
4.Endingbalance136,789,501.8213,283,132.542,345,074.912,885,189.242,170,894.64157,473,793.15II.Accumulateddepreciation
1.Beginningbalance70,320,351.579,371,050.711,415,798.922,012,775.791,288,515.6484,408,492.632.Increaseintheperiod
1,066,369.14144,249.4585,613.4681,819.1781,732.501,459,783.72(1)Provision1,066,369.14144,249.4585,613.4681,819.1781,732.501,459,783.72
3.Decreaseintheperiod
12,322.0212,322.02(1)Disposalor
scrap
12,322.0212,322.02
4.Endingbalance71,386,720.719,515,300.161,501,412.382,082,272.941,370,248.1485,855,954.33III.Provisionforimpairment
1.Beginningbalance31,072,788.172,527,851.2633,600,639.432.Increaseintheperiod
(1)Provision3.Decreaseinthe
period
(1)Disposalorscrap
4.Endingbalance31,072,788.172,527,851.2633,600,639.43IV.Bookvalue
1.Endingbookvalue34,329,992.941,239,981.12843,662.53802,916.30800,646.5038,017,199.392.Openingbookvalue
35,396,362.081,381,030.57929,275.99610,667.66771,372.5339,088,708.83
(2)Temporarilyidlefixedassets:Nil(3)Fixedassetsacquiredbyfinancinglease:Nil(4)Fixedassetsacquiredbyoperatinglease:Nil(5)Certificateoftitleun-completed:Nil20.Constructioninprogress:Nil21.Engineeringmaterial:Nil22.Disposaloffixedassets:Nil23.Productivebiologicalasset(1)Measuredbycost
□Applicable√Notapplicable
(2)Measuredbyfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Intangibleassets(1)Intangibleassets
InRMB/CNYItemLanduserightsPatentright
Non-patentstechnology
TotalI.Originalbookvalue
1.Beginningbalance81,653,137.1581,653,137.152.Increaseintheperiod
(1)Purchase(2)Internalresearchanddevelopment
(3)Increasefrombusinesscombinations
3.Decreaseintheperiod
(1)Disposal4.Endingbalance81,653,137.1581,653,137.15
II.Accumulatedamortization
1.Beginningbalance31,194,664.1131,194,664.112.Increaseintheperiod
406,193.58406,193.58(1)Provision406,193.58406,193.58
3.Decreaseintheperiod
(1)Disposal4.Endingbalance31,600,857.6931,600,857.69
III.Provisionforimpairment
1.Beginningbalance27,440,836.8427,440,836.842.Increaseintheperiod
(1)Provision3.Decreaseinthe
period
(1)Disposal4.Endingbalance27,440,836.8427,440,836.84
IV.Bookvalue
1.Endingbookvalue22,611,442.6222,611,442.622.Openingbookvalue23,017,636.2023,017,636.20RatiooftheintangibleassetsfrominternalR&Dinbalanceofintangibleassetsatperiod-endwas.
(2)Landuserightswithoutcertificateofownership:Nil26.Developmentexpenditure:Nil27.Goodwill:Nil28.Long-termdeferredexpenses
InRMB/CNYItemBeginningbalance
Increaseinthe
period
Amortizationin
theperiod
OtherdecreasedEndingbalanceHotelexterior
decoration
486,974.55486,974.55Firestairs
renovation
45,695.1645,695.16Swimmingpool
renovation
224,969.28224,969.28CFLOORROOM721,297.31721,297.31
RENOVATIONVillarenovation1,199,080.581,199,080.58Total2,678,016.882,678,016.88Otherexplanation:Nil
29.Deferredincometaxassetsanddeferredincometaxliabilities:Nil30.Othernon-currentassets:Nil31.Short-termloans:Nil32.Financialliabilitymeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/losses:Nil33.Derivativefinancialliability
□Applicable√Notapplicable
34.Notespayable:Nil35.Accountspayable(1)Presentationofaccountspayablebyaging
InRMB/CNYItemEndingbalanceBeginningbalanceInventorytemporarywarehousing700,275.98738,044.28SanyaYunwangFoodDistributionCo.,Ltd.
