2018
StockCode:000613,200613ShortFormoftheStock:Dadonghai-A,Dadonghai-B
海南大东海旅游中心股份有限公司
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
AnnualReport2018
DisclosureDate:26February2019
2018
SectionI.ImportantNotice,ContentsandParaphrase
ImportantNotice:
BoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.YuanXiaoping,PrincipaloftheCompany,FuZongren,personinchargeofaccountingworksandFuZongren,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportof2018AnnualReportisauthentic,accurateandcompleteAlldirectorsareattendingtheBoardMeetingforReportdeliberation.TheCompanyhasnoplanofcashdividendscarriedout,bonusissuedandcapitalizingofcommonreserveseither.Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors.Investorsareadvisedtoexercisecautionofinvestmentrisks.
Content
SectionIImportantNotice,ContentsandParaphrase ...... 2
SectionIICompanyProfileandMainFinnaicalIndexes ...... 4
SectionIIISummaryofCompanyBusiness ...... 8
SectionIVDiscussionandAnalysisofOperation ...... 9
SectionVImportantEvents ...... 18
SectionVIParticularaboutChangesinsharesandshareholders ...... 27
SectionVIIPreferredStock ...... 33
SectionVIIIParticularsaboutDirectors,Supervisors,SeniorExecutivesandEmployees ...... 34
SectionIXCorporateGovernance ...... 39
SectionXCorporateBond ...... 45
SectionXIFinancialReport ...... 46
SectionXIIDocumentsavailableforreference ...... 118
2018
Paraphrase
ItemsReferstoContentsCSRCReferstoChinaSecuritiesRegulationCommissionSSEReferstoShenzhenStockExchangeCompanyLawReferstoCompanyLawofThePeople’sRepublicofChinaSecuritiesLawReferstoSecuritiesLawofThePeople’sRepublicofChinaRulesofListingReferstoRulesofShenzhenStockExchangefortheListingofStocksCompanyortheCompanyReferstoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.ArticleofAssociationRefersto
ArticleofAssociationofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.Shareholders’GeneralMeetingRefersto
Shareholders’GeneralMeetingofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.BoardReferstoBoardofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.SupervisoryCommitteeRefersto
SupervisoryCommitteeofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.LuoniushanReferstoLuoniushanCo.,Ltd.YuanReferstoCNY/RMBInthereportingperiod,thereportingperiodRefersto1January2018to31December2018
MajorRiskWarning
Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors.Investorsareadvisedtoexercisecautionofinvestmentrisks.SecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn)arethemediaforinformationdisclosureappointedbytheCompanyforyearof2019,allinformationunderthenameoftheCompanydisclosedontheabovesaidmediashallprevail.ThereportispreparedinbilingualversionsofChineseandEnglishrespectively,intheeventofanydiscrepancyinunderstandingthetwoaforementionedversions,theChineseversionshallprevail.Investorsareadvisedtoexercisecautionofinvestmentrisks.
2018
SectionIICompanyProfileandMainFinnaicalIndexes
I.Companyinformation
ShortformofthestockDadonghai-A,Dadonghai-BStockcode000613,200613ShortformoftheStockafterchanged
N/AStockexchangeforlistingShenzhenStockExchangeNameoftheCompany(inChinese)ShortformoftheCompany(inChinese)ForeignnameoftheCompany
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.ForeignnameofshortformoftheCompany
DADONGHAILegalrepresentativeYuanXiaopingRegistrationsadd.DadonghaiSanyaCodeforregistrationsadd572021Officesadd.DadonghaiSanyaCodesforofficeadd.572021Companywebsite——Emailhnddhhn@21cn.com
II.Person/Waytocontact
SecretaryoftheBoardRep.ofsecurityaffairsNameWangHongjuanContactadd.DadonghaiSanyaTel.0898-88219921Fax.0898-88214998E-mailhnddhhn@21cn.com
2018
III.Informationdisclosureandpreparationplace
NewspaperappointedforinformationdisclosureSecuritiesTimes,HongKongCommercialDailyWebsiteforannualreportpublishappointedbyCSRC
http://www.cninfo.com.cnPreparationplaceforannualreportSecuritydepartmentoftheCompany
IV.RegistrationchangesoftheCompany
OrganizationcodeUnifiedsocialcreditcode91460000201357188UChangesofmainbusinesssincelisting
Nochanges
Previouschangesforcontrollingshareholders
1.TheCompanylistedA-stockinJanuary1997,and96.327millionA-stocksharesareheldbyHainanDadonghaiTourismCentreGroupCo.,ltd.,a26.46%intotalsharecapitaloftheCompanyandisthefirstmajorityshareholderoftheCompanyalso.2.On25December1998,thesharesheldbyHainanDadonghaiTourismCentreGroupCo.,ltdweretransfertoSanyaABCthroughthecourtsofjustice,andafterobtainedthesharesinDecember1998,SanyaABCentrustwholly-ownedsubordinateenterpriseSanyaBank-AgricultureIndustrialDevelopmentCorp.toholdtheaforesaidshares,thanthefirstmajorityshareholderoftheCompanycomestoSanyaBank-AgricultureIndustrialDevelopmentCorp.3.On12December2000,theaforesaidequitywasstrippedtonameofChinaGreatwallAssetsManagementCorporation,thefirstmajorityshareholderoftheCompany.4.On19September2001,ChinaGreatwallAssetsManagementCorporationenteredinto“EquityTransferAgreement”withHaikouFoodCo.,Ltdfor60millionsharestransfer;andgainedapprovalof[2002]No.:430fromMinistryofFinancedated18October2002,thanthefirstmajorityshareholderoftheCompanycomestoHaikouFoodCo.,Ltd.5.On24April2008,HaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd.enteredintothe“Statement”,confirmedthatthe60millionsharesheldbyHaikouFoodCo.,Ltd.wereunderthenameofHaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd.,theshares’ownershiphavebeentransferdated29January2010.Therefore,HaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd.comestothefirstmajorityshareholderoftheCompany.
V.Otherrelevantinformation
CPAengagedbytheCompany
NameofCPABDOCHINAShuLunPanCertifiedPublicAccountantsLLPOfficesadd.forCPA4#Building,No.61,NanjingRd.(E),ShanghaiSigningAccountantsLiJinhua,ZhuMeirongSponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
2018
□Applicable√NotapplicableFinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod□Applicable√Notapplicable
VI.Mainaccountingdataandfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata□Yes√No
20182017Changesoverlastyear2016Operatingincome(RMB)29,515,592.3327,906,564.235.77%21,708,883.51Netprofitattributabletoshareholdersofthelistedcompany(RMB)
653,282.192,858,998.66-77.15%-2,661,052.49Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses(RMB)
816,346.09779,389.744.74%-4,072,689.97Netcashflowarisingfromoperatingactivities(RMB)6,783,893.265,127,288.4732.31%2,766,372.02Basicearningspershare(RMB/Share)0.00180.0079-77.22%-0.0073Dilutedearningspershare(RMB/Share)0.00180.0079-77.22%-0.0073ReturnonEquity0.84%3.78%-2.94%-3.52%
Endof2018Endof2017
Changesoverendof
lastyear
Endof2016Totalassets(RMB)88,197,118.0787,466,661.800.84%105,444,153.63Netassetsattributabletoshareholderoflistedcompany(RMB)
77,788,696.2977,135,414.100.85%74,276,415.44
VII.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2018
VIII.Quarterlymainfinancialindex
InRMBFirstquarter
Secondquarter
Thirdquarter
FourthquarterOperatingincome9,888,991.836,284,937.495,799,836.917,541,826.10Netprofitattributabletoshareholdersofthelistedcompany1,973,425.41-691,259.83-687,050.1058,166.71Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses
1,973,903.39-691,532.83-687,050.10221,025.63Netcashflowarisingfromoperatingactivities2,610,752.60499,925.001,585,973.612,087,242.05Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedinthecompany’squarterlyreportandsemi-annualreport□Yes√No
IX.Itemsandamountsofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMBItem201820172016NoteGains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)
-29,691.26-30,016.43380,866.43-Capitaloccupationfeeschargedbynonfinancialenterprisesrecordedinthecurrentprofitsandlosses
805,825.24961,165.05-Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems
-133,372.641,303,800.1169,606.00-Total-163,063.902,079,608.921,411,637.48--Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons□Applicable√NotapplicableInreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
2018
SectionIIISummaryofCompanyBusiness
I.Mainbusinessesofthecompanyinthereportingperiod
WhetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustryNoThecompany'smainbusinessishotelaccommodationandcateringservices.Procurementofgoodsismainlythegoodsandmaterialsnecessaryforhotelandcateringoperationsbytakingtheprincipleoflowpriceandfinequality,somegoodsarepurchasedbydirectlysigningpurchasecontractswithsuppliers,andsomegoodarepurchasedbyprocurementagents.Theoperationaremainlyincludingthenetworkbillingandoverseastravelagencyteam,andsupplementedbytheindividualtravelersofnon-internetmarketingandbusinessandthetouristsfromtravelagencies.ThehotelislocatedatthecentralzoneofDadonghaiscenicspotinSanyaCity,HainanProvince,andithasbecomeamemberofthenationwidefamoushotelsbecauseoftheconvenienttransportation,beautifulenvironment,longhistory,andrichculture.However,inrecentyears,thelocalhigh-,middle-andlow-gradehotelsorguesthousesnumerouslyemerge,resultinginthesupplymuchlargerthanthemarketdemand,theindustrycompetitionisratherfierce,andthepressureofdeclineinbusinessremains.
II.Majorchangesinmainassets
1.Majorchangesinmainassets
MajorassetsNoteofmajorchangesMonetaryfunds
Monetaryfundsincreasedmainlyincludingthe6.78millionYuancashflowincreasedfromoperationactivitiesand1.1millionYuancashdeclinedfrominvestmentactivitiesNotesReceivableandAccountsReceivable
NotesReceivableandaccountsreceivabledeclinedmainlybecausethecollectionforreceivablesareincreasedintheperiodOtherreceivablesOtherreceivablesincreasedmainlyduetothegrowthofutilitiesreceivables,attorneyfeeandpettycashNon-currentassetsduewithinoneyear
Non-currentassetsduewithinoneyeardeclinedmainlybecauseinlinewiththenewaccountingstatement,thelong-termun-amortizationexpenseswhichexpectedtobeamortizedwithinoneyearwaslistedundertheitemoflong-termun-amortizationexpenses
2.Mainoverseasassets
□Applicable√Notapplicable
III.CoreCompetitivenessAnalysis
WhetherornottheCompanycomplieswithdisclosurerequirementofthespecialindustryNoThecompanytakeshotelaccommodationandcateringservicesastheprincipleworks,locatesatDadonghaibaywhichisoneofthe
2018
China“Top40scenery”andtheonlyAAAAscenicspotopenforfreeinSanyaandhasthemaximumpassengerflowvolumeinSanyaCity,andisabouta5-minutedrivefromdowntownofSanyaCityandabouta30-munitedrivefromSanyaPhoenixAirport.Thehotelisonlytensofmetersdistantfromthesealevel,possessesbeautifullandscapingfullofbloomingflowersalltheyearround,andenjoysexceptionalgeography,naturalenvironmentaladvantages.ThehotelhasopenedformorethantwodecadeswhichisoneoftheoldesthotelsinSanyaandhasreceivedmanydomesticandforeignheadsofstateandnationalleaders.Intherecentyears,thecompanyhascomprehensivelyupgradedandrebuiltthehotel’ssoftwareandhardwarefacilities,furtherimprovedthehotelsinternalandexternalbusinessenvironment,andeffectivelyenhancedthebusinesscompetitiveness.Currently,themanagementofthecompany’shotelisstillinthefrontrankamonghotelsinthesamearea,withthesamescale,andatthesamelevel.Inthefuturework,thecompanywillkeeptryingtoimprovethehotel’sinternalandexternalbusinessenvironment,strengthenthesaleseffortsandthestaffconstruction,andfurtherimprovetheoperationalcapability.Duringthereportingperiod,thecompany'scorecompetencehadnosignificantchange.
2018
SectionIVDiscussionandAnalysisofOperation
I.Introduction
Duringthereportingperiod,thecompanyrealizedmainbusinessincomeof29,515,600Yuan,increasedby1,609,000Yuancomparedwiththesameperiodlastyear,anincreaseof5.77%;operatingprofitof816,300Yuan,decreasedby768,900Yuancomparedwiththesameperiodlastyear,adecreaseof48.50%;netnon-operatingincomeof163,100Yuan,decreasedby1,436,800Yuancomparedwiththesameperiodlastyear,adecreaseof112.80%;netprofitof653,300Yuan,decreasedby2,205,700Yuancomparedwiththesameperiodlastyear,adecreaseof77.15%.Duringthereportingperiod,theCompanyfocusonmarket-orientedandusemarketingstrategyinaflexiblewaytoexploitedthesaleschannel,meanwhile,strengtheningenterprisecultureconstructionaswellastheemployeeteam-building,makingeffortstoimproveproduct’squality,strictlycontrollingthecostmanagement,perfecttheCompany’sinternalcontrolsysteminordertoreducetherisksandconsumptionsformoreincomeearnsandlessexpenditurecosts,wecompletedtheoperationtargetsthatformulatedatbeginningoftheyearbasically.Mainworksareas:
1.Market-oriented,usemarketingstrategyinaflexiblewaytoexploitthesaleschannelDuringthereportingperiod,theCompanyactivelyexpandedthenetworkmarket,theRussianmarketandthesouthwest,north,eastandsouthernChinamarketsinadditiontofurtherconsolidatingitsexistingcustomerbasesorientedbymarketswithflexibleutilizationofmarketingstrategies.Besides,increasingcooperationwasmadebytheCompanywithdomesticandforeignwell-knowntravelagencies,salesnetworkplatformsanddirect-saletravelagenciesinthefirstandsecondtiercities.TheCompanyalsoconductedimplementationofsalesincentivesandsalesmechanisminvolvingeverystaff,toincreasethemarketshareintermsofsales.Duringthereportingperiod,therevenueoftheCompanyfromoverseassales,networksales,meetingteamsandindividualvisitorsfromtravelagenciesincreasedsignificantlyoverthesameperiodoflastyear.TherevenuefromitsmajoroperatingbusinesswasRMB27.9066million,representingayear-on-yearincreaseof28.55%ascomparedtotherevenueofRMB6.1977millionofpreviousyear.2.People-oriented,strengthentheenterprisewithhigh-quality,strivetoimproveproductqualityandenhancethecompetitive-nessofenterprisesInreportingperiod,inlinewiththeHuman-Orientedemploymentideality,wecontinuouslyenrichedtheculturelifeforemployees,createaharmoniousworkingenvironmentandstrengthentheconstructionofenterprisecultureandstaff-building.Atthesametime,createnewmanagementmechanism,motivateandmobilizedtheenthusiasm,initiativeandcreativityofthestaff.Basedonthemanagementidealof“strengthentheenterprisewithhigh-quality”,weconstantlystrengthenthehotelmanagementandcarriedoutskilltraininginpre-jobfortheirbasicinformationandtheafter-jobforbusinessabilityimprovement.Enhancetheservicestandardsand
2018
consciousness,aswellasthesenseofresponsibilityandquality,effectivelyimprovedtheservicequalityandmanagementstandards,andimprovingthequalityofthehotelandcomprehensivecompetitiveness.3.Strictlycurbthecostsandbudgetmanagement,improveinternalcontrolmechanism,reducingrisksandconsumptions,increaserevenueandreduceexpenditures,safetyinproductiontomaximizetheinterestoftheenterpriseDuringthereportingperiod,theCompanycontinuedtofocusonfinancialmanagement,improvetheprocurementmanagementsystem,strengthenmanagementofprocurementcostcontrolandbudgetmanagement,adoptdiversifiedmeanstoobtainprocurementpriceinquiry,suchasnetworkpriceinquiry,thehotelindustrypriceinquiryandothermeasures,obtaincostinquiryfromoverthreesupplierstoselectthebestone,controloperatingcostsinascientificmanner,strictlycontrolvariousexpenseandexpenditures,frequentinspectionandrepairtopreventwasteofresources,whichenabledtheCompanytoeffectivelyimprovethereasonablenessofprocurementcostandcosteffectiveness.Besides,humanresourcescostwaseffectivelybroughtdownduetooptimizedorganestablishmentandpersonneldistribution.Atthesametime,theCompanycontinuedtoimprovetheinternalcontrolsystem,strengthenregulationandimplementationofinternalcontrolsystem,strengthentheeffectiveimplementationofinternalcontrolwork,reducerisksandconsumption,increaserevenueandcontrolexpenditures,emphasizeproductionsafetyandimproveoperationalefficiency,toensuretheoperationsafetyandthusmaximizetheinterestsoftheCompanyasawhole.In2019,theCompanycontinuestoconsolidateandexpandsaleschannels,improvethehotel’squalityandservicestandards,andenhancethecomprehensivecompetitiveness,tolayingoutasolidfoundationforsustained,stableandhealthydevelopmentoftheCompany.
II.Mainbusinessanalysis
1.Introduction
Seethe“I-Introduction”in“DiscussionandAnalysisofOperation”
2.Revenueandcost(1)Constituteofoperationrevenue
InRMB20182017
Increase/decrease
y-o-yAmount
Ratioinoperation
revenue
Amount
Ratioinoperation
revenueTotalofoperationrevenue
29,515,592.33100%27,906,564.23100%5.77%AccordingtoindustriesTourismcatering26,442,049.4789.59%24,691,592.8688.48%7.09%
2018
serviceOtherbusiness3,073,542.8610.41%3,214,971.3711.52%-4.40%AccordingtoproductsRoomrevenue22,731,299.1577.02%21,103,123.0975.62%7.72%Cateringentertainmentrevenue
3,710,750.3212.57%3,588,469.7712.86%3.41%Otherbusiness3,073,542.8610.41%3,214,971.3711.52%-4.40%AccordingtoregionHainanarea29,515,592.33100.00%27,906,564.23100.00%5.77%
(2)Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit
√Applicable□NotapplicableWhetherornottheCompanycomplieswithdisclosurerequirementofthespecialindustryNo
InRMBOperating
revenue
Operatingcost
Grossprofitratio%
Increase/decreaseofoperatingrevenuey-o-y
Increase/decreaseofoperating
costy-o-y
Increase/decrea
seofgrossprofitratioy-o-y%AccordingtoindustriesTourismcateringservice
26,442,049.4711,280,674.5457.341,750,456.61615,278.511.00Otherbusiness3,073,542.86474,523.5684.56-141,428.510.00-1.00AccordingtoproductsRoomrevenue22,731,299.159,307,117.6159.061,628,176.06548,753.231.00Cateringentertainmentrevenue
3,710,750.321,973,556.9346.82122,280.5566,525.280.00Otherbusiness3,073,542.86474,523.5684.56-141,428.510.00-1.00AccordingtoregionHainanarea29,515,592.3311,755,198.1060.171,609,028.10615,278.510.00Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end□Applicable√Notapplicable
2018
(3)Incomefromphysicalsaleslargerthanincomefromlabors
□Yes√No
(4)Fulfillmentofthecompany’ssignedsignificantsalescontractsuptothisreportingperiod
□Applicable√Notapplicable
(5)Constituteofoperationcost
Productsclassification
InRMBProductsItem
20182017Increase/de
creasey-o-yAmount
Ratioinoperation
cost
Amount
Ratioinoperation
costTourismcateringservice
Rawmaterial
1,973,556.9316.79%1,907,031.6517.12%3.49%Tourismcateringservice
Salarywelfare
2,092,195.7417.80%1,891,709.8016.98%10.86%Tourismcateringservice
Waterandelectricity
1,355,721.9911.53%1,564,778.8314.05%-13.36%Tourismcateringservice
Depreciation2,160,828.6918.38%2,009,886.9418.04%7.51%Tourismcateringservice
Repaircost
1,319,951.9711.23%964,425.228.66%36.86%Tourismcateringservice
KnittedandCottonGoods
170,130.341.53%-100.00%Tourismcateringservice
Washingfee680,236.965.79%594,068.645.33%14.50%Tourismcateringservice
Totalcost
11,280,674.5495.96%10,665,396.0395.74%5.77%
(6)WhetherthechangesinthescopeofconsolidationinReportingPeriod
√Yes□No
ChangesofconsolidatedscopeSubsidiaryincludedinconsolidatedscopeintheperiod
NameCombinedbyNetassetsat
period-end
CurrentnetprofitEstablishedonHainanWengaoTourismResourcesNew999,768.27-231.732018.6.6
2018
(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinReportingPeriod
□Applicable√Notapplicable
(8)Majorsalesandmainsuppliers
MajorsalesclientoftheCompany
Totaltopfiveclientsinsales(RMB)
17,703,242.98Proportionintotalannualsalesvolumefortopfiveclients
59.98%Ratioofrelatedpartiesinannualtotalsalesamongthetopfiveclients
0.00%InformationoftopfiveclientsoftheCompany
‘NameSales(RMB)Proportionintotalannualsales
SanyaHaolideInternationalTravelServiceCo.,Ltd.
6,626,716.0022.45%
SanyaYouyiInternationalTravelAgencyCo.,Ltd.
5,408,974.0018.33%
ShanghaiHechengInternationalTravelServiceCo.,Ltd.
2,424,883.408.22%
Alipay(China)NetworkTechnologyCo.,Ltd.
2,074,558.587.03%
SanyaShengdaInternationalTravelAgencyCo.,Ltd.
1,168,111.003.96%Total--17,703,242.9859.98%Othersituationofmainclients□Applicable√NotapplicableMainsuppliersoftheCompany
Totalpurchaseamountfromtopfivesuppliers(RMB)7,105,892.26Proportionintotalannualpurchaseamountfortopfivesuppliers82.48%Ratioofrelatedpartiesinannualtotalsalesamongthetopfivesuppliers0.00%InformationoftopfivesuppliersoftheCompany
SerialNameSales(RMB)Proportionintotalannualsales
SanyaYunfangFoodDistributionCo.,Ltd.
2,840,267.0632.97%
SanyaPowerSupplyBureauofHainanPowerGrid
2,494,649.6728.96%
DevelopmentCo.,Ltd.establishment
2018
3SanyaZhengzhuangIndustrialCo.,Ltd.695,109.808.07%4SanyaSinoFrenchWaterCo.,Ltd.662,067.337.68%
SanyaChangfengOceanNaturalGasSupplyCo.,Ltd.
413,798.404.80%Total--7,105,892.2682.48%OthernotesofmainsuppliersoftheCompany□Applicable√Notapplicable
3.Expenses
InRMB20182017
Increase/decreas
ey-o-y
NoteofmajorchangesSalesexpense5,619,079.955,124,503.559.65%ThesalaryexpensesincreasedManagementexpense10,133,021.979,665,525.834.84%ThesalaryexpensesincreasedFinancialexpense-188,278.60-249,176.18-24.44%Incomeofsavinginterestsdeclined
4.R&Dexpenses
□Applicable√Notapplicable
5.Cashflow
InRMBItem20182017Y-o-ychangesSubtotalofcashin-flowfromoperationactivity
33,598,344.8530,557,863.939.95%Subtotalofcashout-flowfromoperationactivity
26,814,451.5925,430,575.465.44%Netcashflowfromoperationactivity
6,783,893.265,127,288.4732.31%Subtotalofcashin-flowfrominvestmentactivity
9,840,550.00-100.00%Subtotalofcashout-flowfrominvestmentactivity
1,101,145.1232,496,479.32-96.61%Netcashflowfrominvestmentactivity
-1,101,145.12-22,655,929.32-95.14%Subtotalofcashin-flowfromfinancingactivity
19,810,000.00-100.00%
2018
Subtotalofcashout-flowfromfinancingactivity
19,810,000.00-100.00%Netincreasedamountofcashandcashequivalent
5,682,748.14-17,528,640.85132.42%Mainreasonsfory-o-ymajorchangesinaspectofrelevantdata√Applicable□Notapplicable1.Cashin-flowfromoperatingactivitiesincreased9.95%fromayearearlier,mainlybecauserevenuefromoperationincreaseddramaticallyandsalesreturnincreasedcorrespondingly;2.Cashout-flowfromoperatingactivitiesincreased5.54%fromayearearlier,mainlybecausesalesvolumeincreaseddramatically,andpurchasingbusinessandsalaryexpensesincreased;3.Netcashflowfromoperatingactivityincreased32.31%fromayearearlier,mainlybecausecashin-flowovertheout-flowfromoperatingactivitiesintheperiod;4.Cashin-flowfrominvestmentactivitydeclined100%fromayearearlier,mainlyduetotheprincipalof9millionYuancreditors’investmentintheyearandcollectionoffundpossessioncost;5.Cashout-flowfrominvestmentactivitydeclined96.61%fromayearearlier,mainlybecausepaidCSRCfineslastyearandcreditor’sinvestmentpayment;6.Netcashflowfrominvestmentactivitydeclined95.14%onay-o-ybasis,mainlybecausepaidCSRCfineslastyearandobtainedthefundpossessioncostforcreditors’investment;7.Cashin-flowfromfinancingactivitydeclined100%onay-o-y,mainlybecausea19.81millionYuanintercoursefundfromLuoniushanGroupCo.,Ltd.wasachievedlastyear;8.Cashout-flowfromfinancingactivitydeclined100%onay-o-y,mainlyduetothepaymentof19.81millionYuanintercoursefundfromLuoniushanGroupCo.,Ltd.lastyear;9.Netincreasedamountofcashandcashequivalentincreased132.42%fromayearearlier,mainlybecausethecashincreased5.68millionYuanintheperiodwhiletherewasadeclineof17.53millionYuancashlastyearReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany□Applicable√Notapplicable
III.Analysisofthenon-mainbusiness
√Applicable□Notapplicable
InRMBAmountRatiointotalprofitNoteWhetherbesustainableAssetimpairment
-13,656.55-2.09%
Switchbackofthebaddebtprovision
Un-sustainabilityNon-operatingincome
273.000.04%Otherrevenue
Un-sustainabilityNon-businessexpenditure
163,336.9025.00%
Theoverduefineandlossfromfixed
assetsdisposal
Un-sustainability
2018
IV.Assetsandliability
1.Majorchangesofassetscomposition
InRMBEndof2018Endof2017
Ratiochanges
NotesofmajorchangesAmount
Ratioin
totalassets
Amount
Ratioin
totalassetsMonetaryfund15,364,355.3017.42%9,681,607.1611.07%6.35%
NetincreaseofcashflowarisingfromoperationactivitiesAccountreceivable
426,434.870.48%594,130.890.68%-0.20%CollectionofthereceivablesincreasedInventory221,390.190.25%227,005.110.26%-0.01%InnormalchangesInvestmentrealestate
8,384,480.439.51%8,859,003.9910.13%-0.62%InnormalchangesFixassets36,497,869.6541.38%39,088,708.8344.69%-3.31%Innormalchanges
2.Assetsandliabilitymeasuredbyfairvalue
□Applicable√Notapplicable
3.Assetsrightrestrictiontillendofreportingperiod:Nil
V.Investment
1.Overallsituation
√Applicable□Notapplicable
Investmentinthereporting(RMB)
Investmentinthesameperiodoflast
year(RMB)
Changes1,000,000.009,000,000.0088.89%
2.Themajorequityinvestmentobtainedinthereportingperiod
√Applicable□Notapplicable
InRMBInvestee
Mainbusin
ess
Way
ofinvestment
Investmentamou
nt
Shareholdi
ngratio
Capit
alresources
Partn
er
Investmentterm
Producttype
Progres
stillendofbalance
Incom
eest
Gain/lossintheperio
Laws
uitinvolved
Disclosuredate
Disclosureindex
2018
sheetdate
imated
d(Y/N
)HainanWengaoTourismResourcesDevelopmentCo.,Ltd.
Developmentoftourism
Newlyestablished
1,000,000.
100.0
0%
Selfraisedcapital
N/A
Long-term
Tourismproduct
Investmentcompleted
0.0
-231.
N
2018-06-07
Total----
1,000,000.
------------
0.0
-231.
------
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√NotapplicableThecompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√NotapplicableTheCompanyhasnoderivativesinvestmentinthereportingperiod.
5.Applicationofraisedproceeds
□Applicable√NotapplicableTheCompanyhasnoapplicationofraisedproceedsinthereportingperiod.
(1)Overallapplicationofraisedproceeds
□Applicable√Notapplicable
(2)Situationofcommittedprojectofraisedproceed
□Applicable√Notapplicable
2018
(3)Thechangedprojectofraisedproceeds
□Applicable√Notapplicable
VI.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhadnosalesofmajorassetsinthereportingperiod.
2.Salesofmajorequity
□Applicable√Notapplicable
VII.Analysisofmainholdingcompanyandstock-jointlycompanies
√Applicable□NotapplicableParticularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%
InRMBCompany
name
Type
Mainbusiness
Registercapital
Totalassets
NetAssets
Operating
revenue
Operating
profit
NetprofitHainanWengaoTourismResourcesDevelopmentCo.,Ltd.
Subsidiary
Tourismdevelopment
1000000999,768.27999,768.270.00-231.73-231.73
Notesofholdingandshareholdingcompanies
□Applicable√NotapplicableExplanationonmainholdingandshare-holdingenterprise:HainanWengaoTourismResourcesDevelopmentCo.,Ltd.isintheprocessofestablishmentwithoutoperationalnotyet
VIII.StructuredvehiclecontrolledbytheCompany
□Applicable√Notapplicable
IX.FutureDevelopmentProspects
1.IndustrialdevelopmenttrendandcompetitionfacingtheCompanySanyaistheonlytropicalseasidecityinChinawithaworld-leadingeco-environment,andhasawonderfulairqualitythatcanbenumberedinChina,itownsanaboundmarineresourceswithuniqueresourceadvantage.
2018
Sanyahasageographicalpositionadvantageandunderthehelpofpreferentialpolicyofduty-freefortheinternationalizationoftourismisland,withtheimprovementofpeople’slifequalityinrecentyears,andenhancementoftourismconsumptionconsciousnessaswellasthesmogairandcoldclimateoutsidetheisland,thetourismmarketprospectshasagoodtrendinHainan.However,inreportingperiod,withtheslowgrowthofglobaleconomic,andvigorousdevelopmentinthetouristattractionsinandaroundthecountry,theconsumptioncostsinSanyacomesmoreandmoreexpensive,thetouristdiversionandthesupplyfargreaterthanthedemandwhilehomeinnhotelrapidlyexpandingblindly,themarketcompetitioncomesmoreandmoreintensify.Inaddition,withthesoaringoperationcostsandexpendituresforthesalaryofhospitalityindustryinSanyaandshrinkingoperationprofit,thehotelindustryfacedadownwardpressureonoperation.Inthefuturework,thecompanywillcontinuetostrengthentheupdatingandtransformationofthehotel’sequipmentandfacilities,improveandupgradethehardwareandsoftwareequipmentsandfacilitiesandthequalityofinternalandexternalbusinessenvironment,enhancetheconstructionofenterprisecultureandstaffteams,improveservicelevelandservicequality,activelyexpandthesaleschannels,makefulluseoftheinternetplatform,expandthesalesnetwork,increasethemarketshare,andfurtherimprovethemanagementlevelandcorecompetitiveness.2.Futuredevelopmentplansandoperationplanforyearof2019(1)Market-oriented,continuestoimprovethequalitymanagementofthesoftwareequipmentandfacilitiesintheHotel,enhancingthehotelbrandimage,expandingmarketchannel,andcenterwithenterprisesperformance,makingthebrandmorebiggerandstrongerdrovedbypioneerandinvent.(2)Continuetoexpandfinancingchannels,enrichtheindustrialconstruction,widenthecompanysize,increasedmoreprofitpointsinordertostrengthenthesustainability,stableandhealthilyoftheoperation.(3)Continuetostrengthenthestandardmanagementofinternalcontrol,perfectthecorporategovernancestructure,standardizethemanagementandoperation,andeffectivelycontroltherisks.3.FunddemandsanduseplanrequiredforthefuturedevelopmentoftheCompanyTheCompanyutilizesownedfundsorfinancingmethodstoraisethefundsdemandedfordevelopment,andcompletesthedevelopmentplanningoftheCompany.4.TherisksmaycauseadverseeffectsonthefuturedevelopmentstrategyandrealizationofoperationtargetoftheCompany
(1)MarcoPolicyrisks
Inordertonormalizeandoptimizetourismmarketorfurthertopromoteclear-partyconstruction,relateddepartmentsmayfurtherissuesomerelativepolicies.Whilethesepolicesmaycauserestrainandeffectonregionaltourismdevelopment.Mainbusinessincomemaybeaffectedsinceweareengagedintourismservice.Countermeasures:TheCompanywillfurthertoimprovethehardandsoftequipmentsandfacilitiesofthehotelwhileexpandingthebusinessscope,andwinmoremarketsharesviahigh-classserviceandcomfortableenvironmentsoastoensurethemainbusinessincomelevel.
