Songcheng Performance Development Co., Ltd
2021 Annual Report
April 2022
Section I Important Notes, Contents And Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and seniormanagement members of the Company hereby guarantee that the informationpresented in this annual report is authentic, accurate, complete and free of anyfalse records, misleading statements or material omissions, and they will bear jointand several liabilities for such information.Shang Lingxia, the person in charge of the Company, Chen Shengmin, chiefaccountant, and Zhu Shana, head of accounting department (Accounting Officer)hereby declare and warrant that the financial statements in the annual report areauthentic, accurate, and complete.All directors attended the meeting of the Board of Directors for deliberation of thisannual report.The content concerning the future plan and performance forecast in this reportshall not constitute the Company's substantial commitment to investors andrelevant persons who shall maintain adequate risk awareness and shall understandthe differences between the plans, forecasts and commitments.The risks that the Company may face in management and countermeasures havebeen stated in “XI. Outlook for the Future Development of the Company” of“Section III Discussion and Analysis of Management of the Company”. Investors arekindly reminded to pay attention to possible investment risks.
The profit distribution proposal approved by the Board of Directors is: Taking2,614,694,040 as the basis, RMB 0.50 (tax included) of cash dividend and 0 bonusshare (tax included) for every 10 shares will be distributed to all shareholders, and0 share capitalized from the capital reserves will be distributed to all theshareholders for every 10 shares.
Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021年年度报告”), and the published annual report in the Chinese version shall prevail. Thecomplete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn.
Table of Contents
Section I Important Notes, Contents And Definitions ...... 2
Section II Company Profile and Key Financial Indicators ...... 8
Section III Discussion and Analysis of Management of the Company ...... 13
Section IV Corporate Governance ...... 41
Section V Environment and Social Responsibility ...... 61
Section VI Significant Events ...... 62
Section VII Changes in Shares and Information about Shareholders ...... 75
Section VIII Information of Preferred Shares ...... 84
Section IX Information of Bonds ...... 85
Section X Financial Report ...... 86
Directory of Reference Files
I. The financial statements signed and sealed by the legal representative, the chief accountant and the person in charge ofaccounting institution (Accounting Officer) of the Company.II. The original copy of the Audit Report with the seal of the Accounting Firm and signed and stamped by Certified PublicAccountants.III. Originals of all the Company's documents and announcements published on the website designated by China SecuritiesRegulatory Commission during the reporting period.IV. Other related information.The said documents are prepared and placed at the Company's Securities Investment Department
Definitions
Item | Refers To | Definitions |
Company, the Company, Songcheng Performance | Refers To | Songcheng Performance Development Co., Ltd |
Songcheng Group, Songcheng Holdings | Refers To | Hangzhou Songcheng Group Holdings Co., Ltd, the controlling shareholder of the Company |
Songcheng Performance Valley Company | Refers To | Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd, a wholly-owned subsidiary of the Company |
Hangzhou Paradise Company | Refers To | Hangzhou Paradise Co., Ltd, a wholly-owned subsidiary of the Company |
Songcheng Art Troupe | Refers To | Songcheng Performance Management Co., Ltd, a wholly-owned subsidiary of the Company |
Songcheng Tourism | Refers To | Songcheng Tourism Development Co., Ltd, a wholly-owned subsidiary of the Company |
Sanya Romance Show Company | Refers To | Sanya Romance Tourism Performance Co., Ltd, a wholly-owned subsidiary of the Company |
Lijiang Chama Ancient City Company | Refers To | Lijiang Chama Ancient City Tourism Development Co., Ltd, a wholly-owned subsidiary of the Company |
Jiuzhai Romance Show Company | Refers To | Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd, a wholly-owned subsidiary of the Company |
Shanghai Songcheng Company | Refers To | Shanghai Songcheng World Expo Performance Development Co., Ltd, a holding subsidiary of the Company |
Guilin Romance Show Company | Refers To | Guilin Lijiang Romance Performance Development Co., Ltd, a holding subsidiary of the Company |
Zhangjiajie Romance Show Company | Refers To | Zhangjiajie Romance Performance Development Co., Ltd, a wholly-owned subsidiary of the Company |
Xi'an Romance Show Company | Refers To | Xi'an Romance Performance Development Co., Ltd, a holding subsidiary of the Company |
Foshan Romance Show Company | Refers To | Foshan South Sea Qiao Mountain Cultural Tourism Development Co., Ltd, a wholly-owned subsidiary of the Company |
Xitang Songcheng Performance Valley Company | Refers To | Zhejiang Songcheng Xitang Performance Valley Performance Development Co., Ltd, a wholly-owned subsidiary of the Company |
Zhuhai Songcheng Company | Refers To | Zhuhai Songcheng Performance Kingdom Co., Ltd, a wholly-owned subsidiary of the Company |
Songcheng International | Refers To | Songcheng Performance International Development Co., Ltd, a |
wholly-owned subsidiary of the Company | ||
Songcheng Technology | Refers To | Hangzhou Songcheng Technology Development Co., Ltd, a wholly-owned subsidiary of the Company |
Dumuqiao Travel Agency | Refers To | Hanghzou Songcheng Dumuqiao Travel Services Co., Ltd, a wholly-owned subsidiary of Songcheng Tourism Development Co., Ltd, a wholly-owned subsidiary of the Company |
Songcheng Entertainment Company (Australia) | Refers To | Songcheng (Australia) Entertainment Pty Ltd., a wholly-owned subsidiary of Songcheng Performance International Development Co., Ltd, a wholly-owned subsidiary of the Company |
Jiuzhai Tibetan Mystery Company | Refers To | Jiuzhaigou Tibetan Mystery Culture Co., Ltd, a holding subsidiary of the Company |
Huafang Technology | Refers To | Beijing Huafang Technology Co., Ltd, a joint stock company of the Company |
China Securities Regulatory Commission (CSRC) | Refers To | China Securities Regulatory Commission |
Shenzhen Stock Exchange (SZSE) | Refers To | Shenzhen Stock Exchange |
yuan, ten thousand yuan | Refers To | RMB, RMB Ten Thousand |
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock Abbreviation | 宋城演艺 | Stock Code | 300144 |
Company Name in Chinese | Songcheng Performance Development Co., Ltd | ||
Company Abbreviation in Chinese | 宋城演艺 | ||
Company Name in Foreign Language (If any) | Songcheng Performance Development Co., Ltd | ||
Abbreviation of Company Name in Foreign Language (If any) | Songcheng Performance | ||
Legal Representative | Shang Lingxia | ||
Registered Address | 148 Zhijiang Road, Hangzhou City, Zhejiang Province | ||
Post Code of Registered Address | 310008 | ||
Previous changes of registered address of the Company | Not applicable. | ||
Office Address | 148 Zhijiang Road, Hangzhou City, Zhejiang Province | ||
Post Code of Office Address | 310008 | ||
Internet Website of the Company | https://www.songcn.com/Shares/ | ||
sczq@songcn.com |
II. Contact Person and Contact Information
Secretary of the Board | Representative of Securities Affairs | |
Name | Hou Li | Hou Li |
Contact Address | 148 Zhijiang Road, Hangzhou City, Zhejiang Province | 148 Zhijiang Road, Hangzhou City, Zhejiang Province |
Tel. | 0571-87091255 | 0571-87091255 |
Fax | 0571-87091233 | 0571-87091233 |
hl@songcn.com | hl@songcn.com |
III. Information Disclosure and Location
Website of the stock exchange for release of the Annual Report | Securities Times, Securities Daily |
Name and website of the media for release of the Annual Report | http://www.cninfo.com.cn |
Location for Annual Report of the Company | Securities Investment Department of the Company |
IV. Other Related InformationAccounting Firm Hired by the Company
Name of the Accounting Firm | BDO China Shu Lun Pan CPAs (special general partnership) |
Office Address of the Accounting Firm | No. 61 Nanjing East Road, Shanghai |
Name of Certified Public Accountant | Ni Yilin, Wang Bin |
The sponsor institution hired by the company to perform the continuous supervision in the reporting period
□ Applicable √ Not applicable
The financial adviser hired by the company to perform the continuous supervision in the reporting period
□ Applicable √ Not applicable
V. Key Accounting Data and Financial IndicatorsWhether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
□ Yes √ No
2021 years | 2020 years | Increase/decrease compared with previous year | 2019 years | |
Operating income (RMB) | 1,184,864,639.25 | 902,586,125.63 | 31.27% | 2,611,753,208.86 |
Net profit attributable to shareholders of the listed Company (RMB) | 315,130,771.75 | -1,752,398,009.60 | 117.98% | 1,339,790,994.94 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 267,809,723.49 | -1,767,861,638.68 | 115.15% | 1,222,100,617.31 |
Net cash flow generated by operational activities (RMB) | 750,473,809.79 | 393,941,899.94 | 90.50% | 1,571,451,499.51 |
Basic Earnings per Share (RMB/Share) | 0.1205 | -0.6702 | 117.98% | 0.5124 |
Diluted Earnings per Share (RMB/Share) | 0.1205 | -0.6702 | 117.98% | 0.5124 |
Weighted Average ROE | 4.22% | -20.50% | 24.72% | 14.52% |
End of 2021 | End of 2020 | Increase/Decrease at the end of the current year compared with the end of the previous year | End of 2019 | |
Total assets (RMB) | 9,826,508,029.84 | 9,195,342,831.06 | 6.86% | 11,041,076,933.58 |
Net assets attributable to shareholders of the listed company (RMB) | 7,644,770,822.36 | 7,412,287,432.06 | 3.14% | 9,614,069,166.64 |
The lower of the Company's net profit before and after deduction of non-recurring profit and loss for the last three fiscal years isnegative, and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue operating
□ Yes √ No
The lower of net profit before and after deduction of non-recurring profit and loss is negative
□ Yes √ No
Total share capital of the Company as at the trading date preceding the disclosure:
Total share capital of the Company as at the trading date preceding the disclosure (share) | 2,614,694,040 |
Whether the share capital has been changed for issuance of new shares, addition, allotment, exercise of equity incentives andbuy-back, and whether the amount of the owners' equity is influenced from the end of the reporting period of the Company to thedisclosure date of the annual report
□ Yes √ No
Preferred stock dividends paid | 0.00 |
Perpetual bond interest paid (RMB) | 0.00 |
Fully diluted earnings per share calculated with the latest share capital (RMB/share) | 0.1205 |
VI. Key Financial Indicators by Quarter
Unit: RMB
Q1 | Q2 | Q3 | Q4 | |
Operating income | 306,452,312.38 | 428,062,906.79 | 281,121,818.86 | 169,227,601.22 |
Net profit attributable to shareholders of the listed company | 132,387,788.43 | 245,941,775.64 | 54,196,299.52 | -117,395,091.84 |
Net profit attributable to shareholders of the listed company | 130,105,035.10 | 187,941,310.97 | 52,216,568.36 | -102,453,190.94 |
after deducting non-recurring gains and losses | ||||
Net cash flow generated by operating activities | 86,395,031.59 | 394,658,000.83 | 257,089,474.60 | 12,331,302.77 |
Whether the above financial indicators or their totals are significantly different from the financial indicators disclosed in theCompany’s quarterly and semi-annual reports
□ Yes √ No
VII. Differences in Accounting Data Under Domestic and Foreign Accounting Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the internationalaccounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the reporting period of the company, there is no difference between the net profits and net assets in the financial reportsdisclosed according to international accounting standards and Chinese accounting standards.
(2) Differences between the net profits and net assets in the financial reports disclosed according to theoverseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the reporting period of the company, there is no difference between the net profits and net assets in the financial reportsdisclosed according to overseas accounting standards and Chinese accounting standards.
3. Reasons for differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
Note: If the data audited by an overseas audit firm is adjusted for differences, the name of the overseas firm shall be indicated.
VIII. Non-recurring Gains and Losses Items and Their Amounts
√ Applicable □ Not applicable
Unit: RMB
Item | Amount in 2021 | Amount in 2020 | Amount in 2019 | Note |
Profits or losses from disposal of non-current assets (including the write-off for the accrued impairment of assets) | 25,044,233.19 | -37,625,882.13 | 70,970,952.64 | |
Government subsidies included in the current profits and losses (except those closely related to the Company’s normal business, and continuously granted in | 4,656,601.31 | 35,618,594.19 | 5,629,978.38 |
accordance with a certain standard quota or quantity set by national policies and regulations) | ||||
In addition to the effective hedging business related to normal business of the Company, the profits and losses from the changes in fair value for holding trading financial assets and trading financial liabilities, and investment income from disposal of trading financial assets, trading financial liabilities, and available-for-sale financial assets. | 13,096,973.83 | 19,619,586.83 | 52,061,383.80 | |
Non-Operating Revenue and expenses other than the above | 3,502,874.67 | -509,618.20 | -19,029,327.85 | |
Less: Impact of income tax | -2,293,110.04 | 2,230,795.39 | -7,184,125.78 | |
Impact of minority equity (after tax) | 1,272,744.78 | -591,743.78 | -873,264.88 | |
Total | 47,321,048.26 | 15,463,629.08 | 117,690,377.63 | -- |
Details of other gain and loss items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company did not have any details of other gain and loss items that meet the definition of non-recurring gains and losses.Description of defining the non-recurring gain and loss items, which are listed in Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and loss items
□ Applicable √ Not applicable
The Company did not classify any item of the non-recurring gain and loss items listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses, as recurring gain andloss items in the reporting period.
Section III Discussion and Analysis of Management of the CompanyI. Industry Overview during the Reporting Period
1. The Overall Trend of the Industry
(1) Normalized Pandemic Prevention and Control and Industrial Short-term Development Impacted by the PandemicData released by the National Bureau of Statistics shows that in 2021, the number of domestic tourists grew by 12.89% over theprevious year to 3.25 billion, but was only at 54.11% of the 2019 level. The domestic tourism revenue was RMB 2919.1 billion, anincrease of 30.98% year on year, but was only at 50.99% of the 2019 level. Affected by the COVID-19 pandemic, the domestictourism market declined sharply in 2020, ending the continuous growth for 16 consecutive years since 2004. Though 2021 sawrecovery to some extent, the market performance remained unsatisfactory. The COVID-19 pandemic had a great impact on thetourism industry, and it also driven away a large amount of speculative capitals in the society, cleared out most inferior suppliersthat lack capitals and creativity, and forced enterprises to work on intelligent hardware, themes and atmosphere, content-basedscenarios, and services and reception, thus facilitating the emergence of a number of products integrating elements such as culture,tourism, and technology. In the long run, enterprises with abundant resources, sufficient creativity, convenient transportation andgood supporting facilities have stronger risk-resistance ability and market competitiveness.
2018 years | 2019 years | 2020 years | 2021 years |
Number of domestic tourists (xxx billion)
Number of domestic tourists (xxx billion) | 55.39 | 60.06 | 28.79 | 32.50 |
Domestic tourism revenue (RMB xxx billion) | 51,278.30 | 57,250.92 | 22,286.30 | 29,191.00 |
(2) Continuous Policy Support for Promotion of Long-term High-quality Development of the IndustryAlthough there are great difficulties in short-term development, tourism, as a strategic pillar industry of the national economy, hasobvious advantages in adjusting the industrial structure, creating job opportunities, and narrowing regional development gaps.China continuously issues various tourism promotion policies, thus facilitating the long-term high-quality development of theindustry. In 2021, the State Council issued the “Development Plan for the Tourism Industry during the 14th Five-Year Plan Period” todeepen the integration of culture and tourism, as well as accelerate the construction of a strong tourism industry, thus achieving thehigher-quality development of the tourism industry. According to the plan, by 2025, the tourism industry will continue to improve,with a more complete modern tourism system. There will be more effective, high-quality and flexible supply resources for tourism,and the consumption demand of the general public will be better met. The Ministry of Culture and Tourism has released documentssuch as the “Development Plan for the Culture Industry during the 14th Five-Year Plan Period”, “Development Plan for Culture andTourism during the 14th Five-Year Plan Period”, and “Plan for Artistic Creation during the 14th Five-Year Plan Period”, so as toaccelerate the improvement of the modern culture industry system, promote the high-quality development of the culture industry,and build a socialist country of a strong power of culture.
(3) Constantly Developed Economy and Society for a Broad Space for Industrial DevelopmentSustained economic development and social progress have boosted the long-term sound development of the tourism industry. Overthe past 70 years, China has built a complete modern industrial system, created a unified free-circulation nationwide market, andconstructed global leading infrastructure. China’s middle-income group has quickly grown to a large population. The period haswitnessed continuously growing national economy, improved people’s living standards and enhanced purchasing power. Accordingto global precedent, a country with per capita GDP between USD 10,000 and 30,000 experiences the fastest growth of consumptionfor pleasure such as tourism, leisure, culture and entertainment. In 2021, China’s per capita GDP reached USD 12,600, which was
close to the threshold of high-income countries released by the World Bank. People has changed their consumption habit frommaterial consumption to consumption for pleasure. Therefore, there is broad room for development in the culture and tourismindustry.
(4) Innovation-driven Development and Technology Empowerment
The new round of technological revolution and industrial reform and the innovation-driven development strategy will continuouslypromote the creation of new products, new formats and new models and provide strong impetus for the transformation andupgrade of the culture and tourism industry. With the popularization of technologies such as big data, cloud computing, Internet ofThings, blockchain and 5G, Beidou System, virtual reality, and augmented reality, smart tourism featuring digitization, network, andintelligence is gaining momentum. “Internet +” scenic spots, digital experience and products, and immersive and interactiveexperience have emerged to offer constantly improved culture and tourism experience. Technological innovation is constantlyleading and supporting the development of culture and tourism industry and shaping a new landscape of the industry.
2. The Company's Market Position and Strengths in the Industry
Songcheng Performance is China’s leading comprehensive culture and tourism service provider. It is one of China’s top 30enterprises in the culture industry. It is approved as a national demonstration base for integration of culture and technology. Itsbusiness scope covers live performance and tourism service. The Company engages itself in segmented markets such as culture andart, tourism and leisure. The Company has created a unique business model of “Theme park + Cultural performance”, and operatesmore than 10 scenic spots nationwide and develops nearly 100 different shows. The Company leads the industry in the number oftheaters, the number of seats, the number of performances, audience visits, operating efficiency, etc. “Songcheng” and “RomanceShow” have established good brand awareness and have been widely praised in the industry, thus becoming the great strengths ofthe brand.II. The Principal Business of the Company during the Reporting Period
(I) Vision and missionThe Company upholds the business philosophy of “a drop of water in need shall be returned with a spring in deed”, to providecustomers with heartwarming on-site entertainment experience. It is dedicated to telling China’s stories through the Chinese culture,promoting confidence of the nation, and striving to become the world’s top Company in cultural performing arts.(ii) The Principal Business of the CompanyIn the reporting period, the Company was mainly engaged in live performance and tourism service.Live performance: The Company has created a unique business model of “Theme park + Cultural performance”. Relying on“Songcheng” and “Romance Show”, and based on specific scenarios such as theme parks, the Company provides tourists withhigh-quality culture and tourism products characterized by a variety of art performances. Projects under operation includeHangzhou Songcheng Park, Sanya Romance Park, Lijiang Romance Park, Jiuzhai Romance Park, Guilin Romance Park, ZhangjiajieRomance Park, Xi'an Romance Park, Shanghai Romance Park, etc. Several new projects are under construction or going to beconstructed.Tourism services include light-asset output business and online sales of tickets. For light-asset output business, the Companyprovides partners with brand authorization, planning and design, directing and creation, entrusted operation and other services, soas to earn income through service fees and entrusted operation management fees. Light-asset projects under operation includeTanhe Ancient City, Yichun Mingyue Romance Park, and Zhengzhou Huangdi Romance Park. Online sales of tickets refer to onlinedirect sales and distribution of tickets of performances and projects operated by the Company, and sales of joint tickets and ticketpackages with third-party providers.
III. Core Competitiveness AnalysisAfter continuous efforts, the Company has established nationwide chain operation, with more than 40 million regular audiences peryear in normal times. Our market share ranks among the top and continues to increase, with rising efficiency in resource allocationand brand influence. As a leading enterprise in China's performing arts industry, the Company's core competitiveness is mainlyreflected in the following aspects:
1. Advantage in the Business Model
Centering on performing arts in theme parks with creativity, the Company is different from traditional companies in performing artsand tourism. The business mode of "theme park + cultural performance" helps solve high performance costs, high traffic attractioncosts, and low frequency of audience replacement faced by common performing arts enterprises without self-owned venues. Forthe tourism industry, the mode has overcome shortcomings of insufficient core competitiveness, poor reproducibility, excessivereliance on large-scale amusement equipment, low marginal effect, homogeneous services, and weak profitability of traditionalenterprises. The Company is transforming from the Romance Show model characterized by “one show and one park” to theperformance theme park model characterized by “multiple theaters, shows, activities and tickets”, a move to enrich businessoperations and aim for stronger competitiveness.
2. Brand advantages
The Company has established cultural performance platforms nationwide, thus leading the industry in the numbers of projects,theaters and seats, performance sessions and viewers, and growing into the largest domestic art performance group with a widelyrecognized brand. The Company’s market reputation and strong brand influence have benefited its project expansion, resourceintegration, recruitment, and market expansion.
3. Advantages in locations
The Company was one of the first to enter China's first-tier tourism and leisure destinations and most commercially developed cities,thus occupying locations with the most traffic in the surrounding areas. The Company thus has significant advantages in region andlocation. The location advantage has improved the convenience and reduced the costs for the Company to carry out businesses, andmade it difficult for potential competitors to enter the local market. The Company will continue to operate steadily, implement theexpansion strategy based on schedules, and continuously strengthen and consolidate the location advantage.
4. Advantage in Cultural Values
The Company has always rooted its business in Chinese culture and the spirit of Chinese people. Through in-depth on-siteinvestigations and extensive research, the Company has integrated cultural values, art and commerce, and shouldered itsresponsibility to deliver cultural values among people and tell Chinese stories through Chinese culture, thus creating manyhigh-quality artistic works and achieving sound economic and social benefits.
5. Advantage in Creativity
The Company has strong creativity capability and rich creativity practices. The barrier in creativity established over the years isdifficult for its competitors to break. This top-level design featuring creativity ensures the success of the projects. After years ofdevelopment, the Company has built a team with creativity, professionalism, dedication, passion and vitality. The Company hascreated a closed-loop industrial chain involving site selection, planning and design, construction investment, directing and creation,stage choreography, park operation, marketing, and service upgrade. Strong creativity and professional capabilities across the wholeindustrial chain ensure the Company’s differentiated operation and continuous innovation, so that the Company can better controlcosts, improve efficiency, and enhance profitability.
6. Advantage in Technology
The Company persists in technology-driven development to innovate services through technology. It always pays close attention totechnological progress, and has integrated virtual and real stage design with cutting-edge digital technologies to create a dream-likeimmersive scene and to bring tourists extraordinary experience. The Company continues to promote the deep integration of culturalcreativity and technology to create culture and tourism products that feature “culture + tourism + technology” and culture andtourism scenarios that integrate reality with virtual technology, leading the development of the industry.
7. Platform advantages
The Company aims to transform into a platform-based enterprise. With an open mind, it has encouraged free mobility andaggregation of personnel, content, resources and other factors, and takes the lead in integrating and reconstructing the upstreamand downstream of the industrial chain, so as to realize high-efficiency operations at low costs. By transforming itself from acontent-based company that emphasizes creativity to a platform-based one that integrates content creation, art appreciation andsocial contact, the Company has created greater value for itself and the cultural performance industry.
8. Advantage in Operation
Over years of development, the Company has demonstrated abilities to respond quickly, implement plans efficiently and keeps pacewith the times in its operations. The Company implements flexible marketing strategies, attaches great importance to theapplication of social media, we-media and private traffic, gives full play to the power of creativity, and carries out creative marketingonline and offline to reach clients accurately at low costs. The Company is capable of making planning as well as providing receptionand other services for a large number of tourists, so as to bring them extraordinary experience and make their trips joyful.IV. Main Business Analysis
1. Overview
2021 marked the first year of the 14th Five-Year Plan. In 2021, China led the world in economic development and pandemicprevention and control. However, the impact of the change in global landscape and the impact of the COVID-19 pandemic wereunprecedented in a century. For one thing, the COVID-19 virus constantly mutated, and sporadic cases challenged the dynamiczero-COVID policy, resulting in normalized measures for pandemic prevention and control. For another, the instability in the globallandscape continuously worried people and affected the recovery of consumer confidence. The complex, changeable externalenvironment affected the consumption demand and the normal operation of the culture and tourism industry, which led to thesluggish recovery of the industry.Facing the complex environment and various challenges at home and abroad, the Company kept in mind its vision and mission,came up with creative ideas and adhered to innovation, gave full play to its advantages, so as to make reasonable and effectivearrangements for the operation schedule of each project, thus showing strong resilience. During the reporting period, the Companyachieved operating income of RMB 1,184.8646 million, a year-on-year increase of 31.27%; net profit attributable to shareholders ofthe listed Company was RMB 315.1308 million, a year-on-year increase of 117.98%; net profit attributable to shareholders of thelisted Company after deducting non-recurring gains and losses was RMB 267.8097 million, a year-on-year increase of 115.15%.As the impact of the change in global landscape and the impact of the COVID-19 pandemic unseen in a century are expected tocontinue, the world is going to face more stress and more complicated risks and challenges in the long term. The Company is wellaware of this situation, and has prepared itself for a prolonged difficult time. Facing the uncertainty of the future, the Companyshould not only maintain its advantages, but also pursue the development, and it should insist on doing things within the itscapabilities.
During the reporting period, the Company innovated the management of Hangzhou Songcheng Park and Shanghai Romance Park,continuously adjusted spatial layout, innovated diverse content, optimized the visiting routes, and promoted the breakthrough andupgrade of the cultural performance park model, so as to lay the foundation for the operation recovery of the Company in the shortterm; the Company integrated advantageous resources, increased investment, and accelerated the construction oftechnology-infused theme parks, so as to ensure the medium-term development of the Company; the Company strengthenedmarket research and drew upon experiences, carried out drastic integration and optimization from the aspects of industrial layout,project layout, light asset expansion, etc., and accelerated the implementation of platform development strategy, so as to makesufficient preparations for the Company's long-term development. The Company thoroughly reconstructed the organizationalstructure, personnel structure and management process, and strengthened fine operation management to secure the Company'soverall development. The key tasks carried out by the Company during the reporting period are as follows:
(1) Promote the breakthrough and upgrade of the cultural performance park mode
The Company used Hangzhou Songcheng Park and Shanghai Romance Park as models to seek new changes. It continued to makeefforts in terms of spatial layout, content and products, visiting routes, and event marketing, thus promoting the continuousbreakthrough and upgrade of the cultural performance park model.Based on the advantages as the headquarters, Hangzhou Songcheng Park actively explored the mode featuring multiple theaters,multiple types and multiple sessions for performances, and accelerated content enrichment and diversification. The outdoor versionof “The Romantic Show of Song Cheng”, the real-scene performance “The Enchanting Bagpipe” and the light-and-shadow show “MyAll” made a stunning appearance. The total duration of all shows increased from 120 minutes to 300 minutes. The park alsointroduced famous plays such as “Thunderstorm” and “Worry-free Grocery Store”, and jointly hosted the 2nd “Zhi Sheng” MentalGames and “Zhi Sheng” Mental Sports Industry Expo with the Hangzhou branch of Chinese Chess Academy to effectively meet theneeds of various groups including individual tourists, parents and children as well as students. The Company adjusted and optimizedvisiting routes so that the duration of stay of tourists in the park has been increased from 3 hours to 6 hours; special themed eventsfor young people such as the Halloween-themed “Night in Songcheng” and “Night for the celebration of Christmas and New Year”have been launched, thus setting new records in the number of sessions and tourists. In 2021, Hangzhou Songcheng Park wasawarded as one of “First batch of national-level nighttime cultural and tourist consumption cluster areas”, the “Place forexperiencing Song Dynasty culture and Hangzhou lifestyle”, “Excellent study trip base (camp) in Hangzhou for primary and middleschool students”, etc. During the Spring Festival, the May Day holiday and the National Day holiday, the total number of visitors, thetotal number of performance sessions, operating income, the proportion of individual tourists, and the duration of stay of tourists inHangzhou Songcheng Park were all close to or exceeded those of the same period in 2019.Shanghai Romance Park has a large construction area, high construction standards, and strict requirements for approval. Itsuccessful completion and opening has already been a great success. During the May Day holiday, Shanghai Romance Park achieveda revenue of over RMB 25 million, receiving 179,000 tourists. The consumption of each visitor reached a new high among that of alltheme parks of Songcheng, thus breaking the record of the opening year of Songcheng during the May Day holiday. During theNational Day holiday, Shanghai Romance Park put on more than 50 sessions of shows such as the live show by the Huangpu Riverand the car stunt show every day, and was reported by CCTV and praised for putting on amazing shows during the National Dayholiday. Since its premiere, "The Romantic Show of Shanghai" has become a business card of Shanghai for telling Shanghai stories topeople at home and abroad and building Shanghai’s cultural confidence. During the closing period of the park in winter, theCompany transformed the theme park, and made the spatial layout more compact and organized and the visiting routes smoother.Also, efforts have been made on improving the diversity and interactivity of the performances. The newly upgraded "The RomanticShow of Shanghai" is more stunning; the plots of shows are more tense, and the emotion conveyed is stronger. The new “Show withMeals” pays attention to the stage environment to bring immersive dining experience. The creation and rehearsal of the hilariousparent-child interactive show Beware - Ocean, the sci-fi love show L'amour bleu, war experience show Cuckoo’s Blood, night showShanghai Color and other shows have been completed and will be launched at the appropriate time.
Other theme parks have adapted themselves to local conditions, gained insights into ethnic characteristics and regional customs,continuously improved the park atmosphere, launched diversified special events with engaging content, and strengthenedimmersive interactive experience. Therefore, tourist satisfaction and market reputation have been further improved. TheEarthquake and Beware - Dinosaurs have been performed in various theme parks of the Company. The Love show series have beenrehearsed and auditioned. The creation of Beware show series was stepped up. The diverse plays, unique outdoor shows and folkheritage performances have created a rich library of content. Cultural art performance parks have served as open platforms thatadopt all kinds of high-quality, popular market-based content with an open mind to create more new shows and put them on stagein every park.
(2) Accelerate the construction of technology-infused Songcheng parks
The Company has always been at the forefront of high technology, and is one of the earliest companies in China to commercializeVR, AR, holograms, motion capture, light and shadow technologies in art performances and tourism scenarios. In 2021, theCompany was jointly recognized as the “4th Batch of National Culture and Technology Integration Demonstration Bases” by theMinistry of Science and Technology, the Publicity Department of the Central Committee of the CPC, the Office of the CentralCyberspace Affairs Commission, the Ministry of Culture and Tourism, and the State Administration of Radio, Film and Television.Hangzhou Songcheng Park passed the High-tech Enterprise Certification in 2021 and was awarded the qualification certificate.With the continuous progress and maturity of technology, the Company will further give full play to its advantages and maintain itsleading position in the culture and tourism industry, make more efforts to explore and develop the application of new technologiesin theme parks and live performances, upgrade and build comprehensive products featuring culture, tourism and technology. TheCompany accelerated its digital transformation, employed technology to empower theme park operations and internalmanagement, optimized the operation and management processes, and stepped up the ability of quick response and efficientexecution.
(3) Strengthen the enforcement of the platform-based strategy
Due to the prolonged pandemic, the Company has moved up its strategic agenda of building a platform-based enterprise, and willwork on aspects including industrial planning, project planning, light-asset expansion, etc.In terms of industrial planning, based on the development trend of the industry, the Company has focused on integrating theupstream and the downstream of the cultural performance industry, devoted itself to building an industrial chain featuring theintegration of the upstream and the downstream. The Company has built and launched a one-stop comprehensive informationplatform of the industry in order to better connect the supply end and the demand end, reshape the industrial structure, build anew chain of value and a new order of the industry; in terms of project planning, in order to build a platform that encourages opencooperation, the Company has promoted the transfer of projects in Zhuhai and Australia to give full play to the advantages of allparties for faster and better development of the projects, reduced the Company's capital expenditure, and optimized its assetstructure; in terms of light-asset expansion, the Company will combine resources flexibly, create the new light-asset output mode,expand from the “head” market to the “waist” market, and to the “long tail” market to meet diversified market demands, stimulatethe vitality of the Company and gain more economic benefits.
(4) Accelerate refined operation management
To work towards the goal of building a platform-oriented enterprise, the Company has carried out systematic and integrated reformon the organizational structure, built teams with both intensive structures and extensive structures. The Company has standardizedthe management process and adopted both vertical management and flat management modes. Through the comprehensiveintegration and optimization of departments, levels and positions, the Company has created a core management structure featuring“one center and five departments” at the headquarter and “four departments and one group” of each project. With the top-downcentralized management approach for all business processes, the Company has made sure that the concept proposed by the coreteam was implemented, reduced any loss in intermediate links, concentrated the management responsibility on several personnel
and reduced expenses, and adopted more diversified forms of labor through cooperation, outsourcing, crowdsourcing, etc. thusimproving management capabilities, reduce management costs and enhance operation efficiency.Through the reform, the cohesion and capabilities of the core team have been significantly enhanced. The coordination andmutual-support between projects and departments have been smoother. Efficient information sharing, quality of work, andresponsibility fulfillment have been guaranteed. The systems and processes have become more standardized. At the same time, thelist of university partners and troupes has been continuously expanded, which has helped the Company save and optimize laborcosts, and has provided a foundation for the Company to become a platform, ecosystem and hub. The Company has adapted to thepost-pandemic era and basically transformed itself into a light-manpower enterprise. In the future, on the basis of the core team,the Company will link internal and external resources to carry out various strategic plans.
(5) Optimize the planning of equity investment
During the reporting period, the overall development of Huafang Technology was good, and its operating and financial targets wereachieved. Its overseas business, live streaming & voice chat and other innovative businesses developed well. The Company has beenworking with other shareholders to further promote the operation of Huafang Technology. The Company has withdrawn from someequity investment projects, gaining good investment returns and taking back large sums of funding.
2. Income and Costs
(1) Operating income structure
Overall operating income
Unit: RMB
2021 years | 2020 years | Year-on-year increase or decrease | |||
Amount | Proportion in Operating Revenue | Amount | Proportion in Operating Revenue | ||
Total Revenue | 1,184,864,639.25 | 100% | 902,586,125.63 | 100% | 31.27% |
By Industry | |||||
I. Culture and Art Industry - Live Performance | 1,009,714,986.26 | 85.22% | 675,872,865.35 | 74.88% | 49.39% |
II. Tourism Service Industry | 175,149,652.99 | 14.78% | 226,713,260.28 | 25.12% | -22.74% |
Classified by product | |||||
1. Songcheng in Hangzhou | 485,856,997.02 | 41.01% | 286,877,405.89 | 31.78% | 69.36% |
2. Sanya Romance Park | 147,957,437.74 | 12.49% | 127,098,246.23 | 14.08% | 16.41% |
3. Lijiang Romance Park | 116,241,285.38 | 9.81% | 136,520,949.23 | 15.13% | -14.85% |
4. Jiuzhai Romance Park | 45,477,409.61 | 3.84% | 25,667,095.21 | 2.84% | 77.18% |
5. Guilin Romance Park | 91,145,694.57 | 7.69% | 56,586,027.07 | 6.27% | 61.07% |
6. Zhangjiajie Romance Park | 32,288,568.20 | 2.72% | 18,120,963.58 | 2.01% | 78.18% |
7. Xi’an Romance Park | 16,784,668.25 | 1.42% | 25,002,178.14 | 2.77% | -32.87% |
8. Shanghai Romance Park | 73,962,925.49 | 6.24% | 0.00 | 0.00% |
9. E-commerce service charge | 73,045,802.16 | 6.16% | 43,316,562.23 | 4.80% | 68.63% |
10. Design and planning fees | 102,103,850.83 | 8.62% | 183,396,698.05 | 20.32% | -44.33% |
Classified by region | |||||
1. Zhejiang Province | 661,006,650.01 | 55.79% | 513,590,666.17 | 56.90% | 28.70% |
2. Sanya, Hainan Province | 147,957,437.74 | 12.49% | 127,098,246.23 | 14.08% | 16.41% |
3. Lijiang, Yunnan Province | 116,241,285.38 | 9.81% | 136,520,949.23 | 15.13% | -14.85% |
4. Sichuan Province | 45,477,409.61 | 3.84% | 25,667,095.21 | 2.84% | 77.18% |
5. Shanghai | 73,962,925.49 | 6.24% | 0.00 | 0.00% | |
6. Guilin, Guangxi Province | 91,145,694.57 | 7.69% | 56,586,027.07 | 6.27% | 61.07% |
7. Zhangjiajie, Hunan Province | 32,288,568.20 | 2.72% | 18,120,963.58 | 2.01% | 78.18% |
8. Xi'an, Shaanxi Province | 16,784,668.25 | 1.42% | 25,002,178.14 | 2.77% | -32.87% |
Classified by sales mode | |||||
I. Culture and Art Industry - Live Performance | 1,009,714,986.26 | 85.22% | 675,872,865.35 | 74.88% | 49.39% |
II. Tourism Service Industry | 175,149,652.99 | 14.78% | 226,713,260.28 | 25.12% | -22.74% |
(2) Industry, product, region or sales mode accounting for more than 10% of the Company's operating incomeor operating profit
√ Applicable □ Not applicable
Unit: RMB
Operating income | Operating Cost | Gross margin | Increase or decrease of operating income compared with the same period of last year | Increase and decrease of operating cost over the same period of last year | Increase or decrease of gross profit compared with the same period of last year | |
By Industry | ||||||
1. Culture and art industry— Live performance | 1,009,714,986.26 | 573,167,186.32 | 43.23% | 49.39% | 67.81% | -6.24% |
2. Tourism service industry | 175,149,652.99 | 6,420,025.35 | 96.33% | -22.74% | -42.27% | 1.24% |
Classified by product | ||||||
1. Songcheng in Hangzhou | 485,856,997.02 | 274,756,084.44 | 43.45% | 69.36% | 47.12% | 8.55% |
2. Sanya Romance Park | 147,957,437.74 | 48,095,105.61 | 67.49% | 16.41% | 64.18% | -9.46% |
3. Lijiang Romance Park | 116,241,285.38 | 49,312,322.49 | 57.58% | -14.85% | 43.59% | -17.27% |
4. Design and planning fees | 102,103,850.83 | 4,232,657.31 | 95.85% | -44.33% | -47.83% | 0.27% |
Classified by region | ||||||
1. Zhejiang Province | 661,006,650.01 | 281,176,109.79 | 57.46% | 28.70% | 42.10% | -4.01% |
2. Sanya, Hainan Province | 147,957,437.74 | 48,095,105.61 | 67.49% | 16.41% | 64.18% | -9.46% |
3. Lijiang, Yunnan Province | 116,241,285.38 | 49,312,322.49 | 57.58% | -14.85% | 43.59% | -17.27% |
Classified by sales mode | ||||||
1. Culture and art industry— Live performance | 1,009,714,986.26 | 573,167,186.32 | 43.23% | 49.39% | 67.81% | -6.24% |
2. Tourism service industry | 175,149,652.99 | 6,420,025.35 | 96.33% | -22.74% | -42.27% | 1.24% |
When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's main businessdata should be subject to the one after the statistical caliber at the end of the reporting period is adjusted in the most recent year.
□ Applicable √ Not applicable
(3) Is the company's physical sales income greater than the labor income?
□ Yes √ No
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of thereporting period
□ Applicable √ Not applicable
(5) Operating Cost Structure
Unit: RMB
Industry Classification | Item | 2021 years | 2020 years | Year-on-year increase or decrease | ||
Amount | Proportion to Operating Cost | Amount | Proportion to Operating Cost | |||
I. Culture and Art Industry - Live Performance | Cost of live performance | 573,167,186.32 | 98.89% | 341,549,955.68 | 96.85% | 67.81% |
II. Tourism Service Industry | Cost of tourism service industry | 6,420,025.35 | 1.11% | 11,120,517.74 | 3.15% | -42.27% |
(6) Has the scope of consolidation changed during the reporting period?
√ Yes □ No
There are 1 newly merged units in this period, the reasons are:
New Merged Units This Year | Investment Ratio | Notes |
Global Bacchus Limited | 100.00% | New in 2021 |
In the current period, the number of merged units was reduced by 1 due to:
Reduced Merged Units This Year | Investment Ratio | Notes |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 100.00% | Equity sale in 2021 |
(7) Major changes or adjustments to the company's business, products, or services during the reporting period
□ Applicable √ Not applicable
(8) Major Clients and Suppliers
The Company's Major Clients
Total sales amount of the top five customers | 312,345,011.99 |
Proportion of the total sales amount of the top five customers to the total annual sales | 26.36% |
Proportion of the total sales amount of the related parties in the top five customers to the total annual sales | 0.00% |
Profiles of the Company's top five customers
No. | Name of customer | Sales amount (yuan) | Proportion to the annual sales |
1 | Customer I | 145,116,607.90 | 12.25% |
2 | Customer II | 63,037,991.19 | 5.32% |
3 | Customer III | 53,229,339.62 | 4.49% |
4 | Customer IV | 35,383,945.17 | 2.99% |
5 | Customer V | 15,577,128.11 | 1.31% |
Total | -- | 312,345,011.99 | 26.36% |
Other Information Notes for Major Clients
□ Applicable √ Not applicable
(8) Major suppliers
Total Purchase Amount of Top Five Suppliers (yuan) | 276,328,758.02 |
Proportion of the total purchase amount of top five suppliers to the total annual purchase amount | 20.54% |
Proportion of the total purchase amount of the related parties in top five suppliers to the total annual purchase amount | 1.97% |
Profiles of the Company's top five suppliers
No. | Supplier Name | Purchase amount (yuan) | Proportion to the total annual purchase amount |
1 | Supplier I | 101,433,729.98 | 7.54% |
2 | Supplier II | 76,546,907.91 | 5.69% |
3 | Supplier III | 43,758,108.57 | 3.25% |
4 | Supplier IV | 28,121,811.56 | 2.09% |
5 | Supplier V | 26,468,200.00 | 1.97% |
Total | -- | 276,328,758.02 | 20.54% |
Other Information Notes for Major Suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
2021 years | 2020 years | Year-on-year increase or decrease | Statement on Significant Changes | |
Sales Expenses | 66,184,828.78 | 63,649,750.30 | 3.98% | |
Administration expenses | 256,185,046.43 | 288,084,167.74 | -11.07% | |
Financial Expenses | -954,577.44 | -12,843,438.15 | 92.57% | Mainly due to the implementation of the new lease standards during the reporting period |
Research and development expense | 41,175,131.35 | 37,487,964.00 | 9.84% |
4. R&D Investment
√ Applicable □ Not applicable
Names of major R&D projects | Purpose of project | Status of project | Objectives | Expected benefits to future development of the Company |
Research on the automatic tracking spotlight technology for performers on stage | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | The spotlight can track performers timely and accurately | Improve the stage presentation and fluency of the Company's shows as well as visitors’ experience |
Design and relevant research of the mobile rotating stage | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Simplify the complicated process and save the effort for fixating and building stages | Improve the stage presentation and fluency of the Company's shows as well as visitors’ experience |
Research and development of large-scale lighting & projection system for water shows with surreal effect | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Harmonious integration of physical props and projected images | Add new performance approaches and effects, and improve the effect, and enhance visitors’ experience |
Research on the technology of immersive lighting system for interaction | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | The immersive lighting system for interaction can bring real-time immersive experience through 3D projection based on the features of different shows | Add new performance approaches and effects, and improve the effect, and enhance visitors’ experience |
Research on the application of VR technology in interactive design | Enrich product lines | Project has completed the specified main technical targets and achieved the expected results | Complete the construction of a virtual environment based on real-world scenarios to bring visitors interactive riding experience | Enrich product lines, add more fun to shows, enhance visitors’ experience, so as to improve the Company’s competitiveness |
Research and development of the mobile device of assault boats for stage performance | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Realize the operation and maintenance of the lift structure of assault boats | Enhance the stage effect of the Company's shows and enhance visitors’ experience |
Research on the application of colors in stage lighting design | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Review and optimize the color schemes used in lighting designs | Enhance the stage effect of the Company's shows and enhance visitors’ experience |
Research on the application of dance cultures in choreography | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Research on the application of dance rhythms in choreography | Enhance the stage effect of the Company's shows and enhance visitors’ experience |
Research on the safety application of stage machinery | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Improve, correctly use, and properly maintain the configuration of stage machinery | Enhance the smoothness and safety of the Company's performances and make sure that all shows are performed as planned |
Research on the role of the timing of stage | To improve performance | Project has completed the specified main technical | Employ stage lighting changes to divide a show | Enhance the stage effect of the Company's shows and |
lighting changes and its application | quality | targets and achieved the expected results | into several acts, and create a rhythm for shows | enhance visitors’ experience |
Research and development of automatic stage machinery for mimicking volcano eruptions | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Complete the design of the stage machinery for mimicking volcano eruptions and apply it to shows | Add new performance approaches and effects, and improve the effect, and enhance visitors’ experience |
Research on the integrated application of choreography and stage machinery | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Strengthen the appeal of the performance and create a livelier atmosphere | Enhance the stage effect of the Company's shows and enhance visitors’ experience |
3D water effect device | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Quickly switch among multiple scenes on stage in a short time | Enhance the stage effect of the Company's shows and enhance visitors’ experience |
Make technical improvements to stage props | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Address the weaknesses in existing stage props and eliminate potential safety hazards | Enhance the safety of the Company's performances and make sure that all shows are performed as planned |
Make technical improvements to stage devices | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Make device installation and operation more convenient, and eliminate potential safety hazards | Enhance the safety and smoothness of the Company's performances and make sure that all shows are performed as planned |
Research and development of holographic projection and naked-eye 3D technology for stages | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Present a more gorgeous stage effect with holographic projection and naked-eye 3D technology | Add new performance approaches, improve the stage effect, and enhance visitors’ experience |
Research and development of the curtain projection device for interactive stage | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Solve the problems of insufficient opening of curtain and loud noise during curtain opening | Optimize the stage effect of the Company's shows and improve visitors’ experience |
Research and development of the smart stage lighting system | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Improve the automation level of stage lighting systems | Optimize the stage effect of the Company's shows and improve visitors’ experience |
Research and development of the | To improve performance | Project has completed the specified main technical | Solve the problems brought by the existing | Improve the sound quality of the Company's shows and |
sound damping device | quality | targets and achieved the expected results | stage audio technology due to the materials of audio devices | enhance visitors’ experience |
Research and development of the remote control device for stage speakers | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Solve the problem of the remote control devices for stage speakers that don't have rotation function | Improve the sound quality of the Company's shows and enhance visitors’ experience |
Research and development of rotating stage lift platforms | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Solve the problem of the height of the current stages that cannot be adjusted | Optimize the stage effect of the Company's shows and improve visitors’ experience |
Research and development of Songcheng stage control software | To improve performance quality | Project has completed the specified main technical targets and achieved the expected results | Have better control over the stage effect and step up control over stage machinery and devices | Optimize the stage effect of the Company's shows and improve visitors’ experience |
Research and development of enterprise management software of Songcheng | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Address issues that no existing enterprise management software can solve or the issues to which there are no standard solutions, and reduce the cost of data exchange within the enterprise. | Improve the Company’s management efficiency |
Research and development of the smart tourism information management system | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Develop a good understanding of the status of all theme park resources and convey event information to visitors timely and accurately through proactive identification, real-time transmission, in-depth analysis and operation control | Improve the Company’s management efficiency and service quality |
Research and development of the parking lot management system | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Manage all parking lots in theme parks in a unified way and integrate all parking lots into the same network for parking fee charging by establishing a parking lot management system. | Improve management efficiency of parking lots and visitors’ experience |
Research and development of the queuing management system in theme parks | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Show the real-time queuing status on visitors’ phones through a system featuring on-site ticket distribution and printing, online queuing, and calling functions | Improve queuing efficiency and visitors’ experience |
Development of the online mall system of theme parks based on Tik Tok’s mini program | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results |
Analyze data, and observethe data of competitors’accounts and industrydevelopments, anddevelop a goodunderstanding of industrytrends.