449,301.47743,186.25HainanHuanyuDecorationDesign
EngineeringCo.,Ltd.
134,274.10134,274.10SanyaZhengzhuangIndustrialCo.,Ltd.111,340.86115,247.50
SanyaSinoFrenchWater56,002.6347,698.36Other66,274.13248,420.63Over3years134,301.14134,301.14Total1,651,770.312,161,172.26
(2)Majorpayableswithoveroneyearaccountage
InRMB/CNY
36.Advancesfromcustomers(1)Presentationofadvancesfromcustomers
InRMB/CNYItemEndingbalanceBeginningbalanceRoomandmealcharge1,057,513.071,271,174.12Total1,057,513.071,271,174.12
(2)Significantadvancesfromcustomerswithagingmorethanoneyear
InRMB/CNYItemEndingbalance
Reasonsforfailureofrepaymentorcarry-forward
GuangzhouNanbuHolidayInternationalTravelServiceCo.,Ltd.SanyaBranch
101,244.00UnsettledPEGASZHENGQINGBO32,243.02Unsettled
HainanQiongzhongEcologicalInvestmentGuaranteeCo.,Ltd.27,519.00UnsettledSanyaPublicSecurityFireBrigade19,420.88UnsettledTianhongGroupWuzhizhouProjectDepartment9,894.00UnsettledTotal190,320.90--
(3)Projectssettlementwithoutunfinishedatperiod-endfromconstructioncontract:Nil37.Employeecompensationpayable(1)Classificationofemployeecompensationpayable
InRMB/CNYItem
Beginning
balance
IncreaseintheperiodDecreaseintheperiodEndingbalanceI.Short-termcompensation2,459,015.936,463,131.416,937,683.991,984,463.35
II.Post-employmentbenefits-definedcontributionplans
499,680.13499,680.13Total2,459,015.936,962,811.547,437,364.121,984,463.35
(2)Short-termcompensation
InRMB/CNY
Item
Beginning
balance
IncreaseintheperiodDecreaseintheperiodEndingbalance1.Salary,bonus,allowanceand
subsidies
1,479,102.465,272,790.735,774,948.39976,944.802.Employeewelfare
714,640.46714,640.463.Socialinsurancepremiums
224,827.47224,827.47Including:Medicalinsurance
premiums
204,995.27204,995.27Work-relatedinjuryinsurance
premiums
7,021.137,021.13Maternityinsurancepremiums
12,811.0712,811.074.Housingprovidentfunds
78,478.0065,620.0012,858.005.Laborunionfundsand
employeeeducationfunds
979,913.47172,394.75157,647.67994,660.55Total2,459,015.936,463,131.416,937,683.991,984,463.35
(3)Presentationofdefinedcontributionplan
InRMB/CNYItemBeginningbalanceIncreaseintheperiodDecreaseinperiodEndingbalance1.Basicendowmentpremiums
486,869.06486,869.062.Unemployment
insurancepremium
12,811.0712,811.07Total499,680.13499,680.13
Otherexplanation:Nil
38.Taxespayable
InRMB/CNYItemEndingbalanceBeginningbalanceValueaddedtax(VAT)147,972.15222,989.34Individualincometax-0.01Urbanmaintenanceandconstructiontax839.277,782.70Educationsurtax359.683,335.43Localeducationalsurcharge239.802,223.64Securityfordisabledperson19,245.72Landusetax108,590.91108,590.91Housingpropertytax194,101.74194,101.74
Total471,349.26539,023.76Otherexplanation:nil
39.Interestpayable:Nil40.Dividendpayable:Nil41.Otherpayables(1)Presentationofotherpayablesbynature
