Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Semi-Annual 2021
Financial Report
19 August 2021
I. Financial Statement
1. Consolidated Balance Sheet
June 30, 2021
In RMB
Item
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 3,240,620.51 | 2,924,459.75 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 89,030.64 | 429,303.32 |
| Receivable financing | ||
| Accounts paid in advance | ||
| Insurance receivable | ||
| Reinsurance receivables |
Contract reserve of reinsurance receivable
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 522,032.39 | 432,560.55 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 221,475.00 | 2,009,928.83 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 3,446,991.54 | 3,977,452.24 |
| Total current assets | 7,520,150.08 | 9,773,704.69 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 7,198,171.53 | 7,435,433.31 |
| Fixed assets | 32,957,434.73 | 34,694,023.75 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 20,174,281.14 | 20,580,474.72 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 21,629,691.28 | 24,957,702.73 |
| Deferred income tax asset | ||
| Other non-current asset | ||
| Total non-current asset | 81,959,578.68 | 87,667,634.51 |
| Total assets | 89,479,728.76 | 97,441,339.20 |
| Current liabilities: |
Short-term loans
| Short-term loans | ||
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 1,019,806.75 | 808,710.46 |
| Accounts received in advance | ||
| Contractual liability | 875,822.38 | 626,285.33 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 2,458,042.98 | 2,595,861.40 |
| Taxes payable | 364,489.65 | 366,892.96 |
| Other account payable | 3,027,832.98 | 6,167,763.36 |
| Including: Interest payable | ||
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 11,508.13 | 6,621,497.94 |
| Other current liabilities | 52,549.34 | 37,577.12 |
| Total current liabilities | 7,810,052.21 | 17,224,588.57 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 9,893,757.94 | 9,893,757.94 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 1,489,685.04 | 1,489,685.04 |
Deferred income
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | 1,914,592.66 | 1,914,592.66 |
| Total non-current liabilities | 13,298,035.64 | 13,298,035.64 |
| Total liabilities | 21,108,087.85 | 30,522,624.21 |
| Owner’s equity: | ||
| Share capital | 364,100,000.00 | 364,100,000.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 54,142,850.01 | 54,142,850.01 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | ||
| Provision of general risk | ||
| Retained profit | -349,871,209.10 | -351,324,135.02 |
| Total owner’ s equity attributable to parent company | 68,371,640.91 | 66,918,714.99 |
| Minority interests | ||
| Total owner’ s equity | 68,371,640.91 | 66,918,714.99 |
| Total liabilities and owner’ s equity | 89,479,728.76 | 97,441,339.20 |
Legal Representative: Yuan XiaopingAccounting Principal: Fu ZongrenAccounting Firm’s Principal: Fu Zongren
2. Balance Sheet of Parent Company
In RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 3,239,943.81 | 2,923,474.26 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 89,030.64 | 429,303.32 |
Receivable financing
| Receivable financing | ||
| Accounts paid in advance | ||
| Other account receivable | 522,032.39 | 432,560.55 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 221,475.00 | 2,009,928.83 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 3,446,991.54 | 3,977,452.24 |
| Total current assets | 7,519,473.38 | 9,772,719.20 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 1,000,000.00 | 1,000,000.00 |
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 7,198,171.53 | 7,435,433.31 |
| Fixed assets | 32,957,434.73 | 34,694,023.75 |
| Construction in progress | ||
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 20,174,281.14 | 20,580,474.72 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 21,629,691.28 | 24,957,702.73 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 82,959,578.68 | 88,667,634.51 |
| Total assets | 90,479,052.06 | 98,440,353.71 |
| Current liabilities: | ||
| Short-term borrowings |
Trading financial liability
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | 1,019,806.75 | 808,710.46 |
| Accounts received in advance | ||
| Contractual liability | 875,822.38 | 626,285.33 |
| Wage payable | 2,458,042.98 | 2,595,861.40 |
| Taxes payable | 364,489.65 | 366,892.96 |
| Other accounts payable | 4,027,301.68 | 7,167,232.06 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 11,508.13 | 6,621,497.94 |
| Other current liabilities | 52,549.34 | 37,577.12 |
| Total current liabilities | 8,809,520.91 | 18,224,057.27 |
| Non-current liabilities: | ||
| Long-term loans | 9,893,757.94 | 9,893,757.94 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | 1,489,685.04 | 1,489,685.04 |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | 1,914,592.66 | 1,914,592.66 |
| Total non-current liabilities | 13,298,035.64 | 13,298,035.64 |
| Total liabilities | 22,107,556.55 | 31,522,092.91 |
| Owners’ equity: | ||
| Share capital | 364,100,000.00 | 364,100,000.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities |
Capital public reserve
| Capital public reserve | 54,142,850.01 | 54,142,850.01 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | ||
| Retained profit | -349,871,354.50 | -351,324,589.21 |
| Total owner’s equity | 68,371,495.51 | 66,918,260.80 |
| Total liabilities and owner’s equity | 90,479,052.06 | 98,440,353.71 |
3. Consolidated Profit Statement
In RMB
| Item | 2021 semi-annual | 2020 semi-annual |
| I. Total operating income | 19,079,779.41 | 4,981,872.00 |
| Including: Operating income | 19,079,779.41 | 4,981,872.00 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 17,863,208.53 | 11,529,626.87 |
| Including: Operating cost | 10,060,086.41 | 5,052,678.43 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 325,142.31 | 182,132.20 |
| Sales expense | 2,720,548.17 | 2,095,194.24 |
| Administrative expense | 4,382,016.80 | 4,200,935.35 |
| R&D expense | ||
| Financial expense | 375,414.84 | -1,313.35 |
| Including: Interest expenses | 360,946.81 | 76,128.55 |
| Interest income | 17,993.99 | 89,077.69 |
| Add: Other income | 233,438.24 | 262,840.35 |
Investment income (Loss is listed with “-”)
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | ||
| III. Operating profit (Loss is listed with “-”) | 1,450,009.12 | -6,284,914.52 |
| Add: Non-operating income | 3,739.40 | 2,593.62 |
| Less: Non-operating expense | 822.60 | 349,129.52 |
| IV. Total profit (Loss is listed with “-”) | 1,452,925.92 | -6,631,450.42 |
| Less: Income tax expense | ||
| V. Net profit (Net loss is listed with “-”) | 1,452,925.92 | -6,631,450.42 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 1,452,925.92 | -6,631,450.42 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 1,452,925.92 | -6,631,450.42 |
| 2.Minority shareholders’ gains and losses | ||
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss |
1.Other comprehensive income under equity method that can transfer to
gain/loss
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 1,452,925.92 | -6,631,450.42 |
| Total comprehensive income attributable to owners of parent Company | 1,452,925.92 | -6,631,450.42 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0040 | -0.0182 |
| (ii) Diluted earnings per share | 0.0040 | -0.0182 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last periodLegal Representative: Yuan XiaopingAccounting Principal: Fu ZongrenAccounting Firm’s Principal: Fu Zongren
4. Profit Statement of Parent Company
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Operating income | 19,079,779.41 | 4,981,872.00 |
| Less: Operating cost | 10,060,086.41 | 5,052,678.43 |
| Taxes and surcharge | 325,142.31 | 182,132.20 |
| Sales expenses | 2,720,548.17 | 2,095,194.24 |
| Administration expenses | 4,382,016.80 | 4,200,735.35 |
| R&D expenses | ||
| Financial expenses | 375,106.05 | -1,458.93 |
| Including: Interest expenses | 360,946.81 | 76,128.55 |
| Interest income | 17,992.78 | 89,063.27 |
Add: Other income
| Add: Other income | 233,438.24 | 262,840.35 |
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | ||
| II. Operating profit (Loss is listed with “-”) | 1,450,317.91 | -6,284,568.94 |
| Add: Non-operating income | 3,739.40 | 2,593.62 |
| Less: Non-operating expense | 822.60 | 349,129.52 |
| III. Total Profit (Loss is listed with “-”) | 1,453,234.71 | -6,631,104.84 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | 1,453,234.71 | -6,631,104.84 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 1,453,234.71 | -6,631,104.84 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve |
6.Translation differences arising on translation of foreign currency
financial statements
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 1,453,234.71 | -6,631,104.84 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0040 | -0.0182 |
| (ii) Diluted earnings per share | 0.0040 | -0.0182 |
5. Consolidated Cash Flow Statement
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 21,790,626.36 | 5,200,787.10 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 568.93 | 89,077.69 |
| Other cash received concerning operating activities | 580,370.32 | 501,830.36 |
| Subtotal of cash inflow arising from operating activities | 22,371,565.61 | 5,791,695.15 |
| Cash paid for purchasing commodities and receiving labor service | 3,524,106.46 | 2,862,000.80 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 5,824,917.18 | 5,523,279.64 |
Taxes paid
| Taxes paid | 498,863.63 | 311,265.46 |
| Other cash paid concerning operating activities | 1,903,204.29 | 1,884,340.17 |
| Subtotal of cash outflow arising from operating activities | 11,751,091.56 | 10,580,886.07 |
| Net cash flows arising from operating activities | 10,620,474.05 | -4,789,190.92 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | 400.00 | 300.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 400.00 | 300.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 3,333,776.67 | 4,541,624.47 |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 3,333,776.67 | 4,541,624.47 |
| Net cash flows arising from investing activities | -3,333,376.67 | -4,541,324.47 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 19,791,474.22 | |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 19,791,474.22 | |
| Cash paid for settling debts | 6,598,477.52 | |
| Cash paid for dividend and profit distributing or interest paying | 372,459.10 | 51,265.51 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 6,970,936.62 | 51,265.51 |
| Net cash flows arising from financing activities | -6,970,936.62 | 19,740,208.71 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | 316,160.76 | 10,409,693.32 |
| Add: Balance of cash and cash equivalents at the period -begin | 2,924,459.75 | 7,422,939.89 |
VI. Balance of cash and cash equivalents at the period -end
| VI. Balance of cash and cash equivalents at the period -end | 3,240,620.51 | 17,832,633.21 |
6. Cash Flow Statement of Parent Company
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 21,790,626.36 | 5,200,787.10 |
| Write-back of tax received | 568.93 | 89,063.27 |
| Other cash received concerning operating activities | 580,369.11 | 501,815.94 |
| Subtotal of cash inflow arising from operating activities | 22,371,564.40 | 5,791,666.31 |
| Cash paid for purchasing commodities and receiving labor service | 3,524,106.46 | 2,862,000.80 |
| Cash paid to/for staff and workers | 5,824,917.18 | 5,523,279.64 |
| Taxes paid | 498,863.63 | 311,217.66 |
| Other cash paid concerning operating activities | 1,902,894.29 | 1,883,965.75 |
| Subtotal of cash outflow arising from operating activities | 11,750,781.56 | 10,580,463.85 |
| Net cash flows arising from operating activities | 10,620,782.84 | -4,788,797.54 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | 400.00 | 300.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 400.00 | 300.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 3,333,776.67 | 4,541,624.47 |
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 3,333,776.67 | 4,541,624.47 |
| Net cash flows arising from investing activities | -3,333,376.67 | -4,541,324.47 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 19,791,474.22 | |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 19,791,474.22 |
Cash paid for settling debts
| Cash paid for settling debts | 6,598,477.52 | |
| Cash paid for dividend and profit distributing or interest paying | 372,459.10 | 51,265.51 |
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 6,970,936.62 | 51,265.51 |
| Net cash flows arising from financing activities | -6,970,936.62 | 19,740,208.71 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | 316,469.55 | 10,410,086.70 |
| Add: Balance of cash and cash equivalents at the period -begin | 2,923,474.26 | 7,421,452.59 |
| VI. Balance of cash and cash equivalents at the period -end | 3,239,943.81 | 17,831,539.29 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
| Item | Semi-annual of 2021 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital s | Other | |||||||||||||
ecurities
| ecurities | |||||||||||||||
| I. The ending balance of the previous year | 364,100,000.00 | 54,142,850.01 | -351,324,135.02 | 66,918,714.99 | 66,918,714.99 | ||||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 364,100,000.00 | 54,142,850.01 | -351,324,135.02 | 66,918,714.99 | 66,918,714.99 | ||||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 1,452,925.92 | 1,452,925.92 | 1,452,925.92 | ||||||||||||
| (i) Total comprehensive income | 1,452,925.92 | 1,452,925.92 | 1,452,925.92 | ||||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves |
2. Withdrawal of general
risk provisions
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 364,100,000.00 | 54,142,850.01 | -349,871,209.10 | 68,371,640.91 | 68,371,640.91 |
Amount of the previous period
In RMB
| Item | Semi-annual of 2020 | ||||||||||||
| Owners’ equity attributable to the parent Company | Minori | Total owners’ equity | |||||||||||
| Share capital | Other equity instrume | Capital reserve | Less: | Other | Reaso | Surpl | Provi | Retained profit | Other | Subtotal | |||
nt
| nt | Inventory shares | comprehensive income | nable reserve | us reserve | sion of general risk | ty interests | |||||||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 364,100,000.00 | 54,142,850.01 | -339,756,246.05 | 78,486,603.96 | 78,486,603.96 | ||||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 364,100,000.00 | 54,142,850.01 | -339,756,246.05 | 78,486,603.96 | 78,486,603.96 | ||||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -6,631,450.42 | -6,631,450.42 | -6,631,450.42 | ||||||||||||
(i) Total comprehensiveincome
| (i) Total comprehensive income | -6,631,450.42 | -6,631,450.42 | -6,631,450.42 | ||||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other |
(v) Reasonable reserve
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 364,100,000.00 | 54,142,850.01 | -346,387,696.47 | 71,855,153.54 | 71,855,153.54 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMB
| Item | Semi-annual of 2021 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
I. The ending balance of the previous year
| I. The ending balance of the previous year | 364,100,000.00 | 54,142,850.01 | -351,324,589.21 | 66,918,260.80 | ||||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 364,100,000.00 | 54,142,850.01 | -351,324,589.21 | 66,918,260.80 | ||||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 1,453,234.71 | 1,453,234.71 | ||||||||||
| (i) Total comprehensive income | 1,453,234.71 | 1,453,234.71 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period |
2. Usage in the report period
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 364,100,000.00 | 54,142,850.01 | -349,871,354.50 | 68,371,495.51 |
Amount of the previous period
In RMB
| Item | Semi-annual of 2020 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 364,100,000.00 | 54,142,850.01 | -339,757,154.25 | 78,485,695.76 | ||||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 364,100,000.00 | 54,142,850.01 | -339,757,154.25 | 78,485,695.76 | ||||||||
III. Increase/ Decrease in the period(Decrease is listed with “-”)
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -6,631,104.84 | -6,631,104.84 | ||||||||||
| (i) Total comprehensive income | -6,631,104.84 | -6,631,104.84 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 364,100,000.00 | 54,142,850.01 | -346,388,259.09 | 71,854,590.92 |
II. Company profile
1. Overview
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the "Company") is astandardized company limited by shares established on April 26, 1993 and restructured from Hainan SanyaDadonghai Tourism Centre Development Co., Ltd. with the approval of Hainan Shareholding System Pilot Groupoffice via its Document Qiong Gu Ban Zi [1993] No.11. On May 6, 1996, the Company was reorganized andseparated with the reply of Hainan Securities Management Office by its Document Qiong Zheng Ban [1996]No.58. On October 8, 1996 and January 28, 1997, the Company was approved to respectively issue 80 million Bshares and 14 million A shares on Shenzhen Stock Exchange and list for sales. On June 20, 2007, the Companycarried out the split share structure reform. The non-tradable shareholders of the Company paid shares to thetradable shareholders for obtaining the circulation rights, and the tradable shareholders got 3 shares for every 10shares. The Company belongs to tourism and catering service industry.
