Stock Code: 000613, 200613 Short Form of the Stock: Dadonghai -A, Dadonghai –BNotice No: 2020-012
海南大东海旅游中心股份有限公司Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Summary of Annual Report 2019
Disclosure Date: 21 March 2020
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Summary of Annual Report 2019
I. Important NoticeThe summary is abstract from full-text of annual report, for more details of operating results, financial condition and futuredevelopment plan of the Company; investors should found in the full-text of annual report that published on media appointed byCSRC.Objection statement of directors, supervisors and senior executives
□ Applicable √ Not applicable
.Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock
| Short form of the stock | Dadonghai -A, Dadonghai -B | Stock code | 000613, 200613 | |
| Stock exchange for listing | Shenzhen Stock Exchange | |||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
| Name | Wang Hongjuan | |||
| Office add. | Dadonghai Sanya | |||
| Fax. | 0898-88214998 | |||
| Tel. | 0898-88219921 | |||
| hnddhhn@21cn.com | ||||
2. Main business or product introduction in the reporting period
The company's main business is hotel accommodation and catering services. Procurement of goods is mainly thegoods and materials necessary for hotel and catering operations by taking the principle of low price and finequality, some goods are purchased by directly signing purchase contracts with suppliers, and some good arepurchased by procurement agents. The operation are mainly including the network billing and overseas travelagency team, and supplemented by the individual travelers of non-internet marketing and business and the touristsfrom travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in Sanya City, HainanProvince, and it has become a member of the nationwide famous hotels because of the convenient transportation,beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- andlow-grade hotels or guesthouses numerously emerge, resulting in the supply much larger than the market demand,
the industry competition is rather fierce, and the pressure of decline in business remains.
3. Main accounting data and financial indexes
(1) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
In RMB
| 2019 | 2018 | Changes over last year | 2017 | |
| Operating income (RMB) | 25,935,405.44 | 29,515,592.33 | -12.13% | 27,906,564.23 |
| Net profit attributable to shareholders of the listed company (RMB) | 756,721.46 | 653,282.19 | 15.83% | 2,858,998.66 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -1,078,091.71 | 816,346.09 | -232.06% | 779,389.74 |
| Net cash flow arising from operating activities (RMB) | 4,713,661.51 | 6,783,893.26 | -30.52% | 5,127,288.47 |
| Basic earnings per share (RMB/Share) | 0.0021 | 0.0018 | 16.67% | 0.0079 |
| Diluted earnings per share (RMB/Share) | 0.0021 | 0.0018 | 16.67% | 0.0079 |
| Return on Equity | 0.97% | 0.84% | 0.13% | 3.78% |
| End of 2019 | End of 2018 | Changes over end of last year | End of 2017 | |
| Total assets (RMB) | 87,521,184.25 | 88,197,118.07 | -0.77% | 87,466,661.80 |
| Net assets attributable to shareholder of listed company (RMB) | 78,486,603.96 | 77,788,696.29 | 0.90% | 77,135,414.10 |
(2) Quarterly main financial index
In RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 9,293,216.58 | 4,948,744.46 | 3,650,589.50 | 8,042,854.90 |
| Net profit attributable to shareholders of the listed company | 1,572,029.88 | -816,055.87 | -1,154,883.19 | 1,155,630.64 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 1,572,029.88 | -976,086.33 | -2,140,780.97 | 466,745.71 |
| Net cash flow arising from operating activities | 1,436,500.57 | -167,083.92 | -222,628.08 | 3,666,872.94 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recoveredand top ten shareholders
In Share
Total commonstockshareholders inreportingperiod-end
| Total common stock shareholders in reporting period-end | 34,148 | Total common stock shareholders at end of last month before annual report disclosed | 31,649 | Total preference shareholders with voting rights recovered at end of reporting period | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed | 0 | ||||
| Top ten shareholders | |||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Number of shares pledged/frozen | ||||||
| State of share | Amount | ||||||||||
| Luoniushan Co., Ltd. | Domestic non state-owned corporate | 17.55% | 63,885,980 | 0 | Pledged | 44,720,186 | |||||
| Yang Meiqin | Domestic nature person | 4.47% | 16,279,028 | 0 | |||||||
| Pan Anjie | Domestic nature person | 4.01% | 14,593,598 | 0 | |||||||
| Hainan Ya’an Residence Property Service Co., Ltd. | Domestic non state-owned corporate | 2.25% | 8,205,800 | 0 | |||||||
| Chen Jinlian | Domestic nature person | 2.13% | 7,766,400 | 0 | |||||||
| Pan Aiping | Domestic nature person | 1.13% | 4,110,738 | 0 | |||||||
| China Investment Securities (HK) Co., Ld. – customer deposit | Foreign corporate | 0.99% | 3,622,300 | 0 | |||||||
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign corporate | 0.84% | 3,056,390 | 0 | |||||||
| Zhang Fengxiu | Domestic nature person | 0.84% | 3,041,372 | 0 | |||||||