(2)Naturaldisasterrisks
Inrecentyears,variousnaturaldisasterstakeplacefrequently,HainanIslandbelongstooceanicclimate,wherehashighincidenceofdisastrousweatherinsummer.IfSanyabecomesthelandingplaceoftyphoon,itmaycause
2018
greatdamagestothefacilitiesoftheCompanyandaffecttheCompany’snormaloperation.Countermeasures:TheCompanywillstrengthentheconstructionandmaintenanceforinfrastructure,continuetobuypropertyinsurances,positivelyadopteffectivepreventionmeasures,andimprovetheabilityofresistingnaturaldisasters.
(3)RisksofHR
Demandfortalentinaspectofhotelsalesandmanagementareincreasinglyduetotheconstantlyriseofhotelindustry,flowofhoteltalentedpeoplecomesmorewidespreadandmorefrequent,wemayfacetherisksofdevelopmentrestrainedfrombraindrain.Countermeasure:wewillcontinuetoimprovedthetalentintroduction,trainingsystem,incentivemechanism,remunerationandwelfareaswellasinsurancemechanism,strivetoattracttalent,cultivatethemandretainthem.Meanwhile,strengthenstaffqualityandskillsaswellasthemanagementability,furtherputtingmoreeffortsinenterprisecultureconstruction,enhancethecohesionintheCompany,andguaranteeastableofthecoremanagementandskilltechnicians.(4)OperationalrisksofmainbusinessWiththeceaselessdevelopmentofglobaltouristindustryconstantlyandceaselessrisingofhigh-class,middle-classandlow-classhotels,thetouristsourceskeepshunting,andthecompetitionoftourismserviceindustryinSanyabecomesincreasinglyfierce.WhilethemainbusinessoftheCompanyisjustasmall-scalehotel,asthemainbusinessissingleandthebusinessscopeislimited,thetouristmarketconditionsandtouristquantitydirectlymakesignificantaffectsonthecompanyperformance.Countermeasure:madeascientificmanagementanddecision-makingprocedures,strengthentheawarenessofriskprevention,buildingandimprovingrelevantmechanismandregulizedthemanagementintheCompany.Furthermore,increasethesalesability,onbaseoftheformersalesnetwork,continuestoexploitforeignhigh-endtourismmarketunderthesuperiorgeographicallocationandenvironmentforimprovingtheoccupancyrate.Besides,continuestoexploitfinancingchannel,expandingoperationprojects,enrichtheindustrialstructureforincreasingtheprofitincreasingpoint.
X.Receptionofresearch,communicationandinterview
1.Inthereportperiod,receptionofresearch,communicationandinterview
√Applicable□Notapplicable
TimeWayTypeBasicsituationindexofinvestigation2018-10-11
Telephonecommunication
Individual
InvestorMr./Ms.LiufromGuangdong,operationperformanceofthe3Qanddisclosuredate,nomaterialsrequired2018-10-23
Telephonecommunication
Individual
InvestorMr./Ms.ZhangfromShanghai,progressoftheLawyer’sLetterreceivedbytheCompanyandwithoutanymaterialrequired2018-11-15
Telephonecommunication
Individual
InvestorMr./Ms.HuafromBeijing,share-mergerreformperformancebythemajorityshareholdersandnomaterialrequired2018-11-22
Telephonecommuni
IndividualInvestorMr./Ms.FangfromShenzhen,materiallawsuitoftheCompanyandno
2018
cation
materialrequired2018-12-05
Telephonecommunication
Individual
InvestorMr./Ms.DongfromZhejiang,annualoperationperformanceofthe
Companyandnomaterialrequired2018-12-26
Telephonecommunication
Individual
InvestorMr./Ms.HefromShaanxi,annualoperationperformanceofthe
CompanyandmateriallawsuitswithoutmaterialrequiredReception(times)
Numberofhospitality
Numberofindividualreception
Numberofotherreception
Disclosed,releasedorletoutmajorundisclosedinformation
No
2018
SectionV.ImportantEvents
I.Profitdistributionplanofcommonstockandcapitalizingofcommonreservesplan
Formulation,ImplementationandAdjustmentofcommonstockProfitDistributionPolicyEspeciallyCashDividendpolicyduringtheReportingPeriod□Applicable√NotapplicableProfitdistributionplan(pre-plan)ofcommonstockandcapitalizingofcommonreservesplan(pre-plan)inlatestthreeyears(includingthereportingperiod)
Accordingtotheauditingreportsissuedbycertifiedpublicaccountants,thenetincomerealizedinnearlythreeyears(includingthereportingperiod)wasusedtomakeupthelossesinthepreviousyear;theundistributedprofitduringthisreportingremainedaminus.TheCompanydidnottakeprofitallocationnorcapitalizationofcapitalreserveduringthereportingperiod.
Cashdividendofcommonstockinlatestthreeyears(includingthereportingperiod)
InRMB
Yearforbonusshares
Amountforcashbonus
(taxincluded)
Netprofitattributabletocommon
stockshareholders
oflistedcompanyinconsolidationstatementfor
bonusyear
Ratioofthecashbonusin
netprofit
attributable
tocommon
stock
shareholders
oflistedcompany
containedin
consolidation
statement
Proportion
forcashbonusby
otherways(i.e.
sharebuy-backs)
Ratioofthecashbonus
byotherwaysinnet
profitattributabletocommon
stockshareholders
oflistedcompanycontainedinconsolidation
statement
Totalcashbonus(other
ways
included)
Ratioofthe
totalcashbonus(other
waysincluded)in
netprofitattributabletocommon
stockshareholders
oflistedcompanycontainedinconsolidation
statement20180.00653,282.190.00%0.000.00%0.000.00%20170.002,858,998.660.00%0.000.00%0.000.00%20160.00
-2,661,052.4
0.00%0.000.00%0.000.00%TheCompanygainsprofitsinreportingperiodandtheretainedprofitofcommonstockshareholdersprovidedbyparentcompanyispositivebutnoplanofcashdividendproposedofcommonstock□Applicable√Notapplicable
2018
II.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherfortheyear.
III.Implementationofcommitment
1.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
CommitmentsPromise
Type
ofcommitments
Contentofcommitments
Commi
tmentdate
Commitment
term
Implemen
tation
CommitmentsforShareMergerReform
LuoniushanCo.,Ltd
CommitmentsforShareMergerReform
OnMay30,2007,LuoniushanCo.,Ltd.madecommitmentsintheCompany’s"Instructionsforreformofnon-tradableshares"(Revision)and"Instructionsforreformofnon-tradableshares"(Abstractofrevision)thatinviewofDadonghaiCompany’slossesinsuccessiveyearsandonthevergeofdelisting,inordertoreversethecompany'sbusinessdifficulties,improveprofitabilityandrecoverthecontinuousbusinesscapacity,LuoniushanCo.,Ltd.,thecontrollingshareholderofDadonghaiCompanymadecommitmentstoactivelyseekrestructuringpartiestoreorganizetheassetsofDadonghaiCompanyattheappropriatetime.
2017-06-27
months
Theoriginalplansofmaterialassetsreorganizationwasterminated
CommitmentsinreportofacquisitionorequitychangeCommitmentsinassetsreorganizationCommitmentsmakeininitialpublicofferingorre-financingEquityincentivecommitmentOthercommitmentsformediumandsmallshareholdersCompletedontime(Y/N)NIfthecommitmentsisnotTheCompany'sstockcommencedsuspensionoftradingfromtheopeningsessionon15February2017
2018
fulfilledontime,shallexplainthespecifyreasonandthenextworkplan
asitplannedtofulfillitscommitments.On13August2017,12proposalsrelatingtoMaterialAssetAcquisitionandConnectedTransactionReport(Plan)ofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.weredeniedatthe11
th
extraordinarygeneralmeetingofthe8
th
sessionofboardofdirectorsoftheCompany.On15August2017,theCompanyannouncedtoterminatethisrestructuringrelatingtomaterialassetsacquisition,andthestockoftheCompanycommencedtradingsince17August2017.OnDecember4,2017,theboardofdirectorsandtheboardofsupervisorsofthecompanyreviewedandapprovedtheProposalontheChangeofCommitmentPeriodoftheFirstMajorityShareholderoftheCompany.LuoniushanCo.,Ltd.,thecompany’sfirstmajorityshareholderplannedforatwo-yearextensionforthetimelimitofthecompany’srestructuringcommitmentsinceDecember27,2017,thatis,thedeadlinefortheimplementationoftherestructuringcommitmentwaschangedtoDecember26,2019.OnDecember22,2017,thecompany’sfourthextraordinaryshareholders’meetingin2017didnotapprovetheproposal.OnJanuary31,2018,thecompanyreceivedtheNoticeonPlanningforSuspensionofMajorEventssentbyLuoniushanCo.,Ltd.,thecompany’slargestshareholder,toplanandpreparethemajorissuesrelatedtothecompany.Uponapplicationbythecompany,thecompany’sstock(stockshortname:
DadonghaiA,DadonghaiB,stockcode:000613,200613)wassuspendedsincetheopeningonJanuary31,2018.Uponapplicationbythecompany,thecompany’sstockresumedtradingonFebruary8,2018,andwastransferredtothemajorassetrestructuringsincetheopeningonFebruary14,2018.OnJune25,2018,thecompanyheldthethirdinterimmeetingoftheninthboardofdirectorswhichreviewedandapprovedtheProposalonTerminatingthePlanningforMajorAssetRestructuring.Aftercarefulstudy,theboardofdirectorsofthecompanydecidedtoterminatetheplanningforthismajorassetrestructuring.
2.ConcerningasstsorprojectoftheCompany,whichhasprofitforecast,andreportingperiodstillinforecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
IV.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty
□Applicable√NotapplicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.
V.ExplanationfromBoardofDirectors,SupervisoryCommitteeandIndependentDirectors(ifapplicable)for“QualifiedOpinion”thatissuedbyCPA
□Applicable√Notapplicable
VI.Particularsaboutthechangesinaspectofaccountingpolicy,estimatesandcalculationmethodcomparedwiththefinancialreportoflastyear
√Applicable□Notapplicable
1.Changeofaccountingpolicy
2018
On15June2018,theNoticeoftheMinistryofFianceonRevisingandIssuingtheFormatofGeneralCorporateEnterpriseFinancialStatementsfor2018(CK[2018]No.15)wasissuedbytheMinistryofFiance,thefinancialstatementformatforgeneralcorporateenterprisearerevised.MaininfluencefortheabovementionedRevisedoftheCompanyare:
ContentandreaosnforaccountingpolicychangedApproval
procedures
Itemsandamountbeingaffected(1)Underthebalancesheet:“Notereceivable
and“Accountreceivable”aretogetherlisted
”as
“Notereceivable&accountreceivable”;”
asNote
payable”and“Accountpayable”aretogether
Notelisted
as“Notepayable&accountpayable”;”
listedInterest
receivable”and“Dividendreceivable”are
Interestincluded
underthe“Otherreceivables”;“Interestpayable
included”
and“Dividendpayable”areincludedunder
”the
“Otherpayables”;”Fixedassetsdisposal”
theis
includedunderthe“Fixedassets”;“
isEngineering
materials”isincludedunderthe“Construction
Engineeringin
progress”;“Specialpayables”isincludedunder
inthe
“Long-termpayables”.Thecomparative
thedata
shouldbeadjustedcorrespondingly
Resolution
dataof
theBoard
“Notereceivable”and“Accountreceivable”aretogether
| of | listed |
as“Notereceivable&accountreceivable”,current
amountedas426,434.87Yuan,while594,130.89Yuanlistedlastperiod;”Notepayable”and“Accountpayable”aretogetherlisted
balanceas
“Notepayable&accountpayable”,currentbalance
asamounted
as1,607,835.81Yuanwhile2,161,172.26Yuanlistedlastperiod.“Interestpayable”and“Dividendpayable”areincludedunder
amountedthe
“Otherpayables”;”Fixedassetsdisposal”isincludedunder
thethe
“Fixedassets”;“Engineeringmaterials”isincludedunder
thethe
“Constructioninprogress”;“Specialpayables”isincluded
theunder
the“Long-termpayables”,therewerenoamountlistedin
underthe
periodandlastperiod(2)Addeditemof“R&Dexpenses”underthe
theprofit
statement,theR&Dexpensesincludedunderoriginal“Administrationexpenses”wasre-classifiedas“R&Dexpenses”for
profitcounting
independently;added“Including:interestexpenses”and“Interestrevenue”under
countingthe
financialexpenses.Thecomparativedatashould
thebe
adjustedcorrespondingly
Resolution
beof
theBoard
TheR&Dexpensesincludedunderoriginal“
| of | Administration |
expenses”wasre-classifiedas“R&Dexpenses”for
independently;noamountoccurredintheperiodandlastperiod
(3)Addeditemof“Changeamountof
countingdefined
benefitplansthatcarryforwardretainedearnings
defined”
underthestatementofchangeofowners’
”equity.
Thecomparativedatashouldbeadjustedcorrespondingly
Resolution
equity.of
theBoard
Addeditemof“Changeamountofdefinedbenefitplans
| of | that |
carryforwardretainedearnings”underthestatementofchange
owners’equity,noamountoccurredintheperiodandlastperiod
2.ChangeofaccountingestimatesMajoraccountingestimateshavenochangesinthereportingperiod.3.ChangeofcalculationmethodMajorcalculationmethodhasnochangesinthereportingperiod
2018
VII.Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement
□Applicable√NotapplicableNomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod.
VIII.Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope
√Applicable□Notapplicable
ChangesofconsolidatedscopeSubsidiaryincludedinconsolidatedscopeintheperiod
NameComibedbyNetassetsat
period-end
CurrentnetprofitEstablihsedonHainanWengaoTourismResourcesDevelopmentCo.,Ltd.
Newestablishment
999,768.27-231.732018.6.6
IX.Appointmentandnon-reappointment(dismissal)ofCPA
Accountingfirmappointed
NameofdomesticaccountingfirmBDOCHINAShuLunPanCertifiedPublicAccountantsLLPRemunerationfordomesticaccountingfirm(in10thousandYuan)
Continuouslifeofauditingservicefordomesticaccountingfirm
NameofdomesticCPALiJinhua,ZhuMeirongContinuousfixednumberofyearfortheauditingserviceprovidedbyCPAindomesticCPAFirms
FirstauditingRe-appointedaccountingfirmsinthisperiod□Yes√NoAppointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor√Applicable□Notapplicable
On1February2018,theCompanyholdingthe16
th
meetingof8
th
sessionoftheBoard,anddecidedtoappointedBDOCHINAShuLunPanCertifiedPublicAccountantsLLPastheauditinginstituteoftheinternalcontrolforyearof2018andthedecisionhasbeendeliberatedandapprovedingeneralmeetingof2017.Duringtheperiod,auditingfee80,000Yuanintotalhasbeenpaidtotheinstituteforinternalcontrolauditing.
X.Particularaboutsuspendedanddelistingafterannualreportdisclosed
□Applicable√Notapplicable
2018
XI.Bankruptcyreorganization
□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinreportingperiod
XII.SignificantlawsuitsandarbitrationsoftheCompany
√Applicable□NotapplicableBasicSituationofLitigation(Arbitration)
AmountInvolved(Yuan)
WhethertoFormanEstimatedLiability
Litigation(Arbitration)Progress
Litigation(Arbitration)TrialResultsandImpact
ExecutionofLitigation(Arbitration)Judgment
DateofDisclosure
DisclosureIndex
Theplaintiff,ChinaCindaAssetManagementCo.,Ltd.HainanBranch,suedthedefendants,HainanDadonghaiTourismCenter(Holdings)Co.,Ltd.andSanyaYueyaRealEstateDevelopmentCorporation,forafinancialloancontractdispute,appealingtoHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.torepaytheloanof5millionYuanandtheloaninterestof29,311,700Yuantemporarilycalculatedto
3,431.17N
Thefirstinstancehasbeendecided.OnJanuary24,2019,thecompanyreceivedthePetitionforAppealfromtheplaintiffHainanCinda.TheplaintiffHainanCindarefusedtoacceptthefirstinstancejudgmentandappealedtotheHainanHigherPeople’sCourt.Asofthedisclosuredateofthisreport,thesecondinstancehasnotyetbeenheard.
ThefirstinstancejudgmentdismissedtheclaimoftheplaintiffChinaCindaAssetManagementCo.,Ltd.HainanBranch,andthecaseacceptancefeeandpropertypreservationapplicationfeewerebornebyChinaCindaAssetManagementCo.,Ltd.HainanBranch.Thejudgmentofthefirstinstancehasnoimpactonthecompany,andthesecondinstancehasnotyetbeenheard.Therefore,theimpactofthelitigationonthe
N/A
January5,2019,January31,2019
AnnouncementonSignificantLitigation(AnnouncementNo.:
2019-001)and(AnnouncementNo.:
2019-003)publishedbySecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
2018
April30,2018,SanyaYueyaRealEstateDevelopmentCorporationassumesthejointandseveralliability,andthetwodefendantsbearlitigationcosts.Inthecourseofthelitigation,theplaintiffaddedthecompanyasaco-defendantandrequiredthecourttoorderthecompanytoassumejointandseveralliabilityfortheabovedebtsofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.
company'scurrentprofitandfutureprofitisuncertain.
XIII.Penaltyandrectification
□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.
XIV.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers
□Applicable√Notapplicable
XV.Implementationofthecompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√NotapplicableDuringthereportingperiod,thecompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentivesthathavenotbeenimplemented.
2018
XVI.Majorrelatedtransaction
1.Relatedtransactionwithroutineoperationconcerned
√Applicable□Notapplicable
Related
party
Relationshi
p
Type
ofrelate
dtransaction
Contentofrelate
dtransaction
Pricin
gprinci
ple
Relat
edtransactionprice
Relat
edtransactionamou
nt(in10thous
andYuan)
Proportion
insimila
rtransactions
Tradi
nglimitappro
ved(in10thous
andYuan)
Whet
herovertheappro
vedlimite
dor
not(Y/N)
Clearingform
forrelatedtransac
tion
Availab
lesimilarmarket
price
Date
ofdisclos
ure
Indexofdisclosure
LuoniushanCo.,Ltd.
Firstmajorityshareholder
Consumption
Accommodation
Marketprice
Marketprice
34.55
1.23
%
Yes
Sameasthetransactionwithnon-relatedparty
Sameasthetransactionwithnon-relatedparty
--
Total----34.55--0----------Detailofsalesreturnwithmajoramountinvolved
N/AReporttheactualimplementationofthedailyrelatedtransactionswhichwereprojectedabouttheirtotalamountbytypesduringthereportingperiod
N/AReasonsformajordifferencesbetweentradingpriceandmarketreferenceprice
N/A
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√NotapplicableNorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod
3.Relatedtransactionsofmutualinvestmentoutside
□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod
2018
4.Contactofrelatedcreditanddebt
□Applicable√NotapplicableNocontactofrelatedcreditordebtfortheCompanyinthereportingperiod
5.Othersignificantrelatedtransactions
□Applicable√NotapplicableThecompanyhadnoothersignificantrelatedtransactionsinreportingperiod.
XVII.Significantcontractandimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√NotapplicableNotrusteeshipfortheCompanyinreportingperiod
(2)Contract
□Applicable√NotapplicableNocontractfortheCompanyinreportingperiod
(3)Leasing
√Applicable□NotapplicableNoteofleasingItemTenantLeaselifeTermofleaseB/FoftheHotelMaMing(HainanHangpaiFoodCo.,
Ltd.)
5years2016-01-01to2020-12-31Shoppingmall–B/FXuJipeng
3years2016-11-15to2019-11-14A/FgroundfloorChenJunwei
3years2016-03-01to2019-02-28Seasidestallandwoodhouse
SanyaLedaFoodManagementCo.,
Ltd.
5years2018-01-01to2022-12-31SeasidelockerroomZhongZhengao
3years2016-12-01to2019-11-30Multi-functionalmeetingroom
SanyaHaolideInternationalTravel
AgencyCo.,Ltd.
5years2017-10-01to2022-09-30Gains/lossestotheCompanyfromprojectsthatreachedover10%intotalprofitoftheCompanyinreportingperiod√Applicable□Notapplicable
Nameoflessor
Nameoftheleasingparty
Leasing
assets
Leasing
assets
Leasestart
Leasetermina
Leasin
g
Basis
for
Theimpactof
Wheth
erbe
Associat
ion
2018
involved
intheamount(in
thousand
Yuan)
datetion
date
incom
e(in10thousa
ndYuan)
determiningtheleasin
gincome
leasingincomeon
thecompany
relatedtransactions
relation
TheCompany
MaMing(HainanHangpaiFoodCo.,Ltd.)
B/Frestaurantinfirstfloor
1,886
2016-01-01
2020-12-31
75.6
Contract
Increaseincome
NoN/ATheCompany
SanyaLedaFoodManagementCo.,Ltd.
Seasidestallandwoodhouse
2018-01-01
2022-12-31
Contract
Increaseincome
NoN/ATheCompany
ZhongZhengao
Seasidelockerroom
2016-12-01
2019-11-30
Contract
Increaseincome
NoN/A
TheCompany
SanyaHaolideInternationalTravelAgencyCo.,Ltd.
Multi-functionalmeetingroom
2017-10-01
2022-09-30
Contract
Increaseincome
NoN/A
2.MajorGuarantee
□Applicable√NotapplicableTheCompanyhadnoguaranteeinthereportingperiod.
(1)Guarantee
Nil
(2)Guaranteeoutsideagainsttheregulation
□Applicable√Notapplicable
3.Entrustotherstocashassetmanagement
(1)Trustfinancing
□Applicable√NotapplicableTheCompanyhadnotrustfinancinginthereportingperiod.
2018
(2)Entrustedloans
□Applicable√NotapplicableThecompanyhadnoentrustedloansinthereportingperiod.
4.Othermaterialcontracts
□Applicable√NotapplicableNoothermaterialcontractsfortheCompanyinreportingperiod
XVIII.Socialresponsibility
1.Socialresponsibilities
Nil
2.Executionofsocialresponsibilityoftargetedpovertyalleviation(1)Precisionpovertyalleviationprogram(2)Annualprecisionpovertyalleviation(3)AccuracyofpovertyalleviationNil(4)Follow-uptargetedpovertyalleviationplans
NilListedcompanyanditssubsidiarybelongstothekeypollutionenterpriselistedbyDepartmentofEnvironmentalProtectionNoTheCompanymainlyengagedinthehotelaccommodationandcateringserviceswhichhaslessgarbageandsmallsewagedischarge,andwehasstrictlywasteandsewagedisposalrulesaccordingtotherequirementofrelevantgovernment
XIX.Explanationonothersignificantevents
√Applicable□Notapplicable
1.TheLawyer’sLetterreceivedbytheCompany1:bypreliminaryaccountingfromSanyaPowerBureau,the10313373KwhelectricitywasunderstatedunderthenameofSouthChinaHotelfromJuly2006toApril2016.Foundmorein“NoticeofLawyer’sLetterreceivedbyHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.”(NoticeNo.:2016-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsitedated31May2016.TheCompanyiscommunicatedandnegotiateswithSanyaPowerBureauintheabovementionedeventwithoutnegotiationresultssofar.
2018
2.ThecompanyreceivedtheLawyer’sLetter:MaincontentsoftheLawyer’sLetter:thefinancialloandisputebetweenthecompany’sjointstockcompany,HainanDadonghaiTourismCenter(Holdings)Co.,Ltd.(hereinafterreferredtoas“DadonghaiHoldings”),anditsoriginalcreditor,ChinaConstructionBankSanyaBranch(hereinafterreferredtoas“CCBSanyaBranch”),itsnewcreditorChinaCindaAssetManagementCo.,Ltd.HainanBranch(hereinafterreferredtoas“HainanCinda”)currentlymakestherighttorecover,thetwodebtsincludetheprincipalof1.1millionYuanandinterestof5,598,300YuantemporarilycalculatedtoApril30,2018,totaling6,698,300Yuanandtheprincipalof5millionYuanandinterestof29,311,700YuantemporarilycalculatedtoApril30,2018,totaling34,311,700Yuan.IfDadonghaiHoldingsisincapableofhandlingtheliquidation,HainanCindawillclaimthatthecompanyshouldbejointlyandseverallyliablefortheabovedebtsofDadonghaiHoldings.Fordetails,pleaserefertotheAnnouncementofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.onReceivingtheLawyer’sLetterthatthecompanypublishedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cnonAugust10,2018(AnnouncementNo.:2018-052).Fortheabove-mentionedcaseofprincipalof5millionYuan,thecourtdismissedtheplaintiff’sclaiminthefirstinstance,buttheplaintiffHainanCindarefusedtoacceptthefirstinstancejudgmentandappealedtoHainanHigherPeople’sCourt,andthesecondinstancehasnotyetbeenheardasofthedisclosuredateofthisreport.Forthecaseofprincipalof1.1millionYuan,itisreportedthattheplaintiffhasappliedtothecourtforwithdrawalofthelawsuit.3.Significantlitigation:Theplaintiff,ChinaCindaAssetManagementCo.,Ltd.HainanBranch,suedthedefendants,HainanDadonghaiTourismCenter(Holdings)Co.,Ltd.andSanyaYueyaRealEstateDevelopmentCorporation,forafinancialloancontractdispute,appealingtoHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.torepaytheloanof5millionYuanandtheloaninterestof29,311,700YuantemporarilycalculatedtoApril30,2018,SanyaYueyaRealEstateDevelopmentCorporationassumesthejointandseveralliability,andthetwodefendantsbearlitigationcosts.Inthecourseofthelitigation,theplaintiffaddedthecompanyasaco-defendantandrequiredthecourttoorderthecompanytoassumejointandseveralliabilityfortheabovedebtsofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.Fordetails,pleaserefertotheAnnouncementontheSignificantLitigationthatthecompanypublishedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cnonNovember22,2018(AnnouncementNo.:2018-061).OnJanuary3,2019,thecompanyreceivedtheCivilJudgment(2018)No.Q02MC76fromtheIntermediatePeople’sCourtSanya.ThejudgmentdismissedtheclaimoftheplaintiffChinaCindaAssetManagementCo.,Ltd.HainanBranch,andthecaseacceptancefeeandpropertypreservationapplicationfeewerebornebyChinaCindaAssetManagementCo.,Ltd.HainanBranch.Fordetails,pleaserefertotheAnnouncementontheProgressofSignificantLitigationthatthecompanypublishedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cnonJanuary5,2019(AnnouncementNo.:2019-001).OnJanuary24,2019,thecompanyreceivedthePetitionforAppealfromtheplaintiffHainanCinda,theplaintiffHainanCindarefusedtoacceptthefirstinstancejudgmentandappealedtoHainanHigherPeople’sCourt,fordetails,pleaserefertotheAnnouncementontheProgressofSignificantLitigationthatthecompanypublishedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cnonJanuary31,2019(AnnouncementNo.:2019-003),andthesecondinstancehasnotyetbeenheardasofthedisclosuredateofthisreport.
XX.SignificanteventofsubsidiaryoftheCompany
□Applicable√Notapplicable
2018
SectionVI.ParticularsaboutChangesinSharesandShareholders
I.ChangesinShareCapital
1.ChangesinShareCapital
InShareBeforetheChangeIncrease/DecreaseintheChange(+,-)AftertheChange
Amount
Proporti
on
Newshare
sissue
d
Bonusshares
Capitalizat
ionofpubli
creser
ve
Others
Subtota
l
AmountProportion
I.Restrictedshares10,454,4002.87%0010,454,4002.87%1.State-ownedshares2.State-ownedcorporateshares
2,323,2000.64%002,323,2000.64%3.Otherdomesticshares
8,131,2002.23%8,131,2002.23%Including:Domesticlegalpersonshares
7,821,0002.15%79,20079,2007,900,2002.17%Domesticnaturalpersonshares
310,2000.09%-79,200-79,200231,0000.06%II.Unrestrictedshares353,645,60097.13%00353,645,60097.13%1.RMBcommonshares
265,645,60072.96%00265,645,60072.96%2.Domesticallylistedforeignshares
88,000,00024.17%0088,000,00024.17%III.Totalshares364,100,000100.00%00364,100,000100.00%
Reasonsforsharechanged√Applicable□Notapplicable
Andduringthefollow-upprocessofnon-tradablesharesreform,relevantsharesarereleasedinlinewithrelevantregulationsandsomeoftheshareholdersarerepayingtheadvancemoneyforanother,thusthesharestructureoftheCompanychangedinthePeriodwhiletotalsharesremainthesame.
Approvalofsharechanged□Applicable√NotapplicableOwnershiptransferofsharechanges
2018
□Applicable√NotapplicableImplementationprogressofthesharerepurchases□Applicable√NotapplicableImplementationprogressofthereductionofrepurchasessharesbycentralizedbidding□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod□Applicable√NotapplicableOtherinformationnecessarytodiscloseorneedtodisclosedunderrequirementfromsecurityregulators□Applicable√Notapplicable
2.Changesofrestrictedshares
√Applicable□Notapplicable
InShareShareholders’name
Numberof
sharesrestrictedatPeriod-begin
Numbe
rofsharesreleasedinthe
Year
Numberofnewsharesrestrictedinthe
Year
Numberof
sharesrestricted
atPeriod-end
Restriction
reasons
Releaseddate
ZhengYouxiong46,2000046,200
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
XiaoTiefeng132,0000-39,60092,400
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
SanyaRealEstateValuationAgent924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteHainanHongKong-MacaoInternationalTradeDevelopmentCo.,Ltd.
924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteHaikouDongfangUrbancreditCooperative
924,00000924,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteHainanBranchofBankofCommunicationsCo.,Ltd.
924,00000924,000LegalAfterremove
2018
commitmentinsharereform
restrictedprocedurescomplete
ShenyangJin’anIndustrialCorporation831,60000831,600
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
SanyaWangliBuildingMaterialsSales92,4000092,400
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteGuangzhouCompanyofHainanInternationalInvestmentCo.,Ltd.
660,00000660,000
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteSouthernIndustrialandTradingCorporation
660,00000660,000
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
GuangzhouDongzhanIndustrialCo.LTD924,00000924,000
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
SanyaZhongxingDevelopmentCo.,Ltd.2,541,000002,541,000
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
HainanDadonghaiTourismCo.739,20000739,200
Legalcommitmentinsharereform
Afterremoverestrictedprocedurescomplete
MaXiaoping132,0000-39,60092,400
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteYangpuTongrongInvestmentManagementConsultingCo.,Ltd.
0079,20079,200
Legalcommitmentinsharereform
AfterremoverestrictedprocedurescompleteTotal10,454,4000010,454,400----
2018
II.Securitiesissuanceandlisting
1.Securityoffering(withoutpreferredstock)inreportingPeriod
□Applicable√Notapplicable
2.Changesoftotalsharesandshareholdersstructureaswellasexplanationonchangesofassetsandliabilitystructure
□Applicable√Notapplicable
3.Existinginternalstaffshares
□Applicable√Notapplicable
III.ParticularsaboutshareholderandactualcontrolleroftheCompany
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
InShare
Totalcommonstockshareholdersinreportingperiod-end
44,014
Totalcommonstockshareholdersatendoflastmonthbeforeannualreportdisclosed
40,589
Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod
Totalpreferenceshareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed
Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders
FullnameofShareholders
Natureofshareholder
Proportion
ofshares
held
Numberofsharesheld
atperiod-end
Changesin
reportperiod
Amountofrestricted
shares
held
Amountofun-restricte
dshares
held
Numberofshare
pledged/frozenState
ofshare
Amount
LuoniushanCo.,Ltd.
Domesticnonstate-ownedcorporate
17.55
%
63,885,9800063,885,980
Pledged
63,885,980YangMeiqin
Domesticnatureperson
4.47%16,279,02816,279,028016,279,028
Pledged
15,910,000PanAnjie
Domesticnatureperson
4.01%14,593,59814,593,598014,593,598HainanYa’anResidencePropertyDomesticnon2.25%8,205,800008,205,800
2018
ServiceCo.,Ltd.state-owned
corporateChenJinlian
Domesticnature
person
2.13%7,766,4007,766,40007,766,400HGNHInternationalAssetManagementCo.,Ltd–customerdeposit
Foreigncorporate1.23%4,495,902-3,831,60004,495,902PanAiping
Domesticnature
person
1.13%4,110,7384,110,73804,110,738
Pledged
4,090,000ZhangFengxiu
Domesticnatureperson
1.07%3,901,372003,901,372ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit
Foreigncorporate0.99%3,622,300-1,100,00003,622,300FeishangGroupLimitedForeigncorporate0.86%3,122,8003,122,80003,122,800Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued
N/A
Explanationonassociatedrelationshiporaccordantactionamongtheaforesaidshareholders
Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd;YangMeiqin,PanAnjie,ChenJinlianandPanAipingarethepersonsactinginconcert;theCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Particularabouttoptenshareholderswithun-restrictsharesheldShareholders’name
Amountofun-restrictsharesheldatPeriod-end
TypeofsharesTypeAmountLuoniushanCo.,Ltd.63,885,980RMBcommonshare63,885,980YangMeiqin16,279,028Domesticallylistedforeignshare16,279,028PanAnjie14,593,598Domesticallylistedforeignshare14,593,598HainanYaAnJuPropertyServicesCo.,Ltd.8,205,800RMBcommonshare8,205,800ChenJinlian7,766,400Domesticallylistedforeignshare7,766,400HGNHInternationalAssetManagementCo.,Ltd–customerdeposit
4,495,902RMBcommonshare4,495,902PanAiping4,110,738Domesticallylistedforeignshare4,110,738ZhangFengxiu3,901,372RMBcommonshare3,901,372ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit
3,622,300RMBcommonshare3,622,300
2018
FeishangGroupLimited3,122,800Domesticallylistedforeignshare3,122,800Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders
Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.YangMeiqin,PanAnjie,ChenJinlianandPanAipingarethepersonsactinginconcert;theCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswithun-restrictsharesheld
N/AWhethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod□Yes√NoThetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.
