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大东海B:2020年半年度报告(英文版) 下载公告
公告日期:2020-08-22

2020

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-AnnualReport2020

(Full-text)

DisclosureDate:22August2020

2020

SectionI.ImportantNotice,ContentsandInterpretationImportantNotice:

BoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.YuanXiaoping,PrincipaloftheCompany,FuZongren,personinchargeofaccountingworksandFuZongren,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportof2020Semi-AnnualReportisauthentic,accurateandcompleteAlldirectorsareattendingtheBoardMeetingforReportdeliberation.TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors.Investorsareadvisedtoexercisecautionofinvestmentrisks.

Content

Semi-annualReport2020 ...... 1

SectionIImportantNotice,ContentandInterpretation ...... 4

SectionIICompanyProfileandMainFinancialIndexes ...... 4

SectionIIISummaryofCompanyBusiness ...... 7

SectionIVDiscussionandAnalysisofOperation ...... 9

SectionVImportantEvents ...... 16

SectionVIParticularaboutChangesinsharesandshareholders ...... 25

SectionVIIPreferredStock ...... 30

SectionVIIIConvertibleBonds ...... 31

SectionIXParticularsaboutDirectors,SupervisorsandSeniorExecutives ...... 32

SectionXCorporateBond ...... 33

SectionXIFinancialReport ...... 34

SectionXIIDocumentsavailableforreference ...... 126

2020

InterpretationItemsReferstoContentsCSRCReferstoChinaSecuritiesRegulationCommissionSSEReferstoShenzhenStockExchangeCompanyLawReferstoCompanyLawofThePeople’sRepublicofChinaSecuritiesLawReferstoSecuritiesLawofThePeople’sRepublicofChinaCompanyortheCompanyReferstoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.ArticleofAssociationRefersto

ArticleofAssociationofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.Shareholders’GeneralMeetingRefersto

Shareholders’GeneralMeetingofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.BoardofDirectors(BOD)Refersto

BoardofDirectorsofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.SupervisoryCommitteeRefersto

SupervisoryCommitteeofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.YuanReferstoCNY/RMB

RiskWarningSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn)arethemediaforinformationdisclosureappointedbytheCompanyforyearof2020,allinformationunderthenameoftheCompanydisclosedontheabovesaidmediashallprevail.ThereportispreparedinbilingualversionsofChineseandEnglishrespectively,intheeventofanydiscrepancyinunderstandingthetwoaforementionedversions,theChineseversionshallprevail.Investorsareadvisedtoexercisecautionofinvestmentrisks.

2020

SectionIICompanyProfileandMainFinancialIndexes

I.CompanyprofileShortformofthestockDadonghai-A,Dadonghai-BStockcode000613,200613ShortformoftheStockafterchangedN/AStockexchangeforlistingShenzhenStockExchangeNameoftheCompany(inChinese)ShortformoftheCompany(inChinese)ForeignnameoftheCompanyHainanDadonghaiTourismCentre(Holdings)Co.,LtdForeignnameofshortformoftheCompanyDADONGHAILegalrepresentativeYuanXiaopingII.Person/Waytocontact

SecretaryoftheBoardRep.ofsecurityaffairsNameWangHongjuanContactadd.DadonghaiSanyaTel.0898-88219921Fax.0898-88214998E-mailhnddhhn@21cn.comIII.Others

1.Wayofcontact

Whetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot

□Applicable√Notapplicable

Registrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanyhavenochangeinreportingperiod,foundmoredetailsinAnnualReport2019.

2.Informationdisclosureandpreparationplace

Whetherinformationdisclosureandpreparationplacechangedinreportingperiodornot

□Applicable√Notapplicable

Thenewspaperappointedforinformationdisclosure,websiteforsemi-annualreportpublishappointedbyCSRCandpreparation

2020

placeforsemi-annualreporthavenochangeinreportingperiod,foundmoredetailsinAnnualReport2019.IV.MainaccountingdataandfinancialindexesWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

Currentperiod

Sameperiodoflastyear

Increase/decreaseinthisreport

y-o-yOperatingrevenue(RMB)4,981,872.0014,241,961.04-65.02%Netprofitattributabletoshareholdersofthelistedcompany(RMB)

-6,631,450.42755,974.01-977.21%Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses(RMB)

-6,547,754.87595,943.55-1,198.72%Netcashflowarisingfromoperatingactivities(RMB)-4,789,190.921,269,416.65-477.27%Basicearningspershare(RMB/Share)-0.01820.0021-966.67%Dilutedearningspershare(RMB/Share)-0.01820.0021-966.67%WeightedaverageROE(%)-8.82%0.97%-9.79%

Endofcurrentperiod

Endoflastperiod

Increase/decreaseinthisreport-endoverthatoflast

period-endTotalassets(RMB)98,516,771.4687,521,184.2512.56%Netassetsattributabletoshareholderoflistedcompany(RMB)

71,855,153.5478,486,603.96-8.45%V.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina

1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√Notapplicable

TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.

2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√Notapplicable

TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.

2020

VI.Itemsandamountsofextraordinaryprofit(gains)/loss

√Applicable□Notapplicable

InRMBItemAmountNoteGains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)

-19,129.52LossesofscrappedfixedassetsGovernmentsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,excludingthefixed-amountorfixed-proportiongovernmentalsubsidyaccordingtotheunifiednationalstandard)

262,840.35

RewardsfordevelopmentofinboundtourismmarketsupportingbythegovernmentandtaxcreditfortheVATinputtaxsurchargeOthernon-operatingincomeandexpenditureexceptfortheaforementioneditems

-327,406.38

CompensationforearlyterminationofthecontractsandotherrevenueOtherrevenueTotal-83,695.55--Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons

□Applicable√Notapplicable

Inreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss

2020

SectionIIISummaryofCompanyBusinessI.MainbusinessesofthecompanyinthereportingperiodTheCompany'smainbusinessishotelaccommodationandcateringservices.Procurementofgoodsismainlythegoodsandmaterialsnecessaryforhotelandcateringoperationsbytakingtheprincipleoflowpriceandfinequality,somegoodsarepurchasedbydirectlysigningpurchasecontractswithsuppliers,andsomegoodarepurchasedbyprocurementagents.Theoperationaremainlyincludingthenetworkbillingandoverseastravelagencyteam,andsupplementedbytheindividualtravelersofnon-internetmarketingandbusinessandthetouristsfromtravelagencies.ThehotelislocatedatthecentralzoneofDadonghaiscenicspotinSanyaCity,HainanProvince,andithasbecomeamemberofthenationwidefamoushotelsbecauseoftheconvenienttransportation,beautifulenvironment,longhistory,andrichculture.However,inrecentyears,thelocalhigh-,middle-andlow-gradehotelsorguesthousesnumerouslyemerge,resultinginthesupplymuchlargerthanthemarketdemand,theindustrycompetitionisratherfierce,andthepressureofdeclineinbusinessremains.II.Majorchangesinmainassets

1.Majorchangesinmainassets

MajorassetsNoteofmajorchangesMonetaryfunds

Increased10.4097millionyuanwithanincreaseof140.24%comparedwiththeendoflastyear,mainlybecausereceivedaloanfromIndustrialBankandpayingtheconstructionamount.Accountreceivable

Decreased215,900yuanwithadecreaseof69.41%comparedwiththeendoflastyear,mainlyduetothecollectionofreceivable.Otheraccountreceivable

Decreased186,300yuanwithadecreaseof32.58%comparedwiththeendoflastyear,mainlyduetothedeclineofutilitiesreceivable.Constructioninprogress

Increased3.5856millionyuanwithanincreaseof733.96%comparedwiththeendoflastyear,mainlyduetothedecorationamountforB-buildingoftheHotel.

2.Mainoverseasassets

□Applicable√Notapplicable

III.CoreCompetitivenessAnalysis

TheCompanytakeshotelaccommodationandcateringservicesastheprincipleworks,locatesatDadonghaibaywhichisoneoftheChina“Top40scenery”andtheonlyAAAAscenicspotopenforfreeinSanyaandhasthemaximumpassengerflowvolumeinSanyaCity,andisabouta5-minutedrivefromdowntownofSanyaCityandabouta30-munitedrivefromSanyaPhoenixAirport.Thehotelisonlytensofmetersdistantfromthesealevel,

2020

possessesbeautifullandscapingfullofbloomingflowersalltheyearround,andenjoysexceptionalgeography,naturalenvironmentaladvantages.ThehotelhasopenedformorethantwodecadeswhichisoneoftheoldesthotelsinSanyaandhasreceivedmanydomesticandforeignheadsofstateandnationalleaders.Intherecentyears,theCompanyhascomprehensivelyupgradedandrebuiltthehotel’ssoftwareandhardwarefacilities,furtherimprovedthehotelsinternalandexternalbusinessenvironment,andeffectivelyenhancedthebusinesscompetitiveness.Currently,themanagementofthecompany’shotelisstillinthefrontrankamonghotelsinthesamearea,withthesamescale,andatthesamelevel.Inthefuturework,theCompanywillkeeptryingtoimprovethehotel’sinternalandexternalbusinessenvironment,strengthenthesaleseffortsandthestaffconstruction,andfurtherimprovetheoperationalcapability.Duringthereportingperiod,theCompany'scorecompetencehadnosignificantchange.

2020

SectionIVDiscussionandAnalysisofOperationI.Introduction

Duringthereportingperiod,thecompanyachievedoperatingincomeof4,981,900Yuaninmainbusiness,decreasedby9,260,100Yuancomparedwiththesameperiodlastyear,adecreaseof65.02%;operatingprofithaslossof6,284,900Yuanachieved,decreasedby6,880,900Yuancomparedwiththesameperiodlastyear,adecreaseof1154.62%;netnon-operatingincomeof-346,500Yuan,decreasedby506,600Yuancomparedwiththesameperiodlastyear,adecreaseof316.54%;netprofithas6,631,500Yuanloss,decreasedby7,384,200Yuancomparedwiththesameperiodlastyear,adecreaseof977.21%.Duringthereportingperiod,thenovelcoronaviruspneumoniaepidemicspreadwantonlyworldwide,tourismandtourismserviceindustriescontinuedtobeseverelyaffectedbytheepidemic,andthecompany'soperationsfellsharply.Inthefaceofseveredifficulties,thecompanyactivelyresponded,ontheonehand,itincreaseddomesticmarketingeffortsandcarriedoutstrictcostcontrolmanagement;ontheotherhand,ittookfulladvantageoftheoff-seasonoperationduringtheepidemic,andincreasedtheconstructionofhotelsoftwareandhardwareequipmentandfacilities.Maintaskswereasfollows:

1.Continuedtoincreasetheconstructionofhotelsoftwareandhardwarefacilities,improveproductquality,andenhancecompetitivenessBecausethehotelroomshavenotbeenrepairedforalongtime,theyareagingandold,andcannotmeetthemarketdemand.Duringthereportingperiod,thecompanymadefulluseoftheoff-seasonoperationduringtheepidemicperiod,andcontinuedtocomprehensivelydesign,update,decorateandtransformthehotel'sBbuilding,Cbuilding,parkinglot,gardenlandscape,andcorrespondingequipmentandfacilities,whicheffectivelyimprovedtheoperatingenvironmentofhotel’shardwareequipmentandfacilities,andenhancedthequalityandcomprehensivecompetitivenessofhotelproducts.

2.Increaseddomesticmarketingefforts

Severelyaffectedbytheepidemic,theforeigntouristmarkethasstagnatedanditisdifficulttorecoverintheshortterm.Inresponse,thecompanyactivelystrengthenedcooperationwithdomestictravelagencies,intensifiedcooperationwithwell-knownonlinesalesplatforms,andstrivedtoexpandthedomestictouristmarket.Withthecountry'sgradualopeningofthedomestictourismmarket,thedomestictourismmarkethasgraduallyrecovered,andthecompany'snetworksalesrevenuehasincreasedsignificantly,effectivelyincreasingthemarketshareofdomestictouristsandchangingthesituationofover-relianceonforeigntouristsinthepast.

3.Keepstrictcostcontrolandmaximizecorporatebenefits

Duringthereportingperiod,thecompanycontinuedtostrengthenprocurementcostcontrolmanagementand

2020

budgetmanagement,scientificallycontrolledoperatingcosts,strictlyandreasonablycontrolledvariousexpenses,andcarriedoutregularinspectionsandrepairstoeliminatewasteofresources,improvecostrationalityandrevenuecost-effectiveness.Atthesametime,ashoteloperationswereverysluggishduringtheepidemic,thecompanyscientificallyandreasonablyarrangedstaffondutyandwaitingfordutyaccordingtoworkneeds,whicheffectivelyreducedlaborcostsandmaximizedcorporateinterests.Insecondhalfof2020,theCompanycontinuestoconsolidateandexpandsaleschannels,improvethehotel’squalityandservicestandards,andenhancethecomprehensivecompetitiveness,tolayingoutasolidfoundationforsustained,stableandhealthydevelopmentoftheCompany.II.MainbusinessanalysisSeethe“I-Introduction”in“DiscussionandAnalysisofOperation”Changeofmainfinancialdataonay-o-ybasis

InRMBCurrentperiod

Sameperiodoflastyear

Y-o-yincrease/decrease

ReasonsforchangesOperationrevenue4,981,872.0014,241,961.04-65.02%

UndertheinfluenceofCOVID-19,businessdeclinedseriouslyOperationcost5,052,678.435,514,477.93-8.37%

Fixedcostsaccountforarelativelyhighinoperationcost,declineofoperationcostissmallrelativelySalesexpenses2,095,194.242,809,991.94-25.44%

ReducingthepayandfeestoloweroperationcostAdministrativeexpenses4,200,935.355,071,800.21-17.17%

ReducingthepayandfeestoloweroperationcostFinancialcost-1,313.35-133,732.09-99.02%HigherdepositinterestincomelastyearNetcashflowarisingfromoperationactivities

-4,789,190.921,269,416.65-477.27%

Operationrevenuereducedgreatly,theoperationlossincreasedgreatlyNetcashflowarisingfrominvestmentactivities

-4,541,324.47-522,876.00768.53%HoteldecorationinvestmentNetcashflowarisingfromfinancingactivities

19,740,208.71100.00%LoansfromIndustrialBankNetincreaseofcashandcashequivalent

10,409,693.32746,540.651,294.39%

ReceivedbankloansandpayingtheconstructionamountMajorchangesonprofitcompositionorprofitresourcesinreportingperiod

□Applicable√Notapplicable

NochangesonprofitcompositionorprofitresourcesinreportingperiodConstitutionofoperationrevenue

2020

InRMBCurrentperiodSameperiodlastyear

Increase/decrease

y-o-y(+,-)Amount

Ratioinoperation

revenue

Amount

RatioinoperationrevenueTotaloperationrevenue4,981,872.00100%14,241,961.04100%-65.02%AccordingtoindustriesTourismcateringservice4,089,491.0582.09%12,671,008.6688.97%-67.73%Otherbusiness892,380.9517.91%1,570,952.3811.03%-43.19%AccordingtoproductsRoomrevenue3,471,155.9769.68%11,108,639.7878.00%-68.75%Cateringentertainmentrevenue

618,335.0812.41%1,562,368.8810.97%-60.42%Otherbusiness892,380.9517.91%1,570,952.3811.03%-43.19%AccordingtoregionHainanarea4,981,872.0014,241,961.04100.00%-65.02%Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit

√Applicable□Notapplicable

InRMBOperatingrevenue

Operatingcost

Grossprofitratio

Increase/decreas

eofoperatingrevenuey-o-y

Increase/decreaseofoperatingcost

y-o-y

Increase/decrease

ofgrossprofit

ratioy-o-yAccordingtoindustriesTourismcateringservice

4,981,872.005,052,678.43-1.42%-65.02%-8.37%-62.70%AccordingtoproductsCustomerservice

revenue

3,471,155.974,410,744.89-27.07%-68.75%-2.69%-86.27%Cateringentertainmentrevenue

618,335.08404,671.7634.55%-60.42%-45.64%-17.80%Rentalrevenue892,380.95237,261.7873.41%-43.19%0.00%-11.49%AccordingtoregionHainanarea4,981,872.005,052,678.43-1.42%-65.02%-8.37%-62.70%Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end

□Applicable√Notapplicable

2020

Explanationonrelevantdatahasabove30%y-o-ychanges

√Applicable□Notapplicable

AffectedbyCOVID-19,operationoftheCompanydeclineddramatically,operationrevenuefromtheabovementionedproductshavedecreasedsignificantly,andtheoperatinggrossprofitmarginhasdecreasedsharply.III.Analysisofthenon-mainbusiness

□Applicable√Notapplicable

IV.AnalysisofAssetsandliability

1.Majorchangesofassetscomposition

InRMBCurrentperiod-endSameperiod-endlastyear

Ratiochanges(+,-)

NotesofmajorchangesAmount

Ratiointotal

assets

Amount

Ratiointotal

assets

Monetaryfund17,832,633.2118.10%7,422,939.898.48%9.62%

ItisMainlycausedbyobtainingbankloans,andpayingtheoperatingexpensesandconstructionamountAccountreceivable

95,154.010.10%311,083.920.36%-0.26%

ThecollectionofaccountreceivableInventory257,461.010.26%254,257.190.29%-0.03%NormalchangesInvestmentrealestate

7,667,644.097.78%7,909,956.879.04%-1.26%

NormalchangesafterdepreciationaccrualFixassets33,463,950.0533.97%35,075,195.9840.08%-6.11%

NormalchangesafterdepreciationaccrualConstructioninprogress

4,074,092.554.14%488,522.100.56%3.58%

CausedbytheHoteldecorationLong-termborrowing

16,458,140.8916.71%16.71%

Causedbyobtainingthebankloans

2.Assetsandliabilitymeasuredbyfairvalue

□Applicable√Notapplicable

3.Assetsrightrestrictiontillendofreportingperiod

Nil

2020

V.Investment

1.Overallsituation

□Applicable√Notapplicable

2.Themajorequityinvestmentobtainedinthereportingperiod

□Applicable√Notapplicable

3.Themajornon-equityinvestmentdoinginthereportingperiod

□Applicable√Notapplicable

4.Financialassetsmeasuredbyfairvalue

□Applicable√Notapplicable

5.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√Notapplicable

Thecompanyhadnosecuritiesinvestmentinthereportingperiod.

(2)Derivativeinvestment

□Applicable√Notapplicable

TheCompanyhasnoderivativesinvestmentinthePeriodVI.Salesofmajorassetsandequity

1.Salesofmajorassets

□Applicable√Notapplicable

TheCompanyhadnosalesofmajorassetsinthereportingperiod.

2.Salesofmajorequity

□Applicable√Notapplicable

VII.Analysisofmainholdingcompanyandstock-jointlycompanies

□Applicable√Notapplicable

2020

TheCompanyhadnoinformationofmainholdingcompanyandstock-jointlycompaniesdisclosedinthereportingperiod.

VIII.StructuredvehiclecontrolledbytheCompany

□Applicable√Notapplicable

IX.PredictionofbusinessperformancefromJanuary–September2020Estimationonaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationonreason

□Applicable√Notapplicable

X.Risksandcountermeasures

(1)MarcoPolicyrisks

Inordertonormalizeandoptimizetourismmarketorfurthertopromoteclear-partyconstruction,relateddepartmentsmayfurtherissuesomerelativepolicies.Whilethesepolicesmaycauserestrainandeffectonregionaltourismdevelopment.Mainbusinessincomemaybeaffectedsinceweareengagedintourismservice.Countermeasures:TheCompanywillfurthertoimprovethehardandsoftequipmentandfacilitiesofthehotelwhileexpandingthebusinessscope,andwinmoremarketsharesviahigh-classserviceandcomfortableenvironmentsoastoensurethemainbusinessincomelevel.

(2)TheriskofbeingaffectedbythenovelcoronaviruspneumoniaepidemicSinceJanuarythisyear,theglobaloutbreakofthenovelcoronaviruspneumoniahascausedseveredamagetothetourismandtourismserviceindustries.Atpresent,althoughthedomesticepidemicisbasicallyundercontrol,theforeignepidemiccontinuestospreadglobally,andtheforeigntouristmarketisdifficulttorecoverintheshortterm.Countermeasures:Thecompanywillstrictlyfollowtheviruspreventionandcontrolrequirementstoregulatemanagement,andincreasetherenovationandconstructionofhotelinfrastructure,increasetheexpansionofthedomestictouristmarket,andstrivetoimprovebusinesscompetitivenessaftertheepidemic.

(3)Naturaldisasterrisks

Inrecentyears,variousnaturaldisasterstakeplacefrequently,HainanIslandbelongstooceanicclimate,wherehashighincidenceofdisastrousweatherinsummer.IfSanyabecomesthelandingplaceoftyphoon,itmaycausegreatdamagestothefacilitiesoftheCompanyandaffecttheCompany’snormaloperation.Countermeasures:TheCompanywillstrengthentheconstructionandmaintenanceforinfrastructure,continuetobuypropertyinsurances,positivelyadopteffectivepreventionmeasures,andimprovetheabilityofresistingnaturaldisasters.

(4)RisksofHR

Demandfortalentinaspectofhotelsalesandmanagementareincreasinglyduetotheconstantlyriseofhotel

2020

industry,flowofhoteltalentedpeoplecomesmorewidespreadandmorefrequent;wemayfacetherisksofdevelopmentrestrainedfrombraindrain.Countermeasure:wewillcontinuetoimprovethetalentintroduction,trainingsystem,incentivemechanism,remunerationandwelfareaswellasinsurancemechanism,strivetoattracttalent,cultivatethemandretainthem.Meanwhile,strengthenstaffqualityandskillsaswellasthemanagementability,furtherputtingmoreeffortsinenterprisecultureconstruction,enhancethecohesionintheCompany,andguaranteeastableofthecoremanagersandskilltechnicians.

(5)Operationalrisksofmainbusiness

Withtheceaselessdevelopmentofglobaltouristindustryconstantlyandceaselessrisingofhigh-class,middle-classandlow-classhotels,thetouristsourceskeepshunting,andthecompetitionoftourismserviceindustryinSanyabecomesincreasinglyfierce.WhilethemainbusinessoftheCompanyisjustasmall-scalehotel,asthemainbusinessissingleandthebusinessscopeislimited,thetouristmarketconditionsandtouristquantitydirectlymakesignificantaffectsonthecompanyperformance.Countermeasure:madeascientificmanagementanddecision-makingprocedures,strengthentheawarenessofriskprevention,buildingandimprovingrelevantmechanismandstandardizedthemanagementintheCompany.Furthermore,increasethesalesability,onbaseoftheformersalesnetwork,continuestoexploitforeignhigh-endtourismmarketunderthesuperiorgeographicallocationandenvironmentforimprovingtheoccupancyrate.Besides,wecontinuedtodevelopfinancingchannels,expandingoperationprojects,enrichtheindustrialstructureforincreasingtheprofitincreasingpoint.