| Sun Huiming | Domestic nature person | 0.79% | 2,888,690 | 0 | |||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the Company is unknown whether there exists associated relationship or belongs to the consistent actor regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company among the other shareholders. | ||||||||||
| Explanation on shareholders involving margin business | N/A | ||||||||||
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and theCompany is as follows:
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full atmaturity on the approval date for annual report disclosedNo
III. Discussion and analysis of operation
1. Introduction of operation in the reporting period
During the reporting period, the company realized main business income of 25,935,400 Yuan, decreased by3,580,200 Yuan compared with the same period last year ( Building A of the Hotel was closed for five months dueto the decoration), a decrease of 12.13%; realized operating profit loss of 785,400 Yuan, decreased by 1,601,700Yuan compared with the same period last year, a decrease of 196.21%; net non-operating income of 1,542,200Yuan, increased by 1,705,200 Yuan compared with the same period last year, an increase of 1045.74%; net profitof 756,700 Yuan, increased by 103,400 Yuan compared with the same period last year, an increase of 15.83%.During the reporting period, the Company focus on market-oriented, actively to exploited the sales channel,enlarge the construction of software and hardware equipment, strengthening enterprise culture construction aswell as the employee team-building, strictly controlling the cost management, we completed the operation targetsthat formulated at beginning of the year basically. Main works are as:
1. Continue to be market-oriented and actively expand marketing channels
During the reporting period, the company continued to be market-oriented and had a flexible marketingmechanism. While further strengthening its existing customers, it also strengthened its cooperation with variouswell-known online sales platforms, domestic and overseas travel agencies, and first- and second-tier city directsales travel agencies, and actively expanded the online markets, the Russian market and the Southwest, NorthChina, East China and South China markets, which effectively increased the market share. During the reportingperiod except for the renovation period, the company's overseas sales revenue, online sales revenue, conferenceteam and travel agency sales revenue of individual customers increased compared with the same period last year.
2. Increase the construction of hotel software and hardware equipment and facilities, improve product quality andenhance competitivenessDuring the reporting period, the hotel rooms and lobby could not meet the market demand due to being severelyaged and unrepaired for a long period of time. Therefore, the company carried out a comprehensive design,decoration and renovation to all the guest rooms and lobby, restaurant, and slab pavement of Building A of thehotel during the off-season, and comprehensively updated the corresponding equipment and facilities. At the sametime, in accordance with the "people-oriented" concept of employment, the company strengthened corporateculture and staff building, enriched the cultural life of employees, created a harmonious working environment, andinnovated employee management systems. Based on the business philosophy of “strengthening the company withquality”, the company continuously strengthened hotel management and skills training for employees to improvetheir basic knowledge and post-service business capabilities, strengthened employees' business level, serviceawareness, responsibility awareness and quality awareness, effectively improved the hotel service quality andmanagement level, and enhanced the quality and comprehensive competitiveness of hotel products.
3. Keep strict cost control, standardize business management, improve internal control system, and maximizecorporate benefits
During the reporting period, the company continued to strengthen procurement cost control management andbudget management, implemented diversified procurement cost inquiry channels, scientifically controlledoperating costs, strictly and reasonably controlled various expenses, and carried out regular inspections andrepairs to eliminate waste of resources and increase the reasonable degree of procurement costs and the revenuecost-effectiveness, strengthened financial business management, and cleaned up and written off the long-term oncredit accounts payable in the business process in accordance with relevant regulations. At the same time, theCompany continued to improve the internal control system, strengthen regulation and implementation of internalcontrol system, strengthen the effective implementation of internal control work, reduce risks and consumption,increase revenue and control expenditures, emphasize production safety and improve operational efficiency, andthus maximize the interests of the Company as a whole.In 2020, the Company will strengthen the prevention and control of novel coronavirus epidemic, and continue toconsolidate and expend the sales channel, improve the product quality of the hotel and service standards, enhancecomprehensive competitive ability in order to lay a solid foundation for the Company’s sustainable, stale andhealthy development.