InRMB/CNYItemEndingbalanceBeginningbalanceSecuritydeposit
868,000.00711,046.99Staffdormitoryrentalfees,etc.528,000.00521,534.64Auditfees
285,003.21285,003.21Qualityguaranteedepositforprojects
123,029.67193,066.10Employeedeposits
86,520.00166,200.90Projectfunds
331,111.03162,569.78Fundscollectedandremitted
68,346.68100,036.07Pettycash
28,446.80Electricchargeswithheld
20,472.0020,700.00Individualcurrentamounts
1,364.00Announcementchargewithholding441,208.10221,208.10Other142,880.87Total2,894,571.562,411,176.59
(2)Othersignificantpayableswithagingofoveroneyear
InRMB/CNYItemEndingbalanceReasonfornon-repaymentorcarry-overHongKongDeloitte&ToucheLLP285,003.21Reasonfornon-repaymentSanyaShuxinHousingWaterproofEngineeringLimited170,000.00Reasonfornon-repaymentChinaBuildingDecorationCompanyHainanBranch161,111.03Reasonfornon-repaymentTotal616,114.24--Otherexplanation:Nil
42.Liabilityheldforsale:Nil43.Non-currentliabilityduewithinoneyear:Nil44.Othercurrentliability:Nil45.Long-termloans:Nil46.Bondpayable:Nil47.Long-termaccountpayable48.Long-termemployeepayable:nil49.Specialpayable:nil50.Estimatedliabilities
InRMBItemEndingbalanceBeginningbalanceReasonsOther1,489,685.041,489,685.04ProvisionsforarrearsofelectricitytariffsTotal1,489,685.041,489,685.04--Otherexplanation,includingimportantassumptionsandestimationforthemajoraccrualliability:
OnMay26,2016,theCompanyreceivedlawyer’sletterofHainanYunfanlawfirmwhichisentrustedbyHainanPowerGridCo.,LTDSanyaPowerSupplyBureau(hereinafterreferredtoasthe"SanyaPowerSupplyBureau"),theletterclaimsthatSanyaPowerSupplyBureaufoundthattheCompany’ssubsidiarySouthChinaGrandHotelofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd’stheamountofCTisdifferentwithitsmarketingmanagementsystemrecord.TheinconformitytimeisJuly,2006,andthehotel’sCTischangingonApril,2016.Therefore,undercountedelectricityconsumptionamountis10,313,373.00kilowatt-hours,and
estimatedcostis7,200,165.75Yuanasvariouselectricitypricesandcharges.
Accordingtothefile“LawAdvisoryOpinionaboutRetroactivePower(Charge)DisputebetweenSouthChinaGrandHoteland
SanyaPowerSupplyBureau”issuedbyBeijingJunhe(Haikou)LawFirmatDecember20,2016,whichclaimsthatSanyaPower
SupplyBureauhasresponsibilityforCTtopurchase,install,enseal,unsealandchange,therefore,theresponsibilityoftheguiltypartyforundercountedelectricityconsumptionofSouthChinaGrandHotelisSanyaPowerSupplyBureau.Accordingtotheone
hundredandthirty-fiveitemof“GeneralRuleofCivilLaw”,thisitemclaimsthatlimitationofactionistwoyearsifaccuserrequestpeople'scourt’sprotection,exceptsituationsprovidedbylaw.TheCompanyhaswithheldtheundercountedelectricityconsumption
costin2016whichisabout1,489,685.04YuanduringtheperiodfromApril,2014toApril,2016.