2.ControllingshareholderoftheCompany
Natureofcontrollingshareholders:communitycollectiveholdingTypeofcontrollingshareholders:legalperson
Controllingshareholders
Legalperson/pers
oninchargeoftheunit
Dateoffoundation
Organization
code
Mainoperationbusiness
LuoniushanCo.,Ltd.XuZili
1987-12-1
Unifiedsocialcreditcode91460000284089747P
Plantingandbreedingindustry;initiatingindustry;realestatedevelopmentandmanagement;buildingdecorationworks;salesofagriculturalandanimalby-products,aquaticproductsandfeedprocessing(operatesonlyforbranchwithvoucher);machineryandautomobileandmotorcycleparts,electronicproducts,metalmaterials(exceptforthemonopoly),chemicalproducts(exceptforthemonopoly),householdappliances,modernofficesupplies,stationery,dailynecessities,buildingmaterials,salesofagriculturalandnativeproducts;thedevelopmentandconstructionoftradingmarket;leasingservices;warehousingservices;collectingandremittingwaterandelectricitycosts.Equityofotherdomestic/oversealistedcompanycontrolbycontrollingshareholderaswellasstock-jointinreportperiod
FoundmoredetailsinfulltextofAnnualReport2018ofLuoniushanCo.,Ltd.(Shortformofthestock:Luoniushan,Stockcode:000735)Changesofcontrollingshareholdersinreportingperiod□Applicable√NotapplicableTheCompanyhadnochangesofcontrollingshareholdersinreportingperiod
2018
3.ActualcontrolleroftheCompany
Natureofactualcontroller:domesticnaturalpersonTypeofactualcontroller:naturalperson
Nameofactualcontroller
Relationshipwiththe
actualcontroller
Nationality
Whetherobtainedrightofresidenceofother
countriesorregionsornotXuZiliXuZilihimselfP.R.CNo
Mainprofessionandtitle
XuZili,male,wasbornin1966,isaseniorengineerwithamasterdegree.HesuccessivelyservedasVicePresidentofHubeiHuangshiMineBureauMachinery;GeneralManagerofHaikouAnimalHusbandryMachineryEngineeringCo.,Ltd.;ChairmanofTianjinBaodiAgriculturalTechnologyCo.,Ltd.;healsoservedasstandingcommitteeoftheHaikou13
th
CPPCC;ViceChairmanandGeneralManageroftheCompanyfromAugust2006toNovember2011;servesasChairmanoftheCompanysinceNovember2011;nowhetakesasthe7
th
CPPCCmemberofHainanProvince.ListedcompanyinandoutofChinacontrolledinpastdecades
N/AChangesofactualcontrollerinreportingperiod□Applicable√NotapplicableNochangesofactualcontrollersfortheCompanyinreportingperiod.PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow:
2018
ActualcontrollercontrollingtheCompanybyentrustorotherassetsmanagement□Applicable√Notapplicable
4.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
□Applicable√Notapplicable
5.Limitationandreducingtheholdingsofsharesofcontrollingshareholders,actualcontrollers,
restructuringsideandothercommitmentsubjects
□Applicable√Notapplicable
2018
SectionVII.PreferredStock
□Applicable√NotapplicableTheCompanyhadnopreferredstockinthePeriod.
2018
SectionVIII.ParticularsaboutDirectors,Supervisors,Senior
ExecutivesandEmployees
I.Changesofsharesheldbydirectors,supervisorsandseniorexecutives
Name
Title
Working
status
SexAge
Startdated
ofoffice
term
Enddateofofficeterm
Sharesheld
atperiod-beg
in(Shar
e)
Amountofsharesincreasedin
thisperiod(Share
)
Amountofsharesdecreasedin
thisperiod(Share
)
Othe
rchanges(shar
e)
Sharesheld
atperiod-end(Shar
e)LiYuanbin
Chairman,GeneralManager
Post-leaving
M682001-10-252018-02-2700000ZhaoMan
IndependentDirector
Post-leaving
F662014-05-222018-02-2700000LengMingquan
IndependentDirector
Post-leaving
M632014-05-222018-02-2700000LiuJuntaoDirector
Post-leaving
M502002-06-162018-02-2700000WangJialing
Supervisor
Post-leaving
F522011-06-162018-02-2700000Yuan
Xiaoping
Chairman/GeneralManager
Currentlyinoffice
M552018-02-282021-02-2700000TangGuoping
IndependentDirector
Currentlyinoffice
M542014-05-222021-02-2700000WuTao
IndependentDirector
Currentlyinoffice
M402018-02-282021-02-2700000TangShanrong
Director
Currentlyinoffice
M392018-02-282021-02-2700000HuangWencai
Chairmanofsupervisorycommittee
Currentlyinoffice
M492002-06-162021-02-2700000ZhangXuliSupervisor
Currentlyinoffice
F352018-02-282021-02-2700000
2018
ChenGangSupervisor
Currentlyinoffice
M522016-07-292021-02-2700000FuZongren
Personinchargeoffinance
Currentlyinoffice
M512015-04-152021-02-2700000
DingQin
DeputyGeneralManager
Currentlyinoffice
M472018-8-102021-02-2700000WangHongjuan
Director/Vicepresident/secretaryoftheBoard
Currentlyinoffice
F422008-04-272021-02-2700000Total------------00000
II.Changesofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
NameTitleTypeDateReasonsLiYuanbin
Chairman/GeneralManager
Post-leavingforoffice-termexpired2018-02-27Office-termexpiredZhaoMan
IndependentDirector
Post-leavingforoffice-termexpired2018-02-27Office-termexpiredLengMingquan
IndependentDirector
Post-leavingforoffice-termexpired2018-02-27Office-termexpiredLiuJuntaoDirectorPost-leavingforoffice-termexpired2018-02-27Office-termexpiredWangJialingSupervisorPost-leavingforoffice-termexpired2018-02-27Office-termexpired
III.Post-holding
Professionalbackground,majorworkingexperienceandpresentmainresponsibilitiesofdirectors,supervisorsandseniorexecutiveintheCompany
DirectorMr.YuanXiaoping,wasborninJuly1963,Hannationality,holdsthecollegedegree,theChineseCPA,senioraccountant,theauditorandheisthememberofcommunistpartyofChina.Hewasappointedasthesystemaccountinganddeputydirectorinthesupply&marketingcooperativeofNanchongSichuan;hetookastheprojectmanagerofHainanCongxinAccountingFirmandassistantofGMandCFOinLuoniushanCompany.Healsoservedasthedirector,CFO,DeputyGeneralManager,theactingGM,deputychairmanandsecretaryofthepartycommitteeinHaikouWaterGroupCo.,Ltd.aswellasthedirectorofHainanYedaoCo.,Ltd.from2006to2017.Mr.YuanservesasChainmanandGMoftheCompanysinceMarch2018.
Mr.TangShanrong,wasborninNovember1979,holdstheMasterdegree,aseniorengineer.Hewasappointed
2018
assecretaryofthepresidentinLuoniushanCo.,Ltd.,theGeneralManagerofHainanLuoniushanEnvironmentProtectionCo.,Ltd,theChairmanofHainanLuoniushanAgriculturalSci-TechCo.,Ltd.,theassistantpresidentandGMoftheadministrationdepartmentinLuoniushanCo.,Ltd.Mr.TangservesasvicepresidentofLuoniushanCo.,Ltd.sinceJune2016,atthesametime,heisthememberofstandingcommitteeofthe14thCPPCCofHaikou,memberofthestandingcommitteeofthe6thHainanYouthFederationanddirectorofHaikouYouthEntrepreneurship&employmentpromotionAssociation.HeservesasdirectoroftheCompanysinceMarch2018.Ms.WangHongjuan,wasborninFeb.1976,Hannationality,UndergraduateDegree,anattorney;sheservedasrepresentativeofsecuritiesaffairsoftheCompanysince2004andservesassecretaryoftheBoardsince2008anddeputyGMoftheCompanysince2014.Ms.WangservesasDirectoroftheCompanysince2016.IndependentDirectorMr.TangGuoping,wasborninAugust1964,Hannationality,hewasgraduatedfromZhongnanUniversityofEconomicsandLaw,holdsthedoctoraldegreeandheistheaccountingprofessor,doctoralsupervisorandChineseCPA.Hewasawardedasthe“MasterofAccounting”bytheMinistryofFinance,the“OutstandingYoungTeacherFundingProgram”oftheMinistryofEducation,thefamousteacherofHubeiProvince,theyoungandmiddle-agedexpertswithoutstandingcontributionsinHubeiProvince,theacademicleadersofthecross-centurydisciplineoftheMinistryofFinance,wonthesecondprizeoftheSecondHumanitiesandSocialSciencesResearchAchievementAwardofCollegesandUniversitiesissuedbytheMinistryofEducation.Thesecondprize,andwonthethirdprizeofoutstandingteachingachievementsissuedbytheHubeiProvincialPeople’sGovernmentandotherawardsandhonors.HeusedtobethedeputydeanoftheAccountingSchool,thedirectoroftheAccountingMasterEducationCenter,theexecutivevicepresidentoftheGraduateSchool,andthedeanoftheMBACollegeofZhongnanUniversityofEconomicsandLaw.HeisalsotheheadofthesecondrevisionresearchgroupfortheAccountingLawoftheMinistryofFinance,amemberofthefirstsessionoftheASBEAdvisoryCommitteeoftheMinistryofFinance,thedirectorandseniormemberoftheAccountingSocietyofChina,andthevicechairmanoftheEnvironmentalAccountingProfessionalCommitteeoftheAccountingSocietyofChina.HeisthevicechairmanofChinaAssociationofChiefFinancialOfficersofHubeiProvinceandservesasanindependentdirectorofMyhomeRealEstate,LensTechnologyandShenzhuangzong.In2012,heobtainedtheindependentdirectorqualificationcertificateandhasbeenanindependentdirectorofthecompanysinceMay2014.
Mr.WuTao,borninSeptember1978,holdsamaster’sdegree.Heusedtobetheseniormanager,businessdirectorandinternalauditcommitteeofGuojinSecuritiesInvestmentBankingDepartment.From2011to2014,heservedasthedeputygeneralmanagerandsecretaryoftheboardofdirectorsofShanghaiRENLEScience&TechnologyCo.,Ltd.Since2014,hehasbeenservingasthevicechairmanandvicepresidentofShanghaiHuantaoInvestmentManagementCo.,Ltd.In2017,heobtainedanindependentdirectorqualificationcertificate.SinceMarch2018,hehasbeenservingasanindependentdirectorofthecompany.
2018
SupervisorMr.HuangWencai:wasborninJan.1969,undergraduatedegree,Mr.HuangonceheldthepositionofvicedirectorofHaikoumeatassociationfactory,directorofHaikoufoodCo.Ltd.andassistantofgeneralmanagerofHaikoufoodCo.Ltd.,deputyGMofHaikouLuoniushanFoodProcessingCo.,Ltd.andcurrentlyheldthepostofdeputyGMofHainanLuoniushanMeatCo.,Ltd.;heheldthepositionofChairmanofSupervisoryCommitteeoftheCompanysince2002.
Ms.ZhangXuli,borninNovember1983,holdsamaster’sdegree,isacertifiedmanagementconsultantandanintermediateeconomist.From2009to2015,sheservedasaseniorconsultantandprojectmanagerofBeijingIndustrialDevelopmentConsultingCo.,Ltd.SinceDecember2015,shehasbeenservingastheinvestmentdirectorandpersoninchargeofLuoniushan(Beijing)InvestmentCo.,Ltd.SinceMarch2018,shehasbeenservingasashareholdersupervisorofthecompany.Mr.ChenGang,wasborninSeptember1966,theHannationality,ajunioraccountant.HeworkedasaccountantinHainanSanyaPhoenixCo.,Ltd.fromFebruary1988toJune1989,workedaschiefaccountantinSanyaHardwareElectricalMallfromJuly1989toSeptember1992,andservesascostaccounting,chiefaccountant,deputyGMandGMofthefinancialdept.intheCompanysinceOctober1992.HeservesasstaffsupervisoroftheCompanysinceAugust2016.SeniorexecutivesMr.DingQin,borninMay1971,Hannationality,holdsamaster’sdegree,studiedinCentralSouthUniversityfrom1988to1992andgraduatedasabachelorofindustrialtrade,andstudiedandgraduatedasapostgraduatefromHainanUniversityfrom2005to2008,majoringinagriculturalextension.From1998to2006,heservedasthegeneralmanageratHainanHuacuiPalmGardenCo.,Ltd.;from2010to2013,heservedastheexecutivegeneralmanagerofthefixedincomedepartmentofHeaven-SentCapitalManagementGroupCo.,Ltd(Shanghai);from2013to2017,hewasappointedasthegeneralmanagerofWuhanEastLakeInnovationInvestmentManagementCo.,Ltd.;andheservesastheassistantgeneralmanagerofthecompanysinceApril2018.SinceAugust2018,heservesasthedeputygeneralmanagerofthecompany.Mr.FuZongren,wasborninFebruary1967,intermediateaccountant,servedasfinancialmanageroftheCompany,financialcontrollerofSanyaYalongBayUniversalResort,andgeneralmanagerofFinancialManagementCenterofHainanSunupGroup,andservesasthefinancialadministratoroftheCompanysinceApril2015.
Post-holdinginshareholder’sunit√Applicable□Notapplicable
2018
NameShareholder’sunit
Positioninshareholder’s
unit
Startdatedofoffice
term
Enddateofoffice
term
Whetherobtainedremuneration
fromshareholder’sunit
(Y/N)TangShanrongLuoniushanCo.,Ltd.Vicepresident2016-06-012019-5-31YPost-holdinginotherunit□Applicable√NotapplicablePunishmentofsecuritiesregulatoryauthorityinrecentthreeyearstothecompany’scurrentandoutgoingdirectors,supervisorsandseniormanagementduringthereportingperiod□Applicable√Notapplicable
IV.Remunerationfordirectors,supervisorsandseniorexecutives
Decision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutives
1.PursuanttotheCompany'sArticlesofAssociation,thepayofdirectors,supervisorpersonnelareapprovedbygeneralmeetingafterthereviewoftheboardofdirectorsandboardofsupervisorsrespectively;thepayofseniormanagementisapprovedbytheboard.Directors,supervisorsandseniormanagersgettheirpaymentcorrespondingtotheirpostprovidedbythegeneralmeetingandtheboardmeeting.2.Inlinewithperformanceoftheirduties,directors,independentdirectorsandsupervisorsshouldreceivethereimbursementfromtheCompanyontravelexpenseandArticlesofAssociationimplementationexpense.
Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In10thousandYuan
NameTitle
Sex
Age
Post-holding
status
TotalremunerationobtainedfromtheCompany(before
taxes)
WhetherobtainedremunerationfromrelatedpartyoftheCompany(Y/N)YuanXiaopingChairman/GeneralManagerM55
Currentlyinoffice
43NTangShanrongDirectorM39
Currentlyinoffice
0NWangHongjuan
Director/Vicepresident/secretaryoftheBoard
F42
Currentlyinoffice
37.45NTangGuopingIndependentDirectorM54
Currentlyinoffice
0.8N
2018
WuTaoIndependentDirectorM40
Currentlyinoffice
0NHuangWencai
Chairmanofsupervisorycommittee
M49
Currentlyinoffice
0.4NZhangXuliSupervisorF35
Currentlyinoffice
0NChenGangSupervisorM52
Currentlyinoffice
7.6NFuZongrenPersoninchargeoffinanceM51
Currentlyinoffice
31.25NDingQinVicepresidentM47
Currentlyinoffice
23.4NLiYuanbinChairman/GeneralManagerM68Post-leaving15.18NZhaoManIndependentDirectorF66Post-leaving0.8NLengMingquanIndependentDirectorM63Post-leaving0.8NLiuJuntaoDirectorM50Post-leaving0.8NWangJialingSupervisorF52Post-leaving1.54NTotal--------163.02--Delegatedequityincentivefordirectors,supervisorsandseniorexecutivesinreportingperiod□Applicable√Notapplicable
V.Particularsofworkforce
1.Numberofstaff,professionalcompositionandeducationbackground
Thenumberofcurrentemployeesofparentcompany(people)143Thenumberofcurrentemployeesofmainsubsidiaries(people)0Totalnumberofcurrentemployees(people)143Thetotalnumberofcurrentemployeestoreceivepay(people)143Thetotalnumberofretiredstaffandworkersthattheparentcompanyandmainsubsidiariesneedtobearthecosts(people)
ProfessionalcompositionCategoryofprofessionalcompositionNumberofprofessionalcomposition(people)Productionstaff
Salesman
Technicalstaff22Financialstaff12
2018
Administrativestaff25Total143
EducationbackgroundCategoryofeducationNumber(people)Graduatestudent1Undergraduate8Juniorcollegeabove30Highshoolandbelow104Total143
2.RemunerationpolicyThecompensationofcompany’semployeesincludeswages,bonuses,andbenefits,whichtaketheprincipleofdistributingaccordingtothework,givingprioritytoefficiencyandtakingcountofequitysimultaneously,wageincreaseadaptingtothecompany’sbusinessdevelopmentandbenefitsimprovement,optimizingthelaborallocation,paylevelagreeingwiththelocalaverageinthesameindustry.Setoradjustthewagestandardsinaccordancewiththejobvaluationresult,thelocalpaylevelinthesameindustry,thecompany’sannualoperationtargetandoperationalbudget,andtheindividualperformance.3.TrainingprogramsStrengthenthetrainingofseniorexecutivesbycombiningthevoluntaryorganizationoftrainingandtheexternaltraining,widenthethought,andenhancethedecision-makingabilityandmodernoperationandmanagementability.Strengthenthetrainingofmiddlemanagement,improvetheoverallqualityofmanagers,improvetheknowledgestructure,andenhancethecomprehensivemanagementcapability,innovationcapabilityandimplementationcapability.Strengthenthetrainingofprofessionalandtechnicalpersonnel,improvethetheoreticalleveloftechnologyandprofessionalskills,andenhancethetechnologicalinnovation,technicaltransformationcapability.Strengthenthetechnicaltrainingofhotelservicestaff,constantlyimprovetheprofessionalskillsandserviceskillsofservicestaff,andenhancetheabilitytostrictlyfulfilltheirresponsibilities.Strengthentheculturaltraining,improvetheculturallevelofpersonnelatalllevels,andenhancetheoverallculturalqualityofthestaffteam.4.Laboroutsourcing
□Applicable√Notapplicable
2018
SectionIX.CorporateGovernance
I.CorporategovernanceoftheCompany
Duringreportingperiod,theCompanyfurthercompletedgovernancestructureandsystem,perfectedinternalcontrolmechanismandsystemconstructionandnormalizedcorporateoperation,strictlyinaccordancewithrelativerulesandregulationsoftheCompanyLaw,SecuritiesLawandListingRulesofShenzhenStockExchange.Tillendofreportingperiod,governancestructureoftheCompanyisbasicallyinlinewithrequirementoftheGovernanceRulesofListedCompany.1.Duringthereportingperiod,theCompany’sgeneralmeeting,boardmeetingandsupervisorsmeetingexercisedthedecisionrights,executionrightsandsupervisionrightsrespectivelywithclearresponsibilities,mutualrestrict,operationspecificationandeffectiveoperation.Theproceduresofmeetingholding,proposalreview,anddecision-makinginthesethreemeetingswereincompliancewithrelevantprovisions.Theboardmeetingcomprisesstrategyanddevelopmentcommittee,auditcommittee,nominationcommittee,remunerationandappraisalcommittee,whocarryoutsmoothlytheirdutiesaccordinglytotheirworkingconditions,providingastrongsupportfortheboardmeeting’smajorscientificmanagementdecision.2.InstrictaccordancewiththerequirementsofRulesGoverningtheListingofStock,directorsperformeditsdutieswithhonest,trust,diligenceandindependence,protectedthelegitimaterightsandinterestsofminorityshareholderswithloyaltytotheirinterests;Supervisorseffectivelysupervisedandcheckedindependentdirectors,seniormanagementandtheirfinancialsituations.
IsthereanydifferencebetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC?□Yes√NoTherearenodifferencesbetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC.
II.IndependencyoftheCompanyrelativetocontrollingshareholders’inaspectofbusinesses,personnel,assets,organizationandfinance
StatementofFiveIndependencesbetweentheCompanyandtheControllingShareholders1.BusinessIndependence:theCompanybusinessoperatesindependentlywithintegratedstructure,andisfreefromhorizontalcompetitionwithcontrollingshareholders.ThecontrollingshareholdersdonotintervenetheCompany’soperationeitherdirectlyorindirectly.2.PersonnelIndependence,theCompanyisindependentoncontrollingshareholdersintheaspectsoflabor,personnelandRemunerationmanagement.3.AssetsIndependence:theCompanyhasproprietaryrightsandcontrolrightsonitsassets.Controllingshareholdersoccupynoassetsorfundsofthelistedcompany.4.InstitutionIndependence:thecompany'sboardofdirectorsandboardofsupervisors,managersandother
2018
internalinstitutionsoperateindependentlyandmanageindependentlywithintegratedstructures.5.FinancialIndependence:theCompanyhasanindependentfinancialsector,andsetsupindependentaccountingsystemandfinancialmanagementsystem.TheCompanyopensindependentbankaccountsandpayindependenttaxestolawswithoutcontrollingshareholders’intervention.
III.Horizontalcompetition
□Applicable√Notapplicable
IV.Inthereportperiod,theCompanyheldannualshareholders’generalmeetingandextraordinaryshareholders’generalmeeting
1.AnnualShareholders’GeneralMeetinginthereportperiod
Sessionof
meeting
Type
Ratioofinvestorparticipati
on
Date
Dateofdisclosure
IndexofdisclosureAnnualShareholdersGeneralMeeting
2017
AGM37.76%2018-02-272018-02-28
The“ResolutionNoticeofAnnualShareholders’GeneralMeetingof2017”(No.:2018-016)publishedonSecuritiesTimes,HongKongCommercialDailyand
Juchaowebsite(http://www.cninfo.com.cn)dated28
Feb.2018
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
V.Responsibilityperformanceofindependentdirectors
1.TheattendingofindependentdirectorstoBoardmeetingsandgeneralmeeting
TheattendingofindependentdirectorstoBoardMeeting&generalmeeting
Indepen
dentDirector
Timesof
Boardmeetingsupposedtoattendinthe
report
period
TimesofPresence
Timesof
attendingtheBoardMeetingby
communication
Timesofentrustedpresence
TimesofAbsence
AbsenttheMeetingforthesecondtimein
arow(Y/N)
Timesofattendthe
generalmeetingZhaoMan
11000N0
2018
LengMingquan
11000N0TangGuoping
72500N1WuTao61500N1ExplanationonabsenttheboardmeetingforthesecondtimeinarowNil
2.Objectionforrelevanteventsfromindependentdirectors
IndependentdirectorscomeupwithobjectionaboutCompany’srelevantmatters□Yes√NoNoobjectionsarisingfromtheindependentdirectorsonrelevanteventsoftheCompanyduringthePeriod
3.Otherexplanationaboutresponsibilityperformanceofindependentdirectors
Theopinionsfromindependentdirectorshavebeenadopted√Yes□NoExplanationonadvicethataccepted/notacceptedfromindependentdirectors
ItissuggestedthattheCompanyshouldstrengthentheintroductionofforeigncapital,introduceexcellentassetsanddiversifythecurrentsinglebusinessportfolioinadditiontofocusingonitsmajoroperations.
VI.Dutyperformanceofthespecialcommitteesundertheboardduringthereportingperiod
Theboardmeetingcomprisesfourspecialcommittees,whocarryoutsmoothlytheirdutiesaccordinglytotheirworkingconditions,providingastrongsupportfortheboardmeeting’smajorscientificmanagementdecision.Eachspecialcommitteeperformedtheirdutiesasfollows:
1.AuditCommitteeDuringthereportingperiod,theauditcommitteeauditedthefirstquarterandthethreequarterfinancialreportof2018,andthe2018semi-annualfinancialreport.Intheprocessofannualfinancialreportauditing2018process,auditcommitteemembersworkedinaccordancewiththerelevantrequirementsbyfaithfullyperformingauditcommittee’sresponsibilities:
Beforetheentranceofannualexaminationcertifiedpublicaccountants,theauditcommitteememberslistenedtothemanagementstatementsoftheCompany'soperatingconditionin2018andthefinancialstatusaswellasthereportonannualfinancialreportauditworkarrangementof2018,communicatedwithannualexaminationcertifiedpublicaccountantsaboutissuessuchaspersonnelstructureoftheworkinggroup,auditplan,riskjudgment,annualauditfocusandsoon;InearlyJanuary2018,inannualreportauditprocess,auditcommitteememberslistenedtotheworkreportbyannualexaminationcertifiedpublicaccountantsandthecompanymanagement;InearlyFebruary2018,auditcommitteemembersreviewedsubmittedfinancialandaccountingreports.ThefinancialandaccountingreportsauditedwasformattedstrictlytoAccountingStandardsforBusiness
2018
EnterprisesandAccountingSystemforBusinessEnterprises,andthisreportfairlyreflectedtheCompany’sassets,liabilities,rightsandinterestsandoperatingsituationwithoutsignificanterrorsandomissions.Theannualauditreportof2018byauditinstitutionswasagreedtobesubmittedtotheboard.TheCompany'sboardofdirectorsregardedthattheexternalauditorsBDOChinaShuLunPanCertifiedPublicAccountantsLLPfaithfullyperformedtheauditresponsibility,andsuggestedtorenewastheCompany’sannualfinancialauditof2019.2.RemunerationcommitteeDuringthereportingperiod,theremunerationcommitteemembersoftheCompanyboardcarriedouttheirdutiesstrictlytorelevantregulations,inspectedremunerationpoliciesandprogramsfordirectors,supervisorsandseniormanagers,andappraisedtheperformanceofdirectors,supervisorsandseniormanagementaccordingtoseniormanagerremunerationappraisal.Bytheendofthereportingperiod,theCompanyhasnotimplementedoptionscheme.3.StrategycommitteeDuringthereportingperiod,theboardstrategycommitteeputforwardvaluableopinionsondecision-makingsuchasdevelopmentplanningandinvestmentdecisions,thusenhancedthescientificdecision-makingandcorecompetitivenessoftheCompany,improvedtheCompany’sefficiencyofmajorinvestmentdecisionsanddecisionquality.4.NominationcommitteeDuringthereportingperiod,inviewoftheexpirationofthetermofthedirectorsoftheeighthsessionoftheboardofdirectors,nominatedbythecompany’slargestshareholderLuoniushanCo.,Ltd.anddeliberatedbytheeighthsessionoftheboardofdirectors,theboardnominationcommitteereviewedandnominatedMr.TangGuoping,Mr.WuTao,Mr.YuanXiaoping,Mr.TangShanrongandMs.WangHongjuanascandidatesfortheninthsessionoftheboardofdirectorsofthecompanyforatermofthreeyears.Amongthem,Mr.TangGuopingandMr.WuTaowerecandidatesforindependentdirectorsoftheninthsessionoftheboardofdirectorsofthecompanyandwereapprovedbythecompany’s2017annualgeneralmeetingofshareholders.Inviewoftheexpirationofthetermofthecompany’sgeneralmanagerandotherseniorexecutives,thenominationcommitteereviewedandagreedtoengageMr.YuanXiaopingasthegeneralmanagerofthecompanyforatermofthreeyears.Mr.FuZongrenwasreappointedasthecompany’sfinancialcontrollerforaperiodofthreeyears,andMs.WangHongjuanwasreappointedasthecompany’sdeputygeneralmanagerandsecretaryoftheboardofdirectorsandsecuritiesaffairsrepresentativeforaperiodofthreeyears,whichwasreviewedandapprovedbythecompany’sfirstextraordinarymeetingoftheninthboardofdirectors.Inaccordancewiththecompany’sdevelopmentneeds,thenominationcommitteereviewedandagreedtoengageDingQinasthedeputygeneralmanagerofthecompany,andtheemploymentperiodwasconsistentwiththetermoftheninthboardofdirectorsofthecompany,whichwasalsoreviewedandapprovedatthesecondmeetingoftheninthboardofdirectorsofthecompany.
VII.WorksfromSupervisoryCommittee
TheCompanyhasrisksinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee□Yes√NoSupervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiod
2018
VIII.Examinationandincentivesofseniormanagement
1.PursuanttoPeople-orientedPrinciple,theCompanyemploysoutstandingpersonsinlong-term,andadmitsthebestcandidatesonthepremiseofopenness,fairness,justice.ThosewhopasstrialcomprehensiveappraisalandbenominatedbygeneralmanagersandapprovedbytheboardmeetingcanbeemployedasseniormanagementoftheCompany.2.TheCompanyadoptsaclearappraisalsysteminwhichassessmentmethodsaremadetotheperformanceanddutyfulfillmentofseniormanagement.Assessmentsarecarriedoutmonthlyandannuallybythesamelevelandhigherlevelandtheresultsaretakenasfactorsforpostliftandrewardsandpunishmentofseniormanagement.3.Thecompanysetsupeffectiveincentivemechanism,includingmaterialincentivesandspiritualincentives.Theclearrewardsandpunishments,balancebetweenremunerationandworkperformance,survivaloffittestencourageseniormanagementtomakeconstantlyprogressandimprovetheirowncomprehensiveabilitywhichinturnhelptheCompanydeveloprapidly.
IX.InternalControl
1.DetailsofmajordefectsinICappraisalreportthatfoundinreportingperiod
□Yes√No
2.Self-appraisalReportofInternalControl
Disclosuredateoffullinternalcontrolappraisalreport
2019-02-26Disclosureindexoffullinternalcontrolappraisalreport
RelevantinformationfoundinAppraisalReportofInternalControlfor2018publishedonJuchao
Websitedated26February2019Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements
100.00%
Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements
100.00%
DefectsEvaluationStandardsCategoryFinancialReportsNon-financialReportsQualitativecriteria
Majordeficiencies:fraudofdirectors,supervisorsandseniormanagement;materialmisstatementsarefoundincurrentfinancialstatementsbythecertifiedpublicaccountant
Majordeficiencies:thecompanyislackofdemocraticdecision-makingprocess;thecompany’sdecision-makingprocessleadstomajormistakes;thecompanyviolatesthestate
2018
butarenotfoundintheprocessofinternalcontrol;It’sfoundthatthesignificantinternalcontroldeficienciesthathadbeendiscoveredandreportedtothemanagementwerenotyetcorrectedwithinthestipulatedtime;theauditcommittee’ssupervisionhasnoeffectonthecompany’sexternalfinancialreportsandinternalcontroloverfinancialreporting.Significantdeficiencies:theselectionandapplicationofaccountingpoliciesarenotinaccordancewiththeGAAP;anti-fraudprogramandcontrolmeasureshavenotbeenestablished;theaccountingtreatmentofunusualorspecialtransactionshasnoappropriatecontrolmechanismsorhavenotimplementedthecontrolmechanismsandhasnoappropriatecompensatorycontrols;thecontroltoperiod-endfinancialreportingprocesshasoneormoredeficienciesandcannotreasonablyensurethattheorganizationalfinancialstatementsaretrueandaccurate.Generaldeficiencies:deficienciesthatoutoftherecognitionofmajorandsignificantdeficienciesshouldberecognizedasgeneraldeficiencies
lawsandregulationsandisseverelypunished;seriousbraindrainofthecompany’sseniormanagementpersonnelandseniortechnicalstaff;frequentnegativenewsonmediacoveringawiderangeandthenegativeeffectsarenoteliminated;thecompany’ssignificantbusinessislackofsystemcontrolorsystematic-nessisinvalid;themajordeficienciesandsignificantdeficienciesofthecompany’sinternalcontrolshavenotbeenrectifiedandreformed;thecompanyispunishedbyCSRCorwarnedbystockexchange.Significantdeficiencies:thecompanyhasdemocraticdecision-makingprocesswhichisnotcomplete;thecompany’sdecision-makingprocessleadstogeneralmistakes;thecompanyviolatestheenterpriseinternalregulationswhichcauseslosses;seriousbraindrainofthecompany’sbusinesspersonnelinkeypositions;negativenewsonmediaaffectinglocalareas;thecompany’ssignificantbusinesssystemhasdeficiencies;thesignificantdeficienciesandgeneraldeficienciesofthecompany’sinternalcontrolshavenotbeenrectifiedandreformedGeneraldeficiencies:deficienciesthatoutoftherecognitionofmajorandsignificantdeficienciesshouldberecognizedasgeneraldeficiencies
Quantitativestandard
Majordeficiencies:Afterconsideringthecompensatingcontrolmeasuresandtheactualdeviationrate,theoverallimpactlevelofthedeficiencyishigherthanthesignificancelevel(10%ofthetotalprofit).Significantdeficiencies:Afterconsideringthecompensatingcontrolmeasuresandtheactualdeviationrate,theoverallimpactlevelofthedeficiencyislowerthanthesignificancelevel(10%ofthetotalprofit),buthigherthanthegeneralitylevel(5%ofthetotalprofit).Generaldeficiencies:Afterconsideringthe
Majordeficiencies:directpropertylossismorethan100000Yuan;Significantdeficiencies:directpropertyloss
rangedfrom1Yuanto100000Yuan;Generaldeficiencies:directpropertylossislowerthan10000Yuan
2018
compensatingcontrolmeasuresandtheactualdeviationrate,theoverallimpactlevelofthedeficiencyislowerthanthegeneralitylevel(5%ofthetotalprofit).