2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating incomeor operating profit
√Applicable □Not applicable
In RMB
Name
| Name | Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y |
| Room revenue | 20,039,795.13 | -1,261,959.87 | 54.00% | -11.84% | -436.70% | -5.06% |
| Catering entertainment income | 2,742,581.69 | -300,791.86 | 49.33% | -26.09% | -23.47% | 2.51% |
| Other business | 3,153,028.62 | 777,351.71 | 84.95% | -2.59% | -6.86% | 0.39% |
| Total | 25,935,405.44 | -785,400.02 | 57.27% | -12.13% | -196.21% | -2.90% |
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profitattributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Particular about suspended and delisting
□ Applicable √ Not applicable
7. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the financial report of last year
√Applicable □Not applicable
1. Changes in significant accounting policies
(1) The Ministry of Finance promulgated the Circular of the Ministry of Finance on Revising and Issuing the 2019Versions of General Corporate Financial Statement Templates (Cai Kuai [2019] No.6) on April 30, 2019, andRevising and Issuing the 2019 Version of Consolidated Financial Statements Format (Cai Kuai [2019] No.16) onSeptember 19, 2019, to revise the general corporate financial statement templates. Main impacts are as follows:
Content of and reason for changes in
accounting policies
| Content of and reason for changes in accounting policies | Procedures for examination and approval | Name and amount of affected report item |
| In the balance sheet, "notes receivable and accounts receivable" are divided into "notes receivable" and "accounts receivable". "Notes payable and accounts payable" is divided into "notes payable" and "accounts payable". The comparison data are adjusted accordingly. | Resolution of the Board of Directors | "Notes receivable and accounts "Notes receivable" and "accounts receivable" are divided into "notes receivable" and "accounts receivable". The balance of "notes receivable" at the end of last year is RBM 0, while the balance of "accounts receivable" at the end of last year is RMB 426,434.87; "Notes payable and accounts payable" are divided into "notes payable" and "accounts payable". The balance of "notes payable" at the end of the previous year is RBM 0 and the balance of "accounts payable" at the end of the previous year is RBM 1,607,835.81. |
(2) In 2017, the Ministry of Finance revised The Accounting Standards for Business Enterprises No. 22 --Recognition and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No.23 -- Transfer of Financial Assets, The Accounting Standards for Business Enterprises No. 24 -- HedgeAccounting, and The Accounting Standards for Business Enterprises No. 37 -- Presentation of FinancialInstruments. The revised standards stipulate that for financial instruments whose recognition has not beenterminated on the first implementation date, if the previous recognition and measurement are inconsistent with therequirements of the revised standards, adjustments shall be made retroactively. If the data in the previous financialstatements are not consistent with the revised standards, no adjustment is required. The Company will adjustretained earnings and other comprehensive earnings for the cumulative impact of retroactive adjustments at thebeginning of the year.Based on the balance at the end of the previous year adjusted in accordance with the provisions of Cai Kuai [2019]No.6 and Cai Kuai [2019] No.16, the main impacts of the implementation of the new financial instrumentstandards are as follows:
Content of and reason for changes in accounting policies
| Content of and reason for changes in accounting policies | Procedures for examination and approval | Name and amount of affected report item |
| Provision for expected credit losses is made for "financial assets measured at amortized cost" and "financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income". | Board of Directors | Undistributed profit: RMB 58,813.79 decreased Accounts receivable: RMB 37,740.85 decreased Other receivables: RMB 21,072.94 decreased |
On the basis of the balance at the end of the previous year adjusted in accordance with the provisions of Cai Kuai[2019] No.6 and Cai Kuai [2019] No.16, the classification and measurement results of financial assets andliabilities are as follows:
Consolidated
| (Former Financial instruments standards) December 31, 2018 | (New financial instruments standards) January 1, 2019 | ||||
| Item | Measurement category | Book value | Item | Measurement category | Book value |
| Accounts receivable | 426,434.87 | Accounts receivable | Amortization cost | 388,694.02 | |
| Receivables financing | Measured at fair value and whose changes are recorded in other comprehensive income | ||||
| Other receivables | Amortization cost | 458,242.73 | Other receivables | Amortization cost | 437,169.79 |
(3) Implementation of Accounting Standard for Business Enterprises No. 7 - Exchange of Non-Monetary Assets(revised in 2019)The Ministry of Finance issued on May 9, 2019 by the Accounting Standards for Enterprises No. 7 - Exchange ofNon-Monetary Assets (2019 revision) (Cai Kuai [2019] No. 8), the revised rules shall enter into force as of June10, 2019, and the exchange of non-monetary occur between January 1, 2019 and the effective date, adjustmentsshould be based on these criteria. The exchange of non-monetary assets prior to 1 January 2019 does not requireretroactive adjustment in accordance with the provisions of these guidelines. The Company's implementation ofthe above guidelines has no material impact during the reporting period.
(4) Implementation of Accounting Standard for Business Enterprises No. 12 - Debt Restructuring (revised in2019)The Ministry of Finance promulgated the Accounting Standards for Business Enterprises No. 12 - DebtRestructuring (2019 revision) (Cai Kuai [2019] No. 9) on May 16, 2019. The revised standards will be effectivefrom June 17, 2019. For debt restructurings that occur before 1 January 2019, there is no need to make retroactiveadjustments in accordance with the provisions of the code. The Company's implementation of the aboveguidelines has no material impact during the reporting period.
2. Changes in significant accounting estimates
No change in significant accounting estimates during the reporting period of the Company.
(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
□ Applicable √ Not applicable
No change in consolidation statement’s scope of the Company in the Period.
Board of Directors ofHAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.19 March 2020