51.Deferredincome:nil52.Othernon-currentliability:nil53.Sharecapital
InRMBBeginning
balance
Changes("+"forincreaseand"-"fordecrease)
EndingbalanceIssuanceofnewshares
Sharedonation
Publicreservetransferredto
shares
Others
Sub-tota
lTotal
shares
364,100,000.00364,100,000.00Otherexplanation:nil
54.Otherequityinstrument:nil55.Capitalreserves
InRMBItemBeginningbalanceIncreasein2017Decreasein2017EndingbalanceCapitalpremium(share
premium)
33,336,215.5833,336,215.58Othercapitalreserves
20,806,634.4320,806,634.43Total54,142,850.0154,142,850.01Otherexplanation,includingchangesintheperiodandreasons:nil
56.Treasurystock:nil57.Otherconsolidatedincome:nil58.Reasonablereserve:nil59.Surplusreserves:nil60.Undistributedprofits
InRMBItemCurrentperiodLastperiodUndistributedprofitsattheendoflastyearbeforeadjustment-341,107,435.91-343,966,434.57Undistributedprofitsatthebeginningoftheyearafteradjustment-341,107,435.91-343,966,434.57Plus:netprofitattributabletoownersoftheparentcompanyincurrentperiod1,282,165.581,719,253.80
Undistributedprofitasattheendoftheyear-339,825,270.33-342,247,180.77Detailsaboutadjustingtheretainedprofitsatthebeginningoftheperiod:
1)TheretroactiveadjustmentstoAccountingStandardsforBusinessEnterprisesanditsrelevantnewregulationsaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan.2)Thechangesinaccountingpoliciesaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan.3)Themajoraccountingerrorcorrectionaffectstheretainedprofitsatthebeginningoftheperiodamountingto0Yuan4)Mergescopechangescausedbythesamecontrolaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan.5)Otheradjustmentsaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan
61.Operatingincomeandoperatingcosts
InRMBItem
CurrentperiodLastperiodIncomeCostIncomeCostMainbusiness14,615,148.375,762,801.5813,518,444.895,018,862.48Otherbusiness1,558,780.95237,261.781,577,828.53237,250.03Total16,173,929.326,000,063.3615,096,273.425,256,112.51
62.Taxesandsurcharges
InRMBItemCurrentperiodLastperiodUrbanmaintenanceandconstructiontax37,515.6552,296.64Educationalsurtax26,796.8937,289.14Propertytax431,174.78441,630.64Landusetax217,181.82217,184.65Vehicleandvesselusetax3,669.064,980.00Stamptax182.70863.20Total716,520.90754,244.27Otherexplanation:nil
63.Salesexpenses
InRMBItemCurrentperiodLastperiod
Staffwagesandbenefits
1,841,236.401,532,804.73Socialworkersinsuranceexpenses
285,734.45224,176.69Depreciation
256,486.12245,942.02
Waterandelectricityfees
84,101.3683,061.58Repaircharges
58,716.1865,649.32Otherexpenses
274,681.59306,510.59Total2,800,956.102,458,144.93Otherexplanation:nil
64.Administrativeexpenses
InRMBItemCurrentperiodLastperiodSalariesandwelfares2,809,454.642,630,309.99Socialinsurancepremium266,303.18325,482.11Entertainmentexpenses496,075.07402,028.00Travellingexpenses68,678.8297,189.95Amortizationforthedepreciationandlanduseright550,590.01552,843.49Announcementfeeandagencycharge656,245.72640,800.00Other509,107.77440,797.03Total5,356,455.215,089,450.57Otherexplanation:nil
65.Financialexpenses
InRMBItemCurrentperiodLastperiodHandlingcharges40,293.0624,107.51Less:interestincome-22,729.87-204,780.17Total17,563.19-180,672.66Otherexplanation:nil