Improve marketing efficiency | ||||
Development of the online order data synchronization system for theme parks | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Realize synchronization of orders and inventory, refund and written-off functions | Improve the Company’s management efficiency |
Research and development of the coupon management system in theme parks | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Merchants can view various daily and monthly reports on their mobile devices or in their web-based management applications | Improve marketing efficiency |
Development of the smart tourism product portfolio system | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Conduct analysis on functional modules, performance and security, establish the coupon distribution and written-off management system, and provide customers with the best discount portfolio | Reduce visitors’ expenditures and improve visitors’ experience |
Development of the intelligent notification system in theme parks | Build smart theme parks | Project has completed the specified main technical targets and achieved the expected results | Conduct analysis through the intelligent GPS, and quickly transmit multimedia information to visitors to improve the efficiency and experience of visiting | Make it more convenient and comfortable for visitors to enjoy themselves in theme parks |
R&D personnel of the Company
2021 years | 2020 years | Year-on-year change | |
Number of R&D personnel | 196 | 253 | -22.53% |
Percentage of R&D personnel | 16.91% | 17.56% | -0.65% |
Educational background of R&D personnel | |||
Bachelor | 78 | 95 | -17.89% |
Postgraduate | 2 | 1 | 100.00% |
Age of R&D personnel | |||
Below the age of 30 | 70 | 103 | -32.04% |
Aged between 30 to 40 | 77 | 91 | -15.38% |
The Company's R&D investment in the past three years and its percentage in operating income
2021 years | 2020 years | 2019 years | |
R&D investment (yuan) | 41,175,131.35 | 37,487,964.00 | 48,424,520.54 |
The proportion of R&D investment to operating income | 3.48% | 4.15% | 1.85% |
Capitalized amount of R&D expenditure (yuan) | 0.00 | 0.00 | 0.00 |
Percentage of capitalized R&D expenditure in R&D investment | 0.00% | 0.00% | 0.00% |
Percentage of capitalized R&D expenditure in current net profit | 0.00% | 0.00% | 0.00% |
Reasons and impacts of significant changes in R&D personnel composition of the Company
□ Applicable √ Not applicable
The reason for the significant change in the proportion of the total amount of R&D investment to operating income compared withlast year
□ Applicable √ Not applicable
Reasons and rational explanations on the substantial change in capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash Flow
Unit: RMB
Item | 2021 years | 2020 years | Year-on-year increase or decrease |
Subtotal of cash inflow from operational activities | 1,395,144,293.27 | 943,790,117.88 | 47.82% |
Subtotal of cash outflow from operational activities | 644,670,483.48 | 549,848,217.94 | 17.25% |
Net cash flow generated by operating activities | 750,473,809.79 | 393,941,899.94 | 90.50% |
Subtotal of cash inflow from investment activities | 1,567,301,139.38 | 1,351,939,517.27 | 15.93% |
Subtotal of Cash Outflow from Investment Activities | 1,603,861,467.40 | 2,292,941,086.10 | -30.05% |
Net amount of cash flow generated by investment activities | -36,560,328.02 | -941,001,568.83 | 96.11% |
Subtotal of cash inflow from financing activities | 420,000,000.00 | -100.00% | |
Subtotal of cash outflow from financing activities | 196,202,037.34 | 306,917,837.81 | -36.07% |
Net cash flow generated by financing activities | -196,202,037.34 | 113,082,162.19 | -273.50% |
Net additions to balance of equivalents | 520,971,610.06 | -443,933,773.37 | 217.35% |
Description of the main factors affecting the significant changes in related data over the same period of last year
√ Applicable □ Not applicable
During the reporting period, the subtotal of cash inflows from operating activities and the net cash flows from operating activitiesincreased by 47.82% and 90.50% respectively year on year, mainly due to the year-on-year increase of operating revenue.During the reporting period, the subtotal of cash outflows from investment activities decreased by 30.05% year on year, and netcash flows from investment activities increased 96.11% year on year, mainly due to the decrease in project investment.During the reporting period, the subtotals of cash inflows, cash outflows and net cash flows from financing activities decreased by100%, 36.07% and 273.50 respectively year on year, mainly due to the year-on-year decrease in the new bank borrowings andreduced dividend payouts.Reasons for the significant difference between the net cash flow generated by the company's operating activities in the reportingperiod and the net profit in the current year
√ Applicable □ Not applicable
Supplementary information | Amount of this period |
1. Reconciliation of net profit to cash flows from operational activities: | |
Net Profit | 302,593,961.40 |
Plus: Credit impairment loss | 16,581,681.70 |
Provision for Impairment of Assets | 10,082,554.54 |
Depreciation of fixed assets | 241,582,094.98 |
Depreciation of right-of-use assets | 34,607,328.24 |
Amortization of Intangible Assets | 50,825,412.01 |
Amortization of long-term prepaid expenses | 59,765,277.28 |
Losses on disposal of fixed assets, intangible assets and other long-term assets (mark "-" for incomes) | -4,512,572.52 |
Losses on scrapping of fixed assets (mark "-" for incomes) | 32,221,090.95 |
Losses on fair value changes (mark "-" for incomes) | 12,098,344.02 |
Financial expenses (mark "-" for incomes) | 23,509,105.27 |
Losses on investment (mark "-" for incomes) | -181,840,347.56 |
Decrease on deferred income tax assets (mark "-" for increases)
Decrease on deferred income tax assets (mark "-" for increases) | -7,057,573.77 |
Increase on deferred income tax liabilities (mark "-" for decreases) | -3,051,166.37 |
Decrease on inventories (mark "-" for increases) | 902,490.69 |
Decrease on operational receivables (mark "-" for increases) | 101,886,633.14 |
Increase on operational payables (mark "-" for decreases) | 60,279,495.79 |
Net cash flow generated by operating activities | 750,473,809.79 |
VI. Non-main Business
√ Applicable □ Not applicable
Unit: RMB
Amount | Percentage of Total Profit | Reason | Sustainability | |
Investment Income | 181,840,347.56 | 52.88% | Mainly due to long-term equity investment calculated by using the equity method | Yes |
Changes in fair value gains and losses | -12,098,344.02 | -3.52% | Mainly due to the year-on-year increase in the Company's recovery of financial products upon maturity | No |
Asset Impairment | -10,082,554.54 | -2.93% | Due to goodwill impairment loss from Jiuzhaigou Tibetan Mystery Company | No |
Non-operating Revenue | 6,091,127.99 | 1.77% | No | |
Non-Operating Expenses | 34,713,244.90 | 10.10% | Mainly due to the Company's scenic upgrades and renovations | No |
VI. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
End of 2021 | Early 2021 | Proportion increase and decrease | Statement on Significant Changes | |||
Amount | Proportion To Total Assets | Amount | Proportion To Total Assets |
Cash and Bank Balances | 1,858,747,864.04 | 18.92% | 1,337,776,253.98 | 13.92% | 5.00% | |
Accounts receivable | 2,197,594.37 | 0.02% | 5,887,012.36 | 0.06% | -0.04% | |
Contract Assets | 0.00% | 0.00% | 0.00% | |||
Inventory | 12,521,655.81 | 0.13% | 13,424,146.50 | 0.14% | -0.01% | |
Investment Property | 0.00% | 0.00% | 0.00% | |||
Long-term Equity Investment | 1,677,553,347.68 | 17.07% | 1,534,539,625.11 | 15.97% | 1.10% | |
Fixed Assets | 2,697,045,965.17 | 27.45% | 2,508,754,929.16 | 26.11% | 1.34% | |
Projects under Construction | 404,739,821.09 | 4.12% | 771,871,563.73 | 8.03% | -3.91% | |
Right-of-use Assets | 493,815,583.40 | 5.03% | 526,000,589.97 | 5.47% | -0.44% | |
Short-term loan | 0.00% | 0.00% | 0.00% | |||
Contract liabilities | 87,754,309.11 | 0.89% | 188,550,237.52 | 1.96% | -1.07% | |
Long-term loan | 270,000,000.00 | 2.75% | 282,000,000.00 | 2.93% | -0.18% | |
Lease Liabilities | 371,772,172.05 | 3.78% | 390,537,511.61 | 4.06% | -0.28% |
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Item | At the beginning of the reporting period | Changes in fair value gains and losses in the current period | Cumulative fair value changes in equity | Impairment loss of the reporting period | Purchase amount of the reporting period | Sales amount of the reporting period | Other variations | At the end of the reporting period |
Financial Assets | ||||||||
1. Trading financial assets (excluding derivative financial | 328,627,827.60 | -8,179,556.84 | 0.00 | 0.00 | 910,000,000.00 | 1,255,643,588.61 | 25,195,317.85 | 0.00 |
assets) | ||||||||
2. Derivative financial assets | 6,589,730.08 | -3,918,787.18 | 2,670,942.90 | |||||
3. Investment in other equity instruments | 224,266,596.74 | -45,020,144.84 | 92,760,615.31 | 86,485,836.59 | ||||
Subtotal of financial assets | 559,484,154.42 | -12,098,344.02 | -45,020,144.84 | 0.00 | 910,000,000.00 | 1,348,404,203.92 | 25,195,317.85 | 89,156,779.49 |
Total | 559,484,154.42 | -12,098,344.02 | -45,020,144.84 | 0.00 | 910,000,000.00 | 1,348,404,203.92 | 25,195,317.85 | 89,156,779.49 |
Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other changesOther changes are due to cumulative investment incomeAre there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
3. Restrictions on asset rights as of the end of the reporting period
As of the end of the reporting period, the Company's main assets were not seized, frozen, mortgaged or pledged.VII. Analysis of Investment
1. Overview
√ Applicable □ Not applicable
Investment In The Reporting Period (RMB) | Investment Over The Corresponding Period Of Last Year | Rate Of Change |
1,710,295,515.16 | 2,159,030,550.70 | -20.78% |
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
□ Applicable √ Not applicable
4. Financial assets at fair value
√ Applicable □ Not applicable
Unit: RMB
Asset Class | Initial Investment Cost | Changes in fair value gains and losses in the current period | Cumulative fair value changes in equity | Amount purchased during the reporting period | Amount sold during the reporting period | Cumulative investment income | Amount at the end of the period | Capital Source |
Fund | 172,445,378.26 | -7,997,107.50 | 180,433,870.33 | 15,985,599.57 | 0.00 | Temporarily idle own funds | ||
Financial Derivatives | 6,589,730.08 | -3,918,787.18 | 2,670,942.90 | Temporarily idle own funds | ||||
Other (Bank Financial Products) | 156,182,449.34 | -182,449.34 | 910,000,000.00 | 1,075,209,718.28 | 9,209,718.28 | 0.00 | Temporarily idle own funds | |
Total | 335,217,557.68 | -12,098,344.02 | 0.00 | 910,000,000.00 | 1,255,643,588.61 | 25,195,317.85 | 2,670,942.90 | -- |
5. Utilization of raised funds
□ Applicable √ Not applicable
No use of funds in the reporting period of the CompanyVIII. Sales of major assets and equities
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
√ Applicable □ Not applicable
Related party | Equity sold | Date of sale | Price of transaction (RMB 10,000) | Net profit contributed by the equity to the Company from the | Influence of the sale on the Company | The proportion of net profit contributed by the sale of the equity to | Pricing principle for the sale of the equity | Whether it is a related transaction | Relation with related party | Whether all the equity involved has been transferred | Whether the sale is implemented as scheduled. If not, the reasons and | Date of Disclosure | Disclosure Index |
beginning of this period to the date of sale (RMB 10,000) | the total net profit of the Company | measures taken by the Company shall be explained. | |||||||||||
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 100% | Monday, April 12, 2021 | 10,919.93 | -511.94 | This transaction conforms to the Company's overall development strategy, which helps the Company further focus on the main business and improve the efficiency of operation and management. | 16.74% | Fair value | No | N/A | Yes | Yes |
IX. Analysis of Major Subsidiaries and Associates
√ Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.
Unit: RMB
Company Name | Company Type | Main businesses | Registered Capital | Total Assets | Net Assets | Operating income | Operating Profit | Net Profit |
Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd | Subsidiary Company | Theme park + Art performance | 100,000,000.00 | 1,060,879,223.68 | 556,183,600.76 | 362,855,095.01 | 82,530,907.96 | 66,473,712.81 |
Sanya Romance Tourism Performance Co., Ltd. | Subsidiary Company | Theme park + Art performance | 490,000,000.00 | 986,513,761.52 | 952,626,178.47 | 147,957,437.74 | 70,492,876.68 | 53,694,735.59 |
Lijiang Chama Ancient City | Subsidiary Company | Theme park + Art performance | 250,000,000.00 | 642,204,343.18 | 613,982,827.81 | 116,241,285.38 | 40,739,967.46 | 34,002,128.00 |
Tourism Development Co., Ltd | ||||||||
Songcheng Tourism Development Co., Ltd. | Subsidiary Company | Tourism resource development, tourism planning and design, artistic creation, brand and marketing planning of tourist attractions | 50,000,000.00 | 708,187,009.02 | 478,859,288.88 | 66,719,905.66 | 62,789,450.73 | 62,844,964.00 |
Songcheng Performance Management Co., Ltd. | Subsidiary Company | Performance, artistic creation and choreography, performance and brokerage business, performance management | 50,000,000.00 | 137,466,779.12 | 135,311,734.61 | 97,203,277.00 | 70,127,657.19 | 61,350,577.10 |
Huafang Group Inc. (formerly known as Beijing HuafangTechnology Co., Ltd.) | Joint stock company | Internet information service, performance brokerage business, music and entertainment products through information network, game products, competition activities | USD 50,000 | 2,291,613,943.02 | 1,912,350,481.63 | 4,539,988,143.60 | 416,020,067.18 | 320,716,642.08 |
Description of major subsidiaries and associates
1. Huafang Group Inc. (formerly known as Beijing Huafang Technology Co., Ltd.): The original shareholders of Beijing HuafangTechnology Co., Ltd. including Songcheng Performance Development Co., Ltd signed the VIE framework agreement. At the same
time, Global Bacchus Limited, a wholly-owned subsidiary of the Company, purchased 37.06% of the equity of Huafang Group Inc. atthe price of USD 1,976.4706 (equivalent to RMB 12,836.58). After signing the above agreement, Global Bacchus Limited, awholly-owned subsidiary of the Company, holds the 37.06% of the equity of Huafang Group Inc. and has all the rights andobligations pertaining to the 37.06% equity of Beijing Huafang Technology Co., Ltd.
2. The report data of Huafang Group Inc. (formerly known as Beijing Huafang Technology Co., Ltd.) is presented on the basis of thefair value of the investee's identifiable assets and liabilities when the investment is obtained.Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Company Name | Method of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production management and performance |
Global Bacchus Limited | New in 2021 | |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | Equity sale in 2021 |
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Outlook for the Future Development of the Company(I) Development Strategy Planning of the CompanyThe Company is dedicated to telling China’s stories through the Chinese culture, promoting confidence of the nation, and striving tobecome the world’s top company in cultural performance. In the short term, based on all theme parks, the Company will acceleratethe development of the performance park mode to keep a balance between pandemic control and business operation, and to getready for rebound in growth in the post-pandemic era; in the medium term, the Company will enhance its potential throughtechnological and digital transformation, reduce costs and increase efficiency, and pursue growth driven by internal factors; in thelong run, the Company will promote the development of innovative businesses such as performance platforms and high technologyto create new growth drivers.(II) Work Plan in 2022Facing changes in the global landscape and the COVID-19 pandemic unseen in a century, the Company needs to have vision and thecourage to take concrete steps, have an in-depth understanding of the world's development trend, and gain insights into the trendof the industry. In the complex and difficult environment, everyone in the Company shall be united together in doing pioneering andinnovative work by adhering to the "Songcheng model". The Company will stay as the pioneer and leader of Chinese theme parks,and inherit and introduce Chinese culture to the rest of world. In 2022, the Company will mainly work on the following aspects:
1. Promote the progress of the performance park mode
The Company will start with Shanghai Romance Park to prioritize the development of programs and content while improvinghardware and environment, spatial layout and route planning, and later it will comprehensively upgrade and transform other themeparks around the country, strengthen the unique feature of large theme parks with a large number of performances, so as toimprove the capacity and anti-risk ability of each theme park.The Company will continue to implement new concepts regularly, focus on promoting the improvement of the "Romance Show"series to ensure the long-lasting vitality of the series through small innovative adjustments. The Company will create more diverse
and innovative programs including performances for children, performances with dining experience, outdoor performances,interactive performances, immersive performances, technology-infused and trendy performances. Based on the characteristics ofthe region, season and time, the Company will carry out various theme festivals to meet the diverse needs of all visitors around theyear. Aiming at improving the proportion of outdoor areas of theme parks and extending the length of time spent in outdoor areas,the Company will make persistent efforts to further improve the construction of the outdoor areas in theme parks and providinghigh-quality services. Through digital transformation, network construction and intelligent technology, the Company will take theinitiative to embrace technological transformation, enhance investment in science and technology, and make visits more convenientand comfortable.
2. Give full play to advantages and create a new driver for technological growth
The Company will step up the digital transformation of theme parks, further strengthen the application of scientific andtechnological approaches in theme parks and live performances, launch more products and scenes integrating art and technology,and promote the integration of technology, art and performances to improve the experience of visitors, so as to enable theCompany itself to keep up with the latest trends in science and technology and show strong vitality.In particular, the Company will give full play to its rich experience in the in-depth integration of culture-based creativity andtechnology. Through the dual growth drivers of strategic investment and resource integration, more efforts should be made toexplore and develop the application of metaverse technology in theme parks and live performances, and accelerate thedevelopment of independent products infused with VR, AR, holography, lighting & projection and other emerging technologies. TheCompany will complete the construction of technology-infused projects and launch these projects, seize the opportunity to rapidlygrow into a leading domestic supplier that integrates culture-based creativity and technology in depth, so as to build a new driverfor the Company’s technological growth.
3. Integrate resources and incubate platforms to create new formats
The Company will build platforms, upgrade formats and promote business model innovation. The Company will integrate theupstream and the downstream based on its advantageous area, build a new value network and a new industry order, open up asecond channel for growth, and make plans for the Company’s business development through different platforms, so as to revitalizeinternal resources, tap new market demands, new drivers of consumption and new operation models, thus creating a "newSongcheng model" which integrates the supply chain, industrial chain and scene chain.Facing the unfavorable external environment, the Company will be fully prepared for the worst situation possible. The Company willadjust the expansion schedule based on business development, strengthen communication and external cooperation with all parties,promote the transfer cooperation and development of projects in Zhuhai and Australia, and explore more diversified modes forproject cooperation, development, and operation. Through these adjustments, the Company will enjoy more sound financialmanagement, healthier business, and more flexibility in changing its industry positioning and will be able to deal with the risksposed by the uncertain duration of the pandemic. In terms of light-asset expansion, on the basis of the existing mode of deliveringthe entire projects, the Company will create more light-asset cooperation modes based on market demands to give better play tothe brand’s influence and to improve profitability.
4. Employ innovative thinking to complete marketing campaign upgrade
The Company will upgrade the marketing approach by thinking out of the box, and carry out campaigns in terms of extensivechannels, innovative contents, insights into target groups, digital intelligence, etc., so as to create an industry-leading marketingsystem.The Company will create a matrix of channels in multiple dimensions both online and offline. For offline channels, the Company willreach customers such as source travel companies, travel agencies, wholesalers and individual tourists. For online channels, theCompany will develop differentiated marketing strategies based on the attributes of OTA, self-operated e-commerce, we-media
e-commerce and short video e-commerce. Based on creative theme campaigns, the Company will gain traffic both online and offline,identify target groups and reach them accurately. It will attract customers and operates businesses by targeting young people, lovers,friends, parents and children, meeting the needs of business trips and study trips, and seizing market opportunities in neighboringareas, thus aiming for medium-term and long-term development. The Company will build an urban platform for entertainment,leisure and social connection for the people at all ages. The Company will constantly collect data in different dimensions to enrichits base of big data, and employ technical means to help deliver high-quality service and develop an integrated marketing approach.
5. Strengthen management innovation to further reduce costs and increase efficiency
The Company will further optimize the management system and process, speed up the standardization of the managementmechanism, adopt both vertical management and flat management modes, and ensure the good decision-making capability of theCompany and the good execution capability of the staff. The Company will improve the overall management, and deal with themanagement cost and management pressure brought by the pandemic and the Company’s development through managementreconstructing. The Company will manage its projects across the country as a whole, make constant adjustments in employmentarrangements across projects, explore external labor sources, adopt a flexible employment mode, and make full use of all resourcesavailable in the society to meet its demands for flexible employment.(III) Possible Risks
1. Risk of public health emergencies
Public health emergencies affect tourism, leisure and cultural and recreational activities to varying degrees, thus having a negativeimpact on the Company's operating performance and financial situation. Since the end of 2019, the COVID-19 pandemic hasevolved into a global public health emergency and has been going on to this day. This has seriously discouraged consumption in theculture and tourism industries and has had a detrimental effect on the Company's operating performance in the past two years.Countermeasures: the Company will locate its projects nationwide, continuously upgrade and enrich the formats of products, andtransform itself into a platform-based enterprise. It will also reduce costs and increase efficiency, make operation planning in acoordinated way, arrange project operations in various regions reasonably and effectively, and maintain flexibility and resilience, soas to minimize the adverse effects of the pandemic.
2. Risks of Macroeconomic Fluctuation
The global pandemic continues to evolve, and the external environment becomes more complex and challenging. The globallandscape is changing more rapidly, thus adding uncertainties to China's economic and social development. The complicated andchangeable macroeconomic environments may affect the national income and thus people’s consumption, thereby affecting theoperating performance of the Company.Countermeasures: The Company will continue to work on its main business areas by developing a content system divided into high,middle and low levels, make full use of new technology as an innovative way of expression, and enhance product attractivenesswith powerful content. It will also strengthen marketing efforts and continuously expand target groups and forms of tourism tohedge the risks of economic fluctuations.
3. Risks in competition in the industry
In the performance industry, every entity is developing rapidly and the Company is facing fierce competition. Homogeneousproducts and low prices have a negative impact on the order of the industry and its long-term development. Live performances arealso affected by short videos, movies and dramas, games, variety shows, live streaming, VR, AR and other forms of digitalentertainment. A large number of players in the industry have led to a saturated market in all aspects, which has posed greatchallenges to the Company's operation and management.Countermeasures: The Company will focus on its main business areas, strengthen the management mode of "Theme park + Cultural
performance", continuously improve its differentiated management capability and innovative capability, and further consolidate itsown competitive advantages. The Company will embrace the changes of the times and technological upgrades, and actively carryout operation featured by digital transformation, network construction and intelligent technology.
4. Risks in Safety Accidents
Live performances operated by the Company, consisting of both indoor and outdoor performances, may be occasionally hindered bysafety accidents due to the failure of the theater facilities. Safety directly concerns the personal safety of the tourists and thereputation of the Company, which will have a negative impact on the Company's operation and brand.Countermeasures: the Company should always adhere to the bottom line of safety in its principles and actions, formulate clear andoperable rules, regulations, processes and specifications, assign persons in charge to specific positions as well as clarify the rewardand punishment measures, and hold safety training sessions and safety drills throughout the year, so as to reduce safety accidentsand losses as much as possible.
XII. Registration Form for Reception of Research, Communication, Interviews and Other Activitiesduring the Reporting Period
√ Applicable □ Not applicable
Reception Time | Reception location | Reception Method | Reception target type | Reception objects | Main content of the discussion and the information provided | Index of the basic information of research |
Tuesday, January 5, 2021 | Company meeting room | Field Investigation | Institution | Brokerage researcher and fund company manager | Operation overview of projects and Q&A | For details, please refer to the "Record of Investor Relations Activities on Tuesday, January 5, 2021" announced by the Company on http://www.cninfo.com.cn on Wednesday, January 6, 2021. |
Sunday, January 31, 2021 | Company meeting room | Communication over phone | Institution | Brokerage researcher and fund company manager | 2020 performance forecast and Q&A | For details, please refer to the "Record of Investor Relations Activities on Sunday, January 31, 2021" announced by the Company on http://www.cninfo.com.cn on Sunday, January 31, 2021. |
Thursday, April 29, 2021 | Songcheng in Shanghai | Field Investigation | Institution | Brokerage researcher and fund company manager | Investor meetings during the opening period of Songcheng in Shanghai | For details, please refer to the "Record of Investor Relations Activities on Thursday, April 29, 2021" announced by the Company on http://www.cninfo.com.cn on Friday, April 30, 2021. |
Friday, May 7, 2021 | “Investor relations interactive platform” on www.p5w.net | Others | Others | Online Investors | Company's performance presentation meeting of 2020 | For details, please refer to the "Record of Investor Relations Activities on Friday, May 7, 2021" announced by the Company on http://www.cninfo.com.cn on Sunday, May 9, 2021. |
Friday, August 27, 2021 | Company meeting room | Communication over phone | Institution | Brokerage researcher and fund company manager | Performance overview in the first half of 2021 and Q&A | For details, please refer to the "Record of Investor Relations Activities on Friday, August 27, 2021" announced by the Company on http://www.cninfo.com.cn on Sunday, August 29, 2021. |
Section IV Corporate GovernanceI. Basic Situation on Corporate GovernanceDuring the reporting period, the Company further improved its corporate governance structure, standardized its operations andenhanced its corporate governance in strict compliance with the requirements of the Company Law, the Securities Law, the Code ofCorporate Governance of Listed Companies, the Listing Rules of Growth Enterprise Market of Shenzhen Stock Exchange and therelevant laws and regulations and regulatory documents. As at the end of the reporting period, the actual situation of theCompany's governance was basically in compliance with the normative documents issued by the CSRC on the governance of listedcompanies.
1. About Shareholders and Shareholders’ Meetings
The Company convenes and holds shareholders' meetings in strict accordance with the provisions and requirements of the Rules forGeneral Meetings of Listed Companies, the Articles of Association and the Rules of Procedure for General Meetings, so as to ensurethat all shareholders, in particular the minority shareholders are treated fairly, and fully exercise their rights.
2. About the Company and the Controlling Shareholders
The Company has independent business and operation ability, and is independent of the controlling shareholder in terms ofbusiness, personnel, assets, institutions and finance, and the Company's Board of Directors, Board of Supervisors and internalinstitutions operate independently. The controlling shareholders of the Company can strictly regulate their own conduct and havenot interfered directly or indirectly with the decision-making and operation activities of the Company beyond the shareholders’meetings or the Board of Directors of the Company.
3. About the Directors and the Board of Directors
The Company elects directors in strict accordance with the selection and appointment procedures stipulated in the Articles ofAssociation; the Board of Directors of the Company has nine directors, including three independent directors, accounting forone-third of all directors, and the number and composition of the Board of Directors are in compliance with laws and regulationsand the requirements of the Articles of Association. The Company has three female directors, accounting for one third of alldirectors. The three independent directors are experienced professionals engaged in tourism and financial industry for more thantwo decades. Other directors have more than two decades of experience in tourism project development, enterprise managementand rich experience in capital management, and are able to provide effective suggestions for the healthy development of theenterprise and make decisions on major issues of the Company in all aspects. All directors of the Company shall carry out their workin accordance with the Rules of Procedure of the Board of Directors and the Management System of Independent Directors, attendthe General Meeting of Shareholders timely, actively participate in relevant professional training and familiarize themselves withrelevant laws and regulations.
4. About the Supervisors and Board of Supervisors
The Company shall select supervisors in strict accordance with the relevant provisions of the Company Law and the Articles ofAssociation, etc. The Board of Supervisors of the Company has three supervisors, including one staff supervisor, and the numberand composition of the Board of Supervisors are in compliance with the requirements of laws and regulations. The supervisors ofthe Company are able to perform their duties conscientiously in accordance with the requirements of the Rules of Procedure of theBoard of Supervisors, etc., and effectively supervise and express independent opinions on the Company’s major matters, connectedtransactions, financial position, performance of duties of directors and managers.
5. Performance Evaluation & Incentive and Restraint Mechanism
The Company has gradually established a fair and transparent performance evaluation standards and incentive and restraintmechanisms for directors, supervisors and senior management, and the appointment of senior management of the Company isopen and transparent and in compliance with the laws and regulations. In addition, in order to further improve corporategovernance, the Company fully arouses the initiative and creativity of directors, supervisors and senior management, and creategreater benefits for the Company and shareholders. In accordance with the principles of matching responsibilities, rights andbenefits, and based on actual situation of the Company and the characteristics of the industry, the remuneration plan for directors,supervisors and senior management has been formulated according to the Company Law, the Articles of Association and theImplementation Rules of the Remuneration and Appraisal Committee, and other regulations.
6. Relevant stakeholders
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders and achieves a coordinatedbalance of the interests of society, shareholders, the Company and employees to jointly promote the sustainable and sounddevelopment of the Company.
7. Information Disclosure and Transparency
The Company has designated the Secretary of the Board of Directors as the person in charge of investor relations management ofthe Company, who is responsible for management of information disclosure and investor relations of the Company and reception ofvisits and inquiries from shareholders; designated Securities Times, Securities Daily and Cninfo as the newspapers and website forinformation disclosure of the Company, disclosing information truthfully, accurately and timely in strict accordance with the relevantlaws and regulations and ensuring that all shareholders have fair opportunities access to information.Whether there is any significant difference between actual situation of corporate governance and laws, administrative regulationsand the provisions on governance of listed companies issued by CSRC
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and laws, administrative regulations, andthe provisions on governance of listed companies issued by CSRC.II. The company's independence from the controlling shareholders and actual controllers inassets, personnel, finance, organization, business, etc.
Since establishment, the Company has been operating in strict accordance with the requirements of the Company Law, theSecurities Law and other relevant laws and regulations and Articles of Association, and is independent of each other in terms ofbusiness, assets, personnel, organization and finance, and there is no situation in which the Company cannot guarantee itsindependence and maintain its ability to operate independently from its controlling shareholder in terms of business, personnel,assets, organization and finance.
III Horizontal competition
□ Applicable √ Not applicable
IV. Relevant Situation of the Annual General Meeting of Shareholders and the ExtraordinaryGeneral Meeting of Shareholders Held in the Reporting Period
1. The shareholders' meetings for this reporting period
Conference Session | Conference Type | Percentage of Investors Involved | Date of Conference | Date of Disclosure | Meeting Resolution |
Shareholders' General Meeting in 2020 | Annual General Meeting | 56.89% | Tuesday, May 18, 2021 | Tuesday, May 18, 2021 | Notice of Resolution of 2020 Annual General Meeting of Shareholders (2021-020), available at http://www.cninfo.com.cn/ |
The first extraordinary general meeting of shareholders in 2021 | Extraordinary general meeting of shareholders | 57.15% | Friday, August 27, 2021 | Friday, August 27, 2021 | Notice of the First Extraordinary General Meeting of Shareholders in 2021 (2021-035), available at http://www.cninfo.com.cn/ |
2. Convening of the interim shareholders' general meetings upon request of the preferred stockholders whosevoting rights are restored
□ Applicable √ Not applicable
V. The Company Has Arrangements for Differences in Voting Rights
□ Applicable √ Not applicable
VI. Governance of Red-Chip Company
□ Applicable √ Not applicable
VII. Directors, Supervisors and Senior Management1 Basic information
Name | Post | Position status | Gender | Age | Starting date of tenure | Termination Date of tenure | Number of shares held at the beginning of the period (share) | Number of shares increased in the period (share) | Number of shares decreased in the period (share) | Other changes (share) | Number of shares held at the end of the period | Reason for change in shares |
Huang Qiaoling | Director | Incumbent | Male | 64 | Sunday, June 6, | Monday, August 8, | 309,192,225 | 309,192,225 |
2010 | 2022 | |||||||||||
Huang Qiaolong | Director | Incumbent | Male | 62 | Sunday, June 6, 2010 | Monday, August 8, 2022 | 85,836,643 | 85,836,643 | ||||
Zhang Xian | Chairman | Incumbent | Female | 48 | Sunday, June 6, 2010 | Monday, August 8, 2022 | 2,166,642 | 2,166,642 | ||||
Shang Lingxia | Director, President | Incumbent | Female | 47 | Monday, August 12, 2013 | Monday, August 8, 2022 | 823,323 | 823,323 | ||||
Zhang Jiankun | Director, Executive President | Incumbent | Male | 58 | Wednesday, March 20, 2013 | Monday, August 8, 2022 | 1,646,647 | 1,646,647 | ||||
Huang Hongming | Director | Incumbent | Male | 50 | Friday, April 26, 2019 | Monday, August 8, 2022 | ||||||
Lanke | Independent Director | Resigned | Male | 72 | Friday, August 21, 2015 | Tuesday, May 18, 2021 | ||||||
Yang Yiqing | Independent Director | Incumbent | Male | 52 | Tuesday, May 18, 2021 | Monday, August 8, 2022 | ||||||
Liu Shuzhe | Independent Director | Incumbent | Male | 65 | Thursday, August 8, 2019 | Monday, August 8, 2022 | ||||||
Yu Qinyi | Independent Director | Incumbent | Female | 42 | Friday, March 24, 2017 | Monday, August 8, 2022 | ||||||
Zhu Hualu | Supervisor | Incumbent | Female | 67 | Sunday, June 6, 2010 | Monday, August 8, 2022 | ||||||
Yu Feng | Staff Supervisor | Incumbent | Female | 46 | Monday, August 12, 2013 | Monday, August 8, 2022 | ||||||
Xu Jie | Supervisor | Incumbent | Female | 54 | Tuesday, August 9, 2016 | Monday, August 8, 2022 | 360 | 360 | ||||
Zheng Qi | Vice President | Incumbent | Male | 45 | Friday, October 26, 2018 | Monday, August 8, 2022 |
Chen Shengmin | Chief Financial Officer | Incumbent | Male | 51 | Friday, May 21, 2010 | Monday, August 8, 2022 | 433,330 | 433,330 | ||||
Hou Li | Secretary of the Board | Incumbent | Female | 39 | Thursday, April 22, 2021 | Monday, August 8, 2022 | 65,000 | 65,000 | ||||
Total | -- | -- | -- | -- | -- | -- | 400,164,170 | 0 | 0 | 400,164,170 | -- |
Whether there is any resignation of directors, supervisors and senior management during the reporting period
√ Yes □ No
1. On April 22, 2021, Mr. Chen Shengmin resigned as the Secretary of the Board of Directors due to position adjustment, and afterhis resignation, Mr. Chen Shengmin still served as the Chief Financial Officer of the Company.
2. On May 18, 2021, Mr. Lan Ke resigned as an independent director, chairman of the Nomination Committee and member of theDevelopment Strategy Committee of the 7th Board of Directors when his service period was about to reach six years. After hisresignation, Mr. Lan Ke would no longer hold any position in the Company.
3. On August 26, 2021, to facilitate the better long-term development of the Company, Mr. Huang Qiaoling applied for resigning asthe Chairman, and Ms. Zhang Xian applied for resigning as the President. On the same day, the Company elected Ms. Zhang Xian asthe Chairman and employed Ms. Shang Lingxia as the President. After his resignation, Mr. Huang Qiaoling remains as director of theCompany, chairman of the Development Strategy Committee, member of the Nomination Committee, and general director andgeneral planner of the Romance Show series and performing arts works of the Company.Changes in directors, supervisors and senior management
√ Applicable □ Not applicable
Name | Position | Type | Date | Reason |
Chen Shengmin | Secretary of the Board | Resigned | Thursday, April 22, 2021 | |
Hou Li | Secretary of the Board | Appointed | Thursday, April 22, 2021 | Appointment of Board of Directors |
Lanke | Independent Director | Resigned upon expiration of the tenure of service | Tuesday, May 18, 2021 | Resigned when the tenure of service is about to expire |
Yang Yiqing | Independent Director | Elected | Tuesday, May 18, 2021 | Election of the General Meeting of Shareholders |
Huang Qiaoling | Chairman | Resigned | Thursday, August 26, 2021 | |
Zhang Xian | Chairman | Elected | Thursday, August 26, 2021 | Election of the Board of Directors |
Zhang Xian | President | Resigned | Thursday, August 26, 2021 | |
Shang Lingxia | President | Appointed | Thursday, August 26, 2021 | Appointment of Board of Directors |
2. Positions
Professional backgrounds, major work experiences and current main responsibilities in the Company for incumbent directors,supervisors and senior management of the Company
1. Mr. Huang Qiaoling: 64 years old, senior economist, Chinese nationality, without permanent residency abroad. Mr. HuangQiaoling served as Chairman and President of Songcheng Tourism Development Co., Ltd. from February 1999 to December 2000.Since November 1997, he has served as Chairman of Songcheng Group; From August 2001 to March 2013, he served as Chairman ofHangzhou World Leisure Expo Park Co., Ltd. He served as Chairman of the Company from December 2000 to August 2021. He hasserved as a director of the Company since December 2000.
2. Mr. Huang Qiaolong: 62 years old, college degree, economist, Chinese nationality, without permanent residency abroad. Mr.Huang Qiaolong served as Vice President and Chairman of Songcheng Holdings from March 2003 to November 2009. He has servedas a director of the Company since December 2000.
3. Ms. Zhang Xian: 48 years old, master degree, a famous person in national publicity and cultural system, with the title of "FourExcellency" talent. Chinese nationality, without permanent residency abroad. Ms. Zhang Xian used to be an English teacher inmiddle school and Deputy Director of Nanhu Revolutionary Memorial Hall. In December 2000, she joined Songcheng Group asDeputy General Manager of Songcheng Holdings; From February 2002 to July 2003, she served as the General Manager ofSongcheng Tourism Management Branch; From August 2003 to February 2007, she served as Vice President of Songcheng Holdings;From March 2007 to February 2009, she served as Vice President of the Company; From March 2009 to December 2010, she servedas Executive President of the Company; She has served as the President of the Company from December 2010 to August 2021. Shehas served as a director of the Company since June 2010 and Chairman of the Company since August 2021.
4. Ms. Shang Lingxia: 47 years old, bachelor degree, Chinese nationality, without permanent residency abroad. Ms. Shang Lingxiaserved as the secretary of Chairman of Songcheng Holdings from March 2001 to July 2003; From August 2003 to September 2005,she served as General Manager of Songcheng Tourism Management Branch; From October 2005 to April 2008, she served asGeneral Manager of Hangzhou World Leisure Expo Park Co., Ltd.; From May 2008 to November 2010, she served as GeneralManager of First World Hotel; From December 2010 to December 2017, she served as Vice President of the Company; From January2018 to August 2021, she served as Executive Vice President of the Company. She has served as a director of the Company sinceAugust 2013 and the President of the Company since August 2021.
5. Mr. Zhang Jiankun: 58 years old, college degree, Chinese nationality, without permanent residency abroad. From October 1994 toApril 1999, Mr. Zhang Jiankun served as the director of Songcheng Real Estate Engineering Department; From May 1999 to February2002, he served as the Engineering Department Manager of Hangzhou Huamei Science and Technology Education Investment Co.,Ltd.; From March 2002 to February 2004, he served as Deputy General Manager of Songcheng Holding Engineering ConstructionDepartment; From March 2004 to February 2005, he served as Deputy General Manager of Landscape Real Estate; From March2005 to February 2006, he served as General Manager of Songcheng Holdings Engineering Department; From March 2006 toFebruary 2009, he served as Vice President of Landscape Real Estate; From March 2009 to February 2012, he served as VicePresident of the Company; From March 2012 to December 2013, he served as Executive Vice President of the Company; He hasbeen the Executive President of the Company since January 2013 and the director of the Company since February 2013.
6. Mr. Huang Hongming: 50 years old, bachelor degree, senior economist, Chinese nationality, without permanent residency abroad.Mr. Huang Hongming has been the Deputy General Manager of Songcheng Real Estate Company; Vice Chairman and President ofHong Kong Jinhui International Investment Group; Since September 2013, he has served as Executive President of SongchengHoldings Company, and has served as a director of the Company since April 2019.
7. Mr Yang Yiqing: 52 years old, master degree, Chinese nationality, without permanent residency abroad. He is a senior expert inZhejiang Merchants research and professor of Zhejiang Gongshang University. He used to be the head of a subordinate newspaperof Zhejiang Daily Press Group, assistant to the Chairman and director of strategic development of Songcheng Group, and executivedirector of Holley Group. Now he is the Deputy Director of Zhejiang Merchants Institute of Zhejiang Gongshang University, Director
of Zhejiang Merchants Museum, Executive Director of Zhejiang Merchants Seminar, Secretary General of Academic Research Centerof the General Association of Zhejiang Merchants, member of Organizing Committee of Global Zhejiang Entrepreneur Convention,executive member of Zhejiang Federation of Industry and Commerce, etc. He has served as an independent director of theCompany since May 2021.
8. Mr. Liu Shuzhe: 65 years old, master degree, senior economist, Chinese nationality, without permanent residency abroad. Mr. LiuShuzhe has served as loan officer of Jiande Sub-branch of People's Bank of China, Deputy Head of Xiaoshan Sub-branch of Industrialand Commercial Bank of China, Chief, Deputy Director and Vice President of Hangzhou Branch of Industrial and Commercial Bank ofChina, and has been an independent director of the Company since August 2019.
9. Ms. Yu Qinyi: 42 years old, master degree, Chinese nationality, without permanent residency abroad. From July 2005 toDecember 2009, she served as strategic investment consultant of Zhongxin Zhongliang Lianxing Co.,Ltd.; Since January 2010, she hasbeen a certified public accountant of Zhejiang Herui Certified Public Accountants Co., Ltd., and has been an independent director ofthe Company since March 2017.
10. Ms. Zhu Hualu: 67 years old, college degree, Chinese nationality, without permanent residency abroad. From January 1995 toJanuary 2005, Ms. Zhu Hualu served as Art Department Manager, General Manager Assistant and Executive Deputy GeneralManager of Hangzhou World City Songcheng Real Estate Co., Ltd., and Vice President of Hangzhou Songcheng Group Holdings Co.,Ltd.; She has served as Chairman of the Board of Supervisors of the Company since December 2000.
11. Ms. Yu Feng: 46 years old, bachelor degree, Chinese nationality, without permanent residency abroad. Ms. Yu Feng served asDeputy Manager of Xiaoshan International Hotel from October 1995 to June 2003; From August 2003 to July 2004, she served asDeputy Manager of Human Resources Department of Hangzhou Paradise; From August 2004 to November 2006, she served as HRManager of Hangzhou Landscape Real Estate Co., Ltd. and HR Manager of Hangzhou World Leisure Expo Park Co., Ltd.; FromDecember 2006 to April 2011, she served as Director of Human Resources Department and Deputy General Manager of generalmanager office of Hangzhou First World Hotel Co., Ltd.; From April 2011 to December 2012, she served as Deputy Director ofHuman Resources Department of Hangzhou Songcheng Group Holdings Co., Ltd.; From January 2013 to December 2015, she servedas Director of Hangzhou First World Hotel Co., Ltd. and Deputy General Manager of the administrative office; From January 2016 toDecember 2017, she served as General Manager of Hangzhou Songcheng Tourism Development Co., Ltd.; She has served asPresident Assistant of the Company since January 2018, and has served as supervisor of the Company since August 2013.
12. Ms. Xu Jie, 54 years old, assistant ideological and political worker, Chinese nationality, without permanent residency abroad.From June 1999 to February 2002, Ms. Xu Jie served as Deputy Manager of Real Estate Marketing Department of Hangzhou XianghuGreen Valley Tourism Development Co., Ltd. From March 2002 to June 2002, she served as Deputy Manager of Early StageDepartment of Hangzhou Nandu Songcheng Real Estate Co., Ltd.; From July 2002 to May 2006, she served as Property Manager ofHangzhou World Leisure Expo Park Co., Ltd.; From June 2006 to December 2008, she served as Property Manager of HangzhouSongcheng Landscape Real Estate Co., Ltd.; From February 2009 to December 2010, she served as General Manager Assistant ofHangzhou Songcheng Group Property Services Co., Ltd.; Since January 2010, she has served as Deputy General Manager ofHangzhou World Leisure Expo Park Co., Ltd., and since August 2016, she has served as supervisor of the Company.
13. Mr. Zheng Qi: 45 years old, college degree, Chinese nationality, has served as Sales Manager of the mobile phone business unitof the Market Development Department of China Putian Hangzhou Subsidiary; Manager of Jiangsu and Hubei Regions of MobileCommunications Division of East China Representative Office of Ericsson China Investment Co., Ltd.; General Manager of EnergyDivision of Aerospace Communications Holding Group Co., Ltd.; Deputy general manager of Zhejiang Aerospace ElectronicInformation Industry Co., Ltd. Since December 2013, he has served as Executive Director and General Manager of Lijiang ChamaAncient City Tourism Development Co., Ltd, Chairman and General Manager of Aba Zhou Jiuzhai Romance Tourism Development Co.,Ltd, Director and General Manager of Guilin Lijiang Romance Performance Development Co., Ltd, Director and General Manager ofJiuzhaigou Tibetan Mystery Culture Co., Ltd and President Assistant of Songcheng Performance Development Co., Ltd, and hasserved as Vice President of the Company since October 2018.
14. Mr. Chen Shengmin: 51 years old, college degree, accountant, Chinese nationality, without permanent residency abroad. From
March 2002 to March 2004, Mr. Chen Shengmin served as the lead accountant of Finance Department of the Leyuan Tourism; FromApril 2004 to February 2005, he served as the Finance Manager of the Leyuan Tourism; From March 2005 to July 2007, he served asFinance Manager of Landscape Real Estate; From May 2017 to April 2021, he served as the Secretary of the Board of Directors ofthe Company. He has served as the Chief Financial Officer of the Company since July 2007.
15. Ms. Hou Li: 39 years old, master degree, Chinese nationality, without permanent residency abroad. She has worked inSongcheng Performance since May, 2008 and served as the head of Securities Department and assistant to the General Manager ofSongcheng Performance. She began to serve as the Representative of Securities Affairs of Songcheng Performance from January2013, and served as Deputy General Manager for securities investment of Songcheng Performance from January 2016. She hasserved as the Secretary of Board of Directors of the Company since April 2021.Position held in shareholders entities
√ Applicable □ Not applicable
Name | Name of shareholder entity | Position held in shareholders entities | Starting date of tenure | Termination Date of tenure | Remuneration and allowance received from a shareholder entity or not? |
Huang Qiaoling | Hangzhou Songcheng Group Holdings Co., Ltd | Executive Director | No | ||
Huang Qiaolong | Hangzhou Songcheng Group Holdings Co., Ltd | Supervisor | No | ||
Huang Hongming | Hangzhou Songcheng Group Holdings Co., Ltd | Executive President | Yes |
Position held in other entities
√ Applicable □ Not applicable
Name | Name of other entity | Position held in other entities | Starting date of tenure | Termination Date of tenure | Renumeration received from other entity or not |
Yu Qinyi | Zhejiang Herui Certified Public Accountants Co., Ltd. | Certified Public Accountant | Yes | ||
Yang Yiqing | Xiangpiaopiao Food and Zhejiang Meili High Technology Co.,Ltd | Independent Director | Yes | ||
Liu Shuzhe | Bank of Hangzhou, CHINT Electrics Co., Ltd., Hangzhou GREENDA Electronic Materials Co., Ltd. | Independent Director | Yes | ||
Xu Jie | Hangzhou World Leisure Expo Park Co., Ltd | Deputy General Manager and Supervisor | Yes |
Incumbent or outgoing directors, supervisors and senior management in the reporting period that have been imposedadministrative penalties by CSRC in the last three years
□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
The following describes the decision-making program, determination basis and actual payment of remuneration for directors,supervisors and senior management.Procedures for making decisions on the remuneration of directors, supervisors and senior management personnel: remuneration ofdirectors and supervisors is determined by the general meeting of shareholders, while remuneration of senior managers isdetermined by Board of Directors. Directors, supervisors and senior management personnel who perform their duties in theCompany receive remuneration according to specific positions.Basis for determining the remuneration of directors, supervisors and senior management personnel: The remuneration of directors,supervisors and senior management personnel shall be determined and distributed according to the Working Rules ofRemuneration and Appraisal Committee of the Board of Directors of the Company, and based on the Company's operatingperformance, their own performance, work ability, post responsibilities and other assessments.Remuneration of directors, supervisors and senior management in the reporting period of the Company
Unit: ten thousand RMB
Name | Post | Gender | Age | Position status | Total remuneration from the Company before tax | Whether to receive remuneration from related parties or not |
Huang Qiaoling | Director | Male | 64 | Incumbent | 64.32 | No |
Huang Qiaolong | Director | Male | 62 | Incumbent | Yes | |
Zhang Xian | Directors and Chairman | Female | 48 | Incumbent | 63.12 | No |
Shang Lingxia | Director, President | Female | 47 | Incumbent | 53.43 | No |
Zhang Jiankun | Director, Executive President | Male | 58 | Incumbent | 57.12 | No |
Huang Hongming | Director | Male | 50 | Incumbent | Yes | |
Yang Yiqing | Independent Director | Male | 52 | Incumbent | 3.33 | No |
Liu Shuzhe | Independent Director | Male | 65 | Incumbent | 5 | No |
Yu Qinyi | Independent Director | Female | 42 | Incumbent | 5 | No |
Zhu Hualu | Chairman of the Board of Supervisors | Female | 67 | Incumbent | 5 | No |
Yu Feng | Staff Supervisor | Female | 46 | Incumbent | 35.5 | No |
Xu Jie | Supervisor | Female | 54 | Incumbent | Yes | |
Zheng Qi | Vice President | Male | 45 | Incumbent | 51 | No |
Chen Shengmin | Chief Financial Officer | Male | 51 | Incumbent | 45.43 | No |
Hou Li | Secretary of the Board | Female | 39 | Incumbent | 33.82 | No |
Total | -- | -- | -- | -- | 422.07 | -- |
VIII. Performance of Directors' Duties during the Reporting Period
1. The Board of Directors during the reporting period
Conference Session | Date of Conference | Date of Disclosure | Meeting Resolution |
The 10th meeting of the 7th Board of Directors | Thursday, April 22, 2021 | Friday, April 23, 2021 | Details are provided in the Notice of Resolution of the 10th Meeting of the 7th Board of Directors (2021-014), available at http://www.cninfo.com.cn/ |
The 11th meeting of the 7th Board of Directors | Monday, June 21, 2021 | Monday, June 21, 2021 | For details, see Notice of Resolution of the 11th Meeting of the 7th Board of Directors (2021-023), available at http://www.cninfo.com.cn/ |
The 12th meeting of the 7th Board of Directors | Wednesday, August 11, 2021 | Thursday, August 12, 2021 | For details, see Notice of Resolution of the 12th Meeting of the 7th Board of Directors (2021-025), available at http://www.cninfo.com.cn/ |
The 13th meeting of the 7th Board of Directors | Thursday, August 26, 2021 | Thursday, August 26, 2021 | For details, see Notice of Resolution of the 13th Meeting of the 7th Board of Directors (2021-031), available at http://www.cninfo.com.cn/ |
The 14th meeting of the 7th Board of Directors | Friday, October 22, 2021 | Deliberation of Report of the Third Quarter of 2021 |
2. Attendance of director at the meeting of Board of Directors and general meeting of shareholders
Attendance of director at the meeting of Board of Directors and general meeting of shareholders | |||||||
Name of director | Number of board meetings to attend during the reporting period | Number of on-site attendance of board meetings | Number of attendance of board meetings by means of telecommunications | Number of attendance of board meetings by entrustees | Number of absence at board meetings | Whether absent from board meetings in person for two consecutive times | Number of attendance of shareholders' general meetings |
Huang Qiaoling | 5 | 5 | 0 | 0 | 0 | No | 2 |
Huang Qiaolong | 5 | 5 | 0 | 0 | 0 | No | 2 |
Zhang Xian | 5 | 5 | 0 | 0 | 0 | No | 2 |
Shang Lingxia | 5 | 5 | 0 | 0 | 0 | No | 2 |
Zhang Jiankun | 5 | 5 | 0 | 0 | 0 | No | 2 |
Huang Hongming | 5 | 5 | 0 | 0 | 0 | No | 2 |
Liu Shuzhe | 5 | 5 | 0 | 0 | 0 | No | 2 |
Yang Yiqing | 4 | 4 | 0 | 0 | 0 | No | 1 |
Yu Qinyi | 5 | 5 | 0 | 0 | 0 | No | 2 |
Lanke | 1 | 1 | 0 | 0 | 0 | No | 1 |
3. Objections of directors to related issues of the company
Whether directors raise any objection to related issues of the Company
□ Yes √ No
During the reporting period, directors did not raise objections to the company's related issues.
4. Other information on directors' performance of duties
Whether proposals made by directors were adopted by the Company
√ Yes □ No
Statement on the acceptance or rejection of director's proposals on company issues.In the report period, all directors of the Company have acted with due diligence and adhered to their duties by carrying out varioustasks according to the regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange as well as the CompanyLaw and Securities Law, and its Articles of Association, Rules of Procedure of Board of Directors and Working Rules of IndependentDirectors, thus conducting in-depth communication and discussion and reaching consensus on all the proposals submitted to theBoard of Directors for review, and resolutely supervising and promoting the implementation of the resolutions of the Board ofDirectors to ensure scientific, timely and efficient decision-making and secure the legitimate rights and interests of the Companyand all shareholders.