2020

SectionV.ImportantEventsI.Inthereportperiod,theCompanyheldannualgeneralmeetingandextraordinaryshareholders’generalmeeting

1.AnnualGeneralMeetinginthereportperiod

Sessionofmeeting

Type

Ratioofinvestorparticipation

Date

Dateofdisclosure

IndexofdisclosureAGMof2019

Annualgeneralmeeting

20.78%22May202023May2020

The“ResolutionNoticeofAnnualGeneralMeetingof2019”(No.:2020-018)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated23May2020respectively

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√Notapplicable

II.ProfitdistributionandcapitalizationofcapitalreservesinthePeriod

□Applicable√Notapplicable

TheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherforthesemi-annualyearIII.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies

√Applicable□Notapplicable

CommitmentsPromise

Typeofcommitments

Contentofcommitments

Commitmentdate

Commitmentterm

Implementation

CommitmentsforShareMergerReform

LuoniushanCo.,Ltd

CommitmentsforShareMergerReform

OnMay30,2007,LuoniushanCo.,Ltd.madecommitmentsintheCompany’s"Instructionsforreformofnon-tradableshares"(Revision)and"Instructionsforreformofnon-tradableshares"(Abstractofrevision)thatinviewofDadonghaiCompany’slossesinsuccessiveyearsandonthevergeofdelisting,inordertoreversethecompany'sbusinessdifficulties,improveprofitabilityandrecoverthe

2017-06-27

month

s

Theoriginalplansofmaterialassetsreorganizationwas

2020

continuousbusinesscapacity,LuoniushanCo.,Ltd.,thecontrollingshareholderofDadonghaiCompanymadecommitmentstoactivelyseekrestructuringpartiestoreorganizetheassetsofDadonghaiCompanyattheappropriatetime.

terminated

CommitmentsinreportofacquisitionorequitychangeCommitmentsinassetsreorganizationCommitmentsmakeininitialpublicofferingorre-financingEquityincentivecommitmentOthercommitmentsformediumandsmallshareholdersCompletedontime(Y/N)N

Ifthecommitmentsisnotfulfilledontime,shallexplainthespecifyreasonandthenextworkplan

Thecompany’sstockhasbeensuspendedsincetheopeningonFebruary15,2017duetotheplanningandfulfillmentcommitmentsofLuoniushan.OnAugust13,2017,theconsiderationofthe11

thinterimmeetingoftheeighthboardofdirectorsofthecompanyfailedtoapprovethe“ProposalonMajorAssetPurchaseandRelatedTransactionReport(Plan)ofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.”andother11proposals.OnAugust15,2017,thecompanyissuedanannouncementtoterminatethismajorassetrestructuring,andthecompany’sstockresumedtradingonAugust17

th

.OnDecember4,2017,theboardofdirectorsandtheboardofsupervisorsofthecompanyreviewedandapprovedtheProposalontheChangeofCommitmentPeriodoftheFirstMajorityShareholderoftheCompany.LuoniushanCo.,Ltd.,thecompany’sfirstmajorityshareholderplannedforatwo-yearextensionforthetimelimitofthecompany’srestructuringcommitmentsinceDecember27,2017,thatis,thedeadlinefortheimplementationoftherestructuringcommitmentwaschangedtoDecember26,2019.OnDecember22,2017,thecompany’sfourthextraordinaryshareholders’meetingin2017didnotapprovetheproposal.OnJanuary31,2018,thecompanyreceivedtheNoticeonPlanningforSuspensionofMajorEventssentbyLuoniushanCo.,Ltd.,thecompany’slargestshareholder,toplanandpreparethemajorissuesrelatedtothecompany.Uponapplicationbythecompany,thecompany’sstock(stockshortname:DadonghaiA,DadonghaiB,stockcode:000613,200613)wassuspendedsincetheopeningonJanuary31,2018.Uponapplicationbythecompany,thecompany’sstockresumedtradingonFebruary8,2018,andwastransferredtothemajorassetrestructuringsincetheopeningonFebruary14,2018.OnJune25,2018,thecompanyheldthethirdinterimmeetingoftheninthboardofdirectorswhichreviewedandapprovedtheProposalonTerminatingthePlanningforMajorAssetRestructuring.Aftercarefulstudy,theboardofdirectorsofthecompanydecidedtoterminatetheplanningforthismajorassetrestructuring.Atpresent,thecompanyhasnoinformationthatshouldbedisclosedbuthasnotbeendisclosed

2020

IV.Engagementandnon-reappointmentofCPAWhetherthesemi-annualreportwasauditedornot

□Yes√No

Thesemi-annualreportoftheCompanyhadnoaudited.V.ExplanationfromtheBoardandSupervisoryCommitteefor“QualifiedOpinion”fromtheCPA

□Applicable√Notapplicable

VI.Explanationon“QualifiedOpinion”ofpreviousyearfromtheBoard

□Applicable√Notapplicable

VII.Bankruptcyreorganization

□Applicable√Notapplicable

Inreportingperiod,theCompanyhasnobankruptcyreorganizationoccurred.

VIII.LawsuitsSignificantlawsuitsandarbitrationoftheCompany

√Applicable□Notapplicable

BasicSituationofLitigation

(Arbitration)

AmountInvolve

d(Yuan)

WhethertoForm

anEstimate

dLiability

Litigation(Arbitration)

Progress

Litigation(Arbitration)TrialResultsandImpact

Execution

ofLitigation(Arbitratio

n)Judgment

Date

ofDisclosure

Disclosure

Index

HainanDadonghaiTourismCentreGroupCo.,Ltd.borrowed2.76millionyuanand4.55millionyuanfromHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.onOctober16,1996andDecember26,1996respectively.Thetwoborrowingstotaled7.31millionyuanandhaven’tbeenrepaidyet.Thecompanysubmitteda"CivilComplaint"andrelatedevidencematerialstotheSanyaSuburbanPeople'sCourt(hereinafterreferredtoasthe"Court").

731N

ThefirstinstancedecisionrejectedtheclaimoftheCompany,andtheappealmaterialshassubmittedtothecourtwithintheappealperiod.Atpresent,noacceptance

Thecompanyhaswrittenofftheborrowingsofthecaseinfullamountin2008.Atpresent,thecompanyisunabletojudgetheimpactofthislawsuitonthe

Judgmentoffirstinstancehasnotcomeintoeffect

2019-06-04

AnnouncementonSignificantLitigation(AnnouncementNo.:

2019-017)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.

2020

noticehasbeenreceived.

company'scurrentprofitorfutureprofit.Otherlawsuits

√Applicable□Notapplicable

BasicSituationofLitigation(Arbitration)

AmountInvolved

(Yuan)

WhethertoForm

anEstimatedLiability

Litigatio

n(Arbitrat

ion)Progress

Litigation(Arbitratio

n)TrialResultsandImpact

Executio

nofLitigation(Arbitrati

on)Judgment

Date

ofDisclosure

Disclos

ureIndexOnMay31,2018,theSanyaLocalTaxationBureauSocialSecurityFeeCollectionandAdministrationBureauissuedanoticeofpaymentdeadlineforsocialinsurancepremiumstothecompany'sSouthChinaHotel,orderingthecompany'sSouthChinaHoteltopaytheunpaidsocialinsurancepremiumsandlatepaymentfeesandinterestfromJanuary1,2012toDecember31,2012oftotaling286,200.36yuan.OnMay17,2018,theSanyaLocalTaxationBureaudeductedthemoneyfromthedepositofthecompany'sSouthChinaHotel.Accordingtotheagreementofthe"ResponsibilityLetteroftheTargetManagementofSouthChinaHotel"signedbySouthChinaHotelandSunHongjie,SunHongjieshouldberesponsibleforthesocialinsurancepremiumincurredfromMay1,2011toApril30,2016.TheunpaidsocialinsurancepremiumoccurredduringSunHongjiestargetmanagementresponsibility,andSunHongjieshouldundertakethepayment.Sofar,SunHongjiehasnotrepaidtheadvancepaymenttothecompany'sSouthChinaHotel.Tothisend,thecompany'sSouthChinaHotelappealedtothecourt.

28.62N

Judgmentoffistinstancehascomeintoeffect

Thefirsttrialupheldthecompany’sclaim

Entered

theenforcementprocedure

IX.Mediaquestioned

□Applicable√Notapplicable

Duringthereportingperiod,thecompanyhadnoquestionsfromthemedia

X.Penaltyandrectification

□Applicable√Notapplicable

TheCompanyhasnopenaltyandrectificationinthePeriod

2020

XI.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers

□Applicable√Notapplicable

XII.Implementationofthecompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable√Notapplicable

Duringthereportingperiod,thecompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentivesthathavenotbeenimplemented.XIII.Majorrelatedtransaction

1.Relatedtransactionwithroutineoperationconcerned

√Applicable□Notapplicable

Relatedtransactionprice

Relatedtransactio

namount(in

thousandYuan

)

Proportion

insimila

rtransactions

Tradi

nglimitappro

ved(in10thousa

ndYuan)

Whet

herovertheappro

vedlimite

dor

not(Y/N)

Cleari

ngform

forrelate

dtransaction

Availablesimilarmarketprice

Dateofdisclosure

Indexofdisclosure

Relatedtransactionprice

Relatedtransactionamount(in10thousandYuan)

Proportioninsimilartransacti

ons

Tradi

nglimitappro

ved(in10thous

andYuan)

Wheth

erovertheappro

vedlimite

dor

not(Y/N)LuoniushanCo.,Ltd.

Firstmajorityshareholder

Consumption

Accommodation

Marketprice

Marketprice

0.290.06%0N

Sameasthetransactionwithnon-relatedparty

Sameasthetransactionwithnon-relatedpartyTotal----0.29--0----------Detailofsalesreturnwithmajoramountinvolved

N/AReporttheactualimplementationofthedailyrelatedtransactionswhichwereprojectedabouttheirtotalamountbytypesduringthereportingperiod

N/AReasonsformajordifferencesbetweentradingpriceandmarketreferenceprice

Notapplicable

2020

2.Relatedtransactionsbyassetsacquisitionandsold

□Applicable√Notapplicable

NorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod

3.Relatedtransactionsofmutualinvestmentoutside

□Applicable√Notapplicable

NomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod

4.Contactofrelatedcreditanddebt

□Applicable√Notapplicable

NocontactofrelatedcreditordebtfortheCompanyinthereportingperiod

5.Othermaterialrelatedtransactions

□Applicable√Notapplicable

TheCompanyhasnoothermaterialrelatedtransactionsintheperiod

XIV.Non-businesscapitaloccupyingbycontrollingshareholdersanditsrelatedparties

□Applicable√Notapplicable

Nonon-businesscapitaloccupiedbycontrollingshareholdersanditsrelatedpartiesinPeriodXV.Majorcontractandimplantation

1.Trusteeship,contractandleasing

(1)Trusteeship

□Applicable√Notapplicable

TheCompanyhadnotrusteeshipinthereportingperiod.

(2)Contract

□Applicable√Notapplicable

TheCompanyhadnocontractinthereportingperiod.

(3)Leasing

√Applicable□Notapplicable

Noteofleasing

2020

ItemTenantLeaselifeTermoflease

1/FcateringofB-buildingoftheHotelMaMing(HainanHangpaiFoodCo.,Ltd.)

5years2016-01-01to2020-05-30Shoppingmall–B/FLiFuming3years2019-11-01to2022-10-31groundfloorofHotelALiFuming3years2019-02-28to2022-02-27SeasidestallandwoodhouseSanyaLedaFoodManagementCo.,Ltd.5years2018-01-01to2022-12-31Seasidelockerroom

ZhongZhengao3years2016-12-01to2019-11-30Multi-functionalmeetingroom

LiFuming5years2019-11-01to2024-10-31Gains/lossestotheCompanyfromprojectsthatreachedover10%intotalprofitoftheCompanyinreportingperiod

√Applicable□Notapplicable

Nameof

lessor

Nameoftheleasingparty

Leasingassets

Leasing

assetsinvolvedintheamount

(in10thousand

Yuan)

Leasestartdate

Leasetermina

tion

date

Leasingincome(in10thousan

dYuan)

Basis

fordeterminingtheleasingincome

Theimpactofleasingincomeonthecompany

Whethe

rberelatedtransactions

AssociationrelationTheCompany

SanyaLedaFoodManagementCo.,Ltd.

Seasidestallandwoodhouse

2018-01-01

2022-12-31

Contract

Increaseincome

NN/ATheCompany

ZhongZhengao

Seasidelockerroom

2016-12-01

2019-11-30

Contract

Increaseincome

NN/ATheCompany

LiFuming

Multi-functionalmeetingroom

2019-11-01

2024-10-31

Contract

Increaseincome

NN/A

2.MajorGuarantee

□Applicable√Notapplicable

TheCompanyhadnoguaranteeinthereportingperiod.

3.Trustmanagement

□Applicable√Notapplicable

TheCompanyhadnotrustmanagementinthereportingperiod.

4.Othermaterialcontracts

√Applicable□Notapplicable

2020

Thename

ofthecontracti

ngcompany

Thename

ofthecontractedcompany

Contr

actobjec

t

Dateofcontractsigning

Thebookvalueoftheassetsinvolvedinthecontract(in10thousandyuan)

Theassessedvalueoftheassetsinvolved

inthecontract(i

n10thousand

yuan)

Nameofevaluationinstitution

Thebasedateevaluation

Prici

ngPrinciple

Transactionprice(in10thous

andyuan)

WhetherRelatedTransactionsorno

t

Relevancerelationship

Theperformanceby

theendoftheterm

Dateofdisclosure

Indexofdisclosure

TheCompany

HaikouBranchofIndustrialBank

millionyuanloans

2020-04-10

4814,796

HainanHuazhiLandRealEstateAppraisalCo.,Ltd.

Marketprice

2,000N

N/A

Obtaining

19.7

millionyuanloansHainanDadonghaiTourismCentre(Holdings)Co.,LtdSouthChinaHotel

HaikouXindechengConstructionandInstallationEngineeringCo.,Ltd.

DecorationprojectoftheBuilding-BofSouthChinaHotel

2020-03-25

N/A

Marketprice

1,200N

N/A

60%

oftheconstructionprogress

XVI.Socialresponsibility

1.Majorenvironmentalprotection

ListedcompanyanditssubsidiarybelongtothekeypollutionenterpriselistedbyDepartmentofEnvironmentalProtection:NoNil

2020

2.Executionofsocialresponsibilityoftargetedpovertyalleviation:

Nil

XVII.Explanationonothersignificantevents

√Applicable□Notapplicable

TheLawyer’sLetterreceivedbytheCompany:bypreliminaryaccountingfromSanyaPowerBureau,the10313373KwhelectricitywasunderstatedunderthenameofSouthChinaHotelfromJuly2006toApril2016.TheCompanyiscommunicatedandnegotiateswithSanyaPowerBureauintheabovementionedeventwithoutnegotiationresultssofar.XVIII.SignificanteventofsubsidiaryoftheCompany

□Applicable√Notapplicable

2020

SectionVI.ParticularsaboutChangesinSharesandShareholdersI.ChangesinShareCapital

1.ChangesinShareCapital

InShareBeforetheChangeIncrease/DecreaseintheChange(+,-)AftertheChange

Amount

Proporti

on

Newsharesissued

Bonusshares

Capitalization

ofpublicreserve

OthersSubtotal

AmountProportion

I.Restrictedshares10,223,4002.81%10,223,4002.81%

1.State-ownedshares

2.State-ownedcorporate

shares

1,399,2000.38%1,399,2000.38%

3.Otherdomesticshares

8,824,2002.42%8,824,2002.42%Including:Domesticlegalpersonshares

8,824,2002.42%8,824,2002.42%II.Unrestrictedshares353,876,60097.19%353,876,60097.19%

1.RMBcommonshares

265,876,60073.02%265,876,60073.02%

2.Domesticallylisted

foreignshares

88,000,00024.17%88,000,00024.17%III.Totalshares364,100,000100.00%364,100,000100.00%Reasonsforsharechanged

□Applicable√Notapplicable

Approvalofsharechanged

□Applicable√Notapplicable

Ownershiptransferofsharechanges

□Applicable√Notapplicable

Implementationprogressofthesharerepurchases

□Applicable√Notapplicable

Implementationprogressofthereductionofrepurchasessharesbycentralizedbidding

□Applicable√Notapplicable

2020

InfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod

□Applicable√Notapplicable

Otherinformationnecessarytodiscloseorneedtodisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changesofrestrictedshares

√Applicable□Notapplicable

InShareShareholders’name

Numberof

sharesrestrictedatPeriod-begin

Numberofsharesreleased

intheYear

Numberofnewsharesrestricted

intheYear

Numberof

sharesrestrictedatPeriod-end

Restriction

reasons

Releaseddate

ShenyangJin’anIndustrialCorporation

831,60000831,600

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteSanyaWangliBuildingMaterialsSales

92,4000092,400

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteSanyaZhongxingDevelopmentCo.,Ltd.

2,541,000002,541,000

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteSanyaRealEstateValuationAgent924,00000924,000

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteSouthernIndustrialandTradingCorporation

660,00000660,000

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteHainanBranchofBankofCommunicationsCo.,Ltd.

924,00000924,000

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteGuangzhouCompanyofHainanInternationalInvestmentCo.,Ltd.

660,00000660,000

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteHainanDadonghaiTourismCo.739,20000739,200

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteHaikouDongfangUrbancreditCooperative

924,00000924,000

Legalcommitmentinsharereform

AfterremoverestrictedprocedurescompleteGuangzhouDongzhanIndustrialCo.LTD

924,00000924,000LegalAfterremoverestricted

2020

commitmentinsharereform

procedurescompleteSpecialaccountfordispositionofbankruptenterpriseproperty-HongKong-MacaoInternationalHainanInvestmentCo.,Ltd.

924,00000924,000

Legalcommitmentinsharereform

Afterremoverestricted

procedurescompleteYangpuTongrongInvestmentManagementConsultingCo.,Ltd.

79,2000079,200

Legalcommitmentinsharereform

Afterremoverestricted

procedurescompleteTotal10,223,4000010,223,400----II.Securitiesissuanceandlisting

□Applicable√Notapplicable

III.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding

InShareTotalcommonstockshareholdersinreportingperiod-end

42,990

Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod

Particularsaboutcommonsharesheldabove5%byshareholdersortoptencommonshareholders

FullnameofShareholders

Natureofshareholder

Proportionofsharesheld

Numberof

commonsharesheld

atperiod-end

Change

sinreportperiod

Amountofrestrictedsharesheld

Amountofun-restrictedsharesheld

Numberofsharepledged/frozenStateofshareAmount

LuoniushanCo.,Ltd.

Domesticnonstate-ownedcorporate

17.55%63,885,9800063,885,980

Pledged

44,720,186YangMeiqin

Domesticnatureperson

4.47%16,279,0280016,279,028PanAnjie

Domesticnatureperson

4.01%14,593,5980014,593,598HainanYaanResidencePropertyServiceCo.,Ltd.

Domesticnonstate-ownedcorporate

2.25%8,205,800008,205,800ChenJinlian

Domesticnatureperson

2.13%7,766,400007,766,400PanAiping

Domesticnatureperson

1.13%4,110,738004,110,738ChinaInvestmentSecuritiesForeigncorporate0.99%3,622,300003,622,300

2020

(HK)Co.,Ld.customerdepositShenwanHongyuanSecurities(HongKong)Co.,Ltd.

Foreigncorporate0.84%3,056,390003,056,390ZhangFengxiu

Domesticnature

person

0.84%3,041,372003,041,372SunHuiming

Domesticnatureperson

0.79%2,888,690002,888,690Strategyinvestorsorgenerallegalpersonbecomestop10commonshareholdersduetorightsissued

N/A

Explanationonassociatedrelationshiporaccordantactionamongtheaforesaidshareholders

Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd;YangMeiqin,PanAnjie,ChenJinlianandPanAipingarethepersonsactinginconcert;theCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Particularabouttoptenshareholderswithun-restrictcommonsharesheldShareholders’name

Amountofun-restrictcommonshares

heldatPeriod-end

TypeofsharesTypeAmountLuoniushanCo.,Ltd.63,885,980RMBcommonshare63,885,980YangMeiqin16,279,028

Domesticallylistedforeignshare

16,279,028PanAnjie14,593,598

Domesticallylistedforeignshare

14,593,598HainanYaanResidencePropertyServiceCo.,Ltd.8,205,800RMBcommonshare8,205,800ChenJinlian7,766,400

Domesticallylistedforeignshare

7,766,400PanAiping4,110,738

Domesticallylistedforeignshare

4,110,738ChinaInvestmentSecurities(HK)Co.,Ld.customerdeposit

3,622,300RMBcommonshare3,622,300ShenwanHongyuanSecurities(HongKong)Co.,Ltd.3,056,390

Domesticallylistedforeignshare

3,056,390ZhangFengxiu3,041,372RMBcommonshare3,041,372SunHuiming2,888,690

Domesticallylistedforeignshare

2,888,690Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictcommonstockshareholdersandbetweentop10un-restrictcommonstockshareholdersandtop10commonstockshareholders

Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.YangMeiqin,PanAnjie,ChenJinlianandPanAipingarethepersonsactinginconcert;theCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.

2020

Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswithun-restrictsharesheld

N/AWhethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod

□Yes√No

Thetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.IV.Changesofcontrollingshareholdersoractualcontroller

Changesofcontrollingshareholdersinreportingperiod

□Applicable√Notapplicable

Changesofcontrollingshareholdershadnochangeinreportingperiod.Changesofactualcontrollerinreportingperiod

□Applicable√Notapplicable

Changesofactualcontrollerinreportingperiodhadnochangeinreportingperiod.

2020

SectionVII.PreferredStock

□Applicable√Notapplicable

TheCompanyhadnopreferredstockinthePeriod.

2020

SectionVIIIConvertibleBonds

□Applicable√Notapplicable

TheCompanyhadnoconvertiblebondsinthePeriod

2020

SectionIX.ParticularsaboutDirectors,SupervisorsandSenior

Executives

I.Changesofsharesheldbydirectors,supervisorsandseniorexecutives

□Applicable√Notapplicable

Nochangeofsharesheldbydirectors,supervisorsandseniorexecutives,foundmoredetailsinAnnualReport2019.II.Changesofdirectors,supervisorsandseniorexecutives

□Applicable√Notapplicable

Nochangesofdirectors,supervisorsandseniorexecutives,foundmoredetailsinAnnualReport2019.

2020

SectionX.CorporateBondWhethertheCompanyhasacorporationbondsthatissuancepubliclyandlistedonstockexchangeandwithoutdueonthedatewhensemi-annualreportapprovedforreleasedorfailtocashinfullondueNo

2020

SectionXI.FinancialReportI.AuditreportWhetherthesemiannualreportisaudited

□Yes√No

Thecompany'ssemiannualfinancialreporthasnotbeenaudited.II.FinancialStatementExpressedinRenminbiunlessotherwisestated

1.Balancesheet

PreparedbyHAINANDADONGHAITourismCentre(HOLDINGS)CO.,LTD.

2020-06-30

InRMBItem2020-6-302019-12-31Currentassets:

Monetaryfunds17,832,633.217,422,939.89SettlementprovisionsCapitallentTradablefinancialassetsDerivativefinancialassetsNotereceivableAccountreceivable95,154.01311,083.92ReceivablefinancingAccountspaidinadvanceInsurancereceivableReinsurancereceivablesContractreserveofreinsurancereceivableOtheraccountreceivable385,492.93571,744.52Including:InterestreceivableDividendreceivableBuyingbackthesaleoffinancialassetsInventories257,461.01254,257.19

2020

ContractualassetsAssetsheldforsaleNon-currentassetduewithinoneyearOthercurrentassets2,951,509.692,574,442.57Totalcurrentassets21,522,250.8511,134,468.09Non-currentassets:

LoansandpaymentsonbehalfDebtinvestmentOtherdebtinvestmentLong-termaccountreceivableLong-termequityinvestmentInvestmentinotherequityinstrumentOthernon-currentfinancialassetsInvestmentrealestate7,667,644.097,909,956.87Fixedassets33,463,950.0535,075,195.98Constructioninprogress4,074,092.55488,522.10ProductivebiologicalassetOilandgasasset

Right-of-useassetsIntangibleassets20,991,719.3021,392,861.88ExpenseonResearchandDevelopmentGoodwillLong-termexpensestobeapportioned10,797,114.6211,520,179.33DeferredincometaxassetOthernon-currentassetTotalnon-currentasset76,994,520.6176,386,716.16Totalassets98,516,771.4687,521,184.25Currentliabilities:

Short-termloansLoanfromcentralbankCapitalborrowedTradingfinancialliabilityDerivativefinancialliabilityNotepayable

2020

Accountpayable382,803.651,250,409.75Accountsreceivedinadvance791,258.55786,715.42ContractualliabilitySellingfinancialassetofrepurchaseAbsorbingdepositandinterbankdepositSecuritytradingofagencySecuritysalesofagencyWagepayable1,835,302.472,552,996.37Taxespayable334,957.93307,257.85Otheraccountpayable2,011,273.022,647,515.86Including:Interestpayable

DividendpayableCommissionchargeandcommissionpayableReinsurancepayableLiabilityheldforsaleNon-currentliabilitiesduewithinoneyear3,358,196.37OthercurrentliabilitiesTotalcurrentliabilities8,713,791.997,544,895.25Non-currentliabilities:

InsurancecontractreserveLong-termloans16,458,140.89BondspayableIncluding:Preferredstock

PerpetualcapitalsecuritiesLeaseliabilityLong-termaccountpayableLong-termwagespayableAccrualliability1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities17,947,825.931,489,685.04Totalliabilities26,661,617.929,034,580.29Owner’sequity:

2020

Sharecapital364,100,000.00364,100,000.00Otherequityinstrument

Including:Preferredstock

PerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01Less:InventorysharesOthercomprehensiveincomeReasonablereserveSurpluspublicreserveProvisionofgeneralriskRetainedprofit-346,387,696.47-339,756,246.05Totalowner’sequityattributabletoparentcompany71,855,153.5478,486,603.96MinorityinterestsTotalowner’sequity71,855,153.5478,486,603.96Totalliabilitiesandowner’sequity98,516,771.4687,521,184.25LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren

2.Balancesheetofparentcompany

InRMBItem2020-6-302019-12-31Currentassets:

Monetaryfunds17,831,539.297,421,452.59TradingfinancialassetsDerivativefinancialassetsNotereceivableAccountreceivable95,154.01311,083.92ReceivablefinancingAccountspaidinadvanceOtheraccountreceivable385,492.93571,744.52

Including:Interestreceivable

DividendreceivableInventories257,461.01254,257.19

2020

ContractualassetsAssetsheldforsaleNon-currentassetsmaturingwithinoneyearOthercurrentassets2,951,509.692,574,442.57Totalcurrentassets21,521,156.9311,132,980.79Non-currentassets:

DebtinvestmentOtherdebtinvestmentLong-termreceivablesLong-termequityinvestments1,000,000.001,000,000.00InvestmentinotherequityinstrumentOthernon-currentfinancialassetsInvestmentrealestate7,667,644.097,909,956.87Fixedassets33,463,950.0535,075,195.98Constructioninprogress4,074,092.55488,522.10ProductivebiologicalassetsOilandnaturalgasassetsRight-of-useassetsIntangibleassets20,991,719.3021,392,861.88ResearchanddevelopmentcostsGoodwillLong-termdeferredexpenses10,797,114.6211,520,179.33DeferredincometaxassetsOthernon-currentassetsTotalnon-currentassets77,994,520.6177,386,716.16Totalassets99,515,677.5488,519,696.95CurrentliabilitiesShort-termborrowingsTradingfinancialliabilityDerivativefinancialliabilityNotespayableAccountpayable382,803.651,250,409.75Accountsreceivedinadvance791,258.55786,715.42Contractualliability