66.Lossesonassetsimpairment:nil67.Gainsfromfairvaluechanges:nil68.Investmentincome:nil69.Incomefromassetsdisposal:nil70.Otherincome:nil71.Non-operatingincome
InRMBItemCurrentperiodLastperiod
Amountincludedinnon-recurringprofitandloss
inthecurrentperiodOther273.00260.00273.00Total273.00260.00273.00Governmentsubsidiesreckonedintocurrentgains/losses:nil
72.Non-operatingexpenses
InRMBItemCurrentperiodLastperiod
Amountincludedinnon-recurringprofitandlossinthecurrentperiod
Lossofnon-currentassetsdisposal477.98-477.98Total477.98-477.98Otherexplanation:nil
73.Incometaxexpenses:nil74.Othercomprehensiveincome
SeeNote
75.Notestoitemsofthecashflowstatement(1)Cashreceivedfromotheroperatingactivities
InRMBItemCurrentperiodLastperiodInterestincome22,729.87204,780.17
Other661,422.77472,635.21Total684,152.64677,415.38Explanation:nil
(2)Cashpaidforotheroperatingactivities
InRMBItemCurrentperiodLastperiodSocialintercoursefees497,075.07402,028.00Intermediaryauditcharges400,000.00400,000.00Announcingfees
220,000.0060,000.00Travellingexpenses
72,159.01109,715.87Promotionfee26,619.1821,162.60Repaircharges98,889.97100,191.70Membershipexpensesofdirectorsandsupervisors354,000.00Other359,828.93690,202.00Total1,674,572.162,137,300.17Explanation:nil
(3)Cashreceivedfromotherinvestmentactivities:nil(4)Cashpaidforotherinvestingactivities
InRMBItemCurrentperiodLastperiodWuhanAiEjiaCo.,Ltd9,000,000.00Total9,000,000.00Explanation:nil
(5)Cashreceivedfromotherfinancingactivities
InRMBItemCurrentperiodLastperiodLuoniushanGroupCo.,Ltd.19,810,000.00Total19,810,000.00Explanation:nil
(6)Cashpaidforotherfinancingactivities
InRMBItemCurrentperiodLastperiodLuoniushanGroupCo.,Ltd.10,000,000.00CSRC19,810,000.00Total29,810,000.00Explanation:nil
76.Supplementaryinformationtostatementofcashflows(1)Supplementaryinformationtostatementofcashflows
InRMBItemCurrentperiodLastperiod1.Netprofitadjustedtocashflowsfromoperatingactivities
----Netprofits
1,282,165.581,719,253.80Depreciationoffixedassets,depreciationanddepletionof
oilandgasassetsanddepreciationofproductivebiologicalassets
1,799,584.501,591,987.78Amortizationofintangibleassets
434,363.58434,363.58Amortizationoflong-termfeestoapportioned609,770.58292,184.70Lossfromfixedassetsscrapping("-"forgains)477.98Decreasesininventories("-"forincreases)-37,615.58-34,035.33Decreasesinoperatingreceivables("-"forincreases)-326,357.40159,732.97Increasesinoperatingpayables("-"fordecreases)-651,711.64-932,414.40Netcashflowsfromoperatingactivities3,110,677.603,231,073.102.Significantinvestingandfinancingactivitiesnotinvolvingcashreceiptsandpayments
----3.Netchangesincashandcashequivalents----
Balanceofcashattheendoftheperiod10,751,658.6410,108,175.91Less:balanceofcashatthebeginningoftheperiod9,681,607.1627,210,248.01Netincreaseincashandcashequivalents1,070,051.48-17,102,072.10
(2)Netcashpaymentfortheacquisitionofasubsidiaryofthecurrentperiod:nil(3)Netcashreceivedfromthedisposalofsubsidiaries:nil(4)Breakdownofcashandcashequivalents
InRMBItemEndingbalanceBeginningbalanceI.Cash10,751,658.649,681,607.16Including:cashonhand383,507.23264,156.33
Unrestrictedbankdeposits10,368,151.419,417,450.83III.Endingbalanceofcashandcashequivalents10,751,658.649,681,607.16Otherexplanation:nil
77.Notesforthestatementofownersequitychanges