XI. Performance of Special Committees under the Board of Directors during the Reporting Period
Name of Committee | Members | Number of meetings held | Date of Conference | Meeting subjects | Important opinions and suggestions proposed | Performance of other duties | Specific objections (if any) |
Audit Committee | Liu Shuzhe, Yu Qinyi, Zhang Jiankun | 3 | Thursday, April 22, 2021 | Review and approve: 2020 Final Financial Report, 2020 Profit Distribution Plan Proposal, 2020 Audit Report Proposal, 2020 Internal Control Self-Evaluation Report, 2021 Auditor Appointment Proposal, 2020 Annual Report’s Full Text and Summary, and 2021 First Quarter Report. | With due diligence, the Audit Committee has carried various tasks according to the Company Law and its Articles of Association and Rules of Procedure of Board of Directors, putting forward kinds of opinions according to the actual position of the Company and passing all proposals unanimously after full communication and discussion. | ||
Thursday, August 26, 2021 | Review and approve: 2021 Semi-Year Report’s Full Text | ||||||
Friday, October 22, 2021 | Review and approve: 2021 Q3 Report’s Full Text | ||||||
Nomination | Lanke, Huang | 1 | Thursday, April | Review and | The |
Committee | Qiaoling, Liu Shuzhe | 22, 2021 | approve: Proposal of Changing the Secretary of Board of Directors and Proposal on Expiration of Independent Directors' Tenure and Election of Substitute Independent Directors | Nomination Committee has reviewed for the eligibility of candidates and unanimously adopted the relevant proposal. | |||
Nomination Committee | Yang Yiqing, Huang Qiaoling, Liu Shuzhe | 1 | Thursday, August 26, 2021 | Review and approve: Proposal of Electing the Chairman of the Company and Proposal of Employing the President of the Company. | |||
Development Strategy Committee | Huang Qiaoling, Zhang Xian, Lanke | 1 | Thursday, April 22, 2021 | Review and approve: Work Report of the Board of Directors in 2020 | The Development Strategy Committee has made in-depth research and analysis on the industry and the challenges it may face in the future, put forward valuable opinions for the Company to formulate mid- and long-term development |
X. Work of the Board of SupervisorsHas Board of Supervisors discovered any risk in the company during the supervision in the reporting period
□ Yes √ No
The Board of Supervisors has no objection to the supervision matters during the reporting period.XI. Personnel of the Company
1. Number, profession composition and educational background of the employees
strategies, andunanimouslyagreed torelevantproposals.Number of incumbent employees in the parent company at theend of the reporting period (persons)
Number of incumbent employees in the parent company at the end of the reporting period (persons) | 99 |
Number of incumbent employees of major subsidiaries at the end of the reporting period (persons) | 1,060 |
Total number of incumbent employees at the end of the reporting period (persons) | 1,159 |
Number of employees receiving salaries in current period (person) | 1,159 |
Number of retired employees requiring the parent company and major subsidiaries to bear their costs | 0 |
Profession composition | |
Type of profession composition | Number of employees for profession composition (person) |
Production personnel | 317 |
Salesperson | 75 |
Technical personnel | 196 |
Financial personnel | 75 |
Administrative personnel | 65 |
Executive personnel | 190 |
Service personnel | 241 |
Total | 1,159 |
Educational background | |
Type of educational background | Number of employees (person) |
Junior high school and below | 61 |
High school/technical secondary school | 258 |
Junior college | 438 |
Bachelor | 382 |
Master and above | 20 |
Total | 1,159 |
2. Remuneration policies
The Company has set up the big "H" broadband remuneration system, which not only provides a promotion channel and platformfor management, but also encourages employees to get higher remuneration by improving their skills and professional levels. TheCompany has established a national professional title and professional qualification reward system, and monthly and one-timerewards have been granted for certain professional titles and professional qualification certificates. A key employee reward systemhas been established for employees with excellent business skills, and these rewards are granted monthly. Promotion anddowngrading decisions are made through quarterly assessment to fully promote the fairness and competitiveness within theCompany. We evaluate and adjust employees’ salaries based on the Company's operating performance, employees’ appraisal results,work performance, social and economic developments, price level and regional differences, and advocate a salary confidentialitysystem.Salary is composed of post salary, various subsidies, benefits and bonuses. The salary of management personnel consists of basicsalary, post salary, performance salary and allowance; the salary of employee-level positions consists of basic salary, performancesalary and allowance. Among them, the basic salary and performance salary are verified according to the management level andperformance appraisal scheme. The performance salary of employees is closely associated with business operation in theCompany's slack season and busy season and respective workload, on the basis of the principle of "more pay for more work” Thepost salaries for the management personnel at supervisor level or above are determined according to their management level.
3. Training plan
(1) The Company is committed to building a comprehensive talent training system and a scientific talent promotion mechanism tohelp the Company achieve its strategic goals and continuously improve the all-round ability of its employees. The cultivation andpromotion of talents are the main components of the annual KPI for each manager of the Company and also an important part inassessing the responsibility system of annual business objectives of the company. The Company attaches great importance to thecultivation of talents, and gives notices of praise and material rewards to subsidiaries that have made outstanding contributions tothe cultivation of talents.
(2) The Company has established a sound staff training system and internal trainer training system, and has formulated targetedtraining programs such as "Induction Training", "Job Skills Training", "General Skills Training" , "Professional Skills UpgradingTraining", "Professional Skills Upgrading Training", "Management Skills Training", "Internal Trainer Training (TTT)", "Songcheng StarTraining Class ", "Artistic Performance and Management", and intensive training classes within each vertical management system.The Company has established a vertical management center of the scenic spots, held vertical management meetings regularly, andcarried out various forms of training every year to improve the business and management skills of their employees within thesystem. The vertical management center of the scenic spots regularly visits each subordinate company for work inspection everyyear. In addition to such inspections, the excellent work experience and cases of each company are also shared within the system.
(3) The Company helps the growth of talents through a combination of internal and external trainings. We have cooperated withmany external professional training institutions to constantly update and strengthen the professional knowledge and practical skills
of our talents in administration, human resources, finance and taxation, marketing, planning, business and management. TheCompany has established “Songcheng Group Online School” to create good study atmosphere for employees in the Company toparticipate in online training anytime and anywhere. In addition, the Company has held a mini-lecture contest to encourageemployees to participate in the recording of mini-lectures and the production of courses. The Company has uploaded excellentcourses to the Online School for all employees to learn.
(4) The subsidiaries of the Company have held a variety of themed activities, such as Quarterly Business Skills Competition, OutdoorTraining for Employees, Four Seasons Themed Event for Employees and Internal Trainers Salon. Subject to local COVID-19 policies,the Company advocates healthy exercise approaches and enriches the development of training and other activities.
(5) The Company registered an official corporate culture publicity account named "Songcheng people" on WeChat, so as to displayvarious corporate culture activities organized by the Company to employees, and strengthen the publicity of award-winningemployees such as "the Most Beautiful Songcheng people", "Star Employees" and "Excellent Interns", thus creating an excellentcorporate culture atmosphere. Employees can also leave messages on WeChat, and any suggestions and opinions about theCompany can be sent to the chairman's mailbox. In addition, the Company shall strengthen the interaction and communicationbetween its management and the employees, and implement excellent and feasible suggestions put forward by employees.
4. Labor outsourcing
√ Applicable □ Not applicable
Total hours of labor outsourcing (hours) | 1,425,076 |
Total remuneration paid for labor outsourcing (RMB) | 28,501,534.53 |
XII. Profit Distribution and Conversion of Capital Reserves into Share CapitalFormulation, execution or adjustment of profit distribution policy, especially the cash dividend during the Reporting Period
√ Applicable □ Not applicable
The Company held the 10th meeting of the 7th Board of Directors and 8th meeting of the 7th Board of Supervisors on April 22, 2021and the 2020 Annual General Meeting of Shareholders on May 18, 2021, reviewing and approving the 2020 Annual ProfitDistribution Plan, under which the Company would, on the basis of the total capital of 2,614,694,040 shares, distribute a cashdividend of RMB 0.50 (including tax) for every 10 shares to all shareholders at the end of 2020. Total cash dividend of RMB130,734,702 was distributed. During the reporting period, the Company has completed the equity distribution. The equityregistration date: Tuesday, June 1, 2021 and the date of exclude right (XR) and exclude dividend (DR): Wednesday, June 2, 2021.
Special notes on cash dividend policies | |
Whether they comply with the requirements of the Company's articles of incorporation or the resolutions of the General Meeting of Shareholders: | Yes |
Whether the dividend standards and proportions are distinct and clear: | Yes |
Whether the relevant decision-making procedures and mechanisms are complete: | Yes |
Whether the independent directors performed their duties and played their due role: | Yes |
Whether the minority shareholders have the opportunity to fully express their opinions and appeals, and whether their legitimate rights and interests have been fully protected: | Yes |
Whether relevant conditions and procedures are compliant and transparent when the cash dividend policies are being adjusted or changed: | Not applicable. |
The plan for profit distribution and capitalization of capital reserves during the reporting period is consistent with relevantprovisions in the articles of association and dividend management measures of the Company
√ Yes □ No □ Not applicable
The plan for profit distribution and capitalization of capital reserves during the reporting period is in compliance with relevantprovisions in the articles of association of the Company.Profit distribution and capitalization of capital reserves in the current year
Number of bonus shares per 10 shares (shares) | 0 |
Number of dividend payout per 10 shares (RMB) (tax included) | 0.50 |
Number of capitalized shares per 10 shares (shares) | 0 |
Equity base in the distribution preplan (shares) | 2,614,694,040 |
The amount of cash dividends (yuan) (including tax) | 130,734,702.00 |
The amount of cash dividends (yuan) in other ways (such as share repurchase) | 0.00 |
The total amount of cash dividends (including in other ways) (yuan) | 130,734,702.00 |
Distributable profits (RMB) | 3,131,881,024.60 |
The ratio of the total amount of cash dividends (including in other ways) to the total amount of profit distribution | 100.00% |
Latest cash dividend | |
If the Company's development stage is not easy to define but there are significant capital expenditure arrangements, when the profits are being distributed, the proportion of the cash dividends in this profit distribution should be at least 20% | |
Details of the preplans on profit distribution or capitalization of capital reserves | |
Audited by BDO China Shu Lun Pan CPAs (special general partnership), the net profit attributable to the shareholders of the listed company in 2021 was RMB 315,130,800. Based on the total share capital of 2,614,694,040 shares as at Friday, December 31, 2021, the Company distributed RMB 0.50 (tax included) of dividend for every 10 shares to all the shareholders, with a total cash dividend of RMB 130,734,702. |
The profits of the Company in the Reporting Period and the parent company's profits distributable to shareholders are positive, butthe Company did not put forward a proposed plan for cash dividend distribution.
□ Applicable √ Not applicable
XIII. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan orOther Employee Incentive Measures
□ Applicable √ Not applicable
During the reporting period, the Company has no equity incentive plan, employee stock ownership plan or other employeeincentive measures and their implementation.XIV. Establishment and implementation of the Company’s Internal Control System During theReporting Period
1. Establishment and implementation of internal controls
In the report period, the Company has updated and improved its internal control system timely in accordance with the Basic Normsof Internal Control of Enterprises and its guidelines. It has established a simple, suitable and effective one with scientific design. TheAudit Committee and the internal audit department have jointly formed the organization for risk management and internal controlto supervise and evaluate the internal control of the Company. Through the operation, analysis and assessment related to theinternal control system, the Company has effectively prevented risks in operation and management, thus promoting theachievement of internal control objectives.
2. Details of material weakness in internal control found during the reporting period
□ Yes √ No
XV. Management and controls of subsidiaries during the Reporting Period
Company Name | Integration plan | Integration progress | Problems arising from the integration | Actions taken | Solving progress | Follow-up plan |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
XVI. Self-assessment Report on Internal Control or Audit Report on Internal Control
1. Internal control self-evaluation report
Date of full-text disclosure for internal control assessment report | Friday, April 22, 2022 |
Full-text disclosure index for internal control assessment report | For details, see 2021 Annual Internal Control Self-Evaluation Report published by the company on http://www.cninfo.com.cn on Friday, April 22, 2022 |
Percentage of total asset from units included in the assessment out of the total asset from the company's consolidated financial statements | 77.48% |
The proportion of operating income of | 89.81% |
parties included in the assessment to total operating income from the Company's consolidated financial statements | ||
Defect identification criteria | ||
Category | Financial Report | Non-financial reports |
Qualitative standards | A material deficiency in internal control over financial reporting is considered to exist if: (1) The Company's control environment is ineffective; (2) Fraud by any of the directors, supervisors and senior management; (3) The Certified Public Accountant finds that there is a material misstatement in the current financial report, however, the Company's internal control fails to detect such misstatement in the course of operation; (4) Ineffective supervision of internal control by the Company's Audit Committee and internal audit department. Significant deficiency: A deficiency that, alone or in combination with other deficiencies, is less serious than a material deficiency but may still cause the Company to deviate from its control objectives. General deficiency: Other internal control deficiencies that do not constitute a material deficiency or a significant deficiency. | The Company is deemed to have a material deficiency in internal control not related to financial reporting if the following circumstances occur: (1) The Company's operating activities seriously violate national laws and regulations; (2) Unscientific decision-making procedures, resulting in major mistake in decision-making, which causes significant property losses to the Company; (3) Significant loss of key management personnel or technical personnel; (4) Frequent occurrence of negative news or reports, which aroused great concern of regulatory authorities and cannot be eliminated in a long period of time. Significant deficiency: A deficiency that, alone or in combination with other deficiencies, is less serious than a material deficiency but may still cause the Company to deviate from its control objectives. General deficiency: Other internal control deficiencies that do not constitute a material deficiency or a significant deficiency. |
Quantitative standards | Potential misstatement of total profits, material deficiency: misstatement ≥ 5% of total profits; significant deficiency: 2% of total profits ≤ misstatement < 5% of total profits; general deficiency: misstatement < 2% of total profits | Property losses caused by deficiencies, material deficiency: property losses caused by deficiencies ≥ 5% of total profits; significant deficiency: 2% of total profits ≤ property losses caused by deficiencies < 5% of total profits; general deficiency: property losses caused by |
deficiencies < 2% of total profits | ||
Number of material weakness in financial reports | 0 | |
Number of material weakness in non-financial reports | 0 | |
Number of significant deficiency in financial reports | 0 | |
Number of significant deficiency in non-financial report | 0 |
2. Internal Control Audit Report or Assurance Report
Internal Control Assurance Report
Deliberations Paragraph in the Internal Control Assurance Report | |
In our opinion, Songcheng Performance has maintained effective internal control of financial reporting in all major aspects in accordance with the relevant provisions of the Basic Norms of Internal Control of Enterprises as of December 31, 2021. | |
Disclosure in the Internal Control Assurance Report | Disclosure |
Date of full-text disclosure for the internal control assurance report | Friday, April 22, 2022 |
Full-text disclosure index for the internal control assurance report | For details, please refer to the Internal Control Assurance Report of Songcheng Performance Development Co., Ltd published by the company on http://www.cninfo.com.cn on Friday, April 22, 2022 |
Opinion type in the internal control assurance report | Standard unqualified opinion |
Whether there are material deficiencies in the non-financial reports | No |
Whether the accounting firm has issued an internal control assurance report with modified opinions
□ Yes √ No
Whether the opinions in the internal control assurance report issued by the accounting firm are consistent with those in theself-evaluation report issued by the board of directors
√ Yes □ No
XVII. Rectification of Problems Identified through Self-examination as Part of the SpecialCampaign to Improve the Governance of Listed CompaniesNot applicable.
Section V Environment and Social ResponsibilityI. Major Environmental IssuesWhether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the environmentalprotection department
□ Yes √ No
Administrative penalties received for environmental issues during the reporting period
Name of the Company or subsidiary | Reason for penalties | Description of violation | Result of penalties | Impact on the production and operation of the Company | Rectifying measures of the Company |
N/A | N/A | N/A | N/A | N/A | N/A |
Refer to other environmental information disclosed by key emittersN/AMeasures taken to reduce carbon emissions during the reporting period and their effects
□ Applicable √ Not applicable
Reason for the failure to disclose other environmental informationNot applicable.
II. Social Responsibilities
For details, see 2021 Annual Social Responsibility Report issued by the Company at http://www.cninfo.com.cn/.
III. Consolidate and Carry Forward the Achievements of Poverty Alleviation and Rural RevitalizationNot applicable.
Section VI Significant Events
I. Performance of commitments
1. Commitments made by the Company's controlling shareholders, shareholders, related parties, purchasersand purchasing companies and have been fulfilled during the reporting period and those that have not beenfulfilled by the end of the reporting period
√ Applicable □ Not applicable
Source of commitment | Commitment party | Type of commitment | Content of commitment | Commitment time | Commitment period | Performance of commitments |
Commitments made in the report of acquisition or in the report of equity changes | ||||||
Commitments made during asset restructuring | ||||||
Commitments made at the time of IPO or re-financing | Songcheng Group, Nan’ao Investment, Huang Qiaoling, Dai Yinqin, Sun Fangfang, Huang Qiaolong, Huang Qiaoyan and Liu Ping | Restricted IPO sale commitment | (I) Commitments to avoidance of competitive business and related-party transactions Songcheng Holdings as the controlling shareholder and Huang Qiaoling as the actual controller of the Company (collective referred to as “Commitment Parties”) have made the following commitments: The Commitment Parties and their controlled companies do not, and will not in the future, directly or indirectly, in any way, engage in or cooperate with others to engage in business that is the same as or similar to, or in any way competes with that of Song Cheng Shares and its | Thursday, December 9, 2010 | In the report period, the parties above have fulfilled their commitments. |
consolidation between Songcheng Shares and other enterprises associated to the controlling shareholder and actual controller Songcheng Holdings as the actual controller and controlling shareholder of the Company commits that Songcheng Shares is the only company actually controlled by the commitment party/the Company that carries out theme parks and tourism culture performing arts business. If Songcheng Shares completes its IPO and its shares are listed on Growth Enterprise Market Board, as long as its shares are listed on Growth Enterprise Market Board, the commitment party/the Company will not contribute the assets and business that are not related to the operation of Songcheng Shares, such as hotel and catering and real estate property, which are actually controlled by the Company, into Songcheng Shares directly or indirectly by any means, such as asset restructuring or joint venture. | ||||||
Equity incentives commitment | ||||||
Other commitments made by the Company to small and medium shareholders | ||||||
Whether the commitments are fulfilled on | Yes |
2. If there is a profit forecast for the Company's assets or projects, and the reporting period is still within theprofit forecast period, the Company shall make an explanation on the fulfillment and its reasons
□ Applicable √ Not applicable
II. Occupation of the Capital of the Listed Company by Controlling Shareholders and TheirRelated Parties for Non-Operational Purposes
□ Applicable √ Not applicable
During the reporting period, there is no non-operational capital occupation over the list Company by controlling shareholders andtheir related parties.III. Illegal Guarantees
□ Applicable √ Not applicable
In the report period, there is no illegal guarantee provided by the Company.IV. Explanations Made by the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V. Explanations Made by the Board of Directors, the Board of Supervisors and IndependentDirectors (If Any) on the "Non-standard Audit Report" from the Accounting Firm during theReporting Period
□ Applicable √ Not applicable
VI. Explanations Made by the Board of Directors on the Changes to the Accounting Polices andAccounting Estimates or the Corrections of Significant Accounting Error during the ReportingPeriod
□ Applicable √ Not applicable
VII. Changes in the Scope of Consolidated Financial Statements Compared with the FinancialReport of Previous Year
√ Applicable □ Not applicable
There are 1 newly merged units in this period, the reasons are:
scheduleNew Merged Units This Year
New Merged Units This Year | Investment Ratio | Notes |
Global Bacchus Limited | 100.00% | New in 2021 |
In the current period, the number of merged units was reduced by 1 due to:
Reduced Merged Units This Year | Investment Ratio | Notes |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 100.00% | Equity sale in 2021 |
VIII. Appointment and Dismissal of Accounting Firms
Currently appointed accounting firms
Names of domestic accounting firms | BDO China Shu Lun Pan CPAs (special general partnership) |
Remuneration to domestic accounting firms (Unit: ten thousand yuan) | 138 |
Years of continuous audit service of domestic accounting firms | 21 years |
Names of Certified Public Accountants from domestic accounting firms | Ni Yilin, Wang Bin |
The continuous period of audit service for certified public accountants in domestic accounting firms | 3 years and 1 year |
Whether to employ another accounting firm
□ Yes √ No
Appointment of accounting firms, financial advisers or sponsors for internal control auditing
□ Applicable √ Not applicable
IX. Delisting after Disclosure of Annual Report
□ Applicable √ Not applicable
X. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.XI. Major Lawsuits and Arbitrations
□ Applicable √ Not applicable
There is no major lawsuit or arbitration in this year.
XII. Penalties and Rectification
□ Applicable √ Not applicable
No such case as penalty and rectification during the reporting period.
XIII. Integrity of the Company, Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
The Company, its controlling shareholder and actual controller are in good standing during the reporting period.XIV. Significant Affiliated Transactions
1. Related transactions relevant to daily operations
√ Applicable □ Not applicable
Related transaction | Relation with related party | Type of related transaction | Content of the related - party transaction | Principle for pricing of related transaction | Price of related transaction | Amount of related transaction (RMB Ten Thousand) | Proportion in the amount of similar transactions | Approved transaction limit (RMB Ten Thousand) | Whether the approved limit is exceeded | Settlement of related transaction | Available market price for similar transactions | Date of Disclosure | Disclosure Index |
Hangzhou First World Hotel Co., Ltd. | Affiliated legal person | Recurring related transactions | On-line procurement of hotel products | Refer to the market price | 440.48 | 440.48 | 1.48% | 38,223.85 | No | Cash and Bank Balances | 440.48 | Friday, April 23, 2021 | http://www.cninfo.com.cn |
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | On-line procurement of hotel products | Refer to the market price | 804.87 | 804.87 | 2.70% | 38,223.85 | No | Cash and Bank Balances | 804.87 | Friday, April 23, 2021 | http://www.cninfo.com.cn |
Beijing Beite Shengdi Technology Development Co., Ltd. | Affiliate | Contingent related transactions | Delegation of the scenic spot-related projects | Refer to the market price | 1,563.12 | 1,563.12 | 1.95% | 1,563.12 | No | Cash and Bank Balances | 1,563.12 | ||
Hangzhou First World Hotel Co., Ltd. | Affiliated legal person | Recurring related transactions | Ticket sales | Refer to the market price | 240.68 | 240.68 | 0.65% | 38,223.85 | No | Cash and Bank Balances | 240.68 | Friday, April 23, 2021 | http://www.cninfo.com.cn |
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | Ticket sales | Refer to the market price | 318.34 | 318.34 | 0.86% | 38,223.85 | No | Cash and Bank Balances | 318.34 | Friday, April 23, 2021 | http://www.cninfo.com.cn |
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the office space | Refer to the market price | 402.59 | 402.59 | 8.27% | 402.59 | No | Cash and Bank Balances | 402.59 | Friday, January 17, 2020 | http://www.cninfo.com.cn |
Hangzhou | Affiliated | Recurring | Leasing of the | Refer to the | 996.01 | 996.01 | 20.46% | 996.01 | No | Cash and Bank | 996.01 | Friday, January | http://www.cn |
Songcheng Industry Co., Ltd | legal person | related transactions | parking lot | market price | Balances | 17, 2020 | info.com.cn | ||||||
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the operating room in the scenic spot | Refer to the market price | 239.18 | 239.18 | 4.91% | 239.18 | No | Cash and Bank Balances | 239.18 | Thursday, March 28, 2019 | http://www.cninfo.com.cn |
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the dormitory | Refer to the market price | 256.10 | 256.1 | 5.26% | 256.1 | No | Cash and Bank Balances | 256.10 | Thursday, March 28, 2019 | http://www.cninfo.com.cn |
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the parking lot | Refer to the market price | 474.66 | 474.66 | 9.75% | 474.66 | No | Cash and Bank Balances | 474.66 | Thursday, March 28, 2019 | http://www.cninfo.com.cn |
Hangzhou Songcheng Industry Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the operating room in the scenic spot | Refer to the market price | 278.28 | 278.28 | 5.72% | 278.28 | No | Cash and Bank Balances | 278.28 | Thursday, March 28, 2019 | http://www.cninfo.com.cn |
Hangzhou First World Hotel Co., Ltd. | Affiliated legal person | Recurring related transactions | Leasing of the operating room in the scenic spot | Refer to the market price | 216.00 | 216 | 4.44% | 216 | No | Cash and Bank Balances | 216.00 | Friday, April 23, 2021 | http://www.cninfo.com.cn |
Hangzhou World Leisure Expo Park Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the parking lot | Refer to the market price | 690.91 | 690.91 | 14.19% | 690.91 | No | Cash and Bank Balances | 690.91 | Thursday, March 28, 2019 | http://www.cninfo.com.cn |
Hangzhou World Leisure Expo Park Co., Ltd | Affiliated legal person | Recurring related transactions | Leasing of the dormitory | Refer to the market price | 108.36 | 108.36 | 2.23% | 108.36 | No | Cash and Bank Balances | 108.36 | Thursday, March 28, 2019 | http://www.cninfo.com.cn |
Total | -- | -- | 7,029.58 | -- | 158,120.61 | -- | -- | -- | -- | -- | |||
Details of major sales returned | N/A | ||||||||||||
Actual performance during the reporting period where the total amount of daily related party transactions in the current period is estimated by category (if any) | N/A | ||||||||||||
Reasons for the big difference between the transaction price and the reference market price, if applicable | Not applicable. |
2. Related transactions in acquisition or sale of assets or equities
□ Applicable √ Not applicable
No such case as related-party transactions arising from the acquisition or sale of assets or equity.
3. Significant related-party transactions arising from joint investments on external parties
√ Applicable □ Not applicable
Co-investor | Relation with related party | Name of the invested enterprise | Main business of the invested enterprise | Registered capital of the invested enterprise | Total assets of the invested enterprise (RMB Ten Thousand) | Net asset of the invested enterprise (RMB Ten Thousand) | Net profit of the invested enterprise (RMB Ten Thousand) |
Ningbo Songcheng Qixian Investment Management Co., Ltd. | Affiliate | Ningno Songcheng Performance Live Entertainment Investment Partnership (limited partnership) | Equity investment, project investment, investment management, enterprise management and investment consultation | RMB 183 million | 13,330.49 | 13,330.42 | 380.13 |
Hangzhou Songcheng Group Holdings Co., Ltd, Ningbo Qixian Internet Investment Management Co., Ltd. | Controlling shareholder, affiliate | Ningno Songcheng Internet Entertainment Investment Partnership (limited partnership) | Project investment, investment management, enterprise management consultation, investment consultation and equity investment | RMB 100 million | 1,065.49 | 1,056.49 | 30,049.41 |
Shenzhen CGS Fund Management Co., Ltd., Qixian Equity Investment Management Co., Ltd. | Affiliated legal person, affiliate | Ningno Meishan Bonded Port Area Qixian Innovation Entertainment Investment Partnership (limited partnership) | Entertainment project investment, industrial investment, project investment, investment management, enterprise | RMB 155 million | 7,332.82 | 7,285.82 | -45.81 |
management consultation and investment consultation | |||
Progress of major projects under construction of the invested enterprise, if any | N/A |
4. Related-party creditor's rights and debts
□ Applicable √ Not applicable
No such case as related credits and debts during the reporting period.
5. Business with affiliated financial company
□ Applicable √ Not applicable
There was no deposit, loan, credit granting or other financial business between the Company and the affiliated financial companyand its related parties.
6. Business between the affiliated parties and the financial company controlled by the Company
□ Applicable √ Not applicable
There was no deposit, loan, credit granting or other financial business between the affiliated parties and the financial companycontrolled by the Company
7. Other major related transactions
□ Applicable √ Not applicable
No other significant affiliated transactions occurred during the reporting period.XV. Significant Contracts and Their Executions
1. Matters on trusteeship, contracting, and leasehold
(1) Matters on trusteeship
□ Applicable √ Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No such case as contracting during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
No significant leasing occurred during the reporting period.
2. Significant guarantees
□ Applicable √ Not applicable
No significant guarantee occurred during the reporting period.
3. Entrusting Others to Manage Cash Assets
(1) Entrusted Financing
□ Applicable √ Not applicable
No such case as entrusted financing during the reporting period.
(2) Entrusted Loans
□ Applicable √ Not applicable
No such case as entrusted loan during the reporting period.
4. Other Significant Contracts
□ Applicable √ Not applicable
No such case as other significant contract during the reporting period.XVI. Explanations of Other Significant Matters
□ Applicable √ Not applicable
There were no other significant matters for explanation during the reporting period.
XVII. Significant Matters Occurred to Subsidiaries of the Company
□ Applicable √ Not applicable
Section VII Changes in Shares and Information about ShareholdersI. Changes in Shares
1. Changes in shares
Unit: share
Before the change | Increase or decrease in the change (+, -) | After the change | |||||||
Number | Percentage | Shares newly issued | Bonus shares | Shares converted from capital reserves | Others | Subtotal | Number | Percentage | |
I. Shares with limited sales condition | 405,984,860 | 15.53% | 0 | 0 | 0 | -78,977,686 | -78,977,686 | 327,007,174 | 12.51% |
1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2. Shares held by state-owned legal persons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
3. Other domestic shares | 405,984,860 | 15.53% | 0 | 0 | 0 | -78,977,686 | -78,977,686 | 327,007,174 | 12.51% |
Including: Shares held by domestic legal persons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Shares held by domestic natural persons | 405,984,860 | 15.53% | 0 | 0 | 0 | -78,977,686 | -78,977,686 | 327,007,174 | 12.51% |
4. Foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Including: Shares held by overseas legal persons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Shares held by foreign natural persons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
II. Shares without restrictions | 2,208,709,180 | 84.47% | 0 | 0 | 0 | 78,977,686 | 78,977,686 | 2,287,686,866 | 87.49% |
1. RMB ordinary shares | 2,208,709,180 | 84.47% | 0 | 0 | 0 | 78,977,686 | 78,977,686 | 2,287,686,866 | 87.49% |
2. Foreign shares list in China | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
3. Foreign shares listed in overseas | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
III. Total | 2,614,694,040 | 100.00% | 0 | 0 | 0 | 0 | 0 | 2,614,694,040 | 100.00% |
Reasons for changes in shares
√ Applicable □ Not applicable
The changes in restricted shares arise from the changes in the lock-up shares held by senior management.Approval for changes in shares
□ Applicable √ Not applicable
Transfer for changes in shares
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share ("EPS"), diluted EPS, net assets per share, attributable to commonshareholders of the Company, and other financial indexes over the last year and last period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted stocks
√ Applicable □ Not applicable
Unit: share
Name of Shareholder | Number Of Shares With Limited Sales Condition At The Beginning Of The Period | Number of increased shares with limited sales condition in current period | Number of unlocked shares with limited sales condition in current period | Number of shares with limited sales condition at the end of the period | Reasons for limited sales | Proposed date of lifting sales restriction |
Huang Qiaoling | 295,044,169 | 0 | 63,150,000 | 231,894,169 | Shares locked by executives | In respect of the shares locked by executives, 75% of the total shares will be locked at |
the beginning of each year | ||||||
Huang Qiaolong | 74,127,481 | 0 | 9,749,999 | 64,377,482 | Shares locked by executives | Ibid |
Liu Ping | 33,010,756 | 0 | 6,077,688 | 26,933,068 | Shares locked by executives | Ibid |
Zhang Xian | 1,624,981 | 0 | 0 | 1,624,981 | Shares locked by executives | Ibid |
Zhang Jiankun | 1,234,985 | 0 | 0 | 1,234,985 | Shares locked by executives | Ibid |
Shang Lingxia | 617,491 | 1 | 0 | 617,492 | Shares locked by executives | Ibid |
Chen Shengmin | 324,997 | 0 | 0 | 324,997 | Shares locked by executives | Ibid |
Total | 405,984,860 | 1 | 78,977,687 | 327,007,174 | -- | -- |
II. Issuance and listing of securities
1. Securities (excluding preferred share) issued in reporting period
□ Applicable √ Not applicable
2. Explanation on changes in total number of the Company's shares & the structure of shareholders and thestructure of assets and liabilities
□ Applicable √ Not applicable
3. Existing shares held by internal staff of the Company
□ Applicable √ Not applicable
III. Particulars about the shareholders and actual controller
1. Total number of shareholders and their shareholdings
Unit: share
Total Number Of Common Shareholders At The End Of The | 73,532 | Total number of common shareholders at the end of previous month before the disclosure date of the annual report | 72,173 | Total number of preferred shareholders (if any) (refer to Note 9) whose voting rights have been | 0 | Total number of preferred shareholders (if any) (refer to Note 9) with resumed | 0 | Total number of shareholders holding special voting shares (if any) | 0 |
Reporting Period | recovered at the end of the reporting period | voting rights at the end of previous month before the disclosure date of the annual report | ||||||||||
Shareholding list of shareholders with over 5% shares or top ten shareholders | ||||||||||||
Name of Shareholder | Nature Of Shareholder | Shareholding Percentage | Number of shares held at the end of the reporting period | Changes in the reporting period | Number of shares held with limited sales conditions | Number of shares held without limited sales condition | Pledge, mark or freeze status | |||||
State Of Shares | Number | |||||||||||
Hangzhou Songcheng Group Holdings Co., Ltd | Domestic Non-state-owned Legal Person | 29.48% | 770,835,254 | 0 | 0 | 770,835,254 | Pledge | 99,000,000 | ||||
Huang Qiaoling | Domestic Natural Person | 11.83% | 309,192,225 | 0 | 231,894,169 | 77,298,056 | ||||||
Hong Kong Securities Clearing Company Ltd. | Overseas Legal Person | 7.29% | 190,578,590 | 92,729,120 | 0 | 190,578,590 | ||||||
Huang Qiaolong | Domestic Natural Person | 3.28% | 85,836,643 | 0 | 64,377,482 | 21,459,161 | ||||||
Puxin Investment Company - Customer Fund | Overseas Legal Person | 2.18% | 57,094,076 | 26,677,827 | 0 | 57,094,076 | ||||||
Liu Ping | Domestic Natural Person | 1.37% | 35,910,758 | 0 | 26,933,068 | 8,977,690 | ||||||
China Construction Bank Corporation — Zhong Ou China New Blue Chip Alloc Hyb A | Others | 1.17% | 30,569,925 | 30,569,925 | 0 | 30,569,925 | ||||||
Liu Yan | Domestic Natural Person | 1.03% | 26,915,305 | -17,637,984 | 0 | 26,915,305 |
Industrial Bank Co., Ltd. — Zhong Ou China New Trend Stock Fund (LOF) | Others | 0.93% | 24,188,978 | 24,188,978 | 0 | 24,188,978 | |||
China Construction Bank Corporation - Zhong Ou Pension Industry Hybrid Fund | Others | 0.83% | 21,794,653 | 21,794,653 | 0 | 21,794,653 | |||
Strategic investors or general legal entities who become the top 10 shareholders as a result of the placement of new shares (if any) (see Note 4) | Not applicable. | ||||||||
Description of the association relationship or concerted action of above-mentioned shareholders | Hangzhou Songcheng Group Holdings Co., Ltd and Huang Qiaoling are the controlling shareholder and actual controller of the Company, respectively; Huang Qiaolong and Liu Ping are the related natural persons of the actual controller Mr. Huang Qiaoling. | ||||||||
Explanation on entrustment/acceptance and waiver of voting rights by the aforesaid shareholders | Not applicable. | ||||||||
Special notes on the existing special account of securities repurchasing in the top 10 shareholders (if any) (see Note 10) | Not applicable. | ||||||||
Shareholding list of top ten shareholders without limited sales condition | |||||||||
Name of Shareholder | Number of shares held without limited sales condition at the end of the reporting period | Type of shares | |||||||
Type of shares | Number | ||||||||
Hangzhou Songcheng Group Holdings Co., Ltd | 770,835,254 | RMB common stock | 770,835,254 | ||||||
Hong Kong Securities Clearing Company Ltd. | 190,578,590 | RMB | 190,578,590 |
common stock | |||
Huang Qiaoling | 77,298,056 | RMB common stock | 77,298,056 |
Puxin Investment Company - Customer Fund | 57,094,076 | RMB common stock | 57,094,076 |
China Construction Bank Corporation — Zhong Ou China New Blue Chip Alloc Hyb A | 30,569,925 | RMB common stock | 30,569,925 |
Liu Yan | 26,915,305 | RMB common stock | 26,915,305 |
Industrial Bank Co., Ltd. — Zhong Ou China New Trend Stock Fund (LOF) | 24,188,978 | RMB common stock | 24,188,978 |
China Construction Bank Corporation - Zhong Ou Pension Industry Hybrid Fund | 21,794,653 | RMB common stock | 21,794,653 |
Huang Qiaolong | 21,459,161 | RMB common stock | 21,459,161 |
China Construction Bank Corporation — Zhong Ou Growth Enterprise Market 2 Year Regular Open Mixed Fund | 18,998,214 | RMB common stock | 18,998,214 |
Explanation on associated relationship or persons acting in concert among top ten shareholders without limited shares, and between top ten shareholders without limited shares and top ten shareholders | Hangzhou Songcheng Group Holdings Co., Ltd and Huang Qiaoling are the controlling shareholder and the actual controller of the Company, respectively; Huang Qiaolong and Liu Ping are the related natural persons of the actual controller Mr. Huang Qiaoling. | ||
Explanation on shareholders’ participation in the financing and loan business of securities trades (if any) (see Note 5) | Not applicable. |
Whether the Company has differential arrangement of voting power
□ Applicable √ Not applicable
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree on anyrepurchase transaction in the reporting period
□ Yes √ No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed on
repurchase in the reporting period.
2. Particulars about the controlling shareholder
Nature of the controlling shareholder: Natural person-ownedType of the controlling shareholder: legal person
Name of the controlling shareholder | Legal representative/unit head | Date of establishment | Organization Code | Main businesses |
Hangzhou Songcheng Group Holdings Co., Ltd | Wang Pengyu | Friday, November 21, 1997 | 91330109255712632Y | Industrial investment |
Change of the controlling shareholders in the reporting period
□ Applicable √ Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
3. The actual controller of the Company and persons acting in concert
Nature of the actual controller: Domestic natural personType of the actual controller: Natural person
Name of the actual controller | Relationship with the actual controller | Nationality | Whether he/she has obtained the right of residence in another country or region |
Huang Qiaoling | Himself | China | No |
Main occupation and title | Mr. Huang Qiaoling served as the chairman and president of Songcheng Tourism Development Co., Ltd from February 1999 to December 2000. He served as the chairman of Hangzhou Songcheng Group Holdings Co., Ltd since November 1997. He served as the chairman of Hangzhou World Leisure Expo Park Co., Ltd from August 2001 to March 2013. He served as the chairman of the Company from December 2000 to August 2021. He has served as a director of the Company since December 2000. | ||
Information about other listed companies at home and abroad controlled in the last ten years | N/A |
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
No change has happened to the actual controller in the reporting periodBlock Diagram for Property Right and Control Relationship between the Company and Actual Controllers
The actual controller controls the Company via trust or other ways of asset management
□ Applicable √ Not applicable
4. All the pledged shares account for 80% of the total shares held by the controlling shareholder or largestshareholder of the Company and their persons acting in concert
□ Applicable √ Not applicable
5. Particulars about other corporate shareholders with shareholding proportion over 10%
□ Applicable √ Not applicable
6. Particulars on share reduction restricted for controlling shareholders, actual controller, restructuring partyor other commitment entities
□ Applicable √ Not applicable
IV. Implementation of Share Repurchase in the Reporting Period
The progress on share repurchases
□ Applicable √ Not applicable
The progress on reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable √ Not applicable
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
There are no preferred shares in the reporting period.
Section IX Information of Bonds
□ Applicable √ Not applicable
Section X Financial Report
I. Audit Reports
Audit opinion type | Standard Unqualified Opinion |
Signature Date of audit report | Friday, April 22, 2022 |
Name of audit institution | BDO China Shu Lun Pan CPAs (special general partnership) |
Name of Certified Public Accountant | Ni Yilin, Wang Bin |
Audit Report Text
Xin Kuai Shi Bao Zi [2022] No. ZA11425
To the shareholders of Songcheng Performance Development Co., Ltd:
I. Audit OpinionsWe have audited the financial statements of Songcheng Performance Development Co., Ltd. (hereinafter referred to as "SongchengPerformance"), including the consolidated and parent company's balance sheet as of Friday, December 31, 2021, consolidated andparent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company'sstatement of shareholder's equity changes, and notes to relevant financial statements in 2021.In our opinion, the attached financial statements are prepared in accordance with "Accounting Standards for Business Enterprises"in all major aspects, and fairly reflect the financial situation of the merger and the parent company of Songcheng Performance as ofFriday, December 31, 2021, as well as the operating situation and cash flow of Songcheng Performance and its parent company in2021.
II. Basis of OpinionsWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our responsibilitiesunder those standards are further explained in the part of "Auditor's Responsibility for the Financial Statements" of the audit report.In accordance with "Code of Professional Ethics for Certified Public Accountants in China", we are independent of SongchengPerformance and have fulfilled other responsibilities of professional ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinions.
III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financialstatements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole,and in forming our opinion thereon, and we do not provide a separate opinion on these matters.The key audit matters identified during the audit are summarized as follows:
Key Audit Matters | How the matter was addressed in the audit |
(I) Recognition of revenue | |
The Accounting Standards for Business Enterprises No. 14 - Revenue (hereinafter referred to as "New Revenue | The main audit procedures we performed for revenue recognition include: |
Standards") is implemented by the Company. The Operating Income of Songcheng Performance is mainly from cultural and artistic live performances. According to Note 5 (27) of the financial report, the specific principles for recognition of revenue from cultural and artistic live performances are as follows: The company provides scenic spots and live performance services. Different ticket prices are set according to the types of tourists. Tourists have right to watch live performances at the scenic spot after purchasing tickets and entering the scenic spots. When the ticket amount has been collected or the right to receive payment has been obtained, the revenue should be generated. In 2021, the revenue of cultural and artistic live performances was RMB 960,863,700, accounting for 81.09% of the consolidated total revenue. Since revenue is one of key performance indicators of the company, there may be inherent risks of the management manipulating revenue recognition in order to achieve specific goals or targets. For this reason, we take revenue recognition as a key issue for audit. | 1. Understand and evaluate the design and operation effectiveness of internal control related to revenue recognition of the company; 2. Check the contracts of the company, identify the contract terms and conditions related to the recognition of Operating Revenue, and evaluate if revenue recognition of the company meets the requirements of the new revenue standards; 3. Perform letter verification procedures to verify the Account Receivable balance and Sales Revenue amount for authenticity and completeness; 4. Verify the company revenue for accuracy and completeness by checking the records of the business system or order records from third-party platform; 5. Perform analysis on Operating Revenue, and ensure logical rationality of revenue recognition based on the amount of Operating Revenue, cash flow, and taxes. Analyze reasons for abnormal changes by comparing revenue over the same period. 6. Check the supporting documents related to revenue confirmation by sampling, including: system orders, admission orders, receipts, gate records, ticketing records and other documents to evaluate the occurrence, authenticity and deadline of Operating Revenue. |
(II) Long-term equity investment impairment test of Huafang Group Inc. (originally known as Beijing Huafang Technology Co., Ltd.) |
As listed in Note 7 (8) of the consolidated financialstatements, as of December 31, 2021, the Company'slong-term equity investment in Huafang Group Inc.(originally known as Beijing Huafang Technology Co., Ltd.)was originally valued at RMB 3,505,666,700, and provisionfor long-term equity investment impairment accrued in thecurrent period was RMB 1,861,297,300 , with book value ofRMB 1,644,369,400.In our opinion, the amount of Long-term EquityInvestments Impairment has a significant impact on thefinancial statements. The management is required to makesignificant judgments based on evaluation and testing.Therefore, we recognize the impairment assessment of thisasset as a key issue for audit.
As listed in Note 7 (8) of the consolidated financial statements, as of December 31, 2021, the Company's long-term equity investment in Huafang Group Inc. (originally known as Beijing Huafang Technology Co., Ltd.) was originally valued at RMB 3,505,666,700, and provision for long-term equity investment impairment accrued in the current period was RMB 1,861,297,300 , with book value of RMB 1,644,369,400. In our opinion, the amount of Long-term Equity Investments Impairment has a significant impact on the financial statements. The management is required to make significant judgments based on evaluation and testing. Therefore, we recognize the impairment assessment of this asset as a key issue for audit. | Our audit procedures for testing of Long-term Equity Investments Impairment mainly include: 1. Understand and evaluate the effectiveness of the company internal control design and implementation related to Long-term Equity Investments Impairment; 2. Understand and evaluate the operating result and financial position of the invested company, discuss with the management to understand and evaluate the methods used in the testing of Long-term Equity Investments Impairment, including the reasonableness of the assumptions such as future revenue forecast and cash flow discount rate , judgment and evaluation of profitability of the components; 3. Understand and evaluate the assessment specialists, hired by the management, for their competence, professionalism and objectivity; 4. We hired external assessment specialists to assist us to review impairment testing. We have considered their competence, professionalism and objectivity; 5. We evaluated whether the evaluation method of Long-term Equity Investments Impairment test was reasonable; 6. We evaluated whether the key assumptions of Long-term Equity Investments Impairment test were appropriate; 7. We evaluated whether the calculation process of forecasting future |
IV. Other InformationThe management of Songcheng Performance (hereinafter referred to as "the management") is responsible for other information.Other information includes the information covered in annual report of Songcheng Performance of Year 2021, but the financialstatements and our audit report are excluded.Our opinion on the financial statements does not cover the other information and we do not and will not express any form ofassurance conclusion thereon.In combination with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in theaudit, or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact. We have nothing to report in this regard.
V. Responsibilities of Management and Those Charged with Governance for the Financial StatementsThe Management is responsible for preparing the financial statements in accordance with the requirements of AccountingStandards for Business Enterprises to achieve a fair presentation, and for designing, implementing and maintaining necessaryinternal control to ensure that the financial statements are free from material misstatements, whether due to frauds or errors.In preparing the financial statements, the management is responsible for evaluating the ability of going concern of SongchengPerformance, disclosing the matters related to going concern (if applicable), and applying the going concern assumptions, unlessthere is a plan for liquidation, operations are terminated or there is no other realistic option .The management is responsible for monitoring the financial reporting process of Songcheng Performance
VI. Certified Public Accounts’ Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit conducted in accordance with the audit standards will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financialstatements.As part of an audit in accordance with the audit standards, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, asfraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design appropriate audit procedures, but not for thepurpose of expressing an opinion on the effectiveness of the Company's internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosuresmade by the Management.
(4) Conclude on the appropriateness of using the going concern assumption by the Management. At the same time, based on theobtained audit evidence, a conclusion can be drawn on whether there are material uncertainties in matters or circumstances thatmay cause significant doubt on going concern ability of Songcheng Performance. If we conclude that a material uncertainty exists,
we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the information available up to the date of our audit report.However, future events or circumstances may cause Songcheng Performance unable to continue its operations.
(5) Evaluate the overall presentation (including the disclosures), structure and content of the financial statements, and whether thefinancial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on financial information of entities or business activities of SongchengPerformance, and issue an audit opinion on consolidated financial statements. We are responsible for guiding, supervising andimplementing the group audit, and remain solely responsible for our audit opinion.
We have communicated with those charged with governance on such matters as the scope of audit as planned, the schedule andmaterial audit findings, including the defects in the internal control that are worth paying attention to found in this audit.We have also provided those charged with governance with a statement on observing the professional ethics related toindependence, and communicated with those charged with governance on all the relationships and other matters that might bereasonably deemed to affect our independence, and relevant preventative measures.From the matters communicated with those charged with governance, we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters inour audit report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, wedetermine that a matter should not be communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
BDO China Shu Lun Pan CPAs Certified Public Accountant:
(Special general partnership) (Project partner)
Certified Public Accountant:
Shanghai, China April 22, 2022
II. Financial StatementsUnits of financial reports in the notes: yuan
1. Consolidated Balance Sheet
Prepared by: Songcheng Performance Development Co., Ltd.