2020

Wagepayable1,835,302.472,552,996.37Taxespayable334,957.93307,210.05Otheraccountspayable2,011,273.022,647,515.86

Including:InterestpayableDividendpayableLiabilityheldforsaleNon-currentliabilitiesduewithinoneyear3,358,196.37Othercurrentliabilities999,468.70999,468.70Totalcurrentliabilities9,713,260.698,544,316.15Non-currentliabilities:

Long-termloans16,458,140.89BondspayableIncluding:preferredstockPerpetualcapitalsecuritiesLeaseliabilityLong-termaccountpayableLongtermemployeecompensationpayableAccruedliabilities1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities17,947,825.931,489,685.04Totalliabilities27,661,086.6210,034,001.19Owners’equity:

Sharecapital364,100,000.00364,100,000.00OtherequityinstrumentIncluding:preferredstockPerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01Less:InventorysharesOthercomprehensiveincomeSpecialreserveSurplusreserveRetainedprofit-346,388,259.09-339,757,154.25

2020

Totalowner’sequity71,854,590.9278,485,695.76Totalliabilitiesandowner’sequity99,515,677.5488,519,696.95

3.ConsolidatedProfitStatement

InRMBItem2020semi-annual2019semi-annualI.Totaloperatingincome4,981,872.0014,241,961.04Including:Operatingincome4,981,872.0014,241,961.04

InterestincomeInsurancegainedCommissionchargeandcommissionincomeII.Totaloperatingcost11,529,626.8713,646,017.49Including:Operatingcost5,052,678.435,514,477.93InterestexpenseCommissionchargeandcommissionexpenseCashsurrendervalueNetamountofexpenseofcompensationNetamountofwithdrawalofinsurancecontractreserveBonusexpenseofguaranteeslip

ReinsuranceexpenseTaxandextras182,132.20383,479.50Salesexpense2,095,194.242,809,991.94Administrativeexpense4,200,935.355,071,800.21R&DexpenseFinancialexpense-1,313.35-133,732.09Including:Interestexpenses76,128.55

Interestincome89,077.69152,697.12Add:otherincome262,840.35

Investmentincome(Lossislistedwith“-”)Including:Investmentincomeonaffiliatedcompanyandjointventure

Theterminationofincomerecognitionforfinancialassetsmeasuredbyamortizedcost(Lossislistedwith“-”)

Exchangeincome(Lossislistedwith“-”)

2020

Netexposurehedgingincome(Lossislistedwith“-”)Incomefromchangeoffairvalue(Lossislistedwith“-”)Lossofcreditimpairment(Lossislistedwith“-”)Lossesofdevaluationofasset(Lossislistedwith“-”)Incomefromassetsdisposal(Lossislistedwith“-”)III.Operatingprofit(Lossislistedwith“-”)-6,284,914.52595,943.55Add:Non-operatingincome2,593.62160,030.46Less:Non-operatingexpense349,129.52IV.Totalprofit(Lossislistedwith“-”)-6,631,450.42755,974.01Less:IncometaxexpenseV.Netprofit(Netlossislistedwith“-”)-6,631,450.42755,974.01(i)Classifybybusinesscontinuity

1.continuousoperatingnetprofit(netlosslistedwith‘-”)-6,631,450.42755,974.01

2.terminationofnetprofit(netlosslistedwith‘-”)

(ii)Classifybyownership

1.Netprofitattributabletoowner’sofparentcompany-6,631,450.42755,974.01

2.Minorityshareholders’gainsandlosses

VI.Netafter-taxofothercomprehensiveincomeNetafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss

1.Changesofthedefinedbenefitplansthatre-measured

2.Othercomprehensiveincomeunderequitymethodthatcannot

betransfertogain/loss

3.Changeoffairvalueofinvestmentinotherequityinstrument

4.Fairvaluechangeofenterprise'screditrisk

5.Other

(ii)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss

1.Othercomprehensiveincomeunderequitymethodthatcan

transfertogain/loss

2.Changeoffairvalueofotherdebtinvestment

3.Amountoffinancialassetsre-classifytoothercomprehensive

income

4.Creditimpairmentprovisionforotherdebtinvestment

2020

5.Cashflowhedgingreserve

6.Translationdifferencesarisingontranslationofforeigncurrency

financialstatements

7.Other

Netafter-taxofothercomprehensiveincomeattributabletominorityshareholdersVII.Totalcomprehensiveincome-6,631,450.42755,974.01

TotalcomprehensiveincomeattributabletoownersofparentCompany-6,631,450.42755,974.01TotalcomprehensiveincomeattributabletominorityshareholdersVIII.Earningspershare:

(i)Basicearningspershare-0.01820.0021(ii)Dilutedearningspershare-0.01820.0021LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren

4.ProfitstatementofparentCompany

InRMBItem2020semi-annual2019semi-annualI.Operatingincome4,981,872.0014,241,961.04Less:Operatingcost5,052,678.435,514,477.93Taxesandsurcharge182,132.20383,479.50Salesexpenses2,095,194.242,809,991.94Administrationexpenses4,200,735.355,071,800.21R&DexpensesFinancialexpenses-1,458.93-133,233.30Including:interestexpenses76,128.55

Interestincome89,063.27151,938.33Add:otherincome262,840.35Investmentincome(Lossislistedwith“-”)Including:InvestmentincomeonaffiliatedCompanyandjointventure

Theterminationofincomerecognitionforfinancialassetsmeasuredbyamortizedcost(Lossislistedwith“-”)

Netexposurehedgingincome(Lossislistedwith“-”)Changingincomeoffairvalue(Lossislistedwith“-”)

2020

Lossofcreditimpairment(Lossislistedwith“-”)Lossesofdevaluationofasset(Lossislistedwith“-”)Incomeondisposalofassets(Lossislistedwith“-”)II.Operatingprofit(Lossislistedwith“-”)-6,284,568.94595,444.76

Add:Non-operatingincome2,593.62160,030.46Less:Non-operatingexpense349,129.52III.TotalProfit(Lossislistedwith“-”)-6,631,104.84755,475.22Less:IncometaxIV.Netprofit(Netlossislistedwith“-”)-6,631,104.84755,475.22(i)continuousoperatingnetprofit(netlosslistedwith‘-”)-6,631,104.84755,475.22(ii)terminationofnetprofit(netlosslistedwith‘-”)V.Netafter-taxofothercomprehensiveincome(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss

1.Changesofthedefinedbenefitplansthatre-measured

2.Othercomprehensiveincomeunderequitymethodthatcannotbe

transfertogain/loss

3.Changeoffairvalueofinvestmentinotherequityinstrument

4.Fairvaluechangeofenterprise'screditrisk

5.Other

(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss

1.Othercomprehensiveincomeunderequitymethodthatcantransfer

togain/loss

2.Changeoffairvalueofotherdebtinvestment

3.Amountoffinancialassetsre-classifytoothercomprehensive

income

4.Creditimpairmentprovisionforotherdebtinvestment

5.Cashflowhedgingreserve

6.Translationdifferencesarisingontranslationofforeigncurrency

financialstatements

7.Other

VI.Totalcomprehensiveincome-6,631,104.84755,475.22VII.Earningspershare:

(i)Basicearningspershare-0.01820.0021(ii)Dilutedearningspershare-0.01820.0021

2020

5.ConsolidatedCashFlowStatement

InRMBItem2020semi-annual2019semi-annualI.Cashflowsarisingfromoperatingactivities:

Cashreceivedfromsellingcommoditiesandprovidinglaborservices5,200,787.1014,988,120.25NetincreaseofcustomerdepositandinterbankdepositNetincreaseofloanfromcentralbankNetincreaseofcapitalborrowedfromotherfinancialinstitutionCashreceivedfromoriginalinsurancecontractfeeNetcashreceivedfromreinsurancebusinessNetincreaseofinsuredsavingsandinvestmentCashreceivedfrominterest,commissionchargeandcommissionNetincreaseofcapitalborrowedNetincreaseofreturnedbusinesscapitalNetcashreceivedbyagentsinsaleandpurchaseofsecuritiesWrite-backoftaxreceived12,691.70Othercashreceivedconcerningoperatingactivities501,830.361,105,441.88Subtotalofcashinflowarisingfromoperatingactivities5,715,309.1616,093,562.13

Cashpaidforpurchasingcommoditiesandreceivinglaborservice2,862,000.804,468,726.47NetincreaseofcustomerloansandadvancesNetincreaseofdepositsincentralbankandinterbankCashpaidfororiginalinsurancecontractcompensationNetincreaseofcapitallentCashpaidforinterest,commissionchargeandcommissionCashpaidforbonusofguaranteeslipCashpaidto/forstaffandworkers5,523,279.646,921,639.62Taxespaid311,265.461,139,283.59Othercashpaidconcerningoperatingactivities1,807,954.182,294,495.80Subtotalofcashoutflowarisingfromoperatingactivities10,504,500.0814,824,145.48Netcashflowsarisingfromoperatingactivities-4,789,190.921,269,416.65II.Cashflowsarisingfrominvestingactivities:

CashreceivedfromrecoveringinvestmentCashreceivedfrominvestmentincomeNetcashreceivedfromdisposaloffixed,intangibleandotherlong-term

300.0068,670.00

2020

assetsNetcashreceivedfromdisposalofsubsidiariesandotherunitsOthercashreceivedconcerninginvestingactivitiesSubtotalofcashinflowfrominvestingactivities300.0068,670.00Cashpaidforpurchasingfixed,intangibleandotherlong-termassets4,541,624.47591,546.00CashpaidforinvestmentNetincreaseofmortgagedloansNetcashreceivedfromsubsidiariesandotherunitsobtainedOthercashpaidconcerninginvestingactivitiesSubtotalofcashoutflowfrominvestingactivities4,541,624.47591,546.00Netcashflowsarisingfrominvestingactivities-4,541,324.47-522,876.00III.CashflowsarisingfromfinancingactivitiesCashreceivedfromabsorbinginvestmentIncluding:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiariesCashreceivedfromloans19,791,474.22OthercashreceivedconcerningfinancingactivitiesSubtotalofcashinflowfromfinancingactivities19,791,474.22CashpaidforsettlingdebtsCashpaidfordividendandprofitdistributingorinterestpaying51,265.51Including:DividendandprofitofminorityshareholderpaidbysubsidiariesOthercashpaidconcerningfinancingactivitiesSubtotalofcashoutflowfromfinancingactivities51,265.51Netcashflowsarisingfromfinancingactivities19,740,208.71IV.InfluenceoncashandcashequivalentsduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents10,409,693.32746,540.65Add:Balanceofcashandcashequivalentsattheperiod-begin7,422,939.8915,364,355.30VI.Balanceofcashandcashequivalentsattheperiod-end17,832,633.2116,110,895.95

6.CashFlowStatementofParentCompany

InRMBItem2020semi-annual2019semi-annualI.Cashflowsarisingfromoperatingactivities:

2020

Cashreceivedfromsellingcommoditiesandprovidinglaborservices5,200,787.1014,988,120.25Write-backoftaxreceived12,691.70Othercashreceivedconcerningoperatingactivities501,815.941,104,683.09Subtotalofcashinflowarisingfromoperatingactivities5,715,294.7416,092,803.34Cashpaidforpurchasingcommoditiesandreceivinglaborservice2,862,000.804,468,726.47Cashpaidto/forstaffandworkers5,523,279.646,921,639.62Taxespaid311,217.661,139,283.59Othercashpaidconcerningoperatingactivities1,807,594.182,294,235.80Subtotalofcashoutflowarisingfromoperatingactivities10,504,092.2814,823,885.48Netcashflowsarisingfromoperatingactivities-4,788,797.541,268,917.86II.Cashflowsarisingfrominvestingactivities:

CashreceivedfromrecoveringinvestmentCashreceivedfrominvestmentincomeNetcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets

300.0068,670.00

NetcashreceivedfromdisposalofsubsidiariesandotherunitsOthercashreceivedconcerninginvestingactivitiesSubtotalofcashinflowfrominvestingactivities300.0068,670.00Cashpaidforpurchasingfixed,intangibleandotherlong-termassets4,541,624.47591,546.00CashpaidforinvestmentNetcashreceivedfromsubsidiariesandotherunitsobtainedOthercashpaidconcerninginvestingactivitiesSubtotalofcashoutflowfrominvestingactivities4,541,624.47591,546.00Netcashflowsarisingfrominvestingactivities-4,541,324.47-522,876.00III.CashflowsarisingfromfinancingactivitiesCashreceivedfromabsorbinginvestmentCashreceivedfromloans19,791,474.22OthercashreceivedconcerningfinancingactivitiesSubtotalofcashinflowfromfinancingactivities19,791,474.22CashpaidforsettlingdebtsCashpaidfordividendandprofitdistributingorinterestpaying51,265.51OthercashpaidconcerningfinancingactivitiesSubtotalofcashoutflowfromfinancingactivities51,265.51Netcashflowsarisingfromfinancingactivities19,740,208.71

2020

IV.InfluenceoncashandcashequivalentsduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents10,410,086.70746,041.86

Add:Balanceofcashandcashequivalentsattheperiod-begin7,421,452.5914,864,055.73VI.Balanceofcashandcashequivalentsattheperiod-end17,831,539.2915,610,097.59

7.StatementofChangesinOwners’Equity(Consolidated)

ThisPeriod

InRMB

Item

2020semi-annualOwners’equityattributabletotheparentCompany

inorityinterests

Totalowners’

equitySharecapital

Otherequityinstrument

Capitalreserve

Less:

Inventoryshares

Otherco

Mm

prehensiveinco

mm

e

Reasonablereserve

Surplusreserve

Provisionofgeneralrisk

Retainedprofit

OtherSubtotal

Preferredstock

Perpetualcapitalsecurities

Other

I.Balanceattheendofthelastyear

364,100,000.0054,142,850.01-339,756,246.0578,486,603.9678,486,603.96Add:Changesofaccountingpolicy

Errorcorrectionofthelast

2020

period

Enterprisecombineunderthesamecontrol

OtherII.Balanceatthebeginningofthisyear

364,100,000.0054,142,850.01-339,756,246.0578,486,603.9678,486,603.96III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)

-6,631,450.42-6,631,450.42-6,631,450.42(i)Totalcomprehensiveincome

-6,631,450.42-6,631,450.42-6,631,450.42(ii)Owners’devotedanddecreasedcapital

1.Commonshares

investedbyshareholders

2.Capitalinvestedby

holdersofotherequityinstruments

3.Amountreckonedinto

ownersequitywithshare-basedpayment

4.Other

(III)Profitdistribution

1.Withdrawalofsurplus

reserves

2.Withdrawalofgeneral

riskprovisions

3.Distributionfor

owners(orshareholders)

4.Other

(IV)Carryingforwardinternalowners’equity

1.Capitalreserves

conversedtocapital(sharecapital)

2.Surplusreserves

conversedtocapital(sharecapital)

3.Remedyinglosswith

surplusreserve4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome

6.Other

(V)Reasonablereserve

1.Withdrawalinthe

reportperiod

2020

2.Usageinthereport

period(VI)OthersIV.Balanceattheendofthereportperiod

364,100,000.0054,142,850.01-346,387,696.4771,855,153.5471,855,153.54LastPeriod

InRMB

Item

2019semi-annualOwners’equityattributabletotheparentCompany

Minorityinterests

Totalowners’equitySharecapital

Otherequityinstrument

Capitalreserve

Less:

Inventoryshares

Otherco

prehensiveinco

mm

e

R

e

a

s

o

n

a

b

l

e

r

e

s

e

r

v

e

Surplusreserve

Provisionofgeneralrisk

Retainedprofit

Other

Subtotal

Preferredstock

Perpetualcapitalsecurities

Other

I.Balanceattheendofthelastyear

364,100,000.0054,142,850.01-340,454,153.7277,788,696.2977,788,696.29Add:Changesofaccountingpolicy

Errorcorrectionofthelastperiod

Enterprisecombineunderthe

2020

samecontrol

OtherII.Balanceatthebeginningofthisyear

364,100,000.0054,142,850.01-340,454,153.7277,788,696.2977,788,696.29III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)

755,974.01755,974.01755,974.01(i)Totalcomprehensiveincome

755,974.01755,974.01755,974.01(ii)Owners’devotedanddecreasedcapital

1.Commonshares

investedbyshareholders

2.Capitalinvestedby

holdersofotherequityinstruments

3.Amountreckoned

intoownersequitywithshare-basedpayment

4.Other

(III)Profitdistribution

1.Withdrawalof

surplusreserves

2.Withdrawalof

generalriskprovisions

3.Distributionfor

owners(orshareholders)

4.Other

(IV)Carryingforwardinternalowners’equity

1.Capitalreserves

conversedtocapital(sharecapital)

2.Surplusreserves

conversedtocapital(sharecapital)

3.Remedyingloss

withsurplusreserve4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome

6.Other

(V)Reasonablereserve

1.Withdrawalinthe

reportperiod

2020

2.Usageinthereport

period(VI)OthersIV.Balanceattheendofthereportperiod

364,100,000.0054,142,850.01-339,698,179.7178,544,670.3078,544,670.30

8.StatementofChangesinOwners’Equity(ParentCompany)ThisPeriod

InRMB

Item

2020semi-annual

Sharecapital

Otherequityinstrument

Capitalpublicreserve

Less:

Inventoryshares

Otherco

prehensiveinco

mm

e

Reasonablereserve

Surplusreserve

Retainedprofit

OtherTotalowners’equity

Preferredstock

Perpetualcapitalsecurities

Other

I.Balanceattheendofthelastyear364,100,000.0054,142,850.01-339,757,154.2578,485,695.76Add:Changesofaccountingpolicy

ErrorcorrectionofthelastperiodOtherII.Balanceatthebeginningofthisyear364,100,000.0054,142,850.01-339,757,154.2578,485,695.76III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)

-6,631,104.84-6,631,104.84

2020

(i)Totalcomprehensiveincome-6,631,104.84-6,631,104.84(ii)Owners’devotedanddecreasedcapital

1.Commonsharesinvestedbyshareholders

2.Capitalinvestedbyholdersofotherequity

instruments

3.Amountreckonedintoownersequitywith

share-basedpayment

4.Other

(III)Profitdistribution

1.Withdrawalofsurplusreserves

2.Distributionforowners(orshareholders)

3.Other

(IV)Carryingforwardinternalowners’equity

1.Capitalreservesconversedtocapital(share

capital)

2.Surplusreservesconversedtocapital(share

capital)

3.Remedyinglosswithsurplusreserve

4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome

6.Other

(V)Reasonablereserve

1.Withdrawalinthereportperiod

2.Usageinthereportperiod

(VI)OthersIV.Balanceattheendofthereportperiod364,100,000.0054,142,850.01-346,388,259.0971,854,590.92Lastperiod

InRMB

Item

2019semi-annual

Sharecapital

Otherequityinstrument

Capitalpublic

reserve

Less:

Inventorysha

Otherco

prehensive

Reasonablereserve

Surplusreserve

Retainedprofit

Other

Totalowners’

equity

Preferredstock

Perpetualcapit

Other

2020

res

inco

e

alsecuritiesI.Balanceattheendofthelastyear364,100,000.0054,142,850.01-340,454,153.7277,788,696.29Add:ChangesofaccountingpolicyErrorcorrectionofthelastperiodOtherII.Balanceatthebeginningofthisyear364,100,000.0054,142,850.01-340,454,153.7277,788,696.29III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)

755,475.22755,475.22(i)Totalcomprehensiveincome755,475.22755,475.22(ii)Owners’devotedanddecreasedcapital

1.Commonsharesinvestedbyshareholders

2.Capitalinvestedbyholdersofotherequity

instruments

3.Amountreckonedintoownersequitywith

share-basedpayment

4.Other

(III)Profitdistribution

1.Withdrawalofsurplusreserves

2.Distributionforowners(orshareholders)

3.Other

(IV)Carryingforwardinternalowners’equity

1.Capitalreservesconversedtocapital(share

capital)

2.Surplusreservesconversedtocapital(share

capital)

3.Remedyinglosswithsurplusreserve

4Carry-overretainedearningsfromthedefinedbenefitplans5Carry-overretainedearningsfromothercomprehensiveincome

6.Other

(V)Reasonablereserve

1.Withdrawalinthereportperiod

2.Usageinthereportperiod

(VI)OthersIV.Balanceattheendofthereportperiod364,100,000.0054,142,850.01-339,698,678.5078,544,171.51

2020

III.Companyprofile

(I)OverviewHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoasthe"Company")isastandardizedcompanylimitedbysharesestablishedonApril26,1993andrestructuredfromHainanSanyaDadonghaiTourismCentreDevelopmentCo.,Ltd.withtheapprovalofHainanShareholdingSystemPilotGroupofficeviaitsDocumentQiongGuBanZi[1993]No.11.OnMay6,1996,theCompanywasreorganizedandseparatedwiththereplyofHainanSecuritiesManagementOfficebyitsDocumentQiongZhengBan[1996]No.58.OnOctober8,1996andJanuary28,1997,theCompanywasapprovedtorespectivelyissue80millionBsharesand14millionAsharesonShenzhenStockExchangeandlistforsales.OnJune20,2007,theCompanycarriedoutthesplitsharestructurereform.Thenon-tradableshareholdersoftheCompanypaidsharestothetradableshareholdersforobtainingthecirculationrights,andthetradableshareholdersgot3sharesforevery10shares.TheCompanybelongstotourismandcateringserviceindustry.

AsatJune30,2020,theCompany'saccumulativetotalissuedcapitalwas364.1millionsharesandtheCompany'sregisteredcapitalwasRMB364.1million.Legalrepresentative:YuanXiaoping.Unifiedsocialcreditcode:91460000201357188U.Domicile:Dadonghai,HedongDistrict,Sanya.Businessscope:

Accommodationandcateringindustry(limitedtobranches);photography;flowerbonsai,knitwear,generalmerchandise,hardwareandelectricalequipment,chemicalproducts(exceptfranchisedoperations),dailynecessities,industrialmeansofproduction(exceptfranchisedoperations),metalmaterials,machineryequipment;salesoftrain,busandvehicleticketsonanagentbasis,etc.TheCompany'slargestshareholderisLuoniushanCo.,Ltd.(II)Scopetotheconsolidatedfinancialstatements

Asat30June2019,thesubsidiaryincludedintotheCompany'sscopeofconsolidatedfinancialstatementsisasfollows:

NameHainanWengaoTouristResourcesDevelopmentCo.,Ltd.(hereinafterreferredtoas"theWengaoTourism")See“NoteVI.Changesinthescopeofconsolidation"and“NoteVII.Equityinotherentities"fordetailsofthescopeofconsolidatedfinancialstatementsandchangesthereof.ThefinancialstatementswereapprovedbyalldirectorsoftheCompanyfordisclosureonAugust20,2020.IV.Basicforthepreparationofthefinancialstatements

1.Preparationbasis

Basedongoingconcernandaccordingtoactuallyoccurredtransactionsandevents,theCompanypreparedfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises—BasicStandardsandthespecificaccountingstandards,theAccountingStandardsforBusinessEnterprises-ApplicationGuidance,theAccountingStandardsforBusinessEnterprises-Interpretationandotherrelevant

2020

provisions,issuedbytheMinistryofFinance,(hereinafterreferredtocollectivelyasthe"AccountingStandardsforBusinessEnterprises"),aswellasthedisclosureprovisionsoftheRulesfortheCompilationandSubmissionofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15-GeneralRequirementsforFinancialReports.

2.Goingconcern

TheCompanycurrentlyhassufficientworkingcapitalandnormaloperatingconditions.ItisestimatedthattheoperatingactivitiesoftheCompanywillstillcontinueinthenext12months.V.Significantaccountingpoliciesandaccountingestimates

Specificaccountingpoliciesandestimationattention:

AccordingtorelevantregulationsofAccountingStandardsforBusinessEnterprisesandaccountingmechanism,combinedwiththeactualoperatingcharacteristicstoformulatedthecorrespondingaccountingpoliciesandestimates.

1.StatementoncompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanymeetrequirementsoftheAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflecttheconsolidatedandtheCompany’sfinancialpositionasof30June,2020aswellasoperationresultsandcashflowsforthehalfyearof2020.

2.Accountingperiod

TheaccountingyearisfromJanuary1toDecember31incalendaryear.

3.Operatingcycle

TheCompany'soperatingcycleis12months.

4.Reportingcurrency

TheCompanyadoptsRMBasitsreportingcurrency.