Explaintheitemsandadjustedamountedwhichhaveadjustedin“Other”oflastyear’sendingbalance:nil
78.Assetswithownershiporuserightrestricted:nil79.Itemofforeigncurrency(1)Itemofforeigncurrency:nil(2)Explanationonforeignoperationalentity,includingasforthemajorforeignoperationalentity,
disclosedmainoperationplace,book-keepingcurrencyandbasisforselection;ifthebook-keepingcurrencychanged,explainreasons
□Applicable√Notapplicable
80.Hedging
Releasedtheitemsandrelevantinstrumentsbytypes,andqualitativeandquantitativeinformationforhedgerisks:nil
81.Other
VIII.Changesofconsolidationrange
1.Enterpriseconsolidationnotunderthesamecontrol:nil2.Enterpriseconsolidationunderthesamecontrol:nil3.Counterpurchase
Basicinformationoftransactions,basisoftransactionsconstitutingcounterpurchase,whetherassetsandliabilitiesreservedbylistedcompaniesconstitutingbusinessandtheirbasis,confirmationofcombinedcost,theamountoccurredwhenadjustingrightsandinterestsinaccordancewithequitytransactionanditscalculation:Nil
4.Disposalofsubsidiaries
Losingcontrollingrightswhiledisposesubsidiaryonone-time□Yes√NoDisposesubsidiarystepbystepthroughmulti-dealingsandlosingcontrollingrightsinthePeriod□Yes√No
5.Changesofcombinationscope
Otherreasonscontributedthechangesforcombinationscope(e.g.newsubsidiaryestablished,liquidatesubsidiaryetc.):nilAtendoftheperiod,wholly-ownedsubsidiaryHainanWengaoTourismResourcesDevelopmentCo.,Ltd.includedincombinationscope
6.Other
IX.Equityinotherentity
1.Equityinthesubsidiary:nil2.Changesintheowner'sequityshareofthesubsidiaryandthetransactionisstillcontrolledsubsidiary:
nil3.Equityinarrangementofjointventureorassociatedenterprises:nil4.Importantcommonmanagement:nil5.Equityinstructuredentitiesnotincludedintheconsolidatedfinancialstatements
Relevantexamination:nilHainanWengaoTourismResourcesDevelopmentCo.,Ltd.isawholly-ownedsubsidiaryinvestedandestablishedbythecompanyin
June2018.Ithasjustcompletedtheregistrationproceduresandhasnotyetstartedoperation.Duringthereportingperiod,nosignificantexpensesandexpendituresincurred,itsfinancialstatusandoperatingresultsdidnothaveasignificantimpactonthecompany,HainanWengaoTourismResourcesDevelopmentCo.,Ltd.wasnotincludedintheconsolidatedfinancialstatementsofthecompanyduringthereportingperiod
6.Other
X.RisksrelatedtofinancialinstrumentsXI.Fairvaluedisclosures:nil
XII.Relatedpartiesandrelated-partytransactions
1.Parentcompany
Parentcompany
Registered
place
NatureofBusiness
RegisteredCapital
Shareholdingratio
intheCompany
Votingratiointhe
CompanyLuoniushanCo.,Ltd.HaikouCityPlantandculturing
1151.15millionYuan
17.55%19.80%Note
Asof30June2018,LuoniushanCo.,Ltd.(hereinafterreferredtoasLuoniushan)anditswholly-ownedsubsidiaryHainanYa’anjuPropertyServiceCo.,Ltd.holds72,091,780sharesoftheCompanyunderA-stock,totallytakes19.80%intotalsharecapitaloftheCompany,anditisthefirstlargestshareholderoftheCompany.Ultimatecontrollingparty:
Othernote:nil
2.SubsidiaryoftheEnterprise
FoundmoreinNotes
3.Cooperativeenterpriseandjointventure
FoundmoreinNotesOthercooperativeenterpriseorjointventureswhichhasrelatedtransactionwiththeCompanyintheperiodoroccurredprevious:Nil
4.Otherrelatedparty:nil5.Relatedtransaction:nil6.Receivable/payableitemsofrelatedparties(1)Receivable
InRMBItemRelatedparty
EndingbalanceBeginningbalanceBookbalance
Provisionforbad
debt
Bookbalance
Provisionforbad
debtAccountreceivable
LuoniushanCo.,Ltd.65,420.00166,412.00
(2)Payableitem:nil7.Commitmentsofrelatedparty8.Other
XIII.Share-basedpayment
1.Share-basedpayment
□Applicable√Notapplicable
2.Settledbyequity
□Applicable√Notapplicable
3.Settledbycash
□Applicable√Notapplicable
4.Modificationandterminationofshare-basepayment5.Other
XIV.Commitmentsandcontingencies
1.Materialcommitments
Majorcommitmentsonbalancesheetdate
Nil
2.Contingencies(1)Majorcontingenciesonbalancesheetdate
OnMay26,2016theCompanyreceivedlawyer’sletterofHainanYunfanlawfirmwhichisentrustedbyHainanPowerGridCo.,LTDSanyaPowerSupplyBureau(hereinafterreferredtoasthe"SanyaPowerSupplyBureau"),theletterclaimsthatSanyaPowerSupplyBureaufoundthattheCompany’ssubsidiarySouthChinaGrandHotel
ofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd’stheamountofCTisdifferentwithitsmarketingmanagementsystemrecord.TheinconformitytimeisJuly,2006,andthehotel’sCTischangingonApril,2016.Therefore,undercountedelectricityconsumptionamountis10,313,373.00kilowatt-hours,andestimatedcostis
7,200,165.75Yuanasvariouselectricitypricesandcharges.
Accordingtothefile“LawAdvisoryOpinionaboutRetroactivePower(Charge)DisputebetweenSouthChina
GrandHotelandSanyaPowerSupplyBureau”issuedbyBeijingJunhe(Haikou)LawFirmonDecember20,
2016,whichclaimsthatSanyaPowerSupplyBureauhasresponsibilityforCTtopurchase,install,enseal,unseal
andchange,therefore,theresponsibilityoftheguiltypartyforundercountedelectricityconsumptionofSouth
ChinaGrandHotelisSanyaPowerSupplyBureau.Accordingtotheonehundredandthirty-fiveitemof“General
RuleofCivilLaw”,thisitemclaimsthatlimitationofactionistwoyearsifaccuserrequestpeople'scourt’sprotection,exceptsituationsprovidedbylaw.TheCompanyhaswithheldtheundercountedelectricity
consumptioncostin2016whichisabout1,489,685.04YuanduringtheperiodfromApril,2014toApril,2016.
Theeventhasnofurtherprogressupto31December2017.
(2)Fornomajorcontingenciesdisclosed,explainreasons
TheCompanyhasnomajorcontingenciesshouldbedisclosed
3.Other
XV.Eventafterbalancesheetdate
1.Majornon-adjustmentevents:nil2.Profitdistribution:nil
3.Salesreturn:nil4.Explanationonothereventsafterbalancesheetdate:nil
XVI.Othersignificantevents
1.Correctionofaccountingerrorsinpreviousperiods:nil2.Debtreorganization:nil3.Assetsreplacement:nil4.Annuityplan:nil5.Terminationofoperation:nil6.Segmentinformation:nil7.Majortradinganditemsshowsinfluenceoninvestors’decision-making:nil8.Other
InaccordancewiththerequirementsoftheRegulatoryGuidelinesofListedCompaniesNo.4-ActualController,Shareholders,RelatedParties,PurchaserandCommitmentsandFulfillmentofListedCompanies(CSRCAnnouncementNo.[2013]55)ofChinaSecuritiesRegulatoryCommission,onJune7,2014,LuoniushanCo.,Ltd.(hereinafterreferredtoas“Luoniushan”)sentouttheLetteraboutChangingtheCommitmentsofLuoniushanCo.,Ltd.toHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.totheCompany,andmadecommitmentsthatLuoniushanshallactivelyseekreorganizationpartytoreorganizetheassetsofDadonghaiwithinthreeyearsfromthedatetheCompany’sgeneralmeetingofshareholdersconsideredandapprovedthiscommitment.TheabovemattershavebeenconsideredandapprovedbythegeneralmeetingofshareholdersofDadonghaionJune27,2014.