Friday, December 31, 2021
Unit: RMB
Item | Friday, December 31, 2021 | Thursday, December 31, 2020 |
Current Assets: | ||
Cash and Bank Balances | 1,858,747,864.04 | 1,337,776,253.98 |
Deposit Reservation for Balance | ||
Loans to Banks and Other Financial Institutions | ||
Trading Financial Assets | 2,670,942.90 | 335,217,557.68 |
Derivative Financial Assets | ||
Notes receivable | ||
Accounts receivable | 2,197,594.37 | 5,887,012.36 |
Receivables Financing | ||
Prepayments | 9,506,216.23 | 21,934,226.54 |
Premium Receivable | ||
Reinsurance Accounts Receivable | ||
Reinsurance Contract Reserves Receivable | ||
Other Receivables | 10,195,239.84 | 50,524,990.69 |
Including: interest receivable | ||
Dividends Receivable | ||
Buying Back the Sale of Financial Assets | ||
Inventory | 12,521,655.81 | 13,424,146.50 |
Contract Assets | ||
Holding for-sale assets | ||
Non-current Assets Due within 1 Year | ||
Other Current Assets | 111,950,551.71 | 148,641,404.47 |
Subtotal of Current Assets | 2,007,790,064.90 | 1,913,405,592.22 |
Non-current Assets: | ||
Granting of loans and advances | ||
Investment in Creditor's Rights | ||
Investment in Other Creditor's Rights | ||
Long-term Receivables | ||
Long-term Equity Investment | 1,677,553,347.68 | 1,534,539,625.11 |
Investment in Other Equity Instruments | 86,485,836.59 | 224,266,596.74 |
Other Non-current Financial Assets | ||
Investment Property | ||
Fixed Assets | 2,697,045,965.17 | 2,508,754,929.16 |
Projects under Construction | 404,739,821.09 | 771,871,563.73 |
Productive Biological Assets | ||
Oil and gas assets | ||
Right-of-use Assets | 493,815,583.40 | |
Intangible Assets | 1,712,824,232.77 | 1,880,031,922.56 |
Development Expenditure | ||
Goodwill | 1,573,240.33 | 11,655,794.87 |
Long-term unamortized expenses | 695,021,549.39 | 323,741,176.89 |
Deferred Income Tax Assets | 25,543,377.29 | 18,485,803.52 |
Other Non-current Assets | 24,115,011.23 | 8,589,826.26 |
Subtotal of Non-current Assets | 7,818,717,964.94 | 7,281,937,238.84 |
Total Assets | 9,826,508,029.84 | 9,195,342,831.06 |
Current Liabilities: | ||
Short-term loan | ||
Borrowings from the Central Bank | ||
Borrowings from Banks and Other Financial Institutions | ||
Transactional financial liabilities | ||
Derivative Financial Liabilities | ||
Notes Payable | ||
Accounts Payable | 481,951,280.14 | 372,476,464.69 |
Received Prepayments | 8,142,991.55 | 12,888,689.05 |
Contract liabilities | 87,754,309.11 | 188,550,237.52 |
Financial Assets Sold for Repurchase | ||
Deposit Taking and Interbank Deposit | ||
Receiving from Vicariously Traded Securities | ||
Receiving from Vicariously Sold Securities | ||
Payroll payable | 19,891,490.90 | 18,817,804.74 |
Tax Payable | 36,997,211.67 | 19,869,808.49 |
Other Payables | 72,869,650.41 | 65,149,971.79 |
Including: interest payable | ||
Dividends Payable | ||
Service Charge and Commission Payable | ||
Reinsurance Accounts Payable | ||
Holding for-sale liabilities | ||
Non-current Liabilities Due within 1 Year | 36,850,710.07 | 12,426,708.33 |
Other Current Liabilities | 3,419,057.32 | 3,513,902.08 |
Subtotal of Current Liabilities | 747,876,701.17 | 693,693,586.69 |
Non-current Liabilities: | ||
Insurance Contract Reserves | ||
Long-term loan | 270,000,000.00 | 282,000,000.00 |
Bonds Payable | ||
Including: Preferred Stocks | ||
Perpetual Bonds | ||
Lease Liabilities | 371,772,172.05 | |
Long-term Payables | ||
Long-term payroll payable | ||
Expected Liabilities | ||
Deferred Income | 387,930,902.67 | 387,619,860.41 |
Deferred Income Tax Liabilities | 93,718,053.81 | 96,769,220.18 |
Other Non-current Liabilities | ||
Subtotal of Non-current Liabilities | 1,123,421,128.53 | 766,389,080.59 |
Total Liabilities | 1,871,297,829.70 | 1,460,082,667.28 |
Shareholders' Equity: | ||
Share Capital | 2,614,694,040.00 | 2,614,694,040.00 |
Other Equity Instruments | ||
Including: Preferred Stocks | ||
Perpetual Bonds | ||
Capital Reserves | 1,250,036,126.65 | 1,211,364,214.86 |
Less: Treasury Share | ||
Other Comprehensive Incomes | -151,297,569.26 | -63,325,115.75 |
Special Reserves | ||
Surplus Reserves | 533,723,796.82 | 517,673,268.35 |
General Risk Reserves | ||
Undistributed Profits | 3,397,614,428.15 | 3,131,881,024.60 |
Total Shareholders' Equity Attributable to the Parent Company | 7,644,770,822.36 | 7,412,287,432.06 |
Minority Shareholders' Equity | 310,439,377.78 | 322,972,731.72 |
Total Shareholders' Equity | 7,955,210,200.14 | 7,735,260,163.78 |
Total Liabilities and Shareholders' Equity | 9,826,508,029.84 | 9,195,342,831.06 |
Legal representative: Shang Lingxia Person in charge of accounting: Chen Shengming Head of the accounting institution: Zhu Shana
2. Balance Sheet of the Parent Company
Unit: RMB
Item | Friday, December 31, 2021 | Thursday, December 31, 2020 |
Current Assets: | ||
Cash and Bank Balances | 1,124,535,195.06 | 788,724,841.16 |
Trading Financial Assets | ||
Derivative Financial Assets | ||
Notes receivable | ||
Accounts receivable | 116,333.48 | 38,224.90 |
Receivables Financing | ||
Prepayments | 1,174,847.64 | 2,031,894.01 |
Other Receivables | 1,195,669,385.02 | 1,046,160,763.74 |
Including: interest receivable |
Dividends Receivable | ||
Inventory | 1,381,826.46 | 651,042.56 |
Contract Assets | ||
Holding for-sale assets | ||
Non-current Assets Due within 1 Year | ||
Other Current Assets | 361,780.06 | 1,240,658.07 |
Subtotal of Current Assets | 2,323,239,367.72 | 1,838,847,424.44 |
Non-current Assets: | ||
Investment in Creditor's Rights | ||
Investment in Other Creditor's Rights | ||
Long-term Receivables | ||
Long-term Equity Investment | 6,667,904,199.20 | 6,433,238,270.32 |
Investment in Other Equity Instruments | 77,459,800.00 | 214,975,166.42 |
Other Non-current Financial Assets | ||
Investment Property | ||
Fixed Assets | 1,641,823.70 | 1,912,986.88 |
Projects under Construction | ||
Productive Biological Assets | ||
Oil and gas assets | ||
Right-of-use Assets | ||
Intangible Assets | 2,844,445.19 | 3,418,590.95 |
Development Expenditure | ||
Goodwill | ||
Long-term unamortized expenses | 2,384,333.56 | 2,600,000.20 |
Deferred Income Tax Assets | 20,238,676.24 | 15,581,293.31 |
Other Non-current Assets | 150,965.42 | |
Subtotal of Non-current Assets | 6,772,624,243.31 | 6,671,726,308.08 |
Total Assets | 9,095,863,611.03 | 8,510,573,732.52 |
Current Liabilities: | ||
Short-term loan | ||
Transactional financial liabilities |
Derivative Financial Liabilities | ||
Notes Payable | ||
Accounts Payable | 14,631,289.28 | 1,154,036.06 |
Received Prepayments | ||
Contract liabilities | ||
Payroll payable | 8,252,921.44 | 7,873,282.52 |
Tax Payable | 13,127,496.89 | 1,394,799.62 |
Other Payables | 2,630,657,144.08 | 2,056,738,130.14 |
Including: interest payable | ||
Dividends Payable | ||
Holding for-sale liabilities | ||
Non-current Liabilities Due within 1 Year | 12,409,291.67 | 12,426,708.33 |
Other Current Liabilities | ||
Subtotal of Current Liabilities | 2,679,078,143.36 | 2,079,586,956.67 |
Non-current Liabilities: | ||
Long-term loan | 270,000,000.00 | 282,000,000.00 |
Bonds Payable | ||
Including: Preferred Stocks | ||
Perpetual Bonds | ||
Lease Liabilities | ||
Long-term Payables | ||
Long-term payroll payable | ||
Expected Liabilities | ||
Deferred Income | ||
Deferred Income Tax Liabilities | ||
Other Non-current Liabilities | ||
Subtotal of Non-current Liabilities | 270,000,000.00 | 282,000,000.00 |
Total Liabilities | 2,949,078,143.36 | 2,361,586,956.67 |
Shareholders' Equity: | ||
Share Capital | 2,614,694,040.00 | 2,614,694,040.00 |
Other Equity Instruments | ||
Including: Preferred Stocks | ||
Perpetual Bonds |
Capital Reserves | 1,261,742,739.46 | 1,248,861,998.85 |
Less: Treasury Share | ||
Other Comprehensive Incomes | -83,024,621.90 | -38,171,990.42 |
Special Reserves | ||
Surplus Reserves | 533,723,796.82 | 517,673,268.35 |
Undistributed Profits | 1,819,649,513.29 | 1,805,929,459.07 |
Total Shareholders' Equity | 6,146,785,467.67 | 6,148,986,775.85 |
Total Liabilities and Shareholders' Equity | 9,095,863,611.03 | 8,510,573,732.52 |
3. Consolidated Income Statement
Unit: RMB
Item | 2021 | 2020 |
I. Total Operating Revenue | 1,184,864,639.25 | 902,586,125.63 |
Including: Operating Revenue | 1,184,864,639.25 | 902,586,125.63 |
Interest Income | ||
Earned Premiums | ||
Service Charge and Commission Income | ||
II. Total Operating Cost | 964,551,921.05 | 740,982,414.36 |
Including: Operating Cost | 579,587,211.67 | 352,670,473.42 |
Interest Expenditures | ||
Service Charge and Commission Expenses | ||
Surrender Value | ||
Net Claims Paid | ||
Net Amount of Withdrawn Reserve for Insurance Liability Contract | ||
Policyholder Dividend Expense | ||
Reinsurance Cost | ||
Taxes and Surcharges | 22,374,280.26 | 11,933,497.05 |
Sales Expenses | 66,184,828.78 | 63,649,750.30 |
Administration expenses | 256,185,046.43 | 288,084,167.74 |
Research and development | 41,175,131.35 | 37,487,964.00 |
expense | ||
Financial Expenses | -954,577.44 | -12,843,438.15 |
Including: interest expenses | 32,789,597.06 | 7,822,986.14 |
Interest Income | 27,293,268.17 | 32,572,127.48 |
Add: Other income | 4,560,501.94 | 34,572,160.23 |
Investment Income (Mark "-" for Loss) | 181,840,347.56 | 14,014,892.30 |
Including: Investment Income from Affiliates and Joint Ventures | 103,892,278.09 | -5,356,968.22 |
Profits from recognition Termination of Financial Assets at Amortized Cost | ||
Exchange Gains (Mark "-" for Losses) | ||
Profit of Net Exposure Hedging (Mark "-" for Loss) | ||
Incomes from changes in fair value (losses marked with "-") | -12,098,344.02 | 247,726.31 |
Credit Impairment Losses (Mark "-" for Loss) | -16,581,681.70 | -32,739,976.91 |
Asset Impairment Losses (Mark "-" for Loss) | -10,082,554.54 | -1,877,720,155.72 |
Asset Disposal Income (Mark "-" for Loss) | 4,512,572.52 | 676,435.92 |
III. Operating Profit (Mark "-" for Loss) | 372,463,559.96 | -1,699,345,206.60 |
Add: Non-operating Revenues | 6,091,127.99 | 3,242,377.14 |
Less: Non-operating Expenses | 34,713,244.90 | 41,007,879.43 |
IV. Total Profit (Mark "-" for Total Loss) | 343,841,443.05 | -1,737,110,708.89 |
Less: Income Tax Expense | 41,247,481.65 | 29,835,169.11 |
V. Net Profit (Mark "-" for Net Loss) | 302,593,961.40 | -1,766,945,878.00 |
i. Classified by operation continuity | ||
1. Net Profit as a Going Concern (Mark "-" for Net Loss) | 302,593,961.40 | -1,766,945,878.00 |
2. Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
ii. Classified by the attribution of |
ownership | ||
1. Net Profit Attributable to Shareholders of Parent Company | 315,130,771.75 | -1,752,398,009.60 |
2. Minority Shareholders' Profit and Loss | -12,536,810.35 | -14,547,868.40 |
VI. Net Amount of Other Comprehensive Incomes after Tax | 9,418,865.17 | -54,643,377.96 |
Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | 9,415,408.76 | -54,643,964.16 |
(1) Other comprehensive income that cannot be reclassified as P/L | 52,367,717.43 | -65,726,184.59 |
1. Re-measure the variation of the defined benefit plan | ||
2. Other comprehensive income that cannot be transferred to P/L under the equity method | 453,614.40 | 1,356,586.59 |
3. Changes in the fair value of investment in other equity instruments | 51,914,103.03 | -67,082,771.18 |
4. Changes in the fair value of the credit risk of the enterprise | ||
5. Others | ||
(2) Other comprehensive income that will be reclassified as P/L | -42,952,308.67 | 11,082,220.43 |
1. Other comprehensive income that can be transferred to P/L under the equity method | -16,918.29 | |
2. Changes in the fair value of investment in other creditor's rights | ||
3. Financial assets reclassified into other comprehensive income | ||
4. Provisions for the credit impairment of investment in other creditor's rights | ||
5. Cash flow hedge reserves | ||
6. Currency translation difference | -42,935,390.38 | 11,082,220.43 |
7. Others | ||
Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | 3,456.41 | 586.20 |
VII. Total Comprehensive Income | 312,012,826.57 | -1,821,589,255.96 |
Total Comprehensive Income Attributable to the Parent Company's Owner | 324,546,180.51 | -1,807,041,973.76 |
Total Comprehensive Income Attributable to Minority Shareholders | -12,533,353.94 | -14,547,282.20 |
VIII. Earnings per Share: | ||
(I) Basic Earnings per Share | 0.1205 | -0.6702 |
(II) Diluted Earnings per Share | 0.1205 | -0.6702 |
In case of business combination under the same control during this period, the net profit realized by the consolidated party beforeconsolidation is: RMB 0.00, and the net profit realized by consolidated party in the previous period: RMB 0.00.Legal representative: Shang Lingxia Person in charge of accounting: Chen Shengming Head of the accounting institution: Zhu Shana
4. Income Statement of the Parent Company
Unit: RMB
Item | 2021 | 2020 |
I. Operating Revenue | 8,863,687.70 | 22,892,751.38 |
Less: Operating Cost | 8,462,698.28 | 19,532,790.64 |
Taxes and Surcharges | 161,851.02 | 1,295,426.42 |
Sales Expenses | 6,052,705.94 | 7,343,898.62 |
Administration expenses | 32,871,622.20 | 37,997,214.49 |
Research and development expense | 4,741,111.89 | |
Financial Expenses | -5,506,808.93 | -13,459,704.23 |
Including: interest expenses | 13,918,687.47 | 7,822,986.14 |
Interest Income | 19,517,413.61 | 21,565,816.00 |
Add: Other income | 257,146.68 | 15,285,586.12 |
Investment Income (Mark "-" for Loss) | 110,089,710.11 | 424,960,373.38 |
Including: Investment Income from Affiliates and Joint Ventures | 113,303,617.66 | -2,931,524.95 |
Profits from Derecognition of Financial Assets at Amortized Cost (Mark "-" for Loss) | ||
Profit of Net Exposure Hedging (Mark "-" for Loss) | ||
Incomes from changes in fair value (losses marked with "-") | -1,492,520.54 | |
Credit Impairment Losses (Mark "-" for Loss) | -18,629,531.71 | -32,526,876.92 |
Asset Impairment Losses (Mark "-" for Loss) | -1,814,682,876.81 | |
Asset Disposal Income (Mark "-" for Loss) | 17,156.67 | |
II. Operating Profit (Mark "-" for Loss) | 58,538,944.27 | -1,442,997,144.55 |
Add: Non-operating Revenues | 40,844.33 | 1,103,676.45 |
Less: Non-operating Expenses | 42,644.01 | 2,213,333.49 |
III. Total Profit (Mark "-" for Total Loss) | 58,537,144.59 | -1,444,106,801.59 |
Less: Income Tax Expense | -4,580,277.83 | 3,112,861.27 |
IV. Net Profit (Mark "-" for Net Loss) | 63,117,422.42 | -1,447,219,662.86 |
(I) Net Profit as a Going Concern (Mark "-" for Net Loss) | 63,117,422.42 | -1,447,219,662.86 |
(II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
V. Net Amount of Other Comprehensive Incomes After Tax | 52,535,230.79 | -70,042,042.21 |
(1) Other comprehensive income that cannot be reclassified as P/L | 52,633,111.16 | -70,042,042.21 |
1. Re-measure the variation of the defined benefit plan | ||
2. Other comprehensive income that cannot be transferred to P/L under the equity method | 453,614.40 | 37,670.53 |
3. Changes in the fair value of investment in other equity instruments | 52,179,496.76 | -70,079,712.74 |
4. Changes in the fair value of the credit risk of the enterprise | ||
5. Others |
(2) Other comprehensive income that will be reclassified as P/L | -97,880.37 | |
1. Other comprehensive income that can be transferred to P/L under the equity method | -97,880.37 | |
2. Changes in the fair value of investment in other creditor's rights | ||
3. Financial assets reclassified into other comprehensive income | ||
4. Provisions for the credit impairment of investment in other creditor's rights | ||
5. Cash flow hedge reserves | ||
6. Currency translation difference | ||
7. Others | ||
VI. Total Comprehensive Income | 115,652,653.21 | -1,517,261,705.07 |
VII. Earnings per Share: | ||
(I) Basic Earnings per Share | ||
(II) Diluted Earnings per Share |
5. Consolidated Cash Flow Statement
Unit: RMB
Item | 2021 | 2020 |
I. Cash Flow Generated by Operational Activities: | ||
Cash from Sales of Merchandise and Provision of Services | 1,132,863,699.62 | 807,841,498.50 |
Net Increase in Customer's Bank Deposits and Interbank Deposits | ||
Net Increase in Borrowings from the Central Bank | ||
Net Increase in Borrowings from Other Financial Institutions | ||
Cash Arising from Receiving Premiums for the Original Insurance |
Contract | ||
Net Amount Arising from Reinsurance Business | ||
Net Increase in Deposits and Investments from Policyholders | ||
Cash Arising from Interests, Service Charges and Commissions | ||
Net Increase in Borrowings from Banks and Other Financial Institutions | ||
Net Increase in Repurchase Business Funds | ||
Net Amount of Cash Received from the Vicariously Traded Securities | ||
Tax Refund | 34,424,077.40 | 32,176,543.78 |
Other Received Cashes Related to Operational Activities | 227,856,516.25 | 103,772,075.60 |
Subtotal of cash inflow from operational activities | 1,395,144,293.27 | 943,790,117.88 |
Cash Paid for Merchandise and Services | 185,062,181.02 | 144,882,412.49 |
Net Increase in Loans and Advances to Customers | ||
Net Increase in Deposits with Central Bank and Other Financial Institutions | ||
Cash Paid for Original Insurance Contract Claims | ||
Net increase of funds lent | ||
Cash Paid for Interests, Service Charges and Commissions | ||
Cash Paid for Policy Dividends | ||
Cash Paid to and for Employees | 225,146,675.82 | 183,145,317.90 |
Cash Paid for Taxes and Surcharges | 92,366,813.62 | 64,685,320.62 |
Other Paid Cashes Related to Operational Activities | 142,094,813.02 | 157,135,166.93 |
Subtotal of cash outflow from operational activities | 644,670,483.48 | 549,848,217.94 |
Net cash flow generated by operating | 750,473,809.79 | 393,941,899.94 |
activities | ||
II. Cash Flow from Investment Activities: | ||
Cash Arising from Disposal of Investments | 1,449,388,462.73 | 1,349,803,239.12 |
Cash Arising from Investment Incomes | ||
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 8,831,753.57 | 2,136,278.15 |
Net Cash Arising from Disposal of Subsidiaries and Other Business Units | 109,080,923.08 | |
Other Received Cashes Related to Investment Activities | ||
Subtotal of cash inflow from investment activities | 1,567,301,139.38 | 1,351,939,517.27 |
Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 693,848,630.82 | 1,017,897,394.85 |
Cash Paid for Investments | 910,012,836.58 | 897,276,184.30 |
Net Increase in Pledge Loans | ||
Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 377,767,506.95 | |
Other Paid Cashes Related to Investment Activities | ||
Subtotal of Cash Outflow from Investment Activities | 1,603,861,467.40 | 2,292,941,086.10 |
Net amount of cash flow generated by investment activities | -36,560,328.02 | -941,001,568.83 |
III. Cash Flow from Financing Activities: | ||
Cash Arising from Absorbing Investments | 120,000,000.00 | |
Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders | 120,000,000.00 | |
Cash Arising from Borrowings | 300,000,000.00 | |
Other Received Cashes Related to Financing Activities |
Subtotal of cash inflow from financing activities | 420,000,000.00 | |
Cash Paid for Debts Repayment | 12,000,000.00 | 6,000,000.00 |
Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 144,670,806.13 | 300,917,837.81 |
Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | 3,000,000.00 | |
Other Paid Cashes Related to Financing Activities | 39,531,231.21 | |
Subtotal of cash outflow from financing activities | 196,202,037.34 | 306,917,837.81 |
Net cash flow generated by financing activities | -196,202,037.34 | 113,082,162.19 |
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | 3,260,165.63 | -9,956,266.67 |
V. Net Increase in Cash and Cash Equivalents | 520,971,610.06 | -443,933,773.37 |
Add: Cash and Cash Equivalents at the Commencement of the Period | 1,337,776,253.98 | 1,781,710,027.35 |
VI. Cash and Cash Equivalents at the End of the Period | 1,858,747,864.04 | 1,337,776,253.98 |
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item | 2021 | 2020 |
I. Cash Flow Generated by Operational Activities: | ||
Cash from Sales of Merchandise and Provision of Services | 10,096,780.48 | 21,146,321.04 |
Tax Refund | ||
Other Received Cashes Related to Operational Activities | 926,762,376.15 | 796,910,713.36 |
Subtotal of cash inflow from operational activities | 936,859,156.63 | 818,057,034.40 |
Cash Paid for Merchandise and Services | 6,494,745.46 | 4,428,163.75 |
Cash Paid to and for Employees | 24,429,606.98 | 29,084,333.46 |
Cash Paid for Taxes and Surcharges | 1,451,392.44 | 16,523,204.31 |
Other Paid Cashes Related to Operational Activities | 502,445,235.90 | 655,676,151.74 |
Subtotal of cash outflow from operational activities | 534,820,980.78 | 705,711,853.26 |
Net cash flow generated by operating activities | 402,038,175.85 | 112,345,181.14 |
II. Cash Flow from Investment Activities: | ||
Cash Arising from Disposal of Investments | 1,169,476,307.76 | 702,850,832.94 |
Cash Arising from Investment Incomes | 432,000,000.00 | |
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 36,281.55 | |
Net Cash Arising from Disposal of Subsidiaries and Other Business Units | ||
Other Received Cashes Related to Investment Activities | ||
Subtotal of cash inflow from investment activities | 1,169,476,307.76 | 1,134,887,114.49 |
Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 907,487.00 | 29,624,583.50 |
Cash Paid for Investments | 1,078,125,836.58 | 692,500,000.00 |
Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 378,000,000.00 | |
Other Paid Cashes Related to Investment Activities | ||
Subtotal of Cash Outflow from Investment Activities | 1,079,033,323.58 | 1,100,124,583.50 |
Net amount of cash flow generated by investment activities | 90,442,984.18 | 34,762,530.99 |
III. Cash Flow from Financing Activities: | ||
Cash Arising from Absorbing Investments |
Cash Arising from Borrowings | 300,000,000.00 | |
Other Received Cashes Related to Financing Activities | ||
Subtotal of cash inflow from financing activities | 300,000,000.00 | |
Cash Paid for Debts Repayment | 12,000,000.00 | 6,000,000.00 |
Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 144,670,806.13 | 297,917,837.81 |
Other Paid Cashes Related to Financing Activities | ||
Subtotal of cash outflow from financing activities | 156,670,806.13 | 303,917,837.81 |
Net cash flow generated by financing activities | -156,670,806.13 | -3,917,837.81 |
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | ||
V. Net Increase in Cash and Cash Equivalents | 335,810,353.90 | 143,189,874.32 |
Add: Cash and Cash Equivalents at the Commencement of the Period | 788,724,841.16 | 645,534,966.84 |
VI. Cash and Cash Equivalents at the End of the Period | 1,124,535,195.06 | 788,724,841.16 |
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
Item | 2021 | ||||||||||||||
Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Reserves | Undistributed Profits | Others | Subtotal | |||||
Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
I. Balance at the End of Last Year | 2,614,694,040.00 | 1,211,364,214.86 | -63,325,115.75 | 517,673,268.35 | 3,131,881,024.60 | 7,412,287,432.06 | 322,972,731.72 | 7,735,260,163.78 | |||||||
Add: Changes in |
Accounting Policies | |||||||||||||||
Correction of Errors in the Previous Period | |||||||||||||||
Consolidated under the Same Control | |||||||||||||||
Others | |||||||||||||||
II. Balance at the Start of This Year | 2,614,694,040.00 | 1,211,364,214.86 | -63,325,115.75 | 517,673,268.35 | 3,131,881,024.60 | 7,412,287,432.06 | 322,972,731.72 | 7,735,260,163.78 | |||||||
III. Increases or Decreases in This Period (Mark "-" for Decreases) | 38,671,911.79 | -87,972,453.51 | 16,050,528.47 | 265,733,403.55 | 232,483,390.30 | -12,533,353.94 | 219,950,036.36 | ||||||||
(I) Total Comprehensive Income | 9,415,408.76 | 315,130,771.75 | 324,546,180.51 | -12,533,353.94 | 312,012,826.57 | ||||||||||
(II) Shareholders' Contribution and Reduction in Capital | 38,671,911.79 | 38,671,911.79 | 38,671,911.79 | ||||||||||||
1. Common stock invested by the owner | |||||||||||||||
2. Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||||||
4. Others | 38,671,911.79 | 38,671,911.79 | 38,671,911.79 | ||||||||||||
(III) Profit Distribution | 6,311,742.24 | -137,046,444.24 | -130,734,702.00 | -130,734,702.00 |
1. Appropriation of Surplus Reserves | 6,311,742.24 | -6,311,742.24 | |||||||||||||
2. Appropriation of General Risk Reserves | |||||||||||||||
3. Distribution to Owners (or Shareholders) | -130,734,702.00 | -130,734,702.00 | -130,734,702.00 | ||||||||||||
4. Others | |||||||||||||||
(IV) Internal Carry-forward of Shareholders' Equity | -97,387,862.27 | 9,738,786.23 | 87,649,076.04 | ||||||||||||
1. Capital Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
2. Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
3. Surplus Reserves Covering Losses | |||||||||||||||
4. Carry-forward retained earnings of the variation of the defined benefit plan | |||||||||||||||
5. Other Carry-forward Retained Earnings of the Comprehensive Income | -97,387,862.27 | 9,738,786.23 | 87,649,076.04 | ||||||||||||
6. Others | |||||||||||||||
(V) Special Reserves |
1. Withdrawal in this period | |||||||||||||||
2. Used in This Period | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Balance at the End of This Period | 2,614,694,040.00 | 1,250,036,126.65 | -151,297,569.26 | 533,723,796.82 | 3,397,614,428.15 | 7,644,770,822.36 | 310,439,377.78 | 7,955,210,200.14 |
Amount of Previous Period
Unit: RMB
Item | 2020 | ||||||||||||||
Shareholders' Equity Attributable to the Parent Company's Owner | Minority Shareholders' Equity | Total Shareholders' Equity | |||||||||||||
Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Reserves | Undistributed Profits | Others | Subtotal | |||||
Preferred Stocks | Perpetual Bonds | Others | |||||||||||||
I. Balance at the End of Last Year | 1,452,607,800.00 | 2,476,312,069.09 | -8,681,151.59 | 517,673,268.35 | 5,176,157,180.79 | 9,614,069,166.64 | 268,322,155.87 | 9,882,391,322.51 | |||||||
Add: Changes in Accounting Policies | |||||||||||||||
Correction of Errors in the Previous Period | |||||||||||||||
Consolidated under the Same Control | |||||||||||||||
Others | |||||||||||||||
II. Balance at the Start of This Year | 1,452,607,800.00 | 2,476,312,069.09 | -8,681,151.59 | 517,673,268.35 | 5,176,157,180.79 | 9,614,069,166.64 | 268,322,155.87 | 9,882,391,322.51 | |||||||
III. Increases or Decreases in This Period (Mark "-" for Decreases) | 1,162,086,240.00 | -1,264,947,854.23 | -54,643,964.16 | -2,044,276,156.19 | -2,201,781,734.58 | 54,650,575.85 | -2,147,131,158.73 | ||||||||
(I) Total Comprehensive Income | -56,000,550.75 | -1,752,398,009.60 | -1,808,398,560.35 | -14,547,282.20 | -1,822,945,842.55 | ||||||||||
(II) Shareholders' Contribution and | -35,459,327.38 | -35,459,327.38 | 72,197,858.05 | 36,738,530.67 |
Reduction in Capital | |||||||||||||||
1. Common stock invested by the owner | 72,959,327.38 | 72,959,327.38 | |||||||||||||
2. Capital Invested by Holders of Other Equity Instruments | |||||||||||||||
3. Amount of Share-based Payments Recorded into Shareholders' Equity | |||||||||||||||
4. Others | -35,459,327.38 | -35,459,327.38 | -761,469.33 | -36,220,796.71 | |||||||||||
(III) Profit Distribution | -290,521,560.00 | -290,521,560.00 | -3,000,000.00 | -293,521,560.00 | |||||||||||
1. Appropriation of Surplus Reserves | |||||||||||||||
2. Appropriation of General Risk Reserves | |||||||||||||||
3. Distribution to Owners (or Shareholders) | -290,521,560.00 | -290,521,560.00 | -3,000,000.00 | -293,521,560.00 | |||||||||||
4. Others | |||||||||||||||
(IV) Internal Carry-forward of Shareholders' Equity | 1,162,086,240.00 | -1,162,086,240.00 | 1,356,586.59 | -1,356,586.59 | |||||||||||
1. Capital Reserves Transferred into Capital (or Share Capital) | 1,162,086,240.00 | -1,162,086,240.00 | |||||||||||||
2. Surplus Reserves Transferred into Capital (or Share Capital) | |||||||||||||||
3. Surplus Reserves Covering Losses | |||||||||||||||
4. Carry-forward retained earnings of |
the variation of the defined benefit plan | |||||||||||||||
5. Other Carry-forward Retained Earnings of the Comprehensive Income | 1,356,586.59 | -1,356,586.59 | |||||||||||||
6. Others | |||||||||||||||
(V) Special Reserves | |||||||||||||||
1. Withdrawal in this period | |||||||||||||||
2. Used in This Period | |||||||||||||||
(VI) Others | -67,402,286.85 | -67,402,286.85 | -67,402,286.85 | ||||||||||||
IV. Balance at the End of This Period | 2,614,694,040.00 | 1,211,364,214.86 | -63,325,115.75 | 517,673,268.35 | 3,131,881,024.60 | 7,412,287,432.06 | 322,972,731.72 | 7,735,260,163.78 |
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
Item | 2021 | |||||||||||
Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Shareholders' Equity | |||
Preferred Stocks | Perpetual Bonds | Others | ||||||||||
I. Balance at the End of Last Year | 2,614,694,040.00 | 1,248,861,998.85 | -38,171,990.42 | 517,673,268.35 | 1,805,929,459.07 | 6,148,986,775.85 | ||||||
Add: Changes in Accounting Policies | ||||||||||||
Correction of Errors in the Previous Period | ||||||||||||
Others | ||||||||||||
II. Balance at the Start of This Year | 2,614,694,040.00 | 1,248,861,998.85 | -38,171,990.42 | 517,673,268.35 | 1,805,929,459.07 | 6,148,986,775.85 | ||||||
III. Increases or Decreases in This Period (Mark "-" for | 12,880,740.61 | -44,852,631.48 | 16,050,528.47 | 13,720,054.22 | -2,201,308.18 |
Decreases) | ||||||||||||
(I) Total Comprehensive Income | 52,535,230.79 | 63,117,422.42 | 115,652,653.21 | |||||||||
(II) Shareholders' Contribution and Reduction in Capital | 12,880,740.61 | 12,880,740.61 | ||||||||||
1. Common stock invested by the owner | ||||||||||||
2. Capital Invested by Holders of Other Equity Instruments | ||||||||||||
3. Amount of Share-based Payments Recorded into Shareholders' Equity | ||||||||||||
4. Others | 12,880,740.61 | 12,880,740.61 | ||||||||||
(III) Profit Distribution | 6,311,742.24 | -137,046,444.24 | -130,734,702.00 | |||||||||
1. Appropriation of Surplus Reserves | 6,311,742.24 | -6,311,742.24 | ||||||||||
2. Distribution to Owners (or Shareholders) | -130,734,702.00 | -130,734,702.00 | ||||||||||
3. Others | ||||||||||||
(IV) Internal Carry-forward of Shareholders' Equity | -97,387,862.27 | 9,738,786.23 | 87,649,076.04 | |||||||||
1. Capital Reserves Transferred into Capital (or Share Capital) | ||||||||||||
2. Surplus Reserves Transferred into Capital (or Share Capital) | ||||||||||||
3. Surplus Reserves Covering Losses | ||||||||||||
4. Carry-forward retained earnings of the variation of the defined benefit plan | ||||||||||||
5. Other Carry-forward Retained Earnings of the Comprehensive Income | -97,387,862.27 | 9,738,786.23 | 87,649,076.04 | |||||||||
6. Others |
(V) Special Reserves | ||||||||||||
1. Withdrawal in this period | ||||||||||||
2. Used in This Period | ||||||||||||
(VI) Others | ||||||||||||
IV. Balance at the End of This Period | 2,614,694,040.00 | 1,261,742,739.46 | -83,024,621.90 | 533,723,796.82 | 1,819,649,513.29 | 6,146,785,467.67 |
Amount of Previous Period
Unit: RMB
Item | 2020 | |||||||||||
Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Share | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Shareholders' Equity | |||
Preferred Stocks | Perpetual Bonds | Others | ||||||||||
I. Balance at the End of Last Year | 1,452,607,800.00 | 2,478,350,525.70 | 31,870,051.79 | 517,673,268.35 | 3,543,708,352.46 | 8,024,209,998.30 | ||||||
Add: Changes in Accounting Policies | ||||||||||||
Correction of Errors in the Previous Period | ||||||||||||
Others | ||||||||||||
II. Balance at the Start of This Year | 1,452,607,800.00 | 2,478,350,525.70 | 31,870,051.79 | 517,673,268.35 | 3,543,708,352.46 | 8,024,209,998.30 | ||||||
III. Increases or Decreases in This Period (Mark "-" for Decreases) | 1,162,086,240.00 | -1,229,488,526.85 | -70,042,042.21 | -1,737,778,893.39 | -1,875,223,222.45 | |||||||
(I) Total Comprehensive Income | -70,079,712.74 | -1,447,219,662.86 | -1,517,299,375.60 | |||||||||
(II) Shareholders' Contribution and Reduction in Capital | ||||||||||||
1. Common stock invested by the owner | ||||||||||||
2. Capital Invested by Holders of Other Equity Instruments | ||||||||||||
3. Amount of Share-based Payments Recorded into Shareholders' Equity |
4. Others | ||||||||||||
(III) Profit Distribution | -290,521,560.00 | -290,521,560.00 | ||||||||||
1. Appropriation of Surplus Reserves | ||||||||||||
2. Distribution to Owners (or Shareholders) | -290,521,560.00 | -290,521,560.00 | ||||||||||
3. Others | ||||||||||||
(IV) Internal Carry-forward of Shareholders' Equity | 1,162,086,240.00 | -1,162,086,240.00 | 37,670.53 | -37,670.53 | ||||||||
1. Capital Reserves Transferred into Capital (or Share Capital) | 1,162,086,240.00 | -1,162,086,240.00 | ||||||||||
2. Surplus Reserves Transferred into Capital (or Share Capital) | ||||||||||||
3. Surplus Reserves Covering Losses | ||||||||||||
4. Carry-forward retained earnings of the variation of the defined benefit plan | ||||||||||||
5. Other Carry-forward Retained Earnings of the Comprehensive Income | 37,670.53 | -37,670.53 | ||||||||||
6. Others | ||||||||||||
(V) Special Reserves | ||||||||||||
1. Withdrawal in this period | ||||||||||||
2. Used in This Period | ||||||||||||
(VI) Others | -67,402,286.85 | -67,402,286.85 | ||||||||||
IV. Balance at the End of This Period | 2,614,694,040.00 | 1,248,861,998.85 | -38,171,990.42 | 517,673,268.35 | 1,805,929,459.07 | 6,148,986,775.85 |
III. Basic Information about the CompanySongcheng Performance Development Co., Ltd. (previously named Hangzhou Songcheng Tourism Development Co., Ltd., hereinafterreferred to as the "Company"). On December 27, 2000, its predecessor Hangzhou Songcheng Group Co., Ltd. (formerly namedHangzhou Worldland·Songcheng Real Estate Co., Ltd) contributed its net assets audited on November 30, 2000 converted into
shares at the ratio of 1:1 to alter itself and establish Hangzhou Songcheng Tourism Development Co., Ltd. (changing its name toSongcheng Performance Development Co., Ltd on April 18, 2014), according to the approval document of Zhejiang [2000] No. 69"Official Reply on the Approval for Alteration and Establishment of Hangzhou Song Cheng Tourism Development Co., Ltd." issued byLeading Group for Enterprise Listing of Zhejiang Provincial People's Government . The Company obtained the Business License ofEnterprise Legal Person issued by Hangzhou Administration for Industry and Commerce on December 28, 2000, with the registrationnumber of 3301002004635. The legal representative of the Company is Huang Qiaoling.Upon approval of the document [2010] No. 1632 "Official Reply on Approval of Hangzhou Songcheng Tourism Development Co., Ltd.Initial Public Offering and Listing on the Growth Enterprise Market” issued by China Securities Regulatory Commission (CSRC), theCompany’s A shares were listed on Shenzhen Stock Exchange on December 9, 2010 with stock code 300144.As of December 31, 2021, the Company issued a total of 2,614,694,040 shares, and the registered capital was RMB 2,614,694,040.Unified social credit code for Business License of Enterprise Legal Person: 91330000143102311G, Registered address: 148 ZhijiangRoad, Hangzhou. The business scope includes: singing and dancing performance, acrobatics performance, opera performance,music performance, comprehensive artistic performance (operated within the scope of "Business Performance License"),performance and brokerage business (operated within the scope of "Business Performance License"), catering service (See "CateringService License" for details), and parking service. Tourism services, theme park development and management, planning andorganization of cultural activities, cultural communication planning, animation design, exhibition organization, investment in anddevelopment of leisure industry, industrial investment, tourism e-business, design, production, agency, and release of variousdomestic advertisements, film and television projects Investment and management, tourism products and arts &crafts (excludinggold jewelry), general merchandise, native products (excluding food) sales, publication wholesale and retail (operating with alicense); the business scope of subsidiaries included. (For items subject to approval according to law, business activities can only becarried out after approval by relevant departments)The Company has eight theme parks in different regions at present: Hangzhou Songcheng Tourism Area (Hangzhou Songcheng),Hangzhou Crazy Apple Land and Hangzhou Wonderland; Sanya Romance Park; Lijiang Romance Park; Jiuzhai Romance Park andTibetan Mystery Theater; Guilin Romance Park; Zhangjiajie Romance Park; Xi’an Romance Park; and Shanghai Romance Park. Thecurrent business of the Company also extends to the planning and design of parks as well as Internet and video related industries.The basic organizational structure of the company: the highest authority of the company is the General Meeting of Shareholders,with implementation of the president responsibility system under the leadership of the Board of Directors. To satisfy the needs ofbusiness development, the Company has set up the President's Office, Human Resources Department, Securities InvestmentDepartment, Financial Management Department, Design Department, Marketing Planning Department, Engineering ManagementDepartment, Audit Department, Arts Troupe Department, Business Development and Management Department, InnovationDepartment and other functional departments.The parent company of the company is Hangzhou Songcheng Group Holdings Co., Ltd, and the actual controller of the company isHuang Qiaoling.These financial statements were approved by the Board of Directors of the Company on April 22, 2022.As of December 31, 2021, the subsidiaries listed in the consolidated financial statements of the Company are as follows:
Name of SubsidiariesHangzhou Paradise Co., Ltd.
Hangzhou Paradise Co., Ltd.Sanya Romance Tourism Performance Co., Ltd.
Sanya Romance Tourism Performance Co., Ltd. |
Lijiang Chama Ancient City Tourism Development Co., Ltd |
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd
Aba Zhou Jiuzhai Romance Tourism Development Co., LtdHangzhou Songcheng Tourism Development Co., Ltd
Hangzhou Songcheng Tourism Development Co., Ltd |
Hanghzou Songcheng Dumuqiao Travel Services Co., Ltd |
Jiuzhaigou Tibetan Mystery Culture Co., LtdHangzhou Songcheng Technology Development Co., Ltd.
Hangzhou Songcheng Technology Development Co., Ltd.Songcheng Performance International Development Co., Ltd.
Songcheng Performance International Development Co., Ltd. |
Songcheng (Australia) Holdings Pty Ltd |
Songcheng (Australia) Entertainment Pty Ltd.
Songcheng (Australia) Entertainment Pty Ltd. |
Shanghai Songcheng World Expo Performance Development Co., Ltd |
Songcheng Performance Development (Shanghai) Co., Ltd.
Songcheng Performance Development (Shanghai) Co., Ltd.Guilin Lijiang Romance Performance Development Co., Ltd
Guilin Lijiang Romance Performance Development Co., Ltd |
Ningxiang Songcheng Tourism Development Co., Ltd. |
Zhangjiajie Romance Performance Development Co., Ltd
Zhangjiajie Romance Performance Development Co., Ltd |
Songcheng Technology Development Co.,Ltd. |
Songcheng Tourism Development Co., Ltd.
Songcheng Tourism Development Co., Ltd.Songcheng Performance Management Co., Ltd.
Songcheng Performance Management Co., Ltd. |
Songcheng Dumuqiao Network Co., Ltd. |
Xi'an Romance Performance Development Co., Ltd
Xi'an Romance Performance Development Co., Ltd |
Zhejiang Songcheng Xitang Performance Valley Performance Development Co., Ltd |
Foshan South Sea Qiao Mountain Cultural Tourism Development Co., Ltd
Foshan South Sea Qiao Mountain Cultural Tourism Development Co., LtdHangzhou Songguo Cultural Creative Co., Ltd.
Hangzhou Songguo Cultural Creative Co., Ltd. |
Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd |
Songcheng Holdings (Thailand) Co., Ltd.
Songcheng Holdings (Thailand) Co., Ltd.Songcheng (Pattaya) International Culture Co., Ltd.
Songcheng (Pattaya) International Culture Co., Ltd. |
Zhuhai Songcheng Performance Kingdom Co., Ltd |
Zhuhai Southern Film and Television Cultural Industry Co., Ltd.
Zhuhai Southern Film and Television Cultural Industry Co., Ltd. |
Zhuhai Huayin Landscaping Co., Ltd. |
Songcheng Brand Management Co., Ltd.
Songcheng Brand Management Co., Ltd. |
Romance Show Management Co., Ltd. |
Global Bacchus Limited
See "IX. Interests In Other Entities" in the notes for relevant information of the subsidiaries of the Company.See "VIII. Changes in the Scope of Consolidation" in the notes for changes in the scope of consolidation during the reporting period.IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises-Basic Standards" andrelated specific accounting standards issued by the Ministry of Finance, Guidelines for Application of Accounting Standards forBusiness Enterprises", “Interpretation of Accounting Standards for Business Enterprises and other relevant provisions" (hereinaftercollectively referred to as the "Accounting Standards for Business Enterprises"), and "No. 15 of the Rules on Information Disclosureand Reporting of the Companies Issuing Securities Publicly" issued by CSRC.
2. Going concern
There is no events or conditions that may cast significant doubt on the Company's ability to continue as a going concern for 12months after the end of the current reporting period.
V. Significant Accounting Polices and Accounting Estimates
1. Statement on compliance with Accounting Standards for Business Enterprises
This financial statement is in compliance with the requirements in the Accounting Standards for Business Enterprises promulgatedby the Ministry of Finance and presents truly and completely the financial position of the merged companies and the parentcompany as at Friday, December 31, 2021 and the operating results and cash flows of the merger and the parent company in 2021.
2. Accounting period
An accounting year commences on January 1 and ends on December 31 of the Gregorian calendar.
3. Operating cycle
The Company's operating cycle is 12 months.
4. Functional currency
The company uses RMB as the standard currency for bookkeeping.
5. The accounting treatment of business combinations involving enterprises under common control andbusiness combinations not involving enterprises under common control
The assets and liabilities acquired by the combining party from the business combination (including the goodwill generated by theultimate controlling party's acquisition of the combined party) shall be measured on the basis of the book value of the assets andliabilities of the combined party in the consolidated financial statements of ultimate controlling party on the combination date. Thedifference between the book value of the net assets obtained and the book value of the consideration paid for the combination (ortotal nominal value of the issued shares) is adjusted to capital premium in capital reserve. Adjustments shall be made to retainedearnings in the event that the share premiums in the capital reserves are not sufficient for write-down.Business combination under different control: The cost of combination is the fair value of the assets, liabilities incurred or assumed,and equity securities issued by the acquiring party to obtain the control right of the acquired party on the acquisition date. Wherethe cost of combination is higher than the fair value of the identifiable net assets acquired from the merging party in businesscombination, such difference shall be recognized as goodwill; where the cost of combination is less than the fair value of theidentifiable net assets acquired from the merging party in business combination, such difference shall be charged to the profit orloss for the period. The identifiable assets, liabilities and contingent liabilities obtained by the acquiring party that meet therecognition conditions should be measured at fair value of the acquisition date.The fees which are directly related to the business combination shall be recognized as the profit or loss in the period when the costsare incurred; the transaction expenses of issuing equity securities or debt securities for business merger shall be initially capitalizedfor equity securities or debt securities.
6. Preparation method of consolidated financial statements
(1) Scope of Consolidation
The scope of consolidation of the consolidated financial statements is determined on the basis of control, and includes the Companyand all its subsidiaries. Control means that the Company has the rights over the investee, enjoys variable returns throughparticipating in relevant activities of the investee, and has the ability to influence the amount of returns by exercising its rights overthe investee.
(2) Procedures of Consolidation
The Company regards the whole group as an accounting entity and prepares consolidated financial statements in accordance withunified accounting policies, in order to reflect the overall financial position, operating results and cash flow of the group. Theinfluence of internal transactions between the Company and the Subsidiaries and between the Subsidiaries shall be offset. Whereinternal transaction indicates the occurrence of impairment loss to relevant assets, such loss shall be recognized in full. In preparingthe consolidated financial statements, where the accounting policies and the accounting periods are inconsistent between theCompany and subsidiaries, the financial statements of subsidiaries are adjusted in accordance with the accounting policies andaccounting period of the Company.The owner's equity, the net profit or loss and the comprehensive income attributable to minority shareholders of a subsidiary of thecurrent period are presented separately under the owners' equity in the consolidated balance sheet, the net profit and the totalcomprehensive income in the consolidated income statement respectively. Where losses attributable to the minority shareholdersof a subsidiary of the current period exceed the minority shareholders' interest entitled in the shareholders' equity of the subsidiaryat the beginning of the period, the excess is allocated against the minority shareholders interest.
1) Increase of subsidiaries or business
For acquisition of subsidiaries or business due to business combination involving entities under common control during thereporting period, the operating results and cash flows of such subsidiaries or business from the beginning to the end of thereporting period when the acquisition occurs shall be included in the consolidated financial statements. Adjustments shall be madeto the opening balance of the consolidated financial statements and the related items in the comparative statementssimultaneously as if the consolidated reporting entity has been in existence since the beginning of the control by the ultimatecontrolling party.For acquisition of subsidiaries or business due to business combination involving entities not under common control during thereporting period, the identifiable assets, liabilities and contingent liabilities shall be included in the consolidated financialstatements based on the fair value determined on the date of the acquisition.
2) Disposal of subsidiaries
① General treatment methods
When losing control of the investee due to partial disposal of the equity investment, or any other reasons, the remaining equityinvestment is remeasured at fair value at the date in which control is lost. The sum of consideration received from disposal of equityinvestment and the fair value of the remaining equity investment, net of the difference between the sum of the Company's previousshare of the subsidiary's net assets recorded from the acquisition date or combination date and the sum of goodwill, is recognizedin investment income in the period in which control is lost. Other comprehensive income related to the equity investment of theoriginal subsidiary that can be reclassified into future profit or loss, and other changes of owners’ equity accounted for under equitymethod shall be recognized in investment income in the period in which control is lost.
② Disposal of subsidiaries step by step
If the equity investment in the subsidiary is disposed of step by step through multiple transactions until the control right is lost, theterms, conditions and economic impact of each transaction on the equity investment in the subsidiary meet one or more of thefollowing conditions, which usually indicates that the multiple transactions should fall within a "package deal":
ⅰ. These transactions are achieved at the same time or the mutual effects on each other are considered;
ⅱ. A complete set of commercial results can be achieved with reference to the series of transactions as a whole;ⅲ. Achieving a transaction depends on at least achieving of one of the other transaction;ⅳ. One transaction recognized separately is not economical, but it is economical when considered together with other transactions.If the transactions are recognized as a “package deal", these transactions shall be subject to accounting treatment as onetransaction in which the subsidiaries are disposed and the control is lost; the difference between the price for each disposal beforethe control is lost and share of such subsidiaries’ net assets as a result of disposal of investment, shall be recognized in othercomprehensive income in the consolidated financial statements, and be included in profit or loss for the period when the control islost.If the transactions are not recognized as a “package deal", before the loss of control rights, the accounting treatment is conductedaccording to the partial disposal of equity investment in subsidiaries without loss of control rights; in case of loss of control rights,the accounting treatment is conducted according to the general treatment method for disposal of subsidiaries.
3) Purchase of minority shares of subsidiaries
If there is a difference between the new long-term equity investment acquired as a result of the purchase of minority shares and theshare of net assets that the Company is entitled to continuously calculated from the date of purchase or merger of the Subsidiarybased on the new shareholding ratio, the equity premium in the capital reserves in the consolidated balance sheet is adjusted.Where the equity premium in the capital reserve is insufficient to offset, retained earnings are adjusted.
4) Partial disposal of equity investment in subsidiaries without losing control
If there is a difference between the disposal price and the share of net assets continuously calculated by the subsidiary from thedate of purchase or merger corresponding to the disposal of the long-term equity investment, the equity premium in the capitalreserves in the consolidated balance sheet is adjusted. Where the equity premium in the capital reserve is insufficient to offset,retained earnings are adjusted.
7. Classification of joint venture arrangements and the accounting treatment method of joint operationJoint arrangement can be divided into joint operation and joint venture.Joint venture refers to the joint venture arrangement in which the joint venture partners enjoy the assets relating to thearrangement and undertake the liabilities relating to the arrangement.The Company recognizes the following items related to the shares or interests in the joint venture:
(1) Recognize the assets held separately by the Company and the assets jointly held in accordance with the share of the Company;
(2) Recognize the liabilities assumed separately by the Company and the liabilities jointly assumed in accordance with the share ofthe Company;
(3) Recognize the income generated through the sale of the Company’s share of the output of the joint operation;
(4) Recognize the income generated through the sale of the output of the joint operation in accordance with the share of theCompany.
(5) Recognize the expenses incurred separately, and the expenses incurred in joint operation in accordance with the share of theCompany .
8. Recognition criteria of cash and cash equivalents
Cash refers to the cash on hand and deposits that are available for payment at any time of the Company. Cash equivalents refer toinvestments held by the Company featuring short duration, strong liquidity, easy conversion into cash of known amount and low riskof changes in value.
9. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day when the transactions occurred.Balance sheet date foreign currency monetary items shall be translated using the spot exchange rate at the balance sheet date. Theresulting exchange differences are recognized in profit or loss for the current period, except for those differences related to theprincipal and interest on a specific-purpose borrowing denominated in foreign currency for acquisitions, construction or productionof the qualified assets, which should be capitalized as cost of the assets.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date; owners' equityitems other than "undistributed profit" are translated at a spot exchange rate when accrued. The revenue and expense items in theincome statement are converted using the weighted average exchange rate which is determined on the date of the transaction byusing systematic and reasonable method.For disposal of overseas operation, the translation difference as stated in the foreign currency financial statements relating tooverseas operation, is accounted for in the profit and loss account in the current period from owners' equity items.
10. Financial instruments
The Company recognizes a financial asset, financial liability or equity instrument when it becomes a party to a financial instrumentcontract.
(1) Classification of the financial instruments
According to the company's business model for managing financial assets and the contractual cash flow features of financial assets,financial assets at initial recognition are classified into: financial assets measured at amortized cost, financial assets measured at fairvalue with changes recognized in other comprehensive income and financial assets measured at fair value with changes recognizedin profits and losses of the current period.For financial assets that meet the following conditions and are not designated to be measured at fair value through the currentprofit or loss, the Company classifies them as financial assets at amortized cost:
- The business model is aimed at collecting contract cash flow;- Contract cash flow is the payment of principal and interest based on the outstanding principal amount.For financial assets that meet the following conditions and are not designated to be measured at fair value through current profit orloss, the Company classifies them as financial assets at fair value through other comprehensive income (debt instruments).- The business model is aimed at both collecting contract cash flows and selling financial asset;- Contract cash flow is the payment of principal and interest based on the outstanding principal amount.The Company will, at the time of initial recognition, irrevocably designate non-trading investments in equity instruments as financialassets measured at fair value and the change shall be included in other comprehensive income (equity instrument). The designationis made on the basis of independent investment, and the related investments fit the definition of an equity instrument from anissuer’s perspective.In addition to the aforementioned financial assets at amortized cost and at fair value through other comprehensive income, theCompany classifies all other financial assets as financial assets at fair value through current profit or loss.The financial liabilities, when initially recognized, are classified as: financial liabilities at fair value through profit or loss and financialliabilities at amortized cost.