Amountofsignificantdefectsinfinancialreports
Amountofsignificantdefectsinnon-financialreports
Amountofimportantdefectsinfinancialreports
Amountofimportantdefectsinnon-financialreports
X.Auditingreportofinternalcontrol
√Applicable□Notapplicable
DeliberationsinInternalControlAuditReport
2018
ToAllShareholdersofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.:
InaccordancewithAuditGuidelineforEnterpriseInternalControlandrelevantrequirementofthepracticingstandardsofChineseCertifiedPublicAccountant,weauditedtheeffective-nessofthefinancialreport’sinternalcontrolforHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.(theCompany)dated31December2018.I.AsforresponsibilityofinternalcontrolTheCompanyestablishedandimprovedandimplementedinternalcontroleffectivelypursuittoBasicNormsofEnterprisesInternalControl,SupportingGuidelinesforEnterpriseInternalControlandEvaluationGuildlinesforEnterprisesInternalControl,andboardofthedirectorisresponsibleforevaluatingitseffectiveness.II.Auditor’sresponsibilitiesOurresponsibilityistoexpressanopinionontheeffectivenessofinternalcontrolforthefinancialstatementsbasedonouraudit.Anddisclosedmajordeficitsofnotedinternalcontrolwithoutfinancialstatementconcerned.III.InherentfeatureofinternalcontrolTheinternalcontrolhasaninherentlimitation,andexistmistakesthatcannotpreventandbeingdiscovered.Moreover,theinternalcontrolmightbeinappropriateduetothechangesofconditions,orfailstofollowthecontrollingpoliciesandprocedures,tospeculatefutureeffectivenessoftheinternalcontrolinlinewiththeauditingresulthasacertainrisks.IV.Auditingopinion:inouropinionTheCompany,inlinewithBasicNormsofEnterprisesInternalControlandrelevantregulations,showsaneffectivenessinternalcontroloffinancialreportinallmajoraspectsdated31December2018.
BDOCHINAShuLunPanCPALLPCertifiedPublicAccountantofChina:
CertifiedPublicAccountantofChina:
Shanghai·China24February2019Disclosuredetailsofauditreportofinternalcontrol
DisclosedDisclosuredateofauditreportofinternalcontrol(full-text)
2019-02-26Indexofauditreportofinternalcontrol(full-text)
RelevantinformationfoundinSelf-appraisalReportofInternalControlfor2017
publishedonJuchaoWebsitedated26February2019.OpiniontypeofauditingreportofIC
Standardunqualifiedwhetherthenon-financialreporthadmajordefects
NoCarriedoutmodifiedopinionforinternalcontrolauditreportfromCPA□Yes√NoTheinternalcontrolauditreport,issuedbyCPA,hasconcertedopinionwithself-evaluationreport,issuedfromtheBoard√Yes□No
2018
SectionX.Corporationbonds
WhetherornottheCompanypublicofferingcorporationbondsinstockexchange,whichundueorwithoutpaymentinfullatmaturityontheapprovaldateforannualreportdisclosedNo
SectionXI.FinancialReport
I.Auditreport
| Type | of | audit | opinion | Standard | unqualified | opinion |
Signingdateofauditreport2019-02-24NameofauditinstituteBDOCHINAShuLunPanCertifiedPublicAccountantsLLPDocumentserialofauditreport
PCPAR[2019]No.ZA10112NameoftheCPALiJinhua,ZhuMeirong
Auditor’sReport
ToallshareholdersofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,I.OpinionWehaveauditedthefinancialstatementsofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisetheconsolidatedandparentCompany’sbalancesheetof31December2018andprofitstatement,andcashflowstatement,andstatementonchangesofshareholders’equityfortheyearended,andnotestothefinancialstatementsfortheyearended.Inouropinion,theattachedfinancialstatementsarepreparedinaccordancewiththeprovisionsoftheAccountingStandingsforEnterprisesinallmajorrespects,itfairlyreflectstheconsolidateandparentcompany’sfinancialstatusasof31December2018underthenameofDadonghaiwellwetheoperationresultsandcashflowfortheyearof2018
II.BasisforOurOpinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCPAandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Thekeyauditmattersthatweidentifiedintheauditareasfollows:
KeyauditmattesCountermeasuresRecognitionofroomincome
TheCompanyhadoperatingincomeofRMB29,515,600in2018,ofwhichroomincomewasRMB22,731,300,accountingfor77.01%ofoperatingincome.Asincomeisakeyperformanceindicator
DadonghaiHoldings,whichcausesintrinsicrisksthattheincomemayberecognizedinanincorrectperiodorbemanipulatedtoachievethetargetorexpectedlevel,weidentifytheroomrevenue
ofof
DadonghaiHoldingsasakeyauditmatter.
Forroomsalesrevenue,weunderstoodandevaluatedthemanagement'sdesignofinternal
ofcontrols
insalesprocessesfromapprovalofcontractstotheaccountingofsalesrevenueandtested
controlsthe
effectivenessoftheimplementationofkeycontrolpoints.Viasampleinspectionofcontractsandmanagementinterviews,wetestedthetimingpoint
theof
significantrisksandremunerationrelatedtoroomrevenuerecognition,andthusassessed
ofthe
Company'sincomerecognitionpolicies.Inaddition,weimplementedthefollowingproceduresinrespectofroomrevenueby
theusing
sampling:
(1)Analyzeincomeandgrossprofitmarginincombinationwiththetypeofincome,and
usingjudge
whetherthereisanyabnormalfluctuationintheincomeamountinthecurrentperiod.(2)Choosesamplesfromreservationrecordsandcheck-inrecordsofrooms,checkthe
judgesamples
againstthecontracts,accountingrecords,invoiceissuanceandpaymentreceiptsrelatedto
samplesthe
correspondingsales,andpayspecialattentiontowhetherthesamplesbeforeandafterthe
thebalance
sheetdateareincludedinthecorrectaccountingperiodtoassesswhetherroomrevenue
balanceis
confirmedduringtheappropriateperiod.(3)Withrespecttonewcustomersandthosebringinglargeamountofincomeinthe
iscurrent
period,implementtheexternalconfirmationofincurredamountsandthebalances,andanalyzed
currentthe
authenticitythereofincombinationwiththecollectionofpaymentsandoccupancysituation.At
thethe
sametime,inquirethebusinessinformationofsomecustomerstofurtherconfirmtheauthenticity
theof
transactionstherewith.IV.OtherinformationThemanagementoftheCompany(hereinafterreferredtoasManagers)isresponsiblefortheotherinformation.TheotherinformationcomprisesinformationoftheCompany'sannualreportin2018,butexcludesthefinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotandwillnotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedaboveand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformedontheotherinformationthatweobtainedpriortothedateofthisauditor'sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsTheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,andfordesigning,implementingandmaintaininginternalcontrolthatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors.Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,omissions,misrepresentations,ortheoverrideofinternalcontrol.(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.(3)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagementoftheCompany.(4)ConcludeontheappropriatenessofusingthegoingconcernassumptionbythemanagementoftheCompany,andconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weinchargeoftheguidance,supervisionandenforcementofthegroup’sauditingandbearallliabilityfortheopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditmatters,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor'sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,we
determinethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.BDOCHINAShuLunPanCertifiedPublicAccountantofChina:
CertifiedPublicAccountantsLLP(Engagementpartner)
CertifiedPublicAccountantofChina:
Shanghai·China24Feburay2019
II.FinancialStatement
ExpressedinRenminbiunlessotherwisestated
1.Consolidatedbalancesheet
PreparedbyHAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.
2018-12-31
InRMBItemClosingBalanceOpeningBalanceCurrentassets:
Monetaryfunds15,364,355.309,681,607.16SettlementfundsLendingfundsFinancialassetsmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialassetsNotesreceivable&accountreceivables426,434.87594,130.89
Including:Notesreceivable
Accountsreceivable426,434.87594,130.89Prepayments49,530.21InsurancereceivableReinsurancereceivablesContractreserveofreinsurancereceivableOtherreceivables458,242.73139,561.29
Including:Interestreceivable
DividendsreceivablePurchaserestitutedfinanceassetInventories221,390.19227,005.11AssetsheldforsaleNon-currentassetsmaturingwithinoneyear1,173,597.68Othercurrentassets1,846,219.791,957,863.56Totalcurrentassets18,316,642.8813,823,295.90Non-currentassets:
LoansandpaymentsonbehalfAvailable-for-salefinancialassets
Held-to-maturityinvestmentsLong-termreceivablesLong-termequityinvestmentsInvestmentrealestate8,384,480.438,859,003.99Fixedassets
36,497,869.6539,088,708.83ConstructioninprogressProductivebiologicalassetsOilandnaturalgasassetsIntangibleassets22,205,249.0423,017,636.20ResearchanddevelopmentcostsGoodwillLong-termdeferredexpenses
2,792,876.072,678,016.88DeferredtaxassetsOthernon-currentassetsTotalnon-currentassets69,880,475.1973,643,365.90Totalassets88,197,118.0787,466,661.80Currentliabilities
Short-termborrowingsLoanfromcentralbankAbsorbingdepositandinterbankdepositCapitalborrowedFinancialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialliabilityNotespayable&accountpayable1,607,835.812,161,172.26Accountsreceivedinadvance1,291,293.051,271,174.12SellingfinancialassetofrepurchaseCommissionchargeandcommissionpayableWagepayable2,841,262.352,459,015.93Taxespayable450,861.87539,023.76Otheraccountspayable2,727,483.662,411,176.59
Including:Interestpayable
DividendpayableReinsurancepayableInsurancecontractreserveSecuritytradingofagencySecuritysalesofagencyLiabilityheldforsaleNon-currentliabilitiesduewithin1yearOthercurrentliabilities
Totalcurrentliabilities8,918,736.748,841,562.66Non-currentliabilities:
Long-termloansBondspayable
Including:preferredstock
PerpetualcapitalsecuritiesLong-termaccountpayableLong-termwagespayableProjectedliabilities1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.041,489,685.04Totalliabilities10,408,421.7810,331,247.70Owners’equity:
Sharecapital364,100,000.00364,100,000.00Otherequityinstrument
Including:preferredstock
PerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01Less:InventorysharesOthercomprehensiveincomeReasonablereserveSurplusreserveProvisionofgeneralriskRetainedprofit-340,454,153.72-341,107,435.91Totalowner’sequityattributabletoparentCompany77,788,696.2977,135,414.10MinorityinterestsTotalowner’sequity77,788,696.2977,135,414.10Totalliabilitiesandowner’sequity88,197,118.0787,466,661.80LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
2.Balancesheetofparentcompany
InRMBItemClosingBalanceOpeningBalanceCurrentassets:
Monetaryfunds14,864,055.739,681,607.16Financialassetsmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialassetsNotesreceivable&accountreceivables426,434.87594,130.89
Including:Notesreceivable
Accountsreceivable426,434.87594,130.89Prepayments49,530.21Otherreceivables458,242.73139,561.29
Including:Interestreceivable
DividendsreceivableInventories221,390.19227,005.11AssetsheldforsaleNon-currentassetsmaturingwithinoneyear1,173,597.68Othercurrentassets1,846,219.791,957,863.56Totalcurrentassets17,816,343.3113,823,295.90Non-currentassets:
Available-for-salefinancialassetsHeld-to-maturityinvestmentsLong-termreceivablesLong-termequityinvestments1,000,000.00Investmentrealestate8,384,480.438,859,003.99Fixedassets
36,497,869.6539,088,708.83ConstructioninprogressProductivebiologicalassetsOilandnaturalgasassetsIntangibleassets
22,205,249.0423,017,636.20ResearchanddevelopmentcostsGoodwillLong-termdeferredexpenses2,792,876.072,678,016.88DeferredtaxassetsOthernon-currentassetsTotalnon-currentassets70,880,475.1973,643,365.90Totalassets88,696,818.5087,466,661.80Currentliabilities
Short-termborrowingsFinancialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
DerivativefinancialliabilityNotespayable&accountspayable1,607,835.812,161,172.26Accountsreceivedinadvance1,291,293.051,271,174.12Wagepayable2,841,262.352,459,015.93Taxespayable450,861.87539,023.76Otheraccountspayable3,226,952.362,411,176.59
Including:Interestpayable
Dividendpayable
LiabilityheldforsaleNon-currentliabilitiesduewithin1yearOthercurrentliabilitiesTotalcurrentliabilities9,418,205.448,841,562.66Non-currentliabilities:
Long-termloansBondspayable
Including:preferredstock
PerpetualcapitalsecuritiesLong-termaccountpayableLong-termwagespayableProjectedliabilities1,489,685.041,489,685.04DeferredincomeDeferredincometaxliabilitiesOthernon-currentliabilitiesTotalnon-currentliabilities1,489,685.041,489,685.04Totalliabilities10,907,890.4810,331,247.70Owners’equity:
Sharecapital364,100,000.00364,100,000.00Otherequityinstrument
Including:preferredstock
PerpetualcapitalsecuritiesCapitalpublicreserve54,142,850.0154,142,850.01Less:InventorysharesOthercomprehensiveincomeReasonablereserveSurplusreserveRetainedprofit-340,453,921.99-341,107,435.91Totalowner’sequity77,788,928.0277,135,414.10Totalliabilitiesandowner’sequity88,696,818.5087,466,661.80LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
3.Consolidatedprofitstatement
InRMBItemCurrentPeriodLastPeriodI.Totaloperatingincome29,515,592.3327,906,564.23
Including:Operatingincome29,515,592.3327,906,564.23InterestincomeInsurancegainedCommissionchargeandcommissionincome
II.Totaloperatingcost28,699,246.2427,127,174.49Including:Operatingcost11,755,198.1011,139,919.59InterestexpenseCommissionchargeandcommissionexpenseCashsurrendervalueNetamountofexpenseofcompensationNetamountofwithdrawalofinsurancecontractreserveBonusexpenseofguaranteeslipReinsuranceexpenseTaxesandextras1,393,881.371,434,692.20Salesexpenses
5,619,079.955,124,503.55Administrationexpenses10,133,021.979,665,525.83R&DexpensesFinancialexpenses-188,278.60-249,176.18
Including:interestexpenses
Interestincome232,899.41291,701.13Lossesofdevaluationofasset-13,656.5511,709.50Add:otherincome
Investmentincome(Lossislistedwith“-”)805,825.24Including:InvestmentincomeonaffiliatedCompanyandjointventureChangingincomeoffairvalue(Lossislistedwith“-”)Exchangeincome(Lossislistedwith“-”)Incomeondisposalofassets(Lossislistedwith“-”)III.Operatingprofit(Lossislistedwith“-”)816,346.091,585,214.98
Add:Non-operatingincome273.001,303,800.11Less:Non-operatingexpense163,336.9030,016.43IV.TotalProfit(Lossislistedwith“-”)
653,282.192,858,998.66Less:IncometaxV.Netprofit(Netlossislistedwith“-”)
653,282.192,858,998.66(i)continuousoperatingnetprofit(netlosslistedwith‘-”)653,282.192,858,998.66(ii)terminationofnetprofit(netlosslistedwith‘-”)Netprofitattributabletoowner’sequityofparentCompany
653,282.192,858,998.66Minorityshareholders’gainsandlossesVI.Netafter-taxofothercomprehensiveincome
Netafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany
(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss
1.Changesofthedefinedbenefitplansthatre-measured2.Othercomprehensiveincomeunderequitymethodthatcannotbetransfertogain/loss
(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss
1.Othercomprehensiveincomeunderequitymethodthatcantransfertogain/loss
2.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-sale
financialassets
3.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets
4.Theeffecthedgingportionofgainsorlossesarisingfromcashflowhedginginstruments
5.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements
6.OtherNetafter-taxofothercomprehensiveincomeattributabletominorityshareholdersVII.Totalcomprehensiveincome653,282.192,858,998.66TotalcomprehensiveincomeattributabletoownersofparentCompany
653,282.192,858,998.66TotalcomprehensiveincomeattributabletominorityshareholdersVIII.Earningspershare:
(i)Basicearningspershare0.00180.0079(ii)Dilutedearningspershare
0.00180.0079Asfortheenterprisecombinationunderthesamecontrol,thenetprofitachievedbythecombinedpartybeforeconsolidationwas0Yuanintheperiodwhile0YuanachievedlastperiodLegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
4.ProfitstatementofparentCompany
InRMBItemCurrentPeriodLastPeriodI.Ooperatingincome29,515,592.3327,906,564.23
Less:Operatingcost11,755,198.1011,139,919.59
Taxesandextras1,393,596.371,434,692.20Salesexpenses5,619,079.955,124,503.55Administrationexpenses10,132,404.179,665,525.83R&DexpensesFinancialexpenses-187,607.53-249,176.18
Including:interestexpenses
Interestincome232,116.34291,701.13Lossesofdevaluationofasset-13,656.5511,709.50Add:otherincome
Investmentincome(Lossislistedwith“-”)805,825.24Including:InvestmentincomeonaffiliatedCompanyandjointventure
Changingincomeoffairvalue(Lossislistedwith“-”)Incomeondisposalofassets(Lossislistedwith“-”)II.Operatingprofit(Lossislistedwith“-”)816,577.821,585,214.98
Add:Non-operatingincome273.001,303,800.11Less:Non-operatingexpense163,336.9030,016.43III.TotalProfit(Lossislistedwith“-”)653,513.922,858,998.66
Less:IncometaxIV.Netprofit(Netlossislistedwith“-”)653,513.922,858,998.66
(i)continuousoperatingnetprofit(netlosslistedwith‘-”)653,513.922,858,998.66
(ii)terminationofnetprofit(netlosslistedwith‘-”)V.Netafter-taxofothercomprehensiveincome
(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss
1.Changesofthedefinedbenefitplansthatre-measured2.Othercomprehensiveincomeunderequitymethodthatcannotbetransfertogain/loss
(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss
1.Othercomprehensiveincomeunderequitymethodthatcantransfertogain/loss
2.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets
3.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets
4.Theeffecthedgingportionofgainsorlossesarisingfromcashflowhedginginstruments
5.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements
6.OtherVI.Totalcomprehensiveincome653,513.922,858,998.66VII.Earningspershare:
(i)Basicearningspershare0.00180.0079(ii)Dilutedearningspershare0.00180.0079LegalRepresentative:YuanXiaopingAccountingPrincipal:FuZongrenAccountingFirm’sPrincipal:FuZongren
5.Consolidatedcashflowstatement
InRMBItemCurrentPeriodLastPeriodI.Cashflowsarisingfromoperatingactivities:
Cashreceivedfromsellingcommoditiesandprovidinglaborservices31,632,073.5629,475,377.07NetincreaseofcustomerdepositandinterbankdepositNetincreaseofloanfromcentralbankNetincreaseofcapitalborrowedfromotherfinancialinstitutionCashreceivedfromoriginalinsurancecontractfeeNetcashreceivedfromreinsurancebusinessInsuredsavingsandnetincreaseofinvestmentNetincreaseofamountfromdisposalfinancialassetsthatmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses
Cashreceivedfrominterest,commissionchargeandcommission
NetincreaseofcapitalborrowedNetincreaseofreturnedbusinesscapitalWrite-backoftaxreceivedOthercashreceivedconcerningoperatingactivities1,966,271.291,082,486.86Subtotalofcashinflowarisingfromoperatingactivities33,598,344.8530,557,863.93
Cashpaidforpurchasingcommoditiesandreceivinglaborservice9,249,110.158,848,190.06NetincreaseofcustomerloansandadvancesNetincreaseofdepositsincentralbankandinter-bankCashpaidfororiginalinsurancecontractcompensationCashpaidforinterest,commissionchargeandcommissionCashpaidforbonusofguaranteeslipCashpaidto/forstaffandworkers11,949,737.9410,028,995.69Taxespaid2,481,200.142,678,621.46Othercashpaidconcerningoperatingactivities3,134,403.363,874,768.25Subtotalofcashoutflowarisingfromoperatingactivities26,814,451.5925,430,575.46Netcashflowsarisingfromoperatingactivities6,783,893.265,127,288.47II.Cashflowsarisingfrominvestingactivities:
Cashreceivedfromrecoveringinvestment9,000,000.00Cashreceivedfrominvestmentincome830,000.00Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets10,550.00NetcashreceivedfromdisposalofsubsidiariesandotherunitsOthercashreceivedconcerninginvestingactivitiesSubtotalofcashinflowfrominvestingactivities9,840,550.00Cashpaidforpurchasingfixed,intangibleandotherlong-termassets1,101,145.124,186,479.32Cashpaidforinvestment9,000,000.00NetincreaseofmortgagedloansNetcashreceivedfromsubsidiariesandotherunitsOthercashpaidconcerninginvestingactivities19,310,000.00Subtotalofcashoutflowfrominvestingactivities1,101,145.1232,496,479.32Netcashflowsarisingfrominvestingactivities-1,101,145.12-22,655,929.32III.Cashflowsarisingfromfinancingactivities:
CashreceivedfromabsorbinginvestmentIncluding:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiaries
CashreceivedfromloansCashreceivedfromissuingbondsOthercashreceivedconcerningfinancingactivities19,810,000.00Subtotalofcashinflowfromfinancingactivities19,810,000.00CashpaidforsettlingdebtsCashpaidfordividendandprofitdistributingorinterestpayingIncluding:DividendandprofitofminorityshareholderpaidbysubsidiariesOthercashpaidconcerningfinancingactivities19,810,000.00
Subtotalofcashoutflowfromfinancingactivities19,810,000.00NetcashflowsarisingfromfinancingactivitiesIV.InfluenceoncashduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents5,682,748.14-17,528,640.85Add:Balanceofcashandcashequivalentsattheperiod-begin9,681,607.1627,210,248.01VI.Balanceofcashandcashequivalentsattheperiod-end15,364,355.309,681,607.16
6.CashflowstatementofparentCompany
InRMBItemCurrentPeriodLastPeriodI.Cashflowsarisingfromoperatingactivities:
Cashreceivedfromsellingcommoditiesandprovidinglaborservices31,632,073.5629,475,377.07Write-backoftaxreceivedOthercashreceivedconcerningoperatingactivities2,465,488.221,082,486.86Subtotalofcashinflowarisingfromoperatingactivities34,097,561.7830,557,863.93
Cashpaidforpurchasingcommoditiesandreceivinglaborservice9,249,110.158,848,190.06Cashpaidto/forstaffandworkers11,949,737.9410,028,995.69Taxespaid2,480,915.142,678,621.46Othercashpaidconcerningoperatingactivities3,134,204.863,874,768.25Subtotalofcashoutflowarisingfromoperatingactivities
26,813,968.0925,430,575.46Netcashflowsarisingfromoperatingactivities7,283,593.695,127,288.47II.Cashflowsarisingfrominvestingactivities:
Cashreceivedfromrecoveringinvestment9,000,000.00Cashreceivedfrominvestmentincome830,000.00Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets
10,550.00NetcashreceivedfromdisposalofsubsidiariesandotherunitsOthercashreceivedconcerninginvestingactivitiesSubtotalofcashinflowfrominvestingactivities9,840,550.00Cashpaidforpurchasingfixed,intangibleandotherlong-termassets1,101,145.124,186,479.32Cashpaidforinvestment9,000,000.00NetcashreceivedfromsubsidiariesandotherunitsOthercashpaidconcerninginvestingactivities1,000,000.0019,310,000.00Subtotalofcashoutflowfrominvestingactivities2,101,145.1232,496,479.32Netcashflowsarisingfrominvestingactivities-2,101,145.12-22,655,929.32III.Cashflowsarisingfromfinancingactivities:
CashreceivedfromabsorbinginvestmentCashreceivedfromloansCashreceivedfromissuingbondsOthercashreceivedconcerningfinancingactivities19,810,000.00Subtotalofcashinflowfromfinancingactivities19,810,000.00
CashpaidforsettlingdebtsCashpaidfordividendandprofitdistributingorinterestpayingOthercashpaidconcerningfinancingactivities19,810,000.00Subtotalofcashoutflowfromfinancingactivities19,810,000.00NetcashflowsarisingfromfinancingactivitiesIV.InfluenceoncashduetofluctuationinexchangerateV.Netincreaseofcashandcashequivalents5,182,448.57-17,528,640.85Add:Balanceofcashandcashequivalentsattheperiod-begin9,681,607.1627,210,248.01VI.Balanceofcashandcashequivalentsattheperiod-end14,864,055.739,681,607.16
7.Consolidatechangeofowners’equity
Currentperiod
InRMB
Item
CurrentperiodOwners’equityattributabletotheparentCompany
Minorityinterests
Totalowners’equitySharecapital
Otherequityinstrument
Capitalpublicreserve
Less:
Inventoryshares
Othercomprehensiveincome
Reasonablereserve
Surplusreserve
Provisionofgeneralrisk
RetainedprofitPreferredstock
Perpetualcapitalsecurities
OtherI.Balanceattheendofthelastyear
364,100,000.00
54,142,850.01
-341,107,435.91
77,135,414.10
Add:
ChangesofaccountingpolicyErrorcorrectionofthelastperiodEnterprisecombineunderthesamecontrol
OtherII.Balanceatthebeginningofthisyear
364,100,000.00
54,142,850.01
-341,107,435.91
77,135,414.10III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
653,282.1
653,282.
(i)Totalcomprehensiveincome
653,282.1
653,282.
(ii)Owners’devotedanddecreasedcapital1.Commonsharesinvestedbyowners2.Capitalinvestedbyholdersofotherequityinstruments3.Amountreckonedintoownersequitywithshare-basedpayment4.Other(III)Profitdistributi
on1.Withdrawalofsurplusreserves2.Withdrawalofgeneralriskprovisions3.Distributionforowners(orshareholders)4.Other(IV)Carryingforwardinternalowners’equity1.Capitalreservesconversedtocapital(sharecapital)2.Surplusreservesconversedtocapital(sharecapital)3.Remedyinglosswithsurplusreserve4.Changeamountofdefinedbenefit
plansthatcarryforwardretainedearnings5.Other(V)Reasonablereserve1.Withdrawalinthereportperiod2.Usageinthereportperiod(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.00
54,142,850.01
-340,454,153.72
77,788,696.29LastPeriod
InRMB
Item
LastPeriodOwners’equityattributabletotheparentCompany
Minorityinterests
Totalowners’equitySharecapital
Otherequityinstrument
Capitalpublicreserve
Less:
Inventoryshares
Other
compreh
ensive
income
Reasonablereserve
Surplusreserve
Provisionofgeneralrisk
RetainedprofitPreferredstock
Perpetualcapitalsecurities
OtherI.Balanceattheendofthelastyear
364,100,000.00
54,142,850.01
-343,966,434.57
74,276,415.44
Add:
Changesofaccountingpolicy
ErrorcorrectionofthelastperiodEnterprisecombineunderthesamecontrolOtherII.Balanceatthebeginningofthisyear
364,100,000.00
54,142,850.01
-343,966,434.57
74,276,415.44III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
2,858,998.66
2,858,998.66
(i)Totalcomprehensiveincome
2,858,998.66
2,858,998.66(ii)Owners’devotedanddecreasedcapital1.Commonsharesinvestedbyowners2.Capitalinvestedbyholdersofotherequityinstruments
3.Amountreckonedintoownersequitywithshare-basedpayment4.Other(III)Profitdistribution1.Withdrawalofsurplusreserves2.Withdrawalofgeneralriskprovisions3.Distributionforowners(orshareholders)4.Other(IV)Carryingforwardinternalowners’equity1.Capitalreservesconversedtocapital(sharecapital)2.Surplusreservesconversedtocapital
(sharecapital)3.Remedyinglosswithsurplusreserve4.Changeamountofdefinedbenefitplansthatcarryforwardretainedearnings5.Other(V)Reasonablereserve1.Withdrawalinthereportperiod2.Usageinthereportperiod(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.00
54,142,850.01
-341,107,435.91
77,135,414.10
8.Changeofowners’equityofparentcompany
Currentperiod
InRMBItem
CurrentperiodSharecapital
OtherequityinstrumentCapitalpublicreserve
Less:
Invent
ory
shares
Othercomprehensiveincome
Reasonablereserve
Surplusreserve
Retainedprofit
Totalowners’equityPreferredstock
Perpetualcapital
Other
securitiesI.Balanceattheendofthelastyear
364,100,000.00
54,142,850.01
-341,107,435.91
77,135,414.10Add:
ChangesofaccountingpolicyErrorcorrectionofthelastperiodOtherII.Balanceatthebeginningofthisyear
364,100,000.00
54,142,850.01
-341,107,435.91
77,135,414.10III.Increase/Decreaseinthisyear(Decreaseislistedwith“-”)
653,513.92
653,513.9
(i)Totalcomprehensiveincome
653,513.92
653,513.9
(ii)Owners’devotedanddecreasedcapital1.Commonsharesinvestedbyowners2.Capitalinvestedbyholdersofotherequityinstruments3.Amount
reckonedintoownersequitywithshare-basedpayment4.Other(III)Profitdistribution1.Withdrawalofsurplusreserves2.Distributiontoowners(orshareholders)3.Other(IV)Carryingforwardinternalowners’equity1.Capitalreservesconversedtocapital(sharecapital)2.Surplusreservesconversedtocapital(sharecapital)3.Remedyinglosswithsurplusreserve4.Changeamountofdefinedbenefitplansthatcarryforwardretainedearnings
5.Other(V)Reasonablereserve1.Withdrawalinthereportperiod2.Usageinthereportperiod(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.00
54,142,850.01
-340,453,921.99
77,788,928.02Lastperiod
InRMB
Item
LastperiodSharecapital
Otherequityinstrument
Capitalpublicreserve
Less:
Inventoryshares
Othercomprehensiveincome
Reasonablereserve
Surplusreserve
Retainedprofit
Totalowners’equityPreferredstock
Perpetualcapitalsecurities
OtherI.Balanceattheendofthelastyear
364,100,000.00
54,142,850.01
-343,966,434.57
74,276,415.44Add:
ChangesofaccountingpolicyErrorcorrectionofthelastperiodOtherII.Balanceatthebeginningofthisyear
364,100,000.00
54,142,850.01
-343,966,434.57
74,276,415.44III.Increase/Decreaseinthisyear
2,858,998.6
2,858,998.66
(Decreaseislistedwith“-”)(i)Totalcomprehensiveincome
2,858,998.6
2,858,998.66(ii)Owners’devotedanddecreasedcapital1.Commonsharesinvestedbyowners2.Capitalinvestedbyholdersofotherequityinstruments3.Amountreckonedintoownersequitywithshare-basedpayment4.Other(III)Profitdistribution1.Withdrawalofsurplusreserves2.Distributiontoowners(orshareholders)3.Other(IV)Carryingforwardinternalowners’equity
1.Capitalreservesconversedtocapital(sharecapital)2.Surplusreservesconversedtocapital(sharecapital)3.Remedyinglosswithsurplusreserve4.Changeamountofdefinedbenefitplansthatcarryforwardretainedearnings5.Other(V)Reasonablereserve1.Withdrawalinthereportperiod2.Usageinthereportperiod(VI)OthersIV.Balanceattheendofthereportperiod
364,100,000.00
54,142,850.01
-341,107,435.91
77,135,414.10
NotestotheFinancialStatementsPage
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.