OnFebruary22,2017,theCompanyreceivedfromLuoniushanaLetteronProgressinthePlanningofCommitmentImplementation,inwhichLuoniushanintendedtotransfer100%oftheequityitheldintheIndustrialCompany,awholly-ownedsubsidiary(specifically,theIndustrialCompanywillfirstbetransferredwithpartoffinancialassetsequityheldbyLuniushanandof6.91%equityofSanyaRuralCommercialBankCo.,Ltd.)totheCompany,thetransactionwasmadeincashwithtransactionamountofaboutRMB300million.Theproposalwasnotadoptedatthe11thextraordinarymeetingoftheeighthboardofdirectorsoftheCompanyduetotheCompany'slackofsufficientdebtrepaymentability.
OnJune23,2017,LuoniushanissuedtotheCompanyaLetteronChangeinTermofCommitmentby
LuoyunshanCo.,Ltd.toHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,extendingLuoniushan'sperformanceperiodoftheaboverestructuringcommitmentoftheCompanyby6months,whichmeansthedeadlineforthefulfillmentofreorganizationcommitmentwaschangedtoDecember27,2017.Asthereorganizationwouldtakeacertainamountoftime,onNovember29,2017,Luoniushanagainappliedtoextendtheperformanceperiodofthereorganizationcommitmentfortwoyears,thatis,theperformancedeadlineofthereorganizationcommitmentwaschangedfromDecember27,2017toDecember26,2019,whichwasnotapprovedatthefourthextraordinarygeneralmeetingofshareholdersoftheCompanyin2017.
XVII.Noteonfinancialstatementofparentcompany
1.Accountsreceivable:nil2.Otherreceivables:nil3.Long-termequityinvestment:nil4.Operationincomeandoperationcost:nil5.Investmentincome:nil6.Other:nil
XVIII.Supplementaryinformation
1.Detailsofcurrentnon-recurringprofitsandlosses
√Applicable□Notapplicable
InRMBItemAmountNoteProfitsorlossesfromdisposalofnon-currentassets-477.98LossfromfixedassetsscrappingOthernon-operatingincomeandexpenseotherthantheabovementionedones
273.00RefundofvehicletollsTotal-204.98--
Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons□Applicable√Notapplicable
2.Returnonnetassetsandearningspershare
Profitduringthereportingperiod
Weightedaveragereturnonnetassets(%)
Earningspershare(RMB)Basicearningsper
share
Dilutedearningsper
shareNetprofitsattributabletoordinaryshareholdersoftheCompany
1.65%0.00350.0035Netprofitsattributabletoordinaryshareholdersofthe
Companyafterdeductionofnon-recurringprofitsorlosses
1.65%0.00350.0035
3.AccountingdifferencebetweenIFRSandCAS(1)Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(International
AccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(2)Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(3)ExplanationondatadifferencesundertheaccountingstandardsinandoutofChina;asforthedifferencesadjustmentauditedbyforeignauditinginstitute,listednameoftheinstitute
4.Other
SectionXI.Documentsavailableforreferences
I.TextofSemi-AnnualReport2018withsignatureofthelegalperson;II.Financialstatementwithsignatureandsealoflegalperson,personinchargeofaccountingworksandpersoninchargeofaccountingorgan(accountantincharge);III.TheoriginalmanuscriptsofalldocumentsandannouncementsoftheCompanypubliclydisclosedonwebsiteappointedbyCSRC;IV.OtherrelevantdocumentsTheabovesaiddocumentsarepreparedinthesecuritydepartmentoftheCompany
HAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.
Chairman:YuanXiaoping
9August2018