(2) Recognition and measurement of financial instruments
1) Financial assets measured at amortized cost
Financial assets at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables andcreditors investment, which shall be initially measured at fair value, and the relevant transaction expenses should be initiallycapitalized; The accounts receivable that do not contain material financing compositions and those for which the Company decidesto not take into account the financing compositions of no more than one year shall be initially measured at the contract transactionprice.The interest calculated by effective interest method during the holding period is recorded into the current profit and loss.At the time of recovery or disposal, the difference between the price obtained and the book value shall be included in the currentprofit or loss.
2) Financial assets (debt instruments) measured at fair value and whose changes included in other comprehensive incomeFinancial assets measured at fair value and its changes are included in other comprehensive income (debt instruments) includereceivables financing and investments in other creditor's rights. They are initially measured at fair value, and the relevanttransaction expenses should be initially capitalized. These financial assets are subsequently measured at fair value, and the changein fair value, other than the interest, the impairment loss or profit and the profit or loss on foreign exchange, shall be included inother comprehensive income.Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be removed fromother comprehensive income and included in the profit or loss for the period.
3) Financial assets (equity instruments) measured at fair and whose changes included in other comprehensive incomeFinancial assets at fair value through other comprehensive income (equity instruments) include investment in other equityinstruments. They are initially measured at fair value, and the transaction expenses shall be initially capitalized. These financialassets are subsequently measured at fair value, and the change in fair value shall be included in other comprehensive income. Thedividends obtained shall be included in the profit or loss for the period.Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be removed fromother comprehensive income and included in the carry-forward retained earnings.
4) Financial assets measured at fair value and whose changes included in profit and loss of the current periodFinancial assets at fair value through profit or loss include trading financial assets, derivative financial assets and other non-currentfinancial assets. They are initially measured at fair value, and the transaction expenses related to them are included in the profit orloss for the period. These financial assets are subsequently measured at fair value, and the change in fair value shall be included inthe profit or loss for the period.
5) Financial liabilities measured at fair value and whose changes included in profit and loss of the current periodFinancial liabilities at fair value through profit or loss include trading financial liabilities and derivative financial liabilities. They areinitially measured at fair value, and the transaction expenses related to them are included in the profit or loss for the period. Thesefinancial liabilities are subsequently measured at fair value, and the change in fair value shall be included in the profit or loss for theperiod.Upon derecognition, the difference between their book value and the consideration paid is included in the profit or loss for theperiod.
6) Financial liabilities measured at amortized cost
Financial liabilities at amortized cost include short-term loans, notes payable, accounts payable, other payables, long-term loans,bonds payable, and long-term payables. They are initially measured at fair value, and the transaction expenses shall be initiallycapitalized.The interest calculated by effective interest method during the holding period is recorded into the current profit and loss.Upon derecognition the difference between the consideration paid and the book value of these financial liabilities is included in thecurrent profit or loss.
(3) Derecognition and transfer of financial assets
The Company derecognizes financial assets when any one of the following conditions is satisfied:
The contractual right to receive cash flows of the financial assets has been terminated;The financial asset has been transferred and virtually all the risks and rewards related to the ownership of the financial asset shavebeen transferred to the transferee;The financial assets have been transferred, and while the Company has neither transferred nor retained virtually all of the risks andrewards related to the ownership of the financial assets, it has not retained control of the financial assets.At the time of the transfer of financial assets, the recognition of the financial assets shall not be terminated if the Company hasretained virtually all the risks and rewards related to the ownership of the financial assets.The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets satisfies theabove conditions for termination of recognition.The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire financial assetsatisfies the conditions for termination of recognition, the difference between the two amounts below shall be recorded into profitor loss for the period:
1) Book value of transferred financial assets;
2) The consideration received as a result of the transfer, and the sum of cumulative amount of fair value changes that originallyincluded in owner equity (the financial assets involved in the transfer are the financial assets (debt instruments) measured at fairvalue and whose changes are included in other comprehensive income).If the partial transfer of financial assets satisfies the conditions for termination of recognition, the overall book value of thetransferred financial asset shall be apportioned according to their respective relative fair value between the recognition terminatedpart and the remaining part, and the difference between the two amounts below shall be recorded into profit or loss for the currentperiod:
1) Book value of the derecognized part;
2) The consideration for derecognized part, and the sum of the cumulative amount of the derecognized part in fair value changesthat originally recorded in owner's equity (the financial assets (debt instruments) involved in the transfer are measured at fair valueand whose changes are included in other comprehensive income).Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition, with the considerationreceived recognized as a financial liability.
(4) Recognition for termination of financial liabilities
When the current obligation under a financial liability is completely or partially discharged, the recognition of the whole or relevantportion of the liability is terminated; an agreement is entered between the Company and a creditor to replace the original financialliabilities with new financial liabilities with substantially different terms, terminate the recognition of the original financial liabilitiesas well as recognize the new financial liabilities.If all or part of the contract terms of the original financial liabilities are substantially amended, the recognition of the originalfinancial liabilities will be terminated in full or in part, and the financial liabilities whose terms have been amended shall berecognized as a new financial liability.When recognition of financial liabilities is terminated in full or in part, the difference between the book value of the financialliabilities terminated and the consideration paid (including transferred non-cash assets or new financial liability) is recognized inprofit or loss for the current period.Where the Company repurchases part of its financial liabilities, the book value of such financial liabilities will be allocated accordingto the relative fair value between the continued recognized part and terminated part on the repurchase date. The differencebetween the book value of the financial liabilities terminated and the consideration paid (including transferred non-cash assets or
new financial liability) is recognized in profit or loss for the current period.
(5) Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. Thefair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. The Companyuses the valuation technique when it is applicable under current conditions and there are enough available data and otherinformation to support and the technique should maximize the use of relevant observable. It chooses the inputs which areconsistent with the asset or liability's characteristics considered by market participants in the transaction of the relevant asset orliability and makes the maximum use of relevant observable inputs. Unobservable inputs are used under the circumstance that therelevant observable inputs cannot be obtained or not feasible.
(6) Test method and accounting treatment for impairment of financial assets
The Company assesses the expected credit losses of financial assets measured at amortized cost, financial assets (debt instruments)measured at fair value and whose changes included in other comprehensive income and financial guarantee contracts by item or bygroup.The Company calculates the probability-weighted amount of the current value of the difference between the cash flows receivableunder the Contract and the cash flows expected to receive, and recognizes the expected credit loss, by taking into account all thereasonable and well-founded information, including past events, current condition and forward-looking economic situation, andweighting the risk of default.If the credit risk of this financial instrument has been significantly increased upon initial recognition, the Company measures its lossprovision in accordance with the amount equivalent to the expected credit loss of the financial instrument throughout the duration;if the credit risk of this financial instrument is not significantly increased upon initial recognition, the Company will measure the lossprovision of this financial instrument by the amount of its expected credit loss in the 12 months to come. The increased or reversedamount of the loss provision resulting therefrom is included in the current profit or loss as the impairment loss or profit.The Company recognizes the relative changes in the risk of default within the expected duration of financial instruments, andassesses whether the credit risk of financial instruments has significantly increased since the initial recognition by comparing therisk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date. If thefinancial instrument becomes overdue for more than 30 days, the Company believes that the credit risk of this financial instrumenthas been significantly increased, unless there are concrete evidences that the credit risk of this financial instrument has not beensignificantly increased upon initial recognition.If the financial instrument carries low credit risk at the balance sheet date, the Company believes that the credit risk of this financialinstrument is not significantly increased upon initial recognition.If there are objective evidences showing that a certain financial asset has been subject to credit impairment, the Company willaccrue impairment provision for this financial asset on the individual asset basis.The Company will always measure the loss provision for the accounts receivable and contract assets generated by transactionsregulated by Accounting Standards for Enterprises No. 14 - Revenue (2017), whether they contain material financing compositionsor not, by the amount of the expected credit loss throughout the duration.The Company will always measure the loss provision for the lease receivable by the amount of the expected credit loss throughoutthe duration.The Company shall write down the book balance of a financial asset directly if it no longer reasonably expects that the contract cashflow of the financial asset can be recovered in whole or in part.Classify the accounts receivable, and the expected credit loss ratio for each portfolio is as follows:
Portfolio Name | Basis to Determine the Portfolio | Accrued method |
Portfolio one | Consolidation scope and accounts receivable | If there is objective evidence showing that it has been |
from related parties | impaired, the impairment loss should be determined based on the difference between the present value of the future cash flow and its book value. Provision for bad debts shall be made. If no impairment is found after testing, no provision for bad debts shall be made. |
Portfolio two
Portfolio two | The accounts receivable other than portfolio one: portfolio based on credit risk features by aging | Accrued based on the comparison table of the expected credit loss rate over the duration |
The bad debt provision method of portfolio two is adopted
Credit period | Expected credit loss ratio (%) |
Not overdue within the credit period | 3 |
Overdue to less than 1 year | 15 |
Overdue to 1-2 years | 25 |
Overdue to 2-3 years | 45 |
Overdue to 3-4 years | 60 |
Overdue to 4-5 years | 80 |
Overdue for more than 5 years
Overdue for more than 5 years | 100 |
11. Inventory
(1) Classification and cost of inventory
Inventory is classified into: inventory goods, turnover materials, etc.
(2) Determination of cost
The weighted average method is applied when the inventory is issued.
(3) Basis for the determination of net realizable value and different type of inventories
On the balance sheet date, inventory should be measured at cost or net realizable value (whichever is lower). When the cost ofinventory is higher than its net realizable value, the Company shall make provision for inventory depreciation. Net realizable valuereferred to the estimated selling price of inventory less the estimated cost to be incurred upon completion, the estimated sellingexpense and related taxes.Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, and held-for-sale raw materials,during the normal course of production and operation, shall be determined by their estimated sales less the related selling expensesand taxes; the net realizable value of material inventories, which need to be processed, during the normal course of production andoperation, shall be determined by the amount after deducting the estimated cost of completion, estimated selling expenses andrelevant taxes from the estimated selling price of finished goods; the net realizable value of inventories held for execution of salescontracts or labor contracts shall be calculated on the ground of the contracted price. If an enterprise holds more inventories thanthe quantity stipulated in the sales contract, the net realizable value of the exceeding part shall be calculated on the ground ofgeneral selling price.The inventory falling price reserves withdrawn shall be reversed within the amount withdrawn, and the reversed amount shall beincluded in current profit or loss, if the net realizable value of an inventory is higher than its book value after the withdrawal due tothe disappearance of the factors that influence the writing-down of its value.
(4) Inventory system
The perpetual inventory system is adopted.
(5) Amortization of low-value consumables and packaging materials
One-time write-off method is used for low-value consumables.
12. Contract assets
(1) Recognition methods and standards of contract assets
The Company shall show the contract assets or contract liabilities in the balance sheet in accordance with the relationship betweenthe performance of the contract obligations and the Customer payment. The Company shall list its right to receive considerationdue to the transfer of goods or services to the Customer (and such rights are subject to factors other than the passage of time) ascontractual assets. Contract assets and contract liabilities under the same contract shall be shown on a net basis. The Company’sunconditional right (depending solely on the passage of time) to collect consideration from the Customer shall be shown separatelyas a receivable.
(2) Determination method and accounting treatment for the expected credit loss of contract assetsFor details of the method for determining the expected credit loss of contract assets and the accounting treatment, please refer toNote V (10) 6. "Testing method and accounting treatment method of financial asset impairment".
13. Contract cost
Contract costs include contract performance costs and contract acquisition costs.The Company recognizes the costs incurred for performing the contract and that not fall within the scope of inventories, fixed assetsor intangible assets as stipulated by related standards as an asset when the following conditions are met:
· The cost is directly related to a current or anticipated contract.· The cost increases the Company’s future resources to perform obligations.· The cost is expected to be recovered.The Company regards the incremental cost incurred to acquire the contract and that are expected to be recovered as contractacquisition costs, and recognizes them as an asset.Assets related to contract costs shall be amortized using the same basis as income recognition of goods or services related to theasset. However, the Company shall include the amount in current profit or loss if the amortization period of the contract acquisitioncost is less than one year.The Company shall draw an impairment provision for the excess part when the book value of an asset related to the contract cost ishigher than the difference between the following two items, and recognize it as an impairment loss of the asset:
1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
2. The costs expected to be incurred for the transfer of the relevant goods or services.
The Company shall reverse the impairment provision withdrawn and include it in current profit or loss if the impairment factors ofthe previous period change and cause the aforementioned difference higher than the book value of the asset. However, the bookvalue of the asset after reverse shall not exceed the book value of the asset on the reverse date under the assumption that noprovision for the impairment is withdrawn.
14. Holding of the assets for sale
An asset whose book value is recovered mainly through the sale (including the exchange of non-monetary assets of a commercialnature) rather than through the continuous use of a non-current asset or disposal group is classified as holding-for-sale.A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria at the sametime:
1) Assets that are ready for immediate sale under the current circumstance in accordance with the practice of selling such assets ordisposal groups in similar transactions;
2) Assets that are most likely to be sold, i.e. the Company has decided on a sale plan and has a firm commitment to purchase, andthe sale is expected to be completed within one year. If required by relevant provisions that selling shall only be made afterapproved by the relevant competent authority or supervision department of the Company, such approval should have beenobtained.For those classified as non-current assets holding for sale (excluding financial assets and deferred income tax assets) or disposalassets, if book value is higher than the net amount after deducing sales expenses from fair value, the book value should be revisedand written down to net amount after deducing sales expenses from fair value. The amount written down shall be recognized asassets impairment loss and included in current profit or loss. The impairment provision of assets holding for sale should be made.
15. Long-term equity investment
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement, and exists only when requiring the unanimousconsent of the parties sharing control before making decisions about the relevant activities of the arrangement. The Companytogether with the other joint venture parties can jointly control over the investee and are entitled to the right of the net assets ofthe investee, as the investee is joint venture of the Company.Significant influence refers to the right to participate in the financial and business decisions of the invested entity, but the inabilityto control or jointly control the formulation of policies. Where the Company can exercise significant influence over the investee, theinvestee is an associate of the Company.
(2) Determination of initial investment cost
1) Long-term equity investment formed by business combination
For long-term equity investment in a subsidiary generated due to business combinations involving entities under common control,the share of the book value in the consolidated financial statements of the ultimate controlling party on the date of combinationsshall be taken as the initial investment cost of the long-term equity investments. For difference between the initial cost of long-termequity investment and the book value of the consideration paid, adjustments shall be made to the equity premiums in the capitalreserve. When the equity premiums in the capital reserve are not sufficient for write-down, the retained earnings shall be adjusted.For long-term equity investment in a subsidiary generated due to business combinations involving entities not under commoncontrol, the cost of the combination recognized on the date of combination shall be taken as the initial investment cost of thelong-term equity investments.
2) Long-term equity investment made by means other than business combination
The initial cost of a long-term equity investment obtained by cash payment shall be the purchase costs actually paid.The initial cost of investment of a long-term equity investment obtained by means of issuance of equity securities shall be the fairvalue of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
1) Long-term equity investment calculated by cost method
Long-term equity investment in subsidiaries of the company is calculated by cost method, unless the investment meets theconditions for holding for sale. except for the actual consideration paid for the acquisition of investment or the declared but not yetdistributed cash dividends or profits which are included in the consideration, investment gains are recognized as the Company'shares of the cash dividends or profits declared by the investee.
2) Long-term equity investment calculated by equity method
Long-term equity investments of associates and jointly controlled entities are calculated using equity method. Where the initialinvestment cost exceeds the investment, the difference between the share of the fair value of the investee’s identifiable net assetsshall be enjoyed and no adjustment shall be made to the initial investment cost of long-term equity investment; where the initialinvestment cost is less than the investment, the difference between the share of the fair value of the investee’s identifiable net
assets shall be enjoyed and be included in current profit or loss, and adjustments shall be made to the initial investment cost oflong-term equity investment.The Company recognizes the investment income and other comprehensive income according to the shares of net profit or loss andother comprehensive income realized by the investee which it shall be entitled or shared respectively, and simultaneously makesadjustment to the book value of long-term equity investments; The book value of long-term equity investment shall be reduced byattributable share of the profit or cash dividends for distribution declared by the investee. In relation to other changes of owner'sequity except for net profits and losses, other comprehensive income and profit distributions of the investee, the book value oflong-term equity investments shall be adjusted and included in owner’s equity.When recognizing the amount of proportion of net profit or loss, other comprehensive income and other changes of owner’s equity,in the investee which it entitles, fair value of the identifiable assets of the investee at the time when the investment is obtained shallbe used as basis, and adjustment shall be made to the net profit, other comprehensive income and others of the investee inaccordance with the accounting policies and accounting period of the Company.The Company shall be liable for net loss incurred by the Company to the joint venture or associate, and shall write it down to zerowith the book value of the long-term equity investment and other long-term equity which substantially constitute net investment inthe joint venture or associate. Where a joint venture or associate later realizes net profits, the Company shall resume recognition ofits share of income after the share of income has made up for the unrecognized share of loss.
3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between its book value and the actual proceeds is included in thecurrent profits and losses.Where a part of long-term equity investment that is measured under the equity method is disposed of, if the remaining part is stillmeasured under the equity method, the original other comprehensive income recognized under the equity method should berecognized in proportion on the same basis as the investee directly disposes of relevant assets or liabilities, and the changes in othercomprehensive income should be transferred to the current profit or loss in proportion.If the common control or significant impact on the investee is lost due to the disposal of equity investments, the original othercomprehensive income recognized by calculating equity investment under the equity method on the same basis as the investee'sdirect disposal of related assets or liabilities when the equity method is not adopted. Other changes of the owner’s equity are alltransferred to the current profit and loss when the equity method is not adopted.If the Company loses control over an investee due to the disposal of part of its equity investment and the remaining equity can beused to exercise joint control or significant influence over the investee when some individual financial statements are prepared, theequity method shall be used for accounting instead and the remaining equity shall be deemed to be accounted and adjusted byusing the equity method when it is acquired. The other comprehensive income recognized before the control over the investee isacquired should be transferred in proportion on the same basis as the investee directly disposes of relevant assets or liabilities. Thechanges in other comprehensive income under the equity method for measurement should be transferred the current profit or lossin proportion. If the remaining equity cannot constitute joint control over or substantial influence on the investee, such remainingequity shall be recognized as financial assets. The difference between the fair value on the day when the control is lost and thecarrying value should be recorded in the current profit or loss. The changes in other comprehensive income and owner’s equityrecognized before the control over the investee is acquired should be transferred in full.The equity investment in the subsidiary is disposed of step by step by the Company through multiple transactions until the controlright is lost. If the foregoing transactions belong to a "package deal", the Group conducts accounting treatment by taking eachtransaction as a transaction for disposal of subsidiaries and loss of control rights. The difference between the price of each disposalbefore the control is lost and the carrying value of long-term equity investment related to the disposed equity is recognized in othercomprehensive income, and then transferred to the profit or loss of the current period when the control is lost. If it does notconstitute a "package deal", the Company should consider each of the transactions separately.
16. Investment property
Measurement Mode of Investment PropertyMeasured by cost methodDepreciation or amortization methodsInvestment property refers to the real estate held to generate rental income or capital appreciation, or both, including leased landuse rights, land use rights held for transfer after appreciation, and leased buildings (including buildings that are leased aftercompletion of self-construction or development activities and buildings in construction or development that are used for rental inthe future).Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the relevant economic benefitsare likely to flow in and the cost can be measured reliably. The book value of the replaced part is derecognized. Other subsequentexpenditures shall be included in current profit or loss at the time of occurrence.The Company adopts the cost mode to measure the existing investment property. Investment property measured at cost - buildingsheld for leasing shall adopt the same depreciation policy for fixed assets of the company, land use rights held for leasing shall adoptthe same amortization policy for the intangible assets.
17. Fixed assets
(1) Conditions for recognition of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or foradministrative purposes; and have a service life of more than one accounting year. Fixed assets shall be recognized when thefollowing conditions are met at the same time:
1) The economic benefits related to the fixed asset are likely to flow into the company;
2) The cost of the fixed asset can be reliably measured.
Fixed assets are initially measured at cost (with the influence of expected disposal costs taken into consideration).Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the relevant economic benefitsare likely to flow in and the cost can be measured reliably. The book value of the replaced part is derecognized. Other subsequentexpenditures shall be included in current profit or loss at the time of occurrence.
(2) Methods for depreciation
Category | Depreciation method | Useful lives of depreciation | Residual Ratio | Annual depreciation rate |
Housing and building | Straight-line method | 5-35 | 2.8-5 | 19.44-2.71 |
General Equipment | Straight-line method | 3-10 | 2.8-10 | 32.40-9 |
Special Equipment | Straight-line method | 5-10 | 2.8-5 | 19.44-9.5 |
Machinery and equipment | Straight-line method | 3-10 | 2.8-5 | 32.40-9.5 |
Transportation Equipment | Straight-line method | 5-10 | 2.8-10 | 19.44-9 |
Others | Straight-line method | 5-10 | 2.8-5 | 19.44-9.5 |
Fixed assets are depreciated by categories using the straight-line method, and the annual depreciation rates are determined bycategories based upon their estimated useful lives and their estimated residual values. For fixed assets with provision for
impairment, the amount of depreciation shall be determined in future periods according to the book value after deducting theprovision for impairment and based on the usable life. Where the parts of a fixed asset have different useful lives or cause economicbenefits for the enterprise in different ways, different depreciation rates or depreciation methods shall apply, and each part isdepreciated separately.
(3) Disposal of fixed assets
Fixed assets being disposed of or not expected to generate economic benefits through use or disposal shall be derecognized. Theamount of income from the disposal, transfer, scrapping or damage of fixed assets after deducting its book value and related taxesshall be included in the current profit and loss.
18. Construction in progress
Construction in progress is measured at the actual costs incurred. The actual cost includes construction costs, installation costs,borrowing costs that meet the capitalization conditions, and other necessary expenditures incurred before the construction inprogress reaches its intended use status. When the construction in progress reaches its intended use status, it shall be transferred tofixed assets according to budget, cost or actual contract cost of the construction project, and the depreciation of the fixed assetsshall be accrued according to fixed assets depreciation policy of the company. When the final account of completed project is issued,the estimated cost shall be adjusted according to the actual cost.
19. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or production of assetsqualified for capitalization, the costs will be capitalized and included in the costs of the related assets. Other borrowing costs shallbe recognized as expense in the period in which they are incurred and included in profit or loss for the current period.Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantialperiod of time for acquisition, construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of borrowingcosts, excluding the period in which capitalization of borrowing costs is temporarily suspended.Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
1) Asset expenditures have been incurred, which include the expenditures in the form of cash payment, transfer of non-cash assets,or assumption of interest-bearing debts for construction or production of assets eligible for capitalization;
2) Borrowing costs have been incurred;
3) The purchase and construction or production activities which are necessary to prepare the asset for its intended use or sale havestarted.Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset under acquisition and constructionor production ready for the intended use or sale.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of aqualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months; if theinterruption is a necessary step for making the qualifying asset under acquisition and construction or production ready for theintended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurred during such period shallbe recognized as profits and losses of the current period. When the acquisition and construction or production of the asset resumes,
the capitalization of borrowing costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
Specific borrowings for the acquisition, construction or production of assets qualified for capitalization, borrowing costs of thespecific borrowings actually incurred in the current period minus the interest income earned on the unused borrowing loans as adeposit in the bank or as investment income earned from temporary investment will be used to determine the amount ofborrowing costs for capitalization.General borrowings for the acquisition, construction or production of assets qualified for capitalization, the to-be-capitalizedamount of interests on the general borrowing shall be calculated and determined by multiplying the weighted average assetdisbursement of the part of the accumulative asset disbursements minus the specifically borrowed loans by the capitalization rateof the general borrowing used. The capitalization rate is calculated and determined based on the weighted average actual interestrate of general borrowing.During the period of capitalization, the exchange balance on the principals and interests of special foreign currency borrowings shallbe capitalized and shall be included in the cost of assets eligible for capitalization. The exchange balance on the principals andinterests of foreign currency borrowings other than the special foreign currency borrowings shall be included in current profit orloss.
20. Intangible assets
(1) Valuation method, service life, impairment test
1) Method for valuation of intangible assets
1) It shall be initially measured at cost when the company obtains intangible assets;
The cost of purchased intangible assets, covering the purchase price, relevant taxes and fees, and other expenses directlyattributable to the intended use of the assets.
2) Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.Intangible assets with a limited service life are amortized within the term of economic benefits for the enterprise. If it is impossibleto foresee the term, it shall be regarded as an intangible asset with uncertain service life and shall not be amortized.
2) Estimated service life of intangible assets with limited service life
Item | Estimated useful lives | Basis |
Land use rights | 30-50 years | The number of years is indicated on the land certificate |
Computer Software | 3-10 years | Benefit period |
Vehicle license plate | 10 years | Estimated service life |
At the end of each year, the service life and amortization method of the intangible assets with a limited service life are reviewed.
3) Judgment basis for intangible assets with uncertain service life and procedures for reviewing their service lifeAccording to relevant regulations of Australia, there is no stipulated term of use for the land use right after purchase, and it can beused permanently. Therefore, the company recognizes the land without a specified use term as an intangible asset with uncertainservice life, for which no amortization is allowed.At the end of each year, the service life of intangible assets with uncertain service life will be reviewed.
(2) Accounting policy for internal R&D expenditure
The expenses for internal research and development projects of the Company are divided into expenses in the research phase andexpenses in the development phase.Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or technologicalknowledge.Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercial production or usein order to produce new or essentially-improved materials, devices, products, etc.Specific condition for capitalizing expenditure during the development phase:
Expenses in the research phase are recorded into the profits and losses for the current period when they occur. Expenditure duringthe development phase that simultaneously satisfies the following conditions shall be recognized as intangible assets. Otherwiseshall be included in current profit or loss:
1) It is technically feasible to complete the intangible asset so that it can be used or sold;
2) There is intention to complete the intangible asset for use or sale;
3) The means by which intangible asset generates economic benefits, including the ability to prove that there is a market for theproducts produced with the intangible asset or the existence of a market for the intangible asset itself. Where the intangible asset isto be used internally, its usefulness can be proved;
4) The company has sufficient technical, financial and other resources to support the development of such intangible assets, andhas the ability to use or sell such intangible assets;
5) The expenditure attributed to the development stage of the intangible asset can be reliably measured.The R&D expenditures incurred shall be included in current profit or loss if it is impossible to distinguish expenditure during theresearch phase and expenditure during the development phase.
21. Long-term asset impairment
Long-term assets, such as long-term equity investment, investment properties, fixed assets, construction in progress andright-of-use assets that measured at cost, and intangible assets with limited service life, are tested for impairment if there is anyindication that an asset may be impaired on the balance sheet date. If the result of the impairment test indicates that therecoverable amount of the asset is less than its book value, a provision for impairment and an impairment loss are recognized forthe amount by which the asset's book value exceeds its recoverable amount. The recoverable amount is the higher of an asset's fairvalue less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for assetimpairment is determined and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of anindividual asset, the recoverable amount of a group of assets to which the asset belongs to is determined. A group of assets is thesmallest group of assets that is able to generate cash inflows independently.Goodwill formed due to business combination, intangible assets with uncertain service life and intangible assets that have not yetreached serviceable conditions, shall be tested for impairment at least at the end of each year, regardless of whether there is anyindication of impairment.When the Company carry out impairment test to goodwill, the Company shall, as of the purchasing day, allocate on a reasonablebasis the book value of the goodwill formed by merger of enterprises to the relevant asset groups, or if there is a difficulty inallocation, to allocate it to the sets of asset groups. The relevant asset group or combination of asset groups is the asset group orcombination of asset groups that can benefit from the synergies of business combination.For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill, if any evidenceshows that the impairment of asset groups or sets of asset groups related to goodwill is possible, an impairment test will be madefirst on the asset groups or sets of asset groups not containing goodwill, thus calculating the recoverable amount and comparing it
with the relevant book value so as to recognize the corresponding impairment loss. Asset group or combination of group assetscontaining goodwill are tested for impairment and the book value and recoverable amount shall be compared. If the recoverableamount is less than the book value, the amount of impairment loss shall be deducted and apportioned to the book value ofgoodwill in asset group or combination of asset groups, before deducting to the book value of all other assets proportionally basedon the proportion of the book value of all assets other than goodwill in the asset group or combination of asset groups.Once the above asset impairment loss is recognized, it will not be reversed in the subsequent accounting periods.
22. Long-term prepaid expenses
Long-term prepaid expenses are expenses which have occurred but will benefit over 1 year and shall be amortized over the currentperiod and subsequent periods. The long-term prepaid expenses of the company include scenic animals and plants, scenic roadsigns, creation of costumes and props, expenditures for improvement of leased fixed assets, house decoration fees and long-termrental fees.
(1) Amortization method
Long-term prepaid expenses are amortized evenly over the estimated benefit period
(3) Amortization period
Item | Estimated useful lives | Basis |
Scenic animals and plants | 5 years | Benefit period |
Scenic road signs | 5 years | Benefit period |
Creation Costume Prop | 5 years | Benefit period |
Expenditures for improvement of leased fixed assets | 3-20 years | Benefit period |
House decoration fee | 5-10 years | Benefit period |
23. Contract liabilities
The Company shall show the contract assets or contract liabilities in the balance sheet in accordance with the relationship betweenthe performance of the contract obligations and the Customer payment. The Company’s obligation to transfer goods or provideservices to customers for which consideration has been received or receivable are presented as contractual liabilities. Contractassets and contract liabilities under the same contract shall be shown on a net basis.
24. Employee remuneration
(1) Accountant arrangement method of short-term remuneration
During the accounting period when the staff provides service, the Company will recognize the short-term remuneration actuallyincurred as liabilities, and the liabilities would be charged into current profits and loss or costs of assets.The Company will pay social insurance and housing funds, and will make provision of trade union funds and staff education costs inaccordance with the requirements. During the accounting period when the staff provides service, the Company will determine therelevant amount of employee benefits in accordance with the required provision basis and provision ratios.The expenses on employee benefit incurred by the Company shall be included in the current profit or loss or related asset costbased on the actual amount when actually incurred, and the non-monetary benefit shall be measured at its fair value.
(2) Accountant arrangement method of retirement benefit plan
1) Defined contribution plan (DCP)
The Company will pay basic pension insurance and unemployment insurance in accordance with the relevant provisions of the local
government for the staff. During the accounting period when the staff provides service, the Company will calculate the amountpayable in accordance with the local stipulated basis and proportions which will be recognized as liabilities, and the liabilities wouldbe charged into current profits and loss or costs of assets. In addition, the Company joins in corporation annuityplan/supplementary pension insurance fund approved by related state departments. The Company conducts payment to annuityplan/ local social insurance institution according to certain proportion of employees’ wages and corresponding expenditures areincluded in the current profit or loss or relevant asset costs.
2) Defined benefit plan
The welfare responsibilities generated from defined benefit scheme based on the formula determined by projected unit creditmethod would be vested to the service period of the staff and charged into current profits and loss or costs of assets.The deficit or surplus resulting from the present value of the defined benefit plan obligations minus the fair value of the definedbenefit plan assets is recognized as the net liability or net asset of the defined benefit plan. If there is a surplus in the definedbenefit plan, the company shall use the lower of the defined benefit plan surplus and the asset ceiling to measure the net assets ofthe defined benefit plan.All defined benefit plan obligations, including obligations expected to be paid within twelve months after the end of the annualreporting period in which employees provide services, are based on market yield of treasury bond or high-quality corporate bond inan active market that matches the date of the balance sheet, the period of defined benefit plan obligation and currency applied.The service cost, net interest on net liabilities and net assets of the defined benefit plan are recorded in the current profit and lossor related asset cost. The changes resulting from the re-measurement of net liabilities or net assets of the defined benefit plan arerecorded in other comprehensive income and shall not be rolled back to profit and loss in subsequent accounting periods. When theoriginal defined benefit plan is terminated, all the part originally recorded in other comprehensive income should be carriedforward to undistributed profit.In the settlement of the defined benefit plan, the settlement gain or loss shall be recognized according to the difference betweenthe present value of the defined benefit plan obligation and the settlement price determined on the settlement date.
(3) Accountant arrangement method of termination benefits
Where the Company pays termination benefit to employees, the liabilities of employee remuneration generated by terminationbenefit shall be recognized at the earlier of the following date and included in the current profit or loss: when the company cannotunilaterally withdraw termination benefit provided by labor relationship termination plan or layoff proposal; when the Companyrecognizes costs or expenses related to a restructuring of the payment of termination benefits.
25. Estimated liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities provided that they satisfy the followingconditions:
1) The obligation is the current obligation of the company;
2) The fulfillment of this obligation is likely to result in the outflow of economic benefits from the Company;
3) The amount of the obligation can be reliably measured.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related presentobligation.Factors pertaining to a contingency such as risk, uncertainties, and time value of money shall be taken into account as a whole inreaching the best estimate. Where the effect of the time value of money is material, the best estimate shall be determined bydiscounting the related future cash outflow.Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a third party, thereimbursement is separately recognized as an asset when it is virtually certain that the reimbursement will be received. The amountrecognized for the reimbursement is limited to the book value of the estimated liability.
On the balance sheet date, the Company shall review the book value of the estimated liabilities, and shall adjust the book value onthe basis of the current best estimate if there is conclusive evidence showing the book value cannot reflect the current bestestimate.
26. Share-based payment
The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on the basis of equityinstruments granting or bearing for the acquisition of service from its employees or other parties. The company's share basedpayment is divided into the share payment settled in equity and the share based payment settled in cash.
(1) The share payment settled in equity and equity instruments
As to an equity-settled share-based payment in return for services of employees, calculation will be based on the fair value of theequity instrument granted to the employees. Equity instruments vested immediately after the date of grant will be included in therelevant cost or expense based on its fair value on the date of grant, and the capital reserve will be increased accordingly. For equityinstruments to be vested after completing the service during the waiting period after the date of grant or meeting regulatedperformance conditions, the Company shall include the services obtained in the current period in relevant costs or expenses andincrease capital reserves accordingly on each balance sheet date during the waiting period on the basis of the best estimate of thenumber of viable equity instruments to be vested and the fair value on the grant date.If the equity instrument is cancelled during the waiting period after the date of grant, the Company will treat the cancellation of theequity instrument as accelerated vest, include the amount to be recognized in the remaining waiting period in the current profit orloss, and recognize the capital reserves simultaneously. However, if new equity instruments are vested and they are verified at thevesting date of new equity instrument as alternatives vested to canceled equity instruments, the treatment on the new equityinstrument is in conformity with the modified treatment on disposal of equity instrument.
27. Revenue
Accounting policies for revenue recognition and measurement
(1) Accounting policies for revenue recognition and measurement
The Company has fulfilled its contractual obligation to recognize income when the Customer obtains control over the relevant goodsor services. Obtaining control over related goods or services means to be able to dominate the use of the goods or services andobtain virtually all economic benefits from it.Where the Contract contains the performance of two or more obligations, the Company shall, on the commencement date of theContract, apportion the transaction price to each individual performance obligation on the basis of the relative proportion of theindividual selling price of the goods or service committed by each individual performance obligation. The Company shall measure itsincome on the basis of the transaction price apportioned to each individual performance obligation.The transaction price refers to the amount of consideration the Company is expected to be entitled to receive for the transfer ofgoods or services to the Customer, excluding payments received on behalf of third parties and the amounts expected to be refundedto the Customer. The Company determines the transaction price in accordance with Contract terms and by taking into considerationits past practices. In determining the transaction price, it takes into consideration the impact of variable consideration, materialfinancing elements in the Contract, non-cash consideration, consideration payable to customers and other factors. The Companydetermines the transaction price that includes the variable consideration at an amount not exceeding the amount of accumulatedrecognized income which is not likely to be materially reversed when the relevant uncertainty is eliminated. Where there arematerial financing components in the Contract, the Company shall determine the transaction price on the basis of the amountpayable based on the assumption that the Customer pays in cash upon obtaining control over the goods or services, and shallamortize the difference between the transaction price and the Contract consideration by effective interest method during the
Contract period. It shall be deemed as fulfilling performance obligation within a certain period of time if one of the followingconditions is satisfied. Otherwise, it shall be deemed as fulfilling performance obligation at a certain point in time:
· The Customer obtains and consumes the economic benefits arising from the Company’s performance of obligations at the sametime of that the Company perform its obligations.· The Customer can control the goods under construction during the process that the Company perform its obligations.· The product produced by the Company during the performance of its obligations is irreplaceable in use, and the Company shall beentitled to receive payment for the accumulated part of the performance completed so far during the whole Contract period.For obligations performed within a certain period of time, the Company shall recognize income on the basis of the performanceprogress during that period, except when the performance progress cannot be reasonably determined. The Company will adoptoutput method or input method to determine the performance progress by taking the nature of the goods or services intoconsideration. Where the performance progress cannot be reasonably determined and the costs incurred are expected to becompensated, the Company shall recognize income on the basis of the costs incurred until the performance progress can bereasonably determined.For obligations performed at a certain point of time, the Company recognizes income at the point when the Customer obtaincontrol over relevant goods or services. The Company takes the following indications into consideration when determining whetherthe Customer has obtained control over relevant goods or services:
· The Company is entitled to collect payment in respect of the goods or services immediately, i.e. the Customer is obliged to makepayment in respect of the goods or services immediately.· The Company has transferred legal ownership of the goods to the Customer, i.e. the Customer has legal ownership of the goods.· The Company has physically transferred the goods to the Customer, i.e. the Customer has physically possessed the goods.· The Company has transferred the principal risks and rewards in the ownership of the goods to the Customer, i.e. the Customer hasobtained the principal risks and rewards in the ownership of the goods.· The Customer has received the goods or services, etc.
(2) The specific accounting policies related to the company's main activities that generate revenue are described as follows:
1) The principle for confirmation of ticket sales revenue
The tourists, after buying the ticket and checking in through the gate, shall have the right to visit the scenic spot and watch the liveperformance. When the ticket amount has been collected or the right to receive payment has been obtained, the revenue should begenerated.
2) The principle for confirmation of e-commerce sales revenue
The economic benefits from the tickets, based on the ratio of profits sharing agreed by and between the company and each ofscenic spots, hotels or travel agencies, are expected to have flowed into the parties concerned upon the orders are generated andthe tourists have entered the park or checked in. When the ticket amount has been collected or the right to receive payment hasbeen obtained, the revenue should be generated.
3) Principle for confirmation of the revenue from design planning fee
Design and planning are to provide a package of services for other scenic spots and performance projects, including scenic spotdesign and planning, theater design and planning, performance directing, plan for opening, marketing, follow-up qualityimprovement and other designs and services agreed in the agreement. The revenue shall be recognized, when the companycompletes the phased design, planning and upgrading according to the requirements of the project progress, and submits thephased results to the client and obtains its confirmation indicating that the company has completed the service of the stage.Follow-up business management: After the relevant services have been provided, the service revenue shall be collected accordingto the results as agreed in the contract. The income shall be recognized in the current period of service provided.
28. Government grants
(1) Type
Government grants refer to the monetary or non-monetary assets obtained free of charge by the company from the government.They are divided into government grants related to assets and government grants related to revenue.Government grants related to assets refer to government grants acquired by the Company for the purpose of purchasing orconstructing or otherwise forming long-term assets. Government grants related to revenue refer to the government grants otherthan those related to assets.
(2) Confirmation of time point and accounting treatment
The specific standards for government grants related to assets are: The construction of the assets granted to enterprises.Time for confirming the government grants related to assets: the relevant assets reach the intended use stateAccounting treatment of the government grants related to assets: They shall be recognized as deferred income when obtained. Afterthe relevant assets reach the intended use state, they shall be recognized as current profits and losses in installments according tothe method of average amortization of asset service life. For those assets related to daily activities of the company, they shall beincluded in other income. For those assets that are not related, they shall be included in non-operating income;The specific standards for government grants related to revenue are: The expenses or losses of the compensated enterpriseWhere the government documents fail to specify the recipient of grants, the company shall classify the government grants as assetsrelated or income related in accordance with the basis below: The government grants as a whole shall be classified as governmentgrants related to revenue.The time of the confirmation of government grants related to revenue: Related expenses or losses occur.Accounting treatment of government grants related to revenue: Those used to compensate relevant costs or losses of the companyin subsequent periods, shall be recognized as deferred income when obtained. They shall be included in the current profit and losswhen related costs or losses are confirmed. For those assets related to daily activities of the company, they shall be included inother income. For those assets that are not related, they shall be included in non-operating income; For those assets used tocompensate related costs or losses incurred of the company, they shall be directly included in the current profit and loss whenobtained. For those assets related to daily activities of the company, they shall be included in other income. For those assets notrelated, they shall be included in non-operating income.
29. Deferred income tax assets/liabilities
Income tax includes current income tax and deferred income tax. The Company will include current income tax and deferred incometax in the current profit or loss, except for income tax arising from business combination and transaction or event directly includedin the owners’ equity (including other comprehensive income).Deferred income tax assets and deferred income tax liabilities shall be calculated and recognized on the basis of the difference(temporary difference) between the tax basis of the assets and liabilities and their book value.Deferred income tax assets are recognized to the extent that it is probable that future taxable profits will be available against whichdeductible temporary differences can be utilized. For deductible losses and tax credits that can be reversed in the future period,deferred tax assets shall be recognized to the extent that it is probable that taxable profit will be available in the future to offset thedeductible losses and tax credits.Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporary difference.Special circumstances in which deferred income tax assets or deferred income tax liabilities are not recognized include:
· Initial recognition of goodwill;· Transaction or event that is not a business combination and would not affect accounting profit and taxable income (or deductibleloss) at the time of occurrence.
For taxable temporary differences related to investments in subsidiaries, associates and joint ventures, deferred income tax liabilityis recognized, unless the Company can control the timing of reversal of such temporary differences and such temporary differencesare not likely to be reversed in the foreseeable future. For deductible temporary differences related to the investments ofsubsidiaries, associates and joint ventures, deferred tax asset is recognized when the temporary differences are likely to be reversedin the foreseeable future and the taxable income amount used to offset the deductible temporary differences is likely to beobtained in the future.On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be, as stipulated by tax law,measured by the applicable tax rate of the period of expected recovery of the relevant assets or settlement of the relevantliabilities.On the balance sheet date, the Company reviews the book value of the deferred income tax assets. The book value of the deferredincome tax asset will be written down if sufficient taxable income is not likely to be obtained to offset the benefit of the deferredincome tax asset in the future period. The write-down amount will be reversed when sufficient taxable income is likely to beobtained.After granted the legal rights of net settlement and with the intention to use net settlement or obtain assets and repay debt at thesame time, the net amount after offsetting its current income tax assets and current income tax liabilities shall be recorded.On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are presented in net amount afterset-off when both of the following conditions are satisfied:
· The taxpayer has the legal right to settle the current income tax assets and current income tax liabilities on a net basis;· Deferred income tax assets and deferred tax liabilities are related to the income tax to be paid by the same entity liable to pay taxto the same tax collection and management authority or related to different entities liable to pay tax. The relevant entity liable topay tax is intended to apply net settlement of current income tax assets and liabilities or, at the same time, obtain assets and repaydebt in every future period that deferred income tax assets and liabilities with importance would be reversed.
30. Lease
Accounting policies as of Friday, January 1, 2021Lease refers to a contract under which a lessor assigns the right to use an asset to a lessee for consideration, for a defined period. Atthe commencement date of the contract, the Company assesses whether the contract is a lease or contains a lease. A contract is alease or contains a lease if one party to the contract conveys the right to control the use of one or more identified assets for aspecified period of time in exchange for consideration.If a contract contains multiple separate leases, the Company splits the contract and accounts for each separate lease independently.If a contract contains both lease and non-lease components, the lessor and the lessee should split the lease and non-leasecomponents.If any of rent reduction, deferred payment and other rent concessions directly triggered by the COVID-19 under the existing leasessatisfies all following conditions, the Company should apply a simplified approach to all leases by neither assessing whether there isa license change nor assessing the lease classification:
? The lease consideration after concession is reduced or basically unchanged compared with that before concession, wherebythe undiscounted lease consideration may apply or the lease consideration may be discounted at the rate before concession;? The concession only applies to the payable lease payment before June 30, 2022, whereby any increase in the payable leasepayment after June 30, 2022 will not affect the satisfaction of this condition, and any decrease in the payable lease payment afterJune 30, 2022 will be excluded by this condition; and? No major change occurs in other terms and conditions of the leases after considering all qualitative and quantitative factors.
(1) The Company as lessee
1) Right-of-use assets
Except for short-term leases and leases of low value assets, the Company recognizes right-of-use assets at the commencement dateof the lease. The right-of-use assets shall be initially measured at cost. The cost includes:
? Initially measured amounts of lease liabilities;? Any lease payments made at or before the lease commencement date, less the relative amount of any lease incentivesenjoyed if there are lease incentives;? Any initial direct costs incurred by the Company;? An estimate of costs to be incurred by the Company in dismantling and removing the underlying assets, restoring the site onwhich it is located or restoring the underlying asset to the condition required by the terms of the lease, excluding the costsattributable to the production of inventory.The Company will subsequently accrue the depreciation of right-of-use assets under the straight-line method. Where it isreasonably determined that the ownership of the leased assets will be acquired at the end of the lease term, the depreciation iscalculated within the remaining useful life of the leased assets; otherwise, where it is impossible to reasonably determine theownership of the leased asset at the expiration of the lease term, the depreciation is calculated within the shorter period of thelease term and the remaining useful life of the leased asset.The Company determines whether right-of-use assets are impaired and performs accounting treatment for recognized impairmentloss according to “V (21) Impairment of Long-term Assets” in the notes.
2) Leasing liabilities
Except for short-term leases and leases of low value assets, the Company recognizes lease liabilities at the commencement date ofthe lease. The Company initially measures the lease liability at the present value of lease payments that are unpaid. Lease paymentincludes:
? The fixed amount (including substantial fixed amount) less the relative amount of any lease incentives enjoyed if there arelease incentives;? The index- or ratio-based variable lease payment amount;? The estimated amount to be paid according to the residual value of guarantee provided by the Company;? The exercise price of the call option, provided that the Company reasonably determines to exercise the option;? The payment made by the lessee for exercising the option to terminate the lease, provided that it is reflected in the leaseperiod that the Company will exercise the option to terminate the lease.The Company uses the interest rate implicit in the lease as discount rate, and adopts the incremental borrowing rate of theCompany if the interest rate implicit in the lease is not readily determinable.The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixed periodic interest rate andincludes it in current profits and losses or related asset costs.Variable lease payments not included in the measurement of lease liabilities shall be included in the current profits and losses orrelated asset costs when they are actually incurred.The Company should re-measure the lease liability and adjust the right-of-use asset, if any of the following events occur after thelease commencement date. If the lease liability is required to be further written down after the carrying value of the right-of-useasset is written down to zero, the difference should be recorded in the current profit or loss.? In the case of any change to the Company’s result of evaluation on the option of purchase, renewal, or termination, or in thecase that the actual exercise of the aforementioned options is inconsistent with the original evaluation result, the lease liability shallbe re-measured by the Company according to the changed lease payment and the present value calculated based on the modifieddiscount rate;? In the case of any change to substantial fixed payments, estimated amount to be paid according to the residual value ofguarantee or the index or rate for calculating the lease payment, the Company will re-measure the lease liability according to thechanged lease payment and the present value calculated as per the original discounting rate. However, if a change lease paymentamount derives from a change in a floating interest rate, the present value should be calculated as per the modified discount rate.
3) Short-term leases and leases for low-value assets
The Company chooses not to recognize right-of-use assets and lease liabilities of short-term leases and leases for low-value assets,and includes the relevant lease payments in the relevant asset costs or the current loss and profit under the straight-line method inall periods of the lease term. The short-term lease refers to the lease that does not contain the call option and has a lease period ofno more than 12 months from the lease commencement date. The lease for low-value assets refers to the lease under which abrand-new individual lease asset has a low value. If the Company sublets or is expected to sublet a lease asset, the original lease isnot construed as a lease for low-value assets.
4) Change of lease
When a lease changes and the following conditions are satisfied, the Company will treat such change as an independent lease:
? The change expands the lease scope by adding the right to use one or more additional leased assets;? The increased consideration is in line with the price of the expanded lease scope part as adjusted for the contract change.If a lease change is not treated as an independent lease, at the effective date of the lease change, the Company will re-apportionthe changed contract price, re-determine the lease term, and re-measure the lease liability according to the changed lease paymentand the present value calculated as per the original discounting rate.If the lease change narrows the lease scope or shortens the lease term, the Company will reduce the carrying value of theright-of-use assets accordingly, and include the gain or loss from the terminated or partially terminated lease in the profit or loss ofthe current period. If any other lease change triggers the re-measurement of the lease liability, the Company will adjust the carryingvalue of the right-of-use assets accordingly.
5) Rent concessions arising from the COVID-19
Where a simplified approach is used for rent concessions arising from the COVID-19, the Company will not assess whether there isany lease change, but continue to calculate the interest expenses on lease liabilities at the discount rate consistent with that beforeconcessions and record them in the current profit or loss and accrue depreciation of the right-of-use assets under the same methodas before concessions. Upon occurrence of a rent concession, the Company will take the reduced rent as the variable lease payment.When the Company reaches a concession agreement or otherwise is discharged from the original rent payment obligation, therelevant asset costs or expenses should be written down by the undiscounted amount or the amount discounted at the discountedrate before concessions. If the payment of rent is deferred, the Company should write down the lease liabilities previouslyrecognized at the time of actual payment.For short-term leases and leases for low-value assets, the Company shall continue to calculate the original contract rents under thesame method adopted before concessions and record them in the relevant asset costs or expenses. In case of a rent concession, theCompany should treat the reduced amount as variable lease payment, and the asset cost or expense should be written down duringthe concession period. If the payment of rent is deferred, the Company should recognize the rent payable during the originalpayment period as the account payable, and the account payable recognized previously should be written down at the time ofactual payment.
(2) The Company as lessor
The Company should classify a lease into finance lease or operating lease on the lease commencement date. A finance lease is alease that transfers substantially all the risks and rewards incidental to ownership of a lease asset, regardless of whether theownership is ultimately transferred or not. Operating leases refer to leases other than finance leases. Where the Company is asub-lessor, the Company should, based on the right-of-use asset arising from the original lease, classify the sub-lease.