NotestotheFinancialStatementsFortheYearEndedDecember31,20181.Companyprofile
1.1
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.(hereinafterreferredtoasthe"Company")isastandardizedcompanylimitedbysharesestablishedonApril26,1993andrestructuredfromHainanSanyaDadonghaiTourismCentreDevelopmentCo.,Ltd.withtheapprovalofHainanShareholdingSystemPilotGroupofficeviaitsDocumentQiongGuBanZi[1993]No.11.OnMay6,1996,theCompanywasreorganizedandseparatedwiththereplyofHainanSecuritiesManagementOfficebyitsDocumentQiongZhengBan[1996]No.58.OnOctober8,1996andJanuary28,1997,theCompanywasapprovedtorespectivelyissue80millionBsharesand14millionAsharesonShenzhenStockExchangeandlistforsales.OnJune20,2007,theCompanycarriedoutthesplitsharestructurereform.Thenon-tradableshareholdersoftheCompanypaidsharestothetradableshareholdersforobtainingthecirculationrights,andthetradableshareholdersgot3sharesforevery10shares.TheCompanybelongstotourismandcateringserviceindustry.AsatDecember31,2018,theCompany'saccumulativetotalissuedcapitalwas364.1millionsharesandtheCompany'sregisteredcapitalwasRMB364.1million.Legalrepresentative:YuanXiaoping.Unifiedsocialcreditcode:91460000201357188U.Domicile:Dadonghai,HedongDistrict,Sanya.Businessscope:Accommodationandcateringindustry(limitedtobranches);photography;flowerbonsai,knitwear,generalmerchandise,hardwareandelectricalequipment,chemicalproducts(exceptfranchisedoperations),dailynecessities,industrialmeansofproduction(exceptfranchisedoperations),metalmaterials,machineryequipment;salesoftrain,busandvehicleticketsonanagentbasis,etc.TheCompany'slargestshareholderisLuoniushanCo.,Ltd.ThefinancialstatementswereapprovedbyalldirectorsoftheCompanyfordisclosureonFebruary24,2018.1.2Scopetotheconsolidatedfinancialstatements
AsatDecember31,2018,thesubsidiaryincludedintotheCompany'sscopeofconsolidatedfinancialstatementsisasfollows:
NameRelationshipwiththeCompanyHainanWengaoTouristResourcesDevelopmentCo.,Ltd.
Awholly-ownedsubsidiaryoftheCompanySee“Note6.Changesinthescopeofconsolidation"and“Note7.Equityinotherentities"fordetailsofthescopeofconsolidatedfinancialstatementsin2018andchangesthereof.2.Basisforthepreparationofthefinancialstatements
2.1Preparationbasis
Basedongoingconcernandaccordingtoactuallyoccurredtransactionsandevents,theCompanypreparedfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises—BasicStandardsandthespecificaccountingstandards,theAccountingStandardsforBusinessEnterprises-ApplicationGuidance,theAccountingStandardsforBusinessEnterprises-Interpretationandotherrelevantprovisions,issuedbytheMinistryofFinance,(hereinafterreferredtocollectivelyasthe"AccountingStandardsforBusinessEnterprises"),aswellasthedisclosureprovisionsoftheRulesfortheCompilationandSubmissionofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15-GeneralRequirementsforFinancialReports(Revisedin2014).
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2.2Goingconcern
TheCompanycurrentlyhassufficientworkingcapitalandnormaloperatingconditions.ItisestimatedthattheoperatingactivitiesoftheCompanywillstillcontinueinthenext12months.3.
3.1StatementoncompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanymeetrequirementsoftheAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflecttheCompany’sfinancialposition,operationresultsandcashflowsandotherrelevantinformationinthereportingperiod.3.2Accountingperiod
TheaccountingyearisfromJanuary1toDecember31incalendaryear.3.3Operatingcycle
TheCompany'soperatingcycleis12months.3.4Functionalcurrency
RMBisadoptedasthefunctionalcurrency.3.5Accountingtreatmentmethodsforbusinesscombinationsunderandnotundercommon
control
Businesscombinationundercommoncontrol:TheassetsandliabilitiesacquiredbytheCompany
inbusinesscombinationsaremeasuredatbookvaluesofassetsandliabilitiesofthecombinee
(includingthegoodwillarisingfromtheacquisitionofthecombineebytheultimatecontroller)in
theconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestock
premiuminthecapitalreservesisadjustedaccordingtothedifferencebetweenthebookvalueof
thenetassetsacquiredinbusinesscombinationandthebookvalueoftheconsiderationpaidfor
thecombination(ortotalparvalueofsharesissued).Ifthereisnosufficientstockpremiuminthe
capitalreservesforwrite-downs,theretainedearningsshallbeadjusted.
Businesscombinationnotundercommoncontrol:TheCompanyshall,ontheacquisitiondate,
measuretheassetssurrenderedandliabilitiesincurredorassumedbytheCompanyforabusiness
combinationattheirfairvalues.Thedifferencebetweenthefairvalueandtheirbookvalueshall
beincludedinthecurrentprofitorloss.TheCompanyshallrecognizethedifferenceofthe
combinationcostsinexcessofthefairvalueoftheidentifiablenetassetsacquiredfromthe
acquireeasgoodwill.TheCompanyshallrecognizethedifferenceofthecombinationcostsin
shortofthefairvalueoftheidentifiablenetassetsacquiredfromtheacquireeinthecurrentprofit
orlossafterreview.
Theauditing,legalservices,consultingandotherintermediaryservicefeesaswellasother
relevantdirectexpensesforbusinesscombinationwillbeincludedinthecurrentprofitorlossat
occurrence;thetransactioncostsfortheissueofequitysecuritiesshallbeusedtowritedown
equities.3.6Preparationmethodsofconsolidatedfinancialstatements
3.6.1Scopeofconsolidation
ThescopeofconsolidatedfinancialstatementsoftheCompanyisdeterminedonthebasisofcontrol,andallitssubsidiaries(includingtheinvestee'spartiblepartthatisundercontroloftheCompany)shallbeincludedintheconsolidatedfinancialstatements.
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3.6.2Proceduresofconsolidation
TheCompanypreparestheconsolidatedfinancialstatementsbasedonfinancialstatementsofitselfanditssubsidiariesandaccordingtootherrelevantinformation.Uponpreparationofconsolidatedfinancialstatements,theCompanyshalldeemthewholegroupasawholeaccountingentity,andreflectstheoverallfinancialposition,operatingresultsandcashflowsofthegroupinaccordancewithrelevantrequirementsforrecognition,measurementandpresentationasstatedintheAccountingStandardsforBusinessEnterprisesaswellasuniformaccountingpolicies.AllthesubsidiarieswithintheconsolidationscopeofconsolidatedfinancialstatementsshalladoptthesameaccountingpoliciesandaccountingperiodsasthoseoftheCompany.IftheaccountingpoliciesoraccountingperiodsofasubsidiaryaredifferentfromthoseoftheCompany,theconsolidatedfinancialstatementsofthesubsidiary,uponpreparationofconsolidatedfinancialstatements,shallbeadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany.Forthesubsidiariesacquiredthroughbusinesscombinationnotunderthesamecontrol,adjustmentstotheirfinancialstatementsshallbemadebasedonthefairvaluesofnetidentifiableassetsontheacquisitiondate.Forasubsidiaryacquiredthroughbusinesscombinationundercommoncontrol,adjustmenttoitsfinancialstatementsshallbemadebasedonthebookvaluesofitsassetsandliabilities(includinggoodwillformedintheacquisitionofthesubsidiarybyitsultimatecontroller)aspresentedinthefinancialstatementsoftheultimatecontroller.Theshareofowners'equity,currentnetprofitsandlosses,andcurrentcomprehensiveincomeofsubsidiariesattributabletominorityownersshallberespectivelyandseparatelylistedundertheowner'sequityitemofaconsolidatedbalancesheet,thenetprofititemofaconsolidatedincomestatement,andthetotalcomprehensiveincomeinaconsolidatedincomestatement.Wherethecurrentlossessharedbyaminorityshareholderofasubsidiaryexceedsthebalancesarisingfromthesharesenjoyedbytheminorityshareholderintheowners'equityofthesubsidiaryatthebeginningoftheperiod,minorityequityshallbewrittendownaccordingly.(1)Increaseofsubsidiariesorbusiness
Duringthereportingperiod,iftheCompanyacquiredsubsidiariesorbusinessfromthebusinesscombinationundercommoncontrol,thebeginningbalanceintheconsolidatedstatementoffinancialpositionshallbeadjusted;therevenue,expensesandprofitsofthenewlyacquiredsubsidiariesorbusinessfromthebeginningtotheendofthereportingperiodshallbeincludedintotheconsolidatedincomestatement;thecashflowsofthenewlyacquiredsubsidiariesorbusinessfromthebeginningtotheendofthereportingperiodshallbeincludedintheconsolidatedstatementofcashflow.Relevantitemsinthecomparativefinancialstatementsofthesubsidiariesshallbeadjustedaccordingly,asifthereportingentityafterthebusinesscombinationexistsatthetimewhentheultimatecontrollerhasthecontrolpower.Wherecontrolcanbeexercisedontheinvesteeunderthecommoncontrolforadditionalinvestmentorotherreasons,adjustmentwillbemadeasifallpartiesinvolvedinthecombinationexistatthebeginningofthecontrolbytheultimatecontroller.Equityinvestmentsheldbeforethecontroloverthecombinedpartyisobtained,therelatedgainsandlosses,othercomprehensiveincomeaswellasotherchangesinnetassetsrecognizedfromthelaterofthedatewhentheoriginalequityisobtainedorthedatewhentheacquirerandtheacquireeareunderthesamecontrol,tothecombinationdatewillrespectivelywritedowntheretainedearningsorcurrentprofitorlossinthecomparativestatements.
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Duringthereportingperiod,iftheCompanyincreasedsubsidiariesorbusinessfrombusinesscombinationsnotundercommoncontrol,thebeginningbalanceintheconsolidatedbalancesheetshallnotbeadjusted;therevenue,expensesandprofitsofthesubsidiariesorbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedincomestatement;cashflowsofthesubsidiariesandbusinessfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintheconsolidatedstatementofcashflows.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,itshallre-measureequityoftheacquireeheldbeforetheacquisitiondateatthefairvalueofsuchequityontheacquisitiondateandincludethedifferenceofthefairvalueandbookvalueintheinvestmentincomeintheyear.Whereequityoftheacquireeheldbeforetheacquisitiondateinvolvesinothercomprehensiveincomeaccountedforunderequitymethodandotherchangesinowners'equityotherthannetprofitsorlosses,othercomprehensiveincomeandprofitdistribution,therelevantothercomprehensiveincomeandotherchangesinowners'equityshallbetransferredtoinvestmentincomeintheyearwhichtheacquisitiondatefallsin,exceptforothercomprehensiveincomefromchangesarisingfromre-measurementofnetliabilitiesornetassetsofdefinedbenefitplanbytheinvestee.(2)Disposalofsubsidiariesorbusiness
Generalmethodoftreatment
Duringthereportingperiod,wheretheCompanydisposesofanysubsidiaryorbusiness,therevenues,expensesandprofitsofthesubsidiaryorbusinessfromthebeginningperiodtothedisposaldateshallbeincludedintheconsolidatedincomestatement;cashflowsofthesubsidiaryorbusinessfromthebeginningperiodtothedisposaldateshallbeincludedintheconsolidatedstatementofcashflows.WhentheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentorotherreasons,theremainingequityinvestmentafterthedisposalwillbere-measuredbytheCompanyatitsfairvalueonthedateoflossofthecontrol.Thedifferenceofthesumoftheconsiderationacquiredfromdisposalofequitiesandthefairvalueoftheremainingequitieslessthesumofthesharecalculatedattheoriginalshareholdingratioinnetassetsoftheoriginalsubsidiarywhicharecontinuouslycalculatedasoftheacquisitiondateorthecombinationdateandgoodwillshallbeincludedintheinvestmentincomeoftheperiodinwhichthecontrolislost.Othercomprehensiveincomesassociatedwiththeequityinvestmentsoftheoriginalsubsidiary,orthechangesinowners'equityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,aretransferredintoinvestmentincomeoftheperiodwhenthecontrolislost,exceptforothercomprehensiveincomefromthechangeinnetliabilityornetassetduetotheinvestor'sre-measurementofdefinedbenefitplan.WheretheCompanylosesthecontrolofanysubsidiaryduetothedeclineinitsshareholdingratiointhesubsidiary,causedbytheincreaseofinvestmentinthesubsidiarybyotherinvestors,theaccountingtreatmentshallbeconductedaccordingtotheaboveprinciples.
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2Disposalofsubsidiariesbystages
Ifthecontrolislostduetodisposaloftheequitiesinsubsidiariesthroughmultipletransactionsbystages,andtheterms,conditionsandeconomicimpactofthetransactionsrelatedtotheenterprise'sdisposalofitsinvestmentinthesubsidiariesmeetoneormoreofthefollowingcircumstances,itusuallyindicatesthatmultipletransactionsshouldbeincludedinapackagedealandsubjecttoaccountingprocessingasbelow:
i.Thesetransactionsareconcludedatthesametimeorundertheconsideration
ofmutualeffect;ii.Thesetransactionsasawholecanreachacompletebusinessresult;iii.Theoccurrenceofatransactiondependsontheoccurrenceofatleastone
othertransaction;iv.Asingletransactionisuneconomicalbutiseconomicalwhenconsidered
togetherwithothertransactions.Wherevarioustransactionsofdisposalofequityinvestmentsinsubsidiariesuntillossofthecontrolbelongtoapackagedeal,accountingtreatmentshallbemadebytheCompanyonthetransactionsasatransactiontodisposesubsidiariesandlosethecontrol;however,thedifferencebetweeneachdisposalcostandnetassetshareinthesubsidiariescorrespondingtoeachdisposalofinvestmentsbeforelossofthecontrolshouldberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandshouldbetransferredintothecurrentprofitorlossatthelossofthecontrol.Wherevarioustransactionsofdisposalofequityinvestmentsinsubsidiariesuntillossofthecontroldonotbelongtoapackagedeal,beforethelossofthecontrol,accountingtreatmentshallbemadeaccordingtotherelevantpoliciesforpartialdisposalofequityinvestmentsinthesubsidiarywithoutlosingcontrol;atthelossofthecontrol,accountingtreatmentshallbemadeaccordingtogeneraltreatmentmethodsfordisposalofsubsidiaries.(3)Purchaseofminorityinterestofsubsidiaries
Thesharepremiuminthecapitalreservesundertheconsolidatedbalancesheetwillbeadjustedatthedifferencebetweenthelong-termequityinvestmentacquiredbytheCompanyforthepurchaseofminorityinterestandtheshareofnetassetscalculatedconstantlyfromtheacquisitiondate(orcombinationdate)accordingtothenewlyincreasedshareholdingratio.Wherethesharepremiumisinsufficienttooffset,retainedearningswillbeadjusted.(4)Partialdisposalofequityinvestmentsinsubsidiarieswithoutlosingcontrol
Thesharepremiuminthecapitalreservesundertheconsolidatedbalancesheetwillbeadjustedatthedifferencebetweentheproceedsachievedfromthepartialdisposaloflong-termequityinvestmentsinsubsidiariesandtheshareofnetassetsofsubsidiariesattributabletotheCompanycorrespondingtothedisposaloflong-termequityinvestmentsandcalculatedconstantlyfromtheacquisitiondateorcombinationdate,withoutlosingthecontrol.Wherethesharepremiumisinsufficienttowritedown,theretainedearningswillbeadjusted.
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3.7Classificationandaccountingtreatmentofjointventurearrangements
Jointventurearrangementsareclassifiedintojointoperationandjointventure.JointoperationrefersthejointventurearrangementwheretheCompanyisajointventurerandenjoysassetsrelevantthejointventurearrangementandassumesliabilitiesrelevanttothesame.TheCompanyrecognizesthefollowingitemsrelatedtoitsshareofbenefitsinthejointoperationandconductaccountingtreatmentinaccordancewithrelevantaccountingstandardsforbusinessenterprises:
(1)assetspeculiartotheCompanyandassetsjointlyownedbytheCompanybasedonshares
held;(2)liabilitiesundertakenbytheCompanysolelyandliabilitiesjointlyundertakenbythe
Companybasedonsharesheld;(3)revenuefromthesalesofoutputshareenjoyedbytheCompanyinthejointoperation;(4)revenuefromthesalesofthejointoperationoutputbasedonthesharesheldbytheCompany;
and(5)separatecosts,andcostsforthejointoperationbasedonthesharesheldbytheCompany.3.8Recognitioncriteriaofcashandcashequivalents
Forthepurposeofpreparingthestatementofcashflows,theterm“cash”referstothecashonhandandtheunrestricteddepositoftheCompany.Theterm“cashequivalents”referstoshort-term(maturingwithinthreemonthsfromacquisition)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandsubjecttoaninsignificantriskofchangeinvalue.3.9Foreigncurrencytransactions
ForeigncurrencytransactionsaretranslatedintoRMBforrecordingpurposeatthespotexchangerateprevailingonthetransactiondate.Balancesofforeigncurrencymonetaryitemsaremeasuredatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingtherefromshallbeincludedinthecurrentprofitandloss,exceptthoseexchangedifferencesarisingfromthespecialborrowingsofforeigncurrencyrelatedtotheacquiredandconstructedassetsqualifiedforcapitalizationshallbedealtwithaccordingtotheprincipleofborrowingcostcapitalization.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostsshallstillbeconvertedatthespotexchangerateswhenthetransactionsoccur,andtheamountinfunctionalcurrencyshallremainunchanged.Foreigncurrencynon-monetaryitemsmeasuredatfairvalueshallbeconversedatthespotexchangeratesonthedatewhenthefairvalueisdetermined.Theexchangedifferencearisingtherefromshallbeincludedinthecurrentprofitandlossorcapitalreserves.3.10Financialinstruments
Financialinstrumentsincludefinancialassets,financialliabilitiesandequityinstruments.3.10.1Classificationoffinancialinstruments
Attheinitialrecognition,financialassetsandfinancialliabilitiesareclassifiedinto:
financialassetsorfinancialliabilitiesmeasuredatfairvaluethroughthecurrentprofitorloss,includingfinancialassetsorfinancialliabilitiesheldfortradingandfinancialassetsorfinancialliabilitiesdirectlydesignatedtobemeasuredatfairvaluethroughthecurrentprofitorloss;held-to-maturityinvestments;receivables;available-for-salefinancialassets;andotherfinancialliabilities,etc.
NotestotheFinancialStatementsPage
3.10.2Recognitionbasisandmeasurementmethodoffinancialinstruments
(1)Financialassetsmeasuredatfairvaluethroughcurrentprofitandloss(financial
liabilities)Financialassets(financialliabilities)amountareinitiallyrecordedatfairvalueswhenacquired(deductingcashdividendsthathavebeendeclaredbutnotdistributedorbondinterestthathasmaturedbutnotbeendrawn),andrelevanttransactionexpensesareincludedinthecurrentprofitorloss.Theinterestorcashdividendstobereceivedduringtheholdingperiodshallberecognizedasinvestmentincome.Changeinfairvaluesisincludedinthecurrentprofitorlossattheendoftheperiod.Thedifferencebetweenthefairvalueandtheinitialbook-entryvalueisrecognizedasinvestmentincomeupondisposal;meanwhile,adjustmentsaremadetoprofitsorlossesfromchangesinfairvalues.(2)Held-to-maturityinvestments
Held-to-maturityinvestmentsareinitiallyrecognizedatthesumofthefairvalue(deductingbondinterestthathasmaturedbutnotbeendrawn)andrelevanttransactioncosts.Duringtheperiodofholdingtheinvestment,theinterestincomeiscalculatedandrecognizedaccordingtotheamortizedcostsandeffectiveinterestrate(nominalinterestrateifthedifferencebetweentheeffectiveinterestrateandthenominalinterestrateissmall),andincludedintheinvestmentincome.Theeffectiveinterestratesaredetermineduponacquisitionandremainunchangedduringtheexpectedremainingperiod,orashorterperiodifapplicable.Upondisposal,thedifferencebetweenthepurchasepriceobtainedandthebookvalueoftheinvestmentisincludedininvestmentincome.
(3)Receivables
Forcreditor’srightsreceivablearisingfromexternalsalesofgoodsorrenderingofservicebytheCompanyandothercreditor'srightsofotherenterprises(excludingliabilityinstrumentsquotedinanactivemarket)heldbytheCompany,includingaccountsreceivable,otherreceivables,notesreceivable,advancetosuppliersandothers,theinitialrecognitionamountshallbethecontractpriceoragreementpricereceivablefrompurchasingparty;forthosewithfinancingnature,theyareinitiallyrecognizedattheirpresentvalues.
| Upon | recovery | or | disposal, | the | difference | between | the | purchase | price | obtained | and | |||||||||||||||||||||||||||||||
| the | book | value | of | the | receivables | is | included | in | current | profit | or | loss. | ||||||||||||||||||||||||||||||
| (4) | Available-for-sale | financial | assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amount | of | available-for-sale | financial | assets | is | initially | recognized | at | the | sum | of | the | |||||||||||||||||||||||||||||||||||||||||||||||||
| fair | value | (deducting | net | of | cash | dividends | declared | but | not | yet | paid | or | bond | interest | |||||||||||||||||||||||||||||||||||||||||||||||
| that | has | matured | but | not | been | drawn) | and | related | transaction | expenses | at | acquisition. | |||||||||||||||||||||||||||||||||||||||||||||||||
| The | interest | or | cash | dividend | obtained | during | the | holding | period | is | recognized | as | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| investment | income. | At | the | end | of | the | period, | available-for-sale | financial | assets | are | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| measured | at | fair | value, | and | the | change | in | fair | value | is | recognized | in | other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| comprehensive | income. | However, | for | an | equity | instrument | investment | that | has | no | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| quoted | price | in | an | active | market | and | whose | fair | value | cannot | be | reliably | measured, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | for | derivative | financial | asset | linked | to | the | said | equity | instrument | investment | and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| settled | by | delivery | of | the | same | equity | instrument, | they | are | measured | at | cost. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Differencebetweentheproceedsandthebookvalueofthefinancialassetsisrecognizedasinvestmentincomeupondisposal;meanwhile,amountofdisposalcorrespondingtotheaccumulatedchangeinfairvaluewhichisoriginallyanddirectlyincludedinothercomprehensiveincomeshallbetransferredoutandrecognizedastheprofitandlossoninvestments.(5)Otherfinancialliabilities
Otherfinancialliabilitiesareinitiallyrecognizedatthesumoffairvalueandtransactionexpenses.Thesubsequentmeasurementisbasedonamortizedcosts.3.10.3Recognitionbasisandmeasurementmethodofthetransferoffinancialassets
Whentransferoffinancialassetsoccurs,ifnearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassetshavebeentransferredtothetransferee,theCompanyderecognizesthefinancialassets;ifnearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassetsareretained,theCompanyshallnotderecognizethefinancialassets.Indeterminingwhetherthetransferofafinancialassetmeetstheabovede-recognitionconditionoffinancialassets,theprincipleofsubstanceoverformwillbeadopted.TheCompanydividesthetransferoffinancialassetsintooveralltransferandpartialtransfer.Wheretheentiretransferofthefinancialassetmeetsthede-recognitionconditions,thedifferenceofthefollowingtwoamountswillbeincludedinthecurrentprofitorloss:
(1)thebookvalueofthetransferredfinancialasset;(2)thesumofconsiderationreceivedfromthetransfer,andtheaccumulatedchange
amountoffairvalueoriginallyrecordedinowners'equity(thefinancialassetsinvolvedinthetransferareavailable-for-salefinancialassets).Wherepartialtransferoffinancialassetsmeetsthede-recognitionconditions,theentirebookvalueofthefinancialassetstransferredwillbeallocatedbetweenthederecognizedpartandtherecognizedpartbasedontherelativefairvalue,andthedifferencebetweenthefollowingtwoamountswillbeincludedincurrentprofitorloss:
(1)thebookvalueofthederecognizedpart;(2)thesumoftheconsiderationforthederecognizedpartandtheportionof
de-recognitioncorrespondingtotheaccumulatedamountofthechangesinfairvalueoriginallyanddirectlyincludedinowners'equity(thefinancialassetinvolvedinthetransferareavailable-for-salefinancialassets).Ifthetransferoffinancialassetsdoesnotmeetthede-recognitioncriteria,thefinancialassetsshallcontinuetoberecognized,andtheconsiderationreceivedshallberecognizedasafinancialliability.3.10.4De-recognitioncriteriaoffinancialliabilities
Wherethepresentobligationsoffinancialliabilitieshavebeendischargedinwholeorinpart,thefinancialliabilityisderecognizedoranypartthereofshallbederecognized;iftheCompanysignsanagreementwithcreditorstoreplacetheexistingfinancialliabilitiesbyundertakingnewfinancialliabilities,andthenewfinancialliabilitiesaresubstantiallydifferentfromtheexistingonesintermsofcontractterms,theexistingfinancialliabilitiesshallbederecognized,andatthesametime,thenewfinancialliabilityshallberecognized.
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Wheresubstantivechangesaremadetothecontracttermsofexistingfinancialliabilityinwholeorinpart,theexistingfinancialliabilitiesorpartthereofwillbederecognized,andthefinancialliabilitythetermsofwhichhavebeenmodifiedwillberecognizedasanewfinancialliability.Wherefinancialliabilitiesarederecognizedinwholeorinpart,thedifferencebetweenthebookvalueofthefinancialliabilitiesderecognizedandtheconsiderationpaid(includingnon-cashassetstransferredoutornewfinancialliabilitiesborne)shallbeincludedinthecurrentprofitorloss.WheretheCompanyredeemspartofitsfinancialliabilities,itshall,ontheredemptiondate,allocatetheentirebookvalueofwholefinancialliabilitiesaccordingtothecomparativefairvalueofthepartthatcontinuestoberecognizedandthede-recognizedpart.Thedifferencebetweenthebookvalueallocatedtothederecognizedpartandtheconsiderationspaid(includingnon-cashassetssurrenderedandthenewfinancialliabilitiesassumed)shallbeincludedinthecurrentprofitorloss.3.10.5Determinationmethodofthefairvalueoffinancialassetsandfinancialliabilities
Thefairvalueofafinancialinstrument,forwhichthereisanactivemarket,isthepricesquotedforittherein.Thefairvalueofafinancialinstrument,forwhichthereisnoactivemarket,isdeterminedbyusingvaluationtechniques.Atthetimeofvaluation,theCompanyadoptsthetechniquesthatareapplicableinthecurrentsituationandsupportedbyenoughavailabledataandotherinformation,selectstheinputvaluesthatareconsistentwiththefeaturesofassetsorliabilitiesasconsideredbymarketparticipantsinrelevantassetorliabilitytransactions,andgivesprioritytouserelevantobservableinputs.Unobservableinputsareusedonlyunderthecircumstancewhenitisimpossibleorunobservableinputstoobtainrelevantobservableinputs.3.10.6Testmethodandaccountingtreatmentforimpairmentoffinancialassets
(excludingreceivables)Exceptforthefinancialassetsmeasuredatfairvaluesthroughcurrentprofitorloss,thebookvalueoffinancialassetsonthebalancesheetdateshouldbechecked.Ifthereisobjectiveevidencethatafinancialassetisimpaired,provisionforimpairmentshallbemade.(1)Provisionforimpairmentofavailable-for-salefinancialassets:
Ifthefairvalueofavailable-for-salefinancialassetshassignificantlydeclinedattheendoftheperiod,oritisexpectedthatthetrendofdecreaseinvalueisnon-temporaryafterconsideringofvariousrelevantfactors,theimpairmentshallberecognized,andaccumulatedlossesfromdecreasesinfairvalueoriginallyanddirectlyincludedinowners’equityshallbealltransferredoutandrecognizedasimpairmentloss.Foravailable-for-saledebtinstrumentswhoseimpairmentlosseshavebeenrecognized,iftheirfairvaluesriseinthesubsequentaccountingperiodandsuchriseisobjectivelyrelatedtothemattersoccurringaftertherecognitionofimpairmentloss,thepreviouslyrecognizedimpairmentlossshallbereversedandrecordedintothecurrentprofitorloss.Impairmentlossesonavailable-for-saleequityinstrumentsshallnotbereversedthroughprofitorloss.(2)Provisionforimpairmentofheld-to-maturityinvestments:
Measurementofprovisionforimpairmentlossonheld-to-maturityinvestmentsistreatedinaccordancewiththemeasurementmethodofimpairmentlossonaccountsreceivable.
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3.11Provisionforbaddebtsofaccountsreceivable
3.11.1Provisionforbaddebtsofreceivableswithindividuallysignificantamount
Judgmentbasisoramountstandardfor"individuallysignificantamount":topfiveaccountsreceivableandotherreceivablesintermsoftheirindividualamountattheendoftheyear.Methodofmakingprovisionforbaddebtsofanreceivablewithindividuallysignificantamount:theimpairmenttestiscarriedoutonanindividualbasis,andthebaddebtsisprovidedbasedonthedifferencebetweenitspresentvalueofthefuturecashflowanditsbookvalueandisincludedinthecurrentprofitandloss;ifitisprovedtobeimpairedafterthetest,itisclassifiedintothecorrespondingportfolioforprovisionforbaddebts.Receivableswhoseimpairmentlosseshavebeenrecognizedinthetestarenolongerincludedintheportfolioofreceivableswithsimilarcreditriskcharacteristicsforimpairmenttesting.3.11.2Receivablewithprovisionforbaddebtbasedonportfolio
Determinationbasisofportfolio:
AgingportfolioLengthofaging
MethodofmakingprovisionforbaddebtbasedonportfolioAgingportfolioAginganalysismethodProportionsofprovisionsforbaddebtsmadebyaginganalysismethodareasfollows:
Aging
Proportionofprovisionfor
accountsreceivable(%)
Proportionofprovisionforotherreceivables(%)Within1year(inclusive)1-2years552-3years15153-4years25254-5years5050Over5years1001003.11.3Accountsreceivablewithindividuallyinsignificantamountandindividual
provisionforbaddebts:
Reasonsforindividualprovisionforbaddebts:theindividualendingbalanceofthereceivableislessthanthetopfive,isprovedtobepossiblyimpairedforreasonssuchasthedebtor’swithdrawal,bankruptcyordeath,andcannotberecoveredwiththebankruptcypropertyorsettledestate.Methodofmakingprovisionforbaddebts:Ifthereisanobjectiveevidencethattheimpairmentonreceivableshasoccurred,suchreceivablesshallbeseparatedfromrelevantportfoliotoconductimpairmenttestseparately,basedonwhichtheimpairmentlossesarerecognized.Thereceivablesofsubsidiarieswithinthescopeofconsolidationareaccruedforimpairmentaccordingtotheindividualrecognitionmethod.Forreceivablesotherthanaccountsreceivableandotherreceivables,theprovisionforimpairmentismadebasedontheindividualrecognitionmethod.3.11.4Reversalofbaddebts
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Ifthereisobjectiveevidencethatthevalueofthereceivablehasbeenrecoveredandisrelatedtotheeventsthatoccurredaftertherecognitionoftheloss,thepreviouslyrecognizedimpairmentlossisreversedandrecognizedinprofitorloss.However,thebookvalueafterthereversalshallnotexceedtheamortizedcostofthereceivableonthereversaldate,assumingnoprovisionforimpairment.3.12Inventories
3.12.1Classificationofinventories
Theinventoriesareclassifiedinto:rawmaterials,commoditystocks,low-valueconsumables,foodmaterials,fuels,etc.3.12.2Measurementofinventoriesdispatched
Thecommoditystocksareaccountedforbasedontheirsellingprices,andthedifferencebetweenthecommoditypurchasingpriceandthesellingpriceisadjustedmonthlybythecomprehensivespreadratemethod.Theinventorymaterialsaremeasuredatactualcostwhenpurchasedandwarehoused,andmeasuredusingthefirst-infirst-outmethodwhenappliedforuseanddispatched.Low-valueconsumablesareamortizedonaone-offbasiswhenappliedforuse.3.12.3Determiningbasisofthenetrealizablevalueofinventoriesandmethodfor
inventorydepreciationreserveAfterthecomprehensivecheckoftheinventoriesattheendoftheperiod,theinventorydepreciationreservesareprovidedoradjustedattheircostsornetrealizablevalues,whicheverarelower.Forinventoriesfordirectsale,includingcommoditystocksandmaterialsforsale,theirnetrealizablevaluesshallberecognizedattheestimatedsellingpricesminustheestimatedsellingexpensesandtherelevanttaxesandsurchargesinthenormaloperationprocess.Forinventoriesheldtoexecutesalescontractorservicecontract,theirnetrealizablevaluesarecalculatedonthebasisofcontractprice.IfthequantitiesheldbytheCompanyaremorethanthequantitiesorderedinsalescontracts,thenetrealizablevalueoftheexcessportionofinventoriesshallbebasedongeneralsellingprices.Theprovisionsforinventorydepreciationreservearemadeonanindividualbasisattheendoftheperiod;forinventorieswithlargequantitiesandrelativelylowunitprices,theprovisionsforinventorydepreciationreservearemadeonacategorybasis.Forinventoriesrelatedtotheproductportfoliosmanufacturedandsoldinthesamearea,andofwhichthefinalusageorpurposeisidenticalorsimilarthereto,andwhichisdifficulttoseparatefromotheritemsformeasurementpurposes,theprovisionsforinventorydepreciationreservearemadeonaportfoliobasis.Wherethepreviousfactorsaffectingthewritten-downofthevalueofinventoryhavedisappeared,theamountofwrite-downshallberesumedandbereversedfromtheoriginalprovisionforinventorydevaluationwiththereversalbeingincludedincurrentprofitandloss.3.12.4Inventorysystem
Perpetualinventorysystemisadopted.3.12.5Amortizationmethodforlow-costconsumablesandpackagingmaterials
(1)Low-costconsumablesareamortizedinalumpsum;
(2)Packagingmaterialsareamortizedinalumpsum.