As at 30 June 2021, the Company's accumulative total issued capital was 364.1 million shares and the Company'sregistered capital was RMB 364.1 million. Legal representative: Yuan Xiaoping. Unified social credit code:
91460000201357188U. Domicile: Dadonghai, Hedong District, Sanya. Business scope: Accommodation andcatering industry (limited to branches); photography; flower bonsai, knitwear, general merchandise, hardware andelectrical equipment, chemical products (except franchised operations), daily necessities, industrial means ofproduction (except franchised operations), metal materials, machinery equipment; sales of train, bus and vehicletickets on an agent basis, etc. The Company's largest shareholder is Luoniushan Co., Ltd.
The financial statements were approved by all directors of the Company for disclosure on 19 August 2021.
Scope to the consolidated financial statementsAs of 30 June 2021, the subsidiary included into the Company's scope of consolidated financial statements is asfollows:
Subsidiary
| Subsidiary |
| Hainan Wengao Tourism Resources Development Co., Ltd.(hereinafter referred to as Wengao Tourism) |
III. Basis for the preparation of the financial statements
1.Preparation basis
The Company prepared financial statements in accordance with the Accounting Standards for BusinessEnterprises — Basic Standards and the specific accounting standards, the Accounting Standards for BusinessEnterprises - Application Guidance, the Accounting Standards for Business Enterprises - Interpretation and other
relevant provisions, issued by the Ministry of Finance, (hereinafter referred to collectively as the "AccountingStandards for Business Enterprises"), as well as the disclosure provisions of the Rules for the Compilation andSubmission of Information Disclosure by Companies Offering Securities to the Public No.15 - GeneralRequirements for Financial Reports.
2.Going concern
Due to the influence of COVID-19, the Company suffered a serious decline in annual operating revenue in 2020and suffered a large amount of losses. However, the current business situation has gradually recovered to normal,and it is expected that the Company's business activities will continue in the next 12 months.IV. Significant accounting policies and accounting estimates
1. Statement on compliance with the Accounting Standards for Business EnterprisesThe financial statements prepared by the Company meet requirements of the Accounting Standards for BusinessEnterprises, and truly and completely reflect the consolidated and the Company’s financial position as of 30 June,2021 as well as operation results and cash flows for the half year of 2021.
2. Accounting period
The accounting year is from January 1 to December 31 in calendar year.
3. Operating cycle
The Company's operating cycle is 12 months.
4.Functional currency
RMB is adopted as the functional currency.
5.Accounting treatment methods for business combinations under and not under common controlBusiness combination under common control: The assets and liabilities (including the goodwill arising from theacquisition of the combinee by the ultimate controller) acquired by the Company in business combinations aremeasured at book values of assets and liabilities of the combinee in the consolidated financial statements of theultimate controller on the combination date. The stock premium in the capital reserves is adjusted according to thedifference between the book value of the net assets acquired in business combination and the book value of theconsideration paid for the combination (or total par value of shares issued). If there is no sufficient stock premiumin the capital reserves for write-downs, the retained earnings shall be adjusted.
Business combination under different control: the cost of merger is the fair value of the assets, liabilities incurredor assumed and equity securities issued by the purchaser in order to obtain the control of the purchaser on thepurchase date. The difference between the cost of the merger and the share of the fair value of the identifiable netassets acquired by the purchaser in the merger shall be recognized as goodwill; The difference between the merger
cost and the share of the fair value of the identifiable net assets acquired by the purchaser in the merger shall berecorded into the profit and loss of the current period. The identifiable assets, liabilities and contingent liabilitiesobtained by the purchaser in the merger meeting the recognition conditions shall be measured at fair value on thepurchase date.
The expenses directly related to the enterprise merger shall be recorded into the current profit and loss whenincurred. The transaction cost of issuing equity securities or debt securities for the purpose of business mergershall be included in the initial recognized amount of equity securities or debt securities.
6. Preparation methods of consolidated financial statements
6.1 Scope of consolidation
The scope of consolidated financial statements of the Company is determined on the basis of control, and thescope of consolidated financial statements shall be including the Company and all its subsidiaries.
6.2 Procedures of consolidation
The Company regards the whole enterprise group as an accounting subject and prepares consolidated financialstatements in accordance with the unified accounting policy, reflecting the overall financial situation, operatingresults and cash flow of the enterprise group.The Company and subsidiaries, subsidiaries between the impact ofinternal transactions to offset. If the internal transaction indicates that the relevant assets have impairment losses,the full recognition of this part of the loss.If the accounting policy adopted by the subsidiary company and theaccounting period are inconsistent with the company, the necessary adjustments shall be made in accordance withthe Company's accounting policy and accounting period when preparing the consolidated financial statements.
The owner's equity of the subsidiary, the current net profit and loss and the share of the minority shareholders inthe current comprehensive income are listed separately under the owner's equity item in the consolidated balancesheet, the net profit item in the consolidated profit table and the total comprehensive income item in theconsolidated profit table. The current loss shared by the minority shareholders of the subsidiary exceeds thebalance formed by the minority shareholders' share in the initial owner's equity of the subsidiary, thus reducing theequity of several shareholders.
1) Increase of subsidiaries or business
During the reporting period, the operating results and cash flows of the subsidiary or business from consolidationperiod to the end of the reporting period shall be included in the consolidated financial statements as a result of themerger of the subsidiary or business under the same control.Where the investor under the same control can be controlled for reasons such as additional investment, the equityinvestment held prior to the acquisition of control by the merged party has been recognized as relevant gains andlosses, other consolidated income and other net assets changes between the date of acquisition of the originalequity and the date of the merger and the date of the merger.
During the reporting period, the consolidated financial statements shall be incorporated into the consolidatedfinancial statements on the basis of the fair value of identifiable assets, liabilities and contingent liabilities asdetermined on the date of purchase, as a result of the consolidation of subsidiaries or businesses under the samecontrol.
If, for reasons such as additional investment, the investor under the same control can be controlled, the equity ofthe buyer held before the date of purchase shall be remeasured according to the fair value of the equity on the dateof purchase. The difference between fair value and book value is included in current investment income. Othercomprehensive income and other changes in owner's equity under equity method accounting which can bere-classified into profit and loss after the share of the buyer held before the purchase date are converted into thecurrent investment income of the purchase date.
2) Disposal of subsidiaries
?General method of treatmentWhen the control right of the investor is lost due to the disposal of part of the equity investment or other reasons,the remaining equity investment after disposal shall be remeasured according to its fair value on the date of loss ofcontrol. The sum of the consideration obtained by the disposal equity and the fair value of the remaining equity,less the difference between the share of the net assets and the sum of goodwill that should be continuouslycalculated by the original subsidiary from the date of purchase or the date of merger, and the investment income inthe current period of loss of control. Other comprehensive income related to the equity investment of the originalsubsidiary company and other owner's equity changes under the accounting of equity method, which can bereclassified into profit and loss, are converted into current investment income when losing control right.
②Disposal of subsidiaries by stages
If the control is lost due to disposal of the equities in subsidiaries through multiple transactions by stages, and theterms, conditions and economic impact of the transactions related to the enterprise's disposal of its investment inthe subsidiaries meet one or more of the following circumstances, it usually indicates that multiple transactionsshould be included in a package transaction:
i. These transactions are concluded at the same time or under the consideration of mutual effect;ii. These transactions as a whole can reach a complete business result;iii. The occurrence of a transaction depends on the occurrence of at least one other transaction;iv. A single transaction is uneconomical but is economical when considered together with other transactions.
If each transaction is a package transaction, the transaction shall be treated as a transaction dealing with thesubsidiary and losing control. Before the loss of control, the difference between the disposal price and the share ofthe net assets of the subsidiary corresponding to the disposal investment shall be recognized as other consolidatedincome in the consolidated financial statements and transferred to the gains and losses of the current period of lossof control when the control is lost.
If each transaction is not a package transaction, prior to the loss of control, the equity investment of the subsidiaryshall be partially disposed of without loss of control; in the event of loss of control, Accounting treatment shall becarried out according to the general treatment method of the disposal subsidiary.
3) Purchase of minority interest of subsidiaries
Adjust the equity premium in the capital reserve in the consolidated balance sheet, if the equity premium in thecapital reserve is insufficient to reduce the equity premium in the capital reserve, adjust the retained earnings.
4) Partial disposal of equity investments in subsidiaries without losing controlThe difference between the disposal price and the disposal of long-term equity investment shall enjoy the share ofnet assets continuously calculated by the subsidiary from the date of purchase or merger, and adjust the equitypremium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve isinsufficient, the retained earnings shall be adjusted.
7.Classification of joint venture arrangements and accounting treatment for joint venturesThe joint venture arrangement is divided into joint operation and joint venture.Joint operation refers to the joint venture arrangement in which the joint venture party enjoys the assets related tothe arrangement and bears the liabilities related to the arrangement.The Company confirms the following items relating to the share of interests in joint operations:
(1) To recognize the assets held separately by the Company and the assets held jointly in accordance with itsshare;;
(2) Liabilities undertaken by the Company solely and liabilities jointly undertaken by the Company based onshares held;
(3) Revenue from the sales of output share enjoyed by the Company in the joint operation;
(4) Revenue from the sales of the joint operation output based on the shares held by the Company; and
(5) Separate costs, and costs for the joint operation based on the shares held by the Company.The company's investment in the joint venture using equity method accounting, see this note "III.(13) Long-termequity investment".
8.Recognition criteria of cash and cash equivalents
In preparing the statement of cash flows, cash on hand and deposits that can be used for payment at any time arerecognized as cash. An investment that has four conditions: short duration (due within three months from the dateof purchase), strong liquidity, easy conversion to known cash and low risk of change in value is identified as acash equivalent.
9. Foreign currency business and statement translation
Foreign currency business uses the spot exchange rate on the date of transaction as the conversion rate to convertthe foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate
on the balance sheet date, and the resulting exchange difference, Except for foreign currency special loans relatedto the purchase and construction of assets that meet the capitalization conditions, the exchange difference isrecorded into the current profit and loss.
10. Financial instruments
When the Company becomes a party to a financial instrument contract, it recognizes a financial asset, financialliability or equity instrument.
10.1Classification of financial instruments
According to the business model of the Company's management of financial assets and the characteristics of thecontract cash flow of financial assets, financial assets are classified at the time of initial recognition as: financialassets measured at amortized cost, financial assets measured at fair value and recorded in other comprehensiveincome and financial assets measured at fair value and recorded in the profits and losses of the current period.
The Company will meet the following conditions and not designated as fair value measurement and its changesinto the current profit and loss of financial assets, classified as amortized cost measurement of financial assets:
- The business model is aimed at collecting contract cash flows;- Contract cash flows are payments only for principal and interest based on outstanding principal amounts.The Company will also meet the following conditions and is not designated as fair value measurement and itschanges into the current profit and loss of financial assets, classified as fair value measurement and its changesinto other comprehensive income financial assets (debt instruments):
- The business model targets both the collection of contract cash flows and the sale of the financial asset;- Contract cash flows are payments only for principal and interest based on outstanding principal amounts.
For non-transactional equity investment, the Company may irrevocably designate it at the time of initialrecognition as a financial asset measured at fair value and recorded in other comprehensive income (equityinstrument). The designation is made on the basis of a single investment, and the relevant investment conforms tothe definition of equity instruments from the issuer's point of view.
In addition to the above financial assets measured at amortized cost and at fair value and recorded in othercomprehensive income, The Company classifies all remaining financial assets as financial assets measured at fairvalue and recorded in the profits and losses of the current period.At the time of initial recognition, if accountingmismatches can be eliminated or significantly reduced, The Company may irrevocably designate financial assetsthat should be classified as amortized cost or measured at fair value and whose changes are included in othercomprehensive income as financial assets measured at fair value and recorded in the profits and losses of thecurrent period.
Financial liabilities are classified at the time of initial recognition as: financial liabilities measured at fair valueand recorded in current profits and losses and financial liabilities measured at amortized cost.
Financial liabilities that meet one of the following conditions may be designated at the time of initial measurementas financial liabilities measured at fair value and whose changes are recorded into the profits and losses of thecurrent period:
1) this designation can eliminate or significantly reduce accounting mismatches.
2) manage and evaluate the financial liability portfolio or financial assets and financial liabilities portfolio on thebasis of fair value according to the enterprise risk management or investment strategy specified in the officialwritten document, And report to key managers on this basis within the enterprise.
3) the financial liability contains embedded derivatives that need to be split separately.
10.2Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables,long-term receivables, creditor's rights investment, etc., are initially measured at fair value, and the relatedtransaction costs are included in the initial recognition amount; Accounts receivable that do not contain significantfinancing components and accounts receivable that the Company has decided not to consider financingcomponents for more than one year are initially measured at the contract transaction price.Interest calculated by the real interest rate method during the holding period is recorded into the current profit andloss.Upon recovery or disposal, the difference between the obtained price and the book value of the financial asset isrecorded into the current profit or loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensiveincome, including receivables financing, other debt investments, etc., shall be measured at fair value, and therelevant transaction costs shall be included in the initial recognized amount. The financial asset is subsequentlymeasured at fair value, and changes in fair value are included in other comprehensive gains and losses exceptinterest, impairment losses or gains and gains and exchange gains calculated using the real interest rate method.
Upon termination of recognition, the accumulated gains or losses previously recorded in other comprehensiveincome shall be transferred from other comprehensive income and recorded in the current profits and losses.
(3) Financial assets (equity instruments) measured at fair value and whose changes are included in other
consolidated income
Financial assets (equity instruments) measured at fair value and whose changes are included in othercomprehensive income, including investments in other equity instruments, shall be initially measured at fair value,and relevant transaction costs shall be included in the initial recognized amount. The financial assets are measuredaccording to the fair value, and whose changes of the fair value are included in other comprehensive income. Thedividends obtained are recorded in the current profits and losses.
Upon termination of recognition, accumulated gains or losses previously recorded in other comprehensiveearnings are transferred from other comprehensive earnings and recorded in retained earnings.
(4) Financial assets measured at fair value and whose changes are included in the current profits and lossesFinancial assets measured at fair value and whose changes are included in the current profits and losses, includingtrading financial assets, derivative financial assets, other non-current financial assets, etc., shall be measured atfair value, and the relevant transaction expenses shall be included in the current profits and losses. The financialassets are measured at fair value, and changes in fair value are included in the current profit and loss.
(5) Financial liabilities measured at fair value and whose changes are included in the current profit and lossFinancial liabilities measured at fair value and whose changes are included in the current profits and lossesinclude trading financial liabilities and derivative financial liabilities, which are initially measured at fair value,and the relevant transaction expenses are included in the current profit and loss. The financial liability is measuredat fair value, and changes in fair value are included in the current profit and loss.
Upon termination of recognition, the difference between the book value and the consideration price is recorded inthe current profits and losses.
(6) Financial liabilities measured at amortization costs
Financial liabilities measured at amortization costs include short-term borrowings, notes payable, accountspayable, other payable, long-term borrowings, bonds payable, long-term payable, and shall be initially measuredat fair value, and related transaction costs are included in the initial recognized amount.
The interest calculated using the actual interest rate method during the holding period is included in the currentprofits and losses.
Upon termination of recognition, the difference between the consideration price and the book value of thefinancial liability shall be recorded in the current profits and losses.
10.3Financial asset termination recognition and financial asset transfer
Upon meeting one of the following conditions, the Company terminates the recognition of financial assets:
- Termination of contractual rights to collect cash flows from financial assets;- Financial assets have been transferred and almost all risks and rewards of ownership of financial assets havebeen transferred to the transferring party;- Financial assets have been transferred and although the Company has neither transferred nor retained almost allrisks and rewards in the ownership of financial assets, it has not retained control over financial assets.
In the event of a transfer of financial assets, if almost all risks and rewards in the ownership of financial assets areretained, the recognition of the financial assets shall not be terminated.
In judging whether the transfer of financial assets meets the above conditions for the termination of financialassets, the principle of substance over form is adopted.The company distinguishes the transfer of financial assets into the overall transfer of financial assets and partialtransfer. If the transfer of financial assets as a whole meets the conditions for termination of recognition, thedifference between the following two amounts shall be recorded into the profits and losses of the current period:
(1) The carrying value of the financial assets transferred;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of the change infair value that was originally directly included in the owner's equity (where the financial assets involved in thetransfer are financial assets (debt instruments) measured at fair value and whose changes are included in otherconsolidated income.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of thetransferred financial assets as a whole shall be apportioned according to their relative fair value between thetermination of recognition and the non-termination of recognition, The difference between the following twoamounts shall be recorded into the profits and losses of the current period:
(1) To terminate the carrying value of the recognized portion;
(2) The consideration of the termination of the recognition portion corresponds to the sum of the amount of thetermination of the recognition portion (where the transferred financial assets are financial assets (debt instruments)measured at fair value and whose changes are included in other consolidated income) in the cumulative amount ofthe change in fair value originally directly included in the owner's equity.If the transfer of financial assets does not meet the conditions for termination of recognition, the financial assetshall continue to be recognized, and the consideration received shall be recognized as a financial liability.
10.4De-recognition of financial liabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financialliability is derecognized or any part thereof shall be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financialliabilities are substantially different from the existing ones in terms of contract terms, the existing financialliabilities shall be derecognized, and at the same time, the new financial liability shall be recognized.
Where substantive changes are made to the contract terms of existing financial liability in whole or in part, theexisting financial liabilities or part thereof will be derecognized, and the financial liability the terms of which havebeen modified will be recognized as a new financial liability.
Where financial liabilities are derecognized in whole or in part, the difference between the book value of thefinancial liabilities derecognized and the consideration paid (including non-cash assets transferred out or newfinancial liabilities borne) shall be included in the current profit or loss.
Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate the entirebook value of whole financial liabilities according to the comparative fair value of the part that continues to berecognized and the de-recognized part. The difference between the book value allocated to the derecognized partand the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shallbe included in the current profit or loss.
10.5Determination method of the fair value of financial assets and financial liabilitiesThe fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. Thefair value of a financial instrument, for which there is no active market, is determined by using valuationtechniques. At the time of valuation, the Company adopts the techniques that are applicable in the current situationand supported by enough available data and other information, selects the input values that are consistent with thefeatures of assets or liabilities as considered by market participants in relevant asset or liability transactions, andgives priority to use relevant observable inputs. Unobservable inputs are used only under the circumstance when itis impossible or unobservable inputs to obtain relevant observable inputs.
10.6 Test method and accounting treatment for impairment of financial assetsThe Company considers all reasonable and based information, including forward-looking information, estimatethe expected credit loss of financial assets measured at amortized cost and financial assets (debt instruments)measured at fair value and recorded in other consolidated income in a single or combined manner. Themeasurement of expected credit loss depends on whether credit risk increases significantly after initial recognitionof financial assets.If the credit risk of the financial instrument has increased significantly since the initial confirmation, the Companymeasures its loss preparation at the amount equivalent to the expected credit loss of the financial instrument forthe whole life of the financial instrument; If the credit risk of the financial instrument has not increasedsignificantly since the initial confirmation, the Company measures its loss preparation at the amount equivalent to
the expected credit loss of the financial instrument for the next 12 months.The resulting increase or reversal ofloss preparation shall be recorded as impairment loss or gain in the current profit or loss.Usually more than 30 days overdue, the Company believes that the credit risk of the financial instrument hasincreased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has notincreased significantly since the initial confirmation.If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the creditrisk of the financial instrument has not increased significantly since the initial recognition.If there is objective evidence that a financial asset has been devalued, the Company shall make provision for theimpairment of the financial asset on a single basis.
11. Note receivable
Consistent with the accounting policy of account receivable
12. Account receivable
For accounts receivable, whether or not it contains significant financing elements, the Company is prepared tomeasure losses in accordance with the expected credit loss for the entire life span. For the existence of objectiveevidence to show the existence of impairment, as well as other accounts receivable applicable to the individualevaluation of the impairment test, to confirm the expected credit loss, the provision for individual impairment. Foraccounts receivable without objective evidence of impairment or when a single financial asset is unable to assessthe expected credit loss at reasonable cost, the company divides the accounts receivable into several combinationsaccording to the characteristics of credit risk. The basis for determining the combination is as follows:
Portfolio Name
| Portfolio Name | Basis |
| Account Receivables Portfolio 1 | External Customers for Account Receivables |
| Account Receivables Portfolio 2 | Consolidated Related Party Customers for Account Receivables |
For the account receivables divided into portfolios, the Company refers to the history of credit loss experience,combined with the current situation and the forecast of the future economic situation, to prepare tables of aging ofaccount receivables and comparison tables of expected credit loss rate of the entire duration, and to calculate theexpected credit lossFor lease receivables, long-term receivables formed by the Company through the sale of goods or the provision ofservices, the Company chooses to always measure its loss provisions at an amount equal to the expected creditloss for the entire duration.
13. Receivables financing
Consistent with the Accounting Standards for Business Enterprise
14.Other receivable
Methods of determining for expected credit losses of other receivable and accounting treatmentFor other receivables, if the credit risk has not significantly increased since the initial recognition, it is in the firststage. The Company shall measure the loss provision according to the expected credit loss in the next 12 months.If the credit risk has increased significantly since the initial recognition, but the credit impairment has notoccurred, it is in the second stage. If the credit impairment has occurred since the initial recognition, it is in thethird stage. The Company shall measure the loss provision according to the expected credit loss of the instrumentthroughout its life.The Company divides other receivables into several portfolios based on the credit risk characteristics. The basisfor determining the portfolio is as follows:
Portfolio Name
| Portfolio Name | Basis |
| Other Receivables Portfolio 1 | Deposit, Security Deposit and Reserve Receivables |
| Other Receivables Portfolio 2 | Receivables of Advance Payment for Another Party |
| Other Receivables Portfolio 3 | Other Account Receivables |
For other receivables divided into portfolios, the Company refers to historical experience in credit loss, combinedwith the current situation and expected future economic situation, and by default risk exposure and the credit lossrate within next 12 months or the whole duration, to calculate the expected credit losses.
15. Inventory
15.1Classification of inventories and cost
The inventories are classified into: raw materials, commodity stocks, low-value consumables, food materials,fuels, etc.
15.2Measurement of inventories dispatched
The commodity stocks are accounted for based on their selling prices, and the difference between the commoditypurchasing price and the selling price is adjusted monthly by the comprehensive spread rate method. Theinventory materials are measured at actual cost when purchased and warehoused, and measured using the first-infirst-out method when applied for use and dispatched. Low-value consumables are amortized on a one-off basiswhen applied for use.
15.3Determining basis of the net realizable value of inventories and method for inventory depreciationreserveOn the balance sheet date, inventory should be measured according to the lower cost and net realizable value.When the inventory cost is higher than its net realizable value, it shall be prepared to raise the inventory price. Netrealizable value refers to the estimated selling price of inventory in daily activities minus the estimated cost to beincurred at the time of completion, the estimated sales expenses and the amount of related taxes and fees.
Inventory of goods directly used for sale, such as finished goods, goods in stock and materials used for sale, todetermine the net realizable value in the normal course of production and operation at the estimated selling priceof the inventory minus the estimated sales expenses and related taxes; inventory of materials requiring processingto determine the net realizable value in the normal course of production and operation at the estimated sellingprice of the finished product minus the estimated costs to be incurred at the time of completion, estimated salesexpenses and related taxes; The net realizable value of inventory held for the execution of a sales contract or alabor contract is calculated on the basis of the contract price. If the quantity of inventory held is more than thequantity ordered in the sales contract, The net realizable value of excess inventory is calculated on the basis ofgeneral sales price.
If the factors affecting the previous write-down of inventory value have disappeared, resulting in the net realizablevalue of inventory being higher than its book value, it shall be reversed within the reserve amount of the originalinventory falling price, and the amount transferred back shall be recorded into the profits and losses of the currentperiod.
15.4Inventory system
Perpetual inventory system is adopted.
15.5Amortization method for low-cost consumables and packaging materials
(1) Low-cost consumables are amortized in a lump sum;
(2) Packaging materials are amortized in a lump sum.
16. Contractual assets
16.1Methods and criteria for the recognition of contract assets
The Company lists contract assets or contractual liabilities in the balance sheet according to the relationshipbetween performance obligations and customer payments. The Company's right to receive consideration (anddepends on factors other than the passage of time) for the transfer of goods or services to customers is listed as acontract asset. Contract assets and contractual liabilities under the same contract are shown in net terms. The
Company's right to collect consideration from customers unconditionally (depending on the passage of time only)is shown separately as receivables.
16.2 Methods of determining expected credit loss of contract assets and accounting treatmentThe method of determining the expected credit loss of the contract assets and the method of accounting treatmentare detailed in the test method and accounting treatment method of the impairment of the financial assets in noteIII(10).6. Test methods and accounting treatment for impairment of financial assets"
17. Contract costs
Contract cost includes contract performance cost and contract acquisition cost.If the costs incurred by the Company for the performance of the contract do not fall within the scope of therelevant standards, such as inventory, fixed assets or intangible assets, it shall be recognized as an asset as thecontract performance cost when the following conditions are met:
? The cost is directly related to a current or expected contract.? This cost increases the company's future resources for performance obligations.? The cost is expected to be recovered.If the incremental cost incurred by the Company in order to obtain the contract is expected to be recovered, it shallbe recognized as an asset as the contract acquisition cost.The assets related to the contract cost shall be amortized on the same basis as the recognition of the goods orservices income related to the asset; However, if the amortization period of the contract acquisition cost does notexceed one year, the Company shall account for the profits and losses of the current period at the time ofoccurrenceIf the book value of the assets related to the contract cost is higher than the difference between the following twoitems, the Company shall make provision for the impairment of the excess part and shall confirm the impairmentloss of the assets:
(1) The remaining consideration is expected to be obtained as a result of the transfer of goods or services relatedto the asset;
(2) Estimated costs to be incurred for the transfer of the relevant goods or services.If the above-mentioned difference is higher than the book value of the asset, the company shall return the originalimpairment provision and account for the profits and losses of the current period. However, the book value of thetransferred assets does not exceed the book value of the assets on the date of return.
18.Long-term equity investment
18.1Judgment criteria for joint control and significant influence
Common control refers to the common control of an arrangement according to the relevant agreement, and therelated activities of the arrangement must be agreed by the participants who share the control right before they can
make decisions. If the company, together with other partners, exercises joint control over the invested unit and hasthe right to the net assets of the invested unit, the invested unit shall be the joint venture of the company.Major influence refers to the power to participate in the decision-making of the financial and business decisions ofthe invested units, but it cannot control or jointly control the formulation of these policies with other parties. If theCompany can exert great influence on the invested unit, the invested unit shall be a joint venture of the company.
18.2Determination of initial investment cost
1) Long-term equity investments resulting from merger
For the long-term equity investment of the subsidiary formed by the merger under the same control, the initialinvestment cost of the long-term equity investment is based on the share of the book value of the owner's equity ofthe merged party in the consolidated financial statements of the final controlling party on the merger date.Thedifference between the initial investment cost of long-term equity investment and the book value of paymentconsideration is adjusted to adjust the equity premium in the capital reserve; when the equity premium in thecapital reserve is insufficient, the retained earnings are adjusted.If the initial investment cost of the long-termequity investment recognized in accordance with the above principles is the difference between the book value ofthe long-term equity investment before the merger and the book value of the new consideration of the sharesfurther obtained on the date of the merger, the equity premium is adjusted, and the retained earnings are reduced.For the long-term equity investment of subsidiaries formed by the merger of enterprises under the same control,the combined cost determined on the purchase date is taken as the initial investment cost of the long-term equityinvestment. If the invested unit under the same control can be controlled due to additional investment and otherreasons, the initial investment cost shall be taken as the sum of the original equity investment book value plus thenew investment cost.
2) Long-term equity investments obtained by means other than merger
Long-term equity investments obtained by cash payment are based on the actual purchase price as the initialinvestment cost.The long-term equity investment obtained by issuing equity securities shall be regarded as the initial investmentcost according to the fair value of issuing equity securities.
18.3Subsequent measurements and recognition of profit or loss
1) Long-term equity investments accounted for under cost method
The Company's long-term equity investment in subsidiaries is accounted for by cost method unless the investmentmeets the conditions for holding for sale. In addition to the actual payment of the investment or the declared butnot yet issued cash dividends or profits contained in the consideration, the company shall recognize the currentinvestment income in accordance with the cash dividend or profit declared by the invested unit.
2) Long-term equity investments accounted for under the equity methodThe long-term equity investment of joint venture and joint venture shall be accounted by equity method. When the
initial investment cost is greater than the investment, it should enjoy the difference of the fair value share of theidentifiable net assets of the invested unit, and not adjust the initial investment cost of the long-term equityinvestment.The Company shall recognize the investment income and other combined income according to the net profit andloss realized by the invested unit and the share of other combined income, and adjust the book value of thelong-term equity investment.When recognizing the share of the net profit and loss of the invested unit, other comprehensive income and otherowner's equity changes, it shall be based on the fair value of the identifiable net assets of the invested unit at thetime of obtaining the investment, and shall be confirmed after adjusting the net profit and other comprehensiveincome of the invested unit in accordance with the accounting policy and accounting period of the company.The unrealized internal transaction gains and losses between the Company and the joint venture and the jointventure shall be offset by the portion attributable to the Company calculated in proportion to the amount to beenjoyed, and the investment income shall be recognized on this basis, except where the assets invested or soldconstitute business. If the unrealized internal transaction loss with the invested unit belongs to the impairment lossof assets, the full amount shall be confirmed.The net loss of a company to a joint venture or a joint venture shall, in addition to the obligation to bear additionallosses, be reduced to zero by the book value of the long-term equity investment and other long-term interests thatessentially constitute the net investment in the joint venture or joint venture. If the joint venture or joint venturerealizes net profit after the joint venture or joint venture, the Company shall restore the confirmed income sharingamount after the income sharing amount makes up for the unrecognized loss share amount.
3) Disposal of long-term equity investments
Disposal of long-term equity investment, its book value and the actual acquisition price difference is accountedinto the current profit and loss.Where long-term equity investment accounted by part of the disposal equity method is still accounted for by theequity method, the other comprehensive income recognized by the original equity method is carried forwardaccording to the corresponding proportion on the same basis as the assets or liabilities directly disposed of by theinvested unit, and the other owner's equity changes are transferred to the current profit and loss proportionally.If the joint control or significant influence on the invested unit has been lost due to the disposal of equityinvestment, other comprehensive income recognized by the original equity investment due to the use of equityaccounting shall be treated on the same basis as the direct disposal of related assets or liabilities by the investedunit.Where the control of the invested unit has been lost due to the disposal of part of the equity investment and otherreasons, when preparing the individual financial statements, the remaining equity can be jointly controlled orsignificantly affected by the invested unit, and shall be accounted for according to the equity method, and adjustedby equity method accounting when the remaining equity is regarded as acquired. Other comprehensive incomerecognized prior to obtaining the control of the invested unit shall be carried forward proportionally on the same
basis as the assets or liabilities directly disposed of by the invested unit, and transferred to the profits and losses ofthe current period due to the changes in other owners' equity recognized by equity method accounting; If thesurplus equity cannot exercise joint control or exert significant influence on the invested unit, it shall berecognized as a financial asset, and the difference between the fair value and the book value on the date of loss ofcontrol shall be recorded into the profits and losses of the current period.Where the subsidiary equity investment is disposed of step by step through multiple transactions until the loss ofcontrol is a package transaction, each transaction is treated as a transaction that disposes of the subsidiary equityinvestment and loses control. If it is not a package transaction, each transaction shall be treated separately.
19. Investment properties
Measurement modeMeasured by cost methodDepreciation or amortization methodThe investment properties refer to the properties held for earning rentals or/and capital appreciation, includingleased land use right, land use right held for transfer upon appreciation, and leased building (including self-builtbuildings or buildings developed for renting or buildings under construction or development for future renting).The subsequent expenditure related to investment real estate is included in the cost of investment real estate whenthe relevant economic benefits are likely to flow in and its cost can be reliably measured; otherwise, it is recordedinto the profits and losses of the current period when it occursThe Company measures the existing investment properties by using the cost model. For investment propertymeasured by using the cost model, the buildings for lease shall be depreciated by using policies the same as usedfor fixed assets of the Company, and the land use rights for lease shall be amortized by using the same policies asapplicable to intangible assets.
20. Fixed assets
20.1 Recognition criteria
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting orbusiness management with useful lives exceeding one year. Fixed assets are recognized when they simultaneouslymeet the following conditions:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2) The costs of the fixed assets can be measured reliably.
Fixed assets are initially measured at cost, taking into account the impact of expected disposal costs.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefits
associated with them are likely to flow in and their costs can be reliably measured; for the replaced part, the bookvalue is terminated;All other subsequent expenditures are recorded at the time of occurrence into the current profit or loss
20.2Depreciation method
Asset type
| Asset type | Depreciation method | Year for depreciation | Residual value rate | Yearly depreciation rate |
| Buildings and constructions | Straight-line method | 20-40 years | 5% | 4.75%-2.37% |
| Machinery equipment | Straight-line method | 8-20 years | 5% | 11.87%-4.75 |
| Electronic entertainment equipment | Straight-line method | 5-16 years | 5% | 19%-5.93% |
| Transportation equipment | Straight-line method | 7-12 years | 5% | 13.57%-7.91% |
| Other equipment | Straight-line method | 8 years | 5% | 11.87% |
Depreciation of fixed assets is classified by the method of average life, and the depreciation rate is determinedaccording to the category of fixed assets, the expected useful life and the estimated net residual value rate.For thefixed assets with impairment provisions, the depreciation amount shall be determined in the future periodaccording to the book value after deducting the impairment preparation and according to the useful life.If theservice life of each component of fixed assets is different or the economic benefits are provided to the enterprisein different ways, different depreciation rates or depreciation methods are selected to calculate depreciationseparately.The fixed assets leased by financial lease adopt depreciation policy consistent with their own fixed assets.If it canreasonably determine that ownership of the leased assets will be acquired at the expiration of the lease term,depreciation shall be calculated within the useful life of the leased assets; if it is impossible to reasonablydetermine the ownership of the leased assets at the expiration of the lease term, Depreciation is calculated within ashorter period of the lease term and the useful life of the leased assets.
20.3Identification basis, valuation method and depreciation of the financing leased fixed assetsIf any of the following conditions is stipulated in the terms of the lease agreement signed between the companyand the lessee, it shall be recognized as the financing leased assets:
1) After the expire of the lease term, the ownership of the leased assets shall be vested in the company;
2) The company has an option to purchase the asset, the purchase price is far less than the fair value of the assetwhen the option is exercised;
3) The leasing term is the majority of the life of the leased asset;
4) The present value of the minimum lease payment on the beginning of the lease does not have many differencesfrom the fair value of the asset;
5) The leased assets are of a special nature and can only be used by the lessee if they are not substantiallymodifiedOn the starting date of the lease, the company takes the lower between the fair value of the leased asset and thepresent value of the minimum lease payment as the book value of the leased asset, and the minimum leasepayment as the book value of the long-term payable, and the difference between the fair value of the leased assetand the present value of the minimum lease payment as the unrecognized financing fee.
21. Construction in progress
The book-entry values of the fixed assets are stated at total expenditures incurred before reaching workingcondition for their intended use. Where a construction in progress reaches the working condition for its intendeduse but the final account for completion is not made yet, it shall be transferred into fixed assets from the datewhen it reaches the working condition for intended use at the estimated value according to the project budget,construction price or actual cost, and the depreciation of the said fixed assets shall be accrued according to theCompany's depreciation policies applicable to fixed assets. After the final account for completed project is done,the Company adjusts the original estimated value of the fixed asset in accordance with the actual cost, but doesnot adjust the provision for such depreciation that had been accrued.
22. Borrowing costs
22.1Recognition principles of capitalization of borrowing costs
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction orproduction of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; otherborrowing costs should be recognized as costs according to the amount incurred and be included into currentprofit and loss.Assets meeting the capitalization requirements refer to fixed assets, investment properties and inventories, etc.that need to be purchased, constructed or produced for a long time to be available for intended use or sale.
22.2Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of capitalization,excluding the period of capitalization suspension of borrowing costs.Borrowing costs may be capitalized only when all the following conditions are met:
1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or theundertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,have already been incurred;
2) Borrowing costs have already been incurred; and
3) The acquisition and construction or production activities which are necessary to prepare the assets for theirintended use or sale have already been started.Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible forcapitalization have reached the working condition for their intended use or sale.
22.3Period of capitalization suspension
If the acquisition, construction or production activities of assets eligible for capitalization are abnormallyinterrupted and such condition lasts for more than three months, the capitalization of borrowing costs should besuspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible forcapitalization to reach the working conditions for their intended use or sale, the borrowing costs continue to becapitalized. Borrowing costs incurred during the interruption are recognized as the current profit or loss andcontinue to be capitalized until the acquisition, construction or production of the assets restarts.
22.4Calculation method of capitalization amount of borrowing costs
For special loans borrowed for the purchase or production of assets that meet the capitalization conditions, theborrowing costs actually incurred in the current period shall be specially borrowed, less the amount of interestincome earned by the unused loan funds deposited in the bank or investment income obtained by temporaryinvestment to determine the capitalized amount of the borrowing costs.For a general loan occupied for the purchase or production of assets that meet the capitalization conditions, theamount of borrowing expenses to be capitalized shall be calculated according to the weighted average of thecumulative asset expenditure exceeding the part of the special loan multiplied by the capitalization rate of thegeneral loan occupied. The capitalization rate is determined by the weighted average real interest rate of thegeneral loan.During the capitalization period, the exchange difference between the principal and interest of the foreigncurrency special loan shall be capitalized and included in the cost of the assets eligible for capitalization. Theexchange difference between the principal and interest of foreign currency loans other than foreign currencyspecial loans is recorded into the current profit and loss.
23. Intangible assets
23.1 Measurement method, useful lives and impairment testing
1) Measurement of intangible assets
The Company initially measures intangible assets at cost on acquisition:
The costs of externally purchased intangible assets include purchase prices, relevant taxes and surcharges andother directly attributable expenditures incurred to prepare the assets for their intended uses.
2)Estimate of the useful life of the intangible assets with definite useful lives
Item
| Item | Estimated useful life | Amortization method | Basis |
| Land use right | 50 years | Straight-line amortization method | Useful life prescribed in the Certificate of Land Use Right |
3) Determination basis of intangible assets with indefinite useful lives
The useful lives of the intangible assets are analyzed and determined on acquisition.Intangible assets with definite useful lives shall be amortized within the period when the intangible assets generateeconomic benefits for the Company; if the said period cannot be forecast, the intangible assets shall be deemed asthose with indefinite useful lives and shall not be amortized.As at the balance sheet date, the Company had no intangible assets with indefinite useful life.
24. Long-term assets impairment
Long-term equity investment, investment real estate measured by cost model, fixed assets, construction projects inprogress, intangible assets with limited useful life, oil and gas assets and other long-term assets, if there are signsof impairment on the balance sheet date, carry out impairment tests. If the impairment test results show that therecoverable amount of the asset is lower than its book value, the impairment provision shall be made according toits difference and included in the impairment loss. The recoverable amount is the higher between the fair value ofthe asset minus the disposal cost and the present value of the expected future cash flow of the asset. The assetimpairment provision is calculated and confirmed on the basis of a single asset. If it is difficult to estimate therecoverable amount of a single asset, the recoverable amount of the asset group is determined by the asset groupto which the asset belongs. The asset group is the smallest portfolio that can independently generate cash inflows.
For the goodwill formed by the merger of the enterprise, the intangible assets with uncertain service life, and theintangible assets that have not reached the usable state, whether or not there are signs of impairment, at least at theend of each year, the impairment test is carried out.
The Company conducts a goodwill impairment test, and the carrying value of the goodwill formed by the businessmerger shall be allocated to the relevant asset groups in a reasonable manner from the date of purchase; If it isdifficult to apportion to the relevant asset group, it shall be apportioned to the relevant asset group combination.The relevant asset group or combination of asset groups is the asset group or combination of asset groups that canbenefit from the synergies of the enterprise merger.
Goodwill in the relevant asset groups or combination of group assets impairment tests, such as the asset group orcombination of group assets related to goodwill there are signs of impairment, the first does not include thegoodwill of the asset group or combination of group assets impairment test, calculation of recoverable amount,and compared with the related book value, confirm the corresponding impairment loss. And goodwill of the assetgroup or combination of group assets impairment test, comparing its book value and recoverable amount, such asthe recoverable amount is lower than the book value, the amount of impairment loss first deduction allocation tothe asset group or combination of group assets in the book value of the goodwill, according to the asset group orcombination of group assets all assets except goodwill in the book value of the proportion, the book value of theassets in proportion to offset each other. Once the above assets impairment loss is recognized, it will not be carriedback in future accounting periods.
25.Long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be borne in thereporting period and in the future with an amortization period of over one year.
25.1 Amortization method
Long-term deferred expenses are amortized evenly over the beneficial period.
25.2 Amortization years
Item
| Item | Amortization years |
| Hotel exterior decoration | 4years |
| Fire stairs renovation | 4years |
| Renovation of guest rooms in Building C, Decoration and renovation of Building A | 5years |
| B Building Renovation Project | 5years |
| Landscape reconstruction | 5years |
| Staff quarters renovation | 5years |
| Villa renovation | 5years |
| Swimming pool renovation, Pavement modification projects | 5years |
| Roof waterproofing projects | 5years |
26. Contract liability
The Company lists contract assets or contractual liabilities in the balance sheet according to the relationshipbetween performance obligations and customer payments. The Company’s obligations to transfer goods orprovide services to customers that have received or receivable customer consideration are listed as contractualliabilities. Contract assets and contractual liabilities under the same contract are shown in net terms.
Note: describe the method of recognition of contract liability
27.Employee compensation
27.1 Short-term compensation
During the accounting period in which employees provide service to the Company, the short-term remunerationactually incurred is recognized as liabilities and included into the current profit or loss or the assets-related cost.
The social insurance premium and the housing provident fund paid by the Company for its employees, togetherwith the labor union expenditures and employee education drew as required are used to calculate and determinethe relevant employee compensation amount based on the prescribed accrual basis and accrual proportion duringthe accounting period in which the employees provide services to the Company.
The employee welfare expenses incurred by the Company shall be recorded into the current profit or loss orrelated asset cost according to the actual amount incurred at the time of actual occurrence, in which thenon-monetary benefits shall be measured at fair value.
27.2Dismissal welfare
1) Defined contribution plans
The Company shall pay basic old-age insurance and unemployment insurance for its employees in accordancewith the relevant regulations of the local government. During the accounting period in which the employeesprovide services to the Company, the amount to be paid shall be calculated on the basis and proportion of the localregulations. In addition, the Company also participated in the enterprise annuity plan / supplementary pensioninsurance fund approved by the relevant state departments. The Company pays to the annuity plan / local socialinsurance institution according to a certain proportion of the total salary of the staff and workers, and thecorresponding expenses are included in the current profit or loss or the related asset cost.
2) Defined benefit plans
According to the formula determined by the law of expected accumulative welfare units, the company willattribute the welfare obligations generated by the established benefit plan to the period during which the employee
provides services, and record them into the current profit and loss or the cost of related assets.
The deficit or surplus resulting from the present value of the defined benefit plan obligations minus the fair valueof the defined benefit plan assets is recognized as the net liability or net asset of a defined benefit plan. If there is asurplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan by thelower of the surplus and the asset ceiling.
All defined benefit plan obligations, including those expected to be paid within 12 months of the end of theemployee's annual reporting period for the provision of services, are discounted by the market rate of return onTreasury bonds or high-quality corporate bonds in the active market that matches the duration and currency of thedefined benefit plan obligations on the balance sheet date.
The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of thedefined benefit plan are recorded in the current profits and losses or the costs of related assets. The changescaused by the net liabilities or net assets of the defined benefit plan shall be accounted for in other comprehensiveincome, and shall not be transferred back to the profits and losses in the subsequent accounting period. Upon thetermination of the original defined benefit plan, all the parts previously accounted for in other comprehensiveincome shall be carried forward to the undistributed profit within the scope of equity.
When establishing the settlement of the benefit plan, the difference between the present value of the obligation ofthe established benefit plan and the settlement price determined on the settlement date shall be used to confirm thesettlement gains or losses.
27.3Post-employment benefits
If the Company provides dismissal benefits to employees, the employee's salary liabilities arising from thedismissal benefits shall be recognized at an early date, and shall be included in the profits and losses of the currentperiod. When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of thelabor relations plan or the reduction proposal; When the company recognizes the costs or expenses associated withthe reorganization involving the payment of dismissal benefits.
27.4 Accounting method for other long-term employee welfare
28.Estimated liabilities
When the Company involves in proceedings, debt guarantees, onerous contracts and reorganization events, if such
events may require delivery of assets or rendering of services in the future and the amounts of such events can bereliably measured, such events are recognized as estimated liabilities.
28.1 Recognition criteria of estimated liabilities
When an obligation relating to a contingency meets all the following conditions at the same time, it is recognizedas an estimated liability:
1) Such obligation is a present obligation of the Company;
2) The performance of this obligation may very probably lead to the flow of economic interests out of theCompany; and
3) The amount of the obligation can be measured reliably.
28.2Measurement method of estimated liabilities
Estimated liabilities of the Company are initially measured as the best estimate of expenses required for theperformance of the relevant present obligations.When determining the best estimates, the Company comprehensively considers the risks, uncertainties, time valueof money, and other factors relating to the contingencies. If the time value of money is significant, the bestestimates will be determined after discount of relevant future cash outflows.The best estimates shall be treated as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all theoutcomes within this range are equal, the best estimate should be determined at the average amount of upper andlower limits within the range.If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all theoutcomes within this range are unequal although such a range exists, in case that the contingency involves a singleitem, the best estimate shall be determined at the most likely outcome; if the contingency involves two or moreitems, the best estimates should be determined according to all the possible outcomes with their relevantprobabilities.When all or part of the expenses necessary for the settlement of estimated liabilities of the Company are expectedto be compensated by a third party, the compensation shall be separately recognized as an asset only when it isvirtually certain to be received. The compensation recognized shall not exceed the book value of the estimatedliabilities.
29. Revenue
29.1Accounting policies used for revenue recognition and measurement
The Company has fulfilled its performance obligation in the contract, that is, to recognize revenue when thecustomer acquires control of the relevant goods or services. Access to control of related goods or services meansthat it can dominate the use of the goods or services and obtain almost all the economic benefits from them.
If the contract contains two or more performance obligations, the Company shall, on the commencement date ofthe contract, apportion the transaction price to each individual performance obligation in accordance with therelative proportion of the individual selling price of the goods or services promised by each individualperformance obligation. The Company measures its income according to the transaction price apportioned to eachindividual performance obligation.Transaction price refers to the amount of consideration that the company is expected to be entitled to receive forthe transfer of goods or services to customers, excluding the amount collected on behalf of third parties and theamount expected to be returned to customers. The Company according to the terms of the contract, combined withits previous practice to determine the transaction price, and in determining the transaction price, consider thevariable consideration, the major financing components existing in the contract, non-cash consideration, payablecustomer consideration and other factors. The Company shall determine the transaction price containing variableconsideration at a amount not exceeding the amount of the cumulative recognized income most likely not to besignificantly reversed when the relevant uncertainty is eliminated. If there is a significant financing component inthe contract, the Company shall determine the transaction price in accordance with the amount payable in cashupon the assumption that the customer acquires control of the goods or services, the difference between thetransaction price and the contract consideration shall be amortized by the real interest rate method during thecontract period.If one of the following conditions is met, the performance obligation shall be fulfilled within a certain period oftime; otherwise, the performance obligation shall be fulfilled at a certain time:
? The customer acquires and consumes the economic benefits of the Company's performance at the sametime.? The customer can control the goods under construction during the performance of the Company.? The goods produced in the course of the Company's performance have irreplaceable uses, and theCompany has the right to collect money for the cumulative performance portion completed so far throughout thecontract period.For performance obligations performed within a certain period of time, the Company shall recognize the incomeaccording to the performance schedule within that period, except where the performance schedule cannot bereasonably determined. The Company considers the nature of goods or services, using the output method or inputmethod to determine the progress of performance. When the performance schedule cannot be reasonablydetermined, the cost that has been incurred is expected to be compensated, and the company recognizes theincome according to the cost amount that has been incurred until the performance schedule can be reasonablydetermined.For performance obligations at a certain point, the Company recognizes revenue at the time when the customeracquires control of the relevant goods or services. In determining whether the customer has obtained control overthe goods or services, the Company considers the following signs:
? The Company has the right to collect the goods or services, that is, the customer has the current obligationto pay for the goods or services.
? The Company has transferred the legal ownership of the goods to the customer, that is, the customer hasthe legal ownership of the goods.? The Company has transferred the goods to customers, that is, customers have physical possession of thegoods.? The Company has transferred the main risk and reward in the ownership of the commodity to the customer,that is, the customer has obtained the main risk and reward in the ownership of the commodity.? The customer has accepted the goods or services, etc.
29.2 Specific principles for revenue recognition
Hotel business revenue sources include guest rooms, catering, merchandise sales, entertainment services and so on.Revenue from guest rooms, catering and entertainment services is recognized at the end of the service, andrevenue from the sale of goods is recognized as revenue when the control of the goods is transferred to thecustomer, that is, when the goods are delivered to the customer and there is no non-performance obligationaffecting the customer's receipt of the goods.
29.3Accounting policies used in revenue recognition and measurement
The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that is,when the customer acquires control of the relevant goods or services. To acquire control of the relevant goods orservices means to be able to dominate the use of the goods or services and gain almost all the economic benefits.If the contract contains two or more performance obligations, the Company shall, on the commencement date ofthe contract, apportion the transaction price to each performance obligation in accordance with the relativeproportion of the individual selling price of the goods or services promised in each performance obligation. TheCompany shall measure its income according to the transaction price apportioned to each individual performanceobligation.Transaction price means the amount of consideration that the Company expects to be entitled to receive inconnection with the transfer of goods or services to the customer, excluding amounts received on behalf of thirdparties and amounts expected to be refunded to the customer. The Company determines the transaction price inaccordance with the terms of the contract and in conjunction with its previous practices, and takes into account theinfluence of variable consideration, significant financing elements existing in the contract, non-cash consideration,customer consideration payable and other factors in determining the transaction price. The Company determinesthe transaction price with variable consideration at an amount not exceeding the amount by which the cumulativerecognized revenue is highly unlikely to be materially reversed when the relevant uncertainty is eliminated. Ifthere is a significant financing component in the contract, the Company shall determine the transaction price onthe basis of the amount payable in cash that is assumed to be paid by the customer upon acquisition of control ofthe goods or services, and shall amortize the difference between the transaction price and the contractconsideration by using the effective interest rate during the contract period.
If one of the following conditions is met, the performance obligation shall be fulfilled within a certain period oftime; otherwise, the performance obligation shall be fulfilled at a certain point in time:
? The customer obtains and consumes the economic benefits brought by the Company's performance of thecontract while the Company performs the contract.? The customer can control the goods under construction in the process of the Company's performance.? The products produced by the Company during the performance of the contract have irreplaceable uses, and theCompany has the right to receive payment for the cumulative part of the performance completed so far throughoutthe contract period.For performance obligations performed within a certain period of time, the Company shall recognize revenue inaccordance with the performance progress within that period, except where the performance progress cannot bereasonably determined. The Company considers the nature of goods or services, and adopts the output method orthe input method to determine the performance progress. When the performance progress cannot be reasonablydetermined and the cost already incurred is expected to be compensated, the Company shall recognize revenueaccording to the amount of cost already incurred until the performance progress can be reasonably determined.For performance obligations performed at a certain point in time, the Company recognizes revenue at thetime-point when the customer takes control of the relevant goods or services. When determining whether thecustomer has acquired control of the goods or services, the Company considers the following indications:
? The Company has current rights to collect payments in respect of the goods or services, i.e. the customer hascurrent payment obligations in respect of the goods or services.? The Company has transferred legal ownership of the goods to the customer, that is, the customer has legalownership of the goods.? The Company has transferred the physical goods to the customer, that is, the customer is in possession of thephysical goods.? The Company has transferred the main risks and rewards of ownership of the goods to the customer, i.e. thecustomer has acquired the main risks and rewards of ownership of the goods.? The customer has accepted the goods or services, etc.
29.4 Specific principle of revenue recognition
Hotel business revenue sources include guest rooms, food and beverage, commodity sales, entertainment services,etc. The revenue of guest room, food and beverage, and entertainment services shall be recognized at the end ofservice provision, and the revenue from sales of goods shall be recognized as revenue when the control of goods istransferred to the customer, that is, when the goods are delivered to the customer without any non-performanceobligations affecting the customer's receipt of goods, the revenue shall be recognized.Similar business adopting different business models leads to differences in revenue recognition and accountingpolicies
30. Government subsidy
Income tax includes current income tax and deferred income tax. In addition to the income tax arising from themerger of the enterprise and the transactions or events directly included in the owner's equity (including othercomprehensive income), the company shall include the current income tax and deferred income tax into the profitsand losses of the current period.Deferred income tax assets and deferred income tax liabilities are recognized on the basis of the difference(temporary difference) between the tax basis of assets and liabilities and their book value.For deductible temporary difference recognition deferred income tax assets, the amount of taxable income that islikely to be obtained in future periods to offset deductible temporary differences is limited. For deductible lossesand tax credits that can be carried forward for subsequent years, the corresponding deferred income tax assets arerecognized to the extent that the future taxable income that is likely to be used to offset deductible losses and taxcredits is obtained.For taxable temporary differences, deferred income tax liabilities are recognized except in special cases.Special cases where deferred income tax assets or deferred income tax liabilities are not recognized include:
? Initial recognition of goodwill;? A transaction or event that is neither a merger of an enterprise nor an event that affects the accounting profitor taxable income (or deductible loss) at the time of its occurrence.The deferred income tax liability is recognized for taxable temporary differences related to the investment ofsubsidiaries, associated enterprises and joint ventures unless the Company can control the time when thetemporary difference is reversed and the temporary difference is likely not to be reversed in the foreseeable future.Deferred income tax assets are recognized for deductible temporary differences related to the investment ofsubsidiaries, associated enterprises and joint ventures when the temporary differences are likely to be reversed inthe foreseeable future and are likely to receive taxable income in the future to offset deductible temporarydifferences.On the balance sheet date, for deferred income tax assets and deferred income tax liabilities, according to theprovisions of the tax law, according to the expected recovery of related assets or liquidation of related liabilitiesduring the applicable tax rate measurement.On the balance sheet date, the company reviews the book value of deferred income tax assets. If the future periodis likely to be unable to obtain sufficient taxable income to offset the benefits of deferred income tax assets, thebook value of deferred income tax assets is written down. Where sufficient taxable income is likely to be obtained,the amount of the write-down is reversed.The current income tax assets and the current income tax liabilities are reported as net offset when they have thestatutory right to settle on a net basis and are intended to settle on a net basis or to obtain assets and liabilities atthe same time.On the balance sheet date, deferred income tax assets and deferred income tax liabilities are shown as net offsetswhen the following conditions are met:
? The tax payer has the legal right to settle current income tax assets and current income tax liabilities by net;? Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by thesame tax collection and management department on the same tax payer or to different tax payer, but in each futureperiod of transfer of important deferred income tax assets and liabilities, The tax payer intends to net settle currentincome tax assets and liabilities or obtain assets and liabilities at the same time.
31.Lease
31.1Accounting treatment of operating lease
1) The rental fees paid for the asset leased by the Company will be amortized over the entire lease term withoutdeducting rent-free period according to the straight-line method and included in the expenses for the currentperiod. The initial direct costs related to the lease transactions paid by the Company are included in the currentexpenses.
When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part ofexpenses from the total rents and amortize the rents after deduction over the lease term and include them incurrent expenses.
2)Lease fees received by the Company from leasing assets shall be amortized at straight-line method over thewhole lease period including rent-free period, and shall be recognized as lease income. Initial direct costs relatingto lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts aresignificant, they shall be capitalized and included in the current income on the same basis as the recognition oflease income.
When the Company bears costs related to the lease borne by the leasee, the Company shall deduct the part ofexpenses from the total rents and amortize the rents after deduction over the lease term.
31.2 Accounting treatment of finance lease
1) Financial leased assets: on the start date of leasing, the Company takes the lower of the fair value of the leasedassets and the present value of the minimum lease payment as the book value of the leased assets, takes theminimum lease payment as the book value of the long-term payable, and the difference as the unrecognizedfinancing expenses. The Company adopts the effective interest rate method to amortize the unrecognizedfinancing expenses during the lease period and record them into financial expenses. The initial direct expensesincurred by the Company shall be included in the value of the leased assets.
2) Financial leasing assets: the Company shall, at the beginning of the lease, recognize the difference between thesum of the receivable financial leasing payments, the unsecured residual value and its present value as unrealizedfinancing income, which shall be recognized as lease income within the period of receiving the rent in the future.
The initial direct expenses incurred by the company in connection with the lease transaction shall be included inthe initial measurement of the finance lease receivable and shall reduce the amount of income recognized duringthe lease term.
32.Changes in significant accounting policies and accounting estimates
There are no significant changes in accounting policies and accounting estimatesV. Taxation
1. Major tax types and tax rates applicable to the Company
Taxes
| Taxes | Basis for tax assessment | Tax rate |
| Value added tax (VAT) | Output VAT is calculated based on taxable sales revenue and service revenue calculated in accordance with tax laws and VAT payable or taxable sales revenue shall be the difference after deducting the input VAT deductible in the same period | 5%, 6%, 9%, 13% |
| Consumption tax | ||
| Urban maintenance and construction tax | Levied based on VAT payable | 7% |
| Enterprise income tax | Levied based on the taxable income | 25%, 20% |
| Education surtax | Levied based on VAT payable | 3% |
| Local education surtax | Levied based on VAT payable | 2% |
| Housing property tax | Remaining value after deducting 30% from the original value of the house (including the occupied land price), and rent revenue | 1.2%, 12% |
2. Tax preference
1) According to Announcement of the Ministry of Finance of Taxation Administration No. 8, 2020"Announcement of Tax Policies on Supporting the Prevention and Control of COVID-19 Infected PneumoniaEpidemic", from January 1, 2020, taxpayers will be exempted from value-added tax on income derived from theprovision of public transportation, living services, and the express delivery service of essential living materials forresidents.
2) According to the Notice on Implementing the Preferential Tax Reduction Policy for Small and Micro-sizedEnterprises (Caishui [2019] No. 13) issued by the Ministry of Finance and the State Administration of Taxation,small-scale taxpayers of value-added tax can reduce resource tax, urban maintenance and construction tax, realestate tax, urban land use tax, etc. within 50% of the tax rate. The company's real estate tax and urban land use taxare levied by half. For small and low-profit enterprises whose annual taxable income does not exceed 1 millionyuan, a 25% reduction will be included in the taxable income, and the corporate income tax will be paid at a tax
rate of 20%,the subsidiary of the Company, Wengao Tourism, is a small and low-profit enterprise, enjoying thepreferential income tax policy of reducing the taxable income amount by 25% and paying the enterprise incometax at the tax rate of 20%.VI. Notes to the main items of the financial statements
1. Monetary funds
In RMB
Item
| Item | Ending balance | Beginning balance |
| Cash on hand | 151,571.07 | 179,111.10 |
| Bank deposits | 3,089,049.44 | 2,745,348.65 |
| Other monetary fund | ||
| Total | 3,240,620.51 | 2,924,459.75 |
Other explanation
2. Accounts receivable
(1) Disclosure of account receivables by category
In RMB
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Provision ratio | Amount | Proportion | Amount | Provision ratio | |||
| Accounts receivable with provision for bad debts based on portfolios | 251,735.65 | 100.00% | 162,705.01 | 64.63% | 89,030.64 | 592,008.33 | 100.00% | 162,705.01 | 27.48% | 429,303.32 |
| Total | 251,735.65 | 100.00% | 162,705.01 | 64.63% | 89,030.64 | 592,008.33 | 100.00% | 162,705.01 | 27.48% | 429,303.32 |
Released by account age
In RMB
| Account age | Book balance |
| Within 1 year (inclusive) | 139,574.85 |
| 1-2 years | 19,092.00 |
| 2-3 years | 2,259.00 |
Over 3 years
| Over 3 years | 90,809.80 |
| 3-4 years | 566.00 |
| 4-5 years | 785.00 |
| Over 5 years | 89,458.80 |
| Total | 251,735.65 |
(2) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB
| Category | Beginning balance | Amount changed in the period | Ending balance | |||
| Accrual | Reversal or switch-back | Charge off | Other | |||
| Account receivable | 162,705.01 | 162,705.01 | ||||
| Total | 162,705.01 | 162,705.01 | ||||
(3)Top five accounts receivable in terms of ending balance collected by the debtor
In RMB
| Name of entity | Ending balance of account receivable | Proportion in the total accounts receivable at period-end | Ending balance of the bad debt provision |
| Shanghai Hecheng International Travel Service Co., Ltd. | 92,811.11 | 36.87% | 13,203.33 |
| Guangzhou Design Institute | 38,980.00 | 15.48% | 38,980.00 |
| Yangpu Huayu Road & Bridge Technology Co., Ltd. | 18,633.00 | 7.40% | 18,633.00 |
| China International Travel Service (Beijing) | 13,540.20 | 5.38% | 13,540.20 |
| Sanya Baishun International Travel Service Co., Ltd. | 11,500.00 | 4.57% | 11,500.00 |
3. Other receivable
In RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividend receivable |
Other receivable
| Other receivable | 522,032.39 | 432,560.55 |
| Total | 522,032.39 | 432,560.55 |
Other account receivables
1) Other account receivable disclosed by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Utility bills | 167,719.86 | 189,577.27 |
| Margin | 156,500.00 | 156,500.00 |
| Social insurance and housing provident funds | 59,657.19 | 59,657.19 |
| Petty cash | 178,141.93 | 56,812.68 |
| Elevator installation fee | 10,000.00 | |
| Deposit | 600.00 | 600.00 |
| Total | 562,618.98 | 473,147.14 |
2) Provision for bad debt:
In RMB
| Provision for bad debt | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2021 | 40,586.59 | 40,586.59 | ||
| Balance as at January 1. 2021 in current period | —— | —— | —— | —— |
| --Transfer in second stage | ||||
| --Transfer in third stage | ||||
| --Reverse to second stage | ||||
| --Reverse to first stage | ||||
| Accrual in the Period | ||||
| Reverse in the Period | ||||
| Charge off in the Period | ||||
| Write-off in the Period | ||||
| Other changes | ||||
| Balance as at 30 June 2021 | 40,586.59 | 40,586.59 |
Released by account age
In RMB
Account age
| Account age | Book balance |
| Within 1 year (inclusive) | 444,074.24 |
| 1-2 years | 26,836.90 |
| 2-3 years | |
| Over 3 years | 2,236.00 |
| 3-4 years | |
| 4-5 years | |
| Over 5 years | 2,236.00 |
| Total | 473,147.14 |
3) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB
| Category | Beginning balance | Amount changed in the period | Ending balance | |||
| Accrual | Reversal or switch-back | Write-off | Other | |||
| Other receivables | 40,586.59 | 40,586.59 | ||||
| Total | 40,586.59 | 40,586.59 | ||||
4) Top five other accounts receivable in terms of ending balance collected by the debtor
In RMB
| Name of entity | Nature | Ending balance | Account age | Proportion in total amount of other accounts receivable at period-end | Ending balance of the bad debt provision |
| Labor Security Supervision Detachment of Sanya | Margin | 156,500.00 | Within 1 year | 27.82% | 7,825.00 |
| Hainan Zhongzhida Technology Co., Ltd. | Application fee | 60,000.00 | Within 1 year | 10.66% | |
| Personal social insurance premium | Advance payment | 49,471.81 | Within 1 year | 8.79% | 2,366.36 |
| Ding Qin | Petty cash | 49,526.97 | Within 1 year | 8.80% | |
| Fresh shower room | Utility bills | 25,993.04 | Within 1 | 4.62% |
year
| year | |||||
| Total | -- | 341,491.82 | -- | 60.70% | 10,191.36 |
4. Inventories
(1) Classification of inventories
In RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for inventory depreciation or provision for impairment of contract performance costs | Book value | Book balance | Provision for inventory depreciation or provision for impairment of contract performance costs | Book value | |
| Raw materials | 443,425.35 | 310,260.94 | 133,164.41 | 479,614.80 | 310,260.94 | 169,353.86 |
| Commodity stocks | 22,771.38 | 11,102.41 | 11,668.97 | 22,771.38 | 11,102.41 | 11,668.97 |
| Food materials and beverages | 53,784.97 | 53,784.97 | 1,803,651.50 | 1,803,651.50 | ||
| Fuel | 22,856.65 | 22,856.65 | 25,254.50 | 25,254.50 | ||
| Total | 542,838.35 | 321,363.35 | 221,475.00 | 2,331,292.18 | 321,363.35 | 2,009,928.83 |
(2) Provision for inventory depreciation or provision for impairment of contract performance costs
In RMB
| Item | Beginning balance | Current increase | Current decrease | Ending balance | ||
| Accrual | Other | Reversal or write-off | Other | |||
| Raw materials | 310,260.94 | 310,260.94 | ||||
| Commodity stocks | 11,102.41 | 11,102.41 | ||||
| Total | 321,363.35 | 321,363.35 | ||||
5. Other current assets
In RMB
Item
| Item | Ending balance | Beginning balance |
| VAT input tax to be deducted | 1,674,996.28 | 2,219,513.16 |
| Prepaid enterprise income tax | 1,702,702.80 | 1,702,702.80 |
| Prepaid individual income tax | 2,517.22 | |
| Prepayments | 69,292.46 | 52,719.06 |
| Total | 3,446,991.54 | 3,977,452.24 |
6. Investment properties
Investment properties measured at cost
In RMB
| Item | Buildings and constructions | Land use rights | Construction in process | Total |
| I. Original book value | ||||
| 1.Beginning balance | 18,856,504.44 | 5,662,740.59 | 24,519,245.03 | 18,856,504.44 |
| 2.Current increase | ||||
| 3.Current decrease | ||||
| 4.Ending balance | 18,856,504.44 | 5,662,740.59 | 24,519,245.03 | 18,856,504.44 |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1.Beginning balance | 11,443,950.66 | 2,332,406.45 | 13,776,357.11 | 11,443,950.66 |
| 2.Current increase | 209,091.78 | 28,170.00 | 237,261.78 | 209,091.78 |
| (1)Provision or amortization | 209,091.78 | 28,170.00 | 237,261.78 | 209,091.78 |
| 3.Current decrease | ||||
| (1)Disposal | ||||
| (2)Other transfer-out | ||||
| 4.Ending balance | 11,653,042.44 | 2,360,576.45 | 14,013,618.89 | 11,653,042.44 |
| III. Provision for impairment | ||||
| 1.Beginning balance | 1,404,400.47 | 1,903,054.14 | 3,307,454.61 | 1,404,400.47 |
| 2.Current increase | ||||
| 3. Current decrease | ||||
| 4.Ending balance | 1,404,400.47 | 1,903,054.14 | 3,307,454.61 | 1,404,400.47 |
| IV. Book value | ||||
| 1.Ending book value | 5,799,061.53 | 1,399,110.00 | 7,198,171.53 | 5,799,061.53 |
2.Opening book value
| 2.Opening book value | 6,008,153.31 | 1,427,280.00 | 7,435,433.31 | 6,008,153.31 |
7. Fixed assets
In RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 32,957,434.73 | 34,694,023.75 |
| Fixed assets liquidation | ||
| Total | 32,957,434.73 | 34,694,023.75 |
Note: the “Fixed assets” above listed refers to the fixed assets after deducted the disposal of fixed assets
(1) Fixed assets
In RMB
| Item | Houses and buildings | Mechanical equipment | Transportation equipment | Electronic equipment | Other equipment | Total |
| I. Original book value： | ||||||
| 1.Beginning balance | 136,789,501.82 | 10,247,058.30 | 1,742,065.57 | 1,823,519.07 | 4,070,039.35 | 154,672,184.11 |
| 2.Current increase | 81,077.89 | 21,492.18 | 102,570.07 | |||
| (1) Purchase | 81,077.89 | 21,492.18 | 102,570.07 | |||
| (2)Transfer from construction in progress | ||||||
| (3)Increase from business combinations | ||||||
| 3.Current decrease | ||||||
| (1)Disposal or write-off | ||||||
| 4.Ending balance | 136,789,501.82 | 10,247,058.30 | 1,742,065.57 | 1,904,596.96 | 4,091,531.53 | 154,774,754.18 |
| II. Accumulated amortization | ||||||
| 1.Beginning balance | 76,850,214.26 | 7,490,603.22 | 1,253,748.18 | 700,804.72 | 1,044,848.02 | 87,340,218.40 |
| 2.Current increase | 1,087,717.44 | 181,084.50 | 44,478.60 | 162,057.39 | 363,821.16 | 1,839,159.09 |
| (1) Provision | 1,087,717.44 | 181,084.50 | 44,478.60 | 162,057.39 | 363,821.16 | 1,839,159.09 |
| 3.Current decrease | ||||||
| (1)Disposal or |
write-off
| write-off | ||||||
| 4.Ending balance | 77,937,931.70 | 7,671,687.72 | 1,298,226.78 | 862,862.11 | 1,408,669.18 | 89,179,377.49 |
| III. Provision for impairment | ||||||
| 1.Beginning balance | 31,072,788.17 | 1,565,153.79 | 32,637,941.96 | |||
| 2.Current increase | ||||||
| 3.Current decrease | ||||||
| 4.Ending balance | 31,072,788.17 | 1,565,153.79 | 32,637,941.96 | |||
| IV. Book value | ||||||
| 1.Ending book value | 27,778,781.95 | 1,010,216.79 | 443,838.79 | 1,041,734.85 | 2,682,862.35 | 32,957,434.73 |
| 2.Opening book value | 28,866,499.39 | 1,191,301.29 | 488,317.39 | 1,122,714.35 | 3,025,191.33 | 34,694,023.75 |
Other notes
8. Intangible assets
(1) Intangible assets
In RMB
| Item | Land use rights | Total |
| I. Original book value | ||
| 1.Beginning balance | 81,653,137.15 | 81,653,137.15 |
| 2.Current increase | ||
| 3.Current decrease | ||
| 4.Ending balance | 81,653,137.15 | 81,653,137.15 |
| II. Accumulated amortization | ||
| 1.Beginning balance | 33,631,825.59 | 33,631,825.59 |
| 2.Current increase | 406,193.58 | 406,193.58 |
| (1) Provision | 406,193.58 | 406,193.58 |
| 3.Current decrease | ||
| 4.Ending balance | 34,038,019.17 | 34,038,019.17 |
| III. Provision for impairment | ||
| 1.Beginning balance | 27,440,836.84 | 27,440,836.84 |
| 2.Current increase | 27,440,836.84 | 27,440,836.84 |
| 3.Current decrease | ||
| 4.Ending balance | 20,174,281.14 | 20,174,281.14 |
IV. Book value
| IV. Book value | 20,580,474.72 | 20,580,474.72 |
| 1.Ending book value | ||
| 2.Opening book value | 81,653,137.15 | 81,653,137.15 |
9. Long-term deferred expenses
In RMB
| Item | Beginning balance | Increase in period | Amortization in period | Amount of other decreases | Ending balance |
| B building guest room renovation project | 14,149,911.76 | -436,906.54 | 1,423,928.40 | 12,289,076.82 | |
| Building A Fire Stair Renovation Project | 11,423.92 | 8,567.82 | 2,856.10 | ||
| C building guest room, villa, swimming pool renovation project | 1,054,763.10 | 301,360.80 | 753,402.30 | ||
| Villa reconstruction | 7,160,831.38 | 934,021.50 | 6,226,809.88 | ||
| Building A renovation project | 345,134.02 | 45,017.46 | 300,116.56 | ||
| Floor waterproofing renovation project | 296,073.35 | 37,009.20 | 259,064.15 | ||
| Staff dormitory renovation project | 526,177.78 | 65,772.24 | 460,405.54 | ||
| Landscape greening project | 1,413,387.42 | 151,434.36 | 1,261,953.06 | ||
| Villa renovation project | 82,916.55 | 6,909.68 | 76,006.87 | ||
| Total | 24,957,702.73 | -353,989.99 | 2,974,021.46 | 21,629,691.28 |
Other description
10. Accounts payable
Presentation of accounts payable
In RMB
| Item | Ending balance | Beginning balance |
| Payment for purchase | 783,286.87 | 586,111.30 |
| Accounts payable provisionally estimated | 124,838.48 | 72,669.88 |
| Service charges | 96,314.30 | 134,562.18 |
| Payment for projects | 14,274.10 | 14,274.10 |
Consignment sales
| Consignment sales | 1,093.00 | 1,093.00 |
| Total | 1,019,806.75 | 808,710.46 |
11. Contractual liability
In RMB
| Item | Ending balance | Beginning balance |
| Room and meal fees | 875,822.38 | 626,285.33 |
| Total | 875,822.38 | 626,285.33 |
Amount and reasons for significant changes in book value during the reporting period
12. Employee compensation payable
(1) Presentation of employee compensation payable
In RMB
| Item | Beginning balance | Increase in Period | Decrease in Period | Ending balance |
| I. Short-term compensation | 2,595,861.40 | 5,412,829.05 | 5,550,647.47 | 2,458,042.98 |
| II. Post-employment benefits - defined contribution plans | 506,732.61 | 506,732.61 | ||
| 3. Demission welfare | ||||
| 4. Other welfare due within one year | ||||
| Total | 2,595,861.40 | 5,919,561.66 | 6,057,380.08 | 2,458,042.98 |
(2) Presentation of short-term compensation
In RMB
| Item | Beginning balance | Increase in Period | Decrease in Period | Ending balance |
| 1. Salaries, bonuses, allowances and subsidies | 1,378,009.71 | 4,349,794.53 | 4,507,834.87 | 1,219,969.37 |
| 2. Employee welfare expenses | 613,909.60 | 613,909.60 | ||
| 3. Social insurance premiums | 265,648.95 | 265,648.95 | ||
| Including: medical insurance premiums | 261,044.24 | 261,044.24 |
Work-related injury insurancepremiums
| Work-related injury insurance premiums | 4,604.71 | 4,604.71 | ||
| 4. Housing provident funds | 99,126.00 | 99,126.00 | ||
| 5. Labor union expenditures and employee education funds | 1,217,851.69 | 84,349.97 | 64,128.05 | 1,238,073.61 |
| 6.Short-term paid absence | ||||
| 7.Short-term profit sharing plan | ||||
| Total | 2,595,861.40 | 5,412,829.05 | 5,550,647.47 | 2,458,042.98 |
(3) Presentation of defined contribution plans
In RMB
| Item | Beginning balance | Increase in Period | Decrease in Period | Ending balance |
| 1.Basic endowment insurance premiums | 491,376.02 | 491,376.02 | ||
| 2.Unemployment insurance premiums | 15,356.59 | 15,356.59 | ||
| 3.Enterprise annuity payment | ||||
| Total | 506,732.61 | 506,732.61 |
Other notes
13. Taxes payable
In RMB
| Item | Ending balance | Beginning balance |
| Consumption tax | 135,982.62 | 146,530.24 |
| Urban maintenance and construction tax | 920.12 | 738.33 |
| Individual income tax | 57,506.87 | 44,362.22 |
| Housing property tax | 115,125.07 | 120,439.32 |
| Land use tax | 54,295.47 | 54,295.47 |
| Educational surtax | 395.71 | 316.43 |
| Local education surtax | 263.79 | 210.95 |
| Total | 364,489.65 | 366,892.96 |
Other note
14. Other payable
In RMB
Item
| Item | Ending balance | Beginning balance |
| Interest payable | ||
| Dividend payable | ||
| Other payable | 3,027,832.98 | 6,167,763.36 |
| Total | 3,027,832.98 | 6,167,763.36 |
Presentation of other payable by nature
In RMB
| Item | Ending balance | Beginning balance |
| Engineering and quality retention money | 1,455,676.92 | 4,433,900.06 |
| Staff dormitory rental fees, etc. | 1,013,939.39 | |
| Margin | 609,107.57 | 295,089.81 |
| On behalf of collection or payment | 39,807.45 | 142,856.24 |
| Employee deposits | 87,820.00 | 87,820.00 |
| Announcement fee | 411,550.00 | 171,550.00 |
| Other | 423,871.04 | 22,607.86 |
| Total | 3,027,832.98 | 6,167,763.36 |
15. Non-current liability due within one year
In RMB
| Item | Ending balance | Beginning balance |
| Long-term borrowing due within one year - principal | 6,598,477.52 | |
| Long-term borrowing due within one year – accrual interest payable | 11,508.13 | 23,020.42 |
| Total | 11,508.13 | 6,621,497.94 |
16. Other current liability
In RMB
| Item | Ending balance | Beginning balance |
| Tax to be exported | 52,549.34 | 37,577.12 |
| Total | 52,549.34 | 37,577.12 |
17. Long-term loans
(1) Long-term loan classification
In RMB
Item
| Item | Ending balance | Beginning balance |
| Mortgage loan | 9,893,757.94 | 9,893,757.94 |
| Total | 9,893,757.94 | 9,893,757.94 |
Explanation of long-term loan classification:
Note: The mortgage loan of 9,893,757.94 yuan is the loan of the Company from the Haikou Branch of Industrial Bank Co., Ltd., theterm of which is from April 23, 2020 to April 9, 2023, and the mortgage guarantee is made on the property with the total area of1,446.00 square meters under the Company's name and the assessed value of 39,263,245.00 yuan.
18. Estimated liabilities
In RMB
| Item | Ending balance | Beginning balance | Reasons |
| Provisions for arrears of electricity tariffs | 1,489,685.04 | 1,489,685.04 | Make provisions for electricity bills |
| Total | 1,489,685.04 | 1,489,685.04 | -- |
19. Other non-current liability
In RMB
| Item | Ending balance | Beginning balance |
| Projects paid over one year | 1,914,592.66 | 1,914,592.66 |
| Total | 1,914,592.66 | 1,914,592.66 |
20. Share capital
In RMB
| Beginning balance | Changes in the period ("+" for increase and "-" for decrease) | Ending balance | |||||
| Issuance of new shares | Share donation | Conversion of reserves into share | Others | Sub-total | |||
| Total shares | 364,100,000.00 | 364,100,000.00 | |||||
21. Capital reserves
In RMB
Item
| Item | Beginning balance | Increase in Period | Decrease in Period | Ending balance |
| Capital premium (equity premium) | 33,336,215.58 | 33,336,215.58 | ||
| Other capital reserves | 20,806,634.43 | 20,806,634.43 | ||
| Total | 54,142,850.01 | 54,142,850.01 |
Other description
22. Undistributed profit
In RMB
| Item | Current Period | Last Period |
| Undistributed profit as at the end of the previous period before adjustment | -351,324,135.02 | -339,756,246.05 |
| Total adjustment to undistributed profit as at the beginning of the period ("+" for increase and "-" for decrease) | ||
| Undistributed profit as at the beginning of the period after adjustment | -351,324,135.02 | -339,756,246.05 |
| Plus: net profit attributable to owners of the parent company in the current period | 1,452,925.92 | -6,631,450.42 |
| Less: withdrawal legal surplus | ||
| Withdrawal other common accumulation fund | ||
| Withdrawal general risk provision 备 | ||
| Common stock dividends payable | ||
| Dividends transferred to capital | ||
| Undistributed profit as at the end of the period | -349,871,209.10 | -346,387,696.47 |
23. Operating revenue and operating cost
In RMB
| Item | The period | Last period | ||
| Revenue | Cost | Revenue | Cost | |
| Primary business | 15,175,697.66 | 8,087,149.94 | 4,089,491.05 | 4,815,416.65 |
| Other business | 3,904,081.75 | 1,972,936.47 | 892,380.95 | 237,261.78 |
| Total | 19,079,779.41 | 10,060,086.41 | 4,981,872.00 | 5,052,678.43 |
Revenue:
In RMB
Contract type
| Contract type | 1# Division | 2# Division | Total | |
| Product type | 19,079,779.41 | 19,079,779.41 | ||
| Including: | ||||
| Room revenue | 12,893,253.55 | 12,893,253.55 | ||
| Catering income | 2,282,444.11 | 2,282,444.11 | ||
| Other income | 3,904,081.75 | 3,904,081.75 | ||
| Classified by business area | 19,079,779.41 | 19,079,779.41 | ||
| Including: | ||||
| Hainan area | 19,079,779.41 | 19,079,779.41 | ||
| Total | 19,079,779.41 | 19,079,779.41 |
24. Taxes and surcharges
In RMB
| Item | The period | Last period |
| Urban construction tax | 5,473.64 | 8,585.55 |
| Educational surtax | 2,345.84 | 3,679.52 |
| Housing property tax | 203,448.00 | 107,793.75 |
| Land use tax | 108,590.94 | 54,295.47 |
| Vehicle and vessel use tax | 3,720.00 | 3,720.00 |
| Stamp tax | 1,604.90 | |
| Local education surtax | 1,563.89 | 2,453.01 |
| Total | 325,142.31 | 182,132.20 |
25. Selling expenses
In RMB
| Item | The period | Last period |
| Employee salaries | 1,495,226.13 | 1,242,607.28 |
| Depreciation | 336,240.00 | 304,221.29 |
| Employee benefits | 197,979.00 | 156,846.00 |
| Repair charges | 39,745.57 | 42,286.85 |
| Social insurance premiums | 280,722.20 | 78,443.06 |
| Utility bills | 121,525.95 | 58,581.48 |
Amortization of low cost consumables
| Amortization of low cost consumables | 13,036.72 | 33,958.67 |
| Labor union expenditures and employee education funds | 29,904.55 | 43,491.32 |
| Operating supplies | 84,065.25 | 22,018.96 |
| Fuel fees | 28,762.55 | 45,445.32 |
| Promotion fees | 41,094.42 | 5,006.36 |
| Housing provident funds | 31,170.00 | 30,300.00 |
| Other expenses | 21,075.83 | 31,987.65 |
| Total | 2,720,548.17 | 2,095,194.24 |
Other notes
26. Administrative expenses
In RMB
| Item | The period | Last period |
| Salaries | 2,121,155.60 | 2,064,631.13 |
| Amortization of intangible assets | 406,193.58 | 406,193.58 |
| Welfare | 300,077.60 | 455,141.21 |
| Entertainment expenses | 81,045.24 | 179,012.82 |
| Agency fee | 405,100.00 | 390,000.00 |
| Depreciation | 170,219.14 | 161,678.90 |
| Social labor insurance premium | 345,957.62 | 119,453.23 |
| Announcing fee | 220,000.00 | 12,900.00 |
| Travel expenses | 103,295.84 | 97,323.85 |
| Repair charge | 44,390.02 | 28,711.24 |
| Housing provident funds | 52,956.00 | 50,158.00 |
| Funds for labor union and staff education | 40,047.07 | 64,358.11 |
| Promotion fees | 1,440.00 | |
| Other expenses | 90,139.09 | 171,373.28 |
| Total | 4,382,016.80 | 4,200,935.35 |
27. Financial expenses
In RMB
Item
| Item | The period | Last period |
| Interest expenses | 360,946.81 | 76,128.55 |
| Handling charges | 32,462.02 | 11,635.79 |
| Less: interest income | -17,993.99 | -89,077.69 |
| Total | 375,414.84 | -1,313.35 |
27. Other income
In RMB
| Sources of other income | The period | Last period |
| VAT input tax plus deduction | 233,438.24 | 262,840.35 |
29. Asset impairment loss
| Item | Current Period | Last Period |
| 1.Losses from bad debts | ||
| 2. Inventory falling price loss and impairment loss of contract performance cost | ||
| 3. Impairment loss of long-term equity investment | ||
| 4. Impairment loss of investment property | ||
| 5. Impairment loss of fixed assets | ||
| 6. Impairment loss of construction materials | ||
| 7. Impairment loss of construction in process | ||
| 8. Impairment loss of productive biological assets | ||
| 9.Impairment loss of oil-and-gas assets | ||
| 10.Impairment loss of intangible assets | ||
| 11. Impairment loss of goodwill | ||
| 12. Impairment loss of contract assets | ||
| 13.Other | ||
| Total |
30. Non-operating revenue
In RMB
Item
| Item | The period | Last period | Amount included in the current non-recurring profit or loss |
| Others income | 3,739.40 | 2,593.62 | 3,739.40 |
| Total | 3,739.40 | 2,593.62 | 3,739.40 |
31. Non-operating expenses
In RMB
| Item | The period | Last period | Amount included in the current non-recurring profit or loss |
| Non-monetary asset exchange losses | |||
| External donation | |||
| Late payment | 822.60 | 822.60 | |
| Loss on scrapping of fixed assets | 19,129.52 | ||
| Other | 330,000.00 | ||
| Total | 822.60 | 349,129.52 | 822.60 |
32. Income tax expenses
Accounting profit and income tax expense adjustment process
In RMB
| Item | Current Period |
| Total profit | 1,452,925.92 |
| Income tax based on statutory/applicable rate | |
| Impact by different tax rate applied by subsidies | |
| Effect of adjusting the income tax in previous period | |
| Impact of non-taxable income | |
| Impact on cost, expenses and losses that unable to deducted | |
| Impact of deductible loss of un-recognized deferred income tax assets in the prior period of use | |
| The deductible temporary differences or deductible losses of the un-recognized deferred income tax assets in the Period | |
| Income tax expense |
Other description
33. Notes to items of statement of cash flows
(1) Cash received from other operating activities
In RMB
Item
| Item | The period | Last period |
| Collection of utility bills | 374,759.98 | 256,746.31 |
| Collection of interest income | 17,993.99 | 89,077.69 |
| Collection of other | 187,616.35 | 156,006.36 |
| Total | 580,370.32 | 501,830.36 |
Note of cash received from other operating activities
(2) Cash paid for other operating activities
In RMB
| Item | The period | Last period |
| Social intercourse fees | 81,045.24 | 179,012.82 |
| Intermediary agency audit fee | 405,100.00 | 403,000.00 |
| Announcement fee | 220,000.00 | 60,000.00 |
| Expenses for business trips | 107,757.07 | 98,590.03 |
| Posts costs | 124,034.44 | 153,422.54 |
| Repair charges | 139,074.96 | 93,463.88 |
| Promotion fee | 114,175.43 | 25,341.72 |
| Office expenses | 10,250.13 | 9,149.57 |
| Financial cost | 32,152.02 | 11,475.79 |
| Property insurance premiums | 15,311.00 | 17,868.16 |
| Director supervisor allowance | 312,000.00 | 390,000.00 |
| Reserve fund loan | 136,850.00 | 131,691.00 |
| Other expenses | 205,454.00 | 311,324.66 |
| Total | 1,903,204.29 | 1,884,340.17 |
Note of cash paid for other operating activities
34. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
In RMB
Supplementary information
| Supplementary information | Current period | Last period |
| 1. Net profit adjusted to cash flows from operating activities | -- | -- |
| Net profit | 1,452,925.92 | -6,631,450.42 |
| Plus: Provision for impairment of assets | ||
| Depreciation of fixed assets, depreciation and depletion of oil and gas assets and depreciation of productive biological assets | 2,048,250.87 | 1,850,489.52 |
| Depreciation of right-of-use assets | ||
| Amortization of intangible assets | 434,363.58 | 429,312.58 |
| Amortization of long-term deferred expenses | 2,974,021.46 | 1,380,786.97 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) | ||
| Losses from write-off of fixed assets ("-" for gains) | ||
| Losses from changes in fair value (“-” for gains) | ||
| Financial expenses ("-" for gains) | ||
| Investment losses ("-" for gains) | ||
| Decreases in deferred income tax assets ("-" for increases) | ||
| Increases in deferred income tax liabilities ("-" for decreases) | ||
| Decreases in inventories ("-" for increases) | 1,788,453.83 | -3,203.82 |
| Decreases in operating payable (“-” for increases) | 645,861.14 | 402,181.50 |
| Increases in operating payable ("-" for decreases) | 1,276,597.25 | -2,217,307.25 |
| Others | ||
| Net cash flow from operating activities | 10,620,474.05 | -4,789,190.92 |
| 2. Significant investing and financing activities not involving cash receipts and payments | -- | -- |
| Conversion of debt into capital | ||
| Convertible corporate bonds maturing within one year | ||
| Fixed assets acquired under financing leases | ||
| 3. Net changes in cash and cash equivalents | -- | -- |
| Ending balance of cash | 3,240,620.51 | 17,832,633.21 |
Less: beginning balance of cash
| Less: beginning balance of cash | 2,924,459.75 | 7,422,939.89 |
| Plus: ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 316,160.76 | 10,409,693.32 |
(4) Breakdowns of cash and cash equivalents
In RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 3,240,620.51 | 2,924,459.75 |
| Including: cash on hand | 151,571.07 | 179,111.10 |
| Bank deposits available for payment at any time | 3,089,049.44 | 2,745,348.65 |
| Other monetary funds available for payment at any time | ||
| Deposit of central bank funds available for payment | ||
| Deposits in other banks | ||
| Interbank lending | ||
| II. Cash equivalent | ||
| Including: bond investment due within three months | ||
| III. Balance of cash and cash equivalents at end of the period | 3,240,620.51 | 2,924,459.75 |
| Including: restricted use of cash and cash equivalent in parent company or subsidiary in Group |
Other notes:
VIII. Change of the consolidation scope
Business combination under common control
(1) Business combinations under the same control that occurred in the current period
In RMB
| Combined party | Percentage of equity acquired in enterprise combinati | Constitute the basis for the enterprise combination under the same | Combining date | Basis for determining the date of combination | Income of the combined party from the beginning of the | Net profit of the combined party from the beginning of the | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
on
| on | control | period of combination to the date of combination | period of combination to the date of combination | |||||
| Hainan Wengao Tourism Resources Development Co., Ltd. | 100.00% | Wholly-owned holding | June 30, 2021 | Company establishment day | 0.00 | -308.79 | 0.00 | -345.58 |
(2) Consolidation cost
In RMB
| Combination cost | |
| --Cash | 676.70 |
| - Book value of non-cash assets | |
| - Book value of debt issued or assumed | |
| --The face value of the equity securities issued | |
| --Contingent consideration |
(3) Book value of the assets/liabilities from combined party at date of combination
In RMB
| Combination date | At the end of the previous period | |
| Assets: | ||
| Monetary funds | 676.70 | 985.49 |
| Accounts receivable | 999,468.70 | 999,468.70 |
| Inventory | ||
| Fixed assets | ||
| Intangible assets | ||
| Liabilities: | ||
| Loan | ||
| Account payable | ||
| Net assets | 1,000,145.40 | 1,000,454.19 |
| Less: minority interest | ||
| Net assets acquired | 1,000,145.40 | 1,000,454.19 |
VIII. Rights and interests in other entities
Name ofsubsidiary
| Name of subsidiary | Principal place of business | Registration place | Business nature | Shareholding ratio | Method of acquisition | |
| Direct | Indirect | |||||
| Hainan Wengao Tourist Resources Development Co., Ltd. | Sanya, Hainan | |||||
| Leasing and commercial service industries | 100.00% | Newly established |
Other explanation
IX. Related parties and related party transactions
1. Parent company
| Name of the parent company | Registration place | Business nature | Registered capital | Shareholding ratio in the Company | Voting ratio in the Company |
| Luoniushan Co., Ltd. | Haikou | Planting and breeding industry | 1151.51 million yuan | 17.55% | 19.80% |
Explanation: As at 31 Dec., 2021, Luoniushan Co., Ltd. (hereinafter referred to as "Luoniushan") and its wholly-owned subsidiaryHainan Ya'anju Property Services Co., Ltd. held a total of 72,092,000 A shares of the Company, accounting for 19.80 % of theCompany's total share capital, so it is the Company's largest shareholder.
2. Related party transactions
(1) Related party transactions of purchasing and selling commodities, providing and receiving labor
services
Sales of goods/provided labor service:
In RMB
| Related party | Content of related-party transaction | The period | Last period |
| Hainan Luoniushan Food Group Co., Ltd. | Room and meal fees | 2,294,559.80 |
Luoniushan Co., Ltd.
| Luoniushan Co., Ltd. | Room and meal fees | 4,335.00 | 3,692.00 |
Note of related party transactions of purchasing and selling commodities, providing and receiving labor service
(2) Key management personnel emoluments
In RMB
| Item | The period | Last period |
| Key management personnel emoluments | 800,400.00 | 677,960.00 |
3. Receivables and payable of the related party
(1) Receivable
In RMB
| Item | Related party | Ending balance | Beginning balance | ||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | ||
| Account receivable | Luoniushan Co., Ltd. | 3,378.00 | |||
(2) Payable
In RMB
| Item | Related party | Ending book balance | Opening book balance |
| Contract liability | Hainan Luoniushan Food Group Co., Ltd. | 5,440.20 |
X. Commitments and contingencies
1. Commitments
As of the balance sheet date, the company has no important commitments.
2. Contingencies
(1) Major contingencies on balance sheet date
On May 26, 2016, the Company received a lawyer letter from Hainan Yunfan Law Firm entrusted by Sanya PowerSupply Bureau of Hainan Power Grid Co., Ltd. (hereinafter referred to as "Sanya Power Supply Bureau"), sayingthat Sanya Power Supply Bureau found, in verifying electricity consumption by South China Hotel, a subsidiaryof the Company, that the current transformer (CT) installed in the distribution center metering counters in South
China Hotel installed was inconsistent with the record in the marketing management system file of Sanya PowerSupply Bureau, and the duration of the inconsistence was from July 2006 when South China Hotel changed itselectricity consumption measuring device to April 2016. According to the statistics, electricity consumption of10313373 KWH was measured in short, which was estimated to be valued at RMB 7,200,165.75 according to theelectricity prices and surcharge rates in the years.According to the Legal Consultation Advice on Electricity Quantity (Electricity Charge) Claiming Disputebetween South China Hotel and Sanya Power Supply Bureau issued by Beijing Junhe (Haikou) Law Firm onDecember 20, 2016, as all electricity consumption metering devices are purchased, installed, sealed, opened andreplaced by Sanya Power Supply Bureau Responsible, the short measurement of electricity charge from SouthChina Hotel for many years was due to the fault of Sanya Power Supply Bureau, and was irrelevant to SouthChina Hotel. Pursuant to Article 135 of the General Principles of Civil Law: "Except as otherwise stipulated bylaw, the limitation of action regarding applications to a people's court for protection of civil rights shall be twoyears., the Company accrued an amount of RMB 1,489,685.04 for the electricity charge for electricity quantitymeasured in short during two years from April 2014 to April 2016. As at December 31, 2020, no further progresswas made on this matter.
XI. Post balance sheet eventsAs of balance sheet date, the Company has no post balance sheet events.XII. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Disclosure of account receivables by category
In RMB
Category
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Ratio | Amount | Provision ratio | Amount | Ratio | Amount | Provision ratio | |||
| Accounts receivable with provision for bad debts based on portfolios | 251,735.65 | 100.00% | 162,705.01 | 64.63% | 89,030.64 | 592,008.33 | 100.00% | 162,705.01 | 27.48% | 429,303.32 |
| Total | 251,735.65 | 100.00% | 162,705.01 | 64.63% | 89,030.64 | 592,008.33 | 100.00% | 162,705.01 | 27.48% | 429,303.32 |
Released by account age
In RMB
Account age
| Account age | Ending balance |
| Within 1 year (including 1 year) | 139,574.85 |
| 1 year to 2 years | 19,092.00 |
| 2 years to 3 years | 2,259.00 |
| Over 3 years | 90,809.80 |
| 3 years to 4 years | 566.00 |
| 4 years to 5 years | 785.00 |
| Over 5 years | 89,458.80 |
| Total | 251,735.65 |
(2) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period:
In RMB
| Category | Beginning balance | Amount changed in the period | Ending balance | |||
| Accrual | Reversal or switch-back | Charge off | Other | |||
| Account receivable | 162,705.01 | 162,705.01 | ||||
| Total | 162,705.01 | 162,705.01 | ||||
(4) Top five accounts receivable in terms of ending balance collected by the debtor
In RMB
| Name of entity | Ending balance of account receivable | Proportion in the total accounts receivable at period-end | Ending balance of the bad debt provision |
| Shanghai Hecheng International Travel Service Co., Ltd. | 92,811.11 | 36.87% | 13,203.33 |
| Guangzhou Design Institute | 38,980.00 | 15.48% | 38,980.00 |
| Yangpu Huayu Road & Bridge Technology Co., Ltd. | 18,633.00 | 7.40% | 18,633.00 |
| China International Travel Service (Beijing) | 13,540.20 | 5.38% | 13,540.20 |
| Sanya Baishun International Travel Service Co., Ltd. | 11,500.00 | 4.57% | 11,500.00 |
Total
| Total | 175,464.31 | 69.70% |
2. Other account receivable
In RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 522,032.39 | 432,560.55 |
| Total | 522,032.39 | 432,560.55 |
(3) Other account receivable
1) Other account receivable disclosed by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Utility bills | 167,719.86 | 189,577.27 |
| Margin | 156,500.00 | 156,500.00 |
| Social insurance and housing provident funds | 59,657.19 | 59,657.19 |
| Petty cash | 178,141.93 | 56,812.68 |
| Elevator installation fee | 10,000.00 | |
| Deposit | 600.00 | 600.00 |
| Total | 562,618.98 | 473,147.14 |
2) Provision for bad debt:
In RMB
| Provision for bad debt | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2021 | 40,586.59 | 40,586.59 | ||
| Balance as at January 1. 2021 in current period | —— | —— | —— | —— |
| --Transfer in second stage |
--Transfer in third stage
| --Transfer in third stage | ||||
| --Reverse to second stage | ||||
| --Reverse to first stage | ||||
| Accrual in the Period | ||||
| Reverse in the Period | ||||
| Charge off in the Period | ||||
| Write-off in the Period | ||||
| Other changes | ||||
| Balance as at 30 June 2021 | 40,586.59 | 40,586.59 |
Released by account age
In RMB
| Account age | Ending balance |
| Within 1 year (inclusive) | 444,074.24 |
| 1-2 years | 26,836.90 |
| 2-3 years | |
| Over 3 years | 2,236.00 |
| 3-4 years | |
| 4-5 years | |
| Over 5 years | 2,236.00 |
| Total | 473,147.14 |
3) Provision, reversal or recovery of provision for bad debts in the period
Provision for bad debt in the period
In RMB
| Category | Beginning balance | Amount changed in the period | Ending balance | |||
| Accrual | Reversal or switch-back | Charge off | Other | |||
| Other account receivable | 40,586.59 | 40,586.59 | ||||
| Total | 40,586.59 | 40,586.59 | ||||
5) Top five other accounts receivable in terms of ending balance collected by the debtor
In RMB
| Name of entity | Nature | Ending balance | Account age | Proportion in total amount of other | Ending balance of the bad debt |
accounts receivable atperiod-end
| accounts receivable at period-end | provision | ||||
| Labor Security Supervision Detachment of Sanya | Margin | 156,500.00 | Within 1 year | 27.82% | 7,825.00 |
| Hainan Zhongzhida Technology Co., Ltd. | Application fee | 60,000.00 | Within 1 year | 10.66% | |
| Personal social insurance premium | Advance payment | 49,471.81 | Within 1 year | 8.79% | 2,366.36 |
| Ding Qin | Petty cash | 49,526.97 | Within 1 year | 8.80% | |
| Fresh shower room | Utility bills | 25,993.04 | Within 1 year | 4.62% | |
| Total | -- | 341,491.82 | -- | 60.70% | 10,191.36 |
3. Long-term equity investments
In RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | ||
| Total | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | ||
(1) Investment in subsidiaries
In RMB
| Investee | Beginning balance (Book value) | Increase/decreased in the period | Ending balance (Book value) | Ending balance of the provision for impairment | |||
| Additional investment | Capital reduction | Provision for impairment | Other | ||||
| Hainan Wengao Tourist Resources Development Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
4. Operating revenue and operating cost
In RMB
| Item | The period | Last period |
Revenue
| Revenue | Cost | Revenue | Cost | |
| Primary business | 15,175,697.66 | 8,087,149.94 | 4,089,491.05 | 4,815,416.65 |
| Other businesses | 3,904,081.75 | 1,972,936.47 | 892,380.95 | 237,261.78 |
| Total | 19,079,779.41 | 10,060,086.41 | 4,981,872.00 | 5,052,678.43 |
Revenue:
In RMB
| Contract type | 1# Division | 2# Division | Total | |
| Product type | 19,079,779.41 | 19,079,779.41 | ||
| Including: | ||||
| Room revenue | 12,893,253.55 | 12,893,253.55 | ||
| Catering income | 2,282,444.11 | 2,282,444.11 | ||
| Other income | 3,904,081.75 | 3,904,081.75 | ||
| Classified by business area | 19,079,779.41 | 19,079,779.41 | ||
| Total | 19,079,779.41 | 19,079,779.41 |
XVIII. Supplementary information
1. Breakdown of current non-recurring profits and losses
In RMB
| Item | Amount | Remark |
| Profit or loss from disposal of non-current assets | 400.00 | Disposal proceeds from sale |
| Government grants included in the current profit or loss (except for government grants closely related to the enterprise business, obtained by quota or quantity at unified state standards) | 233,438.24 | Income related to VAT input tax credit |
| Other non-operating revenue and expenses except for the above-mentioned items | 2,516.80 | Other income |
| Total | 236,355.04 | -- |
2. Return on equity (ROE) and earnings per share (EPS)
| Profit during the reporting period | Weighted average ROE | Earnings per share | |
| Basic EPS(RMB/Share) | Diluted EPS(RMB/Share) | ||
| Net profits attributable to ordinary shareholders of the Company | 2.15% | 0.0040 | 0.0040 |
Net profits attributable to ordinaryshareholders of the Company after deductionof non-recurring profits or losses
| Net profits attributable to ordinary shareholders of the Company after deduction of non-recurring profits or losses | 1.80% | 0.0033 | 0.0033 |
3. Accounting difference between IFRS and CAS
There are no accounting differences between IFRS and CAS.
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.19 August 2021