1) Accounting treatment for operating lease
During each period of the lease term, the Company should recognize the lease receipts arising from operating lease in rental incomeby the straight-line method. The initial direct expenses related to an operating lease incurred by the Company are capitalized,apportioned during the lease term on the same recognition basis as rental income, and included into the current profit and loss.Variable lease payments not included in the measurement of lease collections shall be included in the current profits and losses atthe time of actual occurrence. If an operating lease changes, the Company will, from the effective date of the change, considers the
change as a new lease, and the lease payment received in advance or receivable related to the lease before the change as new leasepayments.
2) Accounting treatment of financial lease
At the commencement date of the term of the finance lease, the Company recognizes finance lease receivables and derecognizesfinance lease assets. When the Company makes initial measurement of finance lease receivables, the net investment in the lease ismeasured as the carrying value of the finance lease receivables. The net lease investment is the sum of the unsecured residual valueand the present value of the lease payment receivable at the lease commencement date discounted by the interest rate implicit inthe lease.The Company measures and recognizes the interest income of each period within the lease term according to the fixed periodicinterest rate. The de-recognition and impairment of finance lease receivables should be treated according to “V (10) FinancialInstruments” in the notes.Variable lease payments not included in the measurement of lease net investment shall be included in the current profits and lossesat the time of actual occurrence.When a financial lease changes and the following conditions are satisfied, the Company will treat such change as an independentlease:
? The lease change expands the lease scope by adding the right to use one or more additional leased assets;? The increased consideration is in line with the price of the expanded lease scope part as adjusted for the contract change.If a finance lease change is not treated as an independent lease, the Company will treat the changed lease as follows:
? Assuming that the change takes effective at the lease commencement date, and the lease is classified into operating leases,the Company will, from the effective date of the lease change, consider the change as a new lease and the net lease investmentprior to the effective date of the lease commencement as the carrying value of the leased asset;? Assuming that the change takes effective at the lease commencement date, and the lease is classified into finance leases, theCompany will apply the provisions of “Note V (10) Financial Instruments” concerning the modification or re-negotiation of contract.
3) Rent concessions arising from the COVID-19
For the operating leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shallcontinue to include the original contract rents in the lease income under the same method adopted before concessions. In case of arent concession, the Company should treat the reduced amount as variable lease payment, and the lease income should be writtendown during the concession period. If the collection of rent is deferred, the Company should recognize the rent receivable duringthe original collection period as the account receivable, and the account receivable recognized previously should be written down atthe time of actual collection.For the finance leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shallcontinue to use the same discount rate applied before concessions to calculate the interests and recognize them in the lease income.In case of a rent concession, the Company should treat the reduced amount as a variable lease payment. When the Companyreaches a concession agreement or otherwise waives the original rent collection right, the originally recognized lease income shouldbe written down by the undiscounted amount or the amount discounted at the discounted rate before concessions. Any amountthat cannot be written down should be included in the investment income, and the finance lease receivable should be adjustedaccordingly. If the collection of rent is deferred, the Company should write down the previously recognized the finance leasereceivable at the time of actual collection.
(3) Leaseback transaction
According to the principle stated in “V (25) Revenue” in the notes, the Company assesses and determines whether the asset transferin the leaseback transaction is a sale transaction.
1) As lessee
If the asset transfer in the leaseback transaction is a sale transaction, the Company as the lessee should measure the right-of-useasset formed by leaseback at the part of the carrying amount of the original asset related to the right of use acquired by leaseback,
and should only recognize the gain or loss for the right transferred to the lessor. If the asset transfer in the leaseback transaction isnot a sale transaction, the Company as the lessee should still recognize the transferred asset and recognize a financial liability equalto the transfer income. See “V (10) Financial Instruments” in the notes for details about accounting treatment of financial liabilities.
2) As lessor
If the asset transfer in the leaseback transaction is a sale transaction, the Company as the lessor should measure the purchase ofassets, and should measure the lease of assets according to the policy stated in the aforementioned “2. The Company as Lessor”. Ifthe asset transfer in the leaseback transaction is not a sale transaction, the Company as the lessor should not recognize thetransferred asset but should recognize a financial asset equal to the transfer income. See “V (10) Financial Instruments” in the notesfor details about accounting treatment of financial assets.
Accounting policy prior to Friday, January 1, 2021Leases are classified into finance leases and operating leases. A finance lease is a lease that transfers substantially all the risks andrewards incidental to ownership of an asset. Operating leases refers to leases other than finance leases.If any of rent reduction, deferred payment and other rent concessions directly triggered by the COVID-19 under the existing leasessatisfies all following conditions, the Company should apply a simplified approach to all leases by neither assessing whether there isa license change nor assessing the lease classification:
? The lease consideration after concession is reduced or basically unchanged compared with that before concession, wherebythe undiscounted lease consideration may apply or the lease consideration may be discounted at the rate before concession;? The concession only applies to the payable lease payment before Wednesday, June 30, 2021, whereby any increase in thepayable lease payment after Wednesday, June 30, 2021 will not affect the satisfaction of this condition, and any decrease in thepayable lease payment after Wednesday, June 30, 2021 will be excluded by this condition; and? No major change occurs in other terms and conditions of the leases after considering all qualitative and quantitative factors.
(1) Accounting treatment of operating leases
1) The lease fee paid by the company for operating lease of assets shall be included in current expenses by amortizing on astraight-line basis during the entire lease period without deducting the rent-free period. Initial direct costs that are attributable toan operating lease incurred by the Company are charged to current profit and loss.When the lesser bears the lease related expenses which should be undertaken by the Company, the Company shall deduct this partof expense from the rent and amortize the net amount over the lease term.For the operating leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shallcontinue to calculate the original contract rents under the same method adopted before concessions and record them in therelevant asset costs or expenses. In the case of a rent concession, the Company should treat the reduced amount as contingent rent,and the rent should be included in the profits and losses during the concession period. If the payment of rent is deferred, theCompany should recognize the rent payable during the original payment period as the account payable, and the account payablerecognized previously should be written down at the time of actual payment.
2) The lease fee charged by the company for leasing its assets shall be recognized as leasing income by amortizing on a straight-linebasis during the entire lease period without deducting the lease-free period. The initial direct fee related to the leasing transactionspaid by the Company shall be charged to current expenses; if the mount is significant, it shall be capitalized and charged to currentincome evenly on the same basis as the leasing income is recognized over the lease term.When the Company bears the lease related expenses which should be undertaken by the lessee, the Company shall deduct this partof expense from the rent income, and amortize the net amount over the lease term.For the operating leases to which the simplified approach to rent concessions relating to COVID-19 applies, the Company shallcontinue to include the original contract rents in the lease income under the same method adopted before concessions. In case of arent concession, the Company should treat the reduced amount as contingent rent, and the lease income should be written downduring the concession period. If the collection of rent is deferred, the Company should recognize the rent payable during the original
collection period as the account receivable, and the account receivable recognized previously should be written down at the time ofactual collection.
31. Segmental reporting
The company determines the operating segment based on the internal organizational structure, management requirements, andinternal reporting system. The segmental reporting is confirmed on operating segment basis, and segment information shall bedisclosed.Operating segment refers to the component within the Company that meets the following conditions at the same time: (1) Thecomponent can generate income and expenses in daily activities; (2) The management of the Company can regularly evaluate theoperating results of such component so as to determine the allocation of resources to it and evaluate its performance; (3) TheCompany can obtain the accounting information of the component, such as the financial status, operating results and cash flow etc.If two or more operating segments have similar economic features and meet certain conditions, they can be combined into oneoperating segment.
32. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ Applicable □ Not applicable
Content and Reasons for Change in Accounting Policies | Approval process | Notes |
The adjustment by the Company as a lessee for operating leases existing before the initial implementation date | The 10th meeting of the 7th Board of Directors |
(1) Implementation of "Accounting Standards for Business Enterprises Interpretation No. 21 – Lease (amended in 2018)”The Ministry of Finance issued the amended Accounting Standard for Business Enterprise No. 21 – Lease in 2018 (“New LeaseStandards”) This Company has implemented the New Lease Standards since January 1, 2021. According to the amended standards,for existing contracts prior to the initial implementation date, the Company chooses not to re-evaluate whether it is a lease or itcontains a lease on the initial implementation date.The Company acts as the lesseeAccording to the cumulative impact of initial implementation of the new lease standards, the Company adjusts retained earnings atthe beginning of the initial implementation year of the New Lease Standards and the amount of other related items in the financialstatements, and does not adjust the information of comparable period.For the operating leases existing before the initial implementation date, at the initial implementation date, the Company measuresthe lease liability according to the present value discounted by the incremental loan interest rate as at the first implementation datebased on the remaining lease payment amount, and should choose one of the following two methods to measure the right-of-useassets for each lease:
? If the carrying value calculated under the New Lease Standard is used since the lease commencement date, the Companyshould use the incremental loan interest rate of the Company as at the initial implementation date as the discount rate.? The amount should be equal to the amount of lease liabilities, and necessary adjustment should be made based on theprepaid rent.For the operating leases existing before the initial implementation date, in addition to the above methods, the Company should
choose one or more of the following simplified methods for each lease:
1) Treat the lease completed within 12 months after the initial implementation date as the short-term lease;
2) When measuring lease liabilities, use the same discount rate for the leases with similar characteristics;
3) Exclude the initial direct expense from the measurement of right-of-use assets;
4) Where a renewal or termination option exists, determine the lease period according to the actual exercise and otherdevelopments before the initial implementation date;
5) As a replacement of impairment test of right-of-use assets, according to “III (XXIV) Estimated Liabilities” in the notes, evaluatewhether the contract including a lease is a loss contract before the initial implementation date, and adjust the right-of-use assetsaccording to the loss reserve amount recorded in the balance sheet before the initial implementation date; and
6) For lease changes occurring before the initial implementation date, no retroactive adjustment should be made, and the NewLease Standard should apply according to the final arrangement of such lease changes.For the finance leases existing before the initial implementation date, at the first implementation date, the Company shouldmeasure the right-of-use assets and lease liabilities respectively according to the original carrying value of the finance lease assetsand the finance lease payable.The Company acts as the lessorFor the subleases which are classified into operating leases at the effective date and are surviving after the effective date, theCompany re-values them, based on the remaining lease term and the terms and conditions of the original leases and the subleasesat the effective date, as well as re-classifies them according to the provisions of the New Lease Standards. If a sublease isre-classified as a finance lease, the Company should treat it as a new finance lease.Except for subleases, the Company should not be obligated to adjust its lease as a lessor according to the New Lease Standard. TheCompany starts using the New Lease Standard at the initial implementation date.The main impacts of the implementation of New Lease Standards on financial statements are as follows:
Content and Reasons for Change in Accounting Policies | Approval process | Statements Affected | Affected Amount of Balance on Friday, January 1, 2021 | |
Consolidated Subsidiaries | Parent company | |||
The adjustment by the Company as a lessee for operating leases existing before the initial implementation date | The 10th meeting of the 7th Board of Directors | Right-of-use Assets | 526,000,589.97 | |
Lease Liabilities | 390,537,511.61 | |||
Non-current Liabilities Due within 1 Year | 23,188,817.38 | |||
Prepayments | -3,627,471.97 | |||
Long-term unamortized expenses | -108,646,789.01 |
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustments to related items of financial statements at the beginning of the current year upon initialimplementation of the new lease standards in 2021
√ Applicable □ Not applicable
Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item | Thursday, December 31, 2020 | Friday, January 1, 2021 | Adjusted amount |
Current Assets: | |||
Cash and Bank Balances | 1,337,776,253.98 | 1,337,776,253.98 | |
Deposit Reservation for Balance | |||
Loans to Banks and Other Financial Institutions | |||
Trading Financial Assets | 335,217,557.68 | 335,217,557.68 | |
Derivative Financial Assets | |||
Notes receivable | |||
Accounts receivable | 5,887,012.36 | 5,887,012.36 | |
Receivables Financing | |||
Prepayments | 21,934,226.54 | 18,306,754.57 | -3,627,471.97 |
Premium Receivable | |||
Reinsurance Accounts Receivable | |||
Reinsurance Contract Reserves Receivable | |||
Other Receivables | 50,524,990.69 | 50,524,990.69 | |
Including: interest receivable | |||
Dividends Receivable | |||
Buying Back the Sale of Financial Assets | |||
Inventory | 13,424,146.50 | 13,424,146.50 | |
Contract Assets | |||
Holding for-sale assets | |||
Non-current Assets Due within 1 Year | |||
Other Current Assets | 148,641,404.47 | 148,641,404.47 | |
Subtotal of Current Assets | 1,913,405,592.22 | 1,909,778,120.25 | -3,627,471.97 |
Non-current Assets: | |||
Granting of loans and advances |
Investment in Creditor's Rights | |||
Investment in Other Creditor's Rights | |||
Long-term Receivables | |||
Long-term Equity Investment | 1,534,539,625.11 | 1,534,539,625.11 | |
Investment in Other Equity Instruments | 224,266,596.74 | 224,266,596.74 | |
Other Non-current Financial Assets | |||
Investment Property | |||
Fixed Assets | 2,508,754,929.16 | 2,508,754,929.16 | |
Projects under Construction | 771,871,563.73 | 771,871,563.73 | |
Productive Biological Assets | |||
Oil and gas assets | |||
Right-of-use Assets | 526,000,589.97 | 526,000,589.97 | |
Intangible Assets | 1,880,031,922.56 | 1,880,031,922.56 | |
Development Expenditure | |||
Goodwill | 11,655,794.87 | 11,655,794.87 | |
Long-term unamortized expenses | 323,741,176.89 | 215,094,387.88 | -108,646,789.01 |
Deferred Income Tax Assets | 18,485,803.52 | 18,485,803.52 | |
Other Non-current Assets | 8,589,826.26 | 8,589,826.26 | |
Subtotal of Non-current Assets | 7,281,937,238.84 | 7,699,291,039.80 | 417,353,800.96 |
Total Assets | 9,195,342,831.06 | 9,609,069,160.05 | 413,726,328.99 |
Current Liabilities: | |||
Short-term loan | |||
Borrowings from the Central Bank | |||
Borrowings from Banks |
and Other Financial Institutions | |||
Transactional financial liabilities | |||
Derivative Financial Liabilities | |||
Notes Payable | |||
Accounts Payable | 372,476,464.69 | 372,476,464.69 | |
Received Prepayments | 12,888,689.05 | 12,888,689.05 | |
Contract liabilities | 188,550,237.52 | 188,550,237.52 | |
Financial Assets Sold for Repurchase | |||
Deposit Taking and Interbank Deposit | |||
Receiving from Vicariously Traded Securities | |||
Receiving from Vicariously Sold Securities | |||
Payroll payable | 18,817,804.74 | 18,817,804.74 | |
Tax Payable | 19,869,808.49 | 19,869,808.49 | |
Other Payables | 65,149,971.79 | 65,149,971.79 | |
Including: interest payable | |||
Dividends Payable | |||
Service Charge and Commission Payable | |||
Reinsurance Accounts Payable | |||
Holding for-sale liabilities | |||
Non-current Liabilities Due within 1 Year | 12,426,708.33 | 35,615,525.71 | 23,188,817.38 |
Other Current Liabilities | 3,513,902.08 | 3,513,902.08 | |
Subtotal of Current Liabilities | 693,693,586.69 | 716,882,404.07 | 23,188,817.38 |
Non-current Liabilities: | |||
Insurance Contract |
Reserves | |||
Long-term loan | 282,000,000.00 | 282,000,000.00 | |
Bonds Payable | |||
Including: Preferred Stocks | |||
Perpetual Bonds | |||
Lease Liabilities | 390,537,511.61 | 390,537,511.61 | |
Long-term Payables | |||
Long-term payroll payable | |||
Expected Liabilities | |||
Deferred Income | 387,619,860.41 | 387,619,860.41 | |
Deferred Income Tax Liabilities | 96,769,220.18 | 96,769,220.18 | |
Other Non-current Liabilities | |||
Subtotal of Non-current Liabilities | 766,389,080.59 | 1,156,926,592.20 | 390,537,511.61 |
Total Liabilities | 1,460,082,667.28 | 1,873,808,996.27 | 413,726,328.99 |
Shareholders' Equity: | |||
Share Capital | 2,614,694,040.00 | 2,614,694,040.00 | |
Other Equity Instruments | |||
Including: Preferred Stocks | |||
Perpetual Bonds | |||
Capital Reserves | 1,211,364,214.86 | 1,211,364,214.86 | |
Less: Treasury Share | |||
Other Comprehensive Incomes | -63,325,115.75 | -63,325,115.75 | |
Special Reserves | |||
Surplus Reserves | 517,673,268.35 | 517,673,268.35 | |
General Risk Reserves | |||
Undistributed Profits | 3,131,881,024.60 | 3,131,881,024.60 | |
Total Shareholders' Equity | 7,412,287,432.06 | 7,412,287,432.06 |
Attributable to the Parent Company | |||
Minority Shareholders' Equity | 322,972,731.72 | 322,972,731.72 | |
Total Shareholders' Equity | 7,735,260,163.78 | 7,735,260,163.78 | |
Total Liabilities and Shareholders' Equity | 9,195,342,831.06 | 9,609,069,160.05 | 413,726,328.99 |
Balance Sheet of the Parent Company
Unit: RMB
Item | Thursday, December 31, 2020 | Friday, January 1, 2021 | Adjusted amount |
Current Assets: | |||
Cash and Bank Balances | 788,724,841.16 | 788,724,841.16 | |
Trading Financial Assets | |||
Derivative Financial Assets | |||
Notes receivable | |||
Accounts receivable | 38,224.90 | 38,224.90 | |
Receivables Financing | |||
Prepayments | 2,031,894.01 | 2,031,894.01 | |
Other Receivables | 1,046,160,763.74 | 1,046,160,763.74 | |
Including: interest receivable | |||
Dividends Receivable | |||
Inventory | 651,042.56 | 651,042.56 | |
Contract Assets | |||
Holding for-sale assets | |||
Non-current Assets Due within 1 Year | |||
Other Current Assets | 1,240,658.07 | 1,240,658.07 | |
Subtotal of Current Assets | 1,838,847,424.44 | 1,838,847,424.44 | |
Non-current Assets: | |||
Investment in Creditor's Rights | |||
Investment in Other Creditor's Rights |
Long-term Receivables | |||
Long-term Equity Investment | 6,433,238,270.32 | 6,433,238,270.32 | |
Investment in Other Equity Instruments | 214,975,166.42 | 214,975,166.42 | |
Other Non-current Financial Assets | |||
Investment Property | |||
Fixed Assets | 1,912,986.88 | 1,912,986.88 | |
Projects under Construction | |||
Productive Biological Assets | |||
Oil and gas assets | |||
Right-of-use Assets | |||
Intangible Assets | 3,418,590.95 | 3,418,590.95 | |
Development Expenditure | |||
Goodwill | |||
Long-term unamortized expenses | 2,600,000.20 | 2,600,000.20 | |
Deferred Income Tax Assets | 15,581,293.31 | 15,581,293.31 | |
Other Non-current Assets | |||
Subtotal of Non-current Assets | 6,671,726,308.08 | 6,671,726,308.08 | |
Total Assets | 8,510,573,732.52 | 8,510,573,732.52 | |
Current Liabilities: | |||
Short-term loan | |||
Transactional financial liabilities | |||
Derivative Financial Liabilities | |||
Notes Payable | |||
Accounts Payable | 1,154,036.06 | 1,154,036.06 | |
Received Prepayments |
Contract liabilities | |||
Payroll payable | 7,873,282.52 | 7,873,282.52 | |
Tax Payable | 1,394,799.62 | 1,394,799.62 | |
Other Payables | 2,056,738,130.14 | 2,056,738,130.14 | |
Including: interest payable | |||
Dividends Payable | |||
Holding for-sale liabilities | |||
Non-current Liabilities Due within 1 Year | 12,426,708.33 | 12,426,708.33 | |
Other Current Liabilities | |||
Subtotal of Current Liabilities | 2,079,586,956.67 | 2,079,586,956.67 | |
Non-current Liabilities: | |||
Long-term loan | 282,000,000.00 | 282,000,000.00 | |
Bonds Payable | |||
Including: Preferred Stocks | |||
Perpetual Bonds | |||
Lease Liabilities | |||
Long-term Payables | |||
Long-term payroll payable | |||
Expected Liabilities | |||
Deferred Income | |||
Deferred Income Tax Liabilities | |||
Other Non-current Liabilities | |||
Subtotal of Non-current Liabilities | 282,000,000.00 | 282,000,000.00 | |
Total Liabilities | 2,361,586,956.67 | 2,361,586,956.67 | |
Shareholders' Equity: | |||
Share Capital | 2,614,694,040.00 | 2,614,694,040.00 |
Other Equity Instruments | |||
Including: Preferred Stocks | |||
Perpetual Bonds | |||
Capital Reserves | 1,248,861,998.85 | 1,248,861,998.85 | |
Less: Treasury Share | |||
Other Comprehensive Incomes | -38,171,990.42 | -38,171,990.42 | |
Special Reserves | |||
Surplus Reserves | 517,673,268.35 | 517,673,268.35 | |
Undistributed Profits | 1,805,929,459.07 | 1,805,929,459.07 | |
Total Shareholders' Equity | 6,148,986,775.85 | 6,148,986,775.85 | |
Total Liabilities and Shareholders' Equity | 8,510,573,732.52 | 8,510,573,732.52 |
(4) Explanation of comparative data at early stage of retroactive adjustment after the initial implementationof the new lease standards in 2021
□ Applicable √ Not applicable
Ⅵ. Taxes
1. Major categories of taxes and tax rates
Tax Type | Taxation basis | Tax rate |
VAT | According to the provisions of the tax law, the sales tax shall be calculated on the basis of the income by selling goods and taxable services. After deducting the input tax that is allowed to be deducted from the sales tax in the current period, the difference shall be the value added tax | Simple levy 3%, 5% General taxpayer 6% General taxpayer 13%, 9% |
Urban Maintenance and Construction Tax | Calculated and paid based on the actual value-added tax and consumption tax | 5%, 7% |
Enterprise Income Tax | Calculated based on the taxable income | 25%, please refer to below table for details of different tax rates |
House property tax | The tax rate for lease is based on lease | 12%, 1.2% |
income; the tax rate for self-use fixed assets is based on the original value of the fixed assets; | ||
Education Surcharges | Calculated and paid based on the actual value-added tax and consumption tax | 5% |
If there are tax payers with different tax rates of enterprise income tax, disclose the specific information
Name of taxpayer | Income tax rate |
Sanya Romance Tourism Performance Co., Ltd. | 15% |
Lijiang Chama Ancient City Tourism Development Co., Ltd | 15% |
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd | 15% |
Hangzhou Songcheng Tourism Development Co., Ltd | 15% |
Jiuzhaigou Tibetan Mystery Culture Co., Ltd | 15% |
Songcheng Performance International Development Co., Ltd. | Hong Kong tax rate 16.50% |
Songcheng (Australia) Holdings Pty Ltd | Australia tax rate 30% |
Songcheng (Australia) Entertainment Pty Ltd. | Australia tax rate 30% |
Songcheng Performance Development (Shanghai) Co., Ltd. | The tax rate for small and micro enterprise |
Guilin Lijiang Romance Performance Development Co., Ltd | 15% |
Songcheng Dumuqiao Network Co., Ltd. | 15% |
Xi'an Romance Performance Development Co., Ltd | 15% |
Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd | 15% |
Songcheng Holdings (Thailand) Co., Ltd. | Tax rate of Thailand 15% |
Songcheng (Pattaya) International Culture Co., Ltd. | Tax rate of Thailand 15% |
2. Preferential tax rate
Preferential value-added tax:
According to the Announcement of the Ministry of Finance and the State Taxation Administration on Continuing theImplementation of Certain Tax Preferential Policies Responding to the COVID-19 Outbreak ([2021] No. 7), for the income obtainedby a taxpayer from rendering living services and public transport services, the implementation period of the preferential tax policyof value-added tax exemption will be extended to March 31, 2021. For the taxable sales revenue of small-scale taxpayers on which a3% tax rate is levied, the implementation period of the preferential tax policy of value-added tax reduction to 1% will be extended toDecember 31, 2021.
Preferential of property tax and land use tax:
According to the Notice of Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service, State TaxationAdministration on Continuing to Implement the Policy of Reducing and Exempting Property Tax and Urban Land Use Tax in Responseto the COVID-19 (Zhe Cai Shui Zheng (2021) No. 3), the implementation period of urban land use tax reduction and exemptionpolicy will last until June 30, 2021, the property tax and urban land use tax on self-used property and land of the small and
micro-size enterprises engaged in four business areas: accommodation, recreation, transportation and tourism and eligible forrelevant conditions should be reduced by 100% for the first quarter of 2021 and by 50% for the second quarter of 2021.
Preferential corporate income tax rate:
Lijiang Chama Ancient City Tourism Development Co., Ltd, Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd, JiuzhaigouTibetan Mystery Culture Co., Ltd, Guilin Lijiang Romance Performance Development Co., Ltd and Xi'an Romance PerformanceDevelopment Co., Ltd. enjoy the preferential tax policy of west development, which corporate income tax rate is 15%.Songcheng Tourism Development Co., Ltd., Songcheng Dumuqiao Connection Network Co., Ltd, and Hangzhou SongchengPerformance Valley Technology and Culture Development Co., Ltd. are high-tech enterprises, of which corporate income tax rate is15% in 2021.According to "Notice on the Hainan Free Trade Port’s Preferential Policies on Corporate Income Tax"( Caishui No. 31 of Year 2020),from January 1, 2020 to December 31, 2024, enterprises that are registered in Hainan Free Trade Port with substantial operationrecord are levied at a reduced rate of 15% for their corporate income. In addition, Sanya Romance Tourism Performance Co., Ltdobtained the "High-tech Enterprise Certificate" on December 1, 2020, which is valid for three years. For Sanya Romance TourismPerformance Co., Ltd., the corporate income tax was levied at the rate of 15% in 2021.According to "Notice of the Ministry of Finance and the State Administration of Taxation on Preferential Corporate Income TaxPolicies for the Two Special Economic Development Zones Kashgar and Horgos, in Xinjiang"( Caishui No. 112 of Year 2011), duringJanuary 1, 2010 to December 31, 2020, the newly established enterprise in two special economic development zones of Kashgarand Horgos in Xinjiang that fall within the scope of the "Catalogue of Enterprise Income Tax Preferences for Key Industries inDifficult Areas in Xinjiang", shall be exempted for corporate income tax for future five years starting from the tax year in which thefirst production and operation income is obtained. The Songcheng Technology Development Co., Ltd., Songcheng TourismDevelopment Co., Ltd., Songcheng Performance Management Co., Ltd. (Horgo Headquarters), Songcheng Brand Management Co.,Ltd. and Romance Art Management Co., Ltd. subordinate to the company meet the conditions of the preferential policy , and shallbe exempted from corporate income tax in 2021.According to State Taxation Administration Announcement No. 80 of 2021 and State Taxation Administration Announcement No. 12of 2021, for the period from January 1, 2021 to December 31, 2022, for the annual taxable income of a small low-profit enterprisewhich is no more than RMB 1 million, on the basis of the preferential policy stipulated in Article 2 of the Announcement of the StateAdministration of Taxation on Issues Concerning the Implementation of the Inclusive Income Tax Deduction and Exemption Policiesfor Small Low-Profit Enterprises (Cai Shui (2019) No. 13), the enterprise income tax will be halved and 12.5% of that part should beincluded in the taxable income; and for the annual taxable income which is more than RMB 1 million but no more than RMB 3million, 50% of that part should be included in the taxable income and a 20% interest rate should be used to calculate the enterpriseincome tax. The company that meets the requirements of small and micro enterprises of this year is: Songcheng PerformanceDevelopment (Shanghai) Co., Ltd.Ⅶ. Notes to the Items in the Consolidated Financial Statement
1. Cash and bank balances
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Cash on Hand | 3,428,776.09 | 2,437,262.81 |
Bank Balance | 1,707,365,801.91 | 1,285,458,896.93 |
Other Cash and Bank Balances | 147,953,286.04 | 49,880,094.24 |
Total | 1,858,747,864.04 | 1,337,776,253.98 |
Including: Total Amount Deposited in Overseas Banks | 283,928,396.85 | 116,361,545.59 |
2. Trading Financial Assets
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Financial assets at fair value through profit or loss in this period | 2,670,942.90 | 335,217,557.68 |
Including: | ||
Investment in equity instruments | 172,445,378.26 | |
Derivative Financial Assets | 2,670,942.90 | 6,589,730.08 |
Bank financial products | 156,182,449.34 | |
Designated financial assets that are measured at fair value and whose changes are included in the current profit and loss | ||
Including: | ||
Total | 2,670,942.90 | 335,217,557.68 |
3. Accounts receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Category | Balance at the End of the Period | Balance at the Start of the Period | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage | Amount | Accrued proportion | Amount | Percentage | Amount | Accrued proportion | |||
Accounts receivable for bad debt reserves by item | ||||||||||
Including: | ||||||||||
Accounts receivables with the bad debt provision accrued based on combinations | 2,404,441.14 | 100.00% | 206,846.77 | 8.60% | 2,197,594.37 | 6,285,542.60 | 100.00% | 398,530.24 | 6.34% | 5,887,012.36 |
Including: |
Combination of credit risk characteristics by age | 2,404,441.14 | 100.00% | 206,846.77 | 8.60% | 2,197,594.37 | 6,285,542.60 | 100.00% | 398,530.24 | 6.34% | 5,887,012.36 |
Total | 2,404,441.14 | 100.00% | 206,846.77 | 2,197,594.37 | 6,285,542.60 | 100.00% | 398,530.24 | 5,887,012.36 |
Bad debt provision based on combinationsAmong them: combination of credit risk characteristics by age:
Unit: RMB
Name | Balance at the End of the Period | ||
Book balance | Bad debt provision | Accrued proportion | |
Within credit period | 1,516,577.81 | 45,497.34 | 3.00% |
Credit period overdue within 1 year | 739,031.57 | 110,854.74 | 15.00% |
Credit period overdue within 1 to 2 years | 115,781.76 | 28,945.44 | 25.00% |
Credit period overdue within 2 to 3 years | 15,205.00 | 6,842.25 | 45.00% |
Credit period overdue within 3 to 4 years | 7,845.00 | 4,707.00 | 60.00% |
Credit period overdue within 4 to 5 years | 80.00% | ||
Credit period overdue for more than 5 years | 10,000.00 | 10,000.00 | 100.00% |
Total | 2,404,441.14 | 206,846.77 | -- |
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the bad debtprovisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging | Book balance |
Within 1 year (including 1 year) | 2,255,013.38 |
1 to 2 years | 116,377.76 |
2 to 3 years | 15,205.00 |
3 to 4 years | 7,845.00 |
4 to 5 years | |
5 years or above | 10,000.00 |
Total | 2,404,441.14 |
(2) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Category | Balance at the Start of the Period | Amount of Changes in the Current Period | Balance at the End of the Period | |||
Accrued | Recovered or Reversed | Written Off | Others (decrease in consolidation scope) | |||
Provision for bad debts of accounts receivable | 398,530.24 | -189,684.76 | 1,998.71 | 206,846.77 | ||
Total | 398,530.24 | -189,684.76 | 1,998.71 | 206,846.77 |
(3) Accounts receivable actually written off in this period
There are no accounts receivable actually written off in the current period.
(4) Accounts receivable of the top five balances at the end of the period collected by the arrears
Unit: RMB
Name of Unit | Accounts receivable at the end of the period | Proportion of the total accounts receivable at the end pf the period | Bad debt provision at the end of the period |
Alipay (China) Network Technology Co., Ltd. | 953,175.26 | 39.64% | 28,595.26 |
Suzhou Tongcheng Cultural Tourism Development Co., Ltd. | 201,662.42 | 8.39% | 22,560.72 |
Henan Longgui Cultural Tourism Development Co., Ltd. | 185,693.53 | 7.72% | 30,603.91 |
Qingdao Yilu International Travel Agency Co., Ltd. | 183,271.45 | 7.62% | 21,225.64 |
Beijing Bytedance Technology Co., Ltd. | 150,718.90 | 6.27% | 22,438.42 |
Total | 1,674,521.56 | 69.64% |
4. Prepayments
(1) Aging analysis of prepayments is as follows
Unit: RMB
Aging | Balance at the End of the Period | Balance at the Start of the Period | ||
Amount | Percentage | Amount | Percentage |
Within 1 year | 7,149,329.43 | 75.21% | 16,240,971.84 | 88.71% |
1 to 2 years | 1,167,392.70 | 12.28% | 1,749,615.05 | 9.56% |
2 to 3 years | 975,249.56 | 10.26% | 316,167.68 | 1.73% |
3 years or above | 214,244.54 | 2.25% | ||
Total | 9,506,216.23 | -- | 18,306,754.57 | -- |
(2) Advance payment of the top five closing balances by prepayment parties
Prepayment parties | Balance at the End of the Period | Proportion to the total balance of prepayment at the end of the period (%) |
China Music Copyright Association | 1,599,999.98 | 16.83 |
Guilin Yangshuo Power Supply Bureau, Guangxi Power Grid Co., Ltd. | 958,992.36 | 10.09 |
Hangzhou Bus Media Group Co., Ltd. | 672,641.02 | 7.08 |
Zhejiang Shenda Intelligence Technology Co., Ltd. | 390,000.00 | 4.10 |
Shanghai Dishite Business Information Consulting Co., Ltd. | 294,000.00 | 3.09 |
Total | 3,915,633.36 | 41.19 |
5. Other receivables
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Interest Receivable | ||
Dividends Receivable | ||
Other Receivables | 10,195,239.84 | 50,524,990.69 |
Total | 10,195,239.84 | 50,524,990.69 |
(1) Other Receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds | Closing balance | Opening balance |
Employee loan | 875,880.39 | 2,772,031.55 |
Security deposit, deposit | 2,135,534.00 | 14,126,496.40 |
Incomings and outgoings | 5,705,424.56 | 9,306,779.16 |
Equity transfer fund | 79,866,980.26 | 79,866,980.26 |
Others | 3,659,286.43 | 9,729,262.66 |
Total | 92,243,105.64 | 115,801,550.03 |
2) Bad debt provision
Unit: RMB
Bad debt provision | Phase One | Phase Two | Phase Three | Total |
Expected credit losses in the next 12 months | Expected credit losses for the entire extension (without credit impairment) | Expected credit losses for the entire extension (with credit impairment) | ||
Balance on Friday, January 1, 2021 | 404,294.08 | 64,872,265.26 | 65,276,559.34 | |
Balance of the current period on Friday, January 1, 2021 | —— | —— | —— | —— |
--Transfer to phase three | -63,053.93 | 63,053.93 | ||
Provisions of this period | -54,269.82 | 16,825,636.28 | 16,771,366.46 | |
Other changes (decrease in consolidation scope) | 60.00 | 60.00 | ||
Balance on Friday, December 31, 2021 | 286,910.33 | 81,760,955.47 | 82,047,865.80 |
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging | Book balance |
Within 1 year (including 1 year) | 7,732,918.08 |
1 to 2 years | 1,445,927.02 |
2 to 3 years | 1,068,796.28 |
3 to 4 years | 123,900.00 |
4 to 5 years | 80,226,909.26 |
5 years or above | 1,644,655.00 |
Total | 92,243,105.64 |
3) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Category | Balance at the Start of | Amount of Changes in the Current Period | Balance at the End of the Period | |||
Accrued | Recovered or | Written Off | Others (decrease |
the Period | Reversed | in consolidation scope) | ||||
Provision for bad debts of other receivables | 65,276,559.34 | 16,771,366.46 | 60.00 | 82,047,865.80 | ||
Total | 65,276,559.34 | 16,771,366.46 | 60.00 | 82,047,865.80 |
4) Accounts receivable actually written off in this period
There's no actual written-off accounts receivable in this period.
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
Name of Unit | Nature of the funds | Balance at the End of the Period | Aging | As a percentage of total other receivables at the end of the period | Bad debt provision at the end of the period |
An Xiaofen (formerly: Horgos Dasheng Legend Venture Capital Co., Ltd.) | Equity transfer fund | 79,866,980.26 | 4-5 years | 86.58% | 79,866,980.26 |
Henan Longgui Cultural Tourism Development Co., Ltd. | Project management fee, incentive fee | 2,248,100.00 | 1 to 2 years | 2.44% | 277,405.00 |
Beijing Muma Constellation Culture Communication Co., Ltd. | Loan | 1,050,000.00 | 5 years or above | 1.14% | 1,050,000.00 |
Online Trading Margin Account of Jiashan County Land and Resources Bureau | Land Tender Deposit and Security Deposit | 1,000,000.00 | 2-3 years | 1.08% | 20,000.00 |
Ningxiang Cultural Tourism Investment Co., Ltd. | Agent business of settlement of advertising fees and project management fees | 952,000.00 | Within 1 year | 1.03% | 47,600.00 |
Total | -- | 85,117,080.26 | -- | 92.27% | 81,261,985.26 |
6. Inventory
Does the company need to comply with the disclosure requirements of the real estate industryNo
(1) Categories of inventories
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period | ||||
Book balance | Inventory depreciation provision or contract performance cost impairment provision | Book value | Book balance | Inventory depreciation provision or contract performance cost impairment provision | Book value | |
Finished goods | 10,078,341.86 | 10,078,341.86 | 11,685,709.47 | 11,685,709.47 | ||
Materials in stock | 2,443,313.95 | 2,443,313.95 | 1,738,437.03 | 1,738,437.03 | ||
Total | 12,521,655.81 | 12,521,655.81 | 13,424,146.50 | 13,424,146.50 |
7. Other current assets
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Prepayment of value-added tax and VAT input tax that has not yet been deducted | 108,220,252.65 | 132,363,780.35 |
Prepayment of corporate income tax | 2,345,475.42 | 14,275,564.96 |
Prepayment of other additional taxes | 1,384,823.64 | 2,002,059.16 |
Total | 111,950,551.71 | 148,641,404.47 |
8. Long-term equity investment
Unit: RMB
The invested entity | Balance at the Start of the Period (book value) | Decrease/Increase in the current period | Balance at the End of the Period (book value) | Closing balance of provision for decline in value | |||||||
Investments increased | Investment decreased | Investment profit and loss recognized under the equity method | Adjustment on other comprehensive income | Other changes in equity | Cash dividends or profit declared to distribute | Provision for impairment accrued | Others | ||||
Ⅰ. Joint ventures | |||||||||||
Ⅱ. Affiliates | |||||||||||
Beijing Beite Shengdi Technology Development Co., Ltd. | 41,612,255.45 | -14,965,309.46 | 6,536,956.50 | 33,183,902.49 |
Huafang Group Inc. (formerly known as Beijing HuafangTechnology Co., Ltd.) | 1,492,927,369.66 | 12,836.58 | 119,311,201.95 | -16,918.29 | 32,134,955.29 | 1,644,369,445.19 | 1,861,297,284.90 | ||||
Subtotal | 1,534,539,625.11 | 12,836.58 | 104,345,892.49 | -16,918.29 | 38,671,911.79 | 1,677,553,347.68 | 1,861,297,284.90 | ||||
Total | 1,534,539,625.11 | 12,836.58 | 104,345,892.49 | -16,918.29 | 38,671,911.79 | 1,677,553,347.68 | 1,861,297,284.90 |
Explanations of other mattersHuafang Group Inc. (formerly Beijing Huafang Technology Co., Ltd.): The original shareholders of Beijing Huafang Technology Co.,Ltd., including Songcheng Performance Development Co., Ltd., signed the VIE agreement, and Global Bacchus Limited, awholly-owned company subsidiary of the Company, acquired 37.06% equity of Huafang Group Inc. at the price of USD1,976.4706(equal to RMB 12,836.58). After signing the above agreement, Global Bacchus Limited, a wholly-owned subsidiary of the Company,holds the 37.06% of the equity of Huafang Group Inc. and has all the rights and obligations pertaining to the 37.06% equity ofBeijing Huafang Technology Co., Ltd.According to the evaluation results of the long-term equity investment impairment test conducted by China United Assets AppraisalGroup Co., Ltd. as of December 31, 2021, the recoverable amount of long-term equity investment of the Company was not lowerthan the book value after the impairment of long-term equity investment.
9. Investment in other equity instruments
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Ningno Songcheng Performance Live Entertainment Investment Partnership (limited partnership) | 69,360,600.00 | 133,565,454.00 |
Ningno Songcheng Internet Entertainment Investment Partnership (limited partnership) | 4,708,000.00 | 78,389,515.54 |
Ningno Meishan Bonded Port Area Qixian Innovation Entertainment Investment Partnership (limited partnership) | 2,522,600.00 | 2,093,286.88 |
Ningbo Songcheng Qixian Investment Management Co., Ltd. | 868,600.00 | 926,910.00 |
SABH's Big Adventure Inc. | 9,026,036.59 | 9,291,430.32 |
Total | 86,485,836.59 | 224,266,596.74 |
Disclose investments in non-trading equity instruments of the period by item
Unit: RMB
Item Name | Recognized dividend income | Cumulative gain | Accumulated loss | The amount of other comprehensive | Reason for designation as being measured | Reason for transferring other comprehensive |
income transferred to retained earnings | at fair value and the change included in other comprehensive income | income to retained earning | ||||
Ningno Songcheng Performance Live Entertainment Investment Partnership (limited partnership) | 60,270,000.00 | Long-term holding of company strategy | ||||
Ningno Songcheng Internet Entertainment Investment Partnership (limited partnership) | 242,000.00 | 96,934,247.87 | Long-term holding of company strategy | Partial recovery of the investment projects | ||
Ningno Meishan Bonded Port Area Qixian Innovation Entertainment Investment Partnership (limited partnership) | 25,977,400.00 | Long-term holding of company strategy | ||||
Ningbo Songcheng Qixian Investment Management Co., Ltd. | 486,627.31 | Long-term holding of company strategy | ||||
SABH's Big Adventure Inc. | 17,608,071.52 | Long-term holding of company strategy | ||||
Total | 486,627.31 | 104,097,471.52 | 96,934,247.87 |
10. Fixed assets
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Fixed Assets | 2,697,045,965.17 | 2,508,754,929.16 |
Disposal of fixed assets | ||
Total | 2,697,045,965.17 | 2,508,754,929.16 |
(1) Fixed assets
Unit: RMB
Item | Housing and building | General Equipment | Machinery and equipment | Transportation Equipment | Other equipment | Total |
Ⅰ. Original book value: | ||||||
1. Opening Balance | 2,492,942,875.84 | 372,471,706.18 | 775,671,893.77 | 48,093,347.86 | 2,734,328.33 | 3,691,914,151.98 |
2. Increased in the Current Period | 205,119,785.97 | 127,860,949.68 | 231,851,059.91 | 1,280,388.93 | 566,112,184.49 | |
(1) Purchase | 151,686.78 | 20,791,347.00 | 2,261,138.01 | 1,280,388.93 | 24,484,560.72 | |
(2) Transferred From Construction in Progress | 204,968,099.19 | 107,069,602.68 | 229,589,921.90 | 541,627,623.77 | ||
3. Decreased in the Current Period | 144,835,554.03 | 14,501,001.67 | 16,413,465.62 | 29,539,013.73 | 395,344.35 | 205,684,379.40 |
(1) Disposal or Scrapping | 29,084,513.67 | 12,136,592.09 | 15,261,765.02 | 116,836.00 | 395,344.35 | 56,995,051.13 |
(2) Decrease in business combination | 115,751,040.36 | 2,364,409.58 | 1,151,700.60 | 29,422,177.73 | 148,689,328.27 | |
4. Closing Balance | 2,553,227,107.78 | 485,831,654.19 | 991,109,488.06 | 19,834,723.06 | 2,338,983.98 | 4,052,341,957.07 |
II. Accumulated depreciation | ||||||
1. Opening Balance | 550,902,868.61 | 246,778,655.19 | 353,990,423.38 | 28,940,433.95 | 2,546,841.69 | 1,183,159,222.82 |
2. Increased in the Current | 101,001,633.98 | 56,741,701.72 | 80,705,244.51 | 3,116,563.57 | 16,951.20 | 241,582,094.98 |
Period | ||||||
(1) Accrual | 101,001,633.98 | 56,741,701.72 | 80,705,244.51 | 3,116,563.57 | 16,951.20 | 241,582,094.98 |
3. Decreased in the Current Period | 27,146,328.89 | 13,276,669.45 | 11,673,951.69 | 16,992,937.06 | 355,438.81 | 69,445,325.90 |
(1) Disposal or Scrapping | 11,122,965.05 | 11,176,833.71 | 11,356,128.23 | 94,012.36 | 355,438.81 | 34,105,378.16 |
(2) Decrease in business combination | 16,023,363.84 | 2,099,835.74 | 317,823.46 | 16,898,924.70 | 35,339,947.74 | |
4. Closing Balance | 624,758,173.70 | 290,243,687.46 | 423,021,716.20 | 15,064,060.46 | 2,208,354.08 | 1,355,295,991.90 |
Ⅲ. Provision for Impairment | ||||||
1. Opening Balance | ||||||
2. Increased in the Current Period | ||||||
(1) Accrual | ||||||
3. Decreased in the Current Period | ||||||
(1) Disposal or Scrapping | ||||||
4. Closing Balance | ||||||
Ⅳ. Book value | ||||||
1. Closing Balance on Book Value | 1,928,468,934.08 | 195,587,966.73 | 568,087,771.86 | 4,770,662.60 | 130,629.90 | 2,697,045,965.17 |
2. Opening Balance on Book Value | 1,942,040,007.23 | 125,693,050.99 | 421,681,470.39 | 19,152,913.91 | 187,486.64 | 2,508,754,929.16 |
11. Construction in progress
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Projects under Construction | 404,739,821.09 | 771,871,563.73 |
Construction material | ||
Total | 404,739,821.09 | 771,871,563.73 |
(1) Details of construction in progress
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period | ||||
Book balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
Songcheng Scenic Area Renovation Project | 31,455,175.30 | 31,455,175.30 | ||||
Sanya Romance Project | 67,799,438.26 | 67,799,438.26 | ||||
Sanya Art Wall Project | 2,173,261.00 | 2,173,261.00 | ||||
Longquan Mountain Tourism Development Project | 350,943.40 | 350,943.40 | ||||
Australian Legend Project | 7,418,287.49 | 7,418,287.49 | 8,051,137.07 | 8,051,137.07 | ||
Shanghai Romance Show Project | 294,784,853.21 | 294,784,853.21 | ||||
Shanghai Romance Show Renovation Project | 1,188,745.58 | 1,188,745.58 | ||||
Zhangjiajie Romance Renovation Project | 57,752,884.45 | 57,752,884.45 | ||||
Xi'an Romance Project | 44,575,845.40 | 44,575,845.40 | ||||
Xi’an Typhoon House, Castle Panic and New Projects | 4,818,764.07 | 4,818,764.07 | ||||
Xi’an Romance Show Repertory Change Project | 2,717,706.32 | 2,717,706.32 | ||||
Xitang Romance Show Project | 121,379,192.40 | 121,379,192.40 | 101,251,838.34 | 101,251,838.34 | ||
Foshan Romance Show Project | 188,407,673.90 | 188,407,673.90 | 100,613,590.87 | 100,613,590.87 | ||
Zhuhai Performance Kingdom Project | 76,636,190.33 | 76,636,190.33 | 65,235,857.43 | 65,235,857.43 | ||
Total | 404,739,821.09 | 404,739,821.09 | 771,871,563.73 | 771,871,563.73 |
(2) Changes in significant construction in progress
Unit: RMB
Item Name | Budget | Balance at the Start of the Period | Increased in the current period | Transfer amounts in this period | Other amounts decreased in current period | Balance at the End of the Period | Project accumulative investment as a percentage of the budget | Project Progress | Accumulated capitalized interest amount | Including: capitalized interest amount in the current period | Capitalization rate of the interest in the current period | Capital Source |
Songcheng Scenic Area Renovation Project | 124,167,000.00 | 31,455,175.30 | 84,984,932.75 | 89,560,776.76 | 26,879,331.29 | 93.78% | 100.00% | Other sources | ||||
Hangzhou Paradise Upgrading and Renovation Project | 34,450,000.00 | 33,046,120.03 | 24,292,349.87 | 8,753,770.16 | 95.92% | 100.00% | Other sources | |||||
Sanya Romance Project | 101,680,000.00 | 67,799,438.26 | 24,627,449.92 | 84,336,271.33 | 8,090,616.85 | 90.90% | 100.00% | Other sources | ||||
Sanya Art Wall Project | 4,018,071.53 | 2,173,261.00 | 2,173,261.00 | 54.09% | 60.00% | Other sources | ||||||
Lijiang Romance Show Renovation Project | 36,480,000.00 | 34,043,280.28 | 20,602,564.00 | 13,440,716.28 | 93.32% | 100.00% | Other sources | |||||
Jiuzhai Romance Renovation Project | 22,589,060.00 | 24,299,553.19 | 3,936,797.19 | 20,362,756.00 | 107.57% | 100.00% | Other sources | |||||
Longquan Mountain Tourism Development Project | 212,588,000.00 | 350,943.40 | 350,943.40 | Other sources | ||||||||
Australian Legend Project | 1,692,380,000.00 | 8,051,137.07 | -632,849.58 | 7,418,287.49 | 0.44% | 2.00% | Other sources | |||||
Shanghai Romance | 713,145,000.00 | 294,784,853.21 | 367,486,068.55 | 147,686,928.26 | 514,583,993.50 | 92.87% | 100.00% | Other sources |
Show Project | ||||||||||||
Shanghai Romance Show Renovation Project | 40,720,000.00 | 1,188,745.58 | 1,188,745.58 | 2.92% | 10.00% | Other sources | ||||||
Guilin Romance Show Renovation Project | 10,600,000.00 | 9,596,476.92 | 5,598,083.21 | 3,998,393.71 | 90.53% | 100.00% | Other sources | |||||
Zhangjiajie Romance Renovation Project | 123,920,000.00 | 57,752,884.45 | 51,870,201.11 | 97,148,420.29 | 12,474,665.27 | 88.46% | 100.00% | Other sources | ||||
Xi'an Romance Project | 255,000,000.00 | 44,575,845.40 | 40,754,035.03 | 68,465,432.86 | 16,864,447.57 | 105.92% | 100.00% | Other sources | ||||
Xi’an Typhoon House, Castle Panic and New Projects | 68,150,000.00 | 4,818,764.07 | 4,818,764.07 | 7.07% | 20.00% | Other sources | ||||||
Xi’an Romance Show Repertory Change Project | 4,080,000.00 | 2,717,706.32 | 2,717,706.32 | 66.61% | 60.00% | Other sources | ||||||
Xitang Romance Show Project | 400,000,000.00 | 101,251,838.34 | 20,127,354.06 | 121,379,192.40 | 30.34% | 48.00% | Other sources | |||||
Foshan Romance Show Project | 451,550,000.00 | 100,613,590.87 | 87,794,083.03 | 188,407,673.90 | 41.72% | 72.00% | Other sources | |||||
Zhuhai Performance Kingdom Project | 2,500,000,000.00 | 65,235,857.43 | 11,400,332.90 | 76,636,190.33 | 3.07% | 5.00% | Other sources | |||||
Total | 6,795,517,131.53 | 771,871,563.73 | 800,295,515.16 | 541,627,623.77 | 625,799,634.03 | 404,739,821.09 | -- | -- | -- |
Details of changes in the projects under construction: Other reductions of RMB 625,799,634.03 in the current period are thetransfer of long-term deferred expenses amounting to RMB 546,121,115.39 and the transfer of operating costs of maintenance andimprovement amounting to RMB 79,327,575.24. The consolidation scope of Longquanshan Tourism Development Project is reducedby RMB 350,943.40. For the Australia Legend Project, the amount of increase of the current period is RMB -632,849.58 arising fromthe fluctuation in exchange rate.