5.AccountingTreatmentMethodforBusinessCombinations(underthesame/differentcontrol)Businesscombinationundercommoncontrol:TheassetsandliabilitiesacquiredbytheCompanyinbusinesscombinationsaremeasuredatbookvaluesofassetsandliabilitiesofthecombinee(includingthegoodwillarisingfromtheacquisitionofthecombineebytheultimatecontroller)intheconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestockpremiuminthecapitalreservesisadjustedaccordingtothedifferencebetweenthebookvalueofthenetassetsacquiredinbusiness

2020

combinationandthebookvalueoftheconsiderationpaidforthecombination(ortotalparvalueofsharesissued).Ifthereisnosufficientstockpremiuminthecapitalreservesforwrite-downs,theretainedearningsshallbeadjusted.Businesscombinationnotundercommoncontrol:TheCompanyshall,ontheacquisitiondate,measuretheassetssurrenderedandliabilitiesincurredorassumedbytheCompanyforabusinesscombinationattheirfairvalues.Thedifferencebetweenthefairvalueandtheirbookvalueshallbeincludedinthecurrentprofitorloss.TheCompanyshallrecognizethedifferenceofthecombinationcostsinexcessofthefairvalueoftheidentifiablenetassetsacquiredfromtheacquireeasgoodwill.TheCompanyshallrecognizethedifferenceofthecombinationcostsinshortofthefairvalueoftheidentifiablenetassetsacquiredfromtheacquireeinthecurrentprofitorlossafterreview.Theauditing,legalservices,consultingandotherintermediaryservicefeesaswellasotherrelevantdirectexpensesforbusinesscombinationwillbeincludedinthecurrentprofitorlossatoccurrence;thetransactioncostsfortheissueofequitysecuritiesshallbeusedtowritedownequities.

6.Preparationmethodsofconsolidatedfinancialstatements

1)Scopeofconsolidation

ThescopeofconsolidatedfinancialstatementsoftheCompanyisdeterminedonthebasisofcontrol,andallitssubsidiaries(includingtheinvestee'spartiblepartthatisundercontroloftheCompany)shallbeincludedintheconsolidatedfinancialstatements.

2)Proceduresofconsolidation

TheCompanypreparestheconsolidatedfinancialstatementsbasedonfinancialstatementsofitselfanditssubsidiariesandaccordingtootherrelevantinformation.Uponpreparationofconsolidatedfinancialstatements,theCompanyshalldeemthewholegroupasawholeaccountingentity,andreflectstheoverallfinancialposition,operatingresultsandcashflowsofthegroupinaccordancewithrelevantrequirementsforrecognition,measurementandpresentationasstatedintheAccountingStandardsforBusinessEnterprisesaswellasuniformaccountingpolicies.AllthesubsidiarieswithintheconsolidationscopeofconsolidatedfinancialstatementsshalladoptthesameaccountingpoliciesandaccountingperiodsasthoseoftheCompany.IftheaccountingpoliciesoraccountingperiodsofasubsidiaryaredifferentfromthoseoftheCompany,theconsolidatedfinancialstatementsofthesubsidiary,uponpreparationofconsolidatedfinancialstatements,shallbeadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany.Forthesubsidiariesacquiredthroughbusiness

2020

combinationnotunderthesamecontrol,adjustmentstotheirfinancialstatementsshallbemadebasedonthefairvaluesofnetidentifiableassetsontheacquisitiondate.Forasubsidiaryacquiredthroughbusinesscombinationundercommoncontrol,adjustmenttoitsfinancialstatementsshallbemadebasedonthebookvaluesofitsassetsandliabilities(includinggoodwillformedintheacquisitionofthesubsidiarybyitsultimatecontroller)aspresentedinthefinancialstatementsoftheultimatecontroller.Theshareofowners'equity,currentnetprofitsandlosses,andcurrentcomprehensiveincomeofsubsidiariesattributabletominorityownersshallberespectivelyandseparatelylistedundertheowner'sequityitemofaconsolidatedbalancesheet,thenetprofititemofaconsolidatedincomestatement,andthetotalcomprehensiveincomeinaconsolidatedincomestatement.Wherethecurrentlossessharedbyaminorityshareholderofasubsidiaryexceedsthebalancesarisingfromthesharesenjoyedbytheminorityshareholderintheowners'equityofthesubsidiaryatthebeginningoftheperiod,minorityequityshallbewrittendownaccordingly.

(1)Increaseofsubsidiariesorbusiness

Duringthereportingperiod,iftheCompanyacquiredsubsidiariesorbusinessfromthebusinesscombinationundercommoncontrol,thebeginningbalanceintheconsolidatedstatementoffinancialpositionshallbeadjusted;therevenue,expensesandprofitsofthenewlyacquiredsubsidiariesorbusinessfromthebeginningtotheendofthereportingperiodshallbeincludedintotheconsolidatedincomestatement;thecashflowsofthenewlyacquiredsubsidiariesorbusinessfromthebeginningtotheendofthereportingperiodshallbeincludedintheconsolidatedstatementofcashflow.Relevantitemsinthecomparativefinancialstatementsofthesubsidiariesshallbeadjustedaccordingly,asifthereportingentityafterthebusinesscombinationexistsatthetimewhentheultimatecontrollerhasthecontrolpower.Wherecontrolcanbeexercisedontheinvesteeunderthecommoncontrolforadditionalinvestmentorotherreasons,adjustmentwillbemadeasifallpartiesinvolvedinthecombinationexistatthebeginningofthecontrolbytheultimatecontroller.Equityinvestmentsheldbeforethecontroloverthecombinedpartyisobtained,therelatedgainsandlosses,othercomprehensiveincomeaswellasotherchangesinnetassetsrecognizedfromthelaterofthedatewhentheoriginalequityisobtainedorthedatewhentheacquirerandtheacquireeareunderthesamecontrol,tothecombinationdatewillrespectivelywritedowntheretainedearningsorcurrentprofitorlossinthecomparativestatements.Duringthereportingperiod,iftheCompanyincreasedsubsidiariesorbusinessfrombusinesscombinationsnotundercommoncontrol,thebeginningbalanceintheconsolidatedbalancesheetshallnotbeadjusted;therevenue,expensesandprofitsofthesubsidiariesorbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedincomestatement;cashflowsofthesubsidiariesand

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businessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedstatementofcashflows.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,itshallre-measureequityoftheacquireeheldbeforetheacquisitiondateatthefairvalueofsuchequityontheacquisitiondateandincludethedifferenceofthefairvalueandbookvalueintheinvestmentincomeintheyear.Whereequityoftheacquireeheldbeforetheacquisitiondateinvolvesinothercomprehensiveincomeaccountedforunderequitymethodandotherchangesinowners'equityotherthannetprofitsorlosses,othercomprehensiveincomeandprofitdistribution,therelevantothercomprehensiveincomeandotherchangesinowners'equityshallbetransferredtoinvestmentincomeintheyearwhichtheacquisitiondatefallsin,exceptforothercomprehensiveincomefromchangesarisingfromre-measurementofnetliabilitiesornetassetsofdefinedbenefitplanbytheinvestee.

(2)Disposalofsubsidiariesorbusiness

GeneralmethodoftreatmentDuringthereportingperiod,wheretheCompanydisposesofanysubsidiaryorbusiness,therevenues,expensesandprofitsofthesubsidiaryorbusinessfromthebeginningperiodtothedisposaldateshallbeincludedintheconsolidatedincomestatement;cashflowsofthesubsidiaryorbusinessfromthebeginningperiodtothedisposaldateshallbeincludedintheconsolidatedstatementofcashflows.WhentheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentorotherreasons,theremainingequityinvestmentafterthedisposalwillbere-measuredbytheCompanyatitsfairvalueonthedateoflossofthecontrol.Thedifferenceofthesumoftheconsiderationacquiredfromdisposalofequitiesandthefairvalueoftheremainingequitieslessthesumofthesharecalculatedattheoriginalshareholdingratioinnetassetsoftheoriginalsubsidiarywhicharecontinuouslycalculatedasoftheacquisitiondateorthecombinationdateandgoodwillshallbeincludedintheinvestmentincomeoftheperiodinwhichthecontrolislost.Othercomprehensiveincomesassociatedwiththeequityinvestmentsoftheoriginalsubsidiary,orthechangesinowners'equityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,aretransferredintoinvestmentincomeoftheperiodwhenthecontrolislost,exceptforothercomprehensiveincomefromthechangeinnetliabilityornetassetduetotheinvestor'sre-measurementofdefinedbenefitplan.WheretheCompanylosesthecontrolofanysubsidiaryduetothedeclineinitsshareholdingratiointhesubsidiary,causedbytheincreaseofinvestmentinthesubsidiarybyotherinvestors,theaccountingtreatmentshallbeconductedaccordingtotheaboveprinciples.DisposalofsubsidiariesbystagesIfthecontrolislostduetodisposaloftheequitiesinsubsidiariesthroughmultipletransactionsbystages,andthe

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terms,conditionsandeconomicimpactofthetransactionsrelatedtotheenterprise'sdisposalofitsinvestmentinthesubsidiariesmeetoneormoreofthefollowingcircumstances,itusuallyindicatesthatmultipletransactionsshouldbeincludedinapackagedealandsubjecttoaccountingprocessingasbelow:

i.Thesetransactionsareconcludedatthesametimeorundertheconsiderationofmutualeffect;ii.Thesetransactionsasawholecanreachacompletebusinessresult;iii.Theoccurrenceofatransactiondependsontheoccurrenceofatleastoneothertransaction;iv.Asingletransactionisuneconomicalbutiseconomicalwhenconsideredtogetherwithothertransactions.Wherevarioustransactionsofdisposalofequityinvestmentsinsubsidiariesuntillossofthecontrolbelongtoapackagedeal,accountingtreatmentshallbemadebytheCompanyonthetransactionsasatransactiontodisposesubsidiariesandlosethecontrol;however,thedifferencebetweeneachdisposalcostandnetassetshareinthesubsidiariescorrespondingtoeachdisposalofinvestmentsbeforelossofthecontrolshouldberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandshouldbetransferredintothecurrentprofitorlossatthelossofthecontrol.Wherevarioustransactionsofdisposalofequityinvestmentsinsubsidiariesuntillossofthecontroldonotbelongtoapackagedeal,beforethelossofthecontrol,accountingtreatmentshallbemadeaccordingtotherelevantpoliciesforpartialdisposalofequityinvestmentsinthesubsidiarywithoutlosingcontrol;atthelossofthecontrol,accountingtreatmentshallbemadeaccordingtogeneraltreatmentmethodsfordisposalofsubsidiaries.

(3)Purchaseofminorityinterestofsubsidiaries

Thesharepremiuminthecapitalreservesundertheconsolidatedbalancesheetwillbeadjustedatthedifferencebetweenthelong-termequityinvestmentacquiredbytheCompanyforthepurchaseofminorityinterestandtheshareofnetassetscalculatedconstantlyfromtheacquisitiondate(orcombinationdate)accordingtothenewlyincreasedshareholdingratio.Wherethesharepremiumisinsufficienttooffset,retainedearningswillbeadjusted.

(4)PartialdisposalofequityinvestmentsinsubsidiarieswithoutlosingcontrolThesharepremiuminthecapitalreservesundertheconsolidatedbalancesheetwillbeadjustedatthedifferencebetweentheproceedsachievedfromthepartialdisposaloflong-termequityinvestmentsinsubsidiariesandtheshareofnetassetsofsubsidiariesattributabletotheCompanycorrespondingtothedisposaloflong-termequityinvestmentsandcalculatedconstantlyfromtheacquisitiondateorcombinationdate,withoutlosingthecontrol.Wherethesharepremiumisinsufficienttowritedown,theretainedearningswillbeadjusted.

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7.ClassificationandaccountingtreatmentofjointventurearrangementsJointventurearrangementsareclassifiedintojointoperationandjointventure.JointoperationrefersthejointventurearrangementwheretheCompanyisajointventurerandenjoysassetsrelevantthejointventurearrangementandassumesliabilitiesrelevanttothesame.TheCompanyrecognizesthefollowingitemsrelatedtoitsshareofbenefitsinthejointoperationandconductaccountingtreatmentinaccordancewithrelevantaccountingstandardsforbusinessenterprises:

(1)AssetspeculiartotheCompanyandassetsjointlyownedbytheCompanybasedonsharesheld;

(2)LiabilitiesundertakenbytheCompanysolelyandliabilitiesjointlyundertakenbytheCompanybasedonsharesheld;

(3)RevenuefromthesalesofoutputshareenjoyedbytheCompanyinthejointoperation;

(4)RevenuefromthesalesofthejointoperationoutputbasedonthesharesheldbytheCompany;and

(5)Separatecosts,andcostsforthejointoperationbasedonthesharesheldbytheCompany.

8.Recognitioncriteriaofcashandcashequivalents

Forthepurposeofpreparingthestatementofcashflows,theterm“cash”referstothecashonhandandtheunrestricteddepositoftheCompany.Theterm“cashequivalents”referstoshort-term(maturingwithinthreemonthsfromacquisition)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.

9.ForeigncurrencybusinessandforeigncurrencystatementconversionForeigncurrencytransactionswillbetranslatedatthespotexchangerateonthetransactiondateandbeaccountedforatRMB.Thebalanceofforeigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdateandtheexchangedifferencesarisingtherefromshallbeincludedinthecurrentprofitandloss,exceptthoseexchangedifferencesarisingfromthespecialborrowingsofforeigncurrencyrelatedtotheacquiredandconstructedassetsqualifiedforcapitalizationthatwillbecapitalizedattheborrowingexpenses.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostsshallstillbeconvertedatthespotexchangerateswhenthetransactionsoccur,withoutchangingthefunctionalcurrencyamount.Foreigncurrencynon-monetaryitemsmeasuredatfairvalueshallbetranslatedatthespotexchangeratesonthedaywhenthefairvalueisdetermined.Theexchangedifferencearisingtherefromisincludedinthecurrentprofitandlossorcapitalreserves.

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10.Financialinstruments

Financialinstrumentsincludefinancialassets,financialliabilitiesandequityinstruments.

1)Classificationoffinancialinstruments

Uponinitialrecognition,financialassetsandfinancialliabilitiesareclassifiedinto:financialassetsorfinancialliabilitiesmeasuredatfairvaluethroughcurrentprofitandloss,includingfinancialassetsorfinancialliabilitiesheldfortradingandfinancialassetsorfinancialliabilitiesdirectlydesignatedtobemeasuredatfairvaluethroughcurrentprofitandloss;held-to-maturityinvestments;receivables;available-for-salefinancialassets;andotherfinancialliabilities,etc.

2)Recognitionandmeasurementoffinancialinstruments

(1)Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossFinancialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossareinitiallyrecognizedatthefairvalueuponacquisition(netofcashdividendsdeclaredbutnotyetpaidorbondinterestduebutnotyetreceived)andtherelatedtransactioncostsareincludedincurrentprofitandloss.Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.Changeinfairvaluesisincludedinthecurrentprofitandlossattheendoftheperiod.Thedifferencebetweenthefairvalueandtheinitialbook-entryvalueisrecognizedasinvestmentincomeupondisposal;meanwhile,adjustmentsaremadetoprofitsorlossesfromchangesinfairvalues.

(2)Held-to-maturityinvestments

Held-to-maturityinvestmentsareinitiallyrecognizedatthesumofthefairvalue(netofbondinterestduebutnotyetreceived)andrelatedtransactioncostsuponacquisition.Theinterestincomeiscalculatedandrecognizedaccordingtoamortizedcostsandeffectiveinterestrates(aspercouponratesifthedifferencebetweeneffectiveinterestratesandcouponratesissmall)duringtheholdingperiod,andisincludedintheinvestmentincome.Theeffectiveinterestratesaredetermineduponacquisitionandremainunchangedduringtheexpectedremainingperiod,orashorterperiodifapplicable.Upondisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueoftheinvestmentisrecognizedininvestmentincome.

(3)Receivables

Forcreditor’srightsreceivablearisingfromexternalsalesofgoodsorrenderingofservicebytheCompanyandothercreditor'srightsofotherenterprises(excludingliabilityinstrumentsquotedinanactivemarket)heldbytheCompany,includingaccountsreceivable,otherreceivables,notesreceivable,prepaymentandothers,theinitialrecognitionamountshallbethecontractpriceoragreementpricereceivablefrompurchasingparty;forthosewithfinancingnature,theyareinitiallyrecognizedattheirpresentvalues.Uponrecoveryordisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueofthereceivablesisrecognizedincurrentprofitandloss.

(4)Available-for-salefinancialassets

Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandlossareinitiallyrecognized

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atthefairvalueandrelatedtransactionexpensesuponacquisition(netofcashdividendsdeclaredbutnotyetpaidorbondinterestduebutnotyetreceived).Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.Theinterestorcashdividendsshouldbemeasuredatfairvalueandtheirchangesinfairvalueshouldbeincludedinothercomprehensiveincome.However,foranequityinstrumentinvestmentthathasnoquotedpriceinanactivemarketandwhosefairvaluecannotbereliablymeasured,andforderivativefinancialassetlinkedtothesaidequityinstrumentinvestmentandsettledbydeliveryofthesameequityinstrument,theyshallbemeasuredatcost.Differencebetweentheproceedsandthebookvalueofthefinancialassetsisrecognizedasinvestmentprofitorlossupondisposal;meanwhile,amountofdisposalcorrespondingtotheaccumulatedchangeinfairvaluewhichisoriginallyanddirectlyincludedinothercomprehensiveincomeshallbetransferredoutandrecognizedasinvestmentgainsorlosses.

(5)Otherfinancialliabilities

Otherfinancialliabilitiesareinitiallyrecognizedatthesumoffairvalueandtransactionexpenses,andsubsequentlymeasuredatamortizedcosts.Subsequentmeasurementisconductedattheamortizedcost.

3)Recognitionandmeasurementoftransferoffinancialassets

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.

4)De-recognitioncriteriaoffinancialliabilities

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Wherethepresentobligationsoffinancialliabilitieshavebeendischargedinwholeorinpart,thefinancialliabilityisderecognizedoranypartthereofwillbederecognized;iftheCompanysignsanagreementwithcreditorstoreplacetheexistingfinancialliabilitiesbyundertakingnewfinancialliabilities,andthenewfinancialliabilitiesaresubstantiallydifferentfromtheexistingonesintermsofcontractterms,theexistingfinancialliabilitieswillbederecognized,andatthesametime,thenewfinancialliabilitywillberecognized.Wheresubstantivechangesaremadetothecontracttermsofexistingfinancialliabilityinwholeorinpart,theexistingfinancialliabilitiesorpartthereofwillbederecognized,andthefinancialliabilitythetermsofwhichhavebeenmodifiedwillberecognizedasanewfinancialliability.Wherefinancialliabilitiesarederecognizediswholeorinpart,thedifferencebetweenthebookvalueofthefinancialliabilitiesderecognizedandtheconsiderationpaid(includingnon-cashassetstransferredoutornewfinancialliabilitiesborne)willbeincludedintocurrentprofitandloss.WheretheCompanyrepurchasespartofafinancialliability,theentirebookvalueofthefinancialliabilityshallbesplitintothederecognizedpartandcontinuously-recognizedpartaccordingtotheirrespectiverelativelyfairvaluesontherepurchasedate.Thedifferencebetweenthebookvalueofthederecognizedpartandtheconsiderationpaid(includingnon-cashassetstransferredoutornewfinancialliabilitiesassumed)shallbeincludedinthecurrentprofitandloss.

5)MethodofdeterminingthefairvalueoffinancialassetsandfinancialliabilitiesThefairvalueofafinancialinstrument,forwhichthereisanactivemarket,isthepricesquotedforittherein.Fairvalueofafinancialinstrumenthavingnoactivemarketshallbedeterminedbyusingvaluationtechniques.Atthetimeofvaluation,theCompanyadoptsthetechniquesthatareapplicableinthecurrentsituationandsupportedbyenoughavailabledataandotherinformation,selectstheinputvaluesthatareconsistentwiththefeaturesofassetsorliabilitiesasconsideredbymarketparticipantsinrelevantassetorliabilitytransactions,andgivesprioritytouserelevantobservableinputs.Theunobservableinputsareusedonlyunderthecircumstancewhenitisimpossibleorunobservableinputstoobtainrelevantobservableinputs.

6)TestingandaccountingmethodsofimpairmentoffinancialassetsAccountingpoliciesapplicableasof1January2019TheCompanyestimates,individuallyorincombination,theexpectedcreditlossesoffinancialassetsmeasuredatamortizedcostandfinancialassets(debtinstruments)measuredatfairvaluewhosechangesareincludedinothercomprehensiveincome,takingintoaccountallreasonableandevidence-basedinformation,includingforward-lookinginformation.Themeasurementofexpectedcreditlossesdependonwhetherthecreditriskoffinancialassetshasincreasedsignificantlysincetheinitialrecognition.Ifthecreditriskofthefinancialinstrumentshasincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentfortheentirelifeoftheinstrument.Ifthecreditriskofthefinancialinstrumentshasnotincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentinthenext12months.Theincreaseorrolloveramountofthelossprovisionresultingtherefromshallberecordedinthecurrentprofitandlossasanimpairmentlossorgain.

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Thecreditriskoftheinstrumentisgenerallydeemedtohaveincreasedsignificantlyifthedefaultismorethan30days,unlessthereisconclusiveevidencethatthecreditriskoftheinstrumenthasnotincreasedsignificantlysincetheinitialconfirmation.Ifthecreditriskofthefinancialinstrumentislowonthebalancesheetdate,theCompanyconsidersthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.Ifthereisobjectiveevidencethatthecreditimpairmentofafinancialassethasoccurred,theCompanyshallmakeprovisionfortheimpairmentofthefinancialassetonasinglebasis.

11.Notereceivable

Consistentwiththeaccountsreceivableaccountingpolicy.

12.Accountreceivable

Foraccountreceivables,whetherornottheycontainsignificantfinancingelements,theCompanymeasuresthelossprovisionsaccordingtotheexpectedcreditlossforthewholeduration.Foraccountreceivableshavingobjectiveevidencethatthereisanimpairmentandapplicabletoasingleassessment,shallbesubjectedtoanimpairmenttest,toconfirmtheexpectedcreditloss,andmakeasingleimpairmentprovision.Foraccountreceivableswithoutobjectiveevidenceofimpairment,orwhenasinglefinancialassetcannotbeevaluatedthecreditlossatareasonablecost,theCompanydividesaccountreceivablesintoseveralportfoliosaccordingtothecreditriskcharacteristics,tocalculatetheexpectedcreditlossonthebasisoftheportfolios.Thebasisfordeterminingtheportfoliosisasfollows:

PortfolioNameBasisAccountReceivablesPortfolio1ExternalCustomersforAccountReceivablesAccountReceivablesPortfolio2ConsolidatedRelatedPartyCustomersforAccountReceivablesFortheaccountreceivablesdividedintoportfolios,theCompanyreferstothehistoryofcreditlossexperience,combinedwiththecurrentsituationandtheforecastofthefutureeconomicsituation,topreparetablesofagingofaccountreceivablesandcomparisontablesofexpectedcreditlossrateoftheentireduration,andtocalculatetheexpectedcreditlossForleasereceivables,long-termreceivablesformedbytheCompanythroughthesaleofgoodsortheprovisionofservices,theCompanychoosestoalwaysmeasureitslossprovisionsatanamountequaltotheexpectedcreditlossfortheentireduration.

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Forotherreceivables,ifthecreditriskhasnotsignificantlyincreasedsincetheinitialrecognition,itisinthefirststage.TheCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossinthenext12months.Ifthecreditriskhasincreasedsignificantlysincetheinitialrecognition,butthecreditimpairmenthasnotoccurred,itisinthesecondstage.Ifthecreditimpairmenthasoccurredsincetheinitialrecognition,itisinthethirdstage.TheCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossoftheinstrumentthroughoutitslife.

13.Receivablesfinancing

ConsistentwiththeAccountingStandardsforBusinessEnterprise

14.Otheraccountreceivable

MethodsofdeterminingforexpectedcreditlossesofotherreceivableandaccountingtreatmentMethodsofdeterminingforexpectedcreditlossesofotherreceivableandaccountingtreatmentTheCompanydividesotherreceivablesintoseveralportfoliosbasedonthecreditriskcharacteristics.Thebasisfordeterminingtheportfolioisasfollows:

PortfolioNameBasisOtherReceivablesPortfolio1Deposit,SecurityDepositandReserveReceivablesOtherReceivablesPortfolio2ReceivablesofAdvancePaymentforAnotherPartyOtherReceivablesPortfolio3UnifiedcollectionofadvancepaymentofotherreceivablesForotherreceivablesdividedintoportfolios,theCompanyreferstohistoricalexperienceincreditloss,combinedwiththecurrentsituationandforecastedfutureeconomicsituation,andbydefaultriskexposureandthecreditlossratewithinnext12monthsorthewholeduration,tocalculatetheexpectedcreditlosses.

15.Inventories

1.Classificationofinventories

Theinventoriesareclassifiedinto:rawmaterials,commoditystocks,low-valueconsumables,foodmaterials,fuels,etc.

2.Measurementofinventoriesdispatched

Thecommoditystocksareaccountedforbasedontheirsellingprices,andthedifferencebetweenthecommoditypurchasingpriceandthesellingpriceisadjustedmonthlybythecomprehensivespreadratemethod.Theinventorymaterialsaremeasuredatactualcostwhenpurchasedandwarehoused,andmeasuredusingthefirst-infirst-outmethodwhenappliedforuseanddispatched.Low-valueconsumablesareamortizedonaone-offbasis

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whenappliedforuse.

3.DeterminingbasisofthenetrealizablevalueofinventoriesandmethodforinventorydepreciationreserveAfterthecomprehensivecheckoftheinventoriesattheendoftheperiod,theinventorydepreciationreservesareprovidedoradjustedattheircostsornetrealizablevalues,whicheverarelower.Forinventoriesfordirectsale,includingcommoditystocksandmaterialsforsale,theirnetrealizablevaluesshallberecognizedattheestimatedsellingpricesminustheestimatedsellingexpensesandtherelevanttaxesandsurchargesinthenormaloperationprocess.Forinventoriesheldtoexecutesalescontractorservicecontract,theirnetrealizablevaluesarecalculatedonthebasisofcontractprice.IfthequantitiesheldbytheCompanyaremorethanthequantitiesorderedinsalescontracts,thenetrealizablevalueoftheexcessportionofinventoriesshallbebasedongeneralsellingprices.Theprovisionsforinventorydepreciationreservearemadeonanindividualbasisattheendoftheperiod;forinventorieswithlargequantitiesandrelativelylowunitprices,theprovisionsforinventorydepreciationreservearemadeonacategorybasis.Forinventoriesrelatedtotheproductportfoliosmanufacturedandsoldinthesamearea,andofwhichthefinalusageorpurposeisidenticalorsimilarthereto,andwhichisdifficulttoseparatefromotheritemsformeasurementpurposes,theprovisionsforinventorydepreciationreservearemadeonaportfoliobasis.Wherethepreviousfactorsaffectingthewritten-downofthevalueofinventoryhavedisappeared,theamountofwrite-downshallberesumedandbereversedfromtheoriginalprovisionforinventorydevaluationwiththereversalbeingincludedincurrentprofitandloss.

4.Inventorysystem

Perpetualinventorysystemisadopted.

5.Amortizationmethodforlow-costconsumablesandpackagingmaterials

(1)Low-costconsumablesareamortizedinalumpsum;

(2)Packagingmaterialsareamortizedinalumpsum.

16.Contractassets

ConsistentwiththeAccountingStandardsforBusinessEnterprise

17.Contractcosts

ConsistentwiththeAccountingStandardsforBusinessEnterprise

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18.Assetsheldforsale

TheCompanyclassifiesnon-currentassetsordisposalgroupsthatmeetthefollowingconditionsasholdingforsale:

(1)Subjecttothepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,thesalecanbeeffectedimmediatelyunderthecurrentcircumstances;

(2)Asaleishighlylikelytooccur,thatis,theCompanyhasmadeadecisiononasaleplanandobtainedafirmpurchasecommitment,andthesaleisexpectedtobecompletedwithinoneyear.Wheretherelevantprovisionsrequiretheapprovaloftherelevantauthorityorregulatoryauthorityofthecompanybeforethesale,theapprovalhasbeenobtained.

19.Investmentindebtobligations

ConsistentwiththeAccountingStandardsforBusinessEnterprise

20.Otherinvestmentindebtobligations

ConsistentwiththeAccountingStandardsforBusinessEnterprise

21.Long-termaccountreceivable

ConsistentwiththeAccountingStandardsforBusinessEnterprise

22.Long-termequityinvestment

JudgmentcriteriaforjointcontrolandsignificantinfluenceJointcontrolreferstothecontrolsharedoveranarrangementinaccordancewiththerelevantstipulations,andthedecision-makingofrelatedactivitiesofthearrangementshouldnotbemadebeforethepartysharingthecontrolrightagreesthesame.WheretheCompanyexercisesjointcontrolovertheinvesteetogetherwithotherpartiestothejointventureandenjoystherightontheinvestee'snetassets,theinvesteeisajointventureoftheCompany.Significantinfluencereferstothepowertoparticipateinmakingdecisionsonthefinancialandoperatingpoliciesofanenterprise,suchasappointingrepresentativetotheboardofdirectorsorsimilarorgansofauthorityoftheinvestee,butnotthepowertocontroltheinvestee,orjointlycontrol,theformulationofsuchpolicieswithotherparties.Whereaninvestingenterpriseisabletohavesignificantinfluencesonaninvestee,theinvesteeisitsassociate.Determinationofinitialinvestmentcost

(1)Long-termequityinvestmentsacquiredthroughbusinesscombinationBusinesscombinationundercommoncontrol:iftheCompanypaysaconsiderationtothecombineeincash,by

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transferringnon-cashassetsorbyassumingdebtsandissuingequitysecurities,theshareofbookvalueofitsowners'equityinthecombineeintheconsolidatedfinancialstatementsoftheultimatecontrollershallberecognized,onthecombinationdate,astheinitialcostofthelong-termequityinvestment.Iftheinvestedentityunderthesamecontrolcanbecontrolledduetoadditionalinvestmentandotherreasons,theinitialinvestmentcostoflong-termequityinvestmentshallbedeterminedaccordingtotheshareofthenetassetsofthemergedpartyinthecarryingvalueoftheconsolidatedfinancialstatementsoftheultimatecontrollingpartyafterthemerger.Thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentonthedateofthemergerandthesumofthebookvalueofthelong-termequityinvestmentbeforethemergertogetherwiththebookvalueofthefurtheracquisitionofthenewlypaidconsiderationofthesharesonthedateofthemergershallbeadjustedfortheequitypremium.Forlong-termequityinvestmentsacquiredfrombusinesscombinationsundercommoncontrol,theinvestmentinitialcostthereofshallberecognizedattheshareofbookvalueofthecombinee'snetassetsintheconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestockpremiumshouldbeadjustedatthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsonthecombinationdateandthesumofthebookvalueoflong-termequityinvestmentsbeforethecombinationandthebookvalueofconsiderationnewlypaidforadditionalshares;ifthereisnosufficientstockpremiumtobewrittendown,theretainedearningsareadjusted.Businesscombinationnotundercommoncontrol:theCompanyrecognizesthecombinationcostdeterminedonthecombinationdateastheinitialcostoflong-termequityinvestments.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,theinitialinvestmentcostshouldbechangedtobeaccountedforunderthecostmethodandrecognizedatthesumofthebookvalueofequityinvestmentsoriginallyheldandnewlyincreasedinvestmentcost.

(2)Long-termequityinvestmentsacquiredbyothermeans

Forlong-termequityinvestmentsacquiredfromcashpayment,theinitialinvestmentcostistheactuallypaidpurchasingcost.Forthelong-termequityinvestmentsacquiredthroughissuingtheequitysecurities,thefairvalueofequitysecuritiesissuedshallberecognizedastheinitialinvestmentcost.Onthepremisethatnon-monetaryassettradeisofcommercialnatureandthefairvalueoftheassettradedinoroutcanbemeasuredreliably,theinitialcostofalong-termequityinvestmenttradedinwithnon-monetaryassetshouldbedeterminedaccordingtothefairvalueoftheassettradedoutandrelevanttaxesandsurchargespayable,unlessanyunambiguousevidenceindicatesthatthefairvalueoftheassettradedinismorereliable;astothenon-monetaryassettradenotmeetingtheaforesaidpremise,thebookvalueoftheassettradedoutandrelevanttaxesandsurchargespayableshouldberecognizedastheinitialcostofthelong-termequityinvestment.Forthelong-termequityinvestmentobtainedthroughdebtrestructuring,itsrecordedvalueshallbedeterminedby

2020

thefairvalueoftheabandonedcreditor'srightsandthetaxesdirectlyattributabletotheassetsandothercosts,andthedifferencebetweenthefairvalueandbookvalueoftheabandonedcreditor'srightsshallberecordedintothecurrentprofitandloss.Subsequentmeasurementsandrecognitionofprofitorloss

(1)Long-termequityinvestmentsaccountedforundercostmethodLong-termequityinvestmentsoftheCompanyinitssubsidiariesareaccountedforbythecostmethod.Exceptfortheactualpricepaidforacquisitionofinvestmentorthecashdividendsorprofitscontainedintheconsiderationwhichhavebeendeclaredbutnotyetdistributed,theCompanyrecognizesthecurrentinvestmentincomebasedonthecashdividendsorprofitsenjoyedbytheCompanyanddeclaredtobedistributedbytheinvestee.

(2)Long-termequityinvestmentsaccountedforundertheequitymethodTheCompany'slong-termequityinvestmentsinitsassociatesandjointventuresarecalculatedundertheequitymethod.Ifthecostofinitialinvestmentisinexcessoftheproportionofthefairvalueofthenetidentifiableassetsintheinvesteewhentheinvestmentismade,thedifferencewillnotbeadjustedtotheinitialcostoflong-termequityinvestment;ifthecostofinitialinvestmentisinshortoftheproportionofthefairvalueofthenetidentifiableassetsintheinvesteewhentheinvestmentismade,thedifferencewillbeincludedinthecurrentprofitandloss.TheCompanyshall,inaccordancewithitsattributableshareofthenetprofitorlossandothercomprehensiveincomerealizedbytheinvestee,respectivelyrecognizetheinvestmentincomeandothercomprehensiveincomeandsimultaneouslyadjustthebookvalueofthelong-termequityinvestment.TheCompanyshall,inthelightoftheprofitsorcashdividendsthattheinvesteedeclarestodistribute,reducethebookvalueofthelong-termequityinvestmentcorrespondingly.Astoanychangeinowners'equityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,theCompanyshalladjustthebookvalueofthelong-termequityinvestmentandincludesuchchangeintotheowners'equity.Whenrecognizingtheattributableshareofnetprofitorlossoftheinvestee,theCompanyshall,basedonthefairvalueofidentifiablenetassetoftheinvesteewhenitobtainstheinvestment,recognizeitsattributableshareofthenetprofitorlossoftheinvesteeaftertheadjustmentaccordingtotheCompany'saccountingpolicyandaccountingperiod.Whenholdingtheinvestment,theinvesteeshouldpreparetheconsolidatedfinancialstatements,itshallaccountfortheinvestmentincomebasedonthenetprofit,othercomprehensiveincomeandthechangesinotherowner'sequityattributabletotheinvestee.TheCompanycalculatesitsattributableprofitorlossofinternaltransactionsthatarenotrealizedarisingamongitself,associatesandjointventuresbasedonitsattributablepercentageandoffsetit,anddeterminestheinvestmentincomeonthatbasis.UnrealizedinternaltransactionlossincurredbetweentheCompanyandtheinvesteeshallberecognizedinfullamountifsuchlossbelongstotheassetimpairment.Fortheassetinvestment

2020

orsaletransactionswithassociatedenterprisesorjointventures,accordingtothenotesregardingto“3.5Accountingtreatmentmethodsforbusinesscombinationsunderandnotundercommoncontrol”and“3.6Preparationmethodsofconsolidatedfinancialstatements”whichshouldbecarriedoutinaccordancewiththerelevantpoliciesiftheassetformsapartoftheCompany'sbusiness.WhentheCompanyconfirmsthatitshouldsharelossesoftheinvestee,treatmentshallbedoneinfollowingsequence:first,writingdownthebookvalueoflong-termequityinvestments.Secondly,ifthebookvalueofthelong-termequityinvestmentsisinsufficienttobeoffset,theCompanyshallcontinuetorecognizetheinvestmentlosstotheextentofthebookvalueoflong-terminterestswhichsubstantiallyformthenetinvestmentintheinvesteeandoffsetthebookvalueofthelong-termreceivableitemsandotheritems.Finally,afteralltheabovetreatments,iftheCompanyisstillresponsibleforanyadditionalliabilityinaccordancewiththeprovisionsstipulatedintheinvestmentcontractsoragreements,provisionsarerecognizedandincludedintocurrentinvestmentlossaccordingtotheobligationsestimatedtoundertake.Iftheinvesteeachievesprofitinsubsequentperiods,theCompanyshall,afterdeductinganyunrecognizedinvestmentlosses,reducebookvalueofestimatedliabilitiesrecognized,restorebookvaluesofotherlong-termequitywhichformnetinvestmentintheinvesteeinsubstance,andoflong-termequityinvestmentaccordingtothereversedsequencedescribedabove,andrecognizeinvestmentincomeatthesametime.

(3)Disposaloflong-termequityinvestments

Forthedisposaloflong-termequityinvestments,thedifferencebetweenthebookvalueandtheactualpricethereofshallbeincludedinthecurrentprofitorloss.Wherealong-termequityinvestmentisaccountedforundertheequitymethod,accountingtreatmentshouldbemadeonthepartwhichisoriginallyincludedinothercomprehensiveincomeaccordingtocorrespondingratiobyusingthesamebasisfortheinvesteetodirectlydisposeoftherelevantassetsorliabilitieswhentheinvestmentsaredisposedof.Owner'sequityrecognizedfromchangesinotherowner'sequityoftheinvesteeotherthannetprofitandloss,othercomprehensiveincomeandtheprofitdistributionshouldbeincludedinthecurrentprofitandlossaccordingtotheproportion.Incasethejointcontrolorsignificantinfluenceovertheinvesteeislostfordisposingpartofequityinvestmentsorotherreasons,theremainingequitywillbechangedtobeaccountedforaccordingtotherecognitionandmeasurementprinciplesoffinancialinstruments,whilethedifferencebetweenthefairvalueandthebookvalueonthedateofthelossofjointcontrolorsignificantinfluenceshouldbeincludedinthecurrentprofitorloss.Astoothercomprehensiveincomerecognizedbasedonmeasurementoftheoriginalequityinvestmentundertheequitymethod,accountingtreatmentshallbemadeonthesamebasisaswouldberequirediftheinvesteehaddirectlydisposedoftheassetsorliabilitiesrelatedtheretowhenmeasurementundertheequitymethodisterminated.Owner'sequityrecognizedfromtheinvestee'schangesinotherowner'sequityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionshouldalltransferredtothecurrentprofitandlosswhentheequity

2020

methodisnolongeradopted.WheretheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentsorotherreasons,whenitpreparesseparatefinancialstatements,theremainingequityafterdisposalthatcanjointlycontrolorhavesignificantinfluenceontheinvesteewillbemeasuredattheequitymethod,andtheremainingequityshouldbedeemedtohavebeenadjustedatequitymethodonacquisition;Iftheremainingequityafterdisposalcannotexercisejointcontrolorsignificantinfluenceovertheinvestee,suchremainingequityshallbesubjecttotheaccountingtreatmentaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedatewhencontrollossesisincludedincurrentprofitorloss.Wheretheequitydisposedofareacquiredthroughbusinesscombinationasaresultofadditionalinvestmentandotherreasons,iftheremainingequitiesafterdisposalarecalculatedunderthecostmethodorequitymethoduponpreparationofseparatefinancialstatements,othercomprehensiveincomeandotherowners'equitiesrecognizedinequityinvestmentsheldbeforetheacquisitiondateasaresultofemploymentofequitymethodforaccountingshallbecarriedforwardprorata;iftheremainingequitiesafterdisposalarecalculatedaccordingtotheprovisionsonRecognitionandMeasurementofFinancialInstruments,othercomprehensiveincomeandotherowners'equitieswillallbecarriedforward.

23.Investmentproperties

MeasurementmodeMeasuredbycostmethodDepreciationoramortizationmethodMeasurementmodeMeasuredbycostmethodDepreciationoramortizationmethodTheinvestmentpropertiesrefertothepropertiesheldforearningrentalsor/andcapitalappreciation,includingleasedlanduseright,landuserightheldfortransferuponappreciation,andleasedbuilding(includingself-builtbuildingsorbuildingsdevelopedforrentingorbuildingsunderconstructionordevelopmentforfuturerenting).TheCompanymeasurestheexistinginvestmentpropertiesbyusingthecostmodel.Forinvestmentpropertymeasuredbyusingthecostmodel,thebuildingsforleaseshallbedepreciatedbyusingpoliciesthesameasusedforfixedassetsoftheCompany,andthelanduserightsforleaseshallbeamortizedbyusingthesamepoliciesasapplicabletointangibleassets.

24.Fixedassets

2020

(1)Recognitioncriteria

Fixedassetsrefertotangibleassetsheldforthepurposeofproducingcommodities,providingservices,rentingorbusinessmanagementwithusefullivesexceedingoneyear.Fixedassetsarerecognizedwhentheysimultaneouslymeetthefollowingconditions:

(1)ItisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintotheCompany;and

(2)Thecostsofthefixedassetscanbemeasuredreliably.

(2)Depreciationmethodoffixedassets

AssettypeDepreciationmethodYearfordepreciationResidualvaluerate

Yearlydepreciation

rateBuildingsandconstructions

Straight-linemethod20-405%4.75%-2.37%Machineryequipment

Straight-linemethod8-205%11.87%-4.75%Electronicentertainmentequipment

Straight-linemethod5-165%19%-5.93%Transportationequipment

Straight-linemethod7-125%13.57%-7.91%OtherequipmentStraight-linemethod85%11.87

(3)Reorganizationbasis,valuationanddepreciationmethodforfinancialleaseassetsIfanyofthefollowingconditionsisstipulatedinthetermsoftheleaseagreementsignedbetweenthecompanyandthelessee,itshallberecognizedasthefinancingleasedassets:

1)Aftertheexpireoftheleaseterm,theownershipoftheleasedassetsshallbevestedinthecompany;

2)Thecompanyhasanoptiontopurchasetheasset,thepurchasepriceisfarlessthanthefairvalueoftheassetwhentheoptionisexercised;

3)Theleasingtermisthemajorityofthelifeoftheleasedasset;

4)Thepresentvalueoftheminimumleasepaymentonthebeginningoftheleasedoesnothavemanydifferencesfromthefairvalueoftheasset;Onthestartingdateofthelease,thecompanytakesthelowerbetweenthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentasthebookvalueoftheleasedasset,andtheminimumleasepaymentasthebookvalueofthelong-termpayable,andthedifferencebetweenthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentastheunrecognizedfinancingfee.

25.Constructioninprogress

Thebook-entryvaluesofthefixedassetsarestatedattotalexpendituresincurredbeforereachingworking

2020

conditionfortheirintendeduse.Whereaconstructioninprogressreachestheworkingconditionforitsintendedusebutthefinalaccountforcompletionisnotmadeyet,itshallbetransferredintofixedassetsfromthedatewhenitreachestheworkingconditionforintendeduseattheestimatedvalueaccordingtotheprojectbudget,constructionpriceoractualcost,andthedepreciationofthesaidfixedassetsshallbeaccruedaccordingtotheCompany'sdepreciationpoliciesapplicabletofixedassets.Afterthefinalaccountforcompletedprojectisdone,theCompanyadjuststheoriginalestimatedvalueofthefixedassetinaccordancewiththeactualcost,butdoesnotadjusttheprovisionforsuchdepreciationthathadbeenaccrued.

26.Borrowingcosts

1.Recognitionprinciplesofcapitalizationofborrowingcosts

Borrowingcostsincludeinterestthereon,amortizationofdiscountsorpremiums,ancillaryexpensesandexchangedifferencesincurredonaccountofforeigncurrencyborrowings,etc.TheborrowingcostsincurredtotheCompanyanddirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalizationshouldbecapitalizedandrecordedintorelevantassetcosts;otherborrowingcostsshouldberecognizedascostsaccordingtotheamountincurredandbeincludedintocurrentprofitandloss.Assetsmeetingthecapitalizationrequirementsrefertofixedassets,investmentpropertiesandinventories,etc.thatneedtobepurchased,constructedorproducedforalongtimetobeavailableforintendeduseorsale.Borrowingcostsmaybecapitalizedonlywhenallthefollowingconditionsaremet:

(1)Assetdisbursements,whichincludethoseincurredbycashpayment,thetransferofnon-cashassetsortheundertakingofinterest-bearingdebtsforacquiringandconstructingorproducingassetseligibleforcapitalization,havealreadybeenincurred;

(2)Borrowingcostshavealreadybeenincurred;and

(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetsfortheirintendeduseorsalehavealreadybeenstarted.

2.Capitalizationperiodofborrowingcosts

Capitalizationperiodreferstotheperiodfromthebeginningofcapitalizationtotheceaseofcapitalization,excludingtheperiodofcapitalizationsuspensionofborrowingcosts.Capitalizationofborrowingcostsshouldceasewhentheacquiredandconstructedorproducedassetseligibleforcapitalizationhavereachedtheworkingconditionfortheirintendeduseorsale.Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchassetsshouldbeceased.

2020

Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchprojectsshouldbeceased.

3.Periodofcapitalizationsuspension

Iftheacquisition,constructionorproductionactivitiesofassetseligibleforcapitalizationareabnormallyinterruptedandsuchconditionlastsformorethanthreemonths,thecapitalizationofborrowingcostsshouldbesuspended;iftheinterruptionisnecessaryproceduresfortheacquired,constructedorproducedassetseligibleforcapitalizationtoreachtheworkingconditionsfortheirintendeduseorsale,theborrowingcostscontinuetobecapitalized.Borrowingcostsincurredduringtheinterruptionarerecognizedasthecurrentprofitorlossandcontinuetobecapitalizeduntiltheacquisition,constructionorproductionoftheassetsrestarts.

4.CalculationmethodofcapitalizationamountofborrowingcostsAsforspecialborrowingsforacquiring,constructingorproducingassetseligibleforcapitalization,borrowingcostsofspecialborrowingsactuallyincurredinthecurrentperiodlesstheinterestincomefromundrawnborrowingsdepositedinthebankorinvestmentincomefromtemporaryinvestmentshouldberecognizedasthecapitalizationamountofborrowingcosts.Asforgeneralborrowingsusedforacquiringandconstructingorproducingassetseligibleforcapitalization,theinterestofgeneralborrowingstobecapitalizedshouldbecalculatedbymultiplyingtheweightedaverageofassetdisbursementsofthepartofaccumulatedassetdisbursementsexceedingspecialborrowingsatendofeachmonthbythecapitalizationrateofusedgeneralborrowings.Thecapitalizationrateiscalculatedbyweightedaverageinterestrateofgeneralborrowings.

27.Biologicalassets

Nil

28.Oil-and-gasassets

Nil

29.Right-of-useassets

Nil

18.Intangibleassets

2020

(1)Valuationmethod,usefullivesandimpairment

1)TheCompanyinitiallymeasuresintangibleassetsatcostonacquisition:

Thecostsofexternallypurchasedintangibleassetsincludepurchaseprices,relevanttaxesandsurchargesandotherdirectlyattributableexpendituresincurredtopreparetheassetsfortheirintendeduses.Ifthepaymentforanintangibleassetisdelayedbeyondthenormalcreditconditionsanditisofthefinancingnature,thecostoftheintangibleassetshallbedeterminedonthebasisofthepresentvalueofthepurchaseprice.Theintangibleassetsacquiredwhichthedebtorusestopaybackthedebtindebtrestructuringshouldberecognizedatthefairvalueoftheintangibleassets.Thedifferencebetweenthebookvalueofrestructureddebtsandthefairvalueofintangibleassetsusedtopaybackthedebtshouldbeincludedinthecurrentprofitorloss;Whentheexchangeofnon-monetaryassetsisofcommercialnatureandthefairvalueoftheassetsreceivedorsurrenderedassetscanbemeasuredreliably,themeasurementshallbebasedonthefairvalue.Ifthefairvalueoftheassetsreceivedorsurrenderedassetscanbemeasuredreliably,thefairvalueofthesurrenderedassetsandrelevanttaxesshouldbepaidastheinitialinvestmentcostoftheintangibleassetsreceived,unlessthereisconclusiveevidencethatthefairvalueoftheassetreceivedismorereliable.Iftheexchangeofnon-monetaryassetsdoesnothavecommercialsubstance,orthefairvalueoftheassetsreceivedorsurrenderedassetscannotbemeasuredreliably,thebookvalueofthesurrenderedassetsandrelatedtaxesshouldbepaidastheinitialinvestmentcostoftheintangibleassetsreceived.

2)Subsequentmeasurement

Theusefullivesoftheintangibleassetsareanalyzedanddeterminedonacquisition.Intangibleassetswithdefiniteusefullivesshallbeamortizedwiththestraight-linemethodwithintheperiodwhentheintangibleassetsgenerateeconomicbenefitsfortheCompany;ifthesaidperiodcannotbeforecast,theintangibleassetsshallbedeemedasthosewithindefiniteusefullivesandshallnotbeamortized.

3)EstimateoftheusefullifeoftheintangibleassetswithdefiniteusefullivesItemEstimatedusefullifeAmortizationmethodBasisLanduseright50yearsStraight-lineamortizationmethodUsefullifeprescribedintheCertificateofLandUseRight

(2)AccountingpolicyofinternalR&Dexpenditures

31.Long-termassetsimpairment

Forthelong-termequityinvestments,investmentproperties,fixedassets,constructioninprogress,intangibleassets,andotherlong-termassetsmeasuredatcostmodel,iftherearesignsofimpairment,animpairmenttestwillbeconductedonthebalancesheetdate.Iftheresultoftheimpairmenttestshowsthattherecoverableamountof

2020

theassetislowerthanitsbookvalue,theprovisionforimpairmentshallbemadeandincludedinimpairmentloss.Therecoverableamountisdeterminedatthehigherofthenetofthefairvaluelessdisposalcostsandthepresentvalueoftheexpectedfuturecashflows.Provisionforassetsimpairmentismadeonindividualassetbasis.Ifitisdifficulttoestimatetherecoverableamountoftheindividualasset,theGroupshallestimatetherecoverableamountoftheassetgroupthattheindividualassetbelongsto.Theassetgroupistheminimumassetgroupthatcanindependentlygeneratethecashinflow.Goodwill,intangibleassetswithuncertainusefullifeandintangibleassetsthathavenotyetreachedtheusablestateshallbetestedforimpairmentatleastattheendofeachyear.TheCompanyconductsthegoodwillimpairmenttest,andthecarryingvalueofthegoodwillformedbytheenterprisemergershallbeallocatedtotherelevantassetgroupinareasonablewayfromthepurchasedate.Ifitisdifficulttoapportiontotherelevantassetgroup,apportiontotherelevantassetgroupportfolio.WhentheCompanyallocatesthebookvalueofgoodwill,itallocatesthegoodwillaccordingtotherelativebenefitsthattherelevantassetgrouporassetgroupportfoliocanobtainfromthesynergeticeffectoftheenterprisemerger,andcarriesoutthegoodwillimpairmenttestonthisbasis.Goodwillintherelevantassetgroupsorcombinationofgroupassetsimpairmenttests,suchastheassetgrouporcombinationofgroupassetsrelatedtogoodwilltherearesignsofimpairment,thefirstdoesnotincludethegoodwilloftheassetgrouporcombinationofgroupassetsimpairmenttest,calculationofrecoverableamount,andcomparedwiththerelatedbookvalue,confirmthecorrespondingimpairmentloss.Goodwilltotheassetgrouporcombinationofgroupassetsforimpairmenttest,comparethebookvalueoftherelevantassetgroupsorcombinationofgroupassets(includingthecontributionofthebookvalueofthegoodwill)withitsrecoverableamount,suchastherelevantassetgroupsorcombinationofgroupassetsrecoverableamountislowerthanitsbookvalue,confirmthegoodwillimpairmentloss.Theaboveassetimpairmentlossshallnotbereversedinsubsequentaccountingperiodsoncerecognized.

32.Long-termdeferredexpenses

Long-termdeferredexpensesrefertovariousexpenseswhichhavebeenalreadyincurredbutwillbeborneinthereportingperiodandinthefuturewithanamortizationperiodofoveroneyear.

1.Amortizationmethod

Long-termdeferredexpensesareamortizedevenlyoverthebeneficialperiod.

2.Amortizationyears

ItemAmortizationyearsHotelexteriordecoration4years

2020

Firestairsrenovation4yearsRenovationofguestroomsinBuildingC,DecorationandrenovationofBuildingA5yearsVillarenovation5yearsSwimmingpoolrenovation,Pavementmodificationprojects5yearsRoofwaterproofingprojects5years

33.Contractliabilities

Nil

34.Employeecompensation

(1)Accountingmethodforshort-termcompensation

DuringtheaccountingperiodwhenemployeesservetheCompany,theactualshort-termcompensationisrecognizedasliabilitiesandincludedincurrentprofitandlossorcostsassociatedwithassets.TheappropriateamountofemployeecompensationpayablewillbedeterminedduringtheaccountingperiodwhentheemployeesprovideservicesfortheCompanybasedonthemedicalinsurance,workinjuryinsuranceandmaternityinsuranceandothersocialinsuranceandhousingfundpaidbytheCompanyforemployees,aswellastradeunionfundsandemployeeeducationfundswithdrawnaccordingtoprovisionsattheaccrualbasisandaccrualratio.Theemployeebenefitsinthenon-monetaryformshallbemeasuredatfairvalue.

(2)Accountingmethodfordismissalwelfare

1)Definedcontributionplans

TheCompanyshallpaythebasicendowmentinsuranceandunemploymentinsurancefortheemployeesaccordingtotherelevantprovisionsofthelocalgovernment.DuringtheaccountingperiodwhentheemployeesprovideservicesfortheCompany,theamountofpaymentshallbecalculatedaccordingtothepaymentbaseandproportionstipulatedbythelocalgovernment,whichshallberecognizedasliabilitiesandrecordedintothecurrentprofitandlossorthecostofrelatedassets.Inadditiontothebasicendowmentinsurance,theCompanyhasalsoestablishedtheenterpriseannuitypaymentsystem(supplementaryendowmentinsurance)/enterpriseannuityplanaccordingtotherelevantpoliciesofthenationalenterpriseannuitysystem.TheCompanyshallpaythefeetothelocalsocialinsuranceinstitution/annuity

2020

planaccordingtoacertainproportionoftheemployee'stotalsalary,andthecorrespondingexpensesshallbeincludedinthecurrentprofitandlossorrelatedassetcost.

2)Definedbenefitplans

Accordingtotheformuladeterminedbythelawofexpectedaccumulativewelfareunits,thecompanywillattributethewelfareobligationsgeneratedbytheestablishedbenefitplantotheperiodduringwhichtheemployeeprovidesservices,andrecordthemintothecurrentprofitandlossorthecostofrelatedassets.Thedeficitorsurplusresultingfromthepresentvalueofthedefinedbenefitplanobligationsminusthefairvalueofthedefinedbenefitplanassetsisrecognizedasthenetliabilityornetassetofadefinedbenefitplan.Ifthereisasurplusinthedefinedbenefitplan,thecompanyshallmeasurethenetassetsofthedefinedbenefitplanbythelowerofthesurplusandtheassetceiling.Alldefinedbenefitplanobligations,includingthoseexpectedtobepaidwithin12monthsoftheendoftheemployee'sannualreportingperiodfortheprovisionofservices,arediscountedbythemarketrateofreturnonTreasurybondsorhigh-qualitycorporatebondsintheactivemarketthatmatchesthedurationandcurrencyofthedefinedbenefitplanobligationsonthebalancesheetdate.Theservicecostsincurredbythedefinedbenefitplanandthenetinterestonthenetliabilitiesornetassetsofthedefinedbenefitplanarerecordedinthecurrentprofitsandlossesorthecostsofrelatedassets.Thechangescausedbythenetliabilitiesornetassetsofthedefinedbenefitplanshallbeaccountedforinothercomprehensiveincome,andshallnotbetransferredbacktotheprofitsandlossesinthesubsequentaccountingperiod.Upontheterminationoftheoriginaldefinedbenefitplan,allthepartspreviouslyaccountedforinothercomprehensiveincomeshallbecarriedforwardtotheundistributedprofitwithinthescopeofequity.Whenestablishingthesettlementofthebenefitplan,thedifferencebetweenthepresentvalueoftheobligationoftheestablishedbenefitplanandthesettlementpricedeterminedonthesettlementdateshallbeusedtoconfirmthesettlementgainsorlosses.

(3)Accountingmethodforpost-employmentbenefits

TheCompanypaysthebasicendowmentinsurancepremiumsandunemploymentinsuranceforemployeesaccordingtotherelevantprovisionsofthelocalgovernments.DuringtheaccountingperiodwhenemployeesservetheCompany,thepaidamountwhichiscalculatedbasedonthepaymentbaseandproportionasstipulatedintheprovisionsofthelocalplaceisrecognizedasliabilitiesandincludedinthecurrentprofitorlossorassets-relatedassetscost.

2020

(4)Accountingmethodforotherlong-termemployeewelfare

35.Leaseliability

Nil

36.Estimatedliabilities

WhentheCompanyinvolvesinproceedings,debtguarantees,onerouscontractsandreorganizationevents,ifsucheventsmayrequiredeliveryofassetsorrenderingofservicesinthefutureandtheamountsofsucheventscanbereliablymeasured,sucheventsarerecognizedasestimatedliabilities.

(1)Recognitioncriteriaofestimatedliabilities

Whenanobligationrelatingtoacontingencymeetsallthefollowingconditionsatthesametime,itisrecognizedasanestimatedliability:

1)SuchobligationisapresentobligationoftheCompany;

2)TheperformanceofthisobligationmayveryprobablyleadtotheflowofeconomicinterestsoutoftheCompany;and

3)Theamountoftheobligationcanbemeasuredreliably.

(2)Measurementmethodofestimatedliabilities

EstimatedliabilitiesoftheCompanyareinitiallymeasuredasthebestestimateofexpensesrequiredfortheperformanceoftherelevantpresentobligations.Whendeterminingthebestestimates,theCompanycomprehensivelyconsiderstherisks,uncertainties,timevalueofmoney,andotherfactorsrelatingtothecontingencies.Ifthetimevalueofmoneyissignificant,thebestestimateswillbedeterminedafterdiscountofrelevantfuturecashoutflows.Thebestestimatesshallbetreatedasfollowsindifferentcircumstances:

Ifthereiscontinuousrange(orinterval)forthenecessaryexpenses,andprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareequal,thebestestimateshouldbedeterminedattheaverageamountofupperandlowerlimitswithintherange.Ifthereisnocontinuousrange(orinterval)forthenecessaryexpenses,orprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareunequalalthoughsucharangeexists,incasethatthecontingencyinvolvesasingleitem,thebestestimateshallbedeterminedatthemostlikelyoutcome;ifthecontingencyinvolvestwoormoreitems,thebestestimatesshouldbedeterminedaccordingtoallthepossibleoutcomeswiththeirrelevantprobabilities.

2020

WhenallorpartoftheexpensesnecessaryforthesettlementofestimatedliabilitiesoftheCompanyareexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertaintobereceived.Thecompensationrecognizedshallnotexceedthebookvalueoftheestimatedliabilities.

37.Share-basedpayment

Nil

38.Otherfinancialinstrumentaspreferredstockandperpetualbondetc.Nil

39.Revenue

Accountingpoliciesusedforrevenuerecognitionandmeasurement

(1)Recognitionandmeasurementprinciplesforrevenuefromsaleofgoods

1)RevenuefromsalesofgoodsisrecognizedwhentheCompanyhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods.

2)TheCompanyretainsneithercontinuousmanagementrightsassociatedwithownershipofthegoodssoldnoreffectivecontroloverthegoodssold.

3)Therelevantamountofincomecanbemeasuredreliably.

4)ItishighlylikelythattheeconomicbenefitsassociatedwiththetransactionwillflowintotheCompany.

5)Andtherelevantamountofcostincurredortobeincurredcanbemeasuredreliably.

(2)RecognitioncriteriaofrevenuefromsaleofgoodsoftheCompanyandspecificjudgmentcriteriaofrecognitiontimeIntheprovisionofhotelhousingservicesatthesametime,theCompanyprovidesgoodstocustomersandwillpreparedailysaleslistafterconfirmingwiththeRoomsDepartmentandthehotelfrontdesk.Basedonthesaleslist,thefinancedepartmentconfirmsthatthemajorrisksandrewardsofownershipofthegoodshavebeentransferredtothecustomerandthenthesalesrevenueisrecognized.

(3)Recognitionandmeasurementprinciplesofrevenuefromrenderingofservice

1)Forthehotelrooms,catering(breakfast)andotherservicestobeprovidedbytheCompany,aftertheyareprovided,andtheCompanycheckswiththesalesdepartmentandthefrontcheck,theCompanywillpreparethedailysalesreportsandaccountsreceivablelisttothefinancedepartment,whichwillreviewthesame,afterwhich,therevenuewillberecognized.

2)Fortherevenuefromrestaurantsandvenuescontractedout,theywillberecognizedinaccordancewiththe

2020

periodstipulatedinthecontractoragreementandthecollectiontiming.

(4)RecognitionofrevenuefromtransferringuserightofassetsWhentheeconomicbenefitsrelatingtothetransactionsispossibletoflowintotheCompanyandtheamountofrevenuecanbemeasuredreliably,revenuesshouldberecognized.Revenuesfromtransferofrighttouseassetsarerecognizedunderthefollowingcircumstances:

1)Interestincomeisdeterminedbasedonthetimewhenthemonetaryfundsarelentandtheeffectiverate.

2)Theamountofrevenuesfromusageisdeterminedbasedonthechargingtimeandmethodasagreedinrelevantcontractoragreement.Differencesinrevenuerecognitionaccountingpoliciescausedbydifferentbusinessmodelsofsimilarbusinesses

40.Governmentgrants

(1)Type

Governmentgrantsrefertothemonetaryornon-monetaryassetsobtainedbytheCompanyfromthegovernmentforfree.Governmentgrantsaredividedintoasset-relatedgovernmentgrantsandincome-relatedgovernmentgrants.Asset-relatedgovernmentgrantsrefertogovernmentgrantsobtainedbytheCompanyforforminglong-termassetsbyacquisition,constructionorothermanners.Income-relatedgovernmentgrantsrefertogovernmentgrantsexcludingtheasset-relatedgovernmentgrants.

(2)Recognitiontimeandmeasurement

Governmentgrantscanberecognizedwhensimultaneouslymeetingthefollowingconditions:

1)Theenterprisecanmeetconditionsattachedtogovernmentgrants;and

2)Theenterprisecanreceivegovernmentgrants.

Ifagovernmentgrantisamonetaryasset,itshallbemeasuredattheamountreceivedorreceivable.Governmentgrantsshallbemeasuredatreceivableswhenthereisstrongevidenceattheendoftheperiodthatsuchgrantscomplywiththerelevantconditionsprescribedbythefinancialsupportpoliciesandthefinancialsupportfundsareexpectedtobereceived.Otherfinancialgrantsshallbeconfirmedaccordingtotheamountofmoneyreceived.Ifgovernmentgrantsarenon-monetaryassets,theyshallbemeasuredatitsfairvalue;andifthefairvaluecannotbeobtainedinareliableway,theyshallbemeasuredatanominalamount.

(3)Accountingtreatment

Asset-relatedgovernmentgrantsshallbeusedtooffsetthebookvalueofrelevantassetsorrecognizedasdeferredincome.Ifasset-relatedgovernmentgrantsarerecognizedasdeferredincome,theyshallbeincludedinprofitorlossbystagesbyareasonableandsystematicmethodwithintheusefullivesofrelevantassets.(Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbeincludedintootherincomeinaccordancewiththe

2020

businessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.)Forgovernmentgrantsassociatedwithincomethatareusedtorecoverrelevantcostsorlossesoftheenterpriseinsubsequentperiodarerecognizedasdeferredincomeandincludedinthecurrentprofitorlosswhenrelevantcostsorlossesarerecognized.(Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbeincludedintootherincomeinaccordancewiththebusinessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.)Ifgovernmentgrantsrelatedtoincomeareusedtocompensatetherelevantcostsandlossesthathaveoccurred,suchgovernmentgrantsshouldbedirectlyincludedinthecurrentprofitorloss.(Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbeincludedintootherincomeinaccordancewiththebusinessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.)ThediscountinterestofpreferentialpolicyloansobtainedbytheCompanyshallbedividedintothefollowingtwocasesforaccountingtreatment:

1)Ifthefinancedepartmentallocatesthediscountinterestfundtothelendingbank,andthelendingbankprovidestheloantotheCompanyatthepreferentialpolicyinterestrate,theCompanyshalltaketheactualamountoftheloanreceivedasthebookvalueoftheloan,andcalculatetherelevantborrowingcostsaccordingtotheloanprincipalandthepreferentialpolicyinterestrate.

2)IfthefinancedepartmentdirectlyallocatesthediscountinterestfundstotheCompany,theCompanyshalldeductthecorrespondingdiscountinterestfromtherelevantborrowingcosts.

41.Deferredtaxassetsanddeferredtaxliabilities

Deferredtaxassetsarerecognizedfordeductibletemporarydifferencestotheextentthatitshallnotexceedthetaxableincomeprobablyobtainedinfutureperiodthatcanbeusedfordeductingthedeductibletemporarydifferences.Taxabletemporarydifferencesarerecognizedasdeferredtaxliabilitiesinadditiontospecialcircumstances.Specialcircumstancesinwhichdeferredincometaxassetsordeferredincometaxliabilitiesshallnotberecognizedinclude:theinitialrecognitionofgoodwill;othertransactionsormattersexcludingbusinesscombinations,whichaffectneitheraccountingprofitsnorthetaxableincome(ordeductiblelosses)whenoccurred.WhentheCompanyhasthestatutoryrighttodosettlementwiththenetamounts,andhastheintentiontodosoortherecoveryofassetsandthesettlementofliabilitiesareachievedsimultaneously,theCompanyshallpresentits

2020

currentincometaxassetsandcurrentincometaxliabilitiesatthenetamountsastheresultofoneoffsettinganother.WhentheCompanyhasthelegalrightstobalanceincometaxassetsandincometaxliabilitiesforthecurrentperiodwithnetsettlement,anddeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxwhichareimposedonthesametaxpayingsubjectbythesametaxcollectionauthorityorondifferenttaxpayingsubjects,but,ineachimportantfutureperiodinconnectionwiththereverseofdeferredincometaxassetsandliabilities,theinvolvedtaxpayingsubjectintendstobalanceincometaxassetsandliabilitiesforthecurrentperiodwithnetsettlementatthetimeofobtainingassetsanddischargingliabilities,deferredincometaxassetsanddeferredincometaxliabilitiesshallbepresentedbasedonthenetamountafteroffset.

42.Lease

(1)Accountingtreatmentofoperatinglease

1)TherentalfeespaidfortheassetleasedbytheCompanywillbeamortizedovertheentireleasetermwithoutdeductingrent-freeperiodaccordingtothestraight-linemethodandincludedintheexpensesforthecurrentperiod.TheinitialdirectcostsrelatedtotheleasetransactionspaidbytheCompanyareincludedinthecurrentexpenses.WhenassetslessorbearscostsrelatedtotheleasebornebytheCompany,theCompanyshalldeductthepartofexpensesfromthetotalrentsandamortizetherentsafterdeductionovertheleasetermandincludethemincurrentexpenses.

2)LeasefeesreceivedbytheCompanyfromleasingassetsshallbeamortizedatstraight-linemethodoverthewholeleaseperiodincludingrent-freeperiod,andshallberecognizedasleaseincome.InitialdirectcostsrelatingtoleasetransactionsincurredbytheCompanyshallberecognizedasthecurrentexpenses;iftheamountsaresignificant,theyshallbecapitalizedandincludedinthecurrentincomeonthesamebasisastherecognitionofleaseincome.WhentheCompanybearscostsrelatedtotheleasebornebytheleasee,theCompanyshalldeductthepartofexpensesfromthetotalrentsandamortizetherentsafterdeductionovertheleaseterm.

(2)Accountingtreatmentoffinancelease

1)Financialleasedassets:onthestartdateofleasing,theCompanytakesthelowerofthefairvalueoftheleasedassetsandthepresentvalueoftheminimumleasepaymentasthebookvalueoftheleasedassets,takestheminimumleasepaymentasthebookvalueofthelong-termpayable,andthedifferenceastheunrecognizedfinancingexpenses.TheCompanyadoptstheeffectiveinterestratemethodtoamortizetheunrecognizedfinancingexpensesduringtheleaseperiodandrecordthemintofinancialexpenses.TheinitialdirectexpensesincurredbytheCompanyshallbeincludedinthevalueoftheleasedassets.

2020

2)Financialleasingassets:theCompanyshall,atthebeginningofthelease,recognizethedifferencebetweenthesumofthereceivablefinancialleasingpayments,theunsecuredresidualvalueanditspresentvalueasunrealizedfinancingincome,whichshallberecognizedasleaseincomewithintheperiodofreceivingtherentinthefuture.Theinitialdirectexpensesincurredbythecompanyinconnectionwiththeleasetransactionshallbeincludedintheinitialmeasurementofthefinanceleasereceivableandshallreducetheamountofincomerecognizedduringtheleaseterm.

43.OthersignificantaccountingpoliciesandaccountingestimatesTerminationofbusinessisaseparatelyidentifiablecomponentthatmeetsoneofthefollowingconditionsandhasbeendisposedofbytheCompanyorplacedbytheCompanyasaholdingforsale:

(1)Thecomponentrepresentsaseparateprincipalbusinessoraseparateprincipalareaofbusiness.

(2)Thecomponentispartofarelatedplantodisposeofaseparateprincipalbusinessoraseparateprincipalareaofbusiness.

(3)Thecomponentisasubsidiaryacquiredexclusivelyforresale.

44.Changesinsignificantaccountingpoliciesandaccountingestimates

(1)Changesinaccountingpolicies

□Applicable√Notapplicable

(2)Changesinaccountingestimates

□Applicable√Notapplicable

(3)Adjustmentonrelevantitemsofthestatementatbeginningoftheyearwheninitiallyimplementedthenewrevenuestandardandnewleasestandardsince2020

(3)Thefirstimplementationofthenewrevenuestandardandtheadjustmentofthenewleasestandardfrom2020onthefirstimplementationofthefinancialstatementrelateditemsatthebeginningoftheyearNotapplicable

(4)Explanationoftheretroactiveadjustmentonpreliminarycomparativedatawhenimplementedthenewrevenuestandardandnewleasestandardinitiallysince2020

□Applicable√Notapplicable

2020

45.Other

VI.Taxation

1.MajortaxtypesandtaxratesapplicabletotheCompanyTaxesBasisfortaxassessmentTaxrateValueaddedtax(VAT)

OutputVATiscalculatedbasedontaxablesalesrevenueandservicerevenuecalculatedinaccordancewithtaxlawsandVATpayableortaxablesalesrevenueshallbethedifferenceafterdeductingtheinputVATdeductibleinthesameperiod

5%6%10%9%16%13%Consumptiontax7%Urbanmaintenanceandconstructiontax

LeviedbasedonVATpayable

25%20%EnterpriseincometaxLeviedbasedonthetaxableincome

25%20%EducationsurtaxLeviedbasedonVATpayable

3%LocaleducationsurtaxLeviedbasedonVATpayable

2%Housingpropertytax

Remainingvalueafterdeducting30%fromtheoriginalvalueofthehouse(includingtheoccupiedlandprice),andrentrevenue

1.2%or12%

LandusetaxLandarea

18yuan/m

Disclosereasonsfordifferenttaxpayingbody:Nil

2.Taxpreference:nil

3.Other:nil

VII.Notestothemainitemsofthefinancialstatements

1.Monetaryfunds

InRMB/CNYItem

EndingbalanceBeginningbalanceCashonhand

149,010.82302,077.12Bankdeposits

17,683,622.397,120,862.77Total

17,832,633.217,422,939.89Otherexplanation:nil

2020

2.Tradingsecurities:nil

3.Derivativefinancialassets:nil

4.Notereceivable:nil

5.Accountsreceivable

(1)Disclosureofaccountreceivablesbycategory

InRMB/CNYCategory

EndingbalanceBeginningbalanceBookbalance

Provisionforbaddebt

Bookvalue

Bookbalance

Provisionforbaddebt

BookvalueAmoun

tProport

ion

Amount

Provisionratio

Amount

Proport

ion

Amoun

t

Provision

ratioIncluding:

Accountsreceivablewithprovisionforbaddebtsbasedonportfolios

204,91

9.84

100.00

%

109,76

5.83

53.57%

95,15

4.01

420,8

49.75

100.00

%

109,76

5.83

26.08%

311,08

3.92

Including:

Total

204,91

9.84

100.00

%

109,76

5.83

53.57%

95,15

4.01

420,8

49.75

100.00

%

109,76

5.83

26.08%

311,08

3.92

Provisionforbaddebtsbasedonsingleitem:nilProvisionforbaddebtbasedonportfolios:nilAdescriptionofthebasisfordeterminingtheportfolio:nilIfthebaddebtprovisionofanaccountreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:

□Applicable√Notapplicable

Releasedbyaccountage

InRMB/CNYAccountageBookbalanceWithin1year(inclusive)111,851.841-2years2,259.002-3years566.00Over3years90,243.003-4years785.00

2020

4-5years18,633.00

Over5years70,825.00Total204,919.84

(2)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiod:nil

(3)Accountreceivableactuallychargeoffintheperiod:nil

(4)Topfiveaccountsreceivableintermsofendingbalancecollectedbythedebtor

InRMB/CNYNameofentity

Endingbalanceofaccountreceivable

Proportioninthetotalaccountsreceivableatperiod-end

Endingbalanceofthe

baddebtprovisionShanghaiHechengInternationalTravelServiceCo.,Ltd.

63,857.6631.16%3,558.30GuangzhouDesignInstitute38,980.0019.02%38,980.00TianjinWatermelonTourismLimitedLiabilityCompany

22,516.6210.99%3,566.61YangpuHuayuRoad&BridgeTechnologyCo.,Ltd.