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3.13Long-termequityinvestment
3.13.1Judgmentcriteriaforjointcontrolandsignificantinfluence
Jointcontrolreferstothecontrolsharedoveranarrangementinaccordancewiththerelevantstipulations,andthedecision-makingofrelatedactivitiesofthearrangementshouldnotbemadebeforethepartysharingthecontrolrightagreesthesame.WheretheCompanyexercisesjointcontrolovertheinvesteetogetherwithotherpartiestothejointventureandenjoystherightontheinvestee'snetassets,theinvesteeisajointventureoftheCompany.Significantinfluencereferstothepowertoparticipateinmakingdecisionsonthefinancialandoperatingpoliciesofanenterprise,suchasappointingrepresentativetotheboardofdirectorsorsimilarorgansofauthorityoftheinvestee,butnotthepowertocontroltheinvestee,orjointlycontrol,theformulationofsuchpolicieswithotherparties.Whereaninvestingenterpriseisabletohavesignificantinfluencesonaninvestee,theinvesteeisitsassociate.3.13.2Determinationofinitialinvestmentcost
(1)Long-termequityinvestmentsacquiredthroughbusinesscombination
Businesscombinationundercommoncontrol:iftheCompanypaysaconsiderationtothecombineeincash,bytransferringnon-cashassetsorbyassumingdebtsandissuingequitysecurities,theshareofbookvalueofitsowners'equityinthecombineeintheconsolidatedfinancialstatementsoftheultimatecontrollershallberecognized,onthecombinationdate,astheinitialcostofthelong-termequityinvestment.Ifthereisadifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthetotalofbookvaluesofthepaidcash,transferrednon-cashassetsandofassumeddebtsaswellasthefacevalueofissuedshare,thedifferenceshallbeusedtoadjustthesharepremiuminthecapitalreserve;andifthesharepremiuminthecapitalreserveisinsufficienttobeoffset,retainedearningsshallbeadjusted.Forlong-termequityinvestmentsacquiredfrombusinesscombinationsundercommoncontrol,theinvestmentinitialcostthereofshallberecognizedattheshareofbookvalueofthecombinee'snetassetsintheconsolidatedfinancialstatementsoftheultimatecontrolleronthecombinationdate.Thestockpremiumshouldbeadjustedatthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsonthecombinationdateandthesumofthebookvalueoflong-termequityinvestmentsbeforethecombinationandthebookvalueofconsiderationnewlypaidforadditionalshares;ifthereisnosufficientstockpremiumtobewrittendown,theretainedearningsareadjusted.Businesscombinationnotundercommoncontrol:theCompanyrecognizesthecombinationcostdeterminedonthecombinationdateastheinitialcostoflong-termequityinvestments.WheretheCompanycancontroltheinvesteenotundercommoncontrolfromadditionalinvestments,theinitialinvestmentcostshouldbechangedtobeaccountedforunderthecostmethodandrecognizedatthesumofthebookvalueofequityinvestmentsoriginallyheldandnewlyincreasedinvestmentcost.Theintermediaryservicecharges,includingaudit,legalservice,evaluationandconsultancyfeesandotherrelevantgeneralandadministrativeexpensesincurredforbusinesscombinationshallbechargedtocurrentprofitandlosswhentheyareincurred.Transactionexpensesincurredforissuanceofequityordebtsecuritiesasconsiderationforbusinesscombinationshallbeincludedintheinitialrecognitionamountofthoseequitysecuritiesordebtsecurities.
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(2)Long-termequityinvestmentsacquiredbyothermeans
Forlong-termequityinvestmentsacquiredfromcashpayment,theinitialinvestmentcostistheactuallypaidpurchasingcost.Forthelong-termequityinvestmentsacquiredthroughissuingtheequitysecurities,thefairvalueofequitysecuritiesissuedshallberecognizedastheinitialinvestmentcost.Onthepremisethatnon-monetaryassettradeisofcommercialnatureandthefairvalueoftheassettradedinoroutcanbemeasuredreliably,theinitialcostofalong-termequityinvestmenttradedinwithnon-monetaryassetshouldbedeterminedaccordingtothefairvalueoftheassettradedoutandrelevanttaxesandsurchargespayable,unlessanyunambiguousevidenceindicatesthatthefairvalueoftheassettradedinismorereliable;astothenon-monetaryassettradenotmeetingtheaforesaidpremise,thebookvalueoftheassettradedoutandrelevanttaxesandsurchargespayableshouldberecognizedastheinitialcostofthelong-termequityinvestment.Forlong-termequityinvestmentacquiredfromdebtrestructuring,theinitialinvestmentcostisdeterminedbasedonthefairvalue.3.13.3Subsequentmeasurementsandrecognitionofprofitorloss
(1)Long-termequityinvestmentsaccountedforundercostmethod
Long-termequityinvestmentsoftheCompanyinitssubsidiariesareaccountedforbythecostmethod.Exceptfortheactualpricepaidforacquisitionofinvestmentorthecashdividendsorprofitscontainedintheconsiderationwhichhavebeendeclaredbutnotyetdistributed,theCompanyrecognizesthecurrentinvestmentincomebasedonthecashdividendsorprofitsenjoyedbytheCompanyanddeclaredtobedistributedbytheinvestee.(2)Long-termequityinvestmentsaccountedforundertheequitymethod
TheCompany'slong-termequityinvestmentsinitsassociatesandjointventuresarecalculatedundertheequitymethod.Ifthecostofinitialinvestmentisinexcessoftheproportionofthefairvalueofthenetidentifiableassetsintheinvesteewhentheinvestmentismade,thedifferencewillnotbeadjustedtotheinitialcostoflong-termequityinvestment;ifthecostofinitialinvestmentisinshortoftheproportionofthefairvalueofthenetidentifiableassetsintheinvesteewhentheinvestmentismade,thedifferencewillbeincludedinthecurrentprofitandloss.TheCompanyshall,inaccordancewithitsattributableshareofthenetprofitorlossandothercomprehensiveincomerealizedbytheinvestee,respectivelyrecognizetheinvestmentincomeandothercomprehensiveincomeandsimultaneouslyadjustthebookvalueofthelong-termequityinvestment.TheCompanyshall,inthelightoftheprofitsorcashdividendsthattheinvesteedeclarestodistribute,reducethebookvalueofthelong-termequityinvestmentcorrespondingly.Astoanychangeinowners'equityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,theCompanyshalladjustthebookvalueofthelong-termequityinvestmentandincludesuchchangeintotheowners'equity.Whenrecognizingtheattributableshareofnetprofitorlossoftheinvestee,theCompanyshall,basedonthefairvalueofidentifiablenetassetoftheinvesteewhenitobtainstheinvestment,recognizeitsattributableshareofthenetprofitorlossoftheinvesteeaftertheadjustmentaccordingtotheCompany'saccountingpolicyandaccountingperiod.Whenholdingtheinvestment,theinvesteeshouldpreparetheconsolidatedfinancialstatements,itshallaccountfortheinvestmentincomebasedon
NotestotheFinancialStatementsPage
thenetprofit,othercomprehensiveincomeandthechangesinotherowner'sequityattributabletotheinvestee.TheCompanycalculatesitsattributableprofitorlossofinternaltransactionsthatarenotrealizedarisingamongitself,associatesandjointventuresbasedonitsattributablepercentageandoffsetit,anddeterminestheinvestmentincomeonthatbasis.UnrealizedinternaltransactionlossincurredbetweentheCompanyandtheinvesteeshallberecognizedinfullamountifsuchlossbelongstotheassetimpairment.Fortheassetinvestmentorsaletransactionswithassociatedenterprisesorjointventures,theaccountingtreatmentshouldbecarriedoutinaccordancewiththerelevantpoliciesiftheassetformsapartoftheCompany'sbusiness.
| When | the | Company | confirms | that | it | should | share | losses | of | the | investee, | treatment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| shall | be | done | in | following | sequence: | first, | writing | down | the | book | value | of | long-term | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| equity | investments. | Secondly, | if | the | book | value | of | the | long-term | equity | investments | is | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| insufficient | to | be | offset, | the | Company | shall | continue | to | recognize | the | investment | loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| to | the | extent | of | the | book | value | of | long-term | interests | which | substantially | form | the | net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| investment | in | the | investee | and | offset | the | book | value | of | the | long-term | receivable | items | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | other | items. | Finally, | after | all | the | above | treatments, | if | the | Company | is | still | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| responsible | for | any | additional | liability | in | accordance | with | the | provisions | stipulated | in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the | investment | contracts | or | agreements, | provisions | are | recognized | and | included | into | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| current | investment | loss | according | to | the | obligations | estimated | to | undertake. | If | the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| investee | achieves | profit | in | subsequent | periods, | the | Company | shall, | after | deducting | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| any | unrecognized | investment | losses, | reduce | book | value | of | estimated | liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| recognized, | restore | book | values | of | other | long-term | equity | which | form | net | investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| in | the | investee | in | substance, | and | of | long-term | equity | investment | according | to | the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| reversed | sequence | described | above, | and | recognize | investment | income | at | the | same | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| time. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) | Disposal | of | long-term | equity | investments | ||||||||||||||||||||||||||||||||||||||||||||||
| For | the | disposal | of | long-term | equity | investments, | the | difference | between | the | book | ||||||||||||||||||||||||||||||||||||||||
| value | and | the | actual | price | thereof | shall | be | included | in | the | current | profit | or | loss. | |||||||||||||||||||||||||||||||||||||
| Where | a | long-term | equity | investment | is | accounted | for | under | the | equity | method, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| accounting | treatment | should | be | made | on | the | part | which | is | originally | included | in | other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| comprehensive | income | according | to | corresponding | ratio | by | using | the | same | basis | for | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the | investee | to | directly | dispose | of | the | relevant | assets | or | liabilities | when | the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| investments | are | disposed | of. | Owner's | equity | recognized | from | changes | in | other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| owner's | equity | of | the | investee | other | than | net | profit | and | loss, | other | comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| income | and | the | profit | distribution | should | be | included | in | the | current | profit | and | loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| according | to | the | proportion. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| In | case | the | joint | control | or | significant | influence | over | the | investee | is | lost | for | disposing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| part | of | equity | investments | or | other | reasons, | the | remaining | equity | will | be | changed | to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| be | accounted | for | according | to | the | recognition | and | measurement | principles | of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| financial | instruments, | while | the | difference | between | the | fair | value | and | the | book | value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| on | the | date | of | the | loss | of | joint | control | or | significant | influence | should | be | included | in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the | current | profit | or | loss. | As | to | other | comprehensive | income | recognized | based | on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| measurement | of | the | original | equity | investment | under | the | equity | method, | accounting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| treatment | shall | be | made | on | the | same | basis | as | would | be | required | if | the | investee | had | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| directly | disposed | of | the | assets | or | liabilities | related | thereto | when | measurement | under | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the | equity | method | is | terminated. | Owner's | equity | recognized | from | the | investee's | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| changes | in | other | owner's | equity | other | than | net | profit | or | loss, | other | comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| income | and | profit | distribution | should | all | transferred | to | the | current | profit | and | loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| when | the | equity | method | is | no | longer | adopted. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WheretheCompanylosesthecontrolovertheinvesteeduetodisposalofpartialequityinvestmentsorotherreasons,whenitpreparesseparatefinancialstatements,
NotestotheFinancialStatementsPage
theremainingequityafterdisposalthatcanjointlycontrolorhavesignificantinfluenceontheinvesteewillbemeasuredattheequitymethod,andtheremainingequityshouldbedeemedtohavebeenadjustedatequitymethodonacquisition.Iftheremainingequityafterdisposalcannotexercisejointcontrolorsignificantinfluenceovertheinvestee,suchremainingequityshallbesubjecttotheaccountingtreatmentaccordingtotherecognitionandmeasurementstandardsoffinancialinstruments,andthedifferencebetweenitsfairvalueandbookvalueonthedatewhencontrollossesisincludedincurrentprofitorloss.Wheretheequitydisposedofareacquiredthroughbusinesscombinationasaresultofadditionalinvestmentandotherreasons,iftheremainingequitiesafterdisposalarecalculatedunderthecostmethodorequitymethoduponpreparationofseparatefinancialstatements,othercomprehensiveincomeandotherowners'equitiesrecognizedinequityinvestmentsheldbeforetheacquisitiondateasaresultofemploymentofequitymethodforaccountingshallbecarriedforwardprorata;iftheremainingequitiesafterdisposalarecalculatedaccordingtotheprovisionsonRecognitionandMeasurementofFinancialInstruments,othercomprehensiveincomeandotherowners'equitieswillallbecarriedforward.3.14Investmentproperties
Theinvestmentpropertiesrefertothepropertiesheldforearningrentalsor/andcapitalappreciation,includingleasedlanduseright,landuserightheldfortransferuponappreciation,andleasedbuilding(includingself-builtbuildingsorbuildingsdevelopedforrentingorbuildingsunderconstructionordevelopmentforfuturerenting).TheCompanymeasurestheexistinginvestmentpropertiesbyusingthecostmodel.Forinvestmentpropertymeasuredbyusingthecostmodel,thebuildingsforleaseshallbedepreciatedbyusingpoliciesthesameasusedforfixedassetsoftheCompany,andthelanduserightsforleaseshallbeamortizedbyusingthesamepoliciesasapplicabletointangibleassets.3.15Fixedassets
3.15.1Recognitioncriteriaoffixedassets
Fixedassetsrefertotangibleassetsheldforthepurposeofproducingcommodities,providingservices,rentingorbusinessmanagementwithusefullivesexceedingoneyear.Fixedassetsarerecognizedwhentheysimultaneouslymeetthefollowingconditions:
(1)Itisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintothe
Company;and(2)Thecostsofthefixedassetscanbemeasuredreliably.3.15.2Classificationoffixedassets
Fixedassetscanbeclassifiedinto:buildingsandconstructions,electronicequipment,transportequipment,electronicentertainmentequipment,otherequipmentanddecorationimprovements.3.15.3Initialmeasurementoffixedassets
Fixedassetsshallbeinitiallymeasuredatactualcostsonacquisition.Thecostsofexternallyacquiredfixedassetsshallbedeterminedbytheirpurchaseprices,relatedtaxesandsurchargesandanyattributabletransportexpenses,loadingandunloadingexpenses,installationexpensesandprofessionalserviceexpensesincurredtopreparethefixedassetsforitsserviceablecondition.Ifthepaymentforafixedassetisdelayedbeyondthenormalcreditconditionsanditisofthefinancingnature,thecostofthefixedassetshallbedeterminedonthebasisofthecurrentvalueofthepurchaseprice.
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Costsofself-builtfixedassetsconsistofnecessaryexpendituresincurredbeforepreparingtheassettoreachtheconditionforitsintendeduse.Forfixassetsobtainedindebtrestructuringbydebtorsforthesettlementofhisliabilities,theirbook-entryvalueshouldbeinitiallystatedbasedontheirfairvalues.Differencesbetweenthebookvaluesandthefairvaluesofthefixassetsareincludedinthecurrentprofitandloss;Iftheexchangeofnon-monetaryassetshascommercialsubstance,andthefairvalueoftheseassetscanbemeasuredreliably,thebook-entryvalueoffixedassetstradedinisdeterminedonthebasisofthefairvalueofthefixedassetstradedoutunlessthereisanyconclusiveevidencethatthefairvalueoftheassetstradedinismorereliable;iftheexchangeofnon-monetaryassetsdoesnotmeettheabovecriteria,thecostofthefixedassetstradedinshouldbethebookvalueoftheassetstradedoutandrelevanttaxesandsurchargespayable,andnoprofitorlossshallberecognized.Forfixedassetsacquiredfrombusinesscombinationundercommoncontrol,theirbook-entryvaluesarerecognizedatthebookvaluesofthecombinee;forfixedassetsacquiredfrombusinesscombinationnotundercommoncontrol,theirbook-entryvaluesarerecognizedatthefairvalue.TheCompanyshallstatetheassetsacquiredunderfinanceleaseatthelowerofthebookvalueoftheleasedassetsontheleasebeginningdateorthepresentvalueoftheminimumleasepayments.3.15.4Provisionmethodfordepreciationoffixedassets
Fixedassetsaredepreciatedbasedonthestraight-linemethod,theirdepreciationratesaredeterminedbasedoncategoryoffixedasset,estimatedeconomicusefulliveandresidualvalues(5%oftheoriginalvalue)asfollows:
Assettype
Estimateduseful
lives(year)
Estimatednetresidualvalue
rate(%)
Annualdepreciation
rate(%)Buildingsandconstructions20-4054.75-2.37Machineryequipment8-20511.87-4.75Electronicentertainmentequipment5-16519-5.93Transportationequipment7-12513.57-7.91Otherequipment8511.87
3.16Constructioninprogress
Thebook-entryvaluesofthefixedassetsarestatedattotalexpendituresincurredbeforereachingworkingconditionfortheirintendeduse.Whereaconstructioninprogressreachestheworkingconditionforitsintendedusebutthefinalaccountforcompletionisnotmadeyet,itshallbetransferredintofixedassetsfromthedatewhenitreachestheworkingconditionforintendeduseattheestimatedvalueaccordingtotheprojectbudget,constructionpriceoractualcost,andthedepreciationofthesaidfixedassetsshallbeaccruedaccordingtotheCompany'sdepreciationpoliciesapplicabletofixedassets.Afterthefinalaccountforcompletedprojectisdone,theCompanyadjuststheoriginalestimatedvalueofthefixedassetinaccordancewiththeactualcost,butdoesnotadjusttheprovisionforsuchdepreciationthathadbeenaccrued.
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3.17Borrowingcosts
3.17.1Recognitionprinciplesofcapitalizationofborrowingcosts
Borrowingcostsincludeinterestthereon,amortizationofdiscountsorpremiums,ancillaryexpensesandexchangedifferencesincurredonaccountofforeigncurrencyborrowings,etc.TheborrowingcostsincurredtotheCompanyanddirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalizationshouldbecapitalizedandrecordedintorelevantassetcosts;otherborrowingcostsshouldberecognizedascostsaccordingtotheamountincurredandbeincludedintocurrentprofitandloss.Assetsmeetingthecapitalizationrequirementsrefertofixedassets,investmentpropertiesandinventories,etc.thatneedtobepurchased,constructedorproducedforalongtimetobeavailableforintendeduseorsale.Borrowingcostsmaybecapitalizedonlywhenallthefollowingconditionsaremet:
(1)Assetdisbursements,whichincludethoseincurredbycashpayment,thetransferof
non-cashassetsortheundertakingofinterest-bearingdebtsforacquiringandconstructingorproducingassetseligibleforcapitalization,havealreadybeenincurred;(2)Borrowingcostshavealreadybeenincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessaryto
preparetheassetsfortheirintendeduseorsalehavealreadybeenstarted.3.17.2Capitalizationperiodofborrowingcosts
Capitalizationperiodreferstotheperiodfromthebeginningofcapitalizationtotheceaseofcapitalization,excludingtheperiodofcapitalizationsuspensionofborrowingcosts.Capitalizationofborrowingcostsshouldceasewhentheacquiredandconstructedorproducedassetseligibleforcapitalizationhavereachedtheworkingconditionfortheirintendeduseorsale.Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchassetsshouldbeceased.Whensomeprojectsamongtheacquiredandconstructedorproducedassetseligibleforcapitalizationarecompletedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchprojectsshouldbeceased.3.17.3Periodofcapitalizationsuspension
Iftheacquisition,constructionorproductionactivitiesofassetseligibleforcapitalizationareabnormallyinterruptedandsuchconditionlastsformorethanthreemonths,thecapitalizationofborrowingcostsshouldbesuspended;iftheinterruptionisnecessaryproceduresfortheacquired,constructedorproducedassetseligibleforcapitalizationtoreachtheworkingconditionsfortheirintendeduseorsale,theborrowingcostscontinuetobecapitalized.Borrowingcostsincurredduringtheinterruptionarerecognizedasthecurrentprofitorlossandcontinuetobecapitalizeduntiltheacquisition,constructionorproductionoftheassetsrestarts.
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3.17.4Calculationmethodofcapitalizationamountofborrowingcosts
Asforspecialborrowingsforacquiring,constructingorproducingassetseligibleforcapitalization,borrowingcostsofspecialborrowingsactuallyincurredinthecurrentperiodlesstheinterestincomefromundrawnborrowingsdepositedinthebankorinvestmentincomefromtemporaryinvestmentshouldberecognizedasthecapitalizationamountofborrowingcosts.Asforgeneralborrowingsusedforacquiringandconstructingorproducingassetseligibleforcapitalization,theinterestofgeneralborrowingstobecapitalizedshouldbecalculatedbymultiplyingtheweightedaverageofassetdisbursementsofthepartofaccumulatedassetdisbursementsexceedingspecialborrowingsatendofeachmonthbythecapitalizationrateofusedgeneralborrowings.Thecapitalizationrateiscalculatedbyweightedaverageinterestrateofgeneralborrowings.Wheretherearediscountsorpremiumsonborrowings,amountsofdiscountsorpremiumsshallbeamortizedineachaccountingperiodattheeffectiveinterestmethod,andtheamountofinterestforeachaccountingperiodshouldbeadjusted.3.18Intangibleassets
3.18.1Measurementofintangibleassets
(1)TheCompanyinitiallymeasuresintangibleassetsatcostonacquisition:
Thecostsofexternallypurchasedintangibleassetsincludepurchaseprices,relevanttaxesandsurchargesandotherdirectlyattributableexpendituresincurredtopreparetheassetsfortheirintendeduses.Ifthepaymentforanintangibleassetisdelayedbeyondthenormalcreditconditionsanditisofthefinancingnature,thecostoftheintangibleassetshallbedeterminedonthebasisofthepresentvalueofthepurchaseprice.Theintangibleassetsacquiredwhichthedebtorusestopaybackthedebtindebtrestructuringshouldberecognizedatthefairvalueoftheintangibleassets.Thedifferencebetweenthebookvalueofrestructureddebtsandthefairvalueofintangibleassetsusedtopaybackthedebtshouldbeincludedinthecurrentprofitorloss;Onthepremisethatnon-monetaryassetstradeisofcommercialnatureandthefairvalueoftheassetstradedinoroutcanbemeasuredreliably,thebook-entryvaluesofintangibleassetstradedinwithnon-monetaryassetsshouldberecognizedatthefairvalueoftheassetstradedout,unlessanyunambiguousevidenceindicatesthatthefairvaluesoftheassetstradedinaremorereliable;astothenon-monetaryassetstradenotmeetingtheaforesaidpremise,thebookvalueoftheassetstradedoutandrelatedtaxesandsurchargespayableshouldberecognizedasthecostoftheintangibleassetstradedin,andnoprofitorlosswillberecognized.Forintangibleassetsacquiredfrombusinesscombinationundercommoncontrol,theirbook-entryvaluesarerecognizedatthebookvaluesofthecombinee;forintangibleassetsacquiredfrombusinesscombinationnotundercommoncontrol,theirbook-entryvaluesarerecognizedatthefairvalue.Costsofintangibleassetsdevelopedinternallyandindependentlyinclude:thecostsofmaterialsandlaborservicesusedtodeveloptheintangibleassets,theregistrationfee,theamortizationofotherpatentsandfranchiseusedintheprocessofdevelopment,theinterestexpensesmeetingtheconditionforcapitalization,andotherdirectexpensesforpreparingtheintangibleassetsfortheirintendeduse.
NotestotheFinancialStatementsPage
(2)Subsequentmeasurement
Theusefullivesoftheintangibleassetsareanalyzedanddeterminedonacquisition.Intangibleassetswithdefiniteusefullivesshallbeamortizedwiththestraight-linemethodwithintheperiodwhentheintangibleassetsgenerateeconomicbenefitsfortheCompany;ifthesaidperiodcannotbeforecast,theintangibleassetsshallbedeemedasthosewithindefiniteusefullivesandshallnotbeamortized.3.18.2Estimateoftheusefullifeoftheintangibleassetswithdefiniteusefullives
Item
Estimateduseful
life
BasisLanduseright50years
UsefullifeprescribedintheCertificateofLandUseRightAttheendofeachreportingperiod,theCompanyshallreviewtheusefullivesandamortizationmethodofintangibleassetswithdefiniteusefullives.Uponreview,theusefullivesandamortizationmethodsoftheintangibleassetsattheendoftheyeararenotdifferentfromthoseestimatedbefore.3.18.3Determinationbasisofintangibleassetswithindefiniteusefullives
Asatthebalancesheetdate,theCompanyhadnointangibleassetswithindefiniteusefullife.3.19Long-termassetsimpairment
Forthelong-termequityinvestments,investmentproperties,fixedassets,constructioninprogress,intangibleassets,andotherlong-termassetsmeasuredatcostmodel,iftherearesignsofimpairment,animpairmenttestwillbeconductedonthebalancesheetdate.Iftheresultoftheimpairmenttestshowsthattherecoverableamountoftheassetislowerthanitsbookvalue,theprovisionforimpairmentshallbemadeandincludedinimpairmentloss.Therecoverableamountisdeterminedatthehigherofthenetofthefairvaluelessdisposalcostsandthepresentvalueoftheexpectedfuturecashflows.Provisionforassetsimpairmentismadeonindividualassetbasis.Ifitisdifficulttoestimatetherecoverableamountoftheindividualasset,theGroupshallestimatetherecoverableamountoftheassetgroupthattheindividualassetbelongsto.Theassetgroupistheminimumassetgroupthatcanindependentlygeneratethecashinflow.Theaboveassetimpairmentlossshallnotbereversedinsubsequentaccountingperiodsoncerecognized.3.20Long-termdeferredexpenses
Long-termdeferredexpensesrefertovariousexpenseswhichhavebeenalreadyincurredbutwillbeborneinthereportingperiodandinthefuturewithanamortizationperiodofoveroneyear.3.20.1Amortizationmethod
Long-termdeferredexpensesareamortizedevenlyoverthebeneficialperiod.3.20.2Amortizationyears
ItemAmortizationyearsHotelexteriordecoration4yearsFirestairsrenovation4yearsRenovationofguestroomsinBuildingC5yearsVillarenovation5yearsSwimmingpoolrenovation5years
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3.21Employeecompensation
3.21.1Short-termcompensation
DuringtheaccountingperiodinwhichemployeesprovideservicetotheCompany,theshort-termremunerationactuallyincurredisrecognizedasliabilitiesandincludedintothecurrentprofitorlossortheassets-relatedcost.ThesocialinsurancepremiumandthehousingprovidentfundpaidbytheCompanyforitsemployees,togetherwiththelaborunionexpendituresandemployeeeducationdrewasrequiredareusedtocalculateanddeterminetherelevantemployeecompensationamountbasedontheprescribedaccrualbasisandaccrualproportionduringtheaccountingperiodinwhichtheemployeesprovideservicestotheCompany.Employeebenefitsinthenon-monetaryformshallbemeasuredatfairvalue.3.21.2Dismissalwelfare
WhentheCompanyfailstounilaterallywithdrawthedismissalbenefitsofferedduetotheterminationofthelaborrelationplanorlayoffproposal,orconfirmsthecostsorfeesassociatedwiththereorganizationinvolvingthepaymentofthedismissalbenefits(whicheverisearlier),theemployeecompensationliabilitiesarisingfromtheconfirmationofdismissalbenefitsareincludedinthecurrentprofitorloss.3.21.3Post-employmentbenefits
TheCompanypaysthebasicendowmentinsurancepremiumsandunemploymentinsuranceforemployeesaccordingtotherelevantprovisionsofthelocalgovernments.DuringtheaccountingperiodwhenemployeesservetheCompany,thepaidamountwhichiscalculatedbasedonthepaymentbaseandproportionasstipulatedintheprovisionsofthelocalplaceisrecognizedasliabilitiesandincludedinthecurrentprofitorlossorassets-relatedassetscost.3.22Estimatedliabilities
WhentheCompanyinvolvesinproceedings,debtguarantees,onerouscontractsandreorganizationevents,ifsucheventsmayrequiredeliveryofassetsorrenderingofservicesinthefutureandtheamountsofsucheventscanbereliablymeasured,sucheventsarerecognizedasestimatedliabilities.3.22.1Recognitioncriteriaofestimatedliabilities
Whenanobligationrelatingtoacontingencymeetsallthefollowingconditionsatthesametime,itisrecognizedasanestimatedliability:
(1)SuchobligationisapresentobligationoftheCompany;(2)Theperformanceofthisobligationmayveryprobablyleadtotheflowofeconomic
interestsoutoftheCompany;and(3)Theamountoftheobligationcanbemeasuredreliably.3.22.2Measurementmethodofestimatedliabilities
EstimatedliabilitiesoftheCompanyareinitiallymeasuredasthebestestimateofexpensesrequiredfortheperformanceoftherelevantpresentobligations.Whendeterminingthebestestimates,theCompanycomprehensivelyconsiderstherisks,uncertainties,timevalueofmoney,andotherfactorsrelatingtothecontingencies.Ifthetimevalueofmoneyissignificant,thebestestimateswillbedeterminedafterdiscountofrelevantfuturecashoutflows.Thebestestimatesshallbetreatedasfollowsindifferentcircumstances:
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Ifthereiscontinuousrange(orinterval)forthenecessaryexpenses,andprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareequal,thebestestimateshouldbedeterminedattheaverageamountofupperandlowerlimitswithintherange.Ifthereisnocontinuousrange(orinterval)forthenecessaryexpenses,orprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareunequalalthoughsucharangeexists,incasethatthecontingencyinvolvesasingleitem,thebestestimateshallbedeterminedatthemostlikelyoutcome;ifthecontingencyinvolvestwoormoreitems,thebestestimatesshouldbedeterminedaccordingtoallthepossibleoutcomeswiththeirrelevantprobabilities.WhenallorpartoftheexpensesnecessaryforthesettlementofestimatedliabilitiesoftheCompanyareexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertaintobereceived.Thecompensationrecognizedshallnotexceedthebookvalueoftheestimatedliabilities.3.23Revenue
3.23.1Recognitionandmeasurementprinciplesforrevenuefromsaleofgoods
(1)Generalrecognitionandmeasurementprinciplesforrevenuefromsalesofgoods
RevenuefromsalesofgoodsisrecognizedwhentheCompanyhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods;theCompanyretainsneithercontinuousmanagementrightsassociatedwithownershipofthegoodssoldnoreffectivecontroloverthegoodssold;therelevantamountofincomecanbemeasuredreliably;itishighlylikelythattheeconomicbenefitsassociatedwiththetransactionwillflowintotheCompany;andtherelevantamountofcostincurredortobeincurredcanbemeasuredreliably.(2)RecognitioncriteriaofrevenuefromsaleofgoodsoftheCompanyandspecific
judgmentcriteriaofrecognitiontimeIntheprovisionofhotelhousingservicesatthesametime,theCompanyprovidesgoodstocustomersandwillpreparedailysaleslistafterconfirmingwiththeRoomsDepartmentandthehotelfrontdesk.Basedonthesaleslist,thefinancedepartmentconfirmsthatthemajorrisksandrewardsofownershipofthegoodshavebeentransferredtothecustomerandthenthesalesrevenueisrecognized.3.23.2Recognitionandmeasurementprinciplesofrevenuefromrenderingofservice
(1)Forthehotelrooms,catering(breakfast)andotherservicestobeprovidedbythe
Company,aftertheyareprovided,andtheCompanycheckswiththesales
departmentandthefrontcheck,theCompanywillpreparethedailysalesreportsand
accountsreceivablelisttothefinancedepartment,whichwillreviewthesame,after
which,therevenuewillberecognized.(2)Fortherevenuefromrestaurantsandvenuescontractedout,theywillberecognized
inaccordancewiththeperiodstipulatedinthecontractoragreementandthe
collectiontiming.3.23.3Recognitionofrevenuefromtransferringuserightofassets
WhentheeconomicbenefitsrelatingtothetransactionsispossibletoflowintotheCompanyandtheamountofrevenuecanbemeasuredreliably,revenuesshouldberecognized.Revenuesfromtransferofrighttouseassetsarerecognizedunderthefollowingcircumstances:
(1)Interestincomeisdeterminedbasedonthetimewhenthemonetaryfundsarelent
andtheeffectiverate.(2)Theamountofrevenuesfromusageisdeterminedbasedonthechargingtimeand
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methodasagreedinrelevantcontractoragreement.3.24Governmentgrants
3.24.1Type
Governmentgrantsrefertothemonetaryornon-monetaryassetsobtainedbytheCompanyfromthegovernmentforfree.Governmentgrantsaredividedintoasset-relatedgovernmentgrantsandincome-relatedgovernmentgrants.Asset-relatedgovernmentgrantsrefertogovernmentgrantsobtainedbytheCompanyforforminglong-termassetsbyacquisition,constructionorothermanners.Income-relatedgovernmentgrantsrefertogovernmentgrantsexcludingtheasset-relatedgovernmentgrants.3.24.2Recognitiontimeandmeasurement
Governmentgrantscanberecognizedwhensimultaneouslymeetingthefollowingconditions:
1)Theenterprisecanmeetconditionsattachedtogovernmentgrants;and2)Theenterprisecanreceivegovernmentgrants.Ifagovernmentgrantisamonetaryasset,itshallbemeasuredattheamountreceivedorreceivable.Governmentgrantsshallbemeasuredatreceivableswhenthereisstrongevidenceattheendoftheperiodthatsuchgrantscomplywiththerelevantconditionsprescribedbythefinancialsupportpoliciesandthefinancialsupportfundsareexpectedtobereceived.Otherfinancialgrantsshallbeconfirmedaccordingtotheamountofmoneyreceived.Ifgovernmentgrantsarenon-monetaryassets,theyshallbemeasuredatitsfairvalue;andifthefairvaluecannotbeobtainedinareliableway,theyshallbemeasuredatanominalamount.3.24.3Accountingtreatment
(1)Asset-relatedgovernmentgrants
shallbeusedtooffsetthebookvalueofrelevantassetsorrecognizedasdeferredincome.Ifasset-relatedgovernmentgrantsarerecognizedasdeferredincome,theyshallbeincludedinprofitorlossbystagesbyareasonableandsystematicmethodwithintheusefullivesofrelevantassets.Governmentgrantsmeasuredatthenominalamountaredirectlyincludedinthecurrentprofitorloss.Whererelevantassetsaresold,transferred,scrapedordamagedbeforetheendoftheirlives,balanceoftherelevantunallocateddeferredincomeistransferredtothecurrentprofitandlossonassetdisposal.(2)Accountingtreatmentwillbeconductedforgovernmentgrantsassociatedwith
incomeinaccordancewiththefollowingprovisions:
1)governmentgrantsassociatedwithincomethatareusedtorecoverrelevantcosts
orlossesoftheenterpriseinsubsequentperiodarerecognizedasdeferredincomeandincludedinthecurrentprofitorlosswhenrelevantcostsorlossesarerecognized;2)Ifgovernmentgrantsrelatedtoincomeareusedtocompensatetherelevantcosts
andlossesthathaveoccurred,suchgovernmentgrantsshouldbedirectlyincludedinthecurrentprofitorloss.3)Whereboththeasset-relatedgovernmentgrantsandincome-relatedgovernment
NotestotheFinancialStatementsPage
grantsarecovered,theaccountingtreatmentshouldbedonerespectivelybydistinguishingtheasset-relatedgovernmentgrantsandincome-relatedgovernmentgrants;ifitisdifficulttodistinguish,thesegovernmentgrantswillbeclassifiedintotheincome-relatedgovernmentgrantsasawhole.(3)Anygovernmentgrantrelatedtothedailyactivitiesofanenterpriseshallbe
includedintootherincomeinaccordancewiththebusinessnature.Governmentgrantsunrelatedtothedailyactivitiesofenterprisesshallberecordedasnon-operatingrevenuesandexpenditures.3.25Deferredtaxassetsanddeferredtaxliabilities
Deferredtaxassetsarerecognizedfordeductibletemporarydifferencestotheextentthatitshallnotexceedthetaxableincomeprobablyobtainedinfutureperiodthatcanbeusedfordeductingthedeductibletemporarydifferences.Taxabletemporarydifferencesarerecognizedasdeferredtaxliabilitiesinadditiontospecialcircumstances.Specialcircumstancesinwhichdeferredincometaxassetsordeferredincometaxliabilitiesshallnotberecognizedinclude:theinitialrecognitionofgoodwill;othertransactionsormattersexcludingbusinesscombinations,whichaffectneitheraccountingprofitsnorthetaxableincome(ordeductiblelosses)whenoccurred.WhentheCompanyhasthestatutoryrighttodosettlementwiththenetamounts,andhastheintentiontodosoortherecoveryofassetsandthesettlementofliabilitiesareachievedsimultaneously,theCompanyshallpresentitscurrentincometaxassetsandcurrentincometaxliabilitiesatthenetamountsastheresultofoneoffsettinganother.WhentheCompanyhasthelegalrightstobalanceincometaxassetsandincometaxliabilitiesforthecurrentperiodwithnetsettlement,anddeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxwhichareimposedonthesametaxpayingsubjectbythesametaxcollectionauthorityorondifferenttaxpayingsubjects,but,ineachimportantfutureperiodinconnectionwiththereverseofdeferredincometaxassetsandliabilities,theinvolvedtaxpayingsubjectintendstobalanceincometaxassetsandliabilitiesforthecurrentperiodwithnetsettlementatthetimeofobtainingassetsanddischargingliabilities,deferredincometaxassetsanddeferredincometaxliabilitiesshallbepresentedbasedonthenetamountafteroffset.3.26Operatinglease
3.26.1Accountingtreatmentofassetsleased
TherentalfeespaidfortheassetleasedbytheCompanywillbeamortizedovertheentireleasetermwithoutdeductingrent-freeperiodaccordingtothestraight-linemethodandincludedintheexpensesforthecurrentperiod.TheinitialdirectcostsrelatedtotheleasetransactionspaidbytheCompanyareincludedinthecurrentexpenses.WhenassetslessorbearscostsrelatedtotheleasebornebytheCompany,theCompanyshalldeductthepartofexpensesfromthetotalrentsandamortizetherentsafterdeductionovertheleasetermandincludethemincurrentexpenses.
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3.26.2Accountingtreatmentofleasing-outassets
LeasefeesreceivedbytheCompanyfromleasingassetsshallbeamortizedatstraight-linemethodoverthewholeleaseperiodincludingrent-freeperiod,andshallberecognizedasleaseincome.InitialdirectcostsrelatingtoleasetransactionsincurredbytheCompanyshallberecognizedasthecurrentexpenses;iftheamountsaresignificant,theyshallbecapitalizedandincludedinthecurrentincomeonthesamebasisastherecognitionofleaseincome.WhentheCompanybearscostsrelatedtotheleasebornebytheleasee,theCompanyshalldeductthepartofexpensesfromthetotalrentsandamortizetherentsafterdeductionovertheleaseterm.3.27Changesinsignificantaccountingpoliciesandaccountingestimates
3.27.1Changesinaccountingpolicies
TheMinistryofFinancepromulgatedtheCircularoftheMinistryofFinanceonRevisingandIssuingthe2018VersionsofGeneralCorporateFinancialStatementTemplates(CaiKuai[2018]No.15)onJune15,2018andrevisedthegeneralcorporatefinancialstatementtemplates.MainimpactsoftheCompany'simplementationoftheaboveprovisionsareasfollows:
Contentofandreasonforchangesinaccountingpolicies
Proceduresfor
examinationandapproval
Nameandamountofaffected
reportitem
(1)Inthebalancesheet,"notesreceivable"and"accountsreceivable"shallbemergedinto"notesreceivableandaccountsreceivable"forpresentation;"notespayable"and"accountspayable"shallbemergedinto"notespayableandaccountspayable"forpresentation;"interestreceivable"and"dividendsreceivable"shallbemergedinto"otherreceivables"forpresentation;"interestpayable"and"dividendspayable"shallbemergedinto"otherpayables"forpresentation;"disposaloffixedassets"shallbemergedinto"fixedassets"forpresentation;"projectmaterials"shallbemergedinto"constructioninprogress"forprogress;"specialpayable"shallbemergedinto"long-termpayables"forpresentation.Thecomparativedatashallbeadjustedaccordingly.
ResolutionoftheBoardofDirectors
"Notesreceivable"and"accountsreceivable"aremergedinto"notesreceivableandaccountsreceivable"forpresentation,andtheamountinthecurrentperiodisRMB426,434.87andtheamountinthelastperiodisRMB594,130.89;"notespayable"and"accountspayable"aremergedinto"notespayableandaccountspayable"forpresentation,andtheamountinthecurrentperiodisRMB1,607,835.81andtheamountinthelastperiodisRMB2,161,172.26.“Interestreceivable”and“dividendsreceivable”areincludedin“otherreceivables”forpresentation;“interestpayable”and“dividendspayable”areincludedin“otherpayables”forpresentation;“disposaloffixedassets”isincludedin“fixedassets”forpresentation;“projectmaterials”isincludedin“constructioninprogress”forpresentation;“specialpayables”isincludedin“long-termpayables”forpresentation.Thereisnobalanceinthecurrentperiodandthelastperiod.
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Contentofandreasonforchangesinaccountingpolicies
Proceduresfor
examinationandapproval
Nameandamountofaffected
reportitem
(2)Intheincomestatement,
theitem"researchanddevelopmentexpenses"shallbeadded,andthe"researchanddevelopmentexpenses"originallyunderthe"generalandadministrativeexpenses"shallbereclassifiedintothe"researchanddevelopmentexpenses"forseparatepresentation;intheincomestatement,theitems"Including:interestexpenses"and"interestincome"shallbeaddedundertheitem"financialexpenses".Thecomparativedatashallbeadjustedaccordingly.
ResolutionoftheBoardofDirectors
Theresearchanddevelopmentexpensesoriginallyincludedinitem“generalandadministrativeexpenses"shallbereclassifiedintoitem"researchanddevelopmentexpenses"forseparatepresentation.Therewasnoresearchanddevelopmentexpenseoccurredinthecurrentandthepriorperiod;items"interestcost"and"interestrevenue"shallbeaddedunderitem"financialexpenses"forpresentation.Therewasnointerestcostoccurredinthecurrentandthepriorperiod;theinterestrevenuewasRMB232,899.41in2018andRMB291,701.13in2017.
(3)Inthestatementofchanges
inowners'equity,theitem"changeinthedefinedbenefitplancarriedforwardtoretainedearnings"shallbeadded.Thecomparativedatashallbeadjustedaccordingly.
ResolutionoftheBoardofDirectors
Inthestatementofchangesinowners'equity,theitem"changeinthedefinedbenefitplancarriedforwardtoretainedearnings"isadded.Thereisnochangeinthedefinedbenefitplancarriedforwardtoretainedearningsoccurredinthecurrentperiodandthelastperiod.3.27.2Changesinaccountingestimates
TherewasnochangeintheprincipalaccountingestimatesoftheCompanyduringthereportingperiod.MajortaxtypesandtaxratesapplicabletotheCompany
TaxesBasisfortaxassessmentTaxrate
Valueaddedtax(VAT)
OutputVATiscalculatedbasedontaxablesalesrevenueandservicerevenuecalculatedinaccordancewithtaxlawsandVATpayableortaxablesalesrevenueshallbethedifferenceafterdeductingtheinputVATdeductibleinthesameperiod
5%,6%,10%,
11%,16%,
17%UrbanmaintenanceandconstructiontaxLeviedbasedonVATpayable7%EducationsurtaxLeviedbasedonVATpayable3%LocaleducationsurtaxLeviedbasedonVATpayable2%Housingpropertytax
Remainingvalueafterdeducting30%fromtheoriginalvalueofthehouse(includingtheoccupiedlandprice),andrentrevenue1.2%,12%
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TaxesBasisfortaxassessmentTaxrateLandusetaxLandareaRMB18/m
EnterpriseincometaxLeviedbasedonthetaxableincome25%Remark:AccordingtotheDocumentCaiShui[2018]No.32,asofMay1,2018,thetaxrateforVATtaxablesalesorimportedgoodsofataxpayershallberespectivelyadjustedto16%and10%fromtheoriginal17%and11%.5.1Monetaryfunds
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Cashonhand347,782.65264,156.33Bankdeposits15,016,572.659,417,450.83Total15,364,355.309,681,607.16Remark:therearenoamountsrestrictedforuseduetomortgageorfreeze,depositedinoverseasinstitutions,andhavingpotentialriskinrecovery.5.2Notesreceivableandaccountsreceivable
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018NotesreceivableAccountsreceivable426,434.87594,130.89Total426,434.87594,130.89
NotestotheFinancialStatementsPage27
5.2.1Disclosureofaccountsreceivablebycategory
Category
BalanceasatDecember31,2018BalanceasatJanuary1,2018BookbalanceProvisionforbaddebts
Bookvalue
BookbalanceProvisionforbaddebts
BookvalueAmountProportion(%)Amount
Proportionofprovision(%)
AmountProportion(%)Amount
Proportionofprovision(%)AccountreceivableswithindividuallysignificantamountandindividualprovisionforbaddebtsAccountsreceivablewithprovisionforbaddebtsmadebyportfolio500,510.47100.0074,075.6014.80426,434.87662,651.14100.0068,520.2510.34594,130.89AccountsreceivablewithindividuallyinsignificantamountandindividualprovisionforbaddebtsTotal500,510.47100.0074,075.60426,434.87662,651.14100.0068,520.25594,130.89
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Inportfolio,accountsreceivablewiththeprovisionforbaddebtsmadebytheaginganalysismethod:
Aging
BalanceasatDecember31,2018Accountsreceivable
Provisionfor
baddebts
Proportionofprovision(%)Within1year409,556.671-2years566.0028.305.002-3years785.00117.7515.003-4years18,633.004,658.2525.004-5years3,397.001,698.5050.00Over5years67,572.8067,572.80100.00Total500,510.4774,075.60
5.2.2Provision,reversalorrecoveryofprovisionforbaddebtsin2018
Theprovisionforbaddebtsmadein2018amountedtoRMB5,555.35.5.2.3TopfiveaccountsreceivableintermsoftheirbalanceasatDecember31,2018
collectedbythedebtor
Nameofentity
BalanceasatDecember31,2018Accountsreceivable
Proportioninthetotalaccountsreceivable(%)
Provisionfor
baddebtsShanghaiHechengInternationalTravelServiceCo.,Ltd.256,931.2051.33BeijingTongchengHuadingInternationalTravelServiceCo.,Ltd.SuzhouBranch101,510.0020.28GuangzhouInstituteofDesign38,980.007.7938,980.00YangpuHuayuRoadandBridgeTechnologyCo.,Ltd.18,633.003.724,658.25TianjinWatermelonTourismLimitedLiabilityCompany14,376.242.87Total430,430.4485.9943,638.25
5.3Advancestosuppliers
5.3.1Advancestosupplierspresentedbyaging
Aging
BalanceasatDecember31,2018BalanceasatJanuary1,2018BookbalanceProportion(%)BookbalanceProportion(%)Within1year49,530.21100.00Total49,530.21100.00
Remark:advancestosuppliersareprepaidamountsfornewspapersandsoftwaremaintenance.In2018,advancestosupplierswerereclassifiedintoitem"othercurrentassets"forpresentation.5.4Otherreceivables
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018InterestreceivableDividendsreceivable
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Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Otherreceivables458,242.73139,561.29Total458,242.73139,561.29
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5.4.1Otherreceivablesdisclosedbycategory:
Category
BalanceasatDecember31,2018BalanceasatJanuary1,2018BookbalanceProvisionforbaddebts
Bookvalue
BookbalanceProvisionforbaddebts
BookvalueAmount
Proportion
(%)
Amount
Proportionofprovision(%)
Amount
Proportion
(%)
Amount
Proportionofprovision(%)OtherreceivableswithindividuallysignificantamountandindividualprovisionforbaddebtsOtherreceivableswithprovisionforbaddebtsmadebyportfolio460,178.73100.001,936.000.42458,242.73160,709.19100.0021,147.9013.16139,561.29OtherreceivableswithindividuallyinsignificantamountandindividualprovisionforbaddebtsTotal460,178.73100.001,936.00458,242.73160,709.19100.0021,147.90139,561.29
NotestotheFinancialStatementsPage
Inportfolio,otherreceivableswithprovisionforbaddebtsmadebytheaginganalysismethod:
Aging
BalanceasatDecember31,2018Bookbalance
Provisionfor
baddebts
Proportionofprovision(%)Within1year457,942.731-2years2-3years3-4years4-5years600.00300.0050.00Over5years1,636.001,636.00100.00Total460,178.731,936.00
5.4.2Provision,reversalorrecoveryofprovisionforbaddebtsin2018
Theprovisionforbaddebtsmadein2018amountedtoRMB-19,211.90.5.4.3Classificationofotherreceivablesbythenatureofpayment
Natureofpayment
BookbalanceasatDecember31,2018
Bookbalanceasat
January1,2018Utilitybills185,368.6970,809.03Pettycash133,411.2349,281.48Attorneyfee77,534.25Individualsocialinsuranceandprovidentfunds63,264.5640,018.68Deposit600.00600.00Total460,178.73160,709.195.4.4Topfiveotherreceivablesintermsoftheirendingbalancecollectedbythedebtor
Nameofentity
Natureofpayment
Balanceasat
December31,2018
Aging
ProportioninthetotalbalanceofotherreceivablesasatDecember
31,2018(%)
BalanceofprovisionforbaddebtsasatDecember31,
2018HainanHangpaiCateringCo.,Ltd.Utilitybills113,176.77Within1year24.59HainanNewConceptLawFirmAttorneyfee77,534.25Within1year16.85YangYunhuiPettycash48,331.50Within1year10.50PengGuoxingUtilitybills41,589.36Within1year9.04WenPingPettycash30,000.00Within1year6.52Total310,631.8867.50
5.5Inventories
5.5.1Classificationofinventories
Item
BalanceasatDecember31,2018BalanceasatJanuary1,2018Bookbalance
Provisionfor
inventorydepreciation
BookvalueBookbalance
Provisionfor
inventorydepreciation
BookvalueRawmaterials870,043.52725,731.58144,311.94880,621.58735,181.58145,440.00Foodanddrinks43,935.1043,935.1045,640.7445,640.74
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Item
BalanceasatDecember31,2018BalanceasatJanuary1,2018Bookbalance
Provisionfor
inventorydepreciation
BookvalueBookbalance
Provisionfor
inventorydepreciation
BookvalueCommoditystocks22,771.3811,102.4111,668.9722,771.3811,102.4111,668.97Fuel21,474.1821,474.1824,255.4024,255.40Total958,224.18736,833.99221,390.19973,289.10746,283.99227,005.11
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5.5.2Provisionforinventorydepreciation
Categoryofinventory
Balanceasat
January1,
2018
Increasein2018Decreasein2018
BalanceasatDecember31,
2018ProvisionOthers
Reversalor
write-off
OthersRawmaterials735,181.589,450.00725,731.58Stockcommodities11,102.4111,102.41Total746,283.999,450.00736,833.99
Remark:Thereasonforwrite-offisthatabatchofhotelbathrobesweresubjecttolossreportingastheycannolongerbeusedduetolong-termstorage.5.6Non-currentassetsmaturingwithinoneyear
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018
RemarksLong-termdeferredexpensestobeamortizedwithinoneyear1,173,597.68
Hotelexteriorrepair,andtransformationofguestrooms,swimmingpoolsandothersTotal1,173,597.68
Remark:Thereasonforthedecreaseoftheendingbalance,comparedwiththebeginningbalance,wasthatsuchitemwasincludedinitem"long-termdeferredexpenses"foramortization.5.7Othercurrentassets
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Prepaidenterpriseincometax1,702,702.801,702,702.80Inputtaxtobededucted103,556.98255,160.76Prepaiddeferredexpenses39,960.01Total1,846,219.791,957,863.565.8Investmentproperties
Investmentpropertiesmeasuredatcost
Item
Buildingsandconstructions
Landuse
rights
Total1.Originalbookvalue(1)Beginningbalance18,856,504.445,662,740.5924,519,245.03
(2)Increasein2018
-Purchase-Transferfrominventories/fixedassets/constructioninprogress-Increasefrombusinesscombinations
(3)Decreasein2018
-Disposal(4)Endingbalance18,856,504.445,662,740.5924,519,245.032.Accumulateddepreciationandaccumulatedamortization(1)Beginningbalance10,189,399.982,163,386.4512,352,786.43
NotestotheFinancialStatementsPage
Item
Buildingsandconstructions
Landuse
rights
Total(2)Increasein2018418,183.5656,340.00474,523.56-Provisionoramortization418,183.5656,340.00474,523.56
(3)Decreasein2018
-Disposal(4)Endingbalance10,607,583.542,219,726.4512,827,309.993.Provisionforimpairment(1)Beginningbalance1,404,400.471,903,054.143,307,454.61
(2)Increasein2018
-Provision
(3)Decreasein2018
-Disposal(4)Endingbalance1,404,400.471,903,054.143,307,454.614.Bookbalance(1)BookvalueasatDecember31,20186,844,520.431,539,960.008,384,480.43(2)BookvalueasatJanuary1,20187,262,703.991,596,300.008,859,003.995.9Fixedassets
5.9.1Fixedassetsanddisposaloffixedassets
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Fixedassets36,497,869.6539,088,708.83DisposaloffixedassetsTotal36,497,869.6539,088,708.835.9.2Fixedassetsdetails
Item
Buildingsandconstructions
Machineryequipment
Vehicles
Electronicequipment
Otherequipment
Total1.Originalbookvalue
(1)Beginning
balance136,789,501.8213,279,932.542,345,074.912,623,443.452,059,888.17157,097,840.89(2)Increasein20183,200.00305,254.81117,668.67426,123.48-Purchase3,200.0082,783.15117,668.67203,651.82-Transferfromconstructioninprogress222,471.66222,471.66(3)Decreasein20182,249,582.00264,169.87251,105.002,764,856.87-Disposalorwrite-off2,249,582.00264,169.87251,105.002,764,856.87(4)Endingbalance136,789,501.8211,033,550.542,345,074.912,664,528.391,926,451.84154,759,107.502.Accumulatedamortization
| (1) | Beginning |
70,320,351.579,371,050.711,415,798.922,012,775.791,288,515.6484,408,492.63
NotestotheFinancialStatementsPage
Item
Buildingsandconstructions
Machineryequipment
Vehicles
Electronicequipment
Otherequipment
Totalbalance(2)Increasein20182,178,992.93288,053.85171,223.62178,391.32170,609.682,987,271.40-Provision2,178,992.93288,053.85171,223.62178,391.32170,609.682,987,271.40(3)Decreasein20181,689,043.68252,314.01234,333.852,175,691.54-Disposalorwrite-off1,689,043.68252,314.01234,333.852,175,691.54(4)Endingbalance72,499,344.507,970,060.881,587,022.541,938,853.101,224,791.4785,220,072.493.Provisionforimpairment
(1)Beginning
balance31,072,788.172,527,851.2633,600,639.43
(2)Increasein2018
-Provision(3)Decreasein2018559,474.07559,474.07-Disposalorwrite-off559,474.07559,474.07(4)Endingbalance31,072,788.171,968,377.1933,041,165.364.Bookvalue
(1)Bookvalueasat
December31,201833,217,369.151,095,112.47758,052.37725,675.29701,660.3736,497,869.65
(2)Bookvalueasat
January1,201835,396,362.081,381,030.57929,275.99610,667.66771,372.5339,088,708.83
Remark:therewerenotemporarilyidlefixedassets,andnosecuredorguaranteedfixedassetsasattheendoftheperiod.5.10Constructioninprogress
5.10.1Constructioninprogressandprojectmaterials
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018ConstructioninprogressProjectmaterialsTotal
NotestotheFinancialStatementsPage36
5.10.2Constructioninprogressdetails
ProjectnameBudget
Balanceasat
January1,
2018
Increasein
2018
Amounttransferredintofixedassetsin
2018
Transferinto
long-termdeferredexpensesin
2018
Balanceasat
December31,2018
Proportionofaccumulative
projectinvestmentsinthebudget
(%)
Projectprogress
(%)
Accumulatedcapitalization
amountof
interest
Including:
capitalization
amountoftheinterest
in2018
Capitalization
rateoftheinterestin2018(%)
Sourcesof
fundsHotelvideosurveillancesystemproject222,471.66222,471.66Self-raised
222,471.66222,471.66
NotestotheFinancialStatementsPage
5.11Intangibleassets
ItemLanduserightsTotal1.Originalbookvalue(1)Beginningbalance81,653,137.1581,653,137.15
(2)Increasein2018
-Purchase-Internalresearchanddevelopment
(3)Decreasein2018
-Disposal-Transferintoinvestmentproperties(4)Endingbalance81,653,137.1581,653,137.152.Accumulatedamortization(1)Beginningbalance31,194,664.1131,194,664.11(2)Increasein2018812,387.16812,387.16-Provision812,387.16812,387.16
(3)Decreasein2018
-Disposal-Transferintoinvestmentproperties(4)Endingbalance32,007,051.2732,007,051.273.Provisionforimpairment(1)Beginningbalance27,440,836.8427,440,836.84
(2)Increasein2018
-Provision
(3)Decreasein2018
-Disposal-Transferintoinvestmentproperties(4)Endingbalance27,440,836.8427,440,836.844.Bookvalue(1)BookvalueasatDecember31,201822,205,249.0422,205,249.04(2)BookvalueasatJanuary1,201823,017,636.2023,017,636.205.12Long-termdeferredexpenses
Item
Balanceasat
January1,2018
Increasein2018
Amortization
in2018
Amountof
otherdecreases
Balanceasat
December31,2018Transferoflong-termdeferredexpensesmaturingwithin
oneyear
OtherincreasesHotelexteriordecoration486,974.55584,369.42584,369.40486,974.57Reconstructionoffire-fightingstairway45,695.1617,135.6817,135.6445,695.20Swimmingpoolreconstruction224,969.2859,991.8159,991.81224,969.28
| Reconstruction | of | guest | rooms | in | Building |
721,297.31192,345.95192,345.95721,297.31
NotestotheFinancialStatementsPage
Item
Balanceasat
January1,2018
Increasein2018
Amortization
in2018
Amountof
otherdecreases
Balanceasat
December31,2018Transferoflong-termdeferredexpensesmaturingwithin
oneyear
OtherincreasesCVillareconstruction1,199,080.58319,754.82153,145.41358,041.101,313,939.71Total2,678,016.881,173,597.68153,145.411,211,883.902,792,876.07
Note:RMB1,173,597.68oflong-termdeferredexpensesmaturingwithinoneyeararetransferredin.SeeNote5.6fordetails.
NotestotheFinancialStatementsPage
5.13Notespayableandaccountspayable
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018NotespayableAccountspayable1,607,835.812,161,172.26Total1,607,835.812,161,172.265.13.1Presentationofaccountspayablebyitem
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Paymentforpurchase687,690.30945,061.67Accountspayableprovisionallyestimated534,359.35738,044.28Servicecharges155,368.88139,336.50Paymentforprojects134,274.10197,246.60Elevatormaintenancefee31,670.0044,270.00Advertisementfees31,195.2853,200.74Consignmentsales22,335.9022,335.90Others10,942.0021,676.57Total1,607,835.812,161,172.265.13.2Significantaccountspayablewithagingoveroneyear:
Item
BalanceasatDecember31,2018
Reasonsforrepaymentfailureorcarry-forwardHainanHuanyuDecorationDesignEngineeringCo.,Ltd.134,274.10UnsettlementTotal134,274.105.14Advancefromcustomers
5.14.1Presentationofadvancesfromcustomers
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Roomandmealfees1,291,293.051,271,174.12Total1,291,293.051,271,174.125.14.2Significantadvancesfromcustomerswithagingoveroneyear
Item
BalanceasatDecember31,2018
Reasonsforrepaymentfailureorcarry-forwardGuangzhouNanbuHolidayInternationalTravelServiceCo.,Ltd.SanyaBranch101,244.00UnsettlementHainanXiangyuanTourismDevelopmentCo.,Ltd.58,745.00UnsettlementPEGASZhengQingbo32,243.02Unsettlement
NotestotheFinancialStatementsPage
Item
BalanceasatDecember31,2018
Reasonsforrepaymentfailureorcarry-forwardHainanQiongzhongEcologicalInvestmentGuaranteeCo.,Ltd.27,519.00UnsettlementSanyaCityPublicSecurityFireBrigade19,420.88UnsettlementTotal239,171.90
NotestotheFinancialStatementsPage
5.15Employeecompensationpayable
5.15.1Classificationofemployeecompensationpayable
Item
Balanceasat
January1,
2018
Increasein
2018
Decreasein
2018
BalanceasatDecember31,
2018Short-termcompensation2,459,015.9312,365,770.7111,983,524.292,841,262.35Post-employmentbenefits-definedcontributionplans1,113,426.251,113,426.25DismissalwelfareOtherbenefitsmaturingwithinoneyearTotal2,459,015.9313,479,196.9613,096,950.542,841,262.35
5.15.2Presentationofshort-termcompensation
Item
Balanceasat
January1,
2018
Increasein
2018
Decreasein
2018
BalanceasatDecember31,
2018(1)Salaries,bonuses,allowancesandsubsidies1,473,572.829,935,610.909,653,334.081,755,849.64(2)Employeewelfareexpenses1,411,271.171,411,271.17(3)Socialinsurancepremiums502,820.66502,820.66Including:medicalinsurancepremiums460,760.31460,760.31Work-relatedinjuryinsurancepremiums13,028.2113,028.21Maternityinsurancepremiums29,032.1429,032.14(4)Housingprovidentfunds168,065.00168,065.00(5)Laborunionexpendituresandemployeeeducationfunds985,443.11348,002.98248,033.381,085,412.71
(6)Short-termcompensated
absences(7)Short-termprofit-sharingplanTotal2,459,015.9312,365,770.7111,983,524.292,841,262.35
5.15.3Presentationofdefinedcontributionplans
Item
Balanceasat
January1,
2018
Increasein
2018
Decreasein
2018
BalanceasatDecember31,
2018Basicendowmentinsurancepremiums1,087,369.881,087,369.88Unemploymentinsurancepremiums26,056.3726,056.37Total1,113,426.251,113,426.25
5.16Taxesandsurchargespayable
NotestotheFinancialStatementsPage
Taxesandsurcharges
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Valueaddedtax(VAT)146,863.56222,989.34Housingpropertytax194,101.69194,101.74Landusetax108,590.92108,590.91Urbanmaintenanceandconstructiontax761.677,782.70Educationalsurtax326.423,335.43Localeducationsurtax217.632,223.64Individualincometax-0.02Total450,861.87539,023.765.17Otherpayables
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018InterestpayableDividendspayableOtherpayables2,727,483.662,411,176.59Total2,727,483.662,411,176.595.17.1Presentationofotherpayablesbynature
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Employeedormitoryrentalfees,etc.971,723.12742,742.74Margin890,958.75711,046.99Auditfee285,003.21285,003.21Qualityguaranteedepositforprojects190,344.00193,066.10Employeedeposit165,700.90166,200.90Projectfunds162,569.78162,569.78Fundscollectedandremitted36,408.47100,036.07Individualcurrentamounts1,364.0029,810.80Electricchargeswithheld23,411.4320,700.00Total2,727,483.662,411,176.595.17.2Othersignificantpayableswithagingoveroneyear
Item
BalanceasatDecember31,
2018
Reasonsforrepaymentfailureorcarry-forwardYangpuJinyuIndustrialCo.,Ltd.627,000.00UnsettlementHongKongDeloitte&ToucheLLP285,003.21UnsettlementSanyaShuxinHousingWaterproofEngineeringCo.,Ltd.170,000.00Unsettlement
NotestotheFinancialStatementsPage
Item
BalanceasatDecember31,
2018
Reasonsforrepaymentfailureorcarry-forwardChinaBuildingDecorationCompanyHainanBranch161,111.03UnsettlementTotal1,243,114.245.18Estimatedliabilities
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018Provisionsforarrearsofelectricitytariffs1,489,685.041,489,685.04Total1,489,685.041,489,685.04Note:SeeNote10fordetails.5.19Sharecapital
Item
Balanceasat
January1,
2018
Changesin2018("+"forincreaseand"-"fordecrease)
BalanceasatDecember31,
2018Issuanceofnewshares
Sharedonation
Conversionofreservesinto
share
OthersSub-totalTotalshares364,100,000.00364,100,000.00
NotestotheFinancialStatementsPage
5.20Capitalreserves
Item
Balanceasat
January1,
2018
Increasein2018
Decreasein2018
BalanceasatDecember31,
2018Capitalpremium(sharepremium)33,336,215.5833,336,215.58Othercapitalreserves20,806,634.4320,806,634.43Total54,142,850.0154,142,850.01
5.21Undistributedprofit
ItemYear2018Year2017Undistributedprofitasattheendofthepreviousperiodbeforeadjustment-341,107,435.91-343,966,434.57Totaladjustmenttoundistributedprofitasatthebeginningoftheyear("+"forincreaseand"-"fordecrease)Undistributedprofitasatthebeginningoftheyearafteradjustment-341,107,435.91-343,966,434.57Plus:netprofitattributabletoownersoftheparentcompanyinthecurrentperiod653,282.192,858,998.66Less:withdrawalofstatutorysurplusreservesWithdrawalofdiscretionarysurplusreservesWithdrawalofgeneralriskreservesCommonstockdividendspayableCommonstockdividendstransferredtosharecapitalUndistributedprofitasattheendoftheperiod-340,454,153.72-341,107,435.915.22Operatingrevenueandoperatingcost
5.22.1Operatingrevenueandoperatingcost
Item
Year2018Year2017RevenueCostRevenueCostPrimarybusiness26,442,049.4711,280,674.5424,691,592.8610,665,396.03Otherbusiness3,073,542.86474,523.563,214,971.37474,523.56Total29,515,592.3311,755,198.1027,906,564.2311,139,919.59
Note:Otherbusinessincomemainlyreferstohouserentalincome.5.22.2Primarybusiness(byindustry)
Industryname
Year2018Year2017OperatingrevenueOperatingcostOperatingrevenueOperatingcostTourismandcateringservices26,442,049.4711,280,674.5424,691,592.8610,665,396.03Total26,442,049.4711,280,674.5424,691,592.8610,665,396.03
5.22.3Primarybusiness(byproduct)
ProductNameYear2018Year2017
NotestotheFinancialStatementsPage
OperatingrevenueOperatingcostOperatingrevenueOperatingcostRoomincome22,731,299.159,307,117.6121,103,123.098,758,364.38Cateringentertainmentincome3,710,750.321,973,556.933,588,469.771,907,031.65Total26,442,049.4711,280,674.5424,691,592.8610,665,396.03
NotestotheFinancialStatementsPage
5.22.4Primarybusiness(byregion)
Nameofregion
Year2018Year2017OperatingrevenueOperatingcostOperatingrevenueOperatingcostHainan26,442,049.4711,280,674.5424,691,592.8610,665,396.03Total26,442,049.4711,280,674.5424,691,592.8610,665,396.03
5.23Taxesandsurcharges
ItemYear2018Year2017Housingpropertytax862,349.51872,805.50Landusetax434,363.69434,366.47Urbanconstructiontax42,817.6668,334.72Educationalsurtax18,350.4328,958.58Localeducationsurtax12,233.6019,786.33Stamptax851.702,760.60Vehicleandvesselusetax3,669.067,680.00Disabledsecurityfunds19,245.72Total1,393,881.371,434,692.205.24Sellingexpenses
ItemYear2018Year2017Employeecompensation3,136,915.232,740,921.77Socialinsurancepremiums590,896.77507,289.20Depreciation519,700.72493,761.97Welfareexpenses393,492.00392,059.00Repaircharges246,435.46205,614.06Utilitybills173,016.68166,983.08Laborunionexpendituresandemployeeeducationfunds110,092.0895,932.28Housingprovidentfunds59,985.0046,950.00Otherexpenses388,546.01474,992.19Total5,619,079.955,124,503.555.25Generalandadministrativeexpenses
ItemYear2018Year2017Salariesandwelfares5,724,279.105,402,093.17Amortizationofsiteuserights812,387.16812,387.16Entertainmentexpenses680,606.62715,630.35Sociallaborinsurancepremium670,247.63610,092.44Agencyfee468,000.00400,000.00Depreciation306,741.99271,883.34Announcingfees280,218.00328,688.00Travelexpenses244,926.48206,199.69
NotestotheFinancialStatementsPage
ItemYear2018Year2017Housingprovidentfunds72,005.0065,065.84Membershipexpensesoftheboardofdirectorsandtheboardofsupervisors30,556.009,535.00Disabledsecurityfunds36,433.27Otherexpenses843,053.99807,517.57Total10,133,021.979,665,525.83
NotestotheFinancialStatementsPage
5.26Financialexpenses
ItemYear2018Year2017InterestexpensesLess:interestincome232,899.41291,701.13ProfitorlossonexchangeHandlingcharges44,620.8142,524.95Total-188,278.60-249,176.185.27Assetimpairmentloss
ItemYear2018Year2017Lossesfrombaddebts-13,656.5511,709.50LossesfromdepreciationofinventoriesTotal-13,656.5511,709.505.28Investmentincome
Breakdownofinvestmentincome
ItemYear2018Year2017Incomefromothercreditors'investment805,825.24Total805,825.245.29Non-operatingrevenue
Detailsofnon-operatingrevenuebyitems
ItemYear2018Year2017
Amountincludedin
thecurrentnon-recurringprofit
orlossDebtwrite-off1,303,540.11Others273.00260.00273.00Total273.001,303,800.11273.005.30Non-operatingexpenses
ItemYear2018Year2017
Amountincludedin
thecurrentnon-recurringprofit
orlossLossesfromthedamageandscrappingofnon-currentassets29,691.2630,016.4329,691.26Overduefines133,645.64133,645.64Total163,336.9030,016.43163,336.905.31Notestoitemsofstatementofcashflows
5.31.1Cashreceivedfromotheroperatingactivities
ItemYear2018Year2017
NotestotheFinancialStatementsPage
ItemYear2018Year2017Water,electricalandgasfeescollected1,406,063.94684,442.21Interestincome232,899.41291,701.13Securitydepositforvenuerental25,500.0075,000.00Loanrepaymentbyemployees252,257.44Socialsecuritypremiumcollected15,515.52Others49,550.5015,828.00Total1,966,271.291,082,486.86
NotestotheFinancialStatementsPage
5.31.2Cashpaidforotheroperatingactivities
ItemYear2018Year2017Socialintercoursefees713,655.45730,464.44Intermediaryservicecharges400,000.00400,000.00Announcementfee268,218.00220,000.00Expensesforbusinesstrips235,245.87181,369.69Postscosts42,387.6627,493.61Repaircharges316,876.61291,287.80Promotionfee94,988.0675,167.49CostsoflistingontheShenzhenStockExchange80,000.0080,000.00Fuel,water,electricityandgascharges277,581.11274,909.12Officeexpenses17,609.7911,553.14Financialexpenses44,620.8142,524.95Propertyinsurancepremiums29,191.5349,740.21Membershipexpensesoftheboardofdirectorsandtheboardofsupervisors30,556.009,535.00Lawyerfee150,000.00Otherexpenses433,472.47388,168.08FinespaidforillegaloperationoftheCompany'sstocks500,000.00Laborinsurancepremiums,housingprovidentfundpaidforindividuals592,554.72Total3,134,403.363,874,768.255.31.3Cashpaidforotherinvestingactivities
ItemYear2018Year2017FinesandconfiscatedamountsforillegaloperationoftheCompany'sstocks19,310,000.00Total19,310,000.005.31.4Cashreceivedfromotherfinancingactivities
ItemYear2018Year2017LuoniushanGroupCo.,Ltd.19,810,000.00Total19,810,000.005.31.5Cashpaidforotherfinancingactivities
ItemYear2018Year2017LuoniushanGroupCo.,Ltd.19,810,000.00Total19,810,000.005.32Supplementaryinformationtothestatementofcashflows
5.32.1Supplementaryinformationtothestatementofcashflows
NotestotheFinancialStatementsPage
SupplementaryinformationYear2018Year20171.NetprofitadjustedtocashflowsfromoperatingactivitiesNetprofit653,282.192,858,998.66Plus:provisionforimpairmentofassets-13,656.5511,709.50Depreciationoffixedassets,depletionofoilandgasassets,anddepreciationofproductivebiologicalassets3,405,454.963,193,715.81Amortizationofintangibleassets868,727.16868,727.16Amortizationoflong-termdeferredexpenses1,211,883.90733,104.44Lossesfromdisposaloffixedassets,intangibleassetsandotherlong-termassets("-"forgains)29,172.4830,016.43Lossesfromwrite-offoffixedassets("-"forgains)518.78Lossesfromchangesinfairvalue(“-”forgains)Financialexpenses("-"forgains)Investmentlosses("-"forgains)-805,825.24Decreasesindeferredincometaxassets("-"forincreases)Increasesindeferredincometaxliabilities("-"fordecreases)Decreasesininventories("-"forincreases)15,064.92-40.80Decreasesinoperatingpayables(“-”forincreases)23,845.1114,283.36Increasesinoperatingpayables("-"fordecreases)589,600.31-1,777,400.85OthersNetcashflowfromoperatingactivities6,783,893.265,127,288.472.SignificantinvestingandfinancingactivitiesnotinvolvingcashreceiptsandpaymentsConversionofdebtintocapitalConvertiblecorporatebondsmaturingwithinoneyearFixedassetsacquiredunderfinancingleases3.NetchangesincashandcashequivalentsEndingbalanceofcash15,364,355.309,681,607.16Less:beginningbalanceofcash9,681,607.1627,210,248.01Plus:endingbalanceofcashequivalentsLess:beginningbalanceofcashequivalentsNetincreaseincashandcashequivalents5,682,748.14-17,528,640.855.32.2Breakdownsofcashandcashequivalents
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018
NotestotheFinancialStatementsPage
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018I.Cash15,364,355.309,681,607.16Including:cashonhand347,782.65264,156.33Unrestrictedcashatbank15,016,572.659,417,450.83OtherunrestrictedmonetaryfundsDepositswithcentralbankavailableforpaymentsDepositsinbanksandotherfinancialinstitutionsLoanstobanksandotherfinancialinstitutionsII.CashequivalentsIncluding:bondinvestmentsmaturingwithinthreemonthsIII.Beginningbalanceofcashandcashequivalents15,364,355.309,681,607.16Including:cashandcashequivalentsrestrictedinuseoftheparentcompanyorsubsidiariesoftheGroupThesubsidiariesnewlyincludedintheconsolidationscopein2018
Name
Reasonforconsolidation
NetassetsasatDecember31,2018
Netprofitin
2018
DateofestablishmentHainanWengaoTouristResourcesDevelopmentCo.,Ltd.Newlyestablished999,768.27-231.732018.6.6
EquityinsubsidiariesStructureoftheenterprisegroup
Nameofsubsidiary
Principalplaceof
business
Registrationplace
Business
nature
Shareholdingratio(%)
Methodof
acquisitionDirectIndirect
HainanWengaoTouristResourcesDevelopmentCo.,Ltd.Sanya,Hainan
BlockB,MainBuilding,HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,No.2,YuhaiRoad,JiyangDistrict,SanyaCity,HainanProvince
Leasingandcommercialserviceindustries100.00
Newlyestablished
8.
Duringitsbusinessoperation,theCompanyfacesvariousfinancialrisks,includingcreditrisks,marketrisksandliquidityrisks.TheBoardofDirectorsoftheCompanytakesfullresponsibilitiesfordeterminingtheriskmanagementobjectsandpoliciesandbearingtheultimateliabilitiesforthat,however,theBoardofDirectorshasauthorizedthemanagementdepartmentoftheCompanytodesignandimplementtheprocesscapableofensuringtheeffectiveimplementationoftheriskmanagementobjectsandpolicies.TheBoardofDirectorsreviewstheeffectivenessoftheenforcedproceduresandtherationalityofriskmanagementobjectivesandpoliciesbythereportssubmittedbythemanagementdepartmentoftheCompany.TheinternalauditorsoftheCompanyalsowillaudittheriskmanagementpoliciesandprocedures,andreporttherelevantfactstotheauditcommittee.
NotestotheFinancialStatementsPage
TheoverallobjectiveofriskmanagementoftheCompanyistopreparetheriskmanagementpoliciesensuringtheriskundercontrolasfaraspossibilitywithoutaffectingtheCompany'sbusinessdevelopmentgoals.8.1Creditrisk
Creditriskreferstoariskthatonepartytothefinancialinstrumentssuffersfinanciallossesduetothefailureoftheotherpartyinperformingtheobligations.TheCompanymainlyfacescustomercreditriskscausedbysalesonaccount.Beforesigninganewcontract,theCompanywillunderstandandassesscreditrisksofthenewcustomer.TheCompanyratesthecreditofexistingcustomersandanalyzestheagingofaccountsreceivabletoensurethattheCompany'soverallcreditriskiswithinthecontrollablerange.8.2Marketrisk
Marketriskassociatedwithfinancialinstrumentsreferstotheriskthatfairvalueorfuturecashflowsoffinancialinstrumentsfluctuateduetovariationsinmarketprices,anditincludesexchangeraterisk,interestrateriskandotherpricerisks.8.3Liquidityrisk
Liquidityriskreferstoariskthatanenterprisesuffersfundsshortageinperformingtheobligationsofsettlementincashorotherfinancialassets.ThepolicyoftheCompanyistoensurethatthereissufficientcashforthepaymentofthematureddebts.LiquidityriskisundercentralizedcontrolofthefinancialdepartmentoftheCompany.Thefinancialdepartmentmonitorscashbalanceandreadilyrealizableandmarketablesecuritiesandmakesrollingforecastoncashflowsofthenext12monthstoensurethattheCompanyhassufficientfundstorepaydebtsinallcasesofreasonableprediction.
NotestotheFinancialStatementsPage
9.1ThelargestshareholderoftheCompany
Nameofthe
largestshareholder
Relatedpartyrelationships
Typeofenterprise
Registration
place
Legalrepresentative
Business
nature
Registered
capital(RMB'0,000)
Shareholding
ratiointheCompany
(%)
Ratioofvotingrightin
theCompany
(%)LuoniushanCo.,Ltd.
Thelargestshareholder
ListedcompanyHaikouXuZili
Plantingandbreedingindustry115,151.0019.8019.80
Remark:asatDecember31,2018,LuoniushanCo.,Ltd.(hereinafterreferredtoas"Luoniushan")anditswholly-ownedsubsidiaryHainanYa'anjuPropertyServicesCo.,Ltd.heldatotalof72,092,000AsharesoftheCompany,accountingfor19.80%oftheCompany'stotalsharecapital,soitistheCompany'slargestshareholder.9.2Relatedpartytransactions
9.2.1Salesofgoodsandrenderingoflaborservices
Relatedparty
Contentofrelated-partytransaction
Pricinganddecision-making
processof
related-party
transactions
Year2018Year2017Amount
Proportioninsimilartransaction
(%)
Amount
Proportioninsimilartransaction
(%)LuoniushanCo.,Ltd.
RoomandmealfeesMarketprice325,905.661.23787,474.003.19
9.2.2Receivablesandpayablesoftherelatedparty
ItemnameRelatedparty
BalanceasatDecember31,2018
BalanceasatJanuary1,2018AccountsreceivableLuoniushanCo.,Ltd.13,153.00166,412.009.2.3Keymanagementpersonnelemoluments
Itemname
Year2018(RMB'0,000)
Year2017(RMB'0,000)Keymanagementpersonnelemoluments163.02188.5710.1TheCompanyowedtheelectricitybilltotheSanyaPowerSupplyBureau.OnMay26,2016,the
CompanyreceivedalawyerletterfromHainanYunfanLawFirmentrustedbySanyaPowerSupplyBureauofHainanPowerGridCo.,Ltd.(hereinafterreferredtoas"SanyaPowerSupplyBureau"),sayingthatSanyaPowerSupplyBureaufound,inverifyingelectricityconsumptionbySouthChinaHotel,asubsidiaryoftheCompany,thatthecurrenttransformer(CT)installedinthedistributioncentermeteringcountersinSouthChinaHotelinstalledwasinconsistentwiththerecordinthemarketingmanagementsystemfileofSanyaPowerSupplyBureau,andthedurationoftheinconsistencewasfromJuly2006whenSouthChinaHotelchangeditselectricityconsumptionmeasuringdevicetoApril2016.Accordingtothestatistics,electricityconsumptionof10313373KWHwasmeasuredinshort,whichwasestimatedtobevaluedatRMB7,200,165.75accordingtotheelectricitypricesandsurchargeratesintheyears.AccordingtotheLegalConsultationAdviceonElectricityQuantity(ElectricityCharge)ClaimingDisputebetweenSouthChinaHotelandSanyaPowerSupplyBureauissuedbyBeijingJunhe(Haikou)LawFirmonDecember20,2016,asallelectricityconsumptionmeteringdevicesarepurchased,installed,sealed,openedandreplacedbySanyaPowerSupplyBureauResponsible,theshortmeasurementofelectricitychargefromSouthChinaHotelformanyyearswasduetothe
NotestotheFinancialStatementsPage
faultofSanyaPowerSupplyBureau,andwasirrelevanttoSouthChinaHotel.PursuanttoArticle135oftheGeneralPrinciplesofCivilLaw:"Exceptasotherwisestipulatedbylaw,thelimitationofactionregardingapplicationstoapeople'scourtforprotectionofcivilrightsshallbetwoyears.,theCompanyaccruedanamountofRMB1,489,685.04fortheelectricitychargeforelectricityquantitymeasuredinshortduringtwoyearsfromApril2014toApril2016.AsatDecember31,2018,nofurtherprogresswasmadeonthismatter.10.2ChinaCindaAssetManagementCo.,Ltd.HainanBranch(hereinafterreferredtoas“Hainan
Cinda”)suedtheCompanyforthecaseonjointliabilityofDadonghaiGroup'sloanprincipalandinterest.HainanDadonghaiTourismCentreGroupCo.,Ltd.(hereinafterreferredtoas“DadonghaiGroup”)andthePeople’sConstructionBankSanyaBranch(hereinafterreferredtoas“CCBSanyaBranch”)signedaloancontract"(95)GLZNo.20"onDecember25,1995.SanyaYueyaRealEstateDevelopmentCorporation(hereinafterreferredtoas“YueyaCompany”)assumedtheguaranteeresponsibilityfortheloan.TheloanprincipalwasRMB5millionandtheinterestandoverduepenaltyinterestwasagreed.TheloanperiodwasfromDecember25,1995toDecember25,1996.Later,thecreditor'srightwastransferredtoHainanXindafromCCBSanyaBranchin1999.HainanXinda,asanewcreditor,hastherighttorecovertheprincipalandinterestoftheinheritablecreditor'srights.AsatApril30,2018,thedefendantDadonghaiGroupstillfailedtorepaytheloanasagreed,andYueyaCompanyhasnotfulfilledtheguaranteeobligationoftheaboveloancontract.Therefore,HainanXindafiledalawsuitwiththeIntermediatePeople'sCourtSanya,requestingthatDadonghaiGroupwillrepaytheprincipalandinterestofRMB34,131,700totheplaintiff,andYueyaCompanywillassumethejointguaranteeresponsibilityforsettlement.Inthecourseofthetrial,HainanXindaappliedfortheadditionoftheCompanyastheco-defendantofthecaseonthegroundthattheCompanyasthe"shareholder"ofDadonghaiGroupfailedtomakecontribution,requestingtheCompanytoassumethejointguaranteeresponsibilityforsettlementfortheabovedebtsofDadonghaiGroup.OnJanuary3,2019,theCompanyreceivedtheciviljudgmentoftheIntermediatePeople'sCourtSanya[(2018)Q02MCNo.76],rejectingtheclaimoftheplaintiffHainanXinda.ThecaseacceptancefeeandpropertypreservationapplicationfeewerebornebyHainanXinda.TheplaintiffHainanXindarefusedtoacceptthefirst-instancejudgmentandhasfiledanappeal.Atpresent,thecaseisstillundertrial.AccordingtotherequirementsoftheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas"CSRC")ontheGuidelinesfortheSupervisionofListedCompaniesNo.4--CommitmentsofandPerformanceofCommitmentsbyActualControllers,Shareholders,RelatedParties,AcquirersofListedCompaniesandListedCompanies(AnnouncementoftheChinaSecuritiesRegulatoryCommission[2013]No.55),onJune7,2014,LuoniushanCo.,Ltd.(hereinafterreferredtoas“Luoniushan”)issuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmenttoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.totheCompany,committingthat,withinthreeyearsfromthedatewhenthechangeofsuchcommitmentisreviewedandadoptedattheCompany'sgeneralmeeting,LuoniushanwillactivelyseekrestructuringpartywhowillconducttheassetrestructuringontheCompany.TheabovematterswerereviewedandapprovedbytheboardofshareholdersoftheCompanyonJune27,2014.OnJune23,2017,LuoniushanissuedaLetterregardingtheChangeofLuoniushanCo.,Ltd.’sCommitmentDurationtoHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,andextendedtheimplementationperiodoftheaboverestructuringcommitmentmadebyLuoniushantotheCompany,thatis,thedeadlinefortheimplementationperiodoftherestructuringcommitmentwaschangedtoDecember27,2017.AsofDecember31,2018,nofurtherprogresswasmadeontheabove-mentionedassetrestructuringcommitments.
NotestotheFinancialStatementsPage
OnFebruary24,2019,asresolvedatthe4thmeetingofthe9thboardofdirectorsoftheCompany,theCompanydoesnotintendtomakeprofitdistributionorconvertcapitalreserveintosharecapital.13.1Correctionofaccountingerrorsinpreviousperiods
13.1.1Retroactiverestatementmethod
Therewasnocorrectionofaccountingerrorsinpriorperiodsmadeundertheretrospectiverestatementmethodduringthereportingperiod.13.1.2Prospectiveapplicationmethod
Therewasnocorrectionofaccountingerrorsinpriorperiodundertheprospectiveapplicationmethodadoptedduringthecurrentreportingperiod.13.2Miscellaneous
14.1Notesreceivableandaccountsreceivable
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018NotesreceivableAccountsreceivable426,434.87594,130.89Total426,434.87594,130.89
NotestotheFinancialStatementsPage57
14.1.1Disclosureofaccountsreceivablebycategory
Category
BalanceasatDecember31,2018BalanceasatJanuary1,2018BookbalanceProvisionforbaddebts
Bookvalue
BookbalanceProvisionforbaddebts
BookvalueAmount
Proportion
(%)
Amount
Proportionofprovision(%)
Amount
Proportion
(%)
Amount
Proportionofprovision(%)AccountreceivableswithindividuallysignificantamountandindividualprovisionforbaddebtsAccountsreceivablewithprovisionforbaddebtsmadebyportfolio500,510.47100.0074,075.6014.80426,434.87662,651.14100.0068,520.2510.34594,130.89AccountsreceivablewithindividuallyinsignificantamountandindividualprovisionforbaddebtsTotal500,510.47100.0074,075.60426,434.87662,651.14100.0068,520.25594,130.89
NotestotheFinancialStatementsPage
Inportfolio,accountsreceivablewiththeprovisionforbaddebtsmadebytheaginganalysismethod:
Aging
BalanceasatDecember31,2018Accountsreceivable
Provisionfor
baddebts
Proportionofprovision
(%)Within1year409,556.671-2years566.0028.305.002-3years785.00117.7515.003-4years18,633.004,658.2525.004-5years3,397.001,698.5050.00Over5years67,572.8067,572.80100.00Total500,510.4774,075.6014.1.2Provision,reversalorrecoveryofbaddebtreservesincurrentperiod
TheamountofprovisionforbaddebtsaccruedincurrentperiodwasRMB5,555.35.14.1.3Topfiveofaccountsreceivableintermsoftheirendingbalancecollectedbythe
debtor
Nameofentity
BalanceasatDecember31,2018Accountsreceivable
Proportioninthe
totalaccountsreceivable(%)
Provisionfor
baddebtsShanghaiHechengInternationalTravelServiceCo.,Ltd.256,931.2051.33BeijingTongchengHuadingInternationalTravelServiceCo.,Ltd.SuzhouBranch101,510.0020.28GuangzhouInstituteofDesign38,980.007.7938,980.00YangpuHuayuRoadandBridgeTechnologyCo.,Ltd.18,633.003.724,658.25TianjinWatermelonTourismLimitedLiabilityCompany14,376.242.87Total430,430.4485.9943,638.2514.2Otherreceivables
Item
BalanceasatDecember31,2018
BalanceasatJanuary1,2018InterestreceivableDividendsreceivableOtherreceivables458,242.73139,561.29Total458,242.73139,561.29
NotestotheFinancialStatementsPage59
14.2.1Disclosureofotherreceivablesbycategory:
Category
BalanceasatDecember31,2018BalanceasatJanuary1,2018BookbalanceProvisionforbaddebts
Bookvalue
BookbalanceProvisionforbaddebts
BookvalueAmount
Proportion
(%)
Amount
Proportionofprovision(%)
Amount
Proportion
(%)
Amount
Proportionofprovision(%)OtherreceivableswithindividuallysignificantamountandindividualprovisionforbaddebtsOtherreceivableswithprovisionforbaddebtsmadebyportfolio460,178.73100.001,936.000.42458,242.73160,709.19100.0021,147.9013.16139,561.29OtherreceivableswithindividuallyinsignificantamountandindividualprovisionforbaddebtsTotal460,178.73100.001,936.00458,242.73160,709.19100.0021,147.90139,561.29
NotestotheFinancialStatementsPage60
Inportfolio,otherreceivableswithprovisionforbaddebtsmadebytheaginganalysismethod:
Aging
BalanceasatDecember31,2018Bookbalance
Provisionfor
baddebts
Proportionofprovision(%)Within1year457,942.731-2years2-3years3-4years4-5years600.00300.0050.00Over5years1,636.001,636.00100.00Total460,178.731,936.0014.2.2Provision,reversalorrecoveryofbaddebtreservesin2018
TheamountofprovisionforbaddebtsaccruedincurrentperiodwasRMB-19,211.90.14.2.3Classificationofotherreceivablesbynatureofpayment
Natureofpayment
BookbalanceasatDecember31,2018
Bookbalanceasat
January1,2018Utilitybills185,368.6970,809.03Pettycash133,411.2349,281.48Attorneyfee77,534.25Socialinsuranceandhousingprovidentfunds63,264.5640,018.68Deposit600.00600.00Total460,178.73160,709.1914.2.4Topfiveotherreceivablesintermsoftheirendingbalancecollectedbythedebtor
NameofentityNatureofpayment
Balanceasat
December31,2018
Aging
Proportioninthetotalbalance
ofotherreceivablesasat
December31,2018(%)
BalanceofprovisionforbaddebtsasatDecember31,
2018HainanHangpaiCateringCo.,Ltd.Utilitybills113,176.77Within1year24.59HainanNewConceptLawFirmAttorneyfee77,534.25Within1year16.85YangYunhuiPettycash48,331.50Within1year10.50PengGuoxingUtilitybills41,589.36Within1year9.04WenPingPettycash30,000.00Within1year6.52Total310,631.8867.50
14.3Long-termequityinvestments
ItemBalanceasatDecember31,2018BalanceasatJanuary1,2018
NotestotheFinancialStatementsPage61
Bookbalance
Provision
forimpairment
Bookvalue
Bookbalance
Provision
forimpairment
BookvalueInvestmentinsubsidiaries1,000,000.001,000,000.00InvestmentinassociatesandjointventuresTotal1,000,000.001,000,000.00
Investmentinsubsidiaries
Investee
BalanceasatJanuary1,2018
Increasein
2018
Decreasein
2018
BalanceasatDecember31,2018
Provisionforimpairmentmadein2018
BalanceoftheprovisionforimpairmentasatDecember31,2018HainanWengaoTouristResourcesDevelopmentCo.,Ltd.
1,000,000.001,000,000.00Total1,000,000.001,000,000.00
14.4Operatingrevenueandoperatingcost
14.4.1Operatingrevenueandoperatingcosts
Item
Year2018Year2017RevenueCostRevenueCostPrimarybusiness26,442,049.4711,280,674.5424,691,592.8610,665,396.03Otherbusinesses3,073,542.86474,523.563,214,971.37474,523.56Total29,515,592.3311,755,198.1027,906,564.2311,139,919.59
Remark:Revenuefromotherbusinessesmainlyreferstohouserentalincome.14.4.2Primarybusiness(byindustry)
Industryname
Year2018Year2017Operating
revenue
Operatingcost
Operating
revenue
OperatingcostTourismandcateringservices26,442,049.4711,280,674.5424,691,592.8610,665,396.03Total26,442,049.4711,280,674.5424,691,592.8610,665,396.03
14.4.3Primarybusiness(byproduct)
Productname
Year2018Year2017Operating
revenue
Operatingcost
Operating
revenue
OperatingcostRoomincome22,731,299.159,307,117.6121,103,123.098,758,364.38Cateringentertainmentincome3,710,750.321,973,556.933,588,469.771,907,031.65Total26,442,049.4711,280,674.5424,691,592.8610,665,396.03
14.4.4Primarybusiness(byregion)
RegionnameYear2018Year2017
NotestotheFinancialStatementsPage62
Operating
revenue
Operatingcost
Operating
revenue
OperatingcostHainan26,442,049.4711,280,674.5424,691,592.8610,665,396.03Total26,442,049.4711,280,674.5424,691,592.8610,665,396.03
15.1Breakdownofcurrentnon-recurringprofitsandlosses
ItemAmountin2018RemarkProfitorlossfromdisposalofnon-currentassets-29,691.26Taxreturns,deductionandexemptionapprovedbeyondtheauthorityorwithoutofficialapprovaldocumentsGovernmentgrantsincludedinthecurrentprofitorloss(exceptforgovernmentgrantscloselyrelatedtotheenterprisebusiness,obtainedbyquotaorquantityatunifiedstatestandards)Expensesforusingfundschargedfromnon-financialenterprisesandincludedinthecurrentprofitorlossGainsfromthedifferencebetweentheinvestmentcostsofacquisitionofsubsidiaries,associatesandjointventuresandshareinthefairvalueofthenetidentifiableassetsoftheinvesteewheninvestingProfitorlossonexchangeofnon-monetaryassetsProfitorlossonentrustingotherstoinvestinormanageassetsVariousprovisionofassetimpairmentmadeduetoforcemajeure,suchasnaturaldisastersProfitorlossondebtrestructuringEnterprisereorganizingexpenses,suchasemployeeaccommodationcostsandintegrationexpenses,etc.ProfitorlossontransactionsmadeatunfairtransactionpriceinexcessoftheirfairvalueCurrentnetprofitorlossofthesubsidiarygeneratedfromthebusinesscombinationundercommoncontrolfromthebeginningoftheperiodtothecombinationdateProfitorlossoncontingenciesirrelevanttonormalbusinessoperationoftheCompanyProfitorlossonchangesinfairvaluesoffinancialassetsheldfortradingandfinancialliabilitiesheldfortradingandinvestmentincomeobtainedfromdisposaloffinancialassetsheldfortrading,financialliabilitiesheldfortradingandavailable-for-salefinancialassets,exceptforeffectivehedgingoperationsassociatedwiththeCompany'snormaloperationsReversalofprovisionforimpairmentofreceivablessubjecttoseparateimpairmenttestProfitorlossfromtheexternalentrustedloans
NotestotheFinancialStatementsPage63
ItemAmountin2018RemarkProfitorlossonchangesinfairvalueofinvestmentpropertiessubsequentlymeasuredbyadoptingthefairvaluemodelEffectoncurrentprofitorlossduetoone-offadjustmenttheretoinaccordancewiththerequirementsoflawsandregulationsregardingtaxationoraccountingIncomefromtrusteefeeschargedforentrustedoperationOthernon-operatingrevenueandexpensesexceptfortheabove-mentioneditems-133,372.64AffectedamountofincometaxAffectedamountofminorityequity(aftertax)Total-163,063.90
NotestotheFinancialStatementsPage64
15.2Rateofreturnonnetassetsandearningspershare
Profitduringthereportingperiod
Weightedaverage
rateofreturnon
netassets(%)
Earningspershare(RMB)Basicearnings
pershare
Dilutedearnings
pershareNetprofitattributabletoordinaryshareholdersoftheCompany0.84340.00180.0018NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductingthenon-recurringprofitorloss1.05390.00220.0022
15.3Accountingdatadifferencebetweenthedomesticandoverseasaccountingstandards
Therewasnoaccountingdatadifferencebetweenthedomesticandoverseasaccountingstandards.
SectionXII.Documentsavailableforreferences
I.Financialstatementwithsignatureandsealoflegalperson,personinchargeofaccountingworksandpersoninchargeofaccountingorgan(accountantincharge);II.OriginalauditreportsealwithaccountingfirmsandsignatureandsealfromCPA;III.TheoriginalmanuscriptsofalldocumentsandannouncementsoftheCompanypubliclydisclosedonSecuritiesTimesandHongKongCommercialDailyduringthereportperiod.TheabovesaiddocumentsarepreparedinthesecuritydepartmentoftheCompany.
BoardofDirectorsofHAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.
Chairman:YuanXiaoping24February2019