12. Right-of-use assets
Unit: RMB
Item | Housing and building | Total |
Ⅰ. Original book value: | ||
1. Opening Balance | 526,000,589.97 | 526,000,589.97 |
2. Increased in the Current Period | 2,422,321.67 | 2,422,321.67 |
- Revaluation adjustment | 2,422,321.67 | 2,422,321.67 |
3. Decreased in the Current Period | ||
4. Closing Balance | 528,422,911.64 | 528,422,911.64 |
II. Accumulated depreciation | ||
1. Opening Balance | ||
2. Increased in the Current Period | 34,607,328.24 | 34,607,328.24 |
(1) Accrual | 34,607,328.24 | 34,607,328.24 |
3. Decreased in the Current Period | ||
(1) Disposal | ||
4. Closing Balance | 34,607,328.24 | 34,607,328.24 |
Ⅲ. Provision for Impairment | ||
1. Opening Balance | ||
2. Increased in the Current Period | ||
(1) Accrual | ||
3. Decreased in the Current Period | ||
(1) Disposal | ||
4. Closing Balance | ||
Ⅳ. Book value | ||
1. Closing Balance on Book Value | 493,815,583.40 | 493,815,583.40 |
2. Opening Balance on Book Value | 526,000,589.97 | 526,000,589.97 |
13. Intangible assets
(1) Details of intangible assets
Unit: RMB
Item | Land use rights | Patent right | Non-patented technology | Computer Software | Intellectual Property | Vehicle license plate | Total |
Ⅰ. Original book value |
1. Opening Balance | 2,086,688,019.80 | 36,886,271.88 | 600,000.00 | 250,800.00 | 2,124,425,091.68 | ||
2. Increased in the Current Period | -23,130,903.55 | 186,764.63 | -22,944,138.92 | ||||
(1) Purchase | 186,764.63 | 186,764.63 | |||||
(2) Change in exchange rates | -23,130,903.55 | -23,130,903.55 | |||||
3. Decreased in the Current Period | 113,296,098.54 | 113,296,098.54 | |||||
(1) Disposal | 4,538,255.37 | 4,538,255.37 | |||||
Decrease in consolidation scope | 108,757,843.17 | 108,757,843.17 | |||||
4. Closing Balance | 1,950,261,017.71 | 37,073,036.51 | 600,000.00 | 250,800.00 | 1,988,184,854.22 | ||
Ⅱ. Accumulated amortization | |||||||
1. Opening Balance | 232,541,580.00 | 11,508,310.91 | 280,000.00 | 63,278.21 | 244,393,169.12 | ||
2. Increased in the Current Period | 44,132,646.89 | 6,607,685.12 | 60,000.00 | 25,080.00 | 50,825,412.01 | ||
(1) Accrual | 44,132,646.89 | 6,607,685.12 | 60,000.00 | 25,080.00 | 50,825,412.01 | ||
3. Decreased in the Current Period | 19,857,959.68 | 19,857,959.68 | |||||
(1) Disposal | 1,425,047.69 | 1,425,047.69 | |||||
Decrease in consolidation scope | 18,432,911.99 | 18,432,911.99 | |||||
4. Closing Balance | 256,816,267.21 | 18,115,996.03 | 340,000.00 | 88,358.21 | 275,360,621.45 | ||
Ⅲ. Provision for Impairment | |||||||
1. Opening Balance | |||||||
2. Increased in the Current Period | |||||||
(1) Accrual | |||||||
3. Decreased in the Current Period |
(1) Disposal | |||||||
4. Closing Balance | |||||||
Ⅳ. Book value | |||||||
1. Closing Balance on Book Value | 1,693,444,750.50 | 18,957,040.48 | 260,000.00 | 162,441.79 | 1,712,824,232.77 | ||
2. Opening Balance on Book Value | 1,854,146,439.80 | 25,377,960.97 | 320,000.00 | 187,521.79 | 1,880,031,922.56 |
At the end of this period, the proportion of intangible assets formed through internal research and development of the Company tothe balance of intangible assets is 0.00%.Other notes: In the account of land use right, the amount of increase of the current period is RMB -23,130,903.55 arising from thefluctuation in exchange rates, and that is the change in amount of land purchased by a subsidiary of the Company carrying out theAustralian project, due to the change in Australian dollar's exchange rate.
14. Goodwill
(1) Original book value of goodwill
Unit: RMB
The invested entity or matters which formed goodwill | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
Generated from business combination | Disposal | |||
Jiuzhaigou Tibetan Mystery Culture Co., Ltd | 45,504,625.96 | 45,504,625.96 | ||
Total | 45,504,625.96 | 45,504,625.96 |
(2) Provision of impairment in goodwill
Unit: RMB
The invested entity or matters which formed goodwill | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
Accrued | Disposal | |||
Jiuzhaigou Tibetan Mystery Culture Co., Ltd | 33,848,831.09 | 10,082,554.54 | 43,931,385.63 | |
Total | 33,848,831.09 | 10,082,554.54 | 43,931,385.63 |
Information about the asset group or asset group combination where the goodwill is located
Composition of asset group or combination of asset groups | Jiuzhaigou Tibetan Mystery Culture Co., Ltd |
Book value of the asset group or asset groups combination | 43,132,132.78 |
Original book value of goodwill | 45,504,625.96 |
Unrecognized value of goodwill attributed to equity of minority shareholders
Unrecognized value of goodwill attributed to equity of minority shareholders | 30,336,417.31 |
Including the value of unrecognized goodwill attributed to minority shareholders' equity | 75,841,043.27 |
The book value of the asset group or combination of asset groups that involves goodwill | 118,973,176.05 |
The present book value of the expected future cash flow of the asset group (the recoverable current book value) | 45,754,200.00 |
Accumulated impairment loss of goodwill | 43,931,385.63 |
Whether the asset group or combination of asset groups is consistent with its identified amount at the date of purchase and the goodwill impairment test of previous years | Consistency |
In 2015, the Company acquired 60% of Jiuzhaigou Tibetan Mystery Culture Co., Ltd.,. whose business is single and independent foraccounting, and therefore its long-term asset is considered as an independent asset group.
(3) The process and key parameters of the goodwill impairment test and the method of confirming the loss ofgoodwill impairment:
The recoverable amount of the asset group is determined on the basis of the higher of the present value of the estimated futureoperating net cash flow during the asset life or the market value (fair value) of the asset, minus the net amount of disposal expensesand relevant taxes.The present value of the expected future net cash flow of the asset group is based on the management budget for the next fiveyears and the adjusted discount rate. It is calculated by using the cash flow forecasting method. The cash flow beyond the five-yeardetailed forecast period is calculated with a stable growth rate. Among them, the forecast period of cash flows is 2022-2026 (thesubsequent period is perpetuity), and the discount rate is 11.88%-11.81%.Other key data used in the impairment test include: operating revenue, operating costs and related expenses, capital expenditures,depreciation and amortization.According to the "Asset Appraisal Report” issued by Beijing Northern Asia Assets Appraisal Firm (Special General Partnership) hiredby the Company, recoverable amount of the asset group involving goodwill was RMB 45,754,200.00.After testing, the accumulated goodwill impairment of Jiuzhaigou Tibetan Mystery Culture Co., Ltd. was RMB 43,931,385.63.
15. Long-term prepaid expenses
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Prepaid Expenses in This Period | Other Amounts Decreased | Balance at the End of the Period |
Expenditures for improvement of operating leased fixed assets | 113,735,729.61 | 494,243,260.34 | 27,770,495.29 | 9,273,468.80 | 570,935,025.86 |
House decoration fee | 5,124,989.93 | 24,446.00 | 2,135,442.57 | 15,687.43 | 2,998,305.93 |
Fees for road signs in scenic spots | 14,178,509.03 | 7,814,981.93 | 5,765,095.04 | 1,165,596.91 | 15,062,799.01 |
Scenic animals and plants | 37,520,516.59 | 28,050,770.35 | 14,650,393.78 | 1,677,198.80 | 49,243,694.36 |
Cost of creating costumes and props | 44,093,356.82 | 21,289,714.28 | 9,143,647.93 | 120,919.79 | 56,118,503.38 |
Others | 441,285.90 | 522,137.62 | 300,202.67 | 663,220.85 | |
Total | 215,094,387.88 | 551,945,310.52 | 59,765,277.28 | 12,252,871.73 | 695,021,549.39 |
Other notes: The others account of the current period decreases by RMB 12,252,871.73, of which RMB 1,923,024.35 is attributableto the consolidation scope and RMB 10,329,847.38 is attributable to the scrapping and disposal.
16. Deferred income tax assets/liabilities
(1) Deferred income tax assets not written off
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period | ||
Deductible temporary difference | Deferred Income Tax Assets | Deductible temporary difference | Deferred Income Tax Assets | |
Provision for Impairment of Assets | 82,254,712.57 | 20,502,718.98 | 65,659,489.58 | 16,308,221.87 |
Unrealized Profit from Internal Transactions | 9,960,044.15 | 2,490,011.04 | 8,710,326.58 | 2,177,581.65 |
Lease standards | 11,826,006.72 | 2,550,647.27 | ||
Total | 104,040,763.44 | 25,543,377.29 | 74,369,816.16 | 18,485,803.52 |
(2) Deferred income tax liabilities not written off
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period | ||
Taxable temporary difference | Deferred Income Tax Liabilities | Taxable temporary difference | Deferred Income Tax Liabilities | |
Asset appraisal increment of merged assets of the entities not under common control | 374,872,215.24 | 93,718,053.81 | 386,938,479.60 | 96,734,619.90 |
Changes in the fair value of the trading financial assets | 182,449.34 | 34,600.28 |
included in the profit and loss from fair value changes of the current period | ||||
Total | 374,872,215.24 | 93,718,053.81 | 387,120,928.94 | 96,769,220.18 |
(3) Details of unrecognized deferred income tax assets
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Deductible temporary difference | 86,002,772.69 | 1,044,004,655.08 |
Deductible Losses | 385,633,406.46 | 359,520,530.58 |
Total | 471,636,179.15 | 1,403,525,185.66 |
(4) The deductible losses of unrecognized deferred income tax assets will mature in the following years
Unit: RMB
Year | Amount at the end of the period | Opening balance | Notes |
2021 years | 10,214,970.98 | ||
2022 years | 10,783,212.03 | 16,736,431.92 | |
2023 years | 49,334,492.91 | 62,433,581.93 | |
2024 years | 50,503,415.97 | 70,358,021.61 | |
2025 years | 124,722,410.70 | 199,777,524.14 | |
2026 years | 150,289,874.85 | ||
Total | 385,633,406.46 | 359,520,530.58 | -- |
17. Other non-current assets
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period | ||||
Book balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
Advance payment for project | 2,979,411.23 | 2,979,411.23 | 7,733,926.26 | 7,733,926.26 | ||
Advance payment for car | 855,900.00 | 855,900.00 | ||||
Advance payment for land | 21,135,600.00 | 21,135,600.00 | ||||
Total | 24,115,011.2 | 24,115,011.2 | 8,589,826.26 | 8,589,826.26 |
3 | 3 |
18. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Payment for project, equipment and maintenance | 466,816,984.31 | 346,638,370.70 |
Inventory cost | 13,915,584.13 | 24,866,101.30 |
Advertising cost and other fees | 1,218,711.70 | 971,992.69 |
Total | 481,951,280.14 | 372,476,464.69 |
19. Advance receipts
(1) Details of received pre-payments
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Shop rent | 8,142,991.55 | 12,888,689.05 |
Total | 8,142,991.55 | 12,888,689.05 |
20. Contract liabilities
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Ticket fees | 9,612,799.60 | 11,352,124.25 |
Planning fee, design fee, program production fee | 78,141,509.51 | 177,198,113.27 |
Total | 87,754,309.11 | 188,550,237.52 |
The amount of significant change in book value during the reporting period and the reason thereof
Unit: RMB
Item | Amount of change | Reason for change |
Planning fee, design fee, program production fee | 0.00 | Increase in amount due to receipt of cash |
Planning fee, design fee, program production fee | -99,056,603.76 | The amount of reduced contract liabilities due to the carry-over income of this year |
Total | -99,056,603.76 | —— |
21、Salary payable
(1) Details of payroll payable
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
Ⅰ. Short-term remuneration | 18,741,340.95 | 206,437,858.25 | 205,421,075.70 | 19,758,123.50 |
Ⅱ. Demission benefits - defined contribution scheme | 76,463.79 | 10,344,590.73 | 10,287,687.12 | 133,367.40 |
Ⅲ. Dismissal welfare | 4,312,059.22 | 4,312,059.22 | ||
Total | 18,817,804.74 | 221,094,508.20 | 220,020,822.04 | 19,891,490.90 |
(2) List of short-term remuneration
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
1. Wages or salaries, bonuses, allowances and subsidies | 14,386,624.38 | 175,170,012.27 | 174,281,602.54 | 15,275,034.11 |
2. Staff welfare | 15,690.24 | 19,177,063.54 | 19,192,753.78 | |
3. Social insurance contributions | 74,749.39 | 6,973,345.40 | 6,914,199.66 | 133,895.13 |
Including: medical insurance | 60,218.95 | 6,734,592.39 | 6,679,275.42 | 115,535.92 |
Work injury insurance premium | 1,704.72 | 198,656.24 | 197,162.35 | 3,198.61 |
Birth insurance premium | 12,825.72 | 40,096.77 | 37,761.89 | 15,160.60 |
4. Housing funds | 74,382.00 | 3,795,292.72 | 3,804,222.72 | 65,452.00 |
5. Labor union and education funds | 4,189,894.94 | 1,322,144.32 | 1,228,297.00 | 4,283,742.26 |
Total | 18,741,340.95 | 206,437,858.25 | 205,421,075.70 | 19,758,123.50 |
(3) Defined contribution scheme (Note)
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
1. Basic pension insurance | 73,390.21 | 9,973,089.27 | 9,917,727.13 | 128,752.35 |
2. Unemployment insurance | 3,073.58 | 371,501.46 | 369,959.99 | 4,615.05 |
Total | 76,463.79 | 10,344,590.73 | 10,287,687.12 | 133,367.40 |
22. Taxes payable
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
VAT | 2,560,347.92 | 1,627,758.21 |
Enterprise Income Tax | 27,912,794.11 | 14,538,779.22 |
Individual income tax | 322,746.46 | 568,739.64 |
Urban Maintenance and Construction Tax | 193,841.11 | 124,619.04 |
House property tax | 3,667,911.65 | 2,125,001.78 |
Land usage tax | 2,081,675.43 | 790,142.85 |
Education Surcharges | 139,615.06 | 69,757.11 |
Stamp duty | 50,438.40 | 25,010.64 |
Others | 67,841.53 | |
Total | 36,997,211.67 | 19,869,808.49 |
23. Other payables
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Interest Payable | ||
Dividends Payable | ||
Other Payables | 72,869,650.41 | 65,149,971.79 |
Total | 72,869,650.41 | 65,149,971.79 |
(1) Other payables
1) Other payables listed by nature of funds
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Merchant deposit | 3,888,433.44 | 4,724,228.60 |
Deposit of construction party | 2,826,805.70 | 4,130,003.70 |
Deposit of merchant for bidding | 1,757,395.00 | 1,923,628.40 |
Deposit of travel agency | 4,538,753.00 | 4,301,753.00 |
Other types of deposits | 1,642,110.82 | 1,553,964.82 |
Reward for over-fulfilled performance | 31,576,200.00 | 31,576,200.00 |
Incomings and outgoings | 23,941,587.47 | 14,094,504.75 |
Others | 2,698,364.98 | 2,845,688.52 |
Total | 72,869,650.41 | 65,149,971.79 |
Other explanation: The reward for over-fulfilled performance at the end of the period is determined according to the initialacquisition agreement with Beijing Huafang Technology Co., Ltd.,. If the excess part of the net profit actually realized during theperformance commitment period that is higher than the promised net profit, the excess part has not been issued to themanagement shall be calculated in accordance with the agreed proportion
24. Non-current liabilities due within one year
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Long-term debt due within one year | 12,000,000.00 | 12,000,000.00 |
Interest on long-term loans for which the principal and interest is repaid by installments | 409,291.67 | 426,708.33 |
Lease liabilities due within one year | 24,441,418.40 | 23,188,817.38 |
Total | 36,850,710.07 | 35,615,525.71 |
25. Other current liabilities
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Output VAT to be carried forward | 3,419,057.32 | 3,513,902.08 |
Total | 3,419,057.32 | 3,513,902.08 |
26. Long-term loans
(1) Categories of long-term loans
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Fiduciary loans | 270,000,000.00 | 282,000,000.00 |
Total | 270,000,000.00 | 282,000,000.00 |
27. Leasing liabilities
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Lease payment of housing and buildings | 520,979,645.10 | 560,342,521.97 |
Unrecognized finance fees | -149,207,473.05 | -169,805,010.36 |
Total | 371,772,172.05 | 390,537,511.61 |
28. Deferred revenue
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period | Causes |
Government subsidies | 387,619,860.41 | 2,000,000.00 | 1,688,957.74 | 387,930,902.67 | Government's grant |
Total | 387,619,860.41 | 2,000,000.00 | 1,688,957.74 | 387,930,902.67 | -- |
Projects related to government subsidies:
Unit: RMB
Liabilities | Balance at the Start of the Period | The amount of new subsidies in this period | Amount recorded as non-operating revenue in this period | The Amount Recorded as Other Income in This Period | The Amount Written off Costs in This Period | Other changes (decrease in consolidation scope) | Balance at the End of the Period | Related to assets/related to income |
In 2008, the discounts on interest for the international animation gallery project were received. | 3,190,475.14 | 142,857.24 | 3,047,617.90 | Related to assets | ||||
In 2017, the cultural and creative funds for "Love Song of Lijiang" project were received. | 326,666.24 | 20,000.04 | 306,666.20 | Related to assets | ||||
In 2017, the grant for the toilet project of | 108,333.52 | 6,500.04 | 101,833.48 | Related to assets |
the modern service industry in Songcheng Scenic Area were received. | ||||||||
In 2017, Hangzhou modern service industry guiding funds for the cable car project were received. | 524,355.00 | 53,780.03 | 470,574.97 | Related to assets | ||||
In 2017, the special funds of tourism planning and construction of modern service for Xianghu Lake Romance were received. | 851,456.57 | 52,130.04 | 799,326.53 | Related to assets | ||||
In 2017, the special funds for cultural industry development were received. | 1,941,666.69 | 99,999.96 | 1,841,666.73 | Related to assets | ||||
In 2018, the special funds for cultural industry development were received from the Department of Culture, Radio, Television, Press, Publication and Sports of Hainan province. | 500,000.00 | 12,500.00 | 487,500.00 | Related to assets | ||||
In 2018, the subsidies for Longquan Mountain ecological | 873,833.40 | 12,249.99 | 861,583.41 | Related to assets |
rehabilitation project were received. | ||||||||
In 2018, the subsidies for Guilin Lijiang Romance fork culture, leisure tourism and performance project were received. | 437,500.08 | 24,999.96 | 412,500.12 | Related to assets | ||||
In 2019, the special funds for planning and construction subsidies of modern service industry issued by the Municipal Tourism Commission for the reconstruction project of No. 2 Theater Complex in Songcheng Romance Park were received. | 1,560,273.38 | 66,159.96 | 1,494,113.42 | Related to assets |
In 2019,Hangzhoumodern serviceindustry tourismspecial funds forthe constructionproject of thenew entrancehall washroomwere received.
191,333.30 | 8,000.04 | 183,333.26 | Related to assets | |||||
In 2019, the guiding funds of Guilin Lijiang service industry | 1,350,000.00 | 75,000.00 | 1,275,000.00 | Related to assets |
for Guilin Romance folk culture leisure tourism performance project were received. | ||||||||
In 2019, special funds issued by Xiqiao Mountain Scenic Area Management Committee in Nanhai District, Foshan for supporting the project of Foshan Xiqiao Mountain Romance park were received. | 370,000,000.00 | 370,000,000.00 | Related to assets | |||||
In 2019, the cultural and tourism industry funds issued by Hainan Provincial Department of Finance for Sanya No. 2 theater project were received. | 500,000.00 | 12,500.00 | 487,500.00 | Related to assets | ||||
In 2020, the financial support funds issued by Shanghai government for promoting the development of cultural and creative industries were received. | 280,000.00 | 280,000.00 | Related to assets | |||||
In 2020, the cultural industry | 2,000,000.00 | 49,999.98 | 1,950,000.02 | Related to assets |
development special funds issued by Hainan Provincial Department of Finance for Sanya No.2 Theater Project were received. | ||||||||
In 2020, the special funds for development of modern service industry issued by Development and Reform Bureau of Wulingyuan District of Zhangjiajie were received. | 1,916,670.00 | 99,996.00 | 1,816,674.00 | Related to assets | ||||
In 2020, the special funds for tourism development issued by Zhangjiajie Municipal Finance Bureau were received. | 402,230.00 | 21,170.01 | 381,059.99 | Related to assets | ||||
In 2020, Hangzhou modern service industry tourism special funds allocated by Hangzhou Culture, Radio, Film and Television Tourism Bureau for significant leisure tourism | 485,916.67 | 24,500.03 | 461,416.64 | Related to assets |
construction, the upgrading and renovation of scenic spots, and tourism planning projects were received. | ||||||||
In 2020, the special tourism (tourism toilet) subsidies allocated by Hangzhou Culture, Radio, Film and Television Tourism Bureau were received. | 179,150.42 | 8,994.97 | 170,155.45 | Related to assets | ||||
In 2021, the special fund for cultural industry development of Shaanxi Province was received. | 2,000,000.00 | 36,036.04 | 1,963,963.96 | Related to assets | ||||
Total | 387,619,860.41 | 2,000,000.00 | 827,374.33 | 861,583.41 | 387,930,902.67 |
Other notes:
29. Share capital
Unit: RMB
Balance at the Start of the Period | Increased or decreased amount in this period (+/-) | Balance at the End of the Period | |||||
Shares newly issued | Bonus shares | Shares converted from capital reserves | Others | Subtotal | |||
Total shares | 2,614,694,040.00 | 2,614,694,040.00 |
Explanations of other matters: The conversion between restricted shares and unrestricted shares. Wherein: According to theDetailed Rules for the Implementation of Shareholding Reduction of Shareholders and Directors, Supervisors, SeniorManagers of Listed Companies in Shenzhen Stock Exchange, in 2021, the restriction on some of the shares held by HuangQiaoling and Liu Ping was lifted, and 78,977,686 shares were transferred to negotiable shares.
30. Capital reserves
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
Capital premium (capital share premium) | 1,269,739,701.71 | 1,269,739,701.71 | ||
Other capital reserves | -58,375,486.85 | 38,671,911.79 | -19,703,575.06 | |
Among them: (1) Amount of share-based payment included in owner’s equity | 8,676,800.00 | 8,676,800.00 | ||
(2) Other | 350,000.00 | 350,000.00 | ||
(3) Other changes in owner‘s equity other than net profit and loss of the invested entity | -67,402,286.85 | 38,671,911.79 | -28,730,375.06 | |
Total | 1,211,364,214.86 | 38,671,911.79 | 1,250,036,126.65 |
Explanations of other matters: In the current period, the book value of long-term equity investment was adjusted to RMB38,671,911.79 due to the changes in owner‘s equity other than net profit and loss of the investee Huafang Group Inc. (originallyknown as Beijing Huafang Technology Co., Ltd.) and Beijing Beite Shengdi Technology Development Co., Ltd.
31. Other comprehensive income
Unit: RMB
Item | Balance at the Start of the Period | This Period's Amount of Occurrence | Balance at the End of the Period | |||||
Before tax balance in this period | Less: recorded into other comprehensive incomes in previous period and transferred to P/L in current period | Less: Recorded into other comprehensive incomes in previous period and transferred to retained income in current period | Less: Income Tax Expense | Attributable to the Company after tax | Attributable to the minority shareholders after tax | |||
1. Other comprehensive income that cannot be reclassified into profit and loss | -48,235,465.10 | 65,363,069.56 | 97,387,862.27 | 12,995,352.13 | -45,020,144.84 | -93,255,609.94 | ||
Other | 453,614.40 | 453,614.40 |
comprehensive income that cannot be transferred to profit or loss under the equity method | ||||||||
Changes in the fair value of other equity instrument investments | -48,235,465.10 | 64,909,455.16 | 96,934,247.87 | 12,995,352.13 | -45,020,144.84 | -93,255,609.94 | ||
II. Other comprehensive income that will be reclassified into P/L | -15,089,650.65 | -42,948,852.26 | -42,952,308.67 | 3,456.41 | -58,041,959.32 | |||
Including: other comprehensive income that can be converted into gains and losses under the equity method | -16,918.29 | -16,918.29 | -16,918.29 | |||||
Currency conversion difference | -15,089,650.65 | -42,931,933.97 | -42,935,390.38 | 3,456.41 | -58,025,041.03 | |||
Other comprehensive incomes in total | -63,325,115.75 | 22,414,217.30 | 97,387,862.27 | 12,995,352.13 | -87,972,453.51 | 3,456.41 | -151,297,569.26 |
32. Surplus reserve
Unit: RMB
Item | Balance at the Start of the Period | Increased in the current period | Decreased in the current period | Balance at the End of the Period |
Statutory surplus reserve | 517,673,268.35 | 16,050,528.47 | 533,723,796.82 | |
Total | 517,673,268.35 | 16,050,528.47 | 533,723,796.82 |
33. Undistributed profits
Unit: RMB
Item | Current period | Previous Period |
Undistributed Profit before Adjustment at the End of Previous Period | 3,131,881,024.60 | 5,176,157,180.79 |
Undistributed Profit after Adjustment at the Start of the Period | 3,131,881,024.60 | 5,176,157,180.79 |
Add: net profit attributable to parent company's owner in current period | 315,130,771.75 | -1,752,398,009.60 |
Other Carry-forward Retained Earnings of the Comprehensive Income | 87,649,076.04 | -1,356,586.59 |
Less: withdrawal for statutory surplus reserve | 6,311,742.24 | |
Payable dividends on ordinary shares | 130,734,702.00 | 290,521,560.00 |
Undistributed Profit at the End of the Period | 3,397,614,428.15 | 3,131,881,024.60 |
Details of the adjustment of the undistributed profit at the beginning of the period:
1). Due to the retrospective adjustment according to the "Accounting Standards for Business Enterprises" and related newregulations, affected undistributed profit at the beginning of the period was RMB 0.00.
2). Due to changes in accounting policies, affected undistributed profit at the beginning of the period was RMB 0.00.
3). Due to the correction of major accounting errors, affected undistributed profit at the beginning of the period was RMB 0.00.
4) Due to changes in the scope of consolidation under same control, affected undistributed profit at the beginning of the period wasRMB 0.00.
5). Due to Other adjustments, affected undistributed profit at the beginning of the period was RMB 0.00.
34. Operating income and operating costs
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence | ||
Income | Cost | Income | Cost | |
Main Business | 1,132,966,126.93 | 577,332,409.96 | 860,109,435.13 | 350,061,394.54 |
Other businesses | 51,898,512.32 | 2,254,801.71 | 42,476,690.50 | 2,609,078.88 |
Total | 1,184,864,639.25 | 579,587,211.67 | 902,586,125.63 | 352,670,473.42 |
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□ Yes √ No
Related information of revenue:
Unit: RMB
Contract classification | Culture and art industry-live performance | Tourism service industry | Other businesses | Total |
Product types | 960,863,721.01 | 172,102,405.92 | 51,898,512.32 | 1,184,864,639.25 |
Including: |
(1) Hangzhou Songcheng Tourist Area | 453,420,399.83 | 453,420,399.83 | ||
(2) Sanya Romance Show Theme Park | 142,558,810.39 | 142,558,810.39 | ||
(3) Lijiang Romance Show Theme Park | 111,446,758.52 | 111,446,758.52 | ||
(4) Jiuzhai Romance Show Theme Park | 44,297,259.43 | 44,297,259.43 | ||
(5) Guilin Romance Show Theme Park | 87,505,615.80 | 87,505,615.80 | ||
(6) Zhangjiajie Romance Show Theme Park | 31,385,778.76 | 31,385,778.76 | ||
(7) Xi’an Romance Show Theme Park | 16,419,966.44 | 16,419,966.44 | ||
(8) Shanghai Romance Show Theme Park | 73,829,131.84 | 73,829,131.84 | ||
(9) E-business handling fee | 73,045,802.16 | 73,045,802.16 | ||
(10) Design planning fee | 99,056,603.76 | 99,056,603.76 | ||
(11) Other businesses | 51,898,512.32 | 51,898,512.32 | ||
Contract type | 960,863,721.01 | 172,102,405.92 | 51,898,512.32 | 1,184,864,639.25 |
Including: | ||||
(1) Revenue from contract | 960,863,721.01 | 172,102,405.92 | 7,713,516.33 | 1,140,679,643.26 |
Classified by the time of commodity transfer | 960,863,721.01 | 172,102,405.92 | 7,713,516.33 | 1,140,679,643.26 |
Including: | ||||
Confirm at time points | 960,062,953.02 | 73,045,802.16 | 2,122,261.72 | 1,035,231,016.90 |
Confirm within a certain period of time | 800,767.99 | 99,056,603.76 | 5,591,254.61 | 105,448,626.36 |
(2) Rental income | 44,184,995.99 | 44,184,995.99 |
Information related to performance obligations:
N/AInformation related to the transaction price allocated to the remaining obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations with signed contractswhich have not yet been performed or completed, mostly design and planning fees, was RMB 78,141,509.51, and is expected to berecognized as revenue in 2022-2025.
35. Taxes and surcharges
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Urban Maintenance and Construction Tax | 2,307,498.26 | 944,001.17 |
Education Surcharges | 1,786,265.26 | 827,724.98 |
House property tax | 13,970,447.38 | 7,447,753.53 |
Land usage tax | 3,874,673.93 | 1,928,223.64 |
Vehicle and vessel use tax | 39,500.12 | 49,250.44 |
Stamp duty | 346,812.15 | 709,855.81 |
Water conservancy construction fund | 49,083.16 | 26,687.48 |
Total | 22,374,280.26 | 11,933,497.05 |
36. Sales expenses
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Advertising cost | 43,026,950.43 | 45,899,163.03 |
Salary and labor fees | 14,210,112.72 | 9,262,823.51 |
Rental fees | 1,710,301.91 | 1,546,072.36 |
Fees for technical services | 1,992,998.55 | 878,308.35 |
Material consumption | 1,738,140.46 | 2,451,944.75 |
Traveling expense | 1,021,704.84 | 976,777.55 |
Others | 2,484,619.87 | 2,634,660.75 |
Total | 66,184,828.78 | 63,649,750.30 |
37. Management expenses
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Salary and labor fees | 81,656,755.74 | 75,408,829.46 |
Amortization of intangible assets and other assets | 64,750,586.94 | 64,348,021.07 |
Consulting fee | 7,984,043.35 | 8,182,473.68 |
Traveling expense | 5,503,749.44 | 5,624,695.71 |
Depreciation charge | 43,218,519.26 | 75,830,364.58 |
Business entertainment expense | 10,543,859.12 | 10,034,078.60 |
Accumulative depreciation of right-to-use assets | 8,829,389.24 | |
Rental fees | 646,798.22 | 5,086,107.77 |
Material consumption | 8,281,709.14 | 9,364,375.32 |
Office expense | 5,722,377.71 | 5,579,245.84 |
Trademark royalty | 1,886,792.35 | 9,433,962.00 |
Afforestation fee | 923,394.44 | 2,321,906.68 |
Maintenance cost | 2,310,282.30 | 3,541,464.14 |
Others | 13,926,789.18 | 13,328,642.89 |
Total | 256,185,046.43 | 288,084,167.74 |
Other notes:
The following theme parks of the Company are affected by COVID-19 and have suffered closure in the current and last periods. Theamount originally recorded in the operating cost during the Company's closure periods should be included in the managementexpenses accordingly.
38. R&D expenses
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Salary and labor fees | 22,132,681.05 | 21,062,406.05 |
Fees for technical services | 1,584,062.23 | 324,329.47 |
Design fee | 52,886.00 | 215,813.33 |
Rental fees | 617,847.90 | |
Amortization of intangible assets and other assets | 476,079.00 | 314,907.89 |
Traveling expense | 167,631.52 | 589,458.88 |
Office expense | 762,421.73 | 698,738.20 |
Depreciation charge | 9,275,410.13 | 7,404,031.20 |
Material consumption | 5,577,989.23 | 5,295,522.43 |
Others | 1,145,970.46 | 964,908.65 |
Total | 41,175,131.35 | 37,487,964.00 |
39. Financial expenses
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Interest expense | 32,789,597.06 | 7,822,986.14 |
Including: Interest of lease liabilities | 18,870,909.59 | |
Less: interest income | 27,293,268.17 | 32,572,127.48 |
P/L on foreign exchange | -9,280,491.79 | 9,952,753.34 |
Others | 2,829,585.46 | 1,952,949.85 |
Total | -954,577.44 | -12,843,438.15 |
40. Other incomes
Unit: RMB
Sources of other incomes | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Government subsidies | 3,686,355.09 | 34,307,513.06 |
Input VAT (plus credit) deduction | 874,146.85 | 264,647.17 |
Total | 4,560,501.94 | 34,572,160.23 |
41. Investment income
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Long-term equity investment income measured by equity method | 103,892,278.09 | -5,356,968.22 |
Investment income from disposal of long-term equity investment | 52,752,751.62 | |
Investment income from disposal of trading financial assets | 25,195,317.85 | 19,371,860.52 |
Total | 181,840,347.56 | 14,014,892.30 |
42. Income from changes in fair value
Unit: RMB
Source of the income from changes in fair value | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Trading Financial Assets | -12,098,344.02 | 247,726.31 |
Total | -12,098,344.02 | 247,726.31 |
43. Credit impairment loss
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Bad debt losses of other receivables | -16,771,366.46 | -32,551,183.69 |
Bad debt losses of accounts receivable | 189,684.76 | -188,793.22 |
Total | -16,581,681.70 | -32,739,976.91 |
44. Asset impairment loss
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Long-term equity investment impairment loss | -1,861,297,284.90 | |
Goodwill impairment loss | -10,082,554.54 | -16,422,870.82 |
Total | -10,082,554.54 | -1,877,720,155.72 |
45. Income from asset disposal
Unit: RMB
Sources of the asset disposal income | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Total gains from disposal of non-current assets | 4,512,572.52 | 676,435.92 |
Of which: gains from disposal of fixed assets | 676,435.92 | |
Gains from disposal of intangible assets | 4,512,572.52 | |
Other long-term asset disposal gains | ||
Total | 4,512,572.52 | 676,435.92 |
46. Non-operating income
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence | Amount recorded into non-recurring profit and loss in current period |
Government subsidies | 96,099.37 | 1,046,433.96 | 96,099.37 |
Liquidated damages, fine income | 960,052.65 | 1,302,066.30 | 960,052.65 |
Waste disposal income | 610,301.51 | 466,299.22 | 610,301.51 |
Accounts payable that cannot be paid | 3,963,939.04 | 10,120.52 | 3,963,939.04 |
Others | 460,735.42 | 417,457.14 | 460,735.42 |
Total | 6,091,127.99 | 3,242,377.14 | 6,091,127.99 |
Government subsidies recorded into current period P/L:
Unit: RMB
Subsidy items | Distributing Entity | Distributing Reason | Types of Nature | Subsidies Influence Profit and Loss in the Current Year or not | Special Subsidy or not | This period's amount of occurrence | Previous period's amount of occurrence | Related to assets/related to income |
Incentives for new enterprises above designated size | 240,000.00 | Related to income | ||||||
The special support funds for tourism development | 100,000.00 | Related to income | ||||||
Award for investment promotion | 100,000.00 | Related to income | ||||||
Subsidies for cultural industry | 300,000.00 | Related to income | ||||||
Others | 96,099.37 | 306,433.96 | Related to income | |||||
Total | 96,099.37 | 1,046,433.96 |
47. Non-operating expenses
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence | Amount recorded into non-recurring profit and loss in current period |
Loss from damage and destruction of non-current assets | 32,221,090.95 | 38,302,318.05 | 32,221,090.95 |
Public welfare donations | 300,000.00 | ||
Non-public welfare donations | 336,964.00 | 93,000.00 | 336,964.00 |
Compensation expenditure | 1,372,732.53 | 2,020,885.17 | 1,372,732.53 |
Others | 782,457.42 | 291,676.21 | 782,457.42 |
Total | 34,713,244.90 | 41,007,879.43 | 34,713,244.90 |
48. Income tax expenses
(1) Income tax expenses table
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Current income tax expense | 51,356,736.47 | 42,291,502.79 |
Deferred income tax expense | -10,109,254.82 | -12,456,333.68 |
Total | 41,247,481.65 | 29,835,169.11 |
(2) Reconciliation of accounting profits and income tax expenses
Unit: RMB
Item | This Period's Amount of Occurrence |
Total Profit | 343,841,443.05 |
Income tax expense calculated at statutory/applicable tax rate | 85,960,360.76 |
Impact by applying different tax rates to subsidiaries | -40,338,872.58 |
Impact of income tax before adjustment in this period | -509,369.03 |
Impact of non-taxable income | -45,027,889.14 |
Impact of the non-deductible costs, expenses and losses | 18,327,191.74 |
The effect of using deductible losses of deferred income tax assets that have not been recognized in the previous period | -10,003,518.88 |
The effect of unrecognized deductible temporary differences of deferred income tax assets or unrecognized deductible losses in the current period | 32,839,578.78 |
Income tax expense | 41,247,481.65 |
49. Other comprehensive income
For details, please refer to Note 7 (31) Other Comprehensive Income.
50. Items of Cash Flow Statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Interest Income | 27,232,915.27 | 35,986,922.00 |
Non-operating Revenue | 2,031,089.58 | 2,185,822.66 |
Government financial subsidies | 4,955,080.13 | 40,101,488.53 |
Receipt of current account | 193,637,431.27 | 25,497,842.41 |
Total | 227,856,516.25 | 103,772,075.60 |
(2) Other cash payments relating to operating activities
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Expenses | 134,347,310.65 | 133,608,090.57 |
Non-Operating Expenses | 2,488,371.60 | 2,705,561.38 |
Payment of current account | 5,259,130.77 | 20,821,514.98 |
Total | 142,094,813.02 | 157,135,166.93 |
(3) Cash payments related to financing activities
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Lease payment | 39,531,231.21 | |
Total | 39,531,231.21 |
51. Supplementary information about Cash Flow Statement
(1) Supplementary information about the Cash Flow Statement
Unit: RMB
Supplementary information | Amount of this period | Amount of Previous Period |
1. Reconciliation of net profit to cash flows from operational activities: | -- | -- |
Net Profit | 302,593,961.40 | -1,766,945,878.00 |
Plus: Credit impairment loss | 16,581,681.70 | 32,739,976.91 |
Provision for Impairment of Assets | 10,082,554.54 | 1,877,720,155.72 |
Depreciation of fixed assets, oil and gas assets, productive biological assets | 241,582,094.98 | 201,385,250.67 |
Depreciation of right-of-use assets | 34,607,328.24 | |
Amortization of Intangible Assets | 50,825,412.01 | 56,669,812.67 |
Amortization of long-term prepaid expenses | 59,765,277.28 | 35,034,022.89 |
Losses on disposal of fixed assets, intangible assets and other long-term assets | -4,512,572.52 | -676,435.92 |
(mark "-" for incomes) | ||
Losses on scrapping of fixed assets (mark "-" for incomes) | 32,221,090.95 | 38,302,318.05 |
Losses on fair value changes (mark "-" for incomes) | 12,098,344.02 | -247,726.31 |
Financial expenses (mark "-" for incomes) | 23,509,105.27 | 17,775,739.48 |
Losses on investment (mark "-" for incomes) | -181,840,347.56 | -14,014,892.30 |
Decrease on deferred income tax assets (mark "-" for increases) | -7,057,573.77 | -9,318,905.44 |
Increase on deferred income tax liabilities (mark "-" for decreases) | -3,051,166.37 | -3,137,428.24 |
Decrease on inventories (mark "-" for increases) | 902,490.69 | -1,993,817.28 |
Decrease on operational receivables (mark "-" for increases) | 101,886,633.14 | -44,275,900.28 |
Increase on operational payables (mark "-" for decreases) | 60,279,495.79 | -25,074,392.68 |
Others | ||
Net cash flow generated by operating activities | 750,473,809.79 | 393,941,899.94 |
2. Major investing and financing activities not involving cash receipts and payment: | -- | -- |
Conversion of debt into capital | ||
Convertible corporate bonds due within one year | ||
Fixed assets under financing lease | ||
3. Net changes in cash and cash equivalents: | -- | -- |
Closing balance of cash | 1,858,747,864.04 | 1,337,776,253.98 |
Less: opening balance of cash | 1,337,776,253.98 | 1,781,710,027.35 |
Add: closing balance of cash equivalents | ||
Less: opening balance of cash equivalents | ||
Net additions to balance of equivalents | 520,971,610.06 | -443,933,773.37 |
(2) Net amount of cash received from disposal of subsidiaries in the current period
Unit: RMB
Amount | |
Cash or cash equivalents received from disposal of subsidiaries in the current period | 109,199,300.00 |
Including: | -- |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 109,199,300.00 |
Less: Cash and cash equivalents held by subsidiaries on date of loss of control | 118,376.92 |
Including: | -- |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 118,376.92 |
Including: | -- |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | |
Net cash amount received from disposal of subsidiaries | 109,080,923.08 |
(4) Composition of cash and cash equivalents
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Ⅰ. Cash | 1,858,747,864.04 | 1,337,776,253.98 |
Including: cash on hand | 3,428,776.09 | 2,437,262.81 |
Bank deposit for payment at any time | 1,707,365,801.91 | 1,285,458,896.93 |
Other cash and bank balances for payment at any time | 147,953,286.04 | 49,880,094.24 |
Ⅲ. Closing balance of cash and cash equivalents | 1,858,747,864.04 | 1,337,776,253.98 |
52. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: RMB
Item | Closing balance in foreign currencies | Exchange rate for conversion | Closing Balance Converted into RMB |
Cash and Bank Balances | -- | -- | 283,928,281.42 |
Including: USD | 43,468,368.08 | 6.37570 | 277,141,274.37 |
HKD | 2,282,936.68 | 0.81760 | 1,866,529.03 |
AUD | 909,613.36 | 4.62200 | 4,204,232.95 |
THB | 3,746,443.52 | 0.19118 | 716,245.07 |
(2) Notes on overseas business entities, including that for the important overseas business entities, theoverseas main premises, functional currency and selection basis shall be disclosed. If there are changes on itsfunctional currency, the causes for the changes shall be disclosed as well.
√ Applicable □ Not applicable
The overseas operating entities of the company include Songcheng Performance International Development Co., Ltd., Songcheng(Australia) Entertainment Pty Ltd., Songcheng (Australia) Entertainment Pty Ltd.., Songcheng Holdings (Thailand) Co., Ltd. andSongcheng (Pattaya) International Culture Co., Ltd. The operating place respectively in Hong Kong, China, Queensland, Australia,Bangkok, Thailand, and Pattaya, Thailand. The standard currency for bookkeeping is Hong Kong dollars, Australian dollars and Thaibaht by considering the needs of local business development.