18,633.009.09%9,316.50ChinaInternationalTravelService(Beijing)

13,540.206.61%13,540.00Total157,527.4876.87%

(5)Accountreceivablethatareterminatedduetofinancialassetstransfer:nil

(6)Assetsandliabilitiesresultedbyaccountreceivabletransferandcontinuesinvolvement:nil

6.Receivablefinancing:nil

Variationandfairvaluechangesonreceivablefinancingintheperiod:

□Applicable√Notapplicable

Iftheprovisionforimpairmentofreceivablefinancingiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofimpairmentprovision:

□Applicable√Notapplicable

Otherdescription:nil

2020

7.Advancepayment:nil

(1)Disclosureofadvancepaymentbyaccountage:nil

(2)Topfiveadvancespaymentintermsoftheendingbalancecollectedbytheprepaidobject:nil

8.Otherreceivable

InRMB/CNYItemEndingbalanceBeginningbalanceOtherreceivable385,492.93571,744.52Total385,492.93571,744.52

(1)Interestreceivable:Nil

(2)Dividendreceivable:Nil

(3)Otheraccountreceivables

1)Otheraccountreceivabledisclosedbynature

InRMB/CNYNatureEndingbookbalanceOpeningbookbalanceUtilitybills130,643.9976,534.42Pettycash169,993.97394,313.63Socialinsuranceandhousingprovidentfunds45,784.7961,826.29Deposit600.00600.00Litigationfee68,562.0068,562.00Total415,584.75601,836.34

2)Provisionforbaddebt:

InRMB/CNYProvisionforbaddebt

FirststageSecondstageThirdstage

TotalExpectedcreditloss

innext12months

Expectedcreditlossforthewholeduration(no

creditimpairment)

Expectedcreditlossforthe

wholeduration(creditimpairmenthasoccurred)Balanceasat1Jan.202030,091.8230,091.82BalanceasatJanuary1.2020incurrentperiod

————————

2020

Balanceasat30June202030,091.8230,091.82Changeofthebookbalanceformajoramountchangedinlossprovision

□Applicable√Notapplicable

Releasedbyaccountage

InRMB/CNYAccountageBookbalance

Within1year(inclusive)413,348.75Over3years2,236.00Over5years2,236.00Total415,584.75

3)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiodProvisionforbaddebtintheperiod

InRMB/CNYCategory

Beginningbalance

Amountchangedintheperiod

EndingbalanceAccrual

Reversalorswitch-back

Write-offOtherOtherreceivables

30,091.8230,091.82Total

30,091.8230,091.82Includingmajoramountreversalorswitch-backintheperiod:nil

4)Otherreceivablesactuallychargeoffintheperiod:nil

5)Topfiveotheraccountsreceivableintermsofendingbalancecollectedbythedebtor

InRMB/CNYNameofentityNature

Endingbalance

Accountage

Proportionintotalamountofotheraccountsreceivableatperiod-end

Endingbalanceof

thebaddebt

provisionBrightmoonpavilionmusicrestaurant

Utilitybills87,323.92

Within1year

21.01%3,356.74

Sanyasuburbanpeople'scourt

Litigationfee

68,562.00

Within1year

16.50%3,428.10

Personalsocialinsurancepremium

Advancepayment

45,784.79

Within1year

11.02%2,468.92

GuoYuboPettycash38,300.26Within1

9.22%4,718.33

2020

yearChenGangPettycash34,340.20

Within1

year

8.26%3,949.84

Total--274,311.17--66.01%17,921.93

6)Accountreceivablesrelatedtogovernmentsubsidies:nil

7)Otherreceivableforterminationofconfirmationduetothetransferoffinancialassets:nil

8)Theamountofassetsandliabilitiesthataretransferredotherreceivableandcontinuedtobeinvolved:nil

9.Inventories

WhetherthenewrevenuestandardsbeenimplementedNo(1)Classificationofinventories

InRMB/CNY

Item

EndingbalanceBeginningbalance

Bookbalance

Provisionfor

inventorydepreciationor

provisionforimpairmentof

contractperformancecosts

BookvalueBookbalance

Provisionfor

inventorydepreciationor

provisionforimpairmentof

contractperformancecosts

Bookvalue

Rawmaterials529,861.78310,465.94219,395.84843,199.89615,322.99227,876.90Commoditystocks22,771.3811,102.4111,668.9722,771.3811,102.4111,668.97Fuel26,396.2026,396.2014,711.3214,711.32Total579,029.36321,568.35257,461.01880,682.59626,425.40254,257.19

(2)Provisionforinventorydepreciationorprovisionforimpairmentofcontractperformancecosts

InRMB/CNYItem

Beginningbalance

CurrentincreaseCurrentdecrease

EndingbalanceAccrualOther

Reversalorwrite-off

OtherRawmaterials615,322.99304,857.05310,465.94Commoditystocks11,102.4111,102.41Total626,425.40304,857.05321,568.35

2020

(3)Explanationoncapitalizationofborrowingcostsatendingbalanceofinventory:nil

(4)Explanationonamortizedamountofcontractperformancecostincurrentperiod:nil

10.Contractassets:nil

11.Assetsheldforsale:nil

12.Non-currentassetsmaturingwithinoneyear:nil

13.Othercurrentassets

InRMB/CNYItemEndingbalanceBeginningbalancePrepaidenterpriseincometax

1,702,702.801,702,702.80Prepaidindividualincometax

2,837.744,778.06VATinputtaxtobededucted1,209,125.14808,143.62Prepaidfornewspaper,insurance,etc.

36,844.0156,413.98Others

2,404.11Total2,951,509.692,574,442.57Otherdescription:nil

2020

14.Creditorsinvestment:nil

15.Othercreditorsinvestment:nil

16.Long-termaccountreceivable

(1)Long-termaccountsreceivable:nil

(2)Long-termreceivablesderecognizedduetothetransferoffinancialassets:nil

(3)Theamountofassetsandliabilitiesformedbythetransferoflong-termreceivablesandcontinuedinvolvement:nil

17.Long-termequityinvestment:nil

18.Investmentinotherequityinstrument:nil

19.Othernon-currentfinancialassets:nil

20.Investmentproperties

(1)Investmentpropertiesmeasuredatcost

√Applicable□Notapplicable

InRMB/CNYItem

Buildingsandconstructions

Landuserights

Constructionin

process

TotalI.Originalbookvalue

1.Beginningbalance18,856,504.445,662,740.5924,519,245.03

2.Currentincrease

(1)Purchase

(2)Transferfrominventories/fixed

assets/constructioninprogress

(3)Increasefrombusinesscombinations

3.Currentdecrease

(1)Disposal

(2)Othertransfer-out

4.Endingbalance18,856,504.445,662,740.5924,519,245.03

2020

II.Accumulateddepreciationandaccumulatedamortization

1.Beginningbalance11,025,767.102,276,066.4513,301,833.55

2.Currentincrease214,142.7828,170.00242,312.78

(1)Provisionoramortization214,142.7828,170.00242,312.78

3.Currentdecrease

(1)Disposal

(2)Othertransfer-out

4.Endingbalance11,239,909.882,304,236.4513,544,146.33III.Provisionforimpairment

1.Beginningbalance1,404,400.471,903,054.143,307,454.61

2.Currentincrease

(1)Provision

3.Currentdecrease

(1)Disposal

(2)Othertransfer-out

4.Endingbalance1,404,400.471,903,054.143,307,454.61IV.Bookvalue

1.Endingbookvalue6,212,194.091,455,450.007,667,644.09

2.Openingbookvalue6,426,336.871,483,620.007,909,956.87

(2)Investmentrealestatemeasuredbyfairvalue

□Applicable√Notapplicable

(3)Investmentrealestatewithoutpropertycertificationheld:nil

21.Fixedassets

InRMB/CNYItemEndingbalanceBeginningbalanceFixedassets

33,463,950.0535,075,195.98

2020

Total33,463,950.0535,075,195.98

(1)Fixedassets

InRMB/CNYItem

Housesandbuildings

Mechanicalequipment

Transportationequipment

Electronicequipment

Otherequipment

TotalI.Originalbookvalue

1.Beginningbalance

136,789,501.829,613,076.542,130,663.572,266,121.243,125,353.67153,924,716.84

2.Currentincrease

44,530.3344,530.33

(1)Purchase

44,530.3344,530.33

(2)Transferfrom

constructioninprogress

(3)Increasefrom

businesscombinations

3.Currentdecrease

388,598.00388,598.00

(1)Disposalor

write-off

388,598.00388,598.00

4.Endingbalance

136,789,501.829,613,076.541,742,065.572,310,651.573,125,353.67153,580,649.17II.Accumulatedamortization

1.Beginningbalance

74,674,779.387,248,649.941,498,327.871,526,121.211,263,700.5086,211,578.90

2.Currentincrease

1,087,717.44143,528.8877,827.21108,069.51219,203.701,636,346.74

(1)Provision

1,087,717.44143,528.8877,827.21108,069.51219,203.701,636,346.74

3.Currentdecrease

369,168.48369,168.48

(1)Disposalor

write-off

369,168.48369,168.48

4.Endingbalance

75,762,496.827,392,178.821,206,986.601,634,190.721,482,904.2087,478,757.16III.Provisionforimpairment

1.Beginningbalance

31,072,788.171,565,153.7932,637,941.96

2.Currentincrease

(1)Provision

2020

3.Currentdecrease

(1)Disposalor

write-off

4.Endingbalance

31,072,788.171,565,153.7932,637,941.96IV.Bookvalue

1.Endingbookvalue

29,954,216.83655,743.93535,078.97676,460.851,642,449.4733,463,950.05

2.Openingbookvalue

31,041,934.27799,272.81632,335.70740,000.031,861,653.1735,075,195.98

(2)Temporarilyidlefixedassets:nil

(3)Fixedassetsacquiredbyfinancinglease:nil

(4)Fixedassetsacquiredbyoperatinglease:nil

(5)Certificateoftitleun-completed:nil

(6)Disposaloffixedassets:nil

22.Constructioninprocess

InRMB/CNYItemEndingbalanceBeginningbalanceConstructioninprocess4,074,092.55488,522.10Total4,074,092.55488,522.10

(1)Constructioninprocess

InRMB/CNYItem

EndingbalanceBeginningbalanceBookbalanceProvisionBookvalueBookbalanceProvisionBookvalueStaffdormitoryrenovationproject

348,873.78348,873.78Centralair-conditioningsystemandhotwatersystemcomprehensiverenovation

139,648.32139,648.32139,648.32139,648.32

2020

RenovationofguestroomsinBuilding-B

3,934,444.233,934,444.23Total4,074,092.554,074,092.55488,522.10488,522.10

(2)Changeofimportantprojectsunderconstructionintheperiod

InRMB/CNY

ProjectnameBudget

Beginningbalance

Current

increase

Amounttransfe

rredintofixedassetsintheperiod

Otheramoun

treductionintheperiod

Endingbalance

Proportionofaccumulativeprojec

tinvestmentsinthebudget

Projec

tprogre

ss

Accumulate

dcapitalizationamoun

tofinteres

t

Includin

g:

capitaliz

ationamount

oftheinterest

inthe

period

Capitalizationrate

oftheinterestintheperiod

(%)

Sourcesoffunds

RenovationofguestroomsinBuilding-B

12,000,0

00.00

3,934,44

4.23

3,934,

444.2

32.79

%40%

FinancialinstitutionloansCentralair-conditioningsystemandhotwatersystemcomprehensiverenovation

139,648.

139,6

48.32

Other

Staffdormitoryrenovationproject

348,873.

100%OtherStaffdormitoryrenovationproject

12,000,0

00.00

488,522.

3,934,44

4.23

4,074,

092.5

----

--

(3)Provisionforimpairmentofconstructioninprogressintheperiod:nil

(4)Engineeringmaterial:nil

23.Productivebiologicalasset

(1)Measuredbycost

□Applicable√Notapplicable

2020

(2)Measuredbyfairvalue

□Applicable√Notapplicable

24.Oilandgasassets

□Applicable√Notapplicable

25.Right-of-useassets:nil

26.Intangibleassets

(1)Intangibleassets

InRMB/CNYItemLanduserightsPatentright

Non-patentstechnology

TotalI.Originalbookvalue

1.Beginningbalance

81,653,137.1581,653,137.15

2.Currentincrease

(1)Purchase

(2)Internalresearchanddevelopment

(3)Increasefrombusinesscombinations

3.Currentdecrease

(1)Disposal

4.Endingbalance

81,653,137.1581,653,137.15II.Accumulatedamortization

1.Beginningbalance

32,819,438.4332,819,438.43

2.Currentincrease

401,142.58401,142.58

(1)Provision

401,142.58401,142.58

3.Currentdecrease

(1)Disposal

4.Endingbalance

33,220,581.0133,220,581.01III.Provisionforimpairment

1.Beginningbalance

27,440,836.8427,440,836.84

2020

2.Currentincrease

(1)Provision

3.Currentdecrease

(1)Disposal

4.Endingbalance

27,440,836.8427,440,836.84IV.Bookvalue

1.Endingbookvalue

20,991,719.3020,991,719.30

2.Openingbookvalue

21,392,861.8821,392,861.88

(2)Landuserightswithoutcertificateofownership:nil

27.Developmentexpenditure:nil

28.Goodwill:nil

29.Long-termdeferredexpenses

InRMB/CNYItem

Beginning

balance

Increasein

period

Amortizationin

period

Amountofother

decreases

EndingbalanceReconstructionoffire-fightingstairway

28,559.568,567.8219,991.74Swimmingpoolreconstruction

164,977.4829,995.90134,981.58ReconstructionofguestroomsinBuildingC

528,951.3896,172.96432,778.42Villareconstruction

963,555.84175,191.94788,363.90BuildingArenovationproject

9,028,874.38934,021.508,094,852.88Pavementmodificationproject

435,168.9445,017.46390,151.48Roofwaterproofingproject

370,091.7537,009.20333,082.55Staffdormitoryrenovationproject657,722.2654,810.19602,912.07Total11,520,179.33657,722.261,380,786.9710,797,114.62Otherdescription:nil

2020

30.Deferredincometaxassetsanddeferredincometaxliabilities:nil

31.Othernon-currentassets:nil

32.Short-termloans:nil

33.Tradingfinancialliability:nil

34.Derivativefinancialliability:nil

35.Notespayable:nil

36.Accountspayable

(1)Presentationofaccountspayable

InRMB/CNYItemEndingbalanceBeginningbalancePaymentforpurchase

310,395.42947,770.85Accountspayableprovisionallyestimated

57,041.13191,232.86Servicecharges

84,838.93Paymentforprojects

14,274.1014,274.10Elevatormaintenancefee

7,200.00Consignmentsales

1,093.001,093.00Others

4,000.01Total382,803.651,250,409.75

(2)Significantaccountspayablewithagingoveroneyear:nil

37.Advancefromcustomers

(1)Presentationofadvancesfromcustomers

InRMB/CNYItemEndingbalanceBeginningbalanceRoomandmealfees791,258.55786,715.42Total791,258.55786,715.42

2020

(2)Significantadvancesfromcustomerswithagingoveroneyear

InRMB/CNYItemEndingbalance

Reasonsforrepaymentfailureor

carry-forwardPEGASZhengQingbo

32,243.02UnsettlementHainanXiangyuanTourismDevelopmentCo.,Ltd.

28,131.00UnsettlementHainanQiongzhongEcologicalInvestmentGuaranteeCo.LTD

21,950.00UnsettlementRenKaiyu

9,774.00UnsettlementHainanChendaInternationalTravelServiceCo.LTD

8,779.00UnsettlementTotal100,877.02--Othernotes:nil

38.Contractualliability:nil

39.Employeecompensationpayable

(1)Presentationofemployeecompensationpayable

InRMB/CNYItem

Beginningbalance

IncreaseinPeriodDecreaseinPeriodEndingbalanceI.Short-termcompensation

2,552,996.375,027,987.585,745,681.481,835,302.47II.Post-employmentbenefits-definedcontributionplans

107,744.29107,744.29Total2,552,996.375,135,731.875,853,425.771,835,302.47

(2)Presentationofshort-termcompensation

InRMB/CNYItem

Beginning

balance

IncreaseinPeriodDecreaseinPeriodEndingbalance

1.Salaries,bonuses,allowances

andsubsidies

1,434,454.593,941,069.644,687,425.30688,098.93

2.Employeewelfareexpenses

710,453.21710,453.21

3.Socialinsurancepremiums

150,036.03150,036.03Including:medicalinsurance

149,197.23149,197.23

2020

premiumsWork-relatedinjuryinsurancepremiums

838.80838.80

4.Housingprovidentfunds

2,254.0097,798.0085,444.0014,608.00

5.Laborunionexpendituresand

employeeeducationfunds

1,116,287.78128,630.70112,322.941,132,595.54Total2,552,996.375,027,987.585,745,681.481,835,302.47

(3)Presentationofdefinedcontributionplans

InRMB/CNYItemBeginningbalanceIncreaseinPeriodDecreaseinPeriodEndingbalance

1.Basicendowment

insurancepremiums

104,142.26104,142.26

2.Unemployment

insurancepremiums

3,602.033,602.03Total107,744.29107,744.29Othernotes:nil

40.Taxespayable

InRMB/CNYItemEndingbalanceBeginningbalanceValueaddedtax(VAT)135,982.62135,982.62Corporateincometax

47.80

Individualincometax35,588.9018,333.52Urbanmaintenanceandconstructiontax

756.67902.73Housingpropertytax107,793.8097,050.89Landusetax54,295.4754,295.47Educationalsurtax

324.28386.88Localeducationsurtax

216.19257.94Total334,957.93307,257.85Othernotes:nil

41.Otherpayable

InRMB/CNYItemEndingbalanceBeginningbalance

2020

Otherpayable2,011,273.022,647,515.86Total2,011,273.022,647,515.86

(1)Interestpayable:nil

(2)Dividendpayable:nil

(3)Otherpayable

1)Presentationofotherpayablebynature

InRMB/CNYItemEndingbalanceBeginningbalanceEmployeedormitoryrentalfees,etc.

769,700.001,219,075.78Margin

556,241.91764,598.49Qualityguaranteedepositforprojects

540,655.00512,474.00Employeedeposit

86,520.0086,520.00Fundscollectedandremitted

30,969.0841,160.31Electricchargeswithheld

27,187.0323,687.28Total2,011,273.022,647,515.86

2)Othersignificantpayablewithagingoveroneyear:nil

42.Liabilityheldforsale:nil

43.Non-currentliabilityduewithinoneyear

InRMB/CNYItemEndingbalanceBeginningbalanceLong-termloansduewithinoneyear3,358,196.37Total3,358,196.37Othernotes:nil

44.Othercurrentliability:nil

45.Long-termloans:nil

(1)Long-termloanclassification

InRMB/CNY

2020

ItemEndingbalanceBeginningbalanceMortgageloan16,458,140.89Total16,458,140.89Explanationoflong-termloanclassification:

On10April2020,withthevillapropertyoftheHotelascollateral,applyingaloanof20millionyuantoHaikouBranchofIndustrialBank,termofloansisthreeyears.AsofendofthePeriod,aloanof19,791,474.22yuanhasbeendrawn.Otherinstructions,includinginterestraterange:nil

46.Bondpayable:nil

47.Leaseliability:nil

48.Long-termaccountpayable:nil

49.Long-termemployeepayable:nil

50.Estimatedliabilities

InRMB/CNY

ItemEndingbalanceBeginningbalanceReasonsProvisionsforarrearsofelectricitytariffs1,489,685.041,489,685.04

ThepowercompanymiscalculatedthecostsofelectricityTotal1,489,685.041,489,685.04--Otherdescription:includingimportantassumptionsandestimationforthemajoraccrualliability:nil

51.Deferredincome:nil

52.Othernon-currentliability:nil

53.Sharecapital

InRMB/CNYBeginning

balance

Changesintheperiod("+"forincreaseand"-"fordecrease)

EndingbalanceIssuanceofnewshares

Sharedonation

Conversionofreservesintoshare

OthersSub-totalTotalshares364,100,000.00364,100,000.00Othernotes:nil

2020

54.Otherequityinstrument:nil

55.Capitalreserves

InRMB/CNYItemBeginningbalanceIncreaseinPeriodDecreaseinPeriodEndingbalanceCapitalpremium(equitypremium)

33,336,215.5833,336,215.58Othercapitalreserves20,806,634.4320,806,634.43Total54,142,850.0154,142,850.01Otherdescription,includingchangesintheperiodandreasons:nil

56.Treasurystock:nil

57.Otherconsolidatedincome:nil

58.Reasonablereserve:nil

59.Surplusreserves:nil

60.Undistributedprofit

InRMB/CNYItemTheperiodLastperiodUndistributedprofitasattheendofthepreviousperiodbeforeadjustment-339,756,246.05-340,454,153.72Undistributedprofitasatthebeginningoftheperiodafteradjustment-339,756,246.05-340,454,153.72Plus:netprofitattributabletoownersoftheparentcompanyinthecurrentperiod-6,631,450.42755,974.01Undistributedprofitasattheendoftheperiod-346,387,696.47-339,698,179.71

61.Operatingrevenueandoperatingcost

InRMB/CNYItem

TheperiodLastperiodRevenueCostRevenueCostPrimarybusiness

4,089,491.054,815,416.6512,671,008.665,277,216.15Otherbusiness

892,380.95237,261.781,570,952.38237,261.78Total4,981,872.005,052,678.4314,241,961.045,514,477.93Revenue:

InRMB/CNYContracttype1#Division2#DivisionTotal

2020

Producttype4,089,491.054,089,491.05Including:

Roomincome3,471,155.973,471,155.97Including:

Hainan4,089,491.054,089,491.05Including:

Tourismandcateringservices4,089,491.054,089,491.05Including:

Including:

Including:

Including:

Total4,089,491.054,089,491.05Informationrelatingtoperformanceobligation:nil

62.Taxesandsurcharges

InRMB/CNYItemTheperiodLastperiod

Urbanconstructiontax8,585.5531,410.84Educationalsurtax

6,132.5322,436.31Housingpropertytax107,793.75215,587.50Landusetax54,295.47108,590.94Vehicleandvesselusetax3,720.005,220.00Stamptax1,604.90233.91Total182,132.20383,479.50Othernotes:nil

63.Sellingexpenses

InRMB/CNYItemTheperiodLastperiodStaffwagesandbenefits1,399,453.281,834,677.00SocialSecurityFeesandProvidentFund108,743.06302,950.00Depreciation

304,221.29259,401.60Utilitybills58,581.4899,980.13Repaircharges42,286.8595,930.17Otheritem181,908.28217,053.04Total2,095,194.242,809,991.94

2020

Othernotes:nil

64.Administrativeexpenses

InRMB/CNYItemTheperiodLastperiodStaffwagesandbenefits2,519,772.342,789,891.55SocialSecurityFeesandProvidentFund169,611.23321,053.70Businessentertainment179,012.82219,787.57Travelexpenses

97,323.85149,081.98Depreciationandamortizationoflanduserights567,872.48567,140.44Announcementfeeandagencyfee405,900.00655,420.00Otheritem261,442.63369,424.97Total4,200,935.355,071,800.21Othernotes:nil

65.R&Dexpenses:nil

66.Financialexpenses

InRMB/CNYItemTheperiodLastperiodInterestexpenses

76,128.55Less:interestincome

-89,077.69-152,697.12ProfitorlossonexchangeHandlingcharges11,635.7918,965.03Total-1,313.35-133,732.09Othernotes:nil

67.Otherincome

InRMB/CNYSourcesofotherincomeTheperiodLastperiodGovernmentgrants

150,000.00VATinputtaxplusdeduction112,840.35Total262,840.35

2020

68.Investmentincome:nil

69.Netopenhedgingbenefits:nil

70.Gainsfromfairvaluechanges:nil

71.Creditimpairmentloss:nil

72.Assetimpairmentloss:nil

73.Incomefromassetsdisposal:nil

74.Non-operatingrevenue

InRMB/CNYItemTheperiodLastperiod

Amountincludedinthecurrentnon-recurringprofitorlossOthers

2,593.62160,030.462,593.62Total2,593.62160,030.462,593.62Governmentsubsidiesreckonedintocurrentgains/losses:nil

75.Non-operatingexpenses

InRMB/CNYItemTheperiodLastperiod

Amountincludedinthecurrentnon-recurringprofitorlossLossondisposaloffixedassets19,129.5219,129.52Compensationforearlyterminationofthecontractsandotherrevenue

330,000.00330,000.00Total349,129.52349,129.52Othernotes:nil

76.Incometaxexpenses

(1)Incometaxexpensesstatement:nil

(2)Accountingprofitandincometaxexpenseadjustmentprocess

InRMB/CNYItemTheperiodTotalprofits

-6,631,450.42

2020

Otherdescription:nil

77.Othercomprehensiveincome

SeeNote

78.Notestoitemsofstatementofcashflows

(1)Cashreceivedfromotheroperatingactivities

InRMB/CNYItemTheperiodLastperiodInterestincome

89,077.69152,697.12Water,electricityandgascosts256,746.31679,120.76Governmenttourismmarketingincentivefunds150,000.00Deposits

200,000.00Other6,006.3673,624.00Total501,830.361,105,441.88Noteofcashreceivedfromotheroperatingactivities:nil

(2)Cashpaidforotheroperatingactivities

InRMB/CNYItemTheperiodLastperiodSocialintercoursefees

179,012.82221,362.57Intermediaryagencyauditfee390,000.00400,000.00Announcementfee12,900.00238,420.00Expensesforbusinesstrips

98,590.03151,940.09Promotionfee

25,341.7292,705.15Repaircharges

93,463.88211,454.36Otheritem1,008,645.73978,613.63Total1,807,954.182,294,495.80Noteofcashpaidforotheroperatingactivities:nil

2020

(3)Cashreceivedfromotherinvestmentactivities:nil

(4)Cashpaidforotherinvestingactivities:nil

(5)Cashreceivedfromotherfinancingactivities:nil

(6)Cashpaidforotherfinancingactivities:nil

79.Supplementaryinformationtothestatementofcashflows

(1)Supplementaryinformationtothestatementofcashflows

InRMB/CNYSupplementaryinformation

TheperiodLastperiod

1.Netprofitadjustedtocashflowsfromoperatingactivities

----Netprofit

-6,631,450.42755,974.01Depreciationoffixedassets,depreciationanddepletionofoilandgasassetsanddepreciationofproductivebiologicalassets

1,850,489.521,726,440.52Amortizationofintangibleassets429,312.58434,363.58Amortizationoflong-termdeferredexpenses1,380,786.97602,113.32Decreasesininventories("-"forincreases)-3,203.8229,696.62Decreasesinoperatingreceivable(“-”forincreases)402,181.50-513,490.92Increasesinoperatingpayable("-"fordecreases)-2,217,307.25-1,765,680.48Netcashflowfromoperatingactivities-4,789,190.921,269,416.65

2.Significantinvestingandfinancingactivitiesnotinvolvingcash

receiptsandpayments:

----

3.Netchangesincashandcashequivalents:

----Endingbalanceofcash17,832,633.2116,110,895.95Less:beginningbalanceofcash7,422,939.8915,364,355.30Netincreaseincashandcashequivalents10,409,693.32746,540.65

(2)Netcashpaymentfortheacquisitionofasubsidiaryofthecurrentperiod:nil

(3)Netcashreceivedfromthedisposalofsubsidiaries:nil

(4)Breakdownsofcashandcashequivalents

InRMB/CNYItemEndingbalanceBeginningbalance

2020

I.Cash

17,832,633.217,422,939.89Including:cashonhand

149,010.82302,077.12Unrestrictedcashatbank17,683,622.397,120,862.77III.Balanceofcashandcashequivalentsatendoftheperiod17,832,633.217,422,939.89Othernotes:nil

80.Notesforthestatementofownersequitychanges

Explaintheitemsandadjustedamountedwhichhaveadjustedin“Other”oflastyear’sendingbalance:nil

81.Assetswithownershiporuserightrestricted:nil

82.Itemofforeigncurrency:nil

(1)Itemofforeigncurrency:nil

(2)Explanationonforeignoperationalentity,includingasforthemajorforeignoperationalentity,disclosedmainoperationplace,book-keepingcurrencyandbasisforselection;ifthebook-keepingcurrencychanged,explainreasons

□Applicable√Notapplicable

83.Hedging

Releasedtheitemsandrelevantinstrumentsbytypes,andqualitativeandquantitativeinformationforhedgerisks:nil

84.Governmentsubsidy

(1).Governmentsubsidy

InRMB/CNYTypesAmountPresentationitem

Amountentryincurrent

gains/lossesGovernmenttourismmarketingincentivefunds150,000.00Otherincome150,000.00

(2)Refundofgovernmentsubsidy

□Applicable√Notapplicable

Othernotes:nil

2020

85.Other

VIII.Changeoftheconsolidationscope

1.Businesscombinationnotundercommoncontrol

(1)Businesscombinationnotundercommoncontroloccurredintheperiod:nil

(2)Combinationcostsandgoodwill:nil

(3)Identifiableassets/liabilitiesofthepurchaseeonthedateofpurchase:nil

(4)Gain/lossfromtheequityre-measuredatfairvalueheldbeforepurchasingdate:nilEnterprisecombinedstepbystepthroughmulti-dealingsandobtainedcontrollingrightsinthePeriod

□Yes√No

(5)Explanationoncombinedconsiderationortheidentifiableassetsandliabilities’fairvalueofthepurchasedpartyonpurchasingdateorattheendofthecurrentperiodofmerger,whichisimpossibletodetermineinareasonableway:nil

(6)Otherdescription:nil

2.Businesscombinationundercommoncontrol:nil

3.Counterpurchase:nil

Basicinformationofthetransaction,thebasisforthetransactiontoconstituteareversepurchase,whethertheassetsandliabilitiesretainedbythelistedcompanyconstituteabusinessanditsbasis,thedeterminationofthemergercost,theamountofequityadjustmentanditscalculationwhenhandlingaccordingtoequitytransactions:

Nil

4.Disposalofsubsidiaries

Losingcontrollingrightswhiledisposesubsidiaryonone-time

□Yes√No

Disposesubsidiarystepbystepthroughmulti-dealingsandlosingcontrollingrightsinthePeriod

□Yes√No

5.Changesofcombinationscope

Otherreasonscontributedthechangesforcombinationscope(e.g.newsubsidiaryestablished,liquidatesubsidiaryetc.):nil

2020

6.Other

IX.Rightsandinterestsinotherentities

1.Equityinsubsidiaries

(1)Structureoftheenterprisegroup

Nameofsubsidiary

Principalplaceofbusiness

RegistrationplaceBusinessnature

Shareholdingratio

MethodofacquisitionDirectIndirectHainanWengaoTouristResourcesDevelopmentCo.,Ltd.

Sanya,Hainan

BlockB,MainBuilding,HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,No.2,YuhaiRoad,JiyangDistrict,SanyaCity,HainanProvince

Leasingandcommercialserviceindustries

100.00

%

Newlyestablished

Anexplanationfortheshareholdingratiodifferingfromtheshareofthevotingrightsinthesubsidiaries:nil

2020

(2)Majornon-wholly-ownedsubsidiary:nil

(3)Mainfinancialinformationofthemajornon-wholly-ownedsubsidiary:nil

(4)Majorrestrictiononusingthegroup’sassetsandpayingoffdebtsforthegroup:nil

(5)Financialandothersupportsprovidedtothestructuredentitythatincludedinconsolidatefinancialstatementscope:nil

2.Changesintheowner'sequityshareofthesubsidiaryandthetransactionisstillcontrolledsubsidiary:

nil

3.Equityinarrangementofjointventureorassociatedenterprises:nil

4.Importantcommonmanagement:nil

5.Equityinstructuredentitiesnotincludedintheconsolidatedfinancialstatements:nil

6.Other:nil

X.Risksrelatedtofinancialinstruments:nilXI.Fairvaluedisclosures

1.Endingfairvalueoftheassetsandliabilitiesmeasuredbyfairvalue:nil

2.Recognizedbasisforthemarketpricesustainingandnon-persistentmeasuredbyfairvalueonfirst-order:nil

3.Thequalitativeandquantitativeinformationforthevaluationtechniqueandcriticalparameterthatsustainingandnon-persistentmeasuredbyfairvalueonsecond-order:nil

4.Thequalitativeandquantitativeinformationforthevaluationtechniqueandcriticalparameterthatsustainingandnon-persistentmeasuredbyfairvalueonthird-order:nil

5.Sensitivityanalysisofnon-observableparametersandadjustmentinformationbetweentheopeningbookvalueandendingbookvaluethatsustainingmeasuredbyfairvalueonthird-order:nil

6.Ifthereareconversionbetweendifferentordersthatsustainingmeasuredbyfairvalue,explaintheconversioncauseandpolicyofdeterminingthetimepointforconversion:nil

7.Thevaluationtechnicalchangeandreasonsoccurredintheperiod:nil

2020

8.Thefairvalueoffinancialassets/liabilitiesthatnotmeasuredunderthefairvalue:nil

9.Other:nil

XII.Relatedpartiesandrelatedpartytransactions

1.Parentcompany

Nameoftheparentcompany

Registrationplace

Businessnature

Registeredcapital

ShareholdingratiointheCompany

VotingratiointheCompanyLuoniushanCo.,Ltd.Haikou

Plantingandbreedingindustry

11511517.55%19.80%Explanation:

AsatJune30,2020,LuoniushanCo.,Ltd.(hereinafterreferredtoas"Luoniushan")anditswholly-ownedsubsidiaryHainanYa'anjuPropertyServicesCo.,Ltd.heldatotalof72,092,000AsharesoftheCompany,accountingfor19.80%oftheCompany'stotalsharecapital,soitistheCompany'slargestshareholder.UltimatecontrollingpartyoftheCompanyisLuoniushanCo.,Ltd.

2.SubsidiaryoftheEnterprise

FoundmoreinNotes

3.Jointventureandassociatedenterprise:nil

4.Otherrelatedparty:nil

5.Relatedpartytransactions

(1)Relatedpartytransactionsofpurchasingandsellingcommodities,providingandreceivinglaborservices

Procurementofgoods/acceptanceoflabor:nilSalesofgoods/providedlaborservice:

InRMB/CNYRelatedpartyContentofrelated-partytransactionTheperiodLastperiodLuoniushanCo.,Ltd.Roomandmealfees

2,934.60125,150.00Noteofrelatedpartytransactionsofpurchasingandsellingcommodities,providingandreceivinglaborservices:nil

2020

(2)Associatedtrusteeshipmanagement/contractandtrusteeship/outsourcing:nil

(3)Related-partylease:nil

(4)Related-partyguarantee:nil

(5)Related-partyfundslending:nil

(6)Related-partyassettransferanddebtrestructuring:nil

(7)Keymanagementpersonnelemoluments:nil

(8)Otherrelatedtransactions:nil

6.Receivablesandpayableoftherelatedparty:nil

7.Relatedparty’scommitment

AccordingtotherequirementsoftheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas"CSRC")ontheGuidelinesfortheSupervisionofListedCompaniesNo.4--CommitmentsofandPerformanceofCommitmentsbyActualControllers,Shareholders,RelatedParties,AcquirersofListedCompaniesandListedCompanies(AnnouncementoftheChinaSecuritiesRegulatoryCommission[2013]No.55),onJune7,2014,LuoniushanCo.,Ltd.(hereinafterreferredtoas“Luoniushan”)issuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmenttoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.totheCompany,committingthat,withinthreeyearsfromthedatewhenthechangeofsuchcommitmentisreviewedandadoptedattheCompany'sgeneralmeeting,LuoniushanwillactivelyseekrestructuringpartywhowillconducttheassetrestructuringontheCompany.TheabovematterswerereviewedandapprovedbytheboardofshareholdersoftheCompanyonJune27,2014.OnJune23,2017,LuoniushanissuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmentDurationtoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,andextendedtheimplementationperiodoftheaboverestructuringcommitmentmadebyLuoniushantotheCompany,thatis,thedeadlinefortheimplementationperiodoftherestructuringcommitmentwaschangedtoDecember27,2017.AsofJune30,2020,nofurtherprogresswasmadeontheabove-mentionedassetrestructuringcommitments.

2020

8.Other:nil

XIII.Share-basedpayment

1.Share-basedpayment

□Applicable√Notapplicable

2.Settledbyequity

□Applicable√Notapplicable

3.Settledbycash

□Applicable√Notapplicable

4.Modificationandterminationofshare-basepayment

5.Other

XIV.Commitmentsandcontingencies

1.Commitments

CommitmentsonbalancesheetdateAsofthebalancesheetdate,thecompanyhasnocommitmentsthatshouldbedisclosed.

2.Contingencies

(1)Majorcontingenciesonbalancesheetdate

1)TheCompanyowedtheelectricitybilltotheSanyaPowerSupplyBureau.OnMay26,2016,theCompanyreceivedalawyerletterfromHainanYunfanLawFirmentrustedbySanyaPowerSupplyBureauofHainanPowerGridCo.,Ltd.(hereinafterreferredtoas"SanyaPowerSupplyBureau"),sayingthatSanyaPowerSupplyBureaufound,inverifyingelectricityconsumptionbySouthChinaHotel,asubsidiaryoftheCompany,thatthecurrenttransformer(CT)installedinthedistributioncentermeteringcountersinSouthChinaHotelinstalledwasinconsistentwiththerecordinthemarketingmanagementsystemfileofSanyaPowerSupplyBureau,andthedurationoftheinconsistencewasfromJuly2006whenSouthChinaHotelchangeditselectricityconsumptionmeasuringdevicetoApril2016.Accordingtothestatistics,electricityconsumptionof10313373KWHwasmeasuredinshort,whichwasestimatedtobevaluedatRMB7,200,165.75accordingtotheelectricitypricesandsurchargeratesintheyears.AccordingtotheLegalConsultationAdviceonElectricityQuantity(ElectricityCharge)ClaimingDispute

2020

betweenSouthChinaHotelandSanyaPowerSupplyBureauissuedbyBeijingJunhe(Haikou)LawFirmonDecember20,2016,asallelectricityconsumptionmeteringdevicesarepurchased,installed,sealed,openedandreplacedbySanyaPowerSupplyBureauResponsible,theshortmeasurementofelectricitychargefromSouthChinaHotelformanyyearswasduetothefaultofSanyaPowerSupplyBureau,andwasirrelevanttoSouthChinaHotel.PursuanttoArticle135oftheGeneralPrinciplesofCivilLaw:"Exceptasotherwisestipulatedbylaw,thelimitationofactionregardingapplicationstoapeople'scourtforprotectionofcivilrightsshallbetwoyears.,theCompanyaccruedanamountofRMB1,489,685.04fortheelectricitychargeforelectricityquantitymeasuredinshortduringtwoyearsfromApril2014toApril2016.AsatJune30,2020,nofurtherprogresswasmadeonthismatter.

2)TheCompanyannouncedonJune3,2019thatHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoas“DadonghaiGroup”)hadborrowedRMB2.76millionandRMB4.55millionfromtheCompanyonOctober16,1996andDecember26,1996respectively.ThetwoloanstotaledRMB7.31millionandhavenotbeenrepaidyet.TheCompanyfiledalawsuitwiththeSuburbanPeople'sCourtofSanya,Hainanprovince(hereinafterreferredtoasthe"court"),requestingthedefendantDadonghaigrouptorepaytheloanofRMB7.31milliontotheCompany.Thecompanyhasreceivedthe(2019)[Qiong0271MinchuNo.5185]NoticeofAcceptanceofTheCaseissuedbythecourt.Thecaseisstillpending.Thisclaim,thecompanyhasbeenin2008fullwrite-off.

3)OnMay31,2018,theSanyaLocalTaxationBureauSocialSecurityFeeCollectionandManagementBureauissuedanoticeofpaymentofsocialinsurancepremiumstothecompany’sSouthChinaHotel,orderingthecompany’sSouthChinaHoteltopaythearrearsofsocialinsurancepremiumsandlatefeesandinteresttotaled286,200.36yuanfromJanuary1,2012toDecember31,2012withinthetimelimit.OnMay17,2018,theSanyaLocalTaxationBureaudeductedtheamountfromthedepositofthecompany'sSouthChinaHotel.Accordingtothe"SouthChinaHotelTargetOperationandManagementResponsibilityLetter"signedbythecompany'sSouthChinaHotelandSunHongjie,SunHongjieshouldberesponsibleforthepaymentoftheoutstandingsocialinsurancepremiums.Forthisreason,thecompanysuedtothecourt.OnFebruary25,2020,thecourtruledthatSunHongjieshallreimbursethecompanyforthesocialinsurancepremiums,latefeesandinteresttotaling286,200.36yuanfromthedatewhenthejudgmentbecomeslegallyeffective.Atpresent,thejudgmenthasbecomelegallyeffectiveandhasenteredtheenforcementprocedure.

(2)Fornomajorcontingenciesdisclosed,explainreasons

TheCompanyhasnomajorcontingenciesshouldbedisclosed

2020

3.Other

XV.Postbalancesheetevents

1.Majornon-adjustmentevents:nil

2.Profitdistribution:nil

3.Salesreturn:nil

4.Otherpostbalancesheetevents:nil

XVI.Othersignificantevents

1.Correctionofaccountingerrorsinpreviousperiods:nil

2.Debtreorganization:nil

3.Assetsexchange

(1)Non-monetaryassetsexchange:nil

(2)Otherassetsexchange:nil

4.Annuityplan:nil

5.Terminationofoperation:nil

6.Segmentinformation:nil

7.Majortradinganditemsshowsinfluenceoninvestors’decision-making:nil

8.Other:nil

XVII.Notestomainitemsoffinancialstatementsoftheparentcompany

1.Accountsreceivable

(1)Disclosureofaccountreceivablesbycategory

InRMB/CNYCategory

EndingbalanceBeginningbalanceBookbalance

Provisionforbaddebt

Bookvalue

Bookbalance

Provisionforbaddebt

Bookvalue

2020

Amoun

t

Ratio

Amoun

t

Provisionratio

Amount

Ratio

Amount

ProvisionratioIncluding:

Accountsreceivablewithprovisionforbaddebtsbasedonportfolios

204,91

9.84

100.00

%109,76

5.83

53.57

%95,154.

420,84

9.75

100.00

%109,76

5.83

26.08%311,083.92

Including:

Total

204,91

9.84

100.00

%

109,76

5.83

53.57

%

95,154.

420,84

9.75

100.00

%

109,76

5.83

26.08%311,083.92

Accountsreceivablewithprovisionforbaddebtsmadeseparately:nilProvisionforbaddebtbyportfolio:nilIfthebaddebtprovisionofanaccountreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision

□Applicable√Notapplicable

Releasedbyaccountage

InRMB/CNYAccountageEndingbalanceWithin1year(including1year)111,851.841yearto2years

2,259.002yearsto3years

566.00

Over3years90,243.003yearsto4years

785.00

4yearsto5years

18,633.00Over5years70,825.00Total204,919.84

(2)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiod:nil

(3)Accountreceivableactuallychargeoffintheperiod:nil

(4)Topfiveaccountsreceivableintermsofendingbalancecollectedbythedebtor

InRMB/CNYNameofentity

Endingbalanceofaccountreceivable

Proportioninthetotalaccountsreceivableatperiod-end

Endingbalanceofthebad

debtprovision

2020

ShanghaiHechengInternationalTravelServiceCo.,Ltd.

63,857.6631.16%3,558.30GuangzhouDesignInstitute38,980.0019.02%38,980.00TianjinWatermelonTourismLimitedLiabilityCompany

22,516.6210.99%3,566.61YangpuHuayuRoad&BridgeTechnologyCo.,Ltd.

18,633.009.09%9,316.50ChinaInternationalTravelService(Beijing)

13,540.206.61%13,540.00Total157,527.4876.87%

(5)Accountreceivablethatareterminatedduetofinancialassetstransfer:nil

(6)Assetsandliabilitiesresultedbyaccountreceivabletransferandcontinuesinvolvement:nil

2.Otheraccountreceivable

InRMB/CNYItemEndingbalanceBeginningbalanceOtheraccountreceivable385,492.93571,744.52Total385,492.93571,744.52

(1)Interestreceivable

1)Classificationofinterestreceivable:nil

2)Importantoverdueinterest:nil

3)Provisionforbaddebt:

□Applicable√Notapplicable

(2)Dividendreceivable

1)Category:nil

2)Significantdividendreceivablewithoveroneyearaccountage:nil

3)Provisionforbaddebt:

□Applicable√Notapplicable

2020

(3)Otheraccountreceivable

1)Otheraccountreceivabledisclosedbynature

InRMB/CNYNatureEndingbookbalanceOpeningbookbalanceUtilitybills130,643.9976,534.42Pettycash169,993.97394,313.63Socialinsuranceandhousingprovidentfunds45,784.7961,826.29Deposit

600.00600.00Litigationfee68,562.0068,562.00Total415,584.75601,836.34

2)Provisionforbaddebt:

InRMB/CNYProvisionforbaddebt

FirststageSecondstageThirdstage

TotalExpectedcreditlossinnext12

months

Expectedcreditlossforthewholeduration(no

creditimpairment)

Expectedcreditlossforthe

wholeduration(creditimpairmenthasoccurred)Balanceasof1Jan.202030,091.8230,091.82BalanceasofJanuary1.2020incurrentperiod

————————BalanceasofJune30,202030,091.8230,091.82Changeofthebookbalanceformajoramountchangedinlossprovision

□Applicable√Notapplicable

Releasedbyaccountage

InRMB/CNYAccountageEndingbalanceWithin1year(inclusive)413,348.75Over3years2,236.00Over5years2,236.00Total415,584.75

3)Provision,reversalorrecoveryofprovisionforbaddebtsintheperiodProvisionforbaddebtintheperiod

InRMB/CNY

2020

Category

Beginning

balance

Amountchangedintheperiod

EndingbalanceAccrualReversalorswitch-backChargeoffOtherOtheraccountreceivable

30,091.8230,091.82Total30,091.8230,091.82Includingmajoramountreversalorswitch-backintheperiod:nil

4)Otherreceivablesactuallychargeoffintheperiod:nil

5)Topfiveotheraccountsreceivableintermsofendingbalancecollectedbythedebtor

InRMB/CNYNameofentityNatureEndingbalanceAccountage

Proportionintotalamountofotheraccountsreceivableatperiod-end

Endingbalanceofthebaddebt

provisionBrightmoonpavilionmusicrestaurant

Utilitybills87,323.92Within1year

21.01%3,356.74

Sanyasuburbanpeople'scourt

Litigationfee68,562.00Within1year

16.50%3,428.10

Personalsocialinsurancepremium

Advancepayment

45,784.79Within1year

11.02%2,468.92

GuoYuboPettycash38,300.26Within1year

9.22%4,718.33

ChenGangPettycash34,340.20Within1year

8.26%3,949.84

Total--274,311.17--66.01%17,921.93

6)Accountreceivablesrelatedtogovernmentsubsidies:nil

7)Otherreceivableforterminationofconfirmationduetothetransferoffinancialassets:nil

8)Theamountofassetsandliabilitiesthataretransferredotherreceivableandcontinuedtobeinvolved:nil

3.Long-termequityinvestments

InRMB/CNYItem

EndingbalanceBeginningbalanceBookbalance

Provisionforimpairment

BookvalueBookbalance

Provisionforimpairment

BookvalueInvestmentinsubsidiaries

1,000,000.001,000,000.001,000,000.001,000,000.00Total1,000,000.001,000,000.001,000,000.001,000,000.00

2020

(1)Investmentinsubsidiaries

InRMB/CNYInvestee

Beginningbalance(Book

value)

Increase/decreasedintheperiod

Endingbalance(Book

value)

EndingbalanceoftheprovisionforimpairmentAdditionalinvestment

Capitalreduction

Provisionforimpairment

OtherHainanWengaoTouristResourcesDevelopmentCo.,Ltd.

1,000,000.001,000,000.00Total1,000,000.001,000,000.00

(2)Investmentforjointventureandassociatedenterprise:nil

(3)Otherdescription:nil

4.Operatingrevenueandoperatingcost

InRMB/CNYItem

TheperiodLastperiodRevenueCostRevenueCostPrimarybusiness

4,089,491.054,815,416.6512,671,008.665,277,216.15Otherbusinesses

892,380.95237,261.781,570,952.38237,261.78Total4,981,872.005,052,678.4314,241,961.045,514,477.93Revenue:

InRMB/CNYContracttype1#Division2#DivisionTotalProducttype4,089,491.054,089,491.05Including:

Roomincome3,471,155.973,471,155.97Including:

Hainan4,089,491.054,089,491.05Including:

Tourismandcateringservices4,089,491.054,089,491.05Including:

Including:

Including:

2020

Including:

Total4,089,491.054,089,491.05Informationrelatingtoperformanceobligation:nil

5.Investmentincome:nil

6.Other:nil

XVIII.Supplementaryinformation

1.Breakdownofcurrentnon-recurringprofitsandlosses

√Applicable□Notapplicable

InRMB/CNYItem

AmountRemarkProfitorlossfromdisposalofnon-currentassets-19,129.52LossofscrappedfixedassetsGovernmentgrantsincludedinthecurrentprofitorloss(exceptforgovernmentgrantscloselyrelatedtotheenterprisebusiness,obtainedbyquotaorquantityatunifiedstatestandards)

262,840.35

RewardsfordevelopmentofinboundtourismmarketsupportingbythegovernmentandtaxcreditfortheVATinputtaxsurchargeOthernon-operatingrevenueandexpensesexceptfortheabove-mentioneditems

-327,406.38

CompensationforearlyterminationofthecontractsandotherrevenueOtherincomeTotal-83,695.55--Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons

□Applicable√Notapplicable

2.Returnonequity(ROE)andearningspershare(EPS)

ProfitduringthereportingperiodWeightedaverageROE

EarningspershareBasicEPS(RMB/Share)

DilutedEPS(RMB/Share)NetprofitsattributabletoordinaryshareholdersoftheCompany

-9.23%-0.0182-0.0182NetprofitsattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitsorlosses

-9.11%-0.0180-0.0180

2020

3.AccountingdifferencebetweenIFRSandCAS

(1)Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√Notapplicable

(2)Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√Notapplicable

(3)ExplanationondatadifferencesundertheaccountingstandardsinandoutofChina;asforthedifferencesadjustmentauditedbyforeignauditinginstitute,listednameoftheinstitute:nil

4.Other

2020

SectionXII.DocumentsavailableforreferencesI.TextofSemi-AnnualReport2020withsignatureofthelegalperson;II.Financialstatementwithsignatureandsealoflegalperson,personinchargeofaccountingworksandpersoninchargeofaccountingorgan(accountantincharge);III.TheoriginalmanuscriptsofalldocumentsandannouncementsoftheCompanypubliclydisclosedonwebsiteappointedbyCSRC;IV.OtherrelevantdocumentsTheabovesaiddocumentsarepreparedinthesecuritydepartmentoftheCompany

HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.

Chairman:YuanXiaoping20August2020


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