53. Government grants
(1) Basic information about government subsidies
Unit: RMB
Types | Amount | Items reported | Amount taken to current P&L |
Government subsidies related to daily operating activities | 2,000,000.00 | Deferred Income | 827,374.33 |
Government subsidies related to daily operating activities | 2,858,980.76 | Other Incomes | 2,858,980.76 |
Government subsidies unrelated to daily operating activities | 96,099.37 | Non-operating Revenue | 96,099.37 |
(2) Return of government subsidies
□ Applicable √ Not applicable
54. Lease
1. The Company acts as the lessee
Item | Amount of this period |
Interest of lease liabilities | 18,870,909.59 |
Short-term lease expenses recorded by a simplified approach in the asset cost or current profit or loss | 2,784,030.36 |
Total cash outflows related to leases | 42,315,261.57 |
2. The Company acts as the lessor
(1) Operating lease
Amount of this period | |
Income from operating leases | 44,184,995.99 |
Including: Income related to variable lease payments not included in lease receipts |
VIII. Changes in the Scope of Consolidation
1. Disposal of subsidiaries
Is there any situation where disposal of investment in subsidiaries in a single transaction causes loss of control
√ Yes □ No
Unit: RMB
Name of Subsidiaries | Payment for equity disposal | Equity disposal ratio | Equity disposal method | Time of losing control | Basis for determining the time when the control right is lost | Difference in net assets of the subsidiary corresponding to the disposal price and disposal investment in the consolidated statement | Ratio of remaining equity on the date of loss of control (%) | Book value of remaining equity on the date of loss of control | Fair value of remaining equity on the date of loss of control | Gain or loss from remaining equity re-measured at fair value | The determination method and main assumption of the fair value of the remaining equity on the date of loss of control | Amount of other comprehensive income related to the equity investment of the subsidiary transferred to the investment profit and loss |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 109,199,300.00 | 100.00% | Sell in cash | Monday, April 12, 2021 | Date of cessation of rights and interests | 52,752,751.62 |
Other notes:
On April 7, 2021, the Company and Longquan Tourism Investment Development Co., Ltd. signed the "Equity Transfer Contract"regarding the equity and debts of Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd., a wholly-ownedsubsidiary of the Company. The subject matter of the transfer was 100% equity of Zhejiang Songcheng Longquan Mountain TourismDevelopment Co., Ltd. held by the Company and all debts incurred prior to the closing of equity. The transaction price refers to theLi Jing Ping Zi [2021] No. 113 issued by Lijiang Economic Assets Appraisal Co., Ltd. Upon mutual consultation, the transactionconsideration was RMB 109,199,300 at the transaction price for 100% of the equity and RMB 166,800,700 at the liquidation pricefor all debts incurred prior to the closing date of equity. The total transaction price was RMB 276,000,000.Is there any situation where disposal of investment in subsidiaries is achieved through multiple transactions in various stages,causing loss of control in this period
□ Yes √ No
2. Changes in the scope of combination for other reasons
Explanations on the changes in the scope of consolidation caused by other reasons (for example, newly established subsidiaries,subsidiaries clearing, etc.) and relevant information:
1. 1 company is added to the consolidation scope in the current period due to:
New Merged Units This Year | Investment Ratio | Notes |
Global Bacchus Limited | 100.00% | New in 2021 |
2. 1 company is removed from the consolidation scope due to:
Reduced Merged Units This Year | Investment Ratio | Notes |
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 100.00% | Equity sale in 2021 |
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Name of Subsidiaries | Main Place of Business | Registered Address | Business Nature | Shareholding Percentage | Acquisition Method | |
Direct | Indirect | |||||
Hangzhou Paradise Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Development of tourism project | 100.00% | Establishment | |
Sanya Romance Tourism Performance Co., Ltd. | Sanya, Hainan | Sanya, Hainan | Theme park + Art performance | 100.00% | Establishment | |
Lijiang Chama Ancient City Tourism Development Co., Ltd | Lijiang, Yunnan | Lijiang, Yunnan | Theme park + Art performance | 100.00% | Establishment | |
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd | Jiuzhaigou, Aba, Sichuan | Jiuzhaigou, Aba, Sichuan | Theme park + Art performance | 100.00% | Business combination not under common control | |
Hangzhou Songcheng Tourism Development Co., Ltd | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Network technology, e-commerce | 100.00% | Establishment |
Hanghzou Songcheng Dumuqiao Travel Services Co., Ltd | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Domestic tourism, inbound tourism | 100.00% | Establishment | |
Jiuzhaigou Tibetan Mystery Culture Co., Ltd | Jiuzhaigou, Aba, Sichuan | Jiuzhaigou, Aba, Sichuan | Development of tourism project | 60.00% | Business combination not under common control | |
Hangzhou Songcheng Technology Development Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Technology development, technology services and achievement transfer of smart entertainment products; sales and consulting services of technology products; Internet information services | 100.00% | Establishment | |
Songcheng Performance International Development Co., Ltd. | Hong Kong, China | Hong Kong, China | Foreign investment; cultural performance; leisure tourism; international cultural and entertainment cooperation and development | 100.00% | Establishment | |
Songcheng (Australia) Holdings Pty Ltd | Queensland, Australia | Queensland, Australia | Cultural performance; leisure tourism; international cultural and entertainment cooperative development | 100.00% | Establishment | |
Songcheng (Australia) Entertainment Pty Ltd. | Queensland, Australia | Queensland, Australia | Cultural performance; leisure tourism; international cultural, film and television entertainment cooperation development | 100.00% | Establishment | |
Shanghai Songcheng World Expo Performance Development Co., Ltd | Shanghai | Shanghai | Performance venue management, planning for cultural and artistic exchange activities, industrial investment, investment management | 88.00% | Establishment | |
Songcheng | Shanghai | Shanghai | Performance venues, | 100.00% | Establishment |
Performance Development (Shanghai) Co., Ltd. | performance brokers, entertainment venues (singing and dancing entertainment venues, amusement entertainment venues), travel agency business, cultural and artistic exchange activities planning, public relations campaign planning | |||||
Guilin Lijiang Romance Performance Development Co., Ltd | Yangshuo, Guilin, Guangxi | Yangshuo, Guilin, Guangxi | Tourism project investment and development, cultural activities planning, cultural communication planning, leisure industry investment and development. | 70.00% | Establishment | |
Ningxiang Songcheng Tourism Development Co., Ltd. | Changsha, Hunan | Changsha, Hunan | Planning, design, development and management of scenic spot; literary and artistic creation services; engineering project management services; | 100.00% | Establishment | |
Zhangjiajie Romance Performance Development Co., Ltd | Zhangjiajie, Hunan | Zhangjiajie, Hunan | Operating performances and economic business; various performances; parking, performance venue management, tourism services; theme park development and operation, cultural activities planning | 100.00% | Establishment | |
Songcheng Technology Development Co.,Ltd. | Yili, Xinjiang | Yili, Xinjiang | Technology development, technical service and achievement transfer of smart entertainment products | 100.00% | Establishment | |
Songcheng Tourism Development Co., Ltd. | Yili, Xinjiang | Yili, Xinjiang | Tourism resource development, tourism planning and design, artistic creation, brand and marketing planning of tourist attractions | 100.00% | Establishment |
Songcheng Performance Management Co., Ltd. | Yili, Xinjiang | Yili, Xinjiang | Performance, artistic creation and choreography, performance and brokerage business, performance management | 100.00% | Establishment | |
Songcheng Dumuqiao Network Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Network technology; computer software and hardware; data processing and analysis technology development; technical consulting, services, and transfer of achievements; booking tickets of scenic spots, air tickets, performance tickets and room reservations for customers; tourist information consulting, domestic tourism, and inbound tourism | 100.00% | Establishment | |
Xi'an Romance Performance Development Co., Ltd | Xi'an, Shanxi | Xi'an, Shanxi | Performance activities; performance brokerage; catering services; tourism services; theme park development and operation; | 80.00% | Establishment | |
Zhejiang Songcheng Xitang Performance Valley Performance Development Co., Ltd | Jiashan county, Jiaxing city, Zhejiang | Jiashan county, Jiaxing city, Zhejiang | Organization and planning of cultural and artistic exchange activities; cultural communication planning; tourism services; theme park development and operation; | 100.00% | Establishment | |
Foshan South Sea Qiao Mountain Cultural Tourism Development Co., Ltd | Foshan, Guangdong | Foshan, Guangdong | Organization and planning of cultural and artistic exchange activities; cultural communication planning; tourism services; theme park development and operation; | 100.00% | Business combination not under common control | |
Hangzhou Songguo Cultural | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Sales: tourism supplies and arts & crafts (excluding gold ornaments), daily | 100.00% | Establishment |
Creative Co., Ltd. | necessities, local specialties (excluding food) | |||||
Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Music performances, opera performances, cabaret performances, acrobatic performances; performance brokers; smart entertainment products; cultural creative design | 100.00% | Establishment | |
Songcheng Holdings (Thailand) Co., Ltd. | Bangkok, Thailand | Bangkok, Thailand | Foreign investment; cultural performance; leisure tourism; international cultural and entertainment cooperation and development | 100.00% | Establishment | |
Songcheng (Pattaya) International Culture Co., Ltd. | Pattaya, Thailand | Pattaya, Thailand | Cultural performance, including live shows of theater performances (singing and dancing, acrobatics, drama, music, etc.); high-tech interactive experience; cultural activities planning, tourism e-commerce | 65.00% | Establishment | |
Zhuhai Songcheng Performance Kingdom Co., Ltd | Zhuhai, Guangdong | Zhuhai, Guangdong | Music performances, opera performances, cabaret performances; acrobatics, tourism services, theme park development and operation, cultural activities planning and organization, cultural communication planning | 100.00% | Establishment | |
Zhuhai Southern Film and Television Cultural Industry Co., Ltd. | Zhuhai, Guangdong | Zhuhai, Guangdong | Project development, operation and management of film and television industry; development, operation and management of tourism projects; real estate development; business services and commercial wholesale and retail | 100.00% | Business combination not under common control |
Zhuhai Huayin Landscaping Co., Ltd. | Zhuhai, Guangdong | Zhuhai, Guangdong | Landscaping project; planting and sales of flowers and seedlings | 55.00% | Business combination not under common control | |
Songcheng Brand Management Co., Ltd. | Yili, Xinjiang | Yili, Xinjiang | Tourism resource development; tourism planning and design; artistic creation; brand planning of scenic spots; marketing planning of scenic spots; scenic project construction; domestic tourism, inbound tourism and ticket agency; ticket sales of scenic spots; | 100.00% | Establishment | |
Romance Show Management Co., Ltd. | Yili, Xinjiang | Yili, Xinjiang | Performance: singing and dancing, opera, acrobatics; artistic creation and choreography; operating performance and brokerage business; performance management | 100.00% | Establishment | |
Global Bacchus Limited | British Virgin Islands | British Virgin Islands | Outbound investment | 100.00% | Establishment |
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Name of Subsidiaries | Minority shareholding ratio of shareholders | Profit and loss attributed to minority shareholders in the current period | Dividends declared to minority shareholders in the current period | Balance of equity of minority shareholders at the end of the period |
Shanghai Songcheng World Expo Performance Development Co., Ltd | 12.00% | -6,234,490.03 | -11,006,442.15 | |
Guilin Lijiang Romance Performance Development Co., Ltd | 30.00% | 258,164.47 | 196,247,955.38 | |
Xi'an Romance Performance Development Co., Ltd | 20.00% | -7,096,906.89 | 110,263,277.41 |
(3) Main financial information of important non-wholly-owned subsidiaries
Unit: RMB
Name of Subsidiaries | Balance at the End of the Period | Balance at the Start of the Period | ||||||||||
Current Assets: | Non-current Assets: | Total assets | Current Liabilities: | Non-current Liabilities: | Total Liabilities | Current Assets: | Non-current Assets: | Total assets | Current Liabilities: | Non-current Liabilities: | Total Liabilities | |
Shanghai Songcheng World Expo Performance Development Co., Ltd | 62,955,903.78 | 685,152,041.03 | 748,107,944.81 | 642,022,042.32 | 65,806,253.71 | 707,828,296.03 | 29,034,455.03 | 364,658,450.24 | 393,692,905.27 | 235,616,750.05 | 65,842,422.90 | 301,459,172.95 |
Guilin Lijiang Romance Performance Development Co., Ltd | 234,262,857.25 | 462,516,982.81 | 696,779,840.06 | 40,932,488.67 | 1,687,500.12 | 42,619,988.79 | 216,867,003.96 | 488,091,553.05 | 704,958,557.01 | 49,871,753.88 | 1,787,500.08 | 51,659,253.96 |
Xi'an Romance Performance Development Co., Ltd | 227,652,751.44 | 354,897,775.18 | 582,550,526.62 | 29,270,175.59 | 1,963,963.96 | 31,234,139.55 | 100,441,875.70 | 334,190,960.08 | 434,632,835.78 | 42,815,396.19 | 16,518.08 | 42,831,914.27 |
Unit: RMB
Name of Subsidiaries | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence | ||||||
Operating income | Net Profit | --Total comprehensive income | Cash flow from operating activities | Operating income | Net Profit | --Total comprehensive income | Cash flow from operating activities | |
Shanghai Songcheng World Expo Performance Development Co., Ltd | 73,962,925.49 | -51,954,083.54 | -51,954,083.54 | 309,304,761.73 | 436,837.02 | -20,682,857.98 | -20,682,857.98 | 190,165,248.17 |
Guilin Lijiang Romance Performance Development Co., Ltd | 91,145,694.57 | 860,548.22 | 860,548.22 | 42,511,148.59 | 56,586,027.07 | -14,052,004.66 | -14,052,004.66 | -135,213,013.79 |
Xi'an Romance Performance Development Co., Ltd | 16,784,668.25 | -35,484,534.44 | -35,484,534.44 | -198,698,474.76 | 25,002,178.14 | -11,935,323.79 | -11,935,323.79 | 479,044.63 |
2. Equity in joint venture arrangements or affiliates
(1) Important joint ventures or associates
Names of associates and joint ventures | Main Place of Business | Registered Address | Business Nature | Shareholding Percentage | Method for accounting the investment in associates and joint ventures | |
Direct | Indirect | |||||
Huafang Group Inc. (formerly known as Beijing HuafangTechnology Co., Ltd.) | Beijing | Beijing | Internet information service, performance brokerage business, business on music entertainment products through information network, competition activities | 37.06% | Equity method | |
Beijing Beite Shengdi Technology Development Co., Ltd. | Beijing | Beijing | Technical development, system integration, installation and commissioning of stage machinery, stage machinery control, lighting, and sound equipment; stage craft design and consultation; | 20.00% | Equity method |
(2) Main financial information of important associates
Unit: RMB
Closing balance / accrual of current period | Opening balance / accrual of previous period | |||
Huafang Group Inc. (formerly known as Beijing HuafangTechnology Co., Ltd.) | Beijing Beite Shengdi Technology Development Co., Ltd. | Beijing Huafang Technology Co., Ltd. (formerly known as Beijing Six Rooms Technology Co., Ltd.) | Beijing Beite Shengdi Technology Development Co., Ltd. | |
Current Assets: | 1,799,207,570.53 | 307,299,025.07 | 1,396,296,667.81 | 379,808,015.42 |
Non-current Assets: | 492,406,372.49 | 22,685,816.27 | 486,246,315.46 | 3,393,303.08 |
Total assets | 2,291,613,943.02 | 329,984,841.34 | 1,882,542,983.27 | 383,201,318.50 |
Current Liabilities: | 330,886,258.97 | 188,283,989.40 | 367,981,352.22 | 240,656,075.91 |
Non-current Liabilities: | 48,377,202.42 | 35,344,150.95 | 10,851,396.40 | 1,300,010.10 |
Total Liabilities | 379,263,461.39 | 223,628,140.35 | 378,832,748.62 | 241,956,086.01 |
Minority Shareholders' Equity | -4,903.84 | |||
Equity attributable to shareholders of the parent company | 1,912,350,481.63 | 106,356,700.99 | 1,503,710,234.65 | 141,250,136.33 |
Share of net assets calculated based on shareholding ratio | 708,717,088.49 | 21,271,340.20 | 557,275,012.96 | 28,250,027.27 |
Adjustments | 935,652,356.70 | 11,912,562.29 | 935,652,356.70 | 13,362,228.18 |
--Goodwill | 935,652,356.70 | 16,825,620.50 | 935,652,356.70 | 16,825,620.50 |
Unrealized Profit from Internal Transactions | -4,913,058.21 | -3,463,392.32 | ||
Book value of equity investment in associates | 1,644,369,445.19 | 33,183,902.49 | 1,492,927,369.66 | 41,612,255.45 |
Operating income | 4,539,988,143.60 | 468,421,976.73 | 3,777,442,691.41 | 321,940,699.67 |
Net Profit | 320,716,642.08 | 3,637,982.99 | -10,799,124.63 | 5,477,097.14 |
Net profit from discontinued operations | ||||
Other Comprehensive Incomes | 1,178,348.91 | 3,431,790.00 | ||
--Total comprehensive income | 321,894,990.99 | 3,637,982.99 | -7,367,334.63 | 5,477,097.14 |
Explanation of other matters: The above data of statement was presented based on the fair value of the identifiable assets andliabilities of the investee when the investment was obtained.X. Risks Relating to Financial InstrumentsThe company faces various financial risks in the course of its operations: credit risk, liquidity risk and market risk (including exchangerate risk, interest rate risk and other price risks). The Board of Directors of the company is fully responsible for the determination ofrisk management objectives and bears the corresponding ultimate responsibility. The Board of Directors requires the managementto design and implement procedures that can ensure the effective implementation of risk management objectives and policies. Thecompany’s management reviews the effectiveness of the implemented procedures and the rationality of risk managementobjectives and policies through quarterly reports submitted by the Financial Department. The Treasury Department of the companyaudits the risk management policies and procedures, and report relevant findings to the company’s management.The overall objective of the Company's risk management is to formulate risk management policies that can minimize risks withoutaffecting the Company's competitiveness and adaptability to changes too much.The company diversifies the risk of financial instruments by appropriate diversified investment and business portfolio. In addition,corresponding risk management policy is formulated to reduce the risk of concentration in single industry, specific region or specificcounter party.(I) Credit risk
Credit risk refers to the risk of the company's financial losses due to the failure of the counterparty to perform its contractualobligations.The company’s credit risk mainly arises from monetary funds, notes receivable, accounts receivable, accounts receivable financing,other receivables, debt investments, other debt investments and financial guarantee contracts, investments in debt instruments andderivative financial assets recognized in impairment testing scope, which are measured at fair value and related changes arerecognized in the current profit and loss, etc., On the Balance Sheet date, the book value of the company’s financial assets hasrepresented its maximum credit risk exposure.The company’s monetary funds are mainly bank deposits deposited in state-owned banks and other large and medium-sized listedbanks with high credit ratings. The company believes that there is no major credit risk, and there is almost no significant lossresulting from breach of contract of the banks.In addition, for bills receivable, accounts receivable, financing receivables and other receivables, the company sets relevant policiesto control credit risk exposure. Before signing contracts, the company assesses the credit risk of new customers. The company setsup credit limit and credit period according to different sales scale Generally, the company adopts more prudent credit policy for newcustomers and increases the proportion of advance receipts. The company promptly collects the accounts receivable fromcustomers, and shortens or cancels the credit period for customers with bad credit records. At the same time, the company ensuresthat the overall credit risk of the company is under control through quarterly review of the aging analysis of accounts receivable ofexisting customers.(II) Liquidity riskLiquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by cash or other financialassets. The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is under theconcentrated control of the Company's Financial Department. Through monitoring the balance of cash and securities cashable atany time and rolling forecasting the cash flow in the next 12 months, the Financial Department ensures that the Company hassufficient funds to repay its debts under all reasonable predictions. At the same time, the Finance Department constantly monitorswhether the company complies with the provisions of the loan agreement, and obtains commitments from major financialinstitutions to provide sufficient reserve funds to meet short-term and long-term funding needs.(III) Market RiskThe market risk of financial instruments refers to the risk of fluctuation at fair value of financial instruments or future cash flowswith the change of market prices, including exchange rate risks and interest rate risks.
1. Interest rate risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the changeof market interest rate.Interest-bearing financial instruments with fixed and floating interest rates expose the company to fair value interest rate risk andcash flow interest rate risk, respectively. The company determines the proportion of fixed and floating interest rate instrumentsbased on the market environment, and maintains appropriate combination of fixed and floating interest rate instruments throughregular review and monitoring.As of December 31, 2021, when other variables remain unchanged, if the borrowing rate calculated at the floating interest rateincreases or decreases by 100 base points, the net profit of the Company will decrease or increase by RMB 2,197,937.50 (Thursday,December 31, 2020: RMB 1,235,208.33). The management believes that 100 basis points reasonably reflect the range of possiblechanges in interest rates in the coming year.
2. Exchange rate risk
Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due to changes inforeign exchange rates.The company tries its best to match foreign currency income with foreign currency expenditures. At the same time, it constantlymonitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize foreign exchange risks. In
addition, the company signs forward foreign exchange contracts or currency swap contracts to achieve the purpose of avoidingexchange rate risks.The foreign exchange risks faced by the company are mainly from financial assets and financial liabilities in U.S. dollars, Hong Kongdollars, Australian dollars, and Thai baht. The amounts of foreign currency financial assets and liabilities converted into RMB arelisted as follows:
Item | Balance at the End of the Period | ||||
USD | HKD | AUD | THB | Total |
Cash and Bank Balances
Cash and Bank Balances | 277,141,274.37 | 1,866,529.03 | 4,204,232.95 | 716,245.07 | 283,928,281.42 |
Trading financial assets (financial assets that are measured at fair value and related changes are recognized in current profit and loss) | 2,670,942.90 | 2,670,942.90 | |||
Other Equity Instruments | 9,026,036.59 | 9,026,036.59 |
Item | Balance at the end of the previous year | ||||
USD | HKD | AUD | THB | Total | |
Cash and Bank Balances | 106,339,810.45 | 2,516,908.66 | 6,672,956.60 | 831,764.35 | 116,361,440.06 |
Trading financial assets (financial assets that are measured at fair value and related changes are recognized in current profit and loss) | 172,445,378.26 | 6,589,730.08 | 179,035,108.34 | ||
Other Equity Instruments | 9,291,430.32 | 9,291,430.32 |
The foreign exchange risk arising from the above-mentioned foreign currency balance assets may have certain impact on operatingperformance of the company. The company pays close attention to the impact of exchange rate changes on foreign exchange risksof the company, and takes corresponding measures to avoid foreign exchange risks.XI. Disclosure of Fair ValuesThe input values applied in fair value measurement are divided into three levels:
The first-level input value is the unadjusted quotation of the same asset or liability in the active market that can be obtained on themeasurement date.The second-level input value is the directly or indirectly observable input value of related assets or liabilities other than thefirst-level input value.The third-level input value is the unobservable input value of related assets or liabilities.The level of the fair value measurement result is determined by the lowest level of the input value which is of great significance tothe fair value measurement as a whole.
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Item | Fair values at period-end | |||
First level measurement at fair value | Second level measurement at fair value | Third level measurement at fair value | Total | |
I. Constant measurement at fair value | -- | -- | -- | -- |
(I) Trading Financial Assets | 2,670,942.90 | 2,670,942.90 | ||
1. Financial assets at fair value through profit or loss in this period | 2,670,942.90 | 2,670,942.90 | ||
(1) Investment in debt instruments | ||||
(2) Investment in equity instrument | ||||
(3)Derivative Financial Assets | 2,670,942.90 | 2,670,942.90 | ||
2. Designated financial assets that are measured at fair value and whose changes are included in the current profit and loss | ||||
(1) Investment in debt instruments | ||||
(2) Investment in equity instrument | ||||
(II) Investment in Other Creditor's Rights | ||||
(III) Investment in Other Equity Instruments | 86,485,836.59 | 86,485,836.59 | ||
(IV) Investment Property | ||||
1. Land use rights for lease | ||||
2. Rental buildings | ||||
3. Land use rights held and prepared to transfer after appreciation | ||||
(V) Biological assets | ||||
1. Consumable biological assets | ||||
2. Productive Biological Assets | ||||
Total assets constantly measured at fair value | 2,670,942.90 | 86,485,836.59 | 89,156,779.49 | |
(6) Transactional financial liabilities | ||||
Including: issued trading bonds | ||||
Derivative Financial Liabilities | ||||
Others | ||||
(7) Financial Liabilities measured in fair value with changes recognized in current profit and loss |
Total amount of liabilities constantly measured at their fair values | ||||
II. Non-constant measurement at fair values | -- | -- | -- | -- |
(I) Holding for-sale assets | ||||
Total amount of assets with non-constant measurement at fair values | ||||
Total amount of liabilities with non-constant measurement at fair values |
2. The basis for determining the market price of constant and non-constant first-level fair value measurementitemsIt is confirmed in accordance with the closing price of open market transactions or the quotation amount provided by securities andfund companies as of December 31, 2021.
3. For the continuous and non-continuous third-level fair value measurement items, the valuation techniquesadopted and the qualitative and quantitative information of important parameters
For non-listed equity investment, fund investment and stock investment without public market quotation, the company appliesvaluation techniques to determine its fair value, including cash flow discount method and market comparison method. Its fair valueis measured using important unobservable parameters, such as liquidity discount, fluctuation rate, risk-adjusted discount andmarket multiplier. The fair value of non-listed equity investments, fund investments, and other investments has no significantsensitivity to reasonable changes in these unobservable input values.In 2021, the valuation techniques used by the company for the above-mentioned constant third-level fair value measurement havenot been changed.
4. Sensitivity analysis on adjustment information between the opening and closing book value and unobservable parameters for constant third-level fair valuemeasurement items
Item | Balance at the end of the previous year | Transfer to the third level | Transfer from the third level | Total current gain or loss | Acquisition, issuance, sale and settlement | Balance at the End of the Period | For assets held at the end of the reporting period, the current unrealized gains or changes recognized in the profit and loss | ||||
Recognized in profit and loss | Recognized in other comprehensive income | Acquisition | Issuance | Sale | Settlement | ||||||
◆Trading financial assets | 156,182,449.34 | 9,027,268.94 | 910,000,000.00 | 1,075,209,718.28 | |||||||
Financial assets at fair value through profit or loss in this period | 156,182,449.34 | 9,027,268.94 | 910,000,000.00 | 1,075,209,718.28 | |||||||
— Investment in debt instruments | |||||||||||
— Investment in equity instrument | |||||||||||
— Derivative Financial Assets | |||||||||||
— Bank financial products | 156,182,449.34 | 9,027,268.94 | 910,000,000.00 | 1,075,209,718.28 | |||||||
Designated financial assets that are measured at fair value and whose changes are included in the current profit and loss | |||||||||||
— Investment in debt instruments | |||||||||||
— Others | |||||||||||
◆Receivables Financing | |||||||||||
◆Investment in other bonds | |||||||||||
◆Investment in other equity instruments | 224,266,596.74 | -45,020,144.84 | 92,760,615.31 | 86,485,836.59 | |||||||
◆Other non-current financial assets | |||||||||||
Financial assets at fair value |
Item | Balance at the end of the previous year | Transfer to the third level | Transfer from the third level | Total current gain or loss | Acquisition, issuance, sale and settlement | Balance at the End of the Period | For assets held at the end of the reporting period, the current unrealized gains or changes recognized in the profit and loss | ||||
Recognized in profit and loss | Recognized in other comprehensive income | Acquisition | Issuance | Sale | Settlement | ||||||
through profit or loss in this period | |||||||||||
— Investment in debt instruments | |||||||||||
— Investment in equity instrument | |||||||||||
— Derivative Financial Assets | |||||||||||
— Others | |||||||||||
Total | 380,449,046.08 | 9,027,268.94 | -45,020,144.84 | 910,000,000.00 | 1,167,970,333.59 | 86,485,836.59 |
5. The fair value of financial assets and financial liabilities not measured at fair value
There is no significant difference between the book value and fair value of the company’s financial assets and financial liabilitiesthat are not measured at fair value.XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
Name of parent company | Registered Address | Business Nature | Registered Capital | Shareholding ratio of the parent company | Proportion of voting rights of the parent company |
Hangzhou Songcheng Group Holdings Co., Ltd | Hangzhou | Industrial investment, educational services, tourism project development | RMB 100 million | 29.48% | 29.48% |
Description of the parent company
Huang Qiaoling and related persons acting in concert directly hold 16.48% of the shares of the company. Hangzhou SongchengGroup Holdings Co., Ltd., the controlling shareholder of the company, holds 29.48% of the shares. Huang Qiaoling and relatedpersons acting in concert directly and indirectly hold 100.00% of the shares of Hangzhou Songcheng Group Holdings Co., Ltd.Huang Qiaoling and related persons acting in concert: Huang Qiaolong, Liu Ping, Huang Qiaoyan and Dai YinqinHuang Qiaoling and related persons in concert control the company by directly and indirectly holding of the shares.The ultimate controlling party of the company is Huang Qiaoling.
2. Information about the Company's subsidiaries
See "IX. Interest in Other Entities" in the notes for details of subsidiaries of the Company.
3. Information about the Company's joint ventures and affiliates
See "IX. Equities in other entities" in the notes for details of significant joint ventures and associates of the Company.Information about other joint ventures or associated enterprises that have related transactions with the Company in the currentperiod, or have balance resulting from related transactions with the Company in the last period is as follows:
Names of joint ventures and affiliates | Relationship with the Company |
Beijing Beite Shengdi Technology Development Co., Ltd. | Affiliate |
4. Information about other related parties
Names of other related parties | Relationship between the Company and other related parties |
Huang Qiaolong | Related natural person of Huang Qiaoling |
Liu Ping | Related natural person of Huang Qiaoling |
Huang Qiaoyan | Related natural person of Huang Qiaoling |
Dai Yinqin | Related natural person of Huang Qiaoling |
Hangzhou World Leisure Expo Park Co., Ltd | Under the control of Huang Qiaoling |
Hangzhou Songcheng Industry Co., Ltd | Under the control of Huang Qiaoling |
Hangzhou First World Hotel Co., Ltd. | Under the control of Huang Qiaoling |
Xi'an International Horticultural Exposition Investment (Group) Co., Ltd. | Holds 20% of the company’s holding subsidiary |
Shanghai World Expo Dongdi Cultural Development Co., Ltd. | Holds 12% of the company’s holding subsidiary |
Guangzhou Gening Green Engineering Co., Ltd. | Holds 35% of the company’s holding subsidiary |
Zhongshan Dehua Green Engineering Co., Ltd. | Holds 10% of the company’s holding subsidiary |
5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision and acceptance oflabor servicesMerchandise purchase and acceptance of labor services
Unit: RMB
Related parties | Content of the related - party transaction | This Period's Amount of Occurrence | Approved transaction limit | Over the transaction limit or not | Previous Period's Amount of Occurrence |
Beijing Beite | Delegation of the scenic | 15,631,222.17 | No | 29,155,963.23 |
Shengdi Technology Development Co., Ltd. | spot-related projects | ||||
Shanghai World Expo Dongdi Cultural Development Co., Ltd. | Brand usage fee | 3,773,584.81 | No | 9,433,962.00 |
Sales of merchandise and provision of services
Unit: RMB
Related parties | Content of the related - party transaction | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Hangzhou First World Hotel Co., Ltd. | Ticket sale and e-commerce service fees | 2,872,060.20 | 1,602,205.39 |
Hangzhou Songcheng Industry Co., Ltd | Ticket sale and e-commerce service fees | 3,998,902.82 | 2,509,701.38 |
Related-party transactions involving purchase and selling of merchandise and provision and acceptance of labor services
(2) Related leasing
The company as the lessee:
Unit: RMB
Name of Lessor | Type of the leased assets | Rental fee confirmed in the current period | Rental fee confirmed in the previous period |
Hangzhou Songcheng Industry Co., Ltd | Parking Lot at No. 148, Zhijiang Road (Area of 27,667 square meters) | 10,783,037.03 | 6,225,062.50 |
Hangzhou Songcheng Industry Co., Ltd | American City parking lot at No. 148, Zhijiang Road ( Area of 13,185 square meters) | 5,138,780.09 | 2,966,625.00 |
Hangzhou Songcheng Industry Co., Ltd | Operation of the scenic spot of the American City teaching building at No. 148 Zhijiang Road ( Area of 3,322 square meters) | 2,849,912.04 | 1,423,690.48 |
Hangzhou Songcheng Industry Co., Ltd | Operation of scenic spots in American City at No. 148, Zhijiang Road ( Area of 7,730 square meters) | 3,315,801.99 | 1,656,428.58 |
Hangzhou Songcheng Industry Co., Ltd | Office building at No. 148, Zhijiang Road (Area of 5,591.53 square meters) | 4,796,998.46 | 2,396,369.06 |
Hangzhou Songcheng Industry Co., Ltd | President Hill supporting housing and dormitory rooms of Huamei apartment at No. 148, Zhijiang Road, (Area of 7,114 square meters) | 3,204,095.64 | 1,600,625.00 |
Hangzhou First World Hotel Co., Ltd. | Office space of north building of the First World Hotel (Area of 3,000 square meters) | 2,668,866.11 | 472,500.00 |
Hangzhou World Leisure Expo Park Co., Ltd | Parking lot at No. 92 Xianghu road (Area of 19,192 square meters) | 8,644,052.01 | 4,318,187.50 |
Hangzhou World Leisure Expo Park Co., Ltd | Staff dormitory of Water City of Creative Park at No. 92 Xianghu Road (Area of 3,010 square meters) | 1,355,704.03 | 677,250.00 |
Xi'an International Horticultural Exposition Investment (Group) Co., Ltd. | The European style and international exhibition area of Xi’an World Expo Park, at Shibo Avenue, Chanba Ecological Zone, Xi’an City (Total area of 78,743.94 square meters) | 2,752,293.60 | 1,444,954.14 |
Shanghai World Expo Dongdi Cultural Development Co., Ltd. | Shanghai World Expo Stage (total area: 18,039 square meters) | 7,594,814.56 |
Explanations of other matters: The New Lease Standard should apply in the current period. The lease fee recognized in the currentperiod should be the amortization of right-of-use assets and interest expense on lease liabilities.
(3) Remuneration for key management personnel
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Salary of key management personnel | 4,220,700.00 | 3,808,500.00 |
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Item Name | Related parties | Balance at the End of the Period | Balance at the Start of the Period | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Other Receivables | |||||
Shanghai World Expo Dongdi Cultural Development Co., Ltd. | 10,000,000.00 | 200,000.00 |
(2) Payables
Unit: RMB
Item Name | Related parties | Closing balance | Opening balance |
Accounts Payable | |||
Beijing Beite Shengdi Technology Development Co., Ltd. | 5,213,409.47 | 3,797,469.47 | |
Other Payables | |||
Xi'an International Horticultural Exposition Investment (Group) Co., Ltd. | 379,021.00 | 355,000.00 | |
Guangzhou Gening Green Engineering Co., Ltd. | 2,531,680.00 | ||
Zhongshan Dehua Green Engineering Co., Ltd. | 686,011.00 | ||
Beijing Beite Shengdi Technology Development Co., Ltd. | 13,172,055.00 | ||
Other non-current liabilities due within one year | |||
Hangzhou World Leisure Expo Park Co., Ltd | 3,393,481.86 | ||
Hangzhou First World Hotel Co., Ltd. | 894,390.44 | ||
Shanghai World Expo Dongdi Cultural Development Co., Ltd. | 2,533,788.67 | ||
Hangzhou Songcheng Industry Co., Ltd | 17,434,147.53 | ||
Lease Liabilities | |||
Hangzhou World Leisure Expo Park Co., Ltd | 98,266,967.49 | ||
Hangzhou First World Hotel Co., Ltd. | 25,750,021.28 | ||
Shanghai World Expo Dongdi Cultural Development Co., Ltd. | 65,526,253.71 | ||
Hangzhou Songcheng Industry Co., Ltd | 180,855,294.86 |
XIII. Share-based payment
1. Overview of share-based payment
□ Applicable √ Not applicable
2. Situation of equity-settled share-based payment
□ Applicable √ Not applicable
3. Situation of cash-settled share-based payment
□ Applicable √ Not applicable
XIV. Commitments and contingencies
1. Important commitments
Important commitment on the balance sheet dateOn Monday, June 21, 2021, the 11th Meeting of the Seventh Board of Directors of the Company reviewed and approved the"Proposal on Using Idle Self-owned Funds to Invest in Securities and Wealth Management Products". It agreed that the Companymay use idle self-owned funds to invest in securities and financial products, so as to maintain and increase the value of idle funds onthe basis of ensuring safety and liquidity, provided that the capital is secured, that the operation is legal and compliant, and thatnormal production and operation are not affected. The amount should not exceed RMB 1.5 billion. The funds within this limit canbe used on a rolling basis. The valid period is 2 years from the date of approval by Board of Directors. The management of theCompany is authorized to exercise the right to make investment decisions and sign relevant legal documents within the limit.
2. Contingencies
(1) Important contingent matters on the balance sheet day
The company has no important contingencies that need to be disclosed.
(2) If no important contingent matter to be disclosed by the Company, it should also be noted accordinglyNo important contingent matter needs to be disclosed by the Company.
XV. Events after the Balance Sheet Date
1. Distribution of profits
Unit: RMB
Profits or dividends to be distributed | 130,734,702.00 |
Profits or dividends reviewed and approved for releasing | 130,734,702.00 |
2. Description of other matters after the balance sheet date
(I) Distribution of profitsAccording to the 2021 Annual Profit Distribution Plan adopted at the 15th Meeting of the Seventh Board of Directors of theCompany held on Friday, April 22, 2022, the Company plans to distribute RMB 0.50 dividend (Including tax) in cash for every 10shares to all shareholders based on the total share capital of 2,614,694,040 shares at the end of 2021. Total cash dividend of RMB130,734,702 was distributed.
(2) Transfer of post-period equity
1. According to the Share Transfer Agreement dated April 22, 2022 between the Company and Hangzhou Songcheng Group HoldingsCo., Ltd. (hereinafter referred to as “Songcheng Group”) and the Proposal on the Transfer of Equity of Hong Kong Subsidiary andRelated Transaction reviewed and approved at the 15th Meeting of the 7th Board of Directors of the Company on the same day, asaffected by COVID-19, geopolitical and other factors which make the current overseas assets uncertain, in order to improve theCompany's financial security and promote the healthy development of its business, after full consultation with Hangzhou SongchengGroup Holdings Co., Ltd., the controlling shareholder of the Company, the Company plans to arrange Songcheng Group to acquire100% equity and claims of Songcheng Performance International Development Co., Ltd., a Hong Kong wholly-owned subsidiary ofSongcheng Performance. After the auditing and evaluation of the acquisition price, both parties agreed after negotiation to set thetransaction price of equity transfer at RMB 574 million and measured the debt formed before acquisition at RMB 20.05 million, andthus the total transaction consideration mounted to RMB 594.05 million. This equity transfer needs to be reviewed and approved bythe General Meeting of Shareholders of Songcheng Performance.
2. According to the Share Transfer Agreement dated April 22, 2022 between the Company and Hangzhou Songcheng Group HoldingsCo., Ltd. and the Proposal on the Transfer of Equity of Zhuhai Subsidiary and Related Transaction reviewed and approved at the 15thMeeting of the 7th Board of Directors of the Company on the same day, Zhuhai Project has a high investment amount, a largeproject scale and a long construction period. Since the outbreak of the COVID-19, the Company's operation and cash flows havechanged due to changes in the external environment. In order to enhance the Company's sustainable operation and anti-risk ability,after full consultation with Hangzhou Songcheng Group Holdings Co., Ltd., the controlling shareholder of the Company, theCompany plans to arrange Songcheng Group to acquire 100% equity and claims of Zhuhai Songcheng Performance Kingdom Co.,Ltd., a wholly-owned subsidiary of Songcheng Performance. After the auditing and evaluation of the acquisition price, both partiesagreed after negotiation to set the transaction price of equity transfer at RMB 451 million and measured the debt formed beforeacquisition at RMB 6.9261 million, and thus the total transaction consideration mounted to RMB 457.9261 million. SongchengGroup will be responsible for the follow-up investment and construction of Zhuhai Songcheng Performance Park Project, whileSongcheng Group will entrust Songcheng Performance to operate and manage theme parks. This equity transfer needs to bereviewed and approved by the General Meeting of Shareholders of Songcheng Performance.XVI. Other Significant Events
1. Segment information
(1) Basis for determining the report segment and accounting policies
The company determines the operating segment based on the internal organizational structure, management requirements, andinternal reporting system and then determines the reporting segment based on operating segment.Operating segment refers to the component within the company that meets the following conditions at the same time: (1) Thecomponent can generate income and expenses in daily activities; (2) The management of the company can regularly evaluate theoperating results of such component so as to determine the allocation of resources to it and evaluate its performance; (3) Thecompany can obtain the accounting information of the component, such as the financial status, operating results and cash flow
etc.,.The company reporting segment includes:
1) Live performance: refers to all business related to on-site parks and theaters as the reporting segment, including HangzhouSongcheng Park, Hangzhou Crazy Appleland Hangzhou Paradise Park, Sanya Romance Park, Lijiang Romance Park, Jiuzhai RomancePark, Tibetan Mystery Theater, Guilin Romance Park, Zhangjiajie Romance Park, Xi'an Romance Park, and Shanghai Romance Park;
2) Tourism service industry: refers to the reporting segment of e-commerce, design and planning.
(2) Financial information of the report segment
Unit: RMB
Item | Live performance | Tourism service industry | Inter-segment offset | Total |
The revenue from main business | 960,863,721.01 | 172,196,745.54 | 94,339.62 | 1,132,966,126.93 |
Main business cost | 573,261,525.94 | 4,507,352.09 | 436,468.07 | 577,332,409.96 |
Total assets | 9,195,621,252.65 | 2,035,931,535.94 | 1,405,044,758.75 | 9,826,508,029.84 |
Total amount of liabilities | 2,910,199,291.47 | 313,375,164.28 | 1,352,276,626.05 | 1,871,297,829.70 |
XVII. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Category | Balance at the End of the Period | Balance at the Start of the Period | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage | Amount | Accrued proportion | Amount | Percentage | Amount | Accrued proportion | |||
Including: | ||||||||||
Accounts receivables with the bad debt provision accrued based on combinations | 147,558.45 | 100.00% | 31,224.97 | 21.16% | 116,333.48 | 52,370.14 | 100.00% | 14,145.24 | 27.01% | 38,224.90 |
Including: | ||||||||||
Combination of credit risk characteristics by age | 133,167.24 | 90.25% | 31,224.97 | 23.45% | 101,942.27 | 38,179.30 | 72.90% | 14,145.24 | 37.05% | 24,034.06 |
Consolidation scope and accounts receivable from related parties | 14,391.21 | 9.75% | 14,391.21 | 14,190.84 | 27.10% | 14,190.84 | ||||
Total | 147,558.45 | 100.00% | 31,224.97 | 116,333.48 | 52,370.14 | 100.00% | 14,145.24 | 38,224.90 |
Bad debt provision based on combinations
Unit: RMB
Name | Balance at the End of the Period | ||
Book balance | Bad debt provision | Accrued proportion | |
Within credit period | 3.00% | ||
Credit period overdue within 1 year | 95,668.44 | 14,350.27 | 15.00% |
Credit period overdue within 1 to 2 years | 27,498.80 | 6,874.70 | 25.00% |
Credit period overdue within 2 to 3 years | 45.00% | ||
Credit period overdue within 3 to 4 years | 60.00% | ||
Credit period overdue within 4 to 5 years | 80.00% | ||
Credit period overdue for more than 5 years | 10,000.00 | 10,000.00 | 100.00% |
Total | 133,167.24 | 31,224.97 | -- |
Description for basis of determining the group:
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the bad debtprovisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging | Book balance |
Within 1 year (including 1 year) | 110,059.65 |
1 to 2 years | 27,498.80 |
2 to 3 years | |
3 to 4 years | |
4 to 5 years | |
5 years or above | 10,000.00 |
Total | 147,558.45 |
(2) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Category | Balance at the Start of the Period | Amount of Changes in the Current Period | Balance at the End of the Period | |||
Accrued | Recovered or Reversed | Written Off | Others | |||
Provision for bad debts of accounts receivable | 14,145.24 | 17,079.73 | 31,224.97 | |||
Total | 14,145.24 | 17,079.73 | 31,224.97 |
(3) Accounts receivable actually written off in this period
There are no accounts receivable actually written off in the current period.
(4) Accounts receivable of the top five balances at the end of the period collected by the arrears
Unit: RMB
Name of Unit | Accounts receivable at the end of the period | Proportion of the total accounts receivable at the end pf the period | Bad debt provision at the end of the period |
Henan Longgui Cultural Tourism Development Co., Ltd. | 123,167.24 | 83.47% | 21,224.97 |
Xi'an Romance Performance Development Co., Ltd | 14,391.21 | 9.75% | |
He Xiaojuan | 10,000.00 | 6.78% | 10,000.00 |
Total | 147,558.45 | 100.00% |
2. Other receivables
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period |
Interest Receivable | ||
Dividends Receivable | ||
Other Receivables | 1,195,669,385.02 | 1,046,160,763.74 |
Total | 1,195,669,385.02 | 1,046,160,763.74 |
(1) Other Receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds | Closing balance | Opening balance |
Employee loan | 210,000.00 | 1,378,749.73 |
Incomings and outgoings | 1,050,000.00 | 1,050,000.00 |
Internal current account within the scope of consolidation | 1,195,025,912.64 | 1,025,718,037.61 |
Equity transfer fund | 79,866,980.26 | 79,866,980.26 |
Others | 439,972.10 | 458,024.14 |
Total | 1,276,592,865.00 | 1,108,471,791.74 |
2) Bad debt provision
Unit: RMB
Bad debt provision | Phase One | Phase Two | Phase Three | Total |
Expected credit losses in the next 12 months | Expected credit losses for the entire extension (without credit impairment) | Expected credit losses for the entire extension (with credit impairment) | ||
Balance on Friday, January 1, 2021 | 18,367.74 | 62,292,660.26 | 62,311,028.00 | |
Balance of the current period on Friday, January 1, 2021 | —— | —— | —— | —— |
Provisions of this period | -11,868.02 | 18,624,320.00 | 18,612,451.98 | |
Balance on Friday, December 31, 2021 | 6,499.72 | 80,916,980.26 | 80,923,479.98 |
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging | Book balance |
Within 1 year (including 1 year) | 1,195,515,884.74 |
1 to 2 years | 40,000.00 |
2 to 3 years | |
3 to 4 years | 100,000.00 |
4 to 5 years | 79,866,980.26 |
5 years or above | 1,070,000.00 |
Total | 1,276,592,865.00 |
3) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Category | Balance at the Start of the Period | Amount of Changes in the Current Period | Balance at the End of the Period | |||
Accrued | Recovered or Reversed | Written Off | Others | |||
Provision for bad debts of other receivables | 62,311,028.00 | 18,612,451.98 | 80,923,479.98 | |||
Total | 62,311,028.00 | 18,612,451.98 | 80,923,479.98 |
4) Accounts receivable actually written off in this period
There's no actual written-off accounts receivable in this period.
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
Name of Unit | Nature of the funds | Balance at the End of the Period | Aging | As a percentage of total other receivables at the end of the period | Bad debt provision at the end of the period |
Shanghai Songcheng World Expo Performance Development Co., Ltd | Consolidation of internal current account | 498,650,000.00 | Within 1 year | 39.06% | |
Zhangjiajie Romance Performance Development Co., Ltd | Consolidation of internal current account | 482,251,809.00 | Within 1 year | 37.78% | |
Zhejiang Songcheng Xitang Performance Valley Performance Development Co., Ltd | Consolidation of internal current account | 178,353,003.64 | Within 1 year | 13.97% | |
An Xiaofen (formerly: Horgos Dasheng Legend Venture Capital Co., Ltd.) | Equity transfer fund | 79,866,980.26 | 4-5 years | 6.26% | 79,866,980.26 |
Songcheng (Australia) Entertainment Pty Ltd. | Consolidation of internal current account | 20,051,100.00 | Within 1 year | 1.57% | |
Total | -- | 1,259,172,892.90 | -- | 98.64% | 79,866,980.26 |
3. Long-term equity investment
Unit: RMB
Item | Balance at the End of the Period | Balance at the Start of the Period | ||||
Book balance | Provision for decline in value | Book value | Book balance | Provision for decline in value | Book value | |
Investment in subsidiaries | 6,667,904,199.20 | 6,667,904,199.20 | 4,940,162,163.79 | 4,940,162,163.79 | ||
Investment in affiliates and joint ventures | 3,307,758,983.34 | 1,814,682,876.81 | 1,493,076,106.53 | |||
Total | 6,667,904,199.20 | 6,667,904,199.20 | 8,247,921,147.13 | 1,814,682,876.81 | 6,433,238,270.32 |
(1) Investment in Subsidiaries
Unit: RMB
The invested entity | Balance at the Start of the Period (book value) | Decrease/Increase in the current period | Balance at the End of the Period (book value) | Closing balance of provision for decline in value | |||
Investments increased | Investment decreased | Provision for impairment accrued | Others | ||||
Hangzhou Paradise Co., Ltd. | 638,402,523.46 | 638,402,523.46 | |||||
Sanya Romance Tourism Performance Co., Ltd. | 490,000,000.00 | 490,000,000.00 | |||||
Lijiang Chama Ancient City Tourism Development Co., Ltd | 250,000,000.00 | 250,000,000.00 | |||||
Aba Zhou Jiuzhai Romance Tourism Development Co., Ltd | 258,500,000.00 | 258,500,000.00 | |||||
Hangzhou Songcheng Tourism Development Co., Ltd | 10,000,000.00 | 10,000,000.00 | |||||
Jiuzhaigou Tibetan Mystery Culture Co., Ltd | 87,000,000.00 | 87,000,000.00 | |||||
Zhejiang Songcheng Longquan Mountain Tourism Development Co., Ltd | 120,000,000.00 | 120,000,000.00 | |||||
Hangzhou Songcheng Technology Development Co., | 39,530,000.00 | 39,530,000.00 |
Ltd. | |||||||
Songcheng Performance International Development Co., Ltd. | 606,367,375.19 | 13,000.00 | 606,380,375.19 | ||||
Shanghai Songcheng World Expo Performance Development Co., Ltd | 132,000,000.00 | 132,000,000.00 | |||||
Songcheng Performance Development (Shanghai) Co., Ltd. | 500,000.00 | 500,000.00 | |||||
Guilin Lijiang Romance Performance Development Co., Ltd | 455,000,000.00 | 455,000,000.00 | |||||
Zhangjiajie Romance Performance Development Co., Ltd | 120,000,000.00 | 120,000,000.00 | |||||
Songcheng Performance Management Co., Ltd. | 500,000.00 | 500,000.00 | |||||
Songcheng Dumuqiao Network Co., Ltd. | 4,000,000.00 | 4,000,000.00 | |||||
Xi'an Romance Performance Development Co., Ltd | 285,000,000.00 | 195,000,000.00 | 480,000,000.00 | ||||
Zhejiang Songcheng Xitang Performance Valley Performance | 100,000,000.00 | 100,000,000.00 |
Development Co., Ltd | |||||||
Foshan South Sea Qiao Mountain Cultural Tourism Development Co., Ltd | 448,950,800.00 | 448,950,800.00 | |||||
Hangzhou Songguo Cultural Creative Co., Ltd. | 2,350,000.00 | 2,350,000.00 | |||||
Zhuhai Southern Film and Television Cultural Industry Co., Ltd. | 6,702,418.93 | 6,702,418.93 | |||||
Zhuhai Songcheng Performance Kingdom Co., Ltd | 396,297,581.07 | 33,000,000.00 | 429,297,581.07 | ||||
Hangzhou Songcheng performance Valley technology and Culture Development Co., Ltd | 489,061,465.14 | 489,061,465.14 | |||||
Romance Show Management Co., Ltd. | 100,000.00 | 100,000.00 | |||||
Global Bacchus Limited | 1,619,629,035.41 | 1,619,629,035.41 | |||||
Total | 4,940,162,163.79 | 1,847,742,035.41 | 120,000,000.00 | 6,667,904,199.20 |
(2) Investment in affiliates and joint ventures
Unit: RMB
Name of Investees | Balance at the Start of the Period (book value) | Decrease/Increase in the current period | Balance at the End of the Period (book value) | Closing balance of provision for decline in value | |||||||
Investments increased | Investment decreased | Investment profit and loss recognized under the equity | Adjustment on other comprehensive income | Other changes in equity | Cash dividends or profit declared to distribute | Provision for impairment accrued | Others |
method | |||||||||||
Ⅰ. Joint ventures | |||||||||||
Ⅱ. Affiliates | |||||||||||
Huafang Group Inc. (formerly known as Beijing HuafangTechnology Co., Ltd.) | 1,493,076,106.53 | -1,619,616,198.83 | 113,757,232.06 | -97,880.37 | 12,880,740.61 | ||||||
Subtotal | 1,493,076,106.53 | -1,619,616,198.83 | 113,757,232.06 | -97,880.37 | 12,880,740.61 | ||||||
Total | 1,493,076,106.53 | -1,619,616,198.83 | 113,757,232.06 | -97,880.37 | 12,880,740.61 |
(3) Explanations of other matters:
Huafang Group Inc. (formerly Beijing Huafang Technology Co., Ltd.): The original shareholders of Beijing Huafang Technology Co.,Ltd., including Songcheng Performance Development Co., Ltd., signed the VIE agreement, and Global Bacchus Limited, awholly-owned company subsidiary of the Company, acquired 37.06% equity of Huafang Group Inc. at the price of USD 1,976.4706(equal to RMB 12,836.58). After signing the above agreement, Global Bacchus Limited, a wholly-owned subsidiary of the Company,holds the 37.06% of the equity of Huafang Group Inc. and has all the rights and obligations pertaining to the 37.06% equity ofBeijing Huafang Technology Co., Ltd.
4. Operating income and operating costs
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence | ||
Income | Cost | Income | Cost | |
Main Business | 5,329,888.31 | 8,462,698.28 | 15,832,779.35 | 19,532,790.64 |
Other businesses | 3,533,799.39 | 7,059,972.03 | ||
Total | 8,863,687.70 | 8,462,698.28 | 22,892,751.38 | 19,532,790.64 |
Related information of revenue:
Unit: RMB
Contract classification | Culture and art industry-live performance | Other businesses | Total |
Product types | 5,329,888.31 | 3,533,799.39 | 8,863,687.70 |
Including: | |||
(1) Art and Culture — Income | 5,329,888.31 | 5,329,888.31 |
from Hangzhou Songcheng Tourist Area | |||
(2) Other businesses | 3,533,799.39 | 3,533,799.39 | |
Contract type | 5,329,888.31 | 3,533,799.39 | 8,863,687.70 |
Including: | |||
(1) Revenue from contracts | 5,329,888.31 | 55,076.34 | 5,384,964.65 |
Classified by the time of commodity transfer | 5,329,888.31 | 55,076.34 | 5,384,964.65 |
Including: | |||
Confirm at time points | 5,329,888.31 | 9,237.72 | 5,339,126.03 |
Confirm within a certain period of time | 45,838.62 | 45,838.62 | |
(2) Revenue from rental business in theme parks | 3,478,723.05 | 3,478,723.05 | |
Total | 5,329,888.31 | 3,533,799.39 | 8,863,687.70 |
Information related to performance obligations:
N/AInformation related to the transaction price allocated to the remaining obligations:
At the end of this report period, the amount of income corresponding to the obligations according to the contract signed that havenot been performed or completed is RMB 0.00.
5. Investment income
Unit: RMB
Item | This Period's Amount of Occurrence | Previous Period's Amount of Occurrence |
Long-term equity investment income calculated by cost method | 432,000,000.00 | |
Long-term equity investment income measured by equity method | 113,303,617.66 | -2,931,524.95 |
Investment income from disposal of long-term equity investment | -10,800,700.00 | -6,520,482.12 |
Investment income from disposal of trading financial assets | 7,586,792.45 | 2,412,380.45 |
Total | 110,089,710.11 | 424,960,373.38 |
XVIII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
√ Applicable □ Not applicable
Unit: RMB
Item | Amount | Note |
Gains and losses from disposal of non-current assets | 25,044,233.19 | |
Government subsidies included in the current profits and losses (except those closely related to the Company’s normal business, and continuously granted in accordance with a certain standard quota or quantity set by national policies and regulations) | 4,656,601.31 | |
In addition to the effective hedging business related to normal business of the Company, the profits and losses from the changes in fair value for holding trading financial assets and trading financial liabilities, and investment income from disposal of trading financial assets, trading financial liabilities, and available-for-sale financial assets. | 13,096,973.83 | |
Non-Operating Revenue and expenses other than the above | 3,502,874.67 | |
Less: Impact of income tax | -2,293,110.04 | |
Impact of minority equity | 1,272,744.78 | |
Total | 47,321,048.26 | -- |
Details of other gain and loss items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company did not have any details of other gain and loss items that meet the definition of non-recurring gains and losses.Description of defining the non-recurring gain and loss items, which are listed in Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and loss items
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Profit for the reporting period | Weighted Average ROE | Earnings per share | |
Basic Earnings per Share (RMB/Share) | Diluted Earnings per Share (RMB/Share) |
Net profit attributable to common shareholders of the Company | 4.22% | 0.1205 | 0.1205 |
Net profit attributable to common shareholders of the Company after deducting non-recurring gains and losses | 3.58% | 0.1024 | 0.1024 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial reports disclosed pursuant to internationalaccounting standards and Chinese accounting standards at the same time
□ Applicable √ Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed pursuant to foreign accountingstandards and Chinese accounting standards at the same time
□ Applicable √ Not applicable
Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021年年度报告”), and the published annual report in the Chinese version shall prevail. Thecomplete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn.